Agenda — Calistoga City Council, February 4, 2025 (part 1 of 2)

Mayor
Donald Williams
Vice Mayor
Irais Lopez-Ortega
Councilmembers
Lisa M. Gift
Scott Cooper
Kevin Eisenberg
AGENDA
City Council
Tuesday, February 4, 2025 - 6:00 PM
1307 Washington St., Calistoga
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: 86817846328, 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.

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.

1. CALL TO ORDER/ROLL CALL/PLEDGE OF ALLEGIANCE AND OPTIONAL PATRIOTIC

ACTIVITY

2. 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 not on the agenda 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.

2.1. Unagendized Public Comment (Page 5 - 6)

3. CITY MANAGER’S REPORT

4. PROCLAMATIONS/PRESENTATIONS/ AWARDS

4.1. Calistoga Library Presentation by Stephanie Allan and Jacqueline Flores Recommended Action: - Receive the Presentation
Staff Report 2025-013: Feb 04 2025 - Calistoga Library Presentation - Pdf (Page 7 - 17)

5. CONSENT CALENDAR

5.1. Vote to Adopt the Consent Calendar

5.2. Adopting the minutes of the December 10, 2024 Special Meeting and January 14, 2025 Regular Meeting.

Recommended Action: - Consider Adopting the Minutes
Staff Report 2025-014: Feb 04 2025 - Adoption of Minutes - Pdf (Page 18 - 25)

5.3. Consideration a Resolution authorizing an amendment to Consultant Services Agreement (No. 921) with Economic & Planning Systems, Inc. (EPS) to prepare a comprehensive update of the Calistoga Development Impact Fee Program.

Recommended Action: Consider Adopting the Resolution
Staff Report 2024-220: Feb 04 2025 - Consultant Services Agreement Amendment - EPS - Pdf (Page 26 - 29)

5.4. Consideration of a resolution authorizing an amendment to Agreement No. 873 with First Carbon Solutions to reinstate the CEQA review process for the Yellow Rose Project (VTM 2020-2).

Recommended Action: Consider Adopting the Resolution
Staff Report 2025-001: Feb 04 2025 - Consultant Services Agreement Amendment - FCS - Pdf (Page 30 - 51)

5.5. Consideration of a resolution authorizing the appropriation of additional funds in the amount of $6,370.25 to Napa County for the (RCAAP).

Recommended Action: Consider Adopting the Resolution
Staff Report 2025-005: Feb 04 2025 - Napa Countywide Climate Action Committee Regional Climate Action and Adaptation Plan (RCAAP) - Pdf (Page 52 - 54)

5.6. Consider adopting a resolution to authorize the execution of the License Agreement with Hunt Motor Sports Concepts LLC for non-exclusive sprint car racing.

Recommended Action: - Consider Adopting the Resolution
Staff Report 2024-223: Feb 04 2025 - Execution of the License Agreement with Hunt Motor Sports Concepts LLC for nonexclusive sprint car racing. - Pdf (Page 55 - 126) Public Comment Item 5.6 (Page )

5.7. Consideration of a Resolution Amending Contract to Modern Method Roofing Co., for roof replacement for the Butler Building.

Recommended Action: Consider Adopting the Resolution and authorize the City Manager to execute the contract amendment.

Staff Report 2024-214: Feb 04 2025 - Amendment to Modern Method Roofing Co.

Consultant Agreement - Pdf (Page 127 - 134)
Resolution - Modern Method Roofing Amendement - Butler Building Roof (Page ) Amendment No. 1 to Agreement for Consultant Services with Modern Method (Page )

6. PUBLIC HEARING

6.1. Consider Adopting Resolution Setting the Development Impact Fees Based on the City of Calistoga Development Impact Fee Nexus Study Dated December 20, 2024.

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Recommended Action: Consider Adopting the Resolution
Staff Report 2025-004: Feb 04 2025 - Development Impact Fee Study - Pdf (Page 135 - 193)

6.2. First reading of Ordinance No. 775 amending the Calistoga Municipal Code (CMC) in multiple sections regarding peddling, soliciting, street and sidewalk vending, and mobile food vending activities in the City of Calistoga
Recommended Action: Consider waiving the first reading and adopting Ordinance No. 775 amending the Calistoga Municipal Code (CMC) regarding peddling, soliciting, street vending, and mobile food vending activities in the City of Calistoga.

Staff Report SR 2024-213: Feb 04 2025 - Street and Sidewalk Vending Ordinance - Pdf (Page 194 - 223)
Public Comment Item 6.2 (Page )

7. GENERAL GOVERNMENT

7.1. County of Napa presentations for VLF Swap and Property Taxes Recommended Action: - Receive the Presentation
Staff Report 2025-017: Feb 04 2025 - County of Napa Presentations - Pdf (Page 224 - 225)
Staff Report 2025-017: Feb 04 2025 - County of Napa Presentations - Html (Page )

7.2. Fiscal Year 24-25 Mid-year budget amendments
Recommended Action:

Receive a report and consider adopting the attached resolution that amends the Fiscal Year 24-25 budget.

Fiscal Year 24-25 Mid-year Budget Amendments - Pdf (Page 226 - 251) Public Comment Item 7.2 (Page )

7.3. Consider adopting a Resolution authorizing the renewal of the Napa Valley Transportation Authority (NVTA) Agreement with the City of Calistoga to provide Calistoga Shuttle Services for a five-year time period.

Recommended Action: - Consider Adopting the Resolution
Staff Report 2024-224: Feb 04 2025 - Napa Valley Transporation Authority Shuttle Services - Pdf (Page 252 - 262)
Public Comment Item 7.3 (Page )

7.4. Options for Fairgrounds Advisory Role
Recommended Action: Consider Discussing the Item and Providing Staff Direction Staff Report 2025-015: Feb 04 2025 - Options for Fairgrounds Advisory Role - Pdf (Page 263 - 271)
Public Comment Item 7.4 (Page )

7.5. Consideration of a Fairgrounds Business Feasibility Plan Staff Report 2025-002: Feb 04 2025 - Consideration of a Fairgrounds Business Feasibility Plan - Pdf (Page 272 - 289)
Public Comment Item 7.5 (Page )
Add'l Public Comment Item 7.5 (Page )

7.6. Consider Adopting a Resolution Authorizing the City Manager to enter into a consultant agreement with FM3 Research to develop and deliver a statistically valid survey.

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Recommended Action: - Consider Authorizing the City Manager/Staff to Enter into the Agreement
Staff Report 2025-010: Feb 04 2025 - Enter into a Consultant Agreement with FM3 Reasearch for a statistically valid survey of the community needs and - Pdf (Page 290 - 310)
Public Comment Item 7.6 (Page )

8. COUNCIL REPORTS

9. 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 textto-speech, speech-to-speech, and Spanish language services 24 hours a day, 7 days a week.

ACTA DE AMERICANOS CON DISCAPACIDADES Se les pide por favor que avise con 48 horas de anticipacion cuando necesita hacer un pedido de assistencia. Esto nos da suficiente tiempo antes de la junta para 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 January 28, by 4:30 p.m.

Yudiana Galvan, City Clerk

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From: Cedelimur >
Sent: Wednesday, January 22, 2025 3:46 PM
To: City Hall <[email protected]>
Subject: Busters pollution
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.

Dear Honorable Mayor Williams,
How in the world is Buster’s allowed to spew such pollution throughout downtown Calistoga.

Filling up at the two gas stations is hazardous to one’s health. The smoke from Buster’s fire pits extends through the Lincoln Ave corridor and creates a health hazard for all those who suffer from any chronic lung issues.

Something should be done.

Item #2.1.

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Charles de Limur
Calistoga, CA 94515
Item #2.1.

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City of Calistoga

STAFF REPORT
To: Honorable Mayor and City Council
From: Yudiana Galvan, City of Calistoga | City Clerk
Meeting: City Council - Feb 04 2025
Subject: Calistoga Library Presentation
DESCRIPTION:

Calistoga Library Presentation by Stephanie Allan and Jacqueline Flores RECOMMENDATION:

Receive the Presentation
FINANCIAL IMPACT:

No Impact
CEQA STATUS:

None
ATTACHMENT(S):

Library Presentation
APPROVAL(S):

Connie Cardenas, Admin. Services Director Approved - Jan 23 2025 Laura Snideman, City of Calistoga | City Manager Approved - Jan 24 2025 Yudiana Galvan, City of Calistoga | City Clerk Approved - Jan 28 2025 Item #4.1.

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City of Calistoga

STAFF REPORT
To: Honorable Mayor and City Council
From: Yudiana Galvan, City of Calistoga | City Clerk
Meeting: City Council - Feb 04 2025
Subject: Adoption of Minutes
DESCRIPTION:

Adopting the minutes of the December 10, 2024 Special Meeting and January 14, 2025 Regular Meeting.

RECOMMENDATION:

Consider Adopting the Minutes
FINANCIAL IMPACT:

No Impact
CEQA STATUS:

None
ATTACHMENT(S):

1.14.25 Meeting Minutes

12.10.24 Special Meeting Minutes
APPROVAL(S):

Laura Snideman, City of Calistoga | City Manager Approved - Jan 28 2025 Yudiana Galvan, City of Calistoga | City Clerk Approved - Jan 28 2025 Item #5.2.

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MINUTES

CALISTOGA CITY COUNCIL - REGULAR MEETING
Tuesday, January 14, 2025 - 6:00 PM
Calistoga Community Center | 1307 Washington Street Calistoga, CA 94515

1. Call to Order/Roll Call/Pledge of Allegiance and Optional Patriotic Activity Mayor Williams called the regular session to order at 5:59 p.m.

Present: Mayor Williams, Vice Mayor Lopez-Ortega and Councilmembers Eisenberg, Cooper and Gift.

Absent: Councilmember Cooper

2. ORAL COMMUNICATION ON CONSENT ITEMS OR NON-AGENDA ITEMS There was public comment by Sheila Allen, and Tim Reilly.

3. CITY MANAGER’S REPORT
City Manager Laura Snideman Reported:

1. The City is accepting applications for ATAC through Friday, January 31st at 2 p.m. applications can be found online and at the City Clerk's office.

2. Lincoln Ave Apartments have obtained their temporary occupancy certificate and anyone interested in living there can visit their on-site leasing office that may already be open for the public.

3. Parks and rec has some fun activities coming up including a trip to the DeYoung Museum, weekly pickleball, and a Cornhole tournament on Ground Hog Day! Visit the City website for more details.

4. Our hearts go out to the victims of the Southern California wildfires, the City has sent a Fire Captain and two Fire Fighter to help, just as we have needed help in the past. Our City remains fully staffed and covered.

5. Vice Mayor Lopez-Ortega asked if there were any suggested agencies where people can direct their donations to, Snideman stated that more will come up in the future but for now the Red Cross is always accepting help.

4. PROCLAMATIONS/PRESENTATIONS/ AWARDS

5. CONSENT CALENDAR
A motion was made by Councilmember Eisenberg to move item 5.6 to be heard after item 7.2 and to pull items 5.1 and 5.5 for discussion, seconded by Vice Mayor Lopez-Ortega.

AYES: Mayor Williams, Vice Mayor Lopez-Ortega and Councilmembers Eisenberg and Gift
NOES: None
ABSTAIN: None
ABSENT: Scott Cooper

5.1. Adoption of Resolution No. 2025-01 - Authorizing a Professional Services Agreement Amendment - Bureau Veritas
Item #5.2.

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This item was pulled for discussion by Mayor Williams and Presented by Planning Director Greg Desmond. The Council asked clarifying questions and discussed.

There was no public comment.

Motion by Mayor Williams and seconded by Councilmember Gift to adopt the resolution.

Motion Carried
AYES: Mayor Williams, Vice Mayor Lopez-Ortega, Councilmember Gift, and Councilmember Eisenberg
NOES: None
ABSTAIN: None
ABSENT: Councilmember Cooper

5.2. Adoption of Resolution No. 2025-02 - Approving the Maintenance of Effort was met for Fiscal Year 2023/24 Under the Measure T Program.

Adoption of Resolution No. 2025-04 - Approving Certification of Equivalent Fund Expenditures under Measure T Program.

Motion by Councilmember Eisenberg and seconded by Vice Mayor Lopez-Ortega to adopt the resolution Motion Carried
AYES: Mayor Williams, Vice Mayor Lopez-Ortega, Councilmember Gift, and Councilmember Eisenberg
NOES: None
ABSTAIN: None
ABSENT: Councilmember Cooper

5.3. Adopting the Minutes of December 3, 2024.

Motion by Councilmember Eisenberg and seconded by Vice Mayor Lopez-Ortega to adopting the Minutes Motion Carried
AYES: Mayor Williams, Vice Mayor Lopez-Ortega, Councilmember Gift, and Councilmember Eisenberg
NOES: None
ABSTAIN: None
ABSENT: Councilmember Cooper

5.4. Adoption of Resolution No. 2025-04 - Authorizing the City Manager to execute a contract with LEHR Auto for the purchase, configuration, and installation of six mobile routers into Police Department patrol vehicles, in an amount not to exceed $13,683.33.

Motion by Councilmember Eisenberg and seconded by Vice Mayor Lopez-Ortega - Consider Adopting the Resolution Motion Carried
Item #5.2.

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AYES: Mayor Williams, Vice Mayor Lopez-Ortega, Councilmember Gift, and Councilmember Eisenberg
NOES: None
ABSTAIN: None
ABSENT: Councilmember Cooper

5.5. Consider adopting a Resolution authorizing the renewal of the Napa Valley Transportation Authority (NVTA) Agreement with the City of Calistoga to provide Calistoga Shuttle Services for a five-year time period.

This item was pulled for discussion by Vice Mayor Lopez-Ortega, Council asked questions regarding the shuttle stopping in places outside the City limits, the places they cannot stop within the City limits and the status on electric shuttles.

There was public comment by Antoinette Maillard.

Council gave staff direction to table this item for now and bring it back to the next meeting with more information regarding shuttle accessibility on certain roads.

5.6. Consider Adopting a Resolution Authorizing the City Manager to enter into a consultant agreement with FM3 Research to develop and deliver a statistically valid survey.

This item was presented by Fairgrounds Director Sheli Wright and Lucia DelPuppo from FM3 Research (via teleconference).

There was public comment by Molly Towey, Tim Reilly, Wyatt Ferris, Dana Cole and Steven Pinsky.

The Council asked clarifying questions and discussed.

Motion by Councilmember Eisenberg and seconded by Vice Mayor Lopez-Ortega to authorize an agreement with FM3 for a statistical valid survey Motion Failed AYES: Vice Mayor Lopez-Ortega and Councilmember Eisenberg NOES: Mayor Williams and Councilmember Gift
ABSTAIN: None
ABSENT: Councilmember Cooper

6. PUBLIC HEARING

7. GENERAL GOVERNMENT

7.1. The City’s three advisory committees have developed work plans for 2025 for review and approval by the City Council.

Item #5.2.

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This item was presented by Planning Director Greg Desmond and discussed by the Council.

There was public comment by Sean Birge.

A motion was made by by Councilmember Eisenberg to approve the 2025 work plans for the Active Transportation Advisory Committee (ATAC), Green Committee, and Housing Advisory Committee, including a change to the #10 goal of Green Committee to read " Research AntiIdling Implementation Strategies" and approve the staff revisions included in the document.

Motion Carried.

AYES: Mayor Williams, Vice Mayor Lopez-Ortega and Councilmembers Eisenberg and Gift
NOES: None
ABSTAIN: None
ABSENT: Councilmember Cooper

7.2. Educational review of the draft 2025 calendar year operating and capital improvement budget for the fairgrounds.

This item was presented by Fairgrounds Director Sheli Wright.

There was public comment by Rick Kaiser, Dana Cole, Tim Reilly and Doug Allen.

Council discussed the item and agreed that the focus should be to do what it takes to get the property to start creating revenue but wait on those big dollar items until we have a more organized way of receiving public input.

7.3. Renaming the Fairgrounds Property
There was public comment by Dana Cole, Tim Moore, Molly Towey, Wyatt Ferris and Emily Bucchianeri.

The Council discussed and asked clarifying questions.

Motion by Mayor Williams and seconded by Councilmember Eisenberg to adopt the name "Calistoga Fairgrounds" Motion Carried
AYES: Mayor Williams, Vice Mayor Lopez-Ortega, Councilmember Gift, and Councilmember Eisenberg
NOES: None
ABSTAIN: None
ABSENT: Councilmember Cooper

8. COUNCIL REPORTS
Councilmember Eisenberg NVTA moved some money from another project into the Vine Trail, as oppsed to asking the City for more money.

Councilmember Gift requested staff agendize the formation of a Fairgrounds Committee (Council Item #5.2.

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agreed), that the City consider investing in a platform to identify and monitor illegal short-term rentals (Council agreed to re-visit this), and to get professional photos taken of Councilmembers and Directors (Council did not concur).

Mayor Williams requested to bring to Council revised guidelines for making nominations (council agreed). Attended a TID meeting and Solage GM Alcon was appointed to represent Calistoga.

Mayor joined the sub-committee to represent the City.

9. ADJOURNMENT
Mayor Williams adjourned the meeting, at 8:20 p.m.

Respectfully submitted:

Prepared by: Approved by:
______________________ ______________________
Yudiana Galvan, City Clerk Donald Williams, Mayor
Item #5.2.

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MINUTES

CALISTOGA CITY COUNCIL

SPECIAL MEETING
Tuesday, December 10, 2024 - 6:00 PM
Hybrid
A. CALL TO ORDER – ROLL CALL
Mayor Williams called the regular session to order at 6:01 p.m.

Present: Mayor Williams, Vice Mayor Lopez Ortega and Councilmember Eisenberg, Cooper and Gift.

Absent:

B. GENERAL GOVERNMENT

1. Adoption of Resolution No. 2024-93 - Declaration of the Final Results of the November 5, 2024, General Municipal Election as reported by the Napa County Registrar of Voters. Motion Carried.

AYES: Mayor Williams, Vice Mayor Lopez Ortega and Councilmembers Eisenberg, Cooper and Gift
NOES:

ABSENT:

ABSTAIN:

2. Administering Oaths of Office to the Elected Mayor and Two Councilmembers.

Mayor Williams, Vice Mayor Lopez Ortega and Councilmember Gift took their Oath of Office as newly elected Councilmembers.

3. Appointing a Councilmember to Serve as Vice Mayor.

There was no public comment.

Mayor Williams nominated Vice Mayor Lopez-Ortega to continue in the roll of Vice Mayor, seconded by Councilmember Cooper. Motion Carried.

AYES: Mayor Williams, Vice Mayor Lopez Ortega and Councilmembers Eisenberg, Cooper and Gift
NOES:

ABSENT:

ABSTAIN:

4. Adoption of Resolution No. 2024-94 - Establishing the 2025 City Council Meeting Schedule.

There was public comment by Wyatt Ferris, Rob Serini and Aaron Heth. Council Item #5.2.

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discussed the item.

Motion by Mayor Williams to adopt the triweekly 2025 Meeting Schedule as presented, seconded by Councilmember Scott. Motion Carried.

AYES: Mayor Williams and Councilmembers Cooper and Eisenberg NOES: Vice Mayor Lopez Ortega and Councilmember Gift
ABSENT:

ABSTAIN:

5. Adoption of Resolution No. 2024-95 - Confirming the Mayor's Appointments of Councilmembers to Various Boards and Committees.

Councilmember Eisenberg made a motion to confirm the appointments, seconded by Mayor Williams. Motion Carried.

AYES: Mayor Williams, Vice Mayor Lopez-Ortega and Councilmembers Eisenberg, Cooper and Gift.

NOES:

ABSENT:

ABSTAIN:

C. ADJOURNMENT
Mayor Williams adjourned the meeting, at 6:31 p.m.

Respectfully Submitted
Prepared by: Approved by:

Yudiana Galvan, City Clerk Donald Williams, Mayor
Item #5.2.

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City of Calistoga

STAFF REPORT
To: Honorable Mayor and City Council
From: Greg Desmond, Planning & Building Director
Meeting: City Council - Feb 04 2025
Subject: Consultant Services Agreement Amendment - EPS
DESCRIPTION:

Consideration a Resolution authorizing an amendment to Consultant Services Agreement (No. 921) with Economic & Planning Systems, Inc. (EPS) to prepare a comprehensive update of the Calistoga Development Impact Fee Program.

RECOMMENDATION:

Consider Adopting the Resolution
SUMMARY:

The City entered into a Consultant Services Agreement with EPS to update its Development Impact Fee program in 2023. The original project budget was $80,000.

ANALYSIS:

Due to unforeseen circumstances which led to an extended schedule which in turn required additional coordination, the consultant is requesting an amendment of $5,000 to cover the costs associated with working on this project (Attachment 2).

FINANCIAL IMPACT:

General Fund account 01-4115-4402 has the funds to accommodate this amendment in the FY 2024/25 budget.

CEQA STATUS:

Exempt
ATTACHMENT(S):

ATTCH 1 CC Resolution
ATTCH 2 CC Amendment
APPROVAL(S):

Connie Cardenas, Admin. Services Director Approved - Jan 17 2025 Laura Snideman, City of Calistoga | City Manager Approved - Jan 27 2025 Yudiana Galvan, City of Calistoga | City Clerk Approved - Jan 28 2025 Item #5.3.

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ATTACHMENT 1
RESOLUTION NO. 2025-XXX
AUTHORIZING AN AMEDMENT TO AGREEMENT No. 921

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

NAPA, STATE OF CALIFORNIA AUTHORIZING THE CITY MANAGER TO AMEND

THE EXISTING AGREEMENT FOR CONSULTANT SERVICES WITH ECONOMIC & PLANNING SYSTEMS, INC. FOR A COMPREHENSIVE UPDATE OF THE CITY’S

DEVELOPMENT IMPACT FEES
WHEREAS, the City’s development impact fees need to be updated to reflect the actual costs of public facilities and improvements; and WHEREAS, fee adoption is required by state law to be based on a demonstrable, clear and reasonable relationship between new development and improvements needed to serve it; and
WHEREAS, the fees also need to be sufficient to fund capital facilities, while being responsive to economic realities; and
WHEREAS, Consultant hereby warrants to the City that Consultant is skilled and able to provide such services described in the Consultant Services Agreement; and WHEREAS, City desires to retain Consultant pursuant to this Agreement to provide the services described in the of Consultant Services Agreement; and WHEREAS, the Consultant fee for services shall not exceed $80,000 as conveyed in the Consultant Services Agreement; and
WHEREAS, due to unforeseen circumstances which led to an extended schedule which in turn required additional coordination, the consultant is requesting an additional $5,000 to cover the costs associated with working on this project.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Calistoga hereby authorizes the City Manager to amend the existing agreement for consultant services with Economic & Planning Systems, Inc for a total, not to exceed amount of $85,000.

PASSED, APPROVED AND ADOPTED this 4
th day of February 2025. I,

YUDIANA GALVAN, CITY CLERK OF THE CITY OF CALISTOGA, HEREBY CERTIFY the foregoing resolution was introduced and passed at a regular meeting of the Calistoga City Council by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST: APPROVED:
_________________________ __________________________
Item #5.3.

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ATTACHMENT 1
Yudiana Galvan, City Clerk Donald Williams, Mayor
Item #5.3.

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AMENDMENT NO. 1 TO AUTHORIZING AGREEMENT NO. 921

AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT
FOR CONSULTANT SERVICES WITH ECONOMIC & PLANNING SYSTEMS, INC.

FOR A COMPREHENSIVE UPDATE OF THE CITY’S DEVELOPMENT IMPACT FEES This Amendment No. 1 (“Amendment”) to Authorizing Agreement No. 921 (“Agreement”) is dated this 4th day of February 2025, by and between the City of Calistoga, herein called the "City", and Economic Planning Systems, Inc. (EPS), herein called the "Consultant".

RECITALS
A. City and Consultant entered into the Agreement effective February 7, 2023, by which the Consultant agreed to provide Development Impact Fee Update services more particularly described in the Agreement.

B. City and Consultant have operated under this Agreement since this agreement was adopted.

C. Due to unforeseen circumstances which led to an extended schedule which in turn required additional coordination, the consultant is requesting an additional $5,000 to cover the costs associated with working on this project.

AGREEMENT
NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:

1. Not to Exceed Amount. This amendment increases the EPS Agreement to a not-to-exceed budget for non-cost recovery items by $5,000 for a total of $85,000.

2. Incorporation by Reference. This Amendment hereby incorporates by reference all terms and conditions set forth in the Agreement, unless specifically modified by this Amendment. All terms and conditions set forth in the Agreement which are not specifically modified by this Amendment shall remain in full force and effect.

IN WITNESS WHEREOF, the City and Consultant have executed this Agreement as of the date first above written.

CITY OF CALISTOGA
By: ________________________________
Laura Snideman, City Manager
ECONOMIC PLANNING SYSTEMS, INC.

By: _____________________________
Teifion Rice-Evans, Managing Principal
ATTEST
By: _______________________
Yudiana Galvan, City Clerk
Item #5.3.

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City of Calistoga

Consideration of a resolution authorizing an amendment to Agreement No. 873 with First Carbon Solutions to reinstate the CEQA review process for the Yellow Rose Project (VTM 2020-2).

RECOMMENDATION:

Consider Adopting the Resolution
SUMMARY:

In February of 2021, First Carbon Solutions was selected to prepare an environmental impact report for the Yellow Rose Ranch project via Professional Services Agreement No. 873. At that time, the project budget was a not to exceed amount of $193,495. In July of 2023 the agreement was amended to allow an additional not to exceed amount of $19,800. In September of 2023, a stop work order was issued for the project due to unpaid processing fees accrued by the applicant. In September of 2024, the applicant submitted payment for all outstanding invoices, and as a result, staff and consultants have re-initiated work on the project. Given the delay and the time required to reinstate the project, First Carbon Solutions is seeking an additional amendment of a not to exceed amount of $59,609.

ANALYSIS:

Due to the circumstances mentioned above, the city and FCS agree it is necessary to amend the agreement to increase the not to exceed amount by $59,609. This amount includes the offset of $7,266 reallocated from the original agreement.

FINANCIAL IMPACT:

The amount of the agreement amendment ($59,609) will be paid for by the developer through an existing Developer Deposit Account (42-2220-0318).

CEQA STATUS:

Exempt
ATTACHMENT(S):

ATTCH 1 CC Resolution
ATTCH 2 - Augment
ATTCH 2 Amendment No. 2 PSA 873
ATTCH 3 PSA 873 - FirstCarbon Solutions
Item #5.4.

Page 30 of 310 ends

ATTCH 4 Amendment No. 1 PSA 873
APPROVAL(S):

Greg Desmond, Planning & Building Director Approved - Jan 24 2025 Connie Cardenas, Admin. Services Director Approved - Jan 24 2025 Laura Snideman, City of Calistoga | City Manager Approved - Jan 27 2025 Yudiana Galvan, City of Calistoga | City Clerk Approved - Jan 28 2025 Item #5.4.

Page 31 of 310 ends

ATTACHMENT 1
RESOLUTION NO. 2025-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALISTOGA

AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT
(AMENDMENT No. 2) TO PROFESSIONAL SERVICES AGREEMENT NO. 873 WITH

FIRST CARBON SOLUTIONS FOR THE YELLOW ROSE RANCH PROJECT WHEREAS, the City of Calistoga, Planning and Building Department received a Vesting Tentative Map application on January 19, 2021 to develop 46 single-family homes on an approximately 46.3-acre site located at 2650 Foothill Blvd (SR 29/128); WHEREAS, on February 25, 2021, the Interim City Manager executed a Professional Services Agreement with First Carbon Solutions (“Consultant”) for a not to exceed amount of $193,495 to prepare an Environmental Impact Report (EIR) for the Yellow Rose Ranch Project; and
WHEREAS, on July 18, 2023, the City Manager approved an amendment to the Agreement authorizing an increase to the not to exceed amount by $19,800 for additional services requested by the applicant; and
WHEREAS, on September 19, 2023, the City issued a Stop Work Order due to a significant amount of accrued processing fees unpaid by the applicant. Payment for all outstanding processing fees was made by the applicant in September of 2024, and work has been reinstated.

WHEREAS, On December 18, 2024, the City received a request from First Carbon Solutions to increase the not to exceed amount by $59,509 for several anticipated out of scope tasks to reinstate the project’s Environmental Impact Report.

This amount includes the offset of $7,266 left over from the original Professional Service Agreement No. 873; and
WHEREAS, the applicant, True Life Companies, shall be responsible for fee reimbursement not to exceed $59,509 as conveyed in in Exhibit A of Amendment No 2. to Professional Services Agreement No. 873 between First Carbon Solutions and the City of Calistoga; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Calistoga hereby authorizes the City Manager to amend the professional services agreement with First Carbon Solutions for the EIR for the Yellow Rose Project.

PASSED, APPROVED AND ADOPTED this 4th day of FEBRUARY 2025. I YUDI GALVAN, 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:

Item #5.4.

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ATTACHMENT 1
___________________________
DONALD WILLIAMS, Mayor
ATTEST:
_________________________
Yudi Galvan, City Clerk
Item #5.4.

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UNITED STATES
T +1 888 826 5814
T +1 714 508 4100
F +1 714 508 4110
E [email protected]
Irvine
250 Commerce
Suite 250
Irvine, CA 92602
Bay Area
2999 Oak Road
Suite 250
Walnut Creek, CA 94597
Central Valley
7726 N. First Street
#413
Fresno, CA 93720
Inland Empire
967 Kendall Drive
#A-537
San Bernardino, CA 92407
Sacramento Valley
2351 Sunset Boulevard
Suite 170-301
Rocklin, CA 95765
Utah
2901 Bluegrass Boulevard
Suite 200-62
Lehi, UT 84043
Connecticut
2 Corporate Drive
Suite 450
Shelton, CT 06484
New York
10 Monument Street
Deposit, NY 13754
56 Broome Corporate Parkway
Conklin, NY 13748
CANADA

UNITED KINGDOM

PORTUGAL
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KENYA

AUSTRALIA

PHILIPPINES
CHINA

MALAYSIA

SINGAPORE
Cover Letter
December 18, 2024
Greg Desmond, Planning and Building Director
City of Calistoga
Planning and Development
1232 Washington Street
Calistoga, CA 94515
Subject: Contract Augment Request #2 for the Yellow Rose Ranch Project in Calistoga, California
Dear Greg:

As part of ongoing efforts to prepare the Environmental Impact Report (EIR) for the Yellow Rose Ranch Project, FirstCarbon Solutions (FCS) requests use of the remaining Initial Study fund and approval of an augment to the contract for the out-of-scope work performed at the City’s request.

In 2021, FCS was in the process of preparing an Initial Study prior to the release of the Notice of Preparation. However, after discussion with the City and applicant, it was decided to move forward with preparing the EIR. Thus, the Initial Study task has a remaining budget of $7,266.

This augment request summarizes the additional work that has been performed at the City’s request and offsets the total requested amount by $7,266.

FCS is committed to responding to project needs in a timely and cost-effective manner. We look forward to discussing this request further with you. Please do not hesitate to contact me with any questions or to discuss this request in more detail.

Should you have any questions regarding this proposal, please contact me at 415.713.5223 or by email at [email protected].

As always, we are grateful to partner with the City of Calistoga and look forward to assisting you with your ongoing environmental needs.

Sincerely,
Mary Bean, Senior Vice President/Director
FirstCarbon Solutions
2999 Oak Road, Suite 250
Walnut Creek, CA 94597
Item #5.4.

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1 Change Order 1

SCOPE OF WORK
Task 1: Air Quality Analysis Update
FCS began air quality modeling in 2021, using the CalEEmod version then in effect. Subsequently, the project was put on hold. Once the project was re-initiated, FCS confirmed the current version of CalEEMod and needed to remodel air quality emissions to utilize the latest version of CalEEMod and account for new BAAQMD thresholds and 2022 Scoping Plan updates.

The revisions included background section updates, CalEEMod updates, updates to the BAAQMD thresholds, and reference updates. In addition, the original scope of work only assumed a single phase of construction, but due to updated project phasing (including the additional off-site improvements), multiple construction modeling runs had to be performed.

Task 2: Incorporation of Additional and Updated Studies into the EIR Under this task, FCS will review Fehr and Peers’ Wildfire Evacuation Modeling report and provide comments. FCS will also summarize the methodology, threshold, and findings in the EIR Wildfire section and include the report as an appendix to the EIR.

In addition, It is our understanding that the applicant and their attorney have reviewed the project’s transportation impact study and suggested revisions to the mitigation measures and relevant findings.

These revisions are still being reviewed by the City. This scope assumes a nominal amount for FCS to consider and update the Transportation section of the EIR, if so directed by the City.

Task 3: Alternatives
As requested by the applicant, FCS will analyze two sewer alternatives in the Alterative section of the Draft EIR. FCS’s original scope assumes analysis of up to two alternatives in addition to the CEQAmandated “No Project Alternative”. However, given the number of anticipated significant and unavoidable impacts such as Vehicle Miles Traveled (VMT) and Greenhouse Gas Emissions, other alternatives will need to be explored and analyzed in order to present a reasonable range of alternatives that would lessen project impacts. FCS anticipates up to 5 total alternatives (including No Project Alternative) will need to be discussed and analyzed, and requests additional funds to conduct the analysis.

Task 4: Additional ADEIR Comments
In accordance with the scope of work, FCS previously submitted the Administrative Draft EIR to the City.

Comments were received and incorporated into the document prior to the project being put on hold.

The city is now conducting an additional review of the Administrative Draft EIR. FCS will be required to reconcile the new and old comments prior to submitting the Screencheck Draft EIR. This effort is beyond our scope of work and therefore additional funds are required. This augment covers an estimated Item #5.4.

Page 35 of 310 ends

2 Change Order 1
amount of time to complete this task. Should the effort exceed the budget, additional funds will be required.

Task 5: Ongoing Bi-Weekly Check-In Calls
Contract augment #1 included funds for 25 bi-weekly check in calls with the City and applicant through August 2023. Due to the extended project schedule, FCS requests additional funds to attend bi-weekly meetings through June 2025, for a total of 15 additional meetings.

Task 6: Project Management
FCS continues to conduct ongoing project management and coordination as outlined under the original contract. Due to the protracted schedule, and the continued oversight of the project, including, but not limited to the tasks identified as part of this augment request, coordination with the City, their consultants (i.e., Fehr and Peers, M-Group, etc.), and our internal staff through the remainder of the entitlement effort, FCS requests additional funds to cover ongoing project management and coordination tasks.

Task 7: Project Reinitiation
The City issued FCS a stop work order for this project in October of 2023, putting it on hold for almost a year. Several out of scope tasks will be required to reinitiate work of this project due to the lapse in time including adjustment to staffing, refamiliarization with project details for each staff member, schedule adjustments, and additional internal and external meetings.

COST ESTIMATE
The proposed fees are based upon the Scope of Work described above. Assuming the $7,266 remaining fund to prepare the Initial Study is applied to the total fee of $66,875, FCS is requesting $59,609 of additional funding to complete the associated tasks outlined below.

Task Fees
Task 1: Air Quality Analysis Update $21,025
Task 2: Incorporation of Additional and Updated Studies into the EIR $9,150 Task 3: Alternatives Analysis $10,340
Task 4: Additional ADEIR Comments $11,000
Task 5: Ongoing Bi-Weekly Check In Calls $3,680
Task 6: Project Management $7,500
Task 7: Project Reinitiation $4,180
Total Amount $66,875
Item #5.4.

Page 36 of 310 ends

3 Change Order 1
Task Fees
Remaining Initial Study Budget ($7,266)
Augment $59,609
The budget assumptions used in calculating the proposed costs include:
• The proposal including cost estimate is valid for up to 30 days from the date of this scope. • Costs have been allocated to tasks based upon FCS’s proposed approach. During the work, FCS may, on its sole authority, re-allocate costs among tasks and/or direct costs, as circumstances warrant, so long as the adjustments maintain the total price within its authorized amount.

Item #5.4.

Page 37 of 310 ends

ATTACHMENT 2
AMENDMENT No. 2
to
AGREEMENT No. 873 FOR CONSULTANT SERVICES
This Amendment No. 2 (“Amendment”) to Authorizing Agreement No. 873 (“Agreement”) is dated this 4
th day of February 2025, by and between the City of
Calistoga, herein called the "City", and First Carbon Solutions, herein called the "Consultant".

RECITALS
A. City and Consultant entered into the Agreement effective February 25, 2021, by which the Consultant agreed to provide environmental review services more specifically described in the Agreement in connection with the Yellow Rose Ranch Project (VTM 2020-2), and that cost recovery charges were not to exceed $193,495.00.

B. City and Consultant amended this agreement effective July 18, 2023, for a not to exceed amount of $19,800 for additional costs related to work requested by the Applicant, TTLC Calistoga, LLC – Yellow Rose Ranch.

C. The City issued a Stop Work Order on September 19th, 2023 due to a significant amount of unpaid processing fees that had accrued. Payment was made by the applicant for all outstanding processing fees September of 2024, and work has been reinstated.

D. Due to additional costs required to reinstate the project because of the lapse in time, the City and First Carbons Solutions agree it is necessary to amend the Agreement to increase the not to exceed amount by $59,609. This amount includes the offset of $7,266 reallocated from the original Professional Services Agreement No. 873.

AGREEMENT
NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:

1. Not to Exceed Amount. This amendment increases First Carbon Solution’s notto-exceed budget by $59,609 for a total of $272,904 for environmental review services for the Yellow Rose Project (VTM 202-2).

IN WITNESS WHEREOF, the Parties have executed this Amendment as of the date set forth above.

CITY OF CALISTOGA
By: Date:

Laura Snideman, City Manager
Item #5.4.

Page 38 of 310 ends

ATTACHMENT 2

CONSULTANT
By: Date:

By: Date:

Attest
By:

Yudiana Galvan, City Clerk
Approve As To Form
By:

Michelle Marchetta Kenyon, City Attorney
Item #5.4.

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Item #5.4.

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Item #5.4.

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Item #5.4.

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Item #5.4.

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Item #5.4.

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Item #5.4.

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Item #5.4.

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Item #5.4.

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ATTACHMENT 4

AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT
Environmental Review Services for The Yellow Rose Ranch Project Amendment No. 1 to Authorizing Agreement No. 873
This Amendment No. 1 ("Amendment") to Authorizing Agreement No. 873 ("Agreement") is dated this 18th day of July 2023, by and between the City of Calistoga, herein called the "City", and FirstCarbon Solutions (FCS), herein called the "Consultant".

RECITALS
A. City and Consultant entered into the Agreement effective February 25, 2021, by which the Consultant agreed to provide environmental review services more particularly described in the Agreement, and that cost recovery charges were not to exceed $193,495.00.

B. Due to additional anticipated costs related to work requested by the Applicant, TTLC Calistoga, LLC - Yellow Rose Ranch (Exhibit A) and authorized by the City, both parties agree it is necessary to amend the Agreement to reissue the original contract and not-to-exceed amount for fiscal year 2023-24.

AGREEMENT
NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:

1. Not to Exceed Amount. This amendment reissues the consultant's not-toexceed budget for non-cost recovery items for a total of $19,800 (Exhibit B) for fiscal year 2023-24.

IN WITNESS WHEREOF, the City and Consultant have executed this Agreement as of the date first above written.

CITY OF CALISTOGA FIRSTCARBON SOLUTIONS
By: �
Laura Snideman, City Manager
Item #5.4.

Page 48 of 310 ends

SCOPE OF WORK EXHIBIT A
Task 1: Bi-Weekly Meeting Through August 2023
As requested by the City, FCS will attend bi-weekly, 30--minute meetings to discuss project status with the City and applicant. This task assumes bi-weekly meeting attendance through August 2023, for a total of 25 bi-weekly meetings.

Task 2: NOP Filing
FCS personnel posted the Notice of Preparation (NOP) at the Napa County Oerk's office. This task includes staff time and mileage.

Task 3: Scoping Meeting Preparation and Presentation
FCS prepared the scoping meeting presentation and hosted the virtual scoping meeting. This task includes all preparation leading to the scope meeting.

Task 4: Offsite Sewer Improvement Modeling and Analysis This task indudes the additional modeling work and analysis that need to be done to capt ure the impacts related to t he offsite sewer improvement, including the modeling work needed for the two offsite sewer alternatives to be analyzed In the Project Alternatives section of the EIR ..

Task 5: AB 52 Assistance
FCS prepared tribal consultation letter for tne City. This task also includes two rounds of virtual meetings with tne tribe and t he City to help facilitate t he consultation.

Task 6: Cult ural Updated Record Search Assistance
Due to the age of the cultural report and t he need to analyze offsite sewer improvements in the cultural report, FCS performed In-person cultural record search at the Northwest lnfom,ation Center and shared the latest dat a with applicant's cultural specialist to update their report.

Task 7: Paleonto logical Resources Record Search
FCS conducted paleontological resources record search to address project's paleontological resource impacts in the EIR.

Task 8: Expedited EIR Submittal
In order t o expedite the EJR preparation and review process, FCS will deliver the Administrative Draft in batches. The first batch was submitted in October and t he second batch in November. This required additional coordination with the City, project Applicant, and additional internaI1 consultant t eam coordinat ion {including tech teams, legal counser, publications, and senior revi~wers). A batch submittal requires the original project resources to be allocate<l d'ifferently, as a result of a shift in staff prioritization of sections for each batch.

Task 9: Project Management
FCS continues to conduct ongoing project management and coordination as outlined under the original contract. Subsequent changes to the proposed project have resulted in the need for an extension to the project schedule and a corresponding need for additional management and coordination with the City and applicant team, FCS requests an additional replenishment of funds $6,500 to cover ongoing project management and coordination anticipated to main the project.

Item #5.4.

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I:XBlBITB
Compe-osation
CITY shall pay CONSULTANT for the Sen°ices 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 Agreem~t. Compensation shall include only the follo\.ving 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.

2. Subcon.sultaut Costs
Subconsultant services shall be billed at cost plus a 10 percent marl"llp. CONSULTANT shall pro,-ide a copy of each subconsultant's invoice for which it seeks payment from CITY wit.h any invoice in which such payment is requested

3. OT.her Direct Cost'>
The following categories of costs are eligible for reimbursement, which shall be made at the actual cost to CONSULTA.."l'IIT without any additional mark-up:
a. Re-asonable living and traYeling expenses of employees when away from home office on business in its prosecution of the Services. CONSULTANT must have prior appro·val of CITY to be reimbursed for these expenses.
b. Automobile expenses for personal vehicle ui,e. if necessary. at the IRS approved mileage rate,
c. Reproduction of drawings and specifications by CONSUL TANT as required under this Agreement, at rates prevailing in this community for bulk reproduction or at other reasonable rates approved by CITY.
cl Special overnight delivery or messenger sen-ices.

Payments to CONSULTANT for reimbursable costs/expenses will be made only after the specinc costs/expenses have been incurred and CONSULT ANT has submitted substantiating documentation. sucli as copies of paid invoices or other documffitation confirming that such_ costs/expenses haYe been incurred.

Item #5.4.

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EXHIBIT B-1
Labor Hourly Rates
Task
Task 1: Bi-Weekly Meeting Through August 2023
Task 2: NOP Fifing
Task 3: Scoping Meeting Preparation and Prese.ntation
Task 4: Offsite Sewer Improvement M odeling and Analysis Task 5: AB 52 Assistance
Task 6: Cultural Updated Record Search Assistance
Task 7: Paleantological Resources Record Search
Task 8: Expedited EJR Submittal
Task 9: Project Management
Total Amount
Contingency Fund
:Augment
FCS Personnel
President
Director/Vice President
Legal Counsel
Associate Director/Sr. Team Leader
Senior Project Manager/Senior Scientist/Senior Regulatory Scientist Project Manager/Scientist/Regulatory Scientist
Assistant Project Manager/Assistant Scientist/Assistant Regulatory Scientist I Environmental Analyst/Technical Analyst/Regulatory Analyst Senior Graphic Designer/GIS Manager
Graphic Designer/GIS/CADD Specialist
Publications Coordinator/Technical Editor
Word Processor
Archaeological/Pa I eontclogical Monitor 1/11
Archaeological/Paleontological Monitor 111
Biological Monitor 1/ 11
Biological Monitor Ill
Reprographics Assistant/Intern
Adminfstrative Assistant/ Accounting/Clerical
Fee&
$S,980
$710
$2,555
$7,750
$2,130
$1,725
$1,010
$9,000
$6,500
I $37,360
($17,560}
$19,800
.iourly Labor Rate
($USO)
$310--$340
$260--$310
$220--$250
$220--$250
$190--$220
$140--$190
$115-$140
$95-$115
$140-$195
Sll0--$150
$10~$140
$90-$120
$80--$110
$110-$140
$80-$130
$13~$160
$70--$90
$7~$110
Item #5.4.

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City of Calistoga

STAFF REPORT
To: Honorable Mayor and City Council
From: Greg Desmond, Planning & Building Director
Meeting: City Council - Feb 04 2025
Subject: Napa Countywide Climate Action Committee Regional Climate Action and Adaptation Plan (RCAAP)
DESCRIPTION:

Consideration of a resolution authorizing the appropriation of additional funds in the amount of $6,370.25 to Napa County for the (RCAAP).

RECOMMENDATION:

Consider Adopting the Resolution
SUMMARY:

The Napa Countywide Climate Action Committee (CAC) is a non-binding consortium of local government representatives organized through a joint powers agreement.

The CAC is preparing the RCAAP, with Napa County leading the staffing and funding efforts. The County received a $500,000 allocation from the State, which deferred much of the cost to prepare the RCAAP.

ANALYSIS:

Ascent Environmental, the consultant preparing the RCAAP, has requested additional funding in the amount of $76,750 to cover the cost of work.

The scope of additional work is primarily related to the CAC's request for increased public outreach, responding to public comments to Napa Climate NOW! efforts, and to look more closely at the issue of black carbon.

Any amount over the $500,000 is the responsibility of the JPA members, per the following formula:

Napa County: 33%
City of Napa: 29.9%
American Canyon: 12.8%
St Helena: 8.5%
Calistoga: 8.3%
Yountville: 7.5%
The additional funding would be spread to each JPA members as follows:

Napa County: $25,327.50
City of Napa: $22,948.25
Item #5.5.

Page 52 of 310 ends

American Canyon: $9,824.00
St Helena: $6,523,75
Calistoga: $6,370.25
Yountville: $5,756.25
The RCAAP is anticipated to be completed in the first quarter of 2025, so funding will come from the current FY 24/25 budget.

FINANCIAL IMPACT:

This additional appropriation will be drawn from current FY 24/25 general fund account number 01- 4107-4567.

CEQA STATUS:

Exempt
ATTACHMENT(S):

ATTCH 1 CC Resolution
APPROVAL(S):

Page 53 of 310 ends

RESOLUTION NO. 2025-XX

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

OF NAPA, STATE OF CALIFORNIA, AUTHORIZING THE APPROPREATION OF

ADDITIONAL FUNDS TO NAPA COUNTY FOR THE REGIONAL CLIMATE

ACTION PLAN (RCAAP)
WHEREAS, in June 2019, the Member Agencies all adopted Resolutions regarding the "Countywide Commitment to Address Climate Change," to do the following: (1) address climate change in their respective General Plans, consistent with State guidelines; (2) form a committee to identify countywide goals and strategies for addressing climate change, including an updated greenhouse gas (GHG) inventory, countywide GHG goal and timeline, and common GHG reduction standards for each jurisdiction to adopt independently; and (3) identify potential threats and funding to improve community resiliency; and
WHEREAS, in April 2021, the City of Calisotga entered into a Cooperatice Joint Powers Agreement (JPA) between the City of American Canyon, City of Calistoga, City of St. Helena, Town of Yountville, and County of Napa to share costs to fund and administer the Napa Countywide Climate Action Committee Regional Climate Action and Adaptation Plan (RCAAP); and
WHEREAS, the Climate Action Committee is preparing the RCAAP using $500,000 from the State and any amount over is the responsibility of the JPA members; and
WHEREAS, Ascent Environmental, the consultant preparing the RCAAP, has requested additional fuding to cover additional work.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CALISTOGA DOES HEREBY resolve as follows:

1. The City Council authorizes the appropriation of additional funds in the amount of $6,370.25 to be taken from account # 01-4107-4567 to Napa County for the Regional Climate Action and Adaptation Plan (RCAAP).

PASSED, APPROVED AND ADOPTED this 4 day of February 2025. I,

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST: APPROVED:

Yudiana Galvan, City Clerk Donald Williams, Mayor
Item #5.5.

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City of Calistoga

STAFF REPORT
To: Honorable Mayor and City Council
From: Sheli Wright, Fairgrounds Revitalization Director Meeting: City Council - Feb 04 2025
Subject: Execution of the License Agreement with Hunt Motor Sports Concepts LLC for nonexclusive sprint car racing.

DESCRIPTION:

Consider adopting a resolution to authorize the execution of the License Agreement with Hunt Motor Sports Concepts LLC for non-exclusive sprint car racing.

RECOMMENDATION:

Consider Adopting the Resolution
SUMMARY:

The City Council has prioritized fairground infrastructure projects that will generate revenue to offset general fund subsidies for the fairgrounds. One method of achieving this is longer-term facility licenses that could include licensee-funded infrastructure upgrades in place of license payments.

This structure contributes to fiscal sustainability by reducing the need for city funding for projects and promoting the long-term viability of the property.

On November 19, 2024, the City Council directed staff to negotiate a short-term lease agreement with Hunt Motor Sports Concepts, LLC for non-exclusive sprint car racing, which would provide financial support and infrastructure repairs. Staff are presenting a License Agreement with Hunt Motor Sports Concepts, LLC (HMSC) for Council review.

ANALYSIS:

The two-year agreement proposes that HMSC will perform repairs to the grandstands for an estimated cost of $100,000 in lieu of payment for two seasons of sprint car racing, with one race weekend in 2025, and up to three race weekends in 2026. Racing would conclude by 10:00 pm and lights be turned off by 11:00 pm.

Under the agreement, HMSC has operational rights to concession, admission, and merchandise sales. The City retains the rights to alcohol sales and RV Parking fees. HMSC will pay a flat $300/day to cover many utilities and will additionally pay directly for other services. In addition, both parties may sell sponsorships to the track with the City holding 100 tickets per race for their sponsors.

Staff believes this agreement will be beneficial in accomplishing infrastructure improvements at the fairgrounds and contributing financial support to the fairgrounds.

FINANCIAL IMPACT:

Item #5.6.

Page 55 of 310 ends

The city is projected to generate approximately $7,500 per race in alcohol sales and $9,000 per race in RV parking fees. The contract allows for up to four race weekends, with two days of racing per weekend, resulting in the potential revenue of $115,200, based on historical race data. Additionally, Hunt Motor Sports Concepts LLC (HMSC) is obligated to undertake grandstand repairs, valued at an estimated $100,000, which will enable the venue to accommodate additional events and rentals.

The total estimated financial impact of this arrangement is $215,200 in funding towards the operation of the grounds.

CEQA STATUS:

No CEQA review is required.

ATTACHMENT(S):

Resolution for HMSC LLC License Agreement
HMSC License Agreement with ZFA Report -Final - signed
APPROVAL(S):

Connie Cardenas, Admin. Services Director Approved - Jan 02 2025 Rachel Stepp, Deputy City Manager Approved - Jan 24 2025 Laura Snideman, City of Calistoga | City Manager Approved - Jan 28 2025 Yudiana Galvan, City of Calistoga | City Clerk Approved - Jan 28 2025 Item #5.6.

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RESOLUTION NO. 2025-XXX

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

NAPA, STATE OF CALIFORNIA, AUTHORIZING THE EXECUTION OF A LICENSE SERVICES AGREEMENT WITH HUNT MOTOR SPORTS CONCEPTS LLC.

WHEREAS, the Calistoga City Council has placed priority on the fairground infrastructure projects that will allow for revenue generation to offset general fund subsidies to the fairgrounds; and
WHEREAS, on November 19, 2024, the Calistoga City Council directed staff to negotiate a contract with Hunt Motor Sports Concepts, LLC, for two seasons of sprint car racing; and
WHEREAS, the Calistoga City Council wishes to enter into a license services agreement with Hunt Motor Sports Concepts, LLC to repair the grandstands in lieu of payment for two seasons of sprint car racing; and
NOW, THEREFORE BE IT RESOLVED that the Calistoga City Council hereby authorizes the City Manager to execute a two-year license services agreement with Hunt Motor Sports Concepts, LLC, and further authorizes the in-kind services of repair of the grandstands for two seasons of racing.

PASSED, APPROVED AND ADOPTED this 4th day of February 2025.

I, YUDIANA GALVAN, 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, City Clerk Donald Williams, Mayor
Item #5.6.

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NON-EXCLUSIVE SITE

LICENSE AGREEMENT

BY AND BETWEEN

CITY OF CALISTOGA,
a California municipal corporation

AS LICENSOR
and

HUNT MOTOR SPORTS CONCEPTS LLC

AS LICENSEE
Item #5.6.

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TABLE OF CONTENTS
PAGE
4929-6461-6201 v3 2

1. GRANT OF LICENSE ........................................................................................................8

2. LICENSE AREA .................................................................................................................8

2.1 License Area ............................................................................................................8

2.2 Common Area..........................................................................................................8

2.3 Ingress/Egress..........................................................................................................8

2.4 No Representations..................................................................................................8

2.5 Licensor’s Reserved Rights.....................................................................................9 (b) Revenue....................................................................................................................9

2.6 No Interest in Land Granted ....................................................................................9

2.7 Nonexclusive Right................................................................................................9

2.8 Operation of License Area.....................................................................................9

3. TERM: ...............................................................................................................................12

3.1 Generally................................................................................................................12

3.2 Early Termination ..................................................................................................12

4. LICENSE CONSIDERATION:.........................................................................................13

4.1 Base License Consideration...................................................................................13

4.2 Additional Fees......................................................................................................13

4.3 Security Deposit.....................................................................................................13

5. TAXES AND OPERATING EXPENSES: .......................................................................13

5.1 Taxes......................................................................................................................13

5.2 Operating Expenses ...............................................................................................13

6. USE; COMPLIANCE WITH LAWS:...............................................................................14

6.1 Use of License Area...............................................................................................14

6.2 Compliance with Laws ..........................................................................................14

7. UTILITIES.........................................................................................................................14

7.1 No Liability of Licensor.........................................................................................14

8. MAINTENANCE AND REPAIR OF LICENSE AREA..................................................15

8.1 Maintenance and Repair by Licensee ....................................................................15

9. ENVIRONMENTAL PROTECTION PROVISIONS ......................................................15

9.1 Hazardous Materials ..............................................................................................15 Item #5.6.

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TABLE OF CONTENTS
(CONTINUED)
PAGE
3 9.2 Reportable Uses Required Consent .......................................................................15

9.3 Remediation Obligations .......................................................................................16

9.4 Licensor’s Inspection Right ...................................................................................17

9.5 Hazardous Materials Indemnity.............................................................................17

10. INDEMNITY AND WAIVER OF CLAIMS....................................................................17

10.1 Licensee Indemnification.......................................................................................17

10.2 Waiver of Claims...................................................................................................17

10.3 Survival/No Impairment ........................................................................................18

11. INSURANCE.....................................................................................................................18

11.1 Licensee’s Insurance..............................................................................................18

11.2 Additional Insureds................................................................................................18

11.3 Notice of Cancellation ...........................................................................................19

11.4 Sufficiency of Insurance ........................................................................................19

11.5 Insurer Acceptability..............................................................................................19

11.6 Certificate of Insurance..........................................................................................19

12. PROHIBITION AGAINST TRANSFERS........................................................................19

13. SURRENDER....................................................................................................................19

14. NONDISCRIMINATION..................................................................................................20

15. SUBMISSION OF NOTICES ...........................................................................................20

16. DEFAULT .........................................................................................................................20

16.1 Events of Default ...................................................................................................20

16.2 Remedies................................................................................................................21

16.3 Licensor’s Right to Perform Licensee’s Obligations.............................................21

16.4 Severability ............................................................................................................21

17. WAIVER OF RELOCATION ASSISTANCE..................................................................21

18. MISCELLANEOUS. .........................................................................................................21

18.1 Entire Agreement...................................................................................................21

18.2 Amendments..........................................................................................................21

18.3 Severability ............................................................................................................21

18.4 Incorporation of Exhibits and Recitals ..................................................................22 Item #5.6.

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TABLE OF CONTENTS
(CONTINUED)
PAGE
4 18.5 Broker’s Commissions...........................................................................................22

18.6 Attorneys’ Fees......................................................................................................22

18.7 Access by Licensor ................................................................................................22

18.8 Emergencies...........................................................................................................22

18.9 Asbestos Notification for Commercial Property Constructed Before 1979 ..........22

18.10 Lead Warning Statement........................................................................................23

18.11 OFAC Certification................................................................................................23

18.12 Certified Access Specialist Disclosure ..................................................................23

18.13 Rules and Regulations............................................................................................23

18.14 Further Assurances.................................................................................................23

18.15 Time 23

18.16 Captions.................................................................................................................23

18.17 Governing Law ......................................................................................................23

18.18 Authority................................................................................................................24

18.19 Public Records Act.. ..............................................................................................24

18.20 Counterparts...........................................................................................................24 Item #5.6.

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5 INDEX OF EXHIBITS
Exhibit

A LICENSE AREA
A-1 COMMON AREA

B RULES AND REGULATIONS

C LICENSE CONSIDERATION
C-1 ZFA STRUCTURAL ENGINEERS REPORT
Item #5.6.

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6 NON-EXCLUSIVE LICENSE AGREEMENT

BASIC LICENSE INFORMATION
License Date: Dated as of January 1, 2025, for reference purposes only Licensor: City of Calistoga,
a California municipal corporation
Licensor’s Address: City of Calistoga
1232 Washington Street
Calistoga, CA 94515
Tel: 707-942-2805
Attn: City Manager
Notice Copy to:

Fairgrounds Revitalization Director
414 Washington Street
Calistoga, CA 94515
Licensee: Hunt Motor Sports Concepts LLC
DBA Hunt Promotions
Licensee’s Address: 900 Riverside Ave
Roseville, CA 95678
License Area: Calistoga Speedway Track, permanent grandstands, parking, storage area, infield, ticket booths, and on Friday nights only, the Tubbs Building
Building: the Tubbs Building
Length of Term: Twenty-Two (22) months
Commencement Date: January 1, 2025
Expiration Date: October 31, 2026
License Consideration: Licensee shall undertake, at its sole cost and expense, the work and improvements described on Exhibit C, attached hereto and incorporated herein by reference
Security Deposit: $5,000.00
Permitted Use: sprint car races, as described herein
Item #5.6.

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7 Brokers: None
Exhibits A – License Area
A-1 Common Area
B – Rules and Regulations
C- License Consideration
C-1 ZFA Structural Engineers Report
Item #5.6.

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8 LICENSE AGREEMENT
THIS LICENSE AGREEMENT is entered into this __ day of _______, 2025 (“Agreement”), by and between the CITY OF CALISTOGA, a California municipal corporation (“Licensor” or “City”) and HMC Motor Sport LLC (“Licensee”).

1. GRANT OF LICENSE: In consideration of the stated conditions and agreements, Licensor hereby grants permission to Licensee to carry out the Permitted Use within the License Area as described herein below (“License”).

2. LICENSE AREA:

2.1 License Area/Premise. Subject to the terms and conditions of this Agreement, Licensee may occupy those areas as specified in the Basic License Information, as depicted on Exhibit A attached hereto and incorporated herein (“License Area”), for the purposes of sprint car racing.

2.2 Common Area. In addition to the License Area, and subject to the rules and regulations attached hereto as Exhibit A-1, Licensee shall have the non-exclusive right, in common with any other occupants of the Fairgrounds Property to use the common areas (“Common Area”). The use of the Common Area shall be for the non-exclusive use of Licensee and Licensee’s employees, agents, suppliers, customers and patrons, in common with Licensor and all other occupants of the Calistoga Fairgrounds and such other persons to whom Licensor has previously granted, or may hereinafter grant, rights of usage. Licensee shall not be entitled to use the Common Area for storage of goods, vehicles, refuse or any other items. Licensor reserves the right to alter, modify, enlarge, diminish, reduce or eliminate the Common Areas from time to time in its sole discretion. If Licensee shall use any of the Common Area for storage of any items, Licensee shall pay all fines and other charges imposed upon either Licensor or Licensee by any fire, building or other regulatory body, and Licensee shall pay all costs incurred by Licensor to clear that portion of the Common Area so used by Licensee and dispose of such items.

2.3 Ingress/Egress. Ingress to and egress from the License Area for attendees of race events or the general public shall only be through the general parking and ticket booth behind the main lawn, or the main ticket booth off N. Oak Street. Licensor reserves the right to change such ingress and egress from time-to-time.

2.4 No Representations. Licensee accepts the License Area in “AS-IS” condition “WITH ALL FAULTS” without any representations or warranties by Licensor, and with no obligation of Licensor to make alterations, repairs or improvements to the License Area.

Licensee acknowledges that neither Licensor nor any agent of Licensor has made any representation or warranty with respect to the suitability of the License Areas for the conduct of Licensee’s business. Licensor shall not be liable for any latent or patent defects in the License Area. Licensee acknowledges that there are needed improvements and deferred maintenance conditions on and about the License Area. Accordingly, Licensor expressly disclaims any warranty of fitness or merchantability of the Licensed Area for Licensee’s intended use. Licensee acknowledges that Licensee has had ample opportunity to view, inspect and use the Licensed Area, and has performed such inspection as Licensee deems necessary, and therefore, is willing to accept the License Area in its AS-Is condition, with all faults and without any warranty whatsoever, express or implied.

Item #5.6.

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9 2.5 Licensor’s Reserved Rights.
(a) Generally. Licensor hereby reserves the right, and at any time and from time to time, without the same constituting an actual or constructive eviction, to make alterations, additions, repairs, improvements to or in all or any part of the Building, and Common Area within and around the Building and to change the arrangement and/or location of entrances or passageways, ingress, egress, doors and doorways, corridors, elevators, stairs, toilets and other public parts of the Building and parking areas, drive isles, landscaping, curb cuts and paved and unpaved portions of the exterior Common Area. Without limiting the foregoing, Licensor reserves the right from time to time to install, use, maintain, repair, relocate and replace pipes, ducts, conduits, wires, meters and equipment for services to the License Area or other part of the Building which are above the ceiling surfaces, below the floor surfaces, within the walls and in the central core areas of the Building which are located within the License Area or located elsewhere in the Building. In connection with any of the foregoing activities, Licensor shall use reasonable efforts to minimize any interference with Licensee’s use of the License Area and shall not, without the prior written approval of Licensee, (a) materially change the location, size or configuration of the License Area; or (b) do anything which would have a material and adverse effect on access to the License Area, or ingress and egress to the License Area. No rights to any view or to light or air over any property, whether belonging to Licensor or any other person, are granted to Licensee by this License.
(b) Revenue. Licensor also reserves the exclusive rights to the allow occupancy of and collect revenue for overnight stays, RV Parking, tent camping and alcohol sales within the Common Area.

2.6 No Interest in Land Granted. Nothing herein shall be deemed to grant to Licensee any fee interest, leasehold, or other possessory interest in the property which the Licensee occupies, or any portion thereof, or any exclusive right or special status to negotiate or purchase. This Agreement grants a limited revocable license upon specified terms and no more.

2.7 Nonexclusive Right. The rights granted to Licensee herein are nonexclusive and shall in no way prohibit Licensor from having access to or use of the License Area for any reason whatsoever, except that Licensor agrees it shall not utilize the License Area during racing events approved by Licensor and set out on the Race Schedule (defined in Section 3.3), to the extent such would materially interfere with the race event.

Licensee acknowledges that there are other long term leases, licenses and/or occupancy agreements on or about the License Area that utilize the License Area and the Common Area. Nothing herein contained shall prevent Licensor from granting, modifying or extending other or similar leases, license or occupancy agreements to any other person or entity, provided that such do not involve sprint car racing.

2.8 Operation of License Area. During and in connection with race events approved by Licensor and calendared on the Race Schedule, the following shall apply and Licensee shall perform the following:
(a) Race Schedule. Prior to Licensee’s use of the License Area during each year of the Term and no later than February 1, 2025 for the first year of the Term and January 1, 2026 for the second year of the Term, Licensee shall deliver to Licensor for approval by Licensor in its sole discretion, a proposed race schedule (“Race Schedule”). If the Race Schedule is not approved by Licensor, it shall be modified by Licensee and Item #5.6.

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10 resubmitted to Licensor; this process shall continue until the Race Schedule is approved by Licensor.
(b) Race Events. The Race Schedule may reflect no more than one (1) weekend of racing in 2025, and three (3) weekends of racing during calendar year 2026, including no more than nine (9) race days during calendar year 2026 from April 1st through October 31 of each race season. Licensee and Licensor shall coordinate regarding a schedule for access to the License Area for race preparation and set-up to ensure that such early access does not interfere with other events and users of the facilities and License Area. (c) Hours of Operation. Hours of operation for race events on the Race Schedule are 9:00 a.m. until 10:00 p.m., unless otherwise agreed in advance and in writing by Licensor. Licensee shall turn off all lighting and secure the License Area by not later than 11:00 p.m. following each race event on the Race Schedule. (d) Revenue. Licensee shall be entitled to revenue from: (i) all admissions, general parking, food and merchandise concessions, (ii) the Friday night prerace event known as the “Calistoga Speedway Hall of Fame Dinner”, and (iii) alcohol sales at the “Vermeil Wine and Beer Tasting”.
(e) Concessionaires. All sub-contracted concessionaires hired by Licensee must: (i) be in good standing with Licensor, (ii) maintain a commercially reasonable amount and quality of insurance (as determined by Licensor), including naming Licensor as an additional insured, (iii) hold a current City business license, (iv) have obtained all required permits and (v) comply with Environmental Health, City ordinances and AB1499 in reporting tangible sales on a state designated fairground on their sales and use tax return. Within ten (10) days after executing each concessionaire agreement, Licensee shall provide to Licensor, a fully executed copy of the agreement evidencing compliance with each of the above requirements. Licensee shall ensure that all such concessionaires utilize a purchase of service sales system and provide to Lessee and Lessor daily sales totals for all concession sales upon the grounds.
(f) Tickets. Licensee shall obtain sequentially numbered tickets for admission to each event at any gate from a bonded ticket distributing or printing firm. This includes any and all paid, complimentary, season or other forms of admissions. (g) Licensor Vouchers. Licensee shall provide one hundred (100) attendance vouchers for each race event to Licensor to be used at its discretion in connection with marketing, sponsorship or sales for the fairgrounds. Licensee acknowledges that Licensor may host events for sponsors during race events and/or may sell sponsorship banners during events.
(h) Ticket Manifest. Licensee shall delivery to Licensor prior to each event on the Race Schedule a "ticket manifest" or similar document certifying the following:
(i) the type of tickets sold or issued by Licensee, such as parking, admissions, pit, race entry, etc., (ii) the quantity sold and price for each ticket, and (iii) the numbering sequence of such tickets. Electronic tickets and reporting are encouraged. If requested by Licensor and if electronic ticketing is not used, Licensee shall provide to Licensor, any and all ticket stubs collected from admissions, including complimentary and paid admissions.

Item #5.6.

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11 (i) Walk-Through/Inspection. Licensor and Licensee shall conduct a pre and post event walk through and inspection to determine the condition of the facilities before and after each race event. As further described in Article 8, Licensee shall, at its sole cost and expense, keep the facilities, including all exterior, interior, structural and mechanical components thereof, in good, clean, safe condition and repair for the public. (j) Restoration. Licensee shall, within forty-eight (48) hours after the end of each race event, clean, provide janitorial service, repair, maintain as needed, and restore (collectively, “Restore”) the License Area to its condition prior to the race event, including removal all decorations and signage for the event, all to the satisfaction of Licensor.

However, if Licensor notifies Licensee in writing that another event will occur within fortyeight (48) hours after the end of a race event, Licensee shall so clean the License Area within twenty-four (24) hours after the end of such race event. If the License Area is not Restored to its original condition to the satisfaction of Licensor, Licensee, shall undertake all necessary Restoration work on behalf of Licensee’s at a cost of $65.00 per person per hour, with a twohour minimum; Licensee shall pay such additional charges to Licensor within seven (7) days after each race event.
(k) Hazardous Activity Waiver. Licensee shall (i) cause to be completed and maintain an annual hazardous activity waiver form (the form and substance of which shall be acceptable to Licensor) for all employees, volunteers, and pit and race entry participants, (ii) maintain an alphabetized binder with waivers available, and (iii) submit an annual waiver binder to Licensor upon the close of each race season with a list of entrants in each race class.
(l) Track Maintenance. In addition to the maintenance obligations set out in Article 8, Licensee shall maintain the level of dirt on the track so that no portion of the crash wall footing is exposed. Any dirt or clay used or removed from the track shall be subject to Licensors’ prior written approval. Licensee shall maintain safety fencing and crash wall, and paint as needed. Licensee shall make repairs to the crash wall or wheel fence immediately upon damage, and in no case, shall a race event be allowed to resume if any hazard to any patron exists due to damage to the fence or wall. Licensee shall ensure that racetrack and grounds condition meet all safety requirements as well as any applicable codes and regulations or racing association rules. Licensee shall be solely responsible for any penalties or sanctions imposed for any violation. All safety orders of the Division of Industrial Safety, Department of Industrial Relations, must be strictly observed. (m) Noise Limitations. Licensee shall strictly observe the following regarding sound level, including but not limited to, a 10:00 P.M. noise curfew for racing and a maximum noise level of 95 DBA at 100 feet from the source. Any fines, penalties, or sanctions assessed for violating these rules shall be solely the responsibility of Licensee. All testing will be conducted using an ANSI type 1 or 2 Sound Level Meter capable of recording the necessary parameters. Ancillary recording instrumentation, such as a NIOSH Sound Meter App is permitted. Sound meter equipment will be calibrated by Licensee each measurement day, and the value recorded and documented electronically, or a daily data sheet. This information shall be store for audit purposes by Licensee for three (3) years. All vehicles used on the License Area shall be equipped with mufflers. Failure to pass a certification test(s) means a racer shall be prohibited to race until a repair is made. Retesting will be permitted as many times as desired until certification testing is closed. Any racer found to be in violation of the procedures or found to have tampered with the vehicle muffler system Item #5.6.

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12 after the certification shall be immediately suspended from racing and will not be permitted to return during the same event.
(n) The following, noise curfews, shall apply:

1. 95 DBA at 100 feet LEQ will be the maximum allowed with pre-race certification.

2. No racing shall start after 9:45 P.M. and all racing shall be concluded by 10:00 P.M.

Violation of the above shall result in the following fines payable to the City:

1. First offense in a race season $500.00

2. Second offense in a race season $1,000.00

3. Third offense in a race season $1,500.00
This section is a material term of this Agreement, breach of which may result in the termination of this Agreement, as determined by Licensor.
(o) Racing Program Manager. Licensee shall provide a
representative to be present on the License Area and available by cell during all race events and act as the “Racing Program Manager” with authority to provide information and make decisions on behalf of Licensee. Licensee shall hire, train, supervise and control qualified employees for operations. Licensee’s employees shall maintain a neat and tidy appearance, and shall wear uniforms and name tags for positions requiring contact with the public.

Courteous professional treatment of the public and participants and responsible behavior on the fairgrounds is required.
(p) SWMP. Licensee shall prepare and maintain a Storm Water Maintenance Plan (SWMP) approved by the Licensor. Licensee shall provide a copy of the SWMP to Licensor.

3. TERM:

3.1 Generally. Unless otherwise earlier terminated, the term of this License (the “Term”) shall commence on January 1, 2025 (“Commencement Date”) and terminate on October 31, 2026 (“Expiration Date”).

3.2 Early Termination. At any time during the Term Licensor or Licensee may terminate the License by the giving of not less than thirty (30) days’ prior written notice to the other in accordance with Article 15. Upon such early termination, the rights and obligations of the parties hereunder shall terminate, except for those obligations which, by their terms, survive the expiration or earlier termination of this Agreement. Notwithstanding the foregoing, in the event of a natural disaster, war, pandemic, epidemic, civil disobedience or other activity where the License Area and/or Common Area or any part of either are required by any governmental agency to be closed or made unavailable to the public, Licensor shall immediately abide by such governmental order and shall not be liable to Licensee or any other party for any loss or expenses that may incur to Licensee or its clients, customers, patrons or other invitees as a result of such closure.

Item #5.6.

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13 4. LICENSE CONSIDERATION:

4.1 Base License Consideration. The consideration to be paid by Licensee for use of the License Area during the Term shall be as specified in the Basic License Information.

Any monetary portion of the License Consideration shall be paid without prior notice or demand.

The License Consideration shall be paid to the Licensor at 1232 Washington Street, Calistoga, CA 94515, or such other place as Licensor shall direct.

4.2 Additional Fees. As used in this License, the term “Additional Fees” shall mean all sums of money that are due and payable by Licensee under the terms of this Agreement, other than the base License Consideration. The term “Fees,” as used herein, shall mean the License Consideration and Additional Fees and all other amounts payable hereunder from Licensee to Licensor. Unless otherwise specified herein, all Fees shall be due and payable by Licensee on or before the date that is thirty (30) days after billing by Licensor.

4.3 Security Deposit. Upon execution of this License, Licensee shall pay to Licensor a security deposit for the faithful performance of Licensee’s obligations under this License in the amount specified in the Basic License Information. If Licensee fails to pay any charges due hereunder, or otherwise defaults under this License, Licensor may use, apply or retain all or a portion of the Security Deposit to compensate Licensor for the amount due by Licensee (including reasonable attorneys’ fees) under this License. The balance of the Security Deposit not applied or used by Licensor as permitted in this Paragraph shall be refunded to Licensee thirty (30) days after the later of (i) expiration or other termination of this License, or (ii) the date Licensee vacates the License Area.

5. TAXES AND OPERATING EXPENSES:

5.1 Taxes
(a) Personal Property and Possessory Interest Taxes. Licensor shall pay all Taxes (as hereinafter defined) levied or imposed against the License Area or Licensee’s personal property or trade fixtures placed by Licensee in or about the License Areas during the Term (“Personal Property Taxes”). In addition, if the interest created by this Licensee is subject to property taxation under the laws of the State of California, the party in whom the possessory interest is vested shall be subject to the payment of the taxes levied on such interest. This notice is included in this License pursuant to the requirements of Section 107.6 (a) of the Revenue and Taxation Code of the State of California. (b) Payment. Licensee shall pay the Personal Property Taxes or possessory interest taxes in accordance with the instructions of the taxing entity. Licensee shall pay the Personal Property Taxes, if any, originally imposed upon Licensor, upon Licensor’s election, either (a) annually within thirty (30) days after the date Licensor provides Licensee with a statement setting forth in reasonable detail such Taxes, or (b) monthly in advance based on estimates provided by Licensor based upon the previous year’s tax bill.

All Personal Property Taxes originally imposed upon Licensor and payable by Licensee with respect to the License Area shall be prorated on a per diem basis for any partial tax year included in the Term. Licensee’s obligation to pay Taxes during the last year of the Term shall survive the expiration or termination of this License.

5.2 Operating Expenses. Subject to Licensee’s obligation to perform the Work (as described in Exhibit C), as Licensee’s License Consideration, all costs of management, Item #5.6.

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14 operation, maintenance, insuring and repair of the (i) structural elements of the Building (including the roof); (ii) Common Area maintenance; and (iii) Licensor’s property insurance, if any, are “Operating Expenses”. During the Term, Licensor shall not assess Licensee any such Operating Expenses, unless the same were incurred as a result of the actions or inactions of Licensee, Licensee’s invitees or anyone in the employ of Licensee, in which event such costs may be charged to Licensee as Additional Fees.

6. USE; COMPLIANCE WITH LAWS:

6.1 Use of License Area. Licensee may use the License Area for sprint car races on the dates set out on the Race Schedule (“Permitted Use”) and for no other purposes without the express written consent of Licensor. Licensee acknowledges that neither Licensor nor any agent of Licensor, has made any representation or warranty with respect to the suitability or fitness of the License Area for the conduct of Licensee’s business.

6.2 Compliance with Laws. Licensee shall comply with all laws, ordinances, rules, regulations and codes, of all municipal, county, state and federal authorities, including the Americans With Disabilities Act, as amended (42 U.S.C. Section 1201 et seq. [the “ADA”]) (collectively, “Laws”) pertaining to Licensee’s use and occupancy of the License Area and its Permitted Use. Licensee shall not commit, or suffer to be committed, any waste upon the License Area, or any public or private nuisance, or other act or thing that disturbs the quiet enjoyment of any other occupants or surrounding neighborhoods.

7. UTILITIES:

7.1 Utility Cost. Licensee shall reimburse Licensor for the cost of utilities, including only water, sewer and electricity, at a rate of $300.00 per day, including race days and set-up days. In addition, Licensee shall reimburse Licensor for use of the track lights at $37.50 per hour with a Three (3) hour minimum. Licensee shall contract directly with the providers of, and shall pay all other utility charges for, among other things, Wi-Fi, gas, telephone, refuse collection, janitorial, pest control, security and monitoring services furnished to the License Area, together with all related installation or connection charges or deposits.

No Liability of Licensor. Except in the case of Licensor’s gross negligence or willful misconduct, in no event shall Licensor be liable or responsible for any loss, damage, expense or liability, including, without limitation, loss of business or any consequential damages, arising from any failure or inadequacy of any service or utility provided to the License Area, whether resulting from any change, failure, interference, disruption or defect in supply or character of the service or utility provided to the License Area, or arising from the partial or total unavailability of the service or utility to the License Area, from any cause whatsoever, or otherwise, nor shall any such failure, inadequacy, change, interference, disruption, defect or unavailability constitute an actual or constructive eviction of Licensee, or entitled Licensee to any abatement or diminution of License Consideration or otherwise relieve Licensee from its obligations under this License.

Item #5.6.

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15 8. MAINTENANCE AND REPAIR OF LICENSE AREA:

8.1 Maintenance and Repair by Licensee

8.1.1 Licensee Maintenance. In addition to Licensee’s obligations set out in Section 2.8, Licensee shall, at its sole costs and expense, maintain the License Area in good repair and in neat and clean condition (ordinary wear and tear, casualty and condemnation excepted) including making all necessary repairs of grandstands, track and facility upgrades to Licensed Area to ensure safe operating condition of the grounds during use.

8.1.2 Licensee Repair. In addition to Licensee’s obligations set out in Section 2.8, Licensee shall further, at its own costs and expense, repair or restore any damage or injury ordinary wear and tear excepted to all or any part of the of the License Area and utility lines exclusively servicing the License Area caused by Licensee or Licensee’s agents, employees, invitees, Licensees, visitors or contractors, including but not limited to repairs or replacements necessitated by (i) Licensee’s use of the License Area, and (ii) the moving of any property into or out of the License Area.

9. ENVIRONMENTAL PROTECTION PROVISIONS:

9.1 Hazardous Materials. “Hazardous Materials” shall mean any material, substance or waste that is or has the characteristic of being hazardous, toxic, ignitable, reactive, flammable, explosive, radioactive or corrosive, including, without limitation, petroleum, solvents, lead, acids, pesticides, paints, printing ink, PCBs, asbestos, materials commonly known to cause cancer or reproductive problems, and those materials, substances and/or wastes, including wastes which are or later become regulated by any local governmental authority in the state in which the License Area is located or the United States Government, including, but not limited to, substances defined as “hazardous substances,” “hazardous materials,” “toxic substances” or “hazardous wastes” in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. §9601, et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. §1801, et seq.; the Resource Conservation and Recovery Act; all environmental laws of the state where the Station is located, and any other environmental law, regulation or ordinance now existing or hereinafter enacted. “Hazardous Materials Laws” shall mean all present and future federal, state and local laws, ordinances and regulations, prudent industry practices, requirements of governmental entities and manufacturer’s instructions relating to industrial hygiene, environmental protection or the use, analysis, generation, manufacture, storage, presence, disposal or transportation of any Hazardous Materials, including without limitation the laws, regulations and ordinances referred to in the preceding sentence.

9.2 Reportable Uses Required Consent. Except as permitted in this Section 9, Licensee hereby agrees that Licensee and Licensee’s officers, employees, representatives, agents, contractors, subcontractors, successors, assigns, vendors, concessionaires, invitees and any other occupants of the License Area (for purposes of this Section 9, referred to collectively herein as “Licensee’s Representatives”) shall not cause or permit any Hazardous Materials to be used, generated, manufactured, refined, produced, processed, stored or disposed of, on, under or about the License Area or transport to or from the License Area without the express prior written consent of Licensor, which consent may be limited in scope and predicated on strict compliance by Licensee of all applicable Hazardous Materials Laws and such other reasonable rules, regulations and safeguards as may be required by Licensor (or any insurance carrier, environmental consultant or lender of Licensor, or environmental consultant retained by any lender of Licensor) in connection with using, generating, manufacturing, refining, producing, Item #5.6.

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16 processing, storing or disposing of Hazardous Materials on, under or about the License Area. In connection therewith, Licensee shall, at its own expense, procure, maintain in effect and comply with all conditions of any and all permits, licenses and other governmental and regulatory approvals required for the storage or use by Licensee or any of Licensee’s Representatives of Hazardous Materials on the License Area, including without limitation, discharge of (appropriately treated) materials or wastes into or through any sanitary sewer serving the License Area. The foregoing notwithstanding, Licensee may use ordinary and customary materials reasonably required to be used in the course of the Permitted Use, ordinary office supplies (copier, toner, liquid paper, glue, etc.), common household cleaning materials and gasoline and oil in vehicle tanks, so long as such use is in compliance with all Hazardous Materials Laws and does not expose the License Area or neighboring property to any meaningful risk of contamination or damage or expose Licensor to any liability therefor.

9.3 Remediation Obligations. If at any time during the Term, any contamination of the License Area by Hazardous Materials shall occur where such contamination is caused by the act or omission of Licensee or Licensee’s Representatives (“Licensee’s Contamination”), then Licensee, at Licensee’s sole cost and expense, shall promptly and diligently remove such Hazardous Materials from the License Area or the groundwater underlying the License Area to the extent required to comply with applicable Hazardous Materials Laws. Licensee shall not take any required remedial action in response to any Licensee’s Contamination in or about the License Area or enter into any settlement agreement, consent, decree or other compromise in respect to any claim relating to any Licensee’s Contamination without first obtaining the prior written consent of Licensor, which may be subject to conditions imposed by Licensor as determined in Licensor’s sole discretion. Such prior written consent shall not be required to the extent the delay caused by the requirement to obtain consent may increase the damage to the License Area or the risk of harm to human health, safety or security caused by the Licensee Contamination. Licensor and Licensee shall jointly prepare a remediation plan in compliance with all Hazardous Materials Laws and the provisions of this License. In addition to all other rights and remedies of Licensor hereunder, if Licensee does not promptly and diligently take all steps to prepare and obtain all necessary approvals of a remediation plan for any Licensee’s Contamination, and thereafter commence the required remediation of any Hazardous Materials released or discharged in connection with Licensee’s Contamination within thirty (30) days after all necessary approvals and consents have been obtained, and thereafter continue to prosecute such remediation to completion in accordance with the approved remediation plan, then Licensor, at its sole discretion, shall have the right, but not the obligation, to cause such remediation to be accomplished, and Licensee shall reimburse Licensor within fifteen (15) business days of Licensor’s demand for reimbursement of all amounts reasonably paid by Licensor (together with interest on such amounts at the highest lawful rate until paid), when such demand is accompanied by proof of payment by Licensor of the amounts demanded. Licensee shall promptly deliver to Licensor copies of hazardous waste manifests reflecting the legal and proper disposal of all Hazardous Materials removed from the License Area as part of Licensee’s remediation of any Licensee’s Contamination. The foregoing notwithstanding, “Licensee’s Contamination” shall not refer to or include any Hazardous Materials that were not clearly introduced to the License Area by Licensee or Licensee’s Representatives. As an example, if lead dust or asbestos is found on the License Area, unless there is clear evidence that Licensee introduced those Hazardous Materials to the License Area, those Hazardous Materials shall not be considered “Licensee’s Contamination,” and it shall not be Licensee’s responsibility to take remedial action relating to such Hazardous Materials. Moreover, Licensee shall not be responsible for any Hazardous Materials that were present in, on, or below the License Area before Licensee occupied the License Area.

Item #5.6.

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17 9.4 Licensor’s Inspection Right. Licensor shall have the right to inspect the License Area for compliance with environmental, safety, and occupational health laws and regulations, regardless of whether Licensor is responsible for enforcing or complying with them.

Licensee shall have no claim against Licensor, or any officer, agent, employee, contractor or subcontractor of Licensor by reason of entrance of such Licensor officer, agent, employee, contractor or subcontractor onto the License Area, provided such inspection is undertaken as reasonably as possible so as not to disrupt or interfere with the Permitted Use. Except in the event of an emergency, Licensor shall provide Licensee with reasonable prior notice and an opportunity to have a representative present at any inspection.

9.5 Hazardous Materials Indemnity. In addition to any other provisions of this License, Licensee shall, and does hereby agree, to indemnify and hold harmless Licensor from any costs, expenses, liabilities, fines or penalties resulting from discharges, emissions, spills, storage or disposal resulting from Licensee’s Contamination, giving rise to liability, civil or criminal, or any other action by Licensee or its contractors, employees, agents, or assigns giving rise to responsibility under any Hazardous Materials Laws. Licensee’s obligations hereunder shall apply whenever Licensor incurs costs or liabilities for Licensee’s Contamination as provided hereunder.

This provision shall survive the expiration or termination of this License.

10. INDEMNITY AND WAIVER OF CLAIMS:

10.1 Licensee Indemnification. Licensee shall indemnify, defend and hold Licensor and Licensor Related Parties (as defined herein) harmless against and from all third party liabilities, obligations, damages, penalties, claims, actions, costs, charges, judgment and expenses (including reasonable attorneys’ fees, costs and disbursements) (collectively referred to as “Losses”), arising from (a) the use of, or any activity done, permitted or suffered in or about the License Area by Licensee (including, but not limited to, injuries suffered by Licensee’s agents or employees), (b) any activity done, permitted or suffered by Licensee or Licensee’s agents or employees in or about the License Area during Licensee’s possession and use of the License Area, (c) any act, neglect, fault, willful misconduct of Licensee or Licensee’s agents or employees in or about the License Area during Licensee’s possession and use thereof, or (d) from any breach or default in the terms of this Agreement by Licensee or Licensee’s agents or employees, except to the extent such claims arise out of or relate to the gross negligence or willful misconduct of Licensor or another Licensor Related Party. If any action or proceeding is brought against Licensor by reason of any such claim, upon notice from Licensor, Licensee shall defend the same at Licensee’s expense by Licensor’s Office of the City Attorney or, at Licensor’s election, other counsel reasonably satisfactory to Licensor. As a material part of the consideration to Licensor, Licensee releases Licensor and its trustees, members, principles, beneficiaries, partners, officers, directors, employees, and property managers (“Licensor Related Parties”) from responsibility for, waives its entire claim of recovery for, and assumes all risks of (i) damage to property or injury to person in or about the License Area from any cause whatsoever except to the extent caused by the gross negligence or willful misconduct of Licensor or Licensor Related Parties, or (ii) loss resulting from business interruption or loss of income at the License Area.

10.2 Waiver of Claims. Except in the event of Licensor’s or Licensor Related Parties’ own gross negligence or willful misconduct Licensor shall not be liable to Licensee and Licensee waives all claims against Licensor and Licensor Related Parties for any injury or damage to any person or property occurring or incurred in connection with or in any way relating to the License Area from any cause. Without limiting the foregoing, neither Licensor nor any Licensor Related Party shall be liable for and there shall be no abatement of Fees or relief of Licensee from its obligation to undertake the Work with respect to (a) any damage to Licensee’s property Item #5.6.

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18 stored with or entrusted to any Licensor Related Party, (b) loss of or damage to any property by theft or any other wrongful or illegal act, or (c) any injury or damage to person or property resulting from fire, explosion, water or rain that may blow onto the License Area from the streets or other surfaces or from any other place or resulting from dampness or any other cause whatsoever or from the acts or omissions of other occupants or other visitors to the License Area or from any other cause whatsoever, (d) any diminution or shutting off of light, air or view by any structure that may be erected on lands adjacent to the License Area or (e) any latent or other defects in the License Area. Licensee agrees that in no case shall Licensor or any Licensor Related Party or Licensee be responsible or liable to the other on any theory for any injury to such parties’ business, loss of profits, loss of income or any other form of consequential, punitive or incidental damage, except as otherwise provided in Section 13.

10.3 Survival/No Impairment. The obligations of Licensee under this Section 10 shall survive any termination of this License. The foregoing indemnity obligations shall not relieve any insurance carrier of its obligations under any policies required to be carried by either party pursuant to this License, to the extent that such policies cover the peril or currents that results in the claims that is subject to the foregoing indemnity.

11. INSURANCE:

11.1 Licensee’s Insurance. On or before the commencement of the Term of this License, Licensee shall procure and maintain, for the duration of this License, insurance against claims for injuries to persons or damages to property which may arise from or in connection with Licensee’s operation and use of the License Area. The cost of such insurance shall be borne by Licensee. Licensee shall maintain the following types of insurance with limits no less than the following as set forth below.

11.1.1 Commercial General Liability Coverage: $5,000,000 per occurrence for bodily injury, personal injury and property damage (which amount can be met by both Licensee’s underlying policy and umbrella policy). The policy shall provide coverage for Fire Legal Liability or Damage to Rented License Area coverage, as well as for Products and Completed Operations.

11.1.2 Automobile Liability Coverage: Coverage for owned, hired, leased and rented vehicles, with limits of $1,000,000 for combined bodily injury and property damage, on a per occurrence basis.

11.1.3 Property Insurance Coverage: Licensee shall maintain in full force and effect on all of its personal property, furniture, furnishings, vehicles, fixtures and equipment, either owned by Licensee or its agents, vendors, or clients, which may from time to time be located in, on or upon the License Area (“Licensee’s Property”) in an amount not less than their full replacement value from time to time during the Term, providing protection against all perils, included within the standard form of “all-risk” (i.e., “Special Cause or Loss”) fire and casualty insurance policy.

11.1.4 Workers Compensation Coverage: As required by law, with Employer’s Liability coverage with limits of not less than $1,000,000.

11.2 Additional Insureds: The City of Calistoga shall be included as an additional insured under all liability insurance coverages, except on worker’s compensation and professional liability insurance policies. The naming of an additional insured shall not affect any recovery to Item #5.6.

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19 which such additional insured would be entitled under this policy if not included as such additional insured. An additional insured included herein shall not be held liable for any premium, deductible portion of any loss, or expense of any nature on this policy or any extension thereof. Any other insurance held by an additional insured shall not be required to contribute anything toward any loss or expense covered by the insurance provided by this policy.

11.3 Notice of Cancellation. Licensee’s third party insurance policies shall be endorsed to require the insurer to provide Licensor with at least thirty (30) days’ written Notice of Cancellation; provided, however, that if Licensee’s insurers are unwilling to issue such an endorsement, then Licensee agrees as follows: if Licensee is notified by any insurer of the insurance coverage required under this Section 11 that the insurer is cancelling any required policy, Licensee shall immediately provide Licensor with written notice of having received such notice from its insurer and shall take all reasonable action to either preserve the existing policy/policies or replace the cancelled insurance with other policy/policies of insurance meeting the requirements of this Section 11 before the effective date of the cancellation.

11.4 Sufficiency of Insurance. The insurance limits required by the Licensor are not represented as being sufficient to protect Licensee. Licensee is advised to consult Licensee’s insurance broker to determine adequate coverage for Licensee. Licensee’s insurance policy shall be endorsed stipulating that Licensee’s insurance is primary with respect to claims assumed by Licensee under the terms of this License, and that the Licensor’s self-insurance program and excess insurance policies shall not be called upon to contribute to a loss that should otherwise be paid by Licensee’s insurer.

11.5 Insurer Acceptability. Licensee’s insurers must be domiciled in the United States of America. They must meet a minimum A.M. Best & Co. rating of A: VII and a Standard and Poor’s Rating (if rated) of at least BBB. In the event that a proposed insurance company is not rated by A.M. Best & Co. or Standard and Poor’s, said insurance carrier must be domiciled in the State of California and approved by Licensor.

11.6 Certificate of Insurance. On or before Licensee takes possession of the License Area, Licensee shall furnish to Licensor new certificate(s) of insurance reflecting that the insurance required by this Section for the License Area is in force, accompanied by an endorsement(s) showing the required additional insured reasonably satisfactory to Licensor.

12. PROHIBITION AGAINST TRANSFERS: Licensee shall not assign, sublicense, hypothecate, or transfer this License or any interest therein directly or indirectly, by operation of law or otherwise. Any attempt to do so shall be null and void, and any assignee, sublessee, hypothecate or transferee shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer. The forgoing notwithstanding, Licensee may Transfer, with notice but without Licensor’s consent, to an entity (i) that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with Licensee; (ii) in connection with a merger, consolidation, non-bankruptcy reorganization or government action; or (iii) in connection with the acquisition or transfer of all or substantially all of Licensee’s stock or assets (each a “Permitted Transfer”).

13. SURRENDER: Upon the expiration or earlier termination of the License, Licensee shall surrender the License Area clean, free of debris and, in substantially the same condition as at the commencement of the Term, reasonable wear and tear excepted, and clear of all liens and encumbrances created by any action or inaction of Licensee. Licensor shall not be responsible for the value, preservation or safekeeping of Licensee’s property that is not removed by Licensee Item #5.6.

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20 from the License Area. Licensee shall pay Licensor, upon demand, the expenses and storage charges incurred for any such property. If Licensee fails to remove Licensee’s property from the License Area, upon the expiration or earlier termination of the License, Licensor may deem all or any part of Licensee’s property to be abandoned and, at Licensor’s option, title to Licensee’s property shall vest in Licensor or Licensor may dispose of Licensee’s property in any manner Licensor deems appropriate.

14. NONDISCRIMINATION. Consistent with Licensor’s policy that harassment and discrimination are unacceptable conduct, Licensee agrees that harassment or discrimination directed toward a City employee, or contractor, or employees, or Licensee’s employee or contractor on the basis of race, religious creed, color, national origin, ancestry, handicap, disability, marital status, pregnancy, sex, age, or sexual orientation will not be tolerated. Licensee agrees that any and all violations of this provision shall constitute a material breach of this Agreement.

15. SUBMISSION OF NOTICES. All notices, demands, requests, consents, or approvals which may or are required to be given by either party to the other shall be in writing and shall be deemed given upon (i) personal delivery or transmission by facsimile or electronic mail (unless delivery occurs on a Sunday or holiday, in which case notice will be deemed given on the next-succeeding business day), or (ii) refusal of delivery during normal business hours when sent by United States Certified or Registered Mail, postage prepaid, or (iii) one business day after deposit with a reputable overnight delivery service at the party’s respective Notice Address(es) set forth in the Basic License Information. Notwithstanding the addresses provided in subsection

15.1 of this section, any party may from time to time designate an alternate and/or additional address by notice.

16. DEFAULT.

16.1 Events of Default. The occurrence of any of the following shall constitute a “Default” by Licensee:
(i) Licensee fails to make any payment of Fees when due, if payment in full is not received by Licensor within five (5) days after written notice that it is past due.
(ii) Licensee violates the restrictions on Transfer set forth in Article 12.
(iii) Licensee ceases doing business as a going concern (provided, however, that Licensee may be open and operating for business with the general public on the days and during the times as the needs of Licensee’s business dictates, in Licensee’s sole discretion); makes an assignment for the benefit of creditors; is adjudicated an insolvent, files a petition (or files an answer admitting the material allegations of a petition) seeking relief under any state or federal bankruptcy or other statute, law or regulation affecting creditors’ rights; all or substantially all of Licensee’s assets are subject to judicial seizure or attachment and are not released within sixty (60) days, or Licensee consents to or acquiesces in the appointment of a trustee, receiver or liquidator for Licensee or for all or any substantial part of Licensee’s assets. (iv) Licensee fails to perform or comply with any provision of this Agreement other than those described in (i) through (iii) above, and does not fully cure such failure within five (5) business days after notice to Licensee or, if such failure cannot be cured within Item #5.6.

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21 such five (5) business-day period, Licensee fails within such five (5) business-day period to commence, and thereafter diligently proceed with, all actions necessary to cure such failure as soon as reasonably possible but in all events within sixty (60) days of such notice.

16.2 Remedies. Upon Default by Licensee, Licensor shall, without further notice or demand of any kind to Licensee or to any other person, in addition to any other remedy Licensor may have under this License and at law or in equity, have the ability to immediately terminate the License and Licensee’s right to use the License Area. Upon notice of any such termination, Licensee shall vacate and discontinue its use of the License Area and Licensor may take any and all actions to enforce Licensee’s obligations.

16.3 Licensor’s Right to Perform Licensee’s Obligations. If Licensee is in Default of any of its non-monetary obligations under this Agreement, in addition to the other rights and remedies of Licensor provided herein, then Licensor may at Licensor’s option, but without any obligation to do so and without further notice to Licensee, perform any such term, provision, covenant or condition or make any such payment and, except in the case of its gross negligence or willful misconduct, Licensor by reason of doing so shall not be liable or responsible for any loss or damage thereby sustained by Licensee. If Licensor performs any of Licensee’s obligations hereunder in accordance with this Section 16.3, the reasonable costs and expense incurred or the payments so made shall be immediately be owed by Licensee to Licensor, and Licensee shall promptly pay to Licensor upon demand, as Additional Fees, the full amount thereof with interest thereon from the day of payment by Licensor the lower of ten percent (10%) per annum, or the highest rate permitted by applicable law.

16.4 Severability. This Article 16 shall be enforceable to the maximum extent such enforcement is not prohibited by applicable Law, and the unenforceability of any portion thereof shall not thereby render unenforceable any other portion.

17. WAIVER OF RELOCATION ASSISTANCE. Except in the event of a taking of the License Area by or under the threat of eminent domain, Licensee acknowledges that upon the expiration or earlier termination of the Term it will not be a displaced person or business and therefore waives any and all rights, benefits or privileges of the California Relocation Assistance Law, California Government Code Sections 7260 et seq. or under any similar state or federal law, statute or ordinance now or hereinafter in effect.

18. MISCELLANEOUS.

18.1 Entire Agreement. This Agreement, including all exhibits hereto, constitutes all of the covenants, conditions and agreements between and among the parties and shall supersede all prior correspondents, agreements and understandings, both verbal and written.

18.2 Amendments. This Agreement may be amended or modified only by a written instrument executed by Licensor and Licensee.

18.3 Severability. If any provision of this Agreement, or its application to any person or circumstance, is held invalid by any court, the invalidity or inapplicability of such provision shall not affect any other provision of this Agreement or the application of such provision to any other person or circumstance, and the remaining portions of this Agreement shall continue in full force and effect, unless enforcement of this Agreement as so modified by and in response to such invalidation would be unreasonable or grossly inequitable under all of the circumstances Item #5.6.

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22 or would frustrate the fundamental purposes of this Agreement. Without limiting the forgoing, if any applicable federal or state law prevents or precludes compliance with any material term of this Agreement, the parties shall promptly modify, amend, or suspend this Agreement, or any portions of this Agreement, to the extent necessary to comply with such provisions in a manner which preserves to the greatest extent possible the benefits to each of the parties to this Agreement before such conflict with federal or state law.

18.4 Incorporation of Exhibits and Recitals. The exhibits and recitals to this Agreement are incorporated into this Agreement by this reference.

18.5 Broker’s Commissions. Licensor and Licensee each represents and warrants to the other that neither it nor its officers or agents nor anyone acting on its behalf has dealt with any real estate broker in the negotiating or making of this License. Each party agrees to indemnify and hold harmless the other from any claim or claims, and costs and expenses, including attorneys’ fees, incurred by the indemnified party in conjunction with any such claim or claims of any other broker or brokers to a commission in connection with this License as a result of the actions of the indemnifying party.

18.6 Attorneys’ Fees. In the event either party to this Agreement institutes an action, arbitration or proceeding to interpret or enforce any of the terms hereof, or to obtain money damages the prevailing party shall be entitled to recover from the other, in addition to costs and judgment as ordered by the court, its reasonable attorneys’ fees, together with out-of-pocket expenses.

18.7 Access by Licensor. In addition to access provided by this License, Licensor shall be allowed access to the License Area at all reasonable times throughout the term of this License, for any reasonable purpose upon prior written notice to Licensee. Licensor will normally give Licensee a minimum of twenty-four (24) hours prior notice of an intention to enter the License Area, unless entry is reasonably required on an emergency basis for safety, environmental, operations or security purposes. Licensee shall ensure that a telephone roster is maintained at all times for on-call persons representing Licensee who will be available on short notice, 24 hours a day, 365 days per year, and have authority to use all keys necessary to gain access to the License Area to facilitate entry in time of emergency. Licensee shall ensure that Licensor has a current roster of such on-call personnel and their phone numbers. Licensee shall not change any existing locks, or attach any additional locks or similar devices to any door or window, without providing to Licensor one set of keys therefor. All keys must be returned to Licensor at the expiration or termination of this License. Licensee shall have no claim against Licensor for exercise of its rights of access hereunder.

18.8 Emergencies. Licensor shall not be liable to Licensee in the event of an emergency that requires Licensor to cancel or delay races due to a natural disaster or other unforeseen emergency declared by local, state or federal government or agency. Thereafter, if Licensee requests make up race dates, Licensor will use reasonable efforts to accommodate such requests. If during an emergency event the parties are unable through no fault of their own to carry out either of their respective duties and obligations under this Agreement for thirty (30) continuous days, such duties and obligations may be suspended until the disaster is declared ended by a government entity or agency. This Agreement may then be extended in a mutually agreed upon writing signed by the parties for the period of time it was suspended.

18.9 Asbestos Notification for Commercial Property Constructed Before 1979.

Licensee acknowledges that Licensor has advised Licensee that, because of its age, the premise Item #5.6.

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23 may contain asbestos-containing materials (“ACMs”). If Licensee undertakes any Alterations as may be permitted by Article 10, Licensee shall, in addition to complying with the requirements of Article 10, undertake the Alterations in a manner that avoids disturbing ACMs present in the premise. If ACMs are likely to be disturbed in the course of such work, Licensee shall encapsulate or remove the ACMs in accordance with an approved asbestos-removal plan and otherwise in accordance with all applicable Environmental Laws, including giving all notices required by California Health & Safety Code Sections 25915-25919.7.

18.10 Lead Warning Statement. Licensee acknowledges that Licensor has advised Licensee that buildings or structures built before 1978 may contain lead-based paints (“LBP”). Lead from paint, paint chips and dust can pose health hazards if not managed properly.

Subject to Article 10 of this License, Licensee may at its sole cost and expense, have a state certified LBP Inspector complete an LBP inspection and abatement and provide an abatement certification to Licensor. Licensor has no specific knowledge of the presence of lead-based paint in the License Area.

18.11 OFAC Certification. Licensee represents, warrants and covenants that:
(a) Licensee and its principals are not acting, and will not act, directly or indirectly, for or on behalf of any person, group, entity, or nation named by any Executive Order or the United States Treasury Department as a terrorist, “Specially Designated and Blocked Person” or other banned or blocked person, entity, nation, or transaction pursuant to any law, order, rule or regulation that is enforced or administered by the Office of Foreign Assets Control; and (b) Licensee acknowledges that the breach of this representation, warranty and covenant by Licensee shall be an immediate Default under the Lease.

18.12 Certified Access Specialist Disclosure. In accordance with Civil Code Section 1938, Licensor hereby discloses that the License Area has not undergone inspection by a Certified Access Specialist for purposes of determining whether the property has or does not meet all applicable construction related accessibility standards pursuant to Civil Code Section

55.53. 18.13 Rules and Regulations. Licensee shall faithfully observe and comply with the non-discriminatory rules and regulations attached hereto as Exhibit B and incorporated herein by this reference, as the same may be modified from time to time by Licensor. Any additions or modifications to those rules shall be binding upon Licensee upon Licensor’s delivery of a copy to Licensee.

18.14 Further Assurances. All parties agree to cooperate fully and execute any and all supplementary documents and take all additional actions which may be necessary or appropriate to give full force and effect to the basic terms and intent of this Agreement.

18.15 Time. Time is of essence of every provision herein contained in this Agreement.

18.16 Captions. All captions and headings in this Agreement are for the purpose of reference and convenience and shall not limit or expand the provisions of this Agreement.

18.17 Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of California. All actions or proceedings arising directly or indirectly under this Agreement shall be litigated in courts located within the County of Napa, State of California.

Item #5.6.

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24 18.18 Authority. If Licensee is a corporation, partnership, trust, association or other entity, Licensee and each person executing this License on behalf of Licensee does hereby covenant and warrant that (a) Licensee is duly incorporated or otherwise established or formed and validly existing under the laws of its state of incorporation, establishment or formation, (b) Licensee has and is duly qualified to do business in California, (c) Licensee has full corporate, partnership, trust, association or other power and authority to enter into this License and to perform all Licensee’s obligations hereunder, and (d) each person (and all of the persons if more than one signs) signing this License on behalf of Licensee is duly and validly authorized to do so.

Upon execution hereof and at Licensor’s request, Licensee shall provide Licensor with written evidence substantiating the authority of the person(s) executing this Agreement on behalf of Licensee to bind Licensee to this Agreement.

18.19 Public Records Act. Licensee is aware that this Agreement and any documents provided to Licensor may be subject to the California Public Records Act and may be disclosed to members of the public upon request. It is the responsibility of Licensee to clearly identify information in those documents it considers to be confidential under the California Public Records Act. To the extent that Licensor agrees with that designation, such information will be held confidently whenever possible. All other information will be considered public.

18.20 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, Licensor and Licensee have respectively signed and sealed this License as of the day and year first above written.

Licensee:

Hunt Motor Sports LLC, DBA Hunt
Promotions., a limited liability company
By: _____________________________
Tommy Hunt
President & Operator
Licensor:

CITY OF CALISTOGA, a California municipal
corporation
By: _____________________________
Laura Snideman
City Manager
Date: _____________________________
By: _____________________________
Name: _____________________________
Title: _____________________________
Approved as to form:

By: _____________________________
Michelle Marchetta Kenyon
City Attorney
Tommy Hunt (Jan 24, 2025 17:15 PST)
Tommy Hunt Tommy Hunt President
Item #5.6.

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Exhibit A

EXHIBIT A

LICENSE AREA
City of Calistoga Fairgrounds Property, 1435 N. Oak Street Calistoga, CA 94515 Item #5.6.

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Exhibit A-2
EXHIBIT A-2

COMMON AREA
Item #5.6.

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Exhibit B

EXHIBIT B

RULES AND REGULATIONS
Licensee shall faithfully observe and comply with the following Rules and Regulations.

Licensor shall not be responsible to Licensee for the non-performance of any of said Rules and Regulations by or otherwise with respect to the acts or omissions of any other Licensees or occupants of the premise. In the event of any conflicts between the Rules and Regulations and other provisions of this License, the latter shall control.

1. Licensor shall have the right to control and operate the public portions of the License Area and the public facilities, as well as facilities furnished for the common use of the Licensee, in such a manner as it deems best for the benefit of the Licensees generally.

2. No advertisements, pictures or signs of any sort shall be displayed on or outside the License Area or Building without the prior written consent of Licensor. This prohibition shall include any portable signs or vehicles placed within the parking lot, common areas or on streets adjacent thereto for the purpose of advertising or display. Licensor have the right to remove any such unapproved item without notice and at Licensee’s expense.

3. Storage of forklift propane tanks, whether interior or exterior, shall be in secured and protected storage and enclosure approved by the local fire department and, if exterior, shall be located in areas specifically designated by Licensor. Licensee shall protect electrical panels and building mechanical equipment from damage from forklift trucks.

4. Machinery, equipment and apparatus belonging to Licensee which causes noise or vibration that may be transmitted to the structure of the Building to such a degree as to be objectionable to Licensor or other Licensees or to cause harm to the Building, shall be placed and maintained by Licensee, at Licensee’s expense, on vibration eliminators or other devices sufficient to eliminate the transmission of such noise and vibration. Licensee shall cease using any such machinery which causes objectionable noise and vibrations which cannot be sufficiently mitigated.

5. All goods, including materials used to store goods, delivered to the License Area shall be immediately moved into the License Area and shall not be left in parking or exterior loading areas overnight.

6. Tractor trailers which must be unhooked or parked with dolly wheels beyond the concrete loading areas must uses steel plates or wood blocks of sufficient size to prevent damage to the asphalt paving surfaces. No parking or storage of such trailers will be permitted in the auto parking areas adjacent to the License Area or on streets adjacent thereto.

7. Licensee is responsible for the safe storage and removal of all pallets. Pallets shall be stored behind screen enclosures at locations approved by Licensor.

8. Licensee shall not store or permit the storage of merchandise in or around the common areas surrounding the License Area. No displays or sales of merchandise shall be allowed in the parking lots.

9. Licensee is responsible for the storage and removal of all trash, recycling and refuse. All such trash, refuse and recyclables shall be contained in suitable receptacles stored Item #5.6.

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Exhibit B
behind screen enclosures at locations approved by Licensor. Licensee and any subcontracts shall follow the Calistoga Reusable Foodware and Waste Reduction Ordinance.

10. Licensee shall be responsible for providing adequate portable restrooms and wash stations for their event guests in an area agreeable to the Licensor. Licensor shall use a standard porta potty and wash station calculator for estimation
(https://starportapottyrental.com/calculator/).

11. Licensee shall cooperate fully with Licensor to ensure the effective operation of the building’s air conditioning systems. If Licensee shall so use the License Area that noxious or objectionable fumes, vapors and/or odors are created, then Licensee shall provide proper ventilation equipment for the discharge of such fumes, vapors and odors so that they shall not enter into the air conditioning system or be discharged into other vents or flues of the building or annoy any of the other Licensees of the Building or adjacent property. The design, location and installation of such equipment shall be subject to the Licensor’s approval.

12. All coverings installed by Licensee and visible from the outside of a building require the prior written approval of Licensor. Tents may need Fire Marshal approval.

13. The sashes, sash doors, skylights, windows and doors that reflect or admit light or air into the halls, passageways or other public places in a building shall not be covered or obstructed by Licensee.

14. Licensee shall not overload the floor of the License Area.

15. Licensee shall not permit any animals, including, but not limited to, household pets (but excluding service animals, which are permitted), to be brought or kept in or about the License Area or Building or any of the common areas.

16. Licensee hereby assumes all responsibility for the protection of Licensee and its agents, employees, contractors, invitees and guests, and the property thereof, from acts of third parties, including keeping doors locked and other means of entry to the License Area closed.

Licensee shall have an approved “Event Safety Plan” with-in 30 days of any event signed by the Calistoga Police Chief and the Calistoga Fire Marshall for security and emergency services event needs which must address maintenance of access for ambulance and medical personnel and prevention of spectator and pit crew interference with access.

17. No auction, liquidation, fire sale, going out of business or bankruptcy sale shall be conducted in or about the License Area without the prior written consent of Licensor.

18. No Licensee shall use or permit the use of any portion of the License Area for living quarters, sleeping apartments or lodging rooms. All overnight accommodation, including RV site requests, is the sole property of the Licensor.

19. Licensee, Licensee’s agents, employees, contractors, Licensees, or visitors shall not park any vehicles in driveways, service entrances, common areas, or areas posted as no parking. A 20’ egress must be maintained for emergency services.

20. If the License Area becomes infested with vermin as a result of the use or any misuse or neglect of the License Area by Licensee, its agents, employees, contractors, visitors or Licensees, Licensee shall forthwith, at Licensee’s expenses, cause the same to be exterminated Item #5.6.

Page 85 of 310 ends

Exhibit B
from time to time to the satisfaction of Licensor and shall employ such licensed exterminators as shall be approved in writing in advance by Licensor.

21. Licensee shall not use the name of the premise for any purpose other than as the address of the business to be conducted by Licensee in the License Area, nor shall Licensee use any picture of the premise in its advertising, stationary or in any other manner without the prior written permission of Licensor. Licensor expressly reserves the right at any time to change said name without in any manner being liable to Licensee therefor. Additionally, the name “Calistoga Speedway” is the sole property of the Licensor but may be used in advertising or merchandise by Licensee for the duration of this contract.

22. Licensee, its employees and agents shall not loiter in or on the entrances, corridors, sidewalks, lobbies, courts, halls, stairways, elevators, vestibules or any common areas of the building for the purpose of smoking tobacco products or for any other purposes, nor in any way obstruct such areas, and shall use them only as a mean of ingress and egress from the License Area.

23. Licensor reserves the right to exclude from the premise or the Common Areas any person who, in the judgment of Licensor, is intoxicated or under the influence of liquor or drugs, or who shall in any manner do any act in violation of these Rules and Regulations.

24. Licensor reserves the right at any time to change or rescind any one or more of these Rules and Regulations, or to make such other and further reasonable Rules and Regulations as in Licensors judgment may from time to time be necessary for the management, safety, care and cleanliness of the License Area, common areas of the premise and building utilized, and for the preservation of good order therein, as well as for the convenience of other occupants and Licensees thereof. Licensor may waive any one or more of these Rules and Regulations for the benefit of any particular Licensee, but no such waiver by Licensor shall be construed as a waiver of such Rules and Regulations in favor of any other Licensee, nor prevent Licensor from thereafter enforcing any such Rules and Regulations against any or all Licensees of the Building. Licensee shall be deemed to have read these Rules and Regulations and to have agreed to abide by them as a condition for its use of the License Area.

Item #5.6.

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Exhibit C

EXHIBIT C

LICENSE CONSIDERATION

1. License Consideration. In lieu of a monetary a license fee for the 2025 and 2026 race seasons, Licensee agrees to perform and Complete (as defined below), to the satisfaction of Licensor and by no later than August 1, 2025 (“Work Completion Date”), the work described in the ZFA Structural Engineers Report dated May 20, 2024 (“Report”) attached hereto as Exhibit C-1 and incorporated herein by reference, which work is specifically applicable to the Main Grandstand and Ancillary Grandstand (collectively, “Work”). The Work has an estimated cost to Complete of approximately $100,000; provided that Licensee shall be responsible for Completing the Work irrespective of the actual cost thereof. The Work shall include, but is not limited to, all necessary facility upgrades, electrical service upgrades, compliance with the ADA (defined in Section 6) and any other requirements required by any governmental agency.

2. Approval of Work. At the conclusion of the Work, Licensee shall (a) deliver to Licensor a certification from a licensed structural engineer that the Work has been performed as required by the Report and is fully completed and satisfactory in all respects, and (b) request an inspection from and obtain a Certificate of Occupancy from the City of Calistoga (“Work Approvals”). The Work shall not be considered “Complete” until both of the foregoing Work Approvals are obtained.

3. Skilled Services. In performing the Work, Licensee shall use skilled and licensed personnel and shall cause the Work to be overseen by experienced project managers.

4. Employee Wages; Records; Apprentices. Licensee shall cause all of its contractor(s), subcontractors and consultants (collectively, “Contractors”) to pay prevailing wages to its employees on any contract in excess of $1,000.00. Copies of the general prevailing rates of per diem wages for each craft, classification, or type of worker, as determined by the Director of the State of California Department of Industrial Relations, are on file at the City’s Public Works Department and may be obtained from the California Department of Industrial Relations website [http://www.dir.ca.gov/OPRL/DPreWageDetermination.htm].

All of Licensee’s Contractors shall comply with the 8-hours per day/40 hours per week/overtime/working hours restrictions for all employees, pursuant to the California Labor Code. Licensee and all Contractors shall keep and maintain accurate employee payroll records for the Work. The payroll records shall be certified and submitted as required by law, including Labor Code Sections 1771.4 (if applicable) and 1776, including to the Labor Commissioner no less frequently than monthly. Licensee shall ensure that all Contractors comply fully with Labor Code Section 1777.5 in the hiring of apprentices for work relating to the Agreement. Licensee shall also comply with Public Contract Code § 2601 with regard to reporting requirements.

5. Mandatory Consultant and Subconsultant Registration. Pursuant to Labor Code Section 1771(a), Licensee represents that it and all of its Contractors are currently registered and qualified to perform public work pursuant to Labor Code Section 1725.5.

Licensee covenants that any additional or substitute Contractors will be similarly registered and qualified.

6. Construction Performance Bond; Construction Labor and Materials Payment Bond. If requested by Licensor or any governmental agency, Licensee shall provide a Item #5.6.

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Exhibit C
performance bond and a labor and materials bond, both of which shall be in a form and substance approved by Licensor, to secure its performance of all of the Work.

Contractors may not substitute cash in lieu of any required bond(s).

7. Required Provisions on Contract Claim Resolution. Public Contract Code Section 9204 specifies provisions on resolving contract claims of any size, and Public Contract Code Section 20104, et seq., specifies required provisions on resolving contract claims less than $375,000. Those statutes constitute a part of this Amendment No. 1 and the Original Agreement. In the event any other Original Agreement provision violates such statutes, the applicable statute controls.

Item #5.6.

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Exhibit C-1
EXHIBIT C-1

THE REPORT
[see attached]
Item #5.6.

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Conditions Assessment
Calistoga Fairgrounds Grandstands and Concessions
Building
1435 N Oak St, Calistoga, CA 94515
ZFA Project: 24212
May 20, 2024
Prepared For:

City of Calistoga
414 Washington Street
Calistoga, CA 94515
Prepared By:

Chris Meade, SE, Senior Associate
Chris Jonas, SE, Principal
Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 1
1435 N. Oak St, Calistoga, 94515
General Overview:

At the City of Calistoga’s request, ZFA Structural Engineers performed a conditions assessment of the Main Grandstand, Ancillary Grandstand, and Concessions Building structures located at the Calistoga Fairgrounds, 1435 N. Oak St., Calistoga. Since the existing construction drawings are not available for review, the assessment is based on observations that were plainly visible during a site visit by a ZFA representative on March 29, 2024. No calculations or analysis were performed to evaluate the adequacy of the structure to meet the gravity or lateral requirements of the California Building Code. This report summarizes ZFA’s observations and recommendations.

Main Grandstand:

The Main Grandstand structure consists of a combination of structural and cold-formed steel framing, aluminum floor panels and benches, and is laterally supported by a combination of steel rod and double-angle diagonal braces. A partial roof constructed from a combination of structural steel and corrugated metal roofing covers the top of the seating area. The exterior walls consist of corrugated metal siding, attached to light-gauge steel girts spanning between the steel columns. The walkway at the front of the grandstand is constructed of a concrete slab and concrete masonry unit (CMU) walls. Below the grandstand are utility rooms, bathrooms, and storage rooms. See Photographs 1 through 23.

Observations and Recommendations:

1. The protective primer or paint coating of the structural steel and cold formed steel beams, columns, and braces has deteriorated, leaving much of it exposed to weather and susceptible to corrosion. See Photographs 2 through 14. ZFA recommends that a new coating be applied to the structural steel members to protect them from further corrosion.

2. Mild corrosion is present on most of the structural steel members, with several locations with more severe corrosion including pitting and delamination, indicating a reduction in the structural strength. See Photographs 6 through 14. ZFA recommends that these locations be fully documented and either evaluated for their reduced capacities and repaired or replaced.

3. The small free-standing wood-framed structures under the grandstands are constructed from unconventional construction methods and without a weather resistive barrier on the walls, causing severe dry rot of the roof and wall framing. ZFA recommends that these small structures be demolished and replaced as needed with structures that meet current code requirements. See Photographs 14 through 18.

4. Large cracks and concrete spalls occur at the bottom of several guardrail posts. This appears to have been exacerbated by the corrosion of the post blockout sleeves and lack of concrete reinforcing around the posts. ZFA recommends replacing the corroded sleeves and repairing the concrete cracks and spalls. See Photographs 22 and 23.

Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 2
1435 N. Oak St, Calistoga, 94515
Ancillary Grandstand:

The Ancillary Grandstand structure consists of a combination of galvanized structural steel framing with aluminum floor panels and benches, laterally supported by diagonal pipe bracing.

There is a small wood-framed booth at the top of the grandstand. Six runs of stairs connect the grandstands to the ground level, with pipe guardrails attached to the stringers. See Photographs 24 through 31.

Observations and Recommendations:

1. The rafter tails, fascia, exterior siding, and floor planks of the booth are weathered and have signs of dry rot, reducing the strength of the members. ZFA recommends that the booth framing be thoroughly investigated and all members with dry rot be repaired or replaced. See Photographs 28 through 30.

2. The wood panel finishes at the interior of the booth show signs of prolonged water exposure, indicating possible dry rot of the internal wall framing. See Photograph 31.

ZFA recommends that the wood paneling be removed so framing can be inspected. The gaps between the guardrail pipes at the edge of walkways, grandstand seating, and stairs have openings that are greater than allowed by California Building Code (CBC) section 1015.4. See Photographs 24 and 25. This item is non-structural, but ZFA recommends that these conditions be modified to conform to CBC requirements.

Concessions Building:

The Concessions Building is a single-story wood-framed structure with a concrete slab-on-grade floor. ZFA did not have safe access into the attic to review the roof framing.

Observations and Recommendations:

1. The structure is in a state of severe deterioration, with signs of water intrusion and dry rot throughout the building. To reuse the structure ZFA recommends that finishes are removed to allow thorough review of the framing and that all deteriorated framing is replaced. If it is discovered that the extent of damage and dry rot is prolific, it may be more cost effective to demolish and reconstruct the building to current code requirements. The visible damage observed is as follows:
a. At multiple locations where the roof sheathing and rafters are visible at the eaves, severe dry rot is present, and several rafters and fascia’s have completely deteriorated. See Photographs 34 and 38.
b. The roofing membrane appears to have failed in many locations with signs of water intrusions throughout the interior of the building, including ceiling and wall water staining, bowed and collapsed ceilings, and puddles of water on the floor slab. See Photographs 29 through 46.
c. Dry rot is present at the bottom of the exterior wood siding. The siding is more susceptible to dry rot due to the lack of the 8-inch vertical clear distance between the soil and wood framing, as required by CBC code section 2304.12.1.2. See Photograph 36.
d. The exterior siding appears to be a T1-11 type of wood paneling. These panels are often installed without structural plywood sheathing backing, allowed by code Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 3
1435 N. Oak St, Calistoga, 94515
if adequately nailed, but the siding on the building does not appear to be nailed for conformance with code shear wall requirements.

Closing:

The items discussed in this memorandum are subject to revision or conformation should more information become available. ZFA understands you may have questions regarding this report and are available for comment and explanations.

ZFA STRUCTURAL ENGINEERS
Chris Meade, SE
Senior Associate
Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 4
1435 N. Oak St, Calistoga, 94515
Photograph 1: Main Grandstand Front
Photograph 2: Main Grandstand Interior
Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 5
1435 N. Oak St, Calistoga, 94515
Photograph 3: Main Grandstand Interior
Photograph 4: Main Grandstand Interior
Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 6
1435 N. Oak St, Calistoga, 94515
Photograph 5: Main Grandstand Interior
Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 7
1435 N. Oak St, Calistoga, 94515
Photograph 6: Main Grandstand Interior
Photograph 7: Main Grandstand Interior
Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 8
1435 N. Oak St, Calistoga, 94515
Photograph 8: Main Grandstand Corrosion
Photograph 9: Main Grandstand Corrosion Pitting
Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 9
1435 N. Oak St, Calistoga, 94515
Photograph 10: Main Grandstand Corrosion Delamination
Photograph 11: Main Grandstand Corrosion Delamination
Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 10
1435 N. Oak St, Calistoga, 94515
Photograph 12: Main Grandstand Severe Corrosion Delamination Photograph 13: Main Grandstand Column Corrosion
Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 11
1435 N. Oak St, Calistoga, 94515
Photograph 14: Main Grandstand Wood-Framed Structure
Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 12
1435 N. Oak St, Calistoga, 94515
Photograph 15: Main Grandstand Wood-Framed Structure Dry Rot Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 13
1435 N. Oak St, Calistoga, 94515
Photograph 16: Main Grandstand Interior Wood-Framed Structure Photograph 17: Main Grandstand Interior Wood-Framed Structure Termite Damage Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 14
1435 N. Oak St, Calistoga, 94515
Photograph 18: Main Grandstand Interior Wood-Framed Structure Photograph 19: Main Grandstand Roof
Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 15
1435 N. Oak St, Calistoga, 94515
Photograph 20: Main Grandstand Roof Corrosion
Photograph 21: Main Grandstand Roof Corrosion
Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 16
1435 N. Oak St, Calistoga, 94515
Photograph 22: Main Grandstand Guardrail Post Concrete Spalling Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 17
1435 N. Oak St, Calistoga, 94515
Photograph 23: Main Grandstand Guardrail Post Concrete Spalling Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 18
1435 N. Oak St, Calistoga, 94515
Photograph 24: Ancillary Grandstand
Photograph 25: Ancillary Grandstand Stairs & Guardrails Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 19
1435 N. Oak St, Calistoga, 94515
Photograph 26: Ancillary Grandstand

Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 20
1435 N. Oak St, Calistoga, 94515
Photograph 27: Ancillary Grandstand
Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 21
1435 N. Oak St, Calistoga, 94515
Photograph 28: Ancillary Grandstand Booth

Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 22
1435 N. Oak St, Calistoga, 94515
Photograph 29: Ancillary Grandstand Booth Fascia Deterioration Photograph 30: Ancillary Grandstand Booth Fascia Deterioration Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 23
1435 N. Oak St, Calistoga, 94515
Photograph 31: Ancillary Grandstand Booth Interior

Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 24
1435 N. Oak St, Calistoga, 94515
Photograph 32: Concessions Building
Photograph 33: Concessions Building
Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 25
1435 N. Oak St, Calistoga, 94515
Photograph 34: Concessions Building Damaged Roof and Walls Photograph 35: Concessions Building
Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 26
1435 N. Oak St, Calistoga, 94515
Photograph 36: Concessions Building Siding Dry Rot
Photograph 37: Concessions Building Interior
Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 27
1435 N. Oak St, Calistoga, 94515
Photograph 38: Concessions Building Severely Damaged Roof Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 28
1435 N. Oak St, Calistoga, 94515
Photograph 39: Concessions Building Ceiling Water Damage Photograph 40: Concessions Building Ceiling Water Staining Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 29
1435 N. Oak St, Calistoga, 94515
Photograph 41: Concessions Building Water Damaged Wall and Collapsed Ceiling Photograph 42: Concessions Building Water Damaged Ceiling Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 30
1435 N. Oak St, Calistoga, 94515
Photograph 43: Concessions Building Collapsed Ceiling
Photograph 44: Concessions Building Interior Water Puddle Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 31
1435 N. Oak St, Calistoga, 94515
Photograph 45: Concessions Building Interior Water Puddle Item #5.6.

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Conditions Assessment – Calistoga Grandstands | 32
1435 N. Oak St, Calistoga, 94515
Photograph 46: Concessions Building Water Damaged Ceiling and Wall Item #5.6.

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HMSC License Agreement with ZFA Report -
Final
Final Audit Report 2025-01-25
Created: 2025-01-21
By: Sheli Wright ([email protected])
Status: Signed
Transaction ID: CBJCHBCAABAAfwjXE2KB2H879Ra3HGG-5V1STz_gRfUq "HMSC License Agreement with ZFA Report -Final" History Document created by Sheli Wright ([email protected]) 2025-01-21 - 4:26:13 PM GMT
Document emailed to Tommy Hunt ([email protected]) for signature 2025-01-21 - 4:26:34 PM GMT
Email viewed by Tommy Hunt ([email protected])
2025-01-21 - 5:01:39 PM GMT
Document e-signed by Tommy Hunt ([email protected]) Signature Date: 2025-01-25 - 1:15:04 AM GMT - Time Source: server Agreement completed.
2025-01-25 - 1:15:04 AM GMT
Item #5.6.

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1 Yudiana Galvan
From: Douglas Allan
Sent: Tuesday, February 4, 2025 12:13 PM
To: Public Comment
Cc: Lisa Gift; Donald Williams; Irais Lopez-Ortega; Kevin Eisenberg; Scott Cooper; Laura Snideman; Sheli Wright
Subject: Public Comment for meeting on 2/4/25
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.

Hello City Council,
This is a public comment for Council Meeting on 2/4/25 for Agenda Items 5.6, License Agreement; 7.2 Budget Amendments; 7.4, Fairgrounds Advisory Role; 7.5, Fairgrounds Business Feasibility Plan; and 7.6, Survey. I understand this is longer than a normal public comment but it touches upon 5 separate items because this discussion becomes even more challenging when it is conducted in separate chunks. That is my overarching point. This process needs to be comprehensive and cohesive and in context with many of the myriad complex elements of this long-term endeavor. Please accept this comment in its entirety while covering 5 agenda items.

After having a chance to review the agenda for tonight's meeting, I have some ideas and suggestions. I appreciate you reading them. Because of the way discussions of fairgrounds-related items are framed in the agenda packet, it is still unclear whether the City and Council are open to facilitating the type of process, plan, and unbiased public participation we need for this very complex and consequential project. There has been progress in that direction, for sure, (thank you!!) but I am strongly urging the Council to acknowledge and discuss the 6-step participation process I, and many others, have repeatedly offered for consideration. Until the Council articulates a coherent plan for involving the public, I am prudently apprehensive that implementing most of the options presented in the agenda packet at this stage would tend to narrow rather than encourage the kind of broad, creative input this opportunity and our community deserve.

What’s most important in this moment is to stay focused on embracing an explicit and comprehensive plan for knowledge-based public participation before we take further steps or spend further money. The foundational elements of such a plan are summarized below, and a more comprehensive plan was submitted to the city council by me for the November special meeting;

1. Provide the public with easy access (e.g., website) to the information needed to shape informed opinions.

2. Collect thorough and reliable public input, and form a public committee, to elicit local community input regarding both established and widely accepted generic community-wide goals and needs.

3. Based on the local public input received, prepare conceptual designs for a reasonable range of master plan alternatives (e.g., 3 or 4) that respond to some or all needs and objectives expressed by the community.

4. For each alternative prepare an initial financial proforma that approximates the costs of capital, operations, and maintenance over the planning horizon (e.g. 90 years). This is similar to the business feasibility plan in this agenda but I believe this type of analysis should be conducted later in the process.

Item #5.6.

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2 5. Rank each alternative according to their relative responsiveness to the various needs and aspirations expressed by the community, and for each alternative provide separate explanations of costs and potential sources of revenue.

6. Circulate the rankings, financial analyses, and potential revenue sources to the public. Conduct a final round of public meetings to solicit public response.

So, in context with this type of master planning process, here are my thoughts in relation to items on the agenda for this meeting:

Proposed 6-Step Long-Term Planning Process
This approach ensures that redevelopment efforts follow a strategic, community-focused framework. By promoting a well-thought-out process, we can help guide the fairgrounds toward sustainable, beneficial uses for our town. But the description of the Business Feasibility Plan in the Staff Report does not align with the vision we advocate in our 6-step process for facilitating input. The focus of the Business Feasibility Plan appears to be on evaluating the business viability of a single alternative, and in greater detail than is needed now. A business plan ultimately would be needed (in fact, it is Step 4 in our proposed process), but it is premature at this initial stage of planning and could be counterproductive.

Instead, what’s needed now is a plan that clearly focuses on cultivating wide public input, and that yields a range of master plan alternatives that can be weighed by the public before choosing an alternative to then subject to a more detailed business analysis.

Citizen-Driven Steering Committee
A steering committee made up of engaged residents can play a key role in shaping the survey development process. And if properly implemented it will have a large and beneficial role in galvanizing broad community support for whichever master plan ultimately is selected to be implemented. It is imperative that the steering committee be appointed prior to taking any further actions related to developing the master plan. That includes prior to selecting the preferred vendor to advise and conduct the survey. This committee should not be solely/exclusively for the development of a survey, although that could be its first task. It should be for the entire duration of the 6-step process.

Additionally, we should not spend any more money on property maintenance or development until a master plan has been approved. The RV park is a good interim revenue generator. It appears that we will have races for two years for some additional revenue. And we need to keep the art center operational.

After that, we need to stop until there is an agreed upon master plan, and an agreed upon way to pay for whatever agreed upon plan.

Thank you,
Douglas Allan
Item #5.6.

Page 125 of 310 ends

1 Yudiana Galvan
From: Rods of the Valley LLC Napa Valley California
Sent: Monday, February 3, 2025 10:25 PM
To: Public Comment
Subject: Hunt motor sports agreement
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.

I am 100% in favor of approving the contract with the Hunt motorsports group. This group of people has worked hard to promote the racing and the awakening of the Calistoga facility. They provided many hours of service to help clean the place up. they’ve been involved in the racing in years past and they now Are conducting the leadership of the owners of the cars that will be running at that facility. The Hunt motorsports group has been involved in this type of racing and programs for decades. I feel that there could not be anybody more prepared to handle the promotion and operation of the speedway facility.

Thank you,
Rodney Dahlgren
Napa, Ca
Item #5.6.

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City of Calistoga

STAFF REPORT
To: Honorable Mayor and City Council
From: Sheli Wright, Fairgrounds Revitalization Director Meeting: City Council - Feb 04 2025
Subject: Amendment to Modern Method Roofing Co. Consultant Agreement DESCRIPTION:

Consideration of a Resolution Amending Contract to Modern Method Roofing Co., for roof replacement for the Butler Building.

RECOMMENDATION:

Consider Adopting the Resolution and authorize the City Manager to execute the contract amendment.

SUMMARY:

The Butler Building needs repairs to its roof to ensure that it is watertight. The contract approved by the City Council on November 19, 2024, lacked certain terms mandatory under the public contract code and thus needs amending before authorization and the project begins.

ANALYSIS:

The City Council approved and authorized the Modern Method Roofing Co, Consultant Agreement on November 19, 2024. Since the agreement is a standard contract template, it was not sent to legal for review. However, since this is a construction project, the agreement should have included standard public contract provisions that protect the City under the Public Contract Code.

Staff is recommending the approval of an amendment to the agreement to include these provisions.

FINANCIAL IMPACT:

None
CEQA STATUS:

CEQA is not applicable
ATTACHMENT(S):

Resolution - Modern Method Roofing Amendement - Butler Building Roof Amendment No. 1 to Agreement for Consultant Services with Modern Method APPROVAL(S):

Rachel Stepp, Deputy City Manager Approved - Jan 24 2025 Item #5.7.

Page 127 of 310 ends

Connie Cardenas, Admin. Services Director Approved - Jan 24 2025 Laura Snideman, City of Calistoga | City Manager Approved - Jan 28 2025 Yudiana Galvan, City of Calistoga | City Clerk Approved - Jan 28 2025 Item #5.7.

Page 128 of 310 ends

RESOLUTION NO. 2025-XXX

ADOPTED XXXXX

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

NAPA, STATE OF CALIFORNIA, AUTHORIZING THE EXECUTION OF AN

AMENDMENT TO THE CONSULTANT SERVICES AGREEMENT WITH MODERN METHOD ROOFING AND CONSTRUCTION.

WHEREAS, the Calistoga City Council recognizes the importance of safeguarding the Butler Building due to its historic and potential economic impact to the newly acquired fairgrounds property.

WHEREAS, on November 19, 2024, the Calistoga City Council authorized the City Manager to execute a consultant services agreement with Modern Method Roofing Co., Inc for roof replacement on the Butler Building; and WHEREAS, staff have found that the consultant contract lacked important public contract requirements for construction.

NOW, THEREFORE BE IT RESOLVED that the Calistoga City Council hereby authorizes the City Manager to execute an amendment to the consultant services agreement with Modern Method Roofing Co., Inc to include recommended provisions in alignment of the Public Contract Code.

PASSED, APPROVED AND ADOPTED this 4 day of February 2025.

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST: APPROVED:
_______________________ ______________________
Yudiana Galvan, City Clerk Donald Williams, Mayor
Item #5.7.

Page 129 of 310 ends

AGREEMENT FOR CONSULTANT SERVICES AMENDMENT NO. 1
This AMENDMENT NUMBER 1 is entered into as of the 4
th day of February, 2025, by
and between the CITY OF CALISTOGA, herein called the “City” or “Owner,” and MODERN METHOD ROOFING CO., herein called the “Consultant.”

RECITALS
A. City desired to obtain Consultant Services in connection with roofing work for the Butler Building located at 1435 N Oak Street, and for that purpose entered into an agreement with Consultant dated November 19, 2024 (“Original Agreement”).

B. Consultant hereby warrants to the City that Consultant is skilled and able to provide such services described in the Original Agreement and in this Amendment No.1.

C. City and Consultant agree to the following additional terms to the Original Agreement in this Amendment No. 1.

AGREEMENT AMENDMENT NO. 1

1. Employee Wages; Records; Apprentices. Consultant shall pay prevailing wages to its employees on any contract in excess of $1,000.00. Copies of the general prevailing rates of per diem wages for each craft, classification, or type of worker needed to execute the Contract, as determined by Director of the State of California Department of Industrial Relations, are on file at the City’s Public Works Department and may be obtained from the California Department of Industrial Relations website [http://www.dir.ca.gov/OPRL/DPreWageDetermination.htm].

Consultant shall comply with the 8-hours per day/40 hours per week/overtime/working hours restrictions for all employees, pursuant to the California Labor Code. Consultant and all Subconsultants shall keep and maintain accurate employee payroll records for Work performed under the Agreement. The payroll records shall be certified and submitted as required by law, including Labor Code Sections 1771.4 (if applicable) and 1776, including to the Labor Commissioner no less frequently than monthly. Consultant shall comply fully with Labor Code Section 1777.5 in the hiring of apprentices for work relating to the Agreement. (Further requirements are in Exhibit F) Consultant shall also comply with Public Contract Code § 2601 with regard to reporting requirements.

2. Mandatory Consultant and Subconsultant Registration. Pursuant to Labor Code Section 1771(a), Consultant represents that it and all of its Subconsultants are currently registered and qualified to perform public work pursuant to Labor Code Section 1725.5. Consultant covenants that any additional or substitute Subconsultants will be similarly registered and qualified.

3. Construction Labor and Materials Payment Guarantee. Consultant shall provide a construction performance payment guarantee to the satisfaction of city staff.

4. Public Records Act. Consultant is aware that this Amendment No. 1 and the Original Agreement and any documents provided to the City may be subject to the California Public Records Act and may be disclosed to members of the public upon request. It is the responsibility of the Consultant to clearly identify information in those documents it considers to be confidential under the California Public Records Act. To the extent that City agrees with that designation, such information will be Item #5.7.

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held in confidence whenever possible. All other information will be considered public.

5. Required Provisions on Contract Claim Resolution. Public Contract Code Section 9204 specifies provisions on resolving contract claims of any size, and Public Contract Code Section 20104, et seq., specifies required provisions on resolving contract claims less than $375,000. Those statutes constitute a part of this Amendment No. 1 and the Original Agreement. In the event any other Original Agreement provision violates such statutes, the applicable statute controls.

6. Agreement in Effect. All other provisions of the Original Agreement, as amended, shall remain in full force and effect.

IN WITNESS WHEREOF, the City and Consultant have executed this Amendment No. 1 as of the date first written above.

CITY OF CALISTOGA MODERN METHOD ROOFING CO.

By: ________________________ By: _____________________
Laura Snideman Sean Hummer
City Manager President and CEO
ATTEST:

By: __________________________
Yudiana Galvan
City Clerk
Item #5.7.

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RESOLUTION NO. 2025-XXX

ADOPTED XXXXX

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

NAPA, STATE OF CALIFORNIA, AUTHORIZING THE EXECUTION OF AN

AMENDMENT TO THE CONSULTANT SERVICES AGREEMENT WITH MODERN METHOD ROOFING AND CONSTRUCTION.

WHEREAS, the Calistoga City Council recognizes the importance of safeguarding the Butler Building due to its historic and potential economic impact to the newly acquired fairgrounds property.

PASSED, APPROVED AND ADOPTED this 4 day of February 2025.

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST: APPROVED:
_______________________ ______________________
Yudiana Galvan, City Clerk Donald Williams, Mayor
Item #5.7.

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B. Consultant hereby warrants to the City that Consultant is skilled and able to provide such services described in the Original Agreement and in this Amendment No.1.

C. City and Consultant agree to the following additional terms to the Original Agreement in this Amendment No. 1.

AGREEMENT AMENDMENT NO. 1

3. Construction Labor and Materials Payment Guarantee. Consultant shall provide a construction performance payment guarantee to the satisfaction of city staff.

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held in confidence whenever possible. All other information will be considered public.

6. Agreement in Effect. All other provisions of the Original Agreement, as amended, shall remain in full force and effect.

IN WITNESS WHEREOF, the City and Consultant have executed this Amendment No. 1 as of the date first written above.

CITY OF CALISTOGA MODERN METHOD ROOFING CO.

By: ________________________ By: _____________________
Laura Snideman Sean Hummer
City Manager President and CEO
ATTEST:

By: __________________________
Yudiana Galvan
City Clerk
Item #5.7.

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City of Calistoga

STAFF REPORT
To: Honorable Mayor and City Council
From: Greg Desmond, Planning & Building Director
Meeting: City Council - Feb 04 2025
Subject: Development Impact Fee Study
DESCRIPTION:

Consider Adopting Resolution Setting the Development Impact Fees Based on the City of Calistoga Development Impact Fee Nexus Study Dated December 20, 2024.

RECOMMENDATION:

Consider Adopting the Resolution
SUMMARY:

The Citywide Development Impact Fee Program generates funding for capital facilities investments (including vehicles and equipment) associated with police, fire, cultural/recreation, City administration, and transportation functions. Impact fees are one-time charges on new development collected and used by the City to cover the cost of capital facilities that are required to serve new growth. The City’s Development Impact Fees were last set in 2014. The City retained the services of Economic and Planning Systems, Inc (EPS) and W-Trans to complete a Development Impact Fee Nexus Study as required by State law to update the Impact Fees.

The Nexus Study is based on the investments in capital facilities required to either maintain existing service levels for capital facilities or proportionally contribute to proposed increases in citywide service levels for specific capital facilities. The Nexus Study focuses on a time frame of 20 years and uses forecasts of growth and development and associated capital facilities needs over this period. In some cases, specific capital facility project investments have been identified and in other cases categories of capital facility improvements were identified. Identified individual projects may be altered or replaced over time with other qualifying projects as needed to serve new development.

The Nexus Study provides the required nexus findings under the Mitigation Fee Act and a description of compliance with the latest additions to the Mitigation Fee Act, under the recently passed AB 602, the underlying technical analysis, and the associated calculations of the maximum supportable citywide fees that could be charged.

On November 12, 2024, a Draft Development Impact Fee Report which included information on the Fire, Police, Culture/Recreation, City and Administration Impact Fees was presented to the City Council. Input from the City Council was incorporated into the December 20, 2024 Draft Development Impact Fee Nexus Study which also includes analysis of the Transportation Impact Fees.

ANALYSIS:

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The Nexus Study provides the required technical analysis to support the updated Calistoga Development Impact Fee program. The Mitigation Fee Act allows the City to adopt, by resolution, updated Citywide Development Impact Fees consistent with the supporting technical analysis and findings provided in the Nexus Report, and consistent with the basic parameters of the fee that have been adopted by an enabling ordinance and codified in the Calistoga Municipal Code (Title 3, Revenue, Finance and Expenditure).

The Nexus Study includes five chapters, as summarized below.

Chapter 1 – Introduction and Results. This chapter provides an overview of the study as well as a summary of the results.

Chapter 2 – Development Forecasts and Service Population. This chapter presents estimates of future development in the City of Calistoga and the associated demographic, job, and visitor growth forecasts. This data is used to derive the appropriate allocation of capital costs between existing and new development and between different land uses. Forecasts of new development were converted into population, visitor, and job estimates based on established sources. Different allocation factors (percentages) were derived based on different service population metrics; these service population metrics establish relative levels of capital facilities demand from different demand drivers (i.e., residents, employees, and visitors) for different capital types (e.g., police vs. parks and recreation).

Chapter 3 – Facility Needs and Capital Cost Estimates. This chapter describes the proposed nontransportation capital facilities investments required to maintain the existing service level or reach the desired service standard in the City. The methodology and technical calculations for determining the appropriate and proportionate cost allocation of the total facilities costs to new development are also provided for Police, Fire, Cultural/Recreation and City Administration fee categories.

Chapter 4 – Nexus Findings and Impact Fee Summary. This chapter provides the required findings for the update of the non-transportation development impact fees, as required under Government Code Section 66000 (also referred to as AB1600/the Mitigation Fee Act). It demonstrates the "nexus" between new development in Calistoga and the capital facilities needed to serve it. The calculations of the maximum, justifiable fees for police, fire, cultural/ recreation, and city administrative fee categories are provided.

Chapter 5 – Transportation Impact Fee Update. This chapter covers new development’s share of the costs associated with providing infrastructure improvements necessary to accommodate the increase in vehicle, bicycle, and pedestrian trips associated with the additional development. The Transportation Impact Fees are intended to assist the City in maintaining acceptable traffic operation and safety for motorists and users of active transportation modes consistent with City policies, and help fund the transportation improvements that have been identified in the City’s Capital Improvement Program, the prior impact fee study, the Calistoga Active Transportation Plan, and the Napa County Pedestrian Plan as being necessary to accommodate future development.

Maximum Fee Schedule
The table below shows the City’s maximum capital facilities impact fee schedule. If adopted, the updated development impact fees would apply to new residential and nonresidential development and help fund a proportional share portion of capital facility, vehicles, and equipment costs. The maximum fee estimates include a 2 percent program administration fee consistent with the current fee program and Mitigation Fee Act program administrative costs applied in many other California jurisdictions. Fees apply to new development inside the City limits. The City can adopt fees at levels Item #6.1.

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below these maximum, nexus-supported levels based on policy considerations. As directed by AB 602, per unit residential fees are translated into and would be applied on a per square foot basis.

Current v Proposed Fees
The table below compares the maximum capital facility fees calculated in the 2024 Nexus Study to the existing fee schedule in the City of Calistoga.

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If adopted, the new fees would replace the City’s existing fee schedule charged to new development (exclusive of existing development agreements), for public safety improvements, cultural/recreational facilities, city administration facilities, and transportation improvements.

FINANCIAL IMPACT:

Should fees be increased, the city will have additional funding available for certain projects, especially capital improvement projects. The amounts are based on the amount of development activity that occurs and are unpredictable.

CEQA STATUS:

Not applicable
ATTACHMENT(S):

Reso 2025-XXX Setting Development Impact Fees
City of Calistoga Development Impact Fee Nexus Study - Draft Report Development Impact Fee Table 1 - Maximum Fee by Land Use Development Impact Fee Update Presentation
APPROVAL(S):

Laura Snideman, City of Calistoga | City Manager Approved - Jan 28 2025 Yudiana Galvan, City of Calistoga | City Clerk Approved - Jan 28 2025 Item #6.1.

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RESOLUTION NO. 2025-XXX

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

NAPA, STATE OF CALIFORNIA, SETTING DEVELOPMENT IMPACT FEES BASED

ON THE CITY OF CALISTOGA DEVELOPMENT IMPACT FEE NEXUS STUDY DATED DECEMBER 20, 2024
WHEREAS, on November 18, 2014, the City Council adopted ordinance 704 to provide for the imposition of development impact fees; and WHEREAS, the City of Calistoga Municipal Code Chapter 3.28.040(B) Calculation and Payment of Development Impact Fees requires the fee amounts to be established by City Council resolution; and
WHEREAS, the Development Impact Fees provided for herein are based on the City of Calistoga Development Impact Fee Nexus Study dated December, 2024, prepared by Economic and Planning Systems, Inc. and W-Trans, Inc., consistent with the most recent relevant case law and principals of AB 1600 (the Mitigation Fee Act), codified at Government Code Section 66000 et seq; and
WHEREAS, the fee study established the maximum fees that could be charged under relevant City policies and California statutes; however, it is critical that the updated fees impose a proportionate burden on new development and be reasonably consistent with those of comparable cities in order to not discourage growth within the community; and
WHEREAS, the Development Impact Fee Nexus Study prepared by Economic & Planning Systems, Inc. and W-Trans, Inc. includes recommendations for a schedule of Development Impact Fees that would be set at or below the maximum levels; and WHEREAS, at least ten (10) days prior to the date this resolution is being heard, data was made available to the public indicating the amount of cost, or estimated cost required to provide the service for which the fee or service charge is levied and the revenue sources anticipated to provide the service, including general fund revenues, in accordance with Government Code Section 66018; and
WHEREAS, at least 30-days prior to the date this resolution is being heard, notice of a public hearing to adopt the Nexus Study to support the calculation of the impact fees (per Government Code Section 66016.5(a)(7)) was provided; and WHEREAS, at least fourteen (14) days prior to the date this resolution is being heard, notice was provided to any persons or organizations who had required notice, in accordance with Government Code Section 66019; and
WHEREAS, notice of the hearing on the proposed fee was published twice in the manner set forth in Government Code Section 6062(a) as required by Government Code Section 66018; and
Item #6.1.

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Resolution No. 2025-XXX

Page 2 of 4 ends

WHEREAS, a duly and properly noticed public hearing was conducted by the City Council on January 21, 2025.

NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Calistoga as follows:

SECTION ONE FINDINGS
A. The above recitals are incorporated herein as if set forth herein in full and each is relied upon independently by the City Council for its adoption of this resolution.

B. The Council finds and determines the fee schedule is consistent with state law (California Government Code Section 66000 et seq.). Specifically, the Development Impact Fee Nexus Study establishes that there is a reasonable relationship between the need for the public facilities, and the fee’s use, and the type of development project on which the fee is imposed. The Council finds that the proposed fee schedule bears a reasonable relationship between the amount of the fee for each development project and the cost of the public facility, or portion of the public facility, attributable to the development on which the fee is imposed.

SECTION TWO ADJUSTMENTS
A. The City Council may review and amend the Development Impact Fees from time to time.

B. For any period of one year or more after the City Council approves or amends any fee approved by this resolution, the City Manager (or duly authorized designee) is authorized to implement an administrative adjustment to the fee amount based on the increase, if any, in the Engineering News Record U.S. 20 Cities average construction cost index for the June preceding the increase and the June one year prior thereto. The adjustment shall be made in writing, posted on the City’s website in accordance with Government Code Section 65940.1, and effective no earlier than thirty days after it is posted on the City’s website.

SECTION THREE ADOPTION
A. The City Council hereby adopts the City of California Development Impact Fee Nexus Study dated December 2024, prepared by Economic and Planning Systems, Inc. and W-Trans, Inc.

B. The City Council hereby adopts the Development Impact Fees, which are shown in Exhibit A and attached hereto and incorporated by this reference, which shall become effective March 22, 2025.

Item #6.1.

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Resolution No. 2025-XXX

Page 3 of 4 ends

PASSED, APPROVED, AND ADOPTED this 4th day of February 2025. I, YUDIANA GALVAN, 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, CMC, City Clerk Donald Williams, Mayor
Item #6.1.

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Resolution No. 2025-XXX

Page 4 of 4 ends

EXHIBIT A – DEVELOPMENT IMPACT FEES
Item #6.1.

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Draft Report
City of Calistoga
Development Impact
Fee Nexus Study
Prepared for:

City of Calistoga
Prepared by:

Economic & Planning Systems, Inc. and W-Trans
December 2024
EPS #211041
Item #6.1.

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Table of Contents

1. Introduction and Results 1
Maximum Fee Schedule.........................................................................................................................................2 Mitigation Fee Act ..................................................................................................................................................4 Key Methods, Assumptions, and Sources .......................................................................................................... 6 Report Organization ...............................................................................................................................................8

2. Development Forecasts and Service Population 9
Residential Development and Population Growth........................................................................................... 9 Nonresidential Development and Employment and Visitor Growth............................................................ 9 Service Population and Allocation Factors ......................................................................................................12

3. Facility Needs and Capital Cost Estimates 14
Methodology..........................................................................................................................................................14 Police .......................................................................................................................................................................16 Fire ...........................................................................................................................................................................18 Cultural/Recreation ..............................................................................................................................................19 City Administration...............................................................................................................................................20

4. Nexus Findings and Impact Fee Summary 22
Nexus Findings ......................................................................................................................................................22 Maximum Impact Fees .........................................................................................................................................24

5. Transportation Impact Fee Update 27
Nexus Findings ......................................................................................................................................................27 Future Trip Generation Estimates .....................................................................................................................28 Future Transportation Improvements ..............................................................................................................29 Improvement Project Costs ................................................................................................................................31 Funding ...................................................................................................................................................................32 Transportation Impact Fee Calculations ..........................................................................................................33 APPENDIX A: Calistoga DIF Long-Term Capital Improvement Plan APPENDIX B: Detailed Public Safety Equipment & Vehicle Lists APPENDIX C: Commercial Fee Breakdown
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List of Tables
Table 1 Summary of Maximum Capital Facility and Equipment Development Impact Fees......................3 Table 2 Fee Level Comparison ................................................................................................................................4 Table 3 Service Population Estimates and Allocations.................................................................................... 10 Table 4 City of Calistoga Development Pipeline.............................................................................................. 11 Table 5 Future Daily Population, Employment, and Visitor Forecast .......................................................... 11 Table 6 New Facility Service Standards ............................................................................................................. 15 Table 7 Capital Project List Facilities .................................................................................................................. 16 Table 8 Calistoga Police Department Infrastructure Cost Estimates........................................................... 18 Table 9 Calistoga Fire Department Infrastructure Cost Estimates............................................................... 19 Table 10 Cultural/Recreation Capital Improvements List................................................................................. 20 Table 11 Administrative Facilities and Cost Required to Maintain Existing Service Level......................... 21 Table 12 Summary 20-Yr Capital Facilities Costs Allocation Between New and Existing Development ..24 Table 13 New Development Maximum Cost Allocation by Land Use ........................................................... 25 Table 14 New Development Maximum Cost by Land Use.............................................................................. 25 Table 15 Maximum Fee by Land Use.................................................................................................................... 26 Table 16 Per Square Foot Fee Conversion .......................................................................................................... 26 Table 17 Trip Generation Summary ...................................................................................................................... 29 Table 18 Transportation Improvement Project Costs ....................................................................................... 32 Table 19 Transportation Program Cost ................................................................................................................ 33 Table 20 Transportation Impact Fee Summary................................................................................................... 35 Item #6.1.

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Calistoga Development Impact Fee Nexus Study
Draft Report 12/20/24
Economic & Planning Systems, Inc. 1 Introduction and Results

1. Introduction and Results
This Development Impact Fee Study provides the City of Calistoga (City) with the required technical documentation to update the City’s Development Impact Fee Program (Fee Program). The Citywide Development Impact Fee Program generates funding for capital facilities investments (including allowed facilities, vehicles and equipment) associated with police, fire, cultural/recreation, City administration, and transportation functions. Impact fees are one-time charges on new development collected and used by the City to cover the cost of capital facilities that are required to serve new growth. Impact fees cannot be used to address existing deficiencies in capital facilities or to pay for ongoing operations and maintenance costs.

If adopted by the City Council, this updated Fee Program will replace the City’s existing fee program. This technical study has been prepared by Economic & Planning Systems, Inc. (EPS) in association with W-Trans, Inc., with direction and input from City staff in the Fire, Police, Public Works, Planning and Building, and Recreation Departments and City Manager’s Office.1
The Fee Program described in this Report is based on the identification by City staff of the investments in capital facilities required to either maintain existing service levels for capital facilities or proportionally contribute to proposed increases in citywide service levels for specific capital facilities. The Fee Program focuses on a time frame of 20 years and, as such, uses forecasts of growth and development and associated capital facilities needs over this period. In some cases, specific capital facility project investments have been identified and in other cases categories of capital facility improvements were identified. Identified individual projects may be altered or replaced over time with other qualifying projects as the City administers the Fee Program and funds capital facilities needed to serve new development.

This Report provides the required nexus findings under the Mitigation Fee Act and a description of compliance with the latest additions to the Mitigation Fee Act, under the recently passed AB 602, the underlying technical analysis, and the associated calculations of the maximum supportable citywide fees that could be 1 W-Trans prepared the transportation development impact fee analysis included in Chapter 5.

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Calistoga Development Impact Fee Nexus Study
Draft Report 12/20/24
Economic & Planning Systems, Inc. 2 Introduction and Results charged.2 The City may elect to adopt fees below the maximum supportable level based on economic or policy considerations. Such fee reductions could either occur through a formal reduction in the maximum fee estimates (by reducing facilities standards or planned investments) or by maintaining the same capital facilities program and backfilling the reduced fee revenues with alternative sources of capital funding. More broadly, to the extent new development can only be required to fund a portion of particular capital facilities, the remaining funding will be required from other funding sources.

This Report and the technical information it contains, should be maintained and reviewed periodically by the City to ensure Impact Fee accuracy and to enable the adequate programming of funding sources. To the extent that improvement requirements, costs, population, employment, visitors or development potential changes over time, the Fee Program will need to be updated.

Maximum Fee Schedule
Table 1 shows the City’s maximum capital facilities impact fee schedule for the facility types evaluated based on the nexus findings and analysis contained in this Report. If adopted, these updated development impact fees would apply to new residential and nonresidential development and help fund a proportional share portion of capital facility, vehicles, and equipment costs. The maximum fee estimates include a 2 percent fee program administration fee consistent with the current fee program and Mitigation Fee Act program administrative costs applied in many other California jurisdictions.3 Fees apply to new development inside the City limits.
2 As required by AB 602, the Terner Center for Housing Innovation at UC Berkeley provided impact fee nexus study guidance in its report, “Impact Fee Nexus Study Templates”, December 2023, for the California Department of Housing and Community Development. This report was reviewed as part of the preparation of this study and references are made to specific study terms/ concepts where applicable. 3 The 2 percent administration cost is designed to cover expenses for preparation of the development impact fee and subsequent updates as well as the required reporting, auditing, collection and other annual administrative costs involved in overseeing the program. Development impact fee programs throughout California have applied similar administrative charges.

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Calistoga Development Impact Fee Nexus Study
Draft Report 12/20/24
Economic & Planning Systems, Inc. 3 Introduction and Results Table 1 Summary of Maximum Capital Facility and Equipment Development Impact Fees The fees shown in Table 1 represent the maximum updated fees that the City may levy, as calculated in this analysis. As noted above, the City can adopt fees at levels below these maximum, nexus-supported levels based on policy considerations. As directed by AB 602, per unit residential fees are translated into and will be applied on a per square foot basis.

Item per unit 1 per sq.ft. 1 Hotels/Motels Industrial Retail Office per room per sq.ft. per sq.ft. per sq.ft.

Fire $5,480 $2.19 $2,971 $1.11 $2.58 $3.69
Police $1,299 $0.52 $704 $0.26 $0.61 $0.88
Cultural / Recreation $8,854 $3.54 $1,313 $0.72 $1.66 $2.38 City Administration $7,087 $2.83 $3,843 $1.43 $3.33 $4.78 Transportation Fee $10,725 $4.29 $2,763 $4.57 $4.78 $4.78 Total $33,444 $13.38 $11,594 $8.09 $12.96 $16.50
Admin Cost2 $669 $0.27 $232 $0.16 $0.26 $0.33
Total with Admin Cost $34,112 $13.64 $11,826 $8.25 $13.22 $16.83 Residential Development Non-Residential Development
(1) The calculation of per square foot fees on new residential development divides the per unit cost by the estimated average size of a residential home in the City of 2,500 square feet. This average home was derived from data from City staff on the sizes of recent residential development in the City.
(2) Set at 2% consistent with many development fee programs set in California.

Sources: City of Calistoga; Economic & Planning Systems, Inc.

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Calistoga Development Impact Fee Nexus Study
Draft Report 12/20/24
Economic & Planning Systems, Inc. 4 Introduction and Results Table 2 compares the maximum capital facility fees calculated in this nexus study to the existing fee schedule in the City of Calistoga. As shown, the adoption of the maximum allowable fees would result in a substantial increase for most land use categories.

Table 2 Fee Level Comparison
If adopted, the new fees would replace the City’s existing fee schedule charged to new development (exclusive of existing development agreements), for public safety improvements, cultural/recreational facilities, city administration facilities, and transportation improvements.

Mitigation Fee Act
This Nexus Study is designed to provide the required technical analysis to support the updated Calistoga Development Impact Fee program. The Mitigation Fee Act allows the City to adopt, by resolution, an updated citywide Fee Program consistent with the supporting technical analysis and findings provided in this Nexus Report, and consistent with the basic parameters of the fee that have been adopted by an enabling ordinance and codified in the Municipal Code.

Impact fee revenues are used to cover the cost of constructing capital facilities (facilities, vehicles, and equipment) required to serve new development and growth.

Existing Fees
Maximum Fees -
2024 Update
Percent
Increase
Residential (per unit)1 $22,916 $34,112 49%
Retail (per sq. ft.) $10.42 $13.22 27%
Office (per sq. ft.) $8.83 $16.83 91%
Industrial (per sq. ft.) $4.70 $8.25 76%
Hotels/Motels (per
room) $6,921 $11,826 71%
(1) This nexus study proposes a single residential fee, which would be a change from the existing fee schedule, which has a single family fee and a multifamily fee. For comparison purposes, the existing residential fee amount reflects an average of the single family ($26,225 per unit) and multifamily ($19,607 per unit) fees.

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Calistoga Development Impact Fee Nexus Study
Draft Report 12/20/24
Economic & Planning Systems, Inc. 5 Introduction and Results Impact fees must be based on a nexus, or connection, between new development and the need for specific capital facilities and improvements and the fee levels must be proportional to the impacts of the new development. Impact fee revenue cannot be used to cover the operation and maintenance costs of these or any other facilities and infrastructure. In addition, impact fee revenue cannot be collected or used to cover the cost of preexisting infrastructure needs or deficiencies.

Under the Mitigation Fee Act, in establishing, increasing, or imposing a fee as a condition for the approval of a development project, Government Code 66001(a) and (b) require a local agency to:

1. Identify the purpose of the fee;

2. Identify how the fee is to be used;

3. Determine how a reasonable relationship exists between the fee use and type of development project for which the fee is being used;

4. Determine how the need for the public facility relates to the type of development project for which the fee is imposed; and

5. Show the relationship between the amount of the fee and the cost of the public facility.

The required nexus findings for this fee program update are provided in Chapters 4 and 5.

In September 2021, the State of California adopted Assembly Bill (AB) 602, which added new requirements to the Mitigation Fee Act that went into effect in 2022.

This includes several new requirements related to the development and implementation of impact fee programs. Three key provisions related to the calculations documented in this Nexus Report are summarized below. • Capital Improvement Plan: AB 602 requires that jurisdictions adopt a capital improvement plan as part of the nexus study process. This adoption can occur at the same time as the fee ordinance adoption. Appendix A of this Report provides the City of Calistoga Development Impact Fee Long-Term Capital Improvement Plan (Calistoga DIF CIP) to be approved by the City Council in conjunction with the Fee Program update.5 The Calistoga DIF CIP presented in this Nexus Report is derived from the capital improvements identified by City staff that underpin the technical analysis in this Report. 5 The Calistoga DIF CIP is different from and does not replace the City's 10-year CIP.

The 10-year CIP documents serve a shorter-term frame and generally rely on more specific project parameters than the DIF CIP. That said, the updated development impact fees will likely provide funding to support some of the projects included in the 10-year CIP.

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Calistoga Development Impact Fee Nexus Study
Draft Report 12/20/24
Economic & Planning Systems, Inc. 6 Introduction and Results • Per Square Foot Residential Fees: AB 602 notes that for fees adopted after July 1, 2022, the nexus study must “either calculate a fee levied or imposed on a housing development proportionately to the square footage of the proposed units or make specific findings explaining why square footage is not an appropriate metric to calculate the fees.” AB 602 also notes that “This bill would require that a local agency that calculates fees proportionately to the square footage of the proposed units be deemed to have used a valid method to establish a reasonable relationship between the fee charged and the burden posed by the development.” This Study uses an estimate of the average unit size of residential units in the City based on research and data provided by City staff on the size of units at residential developments in the City over the past 10 years. This average home size was applied to the per unit fees to determine the maximum per square foot fee for residential development. • Identify Any Changes in Service Levels. AB 602 also requires that the nexus study identify when the current capital facility level of service is expected to remain the same and when it is proposed to be increased. In cases where an increase in service level is proposed, the nexus study should explain why these increases are being proposed. The service level topic is addressed in subsequent sections of the report with some facilities retaining the same service level and others being proposed to increase service levels.

Key Methods, Assumptions, and Sources
The results of this analysis are based on a variety of conditions and assumptions provided by City staff regarding the need for and cost of new capital facilities (facilities, vehicles, and capital equipment) and development capacity/growth projections. Assumptions and cost allocation methods are covered in detail in later chapters with some key elements summarized below:
• Existing Service Levels Method. For some facilities, vehicles, and equipment, an existing service standard approach is used. This is similar to the “Existing Inventory Method” outlined in the Terner Center Study. For example, for police vehicles and equipment, the current level of investment in vehicles and capital equipment (provided by the Police Department) is converted into a cost per capita. Applying this cost to future development provides the level of additional investment required from new development to maintain existing capital facilities service investment levels.
• Capital Facilities List Approach. In other cases, the City has developed a list of capital facilities, vehicles, and equipment that indicate the types of investments planned over the next twenty years. These capital facilities were provided by City staff and/or derived from the City’s existing 10-Year capital improvement plan or other City documents. They include a range of investments in city administrative facilities, cultural/ recreational facilities, and fire station Item #6.1.

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Calistoga Development Impact Fee Nexus Study
Draft Report 12/20/24
Economic & Planning Systems, Inc. 7 Introduction and Results expansion. Under these cases, it is important to identify when these new facilities will serve both existing and new development and only allocate the appropriate portion of the costs to new development. The process applied in this study for these facilities is consistent with the “System Plan Method” outlined in the Terner Center Study.
• Cost Estimates. The Existing Service Level method requires an estimate of the existing costs of capital facility, vehicle, and equipment provision. Existing public safety capital facility cost estimates were provided by the Fire and Police Departments based on their extensive knowledge of capital equipment unit costs. The Capital Facilities List approach requires cost estimates for the different facilities/ facility groupings on the lists. Facility construction costs for both City administrative and cultural/recreation improvements were provided by City staff or sourced from the City’s 10-Year Capital Improvement Plan.

Transportation costs are based on a number of sources, including cost information from the Public Works Department, current cost estimates, and inflation-adjusted costs for some prior capital improvement cost estimates. All cost estimates are provided in constant 2024 dollars.
• Capital Demands and Cost Allocation. In order to allocate costs between different land uses, it is important to have a measure of service population, where the capital facilities demands from each land use can be translated into a consistent metric. The service population estimate incorporates the relative capital facilities demand from the full-service population, including residents, employees, and visitors as appropriate. Standard relative demand assumptions along with City expectations concerning persons per household, employment densities for nonresidential development, and available data on visitors associated with overnight lodging are used to translate different development types into a service population metric. Distinctly for cultural/recreation facilities, a modified service population was used that accounts for the reduced relative impact of employees and visitors on the demand for City cultural/ recreational facilities.6
6 As explained in subsequent chapters, the relative demands for cultural/recreational facilities between residents, employees, and visitors tend to be different than for other facilities (such as public safety). As a result, different service population ratios are used.

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Economic & Planning Systems, Inc. 8 Introduction and Results • Growth and Development. The development impact fee calculations are based on estimates of new and existing development, population, employment, and visitors over the next 20 years. Key sources for the baseline estimates are the 2024 Department of Finance (DOF) data, the 2022 American Community Survey, and City data. The new development forecast is based on an evaluation of land capacity and potential development by the Planning and Building Department staff.

Report Organization
Following this chapter, Chapter 2 discusses the development capacity and growth estimates and forecasts used in this analysis. Chapter 3 outlines facility needs and costs for the non-transportation improvement categories. Chapter 4 provides the nexus findings for the non-transportation fees and the associated technical calculations that derive the maximum allowable impact fees. Chapter 5 outlines the nexus findings as well as the associated technical analysis for the transportation improvements. Appendix A provides a list of all capital improvements included in the Fee Program. Appendix B includes detailed equipment, and vehicle lists for Police and Fire. Appendix C provides a breakdown of the fee calculations for commercial land uses.

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Economic & Planning Systems, Inc. 9 Development Forecasts and Service Population

2. Development Forecasts and Service
Population
This chapter presents estimates of future development in the City of Calistoga, the associated demographic, job, and visitor growth forecasts, and the current City counts. This data is used to derive the appropriate allocation of capital costs between existing and new development and between different land uses. This includes the appropriate allocations between new and existing development as well as between different land uses. Estimates of new development were provided by City staff after careful consideration of development capacity and the potential for development over the 20-year study timeframe. Forecasts of new development were converted into population, visitor, and job estimates based on established sources. Different allocation factors (percentages) were derived based on different service population metrics; these service population metrics establish relative levels of capital facilities demand from different demand drivers (i.e., residents, employees, and visitors) for different capital types (e.g., police vs. parks and recreation).

Residential Development and Population Growth
Table 3 shows estimates of existing and new population associated with the forecasts of new residential development over the next 20 years. As shown, the population in the City is expected to increase from about 5,100 to nearly 6,200 over the next 20 years, representing a 20 percent increase. This increase in residents is expected to be driven by the development of 425 residential units, as shown in Table 4. The average household size assumption is based on the City’s current average of 2.47 persons per household, as shown in Table 5.

Nonresidential Development and Employment
and Visitor Growth
As shown in Table 3, total current jobs in the City are estimated at approximately 1,800. An increase of about 850 jobs to about 2,650 total jobs is forecast over the next 20 years, an increase of 47 percent over the existing baseline. Most of the job growth is expected to be generated by new tourist accommodations and other commercial development, primarily through the forecasted addition of 270 guest rooms and about 235,000 square feet of new commercial and restaurant space (see Table 4 and 5). These nonresidential development forecasts were converted into job growth based on the employment density assumptions (i.e., square feet per employee) and are shown in Table 5.

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Economic & Planning Systems, Inc. 10 Development Forecasts and Service Population Table 3 Service Population Estimates and Allocations
Item Weight1 Existing Potential Growth Forecast Total
Populations (20 years)
Residents 100% 5,142 1,051 6,193
% of Buildout 83% 17% 100%
Jobs 50% 1,803 847 2,650
% of Buildout 68% 32% 100%
Overnight Visitors2 50% 1,159 454 1,613
% of Buildout 72% 28% 100%
Service Population3 6,623 1,701 8,324
(weighted mix )
% of Buildout 80% 20% 100%
Modified Service Population4 5,619 1,266 6,884
(weighted mix )
% of Buildout 82% 18% 100%
Sources: California Department of Finance; U.S. Census; Economic & Planning Systems, Inc. (1) Based on the EPS assumption as a proxy for relative contribution to facilities and equipment demand for public safety and City administration uses.
(2) Day visitors are not attributed to any particular land use and are excluded from this analysis given their shortterm stay. (3) A service measure designed for general city service demand; reflects residential uses having a factor of 1, while commercial and tourist accommodation uses have a factor of 0.5. (4) A service measure designed for cultural/recreation demand; reflects residential uses having a factor of 1, while commercial uses having a factor of 0.2 and tourist accommodation of 0.1.

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Economic & Planning Systems, Inc. 11 Development Forecasts and Service Population Table 4 City of Calistoga Development Pipeline
Table 5 Future Daily Population, Employment, and Visitor Forecast Actual employment growth will depend on a wide range of factors, including broader economic cycles, pace of development activity, and the regulatory framework in the City.

Land Use New Development
Commercial
Hotels/Motels 270 rooms
Industrial 30,000 sq.ft.

Commercial 235,000 sq.ft.

Residential
Single Family 106 units
Multi-Family 319 units
Residential Total 425 units
Sources: City of Calistoga; Economic & Planning Systems, Inc.

Item Residents Employees Visitors
Commercial
Hotels/Motels1 1.7 visitors per room 454

1.0 employee per room 270
Industrial 1,000 sq.ft. per empl. 30
Commercial2 430 sq.ft. per empl. 547
Residential3 2.47 people per hh 1,051
Totals 1,051 847 454
(1) Based on average of 2.4 visitors per occupied room and 70% occupancy based on the normalized hospitality trends. (2) Assumed by EPS based on the citywide averages, City documents, and experience in other comparable jurisdictions. (3) Based on current people per household in Calistoga, per American Community Survey 2021 5-Year Estimate.

Sources: City of Calistoga, and Economic & Planning Systems, Inc.

Potential New Growth
Forecasting Factor
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Economic & Planning Systems, Inc. 12 Development Forecasts and Service Population Given Calistoga’s orientation towards tourism, this analysis considers overnight visitors and visitor-generating uses as they are an important component of the demand for capital improvements. Based on the data from the pre-pandemic 2018 Napa Valley Tourist Profile Survey, EPS estimated a current annual average of 1,159 daily overnight visitors in Calistoga. The development of 270 guest rooms would support the growth of about 450 overnight visitors over the next 20 years. The growth estimate is based on the forecast for new tourist accommodation development and average visitors per room assumption shown in Table 3 and 4.

Service Population and Allocation Factors
Service population is a measure commonly used to incorporate job, and sometimes visitor, growth as well as resident growth into allocations of capital facilities demand and associated costs. An employee or visitor tends to place a lower level of demand on a City’s capital facilities, vehicles, and equipment than a resident. As a result, the capital facilities demand weighting is typically discounted for employees and visitors. The appropriate weighting can also vary for different capital improvement groups (e.g., police vs. parks and recreation).

Based on capital improvements included in this analysis, typical approaches to relative demand in other nexus studies, as well as recent research by EPS into relative demand by visitors for parks and recreation facilities, two different service population estimates were developed. Service population estimates for public safety (police and fire) and City administration capital improvements are derived based on a weighting of 1.0 for residents and 0.5 for employees and visitors.7 A modified service population was developed for cultural/recreation land and facilities based on recent EPS research. This allocation reflects a lower level of demand from employees and visitors for parks and recreation facilities and includes a weighting of 1.0 for residents, 0.2 for employees, and 0.1 for visitors.

Table 3 shows the current service population is about 6,620 with a forecast increase of about 1,690 associated with new residents, jobs, and visitors. This represents a 26 percent increase over the existing service population which is used as a measure of the demand increase from new development for capital improvements. For the modified service population, the current service population is about 5,620 with a forecast increase of about 22 percent associated with new residents, jobs, and visitors. These service population proportional increases as well as the relative service population growth by different land uses 7 Service population is a commonly used measure that estimates service needs based on relative demand generated by residents, employees, and visitors.

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Economic & Planning Systems, Inc. 13 Development Forecasts and Service Population ensure an appropriate and proportional allocation of capital costs between existing and new development and between different new land uses in the subsequent chapters.

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Economic & Planning Systems, Inc. 14 Facility Needs and Capital Cost Estimates

3. Facility Needs and Capital Cost
Estimates
This chapter describes the proposed non-transportation capital facilities investments required to maintain the existing service level or reach the desired service standard in the City. In addition, the methodology and technical calculations for determining the appropriate and proportionate cost allocation of the total facilities costs to new development are provided. This chapter is divided into four sections corresponding to the following capital facilities development impact fee categories:

1. Police

2. Fire

3. Cultural/Recreation

4. City Administration
Chapter 4 builds on this data and analysis and provides the nexus findings and maximum supportable development impact fee updates by facility type.

Methodology
As described in Chapter 1, the City is seeking to maintain the current capital facilities service levels for some capital facilities as the City grows, while it has also identified certain facilities where an increase in service level is appropriate and an overall higher service standard is sought. These different sets of facilities and service levels require different methodological approaches when allocating costs and determining impact fees.

Existing Service Level Method
The City of Calistoga will seek to maintain the service level for many of its capital facility investments. In many of these cases the analysis will estimate a cost per capita to continue to provide this same level of services, for example the capital cost per capita to equip and support the police and fire departments. This is similar to the “Existing Inventory Method” outlined in the Terner Center Study.

Capital Project List Method/ Enhanced Service Level
The City of Calistoga has several anticipated facility projects which represent an increase in the level of service to the community. To ensure that new development only pays its fair share this analysis uses the “goal” facility space along with the buildout (existing and future) service population to establish a service standard for facility square feet per capita. That service standard is then Item #6.1.

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Economic & Planning Systems, Inc. 15 Facility Needs and Capital Cost Estimates applied to the growth service population along with a cost factor to determine the appropriate cost allocated to new development. This approach aligns with the “System Plan Method” outlined in the Terner Center Study.

Table 6 New Facility Service Standards
As shown in Table 6, these new facilities include:
• City Hall/ Council Chambers. The City requires a new City Hall/ Council Chambers to serve both existing and future growth over the next 20 years. The new facility will substantially increase the existing level of service provided by the current space.
• Community Center. The City also plans to develop a new Community Center to provide an enhanced experience for when the existing facility is redeveloped as part of the new City Hall/ Council Chambers project. This new facility will serve both existing and future development. • Fairgrounds Redevelopment. The City is planning to make capital facility investments in the Fairgrounds property over the next twenty years. The full redevelopment of the Fairgrounds will take well beyond the next 20 years. The City has sized its investments around two phases of development expected to cover about 70.6 acres of the Fairgrounds property.

Item
Facility
Space
Service
Standard
(sq.ft. /
service
population)
Facility
Space
Needed
for Growth
Cost
per Sq.

Ft. Total Cost
Cost
Allocated
to Growth
a
b = a /
Forecast
Total
c = b *
Service
Population d e = a * d f = c * d
Fire Station
Expansion 4,000 0.48 818 $1,600 $6,400,000 $1,308,009
City Hall/Council
Chambers 12,500 1.50 2,555 $1,600 $20,000,000 $4,087,528 Community
Center 2,000 0.29 368 $1,600 $3,200,000 $588,304
Fairgrounds
Redevelopment1 3,075,336 447 565,385 $5.98 $18,405,000 3,383,668 (1) Total cost reflects initial redevelopment efforts for the 70.6 acre Calistoga Fairgrounds. Additional efforts may be included in subsequent Nexus Study updates.

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Economic & Planning Systems, Inc. 16 Facility Needs and Capital Cost Estimates For each of these facilities, the expected developed square footage/ acreage at the end of the 20-year period is identified and a new Citywide service standard is estimated. This service standard is then applied to new development to determine the amount of facility it is responsible for with a cost factor applied to determine its proportional cost share of the total facility cost. As an example, the planned new City Hall/ City Council Chambers of 12,500 square feet will result in a buildout service standard of 1.5 square feet per service population. About 2,555 square feet of the facility can then be tied to new development, resulting in an allocation of about $4.1 million (out of $20 million) to new development/ the impact fee program.

Capital Project List Method/ Similar Service Level
For several other capital facilities and types, the City is planning on more modest investments. It is expected that overall, these improvements will primarily help maintain existing levels of service in terms of, for example, parks improvements.

However, because there is some uncertainty around whether these investments could in some cases marginally increase service levels, the improvements are assumed to serve both new and existing development (rather than just being allocated to new development). In this way, it is ensured that new development will not pay more than its fair share of these improvements. Examples of these facilities and their cost allocations are provided in Table 7 below.

Table 7 Capital Project List Facilities
Police
The Police Department currently makes investments in a broad range of vehicles and equipment. As new development occurs, additional investment will be required to maintain the existing level of service. The subsections below describe the technical cost allocation analysis for the proposed Police fee.

Item
Total Facility
Cost
Percent Allocated to
New Development
Cost Allocated to
New Development
City Administration
Improvements to Buildings $2,160,000 20% $441,453
Cultural / Recreation
Heather Oaks Parkway $195,000 18% $35,850
Gateway Project (Vine Trail bookend) $1,600,000 18% $294,152 Improvements to Pools $1,590,000 18% $292,314
Improvements to Parks $1,534,000 18% $282,018
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Economic & Planning Systems, Inc. 17 Facility Needs and Capital Cost Estimates The required investment in police-related equipment is shown in Table 8 with more detail provided in Appendix Table B-1. As shown below, the total current investment in police facilities per capita is estimated at about $525 per capita.

Applying this cost factor to the level of new development expected indicates that a total investment of about $900,000 will be required from new development to maintain the overall level of service. The City will still need to cover the their existing investment estimated at about $3.5 million over 20 years. About 20 percent of these costs are allocated to new development, per the service population calculation in Table 3.

These overall cost estimates include:
• Safety Gear and Equipment. The Police Department provides specialized gear and equipment to its police staff, including protective gear and firearms. About $86,000 of Safety Gear/ Equipment capital cost can be allocated to new development to maintain the existing level of service.
• Communications. The Police Department utilizes specialized communication equipment and technology for emergency response, including radios and computers. About $340,000 of Communications capital cost can be allocated to new development to maintain the existing level of service. • Vehicles and Equipment. The cost of police vehicles and associated equipment replacement is based on existing vehicle inventory. The City currently has nearly 30 units of vehicles, motorcycles, and associated equipment. About $470,000 of Vehicles and Equipment capital cost can be allocated to new development to maintain the existing level of service.

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Economic & Planning Systems, Inc. 18 Facility Needs and Capital Cost Estimates Table 8 Calistoga Police Department Infrastructure Cost Estimates Fire
The Fire Department currently makes annual investments in a broad range of vehicles and equipment and has also identified the need to expand one fire station. As new development occurs, additional investment will be required to maintain the existing level of service for vehicles and equipment. In addition, the expanded Fire Station will help serve new development, meaning a portion of its cost can be allocated to new development/ the fee program.

The required investment in fire-related equipment, vehicles, and facilities improvements is shown in Table 9 with more detail provided in Appendix Table B-2. As shown, the Fire Department anticipates a total needed investment of about $18.5 million over 20 years. As described below, fire vehicles and equipment costs allocated to new development are estimated based on the existing level of service. The service standard associated with the Fire Station expansion is shown in Table 6 and a total of about $1.3 million, 20 percent, of the total fire expansion cost is allocated to new development. • Vehicles and Equipment. The Fire Department provides a number of vehicles and specialized equipment to its firefighters, including protective gear and firearms, including boots and helmets. In addition, the Department uses Item Cost / Capita1
Costs Due to
Growth Total Costs
a b = a * 1,701 c = a * 8,324
Safety Gear /
Equipment $50.33 $85,624 $418,954
Communications $199.18 $338,861 $1,658,023
Vehicles / Equipment $275.73 $469,098 $2,295,265
Total $525 $893,583 $4,372,241
(1) See Appendix Table B-1 for a detailed list of Police Department Costs and the calculation of the annual cost per capita to outfit the police department as necessary to meet the City's service needs.

Sources: City of Calistoga; Economic & Planning Systems, Inc.

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Economic & Planning Systems, Inc. 19 Facility Needs and Capital Cost Estimates specialized equipment like pumps, blowers, and exhaust fans for emergency incidents. Together annual expenditures per capita on these items sum to about $72.40. Applying this annual per capita cost to the expected new development in the City indicates that an additional total investment of $2.46 million will be required over a 20-year period to maintain existing service levels. • Fire Station Upgrade. The Fire Department plans to expand and upgrade its existing fire station facility. These improvements are envisioned to accommodate additional firefighters and add a bathroom facility and are estimated at $6.4 million. This firehouse expansion is assumed to service existing and new development resulting in an allocation of $1.3 million, or about 20 percent, of the total cost to new development.

Table 9 Calistoga Fire Department Infrastructure Cost Estimates Cultural/Recreation
The Cultural/Recreation impact fee covers the portion of costs associated with new parks and recreation facilities that will serve future growth in Calistoga. As discussed above, the cultural/ recreational capital improvement list includes a range of facilities, including major new investments in the Fairgrounds and a new community center, some specified park/ trail improvements, as well as some broader capital investments in City parks and pools.

Item
Cost /
Capita1
Costs Due to
Growth Total Costs
a b = a * 1,701 c = a * 8,324
Firehouse Expansion1 $1,308,009 $6,400,000
Vehicles2 $1,308.01 $2,225,340 $10,888,440
Equipment2 $139.34 $237,062 $1,159,931
Total $3,770,412 $18,448,371
(1) See Table 6 for cost details.
(2) Cost estimates provided by City of Calistoga Fire Department Staff. See Appendix Table B-2 for detailed list.

Sources: City of Calistoga; Economic & Planning Systems, Inc.

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Economic & Planning Systems, Inc. 20 Facility Needs and Capital Cost Estimates The inventory of the cultural/recreation improvements and the associated costs are shown in Table 10. City staff provided this capital improvement list based on the City’s 10-Year Capital Improvement Plan and expectations for the subsequent 10 years. Required public improvements as part of the Fairgrounds Redevelopment Project will occur beyond the next 20 years and will be higher than those shown. To be conservative, all of these improvements are assumed to service existing and new development resulting in an allocation of $4.9 million, or about 18 percent, of the total $26.5 million cost to new development.

Table 10 Cultural/Recreation Capital Improvements List
City Administration
The City Administration Facilities development impact fee will cover new development’s share of the costs associated with a new City Hall and Council Chambers, as well as improvements to existing buildings and upgrades to the information technology (IT) systems. This facility will serve citywide needs, with new growth comprising a portion of the overall demand.

Total Facility
Cost
Percent Allocated Cost Allocated
Item
to New
Development
to New
Development
New Facilities
Community Center1 $3,200,000 18% $588,304
Fairgrounds Redevelopment1 $18,405,000 18% $3,383,668
Citywide Improvements2
Heather Oaks Parkway $195,000 18% $35,850
Gateway Project (Vine Trail
bookend) $1,600,000 18% $294,152
Improvements to Pools $1,590,000 18% $292,314
Improvements to Parks $1,534,000 18% $282,018
Total $26,524,000 $4,876,305
(1) See Table 6 for calculation of service standard and costs. (2) Assumes next 10-year CIP costs will be about the same as current CIP.

Sources: City of Calistoga Capital Improvement Projects 2023-2033; City of Calistoga Item #6.1.

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Economic & Planning Systems, Inc. 21 Facility Needs and Capital Cost Estimates The planned capital improvements are shown in Table 11 along with associated cost estimates and cost allocations to new development. As discussed above, a total of $4.1 million out of the total $20 million City Hall and Council Chamber cost can be allocated to new development. A total of about $440,000 of the $2.2 million in additional building improvement/ IT equipment can be allocated to new development in the City.

Table 11 Administrative Facilities and Cost Required to Maintain Existing Service Level Item
Total Facility
Costs
Percent
Allocated to
New
Development
Costs
Allocated to
New
Development
New City Hall and Council
Chambers1 $20,000,000 20% $4,087,528
Improvements to Buildings1 $2,160,000 20% $441,453
Total $22,160,000 $4,528,981
(1) See Table 6 for facility details
Sources: City of Calistoga; Economic & Planning Systems, Inc.

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Economic & Planning Systems, Inc. 22 Nexus Findings and Impact Fee Summary

4. Nexus Findings and Impact Fee
Summary
This chapter provides the required findings for the update of the City of Calistoga’s non-transportation development impact fees, as required under Government Code Section 66000 (also referred to as AB1600/the Mitigation Fee Act). Specifically, it demonstrates the "nexus" between new development in Calistoga and the capital facilities needed to serve it. Following and consistent with the nexus findings and the information provided in Chapters 2 and 3, the calculations of the maximum, justifiable fees for police, fire, cultural/ recreation, and city administrative fee categories are provided.

Nexus Findings
The development impact fees to be collected for all new development are calculated based on the proportionate share of the total facility demand that the land uses included in the DIF are anticipated to represent at build-out of the General Plan. With this context, the following findings are made regarding the Fee Program.

Purpose and Use of Fees
Police
The updated police fee will help ensure the maintenance of existing per capita levels of investment in police facilities as new development occurs in the City.

Specifically, the fees will be used to pay for incremental investments in patrol vehicles, protective equipment, and communications technology utilized by the Police Department.

Fire
The updated fire fee will help ensure adequate maintenance of existing per capita levels of investment in fire vehicles and equipment, while also funding a portion of the proposed expansion of one of the City’s fire stations. Specifically, the fees will be used to pay for incremental investments in vehicles and equipment utilized by the Fire Department and a share of the approximately 4,000-square foot expansion/ upgrade of one of the existing Fire Stations. Fee revenue will be used to replace capital equipment, such as acquisition of new fire engines and other vehicles after a period of use.

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Economic & Planning Systems, Inc. 23 Nexus Findings and Impact Fee Summary Culture / Recreational
The updated cultural/ recreational fee will fund a portion of the new cultural/ recreational facility improvements identified by the City. Specifically, the fees will be used to help fund the redevelopment of the Fairgrounds, a new community center, and a range of improvements in existing parks, pools, and trails.

City Administration
The updated City Administration fee will fund a portion of the planned new investments in City administrative facilities over the next 20 years. Specifically, the fees will help fund a new City Hall/ Council Chambers as well as other improvements to City administration buildings. Fee revenue will be used to help fund construction of a new City Hall and Community Center.

Reasonable Relationship between Use of Fees and Type of Development
New development in the City of Calistoga will generate the need for additional investment in capital facilities, vehicles, and equipment to either maintain the existing levels of service and/or to contribute to City plans for enhanced service levels. New residential, lodging, and non-residential development will result in new demands for capital facilities from new residents, visitors, and workers. The fees will be used to invest in police, fire, cultural/ recreational, City administration facilities, vehicles, and equipment specifically to meet the facilities demands of these types of new development.

Reasonable Relationship between Need for Facility and Type of Development
The specific facilities identified in this study are designed to accommodate the needs of new development, including the new residents, visitors, and workers associated with the different types of development. The City’s DIF Capital Improvement Program (see Appendix A) provides the list of facilities required to help support the forecasted development in the City over the next 20 years. This includes the incremental provision of facilities to maintain existing levels of service (e.g. police and fire vehicles) as well as support for new facilities that will provides services to both existing and new development.

Relationship between Fee Amount and Cost Facilities
Attributed to Development
The updated fee levels calculated in this Report are based on a careful calculation of the fair share cost allocation to new citywide development. Appropriate cost allocations for each facility type are developed based on the nature of the facility and whether it will simply maintain an existing service level (in which case the full incremental cost can be borne by the new development) or increases the Item #6.1.

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Economic & Planning Systems, Inc. 24 Nexus Findings and Impact Fee Summary Citywide service level in which case only a portion of the facility cost can be allocated to new development and funded by the fees. In the latter cases, approximately 20 percent of facility costs are allocated to future development (and the fee program) corresponding to the scale of expected new development relative to existing development.

Maximum Impact Fees
This section provides estimates of maximum development impact fees by land use for the non-transportation fees, including police, fire, cultural/ recreational, and City administrative facility fees. Total citywide capital facilities costs for the planned non-transportation facilities in the City of Calistoga are estimated at about $71.5 million over the next 20 years, as shown in Table 12. This includes a $18.4 million investment in fire capital, a $4.4 million investment in replacing police capital items, a $26.5 million investment in cultural and recreation facilities, and a $22.2 million investment in City administration facilities.

New development’s share of the cost, based on the preceding analysis and nexus principles, is $14.1 million, or 20 percent of the total cost. About $57.4 million in costs are associated with demand from existing development and, therefore, cannot be funded through development impact fees. The City will need to find alternative funding mechanisms to fund this portion of the costs.

Table 12 Summary of 20-Yr Capital Facilities Costs Allocation Between New and Existing Development
Maximum development impact fees are calculated by allocating the costs attributable to new growth among residential and commercial uses, as shown in Table 13. This allocation is based on future service population growth for fire, police, and City administration facilities and modified service population for cultural/recreation. These cost allocations are applied to overall costs to determine the proportion of the cost allocation that can be appropriately allocated to different land uses, as shown in Table 14. As shown of the $14.1 Cost Allocated to Cost Allocated to Percent of
Item Total Cost Existing Development New Development Total Fire $18,448,371 $14,677,959 $3,770,412 27%
Police $4,372,241 $3,478,658 $893,583 6%
Cultural / Recreation $26,524,000 $21,647,695 $4,876,305 35% City Administration $22,160,000 $17,631,019 $4,528,981 32% Total $71,504,612 $57,435,331 $14,069,281 100%
Sources: City of Calistoga; Economic & Planning Systems, Inc.

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Economic & Planning Systems, Inc. 25 Nexus Findings and Impact Fee Summary million in future facility costs that can be allocated to new development, about

68.3 percent of these costs are allocated to new residential development while

31.7 percent is allocated to nonresidential development, primarily tourist accommodation and commercial development.

Table 13 New Development Maximum Cost Allocation by Land Use Table 14 New Development Maximum Cost by Land Use
Table 15 shows the resulting maximum non-transportation development impact fees by land use. This includes about $22,700 per residential unit ($9.09 per residential square foot), $8,830 per room for tourist accommodation uses, $3.52 per square foot for industrial uses, $8.18 per square foot for retail uses, $11.72 per square foot for office uses. While the development projections for the City of Calistoga do not distinguish between different types of commercial use, the fees for office and retail were distinguished as requested by the City based on employment density. A more detailed calculation can be found in Appendix C.

Item Hotels/Motels Industrial Commercial
Fire 62% 21% 0.9% 16%
Police 62% 21% 0.9% 16%
Cultural / Recreation 83% 8% 0.5% 9%
City Administration 62% 21% 0.9% 16%
Source: Economic & Planning Systems, Inc.

Residential Non-Residential Development
Development
Cost Allocated to
Item New Development Hotels/Motels Winery Commercial
Fire $3,770,412 $2,328,789 $802,256 $33,243 $606,124
Police $893,583 $551,920 $190,134 $7,878 $143,651
Cultural / Recreation1 $4,528,981 $3,762,813 $354,442 $21,481 $390,244 City Administration $4,876,305 $3,011,842 $1,037,564 $42,993 $783,906 Total $14,069,281 $9,655,364 $2,384,396 $105,595 $1,923,925 Distribution 100% 68.6% 16.9% 0.8% 13.7%

Source: Economic & Planning Systems, Inc.

Non-Residential Development
(1) Allocated based on the modified service population demand associated with residential uses having a factor of 1, while commercial uses having a factor of 0.2 and tourist accommodation of 0.1.

Residential
Development
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Calistoga Development Impact Fee Nexus Study
Draft Report 12/20/24
Economic & Planning Systems, Inc. 26 Nexus Findings and Impact Fee Summary Table 15 Maximum Fee by Land Use
This analysis calculates the initial residential impact fees on a per unit basis.

However, AB 602 requests that cities adopt development impact fees on a per square foot basis rather than a per unit basis, unless the City provides an explanation as to why that would not be appropriate. Table 16 converts the per unit residential development impact fee into a per square foot fee using the expected weighted average of future residential development.

Table 16 Per Square Foot Fee Conversion
Item per unit per sq.ft. Hotels/Motels Industrial Retail Office per room per sq.ft. per sq.ft. per sq.ft.

Residential Development Non-Residential Development
Item Residential Fee
Total Fee Amount $22,719
Average Square Feet per Unit1 2,500
Fee per Sq. Ft. $9.09
(1) Per City data, represents an estimated weighted
average of residential development over the past ten years.

Item #6.1.

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Calistoga Development Impact Fee Nexus Study
Draft Report 12/20/24
Economic & Planning Systems, Inc. 27 Transportation Impact Fee Update

5. Transportation Impact Fee Update
The Transportation Impact Fee (TIF) will cover new development’s share of the costs associated with providing infrastructure improvements necessary to accommodate the increase in vehicle, bicycle, and pedestrian trips associated with the additional development. The subsections below describe the nexus findings and the technical analysis for the proposed TIF.

Nexus Findings
Purpose
As new growth occurs, the TIF will help maintain acceptable traffic operation and safety in Calistoga for motorists and users of active transportation modes consistent with City policies, and help fund the transportation improvements that have been identified in the City’s Capital Improvement Program, the prior impact fee study, the Calistoga Active Transportation Plan, and the Napa County Pedestrian Plan as being necessary to accommodate future development.

Use of Fee
In combination with funds derived from numerous other sources, fee revenues will be used to fund infrastructure improvements needed to maintain acceptable traffic operation and safety, and provide adequate access for users of active modes of transportation.

Relationship
New development in Calistoga will directly contribute to the deterioration of traffic operation and safety and increased need for facilities for active modes. Fee revenues will be used to fund a portion of the construction of these improvements.

Need
Each new development project will incrementally add to the need for the identified transportation improvements by generating new vehicle, pedestrian, and bicycle trips in the City.

Proportionality
The cost of infrastructure improvements is allocated proportionately to new development based on their relative impact in terms of adding trips or other demand for the facilities. The cost share associated with new development is based on a service population growth factor that assigns a majority of the total cost to existing residents through other funding sources, many of which receive their funding from taxes paid by local residents.

Item #6.1.

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Calistoga Development Impact Fee Nexus Study
Draft Report 12/20/24
Economic & Planning Systems, Inc. 28 Transportation Impact Fee Update Future Trip Generation Estimates
The additional traffic that could be added to the circulation system over the next 20 years due to the potential development summarized in Table 4 was estimated.

Based on the projected uses and level of development, the likely number of trips was determined both for the weekday p.m. peak hour and on a daily basis using standard rates from Trip Generation Manual, 11th Edition, Institute of Transportation Engineers (ITE), 2021.

Rates for “Single-Family Detached Housing” (LU #210) were applied to the singlefamily residential land use, rates for “Multi-Family Housing (Low-Rise) Not Close to Rail Transit” (LU #220) were applied to the multi-family residential land use, rates for “Hotel” (LU #310) were applied to the hotel and motel land use, and rates for “General Light Industrial” (LU #110) were applied to the industrial land use, which includes wineries. There are no standard ITE trip generation rates available for a generic commercial land use as rates are typically applied to the specific type of commercial land use being evaluated such as office, retail, restaurant, etc. Given that the development projections prepared by the City did not break down the commercial floor area into specific uses, rates for “Shopping Center (>150,000 square feet)” (LU #820) were applied to estimate the trip generation potential for all the commercial land uses. While this rate would generally not be applicable to any potential single commercial development given that they would likely be smaller than 150,000 square feet due to the nature of retail in the City of Calistoga, it was determined that this land use would be appropriate for considering the total commercial development in the City as a whole, and it would be a reasonable proxy for the anticipated mix of office, retail, and restaurant uses that would fall under the commercial category.

As shown in Table 17, the potential future development within the next 20 years is expected to generate a total of 14,150 trips on a daily basis, including 1,241 p.m. peak hour trips. It is noted that the trips indicated in the table do not all represent new trips in the City of Calistoga. Many will be the result of residents finding jobs closer to home or shopping local rather than having to travel outside the area for the same services; however, for the purposes of allocating impact fees, and because such trips result in changes to travel patterns and can affect different intersections and roadways than existing trips, all of the trips are identified to provide a basis for assigning costs.

Item #6.1.

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Calistoga Development Impact Fee Nexus Study
Draft Report 12/20/24
Economic & Planning Systems, Inc. 29 Transportation Impact Fee Update Table 17 Trip Generation Summary
Land Use Units Daily PM Peak Hour
Rate Trips Rate Trips In Out
Single-Family
Residential 106 du 9.43 1,000 0.94 100 63 37
Multi-Family
Residential 319 du 6.74 2,150 0.51 163 102 61
Hotel/Motel 270 rms 7.99 2,157 0.59 159 81 78
Commercial 235 ksf 37.01 8,697 3.40 799 384 415
General Light
Industrial 30 ksf 4.87 146 0.65 20 3 17
Total Trips 14,150 1,241 633 608
Notes: du = dwelling unit; ksf = 1,000 square feet; rms = rooms Future Transportation Improvements
Future transportation needs in the City of Calistoga are identified in several sources, including the City’s 10-Year Capital Improvement Program (CIP), the Napa County Pedestrian Plan, 2016, the Calistoga Active Transportation Plan (ATP), 2014, and the existing TIF program. Following are descriptions of the identified improvement projects that are needed to accommodate future travel demands.

Projects identified in the current TIF program that have not yet been completed were carried forward and are included in the updated TIF.

A. Grant Street Multi-Use Pathway
The project includes construction of an off-street multi-use pathway on the south side of Grant Street between City Limits and Garnett Creek Court. The pathway would be shared use for both bicyclists and pedestrians.

B. South Oak Street Bicycle/Pedestrian Bridge
The project includes construction of a bridge over the Napa River for the exclusive use of bicyclists and pedestrians connecting the neighborhoods on the south side of the river to the recreational facilities on the north side, including Logvy Community Park, the Boys and Girls Club, the Calistoga Community Pool, and the Fairgrounds.

Item #6.1.

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Calistoga Development Impact Fee Nexus Study
Draft Report 12/20/24
Economic & Planning Systems, Inc. 30 Transportation Impact Fee Update C. Lincoln Avenue/Brannan Street Pedestrian Warning System To improve pedestrian safety at this intersection, a warning system consisting of pedestrian-activated flashing beacons will be installed for the crosswalk across Lincoln Avenue.

D. Garnett Creek Bridge Improvements
This project would replace the existing structurally deficient bridge on Grant Street over Garnett Creek with a new wider bridge that would include facilities for bicyclists and pedestrians.

E. Lincoln Avenue/Foothill Boulevard Traffic Signal
This project includes signalization as well as widening to provide turn lanes.

Protected left-turn phasing would be provided on Foothill Boulevard and split phasing on Lincoln Avenue. Additional lanes that would be needed include leftturn lanes on eastbound and westbound Foothill Boulevard and southbound Lincoln Avenue and a right-turn lane on eastbound Foothill Boulevard.

F. Money Road Extension to Mora Avenue
This project will extend Money Road along its existing alignment to Mora Avenue where it would intersect near Money Lane. Full connectivity would be provided for motorists, cyclists, and pedestrians.

G. Foothill Boulevard/Berry Street Turn Lanes
This project will provide a dedicated left-turn pocket and acceleration lane on southbound Foothill Boulevard to accommodate drivers turning into and out of Berry Street. Widening to both sides is expected, resulting in 6,900 square feet of new pavement. Retaining walls will most likely be needed on both sides of SR 128.

H. Traffic Signal at Lincoln Avenue/Silverado Trail or Lincoln Avenue/Fair Way
While signalization of both intersections is included in the current TIF, changes to traffic volumes and patterns that have occurred over the last decade have eased future projections and it is expected that only one of these intersections would need to be signalized within the next 20 years. Therefore, funding for only a single traffic signal is included in the TIF and could be either of the two identified.

At Lincoln Avenue/Silverado Trail, the project includes conversion of the existing all-way stop-controlled intersection to signalized control. Protected left-turn phasing is assumed for the Lincoln Avenue approaches and split phasing for the Silverado Trail-Lake Street approaches. Additional lanes are needed as part of the project to provide two lanes on the southbound Lake County Highway (SR 29) approach (left-turn and through/right-turn lanes), three lanes on the northbound Item #6.1.

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Calistoga Development Impact Fee Nexus Study
Draft Report 12/20/24
Economic & Planning Systems, Inc. 31 Transportation Impact Fee Update Lincoln Avenue approach (left-turn, through and right-turn lanes), and three lanes on westbound Silverado Trail (left-turn, through and right-turn lanes).

At Lincoln Avenue/Fair Way, the project would provide signalization, including permissive left-turn phasing on both Lincoln Avenue and Fair Way. Minor widening is expected to be needed to align the Fair Way approaches.

I. Grant Street Safe Routes to School and Crossing
Improvements
To improve walking and biking access to local schools, the project includes traffic calming improvements and installation of a sidewalk on Grant Street between Lake Street and Stevenson Street and crossing improvements at the intersections with Arch Way and Stevenson Street.

J. Off-Street Pathways – Various Locations
The City’s ATP identifies numerous pathways that would serve both pedestrians and cyclists, including along Fair Way Extension, Grant Street, Lincoln Avenue, and the Napa River Trail.

K. Sidewalks – Various Locations
The City’s ATP identifies numerous locations where there are gaps in the existing sidewalk system, and need for new sidewalks as well as curb ramps.

L. Bicycle Facilities – Various Locations
The City’s ATP calls for the installation of several Class II bike lanes and Class III bike routes throughout the City. Additionally, Class IV bike facilities are being recommended on several key streets to improve connectivity and safe routes to school.

Improvement Project Costs
Probable costs for constructing each of the improvement projects identified above were compiled from the various sources and factored up to 2024 dollars using the California Construction Cost Index (CCCI). It is noted that recent construction cost trends have resulted in CCCI factors that translate to costs approximately 70 percent higher on average in 2024 compared to 2014, when the prior impact fee study and ATP were completed.

The anticipated construction costs for each project are shown in Table 18.

Altogether, a total of approximately $33.2 million is needed to fund the transportation improvements. The estimates provided are planning-level cost estimates only, and while the cost of any individual project may actually be more or less than the amount estimated, the total amount needed to construct all of these projects is expected to be at least as much as, if not more than, the total amount to be collected through the TIF.

Item #6.1.

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Calistoga Development Impact Fee Nexus Study
Draft Report 12/20/24
Economic & Planning Systems, Inc. 32 Transportation Impact Fee Update Table 18 Transportation Improvement Project Costs
Project Cost
A. Grant Street Multi-Use Pathway $850,000
B. South Oak Street Bicycle/Pedestrian Bridge $2,800,000 C. Lincoln Avenue/Brannan Street Pedestrian Warning System $750,000 D. Garnett Creek Bridge Improvements $7,003,000
E. Lincoln Avenue/Foothill Boulevard Traffic Signal $2,000,000 F. Money Road Extension to Mora Avenue $4,000,000
G. Foothill Boulevard/Berry Street Turn Lanes $1,267,000 H. Traffic Signal at Lincoln Avenue/Silverado Trail or
Lincoln Avenue/Fair Way $1,604,000
I. Grant Street Safe Routes to School and Crossing
Improvements $1,004,000
J. Off-Street Pathways – Various Locations $2,964,000
K. Sidewalks – Various Locations $3,486,000
L. Bicycle Facilities – Various Locations $5,503,000
Total Estimated Cost $33,231,000
The total estimated cost of $33.2 million for all the transportation projects in the City is approximately $21.6 million more than the $11.6 million identified in the prior impact fee study. As noted previously, inflation of construction costs is a primary reason for the substantial increase along with the fact that several new transportation projects have been identified. Two high-cost projects that have been identified since the prior study are the Garnett Creek Bridge Improvements ($7 million) and Money Road Extension ($4 million).

Funding
In addition to the proposed TIF, other funding sources are expected to be available that would cover a portion of the cost of the projects identified, such as grants (Measure U/T, HBP, TDA-3, etc.) developer contributions, and contributions from other agencies such as Caltrans, who covered a portion of the cost to install the traffic signal at the intersection of Foothill Boulevard/Petrified Forest Road. The City has already secured partial funding through grant applications for several of the projects identified in the CIP, including the Grant Street Multi-use Pathway, South Oak Street Bicycle and Pedestrian Bridge, Lincoln Avenue/Brannan Street Pedestrian Warning System, and intends to apply for HBP grant funding for the Garnett Creek Bridge Improvements.

Item #6.1.

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Calistoga Development Impact Fee Nexus Study
Draft Report 12/20/24
Economic & Planning Systems, Inc. 33 Transportation Impact Fee Update Considering grant funds that have already been secured and projecting likely future grant funding based on available opportunities, it is estimated that approximately $14,346,000 of the $33,231,000 needed would be covered by outside funding sources leaving $18,885,000 remaining. Because the transportation improvements would benefit existing residents and employees in addition to new development, the portion of the remaining funds that could be included in the TIF was calculated using the proportion of service population growth expected over the next 20 years in comparison to the existing service population. The service population projections indicate that planned development would increase the existing service population by 20.44 percent; therefore, 20.44 percent of the remaining funds needed were assigned to the TIF and 79.56 percent would be attributable to existing development.

The service population factor was applied universally to all improvement projects, except for three projects that were specifically identified as being needed to accommodate future development in the prior impact fee study: Lincoln Avenue/Brannan Street Flashing Warning System, Foothill Boulevard/Berry Street Turn Lanes, and Signalization of Lincoln Avenue/Silverado Trail or Lincoln Avenue/Fair Way. The full cost of these improvements after accounting for outside funding was included in the TIF resulting in a total program cost of $6,562,000. The derivation of costs for the TIF program is summarized in Table 19 and a spreadsheet detailing the cost and percentage allocation for each project is provided in Appendix A-2.

Table 19 Transportation Program Cost
Funding Category Cost
Total Improvement Project Costs $33,231,000
Outside Funding Sources -$14,346,000
Costs Allocated to Existing Trips -$12,323,000
Transportation Impact Fee $6,562,000
Transportation Impact Fee Calculations
Based on the net cost estimated in Table 19, $6,562,000 is needed to fund the improvements necessary to accommodate development projected during the next 20 years. As detailed previously, anticipated future development is expected to generate a total of 1,241 trips during the critical p.m. peak hour, the time period when new development would have the greatest impact on transportation needs.

An even division of the costs among trips results in an average cost per trip of about $5,289.

Item #6.1.

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Calistoga Development Impact Fee Nexus Study
Draft Report 12/20/24
Economic & Planning Systems, Inc. 34 Transportation Impact Fee Update However, many of the trips associated with new commercial development, including retail and restaurant uses as well as hotels and wineries, are linked to existing trips. Such trips are expected to be pass-by trips where a patron stops at the new development while passing by en route from a primary origin to a primary destination or linked to another trip, such as a new hotel guest visiting a new restaurant or a new employee visiting a new retail establishment. To account for these linked and pass-by trips, adjustments were applied to the commercial, hotel, and industrial categories to reduce the trip rates for these types of land uses.

Conversely, residential development generates not only new vehicle trips but also an increased need for infrastructure for active transportation modes. To reflect this higher demand, an adjustment was applied to increase the trip rate for residential uses.

After adjusting the trip rates to reflect the unique travel characteristics of each land use, the adjusted fee per p.m. peak hour trip equates to about $9,365. To comply with recent legislation, the residential fee was further refined to a single category using a weighted average trip rate for single-family residential and multifamily uses, and then provided on a per square foot basis using American Community Survey (ACS) data and information received from the City of Calistoga Planning and Building Department for home sizes in the City. The data indicates that single-family homes average 2,904 square feet while multi-family dwellings average 850 square feet resulting in a weighted average home size of approximately 2,500 square feet.

Resulting transportation development impact fees are shown in Table 20. The transportation impact fees based on the analysis detailed above are $4.29 per square foot for residential uses, $4.78 per square foot for commercial uses, $2,762.75 per room for hotel and motel uses, and $4.57 per square foot for industrial uses, which includes wineries.

Item #6.1.

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Calistoga Development Impact Fee Nexus Study
Draft Report 12/20/24
Economic & Planning Systems, Inc. 35 Transportation Impact Fee Update Table 20 Transportation Impact Fee Summary
Land Use Units
Weekday PM Peak Hour
Trip
Rate
Projected
Trips
Discount/
Surcharge
Adjusted
Trips
Fee per Land
Use
Fee per Unit
Residential 425 du 0.62 263 1.85 487 $4,556,664 $4.29 /sf* Commercial 235 ksf 3.40 799 0.15 120 $1,122,426 $4.78 /sf Hotel/Motel 270 rms 0.59 159 0.50 80 $745,943 $2,762.75 /rm Industrial 30 ksf 0.65 20 0.75 15 $136,967 $4.57 /sf
Totals 1,241 701 $6,562,000
Notes: du = dwelling unit; ksf = 1,000 square feet; sf = square feet; rms = rooms; * based on weighted average residential dwelling size of 2,500 square feet; industrial land use category includes wineries
Compared to the 2014 fee study, the proposed residential fee is approximately 16 percent higher for the average 2,500 square-foot dwelling, the commercial fee is five percent lower per square foot, and the hotel fee is 24 percent higher per room. For comparison purposes, the industrial fee is 38 percent lower for a 10,000 square foot winery, which was estimated to be the average size winery in the City. Although construction costs have increased sharply over the last decade and nearly twice as many funds are included in the updated TIF program ($6,562,000 compared to $3,422,000), the resulting fees represent moderate increases, and even decreases for two land use categories on a per unit basis. A comparison of the existing and updated fees is provided in Table 21.

Table 21 Transportation Impact Fee Comparison
Land
Use
Existing
Fees
Updated
Fees
Percent
Change
Residential $3.71 /sf* $4.29 /sf +16%
Commercial $5.03 /sf $4.78 /sf -5%
Hotel/Motel $2,226.00 /rm $2,762.75 /rm +24%
Industrial $7.42 /sf** $4.57 /sf -38%
Notes: sf = square feet; rm = room; * existing fee is per residential unit; ** existing fee is per winery
A major reason why the new fees have not increased at the same rate as construction costs is because the development projections over the next 20 years are substantially higher than prior projections. Although costs have increased, the costs are spread over more units so the fees for a single unit of development are only moderately different. For example, 425 units of residential development (both single- and multi-family) are projected over the next 20 years compared to Item #6.1.

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Calistoga Development Impact Fee Nexus Study
Draft Report 12/20/24
Economic & Planning Systems, Inc. 36 Transportation Impact Fee Update only 197 units in the prior study. Additionally, hotel projections have increased from 222 rooms to 270 rooms.

The primary reason for the large decrease in the industrial fee for a 10,000 square foot development is the migration from a winery-specific category with a set fee per winery to a general industrial category with a fee per square foot, which will allow the City to collect fees from industrial uses other than just wineries and to collect higher fees on larger developments. Previously, a 5,000 square foot winery would pay the same transportation fee as a 20,000 square feet winery as the fee was per winery, regardless of size, which would not be the case in the updated fee structure. Under the proposed TIF program, a winery with four times as much floor area would have an impact fee four times higher. The same concept would apply to the residential category wherein a single-family residence with 3,200 square feet would have a proportional impact fee four times higher than a multifamily apartment with 800 square feet.

Item #6.1.

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Table 1
Maximum Fee by Land Use*
Calistoga Development Impact Fee Update; EPS #211041
Item per unit per sq.ft. Hotels/Motels Industrial Retail Office per room per sq.ft. per sq.ft. per sq.ft.

Item #6.1.

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Economic & Planning Systems, Inc.

The Economics of Land Use
1330 Broadway, Suite 450 n Oakland, CA 94612
510.841.9190 n www.epsys.com

CALISTOGA

DEVELOPMENT

IMPACT FEE UPDATE
CITY COUNCIL Meeting
January 21, 2025
Item #6.1.

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Economic & Planning Systems EPS PPT Presentation | 1
§ Transportation Fee Study
§ Updated Fees
§ Next Steps
§ Questions/ Discussion

PRESENTATION TOPICS
Item #6.1.

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Economic & Planning Systems EPS PPT Presentation | 2

CITY DEVELOPMENT POTENTIAL - BUILDOUT
Land Use New Development
Non-Residential
Hotels/Motels 270 rooms
Industrial 30,000 sq. ft.

Commercial 235,000 sq. ft.

Residential 425 Units
About 1,050 new residents, 850 new employees,
and 450 new visitors at City Buildout
Item #6.1.

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Economic & Planning Systems EPS PPT Presentation | 3

TRIP PROJECTIONS FOR NEW DEVELOPMENT
Source: Institute of Transportation Engineers, Trip Generation Manual, 11th Edition Trip Generation Summary
Land Use Units Daily PM Peak Hour
Rate Trips Rate Trips In Out
Single-Family Residential 106 du 9.43 1,000 0.94 100 63 37 Multi-Family Residential 319 du 6.74 2,150 0.51 163 102 61 Hotel/Motel 270 rms 7.99 2,157 0.59 159 81 78
Commercial 235 ksf 37.01 8,697 3.40 799 384 415
General Light Industrial 30 ksf 4.87 146 0.65 20 3 17
Total Trips 14,150 1,241 633 608
Note: du = dwelling unit; ksf = 1,000 square feet; rms = rooms Item #6.1.

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Economic & Planning Systems EPS PPT Presentation | 4
20-YEAR TRANSPORTATION PROJECT COSTS
Total Cost of $33.2 million; $6.6 million in Fee Program Project Sources: 10-Year CIP, 2014 Impact Fee Study, 2016 Napa County Pedestrian Plan, 2014 ATP Item #6.1.

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Economic & Planning Systems EPS PPT Presentation | 5

MAXIMUM POTENTIAL TRANSPORTATION IMPACT FEES
Transportation Impact Fee Summary
Land Use Weekday PM Peak Hour
Projected
Trips
Discount/
Surcharge
Adjusted
Trips
Fee per
Land Use
Fee per Unit
Residential 263 1.85 487 $4,556,664 $4.29 /sf*
Commercial 799 0.15 120 $1,122,426 $4.78 /sf
Hotel/Motel 159 0.50 80 $745,943 $2,762.75 /rm
Industrial 20 0.75 15 $136,967 $4.57 /sf
Totals 1,241 701 $6,562,000
Notes: sf = square foot; rm = room; *based on weighted average residential dwelling size of 2,500 square feet; industrial land use category includes wineries
About $9,365 per p.m. peak hour trip
Item #6.1.

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Economic & Planning Systems EPS PPT Presentation | 6

TRANSPORTATION IMPACT FEES COMPARISON
Although costs have increased, development projections are higher.

Existing Vs. Updated Fees
Land Use
Existing
Fees
Maximum
Updated Fees
Percent
Change
Residential $3.71 /sf* $4.29 /sf +16%
Commercial $5.03 /sf $4.78 /sf -5%
Hotel/Motel $2,226.00 /rm $2,762.75 /rm +24%
Industrial $7.42 /sf** $4.57 /sf -38%
Notes: sf = square feet; rm = room; * existing fee is $9,276 per single family dwelling; ** existing fee is $74,207 per winery § Residential fees are now based on square feet
§ Prior winery category now generic industrial
Item #6.1.

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Calistoga City CouncilFebruary 4, 2025

Calistoga City Council
February 4, 2025