Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: 2026 VERONDA-FALLETTI RANCH WORKPLANS AND NEW
LICENSE AGREEMENT WITH AGRI-CULTURE AND
EXTENSION OF THE SANDY LOAM LICENSE
Date: December 9, 2025
Written by: Damien O'Bid, City Manager
Recommendation
It is recommended that the City Council adopt a resolution: 1. Approving the 2026 work plan for the Veronda Falletti Ranch (Ranch), 2. Authorizing the City Manager to execute a 3-year license agreement with Agri-CULTURE to operate the livestock, horticulture, compost and other related programs, substantially in the form attached and subject to final approval of the City Attorney, 3.
Authorizing the City Manager to amend the license agreement with Sandy Loam to synchronize the term dates, and other minor edits and 4. Authoring the requested budget amendment.
Background
The Veronda Falletti Ranch (Ranch) is a City owned ranch that is intended to serve as a venue for a wide variety of agricultural-based education and events.
The City received notice that Farmster was winding down operations, effective July 31, 2024. Beginning in late July 2024, Fern Homestead (dba Phoenix Farm Concepts) assumed operations from Farmster as an interim operator for 6 months and Sandy Loam continued as the second licensed operator. Phoenix Farm Concepts managed the city-owned livestock, compost program, and horticulture program for all ages. Sandy Loam manages the Ranch common areas, conducts a variety of all-age community workshops and open farm events, as well as programs with a focus on youth education.
Following a public RFP process, the City selected Phoenix Farm Concepts to continue as the second licensee for a 3-year term. However, Phoenix Farm Concepts ultimately declined to continue as a licensee for 2025. A member of the Phoenix Farm Concepts team, Bryce Nahas, expressed interest in assuming the licensed operation. The City Council subsequently approved an interim license with Bryce Nahas for 12 months, ending in January 2026. During 2025, City staff believe that Bryce Nahas (dba Agri-CULTURE) has performed admirably and brought new ideas to the Ranch, including the initial pilot CSA food box program.
Analysis/Discussion
Sandy Loam and Agri-CULTURE work closely together and with the City to design and run community programming. For 2026, they have submitted a joint annual workplan, attached.
The workplan is tailored to focus on areas of community interest, integration between the licensees and City input on priorities to develop a mix of paid, low cost and free programming with a focus on fiscal sustainability.
Sandy Loam would continue to be the lead operator for overall property maintenance and management.
In addition to the workplan, the City will need to revise and extend the license agreement with Agri-Culture and approve a budget amendment to implement the workplan. Staff suggest a 3 year term and an amendment to the Sandy Loam license agreement so that they have the same term dates (1/1/2029). Sandy Loam’s license agreement currently expires in 2026.
Financial Considerations
The 2025 Agri-Culture work plan has a cost of $80,990, which is similar to the budget authorized for Farmster in 2024. The 2025 Sandy Loam work plan has a cost of $126,445, which is similar to the workplan cost in 2024. The total programming and maintenance costs for the Ranch in 2025 was slightly reduced to $207,435, compared to 2024, and is expected to finish the year on budget. Based on revenue in 2025 to date, offsetting revenue is expected to be approximately $40k (19% cost recovery), with a net total annual General Fund contract cost of approximately $167,000.
Cost control and revenue generation, while simultaneously ensuring accessibility of community programs, continues to be a significant focus at the Ranch in 2026. Regardless, all expenditures go towards the matching grant requirements. The proposed workplan for 2026 includes expenditures of $324k, an increase of approximately $116k over the 2025 workplan. However, the increase in expenditures is expected to be offset by $180k in revenue, for a net City expenditure of $143k (56% cost recovery), which is a $24k reduction in net annual operating costs for the City. With the long-term resources in place for 2026, the workplan projects continued program growth and higher revenue in 2027.
The increase in budgeted expenditures are intended to reach full operations and a future steady state of operations to maximize the community programming and cost recovery. The multi-year cost recovery goal is to achieve a net licensee operating cost of $100k to achieve stability and protect long-term access and programming for the community. Although not accounted for in the workplan, other potential revenue sources may include grants or jointly funded programs that are aligned with the mission of the Ranch.
The Ranch workplan years are based on calendar years, so they bridge City fiscal years and are budgeted across fiscal years accordingly. In the current fiscal year budget, the City has budgeted $205,000 in expenditures and $20,500 in revenue, based on the 2025 workplan projections. To approve the workplan, the City Council will also need to authorize a budget amendment to accommodate the higher expenditures and revenues that are anticipated.
Environmental Issues
Where it can be determined with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA review.
This general rule can be applied to activities which could be subject to the CEQA process, but which logic dictates should not be subject to CEQA review. Therefore, based on the information provided above, the proposed resolution is exempt from CEQA pursuant to Section 14.03.021 of the CEQA Guidelines in that there is no possibility that the activity may have a significant impact on the environment.