SUPPLEMENTAL REPORTS & COMMUNICATIONS
Office of the City Clerk
City Council of the City of Napa
Regular Meeting
May 3, 2022
FOR THE CITY COUNCIL OF THE CITY OF NAPA
AFTERNOON SESSION:
SUBMITTED PRIOR TO THE CITY COUNCIL MEETING
7. ADMINISTRATIVE REPORTS:
7.C. Utilities Department Spotlight
PowerPoint Presentation by City Staff.
7.D. Outdoor Commercial Uses & Parklet Program
PowerPoint Presentation by City Staff.
1) Email from James Rosen re ceived on April 20, 2022.
2) Email from Rebecca Lee re ceived on May 1, 2022.
3) Email from Craig Smith, Downt own Napa Association, received on May 3, 2022.
CITY OF NAPA: INDICATORS
CITY COUNCIL PRESENTATION
NAPA, CA MAY 2022
Robert Eyler, PhD
President, Economic Forensics and Analytics Inc.
Professor, Economics, Sonoma State University
[email protected]
1 City Council Meeting
5/3/2022
Supplemental - 4.A.
From: Robert Eyler, PhD
Real GDP (%) Unemployment Rate (%) Core PCE Inflation (%) Previous New Previous New Previous New
Quarterly
2022:Q1 3.9 1.8 4.3 3.9 2.5 4.3
2022:Q2 3.0 4.2 4.1 3.7 2.4 3.1
2022:Q3 3.1 3.0 3.9 3.6 2.3 2.5
2022:Q4 3.1 2.9 3.9 3.5 2.1 2.3
2023:Q1 N/A 2.8 N/A 3.4 N/A 2.3
Annual data (projections based on annual‐average levels):
2022 3.9 3.7 4.1 3.7 2.3 3.1
2023 2.6 2.7 3.6 3.4 2.1 2.2
2024 2.3 2.3 3.7 3.6 N/A 2.2
2025 N/A 2.3 N/A 3.7 N/A N.A.
Federal Reserve Philadelphia
Forecast, Survey of Professional Forecasters
2 Source: Federal Reserve Philadelphia Branch
These data are from February 2022
Inflation: The Latest and Thinking Forward
Shaded Area = Recession, 2007 to 2025, CPI
Inflation stable when demand is
rising and supply is rising in
tandem
• Changes in interest rates from
here a question
• Eastern Europe has made this
supply‐side recovery more
complex
• Affects low‐wage workers more
each month this continues
3 Sources: Federal Reserve, Richmond, Pink‐Shaded Area = Forecast to 2025
Employment Recovery Comparison, California, Great Recession and COVID-19 Recession, Months from Peak Employment,
Index Nov 2007 and Jan 2020 = 100, to February 2022
4 Source: California EDD and EFA
These data show are the
same idea as the last slide,
but for California.
The Great Recession in
California took 72 months
to recover the lost volume
of workers.
As of March 2022, CA back
to 98.5% of Jan 2020 level
of employed residents.
Recovery is movement of
black line back to red
dotted line.
98.5 60
65 70
75 80
85 90
95 100
105
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 Great Recession COVID‐19
Tracking Labor Market Recovery: City of Napa Residents
Great Recession and in COVID-19 Recession to February 2022, Index Nov 2007 and Jan 2020 = 100
5 Source: California EDD and EFA
These data show the evolution of the
Great Recession versus COVID‐19
jobs recovery from the peak month
of pre‐recession jobs levels.
The COVID‐19 recovery for city
residents has gained more
momentum since Dec 2020 and
especially March 2021. As of
February 2022, the City of Napa
residents that were working at pre‐
pandemic levels in the aggregate
again.
Recovery is movement of black line
back to red dotted line.
We need to watch for how the jobs
Napa residents work have shifted
from some sectors to others.
99.5 70.0
75.0 80.0
85.0 90.0
95.0 100.0
105.0
110.0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Index (Jan 2020 = 100)
Months from Jan 2020
Major LF Data Comparisons, March 2022 Compared to Jan
2020, City of Napa, Napa County Residents and CA
6 Category
Change
City of
Napa
%
Change/
U Rate
Change
Napa
County
%
Change/
U Rate
Change
California
%
Change/
U Rate
Civilian Labor
Force ‐400 ‐0.9% ‐800 ‐1.1% ‐414,100 ‐2.1%
Civilian
Employment
‐
‐200 ‐0.5% ‐400 ‐0.6% ‐547,200 ‐2.9%
Unemployment
Rate 3.6% 3.4% 4.9%
Source: California EDD and EFA
The City of Napa’s labor market
continues to improve, with the
City’s residents now back to
the same labor‐force level and
beyond as pre‐pandemic.
We are comparing to Jan 2020
in terms of data about
“change”.
California’s unemployment rate
remains among the nation’s
highest for the 50 states.
Overnight Stay Evolution: February 2020 and February 2022, Percent of Available Rooms (Occ Rate) and Revenue per Available Room (RevPAR), Napa and Selected counties
7 Source: Smith Travel Research and EFA
Napa County/City of Napa
has continued to recover
demand and business
revenue from overnight stays
Notice San Francisco is still
relatively low versus
February 2020.
These rates are TOT drivers;
the higher the occupancy
rates, the more TOT ,
especially if hotel prices are
rising simultaneously.
More overnight stays
accelerate tourism spending
versus day visitors.
Occ Rate RevPAR
County
Feb
2022
Feb
2020
Feb
2022
Feb
2020
Napa County 55.6 64.5 $ 206.98 $ 173.56
Marin County 60.9 70.8 $ 88.01 $ 51.72
San Francisco 56.0 70.5 $ 102.29 $ 107.25
Sonoma County 42.3 76.6 $ 78.10 $ 35.88
Housing Price Forecast, February 2022 to February 2023, % Change, City of Napa, Selected Counties and California 8 Source: ZillowTM Research and EFA
The City of Napa’s housing
market drives Napa County;
the forecast in Oct 2021 to
Oct 2022 remains strong.
We should expect prices and
forecasts to continue
flattening in 2022.
While interest rates may
remain historically low, we
should expect the Federal
Reserve to increase rates by
0.25% – 0.50% in 2022 and
thus marginally reduce
demand for home
purchases.
16.7% 17.6%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
Work from Home: New Census Data
% of Working Residents, 2011 to 2020, 5-Year Averages
9 5.6% 5.5% 5.9%
7.3%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
2011 2015 2019 2020
Napa County Marin County United States California
Source: Census Bureau and EFA, March 2022
Napa County saw a
jump in the
proportion of
working residents
working from home
in 2020, but not as
much as Marin
County (which ranks
#1 in California
among the 58
counties for % of
working residents
working from home.
City of Napa: things to watch
• City of Napa, April 2022
• City of Napa continues to recover
• Local labor markets may be held up by lack of workers and rising gas prices • Jobs and Economic Recovery in City of Napa and Napa County • Napa County bucking trends on leisure and hospitality hiring (rising faster than state) • Construction/housing and labor force 2025 the next focus • Macroeconomic forecasts have been slightly reduced
• Inflation expectations remain high
• Eastern Europe may shift international travel in summer 2022 to regional to Napa 10 Thanks!
Questions?
[email protected]
@bobby7007
11 May 03, 2022Agenda Item 7B 1
City Council Presentation
2022 Water Supplies
City Council Meeting
5/3/2022
Supplemental - Item 7.B.
From: City Staff
• Lake Hennessey
• received 19 inches of rainfall
• 27 inches is annual average
• Lake Hennessey is at 84% capacity
as of April 18
• Storage 26,080 AF
• Milliken Reservoir is 100% capacity
as of April 18
• Storage 1,400 Af
• State Reservoirs are near 2014 &
2015 levels
• State Water Project allocation is 15%
2022 ‐ Historic Dry Year Locally &
Regionally
2 Action:
• 20% reduction from 2020 in May – October
• Irrigation season conservation will preserve 1,500
AF in Lake Hennessey
Target: Lake Hennessey will hold 60% (18,600 AF) in
November
2022 Drought Year
Water Plan: Supply and Use
3 Goal: Preserve water stored in Lake Hennessey
2022 DRY YEAR WATER PLAN
MODERATE WATER SHORTAGE REGULATIONS
IN EFFECT
Focus on irrigation restrictions for all water users:
1. Residential and Commercial Irrigation
2. Temporary Hydrant Meters and Bulk Water from
the City’s Corporation Yard
3. Interruptible Agricultural Irrigation Contracts
4 2022 DRY YEAR WATER PLAN
R2021‐074 MODERATE WATER SHORTAGE
REGULATIONS IN EFFECT
Residential and Commercial Irrigation Customers
- 90% residential / 10% commercial accounts
Limit outdoor spray irrigation to two times per week, customers . with:
• even number addresses irrigate on Monday and Thursday • odd number addresses irrigate on Tuesday and Friday
Exceptions:
• Drip and Micro spray
• hand watering with a container or hose with shutoff device • limited operation of irrigation systems for testing, maintenance or repairs
5 2022 DRY YEAR WATER PLAN
MODERATE WATER SHORTAGE REGULATIONS
IN EFFECT
Temporary Hydrant Meters and Bulk Water from City Corp Yd Prohibited Uses Outside City System:
• Irrigation
• Commercial
Allowed Uses
• Residential - limited to 6,000 gallons per parcel for interior domestic use in Napa County
subject to an agreement between the hauler and
City that defines the restrictions and limitations
• Construction - used solely on a parcel that is currently receiving City water or is authorized to be served by City water.
6 2021 DRY YEAR WATER PLAN
MODERATE WATER SHORTAGE REGULATIONS
IN EFFECT
Interruptible Agricultural Irrigation Contract
Customers
• Water not available in 2022
• Notification letters sent Feb 15th
7 2022 DRY YEAR WATER PLAN
MODERATE WATER SHORTAGE REGULATIONS
IN EFFECT
Remain in Effect
Irrigation restrictions:
• Do not irrigate landscaping between 10:00 a.m.
and 5:00 p.m.
• Avoid runoff onto sidewalks, roadways, & non-
irrigated areas
8 2022 DRY YEAR WATER PLAN
MODERATE WATER SHORTAGE REGULATIONS
IN EFFECT
No water waste:
• Decorative fountains or water features, must be
recirculating
• Hoses must be fitted with a shutoff nozzle
• Use a broom - no spraying of water to wash
driveways and sidewalks, except where necessary
to address an immediate health and safety need
9 2022 DRY YEAR WATER PLAN
MODERATE WATER SHORTAGE REGULATIONS
IN EFFECT
Other restrictions:
• Do not drain and refill swimming pools unless
needed for pool repair or to correct a severe
chemical imbalance
• Hotels, motels, and other commercial lodging
establishments provide the option of not having
towels and linens laundered daily
• Restaurants wait to provide water until requested
by customer
10 2022 DRY YEAR WATER PLAN
11 CONSERVATION RESOURCES
• Water-Wise Home & Business Surveys
• Free Water Saving Devices
• Water-Wise Gardening Web Site
napa.watersavingplants.com
Sample Irrigation Schedules, Controller Setting
• Cash For Grass Rebate & Flip the Strip (*new)
• Flume Meters
• Toilet Replacement
• Commercial Smart Rebates
• Trained Landscapers
2022 DRY YEAR WATER PLAN
• City Website
• Drought updates at www.CityofNapa.org/water
• Social media presence (Facebook, Twitter, Next Door…) • News media
• April 1st Direct Mailer to all customers
• April 6th Started direct outreach patrols & door tags • April Napa Valley Marketplace
• Summer NRWS bill inserts
12 OUTREACH PLAN
2022 DRY YEAR WATER PLAN
Direct mail
Friday, April 1st
13 OUTREACH
PLAN
2022 DRY YEAR WATER PLAN
Patrols and
door hangers
14 OUTREACH
PLAN
2022 DRY YEAR WATER PLAN
Our Approach:
Education and direct outreach
and … if necessary
15 OUTREACH PLAN
Fines and Enforcement
This Photo by Unknown Author is licensed under CC BY
2022 DRY YEAR WATER PLAN
MODERATE WATER SHORTAGE REGULATIONS
IN EFFECT
NMC 13.10.080 (A) Enforcement
Title 1, Chapter 1.24.060
1. $100.00 for a first violation;
2. $200.00 for a second violation of the same code section within 12 months;
3. $500.00 for each day of each additional violation of the same code section within 12 months;
16 2022 DRY YEAR WATER PLAN
17 Questions / Comments
2022 DRY YEAR WATER PLAN
RECOMMENDED ACTION
Agenda Item
Receive a Report on 2022 Water Supplies
18 Utilities
Department
SPOTLIGHT:
Josh Stokes
Kendra Bruno
May 3, 2022
Water Conservation
& Waste Prevention
Programs
City Council Meeting
5/3/2022
Supplemental - 7.C.
From: City Staff
Faces of Outreach / Education
"20% by 2020" law transitioning to
SB 606/AB 1668
Long-Term Urban Water Use Efficiency regulations
(i.e., "Making Water Conservation a California Way of
Life")
WATER BACKGROUND
100
110
120
130
140
150
160
170
180
190
200
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Gallons Per Capita Per Day
Per Capita Demand is Declining
AB 1826
SB 1383
AB 827
AB 341
City of Napa: 63% diversion,
20‐25% residual rate (9%+ contamination rate for recycling).
City of Napa’s Disposal Reduction Policy
California Goal: 75% Diversion
Water-Wise Home & Business Surveys
• Free water efficiency “audit”:
• Check for leaks
• Check showerhead & faucet flow rates, toilet flush volumes • Free high-efficiency replacement fixtures
• Irrigation system checkup
Cash For Grass Rebate Program
• $1.00 per square foot
• “Flip Your Strip” Bonus
Rebate Amount:
Requirements for Converted Areas:
• Low-water-use, climate-appropriate plants
• Permeable hardscape
• Pre- and post-inspections
>1.6 million sq. ft. converted by 1,650 customers!
Fieldwork &
Outreach
• Waste Assessments
• Audits
• Onboarding Programs
• Social Media
• Flip the Lids
• Trainings (in person/Zoom)
• Videos / Resources / Website
• MDF Tours
• NVUSD programs
• Tabling
• Special Events (organizing & tabling)
Community
Events
Water-Wise Landscaping Education
Free online resource:
napa.watersavingplants.com
Garden Month
Landscaper Training/Certification
Public
Education
• Website update with search
engine
• Social Media posts
• Garbage Bill Inserts
• Brochures
• Marketing Campaigns
• Advertisements
• Community Events
• Flip the Lids
• Community Based Social
Marketing
• Multi‐Family Tool Kit
• Collaboration across groups
Flume Smart Home Water Monitor
• $100 instant rebate for Napa customers
• Special link from City web site
• Leak detection!
Commercial Customers
• High-Efficiency Clothes Washer $400
• High-Efficiency Toilet $200
• High-Efficiency Urinal $300
• $500 Stipend
• Water Efficiency Audit
• Solid Waste Audit
Commercial
Resources
Commercial
Programs
• Waste Assessments &
Cost Analysis (savings for
composting)
• Interior Equipment
Recommendation and
Allocation (free recycling
and composting
equipment)
• Signage / Stickers update
• 6‐week on boarding
program
• Support / Managing /
Monitoring / Auditing
• Recycling Awards
New Development
2021: 65.9%
diverted per
Construction
& Demolition
ordinance
Pick up at:
Water Division HQ
1700 Second Street
Suite 100
Downtown Napa
(Second & Seminary Streets)
Free Water-Saving Devices
and Literature
Resources for
Success!
QUESTIONS?
Outdoor Uses
& Parklets
Update
May 3, 2022
City Coucil Meeting
5/3/2022
Supplemental - Item 7.D.
From: City Staff
Overview
• Municipal Code Amendments
• Guidelines Updates
• Application Procedures & W
ebsite
Update
•
Master Fee Schedule
Municipal Code Updates
• Chapter 12.64 – Outdoor Dining in the
Public Right-of-W
ay
• Section 17.52.340 (Zoning Ordinance)
Guidelines Updates
• Current Outdoor
Dining Standards
•
Safety & Technical
Standards
•
Napa Al Fresco!
Guidelines
Napa Al Fresco!
• Path of Travel
• Umbrellas & Non-
Structural
Canopies
•
Aesthetic Design
• Durability
• Storage
• Heating Devices
Applications & Website
Applications & Website
Master Fee Schedule Update
• Researched Other Bay Area
Communities
•
Range of Fees
• Parklets & Other Public Spaces
• Cost per Square Foot
Next Steps
• Municipal Code & Fee Schedule Updates
– June/July 2022
• Website Launch
– August 2022
• Implementation & Transition
Questions
Parklets
Fees
Napa Sanitation District
Sewer Capacity Charges
Examples of Rates (per square foot):
Wine/Beer Tasting (No food) - $7.17
Wine/Beer Tasting (minor food) - $19.43
Restaurant - $33.24
[email protected]
Outdoor Uses & Parklet Locations
From: Ja
mes Rosen
Sent: Wednesday, April 20, 2022 12:16 PM
To: PlanningC
ommission <[email protected]>
Subject: May 3: parklets
[EXTERNAL]
Hi, folks,
I’m writing in strong support of the parklets downtown. We moved to Napa in the middle of the pandemic and the parklets have been one of the best surprises. All this extra space for outdoor dining and other activities has made Napa a wonderful place to live.
I encourage the commission to find ways to expand the program. While it probably doesn’t make sense to close 1st or 2nd Streets completely, replacing one direction of traffic with parklet space would greatly improve walkability and encourage people to spend more time downtown. ‐James
Item 7.D.
From: Liz Alessio
To: Clerk
Subject: Fwd: Parklet charges
Date: Sunday, May 01, 2022 11:24:34 PM
From: R Lee < >
Sent: Saturday, April 30, 2022 9:41:29 AM
To: Liz Alessio <[email protected]>
Subject: Parklet charges
[EXTERNAL]
Dear Councilmember,
Thank you for your service and continuing efforts to make Napa a better place.
I own the two commercial buildings in the 1100 block of Main Street that currently house Cole’s ChopHouse,Amuse Bouche, B&J, Torc, OSHA, Williamson’s and Bloom. As a long time property owner who has seen (and lived!) the struggle towards the current vibrant Napa, I'm enthusiastic about the extra boost of energy the parklets bring to downtown. They really give the streets life.
My concern is the calculation of a fair charge for the space used by the parklets. The charge initially proposed for the typical 8x22 parking space is $5/sq ft annually or $880 a year.
If the tenant is a restaurant, the market gross rate for Napa downtown space is $5/sq ft PER MONTH, or 6% of revenues, whichever is greater. Most restaurants exceed the flat rate. To be at market rates, the parklet charge should be at least $880 per month, not per year.
There are pluses and minuses to parklets. The locations are premium ones. But, because they are outside, the drawbacks are the daily setup, maintenance from vagrants and weather. Those variables might reduce the going market rate.
However, other issues that have been raised that would potentially minimize the value of the space are the same ones faced by all businesses adding square footage.
Parklets may be temporary but leases are not forever either. They have a term, generally renegotiated every five years.
Parklets may experience utility repairs in the street. Street work impacts all businesses - entrances, parking, general ambiance.
Parklet set up costs would be the same cost to any business expanding a space. But, parklets benefit by not having to install sprinklers. Through the pandemic, the businesses were given a stipend to help with the cost impact of not being able to dine inside. Now, inside dining revenue has returned and an additional revenue stream from the parklet will offset initial set up costs.
The City and taxpayers are giving an exclusive use to the business that happens to have appropriate parking space in front of their business. This removes the community use of a parking space and gives the majority of the use benefit to one private entity.
The restaurants will make a windfall profit from the use of the parking spaces. The City of Napa and its taxpayers should share in that profit. Any restaurant business would leap at the chance of adding square footage with this type of visibility. Sadly, only about 18 businesses will have the opportunity.
I appreciate your consideration of these points in establishing a fair charge for the parklets and look forward to paying less City taxes and fees because of this new revenue stream.
Thank you,
Rebecca Lee
From: Michael Walker
To: Tiffany Carranza
Subject: Fw: Outdoor dining
Date: Tuesday, May 03, 2022 2:18:37 PM
Tiffany:
Forwarding in the event you did not receive this separately regarding this afternoon's agenda items on Parklets. Thanks,
Mike
From: Craig Smith <[email protected]>
Sent: Tuesday, May 3, 2022 1:10 PM
Cc: Vincent Smith <[email protected]>; Michael Walker <[email protected]> Subject: Outdoor dining
[EXTERNAL]
Hello,
Thank you all for your support with relaxed and expanded outdoor dining opportunities for restaurants and tasting rooms. Although the steps taken were in response to COVID, we’ve all learned that an expanded outdoor dining scene has benefits way beyond the original intention!
Our members are generally supportive of the direction the city is taking and agree that the associated fees are reasonable. At this point, we would ask that, if any parklets are to be modified or removed, unless it is a safety issue that the work deadline be moved from August to November. The last time we want to disrupt business with construction is during our busiest season.
We also appreciate that staff has kept us in the loop with a couple of meetings and hope these will continue as we proceed.
Thanks,
Craig
Craig Smith
Executive Director
Downtown Napa Association
www.donapa.com
1300 First Street, Suite 290
Napa, CA. 94559
(707) 257-0322 T
(707) 254-5884 C
(707) 257-1821 F