955 School Street
Napa, CA 94559
www.cityofnapa.org
3:30 PM
City Hall Council Chambers
Tuesday, June 20, 2023
3:30 PM Afternoon Session
6:30 PM Evening Session
3:30 P.M. AFTERNOON SESSION
1. CALL TO ORDER: 3:35 P.M.
1.A. Roll Call:
Councilmember Alessio, Councilmember Luros, Councilmember Narvaez, Vice Mayor Painter, and Mayor Sedgley
Present:
5 -
2. AGENDA REVIEW AND SUPPLEMENTAL REPORTS:
City Clerk Carranza announced the following supplemental items:
Item 3.A.: PowerPoint Presentation from Dr. Robert Eyler.
Item 5.I.: Memo from Finance Director Rajneil Prasad.
Item 8.A.: PowerPresentation from City staff.
(Copies of all supplemental documents are included in Attachment 1)
3. ADMINISTRATIVE REPORTS:
CITY OF NAPA
Printed on 7/10/2023
CITY OF NAPA
MEETING MINUTES - Final
CITY COUNCIL OF THE CITY OF NAPA
Mayor Scott Sedgley
Vice Mayor Beth Painter
Councilmember Liz Alessio
Councilmember Mary Luros
Councilmember Bernie Narvaez
June 20, 2023
CITY COUNCIL OF THE CITY OF
NAPA
3.A.
181-2023
Financial and Economic Indicator Update, June 2023
(See supplemental document in Attachment 1)
Brendan Hurley, Program Coordinator, Economic Development Division, opened the item.
Dr. Robert Eyler provided the report.
Mayor Sedgley brought the discussion back to Council. Dr. Eyler responded to Council questions.
There were no requests to speak from members of the public.
4. PUBLIC COMMENT:
(See supplemental document in Attachment 1)
Chris Benz and Sharon Parham, Napa Climate NOW! - shared the City of Napa Leaf Blower rebate program was up and running. She thanked Council for establishing the Community Recovery Bank and granting the funds, and shared details regarding the program.
Rodger Collinson - provided information on Napa Firewise and invited Councilmembers to do a tour with Napa Firewise.
5. CONSENT CALENDAR:
Approval of the Consent Agenda
A motion was made by Councilmember Luros, seconded by Vice Mayor Painter, to approve the Consent Agenda with items 5.R. and 5.T. pulled for discussion.
The motion carried by the following vote:
Aye:
Alessio, Luros, Narvaez, Painter, and Sedgley
5 -
5.A.
241-2023
Community Development Block Grant Advisory Committee (CDBG) Membership
Appointed new member, Jennifer Ancona, to the Community Development Block Grant Advisory Committee (CDBG) for a term effective immediately and ending September 30, 2026.
5.B.
242-2023
Napa Public Access Cable TV Board Membership
Reappointed incumbent, Ralph DeAmicis, to the Napa Public Access Cable TV Board, with a two-year term expiring June 30, 2025.
CITY OF NAPA
Printed on 7/10/2023
MEETING MINUTES - Final
June 20, 2023
CITY COUNCIL OF THE CITY OF
NAPA
5.C.
243-2023
Parks, Recreation and Trees Advisory Commission Membership Mayor Sedgley acknowledged and congratulated Alexis Gerien, who was in attendance at the meeting, on her appointment to the commission.
Appointed Alexis G. Gerien as the High School Student Representative to the Parks, Recreation and Trees Advisory Committee, with a two-year term expiring June 30, 2025 or until the student graduates from High School.
5.D.
240-2023
Amendment to Fifth Street Parking Garage Agreement
Authorized the City Manager to execute on behalf of the City an amendment to Agreement No. 9831 with Napa County, Channel Properties Inc., Napa Mill, LLC, and Andrea Schrader reducing the number of joint use spaces by one in the Fifth Street Parking Garage to accommodate an Electric Vehicle (EV) Charging station capital project.
5.E.
185-2023
Agreement for Abode Services for Homeless Outreach
Authorized the City Manager to execute an agreement with Abode Services in the amount of $801,016 for the term July 1, 2023 to June 30, 2024 for the provision of outreach services to individuals and families experiencing homelessness.
5.F.
226-2023
Reservation of Funds from the Affordable Housing Impact Fee Fund Adopted Resolution R2023-066 authorizing a reservation of Affordable Housing Impact Fee Funds in the amount of $2,000,000 for a project at 515 Silverado Trail, which includes 41 new residential units; approving an associated expenditure budget increase as documented in Budget Adjustment #159; and determining that the actions authorized in this resolution are exempt from CEQA.
Enactment No: R2023-066
5.G.
122-2023
Statement of Investment Policy
Adopted Resolution R2023-067 to adopt the City’s Statement of Investment Policy for FY 2023/24, and delegate authority to the City Treasurer to invest funds in accordance with the Statement of Investment Policy.
Enactment No: R2023-067
5.H.
220-2023
Treasurer’s Quarterly Investment Report on the City’s Investment Portfolio for the Quarter Ended March 31, 2023
Received the Treasurer’s Quarterly Investment Report on the City’s investment portfolio for the period ending March 31, 2023.
5.I.
221-2023
City of Napa Fiscal Policy Update
(See supplemental memo in Attachment 1)
Adopted Resolution R2023-068 approving the Fiscal Policy.
Enactment No: R2023-068
CITY OF NAPA
Printed on 7/10/2023
MEETING MINUTES - Final
June 20, 2023
CITY COUNCIL OF THE CITY OF
NAPA
5.J.
164-2023
Consulting Services Agreements for Marketing, Advertising, Public Relations, Event Planning & Related Services for Tourism Promotion - Napa Tourism Improvement District
Authorized the Community Services Director to execute a Services Agreement with D. Augustine & Associates, Inc. for Marketing, Advertising, Public Relations, Event Planning & Related Services for Tourism Promotion for the term of July 1, 2023 to June 30, 2024 for an amount not-to-exceed of $818,828.
5.K.
165-2023
Napa Tourism Improvement District FY 2023-24 Budget and Work Plan Adopted Resolution R2023-069 approving the Napa Tourism Improvement District City of Napa Local Governing Committee Budget and Work Plan for Fiscal Year 2023-24.
Enactment No: R2023-069
5.L.
239-2023
Recreational Facility Joint Use Agreement with Napa Valley Unified School District
Authorized the City Manager to execute a Joint Use Agreement with the Napa Valley Unified School District (NVUSD) for use of NVUSD-owned recreational facilities through June 30, 2024 at an annual amount of $230,000 for field maintenance (with annual consumer price index adjustments) and approximately $75,000 for facility use fees; and determine that the actions authorized by this item are exempt from CEQA.
5.M.
137-2023
Agreement with Pacific Secured Equities, DBA Intercare Holdings Insurance, Inc. for Workers' Compensation Claims Third Party Administration
Authorized the City Manager to execute an agreement with Pacific Secured Equities, DBA Intercare Holdings Insurance, Inc. for Workers’ Compensation Claims Third Party Administration, for a three-year term at a total cost not to exceed $410,000.
5.N.
232-2023
Elevator Repairs and Maintenance
Authorized the Public Works Director to execute on behalf of the City Amendment No. 3 to Agreement No. C2017-255 with Dream Ride Engineering, Inc., dba Dream Ride Elevator, for repair and maintenance services in the increased amount of $75,000 for a total contract amount not to exceed $200,000 and to extend the term of the agreement to June 30, 2024, and determine that the actions authorized by this item are exempt from CEQA.
5.O.
199-2023
Budget Adjustments for Transportation Fund for Clean Air Grant Award Adopted Resolution R2023-070 amending the Capital Improvement Project Plan as documented in Council Budget Amendment No. 202P12.
Enactment No: R2023-070
CITY OF NAPA
Printed on 7/10/2023
MEETING MINUTES - Final
June 20, 2023
CITY COUNCIL OF THE CITY OF
NAPA
5.P.
210-2023
Traffic Calming and Safety Improvements at Trail Crossings Adopted Resolution R2023-071: (1) authorizing the Public Works Director to award a construction contract to, and execute a construction contract with, FJ&I Engineering, Inc., for the Traffic Calming and Safety Improvements at Trail Crossings project in the bid amount of $460,622; (2) authorizing the Public Works Director to approve change orders and charges for project services up to $100,908 for a total project amount not to exceed $561,530; and (3) determining that the actions authorized by this resolution are exempt from CEQA.
Enactment No: R2023-071
5.Q.
223-2023
Repair and Maintenance for Heating and Cooling Systems
Authorized the Public Works Director to execute on behalf of the City Amendment No. 4 to Agreement No. C2017-205 with Bell Products, Inc., for heating and air conditioning systems (HVAC) maintenance services in the increased amount of $400,000 for a total contract amount not to exceed $950,000 and to extend the term of the agreement to June 30, 2026, and determine that the actions authorized by this item are exempt from CEQA.
5.R.
200-2023
Property Purchase for Materials Diversion Facility
This item was pulled by Councilmember Alessio.
Utilities Director Phil Brun provided a brief report.
A motion was made by Councilmember Alessio, seconded by Councilmember Narvaez, to adopt Resolution R2023-072 (1) authorizing the Utilities Director to take all actions necessary to negotiate and execute final terms of a purchase and sale agreement with the Napa-Vallejo Waste Management Authority in the amount of $1,770,000, by which the City will acquire an approximately 2.87 acre parcel of property adjacent to the City's Materials Diversion Facility at 820 Levitin Way; and (2) approving a transfer of $1,770,000 from the Solid Waste and Recycling (SWR) Enterprise Fund Undesignated Fund Balance 510-35999 to Nonrecurring SWR operating expenditure account 51960510-70110 as documented in Council Budget Amendment No.77P12. The motion carried by the following vote:
Aye:
Alessio, Luros, Narvaez, Painter, and Sedgley
5 -
Enactment No: R2023-072
CITY OF NAPA
Printed on 7/10/2023
MEETING MINUTES - Final
June 20, 2023
CITY COUNCIL OF THE CITY OF
NAPA
5.S.
227-2023
Chemical Supplies for Potable Water Treatment Plant Facilities (1) Determined that the proposed contracts with Chemtrade Chem, Thatcher, and Univar Solutions, for the purchase of chemical supplies for potable water treatment plant facilities, meet the requirements for procurement of supplies via existing contracts with another public agency (North Bay Chemical Agency Pool), as set forth in Napa Municipal Code Section 2.91.060; and (2) Authorized the Utilities Director to negotiate and execute contracts for the purchase of chemicals for use at the three City of Napa potable water treatment facilities in amounts not to exceed as follows: Chemtrade Chem at $700,000 for Aluminum Sulfate; Thatcher at $275,000 for 12.5% NaOCI (Sodium Hypochlorite); and Univar Solutions at $200,000 25% NaOH Dry (Caustic Soda); and determine this action is exempt from CEQA.
5.T.
229-2023
2023 Annual Water Shortage Assessment Report
This item was pulled by Councilmember Alessio.
Utilities Director Phil Brun provided a brief report.
A motion was made by Councilmember Alessio, seconded by Vice Mayor Painter, to receive the 2023 Annual Water Shortage Assessment Report. The motion carried by the following vote:
Aye:
Alessio, Luros, Narvaez, Painter, and Sedgley
5 -
5.U.
235-2023
Environmental Consulting Services for Material Diversion Facility Projects Authorized the Utilities Director to negotiate and execute an agreement with RCH Group, Inc. (Consultant) for Environmental Consulting Services for the Materials Diversion Facility (MDF) projects in an amount not to exceed $300,000; and to negotiate and execute amendments to the Agreement in the additional amount of up to $30,000 as a 10% contingency for a total project amount not to exceed $330,000.
6. CONSENT HEARINGS:
Mayor Sedgley announced the consent hearings. There were no requests to speak; the hearings were opened and closed without comment.
Approval of the Consent Agenda
A motion was made by Councilmember Luros, seconded by Councilmember Narvaez, to approve the Consent Hearing Agenda. The motion carried by the following vote:
Aye:
Alessio, Luros, Narvaez, Painter, and Sedgley
5 -
CITY OF NAPA
Printed on 7/10/2023
MEETING MINUTES - Final
June 20, 2023
CITY COUNCIL OF THE CITY OF
NAPA
6.A.
167-2023
FY 2023-2024 Annual Report for the Downtown Napa Property and Business Improvement District (PBID) and Levy of Assessments Adopted Resolution R2023-073 approving the FY 2023-2024 Annual Report for the Downtown Napa Property and Business Improvement District (PBID), levying assessments in the PBID, and determining that the actions authorized by this Resolution are exempt from CEQA.
Enactment No: R2023-073
6.B.
179-2023
Downtown Business Promotions Tax Area - FY 2023-2024 Levy of Taxes Adopted Resolution R2023-074 levying taxes in the Downtown Business Promotions Tax Area (DBPTA) for FY 2023-2024 in accordance with Napa Municipal Code Chapter 3.28; and determining that the actions authorized by this resolution are exempt from CEQA.
Enactment No: R2023-074
6.C.
180-2023
Oxbow Business Promotions Assessment Area - FY 2023-2024 Levy of Assessment
Adopted Resolution R2023-075 levying assessments in the Oxbow Business Promotions Assessment Area for FY 2023-2024 in accordance with Napa Municipal Code Chapter 3.29; and determining that the actions authorized by this resolution are exempt from CEQA.
Enactment No: R2023-075
6.D.
190-2023
Downtown Parking Assessment Area - 2024 Levy of Assessment Adopted Resolution R2023-076 authorizing levying of assessments in the Downtown Parking Assessment Area for 2024 in accordance with Napa Municipal Code Chapter 3.30; and determining that the actions authorized by this resolution are exempt from CEQA.
Enactment No: R2023-076
7. PUBLIC HEARINGS:
CITY OF NAPA
Printed on 7/10/2023
MEETING MINUTES - Final
June 20, 2023
CITY COUNCIL OF THE CITY OF
NAPA
7.A.
128-2023
City of Napa FY 2023/24 and 2024/25 Budget Adoption
(See supplemental document in Attachment 1)
Budget Officer Jessie Gooch provided the staff report.
Mayor Sedgley called for disclosures; Councilmembers provided them.
Mayor Sedgley opened up public testimony; there were no requests to speak.
A motion was made by Vice Mayor Painter, seconded by Councilmember Alessio to close the public testimony. The motion carried unanimously.
Discussion was brought back to Council. Individual comments and questions ensued.
A motion was made by Councilmember Narvaez, seconded by Councilmember Luros, to 1. Adopt Resolution R2023-077 approving and adopting the FY 2023/24 and FY 2024/25 Budget; and
2. Adopt Resolution R2023-078 approving the City-Wide Position Staffing Plan.
The motion carried by the following vote:
Aye:
Alessio, Luros, Narvaez, Painter, and Sedgley
5 -
Enactment No: R2023-077 R2023-078
CITY OF NAPA
Printed on 7/10/2023
MEETING MINUTES - Final
June 20, 2023
CITY COUNCIL OF THE CITY OF
NAPA
7.B.
238-2023
The Meadows of Napa Valley TEFRA Hearing
Housing Manager Stephanie Gaul provided a brief report.
Mayor Sedgley called for disclosures; there were none.
Mayor Sedgley opened public testimony; there were no requests from the public to speak.
Wayne Panchesson from the Meadows of Napa Valley provided comments summarizing proposed upgrades to the facility.
A motion was made by Councilmember Luros seconded by
Councilmember Alessio to close the public testimony. The motion carried unanimously.
There was no additional discussion.
A motion was made by Councilmember Alessio, seconded by Councilmember Narvaez, to adopt Resolution R2023-079 approving the issuance by the California Statewide Communities Development Authority of revenue bonds in an aggregate amount not to exceed $80,000,000 for the purpose of financing or refinancing the acquisition and rehabilitation of The Meadows of Napa Valley located at 1800, 1900, and 2000 Atrium Parkway. The motion carried by the following vote:
Aye:
Alessio, Luros, Narvaez, Painter, and Sedgley
5 -
Enactment No: R2023-079
8. COMMENTS BY COUNCIL OR CITY MANAGER:
Following brief discussion regarding Fire Department staffing during the budget item, City Manager Potter shared that additional staffing needs from other various departments may be brought back for discussion at a later date as well.
Vice Mayor Painter suggested Council work with City Staff to coordinate the Napa Firewise tours and also suggested the City pay close attention to a Statewide Bill on short term rentals that Dr. Eyler mentioned in his presentation.
9. CLOSED SESSION:
City Attorney Barrett announced the closed session items.
CITY OF NAPA
Printed on 7/10/2023
MEETING MINUTES - Final
June 20, 2023
CITY COUNCIL OF THE CITY OF
NAPA
9.A.
248-2023
• CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(Government Code Section 54956.9(d)(1)): United States District Court Northern District of California Case No. 3:22-cv-05779-AMO.
9.B.
251-2023
• CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(Government Code Section 54956.9(d)(1)): Napa County Superior Court Case No. 22CV001127.
CITY COUNCIL RECESS: 5:00 P.M.
6:30 P.M. EVENING SESSION
10. CALL TO ORDER: 6:30 P.M.
10.A. Roll Call:
Councilmember Alessio, Councilmember Luros, Councilmember Narvaez, Vice Mayor Painter, and Mayor Sedgley
Present:
5 -
11. PLEDGE OF ALLEGIANCE:
12. AGENDA REVIEW AND SUPPLEMENTAL REPORTS:
City Clerk Carranza announced the following supplemental items:
Item 15.A.: PowerPoint Presentation by City staff.
(A copy of the supplemental item is included in Attachment 2)
13. COMMISSION INTERVIEWS AND APPOINTMENTS:
CITY OF NAPA
Printed on 7/10/2023
MEETING MINUTES - Final
June 20, 2023
CITY COUNCIL OF THE CITY OF
NAPA
13.A.
236-2023
Civil Service Commission Membership
Mayor Sedgley introduced the item and explained the interview and appointment process.
City Clerk Carranza noted that applicant Irisher Darnell was not in attendance; however, her application should still be considered for appointment.
The interview began with Ashley Halliday providing a brief opening statement followed by questions of individual Council members.
Each Councilmember voted, by paper ballot, to identify the preferred candidates to be appointed to the Commission.
City Clerk Carranza announced that the greatest number of votes was received by Ashley Halliday with 5 votes. She also announced the vote of each Councilmember for the candidates was as follows:
Mayor Sedgley: Halliday
Vice Mayor Painter: Halliday
Councilmember Alessio: Halliday
Councilmember Luros: Halliday
Councilmember Narvaez: Halliday
A motion was made by Councilmember Luros, seconded by Councilmember Alessio to reappoint Ashley Halliday to the Civil Service Commission to serve a term beginning July 1, 2023 and ending June 30, 2026. The motion carried by the following vote:
Aye:
Alessio, Luros, Narvaez, Painter, and Sedgley
5 -
CITY OF NAPA
Printed on 7/10/2023
MEETING MINUTES - Final
June 20, 2023
CITY COUNCIL OF THE CITY OF
NAPA
13.B.
237-2023
Cultural Heritage Commission Membership
City Clerk Carranza provided a brief report summarizing the vacancies on the commission.
Mayor Sedgley invited all three applicants to introduce themselves and share with Council why they should be appointd to the commission.
Introducions occured in the following order:
Elizabeth McKinne
Kent Rasmussen
Karen Wesson
A motion as made by Councilmember Luros, seconded by Vice Mayor Painter to:
1) Appoint Kent Rasmussen and re-appoint Karen Wesson to serve a term beginning July 1, 2023 and ending on June 30, 2025; and 2) Appoint Elizabeth McKinne to serve a term beginning immediately and ending on June 30, 2026; and
3) Designate Karen Wesson to serve as a Preservation Professional.
The motion carried by the following vote:
Aye:
Alessio, Luros, Narvaez, Painter, and Sedgley
5 -
14. PUBLIC COMMENT:
Kirk Mann - suggested refurbishment of existing City buildings rather than explore a new building(s). He suggested other projects to include upgrades to Fuller Park; a downtown art center, and one way street corrections.
15. ADMINISTRATIVE REPORTS:
CITY OF NAPA
Printed on 7/10/2023
MEETING MINUTES - Final
June 20, 2023
CITY COUNCIL OF THE CITY OF
NAPA
15.A.
228-2023
City Downtown Building Facilities
(See supplemental document in Attachment 2)
City Manager Potter opened the item and provided a brief background.
Public Works Director Julie Lucido provided the report.
Discussion was turned over to Council. Individual Comments and questions ensued.
A motion was made by Councilmember Narvaez, seconded by Vice Mayor Painter, to appoint Mayor Sedgley and Councilmember Luros to serve as an advisory committee to evaluate the feasibility of developing a joint project with Napa County for new public building facilities, and return to a future City Council Meeting with a recommendation on whether to pursue additional steps for a joint project with the County. The feasibility evaluation by the advisory committee will include working with City staff and meeting with two members of the Napa County Board of Supervisors. The motion carried by the following vote:
Aye:
Alessio, Luros, Narvaez, Painter, and Sedgley
5 -
16. REPORT ACTION TAKEN IN CLOSED SESSION:
City Attorney Barrett stated that there was no reportable action from the June 20, 2023 Closed Session; however, there was reportable action from a previous closed session meeting:
During the City Council meeting on May 25, 2023, the City Council met in closed session and unanimously provided settlement authority on anticipated litigation regarding a claim filed with the US Equal Employment Commission (EEOC Charge Number 550-2020-00674); and there had now been a final reportable action taken to implement Council’s authority.
Namely, the City received a fully executed Conciliation Agreement on June 5, 2023. A copy of the agreement would be available upon request to the City Clerk’s Office.
17. COMMENTS BY COUNCIL OR CITY MANAGER: None.
18. ADJOURNMENT: 7:43 PM
Submitted by:
_______________________________
Tiffany Carranza, City Clerk
CITY OF NAPA
Printed on 7/10/2023
MEETING MINUTES - Final
ATTACHMENT 1
SUPPLEMENTAL REPORTS &
COMMUNICATIONS Office of the City Clerk
City Council of the City of Napa
Regular Meeting
June
20 , 2023
FOR THE CITY COUNCIL OF THE CITY OF NAPA
AFTERNOON SESSION:
SUBMITTED PRIOR TO THE CITY COUNCI
L
MEETING
3 .
ADMINISTRATIVE REPORTS:
3.A
. Financial and Economic Indicator Update, June 2023
•
PowerPoint
Presentation from Robert Eyler, PhD.
, updated on June 20, 2023.
5 .
CONSENT CALENDAR
:
5.I. City of Napa Fiscal Policy Update
1) Memo from Rajneil Prasad, Finance Director, received on June 20, 2023. 7 .
PUBLIC H
EARINGS:
7 .
A. City of Napa
2023/24 and 2024/25 Budget Adoption
•
PowerPoint Presentation from City Staff.
AFTERNOON SESSION:
SUBMITTED
DURING
THE CITY COUNCI
L
MEETING
4 . PUBLIC
COMMENT
:
1)
Leaf Blower Rebate Program handout
received on
June 20,
202
3 .
SUPPLEMENTAL REPORTS & COMMUNICATIONS
Office of the City Clerk
City Council of the City of Napa
Regular
Meeting
June
20 , 2023
FOR THE CITY
COUNCIL OF THE CITY OF NAPA
AFTERNOON SESSION:
SUBMITTED PRIOR TO THE CITY COUNCI
L
MEETING
3 .
ADMINISTRATIVE REPORTS:
3.A
. Financial and Economic Indicator Update, June 2023
•
PowerPoint
Presentation from Robert Eyler, PhD.
, updated on June 20, 2023.
5 .
CONSENT CALENDAR
:
5.I. City of Napa Fiscal Policy Update
1) Memo from Rajneil Prasad, Finance Director, received on June 20, 2023.
7 .
PUBLIC H
EARINGS:
7 .
A. City of Napa
2023/24 and 2024/25 Budget Adoption
•
PowerPoint Presentation from City Staff.
C
ITY OF NAPA: DASHBOARD
CITY COUNCIL PRESENTATION
N
APA, CA
JUNE 2023
R
obert Eyler, PhD
President, Economic Forensics and Analytics Inc.
Professor, Economics, Sonoma State University
[email protected]
1 City Council Regular Meeting
6/20/2023
Supplemental I - Item 3.A.
From: City Staff
E
mployment Recovery Comparison, United States, Great Recession and COVID-19 Recession, Index Nov 2007 and Jan 2020 = 100,
Monthly to April 2023, Seasonally Adjusted
2 So
urce: BLS and EFA
10 2.6
75.0 80.0
85.0 90.0
95.0 100.0
105.0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 G
reat Recession
COVID-19
I
nflation on the Clock: 2007 to 2025 and beyond
3 Wh
at to Watch
•
Yield Curves
•
Housing prices
•
Wages
•
Employment levels
•
FED Rhetoric
Can we get back to 2%?
Co
re PCE Inflation (%)
Unemployment Rate (%)
Real GDP (%)
Annual data (projections based on annual-average levels):
New
Previous
New
Previous
New
Previous
3.7 3.0
3.7 3.8
1.3 1.3
2023
2.3 2.3
4.3 4.2
1.0 1.4
2024
2.0 2.1
4.4 4.2
2.4 2.2
2025
N/A
N/A
4.3 4.1
2.3 1.5
2026
F
ederal Reserve Philadelphia
Forecast, Survey of Professional Forecasters
Sourc
e: Federal Reserve Philadelphia Branch
Th
ese data are from May 2023
Bot
tom Line:
Economy slower now through 2024, as lingering inflation and relatively high interest rates spread costs over next two years minimum
N
apa at a Glance: end of Q2 2023
5
E
mployment Trends: City Residents Working or Looking for Work, Jan 2019 to March 2023
6
T
ourism, Average Daily Rate ($) and Occupancy
Rate (%), April 2019 to March 2023
7
H
ousing: % Change Median Home Price April 2020 to April 2023 Median Rents, April 2019 to April 2023,
City of Napa and Selected Cities and Counties
8 Sourc
e: Zillow
T
M
Res
earch
-20.0%
-10.0%
0.0%
10 .0%
20.0%
30.0%
40.0%
50.0%
T
hree Year
From
Peak
E
quity Measures: Severe Housing Burden
City of Napa and Selected Cities and Counties
9 %
of Households with Rent as at
least 30% of monthly income
Housing Burden
2021
2020
2015
2010
Place
24.0%
23.9%
25.2%
24.8%
Napa City
24.6%
23.4%
23.8%
24.3%
Napa County
25.0%
24.7%
27.5%
26.5%
Sonoma
24.4%
24.0%
27.2%
26.8%
Marin
25.2%
24.5%
28.5%
26.8%
Solano
23.5%
21.6%
26.6%
24.8%
Yamhill
23.7%
22.4%
25.9%
26.1%
Fairfield
21.0%
19.8%
22.2%
25.7%
Livermore
20.3%
21.0%
22.2%
26.7%
Petaluma
27.9%
29.5%
29.7%
31.1%
San Rafael
29.9%
32.5%
37.2%
31.4%
Santa Cruz
26.3%
24.1%
28.2%
29.1%
Temecula
25.4%
24.8%
24.8%
20.3%
Monterey
26.3%
26.2%
28.2%
26.7%
CA
22.9%
22.7%
24.6%
23.9%
US
Ho
using Burden: % of after-tax income paid for rent
or ownership (these data are just rentals)
• A percent over 50% is considered “severely
burdened” in housing advocacy circles
• City of Napa near 25% of renters since 2010
• Caveats
• Burden is a function of housing costs and
incomes
•
Napa is 10
th
hi
ghest of this group as of
2021 (the latest Census data)
C
ity of Napa: Things to Watch
•
T
oward 2024
•
Macr
oeconomic context remains uncertain: foreign and domestic •
Exp
ect interest rates to fall slightly, slower economy into 2024 •
Infla
tion remains stubborn to tame
•
T
ravel industry:
•
Lik
ely another strong year for Napa
•
Long
er-term: how do Bay Area jobs shifts affect Napa demand? •
Hous
ing forecast slightly better toward summer 2024
•
L
ower interest rates and lower inventory mixing together •
R
ents still rising: once interest rates fall, likely a race to available homes 10
Th
anks!
Questions?
[email protected]
@bobby7007
1 1
C
ity Hall: 955 School Street, Napa CA 94559
Mailing Address: P.O. Box 660, Napa CA 94559
(707) 257
-
950
3
www.cityofnapa.org
ME
MO
TO
:
Mayor and City Council
Steve Potter, City Manager
FROM:
Rajneil Prasad, Finance Director
CC:
Jessie Gooch, Budget Officer
DATE:
June 20, 2023
SUBJECT:
June 20
th
A
genda Item 5.I. City of Napa Fiscal Policy Update
After the City Council Agenda packet was published for the Regular Meeting on June 20, 2023, a typo was identified in Exhibit A for Attachment 1 on item 5.I. City of Napa Fiscal Policy Update
. On Page
13 of Exhibit A, in Fiscal Policy section 19.b.i, the phrase “The City Council hereby authorizes the City Manager City to maintain” should be replaced with “The City Council hereby authorizes the City Manager to maintain.” This correction will be made in the
published version of the Fiscal Policy after adoption of the update via resolution.
Item 5.I.
Budget
Adoption
FY 2023/24 and FY 2024/25
Ju
ne 20, 2023
City Council Regular Meeting
6/20/2023
Supplemental - Item 7.A.
From: City Staff
Changes
Since 6/6 Public Hearing
• Up
dates to Housing Funds
– Per
Division, moved internal service expenditure
budgets between funds and increased revenues in
some funds
• Co
rrected CIP Budget
– Coun
cil approved R2023-061 on 6/6/23, which added
$850,000 to the Silverado-Third-Coombsville-East (5-
Way) Intersection Project ST14PW04 in FY23. This
funding had been included in the FY 2023/24
proposed budget and has been removed for the
adopted budget.
FY
2023/24 Expenditures
All Funds - $323.3 million
Gener
al Funds
39%
S
pecial Revenue Funds
8%
Ca
pital Projects Funds
10%
S
olid Waste & Recycling
Funds
15%
W
ater Funds
17%
Int
ernal Service Funds
5%
Ho
using Authority Funds
6%
G
eneral Fund
R
e
venues and Expenditures
5 0
60 70
80 90
100
110
120
130
140
2020/21 Actual 2021/22 Actual 2022/23 Adjusted 2023/24 Proposed 2024/25 Proposed Mil
lions
Ex
penditures
Opera
ting Revenues
Non
-Operating Revenues
G
eneral Fund Revenues
-
2 0
40 60
80 100
120
140
2022/23 Amended
2023/24 Proposed
2024/25 Proposed
Mil
lions
P
roperty Tax
VLF
Sal
es Tax
Tr
ansient Occup Tax
Busi
ness License Tax
Charg
es for Services
Ot
her Revenues
Tr
ansfers In
Ex
cess ERAF
G
eneral Fund Expenditures
-
2 0
40 60
80 100
120
140
2022/23 Amended
2023/24 Proposed
2024/25 Proposed
Mil
lions
P
ayroll & CalPERS
Serv
ices - External
Serv
ices - Internal
Mate
rials & Supplies & Capital Outlay
Tr
ansfers Out
Tr
ansfers to Reserves
G
eneral Fund
Fu
nd Balance / Reserves
(1
0)
(5)
-
5 10
15 20
25 30
35 2021/22 Actual 22/23 Adjusted 2023/24 Proposed 2024/25 Proposed Milli
ons
Char
t Title
U
nassigned Fund Balance
Emer
gency Reserve
Opera
ting Reserve
Co
ntingency Reserve
Lega
lly Restricted
Proposed
CIP by Category
0 1 2 3 4 5 6 7 8 9 10 11 12
Bri
dge
Facilities
Materials Diversion
Misc
Park
Public Art
Storm Drain
Streets, Traffic Safety, Multi-Modal
Traffic Signal
Water
Millions
2 023/24 Proposed
2 024/25 Proposed
Co
nclusion
Co
uncil Questions or
Comments?
Recommended Action:
1. Move to adopt the Fiscal
Years 2023/24 and
2024/25 Budgets
2. Move to adopt citywide
position staffing plan
End of
Presentation
SUPPLEMENTAL REPORTS & COMMUNICATIONS
Office of the City Clerk
City Council of the City of Napa
Regular
Meeting
June 20
, 2023
FOR THE CITY
COUNCIL OF THE CITY OF NAPA
EVENING
SESSION:
SUBMITTED
DURING
THE CITY COUNCI
L
MEETING
4 . PUBLIC
COMMENT
:
1)
Leaf Blower Rebate Program handout
received on
June 20
,
202
3 .
ATTACHMENT 2
SUPPLEMENTAL REPORTS &
COMMUNICATIONS Office of the City Clerk
City Council of the City of Napa
Regular Meeting
June
20 , 2023
FOR THE CITY COUNCIL OF THE CITY OF NAPA
EVENING
SESSION:
SUBMITTED PRIOR TO THE CITY COUNCI
L
MEETING
15. ADMINISTRATIVE REPORTS:
15.A City Downtown Building Facilities
•
PowerPoint Presentation from City
Staff.
D
owntown City Building Facilities
Overview of Project Studies and
Actions from 2000 through present
J
UNE 2023: UPDATE AND RECOMMENDED CITY COUNCIL ACTION
A
TTACHMENT 2
City Council Regular Meeting
6/20/2023
Supplemental I - Item 15.A.
From: City Staff
Public
Safety, Department
Administrative Offices,
and City Hall
P
olice Department
Housing
& Fire Admin
Fir
e Station
Human
Resources
Util
ities
Ci
ty Hall
Com
munity Services
P
arks & Recreation
1951
1958 &
e
xpansions
1961
1963 &
remodeled
1976
1955
Average age of the City
owned downtown
buildings, 65+ years
leased
leased
1975
Ju
ly 10, 1951 City Council awarded the construction of a
new City Hall for $277,448
70 employees (at City Hall, Corp Yard, Police Building, and 2 Fire Stations)
13,579 population
P
revious Work to Develop a Project
to Replace Downtown City-Owned
Offices, City Hall & Public Safety
Buildings (2000-2020)
C
onsistent
themes for last
20+ years of
project
evaluations
Pr
oblem: not enough space, employees
lo
cated in separate buildings, need to lease
office space, facilities in poor condition,
spaces do not meet level of professional
standards
Go
al: adequate space that supports
e
mployees and community needs
Id
entified Solutions: new buildings,
pr
evious studies recommended rebuilding
on City property located downtown
2 0 years ago, need identified for new City buildings. Master plan developed in 2004. (Work began in 2000)
Go
als—City buildings
:
•
Flexible framework to base facility
decisions
•
Cost effective means to provide needed
space
•
Consolidation of departments in City
owned facilities
•
Establish standardized, appropriately
sized workspaces
•
Co-locates like functions and provide
for space sharing
•
Creates a symbolic and recognizable
civic core by developing a City Hall
campus and plaza
Needs—City buildings
:
•
Are inadequately sized
•
Have deficient infrastructure
•
Do no fully support current
operations
•
No space for growth
I
n 2009, alternatives were developed for the City Hall and Community Services Building properties.
O
ne of several alternatives
developed
A
nalysis proceeded but
joint project did not
move forward beyond
initial evaluation
T
en years ago, restarted looking at
options.
Buildings
in poor condition
Limited investments being made to repair
and maintain
Departments were (and still are)
overcrowded
Space unevenly distributed and inefficient
Leased space for offices and to provide
services
Facilities out of date regarding technology,
current building codes, and essential
services construction (for public safety)
W
ork from 2014-2018 was focused on
a concept to develop project through a
public-private partnership
Ne
w City Hall and Public Safety Building
(“Civic Center”) on CSB, with new Fire Station
#1 on the Housing Authority property,
expanded Clay Street Parking Garage
Private developer to acquire the City Hall
property to develop for housing, hotel, and
retail
Property value and increased tax revenue to
offset costs of the public buildings
Required temporary building space “swing
space” for police, fire, and offices—very
complicated
Ne
w Private Development on City Hall Property
New “Civic Center” on CSB Property
R
equest for
Qualifications Issued
October 2015
Top Three firms
selected to present
Project Proposals
9 /5/2017: City entered into an Exclusive Negotiating
Agreement for design, build, operation, maintenance and financing for new building and private development.
12/18/2018: Council directed staff to develop additional options and appointed an ad hoc advisory committee.
S
teps Taken in 2019
Project Concerns 2018
•
Cos
ts and Financial
Feasibility
•
Complexity
•
Temporary Office and
Operations Space
(“Swing Space”)
•
Expanding Scope &
Costs
•
Design Character
•
Employee Concerns
•
Community Concerns
•
Communication
•
City
Council Ad Hoc Committee
•
Reevaluated Sites
•
Reevaluated Space and Building Concepts
•
Identified Alternatives to Reduce Swing
Space
•
Reevaluated Cost Estimates
•
Communicated More with Employees
and Community
•
Frequent Updates and Direction from
Council
•
Identifying Funding and Financing
Strategy As Early Stage
G
eographical Boundary for
location of
City Hall
and
Public
Safety
approved on 3/5/2019
Al
ternative analysis for 26 sites with focus on
assembling area to support both Public Safety and
Administrative functions presented on 7/23/2019
P
ast Studies: Alternative site analysis from 2019 project work
15 Cam
pus A
City Hall Superblock
CSB
Housing Building
Clay St Surface
Parking
1042 Seminary Street
B of A Parking Lot
Selected Site
Cam
pus B
Former Safeway
CSB
Housing Building
B of A Parking Lot
Not selected due to
documented environmental
issues for Safeway property
and limited progress on
remediation
Cam
pus C
Former Parks & Rec Office
Former Cinedome Site
Former NapaSan Pump Station
Not selected due to flooding
conditions
Cam
pus D
County Facilities at 3
r
d
Su
llivan Site
Not selected due to insufficient
area on Sullivan block and
County not planning to move
Cit
y Hall Superblock Area
Select
ed on 9/17/2019
(analyzed flood risk,
acquisition cost, parking,
access, etc.)
Ci
ty Hall,
PD, FS #1
CSB
Former
Safeway
County:
Admin &
Other
Parking
Area
NSD
Station
A
lternative Analysis: Renovate Existing Buildings or Build New Council
directed staff to
focus analysis and
outreach on Build New
Alternatives D & E
(11/19/19)
C
oncept Layout from March 2020
City Hall Superblock
17 Ci
ty Council directed staff to pursue Option 1
(previously presented as Alternative E) and
return with financial plan and continue with
design. (1/21/20)
P
rogress made
in early 2020;
then COVID-19
impacts lead to
terminating
project
B
y early 2020, new project elements
identified (location, eliminating private
development plan, parking location,
building layouts)
March 2020, the City experienced an
immediate and severe economic shock
from COVID impacts
Project not financially feasible with COVID
impacts, the project was terminated
2 023 Re-start
Considerations:
Acute Need to
Address
Buildings
F
ocus on developing a funding/financing plan to
deliver City Hall and Public Safety Buildings (project
will likely need to be phased); currently evaluating
revenue options related to public safety needs
Commun
icate with employees on the need, history,
and goals
Commun
icate, collect input, and engage with
community and employees throughout process
F
ocus on design elements to enhance the character
of downtown with employee and community input
Le
verage work completed to date but must
reconfirm elements remain valid (i.e. post COVID
work changes)
Exp
lore potential partnership with County
R
ecommended Action
Ap
point two members of the City Council to serve as an advisory committee to evaluate the feasibility of developing a joint project with Napa County for new public building facilities.
•
Th
e advisory committee will work with City staff and meet with two members of the County Board of Supervisors.
•
The advisory committee will return to a future City Council Meeting with a recommendation on whether to pursue additional steps for a joint project with the County.
C
ouncil Direction to Advisory Committee
for Feasibility Discussions
S
cope of City Project
•
similar
to 1/21/2020: City Offices and Public Safety Facilities
Pr
oject Location
Scale/size of Building(s)
Ownership Structure
Funding/Financing Plan and Timing
Project Schedule