Napa City Council
February 20, 2024

SUPPLEMENTAL REPORTS & COMMUNICATIONS
Office of the City Clerk

City Council of the City of Napa
Regular Meeting
February 20, 2024

FOR THE CITY COUNCIL OF THE CITY OF NAPA

AFTERNOON SESSION:

SUBMITTED PRIOR TO THE CITY COUNCIL MEETING

5. ADMINISTRATIVE REPORTS:

5.A. Napa Golf Course Update
• PowerPoint Presentation from Staff

5.B. 2024 Fourth of July Event Update
• PowerPoint Presentation from Staff

5.C. Council Spotlight: Housing Division Built Environment Programs • PowerPoint Presentation from Staff

5.D. Annual Comprehensive Financial Report and Other Audit Reports for FY June 30, 2023
• PowerPoint Presentation from Staff

Napa City
Council Meeting
February 20
th
, 2024
City Council Regular Meeting
2/20/2024
Supplemental - Item 5.A.

From: Staff
CourseCo Golf
Management

CourseCo Core Values
Financial
Performance
Community
Inclusion
Stakeholder
Communication
Environmental
Stewardship
History of CourseCo and the City of Napa Partnership
Partnership commenced in 1999
Management Contract from 1999-2013
1999
May 2013
(City of Napa & CourseCo agree to 20-year lease)
• Progressively escalating rent structure establishes the following:
• CourseCo assumes future financial risk
• CourseCo to provide capital infusion
CourseCo Notifies City of Napa Intent to Exercise the First of Two 5 yr. Lease Extensions – Commences on May 15th, 2023
July 2022
5-Year Rounds Performance

5-Year Revenue Performance

Continued Investment in the Property
10-Years of Capital Projects Fulfilled Exceeding $1,250,000  F&B Banquet Pavilion
 Kennedy Taphouse Remodel
 Outdoor Cocktail Reception Site
 Dead Tree Removal & Replacement
 Banquet Equipment Storage Sheds Installation
 Maintenance Equipment
 Mowers (Greens, Fairway & Rough)
 Utility Vehicles
 SandPro
 Topdresser
 Course Infrastructure Improvements
 Greenside Bunker Renovations
 Fairway Irrigation Head Replacements
 Course Drainage
 Native Area Cleaning
 Cart Path Repair & Installation
 Building Equipment Replacement
 Pub/Grill HVAC Replacement
 Kitchen Plumbing
 Range Ball Machine Dispenser
Banquet/Event Center
Capacity: 220 guests
Ceremony: Garden site
Reception: Outdoor pavilion
Views: Rolling hills, lakes, old-growth oak
trees, golf course
Location: Convenient to Highway 29
Environment: State-of-the-art,
reception pavilion

Addition of Outdoor Cocktail Reception Site
Capacity: Approximately 125 guests
Investing in Revenue Growth with a Grill Remodel
Capacity: Approximately 32 guests
2023 Fulfilled Capital Projects
Continued Investment in the
Property
Project # Project Name Scope of Project Estimated Cost
1 Tree Removal Remove dying trees prioritized by safety risk $15,000 2 Fairway Sprinkler Upgrades Replace old impact sprinklers in fairways with new models for improved operation and distribution uniformity. 213 needed total. 76 to be used in 2023 to replace all fairway heads on 5,7, 11. 56 sprinklers in 2024 (#3, 13, 15, 16). 91 sprinklers in 2025 (#9, 12, 14) $19,000
3 Banquet / Event Space Roof Replacement Fairview wedding space roof panel replacement. 5 panels (10'7" by 4.5m) , Sidewall Panels 5 panels (10'7" x 4.5m. Additional Shipping/Install cost. 10% - 20% price increase expected 2023. $38,000
CourseCo – Investing in
Tree Trimming, Shaping
and Removal

CourseCo – Investing in
Fairway Sprinkler
Upgrades

CourseCo –
Investing in
Banquet Event
Space Roof
Replacement

2024 Planned Capital Projects
Continued Investment in the
Property
Project # Project Name Scope of Project Estimated Cost
1 Tree Removal Remove dying trees prioritized by safety risk $10,000 2 Fairway Sprinkler Upgrades Replace old impact sprinklers in fairways with new models for improved operation and distribution uniformity. 147 still needed in total. 56 sprinklers in 2024 (#3, 13, 15, 16). 91 sprinklers in 2025 (#9, 12, 14) $14,000
3 Driving Range Improvements Phase 1 of 2. 2024 earmarked to new synthetic turf tee surface via "Turfhound" product. Phase 2 earmarked for 2025 for replace and install new netting & pole & baseboard (poles ranging from 20'-30' in length. $30,690 4 Fairway #3 Drainage / Flooding Mitigation
Project
Install approximately 240 linear feet of sub surface drainage coupled with surface "grading" within the 100-125yd distance from front of #3 green. $19,000 Affordable
Golf &
Programs to
Keep Players
Coming Back

Community Inclusion/Engagement:

Serving the Residents of Napa Through All-Inclusive Fun & Engaging Events for the Entire Community

Environmental Excellence
Our Sustainable Mission:

To enrich and enhance the lives of our customers, community and guests by providing a fun and enjoyable golf experience, while maintaining responsible environmentally-conscious business practices and stewardship through:
 Customer and guest engagement/education
 Efficient resource procurement and use (water & energy)  Sustainable management practices
 Responsible sourcing
 Minimizing carbon footprint output
3-Year
Certification
Renewal On-Track
for March 2024

Questions?
Fourth of July
Event Update
City Council
February 20, 2024
City Council Regular Meeting
2/20/2024
Supplemental -
Item 5.B.

From: Staff
Background
• City Council provided direction to staff at the October 17, 2023 meeting regarding the options for activities and the associated considerations for the upcoming 2024 Fourth of July event. • This direction to staff included:
– Discontinuation of fireworks
– Continuation of the City’s support of the Sunrise Rotary July 4 th Parade with co-sponsorship of city staff costs to help with street closures and parade safety
– Discontinuation of patriotic décor in downtown if necessary to control event costs
– Retain the Community Celebration at Oxbow Commons if
funding allows for both an evening celebration as well as daytime family-friendly activities
• Providing an update on these planni ng efforts and event plan for 2024
Sunrise Rotary July 4th Parade
No changes: City staff will continue to provide in-kind support for the Sunrise Rotary July 4th Parade.

Community Celebration at
Oxbow Commons
• Similar format as 2023 which had
8,000 attendees
• Kids Zone from 3-8pm
• Food trucks
• Free Bike Valet
• Main Stage Musical Performances
from 3-9:30pm
• Salute to USA at 8:15-8:30pm
• Viewing area & broadcasted music
for Drone Show

Patriotic Décor
Uncertain if funding will be available to proceed
with the patriotic décor this year and likely placed
on pause for 2024
• July 4
th banners on the antique light poles
• Decorations at Veterans Park
• Decoration on 1 st & 3rd bridges

Drone Display
• Selected Vendor: Sky Elements
• 400 Drones
• 3-D Experience
• 12-14 animations
• Viewing Areas
• Audio available at Oxbow Commons or by phone
• Timeframe: 9:30-9:45pm
7 Drone Display - Site Plan

Drone Viewing Areas

Drone Viewing Areas

Drone Viewing Areas

Drone Viewing Areas

13 Types of Drone Animations

Financial Impacts
• Overall total budget: $202,800
– FY2024 budget increased by $135,000 from the City
Manager’s contingency fund
– $192,800 for the community special event
– $10,000 to support the July 4th Parade
– $113,751 for Sky Elements agreement for the drone show – $85,500 for Community Celebration at Oxbow Commons
– Fourth of July event expenses are incurred in two fiscal years – Approximately 70% of the expenses used for deposits,
supplies, and marketing in the months leading up to the event and in the previous fiscal year of FY2024
– Approximately 30% of the expenses are incurred when the event takes place on July 4th and will be reflected in fiscal year FY2025
14 Questions
15 Housing
Division
Built
Environment
February 2024
City Council Regular Meeting
2/20/2024
Supplemental -
Item 5.C.

From: Staff
Housing Division Built
Environment Programs
• Hernando Guillem
Housing Rehab Program Supervisor
• Antonio Mejia
Housing Rehab Specialist
• Rudy Perez
Housing Specialist
Program Staff
Housing Division Built Environment Programs
•Owner-Occupied Rehabilitation Loan
•Emergency Home Repair Grant
•Rental Rehabilitation Loan
•Tenant Accessibility Emergency Repair Grant
Housing Rehabilitation Programs
•Conversion ADU
•Junior ADU
Junior Unit Initiative Programs
•Capital Improvement Programs for Non-Profit
•Housing Quality Standards Compliance
•Labor Compliance
Others
Housing
Rehab
Programs
• Funded with CDBG, HOME and
CalHome Funds
• Primary purpose = conserve and
improve the supply of housing
affordable to low-income
households
• Other benefits include
• 0% deferred loan up to 30 years
• Grants
• Technical assistance
• Approval not based on credit score
Focus of Program:

Provide below market rate loans and grants
Housing Rehab Loans
Conserve, improve, and create
housing affordable to low-
income households
Emergency Grants
Emergency repairs to alleviate
health and safety issues while
processing the loan
Benefits and
Restrictions
For Homeowners
• Up to $75K deferred loan
• 0% interest loans of up to $75K
• No monthly payments (loans due in 20 or 30
years)
• Owner must occupy the residence
• Owner must be income qualified
• Up to $5K grant for ADA improvements
• Up to $5K grant for Emergency
Home Repairs
For Landlords and Tenants
• Up to $75K 0% deferred loan
• No monthly payments (loan due in 20
years
• Tenant must be income qualified
• Affordability restriction for 10 or 20
years
• Up to $5K grant for ADA improvements
• Up to $5K grant for Tenant Accessibility
Emergency repairs
City of
Napa
Junior
Unit
Initiative
Program
• Program created by City
• Included lots of “carrots”
• Funded with PLHA Funds
• Primary purpose = expand rental
housing stock
• Other benefits include
• Source of income for homeowners
• Increase social connections
• Allows community to be part of
housing solution
Focus of Program:

Cost efficient ADUs
Junior Units
Carved out of existing room in house
Provides private bathroom or access
to shared bathroom
Separate entrance
Conversion ADUs
Converts accessory structure into
ADU
Most popular = garage conversion
Financing
Structure
for Junior
Initiative
Program
• Up to $75K forgivable loan
• 0% interest
• Forgiven at 5% per year if renting out
unit
• Fully forgiven after 20 years
• Due in one year if decide to stop
participation
• Up to additional $25K 0% deferred
loan for Converted ADU
• Up to $5K grant for ADA improvements
• Up to $4K grant if design services
needed
• Up to $3K grant if engineering
services needed
Program
Requirements
• Property eligibility criteria:
• Located within Napa city
limits
• Single family home
• Owner occupied
• Must create a junior unit or unit
in existing accessory structure
• Includes garage conversion
• Must create a rental unit
• Either primary or junior
unit/ADU
• Rented to non-family
member
To Date

Program Services Include
• Marketing
• Loan approval
• Environmental Review
• Design Services (for Junior Unit Programs only)
• Bid Administration
– Property needs assessment
– Develop scope of work and specifications
– Bidding process
• Contract Administration
– Compliance monitoring
• Construction management
– Overseeing construction
– Process Change orders
– Process payment
– Completion
• Loan closeout and servicing
• Housing Rehab Program Administration for
– City of American Canyon, St. Helena, and Calistoga
– Town of Yountville
Conversion ADU (Before)
Conversion ADU (After)
Conversion ADU (Garage - Before)
Conversion ADU (Garage - After)
Completed Junior
Unit

Another Completed Junior Unit

Annual
Comprehensive
Financial Report
(ACFR)
FY 2022/23

City Council Regular Meeting
2/20/2024
Supplemental -
Item 5.D.

From: Staff

PURPOSE
• Present Council & Community on the
Fi
nancial Status (Audited) of the City as
of June 30, 2023
• Council to receive the A nnual
Comprehensive Financial Report for
Fiscal Year Ending June 30, 2023
• Council provide direction to staff on
al
location of the available General Fund
unassigned fund balance
2 ATTACHMENT 4

AUDIT & AUDITORS OPINION
• Audit for Fiscal Year Ended June 30,
202
3 completed by The Pun Group
• Fifth and final year of their agreement
• Auditors Opinion: Unmodified (clean)
3 ATTACHMENT 4

GFOA AWARD
Certificate of Achievement for Excellence
in Financial Reporting:
• Received the award for nine
con
secutive years
• Submitted for FYE 2023
4 ATTACHMENT 4

FY 2022/23 AUDITED

FINANCIAL STATUS REPORT
5 ATTACHMENT 4

GENERAL FUND
6 ATTACHMENT 4

FY 2022/23 General Fund
Revenue
Budget Actual YTD %
Property Tax 40.99 42.93 104.7%
Sales Tax 22.21 22.58 101.6%
Transient Occupancy Tax 31.03 30.88 99.5% Business License Tax 3.73 4.62 123.9% Charges for Services 6.15 5.76 93.7% Licenses and Permits 2.49 3.00 120.4% Other Operating Revenues 7.34 15.35 209.2% Non-Operating Revenues 2.00 2.00 100.0% Total Operating Revenue 115.93 127.12 109.6% 7 ATTACHMENT 4

FY 2022/23 General Fund
Expenditures
Budget Actual YTD %
Salaries & Wages & Benefits 81.85 7 8.38 95.8% Materials & Supplies & Services 29.02 26.22 90.4% Other Expenditures (Includes
Transfers to Reserves) 5.10 4.86 95. 3% Total Operating Expenditures 115.97 109.46 94.4% 8 ATTACHMENT 4

FY 2022/23 Reserves
• Operating Reserve: $5.54 million
– Target: 5% of operating expenditures
• Emergency Reserve: $15.52 million
– Target: 14% of operating expenditures
• Contingency Reserve: $1.11 million
– Target: 1% of operating expenditures
9 ATTACHMENT 4

CASH AND INVESTMENTS
10 ATTACHMENT 4

General Fund
11 Cash & Investments $28,917,964
ATTACHMENT 4

AMERICAN RESCUE PLAN ACT
(ARPA) FUNDS
12 ATTACHMENT 4

ARPA Funds
13 Total
Received
Total
Obligations
Total
Expenditures Unexpended
$15,118,910 $15,118,910 $2,503,383 $12,615,527
ATTACHMENT 4

CIP PROJECT FUND
14 ATTACHMENT 4

FY 2022/23 CIP Reserves
• CIP Facilities Reserve
– $6.85 million ending balance for current and
fut
ure projects
– Per Fiscal Policy, will also receive end of year
avai
lable fund balance from General Fund and
Non-Recurring General Fund
• CIP General Reserve
– $3.73 million ending balance for current and
fut
ure projects
15 ATTACHMENT 4

PENSION & POST-

EMPLOYMENT BENEFITS FUND
16 ATTACHMENT 4

Section 115 Trust
• Created to help mitigate increases in
fut
ure pension costs
• Balance at 6/30/23: $5.0 million
• Planned usage in FY24 to offset UAL
Pay
ment
17 $0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
Annual CalPERS UAL Payments, in millions
Misc Safety
ATTACHMENT 4

PENSION & OTHER POST

EMPLOYMENT BENEFITS
(OPEB) LIABILITIES
18 ATTACHMENT 4

Pension & OPEB
19 Net Pension
Liability Governmental Business-Type Total
CalPERS Misc. 89,604,121 20,601,073 $110,205,194
CalPERS Safety 106,613,209 0 106,613,209
Total: $196,217,330 $20,601,073 $216,818,403
Net OPEB Liability $5,230,603
ATTACHMENT 4

ENTERPRISE FUNDS
20 ATTACHMENT 4

Enterprise Funds – Solid Waste
21 Solid Waste & Recycling Budget Actual YTD %
Operating Revenues 43.79 43.96 100.4%
Operating Expenditures 47.26 46.14 97.6%
Operating Surplus / (Deficit) (3.48) (2.17)
Non-Recurring/Capital Revenues 3.88 3.90 100.6%
Non-Recurring/Capital Expenditures 3.93 1.71 43.5%
Transfer to Street Resurfacing 1.15 1.15 100.0%
Debt Service Expenditures 0.87 0.29 32.9%
Net Change in Fund Balance (5.55) (1.41)
ATTACHMENT 4

Enterprise Funds – Water
22 Water Budget Actual YTD %
Operating Revenues 35.80 33.74 94.3%
Operating Expenditures 33.58 32.69 97.4%
Operating Surplus / (Deficit) 2.22 1.05
Non-Recurring/Capital Revenues 2.45 1.59 64.9%
Non-Recurring/Capital Expenditures 18.69 2.02 10.8%
Disaster Project Revenues 6.92 3.19 46.1%
Disaster Project Expenditures 9.70 0.31 3.2%
Debt Service Expenditures 3.33 1.22 36.5%
Interfund Transfer Revenue 5.09 26.84 n/a
Interfund Transfer Expense 5.09 26.84 n/a
Net Change in Fund Balance (20.13) 2.28
ATTACHMENT 4

OPERATING POSITION:

GENERAL FUND &

NON-RECURRING GENERAL FUND
23 ATTACHMENT 4

FY 2022/23 General Fund
Operating Position
24 FY
2022/23
Budget
FY
2022/23
Actual
General Fund ($ in millions)
Total Revenues 115.9 127.1
- Operating Expenditures 116.0 109.5
- Contributions to General Fund Reserves - 0.9 Operating Surplus/ Deficit (0.0) 16.8
- Mark-to-Market Adjustment - 9.6
- Encumbrances - 0.9
Available Fund Balance (0.0) 6.3
ATTACHMENT 4

FY 2022/23 NR General Fund
Operating Position
25 FY 2022/23
Budget
FY
2022/23
Actual
Non-Recurring General Fund ($ in millions)
Beginning Fund Balance 6.5 6.5
Revenues 10.3 6.1
Expenditures 12.5 6.1
Ending Fund Balance 4.3 6.5
ATTACHMENT 4

Recommendations
• Project Funding
– $0.25M to CIP Project 33PA22PR03
• Public Art In Parks – Full er Park
• PERS UAL
– $3M to Section 115 Trust
• Labor Costs
– $0.3M for costs associated with restoring
Engi
ne 1 (3 x Fire Captains)
• Downtown Specific Plan
– $0.1M
26 ATTACHMENT 4

Recommendations
• Fleet Replacement Reserve
– $0.25M
• Fire Apparatus Replacement Reserve
– $0.25M
• CIP General Reserve
– $0.5M
• CIP Facilities Reserve
– Remaining $1.8M (approx.) per fiscal policy
27 ATTACHMENT 4

Questions and Comments
28 ATTACHMENT 4

Recommendation to Council
• Receive the Annual Comprehensive
Fina
ncial Statement for the Year Ending
June 30, 2023
• Provide Direction to staff to return to a
futur
e Council meeting regarding the
allocation of the available General Fund
u
nassigned fund balance
29 ATTACHMENT 4

Annual
Comprehensive
Financial Report
(ACFR)
FY 2022/23
ATTACHMENT 4