SUPPLEMENTAL REPORTS & COMMUNICATIONS
Office of the City Clerk
City Council of the City of Napa Regular Meeting
November 19, 2024
FOR THE CITY COUNCIL OF THE CITY OF NAPA
AFTERNOON SESSION:
SUBMITTED PRIOR TO THE CITY COUNCIL MEETING
3. PUBLIC COMMENT:
1) Email from Gabe Johnson received on November 18, 2024.
4. CONSENT CALENDAR:
4.C Resolution Granting Consent to the County of Napa to Renew the Napa Valley Tourism Improvement District (NVTID) and Include the City of Napa in the Renewed NVTID
1) Email from Visit Napa Valley received on November 11, 2024 2) Email from Lisa Gift_City Calistoga Council received on November 13, 2024 3) Email from Maxence Cinoagnon_Napa Valley Lodge on November 18, 2024 4) Email from Ken Frank_La Toque Restaurant on November 18, 2024 5) Email from Michael Collins_Archer Hotel on November 18, 2024 6) Email from George Nielson_Napa Chamber of Commerce on November 18, 2024 7) Email from Benjamin Horne on November 19, 2024
5. ADMINISTRATIVE REPORTS:
5.A Treasurer’s Quarterly Investment Report on the City’s Investment Portfolio for the Quarter Ended September 30, 2024
• Presentation from PFM Asset Management
5.B Deferred Compensation Plan Restatement and Money Purchase Defined Contribution Plan Adoption
• Presentation from Staff
5.C Fiscal Year 2023/24 End of Year Report Update - Unaudited • Presentation from Staff
5.D Downtown Parking Structure Site Analysis
• Presentation from Staff
1) Email from John Salmon on November 19, 2024
2) Email from Steve Carlin on November 19, 2024
SUBMITTED DURING THE CITY COUNCIL MEETING
4. CONSENT CALENDAR:
4.C Resolution Granting Consent to the County of Napa to Renew the Napa Valley Tourism Improvement District (NVTID) and Include the City of Napa in the Renewed NVTID
1) Email from Michael Basayne received on November 19, 2024 pfmam.com
A Division of U.S. Bancorp Asset Management, Inc.
For Institutional Investor or Investment Professional Use Only – This material is not for inspection by, distribution to, or quotation to the general public City of Napa
Investment Program Update
Presentation to the City Council
November 19, 2024
Justin Resuello, Relationship Manager
5.A
Background
• September 3rd CC Meeting DTSP Progress Report
• Downtown Specific Plan Action Items:
• Action PI-P-1.2: New parking structure in Parking Exempt District • Identified Pearl & West Streets (Lot X - Cinedome)
• 350 spaces at $32k/space
• Action PI-P-1.5: New parking structing in The Oxbow
• Identified Copia redevelopment area
• 375 spaces
• Results:
• Cinedome Masterplan mechanized garage
• Copia sold to private ownership (CIA & South Oxbow)
Infrastructure Challenges
• Existing city-owned garage deferred maintenance & community feedback
• Pearl, Clay & 2nd Street
• Construction costs have rapidly increased
• Price per stall $32k --> +$50k
• Funding sources identified in DTSP inadequate
• Parking Exempt District severely reduced with State Law AB 2097 (next slide) • No Paid Parking for bonding capacity
• Redevelopment Agency non-existent (EIFD replaced yet early years) • Little appetite for additional taxes or fees (CFD, Specific Plan Impact Fee) • Parking structures that would be a part of redevelopment projects have stalled over the years.
Parking Exempt District
• Established in 2005 to fund a new parking
facility (collected +3MM to-date)
• Due to AB 2097, the City can no longer require
parking minimums for new residential and
commercial developments within one-half mile
of a major transit stop (Soscol Gateway Transit
Center)
• Since parking minimums are no longer required,
this nullifies the parking exempt district fee,
which developers paid into the past
What is AB 2097?
Assembly Bill 2097 was
signed into California state
law in Sept. 2022 and
prohibits a public agency
from imposing or enforcing
any minimum automobile
parking requirements on a
residential, commercial, or
other development project
located within one-half
mile of a major transit
stop. Parking minimums
can still be enforced for
hotels and lodging.
The City has determined
that the Soscol Gateway
Transit Center qualifies as
a major transit stop, thus
most of Downtown applies
under AB 2097 as it is
within a half-mile radius.
Final Thoughts
1. Does Council agree that Lot X and Lots A are the most viable to study for a new parking garage?
2. Staff would come back to Council with a more detailed study (next slide) of each site for recommendation.
3. At a later date, Council would need to commit to fund the garage and/or improvements to existing garages, either in the short-term up-front cost or long-term repayment of a
loan/bond.
4. Support of a private/public partnership to build a garage would enhance the likelihood and timeframe of success and would require taking the necessary actions to move forward with a private development proposal.
Recommended Action
• Adopt a resolution authorizing the parking garage feasibility study and adjusting the parking development impact fee budget by $200,000 as documented by Budget Adjustment No. 125P05
and determining that the actions authorized by this resolution are exempt from CEQA.
• Direct Staff to commence a feasibility study for one or two of the preferred sites (staff recommends Lot X and Lot A). Key elements will include:
• Site Analysis: Evaluating accessibility, compatibility with existing structures, construction feasibility, circulation concerns, and community feedback.
• Cost Estimation: Providing cost estimates, including parcel layout, materials, and construction requirements.
• Funding Options: Exploring financing mechanisms, such as public-private partnerships, EIFD financing, and state loans (e.g., IBank or CEDA).
• Community Benefits: Incorporating recommendations for ground-level commercial or art spaces, following urban design best practices to activate the area and enhance pedestrian engagement.
I submit that the city’s decision on where to site this garage will have a significant impact on the future development of downtown Napa and should be approached as a much broader urban planning decision, rather than a focused limited review of a few potentially available sites. A broader look at the Downtown Plan goals could disclose that the best strategy might be to have two smaller garages connected to residential or retail, one sited east of the Napa River and one sited west of it. Further, given the funding issues that will follow, I expect thatany garage will ultimately require a public-private endeavor similar to the garage at 5th and Main, which also should be considered during the review.
I sincerely hope that you will direct staff to broaden their thinking on this issue and come back to you with a request to fund a review that is not so limited in its scope that it only serves to confirm the biases of those involved, merely identifies the path of least resistance and provides outcomes that are far less than optimum.
Best, John Salmon
John F. Salmon
Syserco Energy Solutions, Inc. | 215 Fourier Avenue : Suite 140 | Fremont, CA 94539 Good Evening Members of the Napa City Council:
My name is Gabe Johnson and I work for an Energy Services company called Syserco Energy Solutions.
We are a Bay-Area based company with offices in Fremont and Petaluma.
The purpose of my comments is to bring to your attention an opportunity that you may want to consider taking advantage of:
We have all been feeling the pain of recent utility rate increases. I suspect that Napa’s cost of electricity and natural gas has been increasing at higher rates than budgeted, but did you know it’s about to get much worse? The California Public Utility Company’s recent SB 695 report has forecasted PG&E’s commercial rates to increase by 49% over the next 4 years! This is not good news for any of us, but the City of Napa has an opportunity to think outside of the box, and do something about it.
Instead of wasting a significant amount of money by continuing to over-pay PG&E, wouldn’t it make more sense to redirect this money back into the City’s infrastructure? Instead of sending the money to the utility company, why not send it back to the City of Napa? This is how I can help.
The majority of Cities in CA have completed SOME amount of energy conservation work, but almost none have completed ALL there is to do. The concept is simple: Cut out the remaining energy inefficiencies and leverage the realized savings to pay for the cost of the infrastructure improvements that generate the savings. This requires ZERO capital.
The City is already spending the money. But it’s all going to the utility company. Why not get something out of it? Doing this will literally save the City money AND make Napa a better place to live and work.
It’s a Win-Win for the City.
If you are interested in exploring what this opportunity looks like for your City, I am offering to provide a FREE ANALYSIS and then return to present our findings, so that you can be informed. There’s nothing to lose, and likely a lot to gain.
Please let me know if you would like me to work with City staff to provide you with this information.
I have attached a 1-page summary of the energy crisis in California, and what can be done about it.
Please review it, and I would love to hear your feedback.
Thank you for your time and consideration.
Sincerely,
Gabe Johnson
Syserco Energy Solutions, Inc.
Cell: 707-227-6377
Email: [email protected]
From: Michael Basayne
To: Scott Sedgley
Cc: Tiffany Carranza
Subject: Please Provide Consent to Renew the NVTID and Include the City of Napa Date: Tuesday, November 19, 2024 3:10:55 PM
Attachments: image002.png
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Dear Mayor Sedgely,
TID revenue is critical to the financial health of our community through destination marketing. It offers a proven process that makes good sense to fuel our economic engine, with the TOT (Transient Occupancy Tax) driving our general fund.
I recommend and request adoption of a resolution granting consent to the County of Napa to renew the Napa Valley Tourism Improvement District (NVTID) and include the City of Napa in the renewed NVTID.
Thank you for your consideration,
Mike
Michael Basayne, MBA
Lead Business Advisor
Small Business Development Center
Wine Country Planning Services
(707) 815-7042
[email protected]
SolanoNapaSBDC.org
SonomaSBDC.org
From: Mary Luros
To: Clerk
Subject: Fwd: Napa Valley Tourism Improvement District - Educational Materials Date: Tuesday, November 12, 2024 3:24:57 PM
Attachments: FY25 VNV TID vs TOT One Pager-v1.pdf
01. FAQS.pdf
Napa Valley Tourism Card10.5x6 V2.pdf
VNV Tourism Economic Profile 2023.pdf
Visit Napa Valley TID TOT Guide 2024.pdf
FY24 Marketing Communications Highlights.pdf
City of Napa VNV Marketing At A Glance FY24.pdf
Mary Luros
Councilmember, District 3
City Manager’s Office, City of Napa
PO Box 660 / 955 School Street, Napa, CA 94559
Phone(707) 258-7800 x5284
Email [email protected]
Websitewww.cityofnapa.org
Socialwww.facebook.com/CityOfNapa· @CityOfNapa
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From: Linsey Gallagher <[email protected]>
Subject: Napa Valley Tourism Improvement District - Educational Materials
Date: November 11, 2024 at 9:01:03 PM PST
To: "[email protected]" <[email protected]> [EXTERNAL]
Dear Napa City Council Member,
On Tuesday, November 19, 2024, the Napa Valley Tourism Improvement District renewal item will come before your City Council. In addition to the staff report that will be provided by the city team, we wanted to share a few additional educational materials (attached) that were created to assist the hospitality community with reinforcing the importance of renewing the Tourism Improvement District for another 10 years.
Additionally, all materials from our Visit Napa Valley FY25 annual business plan and related programming are available for viewing and download via our industry website here.
Please feel free to reach out to me with any questions at all. We would welcome the opportunity to review with you in more detail ahead of next week’s meeting.
Thank you in advance for your consideration and support.
Best,
Linsey
Linsey Gallagher · Visit Napa Valley
President and CEO
1001 Second Street, Suite 330 Napa, CA 94559
Direct: (707) 492-3099 · Mobile: (415) 609-6112
[email protected] · VisitNapaValley.com
FACEBOOK · TWITTER · INSTAGRAM · PINTEREST · BLOG
FAQs CONTINUED
Why isn’t the tourism industry contributing
to solving the affordable housing crisis in
Napa Valley?
The tourism industry generates more than $85
million in tax revenue to fund essential services and
programs throughout Napa County. Local elected
leaders decide how much of those funds are used
for affordable housing and other critical services.
Working closely with local government, the lodging
industry supported the passage of an additional 1%
to the TOT, specifically designated for workforce and
affordable housing. Since 2019, approximately $5
million has been collected for this fund annually to
support housing solutions in Napa County.
What is the tourism industry doing to give
back to our community, aside from the revenue
it generates?
The tourism industry pledged $2.5 million to
support the Napa Valley Vine Trail, a 47-mile-long
walking and biking trail system that will benefit both
residents and visitors. To date, more than $2 million
has been contributed.
Industry-wide volunteer opportunities have been
encouraged through National Travel & Tourism
Week with the Tourism Gives Back initiative. Tourism
workers throughout the county support a local
service project in an organized work party for
maximum impact.
Lodging businesses regularly support more than
80 local non-profit organizations through direct
contributions, room night donations, and volunteer
service time.
Why are we trying to attract more tourists
when Napa Valley is already so crowded?
The objective for Visit Napa Valley is to
increase tourism-related revenue through
increased visitor spending and overnight stays
in low-occupancy periods.
From 2016 to 2018, the number of visitors to Napa
Valley increased 8.9%, from 3.5 million to 3.85 million, while visitor spending increased almost twice that
amount, up 15.9%, from $1.9 billion to $2.2 billion
during that same period. (Source: Destination
Analysts Economic Impact Study) In calendar year
2023, Visit Napa Valley commissioned a new Visitor
Profile and Economic Impact Study. These results will
be released in early 2024 and will continue to inform
tourism-related decisions.
Why should we support tourism development
projects? Don’t those projects destroy our
region’s beauty and charm?
Responsible and sustainable growth and expansion
are vital to the ongoing success of our community in
Napa Valley. Lodging can only be developed where
zoning allows it and will not encroach into open
spaces and protected areas.
Lodging properties generated more than $69
million in TOT revenue in 2023. TOT Special Projects
Funds are allocated by Napa County to preserve
and protect natural landscapes through parks and
open spaces, as well as cultural arts programs and
affordable housing.
How do I keep up-to-date on what Visit Napa
Valley is doing?
Visit Napa Valley is governed by two boards of
directors – the Napa Valley Tourism Corporation
Board and the Visit Napa Valley Board. With
oversight from both boards, as well as best-inclass business audits year after year, Visit Napa Valley continues to offer transparency and visibility
into activities and operations. Bookmark www.
visitnapavalley.com/industry to find information
on the Visit Napa Valley vision, mission, and
objectives; the hospitality industry’s economic
impact; Visit Napa Valley metrics; reports, including
Monthly Activity Reports, STR Monthly Reports,
Annual Recaps, and Marketing Campaign Recaps;
toolkits to aid the local industry during crisis; and
other resources such as our brand guidelines.
Additionally, follow Visit Napa Valley on Facebook,
Instagram, Twitter(X), Pinterest, LinkedIn, and Tiktok
via @VisitNapaValley.
50 VISIT NAPA VALLEY
From: Mary Luros
To: Clerk
Cc: Steve Potter
Subject: Fwd: Calistoga - NVTID
Date: Wednesday, November 13, 2024 2:23:51 PM
Mary Luros
Councilmember, District 3
City Manager’s Office, City of Napa
PO Box 660 / 955 School Street, Napa, CA 94559
Phone(707) 258-7800 x5284
Email [email protected]
Websitewww.cityofnapa.org
Socialwww.facebook.com/CityOfNapa· @CityOfNapa
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From: Lisa Gift <[email protected]>
Subject: Calistoga - NVTID
Date: November 13, 2024 at 2:21:15 PM PST
To: "[email protected]" <[email protected]>, "[email protected]" <[email protected]>,
"[email protected]" <[email protected]>,
"[email protected]" <[email protected]>,
"[email protected]" <[email protected]>
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[EXTERNAL]
Greetings All,
I’m reaching out to inform you all that at last night’s city council meeting, the Calistoga City Council decided not to vote on the renewal of the NVTID agreement. I wanted to notify you of this decision in the hopes of making needed adjustments that serve everyone’s interests. While we are approximately six months away from the contract’s expiration, when this renewal was initially presented to us several months ago, important details —now raising significant concerns—were not fully disclosed.
Our unanimous decision was guided by specific concerns raised by our community members:
1. Proposed Increased Assessment from 2%-3%: The potential for increased assessments at the 3, 6, and 9-year intervals is a significant concern, as it would further raise costs for our guests— who are already paying some of the highest room rates in comparison to similar destinations statewide, based on data Lindsay Gallagher and her team have provided.
2. Length of Agreement: Our community is asking for a 5-year term rather than the proposed 10-year agreement.
3. Conflict of Interest: Lindsay Gallagher’s roles as President and CEO of VNV, along with her executive board seat on VNV, board seat on NVTC and NVTID, raise potential conflict-of-interest concerns. She sits on the board that approves the contract with VNV and does not recuse herself from voting on items where funding and contracts are involved. This gives the impression of a conflict in overseeing the services her company provides.
4. Fair Share of Marketing: There is limited tangible data provided to clarify the allocation of the marketing spend.The only concrete numbers we have been “told” exist relate to spending on paid advertising.
Given these concerns, we decided to hold off on voting on the agreement, with the hope that necessary adjustments can be made to better address our community’s needs. While VNV reports having 65% support from Calistoga hoteliers and over 60% county wide, we recognize that this vote is weighted and doesn’t fully represent the wishes of our broader hotel community. We also did not have one hotel owner from Calistoga speak out in support of renewing the NVTID under the current terms.
We greatly value the benefits VNV provides and want to remain a part of the NVTID. However, as the agreement currently stands, our community is asking for these concerns to be addressed.
Best regards,
Lisa Gift
Calistoga City Council
From: Michael Collins
To: Scott Sedgley
Cc: Tiffany Carranza
Subject: Renewal of the Napa Valley Tourism Improvement District (NVTID) Date: Monday, November 18, 2024 3:18:18 PM
You don't often get email from [email protected]. Learn why this is important [EXTERNAL]
Good afternoon, Mayor Sedgley.
I write to you today to express my enthusiastic support for the resolution granting consent to the County of Napa to renew the Napa Valley Tourism Improvement District (NVTID) and to include the City of Napa in this renewed district.
As the Chair of the City of Napa Tourism Improvement District (TID), I have had the privilege of witnessing the positive impact of grant approvals on organizations that truly benefit our community.
These grants play a vital role in supporting initiatives that align with our shared goal of driving overnight visits to Napa, thereby bolstering the city’s economic vitality and tourism industry.
My best,
Michael
Archer Hotel Napa
Michael Collins / General Manager
1230 First Street / Napa, CA 94559
phone /
707.819.2600
mobile /
310.977.3586
archerhotel.com
From: Ken Frank
To: Tiffany Carranza
Subject: My support of TID renewal
Date: Monday, November 18, 2024 3:21:43 PM
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Tiffany,
Please add me to the list of constituents that support the renewal of the NVTID. I cannot be there in person tomorrow, as I am catering a dinner in St Helena, but I want to be sure and register my support of this simple but very important matter. I will not go into detail and list the benefits, we all know them, and they are significant. Our city is blessed to be a world class destination. Visitors support our thriving economy and renewing the TID is crucial to our continuing success.
I urge all members of our City Council to vote to renew our support.
Thank you
Ken Frank
La Toque Restaurant
From: Mary Luros
To: Clerk
Subject: Fwd: your vote is needed
Date: Monday, November 18, 2024 4:02:11 PM
Attachments: image001.png
image002.png
Mary Luros
Councilmember, District 3
City Manager’s Office, City of Napa
PO Box 660 / 955 School Street, Napa, CA 94559
Phone(707) 258-7800 x5284
Email [email protected]
Websitewww.cityofnapa.org
Socialwww.facebook.com/CityOfNapa· @CityOfNapa
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From: Max Compagnon <[email protected]>
Subject: your vote is needed
Date: November 18, 2024 at 2:59:13 PM PST
To: "[email protected]" <[email protected]>
You don't often get email from [email protected]. Learn why this is important [EXTERNAL]
Dear Councilmember Luros ,
I am writing to you to confirm the need to renew the Tourism improvement District plan as proposed during your Council.
When created a long time ago, the small group of business and city officials were visionaries: not many TID existing at the time, it was almost cutting edge.
Now most tourist friendly area have such a mechanism, self-assessed by business in order to promote the area they work and live it. A healthy hotel and tourism industry also promote larger Transient Occupancy Taxes which support in broader and more general terms the residents lifestyle and amenities. Not having a TID would put Napa Valley at risk as all our competitors have such a marketing engine to promote their region.
I am on the board of the NVTC and really hope you will support this effort. I am available if you have any questions.
MAXENCE COMPAGNON
Managing Director
[email protected] |707-944-2468
2230 Madison Street, Yountville, CA 94599
napavalleylodge.com
From: George Nielson
To: Tiffany Carranza
Subject: NVTID Renewal
Date: Monday, November 18, 2024 7:06:59 PM
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Tiffany,
I have sent the simple email below to all of our Council Members to consider voting to support the renewal of this valuable tool for the citizens of Napa! Thank you,
George
Please consider the renewal of the NVTID as this is an important revenue input for the City of Napa. With the approval of 73% of the lodging businesses valley wide, it is evident this is a win/win for all of us!
Thank you,
George Nielson
Napa Chamber of Commerce
From: Benjamin Horne
To: Bernie Narvaez; Scott Sedgley
Cc: Tiffany Carranza
Subject: Please Renew the Napa Valley TID
Date: Tuesday, November 19, 2024 6:57:16 AM
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[EXTERNAL]
Dear Mayor Sedgley and Councilman Narvaez,
As you know tourism is essential to the economy of Napa bringing $2.7 billion dollars to the economy annually. The Napa Valley Tourism Improvement District (TID) boosts visitation to Napa Valley which leads to additional Transient Occupancy Taxes, and other taxes generating $108 million in tax revenue each year. In addition, the tourism economy supports 16,000 jobs in the community.
As a resident of downtown Napa, I see tremendous direct benefits that the tourism industry has on my neighborhood (including several Bed & Breakfasts/Hotels that are within a block or two of my home). The tourism economy also directly benefits some of my non-profit clients that operate retail businesses or fundraise in the downtown as part of their mission.
Finally, as someone that has worked in community and economic development for past the 15 years in San Franciso for the Union Square Business Improvement District, I have firsthand seen the benefits that TIDs (having worked closely with San Francisco Travel) have on the community and the tourism industry. I wholeheartedly support them and their missions.
Therefore, I encourage you to support the renewal of the Napa Valley Tourism Improvement District and vote yes.
Thank you for your consideration and continued support.
Sincerely,
Ben
Benjamin Horne
HORNE SERVICES
418 Brown Street
Napa, CA 94559
T. 415.377.4921
E. [email protected]