Town of Yountville
Staff Report
6550 Yount Street
Yountville, CA 94599
Agenda Item #: 8I
Yountville Town Council Staff Report
DATE: August 19, 2025
TO: Mayor and Town Council
FROM: Rosalba Ramirez, Deputy Public Works Director
PREPARED BY: Rosalba Ramirez, Deputy Public Works Director
RECOMMENDATION
Adopt Resolution Number 25-4386 approving the Measure U Master Agreement between the Town of Yountville and the Napa Valley Transportation Authority – Tax Agency (NVTA-TA) for the funding of local streets and roads maintenance by extension of existing half cent sales tax to the new Measure U fund.
DISCUSSION/BACKGROUND
On November 5, 2024, the voters of Napa County approved a ½-cent sales tax Napa Valley Transportation Improvement Act, also known as Measure U, which continues a half cent transaction and use (sales) tax to provide supplemental funding for roads previously known as Measure T. The Measure U County-wide sales tax began July 1, 2025, implemented by the Napa Valley Transportation Authority – Taxing Agency (“NVTA-TA”), with the proceeds to be allocated among all local agencies within the County.
Measure U extends the Measure T ½ cent sales tax for 30 years until June 30, 2055. This measure provides a dedicated funding source for local streets and roads maintenance, active transportation projects, and regional highway improvements. It can only be used for maintenance, reconstruction, and/or rehabilitation of streets, roads, and transportation infrastructure within the public right-of-way including but not limited to: sidewalks, curbs, gutters, curb ramps, lighting, traffic signage, striping, and local roadway drainage.
A new component of Measure U is the use of “flex funds.” Up to five percent (5%) of allocations distributed to each agency may be used on other transportation projects including roadway capacity projects (herein referred to as “5% Flex Funds”). The 5% Flex Funds is over the life of the Ordinance and will include all debt issuance costs associated with projects funded with the 5% Flex Funds.
The Town’s Measure U 5-Year CIP list was adopted by the Town Council on May 6, 2025. Similar to the previous Measure T 5-year plans, the goal of the plan is to address the streets with the lowest Pavement Condition Index (PCI) rating first. This will raise the overall quality of the streets throughout the Town. At this point, the Town will continue with the “pay as we go” model which has successfully delivered the stellar pavement condition index.
In February, NVTA formed a Measure U working group including selected staff from each jurisdiction to review the draft. Since that meeting, feedback from legal counsel, Public Works Directors, and Finance Directors has been incorporated. In May, NVTA retained Stradling, LLC as bond counsel to review the Agreement and ensure compliance with legal and tax requirements for potential bond issuance. Their comments have been incorporated into the Agreement. NVTA has prepared a Master Agreement outlining the terms for fund allocation, project eligibility, reporting, and compliance, and distribution requirements.
The Master Agreement includes:
- Distribution Formula: Based on average sales tax generation and lane miles (for the County), recalculated every five years.
- Maintenance of Effort: Requires jurisdictions to maintain spending at 20% of prior-year revenue levels. - 7% Active Transportation Requirement: Equivalent fund commitment for bike and pedestrian infrastructure. - 5% Flex Fund Allowance: For broader transportation investments over the life of the measure. - Distribution of Funds: The methodology to distribute Measure U receipts. - Project Programming, Reporting and Compliance: Includes biennial five-year project lists, semi-annual progress reports, financial audits, and signage requirements, etc.
Execution of this Agreement is required for each jurisdiction to begin receiving Measure U funds in FY 2025–
26. Staff respectfully requests adoption of Resolution No 25-4386 approving the Measure U Master Agreement between the Town of Yountville and the Napa Valley Transportation Authority – Tax Agency (NVTA-TA).
ENVIRONMENTAL REVIEW
Exempt per California Environmental Act (CEQA) Guideline, Section 15061(b)(3).
FISCAL IMPACT
Is there a Fiscal Impact? Yes
Is it Currently Budgeted? Yes
Where is it Budgeted? 25-6000-5400
Is it Mandatory or Discretionary? Mandatory
Is there a Staff Resource Impact? Nominal
STRATEGIC PLAN GOAL
Is item Identified in Strategic Plan? Yes
If yes, Identify Strategic Goal and Objective. Quality of Life: The Town enhances the livability of Yountville by providing well-maintained public facilities, parks, and trails, and quality programs and events. Responsible Fiscal Policy: The Town maintains its fiscal health through policies designed to maximize economic opportunities, manage expenses, and ensure prudent reserves.
Briefly Explain Relationship to Strategic Plan Goal and Objective. Approving this agreement will use available tax measure funds to maintain the Town’s roads to the highest standard ensures the Town’s citizens enjoy well maintained infrastructure. Following the Measure U fiscal processes to receive the funds is responsible fiscal policy.
ATTACHMENTS
1. Resolution No 25-4386
2. Master Agreement