TO: Board of Supervisors
FROM: Steve Lederer - Director of Public Works
REPORT BY: Leigh Sears - Lake Berryessa Concessions Manager
SUBJECT: Approval of Budget Amendment and establishment of Capital Assets related to Lake Berryessa resort areas
RECOMMENDATION
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Director of Public Works requests approval of a Budget Amendment increasing Depreciation Expenses appropriations by $10,000 and Equipment appropriations by $33,875 in the Lake Berryessa Concessions budget (Fund 5080, Sub-Division 5080000, Accounts 54600 and 55400) with offsetting decrease to Fleet Charges appropriations within the same budget (Fund 5080, Sub-Division 5080000, Account 52906) and establishment of Capital Assets for the following (4/5 vote required):
a. $22,048 for 2020 Coleman Travel Trailer;
b. $20,916 for 2019 Keystone Hideout Travel Trailer;
c. $10,901 for 2022 John Deer Gator;
d. $10,901 for 2022 John Deer Gator;
e. $13,000 for GMC 1 Ton (2003) including Water Spray System; and
f. $20,529 for New Dock + Gangway + Cleats and attachments.
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EXECUTIVE SUMMARY
Sun Lake Berryessa LLC (SUN) recently declined to further pursue development of three resort areas at Lake Berryessa. SUN was operating two of the sites, Steele Canyon and Spanish Flat, on an interim basis since December 2021. SUN transferred operation of the sites on November 1, 2023, to new concessionaires who were involved in the operation of the sites under SUN. SUN has agreed to sell the equipment it purchased to operate the sites to the County for a total cost of $50,000, substantially below market value. The purchase is within the County Executive Officer’s authority, but the County must capitalize some of the assets at market value. The requested action today is for the Board to approve a Budget Amendment necessary to make the purchase, and establish the assets listed in the Recommendation section as Capital Assets.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
Yes |
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Where is it budgeted? |
Fund 5080, Sub-Division 5080000, Lake Berryessa Concessions budget |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Purchase of these equipment are necessary for the continued operation at Steele Canyon and Spanish Flat sites. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
Depreciation cost will be included in the future budgets. |
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Consequences if not approved: |
The County will need to purchase replacement equipment elsewhere at higher prices. |
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County Strategic Plan pillar addressed: |
Healthy, Safe, and Welcoming Place to Live, Work, and Visit |
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ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: This activity is categorically exempt from the California Environmental Quality Act as the operation of existing facilities involving negligible or no expansion of existing or former use, pursuant to CEQA Guidelines section 15301.
BACKGROUND AND DISCUSSION
In March 2020, the federal Bureau of Reclamation (BOR) and the County entered Managing Partner Agreement Number 20-LC-20-2623 (Napa County Agreement No. 200285B), for the administration, operation, maintenance and development of public recreation facilities at Lake Berryessa. In October 2021, the County entered into an Exclusive Negotiation Agreement with Sun Lake Berryessa LLC (SUN) for resort concession areas at Steele Canyon, Spanish Flat, and Monticello Shores.
SUN recently declined to further pursue development of the three resort areas. SUN was operating two of the sites, Steele Canyon and Spanish Flat, on an interim basis since December 2021. SUN transferred operation of the sites on November 1, 2023, to new concessionaires who were involved in the operation of the sites under SUN. SUN has agreed to sell the equipment it purchased to operate the sites to the County for a total cost of $50,000, substantially below market value. The equipment is needed to continue operation of these two sites until at such time that a long-term concessionaire takes over.
SUN has agreed to sell the equipment listed below for a total of $50,000, which is substantially below the estimated market values included in parenthesis. The purchase (bill of sale) is within the County Executive Officer’s authority, but the County must capitalize some of the assets at market value. The valuation for the capital assets needs to be done at the actual estimated value, even though the sale price is less. The requested action today is for the Board to approve a Budget Amendment necessary to make the purchase, and establish the assets listed in the Recommendation section above as Capital Assets.
Steele Canyon:
2020 Coleman Travel Trailer ($22,048)
2019 Keystone Hideout Travel Trailer ($20,916)
2022 John Deere Gator ($10,901)
Connex Storage Container-20 ft ($4,634)
Equipment and Tolls (chipper, chainsaw, tools, etc.) ($12,000)
7 Trash/7 Recycling Bins ($9,800)
Ice Machine ($900)
Dog Stations-7 ($2,800)
Spanish Flat:
2022 John Deere Gator ($10,901)
2008 Ford Pickup ($4,500)
Ice Machine ($900)
Connex Storage Container ($3,000)
GMC 1 Ton (2003), including water spray system ($13,000)
Launch Pads-wire & cables ($5,000)
2007 Kubota ATV ($3,000)
5 Trash/5 Recycling Bins ($7,000)
Dog Stations-5 ($2,000)
Tuff Shed Gate House ($2,500)
New Dock + Gong way + Cleats and attachments ($20,529)