TO: Napa County Climate Action Committee
FROM: Brian D. Bordona, Director of Napa County Planning, Building & Environmental Services
REPORT BY: Jesse Gutiérrez, Principal Planner, Sustainability
SUBJECT: Discussion and Possible Action: CAC Proposed Budget for Fiscal Year 2025-2026
RECOMMENDATION
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DISCUSSION AND POSSIBLE ACTION: FISCAL IMPACT - CLIMATE ACTION COMMITTEE PROPOSED BUDGET FOR FISCAL YEAR 2025-2026.
STAFF REQUEST: Continue discussion and vote to adopt the CAC proposed budget for Fiscal Year 2025-2026 of $664,898 (which includes placeholder funding for environmental review of the RCAAP).
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ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California
Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.
BACKGROUND AND DISCUSSION
On January 24, 2025, the Climate Action Committee (CAC) discussed priorities for the upcoming fiscal year and directed staff to prioritize the completion of the Regional Climate Action and Adaptation Plan (RCAAP) for Fiscal Year 2025-2026 (FY25/26).
At the February 28 CAC meeting, staff presented the proposed budget for FY25/26. After brief discussion, the CAC requested a more detailed breakdown of tasks to substantiate the increase in the staffing budget compared to previous years. Staff also requested the CAC share the draft budget with their respective jurisdictions for in-depth discussions with their respective staff, agency leadership, and elected officials. Based on this direction, County staff developed a draft budget for FY25/26 to support the completion of the RCAAP and administer and support related project activities. Staff requests that the CAC continue the discussion and vote to adopt the FY25/26 budget presented herein (attached).
The proposed budget for FY25/26 is $664,898. This includes $163,498 in County staff costs, which is a 20% ($42,769) decrease from the original staff time cost estimate presented at the February 28th CAC meeting. The budget was decreased to help alleviate municipal budget concerns. In addition to staff costs, the proposed budget estimate includes $15,600 for legal support to review the administrative, screen check, and final drafts of the RCAAP, $10,000 for continued support by Ari Ball-Burack of the EV Charging Equity Tool, and $9,000 for the Napa Climate Challenge. The proposed budget includes a placeholder amount of $400,000 for the preparation of an environmental review document for the RCAAP and a placeholder for $66,800 in counsel support for review of all necessary California Environmental Quality Act (CEQA) documents for the environmental review of the RCAAP.
For the purposes of this proposed budget, the highest anticipated cost for an environmental review of the RCAAP has been used as a placeholder. Staff have postponed any decision about a CEQA approach to allow the CAC members more time to consider the environmental review options presented and to have discussions with the staff identified to participate in the internal administrative staff level review of the Administrative Draft of the RCAAP, which is expected in spring 2025. CAC member jurisdictions will only be charged for the actual cost of the CEQA approach taken, not to exceed the placeholder estimate provided herein. In the unlikely event the cost of environmental review is higher than the placeholder amount, County staff would return to the CAC to request their approval of a budget amendment before any money more than the placeholder is spent.
NAPA COUNTY STAFF TIME AND RESOURCES
The proposed FY25/26 budget includes an estimate of staff time needed to administer the completion of the RCAAP, managing the start and development of the CEQA environmental review for the RCAAP, the development of options for a potential organizational update for the CAC structure as implementation of the RCAAP draws closer (as requested), the formation of a regional inter-jurisdiction staff level working group to develop an implementation framework and prioritize the measures in the RCAAP, and administration of the CAC and supporting tasks.
As the CAC has evolved over time and with the undertaking of the RCAAP, County staff responsibilities have increased. County staff tasks related to the development of the RCAAP include biweekly coordination meetings with the consultant team, biweekly internal coordination between County and City staff, reviews of technical documents and memoranda, consolidation of staff comments and input, requests for information from agency partners, preparation of staff reports summarizing the technical documents, and presentation of those staff reports to the CAC.
Work on the RCAAP has been significant and the role of Principal Planner, Sustainability was added to provide staff support with the ability to dedicate a significant percentage of their time to the CAC, RCAAP development and implementation, and climate and sustainability-related projects, tasks, and activities.
As requested by the CAC, County staff time has been broken down by task and subtask. The total hours are presented as monthly and annual totals for the anticipated duration of the major tasks, e.g., completion of the RCAAP. The hours have been segmented by County staff position with total costs calculated for each major task and for all tasks. This information can be found in Napa County Staff Time - Hours Breakdown by 4 Major Tasks, which is an attachment to this agenda item.
The quoted staff hourly rates are weighted labor rates provided by the County Auditor for FY 25/26. Rates may change depending on contract negotiations.
Table 1: Napa County Staff Time and Cost
*total costs have been rounded to whole numbers
HISTORY OF NAPA COUNTY STAFF SUPPORT OVER THE YEARS
As mentioned above, Napa County Staff responsibilities, as the administrative team for the CAC, have evolved and increased over time. In the Joint Powers Agreement (JPA) Exhibit A, the County was designated as the lead agency responsible for administering the Climate Action Plan and for staffing and supporting the CAC. Staffing services to the CAC included agenda creation, staff report development, monthly CAC meeting staff support, administration of the Bay Area Air Quality Management District (BAAQMD) grant; contracting and management of the consultant hired to prepare the greenhouse gas inventory pursuant to the grant; coordinating the Parties’ staff working group; drafting CAC bylaws; and other administrative support. That initial year, FY21/22, the estimated total amount for County Staff time was $59,080. That included 224 hours for an Environmental Resource Specialist, 112 hours for Director of Planning, Building, and Environmental Services Department, and 56 hours of Deputy County Counsel IV.
In FY22/23 in addition to administering and staffing the CAC and continuing the administration of the BAAQMD grant, three tasks were proposed in support of the committee’s mission -1) EV Charging Station Blueprint to evaluate constraints and opportunities to accelerate EV adoption and increase EV charging stations; 2) Streamline Solar Permits through the adoption of SolarAPP+; 3) Develop a program to achieve 90% waste diversion by 2030. County Staff time proposed was 224 hours for Planner III Sustainability, 112 hours for Director of Planning, Building, and Environmental Services Department, and 56 hours of Deputy County Counsel IV for a total of $63,560. Additionally, $50,000-75,000 in consultant costs for the EV Charging Stations task was included in the total proposed budget range of $113,560-$138,560.
In FY23/24 County Staff saw a significant increase in responsibilities in addition to administering the CAC. From the budget memo dated May 26, 2023 to the Climate Action Committee: “Due to staffing changes, the additional time needed to complete the Regional Greenhouse Gas Inventory and supplemental memos, onboarding new CAC members, and the interest in a Regional Climate Action Plan, there was not significant progress on the first three priorities from FY22/23, and they are proposed to carry forward into FY23/24.” The launch of the RCAAP was listed as a priority for FY23/24 with associated costs ranging between $200,000-$500,000. A grant proposal for $595,500 was submitted to the California Governor’s Office of Planning and Research (now the Office of Land Use and Climate Innovation). That grant would have covered the RCAAP plan preparation only and not the CEQA environmental review. In addition, a state budget request was submitted, which would have been used to cover the costs of the CEQA environmental review of the RCAAP. County staff time proposed for FY23/24 was 336 hours for Planner III (a 50% increase in time from FY22/23), 112 hours for Director of Planning, Building, and Environmental Services Department, and 56 hours of Deputy County Counsel IV for a total of $52,052. (Note: although the hours for the Planner III increased, the total cost dropped due to an adjustment in weighted labor rates. For FY 22/23 the labor rate was $110/hour. For FY23/24 they were listed at $66/hour). The total estimated amount for consultant costs for FY22/23 was $300,000-$775,000. The proposed budget listed a low and high range from $402,252 - $802,252.
In FY24/25 County Staff presented a proposed budget with an initial staff cost estimate of $83,734. After discussions at the CAC meeting on January 26, 2024, the CAC requested an increase in staff time dedicated to CAC projects to ensure the projects were accomplished with the range and speed desired. That update in staff time increased the staff cost estimate to $126,504, a 51% increase. Additionally, per the staff report following the meeting dated January 30, 2024, “the CAC also asked that County staff be made available for at cost reimbursement to supplement city staff on an as needed basis for climate and sustainability related tasks. The most notable increase in time was for the Planner II position which had an initial allocation of 520 hours and was increased to 1114 hours, a 114% increase. While previous fiscal year proposed budgets had three staff supporting the CAC, FY24/25 saw the addition of the Natural Resources Manager and Director of Special Projects as a result of David Morrison’s role ending in September 2024. The staff report also points out that “assuming that the RCAAP is adopted in late 2024, there will likely be additional staff work needed to begin implementation of the plan in 2025.” The bulk of the RCAAP work was to take place in FY24/25. While the grant request from the Office of Planning and Research did not materialize, a state allocation of $500,000 was sponsored by former Senator Bill Dodd and that State money eased the cost burden of the CAC member jurisdictions. In addition to the RCAAP work continued on the EV Charging priority with a final tool demonstration to the CAC and staff training on February 28, 2025. Total estimated costs for FY24/25 were $272,963, which included $126,504 in staff costs, $50,000 for the EV Charging priority project, $9,000 for the Napa Climate Challenge, and $87,459 for costs associated with the development of the RCAAP not covered by the State funding.
REGIONAL CLIMATE ACTION AND ADAPTATION PLAN (RCAAP)
The RCAAP is expected to be completed and considered for adoption by the CAC member jurisdictions during FY25/26. The CEQA environmental review for the RCAAP could take between 6-18 months to complete depending on the required CEQA document type, level of engagement, and depth of analysis.
Once adopted, the implementation of the RCAAP will require the establishment of clear lines of communication between all participating jurisdictions at the staff level. The CAC and supporting County staff can bolster jurisdictional resources for tasks, but it will be imperative to have jurisdictional agency staff coordinating and communicating directly with their elected officials, executive staff, and jurisdictional departments. The RCAAP point(s) of contact within each jurisdiction will have a more direct understanding of their jurisdiction and community needs and priorities.
For these reasons, staff recommends the formation of an RCAAP inter-jurisdiction staff-level working group to collaborate on adoption and implementation of the RCAAP. The first meeting of the working group was held on April 15th. The working group will assist in developing an implementation framework for the RCAAP, prioritizing the measures and actions for each jurisdiction taking into account local needs, optimizing shared resources, and collaborating on funding strategies, etc.
Costs for the RCAAP have been spread across several fiscal years and covered both by State funding and member jurisdictions. According to January 30, 2024, budget memo for the CAC, $500,000 of the total contract cost ($599,660) will be covered by a state allocation of funds sponsored by former Senator Bill Dodd. The bulk of the RCAAP costs will occur within FY24/25. A portion of the state funds were allocated to early work on the RCAAP during FY23/24. The remainder of the RCAAP costs not covered by state funds are to be covered by member jurisdictions. Noted in the staff report was that the cost of preparing a “substantive CEQA document for the RCAAP” was not included in the budget for FY24/25.
ENVIRONMENTAL REVIEW APPROACH FOR THE RCAAP
The CAC members representing the six jurisdictions in the Joint Powers Agreement (JPA) have discussed over the past several years the need for a CEQA-qualified RCAAP and GHG reduction plan.
At the February 28 CAC meeting Ascent Environmental presented the CEQA Approach Memorandum (CEQA Memo) for the RCAAP. The presentation provided an overview and summary of several types of environmental analysis documents which are described in greater detail in the CEQA Memo. The presentation consisted of describing the requirements for environmental review, Green House Gas emissions evaluations and streamlining benefits for future projects, an overview of options for an environmental review approach, additional considerations, and a recommended option. Presenters from Ascent emphasized the importance of continued cooperation by CAC member jurisdictions.
Based on the discussion at the February 28 CAC meeting a decision on the type of environmental review for the RCAAP has been put on hold. CAC members will identify staff from their respective jurisdictional departments and agencies to participate in the internal administrative staff level review of the Administrative Draft of the RCAAP in spring 2025. CAC members should continue to hold discussions with their respective jurisdiction agencies and departmental staff, particularly those who will participate in the internal staff level review the Administrative Draft, to get a better sense of what is in the RCAAP and to consider the benefits of an environmental review. The “public” draft of the RCAAP is expected to be ready in summer 2025.
PROPOSED FY25/26 BUDGET
The estimated proposed budget amount for FY25/26 is $664,898. This includes $163,498 in estimated County staff costs, which is a 20% ($42,769) decrease in the original staff time cost estimate presented at the February 28th CAC meeting. The budget was decreased to alleviate municipal budget concerns. In addition to staff costs, the proposed budget estimate includes $15,600 for legal support to review the administrative, screen check, and final drafts of the RCAAP, $10,000 for continued support by Ari Ball-Burack of the EV Charging Equity Tool, and $9,000 for the Napa Climate Challenge. The proposed budget total includes a placeholder amount of $400,000 for the preparation of the environmental review document for the RCAAP and a placeholder for $66,800 in requested counsel support for review of all necessary California Environmental Quality Act (CEQA) documents for the environmental review of the RCAAP.
Table 2: Climate Action Committee FY25/26 Proposed Budget
COST-SHARE
Under the Joint Powers Agreement, the County contributes 33.0% of the actual costs of the CAC Program Administration costs, from the PBES budget. The cities and town each reimburse the County for the remaining Program Administration, according to a formula that allocates costs based on fifty percent (50%) equal shares and fifty percent (50%) proportional share of population exclusive of the unincorporated area population, more specifically as follows:
American Canyon: 12.8%
Calistoga: 8.3%
Napa: 29.9%
St. Helena: 8.5%
Yountville: 7.5%
The allocation among the member jurisdictions would be as follows:
Table 3: Climate Action Committee FY25/26 Proposed Budget Breakdown by Jurisdiction
*total costs have been rounded to whole numbers
In accordance with Section 7(a) of the Joint Powers Agreement, the Administering Agency will provide the Estimated Amount (aka Draft Budget) for FY25/26 to all Parties at the February 2025 meeting.
County staff time for the implementation of actions in the RCAAP affecting only Napa County jurisdiction will not be billed to the member jurisdictions. If the CAC directs additional actions or efforts beyond the scope of the proposed budget, the budget may be amended with the approval of all Parties.