TO: Board of Supervisors
FROM: Steven Lederer, Director of Public Works
REPORT BY: Leigh Sears, Concessions Manager
SUBJECT: Renewal of Interim Concession Contract for Steele Canyon Resort Area
RECOMMENDATION
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Approve and authorize Amendment No. 1 to Agreement No. 240192B with Steele Canyon Campground Inc., for continued operation of the Steele Canyon Resort Area at Lake Berryessa until October 31, 2026, with an option to renew for one additional year. (Fiscal Impact: revenue estimated at $20,000 per year; Lake Berryessa Concessions Fund; Budgeted; Discretionary)
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BACKGROUND
The United States Bureau of Reclamation (BOR) and the County entered into Managing Agreement Number 20-LC-20-2623 (Napa County Agreement No. 200285B) dated March 9, 2020, for the administration, operation, maintenance and development of public recreation facilities at Lake Berryessa. Since October 31, 2023, the Steele Canyon recreation area has been operating under an interim concession contract (Agreement No. 240192B) with Steele Canyon Campground Inc. Steele Canyon Campground Inc. is managed by Joseph (Rocky) Costanzo, a resident of Berryessa Highlands. The concession contract is “interim” because the Steele Canyon recreation area is under an Exclusive Negotiation Agreement between the County and WhiTim Napa LLC for potential development and long-term operation, which could result in turning the site over to a new operator.
The interim concession contract for the Steele Canyon recreation area expires on October 31, 2025. This proposed amendment will extend the contract until October 31, 2026, with an option for County staff to renew the contract for one additional year, until October 31, 2027. The other terms of the interim concession contract will remain the same, including the County receiving 3% of the gross revenue from operating the site. The County’s share amounts to about $20,000 per year. The amendment will also clarify that any employees living on site must leave promptly after the interim concession contract ends in accordance with BOR regulations.
Requested Action:
Approve and authorize Amendment No. 1 to Agreement No. 240192B with Steele Canyon Campground Inc.
FISCAL 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? |
Lake Berryessa Concessions Fund |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
County agreed with Bureau of Reclamation to operate resort areas at Lake Berryessa. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
County will receive 3% of gross revenue generated from operating the resort area, or about $20,000 per year. |
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Consequences if not approved: |
County will need to close the resort area or find a new operator for the site. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is categorically exempt from the California Environmental Quality Act under CEQA Guidelines section 15301, as the operation of existing public facilities involving negligible or no expansion of existing or former use.