TO: Board of Supervisors
FROM: Steven Lederer, Director of Public Works
REPORT BY: Kelli Remboldt, Staff Services Analyst I
SUBJECT: Adoption of a Resolution Authorizing the Transfer of Funds to Lake Berryessa Concessions
RECOMMENDATION
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Adopt a Resolution authorizing the transfer of $250,000 from the General Fund to the Lake Berryessa Concessions funds to pay for County expenses until the Lake Berryessa resorts are operating and generating revenue. (Fiscal Impact: $250,000 Expense; General Fund; Budgeted; Discretionary)
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BACKGROUND
In March 2020, the federal Bureau of Reclamation (BOR) and the County entered into Managing Partner Agreement No. 20-LC-20-2623 (Napa County Agreement No. 200285B), for the administration, operation, maintenance and development of up to 7 public recreation facilities at Lake Berryessa. The County is currently pursuing development of concessions and related recreational opportunities at 4 of the 7 sites.
The Concessions Manager position and associated costs were a part of the County Executive Office Budget. Starting Fiscal Year 2023-2024, this division became part of the Public Works Department, and a new fund was created for the operation of Lake Berryessa Concessions. This fund is intended to be self-sustaining, eventually funded solely by revenue generated by the development and operation of concessions at Lake Berryessa. Until the concession areas are developed, opened to the public and generating revenue, efforts to bring concessions and related recreational opportunities to Lake Berryessa must be funded in part by the County. The BOR is currently reimbursing the County for 50% of the County’s “operational deficit” at Lake Berryessa, which is the difference between revenue received by the County and the costs and expenses incurred in developing and managing concessions.
Per the terms of the Managing Partner Agreement between the BOR and the County, BOR will provide financial assistance for the first five years. Fiscal year 2025-26 is the fifth and final year of BOR’s financial commitment.
Because the Lake Berryessa Concessions Fund needs sufficient cash to operate, a transfer from the General Fund is requested in the amount of $250,000. The intent is for Lake Berryessa Concession to reimburse the General Fund once concessions at Lake Berryessa are generating revenue and there is sufficient cash in the Lake Berryessa Concessions Fund to make the repayment.
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? |
It is included in the Recommended Fiscal Year 2025-2026 Budget in both General Fund Non-Departmental 1050000 and Lake Berryessa Concessions 5080000, pending budget adoption on 6/24/25. |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Requested approval is necessary for Lake Berryessa Concession to have enough cash to operate. |
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Is the general fund affected? |
Yes |
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Future fiscal impact: |
The intent is for Lake Berryessa Concession to reimburse the General Fund once concessions at Lake Berryessa are generating revenue and there is sufficient cash in the Lake Berryessa Concessions Fund to make the repayment. |
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Consequences if not approved: |
The Lake Berryessa Concessions Fund will not have sufficient cash to operate. |
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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.