Fairgrounds Finances Under Fire as Council Names Permanent City Manager

Calistoga's fairgrounds cost about $1.45M to run last year against roughly $759,000 in earned revenue, and Monday's report turned into a nearly two-hour reckoning over missing financials and a missing plan. The City Council took no action on the fairgrounds. It did hire Mitchell Celaya III as permanent city manager, and his first assignment on the record was a pledge to open the books.

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• Fairgrounds report shows $1.45M in expenses against $759,000 in earned revenue. Staff pledged quarterly financials.
• Mitchell Celaya III appointed city manager at $300,000 a year on a three-year contract.
• Foothill Boulevard speed outreach to Caltrans approved 4-1. An e-bike safety program passed 5-0.
• Council eyes Measure D to clear the 19-household waitlist for water bill relief.

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Fairgrounds Report Exposes a Books-and-Plan Gap

Fairgrounds Revitalization Director Shelley Wright presented unaudited fiscal 2025-26 figures. The site earned $759,183.13 in revenue and spent $1,453,615.78. City fund transfers of $838,392 covered the gap.

Why it matters: The city contributes roughly $700,000 a year from its general fund to the roughly 70-acre site. Voters rejected the Measure E bond by 68% in March 2023, so how the council plans for and pays for the property will shape city finances.

Where things stand: Revenue came mostly from three sources:

• The RV park brought in $241,037.36.
• Event rentals brought in $269,797.91, including a one-time $112,000 Pickett Fire CDF rental.
• Long-term leases brought in $162,782.25.

Wright said a mid-year switch to Tyler software complicated record-keeping. She reported two gains. The sprint car contract delivered $250,000 in in-kind grandstand repairs, and a leak repair cut monthly water bills from about $8,500 to $3,500.

Large costs are still pending. The Butler Building needs roughly $250,000 in HVAC work plus mold testing. The Brightview landscaping contract still stands at about $170,000 a year, according to Director Raynor. Bringing that work in-house would take roughly $500,000 in equipment and four staff.

The other side: Vice Mayor Lisa Gift noted that the council-approved Fairgrounds Advisory Committee work plan called for a consultant-led plan. "Continuing to commit public money without a clear plan or accountability for carrying out the approved work plan that was supposed to be being overseen by our staff is not fiscally responsible," she said.

Public commenters split into two camps. Tim Riley cited a reserve study projecting at least $43M in capital costs. "After more than 24 months of ownership, the city has yet to begin a comprehensive planning process," he said. Doug Hitt posed a blunt question: "what is this property supposed to be — profitable, break-even, or carried by the general fund forever." Pat Merchant asked for a true profit-and-loss statement broken out event by event.

Preservationists, including Carrie Abreu, Wyatt Ferris and Cindy Yount, praised Wright and urged the council to prioritize historic uses over a tear-down master plan. "It is not Pebble Beach. It is Calistoga," said Sally Houck.

Decisions and stakeholder impacts: City Manager Mitchell Celaya III acknowledged the reporting gap. "I take responsibility. That's probably a misstep," he said. He committed to posting operational budgets, revenue summaries and project costs, along with quarterly, mid-year and year-end reports. Mayor Donald Williams asked for a standard P&L format.

Council members split on financial expectations. Councilmember Kevin Eisenberg set the bar at break-even: "I don't insist that the fairgrounds make money. I want the fairgrounds to break even." Councilmember Scott Cooper said he expects the site to run a deficit for a while.

What's next: Williams pointed to an upcoming planner proposal and pending golf course and speedway RFPs. He called RV park investment the best near-term return.

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Caltrans Gets the Call on Foothill Speeds

The council voted 4-1 to have staff coordinate with Caltrans on a 25 mph limit for Foothill Boulevard. It voted 5-0 to add an e-bike and scooter safety awareness program to the Active Transportation Advisory Committee's (ATAC) 2026 work plan.

The basics: "Foothill Boulevard is part of the state highway network, so it's outside of the city's right-of-way," said Deputy Public Works Director David Fratellizio. That means Caltrans makes the final call under the AB 43 speed-reduction process.

Why it matters: Aaron Heth, Chair of ATAC, pointed to students crossing the road to school. "Some of them have been fatal on this corridor, and we believe that reducing the speed limit is the first step," he said of crashes there.

Where things stand: Fratellizio said the vote does not immediately change anything: "We're absolutely certain that what won't happen is this council will direct us to request a 25-mile-an-hour speed limit, and then next week there'll be a 25-mile-an-hour speed limit out there." The e-bike program becomes the plan's ninth item, with no cost beyond staff time.

The other side: Williams reported that 26 letters favored a lower limit and 27 opposed it. Allen, a Foothill resident, backed the change: "it is not only a speed trap, I feel my life is threatened every damn day." Dan Herndon pointed instead to visibility problems and weak enforcement. "And it's just a knee-jerk reaction of let's just lower the speed limit," he said. Abreu and Yount also stressed enforcement and vegetation clearance.

Decisions and stakeholder impacts: Item 1 passed 4-1. Voting for were Eisenberg, Councilmember Irais Lopez-Ortega, Gift and Williams. Cooper voted against. "I would like to find other solutions," Cooper said, though he called the e-bike item "a brilliant idea." Item 2 passed 5-0. Gift called the vote "a matter of public safety." Williams warned that a lower limit alone may fall short: "So we can go down to 25 all day long, but if there's no enforcement, it's not going to make much difference."

What's next: Gift will ask ATAC to consider adding Lincoln Avenue, out to the city limits, to a future work plan.

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Celaya Lands the Top Job at $300,000

The council moved from interim to permanent leadership, adopting a resolution that appoints Mitchell Celaya III as city manager.

Where things stand: City Attorney Michelle Kenyon said the search drew more than 25 applicants, and finalists were interviewed Sept. 10. The three-year agreement can be ended without cause. It pays $300,000 a year, or $25,000 a month.

Other terms include:

• Benefits at the highest department-director level.
• CalPERS enrollment, with Celaya paying the full member contribution.
• Six months' severance with continued premiums if he is terminated without cause.

The fiscal 2026-27 budget set aside $292,000 for the position. A budget adjustment tied to transient occupancy tax growth will cover the extra $8,000 from general funds.

The other side: Abreu said she likes Celaya but objected to the raise: "So he's been doing the interim job for $292,000. Why can't it just stay at that?" She suggested sending the $8,000 to the food bank or teen center instead. Dave Ross opposed the appointment outright. He said Celaya is not qualified, cited police department accountability and turnover, and alleged a payback.

Decisions and stakeholder impacts: Gift defended the pay. "Unfortunately, the salary is what it is. That's the industry standard," she said. Williams cited the job's breadth and constant on-call demands. Cooper moved the resolution and Eisenberg seconded. It passed on a voice vote with no tally announced.

"I'm here to serve the community and the council for as long as they're willing to have me," Celaya said.

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Water Aid Waitlist Could Tap Measure D

Jenny O'Kane, Executive Director of Up Valley Family Centers, and her team reported on the city's water and wastewater assistance program. About $133,000 of $135,000 in credits has been distributed.

Where things stand: The program offers up to $200 a month in recurring help, one-time help with past-due bills, and a $120 flat credit for senior residents of mobile home parks. In its second year, it helped:

• 70 households with monthly assistance.
• 2 households with past-due bills.
• 22 mobile home park residents.

Another 19 households are on the waitlist. The average credit is about $2,200 per household per year.

Why it matters: Calistoga's high water rates are tied to aging pipes and a small base of ratepayers. "We are very much in a luxurious position with our Measure D funds to be able to fund such a program to reduce these rates," Gift said. She also asked staff to streamline how residents prove PG&E low-income status.

What's next: One councilmember estimated that clearing the waitlist would cost about $42,000. Williams floated a mid-year budget adjustment drawing on Measure D, and Celaya said Measure D funds can accommodate it.

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Minor Items

• Missing middle housing: A roughly $260,000 Opticos Design contract for an optional overlay was continued after time ran out at 9:30 p.m.
• Flock cameras: Herndon said his records requests went unanswered and urged removal: "My view is we need to get rid of them. There are 6 cameras in town."
• Night paving: Celaya said using an existing contractor for Washington Street paving saved about $90,000. The work requires an evening closure.
• Consent calendar: Items 6.2, 6.4 and 6.6 passed on a voice vote. Pulled item 6.7 was continued.
• Other public comment: Abreu questioned whether the Washington Street hydrogen microgrid can stay running during PG&E shutoffs. Ross flagged missing trash cans and sidewalk bicycling on Lincoln Avenue.

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Looking ahead: The missing middle contract returns at a future meeting. Watch for the fairgrounds planner proposal, the golf course and speedway RFPs, and the first quarterly fairgrounds financials Celaya promised.