Y of Calistoga*

"Solage Resort Drainage Project should not have been paid with Measure A funds as the City of Calistoga had no duty to pay that $600,000 cost". Response: We disagree with this finding. The Grand Jury was incorrect to assume (on of the Final Report) that Solage Resort billed $600,000 to pay for the resort's own drainage mitigation. The total cost of drainage infrastructure improvements constructed by the Solage resort was $1,645,254.58, as independently verified by Coastland Engineering. Of this amount, $207,408.14 was paid for by Solage, to construct drainage improvements to mitigate the stormwater impacts from Solage's development. The remaining approximate $1.4 million was attributable to the City's public infrastructure improvements, which were needed to implement the City Council approved Southeast Drainage Master Plan of October 2004. Of the approximately $1.4 million for the City's drainage improvements, $600,000 was reimbursed to the Solage Resort from Measure A funding. The Grand Jury was also incorrect to conclude (on of the Final Report) that Measure A funds "may only be used for projects that legally require payments from a given jurisdiction." There is no such requirement in the Measure A Ordinance. The City would also note that its duty to reimburse the Solage resort for these supplemental capacity drainage improvements was established by a reimbursement obligation agreement approved by the Calistoga City Council on... January 18, 2011, prior to the payment release of $600,000 to the Solage resort Calistoga Response to NC Grand Jury Final Report on Measure A