City staff told the Calistoga City Council on July 9 that Lincoln Avenue is state highway right of way governed by Caltrans and that the city currently lacks authority to permit placement of tables, chairs, signs or to perform ordinary code enforcement on those sidewalks.

Director Desmond said the city holds several agreements with Caltrans (encroachment, maintenance, electrical facilities, Vine Trail maintenance) but is missing an agreement that would allow the city to permit uses and enforce codes within the right of way. Staff recommended pursuing a fifth agreement—an "air lease"—that would let the city lease sidewalk airspace from Caltrans, then sublet to business owners under conditional-use or administrative permit conditions to ensure ADA access and other safeguards.

Staff cautioned council that Caltrans has not previously completed an air-lease model for sidewalks and that pursuing such authority likely would require higher-level engagement in Sacramento and possibly state legislation or policy changes. The city manager said staff-to-staff outreach with Caltrans had not produced progress, and suggested elected representatives in Sacramento be engaged.

Business owners and the chamber urged action. Rick Kaiser, owner of Johnny’s Restaurant on Lincoln Avenue, said the current situation leaves businesses exposed to conflicting rules: "ABC and Caltrans are not in coordination with it... it might strongly suggest... you come up with some guidelines so businesses can consistently and legally serve alcohol on Lincoln Avenue." Eric Reichard of the Calistoga Chamber of Commerce said the chamber supports an air lease as the most feasible solution.

Council discussion produced three near-term directions: (1) staff will continue complaint-based enforcement where the city has authority and will redirect sidewalk enforcement questions outside city purview to Caltrans or the appropriate agency; (2) staff was directed to pursue higher-level outreach—via Sacramento elected officials or senior Caltrans management—to seek an air-lease pathway or policy change; and (3) staff will return with a recommended revision to the city’s sign ordinance addressing A-frame signs where the city does have jurisdiction outside Caltrans property.

What’s next: Staff will prepare next steps on Sacramento outreach and return with options on A-frame signage and clear public guidance on which agency handles specific sidewalk issues.