TO: Board of Supervisors
FROM: Steve Lederer, Director of Public Works
REPORT BY: Juan Arias, Deputy Director of Public Works
SUBJECT: 555 Gateway Drive and BHTC Improvements Construction Contract and Budget Amendment Approvals
RECOMMENDATION
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Award a Construction Contract to Thompson General Construction, doing business as Rubicon Builders, of Sonoma, CA, in the amount of $3,424,000 for the “Napa County 555 Gateway Drive and BHTC Improvements,” PW 26-100 project; and approve a Budget Amendment. (Fiscal Impact $3,191,850 Expense; Health and Human Services Agency Fund; Not Budgeted; Discretionary)
[4/5 vote required]
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BACKGROUND
Behavioral Health Treatment Center (BHTC)
On June 3, 2025, the Board of Supervisors received a presentation, created a new capital improvement project, and approved related budget amendments for repurposing the Reentry Facility as the Health and Human Services Agency (HHSA) Behavioral Health Treatment Center (BHTC).
The Reentry Facility was originally built with a mix of State and local funding. In order to use the Reentry Facility for a BHTC, the County was required to “buy out” the State’s interest in the facility. The new goal for the facility is to provide services by HHSA as a Behavioral Health Treatment Center. The Behavioral Health Treatment Center will consist of three programs: 1) Residential Substance Use Disorder Treatment and Withdrawal Management; 2) a Lanterman-Petris-Short (LPS) Act designated Mental Health Rehabilitation Center (MHRC) or other licensed facility type deemed eligible by the State to serve the target population; and 3) a Sobering Center.
The Behavioral Health Treatment Center envisions:
1) New and Expanded Mental Health and Substance Use Disorder Care -SB 43 Treatment Mandate,
2) Proposition 36 Treatment Capacity, and
3) Jail and Emergency Department Diversion.
These proposed programs at this new campus will strengthen the County’s behavioral health care system for those with the most serious mental health and substance use disorders to create infrastructure to meet the new SB43 mandate that modernizes conservatorships, sustain and expand residential treatment capacity to provide for a long-term facility through its relocation from Napa State Hospital and to serve the new adult offender population under Prop. 36 (allowing for an increase from 35 to up to 48 residential treatment beds at this new site) and create a program to divert intoxicated adults from arrest and jail into a safe environment with critical short-term care and access to onsite longer-term treatment.
HHSA, in working with the Public Works Department and Nacht & Lewis architects, has designed some modifications to the existing facility as needed to operate the three treatment programs, thereby maximizing the facility’s use. Nacht & Lewis Architects was selected through an RFQ for on-call architectural services for various County projects and has assisted the County with design of the project and preparation of plans, specifications and estimates. Nacht & Lewis designed the original facility, which has been beneficial to the County for coordination and cost efficiency purposes.
Napa County currently leases space at Napa State Hospital for its Residential Treatment and Withdrawal Management Program. That facility is in urgent need of extensive maintenance, has limited access, has limited capacity, and has no ability to co-locate with other treatment programs. Reentry Facility’s design, capacity, and existing furnishings make it the ideal site to relocate and expand capacity of our Residential Treatment and Withdrawal Management Program and add new critical programs to create a “Behavioral Health Treatment Center.” This new center is also adjacent to our new jail and nearby the Napa County HHSA that directly oversees these programs creating clear connections and referral pathways.
For tracking the modifications, a new Capital Improvement Project was created: 25050-HHSA Behavioral Health Treatment Center, with initial appropriations of $300,000 for the design phase, funded through a transfer from HHSA reserves. The goal is to complete the modifications to the facility in the first half of 2026, assuming Probation Department’s relocation from reentry to another leased space is accomplished in the Spring of 2026. The estimated total project cost through completion is $3,491,850 and will be funded from HHSA reserves.
555 Gateway Drive:
On June 3, 2025, the Board received an update on the Facilities Master Plan, made the strategic decision to indefinitely pause implementation of the plan, and directed instead to move forward with short-term improvements to address critical facility and department space needs. Among these short-term actions was an item to lease office space for the Probation Department and Child Support Services. Movement of Child Support Services to leased space opens needed space for the District Attorney in 1127 First Street and movement of the Probation Department opens the Reentry Facility for the BHTC.
Staff from Probation, Child Support Services, and Public Works have utilized the services of the County’s contracted real estate agent to seek available office space for lease. Staff evaluated several properties and identified approximately 40,000 square feet of space in a single building located at 555 Gateway Drive as the most cost-effective available property to meet the space needs. With tenant improvements to be made by the Landlord, the space is suitable for the Probation Department, one of its program service providers (GEO, currently located at the Hall of Justice), and for Child Support Services. The space is anticipated to be available in April of 2026 for the County to install furniture and security cameras with occupancy anticipated in the summer of 2026. Timelines are subject to change for earlier occupancy should the Landlord’s current tenant vacate the space earlier than required.
Upon approval of the proposed lease, additional costs were anticipated, including purchase and placement of furniture and security systems, movement and installation of existing furniture and department essentials, and allocation of two additional custodial positions. Capital Improvement Funds have been budgeted to support improvements and the move.
BHTC and 555 Gateway Drive construction process:
Department of Public Works staff have worked with the County’s on-call architects Nacht and Lewis and with applicable departments for the preparation of designs and construction bid plans and specifications for the improvements required for the BHTC and for the improvements and systems furniture installation required at the 555 Gateway property. Staff proposes to bid the two projects as one construction contract to take advantage of construction coordination and cost efficiencies.
On November 18, 2025, the Board of Supervisors (BOS) approved the plans and specifications and authorized to advertise for sealed bids and opening of the bids pursuant to Section 20150.8 of the Public Contract Code.
On January 8, 2026, bids were received and opened; bid results are attached for reference.
Staff recommends awarding the “555 Gateway Drive and BHTC Improvements” PW 26-100 contract to the lowest responsive bidder Thompson General Construction doing business as Rubicon Builders of Sonoma, CA for their base bid of $3,024,000. In addition, staff recommend the award of Additive Alternate #1 in the amount of $400,000 to provide an additional emergency generator for the BHTC facility.
The total project cost for the 555 Gateway Drive project including construction, construction/project management, and construction contingency, is $2,000,860. An amount of $2,500,000 was previously budgeted from the Capital Improvement Fund (CIF) for this project. Any remaining funds at project completion and close-out will be returned to the CIF fund. Prior to bidding Probation identified the need for a security fence surrounding the staff parking area. The County obtained a maximum $275,000 commitment from the Community Corrections Partnership (CCP) to fund this security element. The County does not yet have an actual cost for the fence, so staff will return to the Board at a future meeting to incorporate the fence into the construction contract, using the CCP funds. Construction for the 555 Gateway Drive project is scheduled to begin at the end of April 2026 with Probation and Child Support services moving in May of 2026.
The total project cost for the BHTC project including construction, construction/project management, and construction contingency, is $3,491,850. $300,000 had been previously budgeted from HHSA. Any remaining funds at project completion and close-out will be returned to HHSA. Construction for BHTC is scheduled to start at the beginning of June 2026.
Thompson General Construction, doing business as Rubicon Builders, is not a local vendor however, the Public Contract Code requires that the construction contract be awarded to the lowest responsible and responsive bidder regardless of whether the low bidder is local or not. Staff reached out to the local construction contractor community by advertising the request for bids in the Napa Valley Register and the Solano-Napa Builder’s Exchange, and by posting on the County website. Staff also sent “Notices to Contractors” to the local construction community.
Requested Actions:
1. Award of the Construction contract for the “Napa County 555 Gateway Drive and BHTC Improvements” PW 26-100 to Thompson General Construction, doing business as Rubicon Builders, of Sonoma, California, for their low base bid of $3,024,000 and additive alternate #1 in the amount of $400,000 for a total of $3,424,000 and authorization for the Chair to sign the construction contract; and
2. Approval of Budget Amendment for the following (4/5 is required):
a. Increase Transfers Out appropriations by $3,191,850 in the Health and Human Services-Agency Administration budget (Fund 2000, Sub-Division 2001000, Account 56100) offset by use of its available fund balance to transfer to Project 25050 and increase its Transfers In revenues (Fund 3000, Sub-Division 3000550, Project 25050, Account 48200); and
b. Increase Construction Services appropriations by $3,191,850 in the Behavioral Health Treatment Center Project 25050 budget (Fund 3000, Sub-Division 3000550, Project 25050, Account 52360) offset by a Transfers In revenues from Health and Human Services-Agency Administration budget.
FISCAL IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Today’s request is to award the construction contract for the two projects. The estimated total project cost (project management, design, construction costs, construction contingency, construction management and inspections) for BHTC project is $3,491,850, of which $300,000 was already budgeted for, with additional $3,191,850 transfer requested today. The estimated total project cost for 555 Gateway Drive project is $2,000,860 and is already budgeted in the project budget. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
The BHTC project will be completed in Fiscal Year 2026/2027. |
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Consequences if not approved: |
The project may not move into the construction phase. |
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ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: It has been determined that this type of project does not have a significant effect on the environment and is exempt from the California Environmental Quality Act. [See Class 1 (“Existing Facilities”) which may be found in the guidelines for the implementation of the California Environmental Quality Act as 14 CCR §15301; see also Napa County’s Local Procedures for Implementing the California Environmental Quality Act, Appendix B.]