TO: Board of Supervisors
FROM: Steven Lederer, Director of Public Works
REPORT BY: Sydney Barclay, Associate Engineer
SUBJECT: Pueblo Area Rehabilitation Project, RDS 26-01 - Approval of the Reimbursement Agreement with the Napa Sanitation District and a Budget Amendment
RECOMMENDATION
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Approve and authorize Agreement No. 260232B with the Napa Sanitation District to reimburse the District for construction costs and District administrative expenses; and approve a Budget Amendment for the “Pueblo Area Rehabilitation Project,” RDS 26-01. (Fiscal Impact $3,050,000 Expense; Local Transportation Tax (T/U) Fund; Not Budgeted; Discretionary)
[4/5 vote required]
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BACKGROUND
The Napa Sanitation District (NSD) is partnering with the City of Napa and County of Napa to administer the Pueblo Area Rehabilitation Project, which is located in northwest Napa between West Pueblo Avenue, Solano Avenue, Linda Vista Avenue, and Redwood Road. The project will rehabilitate the existing sewer infrastructure, replace select water pipelines, restore the pavement surface, and repair concrete drainage facilities as needed, among other project related improvements.
Given the expense, vast scope, and available fiscal funding for each agency involved, the project was split into two phases. Phase 1 will focus on repairs to the project area north of Janette Drive, south of Redwood Road, east of Linda Vista Avenue, and west of Solano Avenue, with construction in 2026. Phase 2 will repair the section of road north of Morlan Drive, south of Janette Drive, east of Rancho Drive, and west of Solano Avenue, with construction in 2027.
On May 20, 2025, the Board of Supervisors approved a Professional Services Agreement with Nichols Consulting Engineers, Inc. to prepare Plans and Specifications for the paving portion of the project, as well as a Cooperation Agreement with the City of Napa, for the City to reimburse the County for expenses to design their portion of the project. This project was originally titled the “Pueblo Pocket Paving Rehabilitation Project,” RDS 26-01. At the request of NSD and the City of Napa, the title has been changed to the “Pueblo Area Rehabilitation Project - Phase 1,” RDS 26-01, in order to encompass all agencies involved in the project. The final design for the “Pueblo Area Rehabilitation Project - Phase 1,” RDS 26-01, is complete and was advertised for bid by the Napa Sanitation District on November 12, 2025. The County’s paving was incorporated in their contract as Bid Alternate A.
The following 18 streets will be paved in 2026 as part of Phase 1 Construction: Barbara Rd, Carol Dr, Ethel Porter Dr, Geneva Ct, Janette Ct, Janette Dr, Joyce Ct, Kathleen Dr, Lonnie Dr, Marjorie Dr, Mary C Dr, Nancy Ct, Noelle Way, Pamela Dr, Ruth Dr, Sandra Dr, Susan Ct, and Verna Dr. The following 18 streets will be paved in 2026 as part of Phase 1 Construction: Barbara Rd, Carol Dr, Ethel Porter Dr, Geneva Ct, Janette Ct, Janette Dr, Joyce Ct, Kathleen Dr, Lonnie Dr, Marjorie Dr, Mary C Dr, Nancy Ct, Noelle Way, Pamela Dr, Ruth Dr, Sandra Dr, Susan Ct, and Verna Dr.
The Reimbursement Agreement proposed for approval, gives NSD the responsibility to advertise, award, and administer the construction contract and makes the County responsible for reimbursing NSD for the cost of paving and appurtenant work. The Reimbursement Agreement was approved by NSD on November 18, 2025. County staff recommends that the County and NapaSan enter into a Reimbursement Agreement to authorize NapaSan to advertise, award, and administer the construction contract for the Pueblo Area Rehabilitation Project - Phase 1.
Requested Actions:
1. Approve Agreement No. 260232B with the Napa Sanitation District; and
2. Approve a Budget Amendment for the following (4/5 votes required):
a. Increase Transfers Out appropriations by $3,050,000 in the Local Transportation Tax (T/U) Non-Operating Special Revenue Fund (Fund 2440, Sub-Division 1220053, Account 56100) offset by use of its available fund balance to transfer to Project 25010 and increase to its Transfers In revenues (Fund 2040, Sub-Division 2040500, Project 25010, Account 48200); and
b. Increase Construction Services appropriations by $3,050,000 in Project 25010 budget (Fund 2040, Sub-Division 2040500, Project 25010, Account 52360) offset by a Transfer In revenue from the Local Transportation Tax (T/U) Non-Operating Special Revenue Fund.
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: |
Partnering with the Napa Sanitation District will allow the County to participate in a joint agency effort to rehabilitate the existing infrastructure in the Pueblo Area and reduce costs for both agencies. This project budget was not included as part of the Annual Budget process since Local Transportation Tax (T/U) Funds are received from NVTA on a quarterly basis. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
After bid opening, staff will need to return to the Board for a budget amendment needed to cover construction management and special inspections. Construction will occur in two phases. Phase 1 will take place in fiscal year 2026-27 and Phase 2 in fiscal year 2027-28. The project was phased out into two different construction seasons due to fiscal funding limitations. |
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Consequences if not approved: |
The Napa Sanitation District will move forward with their project, which will damage the existing pavement and require a future paving project to repair damages. This would ultimately impact the residents and create projects that are completed in multiple years, having increased costs and a major impact on the neighboring community. |
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Additional Information |
Strategic Initiative: Build Healthy, Connected Communities |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: Consideration and possible adoption of a Categorical Exemption Class 1: 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 of 14 CCR §15301; see also Napa County’s Local Procedures for Implementing the California Environmental Quality Act, Appendix B].