To: Honorable Mayor and Members of City Council
From: Jessica Lowe, Public Works Director
Prepared By: Jay Pence, Assistant Engineer; Stephanie Gaul, Housing Manager
TITLE:
Title
Laurel Manor Electrical Upgrades
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution: (1) authorizing the Public Works Director to award a construction contract to, and execute a construction contract with, TPM Construction Inc., for the Laurel Manor Electrical Upgrades Project (33FC26CM01) in the bid amount of $1,975,000; (2) authorizing the Public Works Director to approve change orders and charges for project services up to $533,750 for a total project construction amount not to exceed $2,508,750; (3) amending the Fiscal Year 2025/26 Five-Year Capital Improvement Plan as documented in Budget Adjustment No. 4P9; and (4) determining that the actions authorized by this resolution are exempt from CEQA.
Body
DISCUSSION:
Laurel Manor, a 50-unit multifamily complex, was purchased by the Housing Authority of the City of Napa (“the Housing Authority”) in 1982. Since 1982, the Housing Authority has been operating the property as affordable housing for seniors. On September 2, 2025, the Housing Authority Board of Directors authorized several actions related to completing an Energy Resiliency Project at the property. The Energy Resiliency Project includes several energy efficiency upgrades including but not limited to replacing gas-powered equipment such as water heaters and HVAC units, adding insulation, and replacing fluorescent lighting.
The Project has been separated into two phases, and the first phase consists of the removal of existing gas water heaters and heating and air conditioning units and replacing them with new electric water heaters and more efficient heating and air conditioning units. In addition, bathroom fans and kitchen hoods will be replaced. Electrical upgrades will also be completed to meet current building code and energy rebate requirements.
The engineer’s estimate of probable construction cost for the Project is $2,880,762.91.
Staff publicly advertised the Project on February 3, 2026. On February 17, 2026, four (4) formal bids for construction were received. The bids were as follows:
|
TPM Construction, Inc., Dixon, CA* |
$1,975,000 |
|
Ascher Construction, Inc., Dixon, CA |
$2,705,250 |
|
CWS Construction Group, Inc., Novato, CA |
$3,591,744 |
|
Eco Performance Builders, Inc., Walnut Creek, CA |
$3,625,713 |
*Apparent lowest responsible bidder submitting a responsive bid
The construction budget, inclusive of the construction contract, a 25% contingency, and all owner’s costs, is anticipated as follows:
|
TPM Construction, Inc. |
$1,975,000 |
|
Contingency for unforeseen conditions (25% of bid) |
$ 493,750 |
|
Building Inspection |
$ 20,000 |
|
Construction Administration |
$ 10,000 |
|
Staff Time |
$ 10,000 |
|
Total |
$2,508,750 |
The contingency, construction administration and inspection costs, and staff time are estimates. The funds can be used interchangeably between the items listed above.
Staff thoroughly reviewed the bid submittals. The low bid submitted by TPM Construction, Inc. was significantly lower than both the engineer’s estimate and the next lowest bid. Staff contacted the apparent low bidder to determine whether there was an error in the bid documents. TPM Construction, Inc. confirmed to City staff that the bid documents, including the amount submitted, were accurate.
Funding incentives will be utilized from Marin Clean Energy’s (MCE) Multifamily Energy Savings (MFES) program, and California’s Low Income Weatherization Program (LIWP) and Solar on Multifamily Affordable Housing (SOMAH) programs. Staff will continue working with the property manager to ensure the least disruption to each tenant. This includes offering alternative access to rest, relief, and meal space and work will not displace households overnight.
FINANCIAL IMPACTS:
The City is expected to receive $1,293,997.50 in reimbursement-based incentives to offset the project’s construction costs. Sufficient funding for the remaining project costs is included in the Laurel Manor Upgrades Project (33F26CM01) budget. The proposed budget amendment will update the project’s budget to reflect the reimbursable costs and corresponding incentives. Initially, the incentives were anticipated to be distributed through the contractor, however, rebates will now need to flow through the City - with the City paying the full costs to the contractor, then seeking reimbursement through two rebate programs totaling $1,293,997.50:
- Marin Clean Energy (MCE) rebates of $470,482.50
- Low Income Weatherization Program (LIWP) incentives of $823,515.00
The proposed Council Budget Amendment No. 4P9 will revise the project budget to reflect the rebates as follows:
- Obligate MCE rebates of $470,482.50 to 33FC26CM01 - Laurel Manor Upgrades Project
- Obligate Low Income Weatherization Program (LWIP) incentives of $823,515.00 to 33FC26CM01- Laurel Manor Upgrades Project
CEQA:
City staff recommends that the City Council determine that the Recommended Action is exempt from CEQA pursuant to CEQA Guidelines Section 15301(d), which exempts the restoration or rehabilitation of deteriorated or damaged structures, facilities, or mechanical equipment to meet current standards of public health and safety.
DOCUMENTS ATTACHED:
ATCH 1 - Resolution
EX A - Council Budget Amendment 4P9
NOTIFICATION:
None.