To: Honorable Mayor and Members of City Council
From: Steve Potter, City Manager
Prepared By: Stephanie Gaul, Housing Manager
TITLE:
Title
Capital Improvement Program – Update for Fiscal Year 2025/26
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution amending the FY2025/26 & 2026/27 Capital Improvement Project Plan as documented in budget adjustments 2P03 and 5P03
Body
DISCUSSION:
The City’s Capital Improvement Program (CIP) provides for the planning, funding, and implementation of significant infrastructure projects to meet community needs, support City operations, and align with Council focus areas/priorities. While capital projects are typically one-time expenditures, they often take multiple years to complete. The CIP program is on a five-year horizon, with funding approved by City Council through the budget process or separate Council actions as needed. The City’s CIP budget was adopted on June 17, 2025, as part of the City of Napa Fiscal Year 2025/26 and 2026/27 budget, and amended on August 19, 2025 to update the status of three ongoing projects.
Concurrent to the date of this City Council item, the Housing Authority of the City of Napa (“the Housing Authority”) Board of Directors is expected to approve a capital project named Laurel Manor Energy Resiliency Project (“the project”). The project will implement energy efficiency and decarbonization measures at Laurel Manor to improve comfort and safety of residents and take advantage of current incentive opportunities. The project will include roof replacement, solar installation, furnace and air conditioner replacement, water heater replacement, insulation updates, range hood replacement, bathroom fan replacement, water fixture replacement, lighting upgrades, and air sealing. The project is expected to cost $2.5M and the technical assistance provider for the project has identified approximately $1.03M in available incentives for the proposed scope of work. It is expected the final cost of the project to the Housing Authority is $1.5M, including contingency. Energy and solar incentives realized will be paid directly to the contractor who is selected to perform the work. The Laurel Manor fund has sufficient fund balance to complete the project.
In addition, in mid-August 2025, the Seminary Street building, which serves as the Housing Authority’s offices had a heating, ventilation, and air conditioning (HVAC) unit fail. A replacement HVAC system is expected to cost $30,000 and the Seminary Street fund has sufficient fund balance to complete the HVAC replacement.
The recommended budget amendments described in this report update the Fiscal Year 2025/26 and 2026/27 CIP budget to add two new projects. The Laurel Manor Energy Resiliency Project will be 33FC26CM01 in the amount of $1,500,000 funded from the Housing Authority’s Laurel Manor Fund (84112500). The Seminary Street HVAC Project will be 33FC26PW05 in the amount of $30,000 funded from the Housing Authority’s Seminary Street Fund (84212500).
FINANCIAL IMPACTS:
The recommended budget amendments described in this report update the Fiscal Years 2025/26 & 2026/27 CIP budget to; (1) add a new project 33FC26MC01 (Laurel Manor Energy Resilience Project); (2) obligate $1,500,000 of Housing Authority’s Laurel Manor Funds (84112500) to 33FC26CM01; (3) add a new project 33FC26PW05 (Seminary Street HVAC Project); and (4) obligate $30,000 of Housing Authority’s Seminary Street Funds (84212500) to 33FC26PW05.
CEQA:
The City Manager has determined that the Recommended Action described in this Agenda Report is not in-and-of-itself a “project” (pursuant to CEQA Guidelines Section 15378) since it does not result in a physical change in the environment.
However, the Recommended Action is a part of a larger “project” that will be subject to environmental review in accordance with CEQA at the earliest feasible time prior to approval consistent with CEQA Guidelines sections 15004 and 15352. The larger “project” is a future Capital Improvement Project, and staff plans to bring back CEQA analysis to Council prior to approval of each project.
DOCUMENTS ATTACHED:
ATCH 1 – Resolution
EX A – Budget Adjustment 2P03
EX B – Budget Adjustment 5P03
NOTIFICATION:
None.