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Staff Report

Yountville City Council
October 6, 2026

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Staff Report
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October 6, 2026
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Yountville City Council
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Town of Yountville
Staff Report
6550 Yount Street
Yountville, CA 94599
Agenda Item #: 9D
Yountville Town Council Staff Report
DATE: October 6, 2026
TO: Mayor and Town Council
FROM: John Ferons, Public Works Director
PREPARED BY: Rosalba Ramirez, Deputy Public Works Director

RECOMMENDATION
Adopt Resolution Number 26-4444 authorizing a Professional Services Agreement with Freyer & Laureta, Inc., to prepare preliminary engineering services for the proposed 1MG Water Storage Tank Project, in a not to exceed amount of $103,900 and authorizing the Interim Town Manager to execute the agreement up to the budgeted amount along with any subsequent amendments.

DISCUSSION/BACKGROUND
During the state-declared drought emergency in 2021, the Town Council directed staff to evaluate improvements needed to establish an emergency water reserve. The Town’s primary supply consists of treated water provided by the California Department of Veterans Affairs (CalVet) through Rector Reservoir and the Rector Water Treatment Plant. Under its agreement with CalVet, the Town receives approximately 500 acre-feet annually, although deliveries may be reduced during drought conditions. The Town also maintains an emergency intertie with the City of Napa under a supplemental agreement for up to 25 acre-feet annually. If both imported sources become unavailable, however, the Town has no significant backup storage.

Well No. 1 was developed in 2004 as an emergency backup source. In 2021, the State Water Resources Control Board approved its operation as an active municipal water source rather than solely as an emergency well.

However, because the well lacks associated storage capacity, it cannot independently provide a sustained emergency supply during prolonged outages, droughts, earthquakes, or other disruptions.

Staff evaluated alternatives capable of providing a minimum three-day supply of potable water when service from Rector Reservoir or the City of Napa is disrupted. The preferred alternative is construction of a 1-milliongallon potable water storage tank and pump station at the existing Well No. 1 site. With irrigation use restricted during an emergency, the facility would provide approximately three days of potable water for the community while improving the reliability, resiliency, and redundancy of the Town’s water system.

In Fiscal Year 2025/26, staff also advanced installation of a water valve on Finnell Road. Together with a pump at the Finnell Road backflow assembly, that improvement would allow the Town to deliver water to customers outside the Town limits. The proposed storage tank would strengthen service to those customers.

Preliminary estimates indicated that design and construction costs for a project of this scope could exceed $3 million. To supplement available funding, the Town submitted applications in 2022 and 2023 for the Smart Drought Response Grant, Urban Community Drought Relief Program, and WaterSMART Water and Energy Efficiency Grant. Although the Town met preliminary eligibility requirements, the applications were not selected in these highly competitive programs, in part because scoring criteria emphasized disadvantaged communities and rural areas. Grant opportunities became more limited after the State ended its drought emergency proclamation in 2024.

Although the drought emergency and associated conservation restrictions ended in 2024, additional storage remains necessary to provide a reliable emergency supply. In 2025, the Town Council adopted the Fiscal Year 2025/26 budget, including $3,250,000 for design and construction of the 1-million-gallon water storage tank and water main project. Staff initially explored a turnkey design-and-installation approach, but it proved more complex and costly than anticipated because the constrained site contains an existing well and pump station, flood-control infrastructure, and underground utilities. The subsequent budget cycle programmed $250,000 for engineering services in Fiscal Year 2026/27 and $3,000,000 for final design and construction in Fiscal Year 2027/28. The project will use drought emergency reserve funds and will not affect current rates and should not affect future rates.

The proposed project, identified in the Town’s Capital Improvement Program as Project WA-0019, consists of:
• A 1-million-gallon potable water storage tank;
• A water tank pump station;
• Associated transmission and distribution system connections.

The project would address several critical water-system needs. It would provide approximately three days of potable water during emergencies caused by earthquakes, flooding, infrastructure failures, drought, or interruptions in imported supplies; improve the Town’s ability to use its municipal groundwater resource during drought periods and high-demand events; allow water to be cycled routinely through the system to maintain water quality; provide operational flexibility during low-pressure conditions, maintenance, or supply interruptions; and increase reserves available for essential services and fire protection during major disasters.

The proposed project site is the Town-owned Well No. 1 facility at 6400 Washington Street. The parcel contains Well No. 1, water treatment facilities, flood-control infrastructure, solar facilities, wastewater pumping facilities, and active water, sewer, recycled-water, and electrical systems. The southeastern portion of the site lies within a FEMA-regulated floodway and is unavailable for development; therefore, the tank must be located within the western development area. The design must comply with Town floodplain-management regulations and FEMA requirements, including construction above the Base Flood Elevation and implementation of flood-resistant measures. It must also protect existing oak groves and significant habitat resources and coordinate construction around active utilities and flood-control facilities. To expedite the design process, staff initiated environmental review with Kari Svanstrom of Swan Stream Studio and determined that the project qualifies for an exemption under the California Environmental Quality Act (CEQA). Staff recommend proceeding with Freyer & Laureta, Inc. to complete the preliminary engineering and design services necessary to advance the project.

Staff contacted multiple large engineering firms for proposals to perform this work and received several proposals in excess of $400,000. Through this process a smaller firm was identified as Freyer & Laureta, Inc., of Novato, California, who is an experienced firm capable of working within the Town’s budget and addressing the site’s constraints. Staff subsequently received an acceptable proposal for the Basis of Design Report and 30% design documents needed to establish the appropriate tank type, site configuration, and design criteria and to advance the project to final design, permitting, and future construction.

Staff recommend proceeding with preliminary engineering services through Freyer & Laureta, Inc. to develop the Basis of Design Report and 30% design necessary to advance the project into final design, permitting, and future construction.

ENVIRONMENTAL REVIEW
Categorically Exempt per California Environmental Act (CEQA) Guideline; Class 32, In-Fill Development Projects.

FISCAL IMPACT
Is there a Fiscal Impact? Yes
Is it Currently Budgeted? Yes
Where is it Budgeted? WA-0019; 60-4500-5500
Is it Mandatory or Discretionary? Discretionary
Is there a Staff Resource Impact? Nominal

ATTACHMENTS

1. Resolution Number 26-4444

2. Draft Professional Services Agreement

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