Y'all definitly just get you a good brand, yea Carrier and Rheem/Trane are the top AC/Heatpump brands out there. Carriers generally are a little pricey in my opinion, but there also good quality. You can never go wrong with a Rheem or a Trane. One brand to avoid is Goodman, there cheap and they don't last. Some may have good stories about them, but generally they should be avoided. Yea a 2 stage would probably be best. Yea I also say its a bit undersized, but 105 Degrees is real hot! BUT if its properly sized these conditions should be taken into account, which is why you usually go a little bit bigger than you really need.

Thanks for the feedback. I had to talk them into selling me the 2-stage compressor unit, so they weren't trying to up sell me very hard, which is usually a good thing. I asked multiple times about it being set up to run both stage on heat and AC and was told it would, seems it won't the way currently configured on the AC side, and not the most effective use of it on the heat side. If I re-run a 8 conductor wire from T-Stat to furnace, how many conductors should I have running out to the AC compressor?

I'm also in the Bay Area and presume the OP has PG+E as I do. Gas and electricity charges are tiered by order of the PUC, a so-called "baseline" allowance for the first small tranche and then the "excess" rate. For me, the baseline is enough for water heating and cooking and was $1.19 per therm on my last few bills. The next tier, immediately reached in any month when heat is used, is $1.75. Yeah, it's high, compared to rates elsewhere in the country. I replaced two systems a few years ago. The HVAC contractor recommended sticking with 80% furnaces because he said there would be no payback for the incremental cost of more efficient ones, so that's what I did. I guess it depends on how warm one keeps the house during the winter. We tend to stick to the high 60s, with daytime and nighttime setbacks, and in a larger house than this one. I don't think I've ever spent as much as $750 per year on heating and it's usually less. To save 10-15% isn't going to get me very far any time soon. Also, because of the mild temperatures, single stage units seem to be the most common. HERS testing is required for all HVAC equipment replacement and installation jobs. It's basically testing by a 3rd party, not the HVAC contractor, for duct leakage and requires reasonably easily located holes be patched. For my job, I had them do a complete rehab and reinsulating of my old hard duct system anyway, and in advance, so the HERS testing was a non-event. But it does cost about $1K.

Your first answer confirmed that the extra run time on AC does provide some additional dehumidification but now you say it is a "gimmick" that I "fell for". Only with a 2 speed air conditioner. BUT it's still mostly a gimmick. WHY? a 2 speed air conditioner's first stage (most brands) is approximately 70% of capacity of the machine. It is more or less in dehumidification mode when the unit runs in 1st speed. (It must be a 2 speed AC condenser.) However, 1st speed turn on is not determined by humidity it is determined by temperature. Do you see the problem with that? The kick to 2nd stage is often times determined by time. Usually in the realm of 8 to 10 minutes or the temperature difference from set point to current temp of the structure (usually greater than 3 degree difference will initiate stage 2 within a few minutes). Humidity again plays no importance / no determination from ramp up or down --- it's all decided around temperature set points. How about now? Do you see a problem with that? So when in cooler seasonal temps --- the system will nearly always over cool... very much like a single stage air conditioner does all the time. PS: I'm not angry. But you should be for being 'duped', by the super slick advertising nonsense of the HVAC manufacturers. If I was angry why would I then turned around and explain things to you further so you understand the point being made here? What does 'SERVICE' mean to you? This is a service business, you will ALWAYS need service... better hope it's the kind you really want. I service the Katy, Texas area.