ADMINISTRATIVE REPORT
MEETING DATE: April 22, 2026 AGENDA CATEGORY: Consent-Miscellaneous TO: Honorable Mayor and City Council
FROM: Zachary Meyer, Public Works Director
DATE: March 24, 2026
SUBJECT: Appropriate $750,000 from the Sewer Enterprise Fund (SEF) fund balance into the Public Works Department’s Capital Improvements Program within the (SEF) fund for the Sewer Improvements along Cottonwood Road from Pacheco Road to WWTP #2 project.
RECOMMENDATION:
Staff recommends the approval of the appropriation.
BACKGROUND:
The City of Bakersfield has a sewer improvements project along Cottonwood Road from Pacheco Road to Wastewater Treatment Plant #2 (WWTP #2) currently under construction , which was awarded on November 20, 2024, to Sierra Construction & Excavation, Inc. in the amount of $4,493,105.00. The funding for this project consisted of both American Rescue Plan Act of 2021 (ARPA) and Sewer Enterprise Funds (SEF). The actions at the City Council included the construction contract award, which included only the base bid and additive alternate #1 work, and $450,000 set aside for City-controlled contingency. However, due to staff oversight, the funding set aside for the contingency amount was returned back to fund balance, thus leaving the project underfunded.
The Base Bid included work associated with the gravity sewer line from the intersection of White Lane at Cottonwood Road to the Wastewater Treatment Plant #2; Additive Alternate No. 1 is work associated with the force main line from the Lift Station at Pacheco Road at Cottonwood to the intersection of White Lane at Cottonwood Ro ad; and Additive Alternate No. 2 is the work associated with the construction of the Lift Station located at the corner of Pacheco Road at Cottonwood Road.
Due to environmental concerns associated with the project, the City had to pivot and eliminate por tions of the work associated with the base bid and replace it with portions of work associated with additive alternate No. 2 . Staff is requesting an appropriation from the Sewer Enterprise Fund in the amount of $750,000. This funding will cover the origin al $450,000 City -controlled contingency amount along with the changes in scope of work as mentioned above, which eliminated portions of the base bid and added portions of additive alternate No. 2, which increased the contract amount by approximately $300,000.
This appropriation will allow staff to continue with the project and deliver the spending of all ARPA funds before they lapse. This appropriation will be sufficient to pay for other change orders, City -controlled contingencies and City inspections staff time.
FISCAL IMPACT:
This appropriation is entirely funded with Sewer Enterprise Funds (SEF); therefore, there is no general fund impact associated with this appropriation. After the completion of the appropriation, there will be sufficient funds available for City-controlled contingencies, change orders and city inspection staff time.
COUNCIL GOAL:
Reliable Infrastructure
ATTACHMENTS:
N/A