ADMINISTRATIVE REPORT
MEETING DATE: August 5, 2026 AGENDA CATEGORY: Consent - Bids TO: Honorable Mayor and City Council
FROM: Zachary Meyer, Public Works Director
DATE: June 1, 2026
SUBJECT: Stormwater Lift Station Rehabilitation at Chester Avenue and BNSF Rail Crossing:
1. Accept bid and approve contract with GSE Construction Company, Inc. ($1,563,920.00) for said project;
2. Appropriate $850,000 from the Sewer Enterprise Fund (SEF) fund balance into the Public Works Department’s Capital Improvements Program within the SEF fund for said project;
3. Authorize staff to approve, as necessary, up to $75,000 in City-Controlled contingency for unseen conditions encountered during construction of said project. (Ward 2)
RECOMMENDATION:
Staff recommends acceptance of low bid, approval of contract, approval of appropriation, and approval of City-controlled contingency.
BACKGROUND:
The work to be performed consists, in general, of demolition of existing stormwater lift station structure and electrical components and installation of new stormwater lift station and associated improvements.
The work also includes replacement of shade structure, gates, concrete slab, electrical, instrumentation and all other improvements as shown on the plans.
This project was one of the higher priority projects that was recommended in the City approved Downtown Storm Drain Master Plan, which was approved in 2020.
Item No. 1 This project is funded through Sewer Enterprise Funds (SEF). The Engineer’s Estimate for this project was $738,000.00.
On April 28, 2026 the City received five (5) bids for this project. Four (4) of the five (5) bids were deemed acceptable and one of the bids was deemed non-responsive. Those acceptable bids are as follows:
Mehta Mechanical Company
dba MMC, Inc.
5901 Fresca Drive
La Palma, CA 90623
in the amount of
$1,099,540.00
GSE Construction Company, Inc.
7633 Southfront Road, Ste 160
Livermore, CA 94551
in the amount of
$1,563,920.00
HPS Mechanical, Inc.
3100 E. Belle Terrace
Bakersfield, CA 93307
in the amount of
$2,070,305.66
Cora Constructors
75140 St. Charls Place Ste. A
Palm Desert, CA 92211
in the amount of
$2,219,916.00
The one non-responsive bidder, SW Construction, did not comply with the bid requirements; therefore, their bid was deemed non -responsive. The lowest apparent bidder, at the time of bid opening, Metha Mechanical Company (MMC, Inc.), withdrew their bid due to errors in their bid submittal. Staff honored their withdrawal and proceeded with the next apparent low bidder.
Staff recommends acceptance of the bids and approval of the construction contract to the third responsive and responsible bidder, GSE Construction Company Inc.
Item No. 2. This appropriation is necessary in order to fully fund the construction of the project. After the approval of the appropriation, there would be sufficient funds available to cover contingencies , construction inspection costs and other staff time. The storm lift station is a high priority per the approved Downtown Storm Drain Master Plan.
Item No. 3. Bakersfield Municipal Code section 3.20.105E authorizes Public Works Contract Amendments to be executed via Change Order, pro vided that Change Order which exceed $25,000 must be approved by the City Council. Staff is requesting pre -approval of up to $ 75,000 for City-controlled contingency for unforeseen conditions encountered during construction of this project, to be executed v ia Change Order(s). Any costs which exceed the City Council approved contingency, cumulative or otherwise, would require action and approval from the City Council. This City-controlled contingency will save staff time by not having to prepare multiple Coun cil reports for individual routine change orders throughout the project, should they arise. All remaining contingency funds not used will be returned to the fund balance at the end of the project.
FISCAL IMPACT:
There is $ 962,245.54 budgeted funds availab le in Project Number 26PWDE0 7; however, the additional appropriation is needed to fully fund the project. Once the appropriation is approved the project will be sufficiently funded. The contract award and appropriation are funded with SEF; therefore, there is no general fund impact associated with this council action. Appropriation adjustments will also allow for sufficient funds to be made available for City-controlled contingencies, change orders, and City inspection staff time.
COUNCIL GOAL:
Reliable Infrastructure
ATTACHMENTS:
Agreement.