DATE: August 3, 2026
TO: President and Members of the Estero Municipal Improvement District (EMID) Board of Directors
VIA: Stefan Chatwin, District Manager
Marlene Subhashini, Assistant District Manager
FROM: Andrew Brozyna, Public Works Director/District Engineer Laura Galli, Engineering Manager
Francine Magno, Senior Civil Engineer
Jerrick Carandang, Associate Civil Engineer
DEPARTMENT: Public Works
SUBJECT: Award of a Construction Contract to Telstar Instruments for the Construction of the Emergency Generator Replacement (Phase I) Project (CIP 455-705); the Establishment of a Construction Contingency in the Amount of $572,000; the Award of a Task Order with Consor PMCM, Inc., for Construction Management, Inspection, and Material Testing Services in the Amount of $400,920; and the Establishment of a Construction Management Contingency in the Amount of $81,000
RECOMMENDATION
It is recommended that the Board of Directors of the Estero Municipal Improvement District (EMID) adopt the attached resolution authorizing:
1. The President to execute an agreement with Telstar Instruments (Telstar) in the amount of $2,289,544.50 for the construction of the Emergency Generator Replacement (Phase I) Project (CIP 455-705); and
2. The establishment of a construction contingency in the amount of $572,000 with authorization given to the District Manager, or his designee, to execute contract change orders up to the contingency amount; and
3. The President to execute a Task Order with Consor PMCM, Inc., in the amount of $400,920 for Construction Management, Inspection, and Materials Testing Services; and
4. The establishment of a construction management contingency for Consor PMCM, Inc., in the amount of $81,000 with authorization given to the District Manager or his designee, to execute contract change orders up to the contingency amount; and
5. Finding that the Project is categorically exempt pursuant to CEQA Guidelines Section 15301(b) – Existing Facilities.
EXECUTIVE SUMMARY
CIP 455-705 addresses the replacement of emergency generator systems (generators) and automatic transfer switch (ATS) equipment at ten (10) of the District’s lift stations, which have reached the end of their useful lives. To address extended equipment procurement lead times and prioritize the District’s most critical facilities, the project was divided into two phases. Phase I, which includes Lift Stations 22, 29, and 59, is ready for construction. Additionally, the long lead equipment for Phase I has been ordered ahead of construction. Freyer and Laureta, Inc. (F&L) are the Engineers of Record who developed construction documents for the project. Construction is anticipated to start in September 2026 and is estimated to take 5-6 months to be completed.
Three (3) bids for the construction of Phase I of CIP 455-705 were received and publicly opened on Wednesday, June 17, 2026, following a formal bid solicitation. The bid submitted by Telstar in the amount of $2,289,544.50 was determined to be the lowest responsible and responsive bid.
Consor PMCM, Inc. (Consor) will provide construction management, inspection and support services throughout the duration of construction via Task Order CON-2026-01.
Consor is an on-call consultant and has provided proof of their experience with generator replacement projects.
There are adequate funds in the project budget for CIP 455-705 to cover the cost of construction.
BACKGROUND
CIP 455-705 addresses the replacement of emergency generators at ten (10) of the District’s wastewater lift stations (Lift Stations 10, 12, 14, 15, 16, 22, 26, 29, 41 and 59) and associated ATSs with exception of the ATS equipment at Lift Station 22 which was deemed to be in good condition. The existing generators and ATS equipment scheduled for replacement have reached the end of their useful lives.
Staff prioritized Lift Stations 22, 29, and 59 due to their importance to the system and having a much longer lead time (upwards of a year) to procure the equipment. Due to this, the project has been split into two Phases where Phase I consists of generator replacements at Lift Station 22, 29 and 59, while Phase II contains replacements of the generators at the remaining Lift Stations (10, 12, 14, 15, 16, 26, 41). The equipment for Phase I has been ordered and the District is in possession of two of the three generators.
The remaining generator is expected to be delivered prior to the start of construction.
Phase II is currently in design and is anticipated to start construction in early 2027.
At the April 7, 2026 meeting, the District Board adopted EMID Resolution No. 3843 approving the plans and specifications for CIP 455-705 and authorizing the call for bids.
ANALYSIS
Bids for the construction of Phase I of CIP 455-705 were solicited through a formal bidding process. Bids for this project were opened on Wednesday, June 17, 2026, with the following results:
Name of Company Total Bid $ Over/(Under)
Engineer’s
Estimate
% Over/(Under)
Engineer’s
Estimate
Engineer’s Estimate $1,906,000.00 $ - -%
Telstar Instrumental $2,289,544.50 $383,544.50 20%
Anderson Pacific
Engineering Construction,
Inc.
$2,318,550.00 $412,550.00 22%
PC Inc. $2,404,398.24 $498,398.41 26%
After evaluating all submitted bid documents, staff determined that Telstar submitted the lowest responsible and responsive bid, in the amount of $2,289,544.50. The bid amount is above the engineer’s estimate by $383,544.50 or 20%. Staff met with F&L to discuss the difference between the Engineer’s estimate and the lowest bid. Ultimately, it was determined that the unfamiliarity to the cost of certain electrical work and general higher overall cost led to the difference in amounts. Staff conducted an extensive evaluation of Telstar and found their previous experience to be satisfactory and in line with what staff expect for this project. Telstar has provided all the required documents and licenses.
Following the award of the construction contract, the contractor shall provide all necessary paperwork and meet with the City for a preconstruction meeting. The contractor will have 180 calendar days to substantially complete the project from the date specified in the Notice to Proceed. Construction is anticipated to start in September 2026 and to be completed by February 2027. The contractor will coordinate with the City and any affected properties such as Bank of America for LS 29 work.
Project management will be conducted through City staff and Consor will provide construction management, inspection and support services through Task Order CON- 2026-01 throughout the duration of construction. F&L will provide construction support services during construction and produce record drawings post-construction.
CALIFORNIA ENVIRONMENTAL QUALITY ACT
The project has been found to be categorically exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15301(b) (Class 1-Existing Facilities) as the project consists of minor alteration of existing public facilities and equipment to provide public utility services and would result in negligible or no expansion of existing use.
FISCAL IMPACT
The fiscal impact of this resolution is $3,343,464.50, including (a) $2,289,544.50 for a construction contract award to Telstar; (b) $572,000 in construction contingency; (c) $400,920 for a construction management services task order to Consor; and (d) $81,000 in construction management contingency.
The construction contingency of $572,000, or approximately 25% of the total bid amount, is requested to pay for any unforeseen conditions during construction.
Construction contingency is typically 15%-20% of the total bid amount, however a higher contingency is recommended due to the complexity of the electrical work involved in the generator replacement and the increased potential for unforeseen conditions during construction, such as staff’s recent experience with projects within the corporation yard, where unidentified underground facilities were encountered that were not accurately reflected in the available record drawings.
There are adequate funds in the project budget for construction and construction management of Phase I. Any unused money, including contingency remaining following construction of Phase I, will be retained in the project budget for the remaining project scope to replace the emergency generators.
Additional funding necessary for completion of Phase II construction will be subjected to future appropriation when PSE approval and Call for Bids for Phase II is introduced to the District Board for approval.
Approved Current Budget Amount
Wastewater Capital Investment (455) $ 7,200,000.00
Current/Completed Expenditures
F&L Agreement $ 847,418.00
F&L Contingency $ 59,000.00
Miscellaneous Design Expenses (includes BAAQMD
permit fees) $ 24,710.50
Procurement of 3 Priority Generators, ATS and
associated equipment (Phase I) $ 1,715,136.00 Procurement of 7 Generators, ATS and associated
equipment (Phase II) $ 648,763.76
Construction Cost of the Removal of the Underground
Storage Tank $ 258,350.50
Anticipated Expenditures
Construction Bid submitted by Telstar (Phase I) $ 2,289,544.50 Construction Contingency (25%) (Phase I) $ 572,000.00 Construction Management by Consor $ 400,920.00 Construction Management Contingency (20%) $ 81,000.00 Subtotal Subject to Council Approval $ 3,343,464.50 Additional BAAQMD permit fees $ 3,921.00
Total Anticipated Expenditures to date $ 6,900,764.26
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Facilities and Infrastructure
ATTACHMENTS
Attachment 1 – Resolution
Attachment 2 – Task Order - CON-2026-01
Attachment 3 - Consor PMCM, Inc Proposal