Signal Hill’s main potable water storage, Gundry Reservoir, is set to receive a full rehabilitation for the first time in its nearly 100 year history.
The city council approved a contract with Spiess Construction Company to complete the project for $6.7 million, but budgeted up to $7.4 million to account for unforeseen changes. The rehabilitation project will begin in October 2025 and is expected to be completed in May 2026.
Gundry Reservoir was built in 1929 and stores 5 million gallons of potable water transported from Signal Hill’s water wells. The reservoir still has its original walls and interior, but had its roof replaced in 1990. That roof collapsed in 2006, prompting an emergency replacement using a temporary steel structure.
Public Works Associate Engineer Jesus Saldana said due to “competing priorities, funding and other factors” they have not been able to replace Gundry Reservoir’s roof again until now. It was deemed a critical need in the Water Master Plan that city council approved on June 4.
Public Works engineers originally estimated the repairs to cost around $2.8 million, but after releasing a request for bids they quickly realized it was going to cost more. This was due to an increase in material costs such as aluminum and steel, the unknown condition of the concrete floor of the basin and difficulty reaching the sand basin.

The timeline requested by the City also contributed to the cost of the project. The City will have to import water from the Metropolitan Water district while Gundry Reservoir is down. Signal Hill set a 120-day timeline for the project to minimize importing water, meaning construction will likely have to take place on the weekends and evenings outside of typical working hours, resulting in higher labor costs.
The water fund could not cover the $6.7 million expense by itself, so the City approved a $3 million “bridge” loan from its General Fund, to be paid back over 20 years with a 3% interest rate. The City has already spent $265,000 in design costs for the project. The final budget approved is $7,377,851, including a 10% contingency for unforeseen costs.
Improvements at Gundry will take place in several steps:
- Demolishing the reservoir and sand basin roof structures.
- Removing sand material and excess water from the basin.
- Repairing spalling concrete within the reservoir and basin.
- Repairing central piping within the reservoir.
- Recoating the interior of the reservoir to waterproof the walls and floor.
- Installing new steel and aluminum roof structures.
The sand basin is a rectangular building north of the reservoir which “settles out sand before it enters into the system,” which is naturally in the water from wells 7 and 10. The sand sits at the bottom of the basin while the cleaned water rises to the top and goes into the reservoir.

To prepare for construction, Saldana said the City will drain the water from Gundry Reservoir and “pump it into the network.” Once the water levels are too low to be pumped, they will vacuum out the remaining water and dispose of it through catch basins in Los Angeles County.
Public Works Director Thomas Bekele said the City will have to “dechlorinate” the water before they discharge it.
Water that is pumped from wells 7 and 10 during the time of construction will be stored at the wells, Saldana said. Mayor Keir Jones asked if the City can sell some of the water that’s being pumped to neighboring jurisdictions, but Saldana said it likely won’t be enough water to sell. However, he said those protocols are in place in case something changes.
Public Works said Reservoir Park will remain accessible to residents during construction. The roof replacement, which is the last step in the project, will likely require the north section of the park to be closed off.
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