DEPARTMENT
Business Services, Information
Technology Services (ITS) AGENDA NO. 7e
MEETING DATE
January 13, 2026
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Contract/Project Manager: Rajesh Prasad
Approve Amendment No. 1 to PRO.0170, Stormwater Management System Contract
Summary of Proposed
Commission Action:
Approve Amendment No. 1 to Contract No . PRO.0170, Stormwater Management System Billing Project, with Langan CA, Inc., increasing the contract amount by $2,640,422 and exercising the option to extend the contract duration by three years, for a total not-to-exceed contract amount of $7,640,422, and total contract duration of 10 years, to continue providing managed services and managed as-needed services and maintaining the Stormwater Management System to track and invoice for stormwater runoff as a component of the retail customer sewer service charge.
Background: The San Francisco Public Utilities Commission (SFPUC) initiated the Stormwater Management System (SDMS) to manage the retail customer billing for the stormwater charge component of the sewer service charge.
Previously, under the existing contract, the wastewater component and the stormwater component of the sewer service charge were successfully bifurcated. The stormwater component is calculated based on property size and the area of paved or impermeable surf
aces that are unable to absorb
excess rain. This rate structure does not change the total amount of revenue collected by the SFPUC; it is simply a more scientific and equitable way of allocating the costs of collecting and treating stormwater among ratepayers.
The SMDS supports SFPUC’s Customer Care and Billing system by providing additional functionality to track and bill customers for stormwater runoff as a component of the total sewer service charge through the integrated use of Geographic Information System (GIS) data. The SMDS requires additional funding for annual m anaged services and m anaged as-needed services, including the maintenance and management of a new credits module in the system. SFPUC customers may qualify for a stormwater credit to reduce the stormwater component of their bill if they take measures to reduce stormwater runoff from their property by installing such green infrastructure as rain gardens, permeable pavement, or rain harvesting cisterns and the like.
On August 25, 2020, by Resolution No. 20-0173, this Commission awarded Contract No. PRO.0170, Stormwater Management System Billing Project, to Langan CA, Inc., with an amount not to exceed $5,000,000 and with a duration of seven years and an option to extend an additional three years.
Agenda Title: PRO. 0170, Stormwater Management System (SDMS) Billing Project Commission Meeting Date: January 13, 2026
Scope of Contract: The contract work location: SFPUC Headquarters, 525 Golden Gate Avenue, San Francisco, CA 94102
This contract provides the design, code, implementation and management of the SDMS and maintenance and modifications to the Customer Care and Billing System. Phase 1 was the implementation phase and Phase 2 is the managed services phase.
• Phase 1: Implementation Services - build a completely new enterprise-class web-based system, with GIS capabilities and to modify the existing billing system to bifurcate the sewer service charge into two components, the sanitary sewer charge and the stormwater runoff charge; and
Phase 2: Managed Services – manage the SDMS five years post go- live with an option to extend for an additional three years.
Amendments to the
Contract:
Proposed Amendment No. 1: Staff recommends Commission approval of Amendment No. 1 to increase the contract amount by $2,640,422, and extend the contract duration by three years , to continue m anaged services and managed as-needed services to maintain the SDMS through 2030for a total not-to-exceed contract amount of $7,640,422 and a total contract duration of 10 years.
Justification for continuation and increase of as-needed services (Task 2.4.16 Managed Service Phase Systems Changes) : SDMS supports three core functions: (1) i nterfacing with other City departments for legal property owner and parcel GIS data ; (2) serving as the public -facing portal for stormwater runoff information and appeals; and (3) enabling SFPUC staff to review data and process appeals of the sewer service charge stormwater component. During the initial implementation, SDMS was developed based on requirements known at the time, with the understanding that future enhancements would be needed to address regulatory changes, operational needs, and updates to te chnical infrastructure across City departments. The as-needed services task was established specifically to support such evolving requirements during the managed services period of the contract.
Over the past 2.5 years of operations, SFPUC staff identified new needs for system integration . These include interface and feature modifications required by system changes at the Assessor’s Office, updates associated with SFPUC’s domain name change, additional reporting capabilities, new tools for identifying and resolving legal owner data anomalies, expanded language support for the public website, and enhanced operational features to improve staff efficiency, among others.
The requested increase in capacity—from $485,000 to $1,800,000—is based on estimated costs to implement these identified enhancements. Work will be prioritized and executed over the next five years, contingent on available budget.
Agenda Title: PRO. 0170, Stormwater Management System (SDMS) Billing Project Commission Meeting Date: January 13, 2026
Accordingly, staff requests approval to increase the maximum capacity of the task to $1,800,000 and to allow the optional extension of three years in the contract to be exercised.
Justification for continuation and increase of Managed Services (Task 2.4.15 Managed Services for SDMS) : The original plan to have Langan CA, Inc., host and manage the SDMS for an initial five -year term was based on three key considerations:
1. Cloud-First Requirement: SFPUC Information Technology Services ( ITS) policy requires all new applications to be cloud- hosted. Accordingly, the Request For Proposals specified that SDMS be deployed on a cloud infrastructure.
2. SDMS Operations and Skill Requirements: SDMS operational needs do not warrant full -time in -house roles, and the specialized skills required for its technical management are not available within the SFPUC ITS team. These skills differ significantly from existing team capabilities, and current workloads prevent staff from assuming these responsibilities. As a result, the decision was made to have the vendor both host and manage the system.
3. Vendor Performance Evaluation: The initial contract structure included an optional three-year extension to allow the City to evaluate vendor performance before deciding whether to transition management in -house or solicit a new vendor. Langan provided pricing for this optional period in their original proposal.
At present, the factors supporting vendor -managed services remain unchanged. SFPUC ITS staffing constraints persist and are compounded by ongoing commitments to multiple Customer Service Bureau transformation initiatives, with capacity limitations expected through the term of the contract extension.
Funding and Costs: Funding Source: ITS Operating Fund for Business Applications
Original Not-to-Exceed Amount: $ 5,000,000
Proposed Modification No. 1: $2,640,422
Total [Proposed] Not-To-Exceed Contract Amount: $7,640,422
Schedule: Original Duration: Seven years
Proposed Modification No. 1 Duration: Three years
Total [Proposed] Not-To-Exceed Contract Duration: 10 years
Local Business
Enterprise Utilization
and Non-
The Contract Monitoring Division waived the Local Business Enterprise subconsultant participation requirement for this contract.
Agenda Title: PRO. 0170, Stormwater Management System (SDMS) Billing Project Commission Meeting Date: January 13, 2026
Discrimination in
Contracting:
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) requires the services of qualified software engineering and Geographic Information System (GIS) database consultant to provide specialized system development, implementation, and managed services to supplement SFPUC staff as necessary to effectuate its Stormwater Management System Billing Project to manage the sewer service charge stormwater runoff component; and
WHEREAS, On August 25, 2020, by Resolution No. 20-0173, the Commission awarded Contract No. PRO.0170, Stormwater Management System Billing Project, to Langan CA, Inc., with an amount not -to-exceed $5,000,000 and with a duration of seven years , with an option to extend three years; and
WHEREAS, Funds for this contract are available from Project No. 1000032862, Stormwater Charges Billing Project, I nformation Technology Services Operating Fund for Business Applications; therefore, be it
RESOLVED, That this Commission hereby approves Amendment No. 1 to Contract No.
PRO.0170, Stormwater Management System Billing Project, with Langan CA, Inc., to continue providing Stormwater Management System services , increasing the contract amount by $2,640,422, and exercising the option to extend the contract duration by three years , for a total not-to-exceed contract amount of $ 7,640,422, and a total contract duration of 10 years.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of January 13, 2026.
Director of Commission Affairs
San Francisco Public Utilities Commission
WHEREAS, Staff recommends this Commission approve Amendment No. 1 to Contract No. PRO.0170, Stormwater Management System Billing Project, to increase the contract amount by $2,640,422, and to exercise the option to extend the extend the contract duration by three years, to continue providing Stormwater Management System services for the Customer Care and Billing system to track and bill customers for stormwater runoff as a component of the retail customer sewer service charge, for a not-to-exceed contract amount of $7,640,422 and a contract duration of 10 years; and