City Council Agenda Report
August 4, 2026
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: Albert Mendoza, P.E., Director of Public Services/City Engineer Jacqueline Koontz, P.E., Senior Civil Engineer
Christopher Enriquez, Management Analyst
SUBJECT: AMENDMENT NO. 4 – SEWER SYSTEM MAINTENANCE SERVICE Background:
On July 18, 2018, the City entered into an initial five-year contract with Tunnelworks Services, Inc. (Tunnelworks) to perform citywide sewer maintenance service. The scope of work includes cleaning the entire sewer system citywide; servicing 26 sewer siphons across 18 locations quarterly; maintaining three sewer lift stations every three months; conducting closed-circuit television (CCTV) inspections of sewer lines in accordance with the Sewer System Management Plan (SSMP); and providing emergency sewer cleaning response, as needed.
The City and Tunnelworks operated under the original agreement, with an initial term of five- years, which included annual alternating rate adjustments of 1.5% and 1.0%. After the initial term, with successful performance and mutual agreement between parties, the contract allowed one-year term extensions from July 1 st through June 30 th each year. Three subsequent term extensions (amendments), which continued with alternating rate adjustments of 1.5% and 1.0%, were approved administratively and funded through the annual budgeting process. As a result, the original agreement amount has increased from $2,530,396.78 to $4,126,849.39. Term extensions and amounts approved during the annual budgeting process for Fiscal Year 2023/24 through FY 2025/26 should be documented as Amendment No’s. 1–3.
Tunnelworks has played a critical role in providing sewer maintenance services over the past eight years. The Public Services Department intends to solicit bids for the City's sewer maintenance services in the coming months. In the interim, continuing the agreement with Tunnelworks enables the City to remain compliant with SSMP requirements and ensures City staff has contracting support services for any emergencies that may arise while a contractor is being procured. Extending the sewer maintenance agreement through FY 2026/27 would set the annual compensation at $544,608.81 through June 30, 2026, bringing the cumulative not- to-exceed amount to $4,671,458.19.
City Council August 4, 2026
Contract Amendments for Sewer System Maintenance Page No. 2 1 4
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Contract Terms Annual Adjustments Not-to-Exceed Amounts Initial Term 0% $493,100.00
Year 2 1.5% $500,496.50
Year 3 1.0% $505,501.47
Year 4 1.5% $513,083.99
Year 5 1.0% $518,214.83
Original Contract Total: $2,530,396.78
Contract Terms Annual Adjustments Not-to-Exceed Amounts 1st Term Extension (Year 6) 1.5% $525,998.04
2nd Term Extension (Year 7) 1.0% $531,247.92
3rd Term Extension (Year 8) 1.5% $539,216.64
4th Amendment (Year 9) 1.0% $544,608.81
Original Contract with Extensions Total: $4,671,458.19
Fiscal Impact:
Funds for the sewer system maintenance services are included in the approved FY 2026/27 Sewer Budget.
Citizens Advised:
N/A
Strategic Plan 2023 Implementation:
The recommended action will further the City’s Strategic Plan Goal 2: Work in Partnership with Our Community to Achieve Safe and Livable Neighborhoods; Objective 1: Re-invest in existing and aging infrastructure.
Recommended Action:
Staff recommend City Council approve Amendment No. 4 for Tunnelworks Services, Inc. for sewer maintenance services citywide, in the amount of $544,608.81 for Fiscal Year 2026/27, for a total not-to-exceed Agreement amount of $4,671,458.19; and authorize the City Manager to execute the contract and any amendments; provided there is funding in the budget and it is within the City Manager’s signing authority; on behalf of the City, in a form approved by City Attorney.
City Council August 4, 2026
Contract Amendments for Sewer System Maintenance Page No. 3 1 4
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Attachments:
Draft Contract Amendment No. 4 – Tunnelworks – FY 2026/27