SUPPLEMENTAL MATERIAL
1 Responses to City Council Agenda Items – January 20, 2026
Regular Meeting
Agenda Item #7: Authorize the City Manager to enter into the first amendment to the Maintenance and Trade Services agreement with East Bay Pool Service, Inc. for pool maintenance services and repairs, increasing the annual not-to-exceed amount by $75,000 to $254,950, increasing the cumulative not-to-exceed amount to $1,124,750, and extending the term through fiscal year 2027/28
1. The discussion mentions tile and plaster restoration. This most likely refers to spot or small surface area restoration. Please confirm it does not apply to entire pool tile and plaster restoration.
A. The work discussed in the report does not cover the entire pool tile and plaster restoration. It includes only targeted repairs to tile and plaster needed to continue operating the pool until full funding is identified. This scope of repair and budget was approved by the City Council in May 2025. The proposed amendment is just to increase contract capacity to allow the repair work to take place.
Agenda Item #8: Authorize the City Manager to amend the professional services contracts and increase the on-call general civil engineering professional services agreements with Pakpour Consulting Group, Inc., Mark Thomas, Wood Rodgers, Inc., and Ruggeri-Jensen-Azar to a grouped aggregate not-to-exceed contract limit of $1,250,000, an increase of $500,000, through June 30, 2026
2. Was the request for qualifications only directed to the four named firms, or were there other firms who responded?
A. The Request for Proposal (RFP) was publicly advertised and open to all interested consultants. Four consultants responded to the RFP and submitted a proposal. No other proposals were received.
Agenda Item #11: Authorize the City Manager to enter into an on-call professional services agreement with Pakpour Consulting Group, Inc. for Utility Program Manager Services, in an amount not-to-exceed $5 million for a five-year term and approve the budget amendments
3. The discussion states, “This provides cost savings benefits to the city under the time and materials payment methodology.” Describing T&M contracts in this way seems counterintuitive.
A. The statement that this approach “provides cost savings benefits to the City under the time-and-materials payment methodology” is intended to reflect
SUPPLEMENTAL MATERIAL
2 how the Task Authorization and milestone structure manages cost and risk, rather than suggesting that a time-and-materials (T&M) contract inherently results in lower costs.
Under the proposed agreement, Task Authorizations define a specific scope, budget, schedule, assumptions, and delivery milestones. Payment is withheld until defined milestones and quality standards are met, providing the City with strong cost and performance controls. While milestone-based payment structures are often associated with lump-sum contracts, the use of a not-to- exceed T&M model allows the City to pay only for actual labor and materials incurred to complete each milestone and to retain any unused budget.
The cost benefit to the City is achieved through:
• Avoidance of contractor contingency pricing, typically embedded in lump-sum contracts for tasks with uncertain scope or quantities; • Reduced change-order risk through clearly defined, short-duration Task Authorizations;
• Increased flexibility to adjust scope or sequencing, or cancel Task Authorizations if delivery expectations are not met; and • Payment only upon successful completion of defined deliverables and quality standards.
Accordingly, the benefit of this approach is best characterized as enhanced cost control, flexibility, and risk management, rather than direct cost savings attributable solely to the T&M payment methodology.
4. Was $5M the amount we estimated to spend for these services when we completed the water rates? For clarity, did we anticipate it to be $5M or did we think / budget $6M or less?
A: The Water Rate Study approved by Council included funding for resources to deliver the utility program. Similar analysis is also performed under the sewer system management plan. These resources may be provided either through additional in-house staffing or through professional consulting services. Given the current labor market challenges and the high level of specialized technical expertise required in water and wastewater operations, engineering, and regulatory compliance, the City determined that using consulting services is the most prudent and timely approach to ensure continuity and successful delivery of the capital and operational programs. This approach allows the City to move forward without delay on critical projects, maintain regulatory compliance, and manage workload fluctuations, while continuing active recruitment and development of an internal utility engineering and project management team for long-term capacity building.
SUPPLEMENTAL MATERIAL
3 Agenda Item #13: Accept the audited financial statements of the City of Pleasanton including the Annual Comprehensive Financial Report and other related audit reports for the fiscal year ended June 30, 2025
5. The discussion states that the PARS Conservative portfolio of $20.9 million resides as a restricted pension reserve in the General Fund. The PARS Capital Growth portfolio is in an internal service fund. Why is one counted in the General Fund and the other not?
A. It was set up this way due to the original funding source.
6. The report (page 221) states there was a $4.3 million loss on disposal of capital assets related to PFAS treatment and rehab rehabilitation project plus other projects. “Capital assets previously recorded were deleted” - which assets were deleted and what does that mean? The PFAS treatment project design was put on the shelf for possible future use if the groundwater wells project does not pan out.
A. The $4.3 million is the cost allocated to complete water related CIP projects that were terminated or no longer considered capital in nature due to the changes in project scope. Since the projects are not proceeding at this point, it was removed. If there is a change in the future, the design work can still be used for the project. Please see detail listing of projects on page 25- Management's Discussion and Analysis, Business-type activities section, bullet #3 of the FY25 Annual Comprehensive Financial Report (ACFR).
7. What is the date by which CALPERS informed the City what its investment earnings were for 2023/24 (when we could know how much higher than expected it was)?
A. CalPERS usually reports the preliminary investment return in July and calculates the final return later. The final investment return was 9.5% for FY 2023/24 and 12.1% for FY 2024/25.
8. The report (page 238) states pre-funded pension contributions of $27.3 million were made through June 30, 2025. Is this the annual contribution for the fiscal year?
A. No. The $27.3 million stated in the transmittal letter represents the cumulative lump-sum payments made to CalPERS through June 30, 2025. The City has not made additional payments in the last several years.