City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01353 9/2/2025
Agreement: Purchase of Synario Rate Model Software, Support, and Services [Two-Thirds Vote Required]
File ID: 2025-01353
Location: Citywide
Recommendation: Pass a Motion by two-thirds vote per City Code Section 3.56.230(E) authorizing the Interim City Manager or designee to: 1) suspend competitive bidding in the best interest of the City, for the purchase of Synario Rate Model Software, Support, and Services; and 2) execute a Goods and Services Agreement with PFM Solutions, LLC. for the purchase of Synario Rate Model Software, Support, and Services for five-year term in an amount not-to-exceed $368,750.
Contact: Deanne Neighbours, Logistics Manager, [email protected], (916) 808- 3536; David Levine, Long-Range Financial Planning Manager, [email protected], (916) 808-6213; Ryan Pham, Business Services Division Manager, [email protected], (916) 808-8995; Sherill Huun, Interim Director, [email protected], (916) 808-1455; Department of Utilities
Presenter: None
Attachments:
1-Description/Analysis
2-Agreement
Description/Analysis
Issue Detail: The Department of Utilities (DOU) uses cloud-based software to provide rate modeling and long-term forecasts for each of the four utility enterprise funds (Water, Wastewater, Storm Drainage and Storm Drainage Property Fee) to ensure appropriate rate structures exist for providing fiscal resources to meet DOU’s critical operational and infrastructure needs and fulfill legal and policy requirements.
DOU’s existing five-year agreement with PFM Solutions LLC. for use of their Synario Rate Modeling software, which was competitively procured in 2020, is set to expire on September 14, 2025.
Continued use of the software is necessary to support the department’s current Water and Wastewater Funds rate adjustment efforts, as well as future rate development needs for the other
File ID: 2025-01353 9/2/2025
utility funds.
Policy Considerations: City Council approval is required for agreements of $250,000 or more per City Code 3.56.090.
Economic Impacts: None.
Environmental Considerations: The activity described in this report has been determined to not be a project pursuant to the California Environmental Quality Act (CEQA). CEQA Guidelines Section 15378(b). The activity is a continuing administrative or maintenance activity, such as purchases for supplies or personnel related actions [CEQA Guidelines section 15378 (b)(2)] and is not subject to CEQA [CEQA Guidelines Section 15060(c)(3)].
Sustainability: The proposed contract is consistent with the 2040 General Plan under policy PFS-
3.1 as it is related to public facilities and safety, including providing reliable water, wastewater, and stormwater drainage service to the City of Sacramento.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: The use of rate modeling software to provide long-term financial forecasts is essential to ensuring the financial viability of the utility enterprise funds and DOU’s continued compliance with the cost-of-service requirements for property related fees, as set forth in California State law (Proposition 218), financial reserve policies, and debt service covenants.
PFM Solutions, LLC. is the author and sole supplier of the Synario rate modeling software, which has been utilized by DOU since 2020 and was originally selected through Request for Proposal P20141661010.
City Code Section 3.56.230 allows the City Council to suspend competitive bidding when the City Council determines that it is in the best interest of the City to do so. Suspension of competitive bidding is in the City’s best interest because the software is already configured to meet DOU’s needs, staff has been trained in its use and has been utilized daily since 2020 to support the department’s financial forecasting needs. Purchasing and implementing new rate modeling software to accomplish similar tasks would create significant and unnecessary delays in the department’s current Water and Wastewater rate planning efforts and potentially be more expensive due to the extensive amount of software integration, training and implementation.
Financial Considerations: Funding for anticipated spending during the first year of this agreement of approximately $60,000 has been included in the approved Fiscal Year 2025/26 DOU Budget.
Funding for future fiscal years shall be subject to funding availability in the adopted budgets for the applicable fiscal year in an amount not to exceed $368,750 over the five-year term. Purchase orders
File ID: 2025-01353 9/2/2025
encumbering funds under this agreement will not be created until needs and funding are identified in the applicable budget (operating, capital, multi-operating, or grants).
There are no impacts to the General Fund for this Agreement.
Local Business Enterprise (LBE): PFM Solutions, LLC. is not an LBE. The minimum LBE participation requirement is waived as the City is suspending competitive bidding and utilizing an alternate procurement method to select a vendor.