City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01457 9/9/2025
Supplemental Agreement: Water System Asset Management Program Development File ID: 2025-01457
Location: Citywide
Recommendation: Pass a Motion authorizing the Interim City Manager or designee to execute Supplemental Agreement No. 2 to City Agreement 2023-0591 with Carollo Engineers, Inc. for additional professional owner advisory consultant services to support the Water System Asset Management Program Development, for an amount not-to-exceed $796,287, bringing the agreement’s total not-to-exceed amount to $1,045,684 and extend the contract expiration to June 30, 2029.
Contact: Colleen Karbowski, Project Manager, (916) 808-1474, [email protected]; Michelle Carrey, Engineering & Water Resources Interim Division Manager, (916) 808-1438, [email protected]; Sherill Huun, Interim Director of Utilities, (916) 808-1455, [email protected]; Department of Utilities
Presenter: None
Attachments:
1-Description/Analysis
2-Supplemental Agreement
Description/Analysis
Issue Detail: Staff recommends Council approve Supplemental Agreement No. 2 with Carollo Engineers Inc., to continue professional owner advisory consultant services into Phase 2 of the development of the Department of Utilities’ (DOU) Water System Asset Management Program.
Currently, DOU has a developing water system asset management program and multiple systems for managing and maintaining asset information. Some of these systems are not electronically linked resulting in duplicate entries and storing information across multiple platforms leading to incongruences. DOU would like to transition from the data silos to interconnected business systems thereby improving its process to implement reliability centered maintenance, streamline operations, and improve asset management throughout the department. Other objectives are to reduce reactive labor required for asset maintenance, researching asset history information, benchmarking, reporting
File ID: 2025-01457 9/9/2025
key performance indicators, improving record keeping, providing comprehensive fiscal decision making based on level of service and consequence of failure/risk-based models, assurance of regulatory compliance, justification for rate increases to the public, and other pertinent asset management functions. These objectives can be achieved under a fully developed, multi-phase, asset management program.
Policy Considerations: The proposed supplemental agreement exceeds the City Manager’s approval authority, requiring Council approval per City Code section 3.04.020.
Economic Impacts: None.
Environmental Considerations: The action on a supplemental agreement for consultant services related to the Water System Asset Management Program is an administrative activity that will not have a significant effect on the environment and does not constitute a “project” as defined by California Environmental Quality Act (CEQA) [CEQA Guidelines Sections 15378(b)(2 and 5)] and is therefore, not subject to CEQA [CEQA Guidelines Section 15060(c)(3)].
Sustainability: The proposed amendment to the contract is consistent with the 2040 General Plan Policy PFS-2.2 for maintenance of critical infrastructure and PFS-3.2 for utility sustainability and resilience. The amendment addresses the sustainability and resiliency needs of DOU’s drinking water system facilities and infrastructure by developing and implementing a formal asset management program to support decisions for allocating resources to mitigate risk and optimize the life cycle cost of managing the DOU’s systems of assets.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: On June 2, 2023, after a robust RFQ process, a contract with Carollo Engineers, Inc. was executed to complete Phase 1 of the development of the Water System Asset Management Program.
The primary objective of the RFQ was to solicit owner advisory consultant support for the development of a Water System Asset Management Plan (AMP). The Water System AMP serves as a 3- to 5 -year roadmap for DOU to advance and improve its current asset management practices on all DOU water infrastructure asset categories. The RFQ determined that the project would be divided into a number of phased components with subtasks to allow mid-course adjustments throughout the project and time for DOU staff to participate. It was expected that each component of work would take 6 months to two years with four to five years to complete the entire project.
Phase 1 commenced at the time of contract execution in June 2023 and has resulted in the successful engagement of internal stakeholders, creation of improved asset management related business processes, production of several formal asset management guidance documents including
File ID: 2025-01457 9/9/2025
the Water System Asset Management Framework and is nearing completion late Summer 2025 with the draft pilot asset management plan for drinking water storage facilities. Phase 2 will continue from where Phase 1 ends with finalizing the water storage facility asset management pilot plan and further supporting the development of a formal Asset Management Program to manage critical drinking water system assets.
One of the internal objectives of Phase 1 was to evaluate Carollo’s performance in the consultant role to determine their suitability for continuing work in Phase 2. The inclusion of the additional Phase 2 work, as part of this project, is in the best interest of the City as Carollo Engineers, Inc. has already demonstrated experience, capacity, and expertise to deliver the necessary services, as well as a sufficient understanding of DOU’s needs and the ability to deliver professional asset management owner advisory services.
Financial Considerations: The original not-to-exceed amount of the agreement was $249,397. The net change by previous supplemental agreements in the amount of $0 did not change the agreement not-to-exceed amount of $249,397. The proposed Supplemental Agreement No. 2, in the amount of $796,287, would increase the agreement not-to-exceed amount to $1,045,684.
Funding for this agreement of approximately $500,000 is available in the Fiscal Year 2025/26 Asset Management Program (I14010700, Fund 6005) DOU budget. Funding for future fiscal years shall be subject to funding availability in the adopted budgets for each applicable fiscal year over the four-year term with a total not to exceed amount of $1,045,684. Purchase orders 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 General Funds allocated or planned for this project.
Local Business Enterprise (LBE): Carollo Engineers, Inc. is a LBE.