City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2026-00626 3/10/2026
[Contract Supplement] Last Mile Connectivity Project (A07001800) File ID: 2026-00626
Location: Citywide
Recommendation: Pass a Motion authorizing the City Manager or designee to execute Supplemental Contract No. 5 to City Contract 2025-0292 with GHD Inc.; and 2) increase the budget for an amount not-to-exceed $343,757, increasing the total not-to-exceed amount to $1,332,335.95.
Contact: Manuel Martinez, IT Manager, (916) 808-8785, [email protected]; Cassy Vaioleti, IT Program Specialist, (916) 808-8047, [email protected]; Darin Arcolino, Chief Information Officer, (916) 808-0403, [email protected]; Information Technology Department; Adam Randolph, Senior Engineer, (916) 808-7803, [email protected], Public Works Department
Presenter: None
Attachments:
1-Description/Analysis
2-Supplemental Contract
Description/Analysis
Issue Detail: On September 29, 2023, staff applied for grant funding through the California Public Utilities Commission (CPUC) Last Mile Federal Funding Account (FFA) to implement our "Sacramento Last Mile Connectivity Project" to connect unserved communities to affordable broadband infrastructure. The unserved locations were selected based on criteria established by the CPUC's FFA program while overlaying the City network with the FFA Public Map, which identifies areas at the census block level lacking reliable broadband service of at least 25 Mbps downstream and 3 Mbps upstream. On September 13, 2024, the City received an award letter for $38,696,843 after the CPUC voted and approved the grant award in Resolution T-17835.
On October 15, 2024, Council adopted Resolution 2024-0309 authorizing staff to accept the Last Mile Connectivity Grant (G07000200) from the CPUC to expand internet access for unserved communities in Sacramento. These communities across California face many barriers to deploying resilient and accessible broadband networks. To appropriately recognize the capital improvements of
File ID: 2026-00626 3/10/2026
this project, staff recommend the budget moved from Last Mile Connectivity Grant (G07000200) to Last Mile Connectivity Project (A07001800).
On October 31, 2024, the Department of Public Works, in collaboration with the Information Technology Department, issued a competitive solicitation for a consultant to provide preliminary engineering, design, and construction support services for the Last Mile Connectivity Project. Two firms submitted proposals in response. On March 25, 2025, the City Council, through Resolution 2025-0072, approved contracting with GHD, Inc. for these services. To enable GHD, Inc. to perform additional design work, City Council approval is required to move forward with Supplemental Agreement No. 5 with GHD, Inc.
Policy Considerations: Sacramento City Code Section 3.04.020 limits the authority of the City Manager to execute contract amendments up to 8% of the original contract price. Council approval is required since this supplemental agreement will exceed the City Manager’s signing authority because the total not to exceed amount of the agreement will be increased by more than 8% of the original contract price upon execution of this supplemental agreement Economic Impacts: None.
Environmental Considerations: Contracting for telecommunications support equipment and services is an administrative activity that will not result in direct or indirect physical changes in the environment and is not a project subject to California Environmental Quality Act (“CEQA”) review.
CEQA Guidelines section 15378 (b)(5).
The project is consistent with the 2040 General Plan and certified Master EIR (Resolution No. 2024- 0065) is categorically exempt. The future infrastructure installation project(s) that would be funded by the fiscal activities authorized herein would involve existing small structures and minor alterations to land, including minor trenching and backfilling where the surface is restored as described in sections 15301, 15303, and 15304 (f) of the CEQA Guidelines (14 C.C.R. §§ 15000, et seq.).
Sustainability: Under Phase 1 of the City of Sacramento’s Climate Action Plan, all applicable “Green” technology initiatives will be considered prior to the purchase of IT cabling and wiring services.
Commission/Committee Action: None.
Rationale for Recommendation: The telecommunications, wiring, design and constructions services will allow the City to achieve the deliverables of the Last Mile Connectivity Project. The Department of Information Technology and Public Works are responsible for managing telecommunications cabling, network, wiring, design and construction services throughout the City but lacks the necessary staff to meet urgent and/or high priority requests above normal daily
File ID: 2026-00626 3/10/2026
workload. Also, from time-to-time specialty projects require specialized equipment and services that the City does not own. Having qualified contractors will help ensure the project deliverables. Staff therefore recommend approving Supplemental Agreement #5 with GHD, Inc.
Financial Considerations: No additional funding is needed. There is sufficient funding in the Last Mile Connectivity Project (A07001800). The City adopted Resolution 2024-0309 accepting the Last Mile Grant with the CPUC to receive funding and reimbursement for the fiber installations.
Local Business Enterprise (LBE): Not applicable.