Title
[Contract Amendment] Drainage Capital Improvement Project (CIP) Engineering Services
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FileID
File ID: 2026-00893
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion: 1) authorizing the City Manager or designee to execute Contract Amendment No. 1 to City Agreement No. 2025-0417 with Dugan Management and Engineering, Inc. (DME) to provide additional extension of staff services through June 30, 2027, (W14000200, Fund 6021), for an amount not to exceed $275,000, bringing the agreement’s total not-to-exceed amount to $518,440; and 2) Ratifying purchases made to DME in the amount of approximately $99,000 since the agreement expired December 31, 2025.
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Contact
Contact: Brett Grant, Supervising Engineer, (916) 808-1413, bgrant@cityofsacramento.org; Sherill Huun, Engineering & Water Resources Division Manager, (916) 808-1455, shuun@cityofsacramento.org; Dalia Fadl, Director, (916) 808-3765, dfadl@cityofsacramento.org; Department of Utilities
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Contract Amendment
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Description/Analysis
IssueDetail
Issue Detail: Staff recommends City Council approve Contract Amendment No. 1 with DME for additional Drainage Engineering extension of staff services. These services include, but are not limited to project management, design, and additional miscellaneous Capital Improvement Project (CIP) related tasks. Approval would allow the Consultant to complete work on several critical CIP’s to which they are currently providing assistance.
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PolicyConsiderations
Policy Considerations: City Council approval is required for contract amendments to agreements of $250,000 or more per City Code 3.04.020.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: The proposed activity is not a project pursuant to the California Environmental Quality Act (CEQA) Guidelines Section 15378(b)(2 and 5). The activities described in this report are continuing administrative activities, such as purchases or personnel-related activities, and organizational or administrative activities that will not result in direct or indirect physical changes on the environment. This activity is not subject to CEQA pursuant to CEQA Guidelines Section 15060(c)(3).
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Sustainability
Sustainability: The proposed project is consistent with Goal PFS-3.1 in the 2040 General Plan as it continues to provide reliable water, wastewater, and stormwater drainage utility services.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: DME, the Consultant, is currently performing work as an extension of City of Sacramento (City) staff under Contract No. 2025-0417. Their familiarity with the City’s projects and processes allows DME to provide complete project delivery on time and within budget with the extension of services. DME is currently providing design assistance with the North 5th Street Parallel Trunk Main and the Saint Luke’s Detention Basin projects that are currently incomplete and need to go to construction this summer.
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FinancialConsiderations
Financial Considerations: The original not-to-exceed amount of the agreement was $243,440. The proposed Contract Amendment No. 1, in the amount of $275,000, would increase the agreement not-to-exceed amount to $518,440. Sufficient funds are available in the Base CIP Contingency-Drainage Program (W14000200, Fund 6021) to execute the agreement.
The original agreement has sufficient funds to ratify purchases made to DME since the original agreement expiration date of December 31, 2025.
There are no General Funds allocated or planned for this project.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Dugan Management and Engineering, Inc. is an LBE.
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Background
Background: In December 2024, the Department of Utilities issued an RFQ for extension of staff services in the drainage engineering program. Statements of Qualifications were due January 16, 2025. Dugan Management and Engineering was the sole respondent and was selected to supplement staff. DME is currently the lead designer for two CIP Projects that will be going to construction this summer. They also provide miscellaneous support as needed for other CIP needs. The contract amendment is needed to continue services for an additional year.
The motion to ratify purchases made to DME since the original agreement expiration date of December 31, 2025, is requested because of an inadvertent error made by DOU engineering and billing staff. During the expiration time period, the original project manager terminated employment with the City, and a new project manager was assigned. Because of the budget remaining at the time, the new project manager did not confirm the agreement expiration date and assumed it extended to the end of the fiscal year, common for these types of agreements. This Council action will help correct this error and allow for payment of the outstanding invoices.
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