REPORT TO THE CITY COUNCIL FROM: MICHAEL CARBAJAL, Director Department of Public Utilities BY: BROCK D. BUCHE, PE, PLS, Assistant Director - UP&E Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Approve the First Amendment to the consultant services agreement with Bay Area Coating Consultants, Inc., to increase the original contract amount of $71,516 by $9,685 for a total contract amount of $81,201 to provide additional services during the construction phase of the Rehabilitation of Digesters 6 & 8 projects (Council District 3). ..Body RECOMMENDATIONS Staff recommends that City Council approve the First Amendment to the consultant services agreement (Agreement) with Bay Area Coating Consultants, Inc., (Consultant) to fully utilize the contract contingency and additionally increase the compensation by $9,685 to complete the coating inspection services on the Digesters 6 & 8 Rehabilitation projects (Projects) at the Regional Wastewater Reclamation Facility; and authorize the Director of Public Utilities, or designee, to sign the Amendment on behalf of the City of Fresno (City). EXECUTIVE SUMMARY On June 30, 2020, the Department of Public Utilities entered into an Agreement with the Consultant in the amount of $71,516, inclusive of a contingency amount of $6,500, to provide professional coating inspection services for the Projects. Due to the unanticipated delays and difficulties with the coating application, the duration of the Consultant's services increased for the additional inspection work through the completion of the Projects. This Amendment will fully utilize contract contingency and increase the compensation by $9,685 for a total consultant fee of $81,201. BACKGROUND Contracts for the rehabilitation of Digesters 6 and 8 at the Regional Wastewater Reclamation Facility along with a specialty coating inspection were previously awarded by City Council. Following the cleaning portion of work for Digesters 6 and 8, City staff discovered failed coating peeling off the walls, visible gaps in the skirt seal around the digester roof, and stains on the roof from gasses escaping through failing welds. The Projects consist of rehabilitation of the digesters, including the removal and replacement of the existing failing interior coating, application of a ferric corrosion inhibitor, and a new roof coating. The identified deficiencies in the digester units required rehabilitation work by the construction contractor. The requested increase in compensation will allow for completion of coating inspection services through completion of the Project. The increase is a result of unanticipated delays and difficulties with the application of the coating products, which required the coating inspector be onsite an extended period of time to observe the removal of the inadequate coating, surface prep and recoating. Staff has negotiated a fee increase of $9,685, for completion of services. The services required by this Agreement will be completed within the original term of the Agreement. Attorney's Office has reviewed and approved as to form this Amendment to the Agreement. Upon approval by the City Council, the Amendment will be executed by the Director of Public Utilities, or his designee. ENVIRONMENTAL FINDINGS Pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15378(b)(5), this is not a "project" for the purpose of CEQA, as this is an organizational or administrative action of the government to enforce an existing obligation, and will not result in a direct or indirect physical change in the environment. LOCAL PREFERENCE Local preference does not apply to this action because this is an amendment to an existing consultant services agreement. FISCAL IMPACT This amendment has no financial impact on the General Fund. This Project is located in District 3. Funding for the services is budgeted in the Wastewater Management Divisions Fiscal Year 2022 Enterprise Fund 40501. Attachments: Attachment 1 - First Amendment to Agreement Attachment 2 - Consultant Services Agreement