REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Director Department of Public Utilities BY: JESUS A. GONZALEZ, PE, Public Utilities Manager Department of Public Utilities - Utilities Planning & Engineering PATRICIA DIEP, Supervising Engineering Technician Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Approve the First Amendment to the consultant services agreement with SEAM Group, LLC, to increase the compensation by $150,000, for a total amended contract amount not to exceed $387,200, inclusive of a $20,000 contingency, for the Occupational Safety and Health Administration Compliant Lockout-Tagout Program for electrical and mechanical equipment at the Fresno-Clovis Regional Wastewater Reclamation Facility (Council District 3) ..Body RECOMMENDATIONS Staff recommends that City Council approve the First Amendment to the consultant services agreement with SEAM Group, LLC, (Consultant) to increase the total contract amount from $237,200 to $387,200, inclusive of a $20,000 contingency, to develop an Occupational Safety and Health Administration (OSHA) Compliant Lockout-Tagout Program for electrical and mechanical equipment at the Fresno-Clovis Regional Wastewater Reclamation Facility (Wastewater Facility); and authorize the Director of Public Utilities, or designee, to sign the First Amendment on behalf of the City of Fresno (City). EXECUTIVE SUMMARY On March 10, 2022, the City entered into an Agreement with the Consultant to develop an updated, OSHA Compliant Lockout-Tagout Program for electrical and mechanical equipment at the Wastewater Facility for the total amount of $237,200. During field verification and identification of energy isolation points by the consulting firm, it was determined that additional Customized Lockout-Tagout Entry Control Procedures (ECPs) will be required at an additional cost of $150,000 due to OSHA regulation changes and equipment modifications. BACKGROUND The Department of Public Utilities' Wastewater Management Division desires to update the existing lockout-tagout program based on (1) changes to OSHA regulations and (2) additions of and modifications to equipment since its last implementation. The current equipment inventory for the Division exceeds 7,500 individual pieces. The program will establish updated procedures for de-energizing each piece of equipment, thereby making them inoperable and allowing for necessary inspections, repairs, and/or replacements in a safe environment. Additionally, the program will provide training for Wastewater Facility personnel to become self-sufficient in implementing the program for future equipment. The program is necessary to meet OSHA regulations and safeguard the physical well-being of personnel. On March 10, 2022, the City and Consultant, entered into an Agreement for consulting services associated with the OSHA Compliant Lockout-Tagout Program for a total contract amount of $237,200. The Agreement included a total fee not to exceed $217,200, a contingency not to exceed $20,000, and a work completion date of August 30, 2023. During the first phase of the implementing the program, the Consultant performed a field verification of assets and energy isolation points at the Wastewater Facility. Based on the number of energy isolation points identified, the number of ECPs required for the program exceeded the number estimated in the original bid specifications and used to establish the compensation in the original consultant services agreement. As such, the Consultant communicated that the fee to develop the additional ECPs is $150,000, which is consistent on a fee per ECP basis communicated in the original bid documents submitted by the Consultant. With the approval of the First Amendment, the total fee will increase $150,000 for a total contract amount of not to exceed $387,200, inclusive of a $20,000 contingency. The City Attorney's Office has reviewed the First Amendment and approved as to form. Upon approval by the Council, the Agreement will be executed by the Director of Public Utilities. ENVIRONMENTAL FINDINGS This approval is not a project for the purposes of CEQA Guidelines Section 15378. This approval proposes an amendment to an existing consultant services agreement for design of services. Therefore, the determination that it is not a project within the meaning of CEQA Guidelines Section 15378 is appropriate. LOCAL PREFERENCE Local preference does not apply to this action because this is an amendment to an existing agreement. FISCAL IMPACT There is no impact to the General Fund. This Project is located in Council District 3. Funding for the First Amendment is included in the Wastewater Management Division's Fiscal Year 2023 Capital Improvement Budget Sewer Enterprise Fund 40501. Attachments: Attachment 1 - First Amendment to the Agreement Attachment 2 - Original Consultant Agreement