CONTRACT 3168A Amendment CLOSEDFIRST AMENDMENT TO
AGREEMENT NO. 3168 BETWEEN
THE CITY OF EL SEGUNDO AND
JOE'S SWEEPING, INC.
THIS FIRST AMENDMENT ( "Amendment ") is made and entered into this X6+4 day of
May_ 2006, by and between the CITY OF EL SEGUNDO, a general law city and municipal
corporation existing under the laws of California ( "CITY "), and JOE'S SWEEPING, INC., a
California Corporation ( "CONTRACTOR ") pursuant to Section 19 of Agreement No. 3168
( "Agreement ").
Section 1 of the Agreement is amended to read as follows:
"CONSIDERATION. CONTRACTOR must complete the Scope of Services to
CITY's satisfaction. If CITY is dissatisfied with such Services, CONTRACTOR
must work on the matter until the CITY approves of the service. Further,
CONTRACTOR will complete the Services set forth in Exhibit A strictly according to
the listed schedule. CITY agrees to pay CONTRACTOR according to the following
formula:
A. MONTHLY PAYMENT = Base Monthly Payment + Fuel Pricing Adjustment
i. For the first year of the term: Base Monthly Payment = $10,618.51
(Annual Total of Base Monthly Payments = $127,422.12).
ii. For the second year of the term: Base Monthly Payment =
$10,937.06 (Annual Total of Base Monthly Payments = $131,244.72).
iii. For the third year of the term: Base Monthly Payment = $11,265.18
(Annual Total of Base Monthly Payments = $135,182.16).
iv. For any renewed term: Base Monthly Payment to be negotiated.
B. FUEL PRICING ADJUSTMENT. It is agreed that fuel used by CONTRACTOR
constitutes 17% of its total operating costs. It is agreed that the baseline
monthly fuel cost for CNG fuel is $2.20 per gallon. The Fuel Pricing Adjustment
is calculated according to the following formula:
Fuel Pricing X Base X Average Monthly Fuel Cost _ 1
Adjustment 0.17 Monthly
Payment $2.20
The Average Monthly Fuel Cost is the average price of fuel per gallon of
CNG purchased by CONTRACTOR for performance of this Agreement
(and solely within CITY's jurisdictional boundaries) in the month for which
payment is invoiced. The Fuel Pricing Adjustment cannot exceed 8.5%
of the Base Monthly Payment. The total Fuel Pricing Adjustments in any
year cannot exceed 8.5% of the of the Annual Total of Base Monthly
Payments. Fuel Pricing Adjustment cannot be compounded from month
to month. The Public Works Director may approve, partially approve or
deny the Fuel Pricing Adjustment.
i. Example. In the first month of the first year of the contract term the
average price of fuel is $2.30 per gallon. MONTHLY PAYMENT =
$10,618.51 + 0.17 X $10,618.51 X ( $2.30/$2.20 -1) _ $10,700.56
ii. Example. In the second month of the first year of the contract term the
average price of fuel is $2.10 per gallon. MONTHLY PAYMENT =
$10,618.51 + 0.17 X $10,618.51 X ( $2.10/$2.20 -1) _ $10,536.46
iii. Example. The maximum monthly payment in the first year (as increased
by the maximum fuel pricing adjustment) is $10,618.51 + 8.5% _
$11,521.08. The maximum total of payments in the first year is
$127,422.12 + 8.5% _ $138,253.00
iv. Example. The minimum monthly payment in the first year, as decreased
by the maximum fuel pricing adjustment is $10,618.51 — 8.5 % =
$9,715.94. The minimum total of payments in the first year is
$127,422.12 — 8.5% _ $116,591.24.
C. PAYMENT FOR ADDITIONAL STREET SWEEPING SERVICES. CITY may
request CONTRACTOR to provide additional street sweeping services in
accordance with this Agreement. CITY agrees to pay CONTRACTOR for street
sweeping services exceeding the curb mileage and square footage listed in
Exhibit A at the rate of $100 per hour.
2. Section 2 of the Agreement is amended to read as follows:
"TERM. The term of this Agreement will be from July 1, 2006 to June 30, 2009."
3. Section 4 of the Agreement is amended in its entirety to read as follows:
"PREVAILING WAGES. In accordance with Department of Industrial Relations
( "DIR ") Opinion Letter for Public Works Case No. 2005 -007, dated June 1, 2005,
CONTRACTOR is not required to pay prevailing wages."
4. A new Section 25 is added to the Agreement to read as follows:
"COMPLIANCE WITH LAW. CONTRACTOR must comply, at no additional cost
to CITY, with all applicable federal, state, and local laws. Such laws include,
without limitation, all aspects of CITY's current National Pollutant Discharge
Elimination System ( "NPDES ") permit. In addition, CONTRACTOR agrees to
comply with all rules of the South Coast Air Quality Management District
( "AQMD ") including, without limitation, AQMD Rule 1186.1 requiring the use of
alternative -fuel vehicles for sweeper services (to the extent required by law).
CONTRACTOR understands and agrees that failure to comply with this Section
constitutes a material breach of this Agreement and, in addition, requires
CONTRACTOR to defend, indemnify, and hold CITY harmless from any fines,
penalties, or damages imposed by a governmental agency (whether AQMD, the
Regional Water Quality Control Board, or other agency) for failure to comply with
applicable law."
5. This Amendment may be executed in any number or counterparts, each of which
will be an original, but all of which together constitutes one instrument executed on the
same date.
6. Except as modified by this Amendment, all other terms and conditions of
Agreement No. 3168 remain the same. The operative terms of this Amendment become
effective July 1, 2006.
IN WITNESS WHEREOF the parties hereto have executed this amendment the
day and year first hereinabove written.
CITY OF EL
a general
Jeff
Attorney
JOE'S SWEEPING, INC.
a California Corporation.
Never Samuelian,
Pr ident
eua
SUZAimuelian,
Secretary
Taxpayer ID No. OV5- at 3L