1 THIRD A M E N D M E N T T O A G R E E M E N T
THIS THIRD AMENDMENT TO AGREEMENT, dated for purposes of
identification only this day of , 2022 is made and entered into
by and between the
CITY OF ANAHEIM, a municipal corporation,
hereinafter referred to as "ANAHEIM,"
A
N
D
LYONS SECURITY SERVICE, INC., a California corporation, hereinafter referred to as "CONTRACTOR."
W I T N E S S E T H:
WHEREAS, the parties have previously entered into a written agreement dated December 8, 2020, a First Amendment to Agreement dated May 26, 2021 and a Second Amendment to Agreement dated December 7, 2021, for security patrol services of City of Anaheim Parks and Facilities (hereinafter, the “Agreement”); and WHEREAS, the parties wish to amend the Agreement to extend the Term of the Agreement and increase the compensation thereunder.
NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE
MUTUAL PROMISES, COVENANTS AND CONDITIONS HEREIN CONTAINED, THE PARTIES HERETO AGREE AS FOLLOWS:
1. That the Agreement is hereby amended to include those additional Services as outlined in the proposal attached hereto as Exhibit “A-2.”
2. Section 2 entitled, "Term," of the Agreement is hereby amended in its entirety to read as follows:
“The term of this Agreement shall commence on the date this Third Amendment to Agreement is executed by ANAHEM and shall terminate one (1) year 2 thereafter, unless sooner terminated as provided herein ("In itial Term"). The Director of Community Services is hereby authorized to renew this Agreement upon the same terms and conditions for no more than four (4 ) additional one year terms after the Initial Term ("Renewal Term"), unless CONTRACTOR provides written notice of termination no less than thirty (30) days prior to completion of the term in progress; provided however, that compensation rates may be adjusted during the renewal of each subsequent term (hereinafter the phrases “Initial Term” and “Renewal Term ,” if any, shall be collectively referred to as the “Term").”
3. Section 4.2 of Section 4 entitled, "Compensation," of the Agreement is hereby amended in its entirety to read as follows:
“The total compensation payable by ANAHEIM under t his contract for the Initial Term of one (1) year shall not exceed the sum of One Hundred Eighty-Three Thousand, Twenty-Four Dollars and 00/100 Cents ($183,024.00) (“Contract Amount”).
For any Renewal Term, the Director of Community Services and CONTRACTOR shall negotiate and agree upon any adjustment to the Contract Amount and Fee Schedule set forth in the Schedule of Compensation, prior to any Renewal Term. Any modification to the Contract Amount or the Fee Schedule set forth in the Proposal during any Renewal Term shall not exceed the greater of: (i) 2.5% increase to the Contract Amount; or (ii) the change in the most recent available 12 -month period for the Los Angeles-Riverside- Orange County, CA Consumer Price Index (CPI) for All Urban Consumers for non -labor, and Urban Wage Earners and Clerical Workers for labor.”
4. Section 4 entitled, “Compensation,” of the Agreement is hereby amended to add a new Section 4.6 to read as follows:
“4.6 The Director of Community Services or designee is authorized to approve additional expenditures not to exceed ten percent (10%) of the Contract Amount for Extra Work not included in the Scope of Work, if the Director of Community Services or designee determines, in his/her sole discretion, (i) additional product or services of a like nature that were not foreseen by the using d epartment at the time of bid as required by the 3 CITY; (ii) budget appropriations are available; and (iii) in the professional opinion of the Director of Community Services or designee, it is in the City's best interest to do so. .01 In no event shall CONTRACTOR render Extra Work beyond the scope of this Agreement without the authorization of the Director of Community Services or designee.
.02 All Extra Work approved in writing by the Director of Community Services or designee shall be billed at the rates set forth in Exhibit A-2. .03 Except for the authority granted the Director of Community Services or designee, as specifically provided in Section 4.3 hereof, no additional Services or Extra Work beyond the scope of this Agreement shall be rendered by CONTRACTOR unless the Extra Work is first approved by written amendment of this Agreement. .04 As used herein, "Extra Work" means any work that is determined by ANAHEIM to be necessary for the proper completion of the Services, but which is not included within the Scope of Work and which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement.”
5. Except as expressly amended hereby, all the remaining provisions of the Agreement, as amended, shall remain in full force and effect.
6. CONTRACTOR and CONTRACTOR's signators represent that the signators hold the positions set forth below their signatures and that the signators are authorized to execute this Third Amendment to Agreement on behalf of CONTRACTOR and to bind CONTRACTOR hereto.
7. This Third Amendment to the Agreement shall be effective on the date on which this Agreement is executed by ANAHEIM.
4 IN WITNESS WHEREOF, the parties hereto have caused this Third Amendment to Agreement to be executed on the dates hereinafter respectively set forth.
CITY OF ANAHEIM,
a municipal corporation
DATE OF EXECUTION:
By_________________________________________
Sjany Larson-Cash, Director of
Community Services
ATTEST:
By _________________________________
City Clerk of the City of Anaheim
"ANAHEIM"
LYONS SECURITY SERVICE, INC., a California
corporation
DATE OF EXECUTION: By___________________________________
____________________ Printed Name__________________________
Title_________________________________
"CONTRACTOR"
APPROVED AS TO FORM:
ROBERT FABELA, CITY ATTORNEY
By___________________________________
Bryn M. Morley
Deputy City Attorney
Date_________________________________
145776
505 S. Villa Real Dr. Suite 203A, Anaheim – www.LyonsSecurityInc.com – Telephone: (949) 298-6859 – Email: [email protected] Pricing: Current Rate: $27.28 June 7 2022 – June 7 2023 Rates: Regular Hourly Time: $31.00 Overtime Rate*: $46.50 Holiday Rate**: $46.50 *: Overtime: is considered when the city requests a specific individual to work more than the CA labor laws defined regular work week. Overtime is also considered if a request for an officer to extend his/her shift while on duty. ** Holidays: Holiday pay will be given to the employees on the following 8 days, thus requiring the use of Holiday Rate: New Year’s Day, Martin Luther King Jr. Day, Memorial Day, Fourth of July, Labor Day, Veteran’s Day, Thanksgiving Day, Christmas Day. June 7, 2022 – June 7 2023 1. 365 days will require our coverage: 357 Regular Rate Days, 8 Holiday Rate Days 2. Regular Hours & Cost: 5,712 hours x $31.00 = $177,072.00 3. Holiday Hours & Cost: 128 hours x $46.50 = $5,952.00 4. Total Cost for Period: $182,972.00 Total Costs for Year 1 (June 7, 2022 – June 7 2023): $183,024.00 Case for Increase: As we continue to recover from the 2019 Pandemic, we have seen unprecedented increases in the cost of living as prices have skyrocketed. The current Inflation rate, per BLS.gov, year over year is at 8.5% for the month of April. This number is modest as food increases are at 8.8% overall, Gas is at 48%, Electricity 13.5%, Utilities 11.1%, used vehicles 35.3%, Shelter 5.0% (which could be 100’s of dollars, creating a hardship to the employees in the field at this salary rate). In most cases the inflation was higher than 8.5% but was grounded by medical, shelter (still at a high), services, and apparel. To coincide with the record inflation increases, the job market is seeing unprecedented unemployment rates as the workforce has not returned to full employment prior to the pandemic. This job market has required companies to drive up wages at an exponential rate to meet the limit supply available to meet the market demand. Option Year 1: June 8, 2023 – June 7 2024: Increase based off of 2.5% increase or CPI, whichever is greater. Quote below based off of 2.5% Increase. 1. 366 days will require coverage (leap year): 358 Regular Rate Days, 8 Holiday Rate Days 2. Regular Hours & Cost: 5,728 hours x $31.77 = $181,978.56 3. Holiday Hours & Cost: 128 hours x $47.65 = $6,099.20 4. Total Cost for Period: $188,077.76 Option Year 2: June 8 2024 – June 7 2025: Increase based off of 2.5% increase or CPI, whichever is greater. Quote below based off of 2.5% Increase. 1. 365 days will require coverage: 357 Regular Rate Days, 8 Holiday Rate Days 2. Regular Hours & Cost: 5,712 hours x $32.56 = $185,982.72 3. Holiday Hours & Cost: 128 hours x $48.84 = $6,251.52 4. Total Cost for Period: $192,234.24 183,024.00
EXHIBIT A-2
505 S. Villa Real Dr. Suite 203A, Anaheim – www.LyonsSecurityInc.com – Telephone: (949) 298-6859 – Email: [email protected] Option Year 3: June 8 2025 – June 7 2026: Increase based off of 2.5% increase or CPI, whichever is greater. Quote below based off of 2.5% Increase. 1. 365 days will require coverage: 357 Regular Rate Days, 8 Holiday Rate Days 2. Regular Hours & Cost: 5,712 hours x $33.37 = $190,609.44 1. Holiday Hours & Cost: 128 hours x $50.05 = $6,406.40 2. Total Cost for Period: $197,015.84 Option Year 4: June 8 2026 – June 7 2027: Increase based off of 2.5% increase or CPI, whichever is greater. Quote below based off of 2.5% Increase. 1. 365 days will require coverage: 357 Regular Rate Days, 8 Holiday Rate Days 2. Regular Hours & Cost: 5,712 hours x $34.20 = $195,350.40 3. Holiday Hours & Cost: 128 hours x $51.30 = $6,566.40 4. Total Cost for Period: $201,916.80 Total 5 Years: $962,268.64