Item E-10 Agenda Report — Beverly Hills City Council, May 24, 2022

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AGENDA REPORT
Meeting Date: May 24, 2022
Item Number:

To: Honorable Mayor & City Council
From: Michael Hensley, Deputy Director of Public Works, Operations Craig Crowder, Fleet & Facilities Manager
Judi Tamasi, Senior Management Analyst
Subject: AMENDMENT NO. 3 TO AN AGREEMENT BETWEEN THE CITY

OF BEVERLY HILLS AND LIFTECH ELEVATOR SERVICES,
INC. FOR ELEVATOR MAINTENANCE SERVICE FOR ALL CITY
ELEVATORS AND LIFTS; AND

APPROVAL OF A PURCHASE ORDER FOR FISCAL YEAR
2022/23 IN THE NOT-TO-EXCEED AMOUNT OF $177,576; AND

AUTHORIZE THE CITY MANAGER TO APPROVE ADDITIONAL
AMENDMENTS TO THE AGREEMENT IN AN AMOUNT NOT- TO-EXCEED $355,152; AND

AUTHORIZE THE CITY MANAGER TO APPROVE CHANGE

PURCHASE ORDERS IN AN AMOUNT NOT-TO-EXCEED THE

TOTAL VALUE OF THE AGREEMENT
Attachments: 1. Amendment No. 3

RECOMMENDATION
With the competitive bidding process already underway, staff recommends City Council move to waive the formal bidding process for this amendment; approve Amendment No. 3 to Agreement #294-16 between the City of Beverly Hills and Liftech Elevator Services, Inc. for all City Elevators and Lifts; approve a purchase order for Fiscal Year 2022/23 in the not-to-exceed amount of $177,576; authorize the City Manager to approve additional amendments to the agreement in an amount not to exceed $355,152; and authorize the City Manager to approve change purchase orders in an amount not to exceed the total value of the agreement.
•

BEVERLY
HILLS
-�
E-10
Meeting Date: May 24, 2022

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INTRODUCTION
The City provides building maintenance services to approximately 65 buildings and facilities with a total area of approximately 3,200,000 square feet. The Public Works Department maintains these buildings using a combination of City staff and service providers through ongoing maintenance agreements and capital projects. Since 2016, Liftech Elevator Services, Inc. (“Liftech”) has been providing elevator maintenance services to the City’s elevators and lifts. The proposed amendment and purchase order for Fiscal Year 2022/23 is to provide coverage for this critical facilities maintenance service during the current competitive bidding process.

DISCUSSION
In 2016, City Council approved entering into an agreement with Liftech Elevator Services, Inc. for maintenance services on all City elevators and Lifts. City Council approved Amendments #337-18 and #308-20 to that Agreement #294-16. The agreement provides for ongoing maintenance and as-needed service for vertical transportation equipment at City–owned facilities. Such vertical transportation equipment includes 56 elevators, three escalators, six wheelchair lifts and one dumbwaiter located at Greystone Mansion. Liftech works throughout the City, including at City-owned and City-occupied buildings (e.g., City Hall, Library, Police Department, etc.), parking structures and tenant facilities. The contractor provides a full-time dedicated Liftech employee who conducts ongoing maintenance service, such as scheduled preventative maintenance and implements other unplanned work on an as-needed basis. Liftech was also selected through multiple competitive processes for several phases of elevator modernizations.

The City published Request for Proposal 22-350-29 for Maintenance Service for City Elevators and Lifts. City staff is evaluating the proposals and wants to ensure that elevators and lifts continue to be serviced during the evaluation process.

Pursuant to the need for uninterrupted services, staff recommends City Council waive the bidding requirements for the amendment pursuant to Beverly Hills Municipal Code section 3-3-204. It is in the best interest of the City to execute this amendment in order to continue ongoing and responsive elevator maintenance while the competitive bidding process is completed.

If approved, this amendment would increase the consideration by $177,576 and extend the termination date through September 30, 2022. This is a three-month pro-rated estimate, based on the Fiscal Year 2021/22 blanket purchase order. If approved, the amendment, purchase order and the request to authorize the City Manager to approve additional amendments to the Agreement in a not-to-exceed amount of $355,152 would provide coverage for this critical facilities maintenance service during the competitive bidding process.

FISCAL IMPACT
Funding for the Fiscal Year 2022/23 purchase order comes from the Facilities Maintenance and Parking Services operating budgets and does not require additional Meeting Date: May 24, 2022

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appropriations. These consist of the Capital Assets Fund (405 Facilities Maintenance) and Parking Enterprise Fund (810 Parking Operations).

Shana Epstein,
Director of Public Works
Approved By
Attachment 1
1 B0785-0001\2656316v2.doc
AMENDMENT NO. 3 TO AN AGREEMENT BETWEEN THE CITY
OF BEVERLY HILLS AND LIFTECH ELEVATOR SERVICES, INC.

FOR ELEVATOR MAINTENANCE SERVICE FOR ALL CITY

ELEVATORS AND LIFTS
NAME OF CONTRACTOR: Liftech Elevator Services, Inc.

RESPONSIBLE PRINCIPAL OF CONTRACTOR: Daniel M. Simon, President CONTRACTOR’S ADDRESS: 2897 Gardena Avenue
Signal Hill, CA 90755
Attention: Daniel M. Simon, President
CONTRACTOR’S E.I.N/TAX I.D. NO.: 55-0846252
CITY’S ADDRESS: City of Beverly Hills
345 N. Foothill Road
Beverly Hills, CA 90210
Attention: Director of Public Works
COMMENCEMENT DATE: September 30, 2016
TERMINATION DATE: June 30, 2017 (original termination date) June 30, 2018 (as extended pursuant to
Section 2 by letter dated April 5, 2017)
June 30, 2019 (as extended pursuant to
Section 2 by letter dated May 8, 2018)
June 30, 2020 (as extended pursuant to
Section 2 by letter dated February 8, 2019)
June 30, 2022 (amended pursuant to
Amendment No. 2)
September 30, 2022 (amended pursuant to
Amendment No. 3), unless extended
pursuant to Section 2 of this Agreement
CONSIDERATION: Original Agreement: Not to exceed
$1,322,000.00 (includes a contingency of
not to exceed $99,000), and more
particularly described in Exhibit B
Amendment No. 1: Not to exceed an
additional $636,573 (includes a contingency
of not to exceed $89,429), and more
particularly described in Exhibit B
DocuSign Envelope ID: AAC8F959-4840-43F3-8E1C-EB723563951F 2 B0785-0001\2656316v2.doc
Amendment No. 2: Not to exceed an
additional $1,416,517 (includes a Citycontrolled contingency of not to exceed $174,229), and more particularly described
in Exhibit B
Amendment No. 3: Not to exceed an
additional $177,576, and more particularly
described in Exhibit B; In addition, the City
Manager may approve by purchase order
an additional not to exceed amount of
$177,576 for the remainder of the term of
the Agreement
Total Not to Exceed:$3,730,242
DocuSign Envelope ID: AAC8F959-4840-43F3-8E1C-EB723563951F 3 B0785-0001\2656316v2.doc
AMENDMENT NO. 3 TO AN AGREEMENT BETWEEN THE CITY
OF BEVERLY HILLS AND LIFTECH ELEVATOR SERVICES, INC.

FOR ELEVATOR MAINTENANCE SERVICE FOR ALL CITY

ELEVATORS AND LIFTS
This Amendment No. 3 is to that certain Agreement between the City of Beverly Hills (hereinafter called "CITY"), and Liftech Elevator Servcies, Inc. (hereinafter called "CONTRACTOR") dated July 19, 2016, and identified as Contract No. 294-16, as amended by Amendment No. 1 dated June 19, 2018, and identified as Contract No. 337-18, as amended by Amendment No. 2 dated June 16, 2020, and identified as Contract No. 308-20 (collectively, the “Agreement”).

RECITALS
A. CITY entered into a written agreement with CONTRACTOR for elevator maintenance services, which was previously amended.

B. CITY and CONTRACTOR desire to further amend the Agreement to extend the Termination date, and increase the Consideration.

NOW, THEREFORE, the parties agree as follows:

Section 1. The Termination date shall be amended as stated on the cover page.

Section 2. The Consideration shall be amended as stated on the cover page.

Section 3. Section 2. “Time of Performance” shall be amended as follows:
“Section 2. Time of Performance. CONTRACTOR shall commence its services under this Agreement upon the Commencement Date. CONTRACTOR shall complete the performance of services by the Termination Date set forth above.

The City Manager or his designee may extend the time of performance in writing for two additional 90-day terms or such other term not to exceed 180 days from the Termination Date pursuant to the same terms and conditions of this Agreement.” Section 4. Exhibit B, “SCHEDULE OF PAYMENTS AND RATES”, shall be amended as attached hereto.

Section 5. Except as specifically amended by this Amendment No. 3, and previous amendments, the remaining provisions of the Agreement shall remain in full force and effect.

DocuSign Envelope ID: AAC8F959-4840-43F3-8E1C-EB723563951F 4 B0785-0001\2656316v2.doc
EXECUTED the _____ day of __________________, 2022, at Beverly Hills, California.

CITY OF BEVERLY HILLS
A Municipal Corporation
____________________________

LILI BOSSE
Mayor
(SEAL)

HUMA AHMED
City Clerk
LIFTECH ELEVATOR SERVICES, INC.

DANIEL M. SIMON
President

MICHAEL PERKINS
Secretary
APPROVED AS TO FORM: APPROVED AS TO CONTENT:

LAURENCE S. WIENER GEORGE CHAVEZ
City Attorney City Manager
SHANA E. EPSTEIN
Director of Public Works
MICHAEL V. HENSLEY
Deputy Director of Public Works
SHARON L’HEUREUX DRESSEL
Risk Manager
DocuSign Envelope ID: AAC8F959-4840-43F3-8E1C-EB723563951F 5 B0785-0001\2656316v2.doc

EXHIBIT B

SCHEDULE OF PAYMENTS AND RATES

RATE SCHEDULE
I. Original Agreement:

BASIC FEE
$34,800.00 per month, unless adjusted per Section 3 of this Exhibit B.

REGULAR BILLING RATES:

Regular Working Hour: $305.00 Per Hour. (One Mechanic)
Regular Working Hour: $548.00 Per Hour. (Mechanic & Helper) Overtime 1.7 rate Working Hour: $515.00 Per Hour. (One Mechanic) Overtime Working Hour: $905.00 Per Hour. (Mechanic & Helper) Sundays and Holidays: $597.00 Per Hour. (One Mechanic)
Sundays and Holidays: $995.00 Per Hour. (Mechanic & Helper) DIFFERENTIAL BILLING RATES:

Overtime 1.7 rate Working Hour: $214.00 Per Hour. (One Mechanic) Overtime Working Hour: $358.00 Per Hour. (Mechanic & Helper) Sundays and Holidays: $305.00 Per Hour. (One Mechanic)
Sundays and Holidays: $360.00 Per Hour. (Mechanic & Helper)

DocuSign Envelope ID: AAC8F959-4840-43F3-8E1C-EB723563951F 6 B0785-0001\2656316v2.doc
b. Cost of Extra Services. In addition to the Basic Fee, CITY may order the performance of Extra Services by CONTRACTOR, in which case CONTRACTOR shall prepare an “Extra Services Schedule” in the form of a change order to the Agreement Addendum and submit same to CITY within five (5) business days of CONTRACTOR’s receipt of City’s Extra Services request. If said schedule is approved by CITY, the parties shall execute an Agreement Addendum and attach the approved Extra Services Schedule to said Addendum to reflect the cost of the Extra Services to be paid by CITY.

CONTRACTOR shall bill CITY on a monthly basis for the Extra Services. City shall pay CONTRACTOR for the Extra Services within forty-five (45) days of CITY’s receipt of CONTRACTOR’s approved invoice and backup provided by CONTRACTOR in accordance with Section 5 below. All prices shown on the Extra Services Schedule shall include all applicable taxes.
c. Withholding of Payments. Failure by CONTRACTOR to provide Basic Services or Extra Services in accordance with this Agreement, Agreement or Agreement Addendum, or failure by CONTRACTOR to comply with any provision of said documents in its performance of the Basic Services or Extra Services, shall entitle CITY (in addition to any other remedies CITY may have) to withhold payments due to CONTRACTOR as CITY deems necessary in CITY’s reasonable discretion.

2. Addition or Deletion of Properties or Vertical Transportation Equipment. Either or both Properties and Units of Vertical Transportation Equipment may be added at any time during this Agreement Term pursuant to an Agreement Addendum executed by CITY and CONTRACTOR. The Agreement Addendum shall address the price adjustment and changes to the Rate Schedule attached to the affected Units. The deletion of Properties or Units shall proportionally reduce the Basic Fee for the applicable Property, and the addition of Properties or Units shall proportionally increase the Basic Fee for the applicable Property.

3. Adjustments to the Rate Schedule. The Rate Schedule set forth above in this Exhibit B (the “Original Rate Schedule”) contains the “Regular Billing Rates” for all Services under this Agreement until the Rate Schedule is adjusted in accordance with this Section 3. The Rate Schedule is subject to annual adjustments upon the request of either CONTRACTOR or CITY in accordance with the following procedure.
a. Adjustment Procedure. At least 90 days prior to the upcoming Anniversary Adjustment Date of this Agreement, the party who desires to implement an adjustment (the “Requesting Party”) to the Rate Schedule contained in this Exhibit B shall provide to the other party (the “Receiving Party”), an “Annual Price Adjustment Request” in the form of a change order to the Agreement with form attached as Exhibit B-1. Each Annual Price Adjustment Request shall have two exhibits attached to it: (i) an Adjusted Rate Schedule Calculation, and (ii) a Revised Rate Schedule. The Adjusted Rate Schedule Calculation will allow for adjustments in the cost of materials and labor as follows:
i. Twenty percent (20%) of the material prices used in computing (A) the Basic Fee in the Rate Schedule and (B) the cost of any Extra Services requested by CITY, will be increased or decreased based on the “Producer price index - Commodity code 10 - Metals and metal products” published by the U.S. Department of Labor, Bureau of DocuSign Envelope ID: AAC8F959-4840-43F3-8E1C-EB723563951F 7 B0785-0001\2656316v2.doc
Labor Statistics, for the month of August for the year in which the Anniversary Adjustment Date occurs as compared with such index for the month of August of the previous year.
ii. Eighty percent (80%) of the cost of labor used in providing Services or Extra Services will be increased or decreased based on the “regular hourly billing rate for labor” for the month within which the Anniversary Adjustment Date occurs as compared with such regular hourly billing rate for labor for the same month of the previous year.

As used herein, the phrase “regular hourly billing rate for labor” means the sum of the standard hourly billing rate for labor plus the average hourly cost of fringe benefits paid to elevator examiners in the County in which the Property is located. The words “fringe benefits” mean employee benefits granted in lieu of or in addition to hourly rate increases and include, but are not limited to, pensions, vacations, paid holidays, group life, sickness, accident and hospitalization insurance. The regular hourly billing rate for labor for each Property is the “Regular Billing Rate” amount shown on the Rate Schedule.

Within ten (10) business days of receipt of an Annual Price Adjustment Request, the Receiving Party shall review and approve or disapprove of such request. When approved by the Receiving Party, CITY and CONTRACTOR shall execute an Agreement Addendum to the Annual Price Adjustment Request to reflect the changes in the Rate Schedule. (The first annual adjustment shall adjust the Original Rate Schedule based on the above materials and labor formulas to produce the revised Rate Schedule for this Agreement, and each adjustment thereafter shall update the previously revised Rate Schedule for such Agreement.) The Receiving Party shall not withhold its approval of the Annual Price Adjustment Request so long as the Requesting Party is able to verify that the numbers contained in the “Adjusted Rate Schedule Calculation” attached to the Annual Price Adjustment Request are accurate.
b. Maximum Allowable Annual Increase. Notwithstanding any other provision of this Agreement, the maximum allowable increase or decrease for any one year period during the term of this Agreement (and any extension of the term), shall be three percent (3%).

This maximum increase/decrease limitation shall apply to adjustments to both (1) the Basic Fee for each Property reflected in the Equipment Listing Table shown in Exhibit A of this Agreement, and (2) the Rate Schedule.

4. Modernization Discounts:
a. Modernization Discount. In the event any Property serviced by CONTRACTOR undergoes a modernization, the Basic Fee payable for that Property shall be reduced from the total maintenance Agreement amount until the modernization is complete and the warranty period has expired.

CITY shall, promptly after execution of the Modernization Agreement, inform CONTRACTOR of the building elevator modernization for each Property covered by this Agreement. CITY shall then deduct the specified reduction from the monthly invoices submitted by CONTRACTOR for so long as the modernization and its warranty period is in effect.

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5. Extra Services Billing Procedure: Within 15 business days of the end of each month during this Agreement Term, CONTRACTOR shall provide CITY with an invoice for the amount of Extra Services, if any, performed during the month. The Extra Services charges shall be broken down for Elevator number and purchase order number, where applicable. If travel time is included, CONTRACTOR shall provide back-up documentation for such travel time if requested by CITY. CITY will not accept lump sum invoices without such breakdown. If CONTRACTOR fails to provide the invoice for Extra Services to CITY within 15 days of the end of each month during this Agreement Term, CITY shall receive a discount for each day thereafter that CONTRACTOR fails to provide the invoice, equal to five percent (5%) of the amount payable for Extra Services included in the invoice. All Extra Services invoices must have a business card and signature of the approved account representative for the applicable units under Agreement (from the applicable CONTRACTOR Account Manager listed on the list of CONTRACTOR’s Approved Personnel attached hereto as Exhibit A-3 to such Agreement), indicating that the invoice has been reviewed prior to being sent to the CITY.

6. Billing Errors: CONTRACTOR agrees to give notice to CITY within five (5) business days of CONTRACTOR’s discovery of any instance where the amount invoiced to CITY by CONTRACTOR was incorrect or inaccurate. CONTRACTOR’s failure to notify CITY in accordance with this Section shall entitle CITY to terminate this Agreement as provided in Section 13 of this Agreement.

7. Dates for Billing Purposes. For purposes of billing for Services performed under Agreements or adjustments to the Basic Fee or Rate Schedule set forth herein, the following terms shall have the following meanings:
a. Commencement Date: The Commencement Date of Services under this Agreement shall be the “Commencement Date” set forth in a CITY Written Notice to Proceed to CONTRACTOR.
b. Anniversary Adjustment Date: The “Anniversary Adjustment Date” shall be July 1. Only adjustments occurring on or after July 1, 2017 shall be applicable.

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II. Amendment No. 1:

BASIC FEE
$37,262.00 per month, unless adjusted per Section 3 of this Exhibit B.

REGULAR BILLING RATES:

1. Agreement Price.
a. Basic Fee for Basic Services. CITY shall pay CONTRACTOR the amount shown above on the Rate Schedule for the Basic Services performed on the Vertical Transportation Equipment described on the Equipment Listing Table shown in Exhibit A-2 (the “Basic Fee”). CONTRACTOR’s Basic Fee shall include all requirements listed throughout this Agreement, including the cost of one full time elevator mechanic described in Exhibit A Section 2.2(a) as well as up to eight (8) additional hours of a helper. The Basic Fee shall be payable in arrears. CONTRACTOR shall bill CITY on a monthly basis for the Basic Fee for the prior month’s Services under this Agreement. CITY shall pay the Basic Fee to CONTRACTOR within forty-five (45) days of CITY’s receipt of each invoice from CONTRACTOR. The Basic Fee may be increased or decreased as the result of (i) a change to the Scope of Services that must be approved by the City Manager or his designee in writing (ii) the addition or deletion of any Properties or Units pursuant to Section 2 below, (iii) an annual adjustment pursuant to Section 3 below, or (iv) an “occupancy” or “quantity” discount pursuant to Section 4 below. Any change in the Scope of Services shall be outlined by CONTRACTOR in an amendment to the Agreement and must be first approved in writing by CITY. The City Manager may enter into such written amendments if the additional amount does not exceed $100,000.00. b. Cost of Extra Services. In addition to the Basic Fee, CITY may order the performance of Extra Services by CONTRACTOR, in which case CONTRACTOR shall prepare an “Extra Services Schedule” in the form of a change order to the Agreement and submit same to CITY within five (5) business days of CONTRACTOR’s receipt of CITY’s Extra Services request. If said schedule is approved by CITY, the parties shall execute an amendment to the Agreement and attach the approved Extra Services Schedule to said DocuSign Envelope ID: AAC8F959-4840-43F3-8E1C-EB723563951F 10 B0785-0001\2656316v2.doc
amendment to reflect the cost of the Extra Services to be paid by CITY. CONTRACTOR shall bill CITY on a monthly basis for the Extra Services. CITY shall pay CONTRACTOR for the Extra Services within forty-five (45) days of CITY’s receipt of CONTRACTOR’s CITY approved invoice and backup provided by CONTRACTOR in accordance with Section 5 below. All prices shown on the Extra Services Schedule shall include all applicable taxes.
c. Withholding of Payments. Failure by CONTRACTOR to provide Basic Services or Extra Services in accordance with this Agreement, amendment, or failure by CONTRACTOR to comply with any provision of said documents in its performance of the Basic Services or Extra Services, shall entitle CITY (in addition to any other remedies CITY may have) to withhold payments due to CONTRACTOR as CITY deems necessary in CITY’s reasonable discretion.

2. Addition or Deletion of Properties or Vertical Transportation Equipment. Either or both Properties and Units of Vertical Transportation Equipment may be added at any time during this Agreement term pursuant to a written amendment executed by the City Manager or his designee and CONTRACTOR. The amendment shall address the price adjustment and changes to the Rate Schedule attached to the subject Units. The deletion of Properties or Units shall proportionally reduce the Basic Fee for the applicable Property, and the addition of Properties or Units shall proportionally increase the Basic Fee for the applicable Property.

3. Adjustments to the Rate Schedule. The Rate Schedule set forth above in this Exhibit B (the “Original Rate Schedule”) contains the “Regular Billing Rates” for all Services under this Agreement until the Rate Schedule is adjusted in accordance with this Section 3. The Rate Schedule is subject to annual adjustments upon the request of either CONTRACTOR or the City Manager or his designee in accordance with the following procedure. a. Adjustment Procedure. At least 90 days prior to the upcoming annual adjustment date (“Anniversary Adjustment Date”) of this Agreement, the party who desires to implement an adjustment (the “Requesting Party”) to the Rate Schedule contained in this Exhibit B shall provide to the other party (the “Receiving Party”), an “Annual Price Adjustment Request” in the form of a change order to the Agreement in a form attached as Attachment 1 to Exhibit B. Each Annual Price Adjustment Request shall have two exhibits attached to it: (i) an Adjusted Rate Schedule Calculation, and (ii) a Revised Rate Schedule. The Adjusted Rate Schedule Calculation will allow for adjustments in the cost of materials and labor as follows:
i. Twenty percent (20%) of the material prices used in computing (A) the Basic Fee in the Rate Schedule and (B) the cost of any Extra Services requested by the City Manager or his designee, will be increased or decreased based on the “Producer price index - Commodity code 10 - Metals and metal products” published by the U.S.

Department of Labor, Bureau of Labor Statistics, for the month of August for the year in which the Anniversary Adjustment Date occurs as compared with such index for the month of August of the previous year.
ii. Eighty percent (80%) of the cost of labor used in providing Services or Extra Services will be increased or decreased based on the “regular hourly billing rate for labor” for the month within which the Anniversary Adjustment Date occurs as compared with such regular hourly billing rate for labor for the same month of the previous year.

DocuSign Envelope ID: AAC8F959-4840-43F3-8E1C-EB723563951F 11 B0785-0001\2656316v2.doc
As used herein, the phrase “regular hourly billing rate for labor” means the sum of the standard hourly billing rate for labor plus the average hourly cost of fringe benefits paid to elevator examiners in the Los Angeles County . The words “fringe benefits” mean employee benefits granted in lieu of or in addition to hourly rate increases and include, but are not limited to, pensions, vacations, paid holidays, group life, sickness, accident and hospitalization insurance. The regular hourly billing rate for labor for each Property is the “Regular Billing Rate” amount shown on the Rate Schedule.

Within ten (10) business days of receipt of an Annual Price Adjustment Request, the Receiving Party shall review and approve or disapprove of such request in writing. When approved by the Receiving Party in writing, the City Manager and his designee and CONTRACTOR shall execute an amendment to the Annual Price Adjustment Request to reflect the changes in the Rate Schedule. (The first annual adjustment shall adjust the Original Rate Schedule based on the above materials and labor formulas to produce the revised Rate Schedule for this Agreement, and each adjustment thereafter shall update the previously revised Rate Schedule for such Agreement.) The Receiving Party shall not unreasonably withhold its approval of the Annual Price Adjustment Request so long as the Requesting Party is able to verify that the numbers contained in the “Adjusted Rate Schedule Calculation” attached to the Annual Price Adjustment Request are accurate. b. Maximum Allowable Annual Increase. Notwithstanding any other provision of this Agreement, the maximum allowable increase or decrease for any one year period during the term of this Agreement (and any extension of the term), shall be three percent (3%).

CITY shall, promptly after executing the agreement to the Basic Fee reduction, inform CONTRACTOR of the building elevator modernization for each Property covered by this Agreement. CITY shall then deduct the specified reduction from the monthly invoices submitted by CONTRACTOR for so long as the modernization and its warranty period is in effect.

5. Extra Services Billing Procedure: Within 15 business days of the end of each month during this Agreement term, CONTRACTOR shall provide CITY with an invoice for the amount of Extra Services, if any, performed during the month. The Extra Services charges shall be broken down for Elevator number and purchase order number, where applicable. If travel time is included, CONTRACTOR shall provide back-up documentation for such travel time if requested by CITY. CITY will not accept lump sum invoices without such breakdown. If CONTRACTOR fails to provide the invoice for Extra Services to CITY within 15 days of the end of each month during this Agreement term, CITY shall receive a discount for each day thereafter that CONTRACTOR fails to provide the invoice, equal to five percent (5%) of the DocuSign Envelope ID: AAC8F959-4840-43F3-8E1C-EB723563951F 12 B0785-0001\2656316v2.doc
amount payable for Extra Services included in the invoice. All Extra Services invoices must have a business card and signature of the approved account representative for the applicable Units under Agreement (from the applicable CONTRACTOR Account Manager listed on the list of CONTRACTOR’s Approved Personnel attached hereto as Exhibit A-3 to such Agreement), indicating that the invoice has been reviewed prior to being sent to the CITY.

6. Billing Errors: CONTRACTOR agrees to give written notice to CITY within five (5) business days of CONTRACTOR’s discovery of any instance where the amount invoiced to CITY by CONTRACTOR was incorrect or inaccurate. CONTRACTOR’s failure to notify CITY in accordance with this Section shall entitle CITY to terminate this Agreement as provided in Section 13 of this Agreement.

III. Amendment No. 2:

BASIC FEE
CITY shall compensate CONTRACTOR for the performance of services under the Agreement in the amount of $46,162.00 per month, unless adjusted per Section 3 of this Exhibit B.

REGULAR BILLING RATES:

Regular Working Hour: $343.00 Per Hour. (One Mechanic)
Regular Working Hour: $617.00 Per Hour. (Mechanic & Helper) Overtime 1.7 rate Working Hour: $530.00 Per Hour. (One Mechanic) Overtime Working Hour: $1,120.00 Per Hour. (Mechanic & Helper) Sundays and Holidays: $672.00 Per Hour. (One Mechanic)
Sundays and Holidays: $1,120.00 Per Hour. (Mechanic & Helper) DIFFERENTIAL BILLING RATES:

Overtime 1.7 rate Working Hour: $240.00 Per Hour. (One Mechanic) Overtime Working Hour: $617.00 Per Hour. (Mechanic & Helper) Sundays and Holidays: $343.00 Per Hour. (One Mechanic)
Sundays and Holidays: $617.00 Per Hour. (Mechanic & Helper) DocuSign Envelope ID: AAC8F959-4840-43F3-8E1C-EB723563951F 13 B0785-0001\2656316v2.doc

CONTRACTOR shall bill CITY on a monthly basis for the Extra Services. CITY shall pay CONTRACTOR for the Extra Services within forty-five (45) days of CITY’s receipt of CONTRACTOR’s CITY approved invoice and backup provided by CONTRACTOR in accordance with Section 5 below. All prices shown on the Extra Services Schedule shall include all applicable taxes.
c. Withholding of Payments. Failure by CONTRACTOR to provide Basic Services or Extra Services in accordance with this Agreement, amendment, or failure by CONTRACTOR to comply with any provision of said documents in its performance of the Basic Services or Extra Services, shall entitle CITY (in addition to any other remedies CITY may have) to withhold payments due to CONTRACTOR as CITY deems necessary in CITY’s reasonable discretion.

2. Addition or Deletion of Properties or Vertical Transportation Equipment. Either or both Properties and Units of Vertical Transportation Equipment may be added at any time during this Agreement term pursuant to a written amendment executed by the City Manager or his designee and CONTRACTOR. The amendment shall address the price adjustment and changes to the Rate Schedule attached to the subject Units. The deletion of Properties or Units shall proportionally reduce the Basic Fee for the applicable Property, and the addition of Properties or Units shall proportionally increase the Basic Fee for the applicable Property.

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3. Adjustments to the Rate Schedule. The Rate Schedule set forth above in this Exhibit B (the “Original Rate Schedule”) contains the “Regular Billing Rates” for all Services under this Agreement until the Rate Schedule is adjusted in accordance with this Section 3. The Rate Schedule is subject to annual adjustments upon the request of either CONTRACTOR or the City Manager or his designee in accordance with the following procedure. a. Adjustment Procedure. At least 90 days prior to the upcoming annual adjustment date (“Anniversary Adjustment Date”) of this Agreement, the party who desires to implement an adjustment (the “Requesting Party”) to the Rate Schedule contained in this Exhibit B shall provide to the other party (the “Receiving Party”), an “Annual Price Adjustment Request” in the form of a change order to the Agreement in a form attached as Attachment 1 to Exhibit B. Each Annual Price Adjustment Request shall have two exhibits attached to it: (i) an Adjusted Rate Schedule Calculation, and (ii) a Revised Rate Schedule. The Adjusted Rate Schedule Calculation will allow for adjustments in the cost of materials and labor as follows:
i. Twenty percent (20%) of the material prices used in computing (A) the Basic Fee in the Rate Schedule and (B) the cost of any Extra Services requested by the City Manager or his designee, will be increased or decreased based on the “Producer price index - Commodity code 10 - Metals and metal products” published by the U.S. Department of Labor, Bureau of Labor Statistics, for the month of August for the year in which the Anniversary Adjustment Date occurs as compared with such index for the month of August of the previous year.
ii. Eighty percent (80%) of the cost of labor used in providing Services or Extra Services will be increased or decreased based on the “regular hourly billing rate for labor” for the month within which the Anniversary Adjustment Date occurs as compared with such regular hourly billing rate for labor for the same month of the previous year.

As used herein, the phrase “regular hourly billing rate for labor” means the sum of the standard hourly billing rate for labor plus the average hourly cost of fringe benefits paid to elevator examiners in the Los Angeles County. The words “fringe benefits” mean employee benefits granted in lieu of or in addition to hourly rate increases and include, but are not limited to, pensions, vacations, paid holidays, group life, sickness, accident and hospitalization insurance. The regular hourly billing rate for labor for each Property is the “Regular Billing Rate” amount shown on the Rate Schedule.

DocuSign Envelope ID: AAC8F959-4840-43F3-8E1C-EB723563951F 15 B0785-0001\2656316v2.doc
b. Maximum Allowable Annual Increase. Notwithstanding any other provision of this Agreement, the maximum allowable increase or decrease for any one year period during the term of this Agreement (and any extension of the term), shall be three percent (3%) upon giving CITY thirty days prior written notice. This maximum increase/decrease limitation shall apply to adjustments to both (1) the Basic Fee for each Property reflected in the Equipment Listing Table shown in Exhibit A of this Agreement, and (2) the Rate Schedule.

5. Extra Services Billing Procedure: Within 15 business days of the end of each month during this Agreement term, CONTRACTOR shall provide CITY with an invoice for the amount of Extra Services, if any, performed during the month. The Extra Services charges shall be broken down for Elevator number and purchase order number, where applicable. If travel time is included, CONTRACTOR shall provide back-up documentation for such travel time if requested by CITY. CITY will not accept lump sum invoices without such breakdown. If CONTRACTOR fails to provide the invoice for Extra Services to CITY within 15 days of the end of each month during this Agreement term, CITY shall receive a discount for each day thereafter that CONTRACTOR fails to provide the invoice, equal to five percent (5%) of the amount payable for Extra Services included in the invoice. All Extra Services invoices must have a business card and signature of the approved account representative for the applicable Units under Agreement (from the applicable CONTRACTOR Account Manager listed on the list of CONTRACTOR’s Approved Personnel attached hereto as Exhibit A-3 to such Agreement), indicating that the invoice has been reviewed prior to being sent to the CITY.

7. Dates for Billing Purposes. For purposes of billing for Services performed under Agreements or adjustments to the Basic Fee or Rate Schedule set forth herein, the following terms shall have the following meanings:
a. Anniversary Adjustment Date: The “Anniversary Adjustment Date” shall be July 1. Only adjustments occurring on or after July 1, 2017 shall be applicable.

DocuSign Envelope ID: AAC8F959-4840-43F3-8E1C-EB723563951F 16 B0785-0001\2656316v2.doc
IV. Amendment No. 3:

CITY shall compensate CONTRACTOR for the satisfactory performance of services performed under this Agreement as described in Exhibit A in the total not-to-exceed amount of Three Million Five Hundred Fifty-Two Thousand Six Hundred Sixty-Six Dollars ($3,552,666) based on the fees and rates set forth herein and as further described on the cover page of the Agreement.

In addition, the City Manager may approve by purchase order an additional not to exceed amount of $177,576 for the remainder of the term of the Agreement. In no event shall the total amount paid to CONTRACTOR exceed Three Million Seven Hundred Thirty Thousand and Two Hundred Fourty Two Dollars ($3,730,242)
CONTRACTOR shall submit to CITY a detailed invoice, on a monthly basis or less frequently, for the services performed pursuant to this Agreement. Each invoice shall itemize the services rendered during the billing period and the amount due. Within 30 days of receipt of each invoice, CITY shall pay all undisputed amounts included on the invoice. CITY shall pay CONTRACTOR said Consideration in accordance with the schedule of payment set forth in this Exhibit.

DocuSign Envelope ID: AAC8F959-4840-43F3-8E1C-EB723563951F Certificate Of Completion
Envelope Id: AAC8F959484043F38E1CEB723563951F Status: Sent Subject: Please DocuSign: Liftech Elevator Services Inc. (294-16) Amendment No. 3 (REVISED) Source Envelope:

Document Pages: 16 Signatures: 6 Envelope Originator:

Certificate Pages: 3 Initials: 0 Erin Justus
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455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 198.245.189.169
Record Tracking
Status: Original
5/18/2022 11:41:31 AM
Holder: Erin Justus
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Sharon L'Heureux Dressel
[email protected]
Risk Manager
Sharon Dressel
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Signed by link sent to [email protected]
Using IP Address: 198.245.189.166
Sent: 5/18/2022 11:48:25 AM
Viewed: 5/18/2022 2:44:28 PM
Signed: 5/18/2022 2:44:34 PM
Electronic Record and Signature Disclosure:

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Daniel M. Simon
[email protected]
President/CEO
Liftech Elevator Services
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Signed by link sent to [email protected]
Using IP Address: 47.180.47.211
Sent: 5/18/2022 2:44:35 PM
Viewed: 5/19/2022 8:10:08 AM
Signed: 5/19/2022 4:02:43 PM
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Michael Perkins
[email protected]
Security Level: Email, Account Authentication
(None)
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Signed by link sent to [email protected]
Using IP Address: 47.156.200.239
Sent: 5/18/2022 2:44:36 PM
Resent: 5/19/2022 4:56:01 PM
Viewed: 5/19/2022 6:12:44 PM
Signed: 5/19/2022 6:13:13 PM
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Deborah R. Hakman for
[email protected]
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Signed by link sent to [email protected]
Using IP Address: 23.243.217.91
Signed using mobile
Sent: 5/19/2022 6:13:14 PM
Viewed: 5/19/2022 11:23:40 PM
Signed: 5/19/2022 11:23:55 PM
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Michael V. Hensley
[email protected]
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(None)
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Using IP Address: 198.245.189.169
Sent: 5/19/2022 11:23:57 PM
Viewed: 5/20/2022 7:37:56 AM
Signed: 5/20/2022 7:38:45 AM
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Shana E. Epstein
[email protected]
Director of Public Works
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Using IP Address: 23.242.79.84
Sent: 5/20/2022 7:38:47 AM
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Signed: 5/20/2022 7:58:11 AM
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Logan Phillippo
[email protected]
Senior Management Analyst
City of Beverly Hills
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(None)
Sent: 5/20/2022 7:58:13 AM
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George Chavez
[email protected]
Security Level: Email, Account Authentication
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Lili Bosse
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

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Huma Ahmed
[email protected]
Security Level: Email, Account Authentication
(None)
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Adrianne Tarazon
[email protected]
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Dorina Mohan
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Security Level: Email, Account Authentication
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Jackie Perez
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Lourdes Sy-Rodriguez
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Beverly Hills City CouncilMay 24, 2022

Beverly Hills City Council
May 24, 2022