AGENDA REPORT
Meeting Date: December 10, 2024
Item Number:
To: Honorable Mayor & City Council
From: Daren Grilley, Assistant Director of Public Works/City Engineer Christine Chung, Project Manager
Tania Schwartz, Sr. Management Analyst
Subject: AMENDMENT NO. 5 TO THE AGREEMENT BETWEEN THE
CITY OF BEVERLY HILLS AND AAA FLAG & BANNER
MANUFACTURING COMPANY, INC. FOR BANNER AND
SIGNAGE FABRICATION AND INSTALLATION SERVICES
FOR THE METRO PURPLE LINE EXTENSION PROJECT;
AND
APPROVAL OF AN APPROPRIATION OF $451,000 FROM
THE GENERAL FUND (ALL COSTS IN FURTHERANCE OF
THE PROJECT WILL BE REIMBURSED BY LOS ANGELES
COUNTY METROPOLITAN TRANSPORTATION
AUTHORITY); AND
APPROVAL OF A CORRESPONDING CHANGE
PURCHASE ORDER FOR $451,000 FOR A TOTAL NOT-TOEXCEED AMOUNT OF $1,605,000.
Attachments: 1. Amendment No. 5 to Agreement 305-18
RECOMMENDATION
Staff recommends that City Council approve Amendment No. 5 to Agreement 305-18 with AAA Flag and Banner for as-needed banner, signage fabrication and installation services for the Los Angeles County Metropolitan Transportation Authority (Metro) Purple Line Extension project (Project) within the City of Beverly Hills; approve an appropriation of $451,000 from the general fund (all costs associated with the Project will be reimbursed by Metro); approve and change purchase order for $451,000 for a total not to exceed amount of $1,605,000.
BEVERLV
HILLS
&di
Meeting Date: December 10, 2024
INTRODUCTION
On June 5, 2018, City Council approved an agreement with AAA Flag and Banner (AAA) for fabrication and installation services for the Project, Sections 1 and 2. Since then, the City has executed four amendments to extend the contract and increase the consideration amount not to exceed $1,154,000. This amendment provides $451,000 for a total not to exceed amount of $1,605,000.
Through the Purple Line Projects – Memorandum of Agreements (MOAs), the City has required Metro to finance business mitigation efforts, including public information graphics for construction barriers and staging yards, wayfinding, and detour signage for impacted businesses or parking, as well as covers over temporary streetlight pole bases, among other services.
This contract with AAA covers the fabrication, installation, maintenance and storage of banners and signage associated with both Section 1 and Section 2 of the Project. The City manages this contract and coordinates with AAA for the installation of graphics and signage, and Metro reimburses the City for both staff services and vendor costs.
DISCUSSION
AAA Flag and Banner (AAA) was selected through a Request for Proposals (RFP) process to provide banner and signage fabrication and installation services for the Project. The initial contract, Agreement No. 305-18, in an amount not to exceed $170,000, was executed on June 5, 2018. On April 2, 2019, Amendment 1 was executed for a not to exceed amount of $588,635. On April 21, 2020, Amendment 2 was executed for a not to exceed amount of $844,000. On March 22, 2021, Amendment 3 was executed to extend the termination date and bring the not to exceed amount to $844,000. On June 6, 2023, Amendment 4 was executed for a not to exceed amount of $1,154,000.
In 2024, the need for additional graphics and wayfinding signage increased due to multiple long-term closures and traffic reconfigurations, which necessitated more construction barriers. Specifically, Section 1 required the relocation of approximately 1,100 feet of K-rail barriers and fences multiple times due to changes in the construction sequence. Section 2 implemented two full closures of South Canon Drive in 2024 for appendage structure construction and street restoration. As a result of these unforeseen closures, additional graphic and signage installations were required, leading to costs that exceed the original estimates for the 2024/2025 fiscal year.
The work in Section 1 is expected to continue through 2025, and Section 2 is projected to extend until 2026. Ongoing work at both sections will involve further long-term closures and traffic reconfigurations as most of the work focuses on above-ground activities to permanently restore streets and sidewalks. Based on the remaining work, staff estimates an additional $451,000 will be required to continue providing construction mitigation, public information graphics, and community-friendly visual screening at the construction sites.
FISCAL IMPACT
Most of the costs associated with AAA’s services are reimbursed by Metro, as outlined in the MOAs between the City and Metro for the Project. The MOAs include provisions for Metro to reimburse the City for all associated staff, consultant, and vendor costs related to the construction and mitigation measures in Beverly Hills.
Meeting Date: December 10, 2024
Due to increased work volume, the remaining balance of the current Purchase Order (PO) amount is $114,151.62 and is expected to be largely expended by December 2024. An additional $451,000 is projected to be needed between 2025 and 2026.
An appropriation of funds in the amount of $451,000 from the General Fund to Account No. 00112401-731220 is requested for Amendment No. 5. This amendment will increase the contract’s not-to-exceed amount to $1,605,000. There are no changes to the rates in this amendment, and most services will continue to be reimbursed by Metro.
AAA Contract Amendment Total Not To Exceed
Original Contract (305-18) $ 170,000.00 $ 170,000.00
Amendment No. 1 (151-19) $ 418,635.00 $ 588,635.00
Amendment No. 2 (174-20) $ 255,365.00 $ 844,000.00
Amendment No. 3 (74-21) $ 0.00 $ 844,000.00
Amendment No. 4 (281-23) $ 310,000.00 $ 1,154,000.00
Amendment No. 5 $ 451,000.00 $ 1,605,000.00
On June 18, 2024, the City Council approved the Fiscal Year 2024-25 Capital and Operating Budgets, which indicated potential financial challenges on the horizon, including forecasted deficits within the next five years. The forecasted General Fund surplus for Fiscal Year 2024-25 is due to scheduled one-time public benefit contributions of $12.5 million less the utilization of $2.0 million toward the operating deficit. The chart below displays the adjusted forecasted General Fund results for Fiscal Year 2024-25, incorporating both approved and proposed mid-year appropriations.
Jeff S. Muir
Director of Finance
Shana Epstein,
Director of Public Works
Approved By Approved By
(1,998,905)$
Council-Approved Utilization of One-Time Public Benefit Contributions (6/18/24 Item G-2) 2,000,000 Fiscal Year 2024-25 Adopted Balanced Budget[1] 1,095$
Less Approved and Proposed Mid-Year Appropriations as of 12/10/2024 (860,014) (858,919)$
Date Agenda Item Council Mid-Year
Appropriations
8/20/2024 Flag Reinstallation 74,708$
11/19/2024 Approval of Salary Schedule and Associated Appropriation 306,150 11/19/2024 Flag Display Against Antisemitism 28,156
12/10/2024 Banner and Signage Fabrication - Metro Reimbursable (Pending) 451,000 12/10/2024 Public Safety Vehicle Purchase (General Fund portion) (Pending) 18,000 860,014$
General Fund Summary
Fiscal Year 2024-25 Projected Deficit before One-Time Public Benefit Net Impact on General Fund Unassigned Reserves or Additional Use of One-Time Public Benefit Contributions
Fiscal Year 2024-25 Mid-Year Appropriations Approved by Council [1] Excludes $10.5 million in anticipated one-time public benefit contributions to be considered for earmark towards Committed Fund Balance.
,.
Attachment 1
1 B0785-0001\3042384v2.doc
AMENDMENT NO. 5 TO THE AGREEMENT BETWEEN THE
CITY OF BEVERLY HILLS AND AAA FLAG & BANNER
MANUFACTURING COMPANY, INC. FOR BANNER AND
SIGNAGE FABRICATION AND INSTALLATION SERVICES FOR
THE METRO PURPLE LINE EXTENSION PROJECT
NAME OF CONTRACTOR: AAA Flag & Banner Manufacturing Company, Inc.
RESPONSIBLE PRINCIPAL Craig Furst, President
OF CONTRACTOR:
CONTRACTOR'S ADDRESS: AAA Flag & Banner
8966 National Boulevard
Los Angeles, CA 90034
Attention: Craig Furst, President
CITY'S ADDRESS: City of Beverly Hills
345 Foothill Road
Beverly Hills, CA 90210
Attention: Director of Public Works
COMMENCEMENT DATE: June 5, 2018
TERMINATION DATE: June 5, 2019 (original termination date) June 5, 2020 (amended pursuant to Amendment
No. 1)
June 30, 2021 (amended pursuant to Amendment
No. 2)
June 30, 2022 (as extended pursuant to Section 2
by letter dated April 19, 2021)
June 30, 2023 (as extended pursuant to Section 2
by letter dated May 10, 2022)
Upon satisfactory completion of all services
required under this Agreement as determined by
CITY (amended pursuant to Amendment No. 4)
CONSIDERATION: Original Agreement:
Not to exceed $170,000.00
Amendment No. 1: Not to exceed:
FY 18-19 - $73,635.00
FY 19-20 - $345,000.00
Amendment No. 2: Not to exceed:
FY 20-21 - $255,365.00
Amendment No. 3: No additional consideration
Amendment No. 4: Not to exceed:
FY 23-26 - $310,000
Docusign Envelope ID: 2010522B-949A-4A33-9BF3-7790991C8D91 2 B0785-0001\3042384v2.doc
Amendment No. 5: Not to exceed:
FY 25-26 – additional $451,000
Total Not to Exceed: $1,605,000.00 (for any and
all fiscal years)
Docusign Envelope ID: 2010522B-949A-4A33-9BF3-7790991C8D91 3 B0785-0001\3042384v2.doc
AMENDMENT NO. 5 TO THE AGREEMENT BETWEEN THE
CITY OF BEVERLY HILLS AND AAA FLAG & BANNER
MANUFACTURING COMPANY, INC. FOR BANNER AND
SIGNAGE FABRICATION AND INSTALLATION SERVICES FOR
THE METRO PURPLE LINE EXTENSION PROJECT
This Amendment No. 5 is to that certain Agreement between the City of Beverly Hills (hereinafter called "CITY"), and AAA Flag & Banner Manufacturing Company, Inc. (hereinafter called "CONTRACTOR") dated June 5, 2018 and identified as Contract No. 305-18, as amended by Amendment No. 1, dated April 2, 2019 and identified as Contract No. 151-19, as amended by Amendment No. 2, dated April 21, 2020 and identified as Contract No. 174-20, as amended by Amendment No. 3, dated March 22, 2021 and identified as Contract No. 74-21, as amended by Amendment No. 4, dated June 6, 2023 and identified as Contract No. 281-23 (collectively, the “Agreement”).
RECITALS
A. CITY and CONTRACTOR entered into the Agreement for banner and signage fabrication and installation services for the Metro Purple Line Extension Project (the “Project”), which was previously amended.
B. CITY and CONTRACTOR desire to further amend the Agreement to increase the consideration and compensate CONSULTANT for additional services related to upcoming major street restoration construction phases at Section 1 and 2. These construction phases will involve extended road closures, the installation of long-term fenced barricades, and the need for comprehensive public information graphics and wayfinding signage to mitigatie the impacts of construction on the surrounding community.
Docusign Envelope ID: 2010522B-949A-4A33-9BF3-7790991C8D91 4 B0785-0001\3042384v2.doc
NOW, THEREFORE, the parties agree as follows:
Section 1. The Consideration is hereby amended as set forth on the cover page.
Section 2. Exhibit B, “Schedule of Payment and Rates”, is hereby amended as attached hereto and incorporated herein.
Section 3. Except as specifically amended by this Amendment No. 5 and prior amendments, the remaining provisions of the Agreement shall remain in full force and effect.
EXECUTED the ___ day of ______________, 20__, at Beverly Hills, California.
CITY OF BEVERLY HILLS
A Municipal Corporation
LESTER J. FRIEDMAN
Mayor
ATTEST:
______________________(SEAL)
HUMA AHMED
City Clerk
CONTRACTOR: AAA Flag & Banner
Manufacturing Company, Inc.
CRAIG FURST
President
GENE LESNIAK
CFO
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
______________________________ ___________________________________ LAURENCE S. WIENER NANCY HUNT-COFFEY
City Attorney City Manager
[Signatures continue]
Docusign Envelope ID: 2010522B-949A-4A33-9BF3-7790991C8D91 5 B0785-0001\3042384v2.doc
SHANA E. EPSTEIN
Director of Public Works
___________________________________
DAREN GRILLEY
Assistant Director of Public Works
City Engineer
___________________________________
SHARON L'HEUREUX DRESSEL
Risk Manager
___________________________________
ANTHONY RODSTEIN
Purchasing Services Manager
Docusign Envelope ID: 2010522B-949A-4A33-9BF3-7790991C8D91 6 B0785-0001\3042384v2.doc
EXHIBIT B
SCHEDULE OF PAYMENT AND RATES
Schedule of Rates and Payment
CITY shall compensate CONTRACTOR for the satisfactory performance of the work described in this Agreement in an amount not to exceed One Million Six Hundred Five Thousand Dollars ($1,605,000.00) as described on the cover page at the rates set forth in this Exhibit or as mutually agreed upon by the parties in writing.
All pricing includes:
1) Post-installation maintenance such as smoothing or straightening during the period in which the materials are displayed as needed;
2) Proper storage of materials in a safe and weather-proof area for potential reuse (unless reuse is not applicable); and
3) Comprehensive inspection and cleaning of all materials after removal from storage and prior to re-installation.
Schedule of Rates between July 1, 2023 and June 30, 2026 VINYL BANNERS PER JOB – 7 OZ. BLACK BACK:
12,000 SQUARE FEET $2.25 PER SQUARE FOOT
9,000 – 11,999 SQUARE FEET $2.75 PER SQUARE FOOT
LESS THAN 9,000 SQUARE FEET $3.00 PER SQUARE FOOT
CITY POLE BANNER PRICING BY QUANTITY:
1 TO 15 $197.50 EACH
16 TO 50 $177.50 EACH
51 AND ABOVE $167.50 EACH
POLE BANNER INSTALLATION:
INSTALL 1-10 $990.00 FLAT
INSTALL 11-15 $89.50 EACH
INSTALL 16-25 $79.50 EACH
INSTALL 26-50 $74.50 EACH
INSTALL 51-99 $67.50 EACH
INSTALL 100 PLUS $57.50 EACH
REFLECTIVE WAYFINDING SIGNS
30” X 42” ALUMINUM $212.50 EACH
MESH BANNERS PER JOB:
12,000 SQUARE FEET $2.50 PER SQUARE FOOT
9,000 – 11,999 SQUARE FEET $3.00 PER SQUARE FOOT
Less than 9,000 SQUARE FEET $3.25 PER SQUARE FOOT
Docusign Envelope ID: 2010522B-949A-4A33-9BF3-7790991C8D91 7 B0785-0001\3042384v2.doc
LABOR:
MINIMUM SERVICE CALL $550.00
2 MAN CREW – 2 HOUR MINIMUM $285.00 PER HOUR
INSTALL 12,000 SQUARE FEET $1.00 PER SQUARE FOOT
INSTALL 9,000 – 11,999 SQUARE FEET $1.50 PER SQUARE FOOT INSTALL LESS THAN 9,000 SQUARE FEET $2.00 PER SQUARE FOOT
SWAP (REMOVE AND INSTALL)
12,000 SQUARE FEET $1.50 PER SQUARE FOOT
9,000 – 11,999 SQUARE FEET $2.25 PER SQUARE FOOT
LESS THAN 9,000 SQUARE FEET $3.00 PER SQUARE FOOT
Note:
1) Pre-quoted labor pricing may change due to weather conditions, street blockages, instruction changes on site and unforeseen conditions that may result in crew delays.
2) Removal service only remains hourly.
COLOR TESTS:
2’ x 3’ COLOR TESTS $75.00 EACH
LARGER SIZES (APPROX. 3’ X 5’) $150.00 EACH
SIDEWALK SANDWICH BOARD BANNER PILLOWCASES:
MINIMUM ORDER QUANTITY 5 $62.50 EACH
Qty 1 $150.00 EACH
Qty 2-4 $87.50 EACH
CONTRACTOR may price odd sizes or yield losses at a higher rate, dependent upon the job specifications provided by CITY.
CONTRACTOR’s turnaround time is typically four (4) to five (5) business days.
Minimum production charge is $195.00 per substrate.
CONTRACTOR shall submit an itemized statement to CITY for its services performed which shall include documentation setting forth in detail a description of the services rendered and the rates charged. CITY shall pay CONTRACTOR the amount of such undisputed billing within thirty (30) days of receipt of same.
Docusign Envelope ID: 2010522B-949A-4A33-9BF3-7790991C8D91 Certificate Of Completion
Envelope Id: 2010522B949A4A339BF37790991C8D91 Status: Sent Subject: Complete with Docusign: AAA Flag & Banner Manufacturing Company, Inc. (305-18) Amendment No. 5 Source Envelope:
Document Pages: 7 Signatures: 7 Envelope Originator:
Certificate Pages: 3 Initials: 0 Erin Justus
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 198.245.189.169
Record Tracking
Status: Original
11/22/2024 8:34:38 AM
Holder: Erin Justus
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Craig Furst
[email protected]
CEO & President
Security Level: Email, Account Authentication
(None) Signature Adoption: Drawn on Device
Using IP Address: 12.110.192.178
Sent: 11/22/2024 8:47:24 AM
Viewed: 11/22/2024 8:57:40 AM
Signed: 11/22/2024 8:57:47 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Gene Lesniak
[email protected]
Chief Financial Officer
Security Level: Email, Account Authentication
(None) Signature Adoption: Pre-selected Style
Using IP Address: 108.230.217.204
Sent: 11/22/2024 8:47:25 AM
Viewed: 11/22/2024 9:22:44 AM
Signed: 11/22/2024 9:23:10 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Deborah R. Hakman for
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 172.116.62.172
Signed using mobile
Sent: 11/22/2024 9:23:12 AM
Viewed: 11/22/2024 10:24:56 AM
Signed: 11/22/2024 10:25:11 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Anthony Rodstein
[email protected]
Purchasing Services Manager
City of Beverly Hills (Finance Department)
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 198.245.189.181
Sent: 11/22/2024 10:25:14 AM
Viewed: 11/25/2024 8:14:28 AM
Signed: 11/25/2024 8:14:33 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
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
Using IP Address: 198.245.189.166
Sent: 11/25/2024 8:14:35 AM
Viewed: 11/25/2024 8:56:41 AM
Signed: 11/25/2024 8:56:48 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Daren Grilley
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 198.245.189.169
Sent: 11/25/2024 8:56:49 AM
Viewed: 11/25/2024 8:58:19 AM
Signed: 11/25/2024 8:58:23 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Shana E. Epstein
[email protected]
Director of Public Works
Security Level: Email, Account Authentication
(None) Signature Adoption: Pre-selected Style
Using IP Address: 198.245.189.169
Sent: 11/25/2024 8:58:25 AM
Viewed: 11/25/2024 10:01:00 AM
Signed: 11/25/2024 10:01:28 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Anthony Rodstein
[email protected]
Purchasing Services Manager
City of Beverly Hills (Finance Department)
Security Level: Email, Account Authentication
(None)
Sent: 11/25/2024 10:01:30 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Nancy Hunt-Coffey
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Lester J. Friedman
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Huma Ahmed
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
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Carbon Copy Events Status Timestamp
Adrianne Tarazon
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Keith Sterling
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Megan Grilley
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 11/22/2024 8:47:25 AM
Payment Events Status Timestamps