AGENDA REPORT
Meeting Date: September 9, 2025
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. 2 TO THE AGREEMENT BETWEEN THE
CITY OF BEVERLY HILLS AND SUNWEST ENGINEERING
CONSTRUCTORS, INC. FOR UNDERGROUND STORAGE
TANK SERVICES; AND
AUTHORIZE THE CITY MANAGER TO APPROVE CHANGE
PURCHASE ORDERS IN AN AMOUNT NOT TO EXCEED THE
TOTAL VALUE OF THE AGREEMENT OVER THE TERM OF
THE AGREEMENT
Attachment: Amendment No. 2
RECOMMENDATION
Staff recommends that City Council approve Amendment No. 2 to the agreement with SunWest Engineering Constructors, Inc. (“SunWest”) for additional inspection, certification, consultation, and repairs as necessary in connection with the City’s underground storage tanks (“USTs”) and authorize the City Manager to approve change purchase orders in an amount not to exceed the total value of the agreement over the term of the agreement. The total compensation for all services under this agreement would be $500,000.
INTRODUCTION
After completing a competitive bid process, City Council approved an agreement in 2021 with SunWest for State-mandated services for five USTs used to fuel the City’s fleet and located at Fire Station 1, the Police Station, and the Central Fueling Station at Public Works. Under the City Manager’s approval authority, the agreement was amended once to increase the consideration to cover additional required work, including under dispenser containment (UDC) tank replacement on the East Island of the Central Fueling Station.
Staff recommends Amendment No. 2 to cover additional required work.
BEVERLV
HILLS
id
Meeting Date: September 9, 2025
DISCUSSION
The State mandates certain services for USTs, including monthly inspections by a Designated Underground Storage Tank Operator, annual certification of monitoring equipment, and annual testing and certification of the enhanced vapor recovery system for gasoline USTs and dispensers. State-required UST and aboveground storage tank (“AST”) repair and replacement projects have been identified, which include UDC tank replacement for the West Island of the Central Fueling Station, and the replacement of the deteriorated AST at the City Hall Emergency Generator. The proposed amendment would cover those additional projects.
The agreement consideration with SunWest would total $500,000. (The current agreement consideration is $300,000 and the amendment would add $200,000.) There would be no change to the termination date of June 30, 2026.
Summary of SunWest Amendments
Agreement Purpose Termination
Date
Amount
Original UST services June 30, 2022,
option for four
additional oneyear terms
$250,000
Amendment No. 1 UST services and
mandated testing/repairs
at Central Fueling Station
June 30, 2026 $50,000
Amendment No. 2 UST services and
additional mandated
repairs at Central Fueling
Station, as well as AST
replacement at City Hall
Emergency Generator
June 30, 2026 $200,000
Total $500,000
FISCAL IMPACT
The funds for UST services in this agreement are included in the City Council-approved Central Stores Fuel Inventory Program. The necessary repairs and replacements will be funded using the Capital Improvement Project 00840 (Compressed Natural Gas [CNG] Fueling Station). No appropriation is needed at this time.
Shana Epstein,
Director of Public Works
Approved By
Attachment 1
1 B0785-0001\3150441v4.doc
AMENDMENT NO. 2 TO THE AGREEMENT BETWEEN THE CITY
OF BEVERLY HILLS AND SUNWEST ENGINEERING
CONSTRUCTORS, INC. FOR UNDERGROUND STORAGE TANK
SERVICES
NAME OF CONTRACTOR: SunWest Engineering Constructors, Inc.
RESPONSIBLE PRINCIPAL Spencer Kissick, Director
OF CONTRACTOR:
CONTRACTOR'S ADDRESS: 4780 Cheyenne Way
Chino, CA 91710
Attention: Patty Fleming, Project Manager
CONTRACTOR’S E.I.N./TAX I.D. NO.: 33-0658866
CITY'S ADDRESS: City of Beverly Hills
345 Foothill Road
Beverly Hills, CA 90210
Attention: Director of Public Works
COMMENCEMENT DATE: Upon Written Notice to Proceed
TERMINATION DATE: June 30, 2022 (original termination date) June 30, 2023 (extended pursuant to Section 2 by
letter dated April 26, 2022)
June 30, 2024 (extended pursuant to Section 2 by
letter dated April 18, 2023)
June 30, 2025 (extended pursuant to Section 2 by
letter dated May 17, 2024)
June 30, 2026 (extended pursuant to Section 2 by
letter dated April 22, 2025)
CONSIDERATION: Original Agreement:
Total not to exceed $250,000, as described in
Exhibit B
Amendment No. 1: additional not to exceed
$50,000
Amendment No. 2: additional not to exceed
$200,000
Total Not to Exceed: $500,000, as described in
Exhibit B
Docusign Envelope ID: B07A16EA-71C7-4329-8024-B22DDE880D3D 2 B0785-0001\3150441v4.doc
AMENDMENT NO. 2 TO THE AGREEMENT BETWEEN THE CITY
OF BEVERLY HILLS AND SUNWEST ENGINEERING
CONSTRUCTORS, INC. FOR UNDERGROUND STORAGE TANK
SERVICES
This Amendment No. 2 is to that certain Agreement between the City of Beverly Hills (hereinafter called "CITY") and SunWest Engineering Constructors, Inc. (hereinafter called "CONTRACTOR"), dated March 16, 2021, and identified as Contract No. 65-21, as amended by Amendment No. 1, dated July 10, 2025, and identified as Contract No. 367-25 (“Agreement”).
RECITALS
A. CITY and CONTRACTOR entered into an Agreement for service of underground fuel-storage tanks, which was previously amended.
B. CITY and CONTRACTOR desire to further amend the Agreement to increase the Consideration to compensate CONTRACTOR for its continued services.
NOW, THEREFORE, the parties agree as follows:
Section 1. The Consideration shall be amended as set forth above.
Section 2. Exhibit B, “SCHEDULE OF PAYMENT AND RATES,” shall be amended as attached hereto and incorporated herein.
Section 3. Except as specifically amended by this Amendment No. 2 and prior amendments, the remaining provisions of the Agreement shall remain in full force and effect.
Docusign Envelope ID: B07A16EA-71C7-4329-8024-B22DDE880D3D 3 B0785-0001\3150441v4.doc
EXECUTED the _____ day of __________________, 20___, at Beverly Hills, California.
CITY OF BEVERLY HILLS
A Municipal Corporation
SHARONA R. NAZARIAN, PsyD
Mayor
ATTEST:
______________________(SEAL)
HUMA AHMED
City Clerk
CONTRACTOR: SunWest Engineering
Constructors, Inc.
SPENCER KISSICK
Director
MICAELA KISSICK
Corporate Secretary
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
LAURENCE S. WIENER NANCY HUNT-COFFEY
City Attorney City Manager
SHANA E. EPSTEIN
Director of Public Works
MICHAEL V. HENSLEY
Deputy Director of Public Works-Operations
SHARON L’HEUREUX DRESSEL
Risk Manager
ANTHONY RODSTEIN
Purchasing Services Manager
Docusign Envelope ID: B07A16EA-71C7-4329-8024-B22DDE880D3D lucul.a kisside
4 B0785-0001\3150441v4.doc
EXHIBIT B
SCHEDULE OF PAYMENT AND RATES
CITY shall compensate CONTRACTOR for the satisfactory performance of the work described in Exhibit A in a total amount not to exceed Five Hundred Thousand Dollars ($500,000.00), including labor, taxes, and expenses, at the following rates:
Table 1 Rates
Item Specification
(In detail)
Unit Unit Price
Monthly rate for Designated
Underground Storage Tank Operator
responsibilities
Per Month $357.00
Annual Inspection and Certification of
Monitoring Equipment of all CITY USTs
Annual
Cost $1,753.00
Annual testing and certification of
gasoline enhanced vapor recovery
system (fleet yard)
Annual
Cost $877.00
Triennial testing (SB989) of the all UST
secondary containment systems Total Cost $5,760.00
Overfill prevention testing Total Cost $350.00
Repair labor rate (normal hours:
between 06:30AM and 04:00PM) Per Hour
Min Hrs.
$99.50
2 Hrs.
Repair labor rate (outside normal hours:
4:01PM - 6:29AM) Per Hour
Min Hrs.
$139.30
4 Hrs.
Repair labor rate (weekends and
holidays)
Per Hour
Min Hrs.
$139.30
4 Hrs.
Parts mark-up/mark-down over
manufacturer’s invoice Percentage 9.5%
Proximity to Fleet Service Center:
9357 West Third St, Beverly Hills, CA
90210
Miles 31
Docusign Envelope ID: B07A16EA-71C7-4329-8024-B22DDE880D3D 5 B0785-0001\3150441v4.doc
Table 2 Escalations to Rates
Start Date Escalation
Starting July 1, 2022 0
Starting July 1, 2023 2%
Starting July 1, 2024 2%
Starting July 1, 2025 3%
Alternately, any additional, unforeseen, and unanticipated work shall not be undertaken without the express direction by CITY in writing. The payment terms shall be set forth in an IPO. The payment terms (either lump sum or time and materials basis) shall be set forth in the IPO and agreed to by both parties in writing.
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 thirty (30) days of receipt of each invoice, CITY shall pay all undisputed amounts included on the invoice.
Docusign Envelope ID: B07A16EA-71C7-4329-8024-B22DDE880D3D Certificate Of Completion
Envelope Id: B07A16EA-71C7-4329-8024-B22DDE880D3D Status: Sent Subject: Complete with Docusign: SunWest Engineering Constructors (65-21) Amendment No. 2 Source Envelope:
Document Pages: 5 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
8/22/2025 4:54:18 PM
Holder: Erin Justus
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Micaela Kissick
[email protected]
Corporate Secretary
Security Level: Email, Account Authentication
(None) Signature Adoption: Pre-selected Style
Using IP Address: 2a09:bac3:a3cd:1232::1d0:84
Signed using mobile
Sent: 8/22/2025 4:55:40 PM
Resent: 8/25/2025 7:34:49 AM
Viewed: 8/25/2025 10:42:40 AM
Signed: 8/25/2025 10:42:55 AM
Electronic Record and Signature Disclosure:
Not Offered via Docusign
Spencer Kissick
[email protected]
OWner
Security Level: Email, Account Authentication
(None) Signature Adoption: Drawn on Device
Using IP Address: 47.179.35.210
Sent: 8/22/2025 4:55:41 PM
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Deborah R. Hakman for
[email protected]
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(None)
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Signed using mobile
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Signed: 8/25/2025 10:48:11 AM
Electronic Record and Signature Disclosure:
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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: 8/25/2025 10:48:12 AM
Resent: 8/26/2025 7:31:15 AM
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Signed: 8/26/2025 1:25:18 PM
Electronic Record and Signature Disclosure:
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? docusign
tula. kissid
Signer Events Signature Timestamp
Sharon L'Heureux Dressel
[email protected]
Risk Manager
Sharon Dressel
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(None)
Signature Adoption: Pre-selected Style
Using IP Address: 198.245.189.166
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Viewed: 8/26/2025 6:32:44 PM
Signed: 8/26/2025 6:33:01 PM
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Michael V. Hensley
[email protected]
Deputy Director of Public Works-Operations
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Using IP Address:
2603:8001:6e07:fdde:eef7:739d:52bf:36d6
Signed using mobile
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Electronic Record and Signature Disclosure:
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Shana E. Epstein
[email protected]
Director of Public Works
Security Level: Email, Account Authentication
(None) Signature Adoption: Pre-selected Style
Using IP Address:
2603:8001:6300:bfc8:b04e:4c91:7e22:3156
Signed using mobile
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Signed: 8/26/2025 8:00:19 PM
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: 8/26/2025 8:00:21 PM
Electronic Record and Signature Disclosure:
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Nancy Hunt-Coffey
[email protected]
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(None)
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Sharona R. Nazarian
[email protected]
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Huma Ahmed
[email protected]
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Jessika Vasquez
[email protected]
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Keith Sterling
[email protected]
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Jackie Galeas
[email protected]
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