AGENDA REPORT
Meeting Date: September 22, 2026
Item Number:
To: Honorable Mayor & City Council
From: Robert Welch, P.E., Utilities General Manager
Vince Damasse, P.E., Water Resources and Operations Manager Melissa Gomez, Senior Management Analyst
Subject: AMENDMENT NO. 2 TO THE AGREEMENT BETWEEN THE CITY OF BEVERLY HILLS AND FERREIRA CONSTRUCTION CO. INC.
DBA FERREIRA COASTAL CONSTRUCTION CO. FOR
EMERGENCY WATER SYSTEM REPAIRS; AND
APPROVAL OF A CHANGE PURCHASE ORDER IN THE
AMOUNT OF $200,000 FOR A TOTAL NOT-TO-EXCEED
AMOUNT OF $300,000
Attachments: 1. Amendment
RECOMMENDATION
Staff recommends that City Council:
1. Approve an amendment with Ferreira Construction Co. Inc. DBA Ferreira Coastal Construction Co. for emergency water system repairs; and
2. Approve a change purchase order in the amount of $200,000 for a total amount not-to-exceed $300,000.
INTRODUCTION
The City utilizes Ferreira Construction Co. Inc. DBA Ferreira Coastal Construction Co. (“Ferreira”) to provide emergency water system repair services on an as-needed basis.
These services allow the City to respond promptly to water system emergencies and other urgent conditions that may require specialized construction services beyond the capabilities or availability of City staff.
The existing agreement and purchase order were approved by the City Manager and have a not-to-exceed amount of $100,000. Based on previous main break history, increase in Meeting Date: September 22, 2026
contractor labor and materials costs, and the importance of maintaining sufficient contracting capacity to respond to emergency water system repairs, staff recommends increasing the agreement and purchase order by $200,000 for a total amount not-toexceed amount of $300,000 for the remainder of the fiscal year.
DISCUSSION
The City’s water distribution system requires timely response when unforeseen main breaks or emergency conditions occur. Depending on the nature, location, and complexity of an incident, repairs may require specialized equipment, personnel, excavation, traffic control, trenching and pipe materials, street or pavement surface restoration or other construction services that cannot always be accommodated solely with City resources.
Ferreira was pre-qualified previously along with other emergency water services contractors in October 2023. Ferreira provides the City with supplemental construction resources to assist with emergency and time-sensitive water system repairs on an asneeded on-call basis. Maintaining an adequate contract authorization allows staff to mobilize these services quickly when necessary, helping minimize service disruptions, protect City infrastructure, alleviate property damage, and restore water service in a timely manner.
The existing $100,000 agreement and purchase order provide limited capacity to address larger, more complex, or multiple emergency repairs. Staff is therefore requesting an additional $200,000 in agreement and purchase order authority, increasing the total notto-exceed amount to $300,000. Services will continue to be authorized only as needed and based on actual emergency repair requirements.
Approval of the amendment and associated change purchase order will ensure that the City has sufficient contracting capacity available to respond promptly to unforeseen water system repair needs.
FISCAL IMPACT
Funding for this amendment is available in the Water Enterprise Budget.
Shana Epstein,
Director of Public Works
Approved By
Attachment 1
1 B0785-0001\3291045v3.doc
AMENDMENT NO. 2 TO THE AGREEMENT BETWEEN THE CITY
OF BEVERLY HILLS AND FERREIRA CONSTRUCTION CO. INC.
DBA FERREIRA COASTAL CONSTRUCTION CO. FOR
EMERGENCY WATER SYSTEM REPAIRS
NAME OF CONTRACTOR: Ferreira Construction Co. Inc. dba Ferreira Coastal Construction Co.
RESPONSIBLE PRINCIPAL Brandon Pensick, Vice President
OF CONTRACTOR:
CONTRACTOR'S ADDRESS: 10370 Commerce Center Drive, Suite B200 Rancho Cucamonga, CA 91730
Attention: Moses Salcedo, Project Engineer
CONTRACTOR’S E.I.N./TAX I.D. NO.: 22-3334957
CITY'S ADDRESS: City of Beverly Hills
345 Foothill Road
Beverly Hills, CA 90210
Attention: Director of Public Works
COMMENCEMENT DATE: October 1, 2023
TERMINATION DATE: September 30, 2024 (original termination date) September 30, 2026 (amended pursuant to
Amendment No. 1)
September 30, 2027 (amended pursuant to this
Amendment No. 2)
CONSIDERATION: Original Agreement:
Not to Exceed $100,000.00 based on Cityapproved purchase orders and Contractor’s schedule of fees and charges on a time-andmaterials basis Amendment No. 1: no additional consideration
Amendment No. 2: additional $200,000.00
Total Not to Exceed: $300,000.00, as described in
Appendix A
Docusign Envelope ID: BA0807C6-6D90-8306-8303-E115D952FB87 2 B0785-0001\3291045v3.doc
AMENDMENT NO. 2 TO THE AGREEMENT BETWEEN THE CITY
OF BEVERLY HILLS AND FERREIRA CONSTRUCTION CO. INC.
DBA FERREIRA COASTAL CONSTRUCTION CO. FOR
EMERGENCY WATER SYSTEM REPAIRS
This Amendment No. 2 is to that certain Contract between the City of Beverly Hills (hereinafter called "City") and Ferreira Construction Co. Inc. dba Ferreira Coastal Construction Co. (hereinafter called "Contractor"), dated October 17, 2023, and identified as Contract No. 570- 23, as amended by Amendment No. 1, dated September 6, 2024, and identified as Contract No. 482-24 (“Contract”).
RECITALS
A. City and Contractor entered into a Contract to provide as-needed emergency underground water utility repairs within the City of Beverly Hills and portions of the City of West Hollywood, which was previously amended.
B. City and Contractor desire to further amend the Contract to extend the Termination Date, increase the Consideration, and amend the Compensation and Payment Procedures to update Contractor’s Fee Schedule.
NOW, THEREFORE, the parties agree as follows:
Section 1. The Termination Date shall be amended as set forth above.
Section 2. The Consideration shall be amended as set forth above.
Section 3. Appendix A of the Contract entitled “Compensation and Payment Procedures” shall be restated and amended as attached hereto and incorporated herein.
Section 4. Except as specifically amended by this Amendment No. 2 and prior amendment, the remaining provisions of the Agreement shall remain in full force and effect.
Docusign Envelope ID: BA0807C6-6D90-8306-8303-E115D952FB87 3 B0785-0001\3291045v3.doc
EXECUTED the _____ day of __________________, 20___, at Beverly Hills, California.
CITY OF BEVERLY HILLS
A Municipal Corporation
___________________________________
CRAIG A. CORMAN
Mayor of the City of Beverly Hills
ATTEST:
__________________________(SEAL)
HUMA AHMED
City Clerk
CONTRACTOR: Ferreira Construction Co. Inc. dba
Ferreira Coastal Construction Co.
BRANDON PENSICK
Vice President
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
LAURENCE S. WIENER RYAN GOHLICH
City Attorney City Manager
SHANA E. EPSTEIN
Director of Public Works
ROBERT WELCH
Utilities Manager
[Signatures continue]
Docusign Envelope ID: BA0807C6-6D90-8306-8303-E115D952FB87 4 B0785-0001\3291045v3.doc
NAREK KATABYAN
Risk Manager
ANTHONY RODSTEIN
Purchasing Services Manager
Docusign Envelope ID: BA0807C6-6D90-8306-8303-E115D952FB87 5 B0785-0001\3291045v3.doc
APPENDIX A
COMPENSATION AND PAYMENT PROCEDURES
1.0 COMPENSATION/RATES
1.1 City shall compensate Contractor for the satisfactory performance of the work described herein in the Contract in a total amount not to exceed the amount set forth in City-authorized purchase orders, including labor, taxes, and expenses at the rates specified below. The total fee under this Contract shall not exceed Three Hundred Thousand Dollars ($300,000.00) at the rates specified in this Contract.
FEE SCHEDULE
1.2 Equipment expenses incurred in the performance of services under this Agreement shall be reimbursed at current published Caltrans Equipment Rental Rates https://dot.ca.gov/programs/construction/equipment-rental-rates-and-labor-surcharge plus markup not to exceed 15%.
1.3 In the event City agrees to extend the term of the Contract beyond September 30, 2027, Contractor may modify the rates no more than once per calendar year upon giving City thirty (30) days prior written notice, and upon City’s written approval.
2.0 PROGRESS PAYMENTS
2.1 Based upon Applications for Payment submitted to the City, the City shall make progress payments on account of the Contract Amount as set forth on the Cover Page of the Contract to the Contractor as provided below.
2.2 City shall make payment to the Contractor within thirty (30) days after receipt of a proper Application for Payment.
Docusign Envelope ID: BA0807C6-6D90-8306-8303-E115D952FB87 6 B0785-0001\3291045v3.doc
2.3 Each Application for Payment shall be based upon the approved proposal submitted by the Contractor.
2.4 Applications for Payment shall indicate the percentage of completion of each portion of the Work as of the end of the period covered by the Application for Payment.
2.5 The amount of each progress payment shall be computed as follows:
2.5.1 Take that portion of the Contract Amount properly allocable to completed and satisfactory work as determined by multiplying the percentage completion of each portion of the work by the share of the total Contract Amount allocated to that portion of the work in the proposal, less a retention of five percent (5%).
2.5.2 Add that portion of the Contract Amount properly allocable to materials and equipment delivered and suitably stored at the site for subsequent incorporation in the completed construction (or, if approved in advance by the City, suitably stored off the site at a location agreed upon in writing), less a retention of five percent (5%).
2.5.3 Subtract the aggregate of previous payments made by the City.
2.6 Pursuant to Section 22300 of the Public Contract Code, at the request and expense of the Contractor, securities equivalent to the retention amount withheld may be deposited with the City or with a state or federally chartered bank as the escrow agent, and City shall then pay such moneys to the Contractor. Alternatively, the Contractor may request and the City shall make payment of retentions earned directly to the escrow agent at the expense of the Contractor. If Contractor elects one of these options, Contractor shall execute an escrow agreement in a form approved by the City Attorney.
2.7 Reduction or limitation of retention, if any, shall be upon written request by the Contractor. The City, at its discretion, may reduce the total retention withheld or release retention for a specific item of work in accordance with the law.
3.0 FINAL PAYMENT
3.1 The final payment, constituting the entire unpaid balance of the Contract Amount, including the retention, shall be made by the City to the Contractor when (1) the Contract has been fully performed by the Contractor except for the Contractor's responsibility to correct nonconforming work as agreed to between the City and the Contractor; and (2) a final Certificate for Payment has been submitted by the Contractor and approved by the City; and (3) the Work has been accepted by the City Council of the City. Final payment shall be made by the City not more than forty-five (45) days after completion of the above, but only to the extent that no stop payment notices or other requirements to withhold funds are then in effect.
Docusign Envelope ID: BA0807C6-6D90-8306-8303-E115D952FB87 Certificate Of Completion
Envelope Id: BA0807C6-6D90-8306-8303-E115D952FB87 Status: Sent Subject: Complete with Docusign: Ferreira Construction Co. Inc. (570-23) Amendment No. 2 Source Envelope:
Document Pages: 6 Signatures: 6 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: 198.245.189.177
Record Tracking
Status: Original
9/16/2026 3:06:55 PM
Holder: Erin Justus
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Brandon Pensick
[email protected]
Senior Vice President
Ferreira Construction Co. Inc. dba Ferreira Coastal
Construct
Security Level: Email, Account Authentication
(None)
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Using IP Address: 68.4.202.153
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Deborah R. Hakman for
[email protected]
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Anthony Rodstein
[email protected]
Purchasing Services Manager
City of Beverly Hills (Finance Department)
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Narek Katabyan
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Robert Welch
[email protected]
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2600:1012:b059:b19e:2871:8eb1:ee76:584a
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Shana E. Epstein
[email protected]
Director of Public Works
City of Beverly Hills
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Anthony Rodstein
[email protected]
Purchasing Services Manager
City of Beverly Hills (Finance Department)
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Sent: 9/16/2026 5:53:17 PM
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Ryan Gohlich
[email protected]
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Craig A. Corman
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Huma Ahmed
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Denise Garcia
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Keith Sterling
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Jackie Galeas
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