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THIRD AMENDMENT TO THE AGREEMENT FOR PROJECT SERVICES
BETWEEN THE CITY OF REDONDO BEACH
AND JILK HEAVY CONSTRUCTION, INC.
THIS THIRD AMENDMENT TO THE AGREEMENT FOR PROJECT SERVICES ("Third Amendment") is made between the City of Redondo Beach, a chartered municipal corporation ("City") and Jilk Heavy Construction, Inc., a California corporation (“Contractor" or “Jilk Heavy Construction, Inc.”)
WHEREAS, on July 18, 2017, John S. Meek Company, Inc., a California corporation (“John S. Meek Company”) and City entered into the Agreement for Project Services (the "Agreement"); and
WHEREAS, on August 16, 2019, John S. Meek Company filed a Certificate of Amendment of Articles of Incorporation with the Secretary of State changing its name to Jilk Heavy Construction, Inc.; and
WHEREAS, on April 13, 2021, John S. Meek Company and the City entered into the First Amendment to the Agreement (“First Amendment”) to replace all references to “John S. Meek Company, Inc.” with “Jilk Heavy Construction, Inc.” in both the Agreement and its subsequent amendments; extend the duration of the Agreement until July 17, 2025; and increase the compensation limit by $200,000 for each fiscal year, resulting in a total compensation cap of $1,909,000; and
WHEREAS, on January 17, 2023, the City Council directed staff to demolish the City’s Sport Fishing Pier due to its deteriorated condition and commensurate with available emergency protocols; and
WHEREAS, on February 7, 2023, the City and the Contractor entered into the Second Amendment to the Agreement (“Second Amendment”) to demolish the City’s Sport Fishing Pier in accordance with emergency protocols from regulatory agencies, including, but not limited to, the City, the US Army Corps of Engineers, the State Water Resources Control Board, and the California Coastal Commission; and increase the compensation limit by $1,162,730, resulting in a total compensation cap of $3,071,730; WHEREAS, the City and the Contractor desire to amend the Agreement to add additional repair tasks, extend the term of the Agreement, and increase Contractor’s compensation.
NOW THEREFORE, in consideration of the promises and mutual covenants contained herein, and intending to be legally bound, the parties hereby agree to make the following amendments to the Agreement:
1. SCOPE OF SERVICES. Exhibits “A” to “A-1” of the Agreement are hereby amended to add Exhibit “A-2”, which adds Task 4 to provide repairs to the Redondo Beach Pier.
Exhibit "A-2" is attached hereto and incorporated by this reference.
2. TERM AND TIME OF COMPLETION. Exhibits “B” to “B-2” of the Agreement are hereby amended to add Exhibit “B-3”, which extends the Agreement to January 1, 2027. Exhibit “B-3” is attached hereto and incorporated by reference. Contractor shall commence and - 2 -
complete all services described in Exhibits “A” and “A-2” of the Agreement in accordance with the schedule set forth in Exhibit “B-3”.
3. COMPENSATION. Exhibits "C" to “C-2”of the Agreement are hereby amended to add Exhibit “C-3” to increase Contractor’s rates effective November 7, 2023, and the total compensation limit by $450,000 for a total limit of $3,721,730. Exhibit “C-3” is attached hereto and incorporated by reference. Contractor shall be compensated for the services described in Exhibits “A” to “A-2”.
4. INSURANCE. Exhibit “D” of the Agreement is hereby amended to add Exhibit “D-1”, which raises the general liability coverage from $1,000,000 to $2,000,000. Exhibit “D-1” is attached hereto and incorporated by this reference. Contractor shall comply with the requirements set forth in Exhibit “D-1”.
5. NO OTHER AMENDMENTS. Except as expressly stated herein, the Agreement shall remain unchanged and in full force and effect. The Agreement, First Amendment, Second Amendment, and this Third Amendment constitute the entire agreement between the parties and supersede any previous oral or written agreement with respect to the subject matter hereof. In the event of any inconsistency between the terms of the Agreement, First Amendment, Second Amendment, and this Third Amendment, the terms of this Third Amendment shall govern.
[SIGNATURES FOLLOW ON NEXT PAGE]
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IN WITNESS WHEREOF, the parties have executed this Third Amendment in Redondo Beach, California, as of this 7th day of November, 2023.
CITY OF REDONDO BEACH, JILK HEAVY CONSTRUCTION, INC.,
a chartered municipal corporation a California corporation ___________________________ By: _______________________ William C. Brand, Mayor Name: _______________________
Title: _______________________
ATTEST: APPROVED:
___________________________ ___________________________ Eleanor Manzano, City Clerk Diane Strickfaden, Risk Manager APPROVED AS TO FORM:
___________________________
Michael W. Webb, City Attorney
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EXHIBIT “A-2”
SCOPE OF SERVICES
CONTRACTOR’S DUTIES
A. TASK 4
1. Contractor shall replace one Municipal Pier pile located at Bent 13, specifically at the former Tony's Restaurant site. This shall include driving the pile alongside the building and conducting the required concrete dock patching.
2. Contractor shall replace two Municipal Pier piles located at Bents 23 and 24. These piles shall be driven through the café building. Subsequently, Contactor shall patch the roof and flooring to match the existing construction. Contractor shall coordinate the timing of work with the City’s designated Project Manager (“City Project Manager”). Any work must be approved in writing by the City Project Manager prior to mobilization.
3. Contractor shall install five pipe braces for the pile repair in Bents 23 & 24.
4. Contractor shall repair pile wraps, pile mud seals, pile bolting, braces, bracing splice blocks, nails, and the access catwalk as directed by the City Project Manager.
5. Contractor shall implement all essential safety precautions during the course of this work.
6. Contractor shall dispose all demolished material.
7. Contractor shall implement and follow Construction Best Management Practices (BMPs) during the course of work to ensure protection of ocean water quality. - 5 -
EXHIBIT “B-3”
SCHEDULE FOR COMPLETION
TERM: The term of this Agreement shall be extended to January 1, 2027 (“Term”), unless otherwise terminated as herein provided.
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EXHIBIT “C-3”
COMPENSATION
Provided Contractor is not in default under this Agreement, Contractor shall be compensated as provided below.
A. AMOUNT. Effective November 7, 2023, Contractor shall be paid in accordance with the attached schedule subject to the following limitations.
1. Annual Cap. The rates may be increased every July 1st, provided that the rates are subject to an annual maximum increment cap of 5%.
2. Markup Cap. Third party equipment rental and material costs shall be capped at a maximum 15% markup above the cost. All other direct costs, including but not limited to, permit acquisition shall be capped at a maximum 10% markup above the cost.
Notwithstanding the foregoing, the total amount paid to Contractor, including all expenses for materials, labor, shipping, tax, and travel, shall not exceed the amounts for each task as set forth in the following table.
Agreement/Amendment
Task
Not to Exceed
Amount
Original Agreement Task 1 $324,000
Original Agreement Task 2: FY 2017/2018 $185,000
Original Agreement Task 2: FY 2018/2019 $200,000
Original Agreement Task 2: FY 2019/2020 $200,000
Original Agreement Task 2: FY 2020/2021 $200,000
Original Agreement Task 2: FY 2021/2022 $200,000
First Amendment Task 2: FY 2022/2023 $200,000
First Amendment Task 2: FY 2023/2024 $200,000
Third Amendment Task 2: FY 2023/2024 $133,680
First Amendment Task 2: FY 2024/2025 $200,000
First Amendment Task 2: FY 2025/2026 $200,000
Sub - Total $1,909,000
Second Amendment Task 3 $1,162,730
Third Amendment Task 4 $316,320
Total $3,721,730
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3. METHOD OF PAYMENT. Contractor shall submit two hard copies of the invoice.
Invoices must provide staff title, applicable hourly rate, hours worked, dates of service, description of equipment and applicable rate, and services performed during the prior month. Invoices must be itemized, adequately detailed, based on accurate records, and in a form reasonably satisfactory to City. Contractor may be required to provide back-up material upon request.
4. SCHEDULE FOR PAYMENT. City agrees to pay Contractor within thirty (30) days of receipt of the monthly invoice, provided however, the task or portion thereof is completed to City’s reasonable satisfaction.
5. NOTICES. Written notices to City and Contractor shall be given by registered or certified mail, postage prepaid and addressed to or personally served on the following parties.
Contractor: Jilk Heavy Construction, Inc.
500 S. Kraemer Blvd., Suite 380
Brea, CA 92821
Attention: Jim Jilk
City: City of Redondo Beach
Public Works Department, Engineering Division
415 Diamond St.
Redondo Beach, CA 90277
Attention: Andrew Winje
All notices, including notices of address changes, provided under this Agreement are deemed received on the third day after mailing if sent by registered or certified mail.
Changes in the respective address set forth above may be made from time to time by any party upon written notice to the other party.
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EXHIBIT “D-1”
INSURANCE REQUIREMENTS FOR CONTRACTORS
Without limiting Contractor’s indemnification obligations under this Agreement, Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives, or employees.
Minimum Scope of Insurance
Coverage shall be at least as broad as:
Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).
Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto).
Workers’ Compensation insurance as required by the State of California.
Employer’s Liability Insurance.
Minimum Limits of Insurance
Contractor shall maintain limits no less than:
General Liability: $2,000,000 per occurrence for bodily injury, personal injury and property damage. The general aggregate limit shall apply separately to this project.
Automobile Liability: $1,000,000 per accident for bodily injury and property damage.
Employer’s Liability: $1,000,000 per accident for bodily injury or disease.
Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or selfinsured retentions as respects the City, its officers, officials, employees and volunteers or (2) the Contractor shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration and defense expenses.
Other Insurance Provisions
The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:
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Additional Insured Endorsement:
General Liability: The City, its officers, elected and appointed officials, employees, and volunteers shall be covered as insureds with respect to liability arising out of work performed by or on behalf of the Contractor. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance, or as a separate owner’s policy.
Automobile Liability: The City, its officers, elected and appointed officials, employees, and volunteers shall be covered as insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Contractor.
For any claims related to this project, the Contractor’s insurance coverage shall be primary insurance as respects the City, its officers, elected and appointed officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it.
Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City.
Each insurance policy shall be endorsed to state that the inclusion of more than one insured shall not operate to impair the rights of one insured against another insured, and the coverages afforded shall apply as though separate policies had been issued to each insured.
Each insurance policy shall be in effect prior to awarding the contract and each insurance policy or a successor policy shall be in effect for the duration of the project. The maintenance of proper insurance coverage is a material element of the contract and failure to maintain or renew coverage or to provide evidence of renewal may be treated by the City as a material breach of contract on the Contractor’s part.
Acceptability of Insurers
Insurance shall be placed with insurers with a current A.M. Best’s rating of no less than A:VII and which are authorized to transact insurance business in the State of California by the Department of Insurance.
Verification of Coverage
Contractor shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on the City authorized forms provided with the contract specifications. Standard ISO forms which shall be subject to City approval and amended to conform to the City’s requirements may be acceptable in lieu of City authorized forms. All certificates and endorsements shall be received and approved by the City before the contract is awarded. The City reserves the right - 11 -
to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time.
Subcontractors
Contractor shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.
Risk Management
Contractor acknowledges that insurance underwriting standards and practices are subject to change, and the City reserves the right to make changes to these provisions in the reasonable discretion of its Risk Manager.