1 THIRD AMENDMENT TO THE AGREEMENT FOR PROJECT SERVICES
BETWEEN THE CITY OF REDONDO BEACH
AND SECTRAN SECURITY, INCORPORATED
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 Sectran Security, Incorporated, a California corporation (“Contractor” or “Consultant”).
WHEREAS, on July 5, 2022, the parties entered into the Agreement for Project Services between the City and Contractor (the "Agreement"); and
WHEREAS, on March 21, 2023, the parties entered into the First Amendment to the Agreement (the "First Amendment"); and
WHEREAS, on February 20, 2024, the parties entered into a Second Amendment to the Agreement (the “Second Amendment”); and
WHEREAS, the parties desire to amend the Agreement to effectuate a fee increase and update the notice provisions.
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 amendment to the Agreement:
1. COMPENSATION. Exhibit “C” of the Agreement, as amended by Exhibits “C-1” and “C-2”, is hereby further amended to add Exhibit “C-3”, which stipulates a five (5%) percent increase in the fee for cash processing and transportation effective May 1, 2025, and updates the notice provisions. Exhibit “C-3” is attached hereto and incorporated by this reference. Contractor shall continue to be compensated for the services described in Exhibit “A” of the Agreement.
2. INSURANCE REQUIREMENTS FOR CONTRACTORS. Exhibit “D” of the Agreement is hereby amended to add Exhibit “D-1”, which sets forth revised minimum insurance requirements for the Contractor, including increased general liability limits.
Exhibit “D-1” is attached hereto and incorporated by this reference. Contractor shall comply with the insurance requirements described in Exhibit “D-1”.
3. 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.
2 IN WITNESS WHEREOF, the parties have executed this Third Amendment in Redondo Beach, California, as of this 15th day of July, 2025.
CITY OF REDONDO BEACH, SECTRAN SECURITY, INCORPORATED,
a chartered municipal corporation a California corporation __________________________ By: _______________________
James A. Light, Mayor Name:_______________________
Title: _______________________
ATTEST: APPROVED:
__________________________ __________________________
Eleanor Manzano, City Clerk Diane Strickfaden, Risk Manager APPROVED AS TO FORM:
__________________________
Joy A. Ford, City Attorney
Director of Operations
Rony Ghaby
3 EXHIBIT “C-3"
COMPENSATION
Provided Contractor is not in default under this Agreement, Contractor shall be compensated as provided below.
1. AMOUNT. Contractor shall be paid as follows. The fees listed below reflect a five percent increase over the fees in Exhibit “C-2”.
a. Scheduled Pick and Delivery Days. Effective May 1, 2025, Contractor shall be paid in accordance with the table set forth below.
SECTRAN
BRANCH UNIT # / LOCATION FEE for SERVICE
Pico
City of Redondo Beach
1922 Artesia Blvd.
Redondo Beach, CA. 90277
$188.66 per month
Plus, Gas surcharge
City of Redondo Beach
715 Julia Street
Redondo Beach, CA. 90277
$198.79 per month
Plus, Gas surcharge
City of Redondo Beach
200 Portofino Way
Redondo Beach, CA 90277
$31.76 per day
Plus, Gas surcharge
b. Non Scheduled Pick and Delivery Days. Contractor shall be paid $40.43 a day for any nonscheduled pickup and delivery day.
c. Gas Surcharge. Contractor may adjust the monthly fuel fee based on average California diesel prices as measured and published by the Department of Energy (WWW.EIA.DOE.GOV). Contractor’s established baseline is $1.31. Any cost above the $1.31 baseline cost will be adjusted on a monthly basis by 0.5% on price movements of 10 cents per gallon (i.e., if diesel prices rise to $1.41, the corresponding fuel fee is increased by 0.5%). Each party will be able to monitor and keep track of the adjustments easily. The fuel fee rate change reflected on the invoice will be based on national average diesel prices published on the Department of Energy Website. The calculation is the average of the California prices for the first four Mondays of the month rounded to the next cent. The table is for reference only and as such, does not reflect the maximum rate which might be assessed.
4 Minimum Maximum Per Gallon Fee (%)
$4.91 $5.00 $0.10 18.00%
$4.81 $4.90 $0.10 17.50%
$4.71 $4.80 $0.10 17.00%
$4.61 $4.70 $0.10 16.50%
$4.51 $4.60 $0.10 16.00%
$4.41 $4.50 $0.10 15.50%
$4.31 $4.40 $0.10 15.00%
$4.21 $4.30 $0.10 14.50%
$4.11 $4.20 $0.10 14.00%
$4.01 $4.10 $0.10 13.50%
$3.91 $4.00 $0.10 13.00%
$3.81 $3.90 $0.10 12.50%
$3.71 $3.80 $0.10 12.00%
$3.61 $3.70 $0.10 11.50%
$3.51 $3.60 $0.10 11.00%
$3.41 $3.50 $0.10 10.50%
$3.31 $3.40 $0.10 10.00%
$3.21 $3.30 $0.10 9.50%
$3.11 $3.20 $0.10 9.00%
$3.01 $3.10 $0.10 8.50%
$2.91 $3.00 $0.10 8.00%
$2.81 $2.90 $0.10 7.50%
$2.71 $2.80 $0.10 7.00%
$2.61 $2.70 $0.10 6.50%
$2.51 $2.60 $0.10 6.00%
$2.41 $2.50 $0.10 5.50%
$2.31 $2.40 $0.10 5.00%
$2.21 $2.30 $0.10 4.50%
$2.11 $2.20 $0.10 4.00%
5 Minimum Maximum Per Gallon Fee (%)
$2.01 $2.10 $0.10 3.50%
$1.91 $2.00 $0.10 3.00%
$1.81 $1.90 $0.10 2.50%
$1.71 $1.80 $0.10 2.00%
$1.61 $1.70 $0.10 1.50%
$1.51 $1.60 $0.10 1.00%
$1.41 $1.50 $0.10 0.50%
$1.31 $1.40 $0.10 0.00%
2. METHOD OF PAYMENT. Contractor shall provide monthly invoices indicating the services and tasks performed during the prior month to City for approval and payment. Invoices must provide, location of the branch, date of services, fee for service, amount of gas surcharge (receipt must be attached). 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.
3. SCHEDULE FOR PAYMENT. City agrees to pay Contractor within thirty days of its receipt of the monthly invoice.
4. NOTICE. Written notices to City and Contractor shall be given by registered or certified mail, postage prepaid, or personally served, and addressed to or personally served on the following parties.
Contractor: Sectran Security, Incorporated
7633 Industry Avenue
Pico Rivera, CA 90660
Attention: Darius Barfatani
City: City of Redondo Beach
Community Services Department
1922 Artesia Blvd.
Redondo Beach, CA 90278
Attention: Kelly Orta
All notices, including notices of address changes, provided under this Agreement are deemed received as follows: (1) on the third day after mailing if sent by registered or certified mail; or (2) upon personal delivery. Changes in the respective address set 6 forth above may be made from time to time by any party upon written notice to the other party in accordance with this section.
7 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 $4 million general aggregate limit shall apply separately to this project. An umbrella policy may be used to provide additional liability coverage, so long as the combined General Liability coverage (General Liability and umbrella) is at least $2,000,000.
General Aggregate: $4,000,000 per occurrence for bodily injury, personal injury, and property damage. The General Aggregate limit shall apply separately.
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 self-insured 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.
8 Other Insurance Provisions
The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:
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.
9 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 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.
ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED?
INSR ADDL SUBR
LTR INSD WVD
PRODUCER CONTACT NAME: PHONE FAX
(A/C, No, Ext): (A/C, No): E-MAIL ADDRESS:
INSURER A :
INSURED INSURER B :
INSURER C :
INSURER D :
INSURER E :
INSURER F : POLICY NUMBER POLICY EFF POLICY EXP TYPE OF INSURANCE LIMITS (MM/DD/YYYY) (MM/DD/YYYY) AUTOMOBILE LIABILITY UMBRELLA LIAB
EXCESS LIAB WORKERS COMPENSATION
AND EMPLOYERS' LIABILITY DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) AUTHORIZED REPRESENTATIVE EACH OCCURRENCE $
DAMAGE TO RENTED CLAIMS-MADE OCCUR PREMISES (Ea occurrence) $ MED EXP (Any one person) $
PERSONAL & ADV INJURY $
GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $
PRO- POLICY LOC JECT PRODUCTS - COMP/OP AGG
OTHER: $
COMBINED SINGLE LIMIT
(Ea accident) $
ANY AUTO BODILY INJURY (Per person) $
OWNED SCHEDULED
AUTOS ONLY AUTOS BODILY INJURY (Per accident) $
HIRED NON-OWNED PROPERTY DAMAGE
AUTOS ONLY AUTOS ONLY (Per accident) $
$
OCCUR EACH OCCURRENCE CLAIMS-MADE AGGREGATE $
DED RETENTION $
PER OTH- STATUTE ER
E.L. EACH ACCIDENT E.L. DISEASE - EA EMPLOYEE $
If yes, describe under
DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT INSURER(S) AFFORDING COVERAGE NAIC # COMMERCIAL GENERAL LIABILITY Y / N
N / A
(Mandatory in NH)
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:
CERTIFICATE HOLDER CANCELLATION
ACORD 25 (2016/03) © 1988-2015 ACORD CORPORATION. All rights reserved.
CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY)
$
$
$
$
$
The ACORD name and logo are registered marks of ACORD
Associated Insurance Services
SECTR-1 OP ID: JS
11/20/2024
Associated Insurance Services
Associated Insurance Services
106 West Main Street
P.O. Box 630
Plainville, CT 06062-0630
Associated Insurance Services
860-793-9601 860-747-3580
Philadelphia Insurance Company
The Hartford
Sectran Security, Inc. 7633 Industry Avenue Pico Rivera, CA 90660 AXIS Insurance Company
SiriusPoint Specialty Insuranc
Lloyds
A X 1,000,000
X X PHPK2624827 11/22/2024 11/22/2025 100,000
5,000
1,000,000
2,000,000
2,000,000
1,000,000
B 2,000,000
X X 02ABOI4326 11/22/2024 11/22/2025
C X X 2,000,000
X P-001-000991666-03 11/22/2024 11/22/2025 2,000,000
B
02WEOI4328 11/22/2024 11/22/2025 1,000,000
1,000,000
1,000,000
D TXS-000245-34 11/22/2024 11/22/2025 $2MExcess 3,000,000 E Cash in Transit B1161 K24U1711 08/27/2024 08/27/2025 CIT Limit 1,000,000 (See Attached)
City of Redondo Beach
City Hall
415 Diamond Street
Redondo Beach, CA 90277
860-793-9601
18058
29424
37273
38776
Emp Ben.
Excess Umbrella
Date HOLDER CODE
INSURED'S NAME
PAGE NOTEPAD:
The City, Its officers, elected and appointed officials, employees, and volunteers shall be covered as additional insureds with respect to general liability, auto liability and excess liability coverage for work performed by or on behalf of the contractor. Coverage is on a primary and non contributory basis. 30 Day notice of cancellation required for any policy. 2 Sectran Security, Inc. 11/20/2024
SECTR-1
OP ID: JS