REPORT OF GENERAL MANAGER - LA PARKS

APPROVE D? J-\. JUL 1 121?

BOARD REPORT DATE July 11, 2018

BOARD OF RECREATION AND PARK COMMISSIONERS

NO. 18-133 C.D. 14

BOARD OF RECREATION AND PARK COMMISSIONERS

SUBJECT:

PERSHING SQUARE PARK - FIRST AMENDMENT TO PROFESSIONAL

SERVICES CONTRACT NO. 3535 WITH MOBILE ILLUMINATION, INC., TO

EXTEND THE TERM AND INCREASE THE CONTRACT AMOUNT FOR DESIGN, RENTAL, INSTALLATION, MAINTENANCE AND REMOVAL OF WINTER THEME LIGHTING AND D~COR

AP Diaz R. Barajas H. Fujita

V. Israel S. Pilla-Cortez ? N. Williams

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Approved__..)(_.___

General Manager

Disapproved_ _ __

Withdrawn- - -

RECOMMENDATIONS

1.

Approve the proposed First Amendment to Contract No. 3535 (Amendment),

substantially in the form as Attachment 1 to this Report, between the City of Los Angeles

Department of Recreation and Parks (RAP) and Mobile Illumination, Inc., increasing the

contract amount by Seventy-Five Thousand Dollars ($75,000.00), but not to exceed a

cumulative contract total of Three Hundred Thousand Dollars ($300,000.00) and

extending the term of the contract from three (3) years to four (4) years through

September 30, 2019, while RAP conducts the Request For Proposals (RFP) process,

subject to the approval of the Mayor and of the City Attorney as to form;

2.

Find, in accordance with Charter Section 1022, that the City does not have personnel

available in its employ with sufficient expertise to provide these professional services

and that it is more economical and feasible to secure the services of an independent

contractor;

3.

Find, in accordance with Administrative Code Section 10.5(b)(2), that this contract

amendment does not require approval by the City Council, as annual payments to or by

the City do not exceed the current annual Consumer Price Index (CPI) adjusted Contract

Exemption Limit of One Hundred Forty Three Thousand, Eight Hundred Ninety Dollars

($143,890.00);

4.

Direct the Board of Recreation and Park Commissioners (Board) Secretary to transmit

forthwith the proposed First Amendment to Contract No. 3535 to the Mayor in

accordance with Executive Directive No. 3 and, concurrently, to the City Attorney for

review and approval as to form;

BOARD REPORT

PG. 2 NO. 18-133

5. Authorize the Board President and Secretary to execute forthwith the Amendment, upon receipt of the necessary approvals; and,

6. Authorize RAP's General Manager, or designees, to make any necessary technical corrections to carry out the intent of this Report.

SUMMARY:

Pershing Square Park is an outdoor concert and event center located in the heart of downtown Los Angeles. RAP hosts free programs for the residents and visitors throughout the year. From mid-November to mid-January, Pershing Square Park is transformed into a winter wonderland and festive environment with decorations and outdoor winter theme lighting.

On November 4, 2015, Contract No. 3535 with Mobile Illumination, Inc. was executed, for winter theme lighting at Pershing Square for a term of three years, as a result of a RFP process (Report No. 15-192). Contract No. 3535 expires on September 30, 2018. It is necessary to amend this contract to extend it for another year, through September 30, 2019, while the RFP process, which may take twelve (12) months, is conducted to select a contractor for a new multiyear contract to ensure that this service may continue.

RAP, in entering into the First Amendment to Contract No. 3535, guarantees no minimum amount of business or compensation. The contract compensation shall be subject to funding availability, and the contract term shall be subject to early termination by RAP, as provided in the Standard Provisions for City Contracts.

Funding for this contract will be provided from Fund No. 58WQ, Department 89, Account 810M, Pershing Square Parking Operations.

FISCAL IMPACT STATEMENT:

The approval and execution of the Amendment will have no impact on RAP's General Fund.

Report prepared by Nancy Jeffers, Management Analyst II, Finance Division, Grants Administration, Contracts.

LIST OF ATTACHMENTS

A) Proposed First Amendment to Contract No. 3535

Attachment

FIRST AMENDMENT TO PROFESSIONAL SERVICES CONTRACT NO. 3535 BETWEEN

THE CITY OF LOS ANGELES DEPARTMENT OF RECREATION AND PARKS

And MOBILE ILLUMINATION, INC.

For The RENTAL, DESIGN, INSTALLATION, MAINTENANCE, REPAIR AND REMOVAL OF

WINTER THEMED EXTERIOR LIGHTING AND D?COR AT PERSHING SQUARE PARK

This FIRST AMENDMENT to Contract No. 3535 ("First Amendment") is made and entered into this ______ day of ________________, 201_, by and between the CITY OF LOS ANGELES, a municipal corporation (hereinafter referred to as CITY), acting by and through its Board of Recreation and Park Commissioners (hereinafter referred to as BOARD), and Mobile Illumination, Inc., a California corporation (hereinafter referred to as CONTRACTOR).

RECITALS

WHEREAS, per contract award by BOARD on August 12, 2015 (Board Report 15-192), on November 4, 2015, BOARD executed Contract No. 3535 with CONTRACTOR for a term of one (1) year commencing October 1, 2015, and with two (2) one year options to extend the term, for rental, design, installation, maintenance, repair and removal of winter themed exterior lighting and d?cor at Pershing Square Park (the "Agreement"); and

WHEREAS, DEPARTMENT (as defined in the Agreement) has exercised each of the two (2) one year options to extend the term and continues to require the services of CONTRACTOR, and in accordance with Charter Section 1022, the Board found it is more economical and feasible to secure the services of an independent contractor (Board Report 14-217); and

WHEREAS, in accordance with Administrative Code Section 10.5 (b) 2, this First Amendment to the three year Agreement does not require approval by the City Council, as the annual payment by the CITY under this First Amendment will not exceed the current annual Consumer Price Index (CPI) adjusted Contract Exemption Limit of One Hundred Forty Three Thousand Eight Hundred Ninety Dollars ($143,890); and

WHEREAS, it is necessary to extend the term of the Agreement for an additional twelve (12) months by this First Amendment in order to continue the provision of services by the CONTRACTOR under the Agreement until a Request for Proposal (RFP) process can be completed; and

WHEREAS, CONTRACTOR is willing and able to provide the services requested by the DEPARTMENT;

NOW, THEREFORE, the DEPARTMENT and CONTRACTOR agree that the Agreement be amended to extend the term, increase the compensation, and make other necessary changes as follows:

1. FULL FORCE AND EFFECT: Except as specifically amended or modified by this First Amendment, the terms and conditions contained in the Agreement shall remain in full force and effect.

2. SECTION 3. TERM OF AGREEMENT is amended as follows:

Delete the first, second and third paragraphs in their entirety and replace with:

"The term of this AGREEMENT shall be from October 1, 2015 to September 30, 2019, subject to termination provisions herein. Performance may not begin until the CONTRACTOR has obtained, from the CITY, approval of insurance required herein."

3. SECTION 4. REPRESENTATIVES AND FORMAL NOTICES is amended as follows:

Delete this section in its entirety and replace with:

"A. The representatives of the respective parties authorized to administer this AGREEMENT, and to whom formal notices, demands, and communications shall be given are as follows:

The representative of the CITY shall be:

Department of Recreation and Parks Belinda Jackson, Executive Director 3990 S. Menlo Ave. Los Angeles, CA 90037

The representative of the CONTRACTOR shall be:

Jason Zdenek Mobile Illumination, Inc. 9255 Corbin Ave. Northridge, CA 91311

B. Formal notices, demands, and communications required hereunder by either party shall be made in writing and may be effected by personal delivery or by registered or certified mail, postage prepaid, return receipt requested and shall be deemed communicated as of the date of mailing.

C. If the name of the person designated to receive the notices, demands, or communications, or the address of such person is changed, written notice shall

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be given, in accordance with this Section, within five (5) working days of said change."

4. SECTION 6. PAYMENT, AND INVOICING is amended as follows:

Delete Paragraph A. Payment, and Paragraph B.1. under Invoicing, in their entireties and replace with:

"A. PAYMENT

DEPARTMENT will pay CONTRACTOR an amount not to exceed seventy-five thousand dollars ($75,000.00) per year (including the fourth (4th) year, which is added by the First Amendment to this Agreement) in accordance with the Proposed Compensation noted in the Proposal submitted by CONTACTOR, attached hereto as Exhibit C and made a part hereof. Payment shall be inclusive of all materials, equipment, personnel employed to design, install, maintain, repair, take down and remove rented d?cor and lighting. Payment for October 1, 2015 through September 30, 2019 shall not exceed seventy-five thousand ($75,000.00) for each of the four (4) years. Total compensation for this Agreement shall not exceed three hundred thousand dollars ($300,000.00) for the entirety of the term.

B. INVOICING

1. Invoices shall be submitted to:

Department of Recreation and Parks Attention: Belinda Jackson, Executive Director 3990 S. Menlo Ave. Los Angeles, CA 90037"

5. SECTION 9. INCORPORATION OF DOCUMENTS is amended as follows:

Delete Exhibit A in Section 9. in its entirety and replace with:

"Exhibit A Standard Provisions for City Contracts (Rev. 10/17) [v.3]"

6. EXHIBIT A of the AGREEMENT is amended as follows:

Delete Exhibit A in its entirety and replace with a new Exhibit A Standard Provisions for City Contracts (Rev. 10/17) [v.3] in the form attached here to as Attachment 1.

ATTACHMENT(S)

Attachment 1 ? Standard Provisions for City Contracts (Rev. 10/17)[v.3]

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