AGENDA REPORT
Meeting Date: November 21, 2023
Item Number:
To: Honorable Mayor & City Council
From: Mark Stainbrook, Chief of Police
Stephanie Harris, Director of Community Services
RECOMMENDATION
Staff recommends that City Council approve the second amendment to the agreement with Nastec International, Inc. for security specialists to support unhoused individuals in Beverly Hills, issuance of a change purchase order in the amount of $515,000 for a total not-to-exceed amount of $1,298,836 for fiscal year 2023-24, and an appropriation of $515,000 from the General Fund.
INTRODUCTION
At the November 15, 2022 City Council meeting, the Council approved a variety of items to enhance the City’s services to further assist the unhoused in Beverly Hills. One of the items approved is the agreement with consultant Abby Arnold to develop successful strategies and action items to identify gaps in services related to engagement, placement, and support of those in need within the community, through the preparation of a homelessness plan.
The consultant has continued to conduct stakeholder meetings and interviews, attending Commission and Council Liaison meetings, and meeting with other organizations in the community. At this time, the draft plan is being finalized and will be presented to the Attachments: 1. Amendment No. 2
Subject: APPROVAL OF AMENDMENT NO. 2 TO THE AGREEMENT WITH NASTEC INTERNATIONAL, INC. FOR SECURITY SPECIALISTS TO
SUPPORT UNHOUSED INDIVIDUALS; AND
CHANGE PURCHASE ORDER FOR NASTEC INTERNATIONAL, INC.
IN THE AMOUNT OF $515,000 FOR A TOTAL NOT TO EXCEED
AMOUNT OF $1,298,836 FOR FISCAL YEAR 2023-2024; AND
APPROPRIATION OF $515,000 FROM THE GENERAL FUND FOR
SERVICES PROVIDED TO THE UNHOUSED IN BEVERLY HILLS
Meeting Date: November 21, 2023
Council Liaisons, with the goal of returning to the City Council with the draft plan for review prior to the end of the year.
DISCUSSION
On November 15, 2022, the City Council authorized the City Manager to execute an agreement with Nastec to assist with unhoused outreach totaling $420,836. The coverage consists of two unarmed security individuals who receive and respond to nonemergency calls to the 2468 Hotline throughout the City limits nightly from 5pm to 8am.
Additionally, they provide 24-hour coverage on the weekends. On June 6, 2023, the City Council approved an agreement amendment increasing the term and consideration by $363,000, for a total-not to exceed $783,836 through December 31, 2023 which was intended to provide funding through the end of the summer while the unhoused plan was being drafted.
In an effort to provide continuous and robust outreach coverage while the plan is being reviewed, Nastec is being requested to continue to provide an overnight and weekend response team to provide 24-hour coverage of the 2468 Hotline. It has been determined that additional funding of $100,000 is needed to cover the remainder of the calendar year through December, 31, 2023. It is further recommended that the agreement be extended to June 30, 2024, and include an additional $415,000 for the remainder of the fiscal year for a total not-to-exceed $1,298,836. When the comprehensive unhoused plan is brought forward, any additional long-term funding requests will be brought forward at that time, including any additional funding needed for unhoused nonemergency call response.
FISCAL IMPACT
The original agreement is recommended for amendment as follows in the updated total not-to-exceed amount of $1,298,836 along with an associated change purchase order of $515,000.
Agreement Start Date End Date Contract/PO
Amount
Funding
Provided
Funding
Needed Source
Original Agreement 11/15/2022 6/30/2023 $ 420,836 $ 420,836 Fund 001 General Fund Amendment 1 7/1/2023 12/31/2023 $ 363,000 $ 363,000 Fund 001 General Fund Amendment 2 7/1/2023 6/30/2024 $ 515,000
Total $ 1,298,836 $ 783,836 $ 515,000 Fund 001 General Fund Staff is requesting an additional appropriation of $515,000 from the General Fund for the remainder of the calendar year. Additional funding requests through the end of fiscal year 2023-24 will be brought forward as part of the overall unhoused project plan before the end of the calendar year.
For City Council’s information, the tables below summarize additional FY 2023-24 General Fund appropriations activity after budget adoption. With approval of the two items that include appropriations on this evening’s agenda (Gale property purchase and additional unhoused support), additional appropriations will total $15.9 million. Factoring in the estimated $10.1 million increase to unassigned fund balance (based on FY2022- 23 results and the projected FY2023-24 surplus), an additional $5.8 million of existing unassigned reserves will be required to support these appropriations. Note, this does not include additional increases for labor increases, which will be brought to the City Council in December 2023.
Meeting Date: November 21, 2023
Fiscal Year 2022-23 Unaudited Increase in Unassigned Fund Balance $ 4,526,780 Fiscal Year 2023-24 Projected Surplus (from Adopted Budget) 5,537,530 Total Combined Two-Year Estimated Increase in Unassigned Fund Balance $ 10,064,310 Less Approved and Proposed Mid-Year Appropriations as of 11/7/2023 (15,888,345) Net Impact on General Fund Unassigned Reserves $ (5,824,035) Date Agenda Item Mid-Year
Appropriations
8/15/2023
Agreement with Step Up on Second to Provide 30 Units of Scattered-Site Permanent Supportive Housing for the Unhoused and 40 Motel Stays $ 1,798,065
9/19/2023 Approval of Salary Schedule and Associated Appropriation 26,700 10/3/2023 JPA Agreement + CCTV Purchases/Installation 4,012,215 11/7/2023 Tourism and Marketing True-Up (from FY 2022-23) 1,117,365 $ 6,954,345
11/21/2023 Nastec International, Inc. Unhoused Support 515,000 11/21/2023 Property Purchase (111 North Gale Drive) 8,419,000 $ 8,934,000
As of 11/7/2023 Total Mid-Year Appropriations (pending Council approval) $ 15,888,345 Forthcoming MOU Increases - Miscellaneous Groups Unknown General Fund Summary
Fiscal Year 2023-24 Mid-Year Appropriations Approved by Council To-Date General Fund Appropriations Pending Direction from Council Jeff Muir
____ Director of Finance_______
Stephanie Harris
Director of Community Services
Approved By Approved By
Meeting Date: November 21, 2023
ATTACHMENT 1
B0785-0001\2868610v2.doc
AMENDMENT NO. 2 TO THE AGREEMENT BETWEEN THE
CITY OF BEVERLY HILLS AND NASTEC INTERNATIONAL, INC.
FOR SECURITY SPECIALISTS TO SUPPORT UNHOUSED
INDIVIDUALS
NAME OF CONTRACTOR: Nastec International, Inc.
RESPONSIBLE PRINCIPAL Rick Curiel, Director of Operations OF CONTRACTOR:
CONTRACTOR'S ADDRESS: 23875 Ventura Boulevard, Suite 204 Calabasas, CA 91302
Attention: Rick Curiel, Director of Operations
CONTRACTOR’S E.I.N./TAX I.D. NO.: 95-4485724
CITY'S ADDRESS: City of Beverly Hills
455 N. Rexford Drive
Beverly Hills, CA 90210
Attention: Stephanie Harris, Director of Community
Services
COMMENCEMENT DATE: November 15, 2022
TERMINATION DATE: June 30, 2023 (original termination date) December 31, 2023 (amended pursuant to
Amendment No. 1)
June 30, 2024 (as amended by this Amendment
No. 2)
CONSIDERATION: Original Agreement: Not to exceed $420,836.00 based on the rates set forth in Exhibit B
Amendment No. 1: Additional $363,000.00
Amendment No. 2: Additional $515,000.00
Total not to exceed $1,298,836.00 based on the
rates set forth in Exhibit B
DocuSign Envelope ID: 5EFDFFD5-FF1F-4E72-A932-40FCF3C07CFB 2 B0785-0001\2868610v2.doc
AMENDMENT NO. 2 TO THE AGREEMENT BETWEEN THE
CITY OF BEVERLY HILLS AND NASTEC INTERNATIONAL, INC.
FOR SECURITY SPECIALISTS TO SUPPORT UNHOUSED
INDIVIDUALS
This Amendment No. 2 is to that certain Agreement between the City of Beverly Hills (hereinafter called "CITY"), and Nastec International, Inc. (hereinafter called "CONTRACTOR") dated December 19, 2022, and identified as Contract No. .771-22, as amended by Amendment No. 1, dated July 6, 2023, and identified as Contract No. 357-23 herein after identified as (“Agreement”).
RECITALS
A. CITY and CONTRACTOR entered into a written agreement for security specialists to support unhoused individuals, which was previously amended..
B. CITY and CONTRACTOR desire to further amend the Agreement to increase the Consideration amount.
NOW, THEREFORE, the parties agree as follows:
Section 1. The Termination Date shall be amended as set forth on the cover page.
Section 2. The Consideration shall be amended as set forth on the cover page.
Section 3. Exhibit B, “SCHEDULE OF PAYEMENT AND RATES,” shall be amended and restated as attached hereto and incorporated herein.
DocuSign Envelope ID: 5EFDFFD5-FF1F-4E72-A932-40FCF3C07CFB 3 B0785-0001\2868610v2.doc
Section 4. Except as amended by this Amendment and previous amendments, if any, the remaining provisions of this Agreement shall remain in full force and effect.
EXECUTED the _____ day of __________________, 20___, at Beverly Hills, California.
CITY OF BEVERLY HILLS
A Municipal Corporation
____________________________
JULIAN A. GOLD, M.D.
Mayor of the City of Beverly Hills, California
ATTEST:
______________________(SEAL)
HUMA AHMED
City Clerk
CONTRACTOR: NASTEC, INC.
___________________________________
RICK CURIEL
Director of Operations
___________________________________
SHIRAYA HONIG
Chief Financial Officer
APPROVED AS TO FORM:
___________________________________
LAURENCE S. WIENER
City Attorney
[Signatures continue on following page.]
DocuSign Envelope ID: 5EFDFFD5-FF1F-4E72-A932-40FCF3C07CFB 4 B0785-0001\2868610v2.doc
APPROVED AS TO CONTENT:
___________________________________
NANCY HUNT-COFFEY
City Manager
___________________________________
STEPHANIE HARRIS
Director of Community Services
___________________________________
SHARON L’HEUREUX DRESSEL
Risk Manager
DocuSign Envelope ID: 5EFDFFD5-FF1F-4E72-A932-40FCF3C07CFB 5 B0785-0001\2868610v2.doc
EXHIBIT B
SCHEDULE OF PAYMENT AND RATES
CITY shall compensate CONTRACTOR for the satisfactory performance of the services described in Exhibit A in an amount not to exceed One Million Two Hundred Ninety-Eight Thousand Eight Hundred Thirty-Six Dollars ($1,298,836.00) at the rates set forth below, which includes all labor, taxes, equipment, training, benefits, insurance, and applicable certifications, as well as the cost of the marked patrol vehicles, including the cost of fuel.
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 30 days of receipt of each invoice, CITY shall pay all undisputed amounts included on the invoice. CITY shall pay CONTRACTOR said Consideration in accordance with the schedule of payment set forth in this Exhibit.
DocuSign Envelope ID: 5EFDFFD5-FF1F-4E72-A932-40FCF3C07CFB Certificate Of Completion
Envelope Id: 5EFDFFD5FF1F4E72A93240FCF3C07CFB Status: Sent Subject: Complete with DocuSign: Nastec International Inc. CAO.23OCT23.V11005.AM2.pdf Source Envelope:
Document Pages: 5 Signatures: 5 Envelope Originator:
Certificate Pages: 3 Initials: 0 Joana Torres
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455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 198.245.189.167
Record Tracking
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10/23/2023 2:14:15 PM
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Rick Curiel
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Director of Operations
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Sharon L'Heureux Dressel
[email protected]
Risk Manager
Sharon Dressel
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Stephanie Harris
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Cindy Owens
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Policy & Management Analyst
City of Beverly Hills
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Nancy Hunt-Coffey
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Dr. Julian Gold
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