Agenda packet — Hawthorne City Council, June 27, 2023 (part 2 of 2)

AGENDA ITEM NO. 22

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of June 27, 2023
Originating Department: Human Resources
City Manager: __________
Vontray Norris
Dir. of Human Resources: ___________
Erika Lampkin
SUBJECT:

Amendment to the Agreement/Contract Hawthorne Police Management Supervisors Group (HPMSG) RECOMMENDED MOTION:

Staff recommends that the City Council approve an amendment to the Hawthorne Police Management Supervisors Group Memorandum of Understanding effective July 1, 2021 – June 30, 2024.

DISCUSSION:

As a part of this unit’s bargained benefits, members are entitled to an Employee Assistance Program serviced by Managed Health Network (MHN). The parent company for MHN, Centene Corporation, has decided to leave the Employee Assistance Program business. The agreement will end June 30, 2023. The Human Resources Department conducted a search for comparable Employee Assistance Programs in an effort to find a replacement with comparable benefits and services and has subsequently partnered with Reliance Standard, ACI’s Specialty Benefits at no additional cost to the City or the employees.

ECONOMIC DEVELOPMENT STRATEGIC PLAN:
.

FISCAL IMPACT:

None.

NOTICING PROCEDURES:
72 hours posted notice pursuant to the Ralph M. Brown Act ATTACHMENT(S):

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1. Side Letter Agreement - HPMSG

2. MHN Cancellation Notice

3. Reliance Standard - ACI - EAP - Flyer

SIDE LETTER AGREEMENT
TO THE 2021 – 2024 MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY OF HAWTHORNE

AND THE HAWTHORNE POLICE MANAGEMENT SUPERVISORY GROUP
WHEREAS, the City of Hawthorne (“City”) and the Hawthorne Police Management Supervisory Group (“HPMSG”) have entered into a Memorandum of Understanding (“MOU”) covering the periods of July 1, 2021 – June 2024.

WHEREAS, the City of Hawthorne (“City”) and the Hawthorne Police Management Supervisory Group (“HPMSG”) have met and conferred in good faith.

NOW, THEREFORE, THE PARTIES do hereby agree as follows:

1. On June 7, 2023, the parties agreed to amend the language in Article 18.4 Entitled Managed Health Network to no longer include Managed Health Network (MHN) as the carrier of the Employee Assistance Program.

2. Parties agree in Article 18.4 that the City shall make the outpatient element of the MHN network available to all employees and qualified dependents at City cost.

3. Parties agree that the City will replace Managed Health Network (MHN) with a carrier that offers the equivalent benefit(s) of MHN.

CITY OF HAWTHORNE HAWTHORNE POLICE

MANAGEMENT SUPERVISORY
GROUP

_________________________ ____________________________
Erika Lampkin HPMSG
Director of Human Resources
___________________________
Vontray Norris
City Manager
Dear Felice Lopez,
I am writing to inform you of upcoming changes to MHN’s EAP services. As you may know, on January 4, 2022, MHN’s parent company, Centene Corporation, acquired Magellan Healthcare, which provides comprehensive behavioral health and EAP services, along with best-in-class technology. Taking into consideration the needs of our customers, market conditions, and regulatory restrictions, MHN has made the difficult decision to leave the EAP market effective June 30, 2023.

We understand that EAP services are an important part of your company’s benefits package and would be pleased to help facilitate a transfer to our sister company, Magellan Healthcare. This move is strictly voluntary, and if you would like to learn more, please contact your Account Manager as soon as possible for assistance.

I would like to take this opportunity to personally thank you for being a valued EAP customer. We appreciate our collaboration and your trust in MHN. If you have any questions, please do not hesitate to contact your Account Manager, Monica Andrade ([email protected]).

Sincerely,
Devan J. Cross
MHN President & CEO
Enclosed:

Notification of Cancellation, Rescission, or Nonrenewal MHNEAPER11082022
January 27, 2023
City of Hawthorne
Group # 002799
4455 West 126th Street
Hawthorne, CA 90250
Notice of Cancellation, Rescission, or Nonrenewal
Notice of Cancellation of your Employee Assistance Program Combined Evidence of Coverage and Disclosure Form
From Managed Health Network
Dear Felice Lopez,
Thank you for being a valued Managed Health Network (“MHN”) customer, enrolled in the Employee Assistance Program (“EAP Program”). We are writing to notify you about a change in your EAP coverage. MHN’s EAP Program is being discontinued and coverage under MHN will no longer be available after June 30, 2023, meaning your EAP Program coverage under your Agreement with MHN will be cancelled effective July 1, 2023. This withdrawal and cancellation is being done in accordance with California Health and Safety Code §1365 and California Code of Regulations, title 28, § 1300.65.

The California Department of Managed Health Care is responsible for regulating health care service plans. If you have a grievance against your health plan, you should first telephone your health plan and use your health plan’s grievance process before contacting the department. Utilizing this grievance procedure does not prohibit any potential legal rights or remedies that may be available to you. If you need help with a grievance involving an emergency, a grievance that has not been satisfactorily resolved by your health plan, or a grievance that has remained unresolved for more than 30 days, you may call the department for assistance.

You may also be eligible for an Independent Medical Review (IMR). If you are eligible for IMR, the IMR process will provide an impartial review of medical decisions made by a health plan related to the medical necessity of a proposed service or treatment, coverage decisions for treatments that are experimental or investigational in nature and payment disputes for emergency or urgent medical services. The department also has a toll-free telephone number (1-888-HMO-2219) and a TDD line (1-877-688-9891) for the hearing and speech impaired. The department’s Internet Web site https://www.hmohelp.ca.gov has complaint forms, IMR application forms and instructions online.

RIGHT TO SUBMIT GRIEVANCE REGARDING CANCELLATION, RESCISSION, OR NONRENEWAL OF YOUR PLAN ENROLLMENT, SUBSCRIPTION, OR CONTRACT.

MHNEAPER11082022
If you believe your health care coverage has been, or will be, improperly cancelled, rescinded, or not renewed, you have the right to file a grievance with the plan and/or the Department of Managed Health Care.

OPTION (1) - YOU MAY SUBMIT A GRIEVANCE TO YOUR PLAN.
* You may submit a grievance to MHN by calling 1-800-327-0010 online at www.mhn.com, or by mailing your written grievance to:

MHN
Quality Management Department
PO Box 10697
San Rafael, CA 94912
* You may want to submit your grievance to MHN first if you believe your cancellation, rescission, or nonrenewal is the result of a mistake. Grievances should be submitted as soon as possible. * MHN will resolve your grievance or provide a pending status within three (3) calendar days. If you do not receive a response from the plan within three (3) calendar days, or if you are not satisfied in any way with the plan's response, you may submit a grievance to the Department of Managed Health Care as detailed under Option 2 below.

OPTION (2) - YOU MAY SUBMIT A GRIEVANCE DIRECTLY TO THE DEPARTMENT OF MANAGED HEALTH CARE. * You may submit a grievance to the Department of Managed Health Care without first submitting it to the plan or after you have received the plan's decision on your grievance. * You may submit a grievance to the Department of Managed Health Care online at:

WWW.HEALTHHELP.CA.GOV
* You may submit a grievance to the Department of Managed Health Care by mailing your written grievance to:

HELP CENTER

DEPARTMENT OF MANAGED HEALTH CARE
980 NINTH STREET, SUITE 500
SACRAMENTO, CALIFORNIA 95814-2725
* You may contact the Department of Managed Health Care for more information on filing a grievance at:

PHONE: 1-888-466-2219
TDD: 1-877-688-9891
FAX: 1-916-255-5241
If you have any questions or concerns, please contact your MHN Account Manager.

Sincerely,
Managed Health Network
MHNBHER11082022

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AGENDA ITEM NO. 23

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of June 27, 2023
Originating Department: Human Resources
City Manager: __________
Vontray Norris
Dir. of Human Resources: ___________
Erika Lampkin
SUBJECT:

Amendment to the Agreement/Contract Hawthorne Municipal Employees Association (HMEA) RECOMMENDED MOTION:

Staff recommends that the City Council approve an amendment to the Hawthorne Municipal Employees Association Memorandum of Understanding effective July 1, 2021 – June 30, 2024.

DISCUSSION:

ECONOMIC DEVELOPMENT STRATEGIC PLAN:
.

FISCAL IMPACT:

None.

NOTICING PROCEDURES:
72 hours posted notice pursuant to the Ralph M. Brown Act ATTACHMENT(S):

Page 2 of 2 ends

1. Side Letter Agreement - HMEA

2. MHN Cancellation Notice

3. Reliance Standard - ACI - EAP Flyer

SIDE LETTER AGREEMENT
TO THE 2021 – 2024 MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY OF HAWTHORNE
AND THE HAWTHORNE MUNCIPAL EMPLOYEE’S ASSOCIATION
WHEREAS, the City of Hawthorne (“City”) and the Hawthorne Municipal Employee Association (“HMEA”) have entered into a Memorandum of Understanding (“MOU”) covering the periods of July 1, 2021 – June 2024.

WHEREAS, the City of Hawthorne (“City”) and the Hawthorne Municipal Employee Association (“HMEA”) have met and conferred in good faith.

NOW, THEREFORE, THE PARTIES do hereby agree as follows:

1. On June 7, 2023, the parties agreed to amend the language in Article 6 Section(s) 6.1 Entitled Employee Insurance item number 3 to no longer include Managed Health Network (MHN) as the carrier of the Employee Assistance Program.

2. Parties agree in Article 6, Section 6.1 item number 3 will that state that Enrollment in the City’s Employee Assistance Program is required.

3. Parties agree that the City will replace Managed Health Network (MHN) with a carrier that offers the equivalent benefit(s) of MHN.

CITY OF HAWTHORNE HAWTHORNE MUNCIPAL

EMPLOYEES ASSOCIATION
_________________________ ____________________________
Erika Lampkin HMEA
Director of Human Resources
___________________________
Vontray Norris
City Manager
Dear Felice Lopez,
I am writing to inform you of upcoming changes to MHN’s EAP services. As you may know, on January 4, 2022, MHN’s parent company, Centene Corporation, acquired Magellan Healthcare, which provides comprehensive behavioral health and EAP services, along with best-in-class technology. Taking into consideration the needs of our customers, market conditions, and regulatory restrictions, MHN has made the difficult decision to leave the EAP market effective June 30, 2023.

Sincerely,
Devan J. Cross
MHN President & CEO
Enclosed:

RIGHT TO SUBMIT GRIEVANCE REGARDING CANCELLATION, RESCISSION, OR NONRENEWAL OF YOUR PLAN ENROLLMENT, SUBSCRIPTION, OR CONTRACT.

OPTION (1) - YOU MAY SUBMIT A GRIEVANCE TO YOUR PLAN.
* You may submit a grievance to MHN by calling 1-800-327-0010 online at www.mhn.com, or by mailing your written grievance to:

WWW.HEALTHHELP.CA.GOV
* You may submit a grievance to the Department of Managed Health Care by mailing your written grievance to:

HELP CENTER

DEPARTMENT OF MANAGED HEALTH CARE
980 NINTH STREET, SUITE 500
SACRAMENTO, CALIFORNIA 95814-2725
* You may contact the Department of Managed Health Care for more information on filing a grievance at:

PHONE: 1-888-466-2219
TDD: 1-877-688-9891
FAX: 1-916-255-5241
If you have any questions or concerns, please contact your MHN Account Manager.

Sincerely,
Managed Health Network
MHNBHER11082022

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AGENDA ITEM NO. 24

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of June 27, 2023
Originating Department: Human Resources
City Manager: __________
Vontray Norris
Dir. of Human Resources: ___________
Erika Lampkin
SUBJECT:

Amendment to the Agreement/Contract Hawthorne Executive Group (HEG) RECOMMENDED MOTION:

Staff recommends that the City Council approve an amendment to the Hawthorne Executive Group Memorandum of Understanding effective July 1, 2021 – June 30, 2024.

DISCUSSION:

ECONOMIC DEVELOPMENT STRATEGIC PLAN:
.

FISCAL IMPACT:

None.

NOTICING PROCEDURES:
72 hours posted notice pursuant to the Ralph M. Brown Act ATTACHMENT(S):

Page 2 of 2 ends

1. Side Letter Agreement

2. MHN Cancellation Notice

3. Reliance Standard - ACI - EAP Flyer

SIDE LETTER AGREEMENT
TO THE 2021 – 2024 MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY OF HAWTHORNE

AND THE HAWTHORNE EXECUTIVE GROUP
WHEREAS, the City of Hawthorne (“City”) and the Hawthorne Executive Group (“HEG”) have entered into a Memorandum of Understanding (“MOU”) covering the periods of July 1, 2021 – June 2024.

WHEREAS, the City of Hawthorne (“City”) and the Hawthorne Executive Group (“HEG”) have met and conferred in good faith.

NOW, THEREFORE, THE PARTIES do hereby agree as follows:

1. On June 7, 2023, the parties agreed to amend the language in Article 5 Section(s) 5.1 Entitled Employee Insurance item number 3 to no longer include Managed Health Network (MHN) as the carrier of the Employee Assistance Program.

2. Parties agree in Article 5, Section 5.1 item number 3 will that state that Enrollment in the City’s Employee Assistance Program is required.

3. Parties agree that the City will replace Managed Health Network (MHN) with a carrier that offers the equivalent benefit(s) of MHN.

CITY OF HAWTHORNE HAWTHORNE EXECUTIVE

ASSOCIATION
_________________________ ____________________________
Erika Lampkin HEG
Director of Human Resources
___________________________
Vontray Norris
City Manager
Dear Felice Lopez,
I am writing to inform you of upcoming changes to MHN’s EAP services. As you may know, on January 4, 2022, MHN’s parent company, Centene Corporation, acquired Magellan Healthcare, which provides comprehensive behavioral health and EAP services, along with best-in-class technology. Taking into consideration the needs of our customers, market conditions, and regulatory restrictions, MHN has made the difficult decision to leave the EAP market effective June 30, 2023.

Sincerely,
Devan J. Cross
MHN President & CEO
Enclosed:

RIGHT TO SUBMIT GRIEVANCE REGARDING CANCELLATION, RESCISSION, OR NONRENEWAL OF YOUR PLAN ENROLLMENT, SUBSCRIPTION, OR CONTRACT.

OPTION (1) - YOU MAY SUBMIT A GRIEVANCE TO YOUR PLAN.
* You may submit a grievance to MHN by calling 1-800-327-0010 online at www.mhn.com, or by mailing your written grievance to:

WWW.HEALTHHELP.CA.GOV
* You may submit a grievance to the Department of Managed Health Care by mailing your written grievance to:

HELP CENTER

DEPARTMENT OF MANAGED HEALTH CARE
980 NINTH STREET, SUITE 500
SACRAMENTO, CALIFORNIA 95814-2725
* You may contact the Department of Managed Health Care for more information on filing a grievance at:

PHONE: 1-888-466-2219
TDD: 1-877-688-9891
FAX: 1-916-255-5241
If you have any questions or concerns, please contact your MHN Account Manager.

Sincerely,
Managed Health Network
MHNBHER11082022

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AGENDA ITEM NO. 25

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of June 27, 2023
Originating Department: Public Works
City Manager: __________
Vontray Norris
Dir. of Public Works: ___________
Akbar Farokhi
SUBJECT:

Hawthorne Memorial Center HVAC System Upgrade (Project #23-08)- Out to Bid RECOMMENDED MOTION:

Staff recommends that the City Council approve the Plans and Specifications and authorize the Director of Public Works to advertise for construction bids with a return date of August 22,2023.

DISCUSSION:

This project is to provide comprehensive services for the HVAC system upgrade at the City of Hawthorne Memorial Center. This project entails the complete replacement of the existing HVAC system, and we require a range of services to ensure its successful and safe completion.

All existing equipment related to the HVAC system must be safely removed and disposed of in accordance with relevant regulations and guidelines. The contractor will be responsible for engineering and designing the upgraded HVAC system, taking into consideration the specific requirements of the project. The contractor will procure all necessary materials, including a new chiller (127 TR), water pumps, piping, new VAV AHUs, new hot water boiler (900 MBTUH), hot water pumps, piping, a new DDC controls system, a new emergency generator (250kw), and fuel storage. These components must be installed in compliance with the provided Plan and Specifications.

Lastly, the contractor should address all other aspects specified in the project, including hardware, wiring, warranty, permits, as-built drawings, and any other requirements necessary for the successful completion of the HVAC system upgrade. The contractor selected will provide all required labor, materials, permits, insurance, tools, and equipment necessary for the project. Safety and adherence to regulations are of utmost importance throughout the duration of the project.

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ECONOMIC DEVELOPMENT STRATEGIC PLAN:

This HVAC system upgrade project at our community center can contribute to our economic strategic plan in several ways. For example, a functional and well-maintained HVAC system ensures the uninterrupted use of the community center for various activities such as dance classes, youth school safety awareness classes, karate, non-profit meetings and events, and annual City Events like the Hawthorne Business Expo.

This contributes to the continuity of these services, which are essential for the community's well-being and engagement. By maintaining a reliable facility, the community center can continue to attract participants and generate revenue from program fees or facility rentals.

FISCAL IMPACT:

None. The project cost will be funded through a Specified Grant from the Budget Act of 2022 from the State of California Department of Parks and Recreation and through the American Rescue Plan Act Fund.

NOTICING PROCEDURES:
72 hours posted notice pursuant to the Ralph M. Brown Act ATTACHMENT(S):

1. Notice of Inviting Bids
i

CITY OF HAWTHORNE

NOTICE INVITING BIDS
(A Cash Contract)
Pursuant to statute and to the authorization by the City Council of the City of Hawthorne, California, and on file in the office of the City Clerk of said city, notice is hereby given that sealed proposals will be received by the City Clerk of the City of Hawthorne, California in the City Clerk’s office in City Hall, 4455 W. 126th Street, Hawthorne, CA 90250, until 4:00 P.M. on TUESDAY, AUGUST 22, 2023.

Proposals will be publicly opened and recorded on a Bid List at 4:15 P.M. of the same day in the City Clerk's office.

Bidders, as well as the general public, are invited to view this proceeding.

Proposals will be read at a meeting of the City Council at 6:00 P.M. on TUESDAY, AUGUST 22, 2023 for the following:

HAWTHORNE MEMORIAL CENTER HVAC SYSTEM UPGRADE
(Project # 23-08)
3901 W EL SEGUNDO BLVD, HAWTHORNE, CA 90250

SCOPE OF WORK
Provide all services, labor, materials, permits, insurance, tools and equipment needed, in accordance with the Plan and Specifications to successfully and safely complete the HVAC system upgrade at City of Hawthorne Memorial Center located at 3901 W El Segundo Blvd, Hawthorne, CA 90250.

BASE BID

ITEM APPROXIMATE

QUANTITY DESCRIPTION

1. 2.

Lump Sum
Lump Sum
Engineer, design, procure and install new chiller (127 TR), chilled water pumps and piping. Plus, all other Lump Sum aspects of the Project as specified, including hardware, warranty, permits, as-built drawings, etc.

Engineer, design, procure and install new VAV AHUs. Plus, all other Lump Sum aspects of the Project as specified, including hardware, warranty, permits, as-built drawings, etc.

3. Lump Sum
Engineer, design, procure and install new hot water boiler (900 MBTUH), hot water pumps and piping. Plus, all other Lump Sum aspects of the Project as specified, including hardware, warranty, permits, as-built drawings, etc.

4. Lump Sum
Engineer, design, procure and install new DDC controls system. Plus, all other Lump Sum aspects of the Project as specified, including hardware, wiring, warranty, permits, as-built drawings, etc.

5. Lump Sum
Engineer, design, procure and install new emergency generator (250 kW) and fuel storage. Plus, all other Lump Sum aspects of the Project as specified, including interconnection, wiring, fencing enclosure, concrete pad, warranty, permits, as-built drawings, etc.

6. Lump Sum Remove and dispose of all existing equipment. Plus, all other Lump Sum aspects of the Project as specified, including hardware, warranty, permits, as- ii
built drawings, etc.

CLASSIFICATION CONTRACTORS
Contractors bidding this project must possess a valid State of California Mechanical C20, or General A as the prime Contractor’s License and possess a C10 Electrical license for the building automation system. Contractors' Licenses on file with the California Department of Consumer Affairs. All design drawings supplied by the contractor must be reviewed and stamped by a California Professional Engineer – i.e., ME, EE, SE, etc. The successful bidder shall be licensed as required by law, and consistent with the contract documents, at the time the contract is awarded.

PRE-BID JOB WALK - MANDATORY
A pre-bid meeting/job walk will be conducted at the Memorial Center on THURSDAY, AUGUST 3, 2023, at 10:00 a.m. All Bidders shall sign a Sign-In sheet at the job walk. All Bidders’ questions will be answered at this time or by addenda. In addition, Bidders will have the opportunity to tour the proposed improvement and have an opportunity to talk to the City’s Consultant and City’s staff concerning any aspect of the job or the site. BIDS WILL BE NULL AND VOID IF CONTRACTOR DOES NOT ATTEND THIS PRE-BID JOB WALK.

SUBMISSION OF PROPOSALS
Original proposals must be submitted on the blank forms prepared and furnished for that purpose, which may be obtained at the Department of Public Works, Engineering Division (2nd Floor), Hawthorne City Hall, 4455 West 126th Street, Hawthorne, CA 90250, phone (310) 349-2980. Bidders may also obtain copies of the Plans and Specifications for the contemplated work at this same location.

No bid will be considered unless it conforms to the Proposal Requirements and Conditions. The City Council of the City of Hawthorne, also referred to as the City, reserves the right to reject any and all proposals. Bids must be returned in the special envelopes provided, marked "SEALED BIDS," and addressed to the City Clerk.

Each bid shall be accompanied by bid security in the form of a bid bond, cashier’s check, certified check, or in the amount of 10% of the total bid amount. All cashier’s checks or certified checks must be drawn on a responsible bank doing business in the State of California and shall be made payable to the City of Hawthorne. Bid bonds must be issued by an admitted surety insurer licensed to do business in the State of California. Bids not accompanied by the required bid security will be rejected. Personal or company checks are not acceptable unless certified. The City shall return bid security of unsuccessful bidders when the successful bidder (“Contractor”) enters into the Contract with the City.

A list of subcontractors shall be submitted with the bid on the form provided by the City.

Each bidder must supply all information required by the bid documents and specifications.

WAGES AND EQUAL EMPLOYMENT OPPORTUNITY
Pursuant to the provision of Section 1770 through 1780, inclusive, of the Labor Code of the State of California, the City Council has ascertained the general prevailing rate of per diem wages for each craft or type of worker needed to execute the proposed contract, and it will be required that not less than said rates be paid to all such workers employed or engaged in the work.

In addition to the Contractor’s obligations as to minimum wages rates, the Contractor shall abide by all other provisions and requirements stipulated in Sections 1770-1780, inclusive, of the Labor Code of the State of California, including, but not limited to, those dealing with the employment of registered apprentices. The responsibility of compliance with Section 1777.5 of the Labor Code shall be with the prime contractor.

NONDISCRIMINATION
iii
In performance of the terms of this contract, the Contractor shall not engage in, nor permit such subcontractors as he may employ from engaging in, discrimination in employment of persons because of the race, color, place of national origin or ancestry, sex, age, sexual orientation, or religion of such persons.

PERFORMANCE RETENTIONS
The successful bidder will be required to provide for performance security as provided by law. Requirements for performance retentions may be satisfied by deposit or securities specified in Section 16430 of the Government Code, and in accordance with Section 223001 of the Public Contract Code.

PROJECT INFORMATION
Plans and Specifications are available for purchase at Hawthorne City Hall, Department of Public Works, Engineering Division (second floor), 4455 West 126th Street, Hawthorne, CA 90250 (310) 349-2980
NOTE TO PROSPECTIVE BIDDERS: THE COST OF PLANS AND SPECIFICATIONS IS $50.00 (non-refundable). AN ADDITIONAL $25.00 WILL BE CHARGED IF MAILING IS NECESSARY, OR $50.00 IF FEDERAL EXPRESS MAILING OPTION IS REQUIRED.

If you have questions and/or need clarification regarding this project, please contact Selena Acuna in the Department of Public Works, Engineering Division, at [email protected]

THE CITY OF HAWTHORNE RESERVES THE RIGHT TO REJECT ANY BID OR ALL BIDS AND TO WAIVE ANY INFORMALITY OR IRREGULARITY IN ANY BID. ANY CONTRACT AWARDED WILL BE LET TO THE LOWEST, QUALIFIED, RESPONSIVE AND RESPONSIBLE BIDDER.

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AGENDA ITEM NO. 26

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of June 27, 2023
Originating Department: City Manager
City Manager: __________
Vontray Norris
City Attorney: ___________
Robert M. Kim
SUBJECT:

New Agreement Between the City of Hawthorne and TeleHealth Van, LLC. for the Mobile Daily Virtual Tele-health Services for the Low Income and Unhoused Residents.

RECOMMENDED MOTION:

Staff Recommends that the City Council Approve the New Agreement with TeleHealth Van, LLC.

DISCUSSION:

TeleHealth Van, LLC. (Telehealth) has been providing daily mobile social support to low-income and homeless city residents for approximately one year. Their service included two vans, five days a week with a staff that assists those in need with connections to various resources for mental health treatments, addiction recovery, homeless resources and probation.

The City approved the initial agreement for their services on July 27, 2021. Since then, the City and Telehealth went through three amendments of the agreement that included price reduction and changes to the scope of work and term of the agreement. The latest version, the third amended agreement, approved by the city council on August 9, 2022, expires on August 10, 2023.

At the regular city council meeting of June 13, 2023, the council voted unanimously to direct staff to enter into another agreement with Telehealth with a term of 3 years at a cost of $640 per each van. Due to the numerous amendments made to the original July 2021 agreement, in order to clear-up any confusion, this agreement will terminate and void all previous agreement and its amendments and start a new agreement.

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FISCAL IMPACT:
$332,800 annually from The American Rescue Plan Act Funding for three years.

NOTICING PROCEDURES:
72 hours posted notice pursuant to the Ralph M. Brown Act ATTACHMENT(S):

1. TeleHealth Agreement

2. Scope of Work

AGREEMENT BETWEEN THE CITY OF HAWTHORNE AND

TELEHEALTH VAN, LLC

TO PROVIDE DAILY VIRTUAL TELE-HEALTH RESOURCES AND FAMILY SUPPORT FOR LOW INCOME AND HOMELESS RESIDENTS 2023
THIS AGREEMENT is made and effective as of July 5, 2023, between the City of Hawthorne (“City”) and TeleHealth Van , LLC (“Provider”). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

1. TERM
This Agreement shall commence on July 5, 2023 for the duration of Three Years and shall terminate on July 5, 2026 unless extended by written mutual agreement of both City and Provider.

2. SERVICES
Provider shall perform the tasks described and set forth in Exhibit A, attached hereto and incorporated herein as though set forth in full.

3. PERFORMANCE
Provider shall at all times faithfully, competently and to the best of its ability, experience, and talent, perform all tasks described herein. Provider shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Provider hereunder in meeting its obligations under this Agreement.

Provider shall maintain a verifiable record of all clients served which, upon demand, must be reported to City. There shall be annual performance evaluation in which all records and data of Provider’s performance will be evaluated by City. All of Provider’s records of performance is subject to inspection by City upon demand.

4. CITY MANAGEMENT
The City Manager or his/her designee shall represent City in all matters pertaining to the administration of this Agreement, review and approval of all services performed by Provider.

5. COMPENSATION
(a) City agrees to pay Provider $640 per each day for each 5G enabled van that Provider delivers City with two 5G-enabled service vans in accordance with the payment rates and terms as set forth in Exhibit A, attached hereto and incorporated herein by this reference as though set forth in full. (b) Provider shall not be compensated for any services rendered in connection with its performance of this Agreement which are in addition those set forth herein, unless such additional services are authorized in advance and in writing by the City Manager or his/her designee. Provider shall be compensated for any additional services in the amounts and in the manner as agreed to by the City Manager or his/her designee and Provider at the time City’s written authorization is given to Provider for the performance of said services.
(c) Provider will submit invoices for actual services performed on a monthly basis. Payment shall be made within thirty (30) days of receipt of each invoice as to all non-disputed fees. If City disputes any of Provider’s fees it shall give a written notice to Provider within fifteen (15) days of receipt of an invoice of any disputed fees set forth on the invoice.

6. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE (a) City may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any potion hereof, by serving upon Provider thirty (30) days prior written notice.

Upon receipt of said notice, Provider shall immediately cease all work under this Agreement, unless the notice provides otherwise. If City suspends or terminates a portion of this Agreement such suspension or termination shall not make void or invalidates the remainder of this Agreement. (b) In the event this Agreement is terminated pursuant to this Section, City shall pay to Provider the actual value of the work performed up to the time of termination. Upon termination of the Agreement pursuant to this Section, Provider shall submit within ten (10) days after receipt of the termination notice its invoice to City.
(c) Provider may terminate this Agreement at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any potion hereof, by serving upon City thirty (30) days prior written notice. Upon receipt of said notice, City will pay Provider for all services performed up to and including the effective date of termination.

7. DEFAULT OF PROVIDER
(a) Provider’s failure to comply with the provision of this Agreement shall constitute a default.

In the event that Provider is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating Provider for any work performed after the date of default and can terminate this Agreement immediately by written notice to Provider. If such failure by Provider to make progress in the performance of work hereunder arises out of causes beyond Provider’s reasonable control, and without fault or negligence of Provider, it shall not be considered a default.
(b) If the City Manager or his/her designee determines that the Provider is in default in the performance of any of the terms or conditions of this Agreement, he/she shall cause to be served upon Provider a written notice of the default. Provider shall have ten (10) days after service of said notice in which to cure the default by rendering a satisfactory performance. In the event that Provider fails to cure its default within such period of time, City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement.

8. INDEMNIFICATION
When the law establishes a professional standard of care for Provider’s services, to the fullest extent permitted by law, Provider shall indemnify, and hold harmless City and any and all of its officials, employees (“Indemnified Parties”) from and against any and all losses, liabilities, damages, costs and expenses, including reasonable attorney’s fees and costs to the extent same are caused in whole or in part by an negligent act, error or mission of Provider, its officers, agents, employees or sub-consultants (or any entity or individual that Provider shall bear the legal liability thereof) in the performance of professional services under this Agreement.

To the extent that Provider’s services are subject to California Civil Code 2782.8, the above indemnity, including the cost to defense, shall be limited to the extent required by Civil Code Section 2782.8.

10. INSURANCE
(a) Provider shall maintain in-force: Commercial General Liability and professional Liability Insurance. During the term of this Agreement, Provider shall maintain in full force and effect a policy of public liability insurance with minimum coverage of $2,000,000 in accordance with the requirements provided by City to Provider. Provider shall also maintain in-force; Professional Liability Insurance (and/or Errors & Omissions Insurance) with minimum limits of liability of $1,000,000 per claim against any injury, death, loss or damages because of wrongful or negligent acts or omissions by the named insured.
(b) Provider shall maintain in-force Workers’ Compensation and Employer’s Liability Insurance as required by the California Labor Code. Evidence of coverage shall take the form of a Certificate of Insurance or a California Certificate to Self-Insure. Acceptable minimum limits for this coverage are: Workers’ Compensation; Statutory in California; Employer’s Liability, $1,000,000. (c) Certificates of Insurance. Provider shall furnish to City evidence of any insurance required by this Agreement. A Certificate of Insurance from an insurer admitted or authorized to do business in the state of California will be provided, indicating that the respective policy(s) meets the following requirements: (1) City, its officers, employees, and agents shall be named as additional insured on the General Liability Insurance and the Professional Liability Insurance; (2) Insurance shall not be canceled or terminated without 30 days written notice to City or 10 days notice for non-payment of the premium; (3) General Liability shall be primary and any insurance held by City for its own protection shall be excess and shall be effective only upon exhaustion of Provider’s both General Liability insurance and Professional Liability insurance; (4) Both General Liability Insurance and Professional Liability Insurance shall be maintained for the duration of the Agreement, including any period extended beyond the expiration date of this Agreement required to complete performance as stipulated in this Agreement and all amendments thereto.

11. INDEPENDENT CONSULTANT
(a) Provider is and shall at all times remain as to the City a wholly independent Provider. The personnel performing the services under this Agreement on behalf of Provider shall at all times be under Provider’s exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of Provider or any of Provider’s officers, employees, or agents, except as set forth in this Agreement. Provider shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the City. Provider shall not incur or have the power to incur any debt, obligation, or liability whatsoever against City, or bind City in any manner. (b) No employee benefits shall be available to Provider in connection with the performance of this Agreement. Except for the fees paid Provider as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Provider for performing services hereunder for City.

City shall not be liable for compensation or indemnification to Provider for injury or sickness arising out of performing services hereunder.

12. LEGAL RESPONSIBILITIES
Provider shall keep itself informed of applicable State and Federal laws and regulations, including, but not limited to, the Health Insurance Portability and Accountability Act (HIPAA), which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. Provider shall at all times observe and comply with all such laws and regulations pursuant to sound professional practices. City, and its officers and employees, shall not be liable at law or in equity occasioned by negligent failure of Provider to comply with this Section.

13. UNDUE INFLUENCE
Provider declares that no undue influence or pressure is used against or in concert with any officers or employee of City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement.

No officer or employee of City will receive compensation, directly or indirectly, from Provider, or from any officer, employee or agent of Provider, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling City to any and all remedies at law or in equity.

14. NO BENEFIT TO ARISE TO LOCAL EMPLOYEES
No member, officer, or employee of City, or their designees or agents, and no public official who exercises authority over or responsibilities with respect to the Performance and Services under this Agreement during his/her tenure or for one year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for work to be performed in connection with the Performance and Services under this Agreement.

15. RELEASE OF INFORMATIN/CONFLICTS OF INTEREST
(a) All information gained by Provider in performance of this Agreement shall be considered confidential and shall not be released without City’s prior written authorization. Provider, its officers, employees, agents, or sub-consultants, shall not without written authorization from the City Manager or unless requested by the City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered “voluntary” provided Provider gives City notice of such court order or subpoena. (b) Provider shall promptly notify City should Provider, its officers, employees, agents, or subconsultants be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request, court order, or subpoena from any person or party regarding this Agreement and the work performed thereunder.

City retains the right, but has no obligation, to represent Provider and/or be present at any deposition, hearing, or similar proceeding. Provider agrees to cooperate fully with City and to provide the opportunity to review any response to discovery requests served on Provider.

However, City’s right to review any such response does not imply or mean the right by City control, direct, or rewrite said response.

16. NOTICES
The Parties shall submit in writing all notices and correspondence that this Agreement requires or permits, and shall deliver the notices and correspondence to the places set forth below. The parties may give notice by: (a) personal delivery; (b) U.S. mail, first class postage prepaid; (c) “Certified” U.S. mail, postage prepaid, return receipt requested; (d) facsimile or (e) email.

CITY: Vontray Norris, City Manager
City of Hawthorne
4455 West 126th Street
Hawthorne, CA 90250
PROVIDER: Dion Rambo
President
TeleHealth Van, LLC
9100 S. Sepulveda Blvd.

Suite 124
Los Angeles, CA 90045

17. ASSIGNMENT
Provider shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of City.

18. LICENSES
At all times during the term of this Agreement, Provider shall have in full force and effect, all licenses required of it by law for the performance of the services described in this Agreement.

19. GOVERNING LAW
City and Provider understand and agree that the laws of the State of California shall govern the rights, obligations, duties, and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in the municipal, superior, or federal district court with jurisdiction over the City of Hawthorne.

20. ENTIRE AGREEMENT
This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, amendments, understandings, representations, and statements, oral or written, including, but not limited to, the agreement dated August 2, 2021 and all amendments thereto are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party’s own independent investigation of any and all facts such party deems material.

21. AUTHORITY TO EXECUTE THIS AGREEMENT
The person or persons executing this Agreement on behalf of Provider warrants and represents that he/she has the authority to execute this Agreement on behalf of Consultant and has the authority to bind Consultant to the performance of its obligations hereunder.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written.

CITY OF HAWTHORNE TELEHEALTH VAN, LLC
By:________________________ By:_____________________
Alex Vargas Dion Rambo
Mayor President
By:________________________
Vontray Norris
City Manager
Attest:

By:___________________________
Dayna S. Williams-Hunter
City Clerk
Approved as to Form:

By:_________________________
Robert M. Kim
City Attorney

EXHIBIT A

SCOPE OF WORK
Scope of Work
Enhanced Telehealth Van Services - By Rambo House
COMPENSATION: Increase the daily price for telehealth vans from $480 to $640 per each of the two vans for five days a week due to the improved services and maintenance. The term of this agreement will be for a period of three years, from July 5, 2023, to July 5, 2026.

The Need for an Increased Budget:

1. Maintenance & Upkeep: Ensuring high-quality and uninterrupted service requires regular maintenance and timely repairs. The increased budget will facilitate necessary maintenance and upkeep.

2. Training: Continued education and training for van personnel are essential to keep up with technological advancements and policy changes in healthcare. The increased budget will support ongoing training initiatives.

Upgraded Services & New Features:

1. Transport Van: As requested by the City of Hawthorne, the second van will be modified to provide free transport services within a 5-mile radius of the telehealth van's meeting location.

2. Local Apartment Service: A new initiative will be implemented to serve apartment managers and tenants, allowing easy walk-up access during work hours.

Multiple Usages of the Telehealth Vans:

The two telehealth vans will be utilized for various purposes, including but not limited to:
- Walk-up therapy support
- Walk-up intake support
- Medical insurance mission support
- Event end support
- Parking at multiple locations
Budget Breakdown:

The daily rate of $640 per van includes the following components:
- Driver and Technician salaries
- Virtual Therapist or Insurance Submission Representatives - Regular maintenance (engine, oil, etc.)
- Van insurance and individual insurance
- Updates on local resources throughout the city
- Signage and outreach efforts

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AGENDA ITEM NO. 27

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of June 27, 2023
Originating Department: City Attorney
City Attorney: ___________
Robert Kim
SUBJECT:

Claim of Tyler Wilson
RECOMMENDED MOTION:

Deny the Claim of Tyler Wilson
DISCUSSION:

Claimant alleges that she sustained injuries from contact with a K-9 officer.

FISCAL IMPACT:

None.

NOTICING PROCEDURES:
72 hours posted notice pursuant to the Ralph M. Brown Act ATTACHMENT(S):

None.

Page 1 of 2 ends

AGENDA ITEM NO. 29

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of June 27, 2023
Originating Department: City Attorney
City Manager: __________
Vontray Norris
City Attorney: ___________
Robert Kim
SUBJECT:

Join Neighboring Cities in Opposing, Unless Amended, SB 734 Property Tax: Possessory Interests.

RECOMMENDED MOTION:

Staff recommends that the City Council discuss and vote to either join other neighboring cities in calling for SB 734 to be amended or to take no action
DISCUSSION:

Existing law requires that all property subject to tax be assessed at its full value, and includes certain possessory interests among those property interests subject to tax. SB 734, as currently written, would exempt income qualified tenants that make up to 80% of the Area Median Income (AMI) in government-owned affordable housing projects from paying possessory interest tax.

California is experiencing an unprecedented housing crisis. Over 52% of California’s renters are housing burdened which means they spend more than 30% of their monthly income on housing.

While it is challenging for Cities to provide housing of all types it is extremely difficult to provide new housing for households making between 60% to 120% of the AMI. These are the households that make too much to qualify for traditional affordable housing projects and are spending a large portion of their monthly income on rent. These households are the fabric of our communities and include schoolteachers, first responders, civil servants, non-profit employees, nurses, and members of labor.

Page 2 of 2 ends

community is extraordinary. Since acquiring the properties, rents have decreased and the weighted monthly savings are $962 per month or $11,500 annually per middle-income household.

If SB 734 remains unamended, 70% of the tenants in this Hawthorne project are eligible to receive possessory interest tax bills. This has the potential to undo much of the savings provided to these residents.

FISCAL IMPACT:

None.

NOTICING PROCEDURES:
72 hours posted notice pursuant to the Ralph M. Brown Act ATTACHMENT(S):

1. Letter Opposing SB 734 Unless Amended
June 27, 2023
The Honorable Susan Rubio
1021 O Street, Suite 8710
Sacramento, CA 95814
Re: SB 734 – Oppose Unless Amended
Dear Senator Rubio:

The City of Hawthorne respectfully opposes SB 734, a bill to exempt income qualified tenants that make up to 80% of the Area Median Income (AMI) in government-owned affordable housing projects from paying possessory interest tax, unless amended to include language to exempt tenants making up to 120% of the AMI.

California is experiencing an unprecedented housing crisis. Over 52% of California’s renters are housing burdened which means they spend more than 30% of their monthly income on housing. While it is challenging for Cities to provide housing of all types it is extremely difficult to provide new housing for households making between 60% to 120% of the AMI. These are the households that make too much to qualify for traditional affordable housing projects and are spending a large portion of their monthly income on rent. These households are the fabric of our communities and include schoolteachers, first responders, civil servants, non-profit employees, nurses, and members of labor.

A primary reason it is so difficult to provide housing for these households is because there are no dedicated funding sources to provide middle-income housing in California.

In 2021, after detailed analysis and discussion, the City of Hawthorne approved a new innovative form of financing to allow a Joint Powers Authority (JPA) to issue tax exempt bonds and convert a 230-unit market rate multifamily community called Airo (formerly Millennium) at South Bay to middle-income housing. The monthly rental savings being passed on to the residents of this community is extraordinary. Since acquiring the properties, rents have decreased and the weighted monthly savings are $962 per month or $11,500 annually per middle-income household.

If SB 734 passes as drafted, 70% of the tenants in this Hawthorne project are eligible to receive possessory interest tax bills, which we do not believe is in the best interest of housing policy in California. The City of Hawthorne respectfully asks that SB 734 be amended to include language that protects these middle-income households from receiving property tax bills.

We appreciate your attention to this matter and welcome a chance to work together on crafting legislation that protects tenants in California.

Sincerely,
Vontray Norris
City Manager
City of Hawthorne

Hawthorne City CouncilJune 27, 2023

Hawthorne City Council
June 27, 2023