Hawthorne City Council
April 23, 2024

City of Hawthorne - 38 - 24-25 Annual Action Plan
AP-60 Public Housing – 91.220(h)
Introduction
The City of Hawthorne Housing Authority was formed in 1994 under State of California Housing Authority Law to actively improve existing neighborhoods and develop affordable housing opportunities using local, state and federal resources. The Hawthorne Housing Authority does not administer Section 8 and does not own HUD Public Housing; however, the City is within the service area of the Los Angeles County Development Agency (LACDA) for the purposes of Section 8 and Public Housing.

Actions planned during the next year to address the needs to public housing During the 2024-2025 program year, LACDA will continue providing housing and public services to existing residents of the City of Hawthorne. LACDA takes in feedback of residents collected through resident surveys distributed throughout the City of Hawthorne to improve services.

Actions to encourage public housing residents to become more involved in management and participate in homeownership
LACDA actively encourages residents to be involved in the organization through resident councils and active participation in housing authority decisions via surveys and other forms of engagement. Resident surveys were distributed with translation services available on request. Community meetings in target areas were hosted with copies of the Consolidated Plan draft being available in these areas. A public hearing is conducted to accept public comments on the draft plan before its approval and submittal to HUD. Grant funding is administered to increase housing availability and accessibility to residents to encourage greater participation in homeownership. LACDA also maintains quarterly newsletters for Section 8 tenants, public housing residents, and Section 8 property owners.

If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
Not applicable, LACDA is designated as a High Performing Public Housing Agency.

Discussion
LACDA is well-positioned to continue providing Section 8 Housing Choice Vouchers in the City of Hawthorne and throughout Los Angeles County.

City of Hawthorne - 39 - 24-25 Annual Action Plan
AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
Preventing and ending homelessness is a HUD priority addressed nationally through coordination of regional strategies carried out locally by government agencies and a wide variety of community-based organizations and faith-based groups. Consistent with this approach, the City of Hawthorne supports the efforts of The Los Angeles Homeless Service Authority (LAHSA), County Continuum of Care (CoC), and its member organizations that address homelessness throughout Los Angeles County. In alignment with this strategy, the City will use CDBG and HOME and other local funds to support local service providers as well as City run programs to prevent homelessness and to expand the supply of affordable housing in Hawthorne for extremely low- and low-income residents.

Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The CoC and its partner agencies will continue to provide a continuum of programs ranging from outreach, access centers, emergency shelters, safe havens, transitional and permanent housing, and prevention.

More specifically, LAHSA, the County’s CoC, will increase efforts in 2024-2025 to add emergency and transitional shelter housing units through expedited construction or rehabilitation of facilities to accommodate homeless persons.

To reach out to unsheltered homeless persons and assess their individual needs for the purpose of connecting them with available emergency shelter and transitional housing resources, the City of Hawthorne, through its Housing Department provided information and referrals – primarily to LAHSA, United Way 2-1-1, and the organizations received CDBG funds for homelessness prevention activities.

During the 2024-2025 program year, the City will invest $86,104 of CDBG funds to the following non-profit organizations that provide public services that prevent and eliminate homelessness:
• Family Promise of the South Bay: Transitional Shelter & Housing Case Management (25 persons assisted - $20,000)
• New Star Family Center: Domestic Violence Services (23 persons assisted - $22,500) • The Richstone Family Center: Behavioral Therapy Services (24 persons assisted - $21,000) • Catholic Charities of Los Angeles: St. Margaret’s Center Emergency Assistance (140 persons assisted - $22,604)
City of Hawthorne - 40 - 24-25 Annual Action Plan
Addressing the emergency shelter and transitional housing needs of homeless persons The ultimate solution to ending homelessness is transitional to permanent housing closely aligned with supportive services that ensure housing stability can be maintained. However, because the demand for affordable housing far outpaces the region’s supply, the CoC continues to rely on its emergency and transitional housing system in order to address the immediate needs of Los Angeles County’s homeless population.

To address the emergency shelter and transitional housing needs of homeless persons, the City continues to support the Family Promise of the South Bay (FPOSB) which operates a transitional shelter for families that are homeless and provides case management services with the goal of helping 10 people to enter their own permanent housing.

This increase in permanent supportive housing for the most vulnerable populations is attributed to Los Angeles County homeless service providers re-tooling their programs and shifting their focus to moving people quickly into permanent supportive housing throughout the County. Homelessness can be significantly reduced and the quality of life of our residents, especially those precariously housed or homeless can be improved.

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again To address the needs of homeless families, families with children, veterans and their families, the City will continue to support the Family Promise of the South Bay (FPOSB) which operates a transitional shelter for families that are homeless and provides case management services with the goal of helping families enter their own permanent housing. Furthermore, the City intends to continue its support of Catholic Charities of Los Angeles' (CCLA) emergency assistance program that helps families that are at-risk of homelessness achieve stability by connecting them to the appropriate housing and utility resources based on their needs.

Additionally, the City’s partnership with LAHSA provides intensive, field-based engagement services and support that meets clients and their families where they live. As a result, the City has been able to leverage its partnerships with the County agencies to bolster its homeless outreach efforts.

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Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs To help low-income individuals and families avoid becoming homeless, the City will continue its partnership with Catholic Charities of Los Angeles (CCLA) to connect residents at risk of becoming homeless to existing short-term housing and utility assistance programs based on their eligibility and need. In addition, the City intends to support both New Star Family Center (NSFC) and the Richstone Family Center (RFC) which provide a range of services to survivors of domestic violence and their children who are homeless or at-risk of homelessness after fleeing violent homes.

Inadequate discharge planning and coordination contributes to homelessness in situations where people are released from public institutions or public systems of care without having an appropriate mainstream or supportive housing option available upon discharge from an institutional setting. Public institutions such as jails, hospitals, treatment facilities, mental health facilities, youth facilities, and foster care homes are central to limiting the creation of newly homeless persons upon discharge.

In California, discharge coordination and planning is largely unregulated unless county or municipal ordinances provide rules preventing public institutions from discharging people into homelessness. One of the goals included in the Los Angeles Ten Year Strategy to End Homelessness is to formalize protocols and improve the coordination of discharge planning among key institutional systems of care and supervision. The goal calls for the CoC to close the “revolving door” to homelessness so that new persons do not find themselves living in the community without the social and economic support necessary to access and maintain themselves in a safe environment.

The City coordinated with the CoC and other subrecipients receiving CDBG funds to ensure that its HUDfunded programs are targeted, to the greatest extent feasible, to address the discharge of persons from publicly funded institutions or systems of care so that these individuals and families have access to public services and affordable housing opportunities necessary to prevent homelessness. The City will continue to explore additional ways to prevent and address homelessness caused by discharge from public institutions.

Discussion
The City will use CDBG, HOME and other local funds to support local service providers as well as City run programs to prevent homelessness and to expand the supply of affordable housing in Hawthorne for extremely low- and low-income residents
City of Hawthorne - 42 - 24-25 Annual Action Plan
AP-75 Barriers to affordable housing – 91.220(j)
Introduction
A barrier to affordable housing is a public policy or nongovernmental condition that constrains the development or rehabilitation of affordable housing, such as land use controls, property taxes, state prevailing wage requirements, environmental protection, cost of land and availability of monetary resources. Barriers to affordable housing are distinguished from impediments to fair housing choice in the sense that barriers are lawful and impediments to fair housing choice are usually unlawful.

Based on information gathered during community meetings, the Consolidated Plan Needs Assessment Survey, the 2021-2029 Housing Element and market analysis, the primary barriers to affordable housing in Hawthorne are housing affordability and the lack of monetary resources necessary to develop and sustain affordable housing. The two barriers are related in the sense that demand for affordable housing exceeds the supply and insufficient resources are available to increase the supply of affordable housing to meet demand.

Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment In the development of the 2021-2029 Housing Element, the City evaluated significant public policies affecting affordable housing development such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges and growth limitations. Based on this evaluation, the City determined that it has taken all necessary steps to ameliorate the negative effects of public policies that may have been a barrier to affordable housing. Moreover, the City is actively engaged with affordable housing developers concerning the siting of affordable housing and ensuring that the entitlement process runs smoothly from inception to completion.

The City’s 2021-2029 Housing Element includes a goal to reduce or remove governmental and nongovernmental constraints to the development, improvement, and maintenance of housing where feasible and legally permissible. More specifically, the following actions were identified:
• Review residential development standards, regulations, ordinances, departmental processing procedures, and permit fees related to construction and rehabilitation to determine any constraints on housing development and modify accordingly.
• Inform applicants on how to navigate the development review process and efficiently facilitate building permit and development plan processing for residential construction. • Monitor state and federal housing-related legislation, and update City plans, ordinances, and processes pursuant to such legislation to remove or reduce governmental constraints. • Provide incentives and regulatory concessions for residential projects constructed specifically for lowand moderate-income households. • Adopt plans and programs that support the provision of adequate infrastructure and public facilities City of Hawthorne - 43 - 24-25 Annual Action Plan
required to serve new housing.

Discussion
To address housing affordability and the lack of monetary resources for affordable housing, the City will continue to leverage its CDBG and HOME funds to attract private and other available resources to incentivize the development of new affordable housing units and the preservation of existing affordable housing.

Through the City’s Housing Rehabilitation Program, it will provide financial assistance to low- and moderateincome owners of single-family residences to help preserve homes that need critical home improvements. In addition, the City’s Homebuyer Assistance program will provide financial assistance to income-eligible households to purchase a house. Lastly, the Acquisition, Rehabilitation, and Resale project will expand the supply of affordable housing for low- and moderate-income residents.

City of Hawthorne - 44 - 24-25 Annual Action Plan
AP-85 Other Actions – 91.220(k)
Introduction
In the implementation of the 2024-2025 Annual Action Plan, the City will invest CDBG and HOME resources to address obstacles to meeting underserved needs, foster and maintain affordable housing, reduce leadbased paint hazards, reduce the number of poverty-level families, develop institutional structure and enhance coordination between public and private housing and social service agencies.

Actions planned to address obstacles to meeting underserved needs The primary obstacles to meeting the underserved needs of low- and moderate-income people include lack of funding from federal, state and other local sources, the high cost of housing that is not affordable to lowincome people and the lack of availability of home improvement financing in the private lending industry. To address these obstacles, the City is investing CDBG and HOME funds through the 2024-2025 Action Plan in projects that provide public services to low- and moderate-income people and those with special needs, financial assistance to low- and moderate-income homeowners to preserve their residence, financial assistance to income eligible households to purchase a house, as well as projects that acquire, rehabilitate and resell housing units to low- and moderate-income residents. To address underserved needs, the City is allocating 100 percent of its non-administrative CDBG and HOME investments for program year 2024-2025 to projects and activities that benefit low- and moderate-income people or people presumed under HUD regulations to be low- and moderate-income.

Actions planned to foster and maintain affordable housing During the 2024-2025 program year, the City will invest CDBG funds to preserve and maintain affordable housing through the City’s Housing Rehabilitation Program that will provide financial assistance to low- and moderate-income owners of single-family housing. In addition, the City will allocate CDBG and HOME funds to preserve and maintain affordable housing units for low- and moderate-income tenants. Lastly, CCLA’s Emergency Assistance program furthers the aim of affordable housing by financially assisting low- to moderate-income residents who are at risk of experiencing homelessness through emergency rental and utility payments.

Actions planned to reduce lead-based paint hazards
The Residential Lead Based Paint Hazard Reduction Act of 1992 (Title X) emphasizes prevention of childhood lead poisoning through housing-based approaches. To reduce lead-based paint hazards, the City of Hawthorne Housing Rehabilitation Program will conduct lead-based paint testing and risk assessments for each property assisted that was built prior to January 1, 1978 and will incorporate safe work practices or abatement into the scope of work as required to reduce lead-based paint hazards in accordance with 24 CFR Part 35.

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Actions planned to reduce the number of poverty-level families The implementation of CDBG and HOME activities meeting the goals established in the 2020-2024 Consolidated Plan - Strategic Plan and this Annual Action Plan will help to reduce the number of povertylevel families by:
• Supporting activities that expand the supply of housing that is affordable to low- and moderateincome households; • Supporting a continuum of housing and public service programs to prevent and eliminate homelessness; and
• Supporting public services for low- and moderate-income residents In addition to these local efforts, mainstream state and federal resources also contribute to reducing the number of individuals and families in poverty. Federal programs such as the Earned Income Tax Credit and Head Start provide pathways out of poverty for families who are ready to pursue employment and educational opportunities. Additionally in California, the primary programs that assist families in poverty are CalWORKS, CalFresh (formerly food stamps) and Medi-Cal. Together, these programs provide individuals and families with employment assistance, subsidy for food, medical care, childcare and cash payments to meet basic needs such as housing, nutrition and transportation. Other services are available to assist persons suffering from substance abuse, domestic violence and mental illness.

The Fair Housing Foundation (FHF) will assist low- and moderate-income households by providing guidance, services, and information regarding fair housing rights and help with addressing cases of housing discrimination. Additionally FPOSB’s program will be providing shelter (transitional housing) and case management services.

Actions planned to develop institutional structure
The institutional delivery system in Hawthorne is high-functioning and collaborative—particularly the relationship between local government and the nonprofit sector comprised of a network of capable non-profit organizations that are delivering a full range of services to residents. Strong City departments anchor the administration of HUD grant programs and the housing, community and economic development activities that are implemented by the City support and enhance this existing institutional structure, the City of Hawthorne will collaborate with affordable housing developers and nonprofit agencies receiving CDBG and HOME funds through the 2024-2025 Annual Action Plan to ensure that the needs of low- and moderateincome residents are met as envisioned within the 2020-2024 Consolidated Plan - Strategic Plan.

Actions planned to enhance coordination between public and private housing and social service agencies To enhance coordination between public and private housing and social service agencies, the City will continue consulting with and inviting the participation of a wide variety of agencies and organizations involved in the delivery of housing and supportive services to low- and moderate-income residents in Hawthorne— particularly the CDBG low- and moderate-income areas. With improvements in technology, the City will City of Hawthorne - 46 - 24-25 Annual Action Plan
expand its outreach efforts to enhance coordination with public and private housing and social service agencies through social media platforms such as Facebook, Twitter, NextDoor, etc.

Discussion
In the implementation of the 2024-2025 Annual Action Plan, the City will invest CDBG and HOME resources to address obstacles to meeting underserved needs, foster and maintain affordable housing, reduce leadbased paint hazards, reduce the number of poverty-level families, develop institutional structure, and enhance coordination between public and private housing and social service agencies.

City of Hawthorne - 47 - 24-25 Annual Action Plan
Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction
In the implementation of programs and activities under the 2024-2025 Annual Action Plan, the City of Hawthorne will follow all HUD regulations concerning the use of program income, forms of investment, overall low- and moderate-income benefit for the CDBG program and recapture requirements for the HOME program.

Eligible applicants for CDBG assistance include organizations that carry out programs that benefit low- and moderate-income residents on behalf of the City. Applications from interest organizations are solicited by the City via a published Notice of Funding Availability (NOFA). Eligible beneficiaries for HOME funded resale programs include households earning less than 80 percent of AMI. Developers for HOME-assisted housing projects shall be selected via an application and underwriting process determined by the City based on the nature, scope, and applicable regulatory requirements of the prospective project. Opportunities for leveraging and matching funds shall be emphasized in the selection of affordable housing developers.

Selection of affordable housing development projects shall be based on project feasibility, funding availability, and the City needs as determined by staff and the City Council.

Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0

2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0

3. The amount of surplus funds from urban renewal settlements 0

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0

5. The amount of income from float-funded activities 0
Total Program Income: 0
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Other CDBG Requirements

1. The amount of urgent need activities 0

2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan.

70.00%
HOME Investment Partnership Program (HOME)
Reference 24 CFR 91.220(l)(2)

1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows:

The City will not use any other forms of investment beyond those identified in Section 92.205.

2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows:

During the 2024-2025 program year, the City of Hawthorne will implement an acquisition, rehabilitation and resale project which will incorporate recapture requirements into written agreements and long-term affordability covenants as required by 24 CFR 92.254.

The recapture provision ensure that all or a portion of the City’s HOME assistance to homebuyers or home owners is recaptured if the housing does not continue to be the principal residence of the family for the duration of the applicable period of affordability. In establishing this provision, the City is subject to the limitation that when the recapture requirement is triggered by a sale (voluntary or involuntary) of the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the HOME investments due, the City can only recapture a portion of the net proceeds, if any. The net proceeds that are the sales price minus superior loan repayment (other than HOME funds), capital improvements, and any closing costs.

In the event of a mortgage default, the City has the right of first refusal before foreclosure and may use additional HOME funds to acquire the housing in order to preserve the housing’s affordability. However, notwithstanding a foreclosure situation, the City intends to recapture all or some of its HOME funds invested during or at the end of the established affordability period, if practicable. Recaptured HOME funds consist of loan payments (including interest) and/or a loan payoff, upon sale if the assisted owner is no longer residing in the assisted residence or for any other breaches of the agreement with the City.

Recaptured funds may be used for any HOME eligible activity.

These recaptured funds are identified in the City’s accounting system by a unique recaptured revenue object number. Any recaptured funds will be used by the City before any additional HOME funds.

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3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows:

See above.

4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows:

The City does not intend to use HOME funds under the 2024-2025 Annual Action Plan to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds.

Discussion

APPENDIX A
Citizen Participation
Summary of Citizen Participation Comments
In compliance with the City’s approved Citizen Participation Plan and implementing regulation 24 CFR

91.105, a public notice was published to solicit public comments from interested residents regarding the draft 2024-2025 Action Plan. The draft Action Plan was made available to the public for a period of 30 days to provide an opportunity for the public to review the document.

The public hearing to solicit public input and comment on the housing and community development needs, proposed projects, and activities in the Action Plan, as well as proposed strategies for affirmatively furthering fair housing was held at the Hawthorne City Council Chambers at 4455 W. 126th Street, Hawthorne, 90250 on April 23, 2024.

The following is a summary of Citizen Participation comments:
• Comments received will be entered here prior to submission to HUD.

APPENDIX B
Grantee Unique Appendices

APPENDIX C
SF-424, SF-424D, & Certifications
SF-424, SF-424D, & Certifications
Upon approval of the City’s 2024-2025 Action Plan, the SF-424, SF-424D, and Certifications for the Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) programs will be included in Appendix C prior to the City’s submission to HUD.

COMMUNITY DEVELOPMENT

BLOCK GRANT (CDBG) AND

HOME INVESTMENT

PARTNERSHIPS (HOME)

PROGRAMS
DRAFT 2024-2025 ACTION PLAN
AMENDMENT TO 2021-2022 HOME-ARP ALLOCATION PLAN
AMENDMENT TO 2020-2024 CONSOLIDATED PLAN
APRIL 23, 2024

PUBLIC HEARING
TOPICS
§ BACKGROUND
§ RESOURCES
§ ACTION PLAN
§ RECOMMENDATION

BACKGROUND

CDBG AND HOME
Presented By: LDM ASSOCIATES, INC. 4

BACKGROUND
The Community Development Block Grant
(CDBG) and HOME Investment Partnerships
(HOME) programs are administered by the
U.S. Department of Housing and Urban
Development (HUD).

HUD provides annual grants on a formula
basis to cities like Hawthorne to carry out
eligible housing, community and economic
development activities.

Presented By: LDM ASSOCIATES, INC. 5

BACKGROUND
2020-2024
Consolidated
Plan
Affordable
Housing
Public Services
Fair Housing
Services
Public Facilities
and
Infrastructure
Improvements
Economic
Development
Opportunities
COVID-19
Response
2020-2024 Consolidated Plan
2020-2021 Action Plan
2021-2022 Action Plan
2022-2023 Action Plan
2023-2024 Action Plan
2024-2025 Action Plan

RESOURCES
CDBG, HOME, HOME-ARP, AND SECTION 108 LOAN
Presented By: LDM ASSOCIATES, INC. 7

ENTITLEMENT RESOURCES
CDBG HOME Total
Grant Amount $1,215,028.00 $635,813.00 $1,850,841.00
Prior Year Funds $806,910.13 $4,490,956.12 $5,297,866.25 Total $2,021,938.13 $5,126,769.12 $7,148,707.25
Presented By: LDM ASSOCIATES, INC. 8

SPECIAL ALLOCATION RESOURCES
HOME-ARP Section 108 Loan Total
Amount $2,166,698.00 $5,740,140.00 $7,906,838.00

ACTION PLANS

PROPOSED USES OF CDBG, HOME, HOME-ARP, AND
SECTION 108 LOAN GUARANTEE FUNDS
Presented By: LDM ASSOCIATES, INC. 10

CDBG & HOME NOFA
NOFA &
Outreach
• Written public notice
• Direct emails to 35 non-profit organizations (16 agencies returned read receipts) • NOFA Workshop and applicant technical assistance (2 agencies attended) Applications
Received
• Received 7 applications
• 6 service providers
• 1 Fair Housing application (mandatory)
Eligibility
Review
• City staff review
• Reviewed based on eligibility, need, organizational capacity, funding amount requested and proposed accomplishments
Presented By: LDM ASSOCIATES, INC. 11

CDBG OVERVIEW
Administration
Public Services Capital
Improvements
Administration
Public Services
Capital Improvements
Presented By: LDM ASSOCIATES, INC. 12

PROPOSED CDBG ACTIVITIES
Administration $243,005.00
• City of Hawthorne: CDBG Program Administration ($213,005.00) • Housing Rights Center: Fair Housing Services ($30,000.00) – 250 people Public Services $182,254.00
• South Bay Workforce Investment Board: Teen Center ($96,150.00) – 90 youth • New Star Family Justice Center: Domestic Violence Program ($22,500.00) – 23 people • Family Promise of the South Bay: Housing Stabilization Services ($20,000.00) – 25 people • Catholic Charities of Los Angeles: St. Margaret’s Emergency Assistance ($22,604.00) – 140 people • The Richstone Family Center: Behavioral Health Services ($21,000.00) – 24 people Capital $1,596,679.13.00
• City of Hawthorne: Section 108 Loan Repayment ($355,074.00) • City of Hawthorne: Housing Rehabilitation Program ($430,000.00) – 10 Housing Units/ Households • City of Hawthorne: Public Housing Modernization ($200,000.00) – 36 Housing Units / Households • City of Hawthorne: Acquisition and Rehabilitation ($611,605.13) - TBD Presented By: LDM ASSOCIATES, INC. 13

HOME OVERVIEW
Administration
CHDO
Housing
Administration
CHDO
Housing
Presented By: LDM ASSOCIATES, INC. 14

PROPOSED HOME ACTIVITIES
$63,581.00 Administration
• City of Hawthorne: HOME Program Administration ($63,581.00) CHDO $472,407.00
• City of Hawthorne: Community Housing Development Organization Set-Aside ($472,407.00) Housing $4,590,781.12
• City of Hawthorne: Acquisition, Rehabilitation, and Resale ($1,600,000.00) – 2 Households / Housing Units
• City of Hawthorne: Homebuyer Assistance ($350,000.00) – 1 Household • City of Hawthorne: Rental Rehabilitation ($2,640,781.12) – 18 Households / Housing Units Presented By: LDM ASSOCIATES, INC. 15

HOME-ARP OVERVIEW
Administration
Non-Profit
Assistance
Housing
Services
Administration
Non-Profit Assistance
Housing Services
Presented By: LDM ASSOCIATES, INC. 16

PROPOSED HOME-ARP ACTIVITIES
$325,004.00 Administration
• City of Hawthorne: HOME-ARP Program Administration ($325,004.00) $1,841,694.00 Services
• Supportive Services ($1,841,694.00)
Presented By: LDM ASSOCIATES, INC. 17
SECTION 108 LOAN GAURANTEE OVERVIEW
Annual
CDBG
Allocation
Existing
Loan
Balance
Borrowing
Authority
Presented By: LDM ASSOCIATES, INC. 18
PROPOSED SECTION 108 LOAN ACTIVITIES
Activities $5,740,140
• City of Hawthorne: Senior Center ($3,300,000) – 6,335 seniors • City of Hawthorne: Ramona Park ($700,000) – 18,030 people • City of Hawthorne: Jim Thorpe Baseball Field ($500,000) – 36,735 people • City of Hawthorne: Eucalyptus Park ($1,240,140) – 29,120 people

RECOMMENDATION

NEXT STEPS
Presented By: LDM ASSOCIATES, INC. 20

RECOMMENDATION
Conduct a public hearing to receive comments on the draft 2024-2025 Action Plan for the use of CDBG and HOME funds, substantial amendment to 2021- 2022 HOME-ARP Allocation Plan, and 2020-2024 Consolidated Plan.

Adopt the 2024-2025 Action Plan, 2021-2022 HOME-ARP Allocation Plan, and 2020-2024 Consolidated Plan and authorize the submittal of the plans and any necessary documents to HUD before May 15, 2024 deadline Provide City staff with a methodology for distributing funds should the City’s annual allocation increase or decrease
Authorize the appropriation of funds for the 2024-2025 CDBG and HOME programs

AGENDA ITEM NO. 9

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of April 23, 2024
Originating Department: Public Works
City Manager: __________
Vontray Norris
Dir. of Public Works: ___________
Akbar Farokhi
SUBJECT:

Construction of Speed Humps on Broadway from Inglewood Ave to Grevillea Ave, Eucalyptus Ave from Broadway to El Segundo Blvd and 119th St from Atkinson Ave to Van Ness Ave RECOMMENDED MOTION:

Staff recommends that the City Council approve installation of speed humps on Broadway from Inglewood Ave to Grevillea Ave, Eucalyptus Ave from Broadway to El Segundo Blvd and 119th St from Atkinson Ave to Van Ness Ave
DISCUSSION:

Per the direction of City Council, Staff has prepared an agenda bill to install speed humps on Broadway from Inglewood Ave to Grevillea Ave, Eucalyptus Ave from Broadway to El Segundo Blvd and 119th St from Atkinson Ave to Van Ness Ave.

Six speed humps will be installed on Broadway from Inglewood Ave to Grevillea Ave. This portion of Broadway is near three schools: Hawthorne Math & Science Academy, Eucalyptus Elementary School and Hawthorne High School. This area has a high volume of students walking to and from each of these schools. With the recent conversion of 126th Street from Hawthorne Blvd to Grevillea Ave to a one-way westbound street, traffic is being diverted onto Broadway.

Two speed humps will be installed on Eucalyptus Ave from Broadway to El Segundo Blvd. The traffic volume for this area is 700 vehicles. This portion of Eucalyptus Ave is one block away from Hawthorne High School and south of Eucalyptus Elementary School, which have a high volume of students.

Seven speed humps will be installed on 119th St from Atkinson Ave to Van Ness Ave. Cimarron Elementary School is in the vicinity of 119th St. The traffic volume for this area is 648 vehicles.

Additionally, the traffic data demonstrates that motorists are using 119th St to Crenshaw Blvd to access the I-105 freeway.

Speed hump installation is recommended for all of these locations to reduce speed and collisions and increase safety.

The work will consist of cold-planing, asphalt paving, construction of speed humps, pavement markings, and installation of warning signs.

ECONOMIC DEVELOPMENT STRATEGIC PLAN:

The installation of these speed humps will enhance the quality of life for residents and visitors when traveling on City streets.

FISCAL IMPACT:

None. Funds for the construction and installation of a total of 15 speed humps in the amount of $45,000 are available in the adopted Fiscal Year 2023-2024 budget and will be paid for with approved and allocated Gas Tax Funds.

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

1. Speed Hump Location Maps

AGENDA ITEM NO. 10

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of April 23, 2024
Originating Department: Finance
City Manager: __________
Vontray Norris
Dir. of Finance: ___________
Felice Lopez
SUBJECT:

Receive and file the Single Audit Report for FY 2022-2023.

RECOMMENDED MOTION:

Staff recommends that the City Council receive and file the Single Audit Report for FY 2022-2023.

DISCUSSION:

The City's independent auditors, Rogers, Anderson, Malody & Scott, LLP, have completed their annual audit of the City's fiscal activities for the fiscal year ended June 30, 2023. The annual Single Audit Report is being submitted for the City Council's review and approval. The Single Audit Report was submitted to the Federal Audit Clearinghouse and State Controller's Office by the March 31, 2024, deadline.

The Single Audit Report is required for all federal and state funded programs. These programs are audited in conformity with the provisions of the Single Audit Act of 1984 and the U.S. Office of Management and Budget (OMB) Circular A-133, Audits and State and Local Governments. The auditors did not identify any deficiencies in internal control over compliance that are considered to be material weaknesses. No findings were identified.

FISCAL IMPACT:

None.

NOTICING PROCEDURES:
72 hours posted notice pursuant to the Ralph M. Brown Act

ATTACHMENT(S):

1. 2023 Single Audit Report
City of Hawthorne, California
Single Audit Report on Federal Awards
Year Ended June 30, 2023
City of Hawthorne
Single Audit Report on Federal Awards
Table of Contents
Page
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards .......................................................... 1 Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required in Accordance with the Uniform Guidance .......................................................... 3 Schedule of Expenditures of Federal Awards ........................................................................... 7 Notes to the Schedule of Expenditures of Federal Awards ...................................................... 8 Schedule of Findings and Questioned Costs:

Section I: Summary of Auditor's Results ............................................................................. 9 Section II: Financial Statements Findings ......................................................................... 10 Section III: Federal Awards Findings and Questioned Costs ............................................ 10

Summary Schedule of Prior Audit Findings ............................................................................ 11 -1-

REPORT ON INTERNAL CONTROL OVER FINANCIAL

REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS

PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable City Council
City of Hawthorne
Hawthorne, California
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Hawthorne (the City) as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated January 29, 2024.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
-2-
Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies.

Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the city’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

San Bernardino, California
January 29, 2024
-3-

REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL
PROGRAM; REPORT ON INTERNAL CONTROL OVER
COMPLIANCE; AND REPORT ON SCHEDULE OF

EXPENDITURES OF FEDERAL AWARDS IN ACCORDANCE

WITH THE UNIFORM GUIDANCE
Independent Auditor’s Report
To the Honorable City Council
City of Hawthorne
Hawthorne, California
Report of Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Hawthorne’s (the City) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2023. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2023.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.
-4-
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City’s federal programs.

Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.
 Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
 Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

-5-
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon, dated January 29, 2024, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements and certain additional procedures including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America.
-6-
In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

San Bernardino, California
March 27, 2024 (except for our report on the Schedule of Expenditures of Federal Awards, for which the date is January 29, 2024)
City of Hawthorne
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2023
See accompanying notes to the schedule of expenditures of federal awards. -7-
Federal Grantor/ Assistance Agency or Amount
Pass-Through Grantor/ Listing Pass-Through Federal Provided to Program Title Number Number Expenditures Subrecipients
U.S. Department of Housing and Urban Development
Direct Assistance:

Community Development Block Grant Cluster 14.218 B-09-MC-06-0519 565,249 $ 139,514 $ COVID-19 CARES Act - CDBG 14.218 Various 806,118 -
Total - Community Development Block Grant Cluster 1,371,367 139,514 Home Investment Partnership Program (HOME) 14.239 M-09-MC-06-0513 42,327 - Total - Assistance Listing 14.239 - 42,327
CDBG 108 Guaranteed Loan 14.248 Various 360,573 -
Total - Assistance Listing 14.248 - 360,573
Housing Assistance Payment Program Section 8 14.871 HAPP Various 9,181,779 - Passed through the County of Los Angeles and Other Cities:

Housing Assistance Payment Program Section 8 14.871 Various 2,475,677 - Total - Assistance Listing 14.871 - 11,657,456
Total U.S. Department of Housing and Urban Development 13,431,723 139,514 U.S. Department of Justice
Direct Assistance:

Equitable Sharing Program 16.922 CA0192800 1,229,729 -
Total - Assistance Listing 16.922 - 1,229,729
Total U.S. Department of Justice - 1,229,729
U.S. Department of Transportation
Direct Assistance:

Federal Aviation Administration:

Airport Rescue Grant 20.106 3-06-0101-022-2021 185
Taxiway Rehab Project 21 20.106 3-06-0101-021-2021 132,181 Airport Improvement Program - Noise Study (Part 150) 20.106 3-06-0101-015-2015 108 - Total - Assistance Listing 20.106 - 132,474
Passed through the State of California Office of Traffic Safety:

Highway Safety Cluster
Selective Traffic Enforcement Program 20.600 PT20057 230,009 - Selective Traffic Enforcement Program 20.600 MC20003 89,823 - Total - Highway Safety Cluster - 319,832
Total U.S. Department of Transportation - 452,306
U.S Department of Treasury
Direct Assistance:

Equitable Sharing Program 21.016 CA0192800 956,252
Total - Assistance Listing 21.016 - 956,252
American Rescue Plan Act 21.027 UNK 8,472,519 -
Total - Assistance Listing 21.027 - 8,472,519
Total U.S. Department of Treasury - 9,428,771
U.S. Department of Homeland Security
Direct Assistance:

Robert T. Stafford Disaster Relief and Emergency Assistance Act COVID-19 Reimbursable Emergency Protective Measures 97.036 UNK 107,263 - Total - Assistance Listing 97.036 - 107,263
Emergency Food & Shelter National Board Program 97.024 UNK 70,980 - Total - Assistance Listing 97.024 - 70,980
Urban Area Security Initiative (UASI) - 2020 97.067 UNK 76,193 - Total - Assistance Listing 97.067 - 76,193
Building Resilient Infrastructure and Communities (BRIC) 97.047 UNK 29,954 - Total - Assistance Listing 97.047 - 29,954
Total U.S Department of Homeland Security 284,390 -
Total Expenditures of Federal Awards 24,826,919 $ 139,514 $ City of Hawthorne
Notes to the Schedule of Expenditures of Federal Awards Year Ended June 30, 2023
-8-
NOTE 1: BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal award activity of the City of Hawthorne (the City) that are reimbursable under federal programs of the federal government for the year ended June 30, 2023. The information in this SEFA is presented in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the SEFA presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position or fund balance, or cash flows of the City. For the purposes of this schedule, federal financial assistance includes both federal financial assistance received directly from a federal agency, as well as federal funds received indirectly by the City from a nonfederal agency or other organization. Only that portion of program expenditures reimbursable with such federal funds are reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with state, local or other non-federal funds are excluded from the accompanying schedule.

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the SEFA are reported on the modified accrual basis of accounting.

Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the SEFA, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The City has elected to use the 10-percent de minimis indirect cost rate, where applicable, allowed under the Uniform Guidance.

NOTE 3: SUBRECIPIENTS
During the fiscal year ended June 30, 2023, the City disbursed $139,514 of federal awards to several subrecipients.

City of Hawthorne
Schedule of Findings and Questioned Costs
Year Ended June 30, 2023
-9-
Section I - Summary of Auditor's Results
Financial Statements
Internal control over financial reporting:

Material weakness identified? Yes X No
Significant deficiencies identified
that are not considered to be
material weaknesses? Yes X None Reported
Noncompliance material to financial
statements noted? Yes X No
Federal Awards
Internal control over major programs:

Material weakness identified? Yes X No
Significant deficiencies identified
that are not considered to be
material weaknesses? Yes X None Reported
Any audit findings disclosed that
are required to be reported in
accordance with 2 CFR 200.516(a)? Yes X No
Identification of major programs:

Assistance Listing Number

14.871

16.922

21.016

21.027
Dollar threshold used to distinguish
between type A and type B programs: $750,000
Auditee qualified as low-risk auditee? X Yes No
Type of auditor's report issued on compliance for major programs: Unmodified Name of Federal Program
Type of report the auditor issued on whether the financial statements audited were prepared in accordance with GAAP: Unmodified
Housing Assistance Payment Program Section 8
Equitable Sharing Program
Equitable Sharing Program
American Rescue Plan Act
City of Hawthorne
Schedule of Findings and Questioned Costs (continued)
Year Ended June 30, 2023
-10-
Section II: Financial Statement Findings
No findings to be reported.

Section III: Federal Awards Findings and Questioned Costs No findings to be reported.

City of Hawthorne
Summary Schedule of Prior Audit Findings
Year Ended June 30, 2023
-11-
Financial Statement Findings
Finding 2022-001 Significant Deficiency
Corrective action was appropriately taken by the City.

Federal Awards Findings and Questioned Costs
Finding 2022-002 Noncompliance
Corrective action was appropriately taken by the City.

AGENDA ITEM NO. 11

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of April 23, 2024
Originating Department: Public Works
City Manager: __________
Vontray Norris
Dir. of Public Works: ___________
Akbar Farokhi
SUBJECT:

Progress Payment #1 in the amount of $123,500.00 due to Pardess Air Inc of Los Angeles, CA for Hawthorne Memorial Center HVAC System Upgrade (Project #23-08).

RECOMMENDED MOTION:

Staff recommends that the City Council approve this Progress Payment #1 to Pardess Air Inc of Los Angeles, CA
DISCUSSION:

This project includes providing 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
The work consists of engineering, designing, procuring, permitting and installing: a new chiller (127 TR), chilled water pumps and piping, new VAV AHUs, new DDC controls system, new emergency generator and fuel storage, 5-year maintenance contract and properly remove/dispose of all existing equipment.

ECONOMIC DEVELOPMENT STRATEGIC PLAN:

This HVAC system upgrade can contribute to our economic strategic plan in several ways. For example, the new HVAC system will be one large centralized unit instead of the existing 3-unit system which will help better cool/heat the community center and be more energy efficient. This project will improve the City’s infrastructure and allow the Community Service Department to provide a better environment for their courses/rentals.

FISCAL IMPACT:

None. Funds for this progress payment in the amount of $123,500.00 will be paid for with funds 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. Progress Payment #1

AGENDA ITEM NO. 12

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of April 23, 2024
Originating Department: Housing
City Manager: __________
Vontray Norris
Dir. of Housing: ___________
Kimberly Mack
SUBJECT:

Bridge of Hope Community Housing (BHCH) Citigaurd Professional Services Agreement First Amendment
RECOMMENDED MOTION:

1. Approve the Professional Services Agreement first amendment with Citiguard for the period of one year from 03/15/2024 to 03/15/2025 to provide professional services necessary to operate the BHCH site.

2. Authorize the City Manager, or designee, to execute, amend, and keep record of documents necessary to administer the Fiscal Year 2024-2025 Professional Services Agreement with Citiguard.

3. Authorize the Department of Finance to amend create a blanket purchase order for Citiguard not to exceed $215,796 in administrative fees.

DISCUSSION:

On March 28, 2023, the Council approved a Professional Services Agreement with Citiguard for BHCH site security. It is time to amend the agreement with an updated Scope of Work and change in rates. The proposal reflects a 3% increase in fees.

ECONOMIC DEVELOPMENT STRATEGIC PLAN:

None.

FISCAL IMPACT:

None.

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

1. Citiguard Proposal 2024

2. Citiguard Professional Services Agreement (Reference only) Confidential Information|
323-948-7691 | www.Citiguardinc.com

BRIDGE OF HOPE COMMUNITY HOUSING
RFP: BRIDGE HOUSING SITE SECURITY

COST PROPOSAL FOR

CITY OF HAWTHORNE
Sites: 3200 W 131st St, Hawthorne, CA 90250
Duties: two-phase project:
1) Development of an Operations and Security Plan: Citiguard will work with the City of Hawthorne to develop an approved Operations and Security Plan that outlines how the site will be monitored and ensures all residents’ safety. The Plan will include program policies and procedures, participant eligibility criteria, program intake and exit procedures, site oversight responsibilities, staffing levels, qualifications, and schedule.
2) Operation of the Site: Citiguard will operate the site according to the approved Operations and Security Plan. In general, operations and security activities will include but are not limited to identifying and screening participants, staff and visitors daily.
*NOTE -- Price of Security Guard per hour includes all Key Personnel assigned to project. Citiguard uses NO sub-consultants or sub-contractors.

Type of Security Service Unarmed
Number of Security Guards 1
Days of Service Monday - Sunday
Hours of Service Twenty-four (24)
Cost Per Hour $24.72
Total Service Days Per Week Seven (7)
Total Service Hours Per Day Twenty-four (24)
Total Service Hours Per 7 Day Week
Schedule
168
Total Cost Per Month
Total Cost for 1 Year
$17,983.00
$215,796.00

AGENDA ITEM NO. 13

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of April 23, 2024
Originating Department: Public Works
City Manager: __________
Vontray Norris
Dir. of Public Works: ___________
Akbar Farokhi
SUBJECT:

Progress Payment #4 in the amount of $606,835.80 due to Klassic Engineering & Construction, Inc of Orange, CA for Hawthorne Housing Rehabilitation of City Owned Properties 2023 (Project #23-09)
RECOMMENDED MOTION:

Staff recommends that the City Council approve this Progress Payment #4 to Klassic Engineering & Construction Inc of Orange, CA.

DISCUSSION:

This project includes providing all services, labor, materials, permits, insurance, tools and equipment needed, in accordance with the Specifications to successfully and safely complete the interior renovations to all units at six (6) City of Hawthorne owned buildings located at 11605 Gale Ave, 12720 - 12726 Grevillea Ave, 11529 Gale Ave, 11537 Gale Ave and 12529 Truro Ave, Hawthorne, CA 90250. The work to be done includes but is not limited to: removal of all carpet and installing vinyl flooring, removal and replacement of all water heaters, wall heaters, heating vents, new windows/window screens, interior and entry doors, garage doors upgrade, restroom remodels, electrical, mechanical and plumbing upgrades, painting, patch work, etc.

As of March 31st, 2024, Klassic engineering & Construction (KEC) has completed ~47% of the projects scope of work. KEC has begun remodeling 5 units: 2 units at 11529 Gale Ave, 1 Units at 11537 Gale Ave, 2 units at 11605 Gale Ave and 1 unit at 12720-12726 Grevillea Ave. Remodeling consist of but not limited to: removing/replacing carpet to vinyl flooring, remove/replace kitchen cabinet, sink, range and stove, installing new light fixtures through the units, patch and stucco walls, removing/replacing windows and all doors. Work also consist of removing/replacing bath

tub, toilet, faucet, flooring and new tile for bathtub.

ECONOMIC DEVELOPMENT STRATEGIC PLAN:

Implementing this rehabilitation project on city-owned properties contributes to our economic strategic plan in several ways. For example, by stimulating local economy. Housing rehabilitation projects require hiring contractors, suppliers, and laborers, which injects money into the local economy and creating job opportunities. This project will also increase property value. By having well-maintained properties with functional, aesthetically pleasing, and modern amenities, the properties tend to have higher market value. By investing in these housing rehabilitations, the city can improve the condition of its properties and attract more potential tenants. City owned properties with well-maintained units and structures contribute to the overall livability and attractiveness of the community. This can help attract businesses, residents, and investors, boosting economic growth and revitalizing neighborhoods. A visually appealing and structurally sound housing can create a positive impression of the city's commitment to infrastructure maintenance and development.

In addition, by addressing housing unit’s issues promptly, the City can avoid more extensive structure repairs, which can be significantly costlier. This proactive approach to maintenance helps save public funds and ensures efficient use of resources. By investing in housing rehabilitation on city owned properties, we contribute to our economic strategic plan by fostering economic activity, increasing property values, saving costs, and attracting investment.

FISCAL IMPACT:

None. Funds for this progress payment in the amount of $606,835.80 will be funded through the allocated and approved Home Funds, CPF, and ARPA
NOTICING PROCEDURES:
72 hours posted notice pursuant to the Ralph M. Brown Act ATTACHMENT(S):

1. Progress Payment #4

2. Klassic Engineering & Construction (KEC) Invoice

Klassic Engineering & Construction Inc.-Hawthorne Housing Rehabilitation of City Owned Properties AIA Document G702, APPLICATION AND CERTIFICATION FOR PAYMENT, containing PROJECT NO.: #23-09 CONTRACT NO.:

APPLICATION NO:

APPLICATION DATE:

PERIOD FROM:
4 4/12/2024
4/1/2024
Contractor's signed certification is attached.

In tabulations below, amounts are stated to the nearest dollar.

Use Column I on Contracts where variable retainage for line items may apply.

Hawthorne Rehabition MUNIS CODE NO.:

PERIOD TO: 4/30/2024

A B C D E F G H I J
ITEM
NO.

DESCRIPTION OF WORK Quantity Unit price SCHEDULED
VALUE

WORK COMPLETED MATERIALS

PRESENTLY STORED
(NOT IN

TOTAL COMPLETED

AND STORED TO
DATE
%
(G ÷ C)

BALANCE TO

FINISH (C - G)

RETAINAGE (IF VARIABLE
RATE)

FROM PREVIOUS THIS PERIOD
APPLICATION D OR E) (D+E+F)
12720 Grivellea Avenue/12726 Grevillea Avenue-Following Bid Line Items (1-4) Exterior Staircase Railing Paint and Install new 2” wide safety walk step tape contrast to existing step color on all steps on outside staircases. 1 $3,500.00 $3,500.00 $0.00 $0.00 $0.00 0.00% $3,500.00 $0.00 1 $0.00
$0.00
$0.00
$0.00
2 3
4 Replace All Entry Door Assembly
Replace All Water Heater Enclosure Doors
Replace All Individual Mailboxes
28 8
8 $350.00
$100.00
$50.00
$9,800.00
$800.00
$400.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

0.00%

0.00%

0.00%
$9,800.00
$800.00
$400.00
$0.00
$0.00
$0.00
12720 Grivellea Avenue: Units A,B,D Line Items 5-21)
5 6
7 8
Pest Control 1
1 13
7 4
$1,000.00
$1,500.00
$100.00
$750.00
$3,000.00
$1,000.00
$1,500.00
$1,300.00
$5,250.00
$12,000.00
$0.00 $0.00 $0.00
$0.00
$0.00
$0.00
$0.00
$0.00 0.00% $1,000.00
$1,100.00
$1,100.00
$4,500.00
$6,500.00
$0.00
$20.00
$10.00
$37.50
$275.00
Clean Building Drain and Waste Piping
Smoke Detectors and Monoxide Detectors
Disconnect Existing Old Wall Gas/Floor Heater
Install Wall Heater – Dual Wall 50,000 BTU, Update Water Heater Connections
$0.00
$0.00
$0.00
$0.00
$400.00
$200.00
$750.00
$400.00 26.67%
$200.00 15.38%
$750.00 14.29%
$5,500.00 45.83%
9 10
11 $5,500.00
$14,000.00
$0.00
General Drywall Repairs
Replace Doorbell
Repair Electrical Wiring, Install New Electrical Receptacles & Switches, and Ground Fault Circuit Interrupter
20000
4 1
$7.00
$100.00
$16,000.00
$140,000.00
$400.00
$16,000.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$14,000.00 10.00%
$0.00
$5,000.00 31.25%
$126,000.00
$400.00
$11,000.00
$700.00
$0.00
$250.00

0.00%
12 $5,000.00
Replace Light Fixture with New Ceiling Fan and Replace Ceiling Light Fixtures 17 $650.00 $11,050.00 $0.00 $0.00 $0.00 0.00% $11,050.00 $0.00 13 14
$0.00
Install New Water Heater 6 $0.00
4 $1,000.00
$15,000.00
$6,000.00
$60,000.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

0.00%

0.00%
$6,000.00
$60,000.00
$0.00
Kitchen – Drywall, Painting, Patch Work, Removal of Kitchen Cabinets, $0.00 Countertops, Backsplash, Faucet, Sink, Garbage Disposal, Flooring, Under Sink Plumbing, Electrical System Wiring, Exhaust Range Hood, New Gas Range, Appliances and Accessories
15 $0.00
Bathroom – Drywall, Exhaust Fan, Vanity/Mirror/Medicine Cabinet, Countertop, Faucet, Toilet, Tub/Shower, Shower Fixture, Flooring, Accessories, Light Fixture, Electrical System Wiring, Painting. 4 $7,500.00 $30,000.00 $0.00 $0.00 $0.00 0.00% $30,000.00 $0.00 16 17
18 19
$0.00
$500.00
$7,000.00
$60,000.00
Remove/Dispose all existing interior passage doors and Install New Passage Interior Paint – All Rooms
Install New Vinyl Plank Flooring and Carpet Replacement Install New Windows: Windows, Window Frames, and Window Coverings Replacement
10 $250.00
$2.00
$12.00
$750.00
$2,500.00
$40,000.00
$240,000.00
$26,250.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$500.00 20.00%
$7,000.00 17.50%
$60,000.00 25.00%
$2,000.00
$33,000.00
$180,000.00
$26,250.00
$25.00
$350.00
$3,000.00
$0.00
20000
20000
35 $0.00 0.00%
20 21
$0.00
$0.00 No Work Necessary for this Unit 0 $0.00 $0.00 $0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00 12726 Grivellea Avenue-All Units A, B, C, and D-Line Items (22-37) 22 23
24 Pest Control 1
1 13
7 $2,000.00
$3,000.00
$100.00
$2,000.00
$3,000.00
$1,300.00
$5,250.00
$500.00
$600.00
$500.00
$750.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$500.00 25.00%
$600.00 20.00%
$500.00 38.46%
$750.00 14.29%
$1,500.00
$2,400.00
$800.00
$25.00
$30.00
$25.00
$37.50
Clean Building Drain and Waste Piping
Smoke Detectors and Monoxide Detectors
Disconnect Existing Old Wall Gas/Floor Heater $750.00 $4,500.00 25 $0.00
Install Wall Heater – Dual Wall 50,000 BTU, Update Water Heater Connections
4 $3,000.00 $12,000.00 $750.00 $0.00 $750.00 6.25% $11,250.00 $37.50 26 27
28 $0.00
$0.00
$0.00
General Drywall Repairs
Replace Doorbell
20000 $7.00
$100.00
$140,000.00
$400.00
$3000.00
$100.00
$0.00
$0.00
$0.00
$3,000.00 2.14% $137,000.00
$300.00
$150.00
4 $5.00
1 $100.00 25.00%
Repair Electrical Wiring, Install New Electrical Receptacles & Switches, and $5,000.00 25.00% Ground Fault Circuit Interrupter
$20,000.00 $20,000.00 $5000.00 $15,000.00 $250.00
29 $0.00

A B C D E F G H I J
ITEM
NO.

DESCRIPTION OF WORK Quantity Unit price SCHEDULED
VALUE

WORK COMPLETED MATERIALS

PRESENTLY

STORED (NOT IN STORED TO DATE
D OR E) (D+E+F)
TOTAL
COMPLETED AND (G ÷ C)
% BALANCE TO

FINISH (C - G)

RETAINAGE (IF

VARIABLE RATE)

FROM THIS PERIOD

PREVIOUS

APPLICATION
Replace Light Fixture with New Ceiling Fan and Replace Ceiling Light Fixtures 17 $650.00 $11,050.00 $4,000.00
$60,000.00
$1500.00
$1000.00
$15000.00
$0.00
$0.00
$0.00
$1,500.00 13.57% $9,550.00
$3,000.00
$45,000.00
$75.00
30 $0.00
Install New Water Heater 4 $0.00
4 $1,000.00 $1,000.00 25.00%
$15,000.00 25.00%
$50.00
31 Kitchen – Drywall, Painting, Patch Work, Removal of Kitchen Cabinets, Countertops, Backsplash, Faucet, Sink, Garbage Disposal, Flooring, Under Sink Plumbing, Electrical System Wiring, Exhaust Range Hood, New Gas Range, Appliances and Accessories
$15,000.00 $750.00
32 33
$0.00
$0.00
Bathroom – Drywall, Exhaust Fan, Vanity/Mirror/Medicine Cabinet, Countertop, Faucet, Toilet, Tub/Shower, Shower Fixture, Flooring, Accessories, Light Fixture, Electrical System Wiring, Painting.

Remove/Dispose all existing interior passage doors and Install New Passage Doors
4 9
$7,500.00
$250.00
$30,000.00
$2,250.00
$7500.00
$500.00
$0.00
$0.00
$7,500.00 25.00%
$500.00 22.22%
$22,500.00
$1,750.00
$375.00
$25.00
34 35
36 $0.00
$0.00
$0.00
Interior Paint – All Rooms 20000
20000
20 $2.00
$12.00
$750.00
$40,000.00
$240,000.00
$15,000.00
$3000.00
$3600.00
$5000.00
$0.00
$0.00
$0.00
$3,000.00
$3,600.00

7.50%

1.50%
$37,000.00
$236,400.00
$10,000.00
$150.00
$180.00
$250.00
Install New Vinyl Plank Flooring and Carpet Replacement Install New Windows: Windows, Window Frames, and Window Coverings Replacement
$5,000.00 33.33%
37 $0.00
12529 Truro Avenue -All Units A, B, C-Line Items (38-67) 38 39
40 Repair Handrails
Replace Doorbell
1 3
150
100
$1,500.00
$100.00
$15.00
$1,500.00
$300.00
$2,250.00
$5,500.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

0.00%

0.00%

0.00%

0.00%
$1,500.00
$300.00
$2,250.00
$5,500.00
$0.00
$0.00
$0.00
$0.00
Paint Exterior Plaster Surfaces for Detached Car Garage Repair PCC Concrete Slab to Drain Away From Structure by Gas Meters $55.00 41 42
43 44
$0.00
$0.00
$0.00
$0.00
Repair Rear and Side PCC Steps
Repair Wrought Iron Gate and Railing
Install New Entry Doors and Install New Security Screen Door & Door Lock Install New Windows: Windows, Window Frames, and Window Coverings Replacement
1 1
5 30
$1,500.00
$2,500.00
$2,500.00
$250.00
$1,500.00
$2,500.00
$12,500.00
$7,500.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

0.00%

0.00%

0.00%

0.00%
$1,500.00
$2,500.00
$12,500.00
$7,500.00
$0.00
$0.00
$0.00
$0.00
45 $0.00
Install New Exterior Security Light Fixtures, Replace Light Fixture with New Ceiling Fan, and Replace Ceiling Light Fixtures
22 $250.00 $5,500.00 $0.00 $0.00 $0.00 0.00% $5,500.00 $0.00 46 47
$0.00
$0.00
Pest Control 1
4 $2,500.00
$4,500.00
$2,500.00 $0.00
$0.00
$0.00
$0.00
$0.00
$0.00

0.00%

0.00%
$2,500.00 $0.00
Replace Wood Garage Door with Steel Sectional Garage Door. Replace Garage $0.00 Door with Steel Sectional Garage Door and Hardware into Dwelling $18,000.00 $18,000.00
48 49
50 51
52 53
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Front Detached Garage – Replace Side Entry Door Assembly Install New Electrical Receptacles & Switches
Clean Building Drain and Waste Piping
General Drywall Repairs
Installation of Heating and Air-Conditioning System
Basement Acoustic Suspended Ceiling Repairs
1 1
1 $2,500.00
$2,500.00
$3,500.00
$7.00
$4,500.00
$2,500.00
$2,500.00
$2,500.00
$3,500.00
$140,000.00
$13,500.00
$2,500.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%
$2,500.00
$2,500.00
$3,500.00
$140,000.00
$13,500.00
$2,500.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
20000
3 1
54 55
56 $0.00
$0.00
$0.00
Apply New Interior Paint 20000
16 $2.00
$100.00
$40,000.00
$1,600.00
$8,500.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

0.00%

0.00%

0.00%
$40,000.00
$1,600.00
$8,500.00
$0.00
$0.00
$0.00
Smoke Detectors and Monoxide Detectors
Repair Electrical Wiring, Install New Electrical Receptacles & Switches, and Ground Fault Circuit Interrupter
1 $8,500.00
57 58
$0.00
All Bathrooms -- New Exhaust Fan, Remove/Replace Drywall and Tile From $0.00 Walls and Ceiling with New Moisture Resistant Drywall and Will Match Existing Walls. New Paint, New Shower/Tub, New Shower Fixtures, New Vanity/Mirror/Medicine Cabinet, New Countertops, New Sink, New Faucet, New Accessories/Towel Bar, New Water Saving Toilet Including New Pump/Seat/Wax Ring, New Energy Star Light Fixtures and Remove/Replace Flooring.
6 $7,500.00 $45,000.00 $0.00 $0.00 $0.00 0.00% $45,000.00 $0.00

A B C D E F G H I J
ITEM
NO.

DESCRIPTION OF WORK Quantity Unit price SCHEDULED
VALUE

WORK COMPLETED MATERIALS

PRESENTLY

STORED (NOT IN STORED TO DATE
D OR E) (D+E+F)
TOTAL
COMPLETED AND (G ÷ C)
% BALANCE TO

FINISH (C - G)

RETAINAGE (IF

VARIABLE RATE) FROM THIS PERIOD

PREVIOUS

APPLICATION
Basement Bathroom – Remove and Dispose of existing ceramic tile, backing, shower pan, remove/replace any dry rotted studs, remove/dispose existing bath/shower valve and fixtures, and shower door/shower door enclosure. 1 $7,500.00 $7,500.00 $0.00 $0.00 $0.00 $0.00 0.00% $7,500.00 $0.00 59 1st Floor Bathroom – replace tub door, install new water closet, install new vanity, vanity top, faucet, and under sink plumbing
1 3
$7,500.00 $7,500.00 $0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

0.00%

0.00%
$7,500.00 $0.00
$0.00
60 Kitchen – Drywall, Painting, Patch Work, Removal/Install of Kitchen: Cabinets, Countertops, Backsplash, Faucet, Sink, Garbage Disposal, Floor Tile remain and properly protected, Dishwasher, Under Sink Plumbing, Electrical System Wiring, Exhaust Range Hood, New Gas Range, Install New Recessed Light Fixtures, Appliances and Accessories
$15,000.00 $45,000.00 $45,000.00
61 62
63 64
65 Basement Den – will remain and properly protected 1
1 $250.00
$5,500.00
$7.00
$250.00
$5,500.00
$140,000.00
$2,100.00
$7,500.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

0.00%

0.00%

0.00%

0.00%

0.00%
$250.00
$5,500.00
$140,000.00
$2,100.00
$7,500.00
$0.00
$0.00
$0.00
$0.00
$0.00
Carpet – remove and dispose of all existing carpet, padding, and strips. Install new carpet.

Install New Vinyl Plank Flooring 20000
Replace Front Entry Door Assembly 6
1 $350.00
Master Bathroom -- Install New Bath/Shower Valve & Fixtures, Remove $7,500.00 Existing Caulking Sealant at All Joints Inside the Tub/Shower and Prepare for New Caulking. Paint to Match Existing Shower Tile Color. Remove All Damaged, Cracked or Crumbling Grout and Prepare/Apply New Grout. 66 2nd Bathroom – Remove/Replace Existing Tub/Shower Enclosure including All Fixtures and Hardware, Repair/Replace Any Deteriorated/Damaged Wood Components, Replace All Deteriorated/Damaged Drain Lines and Furnish and Install a New “Moen – Chateau” (or approved equal)
3 $7,500.00 $22,500.00 $0.00 $0.00 $0.00 $0.00 0.00% $22,500.00 $0.00 67 11605 Gale Avenue-Exterior Improvement Line Items (68-89) North Side Metal Carport – Remove All Peeling Paint, Dirt, Dust, Etc., Prep and Paint All Metal Components on Existing Carport.
500 $25.00
$25.00
$12,500.00
$12,500.00
$5000.00
$0.00
$0.00
$0.00
$0.00
$0.00
$5,000.00 40.00% $7,500.00 $250.00
$0.00
68 West Side Carport Re-Roofing - Membrane Roofing: Remove and Dispose of 500 All Existing Roof Covering Layers on Residence and Carport. Remove and Replace Any Damaged Sheathing, and Damaged Roof and Carport Wood Members, Trim, and Fascia.
$0.00 0.00% $12,500.00
69 70
71 West Side Carport Exterior Wood Paint and Exterior Plaster Surface Pest Control
500
1 $12.00
$10,000.00
$6,000.00
$10,000.00
$0.00
$4000.00
$0.00
$0.00
$0.00
$0.00
$0.00
$4,000.00 40.00%

0.00% $6,000.00
$6,000.00
$0.00
$200.00
11605 Gale Avenue-All Units #1-#10-2Line Items (68-89)
Clean Building Drain and Waste Piping 1 $12,500.00
$100.00
$12,500.00
$2,000.00
$6000.00
$400.00
$0.00 $0.00
$0.00
$6,000.00 48.00%
$600.00 30.00%
$6,500.00
$1,400.00
$300.00
$30.00
72 Smoke Detectors and Monoxide Detectors
Replace Wall Heater – Dual Wall 50,000 BTU
20 $200.00
73 74
10 $1,000.00 $10,000.00 $5000.00 $0.00 $0.00 $5,000.00 50.00% $5,000.00 $250.00

A B C D E F G H I J
ITEM
NO.

DESCRIPTION OF WORK Quantity Unit price SCHEDULED
VALUE

WORK COMPLETED MATERIALS

PRESENTLY

STORED (NOT IN AND STORED TO

D OR E) DATE
TOTAL

COMPLETED
% BALANCE TO RETAINAGE (IF
(G ÷ C) FINISH (C - G) VARIABLE RATE) FROM

PREVIOUS

APPLICATION
$108000.00
$100.00

THIS PERIOD
75 General Drywall Repairs
Replace Doorbell
Repair Electrical Wiring, Install New Electrical Receptacles & Switches and Ground Fault Circuit Interrupter
20000 $7.00
$100.00
$55,000.00
$140,000.00
$1,000.00
$55,000.00
$43,000.00
$0.00
$0.00
$0.00
$0.00
$151,000.00 107.86%
$100.00 10.00%
$39,000.00 70.91%
-$11,000.00
$900.00
$16,000.00
$7,550.00
$5.00
$1,950.00
76 77
78 10
1 $39000.00 $0.00
Replace Light Fixture with New Ceiling Fan and Replace Ceiling Light Fixtures 40 $750.00 $30,000.00 $12150.15 $65000.00
$0.00 $0.00
$0.00
$12,150.15 40.50%
$80,000.00 53.33%
$17,849.85
$70,000.00
$607.51
Kitchen – Replace Fluorescent Light Bulbs and Fixtures, If Necessary. Replace 10 Cabinets, Countertops and Backsplashes, Faucet, Sink, Garbage Disposal, Under Sink Plumbing and All Appliances, New Exhaust Range Hood, New Gas Range
$15,000.00 $150,000.00 $15,000.00 $4,000.00
79 Bathroom – New Exhaust Fan, Remove and Replace Drywall and Tile From Walls and Ceiling, New Tub/Shower, New Shower Fixtures,, New Vanity/Mirror/Medicine Cabinet, New Countertops, New Faucet, New Toilet Including New Pump, Seat, and Wax Ring, New Light Fixtures, New Paint and New Flooring.
12 $7,500.00 $90,000.00 $32500.00 $15,000.00 $0.00 $47,500.00 52.78% $42,500.00 $2,375.00 80 81
82 83
84 85
86 87
88 89
Install New Passage Doors
Interior Paint – All Rooms
Install New Vinyl Plank Flooring
24 $250.00
$2.00
$6,000.00
$40,000.00
$140,000.00
$7,500.00
$3,600.00
$24,000.00
$5,000.00
$8,400.00
$3,500.00
$3800.00
$28600.00
$56000.00
$3000.00
$2200.00
$17000.00
$1,000.00
$-
$0.00
$6,000.00
$14,000.00
$500.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$3,800.00 63.33%
$34,600.00 86.50%
$70,000.00 50.00%
$3,500.00 46.67%
$2,200.00 61.11%
$17,000.00 70.83%
$2,000.00 40.00%
$2,200.00
$5,400.00
$70,000.00
$4,000.00
$1,400.00
$7,000.00
$3,000.00
$8,400.00
$3,500.00
$190.00
$1,730.00
$3,500.00
$175.00
$110.00
$850.00
$100.00
$0.00
20000
20000
1 $7.00
Remove and dispose of all of the existing carpet, padding, and strips from areas of dwelling that currently have carpet
$7,500.00
$150.00
$1,000.00
$250.00
$350.00
$3,500.00
Window Coverings Replacement 24
Install New Windows: Windows, Window Frames, and Window Coverings Replacement
24 $0.00
Replace All Entry Door Assembly 20 $1,000.00
Security Window Screens Compliance 24 $0.00 $0.00
$0.00

0.00%
Laundry Room: Inspect Electrical System and Making All Needed 0.00% Replacement/Repairs, Remove/Replace Existing Washers and Dryers 1 $- $0.00 $0.00
11529 Gale Avenue-Following Bid Line Items (90-108)
Pest Control 1
1 $12,000.00
$12,000.00
$12,000.00
$12,000.00
$4200.00
$2700.00
$0.00 $0.00
$0.00
$4,200.00 35.00%
$5,700.00 47.50%
$7,800.00
$6,300.00
$210.00
$285.00
90 Clean Building Drain and Waste Piping $3,000.00
91 92
93 94
Smoke Detectors and Monoxide Detectors
Replace Wall Heater – Dual Wall 50,000 BTU
General Drywall Repairs
44 $100.00
$3,000.00
$7.00
$4,400.00
$36,000.00
$140,000.00
$12,000.00
$1400.00
$15000.00
$66500.00
$4400.00
$400.00
$3,000.00
$35,000.00
$2,000.00
$0.00
$0.00
$0.00
$0.00
$1,800.00 40.91%
$18,000.00 50.00%
$101,500.00 72.50%
$6,400.00 53.33%
$2,600.00
$18,000.00
$38,500.00
$5,600.00
$90.00
12 $900.00
20000
1 $5,075.00
Repair Electrical Wiring, Install New Electrical Receptacles & Switches, and $320.00 Ground Fault Circuit Interrupter
$12,000.00
95 96
Replace Light Fixture with New Ceiling Fan and Replace Ceiling Light Fixtures 32 $650.00 $20,800.00 $10300.00 $0.00 $0.00 $10,300.00 49.52% $10,500.00 $515.00

A B C D E F G H I J
ITEM
NO.

DESCRIPTION OF WORK Quantity Unit price SCHEDULED
VALUE

WORK COMPLETED MATERIALS

PRESENTLY

STORED (NOT IN STORED TO DATE
D OR E) (D+E+F)
TOTAL
COMPLETED AND (G ÷ C)
% BALANCE TO

FINISH (C - G)

RETAINAGE (IF

VARIABLE RATE)

FROM THIS PERIOD

PREVIOUS

APPLICATION
Kitchen – Drywall, Painting, Patch Work, Removal of Kitchen Cabinets, Countertops, Backsplash, Faucet, Sink, Garbage Disposal, Under Sink Bathroom/Half Bath – Drywall, Exhaust Fan, Vanity/Mirror/Medicine Cabinet, 24 Countertop, Faucet, Toilet, Tub/Shower, Shower Fixture, Flooring, Accessories, Light Fixture, Electrical System Wiring, Painting. 12 $15,000.00
$7,500.00
$180,000.00
$180,000.00
$70000.00 $15,000.00 $0.00
$0.00
$85,000.00 47.22% $95,000.00 $4,250.00
97 $62500.00 $15,000.00 $77,500.00 43.06% $102,500.00 $3,875.00 98 Interior Paint – All Rooms 20000
20000
$2.00
$12.00
$40,000.00
$240,000.00
$7,500.00
$11,000.00
$2,500.00
$1,000.00
$40,000.00
$26,400.00
$1,500.00
$5,500.00
$19000.00
$68000.00
$3500.00
$4000.00
$500.00
$0.00
$6,000.00
$32,000.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$25,000.00 62.50%
$100,000.00 41.67%
$3,500.00 46.67%
$4,000.00 36.36%
$500.00 20.00%
$15,000.00
$140,000.00
$4,000.00
$7,000.00
$2,000.00
$1,000.00
$21,000.00
$17,850.00
$1,500.00
$5,500.00
$1,250.00
$5,000.00
$175.00
$200.00
$25.00
99 Install New Vinyl Plank Flooring and Carpet Replacement Window Coverings Replacement
100
101
102
103
104
105
106
107
108
30 44
1 $250.00
Install New Passage Doors $250.00 $0.00
Repair Trash Enclosure Metal Doors $2,500.00
$1,000.00
$1,000.00
$550.00
$0.00
Water Heater Room Drywall Repairs 1 $0.00 $0.00 0.00% $0.00 Install New Windows and Replace All Entry Door Assembly Replace All Entry Door Assembly
40 48
1 $19000.00
$8550.00
$0.00
$0.00 $19,000.00 47.50%
$8,550.00 32.39%
$950.00
$427.50
$0.00
$0.00
Repair/Replace Vinyl Fence $1,500.00
$5,500.00
$0.00 $0.00
$0.00

0.00%
Laundry Room Electrical repairs and Laundry Room Washer and Dryer 1 $0.00 $0.00 0.00% $0.00 11537 Gale Avenue-Following Bid Line Items (109-124)
Pest Control 1
1 $4,000.00
$2,000.00
$4,000.00
$2,000.00
$1,000.00
$1,000.00
$-
$-
$0.00
$0.00
$1,000.00 25.00%
$1,000.00 50.00%
$3,000.00
$1,000.00
$50.00
$50.00
109
Clean Building Drain and Waste Piping
110
Smoke Detectors and Monoxide Detectors 21 $100.00
$2,500.00
$7.00
$2,100.00
$12,500.00
$140,000.00
$700.00
$5,500.00
$57,000.00
$-
$-
$-
$0.00
$0.00
$0.00
$700.00 33.33%
$5,500.00 44.00%
$57,000.00 40.71%
$1,400.00
$7,000.00
$83,000.00
$35.00
$275.00
111
112
Replace Radiant Ceiling Heaters
General Drywall Repairs
5 20000 $2,850.00
113
114 Replace Doorbell 5
1 $100.00
$8,000.00
$500.00
$8,000.00
$- $-
$-
$0.00
$0.00
$0.00
$5,000.00 62.50%

0.00% $500.00
$3,000.00
$0.00
Repair Electrical Wiring, Install New Electrical Receptacles & Switches, and $250.00 Ground Fault Circuit Interrupter
$5,000.00
115
116 Electric Water Heater Replacement 2
5 $1,000.00
$15,000.00
$2,000.00
$75,000.00
$2,000.00
$35,000.00
$-
$-
$0.00
$0.00
$2,000.00 100.00%
$35,000.00 46.67%
$0.00
$40,000.00
$100.00
Kitchen – Drywall, Painting, Patch Work, Flooring, Removal/Replace Cabinets, $1,750.00 Countertops, Backsplash, Faucet, Sink, Garbage Disposal, Under Sink Plumbing, Electrical System Wiring, Exhaust Range Hood, New Gas Range, New Electrical Range, Appliances and Accessories
117
118
Bathroom/Half Bath – Drywall, Tile, Exhaust Fan, Vanity/Mirror/Medicine Cabinet, Countertop, Faucet, Toilet, Tub/Shower, Shower Fixture, Flooring, Accessories, Light Fixture, Electrical System Wiring, Painting. 5 $7,500.00 $37,500.00 $22,500.00 $12,000.00 $0.00 $34,500.00 92.00% $3,000.00 $1,725.00

A B C D E F G H I J
ITEM
NO.

DESCRIPTION OF WORK Quantity Unit price SCHEDULED
VALUE

WORK COMPLETED MATERIALS

PRESENTLY

STORED (NOT IN STORED TO DATE
D OR E) (D+E+F)
TOTAL
COMPLETED AND (G ÷ C)
% BALANCE TO

FINISH (C - G)

RETAINAGE (IF

VARIABLE RATE) FROM THIS PERIOD

PREVIOUS

APPLICATION
119
120
121
Install New Passage Doors
Interior Paint – All Rooms
Install New Vinyl Plank Flooring and Carpet Replacement Install New Windows: Windows, Window Frames, and Window Coverings Replacement
16 $250.00
$2.00
$12.00
$4,000.00 $3,000.00
$20,000.00
$100,000.00
$16,000.00
$- $-
$-
$-
$-
$3,000.00 75.00% $1,000.00
$20,000.00
$95,000.00
$34,000.00
$150.00
20000
20000
40 $40,000.00
$240,000.00
$50,000.00
$-
$45,000.00
$-
$20,000.00 50.00%
$145,000.00 60.42%
$16,000.00 32.00%
$1,000.00
$7,250.00
$1,250.00 $800.00
122
Laundry Room – Electrical System Inspection, Electrical System repair/replace, Drywall, Patchwork, Electric Water Heater Replacement and Washer and Dryer Replacement.
1 1
$4,500.00
$1,500.00
$4,500.00
$1,500.00
$-
$-
$-
$-
$-
$-
$0.00
$0.00

0.00%

0.00%
$4,500.00
$1,500.00
$0.00
$0.00
123
124 Repair/Replace Vinyl Fence
For All Properties-Following Bid Line Items (125-127)
Install Exterior Lighting with Timer System at All Properties 1 1 $3,000.00
$4,000.00
$3,000.00
$4,000.00
$500.00
$0.00
$0.00
$0.00
$0.00
$0.00
$500.00 16.67% $2,500.00
$4,000.00
$25.00
$0.00
125
126
Remove and Dispose of All Existing Equipment and Material $0.00 0.00% 3 Year Maintenance Program covering all properties exterior and interior 8.33% repairs
1 $24,000.00 $24,000.00 $2000.00 $0.00 $0.00 $2,000.00 $22,000.00 $100.00 127
Change Orders
COR #1 -This invoice is for the removal of the ceiling at two bedrooms and 1 $17,815.08 $17,815.08 $17,815.08 $0.00 $0.00 $17,815.08 100.00% $0.00 $890.75 living room, also 2 feet of the wall for the length of the wall at all 4 sides of the room. Per city direction at11537 Gale-Unit C
128
129
COR #2-This invoice is per unit and includes the removal of Gyp board and install light fixure at the living room and bedroom. ALL 5 UNITS 1 1
$17,272.45
$49,191.80
$17,272.45
$49,191.80
$17,272.45
$49,191.80
$0.00
$0.00
$0.00
$0.00
$17,272.45 100.00%
$49,191.80 100.00%
$0.00
$0.00
$863.62
COR #3-This invoice is for the removal of the existing carpet at the interior staircases and installation of Vinyl Plank Flooring and nosing at the stairs $2,459.59
130
131
COR #4-This invoice for 11605 Gale Avenue Units 6 and 10, 11529 Gale Avenue Units #6 , # 12 water proofing above the windows 1 1
$19,088.19
$16,055.04
$19,088.19
$16,055.04
$19,088.19
$16,055.04
$0.00
$0.00
$0.00
$0.00
$19,088.19 100.00%
$16,055.04 100.00%
$0.00
$0.00
$954.41
COR #5-This invoice for the baseboard requested to be placed at 11605 Gale $802.75 Ave units #6 and #10, 11529 units #6 , # 12 and also 11537 Gale Ave unit 132
COR #6-This invoice for units 11605 Gale Avenue units #6 and #10, 11529 Gale Avenue #6 , # 12 removal of existing Stipple ("Popcorn") ceiling finish.

Then replacing demolished ceiling finish with topping compound and texture for the new finish of the ceiling.
1 $14,921.74 $14,921.74 $14,921.74 $0.00 $0.00 $14,921.74 100.00% $0.00 $746.09 133
134
135
136
137
COR #7-Cabinets Size and Counter Tops-5 units
COR #8-Window Size Change of Dimensions in Field from Job-Walk COR #9 Subfloor
1 1
1 1
1 $29,214.23
$24,510.91
$5,729.71
$4,190.25
$11,561.86
$29,214.23
$24,510.91
$5,729.71
$4,190.25
$11,561.86
$29,214.23
$24,510.91
$5,729.71
$4,190.25
$11,561.86
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$29,214.23 100.00%
$24,510.91 100.00%
$5,729.71 100.00%
$4,190.25 100.00%
$11,561.86 100.00%
$0.00
$0.00
$0.00
$0.00
$0.00
$1,460.71
$1,225.55
$286.49
$209.51
$578.09
COR #10 Gutter at 11605 on second floor
COR #11-Delta Cost between Credit and Cost of large Single Pane Windows11537 138
139
COR #12-Cost of existing Door and Frames removing existing stucco creating a larger void then door opening
1 $4,403.15 $4,403.15 $4,403.15 $0.00 $0.00 $4,403.15 100.00% $0.00 $220.16

A B C D E F G H I J
ITEM
NO.

DESCRIPTION OF WORK Quantity Unit price SCHEDULED
VALUE

WORK COMPLETED MATERIALS

PRESENTLY

STORED (NOT IN STORED TO DATE
D OR E) (D+E+F)
TOTAL
COMPLETED AND (G ÷ C)
% BALANCE TO

FINISH (C - G)

RETAINAGE (IF

VARIABLE RATE) FROM THIS PERIOD

PREVIOUS

APPLICATION
COR #13-Cost of existing Door and Frames removing existing stucco creating a 1 larger void then door opening
$6,178.00 $6,178.00 $6,178.00 $0.00 $0.00
$0.00
$6,178.00 100.00% $0.00 $308.90
140
COR #15-Apartments 11605, 11537, 11529 had 8 (eight) locations with existing Closets that KEC was directed to remove the existing closets and ther respective tracks. KEC completed the removal of these 8 closets and their respective tracks. KEC then placed new tracks and installed new closet doors at 11605 Gale, 11537 Gale and 11529 Gale.
1 $11,216.88 $11,216.88 $11,216.88 $0.00 $11,216.88 100.00% $0.00 $560.84 141
COR #16-11529 Gale Avenue-Unit #6 and #12-Interior light above the entrance door to the apartment, light at the bottom of the stairs, top of stairs and the hallway leading to the bedrooms from the top of the stairs. 11537 Gale Avenue-Unit C- At Kitchen area (6 lights), hallway at 2nd floor, exterior of 1/2 bathroom at 1st floor. 11605 Gale Unit #6 and #10, light at the corridor. For all listed light fixtures it was required to patch and repair at the opening to ceiling
1 $9,682.45 $9,682.45 $9,682.45 $0.00 $0.00 $9,682.45 100.00% $0.00 $484.12 142
143
COR #17-The work includes removal and disposal the ceiling at bathrooms unit C building 11537, and also installtion of gypboard and mud, texture apply 1 1
$2,916.45
$688.66
$2,916.45
$688.66
$2,916.45
$688.66
$0.00
$0.00
$0.00
$0.00
$2,916.45 100.00%
$688.66 100.00%
$0.00
$0.00
$145.82
COR #18-The work includes removal and disposal of the ceiling at the parking $34.43 garage at unit 12 as well as relocating the Gas pipe and electrical conduit to install the stove range of building 11529 Gale Avenue.
144
COR #19-Unit C at Building 11537 Gale Avenue-The work includes the removal of the existing handrail and reinstalling it at lower part of steps, removal and disposal of the existing backing for the existing handrail, Installation of new backing for the railing .
1 $1,414.37 $1,414.37 $1,414.37 $0.00 $0.00 $1,414.37 100.00% $0.00 $70.72 145
146
COR #20-Temporary fix with patching and painting of 2nd floor deck at 11605 Gale Ave
1 1
$1,370.07
$1,847.71
$1,370.07
$1,847.71
$1,370.07
$1,847.71
$0.00
$0.00
$0.00
$0.00
$1,370.07 100.00%
$1,847.71 100.00%
$0.00
$0.00
$68.50
COR #21-After removal of existing subfloor (COR #09) the existing floor joist $92.39 was missing nailers and support for the wall under the staircase. KEC provided the support required and nailers so that the new flooring could be properly adhered to the subflooring 147
148
COR #22-PRICING IS FOR 1 UNIT ONLY.The work includes per request by city inspector the removal of existing Thermosat on unite 6 at 11605 Gale Ave and moved to 6 feet away from wall heater.
1 1
$2,191.54 $2,191.54 $2,191.54
$-
$0.00
$0.00
$0.00
$0.00
$2,191.54 100.00% $0.00 $109.58
COR #23-The work includes per request by city inspector, the installation of $0.00 flashing on the bottom of exterior doors on 27 units at 11605,11537,11529 Gale Ave.
$27,549.03 $27,549.03 $0.00 0.00% $27,549.03
149
150
COR #24-Per city's request for 3 additional water heaters for 11537 Gale Ave as Bid Line Items only show 2
1 1
$7,608.08
$3,022.89
$7,608.08
$3,022.89
$7,608.08
$3,022.89
$0.00
$0.00
$0.00
$0.00
$7,608.08 100.00%
$3,022.89 100.00%
$0.00
$0.00
$380.40
COR #25-4 UNIT PRICE ONLY-The work includes per the request by city $151.14 inspector, the installtion of new Thermostats at units with older thermostats.4 units thus far at 11605,11537,11529 Gale Ave. 151
COR #26-The work includes lifting up the 2 existing staircases at the 2nd floor (floor above subterranean parking lot) of the 11529 Gale Ave. property and water proofing with temporary rapid set and providing new blocking and backing for reinforcement of Staircases.
1 1
$13,665.06
$10,531.06
$13,665.06
$10,531.06
$13,665.06
$10,531.06
$0.00
$0.00
$0.00
$0.00
$13,665.06 100.00%
$10,531.06 100.00%
$0.00
$0.00
$683.25
$526.55
152
153
COR #27-11537 Gale Avenue- The work includes all windows that require waterproofing and the installation of foam, paint and plaster at all required windows.

A B C D E F G H I J
ITEM
NO.

DESCRIPTION OF WORK Quantity Unit price SCHEDULED
VALUE

WORK COMPLETED MATERIALS

PRESENTLY

STORED (NOT IN STORED TO DATE
D OR E) (D+E+F)
TOTAL
COMPLETED AND (G ÷ C)
% BALANCE TO

FINISH (C - G)

RETAINAGE (IF

VARIABLE RATE)

FROM THIS PERIOD

PREVIOUS

APPLICATION
COR #28-11529 Gale Avenue-The work includes all windows that require waterproofing at 10 Units and the installation of foam, paint and plaster at all required windows for 12 units.
1 $49,259.11 $49,259.11 $49,259.11 $0.00 $0.00 $49,259.11 100.00% $0.00 $2,462.96 154
COR #29-11605 Gale Avenue- The work includes all windows that require waterproofing and the installation of foam, paint and plaster at all required windows.
1 1
$5,176.40
$4,861.54
$5,176.40
$4,861.54
$5,176.40
$4,861.54
$0.00
$0.00
$0.00
$0.00
$5,176.40 100.00%
$4,861.54 100.00%
$0.00
$0.00
$258.82
$243.08
155
COR #30-2 units at 11529 Gale Avenue/1 unit at 11537 Gale Avenue/2 units at 11605 Gale Avenue. The work includes back splash in bathrooms at request of LDM Inspector (not called out per line items)
156
157
COR #31-Changing of Baseboards at Unit 7 at 11605 Gale Avenue and Unit C at 12720 Grivillea
1 1
$5,897.48
$6,908.98
$5,897.48
$6,908.98
$5,897.48
$6,908.98
$0.00
$0.00
$0.00
$0.00
$5,897.48 100.00%
$6,908.98 100.00%
$0.00
$0.00
$294.87
COR #32-This invoice is for the removal of the existing Gyp Board and $345.45 installation of Light Fixtures at the Living Rooms and Bedrooms. This was completed at 2 Units, price is per unit and then multiplied by units towards the bottom of the COR. Unit 7 at 11605 Gale Avenue and Unit C at 12720 158
159
Grivillea
COR #33-Pop corn removal and skim coad the ceiling with knock down 1 1 $4,731.91 $4,731.91 $4,731.91 $0.00
$0.00
$0.00
$0.00
$4,731.91 100.00%
$13,600.44 100.00%
$0.00
$0.00
$236.60
$680.02
texture. Unit 7 at 11605 Gale Avenue and Unit C at 12720 Grivillea COR #34-Delta between Cost and Credit for different Cabinet sizes (cost) and less cabinets (Credit) at Unit 7 at 11605 Gale Avenue and Unit C at 12720 Grivillea
$13,600.44 $13,600.44 $13,600.44
160
COR #35-Unit 7 at 11605 Gale Avenue and Unit C at 12720 Grivillea-Existing door and frames that were removed per project agreement also removed the existing stucco that was placed on the existing door frame. KEC therefore had to renovate the existing opening to make the opening square, add additional waterproofing Sealat and a moulding piece to fill in the void left by the existing door/frame andd stucco. KEC will also paint the moulding to match the frame.

COR #36-PRICING IS FOR 2 UNIT ONLY.The work includes per request by city inspector the removal of existing Thermosat on Unit 7 at 11605 Gale Avenue and Unit C at 12720 Grivillea and moved to 6 feet away from wall heater. 1 $1,361.64
$2,239.27
$1,361.64
$2,239.27
$1,361.64
$2,239.27
$0.00 $0.00 $1,361.64 100.00% $0.00 $68.08
161
1 $0.00 $0.00 $2,239.27 100.00% $0.00 $111.96
162
163
COR #37-2 UNIT PRICE ONLY-The work includes per the request by city inspector, the installtion of new Thermostats at units with older thermostats. 1 1
$1,511.45 $1,511.45 $1,511.45
$-
$0.00 $0.00
$0.00
$1,511.45 100.00%
$14,732.26 100.00%
$0.00
$0.00
$75.57
COR #38-Change Order per RFI #21, this work is for providing 2 new breakers for 1 unit at the Grivillea Apartment site location. Theere is also the Electrical Subcontractors work which is attached to this change order and has been calculated into the grand total of this Change Order.
$14,732.26 $14,732.26 $14,732.26 $736.61
164
COR #39-Per the Abestos & Lead Report Unit B of 11537 Gale Avnue will have to be Abated by an Abatement Subcontractor. (PLEASE ALSO NOTE THAT

THERE WILL ALSO NEED TO BE AN ENVIRONMENTAL CONSULTANT PROVIDED BY THE OWNER TO ACHIEVE FINAL AIR CLEARANCES. THIS CHANGE ORDER

DOES NOT ACCOUNT FOR THIS SEPERATE COST)
1 1
$24,076.47
$20,726.94
$24,076.47
$20,726.94
$-
$-
$24,076.47
$20,726.94
$0.00
$0.00
$24,076.47 100.00%
$20,726.94 100.00%
$0.00
$0.00
$1,203.82
$1,036.35
165
166
COR #40-Unit C at 12720 Grevillea/Unit #'s 3, 7 at 11605 Gale Ave./Unit #s 2, 10 at 11529 Gale Ave/ Unit #B at 11537 Gale Ave-This invoice is per unit and includes the removal of Gyp board and install light fixure at the living room and bedroom. (Reference COR #02)

A B C D E F G H I J
ITEM
NO.

DESCRIPTION OF WORK Quantity Unit price SCHEDULED
VALUE

WORK COMPLETED MATERIALS

PRESENTLY

STORED (NOT IN STORED TO DATE
D OR E) (D+E+F)
TOTAL
COMPLETED AND (G ÷ C)
% BALANCE TO

FINISH (C - G)

RETAINAGE (IF

VARIABLE RATE)

FROM THIS PERIOD

PREVIOUS

APPLICATION
COR #41-At units 11529 #02,10 /11537-Unit B. This invoice is per unit and includes removal of carpet at the stairs and install of Vinyl Plank Flooring with nosing material and wood molding on Stairs.
1 $23,108.37 $23,108.37 $- $23,108.37 $0.00 $23,108.37 100.00% $0.00 $1,155.42 167
COR #42-Pop corn removal and skim coad the ceiling with knock down texture. at 4 units total-11605 units 7, 3/11529 units 2, 10. (Reference COR #06)
1 1
$14,921.74
$40,801.32
$14,921.74
$40,801.32
$-
$-
$14,921.74
$40,801.32
$0.00
$0.00
$14,921.74 100.00%
$40,801.32 100.00%
$0.00
$0.00
$746.09
168
COR #43-Cabinets Size and Counter Tops-6 units-6 Units-Unit B-11537, Unit #3 and #7-11605, Unit #2 and #10-11529,Unit C-12720
$2,040.07
169
170
COR #44-Bigger Window Size-6 Units-Unit B-11537, Unit #3 and #7-11605, Unit #2 and #10-11529,Unit C-12720 (Refer to COR #08)
1 1
$30,546.73
$11,459.42
$30,546.73
$11,459.42
$-
$-
$30,546.73
$11,459.42
$0.00
$0.00
$30,546.73 100.00%
$11,459.42 100.00%
$0.00
$0.00
$1,527.34
COR #45-Entire Subfloor to be replaced due to water damage and mold @ $572.97 unit B at 11537 Gale Ave. and Unit C 12720 Grevillea (Refer to COR # 09) 171
172
173
COR #46-(Same work as performed in COR #15 in new locations)Apartments 8 locations @ 6 Units-Unit B-11537, Unit #3 and #7-11605, Unit #2 and #10- 11529,Unit C-12720 has 8 (eight) locations with existing Closets that KEC was directed to remove the existing closets and their respective tracks. KEC completed the removal of these 8 closets and their respective tracks. KEC then placed new tracks and installed new closet doors at 11605 Gale, 11537 Gale, 11529 Gale, and 12720 Grevillea-Unit C
1 1
1 $11,216.88
$14,582.83
$3,695.42
$11,216.88
$14,582.83
$3,695.42
$-
$-
$-
$11,216.88
$14,582.83
$3,695.42
$0.00
$0.00
$0.00
$11,216.88 100.00%
$14,582.83 100.00%
$3,695.42 100.00%
$0.00
$0.00
$0.00
$560.84
$729.14
$184.77
COR #47-11529 Gale Avenue-Unit #2 and #10-Interior light above the entrance door to the apartment, light at the bottom of the stairs, top of stairs and the hallway leading to the bedrooms from the top of the stairs. 11537 Gale Avenue-Unit B- At Kitchen area (6 lights), hallway at 2nd floor, exterior of 1/2 bathroom at 1st floor. 11605 Gale Unit #3 and #7, light at the corridor.

For all listed light fixtures it was required to patch and repair at the opening to ceiling and also Unit C 12720 Grevillea. (Refer to COR #16) COR #48-2 Units: 1st Unit11537-Unit B-After removal of existing subfloor (Refer to COR #09) the existing floor joist was missing nailers and support for the wall under the staircase. KEC provided the support required and nailers so that the new flooring could be properly adhered to the subflooring.
2nd Unit: 12720-Unit C-After removal of existing subfloor (COR #09) the existing floor joist was missing nailers and support for the adjacent wall . KEC provided the support required and nailers so that the new flooring could be properly adhered to the subflooring.
174
175
176
COR #49-Unit B at Building 11537 Gale Avenue-The work includes the removal of the existing handrail and reinstalling it at lower part of steps, removal and disposal of the existing backing for the existing handrail, Installation of new backing for the railing. (Refer to COR #19) 1 1
$1,414.37
$9,149.87
$1,414.37
$9,149.87
$-
$-
$1,414.37
$9,149.87
$0.00
$0.00
$1,414.37 100.00%
$9,149.87 100.00%
$0.00
$0.00
$70.72
COR #50-11605-Unit 3 & 7-11537-Unit B and 11529 #2 and #10 and 12720- Unit C. 6 Units The work includes back splash in bathrooms at request of LDM Inspector (not called out per line items) (Refer to COR #30) $457.49

A B C D E F G H I J
ITEM
NO.

DESCRIPTION OF WORK Quantity Unit price SCHEDULED
VALUE

WORK COMPLETED MATERIALS

PRESENTLY

STORED (NOT IN STORED TO DATE
TOTAL
COMPLETED AND (G ÷ C)
% BALANCE TO

FINISH (C - G)

RETAINAGE (IF

VARIABLE RATE)

FROM THIS PERIOD

PREVIOUS

APPLICATION
D OR E) (D+E+F)
COR #51-4 UNIT PRICE-The work includes per the request by city inspector, the installtion of new Thermostats at units with older thermostats. 11529- Unit #2 and #10, 11605 Gale Ave Unit #3 and #7 (Refer to COR #37) 1 $3,022.89 $3,022.89 $- $3,022.89 $0.00 $3,022.89 100.00% $0.00 $151.14 177
COR #52-Base board installed at 6 units (price based on COR #05)-6 Units-Unit B-11537, Unit #3 and #7-11605, Unit #2 and #10-11529,Unit C-12720 1 1
$19,572.48
$26,727.18
$19,572.48
$26,727.18
$-
$-
$19,572.48
$26,727.18
$0.00
$0.00
$19,572.48 100.00%
$26,727.18 100.00%
$0.00
$0.00
$978.62
178
179
COR #53-The work includes placement of insulation and install gypboard on ceiling and all walls in unit B at 11537 gale ave that was Abated for Asbestos and Lead (Refer to COR #39)
$1,336.36
COR #54-Electric Heaters for 12720 Grevillea Ave.-Unit C and patching existing hole in floor and wall that was left behind by previous (existing Dual Wall Heater)
1 1
$6,391.36
$6,178.00
$6,391.36
$6,178.00
$-
$-
$6,391.36
$6,178.00
$0.00
$0.00
$6,391.36 100.00%
$6,178.00 100.00%
$0.00
$0.00
$319.57
180
181
COR #55-Electric Heaters for 11537 Gale Ave.-Unit B and patching as needed $308.90 Project Totals: $4,839,409.41 $1,449,636.00 $638,774.53 $0.00 $2,088,410.53 43.15% $2,750,998.88 $ 90,304.30

AGENDA ITEM NO. 14

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of April 23, 2024
Originating Department: Housing
City Manager: __________
Vontray Norris
Dir. of Housing: ___________
Kimberly Mack
SUBJECT:

Bridge of Hope Community Housing (BHCH) LA CADA Professional Services Agreement First Amendment
RECOMMENDED MOTION:

1. Approve the Professional Services Agreement first amendment with LA CADA for the period of one year from 03/15/2024 to 03/15/2025 to provide professional services necessary to operate the BHCH site.

2. Authorize the City Manager, or designee, to execute, amend, and keep record of documents necessary to administer the Fiscal Year 2024-2025 Professional Services Agreement with LA CADA.

3. Authorize the Department of Finance to amend create a blanket purchase order for LA CADA not to exceed $798,428.88 in administrative fees.

DISCUSSION:

On March 28, 2023, the Council approved a Professional Services Agreement for the BHCH site operator. It is time to amend the agreement with an updated Scope of Work and change in rates.

The proposal reflects the following changes:

1. Staff Changes – Staff have been cross trained between case managers and housing navigator a. From 2 case managers to 1 case manager
b. From 3 resident aids to 2 resident aids
c. From 2 maintenance staff to 1 maintenance staff

2. New Food Service Provider

3. Radio Equipment Costs eliminated – all equipment purchased at beginning of contract

4. From 2 transportation vans to 1 van lease.

5. Activity line added for field trips and other extra curriculum activities.

There is a reduction in service fees of $91,777.41.

ECONOMIC DEVELOPMENT STRATEGIC PLAN:

None.

FISCAL IMPACT:

None.

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

1. Bridge of Hope Community Housing LA CADA Professional Services Agreement

FIRST AMENDMENT TO

CITY OF HAWTHORNE

AGREEMENT FOR CONSULTANT SERVICES
This First Amendment to City of Hawthorne Agreement for Consultant Services (“First Amendment”) is made and entered into as of April 15, 2024 (“Effective Date”), by and between the City of Hawthorne, a municipal corporation (“City”), and Los Angeles Centers for Alcohol and Drug Abuse, a California nonprofit public-benefit corporation (“Consultant”) (collectively, the “Parties”) with reference to the following:

WHEREAS, City and Consultant entered into an Agreement for Consultant Services dated April 17, 2023 to develop and operate the Bridge of Hope housing project (“Original Agreement”), which Original Agreement is attached hereto as Exhibit “A” and incorporated herein by this reference; WHEREAS, City and Consultant now desire to extend the term for one (1) year, through April 17, 2025 (the “Extended Period”); and
WHEREAS, City desires to set forth Consultant’s maximum compensation and scope of services for the Extended Period accordingly.

NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

1. Defined Terms. Except as otherwise defined herein, all capitalized terms used herein shall have the meanings set forth for such terms in the Original Agreement.

2. Revised Scope of Services. The Scope of Services, Exhibit "A" to the Original Agreement, is hereby deleted in its entirety and replaced with Exhibit "B" attached hereto and incorporated herein by this reference.

3. Term. The Term of the Original Agreement as set forth in Section 1 therein began on April 17, 2023, and continues on an as-needed basis unless earlier terminated. This First Amendment hereby amends Section 1 of the Original Agreement to provide for a one (1) year term from April 17, 2024 to April 17, 2025. All other language in Section 1 of the Original Agreement shall remain unchanged.

4. Insurance. The insurance requirements set forth in Exhibit “B” to the Original Agreement are not being amended by this First Amendment and, therefore, all terms thereof shall remain in full force and effect during the Extended Period. Exhibit “B” to the Original Agreement is attached hereto as Exhibit “C” for ease of reference.

5. Compensation. The total not-to-exceed compensation set forth in Section 4 and Exhibit “C” of the Original Agreement was the sum of Eight Hundred Ninety Thousand Two Hundred Six and 29/100 Dollars ($890,206.29). Exhibit “C” of the Original Agreement, entitled “Budget & Schedule of Compensation”, is hereby deleted in its entirety and replaced with Exhibit “D” attached hereto and incorporated herein by this reference. Accordingly, the Original Agreement is hereby amended by this First Amendment so that the total not-to-exceed compensation for the Extended Period shall not exceed Seven Hundred Ninety-Eight Thousand, Four Hundred Twenty-Eight and 88/100 Dollars ($798,428.88).

In addition, Section 4(a) of the Original Agreement is hereby deleted in its entirety and amended as follows:
(a) The City Agrees to pay Consultant in accordance with the payment rates and terms and the schedule of compensation as set forth in Exhibit “D” to the First Amendment and incorporated herein by this reference as thought set forth in full, according to the Annual Contract Sum and Monthly Fee reflected in the Budget and Schedule of Compensation indicated in Exhibit “D” to this First Amendment, unless additional payment is approved as provided in the Original Agreement.

6. Integration. This First Amendment and all attachments hereto (if any) integrate all of the terms and conditions mentioned herein, and supersede all negotiations with respect hereto. This First Amendment amends, as set forth herein, the Original Agreement and except as specifically amended hereby, the Original Agreement shall remain in full force and effect. To the extent that there is any conflict or inconsistency between the terms and provisions of this First Amendment and the terms and provisions of the Original Agreement, the terms and provisions of this First Amendment shall control.

IN WITNESS hereof, the Parties enter into this First Amendment on the year and day first written above.

CONSULTANT CITY OF HAWTHORNE

LOS ANGELES CENTERS FOR
ALCOHOL AND DRUG ABUSE By:___________________________
Vontray Norris
By:___________________________
Printed Name: Juan Navarro
Title: Chief Executive Officer
Title: City Manager
ATTEST: APPROVED AS TO FORM:

By:___________________________
Printed Name: Dayna Williams-Hunter
Title: City Clerk
______________________________
Robert Kim
City Attorney
City of Hawthorne City of Hawthorne
Approved 3-28-2023 Meeting EXHIBIT A
Original Agreement

Original Agreement
for Reference

Service 2: Operate Site and Provide Services
TASK 2.1: Site Operation
The Provider will operate the ꢵite ꢀꢁ a minimum ofꢆhree years in accordance with the Final approved Opꢟrations and Services Plan. L.A. CADA will staffat minimum the follow three ꢂꢃꢄꢅꢆꢇꢈꢉꢊ ꢋꢌ this ꢜroject:
• 1 FTE on-dꢗty during weekday business hours to oversee site (ꢍꢎꢏꢐꢑꢒꢓꢔꢕ meals, showers, etc.), conduct program intake and exit, provide case management as needed, coordinate with participants' existing case managers and hꢃusing navigators, and conꢩect parꢙicipants to existing services as needed.
•
•
•
•
2 FTE resident aides on-dꢲty weekday evenings and weekends to oversee site (facilitate mealꢵ, showers, etc.).
1 FTE m꣈intenance staffpersons on duty weekday evenings and weekends to keep the site clean and operꢤtional.
1 FTE Housing Navigator with substantial experience in connecting program partꢘcipants with permanent housing to ensure the success ofthe program. 1 FTE Case M꣈nagers to ensure cloꢵe collaboration between services and efficient and ꢖꢗꢘꢙꢚꢛ linkages to care, andwho wiꢐꢐ work closelywith ꢙhe Housing Navigator to find appropriate housing for all program participants.

These staffing levels may be modified in accordance with the final aꢜꢜꢝꢞꢟꢠ Operations and Services Plan. L.A. CADA will ꣈lso be providing a monthly rep01t in a ꢡꢢꢣꢤꢥ approveꢠ by the City, deꢣonstrating ꢤggreg꣈te enrollment and exit data and proviꢵion of/connection to ꢵ꣍rvices.

The proposed ꢵtaffing plan could be modified based on the Operꢓtions ꣈nd Service Plan deveꢐoped in Task 1. Deliverables: Monthly Repmts (12)
TASK 2.2: Project Management
The Consultant will host a kick-offmeeting and monthly check-in callꢵ with the City.

Deliverables: Kick-off meeting agenda ꣈nd meeting notes (1); monthly meeting agendas and meeting notes (12).

L.A. CADA wiꢐl establiꢵh MOUs with our community ꢦꢧꢨꢩꢪꢫꢬ to detail ꢭꢮꢯꢰꢱꢲꢳꢴꢵ and responsibilities ꢶꢷ ꢸꢹꢺ coordination of services and ꢻꢼꢽꢾꢿꣀꣁꣂ Theꢵe paitners will include:

SPA 8 ; ltidscpnmJI Teams (MDT); Housing Navigation Teams; PubUc Spaces
Teams; the L Engagement (HET); as well as local providers

Supplemental Homeless and Hard-to-Reach
Populations.

Additionally, L.A. CADA is skilled and experienced at workꢘng with city staff, local law enforcement, and community service providers to coordinate ꢵervice ꣃ꣄ꣅ꣆꣇꣈꣉꣊ and program services.

Existing L.A. CADA partnerships will be ꣋꣌꣍꣎꣏ to the proposed program. This includeꢵ our partnership with the Los Angeles Mission (where we house up to 50 chronically homeless 11 Original Agreement
for Reference
Original Agreement
for Reference
Original Agreement
for Reference
Schedule of Compensation

1. Subject to any limitations set rh in this Agrment, City agrees to pay Consultant
the amounts specified in this Sction. The total annual compensation will be Eight
Hundred Ninety-Thousand, Two Hundred Six Dollars and 29/100 Dollars ($890,206.29) per year (the "Annual Contract Sum") unless additional compensation is approved pursunt to Section 2. The Annual Contract Sum is all
inclusive and covers all labor, materials, direct and indirect costs, and expenses
ncessary l to services under this Agreement.

2. City acknowledges nd agrees that it shall pay compensation under this Agreement
n a monthly, flat rate basis. This method of is calculated by dividing
the Annual Contract Sum by twelve (12) months. For example, Consultant will
receive monthly compensation in the amount of $74,183.8575 USD (the "Monthly Fee") per month during the course of this Agreement. 17 EXHIBIT B
Scope of Services
L.A. CADA will work with the Cty staff to develop n approved Oprations nd Service
Plan r the sit that outlines how the site will boperatd, incluing but not limited to sit
intake, on-site srvics, procurement of meals nd seurity, and ensuring that all residents
recive th services that tey need. Th Plan wll also oprationalize how the site can
maximize particpant and program success by balancing and coordinating on-site srvics
with existing services vailable through the County of Los Angeles, and the City's existing
services contrcts and resources. L.A. CADA will work indivdualy with the Cohmts an
city staff to lern the spcific needs of the progam partcipnts and the areas of focus th
city would like to prioritize. We understan that ach city in Los Angls County tt s
trying to make an impact in this housing crsis, has differing resourcs; as such L.A.

CADA
wll tior the dlivry of proposd supplementa homeless outreach and services the
needs of the City of Hawthorn, workng closy with city staff and to ensure that locl
needs are mt and servics are not duplicatve. Additionally, L.A.

CADA has
developed an xtnsive and compehnsve ist of resources avalable in SPA 8 with over
115 serviprovidrs and rsources tht will be to th program pmticiants and
nsur th success ofte progrm in SPA 8.

Wantcpt the need urgnt lnkages to srvices (specilized as manager, mntal
health clinicin, and SUD counselor) L.A. CADA staff wil work ith thselect partners
on this program and deliver: Housing Navigatin; Case Mangement; el
Preventin/Problem-Solvh1g. L.A. CADA will alsoprovde Supportive Services to
lgal services, worvlopmnt, tc.); S,·
Support; and
directresources. L.A. CADA will
existng srvices providers.

If one does not exst, the participnt will b enrolled nto ithr L.A. CADA's continuum of
care whenever possible, or themost approprite provider. The Hawthorne Homles Servce
Center will be leveragd where possible to ensure otnuity of servics with ousing
nvigation. For pmticipnt's lnked to another providr, L.A. CADA will ensur warm
hand off s compete. Additionally, thspartcipants wilhve regular/consistnt -
ups with the outside provider to ensure client/partcipants are making progress towards
established housing plans and casmanagment gols. L.A. CADA will provide support as
needd to assst n patticipant's acheving these pans and gols. For thoswth an xtrnal
provider, monthly car coordination with said provider will be conducted. For pmticipant's nrolled into services, housing plans and case management goals will b established within
no more tan two weks ofadmissio. Subsequently, al housing plans will be reviewed and
re-assessed every 90 ays. Particpants will ave wekly as management sessions, which
will include any and ll required housing navigation srvices. Priority wll b givn to
medical and mental health needs.

L.A. CADA will ccomplish llowing project
tasks:

Service 1: Develop Operations and e Plan
Task 1: Project Management. LA CADA will conduc Kick Off meetings with the City of
H to introduce our agency, listen o stakeholder needs, and to reviw th project
Task 1.1: Kick scope of phase I and 2, Off schdule, gals, and key issues. Meetings. L.A. CADA will provide ky Task 1 deliverables ofa meting
ageda, and meting oes.

Task 1.2: Services Coordinaion. L.A. CADA wll and met h exising service
provider pminers to determine oppo1iuniies and approaches to provid servics

residens at the site. Approaches could include but are not limited to transport o offsite services r regularly-scheduld visits o th site. Staff th City should be ncluded in
these meetings.

Task 1.3: Plan Developmnt.

L.A. CADA wll work with the City staffto devlop an Operations and Services Plan (Plan)
the st. Th Plan shouloulne ho hsie will be oprated to sure that all site
residnts eceive th resources that they nee to mov ino permanent housing as quickly as
practcabl. Th Plan should operationaliz how he Consultant ill work with stakholers
to maximize particpant a program success by balancing on-site sevces with xistng
srvices available through the Cuny of Los Angeles, and the Cty's existng services
contracts and rsourcs, hich are scribed in more detail n hProjec Dscrpin. The
Plan should ouline roles and responsibiltes osite saff, as well as how these staffwill
work with other staff and servces. The Plan should also outlinhe appoach o
ensure that all eedd srvics are available the si's participans, and services not
availabl at the st, her the servces can b found and how they would be accssed. For
example, th Plan sould maximize pmticipant conncon to these existing servics and
strengthen coordation wih pmicipants exsting case manages and housing navigators.

Consideratins that shuld be included in the Plan nclude but are not limit to h

1) Sie policies and
proceures; a) Eligibility & program intake, and
program exit;
2) Sie management and ovrsight, a) Coordination with othr on-site srvices (e.g. security; meal delivery);
3) Case management, housing navgation, and connection to existing srvics;
On-sie service avilablity;
a) Approaches to maximizing coordination with existing and off-site services; 4) Staffing levels, qualfications, and schedule
5) Suppot securing additional and
rsources a) Approaches to maximizing operaional incluing but not lmted to
coordination with government programs which nts are
eligible (e.g.

Medicaid/Medi-Cal, Socal Security Disabiliy Insurance [SSDI]) b) support and onations community members and
groups; and
6) Other sie consideraons.

Service 2: Operate Site and Provide Services
TASK 2.1: Site Operation
The Provider will operate the ꢵite ꢀꢁ a minimum ofꢆhree years in accordance with the Final approved Opꢟrations and Services Plan. L.A. CADA will staffat minimum the follow three ꢂꢃꢄꢅꢆꢇꢈꢉꢊ ꢋꢌ this ꢜroject:
• 1 FTE on-dꢗty during weekday business hours to oversee site (ꢍꢎꢏꢐꢑꢒꢓꢔꢕ meals, showers, etc.), conduct program intake and exit, provide case management as needed, coordinate with participants' existing case managers and hꢃusing navigators, and conꢩect parꢙicipants to existing services as needed.
•
•
•
•
2 FTE resident aides on-dꢲty weekday evenings and weekends to oversee site (facilitate mealꢵ, showers, etc.).
1 FTE m꣈intenance staffpersons on duty weekday evenings and weekends to keep the site clean and operꢤtional.
1 FTE Housing Navigator with substantial experience in connecting program partꢘcipants with permanent housing to ensure the success ofthe program. 1 FTE Case M꣈nager to ensure cloꢵe collaboration between services and efficient and ꢖꢗꢘꢙꢚꢛ linkages to care, andwho wiꢐꢐ work closelywith ꢙhe Housing Navigator to find appropriate housing for all program participants.

These staffing levels may be modified in accordance with the final aꢜꢜꢝꢞꢟꢠ Operations and Services Plan. L.A. CADA will ꣈lso be providing a monthly rep01t in a ꢡꢢꢣꢤꢥ approveꢠ by the City, deꢣonstrating ꢤggreg꣈te enrollment and exit data and proviꢵion of/connection to ꢵ꣍rvices.

The proposed ꢵtaffing plan could be modified based on the Operꢓtions ꣈nd Service Plan deveꢐoped in Task 1. Deliverables: Monthly Repmts (12)
TASK 2.2: Project Management
The Consultant will host a kick-offmeeting and monthly check-in callꢵ with the City.

Deliverables: Kick-off meeting agenda ꣈nd meeting notes (1); monthly meeting agendas and meeting notes (12).

L.A. CADA wiꢐl establiꢵh MOUs with our community ꢦꢧꢨꢩꢪꢫꢬ to detail ꢭꢮꢯꢰꢱꢲꢳꢴꢵ and responsibilities ꢶꢷ ꢸꢹꢺ coordination of services and ꢻꢼꢽꢾꢿꣀꣁꣂ Theꢵe paitners will include:

SPA 8 ; ltidscpnmJI Teams (MDT); Housing Navigation Teams; PubUc Spaces
Teams; the L Engagement (HET); as well as local providers

Supplemental Homeless and Hard-to-Reach
Populations.

Additionally, L.A. CADA is skilled and experienced at workꢘng with city staff, local law enforcement, and community service providers to coordinate ꢵervice ꣃ꣄ꣅ꣆꣇꣈꣉꣊ and program services.

Existing L.A. CADA partnerships will be ꣋꣌꣍꣎꣏ to the proposed program. This includeꢵ our partnership with the Los Angeles Mission (where we house up to 50 chronically homeless men with SUD or cooccurring SUD and mental halth disoders (COD). L.A. CADA also
has a strong pwitHomeb dusi(whre w provide SUD
and COD
tratmnt, as well as transitional supportive housing sevices Homeboy trainees (new
hires). W also paitner with Trantl Living Homes (where we screen and provide
suitable housing for lw-to-medum risk Registred Sex Offenders with SUD or
cooccurrng SUD and COD).

L.. CADA is the desinated SUD service provider this housing program. This will
alow timely and efficient linkages to SUD, mental health, MAT, an various other
services we ffer or deemed necessary through he lngh of he project. We ar currently
Homeless outreach srvices to the city of and have
deveped an
ffective and positve working relationship with the City staffand an in dpth understading
f he aea. Through our homless ourach work MOU, we
are already
collaborating with St. Margart's Cnter (Catholic Charits) who is ne of the city specific
provides for this program and have developed a positive working reltionship with them.

L.A. CADA s a long- tim paiticipant in the L.A. County Coordinated Entry Systm 95%
ofour residential tatmnt clints are hmeless a service intake. We participae in the CES
in SPAs 4, 7, 8, and 3. In addiin, our gency is a CES Access Point in SPA 7. L..

CD
is with CES procdurs/resources, includig use f the
,te
VIxcPza Decision
As Tool (Vl-SPDT), and CES
reprting requirements. For the prposed projec, L.A. CADA will designae staffto attend
SPA 8 CES meetngs. Ouprojcsaff will work closly with locl Access Centers and
ccess Pints in both SPAs o accep of homlss individuals in need of L.A.

CADA services. This will include service coordination with Stain Homeless
Services (srving adults) nd Sycamores (serving TAY). L.A. CADA saff will

warm hand-offs to neded servics homeless rsidents in Hawthorne va L.A.

CADA
van/driver. o resouces wil be by
Mmorandum of
Understanding (MOU) that L.A. CADA will pu in place wih poject paitners in th
community.

L.A. CADA wll lvragou own considerabl resouces for this project.

Homeless
residents ofHawhorne served will have priority access to:
248 state-licensed residntial tratment beds (including a 16-bed 24/7 menal halh crisis
treamen program in Santa Fe Springs); 244 Recovery Bridge Housing beds (including 71 beds in the San Gabriel Valley);
A new 20-bed emergency Over 500 state-certified outpaient treatment slots; and shler o be pened Summer 2022.

The City of H will work direcly with L.A. CAD team members to access the
proposed services in the mannr that bes suits that city. L.. CD project staff will
schedule regular mtings with city staff, and communicate via phone, email,
and officil documents o ensure thath project is filling the needs of the city.

L.A. CADA will also provide a 24/7 rsponse numbr so that city stff can communicate
with L.A. projecstaff t all imes.

L.A. CADA can also ensure the success of the sit by g our expertise wih this
service population, our abiity to leverage our own srvices, and our aherence to quality
assurance. Ou primary service groups are vulnerable, disadvantaged popultios.

These
groups include: e homeless; low-income residents; persons color; ga
women and their children,· persons iving with and at-risk HIV; high-riskyouth and their
families; people involved h1 crirninaljustice andLGBTQ+persons. L.A.

CADA
is one of the only behavioral healthcare providers in Los Angls County able to delivr
LGBTQ+ Affirming (excusive) care - ratd the hghest quality f treatment this
population by the Substance Abuse and MentaHalth Servces Administrtion
(SAMHSA). 3
In 2022, the L.A. CADA continuum of care includes ove 500 slots outpatient and
intnsive outpatent treatment, 248 residential treatment bes, 244 Rcvery Bridge
Husing beds, an broa spctru f jailbased, court-base, school-basd, and
ommnity-bsed srvics. As nted, L.A. CADA include
16-bd Crisis
Residential Program (CRTP) cald Haven, n by th L.A.

County
Department f Mental Halth to stabiliz adults in mental halth crisis. Clint pmticipation
in this short-term prgram can be by residentil or outpatient tratmnt at L.A.

AA or in our Residential Bige Husing (RBH) with ff-sie outptient re. RBH
provids a pac people in behavioral hlth crsis to stabiliz and establish early
sobrity. In 2021 L.A. CADA opnd a Community Bhavioral
Cinic
(CBHC) in Santa F Springs tdelivr omprhensiv, cordinatearlwincm people. Our reatment arnd license by the State
of
Departmnt ofHealth rSrvices, and mnitord by the Los Angeles County Deprmnt
ofPublic Health.

Ls Angeles Centers Alcohol and Drug Abuse maintains
Quality
Improvement (QI) Divisin to evaluate our srvices nd thir utilization by our ptients. Fr
ach projct, an evalution plan is dvlped, includng Logic Mdetiling
specific goals, objctivs, inputs and expected outcomes. Our QI Coorinator works with
program staff to continuously collect, monitor, rviw, an diverse client lvel
demographis; historie (substance use, mntal health, tretment, husing, isses,
socil servics), as well as clint treatmnt and utcms.

Data colctin is conductuing bth pencil/paper documents and the agncy's electrnic
reords system (SAGE). Stff ntr all required project and program dta on a daily basis.

Fils re reviwed weky by each Prgram Directr/Maager to ensure omleteness and
ccuracy. uring monthly metings with the of Quity
Improvement, project
stff discuss and reviw progress toward prgram goals nbjectves. Any neded couse
corrctins to improve th program ar implemented by thPrgram

this time.

As noted throughot the application L.A. CADA will everage our own resources which
includes SAPC, DMH, SAMHSA, and other n contracts secure additinal
and ervices avilable to the sitan the neds of the
progrm
participants. L.A. CADA programs work closely with the L.A. County Coordinated Entry
System (CES) the homeless in the Service Planning Areas (SPAs) that L.A.

CADA
serves (SPAs 3; 4; 6; 7; and 8). As such, we hve experience coordinating additional
services, if and when necessary, though the SPA 8 CES
As noted, L.A. CADA staff will use the innvative eidence-bsed prctics required to
provide the highst quality ad most response homeless
residents with
behaviorl health issues. The EBPs or elements of the EBPs to b used in this program are:
• Motivational Intervieing 19
•
•
•
•
•
•
Eight Principles of Harm Reduction 20
Principes
ofe Care 21
Intensiv Husing First/ Low Cs Management 22 Barrie Access 23 LGBTQ+-Affirming and LGBTQ+ Snsitive Car
24 • Assetiv Cgnitiv Community BhvioralTretment Therapy 25 26•
•
•
•
Risk-Need-Responsivity model offender assessment and rehabilitation 27 Reapse 12 Step Facilittion Prevention Therapy 28 Therpy CLAS 29 Natinl Stndrds Culturally and Linguistically Appropriat Servics in
Health and Healthcare 30 •
•
Medication Assistd Treatment Opioid Use Disordr
31 Per Recvey Suppot 32
n additio, ppropiatstaff (ome to be hired) will be ipace tnsure that al servies
cn be dlivered in English, Spanish, Mandain, r ASL as peclint L.A
CADA is also encouraging the hiring f additional staff as outlined i this proposal nd
budget to ensure 24/7 cmprehensive ca to ach prgram participant. the completion of Service 1 L.A. CADA will begin the impementation of Service 2
on an appropriate timelin that would be determined in coordination with the City of he during phase 1. L.A. CADA understands that the Task Oder Service 2 may
b exercised at the City's soe discretion the sufficient completin of Service 1.

L.A. CADA wil operate the site in accordance with the pproved Opeations nd Service
Plan the sit Operations and services activities will include but ar not limited to the
identify and screen participants, accept e conduct
ogram intak and
exit, cordinate with existing case managrs and housing navigators provide case management and housing navigtin, and connect participants to other supportive services
as needed. L.A. CADA has extensive experience and expertise in all areas required of Service 2 and ofconducting sites with similar populations and neds. As such, L.A.

CADA will come prpared to a Service 1 kick-off meetings with examples

developed ptions of operation and service plans the city to conside and rview.

EXHIBIT C

INSURANCE
EQMT Prior to the begnning of and throughout the duration ofte Work, Consultat will maintain
insurace in with the requirements set below. Consultant will use
existing coverage to comply with these requrements. Ifthat existing coverage does not meet
the requiremets set here, Consultant agrees to amend, supplement or endorse the
existing coverage to do so. Consultant acknowledges that the insurance coverage nd policy
limits set in this sectio constitute the minimum mount of overage required.

Any
insurance proceeds available to City in excess of the limits and coverage required in this
Agreement and which s applicable to a given loss, will be available to City.

Consultant shall provide the types and amounts of
insurance:

Commercial General Lb Insurance usng Insurance Services Office "Commercial
General Liability" plicy CG 00 01 or the equivaet. Limits are subject to review but
in no event less tan $1,000,000 per occurrence. Professioni Coverage. Consultant shall maintain - Liabiity
Insurance (and/or errors & Omissions Insurane) protection against claims alleging
negligent act, errors r omissions which may arise Consultant's operatios under this
Agreement, whether such operatons be by the Consultant or by its empoyees, o
subconsultants. The amount of this insurance shal not be less than one milion dollars ($
1,000,000) on a claims-made annual aggregate basis, or a combined single-imitper occurrence
basis.

EXHIBIT

BUDGET & SCHEDULE OF D

COMPENSATION
City of Hawthorne - Bridge of Hope
Budget
Hourly
Rate
Service 1
(Operation of Site)
Service 2
(Operation of Site) GRAND TOTAL
Total
Hours
Total
Hours Cost Cost Hours Cost
Service 1
Program Manager
City Liasion Director
$50.64
$50.64
2080 $105,339.52 $0.00 2,080
208
$105,339.52
208 $10,533.12 $0.00 $10,533.12
Service 2
Site Manager $33.00
$32.00
$30.00
$29.00
$29.00
$0.00
$0.00
$0.00
$0.00
$0.00
2080 $68,640.00
$66,560.00
$24,960.00
$60,320.00
$60,320.00
2,080
2,080
832
$68,640.00
$66,560.00
$24,960.00
$60,320.00
$60,320.00
Case Management 2080
Housing Navigator 832
Resident Aide (weekday evening)
Resident Aide (weekday morning)
2080
2080
2,080
2,080
Maintenance Staff (weekday) $30.00 $0.00
$28,968.16
$144,840.80
2080 $62,400.00
$85,800.00
$429,000.00
2,080 $62,400.00
$114,768.16
$573,840.80
Benefits 25%
STAFFING TOTAL 13,520

OTHER DIRECT COSTS
Van lease and maintenance
Food
$20,000.00
$90,000.00
$6,000.00
$6,000.00
$21,000.00
$9,727.18
$3,000.00
$68,860.90
Gasoline for van
Office Expenses
Site cleaning & participant bedding/hygiene supplies including Porta Potty should the city approve.

Insurance
Activities
Indirect Costs 12%

OTHER DIRECT COSTS
TOTAL

PROJECT TOTAL
$224,588.08
$798,428.88
Schedule of Compensation

1. Subject to any limitations set rh in this Agreement, City agrees to pay Consultant the amounts specified in this Section. The total annual compensation will be Seven
Hundred Ninety-Eight Thousand, Four Hundred Twenty-Eight and 88/100 Dollars ($798,428.88) per year (the "Annual Contract Sum") unless additional compensation is approved pursunt to Section 2. The Annual Contract Sum is all inclusive and covers all labor, materials, direct and indirect costs, and
expenses necessary l to vide services under this

2. City acknowledges Agreement. nd agrees that it shall pay compensation under this Agreement
n a monthly, flat rate basis. This method of is calculated by dividing
the Annual Contract Sum by twelve (12) months. Specifically, Consultant will receive monthly compensation in the amount of $66,535.74 USD (the "Monthly Fee") per month during the course of this Agreement.

AGENDA ITEM NO. íñ
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of April 23, 2024
Originating Department:  Police ‐ Operations
City Manager:  __________
Vontray Norris
Chief of Police:  ___________
Gary Tomatani
SUBJECT:

Amendment No. Three to Agreement No. 5793 Between the City of El Segundo and the City of Hawthorne For Supplemental Law Enforcement (Jail) Services.

RECOMMENDED MOTION:

Staff  recommends  that  the  City  Council  approve  and  authorize  the  City  Manager  to  execute Amendment No. Three to Agreement No. 5793 Between the City of El Segundo and the City of Hawthorne, entered into in October of 2019, for the City of Hawthorne to provide supplemental law enforcement (Jail) services.

DISCUSSION:

In  October  2019,  the  cities  of  Hawthorne  and  El  Segundo  entered  into  an  agreement  for Hawthorne to provide supplemental jail services for El Segundo.  The October 2019 agreement provided for the City of El Segundo to use the Hawthorne jail only on weekends at a cost of $7,500 per month
In October  2020,  the  City  of  El  Segundo  requested  an  amendment to  original  agreement  for Hawthorne to provide 24/7 jail services for El Segundo for a period of six months (to take effect in  November,  2020).   The  police  departments  of  both  cities  agreed  to  a  monthly  charge  of $12,000 for the proposed amended service.

On July 1, 2021, both parties entered into a Second Amendment to the Agreement (“Amendment No. 2) which changed the Section 3 of the Agreement to terminate the Agreement on June 30, 2024.  The  police  departments  of  both  cities  agreed  to  a  monthly  charge  of  $15,000  for  the proposed amended service.

In  February  2024,  the  City  of  El  Segundo  requested  a  Third  Amendment  to  the  Agreement (“Amendment No. 3) to extend the termination date to June 30, 2027.

ECONOMIC DEVELOPMENT STRATEGIC PLAN:

Generating revenue for the City of Hawthorne by providing supplemental law enforcement jail services.

FISCAL IMPACT:

None.

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

1. Amendment No. 3 to Agreement No. 5793

AGENDA ITEM NO. 16

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of April 23, 2024
Originating Department: Police - Operations
City Manager: __________
Vontray Norris
Chief of Police: ___________
Gary Tomatani
SUBJECT:

Approval of Agreement Between The City of Hawthorne and the City of Gardena For Supplemental Law Enforcement (Medical Director) Services.

RECOMMENDED MOTION:

Staff recommends the City Council approve and authorize the City Manager to execute the Agreement Between The City of Hawthorne And The City of Gardena For Supplemental Law Enforcement (Medical Director) Services.

DISCUSSION:

The Hawthorne Police Department has been providing Supplemental Law Enforcement Medical Director Services for the Gardena Police Department for the last three years. The City’s Police Department staff has requested to continue the service for another year. The Hawthorne Police Department Medical Director will oversee the City of Gardena Police Department CPR, First Aid, AED, Narcan, and Tactical Medicine training. Hawthorne Medical Director will develop and maintain standard policies and procedures to provide optimal first responder medical care for the community of Gardena. Medical Director will provide continuing education, training and oversee the quality assurance and quality improvement program. The police department of both cities agreed upon an annual cost of $25,000 for one (1) year for the proposed service requested.

ECONOMIC DEVELOPMENT STRATEGIC PLAN:

Generating revenue for the City of Hawthorne by providing supplemental law enforcement Medical Director services.

FISCAL IMPACT:

None.

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

1. Agreement Between The City of Hawthorne And The City of Gardena For Supplemental Law Enforcement (Medical Director) Services

AGENDA ITEM NO. 17

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of April 23, 2024
Originating Department: City Manager
City Manager: __________
Vontray Norris
SUBJECT:

Proposed Funding Option for Capital Improvement Projects RECOMMENDED MOTION:

Staff Recommends that the City Council authorize staff to execute an agreement with Ramirez and Company.

DISCUSSION:

The City of Hawthorne (the “City”) is planning significant investments in infrastructure to address deferred maintenance and enhance services for residents. After conducting a statewide survey on funding practices, city staff recommends issuing approximately $25 million in Lease Revenue Bonds (“LRBs”) to support a portion of the Capital Improvement Projects (“CIP”).

The City’s CIP encompasses a wide range of projects with an estimated total cost of $[42.8 million]. Key projects include improvements to major boulevards, highway enhancements, and upgrades to public facilities. To finance these, the city will utilize various sources, including local return dollars, federal and state grants, American Rescue Plan Act (ARPA) funds, and the General Fund. The multi-phase City Hall Expansion and Civic Park project will include a new three-story 10,500 square foot expansion building connecting the existing City Hall, an underground parking structure with over 160 parking spaces, a 95,000 square foot landscaped civic center park and the existing 9,700 square foot Bank of America building converted into a public retail hall.

The project will be done in four phases. The first phase will be the underground parking structure, with construction expected to begin in September 2024 and is estimated to take 8 months to complete. After the completion of the parking, the next phase will take place, which includes the Civic Park that will be above the parking and the City Hall expansion building. Following that will be the conversion of the Bank of America building into a public retail hall and finally, the interior renovations for the existing City Hall.

For the issuance of the LRBs, the City has engaged Ramirez, a seasoned investment bank with extensive

experience in municipal bonds. Their track record includes the successful management of $121.8 million pension obligation bonds for the City in September 2019, which refinanced the City’s unfunded accrued actuarial liability with the California Public Employees’ Retirement System. Due to Ramirez’s experience with the City and their strong qualifications, staff believes they are best qualified to lead the proposed financing.

LRBs will enable the City to preserve reserves while facing potential economic challenges, with a borrowing cost seen as favorable. Staff is working on strategies to potentially improve the City’s credit rating, which would further reduce borrowing costs. A preliminary schedule aims for fund acquisition by July 2024, following a detailed timeline that includes the selection of a financing team, document preparation, and the formal approval process.

The proposed issuance of Lease Revenue Bonds is a strategic move to finance critical infrastructure projects in the City, leveraging the City’s improved financial position and the expertise of a reputable financing team with relevant experience. This approach aims to balance immediate infrastructure needs with long-term fiscal sustainability and economic resilience.

ECONOMIC DEVELOPMENT STRATEGIC PLAN:

1.1 Make ED part of every City decision. Will include alignment of Capital Improvement Plan (CIP) to ED goals and identify goals and objectives of this plan on CC agenda items.

FISCAL IMPACT:
$25 million in Lease Revenue Bonds
NOTICING PROCEDURES:
72 hours posted notice pursuant to the Ralph M. Brown Act ATTACHMENT(S):

1. Proposed Funding Option for Capital Improvement Projects City of Hawthorne
Proposed Funding Option for
Capital Improvement Projects
April 2024
Table of Contents and Executive Summary
I. Project Overview
a. The City is making significant investment in its infrastructure to address significant deferred maintenance and to improve services for residents
b. Staff conducted a statewide survey to evaluate best practices and would like to recommend issuing ~$25 million of lease revenue bonds (LRBs) to help fund a portion of its CIP II. Team Selection
a. City staff has engaged a highly qualified investment bank to help identify the optimal approach and lead the underwriting efforts on behalf of the City b. The selected underwriter has a history of success with the City of Hawthorne III. Benefits, Considerations, Cost and Timeline
a. LRBs will help the City protect reserves for a potential economic slowdown or unforeseen economic uncertainties at a favorable borrowing cost
b. To minimize its borrowing cost, staff is evaluating various structuring options and working to establish policies that could help deliver a credit rating upgrade c. Preliminary timeline would secure funds by July 2024 Section I
Project Overview
3 The City is Making Large Investments in its Infrastructure  The City has done a good job of
improving cash reserves and is
now undertaking much needed
capital improvements for
residents
 CIP projects total [$42.8
million] over 5-years
 City staff is using a variety of
funding mechanisms to minimize
or eliminate debt financing
 Local return dollars
 Federal, State, County and
local grants
 ARPA funds
 General Fund
City of Hawthorne Capital Improvement Projects
Project Est. Cost
El Segundo Blvd. Improvement (Phase II) $600,000
Imperial Highway Improvement $3,800,000
El Segundo Blvd Improvement (Phase I) $2,000,000
Rosecrans Ave Improvement $4,000,000
Rosecrans Ave (Signal & Capacity Enh.) $2,000,000
120th St. Improvements (Phase II) $0
Crenshaw Blvd Improvement $4,000,000
North East Hawthorne Improvement $4,300,000
120th St. Improvement (105 Fwy To Felton) $3,200,000
Moneta Gardens Improvement $4,600,000
Hawthorne Blvd Mobility (Phase II) $2,350,000
Betty Ainsworth Gymnasium Roof Replacement $787,000
Sewer Main & Misc Storm Drain $2,200,000
Seismic Retrofit 2023 $0
City Owned Building Roof Rehabilitation $1,500,000
Hawthorne Jim Thorpe & Council Chambers $444,000
Hawthorne Memorial Center Hvac System $2,426,000
Hawthorne Housing Rehabilitation $4,147,000
Zela Davis Park Renovation Project $0
Alley Improvement Project Cdbg Funds $450,000
Total $42,804,000
4 CIP Funding Survey of California Cities to Evaluate Best Practices Recent Civic Center and Public Safety Expansion Projects ($millions) Rialto Indio Lake Elsinore Ontario Fontana S. San Francisco Projects Police Station
Refunding +
Public Safety +
City Hall
City Hall City Hall +
Fire Station
Refunding +
Fire Station +
Training Facility
Civic Center +
Police Station
Funding
Mechanism
Lease Revenue
Bonds
Lease Revenue
Bonds
Lease Revenue
Bonds
Lease Revenue
Bonds
Lease Revenue
Bonds
Lease Revenue
Bonds
Sale Date Dec 2023 Jun 2022 Jun 2022 May 2022 Oct 2021 May 2021 Bond Amount $56.5 $119.5 $23.7 $90.8 $23.1 $86.4
Project Cost $83.0 $106.0 $28.0-30.0 $136.3 $22.0 $185.8 Completion Jul 2026 Q1 2025 Jun 2024 Q2 2025 Mar 2023 Q2 2023  California cities are investing in public infrastructure due to years of deferred maintenance  Many cities have healthy General Fund budgets due to growing property taxes, increasing sales taxes and Federal and State grants
 To identify best practices, our team conducted a survey of the funding mechanism most commonly used by peer group cities throughout the State  Our statewide survey shows LRBs are the most commonly used funding tool for CIP projects of all sizes
Section II
Team Selection
6 The City Engaged a Top Ranked Investment Bank
52 52 years in business (one of the oldest and largest privately-owned investment bank in the U.S.)
25% Ramirez is an underwriter in 25% of all municipal bonds sold nationally since 2020 (full credit to each)
80% 80% of Ramirez’ business is in municipal bonds
$5.3 bn Sufficient capital to underwrite a $5.3 billion issue $211M Average size for Ramirez senior managed bond issues* 36 17 municipal bond sales specialist, 16 taxable bond sales specialist and 3 local gov’t investment pool sales specialists
*Source: Thomson Reuters from
1/1/2020 through 10/26/2023
 The City has engaged Ramirez because they have the experience and resources to deliver the lowest borrowing cost to the City
 National resources with local experts and history of working with the City Eric McKean
Managing Director
General
Government Expert
7 Local Banking Professionals with Relevant Experience
Fernando Guerra
Managing Director
Policy Expert
Esthela Carreon
Vice President
Banking Support
General Government Team
Patty McGrorry
Managing Director
Lead Underwriter
Peter Block
Managing Director
Credit Strategies
Underwriting and Credit ($5.3 billion UW Capacity)
Banking Coverage Team
Raul Amezcua, Senior Managing Director
Role: Head of West Coast Public Finance
 32+ years of experience
 Former Head of CA Public Finance at
Stifel & De La Rosa & Co.; joined
Ramirez in same role on Feb. 1, 2021
Mike Mejia, Managing Director
Role: California Specialist
 Lead banker on the City’s 2019 POBs
 Structured over 100 California senior
managed financings with a par amount
of more than $7 billion
Shayan Golshan, Associate
Role: General Government Support
 Most recently helped craft the credit
narrative and execute LRBs for the cities
of Placentia, Lynwood and El Centro
8 Experience Working with California Cities
$20,000,000* $42,295,000 $12,715,000 $9,190,000 $174,740,000

CITY OF

MONTEREY PARK

CITY OF

INGLEWOOD CITY OF CLOVIS

PLACENTIA PUBLIC

CFINANCING AUTHORITY

CITY OF

LOS ANGELES
Sole Manager Senior Manager Sole Manager Sole Manager Co-Senior Manager March 2024 September 2023 August 2023 August 2023 July 2023 $40,825,000 $10,275,000 $21,330,000 $90,830,000 $36,525,000

EL CENTRO PUBLIC

FINANCING AUTHORITY

SUCCESSOR AGENCY TO

CITY OF LYNWOOD

SUCCESSOR AGENCY TO

CITY OF VERNON

ONTARIO PUBLIC

FINANCING AUTHORITY

CITY OF

SAN FERNANDO
Senior Manager Sole Manager Sole Manager Senior Manager Sole Manager May 2023 October 2022 June 2022 May 2022 August 2021
$226,180,000 $16,700,000 $106,335,000 $17,590,000 $121,865,000

CITY OF

REDONDO BEACH

EL CENTRO FINANCING

AUTHORITY

CITY OF

MONTEREY PARK

CITY OF

COACHELLA

CITY OF

HAWTHORNE
Joint-Book Runner Sole Manager Senior Manager Sole Manager Senior Manager July 2021 May 2021 February 2021 November 2020 September 2019 *Pending; subject to change.
9 Successful History with the City of Hawthorne
Overview
City of Hawthorne
2019 Taxable Pension
Obligation Bonds
Date: September 2019
$121,865,000  Bonds were issued to refinance the City’s entire unfunded accrued actuarial liability of the California Public
Employees’ Retirement System
Successful
Results
 Structured with level debt service to improve future
budgetary control and secure refunding savings
 30-year level debt service and a traditional 10-year
par call option
 Ramirez conducted a robust two week marketing period
to secure credit approval from the maximum number of
investors
 Marketing included an investor roadshow and
multiple one-on-one calls with investors
 Generated orders from a broad universe of buyers
that allowed Ramirez to reduce spreads by 10 bps
in 2049 from pre-pricing levels
 Investor demand helped secure an All-In True Interest Sole Senior Manager Cost of 3.61%
Section III
Benefits, Considerations, Cost and Timeline
11 LRBs Offer a Cost Effective Funding Option to the City 1/18/2000
High: 6.04%
8/10/2020
Low: 1.28%

0.0 1.0

2.0 3.0

4.0 5.0

6.0 7.0
Jan-00Jan-01Jan-02Jan-03Jan-04Jan-05Jan-06Jan-07Jan-08Jan-09Jan-10Jan-11Jan-12Jan-13Jan-14Jan-15Jan-16Jan-17Jan-18Jan-19Jan-20Jan-21Jan-22Jan-23Jan-24 Since 2000
Average: 3.74%
Current
4/3/2024: 3.78%
30-Year Tax-Exempt Interest Rates (January 2000 to Present)  Interest rates are at historical averages despite increases from their all-time lows (COVID)  Cities utilize LRBs as a funding sources to protect reserves and spread upfront costs  LRBs are most commonly structured with level debt service over 30 years  Bonds will include an option to refinance the bonds prior to their maturity 12 LRBs Offer a Cost Effective Funding Option to the City  In preparation for a bond financing, the
City will be making an effort to improve
its credit rating
 The City is establishing management
policies that are considered best
practices by the rating agencies
 Higher rating would reduce the
borrowing cost of the transaction
 Structuring alternatives will be evaluated
in the upcoming months to ensure the
City moves forward with the most
favorable option
 Asset transfer to eliminate
capitalized interest
 Net vs. Gross funding
Sample Bond Cost - $25 million
City of Hawthorne1
30-year Level Debt Service –10-year Par Call
Project Fund $25,000,000
Interest Rate2 4.24%
Annual Debt Service $1,484,599
Total Debt Service $44,537,975
1Preliminary; subject to change.
2All-in True Interest Cost.

City of Hawthorne Credit Overview
Current Rating in High Grade Category
‘Aa3/AA-/--’
 City will focus on the following
 Revenue growth and strong liquidity
 Robust economic development
 Best practices on financial policies to
improve management score
13 Preliminary Timeline1
Date Action
May 7th Kick-off Zoom call to discuss the Plan of Finance May 9th Draft preliminary staff report recommending the City formally hire the financing team circulated May 14th Comments due on preliminary staff report
May 21st Staff report submitted to City Clerk
May 28th City Council meeting to formally appoint financing team June 4th Initial draft of bond documents and POS circulated June 11th Comments due on bond documents and POS
June 18th Second draft of bond documents and POS circulated June 20th Comments due on bond documents and POS
June 25th First draft of Credit Presentation, third draft of bond documents and POS circulated June 27th All hand meeting to review Credit Presentation July 2nd Second draft of Credit Presentation circulated July 9th Comments due on second draft of Credit Presentation, third draft of bond documents and POS July 9th Third draft of Credit Presentation circulated
July 11th Comments due on third draft of Credit Presentation July 15th Submit Credit Package to Rating Agency and
Bond Insurers (if needed) and distribute proposed final Credit Presentation July 16th Credit Presentation Prep Call
Wk of July 22nd Credit Rating Presentation
Wk of August 5th Rating due
August 13th City Council meeting to approve sale of LRBs August 15th Post POS
August 21st Pre-pricing call
August 22nd Price Bonds
September 18th Closing
1Preliminary; subject to change.

Ramirez & Co., Inc. (“Ramirez”) has prepared this material and any accompanying information exclusively for the resolution to whom it is directly addressed and delivered in anticipation of serving as an underwriter to you. As part of our services as underwriter, Ramirez may provide advice concerning the structure, timing, terms, and other similar matters concerning potential financings Ramirez proposed to underwrite. This presentation is not complete and should only be viewed in conjunction with any oral briefing provided and any related subsequent material and/or presentation.

This presentation is for discussion purposes only. The information provided is based on information, market conditions, laws, opinions, and forecasts, all of\ which are subject to change. Ramirez is not obligated to update material to reflect subsequent changes. In preparing this presentation, information contained herein has been obtained from sources considered reliable, but Ramirez has not verified this information and does not represent that this material is accurate, current, or complete and it should not be relied upon as such. This presentation does not constitute a commitment by Ramirez to underwrite, subscribe for or place any securities or to extend or arrange credit or to provide any other services.

This material is not research and does not constitute tax or legal advice. Unless otherwise stated, any views or opinions expressed herein are solely the opinions of the author but not necessarily those of Ramirez and such opinions are subject to change without notice. The material contained herein is not a product of a research department and is not a research report. In accordance with IRS Circular Disclosure 230:

Ramirez does not provide tax advice. Accordingly, any discussion of U.S. tax matters included herein is not intended or written to be used, and cannot be used, in connection with the promotion, marketing, or recommendation by anyone not affiliated with Ramirez of any of the matters addressed herein or for the purpose of avoiding US tax related penalties. Additionally, Ramirez does not provide legal advice. Questions concerning tax or legal implications of materials should be discussed with your tax advisors and/or legal counsel.

Ramirez is not acting as a financial advisor or Municipal Advisor. Ramirez is not acting as your financial advisor or Municipal Advisor (as defined in Section 15B of the Securities Exchange Act of 1934, as amended), and will not have a fiduciary duty to you, in connection with the matters contemplated by these materials. You should consult your own financial advisors to the extent you deem it appropriate. Any information and/or analysis contemplated by these materials is provided by Ramirez in our capacity as either an underwriter or potential underwriter of securities.

Responsibilities of Ramirez as an underwriter. As an underwriter, Ramirez is required to deal fairly at all times with both municipal issuers and investors. Ramirez must purchase securities with a view to distributing securities in an arm’s-length commercial transaction with the issuer and has financial and other interests that differ from those of the issuer. Ramirez has a duty to purchase securities from issuers at a fair and reasonable price, but must balance that duty with its duty to sell them to investors at prices that are fair and reasonable.

Disclosure

AGENDA ITEM NO. 18

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of April 23, 2024
Originating Department: City Attorney
City Attorney: ___________
Robert Kim
SUBJECT:

Claim for Damages from Terrance Louis McCauley and Jaxton J., a Minor.

RECOMMENDED MOTION:

Deny the Claim of Terrance Louis McCauley and Jaxton J., A Minor.

DISCUSSION:

The claimants allege dangerous condition and seek damages arising out of an vehicle to pedestrian accident.

ECONOMIC DEVELOPMENT STRATEGIC PLAN:

FISCAL IMPACT:

None.

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

1. None