Hawthorne City Council
August 12, 2025

SCOPE OF SERVICES
TASK 1: KICKOFF MEETING
RSG will familiarize ourselves with the current fiscal condition of the City by reviewing the current annual budget and most recent Annual Consolidated Financial Report and prepare an agenda for a virtual kickoff with the City’s preferred team. During the kickoff meeting, we will discuss the desired outcomes for the work, the resources the City is able to share to assist with this effort, and the duration of the forecast (up to 25 years).

Following the meeting, RSG will transmit a set of actions and agreements and any refinements to the project schedule.

TASK 2: CREATION OF FISCAL MODEL
RSG will provide the Director of Finance or their designee a request for information, which we expect will include an Excel file of the City’s Trial Balance report for the General Fund, other detailed transaction files, and key agreements that may be pertinent to our forecast. We may also request other information of the City, and anticipate some limited back and forth with the Finance Department to clarify information we collect.

Upon receipt of requested accounting records (in Excel format), RSG will commend creation of an Excel workbook for a base year of the forecast, anticipated to be FY 2025-26, a development forecast based on known projects in the City’s planning pipleline, and create a long range forecast of up to 25 years. RSG will create input assumptions initially that can be modified after consultation with the City in Task 3 below.

TASK 3: MODEL REFINEMENT WITH CITY STAFF
This task involves conducting up to two virtual check in meetings with the Finance Department to discuss assumptions driving the forecast. RSG will aim to collaborate with City staff on appropriate and reasonable estimates for revenues and expenditures based on recent trends identified by City staff, future development pipeline, and other factors. RSG will then refine the model and draft a brief summary of our inputs, assumptions, methodology and findings and develop illustrations and summaries to augment decision makers at the City understanding of the conclusions. RSG will transmit our Excel file along with the supporting narrative to the City.

TASK 4: PRESENTATION TO CITY COUNCIL
RSG will be prepared to present the long term fiscal plan to the City Council later this fall after staff review is complete. We have included one, in-person meeting in our scope of services.

FEE ESTIMATE
RSG is proposing to bill for these services on a time-and-materials basis, not-to-exceed $29,870.

Our budget worksheet accompanies this letter.

RSG would charge for these services based on our hourly rate schedule:

Felice Lopez, Director of Finance
Finance Department

CITY OF HAWTHORNE
July 17, 2025

Principal $ 305
Director $ 295
Senior Associate $ 250
Associate $ 205
Senior Analyst $ 185
Analyst $ 170
Research Assistant $ 145
Technician $ 120
Clerical $ 100
RSG does not charge clients for travel or mileage (except direct costs related to field work/surveys), parking, standard telephone/fax expenses, general postage, or incidental copies. However, we do charge for messenger services, overnight shipping/express mail costs, and teleconferencing services. We also charge for copies of reports, documents, notices, and support material in excess of five copies. These costs are charged back at the actual expense plus a 10% surcharge.

RSG issues monthly invoices payable upon receipt, unless otherwise agreed upon in advance.

Invoices identify tasks completed to date, hours expended, and the hourly rate.

Please let me know if you have any questions or refinements to this proposal.

Sincerely,
RSG, Inc.

Jim Simon
President/Principal
Felice Lopez, Director of Finance
Finance Department

CITY OF HAWTHORNE
July 17, 2025

Scope of ServicesLong Term Fiscal ModelCity of Hawthorne (July 2025) Total
Principal Sr. Assoc Analyst Total Hrs Not to
305 250 170 Exceed
Task 1 Kickoff Meeting 3 4 5 12 2,765 $
Task 1.1 Collect and review public information pertaining to General Fund (budget, ACFR) 1 2 2 5 1,145Task 1.2 Conduct virtual kickoff meeting with client, discuss process and desired outcomes 2 2 2 6 1,450Task 1.3 Route actions and agreements, updated project schedule - - 1 1 170 Task 2 Creation of Fiscal Model - 13 72 85 15,490 $
Task 2.1 Provide client request for information (trial balance in Excel format, agreements) - 1 4 5 930Task 2.2 Coordination with client to clarify data and documents, as necessary - 2 4 6 1,180Task 2.3 Create Excel workbook of General Fund revenues and expenditures, FY 2025-26 - 3 30 33 5,850Task 2.4 Identify major development projects or economic activivity that may make material impacts - 3 14 17 3,130Task 2.5 Develop assumptions and model 15-25 year forecast - 4 20 24 4,400 Task 3 Model Refinement with City Staff 5 11 28 44 9,035 $ Task 3.1 Conduct up to two virtual meetings to discuss assumptions with City management 3 3 3 9 2,175Task 3.2 Refine model based on altered assumptions, develop data visualizations and transmit model - 3 8 11 2,110Task 3.3 Virtual meeting with staff to discuss draft model inputs, assumptions, methodology, and findings 1 1 1 3 725Task 3.4 Revise model and formulate briefing document (narrative, graphics) and assemble deliverable 1 4 16 21 4,025 Task 4 Presentation to City Council 4 - 8 12 2,580 $
Task 4.1 Prepare presentation to City Council and present findings at public meeting 4 - 8 12 2,580 GRAND TOTAL BUDGET 12 28 113 153 29,870 $
Task Hours & Billing Rate
AGENDA ITEM NO. 10.

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of 08/12/2025
Originating Department: Finance
City Manager: Department Head:

SUBJECT:

Agreement between the City of Hawthorne and Rael & Letson in the amount of $27,500.

RECOMMENDED MOTION:

Staff recommends that the City Council approve and authorize the City Manager to execute the agreement with Rael & Letson to provide actuarial consulting services and approve a blanket purchase order, not to exceed $27,500.

DISCUSSION:

Governmental Accounting Standards Board (GASB) Statement No. 75, "Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions," requires government agencies to measure and report liabilities associated with other postemployment benefits (OPEB), such as retiree health insurance. This standard mandates the use of actuarial valuations and expanded financial disclosures in the City's audited financial statements. Actuarial valuations involve estimates and assumptions about the probability of occurrence of events far into the future.

These valuations must be updated every two years and reported in the city's audited financial statements. Staff is recommending that Rael & Letson prepare the City's next OPEB actuarial report.

The City's last actuarial valuation was completed in 2024 with a valuation date of June 30, 2023. The new actuarial valuation will be completed for use in the fiscal year 2025-26, and accounting information for fiscal year 2024-25.

ECONOMIC DEVELOPMENT STRATEGIC PLAN:
.

FISCAL IMPACT:

None. The costs associated with the preparation of the actuarial report were included in the FY 2025-26 operating Budget.

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

ATTACHMENTS
Agreement between City & Rael & Letson - OPEB Actuarial Services Exhibit A:Proposal July 22, 2025

AGREEMENT BETWEEN THE CITY OF HAWTHORNE AND RAEL & LETSON FOR OPEB ACTUARIAL VALUATION SERVICES & GASB STATEMENT No. 75 DISCLOSURES.

THIS AGREEMENT is made and effective as of August 12, 2025, between the City of Hawthorne ("City") and RAEL & LETSON ("Consultant"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

1. TERM
This Agreement shall commence on August 12, 2025 for OPEB actuarial valuation services and GASB Statement No. 75 disclosures. This agreement shall remain and continue in effect until tasks described herein are completed, but in no event later than December 31, 2027, unless sooner terminated pursuant to the provisions of this Agreement.

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

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

4. CITY MANAGEMENT
The City Manager or the Finance Director shall represent CITY in all matters pertaining to the administration of this Agreement, review and approval of all products submitted by Consultant, but not including the authority to enlarge the Tasks to Be Performed or change the compensation due to Consultant. The City Manager shall be authorized to act on City's behalf and to execute all necessary documents, which enlarge the Tasks to Be Performed or change Consultant's compensation.

5. COMPENSATION
(a) The City agrees to pay Consultant in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit A, attached hereto and incorporated herein by this reference as though set forth in full, based upon a time and materials. This amount shall not exceed $27,500 for the contract period.
(b) Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement, which are in addition to those set forth herein, unless such additional services are authorized in advance and in writing, by the City Manager. Consultant shall be compensated for any additional services in the amounts and in the manner as agreed to by City Manager and Consultant at the time City's written authorization is given to Consultant for the performance of said services.
(c) Consultant will submit invoices for actual services performed. Payment shall be made within fortyfive (45) days of receipt of each invoice as to all non­disputed fees. If the City disputes any of Consultant's fees it shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth on the invoice.

6. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE (a) The City may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon the consultant at least ten (10) days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates a portion of this Agreement, such suspension or termination shall not make void or invalidate the remainder of this Agreement.
(b) In the event this Agreement is terminated pursuant to this Section, the City shall pay to Consultant the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City. Upon termination of the Agreement pursuant to this Section, the Consultant will submit an invoice to the City. (c) Consultant may terminate this Agreement for cause if the City fails to cure a material default in performance within a period of 30 days, or such longer period as Consultant may allow, after receipt from Consultant of a written termination notice specifying the default in performance. In the event of termination for cause by Consultant, the City will pay Consultant for all services performed up to and including the effective date of termination.

7. DEFAULT OF CONSULTANT
(a) The Consultant's failure to comply with the provisions of this Agreement shall constitute a default. In the event that Consultant is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating Consultant for any work performed after the date of default and can terminate this Agreement immediately by written notice to the Consultant. If such failure by the Consultant to make progress in the performance of work hereunder arises out of causes beyond the Consultant's reasonable control, and without fault or negligence of the Consultant, it shall not be considered a default. (b) If the City Manager or his/her delegate determines that the Consultant is in default in the performance of any of the terms or conditions of this Agreement, he/she shall cause to be served upon the Consultant a written notice of the default. The Consultant shall have ten (10) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance.

In the event that the Consultant fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement.

8. OWNERSHIP OF DOCUMENTS
(a) Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by City that relate to the performance of services under this Agreement. Consultant shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to the representatives of City or its designees at reasonable times to such books and records; shall give City the right to examine and audit said books and records; shall permit City to make transcripts therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment.
(b) Upon completion of, or in the event of termination or suspension of this Agreement, and provided that consultant has been paid in full for services rendered hereunder, all original documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared in the course of providing the services to be performed pursuant to this Agreement shall become the sole property of the City and may be used, reused, or otherwise disposed of by the City without the permission of the Consultant. Any reuse without written verification or adaptation by Consultant for the specific purpose intended will be at City's sole risk and without liability or legal exposure to Consultant.

9. INDEMNIFICATION
When the law establishes a professional standard of care for Consultant's Services, to the fullest extent permitted by law, Consultant shall indemnify, and hold harmless City and any and all of its officials, employees ("Indemnified Parties") from and against any and all losses, liabilities, damages, costs and expenses, including reasonable attorney's fees and costs to the extent same are caused by any negligent act, error or omission of Consultant, its officers, agents, employees or subconsultants (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this Agreement. With respect to the design of public improvements, the Consultant shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A without the written consent of the Consultant.

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

10. INSURANCE
(a) Consultant shall maintain in­force: Commercial General Liability and Professional Liability Insurance. During the term of this Agreement, Consultant shall maintain in full force and effect a policy of public liability insurance with minimum coverage of $2,000,000 in accordance with the requirements provided by City to Consultant. Consultant shall also maintain in­force; Professional Liability Insurance (and/or Errors & Omissions Insurance) with minimum limits of liability of $2,000,000 per claim against an injury, death, loss or damages because of wrongful or negligent acts or omissions by the named insured.
(b) Contractor shall maintain in­force Workers' Compensation and Employer's Liability Insurance as required by the California Labor Code. Evidence of coverage shall take the form of a Certificate of Insurance or a California Certificate to Self­Insure. Acceptable minimum limits for this coverage are: Workers' Compensation; Statutory in California; Employer's Liability: $1,000,000. (c) Certificates of Insurance. Contractor shall furnish to City evidence of any insurance required by this Agreement. A Certificate of Insurance from an insurer admitted or authorized to do business in the State of California will be provided, indicating that the respective policy(s) meets the following requirements: (1) The City, its officers, employees, and agents shall be named as additional insured on the General Liability Insurance; (2) Insurance shall not be canceled or terminated without 30 days written notice to City or 10 day notice for non­payment of the premium; (3) General Liability shall be primary and any insurance held by City for its own protection shall be excess and shall be effective only upon exhaustion of Contractor's insurance; (4) Insurance shall be maintained for the duration of the Agreement, including any period extended beyond the expiration date of this Agreement required to complete performance as stipulated in this Agreement and all amendments thereto. (d) To the extent permitted by law, Consultant's total aggregate liability arising out of or relating to this Agreement shall not exceed $2,000,000 or the total compensation received by Consultant under this Agreement, whichever is greater.

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

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

13. UNDUE INFLUENCE
Consultant declares that no undue influence or pressure is used against or in concert with any officer or employee of the City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of the City of Hawthorne will receive compensation, directly or indirectly, from Consultant, or from any officer, employee or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling the City to any and all remedies at law or in equity.

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

15. RELEASE OF INFORMATION/CONFLICTS OF INTEREST
(a) All information gained by Consultant in performance of this Agreement shall be considered confidential and shall not be released by Consultant without City's prior written authorization.

Consultant, its officers, employees, agents, or sub­consultants, shall not without written authorization from the City Manager or unless requested by the City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement or relating to any project or property located within the City. Response to a subpoena or court order shall not be considered "voluntary" provided Consultant gives City notice of such court order or subpoena. (b) Consultant shall promptly notify City should Consultant, its officers, employees, agents, or subconsultants be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request, court order, or subpoena from any person or party regarding this Agreement and the work performed thereunder or with respect to any project or property located within the City. City retains the right, but has no obligation, to represent Consultant and/or be present at any deposition, hearing, or similar proceeding. Consultant agrees to cooperate fully with City and to provide the opportunity to review any response to discovery requests provided by Consultant. However, City's right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.

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

CITY: Vontray Norris, City Manager
City of Hawthorne
4455 West 126th Street
Hawthorne, CA 90250
CONSULTANT: Rael & Letson
Doug Pryor, Consulting Actuary
160 Bovet Road, Suite 203
San Mateo, CA 94402

17. ASSIGNMENT
The Consultant shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of the City. Because of the personal nature of the services to be rendered pursuant to this Agreement, only Consultant staff shall perform the services described in this Agreement.

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

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

20. ENTIRE AGREEMENT
This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations, and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material.

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

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

CITY OF HAWTHORNE CONSULTANT
Vontray Norris, City Manager Bruce Cable, Chief Executive Officer City of Hawthorne Rael & Letson

EXHIBIT A
VENDOR Proposal
Dated
1 160 Bovet Road, Suite 203
San Mateo, CA 94402
(650) 341-3311
rael-letson.com
July 22, 2025
Via Email ([email protected])
Felice Lopez
Director of Finance
City of Hawthorne
4455 West 126th Street
Hawthorne, CA 90250
Re: OPEB Actuarial Services
Dear Ms. Lopez:

Thank you for the opportunity to submit our proposal for OPEB actuarial valuation services and GASB Statement No. 75 disclosures for the City of Hawthorne. Our work will include the City’ June 30, 2025 OPEB actuarial funding valuation as well as 2025/26, 2026/27, and an option for 2024/25, GASB 75 disclosures.

About Rael & Letson
Rael & Letson was established in 1963 for the sole purpose of providing actuarial and consulting services on retiree healthcare and pension plans. Today, that is still our focus. In addition to our headquarters in San Mateo, California, we have offices in San Diego, California; Seattle, Washington; and Honolulu, Hawaii. Our client base is over 200 and includes public entities, multiemployer trust funds, and corporate plans. For more information about our firm, please visit our website at www.rael-letson.com.

Project Scope
Our services will include:
 June 30, 2025 actuarial valuation report
 Plan funded status.
 Review and recommendations on all actuarial assumptions, including long term expected PARS investment returns based on Rael & Letson’s stochastic model.  2026/27 and 2027/28 actuarially determined contributions.  Ten-year contribution projection and other information to help guide the City to a prudent funding policy. Historical Funded Status chart in the previous actuarial valuation report will not be provided in our report unless the City provides historical actuarial valuations and GASB 75 reports, or requests the data from Foster & Foster.  GASB 75 reports
 Will be provided separately from the June 30, 2025 actuarial valuation funding report.  Will be based on GASB 75 asset sufficiency test (“crossover” calculation) to determine appropriate discount rate.
 Will include all actuarial information for the City’s financial statements as well as journal entries.

We will have a video call with the City to discuss the results of each report.

Rael & Letson
OPEB Actuarial Services Fee Letter ◥ City of Hawthorne 2 Fees and Timing
Following are the proposed fees covering three fiscal years:

Project
Approximate
Commencement/
Completion Timing Fees
June 30, 2025 OPEB valuation February 2026/
April 2026
$ 18,000
2025/26 GASB 75 disclosure August 2026 3,500
2026/27 GASB 75 disclosure August 2027 3,000
Sub-total $ 24,500
(Optional) 2024/25 GASB 75 disclosure August 2025 3,000 Total $ 27,500
These fees assume that there have been no changes to City’ OPEB benefits or funding policy since the prior valuation, and that all communications will be via phone or email rather than in-person.

Any additional tasks will be charged at the hourly rates. We will provide a fee estimate with the applicable hourly rates before any work would commence.

The June 30, 2025 valuation report will be delivered approximately eight weeks after receiving complete and clean census data (or two weeks after receiving the June 30, 2025 asset information, if later). GASB 75 reports will be delivered within three to four weeks after receiving year-end data.

We will send you a data request for each project separately.

Again, thank you for the opportunity to submit our proposal. Should you have any questions or want to discuss our proposal, please contact me ([email protected] or by phone at 510-384-5241) or Kateryna Pryor ([email protected] or by phone at 650-283-1476). If you would like us to proceed with this work, please send us a signed copy of the following page.

We look forward to working with you and the City.

Sincerely,
Doug Pryor
Consulting Actuary
c: Kateryna Pryor
Rael & Letson
OPEB Actuarial Services Fee Letter ◥ City of Hawthorne 3 The City of Hawthorne accepts Rael & Letson proposal to provide OPEB actuarial valuation services and GASB Statement No. 75 disclosures as outlined above. ☐ June 30, 2025 valuation and 2025/26, and
2026/27 GASB 75 disclosures
$24,500
☐ 2024/25 GASB 75 disclosure $3,000
Rael & Letson City of Hawthorne
Signature:

Name: Bruce Cable Vontray Norris
Title: Chief Executive Officer City Manager
Date: July 22, 2025
AGENDA ITEM NO. 11.

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of 08/12/2025
Originating Department: Finance
City Manager: Department Head:

SUBJECT:

City of Hawthorne's Investment Report for the quarter ended June 30, 2025.

RECOMMENDED MOTION:

Staff recommends that the City Council receive, approve and file the City of Hawthorne's Investment Report for the quarter ended June 30, 2025 of FY 24-25.

DISCUSSION:

Investment Report for the quarter ended June 30, 2025 is attached. This report indicates the cash and investments held by the reporting entity and the rate of return on the investments.

Because of the seasonal nature of the city's revenues (thus making short-term availability and liquidity of funds being extremely important), the city has for many years invested its funds with the State of CA administered Local Agency Investment Fund (LAIF). Multi Bank Securities (MBS) are invested in CD's using a ladder strategy. The City Treasurer shall continue this strategy, reinvesting funds that come due into new 3-5 year CD's. Cash held by the fiscal agents are for future debt service on bonds, and these funds are invested pursuant to investment agreements entered into when the bonds were originally issued.

Investment report summary June 30, 2025
Funds held at LAIF $75 million with a rate of return @ 4.40% Funds held at BOW $45.6 million with rate of return @ 3.02% Funds held at MBS totaled $25.4 million with yields of 0.63% - 4.99% Funds held by the fiscal agents totaled $33.1 million
Funds held in Trust totaled $10.8 million
Investment report summary March 31, 2025
Funds held at LAIF $75 million with a rate of return @ 4.48% Funds held at BOW $37.3 million with rate of return @ 3.02% Funds held at MBS totaled $25.3 million with yields of 0.64% - 4.99% Funds held by the fiscal agents totaled $32 million
Funds held in Trust totaled $10.1 million
Investment report summary December 31, 2024
Funds held at LAIF $75 million with a rate of return @ 4.62% Funds held at BOW $42.6 million with rate of return @ 3.02% Funds held at MBS totaled $15.2 million with yields of 0.64% - 5.02% Funds held by the fiscal agents totaled $32.1 million
Funds held in Trust totaled $5.4 million
Investment report summary September 30, 2024
Funds held at LAIF $75 million with a rate of return @ 4.71% Funds held at BOW $42.6 million with rate of return @ 3.21% Funds held at MBS totaled $15.2 million with yields of 0.65% - 4.79% Funds held by the fiscal agents totaled $5.5 million
Funds held in Trust totaled $5.5 million
Investment report summary June 30, 2024
Funds held at LAIF $74.2 million with a rate of return @ 4.55% Funds held at BOW $61.1 million with rate of return @ 3.67% Funds held at MBS totaled $14.9 million with yields of 0.66% - 4.95% Funds held by the fiscal agents totaled $4.9 million
Funds held in Trust totaled $5.2 million
Investment report summary March 31, 2024
Funds held at LAIF $73.4 million with a rate of return @ 4.30% Funds held at BOW $55.6 million with rate of return @ .14% - 3.67% Funds held at MBS totaled $14.9 million with yields of 0.67% - 4.88% Funds held by the fiscal agents totaled $3.7 million
Funds held in Trust totaled $4.1 million
Investment report summary December 31, 2023
Funds held at LAIF $72.7 million with a rate of return @ 4.00% Funds held at BOW $46.6 million with rate of return @ .14% - 3.67% Funds held at MBS totaled $9.3 million with yields of 0.65% - 4.92% Funds held by the fiscal agents totaled $3.2 million
Funds held in Trust totaled $3.9 million
Investment report summary September 30, 2023
Funds held at LAIF $72 million with a rate of return @ 3.59% Funds held at BOW $47.5 million with rate of return @ .14% - 3.67% Funds held at MBS totaled $9.2 million with yields of 0.60% - 5.05% Funds held by the fiscal agents totaled $4.7 million
Funds held in Trust totaled $3.6 million
Investment report summary June 30, 2023
Funds held at LAIF $71.5 million with a rate of return @ 3.15% Funds held at BOW $59.6 million with rate of return @ 3.56% - 5.02% Funds held at MBS totaled $9.1 million with yields of 0.30% - 5.05% Funds held by the fiscal agents totaled $3.7 million
Investment report summary March 31, 2023
Funds held at LAIF $71 million with a rate of return @ 2.74% Funds held at BOW $50.1 million with rate of return @ 2.62% - 4.57% Funds held at MBS totaled $9.1 million with yields of 0.30% - 4.96% Funds held by the fiscal agents totaled $3 million
Investment report summary December 31, 2022
Funds held at LAIF $70.6 million with a rate of return @ 2.07% Funds held at BOW $28.5 million with rate of return @ 2.35% -3.90% Funds held at MBS totaled $9.1 million with yields of 0.30% - 4.73% Funds held by the fiscal agents totaled $2.3 million
Investment report summary September 30, 2022
Funds held at LAIF $70.4 million with a rate of return @ 1.35% Funds held at BOW $32.3 million with rate of return @ 1.45% - 2.34% Funds held at MBS totaled $8.8 million with yields of 0.31% - 3.41% Funds held by the fiscal agents totaled $3.7 million
Investment report summary June 30, 2022
Funds held at LAIF $70.3 million with a rate of return @ 0.75% Funds held at BOW $36.6 million with rate of return @ 0.00% - 0.62% Funds held at MBS totaled $9 million with yields of 0.30% - 3.27% Funds held by the fiscal agents totaled $4.7 million
Investment report summary March 31, 2022
Funds held at LAIF $70.2 million with a rate of return @ 0.32% Funds held at BOW $25.1 million with rate of return @ 0.08% - 0.14% Funds held at MBS totaled $9.2 million with yields of 0.30% - 2.39% Funds held by the fiscal agents totaled $4.1 million
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
.

FISCAL IMPACT:

None. The report describes the City's investments and rate of return on these investments as of June 30, 2025.

NOTICING PROCEDURE:

None. The report describes the City's investments and rate of return on these investments as of June 30, 2025.

ATTACHMENTS
Investment Report 06-30-25
Bank Statements 06-2025

CITY OF HAWTHORNE

INVESTMENT REPORT
Current Quarter Prior Quarter Quarter Change
6/30/2025 3/31/2025
Investment Type Issuer Cost Market Value Rate Cost Market Value Rate Change % Change State Investment Pool State of California - LAIF 1) 75,000,000 75,000,000 4.40% 75,000,000 75,000,000 4.48% 0 0.00% Certificates Of Deposit/U.S Bonds Multi-Bank Securities, Inc. 2) 25,353,654 25,353,654 0.63% to 4.99% 25,280,895 25,280,895 0.64% to 4.99% 72,760 0.29% Commercial Money Market BMO 3) 45,648,872 45,648,872 3.02% 37,332,477 37,332,477 3.02% 8,316,396 22.28% Total Funds Held By City 146,002,527 146,002,527 137,613,371 137,613,371 8,389,155 6.10% Funds Held By Fiscal Agent:

Money Market Funds U.S. Bank 4) 32,042,986 32,042,986 0.00% to 3.81% 31,194,963 31,194,963 0.00% to 3.82% 848,023 2.72% Money Market Funds - Mogul Partners Western Alliance 5) 1,045,640 1,045,640 0.10% 797,723 797,723 0.10% 247,917 31.08% Total Funds Held By Fiscal Agent 33,088,625 33,088,625 31,992,686 31,992,686 1,095,940 3.43% Funds Held In Trust
OPEB Balanced Highmark Plus PARS 6) 10,754,839 10,754,839 6.38% 10,122,846 10,122,846 -0.22% 631,994 6.24% Total Funds Held In Trust 10,754,839 10,754,839 10,122,846 10,122,846 631,994 6.24% In accordance with California Government Code Section 53646, the Treasurer of the City of Hawthorne hereby certifies that the investments reported above comply with the City's adopted Investment Policy and that sufficient investment liquidity and anticipated revenues are available to meet the City's budgeted expenditures for the six months.

Printed 7/28/2025 at 11:25 AM
Multi - Bank Securities, Inc.

Current Quarter
6/30/2025
Date of Accrued Cash/Bank Estimated Ending
Purchase Maturity Date Quantity Market Price Market Value Interest Deposits Yield Market Value Bank Baroda, NY 7/22/2020 7/22/2025 247,000 99.7760 246,446.72 753.18 0.70% Bank Vy Bellwood Neb 1/27/2022 1/27/2026 249,000 98.2320 244,597.68 22.51 1.11% GreenState Cr Un, Iowa SH 3/30/2021 3/30/2026 249,000 97.5790 242,971.71 158.27 0.81% Sallie Mae Bank, Salt Lake City, UT 7/8/2021 7/8/2026 247,000 96.9930 239,572.71 1,170.71 1.03% UBS Bank Salt Lake City, UT 7/8/2021 7/8/2026 247,000 96.8720 239,273.84 133.99 0.92% Toyota Finl Svgs Bank, Hend, NV 7/22/2021 7/22/2026 247,000 96.8320 239,175.04 1,022.17 0.98% Medallion Bk, Salt Lake City, UT 8/30/2021 8/31/2026 100,000 96.3930 96,393.00 0.00 0.88% Texas Exchange Bk, SSB Crowley 10/29/2021 10/29/2026 247,000 96.2360 237,702.92 7.44 1.14% Dept of Comm Fed Cr Un, Wash, DC 5/13/2022 5/13/2027 247,000 98.6910 243,766.77 373.88 3.29% First Natl Bank Amer East Lansing, MICH 5/17/2022 5/17/2027 245,000 98.5030 241,332.35 274.87 3.19% Discover Bk, Greenwood Del 3/22/2023 3/21/2028 243,000 102.5470 249,189.21 3,328.77 4.87% Liberty First Cr Un Lincoln 8/7/2023 8/7/2028 247,000 102.6160 253,461.52 922.36 4.58% Valleystar Cr Un Martinsville 8/30/2023 8/30/2028 100,000 104.0760 104,076.00 0.00 4.66% Customers Bk Pheonixville PA 10/15/2024 10/16/2028 245,000 98.5690 241,494.05 1,810.99 3.60% Wells Fargo Bk, Sioux Falls, SD 12/12/2023 12/12/2028 249,000 101.3740 252,421.26 546.44 4.38% BNY Mellon Dep Program 12/18/2023 12/18/2028 245,000 99.8900 244,730.50 322.19 4.00% City Fed Cr Un Amarillo Tex SH CTF 1/12/2024 1/12/2029 249,000 99.7470 248,370.03 485.04 3.96% Financial Plus Cr Un Flint Mich ST CTF 1/17/2024 1/17/2029 249,000 100.0740 249,184.26 359.17 4.04% A+ Fed Cr Un Austin Tex SH CTF 1/29/2024 1/29/2029 247,000 100.2350 247,580.45 27.75 4.09% SCE Fed Cr Un Irwindale Calif SH CTF 3/14/2024 3/14/2029 125,000 100.7380 125,922.50 232.88 4.21% Workers Fed Cr Un Littlelon MA 10/21/2024 4/23/2029 247,000 99.8650 246,666.55 243.62 4.00% Morgan Stanley, Private Bk Natl Assn 5/7/2025 5/7/2029 244,000 100.3300 244,805.20 1,498.09 4.13% Empower Fed Cr Union Syracuse NY CTF 7/31/2024 7/31/2029 247,000 101.6990 251,196.53 9,866.47 4.42% Numerica Cr Un Spokane VY Wash CTF 11/26/2024 11/26/2029 249,000 100.4030 250,003.47 113.24 4.13% First Fed Svgs & Ln Assn of Lorain Ohio CTF 6/6/2025 12/6/2029 237,000 100.3660 237,867.42 646.72 4.13% American Express Natl Bk Brokered Intl CTF 1/22/2030 1/22/2025 244,000 100.3990 244,973.56 4,411.05 4.13% Freedom Northwest Cr Un Kamiah Idaho SH CTF 1/30/1930 1/30/2025 249,000 100.4280 250,065.72 56.62 4.13% Luana Svgs Bk Iowa CTF Dep 3/13/2025 9/13/2025 245,000 99.3150 243,321.75 2,853.41 3.92% Morgan Stanley Bk N A Salt Lake City Utah CTF 6/18/2025 6/20/2025 244,000 101.1000 246,684.00 344.94 4.25% Total Certificates of Deposit 6,730,000.00 6,703,246.72 31,986.77 - United States Treas NTS 4% 2/15/2026 2/15/2023 2,000,000 99.8680 1,997,360.00 29,834.25 4.00% United States Treas NTS 4.625% 3/15/2026 3/15/2023 1,050,000 100.3530 1,053,706.50 14,120.07 4.60% United States Treas NTS 4.125% 2/15/2027 8/15/2024 2,000,000 100.4730 2,009,460.00 30,766.57 4.10% United States Treas NTS 4.25% 3/15/2027 9/15/2024 1,120,000 100.7540 1,128,444.80 13,840.22 4.21% United States Treas NTS 4.00% 2/29/2028 2/28/2023 3,120,000 100.7460 3,143,275.20 41,373.91 3.97% United States Treas NTS 4.25% 2/28/2024 8/31/2024 2,000,000 101.7460 2,034,920.00 28,179.35 4.17% United States Treas NTS 4.125% 3/31/2024 9/30/2024 1,120,000 101.3400 1,135,008.00 11,486.89 4.07% United States Treas NTS 4.25% 1/31/2030 7/31/2025 1,950,000 101.9570 1,988,161.50 34,340.47 4.16% United States Treas NTS 4.00% 2/28/1930 2/28/2023 1,120,000 100.9570 1,130,718.40 14,852.17 3.96% Total U.S Treasury Securities 15,480,000.00 15,621,054.40 218,793.90 - Federal National MTG Assn 7/15/2020 7/15/2025 247,000 99.8610 246,656.67 826.42 0.73% Federal Home LN Bks Cons 1/22/2021 1/22/2026 245,000 97.9640 240,011.80 672.05 0.63% Federal Home LN Bks 9/17/2021 9/17/2026 1,000,000 96.4670 964,670.00 3,004.17 1.08% Federal Natl Mtg Assn Medium Term 12/18/2024 12/18/2029 500,000 100.1180 500,590.00 833.33 4.99% Federal Home Ln Bks Cons Bd 12/27/2024 6/27/2025 500,000 99.6600 498,300.00 205.00 4.93% Total U.S Government Bonds 2,492,000.00 2,450,228.47 5,540.97 - Bank of America Corp 10/30/2020 10/30/2025 500,000 98.8270 494,135.00 833.33 1.01% Total Corporate Bonds 500,000.00 494,135.00 833.33 -
Total Portfolio Holdings 25,202,000.00 25,268,664.59 257,154.97 84,989.56 25,353,654.15 Printed 7/28/2025 at 11:25 AM
Summary of Cash with Fiscal Agent
Current Quarter
Date of Maturity Investment
Purchase Date Coupon Cost Market Value Agreement Rate
City 2016 Certificates of Participation
Money Market Various Daily liquid 0.00% 0.76 0.76 0.00% Total 0.76 0.76 0.00
City 2019 Pension Obligation Bond
Money Market Various Daily liquid 0.00% 4.61 4.61 0.00% Money Market Various Daily liquid 0.00% 0.51 0.51 0.00% Money Market Various Daily liquid 0.00% 0.80 0.80 0.00% Total 5.92 5.92 0.00
City 2024 Revenue Bonds Series 2024
Money Market Various Daily liquid 3.81% 14,111.11 14,111.11 3.81% Investment Agreement - Sutter Sec Various Daily liquid 3.81% 30,149,018.22 30,149,018.22 3.81% Total 30,163,129.33 30,163,129.33 0.00
S.A 2016 Tax Allocation Refunding Bonds
Money Market Various Daily liquid 3.81% 292.13 292.13 3.81% Money Market Various Daily liquid 3.81% 1,956.17 1,956.17 3.81% 2,248.30 2,248.30 0.00
S.A 2025 Tax Allocation Refunding Bonds
Money Market Various Daily liquid 3.81% 8,809.02 8,809.02 3.81% 8,809.02 8,809.02 0.00
CFD 1999-1 2000 Gateway Center Special Fund
Money Market Various Daily liquid 3.79% 62,324.66 62,324.66 3.79% Money Market Various Daily liquid 3.79% 0.03 0.03 3.79% Money Market Various Daily liquid 3.79% 799,896.74 799,896.74 3.79% Money Market Various Daily liquid 3.79% 348,683.96 348,683.96 3.79% Money Market Various Daily liquid 3.79% 254,409.01 254,409.01 3.79% Money Market Various Daily liquid 3.79% 0.05 0.05 3.79% Money Market Various Daily liquid 3.79% 134,313.86 134,313.86 3.79% Money Market Various Daily liquid 3.79% 5,641.14 5,641.14 3.79% Total 1,605,269.45 1,605,269.45 0.00
CFD 2004-1 2005 Fusion at South Bay
Money Market Various Daily liquid 3.79% 20,465.03 20,465.03 3.79% Money Market - Reserve Fund Various Daily liquid 3.79% 226,865.99 226,865.99 3.79% Total 247,331.02 247,331.02 0.00
CFD 2006-1 2020 360 Degrees at South Bay
Money Market Various Daily liquid 0.00% 0.75 0.75 0.00% Money Market Various Daily liquid 0.00% 25,000.42 25,000.42 0.00% Total 25,001.17 25,001.17 0.00
Total 32,042,985.95 32,042,985.95 0.00
3/31/2025
Printed 7/28/2025 at 11:25 AM
Western Alliance - Mogul Partners
Current Quarter
6/30/2025
Unrealized Accrued Net Interest Ending Market Estimated Cost Value Market Value Gain/Loss Income Collected Value Yield Western Alliance Bank 1,045,639.51 1,045,639.51 0.00 0.00 80.59 1,045,639.51 Total Cash Investments 1,045,639.51 1,045,639.51 0.00 0.00 80.59 1,045,639.51 0.10% Printed 7/28/2025 at 11:25 AM

CITY OF HAWTHORNE
PARS Post-Employment Benefits Trust 6/1/2025 to 6/30/2025 Von Norris
City Manager
City of Hawthorne
4455 West 126th Street
Hawthorne, CA 90250
Account Summary
Source 6/1/2025 Contributions Earnings Expenses Distributions Transfers 6/30/2025 OPEB 1001 $10,419,370.46 $0.00 $340,069.82 $4,600.94 $0.00 $0.00 $10,754,839.34 Totals $10,419,370.46 $0.00 $340,069.82 $4,600.94 $0.00 $0.00 $10,754,839.34 Investment Selection
Source
OPEB
Investment Objective
Source
OPEB
Investment Return
Source 1-Month 3-Months 1-Year 3-Years 5-Years 10-Years OPEB 3.26% 6.38% 10.67% - - - 11/17/2022
Information as provided by US Bank, Trustee for PARS; Not FDIC Insured; No Bank Guarantee; May Lose Value Headquarters - 4350 Von Karman Ave., Suite 100, Newport Beach, CA 92660 800.540.6369 Fax 949.250.1250 www.pars.org Account balances are inclusive of Trust Administration, Trustee and Investment Management fees Annualized Return
Investment Return: Annualized rate of return is the return on an investment over a period other than one year multiplied or divided to give a comparable one-year return.

Past performance does not guarantee future results. Performance returns may not reflect the deduction of applicable fees, which could reduce returns. Information is deemed reliable but may be subject to change.

Account Report for the Period
Balance as of
Balanced - Strategic Blend
Balance as of
The dual goals of the Balanced Strategy are growth of principal and income. While dividend and interest income are an important component of the objective's total return, it is expected that capital appreciation will comprise a larger portion of the total return. The portfolio will be allocated between equity and fixed income investments.

Plan's Inception Date
AGENDA ITEM NO. 12.

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of 08/12/2025
Originating Department: Housing
City Manager: Department Head:

SUBJECT:

Recurring Software and Services Agreement with MRI Real Estate Software LLC (MRI) for Housing Data Services.

RECOMMENDED MOTION:

1. Approve the Recurring Software and Services Agreement with MRI for the period of five years from 08/01/2025 to 07/31/2030 to provide professional services necessary to store and update housing data.

2. Authorize the City Manager, or designee, to execute, amend, and keep a record of documents necessary to administer the Fiscal Year 2025-2030 Professional Services Agreement with MRI.

DISCUSSION:

The Housing Department uses MRI Software to maintain the production database and confidential payment information for landlords, applicants, and program participants. It also provides services that tracks Tenant Account Receivables (TARs), houses the Inspection framework, maintains various Waiting Lists, and receives scanned documents for paperless renewal options for multiple programs. The software communicates with HUD systems, allowing for proper and timely reporting. Staff recommends the council approve the professional services agreement as written. The attached professional agreement will be effective August 1, 2025, and will remain effective until July 31, 2030, pursuant to the professional services agreement. This agreement will renew annually.

ECONOMIC DEVELOPMENT STRATEGIC PLAN:

None.

FISCAL IMPACT:

None. This expenditure has already been approved in the 25-26 City Budget.

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

ATTACHMENTS
mri Services Agreement
MRI - LTC - Hawthorne
Client Id: X544999
Client's File
Reference:006VX00000MB4zhYAD
MRI Confidential

ORDER DOCUMENT

RECURRING SOFTWARE AND SERVICES
The Parties acknowledge and agree that the Order Document, effective August 1, 2019 shall be stricken and terminated, except that the MRI Terms and Conditions listed therein shall continue in full force and effect. All rights and obligations that arose prior to the Effective Date of this Order Document shall remain in full force and effect. The Parties further agree that this new Order Document, effective August 1, 2025 shall be added to the Agreement. Both Parties further agree that the this Order Document shall be governed by the surviving MRI Terms and Conditions are incorporated by reference and made a part of this Order Document as fully as if set forth herein.

By signing this Order Document, Client verifies that it has read the MRI Terms and Conditions, and acknowledges its agreement to be bound by them.

City of Hawthorne Housing Authority ("Client")
4455 West 126th Street
Hawthorne CA 90250-4417
MRI Software LLC ("MRI")
28925 Fountain Parkway,
Solon, OH 44139
Signature: ______________________________
Print Name: ______________________________
Title: ______________________________
Signature: ______________________________
Print Name: ______________________________
Title: ______________________________

CLIENT CONTACT INFORMATION
Administrator: Kimberly Mack
Address:

E-mail:[email protected]
Voice:

Fax:

Cell:310-349-1603
Technical Contact/Download Recipient:

Address:

E-mail: [email protected]
Voice:

Fax:

Cell:

Billing Contact:

Address:

E-mail:

Voice:

Fax:

Cell:

SAAS SERVICES
Products License Metric Quantity Territory
Happy
AssistanceCheck-Online
Assistance Portal
Units
Named Users
711.00

13.00 North America
HAPCheck Units
Named Users
711.00

13.00 North America
HQS Mobile Inspections for
iPad
Units
Named Users
711.00

14.00 North America
Production Database for
Happy
Production Databases 1.00 North America
Production Database for PHA
Pro
Production Databases 1.00 North America
Waitlist Check Units 711.00 North America
Client Id:X544999
Client's File
Reference:006VX00000MB4zhYAD
MRI Confidential
Named Users 13.00
WaitListCheck-Online
Application Collection
Units
Named Users
711.00

13.00 North America

LIMITED SOFTWARE LICENSE
Products License Metric Quantity Installation Site Territory Happy
1099s and Payment
History
Units
Named Users
711.00

13.00 4455 West 126th Street,
null, Hawthorne, CA,
90250-4417, US
North
America
Custom Forms Units
Named Users
711.00

13.00 4455 West 126th Street,
null, Hawthorne, CA,
90250-4417, US
North
America
FileMTCS Units
Named Users
711.00

13.00 4455 West 126th Street,
null, Hawthorne, CA,
90250-4417, US
North
America
iDIA System Units
Named Users
711.00

13.00 4455 West 126th Street,
null, Hawthorne, CA,
90250-4417, US
North
America
iFile Units
Named Users
711.00

13.00 4455 West 126th Street,
null, Hawthorne, CA,
90250-4417, US
North
America
Inspections Units
Named Users
711.00

13.00 4455 West 126th Street,
null, Hawthorne, CA,
90250-4417, US
North
America
Occupancy Units
Named Users
711.00

13.00 4455 West 126th Street,
null, Hawthorne, CA,
90250-4417, US
North
America
Payments Units
Named Users
711.00

13.00 4455 West 126th Street,
null, Hawthorne, CA,
90250-4417, US
North
America
Production Database for
PHA Pro
Production Databases 1.00 4455 West 126th Street,
null, Hawthorne, CA,
90250-4417, US
North
America
Remote Screen Sharing Units
Named Users
711.00

13.00 4455 West 126th Street,
null, Hawthorne, CA,
90250-4417, US
North
America
Report Writer Units
Named Users
711.00

13.00 4455 West 126th Street,
null, Hawthorne, CA,
90250-4417, US
North
America
Tenant Accounts
Receivable (TARs)
Units
Named Users
711.00

13.00 4455 West 126th Street,
null, Hawthorne, CA,
90250-4417, US
North
America
Waiting List Units
Named Users
711.00

13.00 4455 West 126th Street,
null, Hawthorne, CA,
90250-4417, US
North
America

FEES, PAYMENT AND TERMS
Initial Term Annual Recurring Fee
The Initial Term will run from the Effective Date listed above until Jul 31, 2030
$ 32933.67
Client Id:X544999
Client's File
Reference:006VX00000MB4zhYAD
MRI Confidential
The Initial Term and any Renewal Term are non-cancelable, subject to termination rights as set forth in the Agreement.

The fees listed in this table include the recurring fees related to the products and services in the tables listed above.

MRI may, at any time after the first twelve (12) months of the Effective Date listed above, and in its sole discretion, modify the Fees upon ninety (90) calendar day prior written notice to Client. Notwithstanding the foregoing, the Fees shall not increase in each subsequent twelve (12) month period by more than the Equal to (i) 3.00 percent (3.00 %); or (ii) US CPI for the most recent year. A twelve (12) month period commences on the anniversary of the Effective Date. For purposes of notice in this footnote, email or first-class mail will suffice.

Renewal Period. Notwithstanding anything to the contrary in the Agreement, following the end of the Initial Term, Services shall automatically renew for successive 60 months terms at then-current pricing (each renewal a “Renewal Term”) unless either Party gives written notice at least sixty (60) calendar days prior to the end of the Initial Term or any Renewal Term, as applicable, of its intention to not renew the Services. The pricing for the first twelve (12) months of any Renewal Term shall be provided by MRI in writing no less than ninety (90) days prior to the end of the Initial Term or any Renewal Term. For the purposes of the pricing notice in this Section, email or first-class mail will suffice. The Initial Term and Renewal Terms are collectively referred to as the “Term”.

Payment Terms: Fees are due in USD Annual in advance. Initial payment must be received by MRI prior to the Effective Date and any Renewal Term; MRI has no obligation to provide Services until such payment is received. For any fees due from the Client when exceeding the License Metrics listed above, Client shall be billed monthly in arrears for such overage in accordance with the terms of this Order Document. In no event shall Client be invoiced for fewer than the License Metrics listed or less than the Annual Recurring Fees (annualized) plus increase as outlined in footnote 2.

LICENSE METRICS AND USE RIGHTS DEFINITIONS
Definitions: The following definitions shall apply to the interpretation of this Order Document. If a definition is listed here and not listed within the foregoing tables or in additional Order Documents executed between the Parties, then that definition shall be disregarded.

A “Conventional Unit” is a Unit that is rented or leased to a tenant that, based on income, is eligible for rent subsidies from federal, state or local government agencies
A "Named User” license permits Clients to assign User IDs only to a fixed number of specifically named employee users or Affiliates, and simultaneous access to the licensed Program is limited to those specific named users.

An "Inquiry User” or “Read Only user”, license restricts user access to certain limited view only and report retrieval capabilities. Clients can assign Inquiry Only User IDs to a fixed number of Client Users whose simultaneous access to the system is limited to the number of authorized inquiry only licenses paid for and held by the Client.

A “Unit” is a space rented or designed to be rented to a tenant for residential use and is characterized by a unique tenant, a unique mailing address, or a unique physical location. “Units” include without limitation Conventional Units, Affordable Units, AHR Units and DHCR Units.

A “Message Unit” is a received SMS text (outbound or inbound), a sent email, or in a voice call situation each thirty second increment.
“Production Database” means access to an instance of the products listed in a live environment, to be used to production purposes. A production database does not imply a segregated instance or walled-off application. “Non-Production Database” means access to an instance of the products listed in a non-live environment. Such can be used for testing, training, or other non-production purposes. A production database does not imply a segregated instance or walled-off application.

Use Rights: The license to use the SaaS Service is priced based on Client’s License Metrics as of the Effective Date of this Order Document and allows Client to use the Software to manage up to the quantity set forth above. Additional licenses must be purchased by Client in the event the number of actual License Metrics exceeds such licensed quantity. If Client’s actual License Metrics exceed such licensed quantity, then MRI reserves the right to charge a premium fee for any additional License Metric used. The cost for these additional licenses will be at MRI’s then-current fees. There shall be no fees adjustments or refunds for any actual License Metrics decreases. Fees (other than monthly user access fees) are Client Id: X544999
Client's File
Reference:006VX00000MB4zhYAD
MRI Confidential
based on quantity purchased, not Usage.

Self-Certification: Without prejudice to MRI’s audit rights pursuant to the Agreement, Client will, by August 1st of each year, document and certify that use of the SaaS Services is in full conformity with the use rights granted hereunder. The Self-Certification Document can be found in the MRI Terms and Conditions.

MAINTENANCE AND TECHNICAL SUPPORT
Maintenance and Support Level: Standard Maintenance and Support is included in the Fees. In the event that Client has purchased enhanced support services, such enhanced will be indicated in the Enhanced Support Services table above and the product line for which it was purchased. If no such indication is made, then Client has not purchased enhanced support services.

Designated Support Contacts:

Maintenance and Support may only be requested by the two (2) Designated Support Contacts named below who must have successfully completed MRI’s standard training course prior to (i) logging case requests; or (ii) receiving status updates on cases. Client may change these Designated Support Contacts from time to time, to other Client employees, by promptly delivering in writing to MRI the names and contact information of the new Designated Support Contacts (email is sufficient). The SaaS Services fees are related to the number of contacts; access to support by any additional contacts will be subject to additional fees.
(1) Designated Support Contact must be the Administrator listed above in this Order Document.

The initial Designated Support Contacts of Client are:

Name:

Title:

Phone:

Address:

Email:

Name:

Title:

Phone:

Address:

Email:

Kimberly Mack
Director of Housing
310-349-1603
4455 W 126th St, Hawthorne, CA 90250
[email protected]
Claude Baldwin
Senior Housing Coordinator
310-349-1611
4455 W 126th St, Hawthorne, CA 90250
[email protected]
SUPPORT AGREEMENT TERM - 3 Years - 5% CAP Annual Support Amount August 1, 2025 - July 31, 2026 $ 33,573.16
August 1, 2026 - July 31, 2027 $ 35,251.82
August 1, 2027 - July 31, 2028 $ 37,014.41
SUPPORT AGREEMENT TERM - 5 Years - 3% CAP Annual Support Amount August 1, 2025 - July 31, 2026 $ 32,933.67
August 1, 2026 - July 31, 2027 $ 33,921.68
August 1, 2027 - July 31, 2028 $ 34,939.33
August 1, 2028 - July 31, 2029 $ 35,987.51
August 1, 2029 - July 31, 2030 $ 37,067.14
Savings with a 5-year agreement versus 3 year agreement $ 10,663.57 City of Hawthorne HA - Estimated New Support
Long Term Contract (Annual Support Increase 3 Year LTC vs 5 Year LTC) ***PRICES ARE ESTIMATED AND Subject To Final Contract Terms and Conditions; Based on Currently Licensed Modules*** AGENDA ITEM NO. 13.

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of 08/12/2025
Originating Department: Public Works
City Manager: Department Head:

SUBJECT:

Progress Payment #6 in the amount of $530,226.67 due to PCN3 Inc of Los Alamitos, CA for the City of Hawthorne New Senior Center (Project #24-03).

RECOMMENDED MOTION:

Staff recommends that the City Council approve this Progress Payment #6 to PCN3 Inc of Los Alamitos, 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 renovations and addition to the existing Senior Center.

The work will consist of renovating the existing Hawthorne Senior Center situated on the northwest side of the existing Memorial Center facility. The renovations will bring the existing building, approximately 8,600 SF, up to current building codes and standards. The work will also consist of adding a first-floor extension and a second story, approximately 9700 SF of indoor space. There will also be some exterior landscaping to integrate the building into the park and create an outdoor courtyard. The work will also consist in providing all services, labor, materials, permits, insurance, tools and equipment needed, in accordance with the Plan and Specifications to successfully and safely complete the renovations, expansion and addition to the City of Hawthorne Senior Center, located at 3901 El Segundo Blvd, Hawthorne, CA 90250
During the construction phase of the project, necessary authorization will need to be granted to the City's Project Engineer(s) to conduct further testing, substitutions, and/or removal of material such as new public right of way, new concrete slab between the New Senior Center and existing Memorial Center, etc.

Work done to date includes: demolition of the existing senior center structure, excavated trenches for underground plumbing and electrical conduits, trenching for elevator pit, concrete poured for the west expansion portion of the project, vertical steel reinforcement placed and preparing for steel columns and beams for the west expansion portion of the project. Excavation for new storm drain line, elevator pit and column footing for the existing portion of the building (East Side). Due to existing conditions uncovered during the demolition/excavation phase, it led to a few change orders like repair and/or replacement of underground utility pipes, expansion of demolition (slab/ceiling), etc.

ECONOMIC DEVELOPMENT STRATEGIC PLAN:

This project is a result of the City working closely with funding and regulatory agencies to support and improve our infrastructure.

FISCAL IMPACT:

None. Funds for this progress payment in the amount of $530,226.67 will be funded through allocated funds from the 2024-2025 budget.

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

ATTACHMENTS
PP#6SC#24-03
APPLICATION AND CERTIFICATION FOR PAYMENT AIA DOCUMENT G702 Page 1 OF 1 TO OWNER: City of Hawthorne PROJECT: APPLICATION NO: 6 Distribution to:
4455 W. 126th Street City of Hawthrone New Senior Center OWNER Hawthorne, CA, 90250 PERIOD FROM: 6/25/2025 CM
PERIOD TO: 7/31/2025 ARCHITECT
FROM CONTRACTOR: VIA CONSTRUCTION MANAGER: CONTRACTOR
PCN3, INC. ENGINEER
10591 Humbolt Street, Unit A
Los Alamitos, CA, 90720 PROJECT NOS: 24-03
CONTRACT NO: 24-03
CONTRACT FOR: 24-03 CONTRACT DATE: 8/28/2024
CONTRACTOR'S APPLICATION FOR PAYMENT The undersigned Contractor certifies that to the best of the Contractor's knowledge, Application is made for payment, as shown below, in connection with the Contract. information and belief the Work covered by this Application for Payment has been Continuation Sheet, AIA Document G703, is attached. completed in accordance with the Contract Documents, that all amounts have been paid by the Contractor for Work for which previous Certificates for Payment were issued and payments received from the Owner, and that current payment shown herein is now due.

1. ORIGINAL CONTRACT SUM 14,445,000.00

2. Net change by Change Orders 267,716.71 CONTRACTOR: PCN3, INC.

3. CONTRACT SUM TO DATE (Line 1 ± 2) 14,712,716.71

4. TOTAL COMPLETED & STORED TO 3,811,462.34
DATE (Column G on G703) By: Date:

5. RETAINAGE:
a. 5 % of Work Completed $ 190,573.12 State of: California County of:
(Column D + E on G703) Subscribed and sworn to before me this day of b. 5 % of Stored Material $ - Notary Public:
(Column F on G703) My Commission expires:

Total Retainage (Lines 5a + 5b or
Total in Column I of G703) 190,573.12 PM'S CERTIFICATE FOR PAYMENT

6. TOTAL EARNED LESS RETAINAGE 3,620,889.22 In accordance with the Contract Documents, based on on-site observations and the data (Line 4 Less Line 5 Total) comprising the application, the Engineer certifies to the Owner that to the best of the

7. LESS PREVIOUS CERTIFICATES FOR Engineer's knowledge, information and belief the Work has progressed as indicated, PAYMENT (Line 6 from prior Certificate) 3,090,662.55 the quality of the Work is in accordance with the Contract Documents, and the Contractor

8. CURRENT PAYMENT DUE 530,226.67 is entitled to payment of the AMOUNT CERTIFIED.

9. BALANCE TO FINISH, INCLUDING RETAINAGE 11,091,827.49 (Line 3 less Line 6) AMOUNT CERTIFIED . . . . . . . . . . . $ 530,227 CHANGE ORDER SUMMARY ADDITIONS DEDUCTIONS (Attach explanation if amount certified differs from the amount applied. Initial all figures on this Total changes approved Application and on the Continuation Sheet that are changed to conform with the amount certified.) in previous months by Owner $ 267,717 $ - Project Manager:

Total approved this Month $0.00 $ - By: Date:

TOTALS $ 267,717 $ - This Certificate is not negotiable. The AMOUNT CERTIFIED is payable only to the Contractor named herein. Issuance, payment and acceptance of payment are without NET CHANGES by Change Order $ 267,717 prejudice to any rights of the Owner or Contractor under this Contract.

AIA DOCUMENT G702 · APPLICATION AND CERTIFICATION FOR PAYMENT · 1992 EDITION · AIA · ©1992 THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVE., N.W., WASHINGTON, DC 20006-5292 Users may obtain validation of this document by requesting a completed AIA Document D401 - Certification of Document's Authenticity from the Licensee.

CONSTRUCTION MANAGER:

By:

Project Manager
PCN3, INC. City of Hawthrone New Senior Center APPLICATION NUMBER: 6 10591 Humbolt Street, Unit A CITY OF Hawthrone APPLICATION DATE: 7/31/2025 Los Alamitos, CA, 90720 Schedule of Values PERIOD TO: 7/31/2025

A B C D E F G H I
ITEM DESCRIPTION OF WORK SCHEDULED TOTAL BILLED MATERIALS STORED TOTAL % BALANCE RETAINAGE NO. VALUE PREVIOUS THIS PRIOR CURRENT TOTAL COMPLETED T/D TO FINISH 5%

APPLICATIONS PERIOD STORED STORED STORED AND STORED (C-G)

TO DATE

1.00 EXISTING CONDITIONS (SITEWORK) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

1.a DEMO @ SENIOR CENTER SITE (HAULING INCLUDED) 38,406.64 38,406.64 0.00 0.00 0.00 $0.00 $38,406.64 100% $0.00 $1,920.33

1.b DEMO @ EAST PARKING LOT (HAULING INCLUDED) 47,072.56 47,072.56 0.00 0.00 0.00 $0.00 $47,072.56 100% $0.00 $2,353.63

1.c DEMO @ NORTH PARKING LOT (HAULING INCLUDED) 32,013.40 32,013.40 0.00 0.00 0.00 $0.00 $32,013.40 100% $0.00 $1,600.67

1.d MISC. SITE DEMO 8,260.00 8,260.00 0.00 0.00 0.00 $0.00 $8,260.00 100% $0.00 $413.00

2.00 EARTHWORK: SITE PREPARATION (SITEWORK) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

2.a SITE CLEARING 20,731.42 20,731.42 0.00 0.00 0.00 $0.00 $20,731.42 100% $0.00 $1,036.57

2.b ROUGH GRADING 41,462.84 41,462.84 0.00 0.00 0.00 $0.00 $41,462.84 100% $0.00 $2,073.14

2.c RAW CUT - PER C.E. QUANTITY 2,147.60 2,147.60 0.00 0.00 0.00 $0.00 $2,147.60 100% $0.00 $107.38

2.d FINE GRADING 52,204.38 10,000.00 0.00 0.00 0.00 $0.00 $10,000.00 19% $42,204.38 $500.00

2.e BUILDING PAD OVEREXCAVATION - WEST ADDITION 66,599.20 66,599.20 0.00 0.00 0.00 $0.00 $66,599.20 100% $0.00 $3,329.96

2.f BUILDING PAD OVEREXCAVATION - EXTENDED SLAB 10,431.20 10,431.20 0.00 0.00 0.00 $0.00 $10,431.20 100% $0.00 $521.56

2.g SCARIFY & COMPACT U/S PAVING 11,756.34 11,756.34 0.00 0.00 0.00 $0.00 $11,756.34 100% $0.00 $587.82

2.h EXPORT/HAUL DIRT SURPLUS + 15% SWELL VOLUME 16,726.50 16,726.50 0.00 0.00 0.00 $0.00 $16,726.50 100% $0.00 $836.33

2.i EROSION CONTROL 31,097.13 31,097.13 0.00 0.00 0.00 $0.00 $31,097.13 100% $0.00 $1,554.86

3.00 EXTERIOR IMPROVEMENTS (SITEWORK) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

3.a.I SENIOR CENTER SITE - HARDSCAPE 139,670.70 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $139,670.70 $0.00

3.a.II SENIOR CENTER SITE - BRICK PAVERS 121,197.80 2,500.00 0.00 0.00 0.00 $0.00 $2,500.00 2% $118,697.80 $125.00

3.a.III SENIOR CENTER SITE - LANDSCAPE 197,109.89 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $197,109.89 $0.00

3.a.IV SENIOR CENTER SITE - SITE WALLS 43,660.00 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $43,660.00 $0.00

3.a.V

SENIOR CENTER SITE - ORNAMENTAL STEEL FENCING &
GATES 106,412.40 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $106,412.40 $0.00

3.b EAST PARKING LOT 109,801.36 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $109,801.36 $0.00

3.C NORTH PARKING LOT 69,844.20 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $69,844.20 $0.00

3.d SIGNAGE 1,180.00 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $1,180.00 $0.00

4.00 UTILITIES (SITEWORK) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

4.a STORM DRAINS 135,924.20 122,500.00 13,424.20 0.00 0.00 $0.00 $135,924.20 100% $0.00 $6,796.21

4.b FIRE WATER 203,904.00 183,900.00 20,004.00 0.00 0.00 $0.00 $203,904.00 100% $0.00 $10,195.20

4.c SANITARY SEWER 37,288.00 37,288.00 0.00 0.00 0.00 $0.00 $37,288.00 100% $0.00 $1,864.40

4.d NATURAL GAS 5,900.00 0.00 5,900.00 0.00 0.00 $0.00 $5,900.00 100% $0.00 $295.00

4.e PRIMARY/SECONDARY POWER SERVICE 102,424.00 50,000.00 0.00 0.00 0.00 $0.00 $50,000.00 49% $52,424.00 $2,500.00

4.f ELECTRIC VEHICLE CHARGING STATION 43,365.00 10,000.00 0.00 0.00 0.00 $0.00 $10,000.00 23% $33,365.00 $500.00

4.g SITE LIGHTING 47,200.00 10,000.00 0.00 0.00 0.00 $0.00 $10,000.00 21% $37,200.00 $500.00

4.h MISCELLANEOUS 1,180.00 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $1,180.00 $0.00

5.00 EXISTING CONDITIONS (EXISTING BUILDING RENOVATION + EXTENSION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

5.a SELECTIVE BUILDING DEMOLITION (HAULING INCLUDED) 292,287.18 292,287.18 0.00 0.00 0.00 $0.00 $292,287.18 100% $0.00 $14,614.36

5.b PLUMBING DEMOLITION 4,814.40 4,814.40 0.00 0.00 0.00 $0.00 $4,814.40 100% $0.00 $240.72

5.c HVAC DEMOLITION 9,086.00 9,086.00 0.00 0.00 0.00 $0.00 $9,086.00 100% $0.00 $454.30

5.d ELECTRICAL DEMOLITION 48,757.60 48,757.60 0.00 0.00 0.00 $0.00 $48,757.60 100% $0.00 $2,437.88

6.00 CONCRETE (EXISTING BUILDING RENOVATION +
EXTENSION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

6.a FOUNDATION - INCLUDED PER SEPARATE ADDITION 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

6.b ELEVATOR 208,904.34 160,000.00 48,904.34 0.00 0.00 $0.00 $208,904.34 100% $0.00 $10,445.22 Hawthorne-SeniorCenter-July-25-PayApp Page 2

A B C D E F G H I
ITEM DESCRIPTION OF WORK SCHEDULED TOTAL BILLED MATERIALS STORED TOTAL % BALANCE RETAINAGE NO. VALUE PREVIOUS THIS PRIOR CURRENT TOTAL COMPLETED T/D TO FINISH 5%

APPLICATIONS PERIOD STORED STORED STORED AND STORED (C-G)

TO DATE

6.c SLAB-ON-GRADE/CURBS 99,426.80 54,000.00 45,426.80 0.00 0.00 $0.00 $99,426.80 100% $0.00 $4,971.34

7.00 MASONRY (EXISTING BUILDING RENOVATION + EXTENSION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

7.a EXTERIOR CMU WALL 40,419.72 20,000.00 15,000.00 0.00 0.00 $0.00 $35,000.00 87% $5,419.72 $1,750.00

7.b INTERIOR CMU WALL 154,374.68 80,000.00 54,474.00 0.00 0.00 $0.00 $134,474.00 87% $19,900.68 $6,723.70

8.00 METALS (EXISTING BUILDING RENOVATION + EXTENSION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

8.a PERFORATED METAL PANEL SYSTEM 186,381.00 93,000.00 0.00 0.00 0.00 $0.00 $93,000.00 50% $93,381.00 $4,650.00

8.b MISC. METALS 11,800.00 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $11,800.00 $0.00 9 CARPENTRY (EXISTING BUILDING RENOVATION +
EXTENSION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

9.a FINISH CARPENTRY 166,675.00 5,000.00 0.00 0.00 0.00 $0.00 $5,000.00 3% $161,675.00 $250.00

9.b ROUGH CARPENTRY 228,092.23 75,000.00 50,000.00 0.00 0.00 $0.00 $125,000.00 55% $103,092.23 $6,250.00 10 THERMAL & MOISTURE PROTECTION (EXISTING BUILDING
RENOVATION + EXTENSION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

10.a ROOFING 186,857.25 5,000.00 0.00 0.00 0.00 $0.00 $5,000.00 3% $181,857.25 $250.00

10.b MISCELLANEOUS 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00 11 OPENINGS (EXISTING BUILDING RENOVATION + EXTENSION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

11.a EXTERIOR DOORS + H.W. 49,678.00 2,500.00 0.00 0.00 0.00 $0.00 $2,500.00 5% $47,178.00 $125.00

11.b WINDOWS 227,364.76 2,500.00 0.00 0.00 0.00 $0.00 $2,500.00 1% $224,864.76 $125.00

11.c DOORS + H.W. 100,250.44 2,500.00 0.00 0.00 0.00 $0.00 $2,500.00 2% $97,750.44 $125.00

11.d WINDOWS 16,903.50 2,500.00 0.00 0.00 0.00 $0.00 $2,500.00 15% $14,403.50 $125.00

12.00 FINISHES (EXISTING BUILDING RENOVATION + EXTENSION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

12.a EXTERIOR WALLS 167,562.36 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $167,562.36 $0.00

12.b INTERIOR WALLS 343,807.16 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $343,807.16 $0.00

12.c FLOOR FINISHES 150,590.42 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $150,590.42 $0.00

12.d CEILING FINISHES 203,943.81 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $203,943.81 $0.00

12.e VERTICAL SOFFITS 53,764.20 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $53,764.20 $0.00

12.f EXTERIOR SOFFIT 738.68 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $738.68 $0.00 13 SPECIALTIES (EXISTING BUILDING RENOVATION +
EXTENSION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

13.a RESTROOM SPECIALTIES 33,722.04 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $33,722.04 $0.00

13.b MISC. SPECIALTIES 24,965.02 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $24,965.02 $0.00 14 ALL EQUIPMENT - N.I.C. 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00 15 FURNISHINGS (EXISTING BUILDING RENOVATION +
EXTENSION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

15.a WINDOW SHADES 23,564.60 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $23,564.60 $0.00

15.b FURNISHINGS - ALL FF & E - N.I.C. 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00 16 SPECIAL CONSTRUCTION (EXISTING BUILDING RENOVATION
+ EXTENSION) - THIS SECTION NOT APPLICABLE 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00 17 CONVEYING EQUIPMENT (EXISTING BUILDING RENOVATION
+ EXTENSION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00 18 FIRE SUPPRESSION (EXISTING BUILDING RENOVATION +
EXTENSION) 121,240.00 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $121,240.00 $0.00 19 PLUMBING (EXISTING BUILDING RENOVATION + EXTENSION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

19.a

PLUMBING EQUIPMENT - INCLUDED PER SEPARATE
ADDITION ESTIMATE 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

19.b PLUMBING FIXTURES 34,220.00 1,000.00 0.00 0.00 0.00 $0.00 $1,000.00 3% $33,220.00 $50.00 Hawthorne-SeniorCenter-July-25-PayApp Page 3

A B C D E F G H I
ITEM DESCRIPTION OF WORK SCHEDULED TOTAL BILLED MATERIALS STORED TOTAL % BALANCE RETAINAGE NO. VALUE PREVIOUS THIS PRIOR CURRENT TOTAL COMPLETED T/D TO FINISH 5%

APPLICATIONS PERIOD STORED STORED STORED AND STORED (C-G)

TO DATE

19.c COLD WATER 37,771.80 10,500.00 0.00 0.00 0.00 $0.00 $10,500.00 28% $27,271.80 $525.00

19.d HOT WATER 21,428.80 500.00 0.00 0.00 0.00 $0.00 $500.00 2% $20,928.80 $25.00

19.e SANITARY SEWER & VENT 62,315.80 45,500.00 0.00 0.00 0.00 $0.00 $45,500.00 73% $16,815.80 $2,275.00

19.f CONDENSATE DRAINS 22,007.00 500.00 0.00 0.00 0.00 $0.00 $500.00 2% $21,507.00 $25.00

19.g
ROOF DRAINS - SEE DIVISION 7 FOR GUTTER &
DOWNSPOUT 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

19.h NATURAL GAS 3,352.14 1,000.00 0.00 0.00 0.00 $0.00 $1,000.00 30% $2,352.14 $50.00 20 HVAC (EXISTING BUILDING RENOVATION + EXTENSION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

20.a ROOFTOP AC UNIT 115,223.46 3,000.00 0.00 0.00 0.00 $0.00 $3,000.00 3% $112,223.46 $150.00

20.b VRF SPLIT SYSTEM 92,712.60 3,000.00 0.00 0.00 0.00 $0.00 $3,000.00 3% $89,712.60 $150.00

20.c MINI SPLIT SYSTEM 30,326.00 3,000.00 0.00 0.00 0.00 $0.00 $3,000.00 10% $27,326.00 $150.00

20.d EXHAUST FAN 2,861.50 300.00 0.00 0.00 0.00 $0.00 $300.00 10% $2,561.50 $15.00

20.e CONTROLS 11,363.40 1,000.00 0.00 0.00 0.00 $0.00 $1,000.00 9% $10,363.40 $50.00

20.f MISCELLANEOUS 1,180.00 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $1,180.00 $0.00 21 ELECTRICAL (EXISTING BUILDING RENOVATION +
EXTENSION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

21.a ELECTRICAL EQUIPMENT & PANELS 42,480.00 12,000.00 0.00 0.00 0.00 $0.00 $12,000.00 28% $30,480.00 $600.00

21.b PANEL "K" FEEDER 16,862.20 11,000.00 0.00 0.00 0.00 $0.00 $11,000.00 65% $5,862.20 $550.00

21.c BRANCH POWER 32,579.56 15,000.00 0.00 0.00 0.00 $0.00 $15,000.00 46% $17,579.56 $750.00

21.d HVAC/PLUMBING EQUIPMENT POWER 89,028.99 20,000.00 0.00 0.00 0.00 $0.00 $20,000.00 22% $69,028.99 $1,000.00

21.e LIGHTING 111,156.00 2,500.00 0.00 0.00 0.00 $0.00 $2,500.00 2% $108,656.00 $125.00

21.f EXT 305,717.82 30,000.00 0.00 0.00 0.00 $0.00 $30,000.00 10% $275,717.82 $1,500.00

21.g MISCELLANEOUS 1,180.00 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $1,180.00 $0.00 22 COMMUNICATIONS (EXISTING BUILDING RENOVATION +
EXTENSION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

22.a SIGNAL SYSTEM 139,118.66 2,500.00 0.00 0.00 0.00 $0.00 $2,500.00 2% $136,618.66 $125.00 23 ELECTRONIC SAFETY & SECURITY (EXISTING BUILDING
RENOVATION + EXTENSION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

23.a FIRE ALARM 99,214.40 5,000.00 15,000.00 0.00 0.00 $0.00 $20,000.00 20% $79,214.40 $1,000.00

23.b SECURITY 119,057.28 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $119,057.28 $0.00

24.00 EXTERIOR IMPROVEMENTS (EXISTING BUILDING
RENOVATION + EXTENSION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

24.a EAST COURT 25,315.72 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $25,315.72 $0.00 25 EXISTING CONDITIONS (1ST FLOOR WEST & 2ND FLOOR

BUILDING ADDITION) - SEE SEPARATE SITEWORK FOR SITE
DEMOLITION 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00 26 CONCRETE (1ST FLOOR WEST & 2ND FLOOR BUILDING
ADDITION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

26.a FOUNDATION 186,440.00 186,440.00 0.00 0.00 0.00 $0.00 $186,440.00 100% $0.00 $9,322.00

26.b SLAB-ON-GRADE/CURBS 97,168.28 97,168.28 0.00 0.00 0.00 $0.00 $97,168.28 100% $0.00 $4,858.41

26.c CONCRETE COLUMN 246,030.00 246,030.00 0.00 0.00 0.00 $0.00 $246,030.00 100% $0.00 $12,301.50

26.d SUSPENDED CONCRETE SLAB & BEAMS 770,999.02 5,000.00 50,000.00 0.00 0.00 $0.00 $55,000.00 7% $715,999.02 $2,750.00

26.e MISC. CONCRETE 7,021.00 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $7,021.00 $0.00 27 MASONRY (1ST FLOOR WEST & 2ND FLOOR BUILDING
ADDITION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

27.a EXTERIOR CMU WALL 311,367.78 160,000.00 115,000.00 0.00 0.00 $0.00 $275,000.00 88% $36,367.78 $13,750.00 28 METALS (1ST FLOOR WEST & 2ND FLOOR BUILDING
ADDITION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

28.a STRUCTURAL STEEL 358,039.14 50,000.00 10,000.00 0.00 0.00 $0.00 $60,000.00 17% $298,039.14 $3,000.00 Hawthorne-SeniorCenter-July-25-PayApp Page 4

A B C D E F G H I
ITEM DESCRIPTION OF WORK SCHEDULED TOTAL BILLED MATERIALS STORED TOTAL % BALANCE RETAINAGE NO. VALUE PREVIOUS THIS PRIOR CURRENT TOTAL COMPLETED T/D TO FINISH 5%

APPLICATIONS PERIOD STORED STORED STORED AND STORED (C-G)

TO DATE

28.b EXTERIOR METAL STAIR 108,896.30 10,000.00 0.00 0.00 0.00 $0.00 $10,000.00 9% $98,896.30 $500.00

28.c METAL PAN STAIR, INTERIOR 206,183.76 5,000.00 0.00 0.00 0.00 $0.00 $5,000.00 2% $201,183.76 $250.00

28.d EXTERIOR SCREEN SYSTEM 1,020,169.00 220,000.00 100,000.00 0.00 0.00 $0.00 $320,000.00 31% $700,169.00 $16,000.00

28.e MISC. METALS 187,195.20 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $187,195.20 $0.00

29.00 CARPENTRY (1ST FLOOR WEST & 2ND FLOOR BUILDING
ADDITION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

29.a FINISH CARPENTRY 149,270.00 2,500.00 0.00 0.00 0.00 $0.00 $2,500.00 2% $146,770.00 $125.00

29.b ROUGH CARPENTRY 232,353.80 2,500.00 0.00 0.00 0.00 $0.00 $2,500.00 1% $229,853.80 $125.00

30.00 THERMAL & MOISTURE PROTECTION (1ST FLOOR WEST &
2ND FLOOR BUILDING ADDITION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

30.a ROOFING 135,812.34 2,500.00 0.00 0.00 0.00 $0.00 $2,500.00 2% $133,312.34 $125.00

30.b WATERPROOFING 97,783.59 1,500.00 0.00 0.00 0.00 $0.00 $1,500.00 2% $96,283.59 $75.00

30.c MISCELLANEOUS 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00 31 OPENINGS (1ST FLOOR WEST & 2ND FLOOR BUILDING
ADDITION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

31.a EXTERIOR DOORS + H.W. 44,958.00 2,500.00 0.00 0.00 0.00 $0.00 $2,500.00 6% $42,458.00 $125.00

31.b EXTERIOR WINDOWS 149,067.13 2,500.00 0.00 0.00 0.00 $0.00 $2,500.00 2% $146,567.13 $125.00

31.c INTERIOR DOORS + H.W. 100,250.44 2,500.00 0.00 0.00 0.00 $0.00 $2,500.00 2% $97,750.44 $125.00

31.d INTERIOR WINDOWS 16,903.50 2,500.00 0.00 0.00 0.00 $0.00 $2,500.00 15% $14,403.50 $125.00 32 FINISHES (1ST FLOOR WEST & 2ND FLOOR BUILDING
ADDITION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

32.a EXTERIOR WALLS 669,247.62 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $669,247.62 $0.00

32.b INTERIOR WALLS 492,469.46 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $492,469.46 $0.00

32.c FLOOR FINISHES 224,244.86 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $224,244.86 $0.00

32.d CEILING FINISHES 107,511.85 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $107,511.85 $0.00

32.e VERTICAL SOFFITS 98,997.28 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $98,997.28 $0.00

32.f EXTERIOR SOFFIT/FASCIA 68,864.80 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $68,864.80 $0.00 33 SPECIALTIES (1ST FLOOR WEST & 2ND FLOOR BUILDING
ADDITION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

33.a RESTROOM SPECIALTIES 87,426.31 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $87,426.31 $0.00

33.b MISC. SPECIALTIES 42,461.59 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $42,461.59 $0.00 34 EQUIPMENT (1ST FLOOR WEST & 2ND FLOOR BUILDING
ADDITION) - N.I.C 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

35.00 FURNISHINGS (1ST FLOOR WEST & 2ND FLOOR BUILDING
ADDITION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

35.a WINDOW SHADES, MOTORIZED - ALLOWANCE 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

35.b FURNISHINGS - N.I.C. 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00 36 SPECIAL CONSTRUCTION (1ST FLOOR WEST & 2ND FLOOR
BUILDING ADDITION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

36.a OUTDOOR DECK PEDESTAL SYSTEM 188,698.82 2,500.00 0.00 0.00 0.00 $0.00 $2,500.00 1% $186,198.82 $125.00

36.b OUTDOOR GREEN DECK 109,032.00 2,500.00 0.00 0.00 0.00 $0.00 $2,500.00 2% $106,532.00 $125.00

37.00 CONVEYING EQUIPMENT (1ST FLOOR WEST & 2ND FLOOR
BUILDING ADDITION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

37.a PASSENGER ELEVATOR 160,480.00 15,000.00 0.00 0.00 0.00 $0.00 $15,000.00 9% $145,480.00 $750.00

38.00 FIRE SUPPRESSION (1ST FLOOR WEST & 2ND FLOOR
BUILDING ADDITION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

38.a FIRE SPRINKLER SYSTEM 123,489.45 12,500.00 0.00 0.00 0.00 $0.00 $12,500.00 10% $110,989.45 $625.00 39 PLUMBING (1ST FLOOR WEST & 2ND FLOOR BUILDING
ADDITION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

39.a PLUMBING EQUIPMENT 20,650.00 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $20,650.00 $0.00 Hawthorne-SeniorCenter-July-25-PayApp Page 5

A B C D E F G H I
ITEM DESCRIPTION OF WORK SCHEDULED TOTAL BILLED MATERIALS STORED TOTAL % BALANCE RETAINAGE NO. VALUE PREVIOUS THIS PRIOR CURRENT TOTAL COMPLETED T/D TO FINISH 5%

APPLICATIONS PERIOD STORED STORED STORED AND STORED (C-G)

TO DATE

39.b PLUMBING FIXTURES 59,000.00 2,500.00 0.00 0.00 0.00 $0.00 $2,500.00 4% $56,500.00 $125.00

39.c COLD WATER 70,575.80 17,500.00 0.00 0.00 0.00 $0.00 $17,500.00 25% $53,075.80 $875.00

39.d HOT WATER 36,509.20 9,000.00 0.00 0.00 0.00 $0.00 $9,000.00 25% $27,509.20 $450.00

39.e SANITARY SEWER & VENT 94,588.80 47,000.00 0.00 0.00 0.00 $0.00 $47,000.00 50% $47,588.80 $2,350.00

39.f CONDENSATE DRAINS 19,765.00 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $19,765.00 $0.00

39.g ROOF DRAINS 4,845.55 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $4,845.55 $0.00

40.00 HVAC (1ST FLOOR WEST & 2ND FLOOR BUILDING ADDITION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

40.a VRF SPLIT SYSTEM 232,029.30 10,000.00 0.00 0.00 0.00 $0.00 $10,000.00 4% $222,029.30 $500.00

40.b MINI SPLIT SYSTEM 9,440.00 500.00 0.00 0.00 0.00 $0.00 $500.00 5% $8,940.00 $25.00

40.c EXHAUST FAN 19,169.10 1,000.00 0.00 0.00 0.00 $0.00 $1,000.00 5% $18,169.10 $50.00 41 ELECTRICAL (1ST FLOOR WEST & 2ND FLOOR BUILDING
ADDITION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

41.a ELECTRICAL EQUIPMENT 25,665.00 1,000.00 0.00 0.00 0.00 $0.00 $1,000.00 4% $24,665.00 $50.00

41.b PANEL BOARD 12,390.00 1,000.00 0.00 0.00 0.00 $0.00 $1,000.00 8% $11,390.00 $50.00

41.c SECONDARY FEEDER 53,336.00 53,336.00 0.00 0.00 0.00 $0.00 $53,336.00 100% $0.00 $2,666.80

41.d BRANCH POWER 45,496.08 22,000.00 0.00 0.00 0.00 $0.00 $22,000.00 48% $23,496.08 $1,100.00

41.e HVAC/PLUMBING EQUIPMENT POWER 44,092.12 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $44,092.12 $0.00

41.f LIGHTING 201,952.16 5,000.00 0.00 0.00 0.00 $0.00 $5,000.00 2% $196,952.16 $250.00

41.g MISCELLANEOUS 1,180.00 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $1,180.00 $0.00 42 COMMUNICATIONS (1ST FLOOR WEST & 2ND FLOOR
BUILDING ADDITION) 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

42.a SIGNAL SYSTEM 155,747.02 2,500.00 0.00 0.00 0.00 $0.00 $2,500.00 2% $153,247.02 $125.00

43.00 ELECTRONIC SAFETY & SECURITY (1ST FLOOR WEST & 2ND FLOOR BUILDING ADDITION) 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

43.a FIRE ALARM 101,055.20 5,000.00 15,000.00 0.00 0.00 $0.00 $20,000.00 20% $81,055.20 $1,000.00

43.b SECURITY 121,266.24 0.00 0.00 0.00 0.00 $0.00 $0.00 0% $121,266.24 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00 Change orders 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00 Change order #1 - Abatement 137,865.00 137,865.00 0.00 0.00 0.00 $0.00 $137,865.00 100% $0.00 $6,893.25 Change order #2 - Extra interior demo 74,270.00 74,270.00 0.00 0.00 0.00 $0.00 $74,270.00 100% $0.00 $3,713.50

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00 Change order #5 - removal and disposal of 2 subpanels 4,121.65 4,121.65 0.00 0.00 0.00 $0.00 $4,121.65 100% $0.00 $206.08

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00 Change order # 8 - exploratory work for water intrusion 1,671.86 1,671.86 0.00 0.00 0.00 $0.00 $1,671.86 100% $0.00 $83.59

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00 Change order #10 - remvoal of cabinetry 1,999.66 1,999.66 0.00 0.00 0.00 $0.00 $1,999.66 100% $0.00 $99.98

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00 Change order #16 - Storm drain 27,060.80 27,060.80 0.00 0.00 0.00 $0.00 $27,060.80 100% $0.00 $1,353.04

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00 Change order #20 - Electrical Floor Boxes 20,727.74 20,727.74 0.00 0.00 0.00 $0.00 $20,727.74 100% $0.00 $1,036.39

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00 Hawthorne-SeniorCenter-July-25-PayApp Page 6

A B C D E F G H I
ITEM DESCRIPTION OF WORK SCHEDULED TOTAL BILLED MATERIALS STORED TOTAL % BALANCE RETAINAGE NO. VALUE PREVIOUS THIS PRIOR CURRENT TOTAL COMPLETED T/D TO FINISH 5%

APPLICATIONS PERIOD STORED STORED STORED AND STORED (C-G)

TO DATE

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00

0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00 $0.00 #DIV/0! $0.00 $0.00
TOTALS 14,712,716.71 3,253,329.00 558,133.34 0.00 0.00 0.00 3,811,462.34 25.91% 10,901,254.37 190,573.12 Hawthorne-SeniorCenter-July-25-PayApp Page 7
AGENDA ITEM NO. 14.

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of 08/12/2025
Originating Department: Public Works
City Manager: Department Head:

SUBJECT:

Award of Contract for Eucalyptus Park and Ramona Park Improvement (Project # 24-07) RECOMMENDED MOTION:

Staff recommends that the City Council award contract to lowest responsible and responsive bidder, Martinez Landscape Co., Inc. of Sylmar, CA pending approval of HUD Section 108 Loan Guarantee funds.

DISCUSSION:

At the meeting of June 10, 2025, City Council authorized Engineering Staff to publicly readvertize for this project with a due date of July 22, 2025. The City received four bids with each accompanied by bid bonds. After a thorough review of the proposal, reference checks, and verification of the contractor's license, staff determined that Martinez Landscape Co., Inc. of Sylmar, CA was the lowest responsive and responsible bidder.

The project involves enhancing Eucalyptus Park and Ramona Park in the City of Hawthorne. For Eucalyptus Park, this project will remove and replace the existing play equipment, remove and replace play area rubber base along with construction of perimeter curb, installation of 3 water fountains, improve lighting around play area, refresh the restroom building exterior and interior, refresh the paint for the wading pool, installation of closed circuit security system cameras and associated poles, and the construction of a new recreational soccer field including, all grading and associated earthwork, drainage including sump pump and catch basins, field lighting, solar-powered scoreboard and associated structural mount and wiring, relocation of existing utility boxes within soccer field area, security fencing that includes ADA accessible gates and maintenance gate, and 4 in-ground mounted benches (1 will be ADA accessible.)
For Ramona Park, this project will remove and replace the existing play equipment, remove and replace play area rubber base and construction of perimeter curb, remove and replace barbecue grills, refresh the paint for the wading pool, refresh restroom building interior and exterior, refresh horseshoe/bocce play area by replacing wooden backboards, adding sand, and repairing the chain-link fence as necessary, installing new shade structure to picnic area per plan and specifications, refresh fitness area floor (i.e. remove existing dirt floor and trash and add decomposed granite), installation of closed circuit security system cameras and associated poles, and re-stripe the existing basketball/pickleball court.

ECONOMIC DEVELOPMENT STRATEGIC PLAN:

An upgraded park with modern amenities like playgrounds, picnic areas, and walking paths can attract visitors from neighboring areas. This influx of tourists can lead to increased spending on local businesses such as restaurants, cafes, and shops, thus stimulating economic growth within the City.

FISCAL IMPACT:

None. The approximate cost of $2,658,173 will be funded through HUD Section 108 Loan Guarantee Funds.

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

ATTACHMENTS
Bid List

AGENDA ITEM NO. 15.

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of 08/12/2025
Originating Department: Police Department
City Manager: Department Head:

SUBJECT:

Approval of an Agreement Between the Hawthorne Police Department and the Hawthorne School District for the provision of a "School Resource Officer" (SRO).

RECOMMENDED MOTION:

Staff recommends the City Council approve and authorize the Chief of Police to execute the Agreement between the Hawthorne Police Department and the Hawthorne School District for the provision of a "School Resource Officer" (SRO).

DISCUSSION:

The Hawthorne Police Department has a long and well-established relationship with the Hawthorne School District. The Hawthorne Police Department has been providing a School Resource Officer (SRO) to the Hawthorne School District for over five years. The Hawthorne Police Department would like to continue providing School Resource Officer (SRO) services to the Hawthorne School District for the upcoming school year. The Hawthorne Police Department and the Hawthorne School District have agreed upon an annual cost of $174,000 for one (1) year for the proposed service requested.

ECONOMIC DEVELOPMENT STRATEGIC PLAN:

N/A.

FISCAL IMPACT:

None.

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

ATTACHMENTS
Hawthorne School Distict SRO Agreement

AGENDA ITEM NO. 16.

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of 08/12/2025
Originating Department: Police Department
City Manager: Department Head:

SUBJECT:

Approval of an Agreement Between the Hawthorne Police Department and the Centinela Valley Union High School District for the provision of a "School Resource Officer" (SRO).

RECOMMENDED MOTION:

Staff recommends the City Council approve and authorize the Chief of Police to execute the Agreeement between the Hawthorne Police Department and the Centinela Valley Union High School District for the provision of a "School Resource Officer" (SRO).

DISCUSSION:

The Hawthorne Police Department has a long and well-established relationship with the Centinela Valley Union High School District. The Hawthorne Police Department has been providing a School Resource Officer (SRO) to the Centinela Valley Union High School District for over five years. The Hawthorne Police Department would like to continue providing School Resource Officer (SRO) services to the Centinela Valley Union High School District for the upcoming school year. The Hawthorne Police Department and the Centinela Valley Union High School District have agreed upon an annual cost of $174,000 for one (1) year for the proposed service requested.

ECONOMIC DEVELOPMENT STRATEGIC PLAN:

N/A.

FISCAL IMPACT:

None.

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

ATTACHMENTS
Centinela Valley Union High School Distict SRO Agreement

AGENDA ITEM NO. 17.

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of 08/12/2025
Originating Department: City Manager
City Manager:Department Head: Acting City Manager:

SUBJECT:

Side Letter of Agreement between the City of Hawthorne and Hawthorne Police Management Supervisory Group (HPMSG) -- Retention Pay Amendment
RECOMMENDED MOTION:

That the City Council approve the Side Letter of Agreement between the City of Hawthorne and the Hawthorne Police Management Supervisory Group (HPMSG) amending Section 9.11 of the Memorandum of Understanding (MOU) regarding retention pay to include reserve time in the calculation of eligibility, effective March 27, 2025 and authorize the City Manager to execute the side letter agreement.

DISCUSSION:

The City of Hawthorne and HPMSG are parties to a current Memorandum of Understanding (MOU) effective July 27, 2024, through June 30, 2027. This agreement outlines wages, hours, and other terms and conditions of employment for classifications represented by HPMSG.

To ensure parity between employees represented by the Hawthorne Police Officers' Association (HPOA) and HPMSG, and to provide a fair transition for employees promoted from HPOA into HPMSGrepresented classifications, the City and HPMSG have agreed to amend Section 9.11 of the MOU via Side Letter.

This Side Letter of Agreement temporarily amends Article 9, Section 9.11 of the HPMSG MOU to mirror the provisions in Article 9, Section 9.9 of the HPOA MOU. The amendment includes the following changes:

Inclusion of reserve time in the calculation of eligibility for the 25-year retention pay benefit.

Clarification of "lateral entry Police Officer" and the consideration of prior service for retention pay eligibility.

Retention pay will be reported as special compensation to the extent permitted by CalPERS regulations.

This adjustment aligns compensation practices across units and supports recruitment and retention objectives for supervisory personnel within the Police Department.

Approval of this Side Letter will promote internal equity among sworn personnel and facilitate a consistent approach to recognizing long-term service.

ECONOMIC DEVELOPMENT STRATEGIC PLAN:

N/A
FISCAL IMPACT:

The fiscal impact of this amendment is limited to affected HPMSG employees who meet the new criteria.

Funding is available in the approved FY 2024-25 and FY 2025-26 budgets.

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

ATTACHMENTS
hpmsg side letter

SIDE LETTER OF AGREEMENT
City of Hawthorne And
Hawthorne Police Management Supervisory Grouup (“HPMSG”) This side letter agreement is entered by and between the City of Hawthorne (“City”) and the Hawthorne Police Management Supervisory Group (“HPMSG”) with respect to the following:

WHEREAS, HPMSG and the City have entered into a Memorandum of Understanding (“MOU”) between them that is in effect from July 27, 2024 to June 30, 2027, and governs generally the wages, hours and other terms and conditions of employment of the classifications represented by the HPMSG; and WHEREAS, the City intends to afford HPMSG an amended retention pay (Section

9.11) effective March 27, 2025, in order to ensure parity between employees represented by the Hawthorne Police Officers’ Association (HPOA) and the HPMSG and creating an equitable transition among individual employees promoting into the HPMSG bargaining unit from the rank of police officer by including reserve time in the calculation of eligibility for retention pay;
NOW THEREFORE, the City and HPMSG agree to temporarily amend Article 9, Section 9.11 to be consistent with Article 9, Section 9.9 of the MOU between HPOA and the City as follows:

1. Article 9, Section 9.11 of the MOU, shall be amended to provide as follows:

A. Effective January 4, 1998, a full-time employee who has completed twenty-five (25) years of service with the City as a sworn peace officer, including reserve time, shall receive retention pay in an amount equal to eleven percent (11%) of base pay. For purposes of calculating retention pay eligibility, the City agrees to factor the years of prior service of employees who were hired by the City of Hawthorne as laterals.

B. For purposes of this Section, a lateral entry Police Officer shall be defined as an employee hired by the City as a sworn Police Officer who has successfully completed a probationary period with another law enforcement agency in the position of sworn law enforcement officer and possesses a valid California Peace Officer Standards and Training (POST) Basic Course Certificate or has completed the Basic Course waiver process.

C. Retention pay shall be reported as special compensation to the extent allowed by CalPERS regulations.

2. All other existing wages, hours and other terms and conditions of employment shall remain in full force and effect throughout the term of the MOU, as interpreted herein.

FOR THE CITY OF HAWTHORNE
Von Norris, City Manager Date

FOR THE HAWTHORNE POLICE MANAGEMENT SUPERVISORY GROUP
(HPMSG)
Mike Matson, HPMSG Representative Date
AGENDA ITEM NO. 18.

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of 08/12/2025
Originating Department: Public Works
City Manager: Department Head:

SUBJECT:

Progress Payment #3 in the amount of $2,616,046.93 is due to Martinez Landscape Co., Inc of Sylmar, CA for the City of Hawthorne New City Yard (Project #24-02).

RECOMMENDED MOTION:

Staff recommends that the City Council approve this Progress Payment #3 and Change Order #1 to Martinez Landscape Co. Inc. of Sylmar, CA.

DISCUSSION:

The work for the project includes adequate parking spaces for large and regular vehicles, a two-story building, a fuel-pumping station for gas and diesel vehicles, an above-ground propane tank, a mechanic station, wash down bays, hazardous material storage, welding area, general storage, employee restroom, and storage space for large city vehicles. Vehicle parking spaces will have a photovoltaic canopy above, as well as on all building rooftops. The two-story administration building will contain ground-level storage, public-facing entrance/vestibule, elevator, office, restrooms, and elevator equipment room. The second story will include City offices, training rooms, conference rooms, mail intake and sorting, and staff restrooms. The roof of the administration building will also hold a new radio tower and drone pad. Additionally, new sidewalks will be installed that are ADA-compliant, along with driveways that provide entrance and exit to the facility. This project also consists of multiple trades, from low voltage electrical work to fueling station designing & construction. This requires the awarding contractor to have multiple subcontractors for various works which include, but not limited to: low-voltage electrical work for communication/security system, elevator construction and installation, mechanical lifts and pressure systems, fueling station design and installation, hazardous material storage construction, fire suppression system, standard plumbing, mechanical and electrical systems, ADA sidewalk construction, landscaping, etc. Any and all other additional, reduced or removed work will be made through negotiated change orders after the project's contract has been awarded in accordance with the bid documents.

The scope of work covered in Change Order #1 is for the redesign of the metal-roofed parking stalls in the north portion of the project site. The City requested the 4-post-metal-roofed parking stalls to be redesigned as roofed single pole parking stalls with solar panels and with the capability for single or dual EV charging stations.

ECONOMIC DEVELOPMENT STRATEGIC PLAN:

This project is a result of the City working closely with funding and regulatory agencies to support and improve our infrastructure.

FISCAL IMPACT:

None. Funds for this progress payment in the amount of $2,616,046.93 will be funded through the issuance of 2024 Lease Revenue Bonds (the "2024 Bonds"), Equipment Funds, Sewer Funds, Proposition A & C, and allocated funds from the 2024-2025 budget.

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

ATTACHMENTS
PP#3

ITEM CONTRACT
QUANTITY UNIT UNIT PRICE CONTRACT AMOUNT QTY OR % PREVIOUS QTY OR % THIS ESTIMATE AMOUNT THIS

ESTIMATE
TOTAL QTY OR %

TO DATE

TOTAL AMOUNT TO
DATE
A LS 1 $ 13,770,087.00 $ 13,770,087.00 16% 21% $ 2,753,733.61 36% $ 4,941,618.69 1 LS 1 $ 901,050.30 $ 901,050.30 0% 0% $ - 0% $ -
$ 14,671,137.30 3 3
TOTAL: $ 2,753,733.61 $ 4,941,618.69
LESS RETENTION: $ 137,686.68 $ 247,080.93
LESS PREVIOUSLY PAID: $ - $ 2,078,490.83
TOTAL AMOUNT DUE: $ 2,616,046.93 $ 2,616,046.93
$ 261,604.69
$ 1,046,418.77
$ 654,011.73
$ 654,011.73
Honorable Mayor and City Council 12-August-25
City of Hawthorne Council Date
Hawthorne, CA 90250
RE: PROGRESS PAYMENT NO.3 FOR CITY OF HAWTHORNE NEW CITY YARD PROJECT #24-02 The following is a detailed breakdown of Progress Payment No.3 due to Martinez Landscape Co., Inc Sylmar, CA for work done on the subject through July 2025.

DESCRIPTION
Building B2 structural walls erected, shop drawings
reviewed and approved, trenching for underground
utilities (electrical/plumbing). Building A2 footing
excavated, compacted, rebar placed, concrete poured.

Underground electrical conduit and plumbing lines
excavated and placed/being placed. Building A1
leveling and compaction completed, to commence
trenching for underground utilitie. Purchase of
material and equipment include but not limited to
electrical conduits, wiring, plumbing pipes, rebar,
concrete, sand, steel, electrical box, receptacles,
switches, etc.

TOTAL CONTRACT AMOUNT
TOTAL AMOUNT DUE THIS 2nd PROGRESS PAYMENT:
560-9101-000-0-0-47304
German Franco
German Franco
Project Engineer
Change Order #1: Redesign of the North metal
roofed parking structure at the request of the City for the New City Yard Project. Work to be done includes
the design & build of a solar panel shaded structure
in the North portion of the New City Yard Project,
including all needed materials/equipment/installation.

ACCOUNT NUMBER:
2853400-000-0-0-44504
220-4106-272-0-0-40694
600-3103-000-0-0-47304
TO: PROJECT NAME: APPLICATION NO: 3
PROJECT ADDRESS: APPLICATION DATE: 4-Aug-25
FROM: PROJECT NO: PERIOD TO: 1-Aug-25
CONTRACT START DATE: 0-Jan-00
CONTRACT NUMBER: 24-02
VENDOR ID NO: 0

CONTRACTOR'S APPLICATION FOR PAYMENT

1. ORIGINAL CONTRACT AMOUNT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

2. Net Change by Change Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

3. CONTRACT AMOUNT TO DATE (Line 1 + Line 2) . . . . . . . . . . . . . . . . . . . $

4. TOTAL COMPLETED & STORED TO DATE . . . . . . . . . . . . . . . . . . . . $ (Column G on Continuation Sheet)

5. RETAINAGE:
a._5_% of Completed Work (Line 4)
TOTAL RETAINAGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Contractor:

6. TOTAL EARNED LESS RETAINAGE . . . . . . . . . . . . . . . . . . . . . . . . . $ (Line 4 less Line 5 Total)

7. LESS PREVIOUS CERTIFICATES FOR PAYMENT . . . . . . . . . . . . . . . $ (Line 6 from prior Application for Payment)

8. CURRENT PAYMENT DUE (Line 6 less Line 7) . . . . . . . . . . . . . . . . . . . . . $

9. BALANCE TO FINISH, INCLUDING RETAINAGE (Line 3 less Line 6) . . . . $ Owner Use Only:

10. TOTAL WITHHOLDS (from Owner Assessment Summary ): . . . . . $

11. TOTAL RELEASES (from Owner Assessment Summary ): . . . . . . $

12. ADJUSTED PAYMENT AMOUNT: . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Owner's Authorized Representative (Signature) (Date)
2,616,046.93
2,616,046.93 (Contractor's Signature) (Date)
9,976,599.54
2,078,490.83 (Name and title)
$ 247,080.93
247,080.93 Martinez Landscape Co., Inc
4,694,537.76 (Please print name of company)
13,770,087.00
901,050.30
14,671,137.30
4,941,618.69
(Contractor) 0
12357 San Fernando Rd. Sylmar, CA 91342
(Remittance Address)
City Of Hawthorne New City Yard
12613 Doty Ave. Hawthorne, CA 90250
Martinez Landscape Co., Inc #24-02
Under penalty of perjury under the Laws of California, I certify that all items, units, quantities and prices for work shown on this payment request are correct; that all Work has been performed and materials supplied in full accordance with the terms and conditions of the construction contract on this project; that all of the information set forth herein or attached hereto is a true and correct statement of the Contract Amount and the Contract Time up to and including the last day of the period covered by this invoice, and that no part of the “Current Payment Due” has been received.

CERTIFICATION

REVIEWED AND APPROVED AS PER TERMS OF CONTRACT
MARTINEZ LANDSCAPE CO., INC
12357 SAN FERNANDO RD | SYLMAR, CA 91342
PH: (818) 364-9188 | FAX: (818) 364-9958

APPLICATION FOR PAYMENT
Paulette Martinez, Office manager
08/04/2025
Project: Date:

Location: Contract No.:

CCO#
Timeframe For Changes & Effect on Overall Schedule:

Estimates Price of Changes : $ 783,522.00
Overhead 15%:
• Bond 3% $ 117,528.00
• Labor 5%
• Material & Equipment 6%
Change Order Total : $ 901,050.30
This Change Order is Approved:

Signed: Signed:

Date : Date:

Title Title:

Submitting Company Name Receiving Company Name
24-02
Proposed Changes:

CARPORT & EV CHARGERS- Addendum #2
NEW CITY YARD 7/23/2025
1 Martinez Landscape Co., Inc
12357 San Fernando Road.

Sylmar, CA 91342
Change Order Request - COR
Martinez Landscape Co., Inc
12613 DOTY AVE, HAWTHONE CA 90250
07/23/25
President
Approved
Not Approved

AGENDA ITEM NO. 19.

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of 08/12/2025
Originating Department: City Manager
City Manager: Department Head:

SUBJECT:

Third amendment to the Memorandum of Understanding between the South Bay Cities Council Of Governments and The City of Hawthorne regarding the use of allocated County Local Solutions Grant Funds To Implement the City's Los Angeles Centers for Alcohol And Drug Abuse (LACADA) Project RECOMMENDED MOTION:

Staff recommends that the City Council approve the Third Amendment to the Memorandum of Understanding (MOU) with the South Bay Cities Council of Governments (SBCCOG) to extend the term and associated reporting deadlines for the LACADA Project through June 30, 2027, and authorize the City Manager to execute the amendment.

DISCUSSION:

On January 25, 2022, the City entered into an MOU with the South Bay Cities Council of Governments to implement the Los Angeles Centers for Alcohol and Drug Abuse (LACADA) Project using Local Solutions Grant Funds allocated through Los Angeles County's Measure H funding. This project aims to support substance abuse and recovery services in the City of Hawthorne. The agreement has previously been amended to align with shifting county funding strategies.

As Los Angeles County and the SBCCOG transition from Measure H funding to the Measure A Local Solutions Fund, the City and SBCCOG wish to ensure continued support for LACADA programs.

The Third Amendment will:

Extend the term of the MOU through June 30, 2027
Extend all reporting requirements accordingly
Does not involve any additional funding or changes to the original cost commitments.

All other terms and conditions of the original MOU remain unchanged and in full force and effect.

Approval of this Third Amendment will ensure continuity of important substance abuse treatment services in Hawthorne as the County transitions between funding sources.

ECONOMIC DEVELOPMENT STRATEGIC PLAN:

N/A
FISCAL IMPACT:

There is no fiscal impact as this amendment does not involve any additional funds or modify existing financial obligations.

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

ATTACHMENTS
von
von
von

THIRD AMENDMENT TO MEMORANDUM OF UNDERSTANDING BY

AND BETWEEN THE SOUTH BAY CITIES COUNCIL OF

GOVERNMENTS AND THE CITY OF HAWTHORNE REGARDING THE

USE OF ALLOCATED COUNTY LOCAL SOLUTIONS GRANT FUNDS
TO IMPLEMENT THE CITY’S LOS ANGELES CENTERS FOR

ALCOHOL AND DRUG ABUSE (LACADA) PROJECT
This Third Amendment to Memorandum of Understanding (the “Third Amendment”), dated as of the 1st of July 2025 (“the Amendment Effective Date”), is by and between the South Bay Cities Council of Governments (“SBCCOG”), a joint powers authority, and the City of Hawthorne (“City”), a chartered municipal corporation, (collectively, the “Parties”).

RECITALS
A. The Parties entered into a Memorandum of Understanding dated January 25th, 2022 (the "MOU") in order to implement the Hawthorne LACADA project.

B. The Parties wish to amend the MOU, by extending the Term and any reporting requirement deadlines of the MOU through June 30, 2027, to maintain support for our programs as Los Angeles County and the SBCCOG transition from Measure H funding to Measure A Local Solutions Funds.

C. This Third Amendment does not include any additional funds and has no effect on the financial cost of the MOU to the Parties.

NOW, THEREFORE, in consideration of the foregoing, the parties agree as follows:

1. Section I of the MOU, entitled “TERM”, is hereby to amended to read in its entirety as follows:
///
“I. TERM:

This MOU shall be effective as of January 25th, 2022, and shall remain in full force and effect until June 30, 2027 (“Term”), unless sooner terminated or extended, in whole or in part, as provided in the Contract Number HI-23-002 (Exhibit 1).”

2. In all other respects, the MOU, as modified by this Third Amendment, is hereby ratified and reaffirmed and remains in full force and effect.

3. This Third Amendment to Memorandum of Understanding is hereby executed and shall be effective as of the Effective Date, July 1, 2025. (SIGNATURES ON THE FOLLOWING PAGE)

SOUTH BAY CITIES COUNCIL OF GOVERNMENTS
By:_____________________________________ Date:_________________ Rodney Tanaka, SBCCOG Board Chair
ATTEST:

By:_____________________________________
Jacki Bacharach, Executive Director/Board Secretary

CITY OF HAWTHORNE
By:_____________________________________ Date:_________________ Alex Vargas, Mayor
ATTEST:

By:_____________________________________
Vontray Norris, City Manager
APPROVED AS TO FORM:

By:_____________________________________
Authorized Signer, City Attorney
June 26, 2025

AGENDA ITEM NO.

CITY OF HAWTHORNE

CITY COUNCIL

AGENDA BILL
For the meeting of January 25, 2022
Originating Department: Community Services
City Manager: ___________________
Vontray Norris
SUBJECT:

Memorandum of Understanding between the South Bay Cities Council of Governments and the City of Hawthorne.

RECOMMENDED MOTION:

Staff recommends that the City Council approve City Manager to execute Memorandum of Understanding between the South Bay Cities Council of Governments and the City of Hawthorne.

DISCUSSION:

Los Angeles County makes an annual investment of Measure H Strategy E7 funding ($500,000) to the COGs for Regional Homelessness Coordination. Additionally, Los Angeles County invested $9 million through the 2018 Cities’ Homelessness Plan Implementation Grant program and $6 million through the 2020 COG Innovation Fund program. Building on the success of these programs, the CEO-HI is recommending that a new allocation of $15 million in Measure H Strategy E7 funds be allocated to the COGs to facilitate a regional approach in preventing and combatting homelessness in Los Angeles County. The term of the new funding will be for 18- months: January 2022 through June 2023. It is anticipated that the Los County Board of Supervisors will approve the recommendation at the July 13, 2021 meeting.

The City of Hawthorne submitted a proposal to SBCCOG to obtain funding for Los Angeles Centers for Alcohol and Drug Abuse (L.A. CADA) project that would provide behavioral healthcare services. The SBCCOG awarded the City $348,000 for 18 months of its Innovation Grant Funds to be used on the City's LA CADA The Grant Funds will be divided into two tranches.

Tranche 1 will be for $116,031 for the first 6 months of this MOU. Tranche 2 will be for the remaining $231,969 for the last 12 months of this MOU. However, Tranche 2 will only be available once the SBCCOG and County of Los Angeles contract is extended and the Parties agree to the last 12 month deliverables as an addendum to this MOU.

Vontray Norris

During the 18-month project period from January 01, 2022 - June 30, 2023, Los Angeles Centers for Alcohol and Drug Abuse (L.A. CADA), a nonprofit agency with specific civic homeless expertise and experience, will build on Hawthorne’s existing success with homeless services. Staff recognized that, unlike other cities in the area, Hawthorne has hired a homeless Services Coordinators from Measure H and City budgets to focus on connecting the city’s homeless community with resources available to them. In addition, the City of Hawthorne created a service coordination program to help youth, families, adults and seniors who are experiencing homelessness or are at-risk of experiencing homelessness. L.A. CADA understands that PEH in Hawthorne have strong ties to the city and that Hawthorne has altered its homeless service program to increase the number of emergency housing vouchers to provide long-term housing solutions to the most vulnerable residents. L.A. CADA will ground their services in these significant successes, while adding another layer of services via behavioral healthcare resources.

L.A. CADA will provide comprehensive clinical assessment of each Hawthorne resident they serve, with a resulting service plan detailing action steps to achieve stable housing and other client goals and objectives. Using the evidence-based practice of intensive case management, homeless Navigators will work within a well-established multiservice network of community partners to link clients with local crisis shelter, permanent housing, education, employment, and volunteer opportunities (for those who cannot work), as well as diverse supportive services. L.A. CADA already works closely with L.A. County CES and their Homeless Management Information System (HMIS) in each SPA to ensure a comprehensive, coordinated approach to local homelessness.

The distinctive services offered by L.A. CAA will immediately address behavioral healthcare and housing in one engagement. The agency will provide experienced staff to deliver homeless services in Hawthorne from Monday-Friday, 8:00 am to 5:00pm (with additional weekend and oncall hours, as needed by the City). L.A. CADA navigators will coordinate entry into more than the 188 L.A. CADA crisis housing beds and 199 treatment beds for individuals with behavioral health disorders. They will work in collaboration with local homeless shelters to coordinate admission to mainstream homeless, domestic violence, and youth shelters for PEH without severe behavioral health issues. L.A. CADA will also provide any direct transportation to these shelters via an agency van and the accompanying outreach workers. Funding will be used to significantly decrease homelessness by housing at least 30 PEH in residential programs offered by L.A. CADA. The COG’s homelessness funding will concretely expand and enhance homeless services in the city and aid in the intervention and prevention strategies to combat overall homelessness.

FISCAL IMPACT:

None.

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

ATTACHMENT(S):

Memorandum of Understanding between the South Bay Cities Council of Governments and the City of Hawthorne.

AGENDA ITEM NO. 20.

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of 08/12/2025
Originating Department: City Attorney
City Manager: Department Head:

SUBJECT:

Claim for bodily injury by Luisa Magante.

RECOMMENDED MOTION:

Staff recommends that the City Council deny the claim by Luisa Magante.

DISCUSSION:

Claimant Luisa Magante alleges that she tripped and fell over an uneven sidewalk, thereby causing her physical injuries.

ECONOMIC DEVELOPMENT STRATEGIC PLAN:

Not applicable.

FISCAL IMPACT:

None.

NOTICING PROCEDURE:
72 hours posted notice pursaunt to the Ralph M. Brown Act.

AGENDA ITEM NO. 21.

CITY OF HAWTHORNE
City Council

AGENDA BILL
For the meeting of 08/12/2025
Originating Department: City Attorney
SUBJECT:

Metro C Line - (K. Manning)