HomeMy WebLinkAboutStaff Report 2310-21623.Approval of Contract Amendment Number 1 to Contract C23187506 with Momentum for
Health to Extend Term by Eight (8) Months at No Additional Cost to the City, Revise the
Not-to-Exceed Amount Down by $68,294 to $1,931,706 and Compensation Language,
Provide Quarterly Invoicing, and Revise the Schedule of Rates; CEQA Status – Not a
Project.
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: City Manager
Meeting Date: December 11, 2023
Report #:2310-2162
TITLE
Approval of Contract Amendment Number 1 to Contract C23187506 with Momentum for
Health to Extend Term by Eight (8) Months at No Additional Cost to the City, Revise the Not-to-
Exceed Amount Down by $68,294 to $1,931,706 and Compensation Language, Provide
Quarterly Invoicing, and Revise the Schedule of Rates; CEQA Status – Not a Project.
RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager or their
designee to execute Amendment Number 1 to Contract C23187506 with Momentum for Health
to extend term by eight (8) months through September 30, 2024, revise the not to exceed
amount by lowering $1,931,706 and compensation language to match grant terminology,
provide for quarterly invoicing and revise the schedule of rates (Attachment A).
BACKGROUND
In the wake of national conversation on policing, the City launched its Race and Equity
framework which included many action items related to citywide diversity, equity, and inclusion
as well as specific changes within the Police Department, as summarized in the April 3, 20231
Council report. While setting up its Psychiatric Emergency Response Team (PERT) program in
2020, the City Council expressed a desire to see additional investments in alternative response
programs to divert lower acuity calls from law enforcement to mental health professionals or
those with lived experience.2 A program in Oregon, known as CAHOOTS (Crisis Assistance
1 April 3, 2023, Council Consent Report.
https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=1852&meetingTemplateType=2
2 Council Minutes October 26, 2020, https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-
reports/agendas-minutes/city-council-agendas-minutes/2020/october-26-2020-city-council-meeting-sense-
minutes.pdf; Council Action Minutes November 16, 2020,
https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/agendas-minutes/city-council-
agendas-minutes/2020/november-16-2020-city-council-meeting-action-minutes.pdf
Helping Out on the Streets)3, was generally seen as the best practice model for this work. Staff
researched options related to alternative response programs for Palo Alto.
On July 16, 2021, Representative Anna Eshoo announced she was successful in securing $5
million for local projects in Palo Alto, including $2 million for the mental health alternative
response pilot program.4 The City then applied to the related Notice of Funding Opportunity
from the Substance Abuse and Mental Health Services Administration (SAMHSA) when it
became available and received notice of award, totaling $2 million, in September 2022.
In November 2022, Santa Clara County launched that program, an alternative response
program called TRUST (Trusted Response Urgent Response Team), serving three locations: San
José, Gilroy, and North County. The North County location is operated by Momentum for
Health and is based in Palo Alto. The County program is authorized for up to five years5 and
consists of a call center team and three location-based, onsite field teams.
On April 3, 2023, City Council approved the acceptance of federal grant funding from SAMHSA
to augment the North County TRUST with a pilot program and a contract with Momentum for
Health to administer the program.6 The pilot program provides outreach and engages with the
community to inform and educate about the new alternative response services, provides
needed ongoing support to individuals in crisis, and trains individuals in mental health first aid
to make referrals to behavioral health services and alternative response program/community
mobile response. Ongoing support activities will include necessary follow-up after initial
interactions, case management, and assistance in system navigation.
ANALYSIS
The grant agreement originally required the funding to be spent within 12 months of its award.
On October 3, 2023, SAMHSA granted the City of Palo Alto a 12-month extension of the
deadline to expend the federal grant monies funding the pilot augmenting TRUST. The original
contract with Momentum for Health is set to expire on January 31, 2024. Staff recommends
extending the contract with Momentum for Health to mirror SAMHSA’s new deadline of
September 2024. This will allow the pilot program time to be more fully implemented—e.g.,
3 https://www.eugene-or.gov/4508/CAHOOTS
4 July 16, 2021, U.S. Rep. Eshoo, press release. https://eshoo.house.gov/media/press-releases/rep-eshoo-secures-
funding-local-projects-expand-education-mitigate-traffic-
and?utm_source=Coronavirus+Updates&utm_campaign=bf8b72539a-
EMAIL_CAMPAIGN_2021_07_22_11_39&utm_medium=email&utm_term=0_d8eda03e5f-bf8b72539a- ; August 8,
2021, Council Info Report. https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-
reports/reports/city-manager-reports-cmrs/year-archive/2021/id-13474.pdf
5 The contract duration is four years but is authorized for one annual renewal.
6 April 3, 2023, Council Consent Report.
https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=1852&meetingTemplateType=2
increased time and opportunities for outreach encounters and education, case management,
and mental health first aid trainings.
Additionally, this amendment accomplishes the following:
1. Adjusts the invoicing schedule.
Rather than following a monthly invoicing schedule, invoicing will occur quarterly. The
complexity of navigating federal reimbursement and the multiple processes involved are time
consuming. It is more time efficient to engage in this process quarterly.
2. Revises the compensation language.
The language in Exhibit C, Compensation does not mirror the language in the grant materials
(i.e., the SAMHSA Detailed Budget). Staff has added language used with SAMHSA to increase
clarity and reduce confusion.
3. Increases the rates for one position and adds one new position on the schedule of rates.
With the advent of a new fiscal year and to help address hiring challenges, the rate for
promotores is being increased from $26.72 to $32.00.7 The original eight promotores proposed
was ambitious and is being adjusted to six, particularly given the nationwide hiring challenges
for mental health personnel. Staff believes these changes can be absorbed while still ensuring
this work is within budget and meets the earmark goals and objectives. Additionally, when a
program manager left Momentum, a program director stepped in and took up that work to
ensure no gaps in service delivery. To account for this type of situation, the program director
position has also been added to the schedule of rates.
4. Corrects an error relating to the contract amount.
The Momentum for Health contract amount of $1,931,706, as listed in the April 2023 staff
report, is correct. The remainder of the $2,000,000 in earmark money, $68,294, is allocated for
evaluation of the services Momentum is providing. The Momentum contract that was approved
by Council in April 2023 incorrectly indicated the full earmark amount of $2,000,000. This
amendment corrects that error and revises the Momentum contract to match the grant budget
at a not-to-exceed amount of $1,931,706.
FISCAL/RESOURCE IMPACT
There is no additional fiscal impact to the City with the adoption of this Amendment Number 1
of the contract with Momentum Health. The contract is fully funded through existing federal
earmark monies. Other resource impacts include percent of an existing staff person’s effort to
manage compliance with SAMHSA guidelines and reporting, including successful
implementation of the project’s goals and objectives. This effort is assigned to an Assistant to
7 Per SAMHSA, any changes less than 25 percent of the authorized funded amount do not require prior approval.
the City Manager and represents approximately 0.10 full time equivalent (FTE) level of effort.
This does not change with this contract amendment.
STAKEHOLDER ENGAGEMENT
City staff continues to meet with Los Altos, Mountain View and County representatives, and
provides regular updates to Los Altos and Mountain View representatives on the progress of
the pilot.
ENVIRONMENTAL REVIEW
Council approval of the amendment to the contract does not constitute a project under the
California Environmental Protection Act (CEQA).
ATTACHMENTS
Attachment A: Amendment No. 1 to Contract C23187506
APPROVED BY:
Ed Shikada, City Manager
Vers.: Aug. 5, 2019
Page 1 of 5
AMENDMENT NO. 1 TO CONTRACT NO. C23187506
BETWEEN THE CITY OF PALO ALTO AND
MOMENTUM FOR HEALTH
This Amendment No. 1 (this “Amendment”) to Contract No. C23187506 (the “Contract”
as defined below) is entered into as of December 11, 2023, by and between the CITY OF PALO
ALTO, a California chartered municipal corporation (“CITY”), and MOMENTUM FOR HEALTH, a
California non-profit, located at 1922 The Alameda, San José, CA 95126. (“CONSULTANT”). CITY
and CONSULTANT are referred to collectively as the “Parties” in this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties to
provide outreach and engage with the community to inform and educate residents about new
alternative response services (Community Mobile Response Call Center and Onsite Field Teams)
and provide case management to clients of those services in the Cities of Palo Alto, Mountain
View, and Los Altos, the “Project”, as detailed therein.
B. The Parties now wish to amend the Contract in order to extend the term for eight
months through September 30, 2024, at no additional cost to the City, to provide for quarterly
invoicing, and to lower the not-to-exceed amount to $1,931,706 to comport with grant funding,
as detailed herein.
C. The Parties now wish to amend the Contract in order to improve detail and clarity
in Exhibit C and increase the schedule of rates as detailed in Exhibit C-1.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions
of this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C23187506
between CONSULTANT and CITY, dated April 3, 2023.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 2. “TERM” of the Contract is hereby amended to read as follows:
“The term of this Agreement shall be from the date of its full execution through September 30,
2024, unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.”
SECTION 3. Section 4. “NOT TO EXCEED COMPENSATION” of the contract is hereby
DocuSign Envelope ID: 92BC4C1A-6302-4741-86F4-155DBCAC9371
Vers.: Aug. 5, 2019
Page 2 of 5
amended to read as follows:
“The compensation to be paid to CONSULTANT for performance of the Services shall be based
on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any
reimbursable expenses specified therein, and the maximum total compensation shall not exceed
One Million, Nine Hundred Thirty-One Thousand, Seven Hundred and Six Dollars ($1,931,706).
The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF
RATES.” Any work performed or expenses incurred for which payment would result in a total
exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.”
SECTION 4. Section 5. “INVOICES” of the Contract is hereby amended to read as follows:
“In order to request payment, CONSULTANT shall submit quarterly invoices to the CITY describing
the Services performed and the applicable charges (including, if applicable, an identification of
personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses),
based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1.
If applicable, the invoice shall also describe the percentage of completion of each task. The
information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall
send all invoices to CITY’s Project Manager at the address specified in Section 13 (Project
Management) below. CITY will generally process and pay invoices within thirty (30) days of
receipt of an acceptable invoice.”
SECTION 5. Legal Effect. Except as modified by this Amendment, all other provisions of
the Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 6. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
DocuSign Envelope ID: 92BC4C1A-6302-4741-86F4-155DBCAC9371
Vers.: Aug. 5, 2019
Page 3 of 5
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives
executed this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
MOMENTUM FOR HEALTH
Officer 1
By:
Name:
Title:
Officer 2
By:
Name:
Title:
Attachments: EXHIBIT C, COMPENSATION, AMENDMENT NO.1 (AMENDED, REPLACES PREVIOUS)
EXHIBIT C-1 SCHEDULE OF RATES, AMENDMENT NO.1 (AMENDED, REPLACES PREVIOUS)
DocuSign Envelope ID: 92BC4C1A-6302-4741-86F4-155DBCAC9371
President and CEO
David K Mineta
Theresa A Matacia
CFO
Vers.: Aug. 5, 2019
Page 4 of 5
EXHIBIT C
COMPENSATION, AMENDMENT NO.1
(AMENDED, REPLACES PREVIOUS)
CITY agrees to compensate CONSULTANT for the Services performed in accordance with the
terms and conditions of this Agreement, including Services, any specified reimbursable
expenses, and Additional Services (if any, per Section 4 of the Agreement), based on the hourly
rate schedule attached as Exhibit C-1.
The compensation to be paid to CONSULTANT under this Agreement for all Services, any
specified reimbursable expenses, and Additional Services (if any, per Section 4), shall not exceed
the amount(s) stated in Section 4 of this Agreement. CONSULTANT agrees to complete all
Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4),
within this/these amount(s). Any work performed or expenses incurred for which payment would
result in a total exceeding the maximum amount of compensation set forth in this Agreement
shall be at no cost to the CITY.
REIMBURSABLE EXPENSES
Reimbursable expenses, if any are specified as reimbursable under this section, will be
reimbursed at actual cost. Where there is a question as to reimbursable expenses not otherwise
addressed within this contract, the SAMHSA guidelines and regulations will govern.
All reimbursable expenses shall be consistent with SAMHSA guidelines, the City’s grant from
SAMHSA Application/Award Number H79FG000738 and accompanying SAMHSA Detailed
Budget and Narrative Justification.
In accordance with the SAMHSA award listed above, the expenses (by type, e.g. travel) for
which CONSULTANT will be reimbursed are:
• Contractual travel costs (local travel/mileage),
• Contractual supplies costs (laptops, monitors, docking stations, mice and keyboards,
cellphones, software licenses for Zoom and 8x8, copier rental and training materials),
• Contractual other costs (office space rental, mental health first aid [MHFA] certification
training, contract MHFA instructors), and
• Contractual indirect charges (costs incurred for common or joint objectives which cannot
be readily identified with an individual project or program but are necessary for the
operations of the organization) calculated at a rate of 15 percent.
All requests for reimbursement of expenses, if any are specified as reimbursable under this
section, shall be accompanied by appropriate backup documentation and information.
DocuSign Envelope ID: 92BC4C1A-6302-4741-86F4-155DBCAC9371
Vers.: Aug. 5, 2019
Page 5 of 5
EXHIBIT C-1
SCHEDULE OF RATES,AMENDMENT NO.1
(AMENDED, REPLACES PREVIOUS)
CONSULTANT’s schedule of rates is as follows:
Position Rate Effective
April 3, 2023
Rate
Effective
June 12, 2023
Rate
Effective
October 30,
2023
Fringe
Benefits Rate
Promotore/as $26.72 $32.00 $33.21
25%
Mental health first aid
instructor
$33.55 $33.55 $33.55
Case manager $33.65 $33.65 $33.65
Program coordinator $46.80 $46.80 $46.80
Program manager $36.78 $36.78 $36.78
Program director $58.20 $58.20 $58.20
In addition to the above rates, the CONSULTANT shall also be compensated for fringe benefits
(i.e., medical, health, dental, and other) at a rate of 25 percent and, when applicable, bilingual
pay differential up to $125 per pay period.
DocuSign Envelope ID: 92BC4C1A-6302-4741-86F4-155DBCAC9371