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SR 09-13-2022 5F City Council Report City Council Meeting: September 13, 2022 Agenda Item: 5.F 1 of 6 To: Mayor and City Council From: Andy Agle, Director, Community Services Department, Housing and Human Services Subject: Award Bid #314 to Initium Health for Development of a Comprehensive Behavioral Health Strategy Recommended Action Staff recommends that the City Council: 1. Award Bid #314 to Initium Health for the development of a comprehensive behavioral health strategy; and 2. Authorize the City Manager to negotiate and execute an agreement with Initium Health for two years for a total amount not to exceed $250,000, with future-year funding contingent on Council budget approval. Summary Providing access to behavioral healthcare is a core component in the City’s strategies and Council priorities of both addressing homelessness and maintaining clean and safe public spaces. While behavioral health is one of the Four Pillars of the Council-adopted strategy to address homelessness (Attachment A), both housed and unhoused Santa Monicans alike suffer from significant rates of behavioral health concerns. In response to these unmet needs, City Council set aside $250,000 in American Rescue Plan Act funding (Attachment B) to advance this priority. The City sought an expert team to develop a comprehensive behavioral health strategy that would identify system gaps, community priorities for the types of services needed, and recommendations for short- and long-term steps to meet those needs. The strategy would be built upon a robust community engagement process. A key outcome of the process would be to gather input on possible locations for, and the types of services 5.F Packet Pg. 262 2 of 6 and populations that could be served by a 24/7 behavioral health model to fill a critical gap in the continuum of behavioral healthcare services locally, providing a much- needed safe landing between crisis response and long-term treatment within Santa Monica borders. Due to resourcing and licensing constraints, the needs of the community may not be met with a single location or in a single project. Rather, the strategy may include several phases to develop a campus or cluster of facilities that can operate in coordination, serve different populations, and provide different levels of care. The expert team will assess up to five City-selected sites and develop operating plans and cost estimates for each. The City released the behavioral health feasibility study request for proposals (RFP) on March 15, 2022 and received two proposals by the May 24th closing date. After review by a team of community experts and interdepartmental staff, staff recommends that the City enter into a contract with Initium Health, a public-benefit corporation, for an amount not to exceed $250,000 for a two-year term. Discussion Because behavioral health is central to our wellbeing and has a direct impact on an individual’s ability to work, learn, and care for themselves and others, the City has developed and expanded collaborative partnerships to address the complex behavioral health needs of its residents. Such programs deliver integrated services right where people are – in their homes, public spaces, jails, hospitals, schools, and other institutions. Through the RFP, the City sought an expert team to guide a community engagement process to inform a comprehensive behavioral health strategy, including assessing the feasibility of a 24/7 model. Community input would shape the operating priorities of a 24/7 model including the types of services provided, the populations to be served, and an assessment of the pros and cons of locally based/local-serving resources versus partnering with other local jurisdictions on a larger, regional facility. 5.F Packet Pg. 263 3 of 6 Contingent upon Council approval, Initium would begin an estimated twelve-month scope of work, beginning with a community engagement process that is developed in partnership with an interdepartmental project committee. Community engagement would take 4-6 months to conduct and synthesize the collected input into priorities and preliminary recommendations. As part of the engagement process, Initium would seek feedback from the community on available sites. The following six months would be spent researching and analyzing local and regional data, in addition to community input, to draft a local behavioral health strategy, including materials and documents that could be used to seek funding for portions of the plan. Concurrently, Initium would be conducting a site analysis for up to five City-selected locations for the feasibility of a 24/7 strategy. Throughout the process, Initium and staff will keep Council informed, share findings from the community engagement process, return to Council for approval of the behavioral health strategy, and present final recommendations for Council consideration. The City released the behavioral health strategy RFP on March 15, 2022, and the RFP was open through May 24, 2022. The RFP received 552 views and 30 vendors downloaded the documents. Four applications were started, and two were completed and submitted by the closing date. Vendor Selection: Bidder Recommendation Best Qualified Firm Initium Health Evaluation Criteria Qualifications/Experience/Technical Competence/Key Personnel; Previous Community Engagement Experience; Stability/References; Ability to Meet Project Work Plan/Timeliness; Cost of Services/Cost Control; Value Add/Breadth of Service. Municipal Code SMMC 2.24.190 RFPs Received Initium Health Deloitte Consulting LLP RFP Data Posted On Posted On Advertised In (City Charter & SMMC) Vendors Downloaded Date Publicly Opened 5.F Packet Pg. 264 4 of 6 3/15/2022 City's Online Bidding Site Santa Monica Daily Press 30 5/24/22 Best Bidder Justification Based on the evaluation criteria, and criteria in SMMC 2.24.190, staff recommends Initium as the best qualified firm to conduct community engagement, develop a comprehensive local behavioral health strategy, and assess the feasibility of a 24/7 behavioral health center to serve the local community including estimates on capital costs, operating costs, and potential sources of funding. Initium proposes an exceptionally diverse team of experts in various elements of healthcare and behavioral healthcare that will be necessary and relevant to this scope of work. Initium recently successfully completed a very similar multi-jurisdictional scope of work in New Mexico and consulted in the design of a $20m recovery housing campus in Ohio. Initium’s cost proposal is also highly competitive and cost-effective. A team of three community experts and three interdepartmental staff reviewed both eligible proposals. As a result of the review process, and pursuant to SMMC § 2.24.190, staff recommends the selection of Initium Health, a Colorado-based public benefit corporation, to conduct community engagement, develop a comprehensive behavioral health strategy that aligns with community-identified priorities, and assess the feasibility of a 24/7 behavioral health center to serve the local community including site assessment of up to five specific locations. The assessments would include estimates of capital costs, operating costs, and potential sources of funding. Staff recommends Initium Health as the most qualified bidder with the most cost-effective application to complete the proposed scope of work. Initium recently completed a very similar scope of work for the City of Clovis, New Mexico in a regional collaboration that included a community engagement process that encompassed four counties and three cities, a systems gap analysis, and comparative analysis of system performance using local and regional data to develop a set of recommendations that included a feasibility assessment for a 96-bed facility. 5.F Packet Pg. 265 5 of 6 Initium also worked with the City of Clovis to secure a grant to initiate the project. In another project, Initium was brought in by Google affiliate Verily to inform the design of their flagship recovery housing campus in Ohio, named One Fifteen after the number of people who died of overdoses every day across the country in 2016. Using international data and best practices to use architecture specifically to support recovery, Initium created layouts that are patient-focused, not staff-focused, that transformed institutional settings into recovery settings, while balancing safety and security. Past Council Actions Meeting Date Description 3/26/2019 (Attachment A) City Council adopts Four Pillar strategy to address homelessness 4/13/2021 (Attachment B) City Council approved the allocation of $250,000 in one-time funds to support efforts to pursue non-congregate shelter and behavioral health priorities as part of the City’s American Rescue Plan Act (ARPA) spending plan. Financial Impacts and Budget Actions Staff seeks authority to approve funding from the “ARPA-Homelessness Feasibility” account to award a contractual services agreement with Initium Health to conduct community engagement, develop a comprehensive behavioral health strategy, and conduct a feasibility assessment for a 24/7 behavioral health center to serve local needs. Contract Request Request Amount FY 2022-23 Budget Department/CIP Account # Total Contract Amount $250,000 01400009.552010.99067 $250,000 5.F Packet Pg. 266 6 of 6 Prepared By: Margaret Willis, Administrator Approved Forwarded to Council Attachments: A. March 26, 2019 Staff Report (web link) B. April 13, 2021 Staff Report (web link) C. OAKS FORM_Initium Health D. Written Comments 5.F Packet Pg. 267 CITY OF SANTA MONICA OAKS INITIATIVE NOTICE NOTICE TO APPLICANTS, BIDDERS, PROPOSERS AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS, OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA Santa Monica’s voters adopted a City Charter amendment commonly known as the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s text from the City Clerk. This information is required by City Charter Article XXII—Taxpayer Protection. It prohibits a public official from receiving, and a person or entity from conferring, specified personal benefits or campaign advantages from a person or entity after the official votes, or otherwise takes official action, to award a “public benefit” to that person or entity. The prohibition applies within and outside of the geographical boundaries of Santa Monica. All persons or entities applying or receiving public benefits from the City of Santa Monica shall provide the names of trustees, directors, partners, and officers, and names of persons with more than a 10% equity, participation or revenue interest. An exception exists for persons serving in those capacities as volunteers, without compensation, for organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not apply if the organization is a political committee or controls political committees. Examples of a “public benefit” include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000 over a 12-month period. In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This information must be updated and supplied every 12 months. 5.F.c Packet Pg. 268 Attachment: OAKS FORM_Initium Health (5300 : Behavioral Health Strategy Development) CITY OF SANTA MONICA OAKS INITIATIVE DISCLOSURE FORM In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Public benefits include: 1.Personal services contracts in excess of $25,000 over any 12-month period; 2.Sale of material, equipment or supplies to the City in excess of $25,000 over a 12- month period; 3.Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period; 4.Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period; 5.Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000; 6.Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12- month period; or 7.Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12- month period. Name(s) of persons or entities receiving public benefit: Name(s) of trustees, directors, partners, and officers: Name(s) of persons with more than a 10% equity, participation, or revenue interest: Prepared by: ____________________________Title: __________________________ Signature: ______________________________________ Date: ________________ Email: ____________________________________ Phone: ____________________ FOR CITY USE ONLY: Bid/PO/Contract # ____________________________ Permit # ___________________________ Initium Health James Corbett Principal 7/20/22 james@initiumhealth.org 303-928-8511x702 James Corbett, Elise Plakke Emy Monroe, Joy Choo James Corbett, Elise Plakke 5.F.c Packet Pg. 269 Attachment: OAKS FORM_Initium Health (5300 : Behavioral Health Strategy Development) 1 Vernice Hankins From:Ellen Hannan <elhasm@gmail.com> Sent:Saturday, September 10, 2022 7:59 PM To:David White; Council Mailbox; councilmtgitems Subject:Item F for September 13,2022 City Council Agenda EXTERNAL  Dear City Staff and City Council:  September 10,2022  You have already squander the $1 Million Dollars Bloomberg Well Being Funds, the opportunity to use the vast fund  raising ability of Providence / St Johns' Medical Center and the state resources of UCLA Medical Center Center as sources  for the needs of  the RESIDENTS of Santa Monica.   Santa Monica needs a 50 bed MENTAL HEALTH FACILITY.    Please spend some time researching the difference between Behavioral Health and Mental Health Care.  Since 2011  I have attended the meetings between Santa Monica Mid City Neighbors  and St Johns' and later Providence  St Johns'.  At every yearly meeting the urgent need for mental health care in our community was discussed.  Their staff  acknowledged this and reported to us their Emergency Room needs and lack of follow up care for their patients.  Still in  their planning for a new massive building site  the concept of Mental Health Care was ignored by your staff, Planning  Commission and you the City Council.  Now a 2 year plan to review the failed programs for the homeless is somehow the solution.  Tell me how this provides  help for the people who live  and pay taxes here and also suffer from mental health issues of depression, Bipolar  Disorders, Postpartum distress, drug addiction and many other psychoses. Why are we again being ignored? Most of our  residents have health insurance which covers a 90 day stay for evaluation and treatment of mental health services.  But  there is NO facility in our area for even an evaluation and short term stay.  Our families are in grave distress.  Why is it that the Cities of Palm Desert and Desert Hot Springs have new inpatient short term centers?  Maybe you  should take a field trip?  We do not need a 2 year study of homelessness.  We have failed.  The short term band aid approach the City has used  cannot help.  It is a very complicated and long term problem which one City in this county cannot solve.    I urge you to think about your priority on Item F.  I urge you to research the planning of Palm Springs and Desert Hot  Springs.  Ellen Hannan  1218 9th St #6  Santa Monica CA  90401  Item 5.F 09/13/22 1 of 1 Item 5.F 09/13/22 5.F.d Packet Pg. 270 Attachment: Written Comments (5300 : Behavioral Health Strategy Development)