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May 05, 2015The Honorable Board of SupervisorsCounty of Los Angeles383 Kenneth Hahn Hall of Administration500 West Temple StreetLos Angeles, California 90012Dear Supervisors:ADOPTEDBOARD OF SUPERVISORSCOUNTY OF LOS ANGELES19May 5, 2015PATRICK OGAWAACTING EXECUTIVE OFFICERRECOMMENDATION TO AWARD A CONTRACT TO THELOS ANGELES COUNTY PERSONAL ASSISTANCE SERVICES COUNCIL(ALL DISTRICTS -3 VOTES)SUBJECTThe Department of Public Social Services (DPSS) seeks approval of a new two-year contract, withan option to renew for one additional year, with the Los Angeles County Personal AssistanceServices Council (PASC). Pursuant to County Ordinance 3.45, PASC is the Public Authority for InHome Supportive Services (IHSS) in Los Angeles County. PASC was established to be theemployer-of-record for IHSS providers for the purposes of collective bargaining and providesadditional services, which assist IHSS recipients and providers. The current contract will expire onJune 30, 2015.IT IS RECOMMENDED THAT THE BOARD:1. Delegate authority to the Director of DPSS, or designee, to prepare and execute a contractsubstantially similar to the enclosed contract (Enclosure I) with PASC for the provisions related toIHSS provider wages as PASC is the employer-of-record, IHSS provider healthcare benefits, IHSSprovider healthcare benefits administration, PASC administrative costs, the provider registry, andnew provider requirements effective July 1, 2015 through June 30, 2017, at the two-year contractcost of 8,269,300 or 4,134,650 for Fiscal Year (FY) 2015-16 and 4,134,650 for FY 2016-17.2. Delegate authority to the Director of DPSS, or designee, to prepare and execute amendments tothe contract to add relevant updated terms and conditions and for increases or decreases of no morethan ten percent of the original contract amount. The approval of County Counsel as to form and theChief Executive Office (CEO) will be obtained prior to executing such amendments and the Director

The Honorable Board of Supervisors5/5/2015Page 2of DPSS or designee will notify the Board and CEO in writing within ten business days afterexecution.3. Delegate authority to the Director of DPSS, or designee, to prepare and execute an amendmentto extend the contract for one additional year from July 1, 2017 through June 30, 2018 at anestimated cost of 4,135,000. The approval of County Counsel as to form and the CEO will beobtained prior to executing such amendment and the Director of DPSS or designee will notify theBoard and CEO in writing within ten business days after execution.4. Delegate authority to the Director of DPSS, or designee, to terminate the contract in whole or inpart or amend the contract as a result of Senate Bill 1036 or related measures, and should theStatewide Authority assume responsibility as the employer-of-record of the IHSS providers for thepurpose of collective bargaining for wages and benefits.PURPOSE/JUSTIFICATION OF RECOMMENDED ACTIONThe Welfare and Institutions Code Section 12301.6 requires counties to establish an employer-ofrecord for IHSS providers, and provides counties the option to fulfill this requirement through theestablishment of a public authority. The public authority is a separate entity from the County.In October 1997, PASC was created pursuant to County Ordinance 3.45, to serve as the PublicAuthority in Los Angeles County. The County has contracted with PASC for 16 years beginning inSeptember 14, 1999. The contract has been extended through amendments, with Board-delegatedauthority. The current contract expires on June 30, 2015.Although the new contract is required for PASC to continue providing services to IHSS recipients andproviders, on November 2, 2012, all counties were notified that the Coordinated Care Initiative (CCI)was enacted as a part of the Budget Act of 2012, via Chapter 33, Statutes of 2012 (Senate Bill (SB)1008) and Chapter 45, Statutes of 2012 (SB 1036). Enactment of the three-year CCI demonstrationpilot project will transfer the collective bargaining authority from the County level/PASC to the Statelevel for eight Demonstration counties, including Los Angeles County. This transfer to the State willimpact the PASC contract since, as the employer-of-record, PASC is currently responsible forcollective bargaining. Once the Statewide Authority assumes responsibility for collective bargainingfor IHSS providers, the County Ordinance must be changed.The transfer of collective bargaining to the State will not occur until 200,000 beneficiaries areenrolled in the CCI and/or upon notification by the Director of Health Care Services that theenrollment of eligible Medi-Cal beneficiaries has been completed in Los Angeles County. Thisprocess for enrolling beneficiaries into CCI began April 1, 2014 and the transfer of collectivebargaining is scheduled to take effect on or after July 1, 2015. However, once the transfer occurs,PASC, based on the contract being executed, still has the responsibility of providing services, whichinclude, but are not limited to, registry services, consumer/provider training, administering the BackUp Attendant Program; determining eligibility and administering IHSS provider health benefits; andadministering New Provider Enrollment Requirements for IHSS Providers.Currently, the Statewide Authority is linked to the success of the CCI. If the Statewide Authority is notde-linked from the CCI and the State determines the CCI is not cost-effective and stops it, theStatewide Authority will cease to be the employer-of-record and the employer-of-record status willrevert to the County. Maintaining the PASC until the long-term future of the CCI is determined willensure that the County has a public authority in place, if the State terminates the CCI and the

The Honorable Board of Supervisors5/5/2015Page 3Statewide Authority.If the CCI is successful and the Statewide Authority is expanded to the remaining 50 counties, theDepartment can conduct an assessment to determine if the contract with the PASC should continueor if the services being provided by the PASC could be more effectively and efficiently provided bythe Department, another department, and/or through another contract/contractor. The County wouldbe best served continuing its contract with PASC at least until the CCI demonstration project comesto an end since the project is a three-year pilot.Consequently, a two-year contract with a one-year option to extend is necessary to allow the Countysufficient time and flexibility to adapt to any uncertainties during and after the State transition withoutentering into lengthy negotiations with PASC and placing the County in a vulnerable position.Further, the specialized language in the contract and recommended delegated authority will allow theCounty to terminate the contract, in whole or in part, at any time during the contract term and at theCounty¶s sole discretion.Implementation of Strategic Plan GoalsThe recommended action is consistent with the principles of the Countywide Strategic Plan Goal #1:Operational Effectiveness, to maximize the effectiveness of processes, structure, and operations tosupport timely delivery of customer-oriented and efficient public services.FISCAL IMPACT/FINANCINGThe total maximum cost of the PASC contract for the two-year contract term is 8,269,300, fundedwith federal and State revenues and the net County cost (NCC) portion referenced in the paragraphbelow. Funding for FY 2015-16 is included in the DPSS FY 2015-16 Proposed Budget. Funding forfuture years will be included in the Department¶s annual budget requests.Effective July 1, 2012, County financial participation in the IHSS program is covered by the IHSSCounty maintenance of effort (MOE). The NCC for the program which includes provider wages,provider health benefits, Public Authority administration and IHSS administration is covered with theMOE. There is no additional NCC impact after the MOE is met.FACTS AND PROVISIONS/LEGAL REQUIREMENTSCurrently, PASC is the employer-of-record for IHSS providers for the purposes of collectivebargaining for wages and benefits. PASC negotiates with the United Long Term Care Workers(ULTCW), Service Employees International Union (SEIU), Local 6434, on behalf of IHSS providers.There are approximately 15,000 IHSS providers listed on the registry maintained by PASC. Also,PASC provides the following services: maintains a registry to provide assistance to IHSS consumersin finding IHSS providers; provides access to training for providers and consumers; and maintains acollaborative relationship with DPSS to improve/enhance the IHSS Program. PASC also has aBack-Up Attendant Program that is designed to address the critical needs of IHSS consumers inurgent need of referral of a homecare provider to assist them on a short-term basis when theirregular provider is temporarily unavailable or their individualized ³Emergency Back-Up Plan fails.The contract will not result in unauthorized disclosure of confidential information and will be in fullcompliance with all applicable federal, State and County regulations. Further, the contractor, PASC,

The Honorable Board of Supervisors5/5/2015Page 4is in full compliance with applicable federal, State and County regulations. County Counsel hasapproved this Board letter and contract (Enclosure I) as to form.CONTRACTING PROCESSThis contract was procured in accordance with Title 45, Code of Federal Regulations, Part 74, andCalifornia Department of Social Services Regulation Section 23-650.1.14, which allows for noncompetitive contracting with local government agencies.IMPACT ON CURRENT SERVICES (OR PROJECTS)The recommended action will continue to support enrollment of eligible providers by PASC into thePASC-SEIU Homecare Workers Healthcare Plan.The contract will not infringe on the role of the County in relationship to its residents, and theCounty's ability to respond to emergencies will not be impaired. There is no change in risk exposureto the County.CONCLUSIONThe Executive Officer, Board of Supervisors, is requested to return one adopted stamped Boardletter to the Director of DPSS.Respectfully submitted,SHERYL L. SPILLERDirectorSLS:jvEnclosuresc:Interim Chief Executive OfficerCounty CounselExecutive Officer, Board of Supervisors

Enclosure IDEPARTMENT OFPUBLIC SOCIAL SERVICESCONTRACTBY AND BETWEENCOUNTY OF LOS ANGELESANDPERSONAL ASSISTANCE SERVICES COUNCILPrepared ByDepartment of Public Social ServicesContract Management Division12900 Crossroads Parkway SouthCity of Industry, CA 91746-3411July 1, 2015