DATE: September 22, 2026
TO: Board of Supervisors
SUBMITTED BY: Susan L. Holt, Director, Department of Behavioral Health
Sanja Bugay, Director, Department of Social Services
Kirk Haynes, Chief Probation Officer, Probation Department
SUBJECT: Amendment No. 2 to Master Agreement for Child Welfare Mental
Health Services
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute Amendment No. 2 to Master Agreement No. 25-415 for the provision of Child Welfare Mental Health Services, to add court-ordered mental health services as an allowable service under the Agreement and revise Exhibit D effective upon execution, with no change to the term of August 19, 2025 through June 30, 2030, and increasing the maximum by $42,000 to a total of $131,645,462.
REPORT
There is no additional Net County Cost associated with the recommended action. This recommended action will ensure that youth under the Probation Department’s (Probation) supervision receive timely access to court-ordered mental health services, including but not limited to bonding studies, court-ordered mental health assessments, psychological evaluations, and neuropsychological evaluations, without delay to support appropriate treatment planning and compliance with judicial requirements. It will also allow the County to maintain continuity of care and fiscal oversight by clearly authorizing funding services that are not otherwise reimbursable through Medi-Cal. The revision of Exhibit D will increase the maximum compensation and update invoicing requirements to align with Department of Behavioral Health (DBH) standards. This item is countywide.
ALTERNATIVE ACTION(S):
Should your Board not approve the recommended action, funding for court-ordered mental health services will remain insufficient, which may delay required assessments and impact timely service delivery for youth. Additionally, the County may be unable to meet court mandates or may need to identify alternative service providers, potentially disrupting continuity of care and program operations.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The maximum cost of the Agreement ($131,645,462) will be fully offset with Medi-Cal Federal Financial Participation, Mental Health Realignment, Child Welfare Realignment, and Youthful Offender Block Grant funding. The increase to the maximum amount will be distributed evenly over the remaining four years of the agreement, following the same proportions as the original agreement outlay for Probation Court-Related Services. Sufficient appropriations and estimated revenues are included in the Behavioral Health Department’s Org 5630 FY 2026-27 Adopted Budget and Probation’s Org 3430 FY 2026-27 Adopted Budget and will be included in all subsequent Recommended Budgets for the duration of the term of the Agreement.
DISCUSSION:
On August 19, 2025, your Board approved Master Agreement No. A-25-415 for the provision of specialty mental health services and court-specific services for youth involved in the Child Welfare Services and/or Probation systems, and their families.
On December 9, 2025, your Board approved Amendment No. 1 (No. 25-619) to the Master Agreement to extend the ramp-up/start-up period from August 19, 2025, through January 19, 2026, for contractor, Victor Community Support Services, Inc., with no changes to the term or maximum compensation.
On February 27, 2026, Probation and DBH identified a need to increase Probation’s annual maximum compensation portion of the Master Agreement to address court-ordered mental health services to Probation youth that are not reimbursable through Medi-Cal. Probation’s current annual maximum compensation of $5,000 is insufficient to cover the costs of court-ordered mental health services, such as psychological evaluations, that are required to support case planning, dispositional decisions, and ongoing court oversight for youth under Probation supervision. The recommended action will clarify the scope of reimbursable services by increasing funding support for court-ordered mental health services provided to Probation youth, and ensures that the Agreement aligns with current operational and judicial requirements. By expressly authorizing these evaluations within the Agreement, the County will maintain continuity in service delivery, strengthen fiscal oversight, and ensure that expenditures remain consistent with the approved scope of work.
On March 4, 2026, DBH completed development of a revised Financial Terms & Conditions Exhibit template to better delineate expectations for contractor compliance with invoicing requirements and ensure all contractors are held to a consistent standard. Exhibit D-I includes both the proposed increase to the maximum compensation and the implementation of clearer, more defined deadlines and requirements for invoicing and recoupment procedures. The revision of the exhibit is intended across all DBH agreements to maintain procedural consistency.
DBH has notified and received approval from the Human Resources Department of execution of the recommended amendment to comply with Assembly Bill (AB) 339.
Approval of the recommended action will support timely access to required assessments, reduce delays in court proceedings, and promote informed decision-making regarding appropriate services and placement for youth. The increase to the maximum compensation is limited to Probation Court-Related Services and does not alter the overall structure of the Agreement beyond the addition of the specified service and corresponding funding adjustment.
OTHER REVIEWING AGENCIES:
The Behavioral Health Board will be notified of the recommended Amendment during the September 2026 meeting.
REFERENCE MATERIAL:
BAI #52, December 9, 2025
BAI #40, August 19, 2025
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Amendment No. 2 to Master Agreement
CAO ANALYST:
Ronald Alexander Jr.