DATE: June 20, 2023
TO: Board of Supervisors
SUBMITTED BY: Susan Holt, Director, Department of Behavioral Health
SUBJECT: Amendment I to Master Agreement for Specialized Supplemental Board and Care Home Services
RECOMMENDED ACTION(S):
TITLE
1. Make a finding that it is in the best interest of the County to waive the competitive bidding process consistent with Administrative Policy No. 34 for unusual or extraordinary circumstances given the non-competitive nature of the Master Agreement for the solicitation with licensed residential care facilities for; and
2. Approve and authorize the Chairman to execute Amendment I to Master Agreement No. 22-230, to add Goldridge Home, LLC for Supplemental Board and Care Home services, add new services language, and adjust rates with no change to the term of July 1, 2022 to June 30, 2027, or compensation maximum of $54,000,000.
REPORT
Approval of the recommended actions will allow the Department of Behavioral Health to expand the network of care for severely and persistently mentally ill conserved adult persons served by adding Goldridge Home, LLC to the Master Agreement. Approval will also update insurance, data security, and indemnity requirements required by County Risk Management and allows for increased rates that are requested annually from contracted facilities. This item is countywide.
ALTERNATIVE ACTION(S):
Should your Board not approve of the recommend actions, the Department would not be able to expand its network of providers to meet the expanding need of placement for conserved persons. The Department would not be able to increase facility rates to keep up with cost-of-living increases and inflation. The Department will remain out of compliance with contract language required by County Risk Management.
SUSPENSION OF COMPETITION/SOLE SOURCE CONTRACT:
The Department’s request to waive the competitive bidding process is consistent with Administrative Policy No. 34 due to the non-competitive nature of the Master Agreement. All qualified, licensed and interested vendors may be added to the Master Agreement, subject to Board approval, to meet the department’s placement needs as assessed by clinical staff and in accordance with all terms and conditions specified in the contract (including all credentialing and compliance requirements) will be able to participate as a contracted provider. The Internal Services Department - Purchasing concurs with the Department’s request to waive the competitive bidding process.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. The maximum compensation in FY 2023-24 is $10,800,000. The maximum compensation for the term is $54,000,000. The recommended agreement is funded with Mental Health Realignment and Community Mental Health Block Grant. Actual costs will be determined by actual services provided. Sufficient appropriations and estimated revenues are included in the Department’s Org 5630 FY 2022-23 Adopted Budget and will be included in future budget requests for the duration of the term.
DISCUSSION:
The Department, pursuant to Welfare and Institutions Code, section 5801 and the California Code of Regulations, Title 22, provides placements for conserved severely and persistently mentally ill adult persons served in secured certified/licensed facilities with the appropriate level of care and services. On June 7, 2022, the Board approved Master Agreement No. 22-230 for Specialized Supplemental Board and Care Home Services.
The Department has created an onboarding process to review facilities that meet the needs of the Department and are licensed by Community Care Licensing (CCL). The Department is continually looking for facilities to add to this Master Agreement due to the increased number of persons requiring this level of care. Approval of the recommended actions will add a new service location for Marian Homes, Inc. and add a new facility, Goldridge Home, LLC, to the master agreement, allowing persons served to be placed at an appropriate level of care locally instead of placing out-of-county in higher levels of care.
Annually, contracted facilities on this Master Agreement are allowed to propose adjusted rates. These rates are reviewed and approved by the DBH Director up to a 5% increase. Stated reasons from facilities for rate increase are increased cost of living, salary and benefit increases to remain competitive, and inflation.
This amendment will update insurance, data security, and indemnity requirements to match the new service agreement language. Compensation and invoicing language have also been revised in this amendment to align with current Department practices.
Previously, the Director was authorized to add and remove vendors per the original master agreement and agenda item; however, County Counsel has recently determined that adding vendors must go before the Board for approval. These vendors are memorialized in the current Amendment I.
OTHER REVIEWING AGENCIES:
The Fresno County Behavioral Health Board was informed of the recommended amendment at their May 2023 meeting.
REFERENCE MATERIAL:
BAI #48, June 7, 2022
ATTACHMENTS INCLUDED AND/OR ON FILE:
Suspension of Competition
On file with Clerk - Amendment I to Master Agreement
CAO ANALYST:
Ronald Alexander