DATE: August 20, 2024
TO: Board of Supervisors
SUBMITTED BY: Susan Holt, Director, Department of Behavioral Health
SUBJECT: Amendment III to Master Agreement for Specialized Residential Mental Health Services
RECOMMENDED ACTION(S):
TITLE
1. Under Administrative Policy No. 34 for competitive bids or requests for proposals (AP 34), determine that an exception to the competitive bidding requirement under AP 34 is satisfied and a suspension of competition is warranted due to unusual or extraordinary circumstances, and that the best interests of the County would be served by entering into a Master Agreement as the contractors are the only vendors eligible to provide specialized residential mental health services; and,
2. Approve and authorize the Chairman to execute Amendment III to Master Agreement to add Central Star Behavioral Health, Inc., with no change to the term of July 1, 2023 to June 30, 2025, or compensation maximum of $13,500,000.
REPORT
Approval of the recommended actions will allow the Department of Behavioral Health to add Central Star Behavioral Health, Inc., a youth psychiatric health facility, to the Specialized Residential Mental Health Services Master Agreement. This item is countywide.
ALTERNATIVE ACTION(S):
Should the Board not approve of the recommended actions, the Department would not be able to appropriately place youth persons served, particularly those of ages 5-11, who require placement at a youth psychiatric health facility.
SUSPENSION OF COMPETITION/SOLE SOURCE CONTRACT:
It is requested that the County find under AP No. 34 that an exception to the competitive bidding requirement is satisfied, and a suspension of competition is warranted due to unusual or extraordinary circumstances, due to the non-competitive nature of the Master Agreement. All qualified, licensed and interested vendors, such as Central Star Behavioral Health, Inc. 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 assessment that this satisfies the exception to the competitive bidding process required by AP 34.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. The maximum compensation in FY 2024-25 is $7,000,000. The maximum compensation for the term is $13,500,000. The agreement is funded with Mental Health Realignment. Sufficient appropriations and estimated revenues are included in the Department’s Org 5630 FY 2024-25 Recommended Budget and will be included in future budget requests. Actual costs will be determined by actual services provided.
DISCUSSION:
On June 20, 2023, your Board approved Master Agreement No. A-23-283 with licensed and credentialed facilities to provide specialized residential mental health services for County persons served, as mandated by the WIC and CCR Title 22.
On August 22, 2023, your Board retroactively approved Amendment I No. A-23-415 to the Master Agreement to revise Exhibit B-5 for a provider whose Cal AIM determined rates were modified by their host County.
On March 5, 2024, your Board approved Amendment II No. A-24-100 to the Master Agreement to add an out-of-county eating disorder provider.
Currently, Star View Behavioral Health, Inc.is contracted with the County of Fresno under this Master Agreement for psychiatric health facility services. Star View Behavioral Health, Inc, is located in Torrance, California and is a sibling organization of Central Star Behavioral Health, Inc. After inquiring, it was determined that the new addition of the Bakersfield campus youth PHF would significantly widen the contracted services network maintained by DBH and keep persons served closer to home. Addition of this youth PHF will allow for the provision of services to adolescents and the underserved community of 5- to 11-year-old children. Approval of the recommended actions will add Central Star Behavioral Health, Inc. to the Master Agreement.
OTHER REVIEWING AGENCIES:
The Fresno County Behavioral Health Board was informed of the recommended agreement at their July 2024 meeting.
REFERENCE MATERIAL:
BAI # 30 - March 5, 2024
BAI # 26 - August 22, 2023
BAI # 44 - June 20, 2023
ATTACHMENTS INCLUDED AND/OR ON FILE:
Suspension of Competition Acquisition Request
On file with Clerk - Amendment III to Master Agreement
CAO ANALYST:
Ronald Alexander