DATE: February 26, 2019
TO: Board of Supervisors
SUBMITTED BY: Dawan Utecht, Director, Department of Behavioral Health
SUBJECT: Amendment I to Substance Abuse Prevention and Treatment Agreement
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the County Behavioral Health Director/Alcohol and Other Drug Program Administrator to execute Amendment A01 to Agreement No. 17-94127 with the California Department of Health Care Services (DHCS), including required certifications, for the provision of substance use disorder services to County residents, effective upon execution by DHCS, with no change in term to June 30, 2020 and increasing the maximum by $85,937 to a total of $14,018,036.
REPORT
The reason for the amendment is to modify the terms and conditions as outlined in the original contract and to increase discretionary funding by $85,937 in fiscal year (FY) 2018-19. This increase in discretionary funding is due to an annual adjustment performed by DHCS to redistribute the revised Substance Abuse and Mental Health Services Administration (SAMHSA) Substance Abuse Prevention Treatment Block Grant (SABG) to the counties determined using a formulary adjustment based on each county’s demographics and several other factors. Approval of the recommended action will enable the Department of Behavioral Health to continue receiving Federal SABG funds that are dispersed through the DHCS as Substance Abuse Prevention and Treatment (SAPT) funds to finance County substance use disorder (SUD) treatment and primary prevention programs, with no increase in Net County Cost. County Behavioral Health Director/Alcohol and Other Drug Program Administrator signature authority is requested to remain consistent with Agreement No. 17-94127 that was approved by the Board of Supervisors on January 9, 2018 and to expedite the signing of documents issued by DHCS related to this agreement that do not result in additional County costs. This item is countywide.
ALTERNATIVE ACTION(S):
There is no viable alternative action. If the recommended action is not approved, the County would not receive the Federal funding for mandated SUD and primary prevention programs during the contract period.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The recommended Amendment will provide $14,018,036 in revenue to the County over fiscal years FY 2017-18, 2018-19, and 2019-20 to administer SUD treatment and primary prevention programs. The annual allocation will remain at $4,644,033 for fiscal years 2017-18 and 2019-20. FY 2018-19 allocation will increase by $85,937 to $4,729,970. Sufficient appropriations and estimated revenues are included in the Department’s Org 5630 FY 2018-19 Adopted Budget and will be included in subsequent budget requests for the duration of the contract term.
DISCUSSION:
Since FY 1989-90, DHCS has contracted with the County to provide SUD treatment services. The recommended agreement amendment continues to provide Federal funding (block grants) from the SAMHSA dispersed through DHCS to support alcohol and drug treatment and prevention services for County residents. With these funds, the County contracts with local providers to deliver SUD treatment services to more than 700 residents annually who do not qualify for Drug Medi-Cal (DMC) and have no alternative payment options. In addition, these funds provide primary prevention program activities that serve more than 100,000 residents.
The Amendment increases the funding amount for FY 2018-19 by $85,937, while leaving the funding amounts for fiscal years 2018-19 and 2019-20 unchanged. The $85,937 increase in the FY 2018-19 funding applies only to the Discretionary line item of that fiscal year’s budget. The amendment also revises the several agreement exhibits to add, remove, and/or update definitions, addresses, website links, document submission deadlines dates and/or requirements, and in some instances more detailed instructions without imposing any new onerous requirements on the County. Additionally, restrictions on the use of SAMHSA Block Grant funds to pay for services not in the original agreement were added to the amendment.
DHCC requires that its Intergovernmental Agreement and any associated amendment be first signed by the County.
REFERENCE MATERIAL:
BAI #25, January 9, 2018
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - State-County Contract, Amendment A0I
CAO ANALYST:
Ronald Alexander