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  Consent-Health & Human Services   #   19.    
Board of Supervisors Adult & Aging  
Meeting Date: 01/15/2019  
Brief Title:    Second Amendment to Canyon Manor MHRC Agreement FY17-20
From: Karen Larsen, Director, Health and Human Services Agency
Staff Contact: Sandra Sigrist, Adult and Aging Branch Director, Health and Human Services Agency, x8794

Subject
Approve second amendment to Agreement-Infor PO No. 2247 with Mental Health Management I, Inc., dba Canyon Manor, for chronic mental illness and/or substance abuse disorders treatment services to extend the term and add funding of $535,000 for 2019-20, clarify language regarding option years and revise the daily service rates for 2018-19 and 2019-20. (No general fund impact) (Larsen)
Recommended Action
  1. Approve the second amendment to Agreement- Infor PO No. 2247 (previously amended by BOS Agreement No. 18-35) with Mental Health Management I, Inc. dba Canyon Manor, a facility to treat chronic mental illness and/or substance abuse disorders, to extend the term and add funding of $535,000 for fiscal year 2019-20, clarify language regarding option years, and revise the daily serve rate for FYs 2018-19 and 2019-20; and
     
  2.  Delegate authority to the Director of the Yolo County Health and Human Services Agency or her/his designee to approve an Option Year Letter for Fiscal Year 2020-21 not to exceed $535,000, for a 5-year maximum payment obligation not to exceed $2,325,000.
Strategic Plan Goal(s)
Operational Excellence
Thriving Residents
Safe Communities
Reason for Recommended Action/Background
Mental Health Management I, Inc. dba Canyon Manor (Contractor) provides services to seriously mentally ill (SMI) adults, stepping them down to lower levels of care whenever possible, reducing acute psychiatric admissions and length of stay and serves as an institute for Mental Disease placements. This facility provides goal-directed treatment, a decreased length of stay, and great collaboration and communication, while also being closer to home for the conserved clients. Use of these services furthers HHSA’s efforts to utilize community-based services and to prevent higher cost of care from occurring more than necessary.

On or about March 10, 2015, the Yolo County Board of Supervisors (BOS) pursuant to Minute Order No. 15-31, Item No. 9 delegated authority to the Director of the Health and Human Services Agency (HHSA) to sign agreements for residential 24/7 care services, if total maximum compensation was less than $350,000 per fiscal year (FY).
 
On or about April 4, 2017, the HHSA Director executed an agreement otherwise known as Infor PO No. 2247 (“Agreement-PO No. 2247”), with Contractor using the delegated authority. Agreement-PO 2247 had a term of February 10, 2017 through June 30, 2019 and total maximum compensation of $555,000 ($185,000 per FY for FY 2016-17; FY 2017-18; and FY 2018-19.)
 
On or about February 6, 2018, the first amendment to Agreement- PO No. 2247, otherwise known as BOS Agreement 18-35, (First Amendment to Agreement- PO No. 2247) was approved by the BOS. The First Amendment to Agreement- PO No. 2247 added funding that exceeded the HHSA Director’s delegated signing authority.  The total contract maximum was increased to $1,255,000 ($185,000 for FY 2016-17; $535,000 for FY 2018-19; and $535,000 for FY 2018-19.)
 
This second amendment to Agreement- PO No. 2247 (Second Amendment to Agreement- PO No. 2247) extends the term of the agreement through June 30, 2020; adds funding of $535,000 for FY 2019-20 for new contract maximum of $1,790,000 ($185,000 for FY 2016-17; $535,000 for FY 2018-19; $535,000 for FY 2018-19; and $535,000 for FY 2019-20); clarifies language regarding an option year to align with guidance provided by the Yolo County Procurement Manager to ensure transparency regarding potential future costs via that option year; clarifies the HHSA Director’s authority to exercise that option; and revises the daily service rate for FYs 2018-19 and 2019-20.
 

 

FY 2016-17

FY 2017-18

FY 2018-19

FY 2019-20

Total Contract Maximum

Agreement PO No. 2247

$185,000

$185,000

$185,000

n/a

$555,000

Amendment #1  (Agreement 18-35)

$185,000

$535,000

$535,000

n/a

$1,255,000

Amendment #2
(this amendment)

$185,000

$535,000

$535,000

$535,000

$1,790,000

 
Collaborations (including Board advisory groups and external partner agencies)
County Counsel has approved this Agreement as to form.
Competitive Bid Process
On July 31, 2007, the Board of Supervisors granted an approval to Yolo County Health and Human Services Agency (HHSA) for certain exceptions to the contract procurement policy.  According to this approval, Residential Treatment Services in a locked 24-hour facility is classified as “Any Willing Provider” and are exempt from the competitive bid process.

Fiscal Information
Fiscal impact (see budgetary detail below)
Fiscal Impact of this Expenditure
Total cost of recommended action $535,000
Amount budgeted for expenditure $535,000
Additional expenditure authority needed $0
On-going commitment (annual cost) $535,000
Source of Funds for this Expenditure
State $535,000
Further explanation as needed
No general funds are required by this action.  These services will be funded by State funds.  There is no increase to the maximum compensation for the current fiscal year (FY 2018-19.) The amount of $535,000 was included in the HHSA adopted budget for FY 2018-19.  The related funding for FY 2019-20 and FY 2020-21 will be included in the requested budget process for future fiscal years. Further, the agreement provides that the County’s obligation to compensate Contractor pursuant to the agreement is contingent upon, and subject to, the County’s receipt of such funding from the State, and the absence or removal of any constraints imposed by the State upon such receipt and payment.
 
The following is the breakdown of this agreement.
 
 
Scope of Services
 
FY 2016–17
February 10, 2017
through
June 30, 2017
FY 2017–18
July 1, 2017 through
June 30, 2018
FY 2018–19
July 1, 2018
 through
June 30, 2019
FY 2019–20
July 1, 2019
 through
June 30, 2020
 
 
Total
Mental Health Rehabilitation Center (MHRC)  
$185,000
 
$535,000
 
$535,000
 
$535,000
 
$1,790,000









This Second Amendment to Agreement PO No. 2247 also clarifies the language regarding the remaining option year, providing for one option year not to exceed $535,000, as follows:
 
Option Year/
Fiscal Year
Revised Agreement Termination Date Per Option Year/ Fiscal Year Increased Funding Amount Per
Option Year/ Fiscal Year
Revised Maximum Payment Obligation Per Option Year/ Fiscal Year
First
(FY 2020-21)
On or before
June 30, 2021
Less than or equal to $535,000 Less than or equal to $2,325,000






In no event shall the term extend beyond June 30, 2021 nor shall the total contract maximum exceed the amount of $2,325,000, unless otherwise agreed to in writing by the parties and in conformity with the Yolo County Procurement Policy approved by the BOS on December 11, 2018, via Minute Order No. 18-202.




 
Attachments
Att. A. Second Amendment

Form Review
Inbox Reviewed By Date
Karen Larsen Karen Larsen 12/28/2018 12:03 PM
Financial Services Tom Haynes 01/02/2019 02:30 PM
County Counsel Hope Welton 01/03/2019 02:26 PM
Form Started By: Nicole Jamison Started On: 10/01/2018 06:36 PM
Final Approval Date: 01/03/2019
Level double AA conformance,
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