To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Cancellation Agreement Contract #74-652-3 and Contract #74-652-4 with Options Recovery Services
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Health Services Director, or designee, to execute on behalf of the County, as follows: (1) Cancellation Agreement #74-652-3 with Options Recovery Services, a non-profit corporation, effective at the end of business on January 31, 2024; and (2) Contract #74-652-4 in an amount not to exceed $998,727, to provide alcohol and drug abuse prevention services for adults with substance use and/or co-occurring disorders, for the period February 1, 2024 through June 30, 2024.
FISCAL IMPACT:
Approval of this contract will result in budgeted expenditures of up to $998,727 and will be funded by 30% Federal Medi-Cal ($303,516), 30% Local Revenue Funds ($303,516), 20% Assembly Bill 109 ($200,000), and 20% State Opioid Settlement Funds ($191,695). (No rate increase)
BACKGROUND:
This contract meets the social needs of county’s population by providing specialized alcohol and drug abuse prevention services, so that men and women are provided an opportunity to achieve and maintain sobriety and to experience the associated benefits of self-sufficiency, family reunification, cessation of criminal activity and productive engagement in the community. Options Recovery Services has been providing alcohol and drug abuse prevention services since June 2022.This contract is entered into under and subject to the following legal authorities: California Government Code §§ 26227 and 31000. This contract was approved by Health Services Personnel to ensure there is no conflict with labor relations. The Behavioral Health’s Quality Management, Utilization Management and Contract Monitor Staff meet on a regular basis to ensure monitoring and performance measures in the contract are upheld. Per Administrative Bulletin 600.3 this contractor was approved by the Public Works Department’s Purchasing Division on February 20, 2024.
On July 11, 2023, the Board of Supervisors approved Contract #74-652-2, in an amount not to exceed $1,434,303, to provide alcohol and drug abuse prevention services for adults with substance use and/or co-occurring disorders, for the period July 1, 2023 through June 30, 2024.
In consideration of the contractor’s agreement to continue providing specialized alcohol and drug abuse prevention services and the department’s need to comply CALAIM’s Payment Reform to meet with Drug Medi-Cal (DMC) mandates, the department and contractor have agreed to (1) mutual cancellation of the current contract in accordance with General Conditions Paragraph 5 (Termination), of the contract (Cancellation Agreement #74-652-3 will accomplish this cancellation), and (2) establish a new contract with the correct terms and conditions for the next three years.
Under new Contract #74-652-4, Contractor will continue providing alcohol and drug abuse prevention services with a new contract term February 1, 2024 through June 30, 2024. This contract is late due to prolonged negotiations between the Contractor and Division regarding the CalAIM payment reform.
CONSEQUENCE OF NEGATIVE ACTION:
If this contract is not approved, county’s clients may experience reduced or discontinued alcohol and drug abuse prevention services.