To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract Amendment #74-222-21 with J. Cole Recovery Homes, Inc.
☒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 Contract Amendment #74-222-21 with J. Cole Recovery Homes, Inc., a corporation, effective July 1, 2025, to amend Contract #74-222-20, to modify the rate for counselors providing residential substance use disorder (SUD) treatment services for male offenders in East County with no change in the original payment limit of $1,989,989 or term ending June 30, 2026.
FISCAL IMPACT:
Approval of this Contract Amendment will result in no change to the original budgeted expenditures of up to $1,989,989 and will be funded by 45% Federal Drug Medi-Cal, 45% State General Fund and 10% Assembly Bill (AB) 109 revenues (No rate increase)
BACKGROUND:
The County has been contracting with J. Cole Recovery Homes, Inc., since January 2004 to meet the social needs of County’s population by providing residential SUD treatment services for male offenders in East County and are provided an opportunity to achieve sobriety and recover from the effects of alcohol and other drug use, become self-sufficient, and return to their families as productive individuals. The Contractor was selected as they are the only licensed and credentialed Community Based Organization (CBO) that serves in this geographic location for residential SUD services that specialize in serving formerly incarcerated Medi-Cal beneficiaries who have very unique needs. Contractor has a long-standing history with State Department of Health Care Services (DHCS) accreditation and compliance and meet all regulatory compliance required of managed care plans.
This Contract is entered into under and subject to the following legal authorities: California Government Code §§ 26227 and 31000. Health Services Personnel approved this Contract to ensure no conflicts 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, the Department has posted a continuous Request for Qualifications and maintains a current qualified list of vendors at all times.
On September 16, 2025, the Board of Supervisors approved Contract #74-222-20 with J. Cole Recovery Homes, Inc., in the amount of $1,989,989, to provide residential substance abuse use disorder treatment services for male offenders in East County for the period from July 1, 2025 through June 30, 2026.
Approval of Contract Amendment #74-222-21 will allow the parties to amend the Contract to accurately reflect the Counselor rate for services to be provided through June 30, 2026. The initial calculation for the Counselor rate was found to be in error and needs to be amended effective July 1, 2025 to reflect the correct rate.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract Amendment is not approved, individuals will not receive the additional alcohol and drug prevention and treatment services they need to maintain sobriety and reduce risk factors.