RECOMMENDATION(S): (CONT'D)
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Advance payments, if any, will be only for the month of May 2020;
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Advance payments will be based upon budgeted contract amounts for May 2020 or in an amount equal to 1/12 of an annual contract; and
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In no case shall these payments exceed the total Board authorized contracted amount.
2. DIRECT the Auditor-Controller to process such advance payments.
FISCAL IMPACT:
This Board action would result in approximately $2-3 million of advance payments for the month of May, to non-governmental community-based health and human services direct service providers. Advances will be paid with the likelihood of partial reimbursement from State and Federal funding. There may be future audit or cost settlement findings regarding these payments. The County Administrator will provide a report back to the Board once total payments are processed.
BACKGROUND:
COVID-19 is likely to cause significant impacts to the social safety net in Contra Costa County. The safety net relies on a tight integration of government-provided assistance with direct services provided by non-profit organizations. Shelter in place orders are impacting the operations of these non-profit organizations that provide critical services to vulnerable residents of Contra Costa County. Social distancing requirements to prevent disease transmission may make delivery of critical services extremely difficult, impossible or ineffective. Many non-profit organizations have few, if any, financial reserves enough to sustain themselves. Maintaining cash flow is likely to allow quicker resumption of these key services when the emergency is over.
If approved, this action would provide an advance to sustain cash-flow to non-governmental community based direct service organizations during the current emergency.
Eligible non-governmental community based direct health and human service organizations will be required to submit a claim equal to 1/12 of an annual contract (or equivalent pro rated amount) to the department procuring the service as an advance for future services, departments will forward advance payment requests to the Auditor for payment. The Auditor will forward a summary report to the County Administrator for approval of the payments.
This advance is in addition to advances already approved for the month of April. This action does not include advances for behavioral health providers in the Health Services Department (companion item).