FISCAL IMPACT:
Approval of the contract will result in budgeted expenditures of up to $335,152 and will be funded by 78% Substance Abuse Prevention and Treatment Block Grant ($261,500) and 22% Substance Abuse Prevention and Treatment Block Perinatal Grant ($73,652) revenues. (Rate increase)
BACKGROUND:
The County has been contracting with Shelter, Inc., since October 2021 to provide specialty housing for adults participating in substance use disorder treatment. In December 2021, the County executed Contract #74-639 with the contractor for specialty housing services for adults participating in substance use disorder treatment in an amount not to exceed $166,861 during the period October 1, 2021 through June 30, 2022.
On May 1, 2022, the Alcohol and Other Drugs Program Chief requested Department Head approval to amend Contract #74-639 to increase the payment limit by $49,751 due to the prior invoices reaching the contract payment limit. On June 17, 2022, a contract amendment was sent to Shelter, Inc. for signature. The June 21, 2022 Board of Supervisor agenda included a contract amendment request from the Health Services Department. The Board of Supervisors approved Amendment Agreement #74-639-1 to increase the payment limit from $166,861 to $216,612, effective May 1, 2022, for Shelter, Inc. to provide additional specialty housing for adults participating in substance use disorder treatment with no change in the term October 1, 2021 through June 30, 2022.
On July 26, 2022, the department requested Board approval to execute Contract #74-639-2 with Shelter, Inc. for the continuation of their speciality housing services for adults participating in substance use disorder treatment through June 30, 2023. The item was removed from the consent calendar and instead heard as a discussion item. At the conclusion of the discussion, the item was continued for further discussion at the August 2, 2022 meeting. In preparation for the continued discussion, the Board directed the Health Services Department to prepare a status report inclusive of a list of the sober living environments (SLE) housing providers subcontracted with Shelter, Inc., payment status of invoices received by Shelter, Inc. from all the subcontractors, payment status of invoices received by the County from Shelter, Inc. Additionally, the Board referred to the Finance Committee a report on the Health Services Department's contract management and invoice payment oversight processes. The report is expected by the September Finance Committee.
Please see the attached report from the Behavioral Health Services Division of the Health Services Department for the information requested.
CONSEQUENCE OF NEGATIVE ACTION:
If this contract is not approved, County clients will not have access to this contractor’s services and the County will not have a contract in place to provide these critical services.
CLERK'S ADDENDUM
Speakers: Sara, Restore; Todd Bang, Support4Recovery; Tom Aswad, Support4Recovery; No name given; No name given; Teresa Pasquini; Logan, John Dante, Balance Point Foundation, Dylan Johnston, Alcohol and Other Drugs Advisory Board.
AUTHORIZED Health Services to enter into the contract with Shelter Inc. effective July 1, 2022;
DIRECTED a September 2022 meeting of the Finance Committee be scheduled to review information regarding Health Services contracts with Shelter Inc. including but not limited to:
a. the number of beds that are currently available
b. any outstanding invoices from operators
c. an outreach plan that includes a time frame for implementation
d. an examination of whether or not referrals are being properly extended to Shelter Inc.;
REFERRED to the Internal Operations Committee a review of all Health Services contracts and contracts held with Shelter Inc. from County agencies other that Health Services;
REQUESTED information on the relevant policies and practices of other counties;
DIRECTED Health Service to have prepared for the Boards October 2022 meeting on this matter a corrective action plan regarding payment policy and procedure.