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Health and Human Services Agency (HHSA) recommending the Board:
1) Make findings pursuant to Section 3.13.030 (B) of the El Dorado County Ordinance Chapter 3.13, Contracting Out, that the Drug Medi-Cal Organized Delivery Services provided by Paradise Oaks Youth Services (Paradise Oaks) requires specialty skills and qualifications not expressly identified in County classifications are involved in the performance of the work;
2) Make findings in accordance with Procurement Policy C-17 Section 3.4(3) to exempt Agreement for Services 10063 from the competitive bidding process, with Purchasing Agent concurrence, because “competitive bidding would produce no economic benefit to the County”;
3) Approve and authorize the Chair to sign Agreement for Services 10063 with Paradise Oaks, in the amount of $225,000 for the initial term effective upon final execution through June 30, 2027, with the option for a one-year term extension through June 30, 2028, and an additional $175,000 if the extension is granted, contingent upon written approval by the County Contract Administrator, for a total maximum obligation of $400,000;
4) Authorize the Purchasing Agent to execute amendments relating to Agreement 10063, contingent upon approval by County Counsel and Risk Management, which do not increase the maximum dollar amount or term of the Agreement; and
5) Authorize the HHSA Director, or the Chief Assistant Director, to execute programmatic, administrative, and fiscal documents relating to Agreement 10063.
FUNDING: 45% State California Department of Health Care Services (DHCS) Opioid Settlement Disbursement Fund, 42% DMC-ODS, 8% Federal Substance Use Block Grant, 5% 2011 Realignment.
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DISCUSSION / BACKGROUND:
The mission of the HHSA Behavioral Health Division (BHD) Substance Use Disorder (SUD) Program is to provide an array of evidence-based services designed to prevent and reduce alcoholism and drug addiction through education, prevention, treatment, and counseling services offered directly through the HHSA BHD SUD Program as well as through contracts with community agencies. El Dorado County contracts with the State of California in Intergovernmental Agreement (IA) 25-50096 (Fenix 9726) for DMC-ODS services. The County subcontracts DMC-ODS services to external providers; however, the provider network has historically been insufficient to meet the needs of both youth and adults, resulting in waitlists for care.
In accordance with 42 Code of Federal Regulations Section 438.207, the County must ensure a provider network with adequate number, mix, and geographic distribution to fulfill the service needs of beneficiaries. The County has issued multiple Request for Qualifications (RFQ) over the last three years for youth residential services, all of which resulted in no received bids. Recently, HHSA worked in partnership with County Procurement and Contracts Division to solicit qualified providers via RFQ 24-0060, which was posted on July 10, 2024, for American Society of Addiction Medicine (ASAM) Level 3.1 and 3.5 youth residential treatment services. The RFQ closed on October 24, 2024, with no responses received.
As the County does not operate licensed youth residential programs, HHSA identified Paradise Oaks, a newly DMC-certified provider based in Citrus Heights, to deliver the required services. Paradise Oaks operates a state-licensed residential program serving youth with co-occurring mental health and substance use disorders. The program offers services including ASAM Level 3.1 Clinically Managed Low-Intensity Residential treatment and ASAM Level 3.5 Clinically Managed High-Intensity Residential treatment Residential Treatment Room and Board. Paradise Oaks uses a client-centered, family-focused approach to address the academic, social-emotional, and behavioral needs of each child and youth. El Dorado County youth ages 11-19 who are Medi-Cal beneficiaries and who either have a diagnosed SUD or meet eligibility criteria may be referred to Paradise Oaks to receive DMC-ODS treatment services as outlined in Agreement 10063, per California Welfare and Institutions Code Section 14021.
In accordance with the Board Procurement Policy C-17, HHSA recommends this agreement be exempt from competitive bidding, with Purchasing Agent concurrence, per Section 3.4(3) as “competitive bidding would produce no economic benefit to the County” due to the lack of providers and considering that the prior issued formal bids have resulted in no responses for the services.
ALTERNATIVES:
Should the Board decline to approve this recommendation, HHSA would continue services under existing contracts. However, HHSA would be unable to maintain compliance with DMC-ODS IA 25-50096 (Fenix 9726) executed between the County and DHCS which could lead to fiscal sanctions.
PRIOR BOARD ACTION:
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT:
County Counsel, Human Resources, and Risk Management. The Auditor Controller was notified of this Agreement in accordance with Policy B-12.
CAO RECOMMENDATION:
Approve as recommended.
FINANCIAL IMPACT:
There is no Net County Cost associated with this agenda item. There are sufficient appropriations included in the Fiscal Year 2025-26 budget and will be included in future budgets for the term of the Agreement.
CLERK OF THE BOARD FOLLOW UP ACTIONS:
Clerk of the Board to obtain signature of Chair on one original Agreement for Services 10063.
STRATEGIC PLAN COMPONENT:
N/A
CONTACT:
Olivia Byron-Cooper, MPH, Director, Health and Human Services Agency