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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 Crisis Residential Treatment facility services provided by Compassion Pathway Behavioral Health LLC 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(2f) exempting the services from the competitive bidding process, with Purchasing Agent concurrence, because the procurement is for services where the continuity of providers will provide efficiency or critical knowledge, and other providers of the services cannot provide similar efficiencies or critical knowledge;
3) Approve and authorize the Chair to sign Amendment I to Agreement for Services 8976 with Compassion, increasing the contract value by $600,000 in Fiscal Year (FY) 2025-26 and $600,000 in FY 2026-27, for a new maximum obligation of $5,550,000 if extended through the optional term of June 30, 2027;
4) Authorize the Purchasing Agent to execute amendments relating to Agreement 8976, 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 8976.
FUNDING: 50% Federal Medi-Cal, 50% State Mental Health Services Act.
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DISCUSSION / BACKGROUND:
As the Mental Health Plan (MHP) of El Dorado County, the HHSA Behavioral Health Division (BH) is required to provide Specialty Mental Health Services (SMHS), including access to Crisis Residential Treatment (CRT) facilities, to eligible individuals in accordance with County Ordinance 3.13.030 and California Welfare and Institutions Code Division 5, Part 2, Chapter 1, Section 5600.3(b). To meet this requirement, BH must contract with CRT providers to ensure availability of such services for eligible County residents who are experiencing an acute psychiatric episode or crisis but do not also require nursing care.
On February 25, 2025, the Board approved Agreement 8976 with Compassion Pathway for the provision of CRT services through its Oak Lane facility, which is located in El Dorado County (Legistar file 25-0072.) Compassion Pathway’s Oak Lane CRT facility provides a structured program of therapeutic and rehabilitative services twenty-four hours a day, seven days a week, in a non-institutional, residential setting which serves as an alternative to inpatient hospitalization. Amendment I to Agreement 8976 will reduce the number of dedicated beds from ten to six, update standard contract articles, and increase fiscal year allocations and the agreement’s total not-to-exceed (NTE) amount. The annual NTE for FY 2025-26 and FY 2026-27 will be increased by $600,000 each, for a total possible maximum obligation of $5,550,000 if the contract’s optional one year term extension is exercised.
The fiscal year NTE of Agreement 8976 is being increased in order to align with the FY 2025-26 Mental Health Services Act (MHSA) Annual Update, which was approved by the Board on June 17, 2025. The MHSA Annual Update increased budget for CRT services in FY 2025-26 by $600,000, for a total of $2,000,000. HHSA BH recommends the Board approve this Amendment I to Agreement 8976, so it aligns with the MHSA Annual Update and to ensure the continuity of mandated crisis services.
ALTERNATIVES: Should the Board decline to approve this recommendation, Agreement 8976’s FY 2025-26 NTE will likely be expended in early 2026. BH will be unable to refer clients to a CRT for the remainder of FY 2025-26, likely resulting in more expensive inpatient psychiatric hospital placements to accommodate the client’s level of need.
PRIOR BOARD ACTION:
1) 02/25/25, 25-0072, HHSA Compassion Pathways C#8976
2) 05/20/25, 25-0166, HHSA MHSA Plan Annual Update Draft Review FY 2025/26
3) 06/17/25, 25-0991, HHSA MHSA FY 2025-26 Annual Update
4) 10/15/25, 25-1701, CRT - Oct. 15, 2025
OTHER DEPARTMENT / AGENCY INVOLVEMENT:
County Counsel, Human Resources, and Risk Management.
CAO RECOMMENDATION:
Approve as recommended.
FINANCIAL IMPACT: There is no Net County Cost associated with this item. Sufficient appropriations were 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 Amendment I to Agreement for Services 8976.
STRATEGIC PLAN COMPONENT:
N/A
CONTACT:
Olivia Byron-Cooper, MPH, Director, Health and Human Services Agency