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Health and Human Services Agency (HHSA) recommending the Board:
1) Approve the amended list of perpetual agreements for Fiscal Year (FY) 2025-26, as shown in Attachment A, which increases the FY not to exceed amount of one perpetual agreement (Agreement for Services 846 with BHC Heritage Oaks Hospital, Inc. doing business as Heritage Oaks Hospital), by $200,000, for a new fiscal year amount of $700,000;
2) Approve the continuation of eight perpetual agreements for FY 2026-27, as detailed in Attachment B;
3) Authorize the Purchasing Agent (PA) to post a change order to increase the funding availability in Agreement 846 for FY 2025-26, and for each ongoing perpetual agreement for FY 2026-27, included in Attachment B, to ensure availability of funding;
4) Delegate authority to the PA to execute amendments, as needed, to the perpetual agreements detailed in amended Attachment A and Attachment B, that do not increase the maximum dollar amounts beyond what is included in those attachments per FY, contingent upon approval by County Counsel and Risk Management; and
5) Authorize the HHSA Director or Chief Assistant Director to terminate perpetual agreements, as appropriate, including but not limited to those listed in Attachment B.
FUNDING: Various, see funding sources in Attachment A & B.
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DISCUSSION / BACKGROUND:
In accordance with the October 20, 2022, Board Policy C-17, Section 2.4, “Perpetual Agreements,” a perpetual agreement is a contract that does not have a stated term. Under this policy, the County PA is authorized to sign perpetual agreements where the dollar amount does not exceed the PA’s authority.
Beginning June 20, 2017, and thereafter on an annual basis each year, the Board has authorized the PA to sign specific HHSA perpetual agreements to ensure continued administration and provision of services to the community. This annual approval process has allowed HHSA to ensure continuity in services on specific perpetual agreements without any undue delays.
Most recently, on June 24, 2025, the Board approved the continuation of eight HHSA perpetual agreements for FY 2025-26 (Legistar file 25-0617). Agreement 846 with Heritage Oaks Hospital for the provision of mandated Acute Psychiatric Inpatient Hospital Services, included in the Board approved FY 2025-26 perpetual list, has experienced a significant increase in utilization in recent months, resulting in the need to increase the agreement’s FY maximum obligation from $500,000 to $700,000. This FY not to exceed amount for this agreement has been included in the perpetual agreement list for FY 2026-27 presented in this agenda item, however, HHSA is also requesting the Board approve the increased amount for FY 2025-26 of Agreement 846 to ensure hospitalization services can continue through the end of the current FY. Amendment II to Agreement 846 to increase the FY not to exceed amount from $500,000 to $700,000 is currently in process.
HHSA recommends Board approval of the FY 2025-26 amended perpetual list shown in Attachment A, in accordance with this increased FY amount for Agreement 846 with Heritage Oaks Hospital. Additionally, HHSA is recommending Board approval to authorize the continuation of eight specified perpetual agreements for FY 2026-27.
The County’s financial system (FENIX) requires that each perpetual agreement has a change order processed to allocate funding for payments in the upcoming FY. Therefore, HHSA is apprising the Board of the one modified perpetual agreement amount for FY 2025-26 and the continuing perpetual agreements for FY 2026-27, and recommends the Board authorize the PA to post a change order for these perpetual agreements to ensure the availability of funding.
During FY 2026-27, HHSA will continue to monitor these existing perpetual agreements. For any perpetual agreements that are no longer needed, HHSA will terminate said agreement(s), as appropriate.
ALTERNATIVES:
If the Board does not approve the extension of these perpetual agreements for FY 2026-27 or approve the one amended perpetual contract amount for FY 2025-26, HHSA will be unable to process payments for services provided under said agreements and will have to return to Board in separate item(s), which will result in delayed payments to the vendors and result in gaps in service provision.
PRIOR BOARD ACTION:
06/24/25, 25-0617, HHSA FY 2025-26 Perpetual Agreement List
OTHER DEPARTMENT / AGENCY INVOLVEMENT:
County Counsel, Human Resources, Procurement and Contracts, and Risk Management. The Auditor-Controller has been notified per Board Policy B-12.
CAO RECOMMENDATION:
Approve as recommended.
FINANCIAL IMPACT:
The value and funding source of each perpetual agreement for FY 2026-27 is identified in Attachment A and B. Sufficient appropriations for these perpetual agreements have been included in the HHSA Fiscal Year 2026-27 Budget and will be included in future budgets for the term of the perpetual agreements.
CLERK OF THE BOARD FOLLOW UP ACTIONS:
N/A
STRATEGIC PLAN COMPONENT:
N/A
CONTACT:
Olivia Byron-Cooper, MPH, Director, Health and Human Services Agency