Title
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 provision of residential Substance Use Disorder (SUD) services provided by subrecipients are in the public's best interest and that there are specialty skills, qualifications, and equipment not expressly identified in County classifications involved in the performance of the work;
2) Make findings in accordance with Procurement Policy C-17 Section 3.4(3) exempting 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 10307 with JCL Investments LLC doing business as Community Outreach Recovery and Rehabilitation, for the provision of SUD services, in the amount of $400,000 for the initial 10 month term from execution through June 30, 2027, with the option for a one year term extension through June 30, 2028, and an additional $425,000 if the extension is granted, for a total maximum obligation of $825,000;
4) Approve and authorize the Chair to sign Agreement for Services 10334 with G.L.O.M. Substance Abuse Program, Inc. for provision of SUD services, in the amount of $450,000 for the initial 10 month term from execution through June 30, 2027, with the option for a one year term extension through June 30, 2028, and an additional $500,000 if the extension is granted, for a total maximum obligation of $950,000;
5) Authorize the Purchasing Agent to execute amendments relating to Agreements 10307 and 10334, contingent upon approval by County Counsel and Risk Management, which do not increase the maximum dollar amounts or terms of the Agreements; and
6) Authorize the HHSA Director or the Chief Assistant Director, to execute programmatic, administrative, and fiscal documents relating to Agreements 10307 and 10334.
FUNDING: 85% Federal Drug Medi-Cal, 5% State Realignment, 5% Substance Use Block Grant, and 5% Opioid Settlement Funds.
Body
DISCUSSION / BACKGROUND
The mission of HHSA’s Behavioral Health Division (BHD) Substance Use Disorder Services (SUDS) Program is to provide an array of evidence-based services designed to prevent and reduce alcoholism and drug addiction through the provision of education, prevention, treatment, and counseling services. Such services are offered directly through SUDS Program staff and through contracts with community agencies.
In August 2015, California Department of Health Care Services (DHCS) announced approval of California’s Drug Medi-Cal-Organized Delivery System (DMC-ODS) Waiver Program, enacted to provide a continuum of care for SUD treatment services. The DMC-ODS Program provides a coordinated continuum of care for SUD treatment, allowing counties greater local control, enhanced oversight, utilization management, and implementation of evidence-based practices. On May 23, 2017, the Board authorized the County to opt into the DMC-ODS Waiver enabling the County to administer or arrange SUD services for Medi-Cal beneficiaries (Legistar 17-0525). On August 12, 2025, the Board approved the Chair to execute Intergovernmental Agreement (IA) 25-50096 (Fenix 9726) with DHCS to continue supporting these essential DMC-ODS services (Legistar 25-1227). This IA requires the County to provide outpatient, residential, and narcotic treatment to all El Dorado County Medi-Cal members who meet eligibility requirements.
Under this structure, each county is responsible for providing or arranging SUD treatment for residents who are Medi-Cal beneficiaries. Beneficiaries are eligible for SUD services when a substance use disorder significantly impacts their functioning and treatment is determined to be medically necessary. The two subrecipients included in this agenda item will deliver residential SUD treatment services for eligible Medi-Cal beneficiaries residing in the County. Clients will receive intensive treatment interventions and supportive services to help them achieve their treatment goals.
DHCS has network adequacy requirements and annually the County must prove that it has a large enough provider network to offer SUD services to all eligible members. To meet this requirement, HHSA must contract with all local Drug Medi-Cal certified providers. In accordance with the Board Procurement Policy C-17 Section 3.4(3), HHSA recommends these agreements be exempt from competitive bidding, with Purchasing Agent concurrence, as competitive bidding would produce no economic benefit to the County, due to the lack of certified providers throughout the County and considering that the prior issued formal bids have resulted in no responses for the services.
ALTERNATIVES
Should the Board decline to approve these recommendations, HHSA would be unable to maintain network adequacy compliance with the DMC-ODS IA 25-50096 executed between the County and DHCS which could lead to fiscal sanctions.
PRIOR BOARD ACTION
05/23/2017 Legistar file 17-0525, HHSA Federal 1115 Waiver for DMC ODS
08/12/2025 Legistar file 25-1227, HHSA DMC-ODS Funding In 25-50096 (Fenix 9726)
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel, Human Resources, and Risk Management. The Auditor Controller was notified of these Agreements in accordance with Policy B-12.
CAO RECOMMENDATION
Approve as recommended.
FINANCIAL IMPACT
There is no Net County Cost associated with this agenda item. Sufficient appropriations were included in the Fiscal Year 2026-27 budget request and will be included in future budgets for the terms of the agreements.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Clerk of the Board to obtain signature of Chair on the original Agreements for Services 10307 and 10334.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Olivia Byron-Cooper, MPH, Director, Health and Human Services Agency