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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 Substance Use Disorder services provided by Muir Wood, LLC (Muir Wood) 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) 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 9595 with Muir Wood, in the amount of $375,000, and for the term of three years from November 1, 2025, through October 31, 2028;
4) Authorize the Purchasing Agent to execute amendments relating to Agreement 9595, 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 9595.
FUNDING: 100% State California Department of Health Care Services Opioid Settlement Disbursement Fund.
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DISCUSSION / BACKGROUND:
The mission of the HHSA 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 Behavioral Health Division (BHD) SUD Program as well as through contracts with community agencies.
In accordance with 42 Code of Federal Regulations (CFR) 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 Muir Wood, a state licensed provider based in Petaluma, California as available to deliver the required services. Muir Wood offers ASAM Level 3.5 Clinically Managed High-Intensity Residential treatment, with Level 3.2 Withdrawal Management services provided as a secondary level of care.
Muir Wood operates state-licensed residential campuses serving beneficiaries ages 12-17 with co-occurring mental health and substance use disorders. The program delivers gender-specific, evidence-based care in structured, home-like settings. Services include individual, group, and family therapy, medication management and recovery. The treatment model emphasizes stabilization, relapse prevention, and reintegration into home, school, and community life, with a strong focus on family involvement and long-term recovery.
HHSA’s SUD clients, ages 12-17 years old who meet the criteria for SUD services as outlined in California Welfare and Institutions Code (WIC) Section 14021.4, may be referred to Muir Wood to receive SUD services outlined in proposed Agreement 9595.
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, DHCS can impose monetary penalties or temporarily withhold funds from the Behavioral Health Plan for failing to meet network adequacy standards, demonstrate sufficient network capacity, or submit timely and accurate provider data, as specified in WIC Section 14197.7.
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 General Fund Cost associated with this agenda item, as this agreement is funded entirely by the DHCS Opioid Settlement Disbursement Fund. 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 Agreement for Services 9595.
STRATEGIC PLAN COMPONENT:
N/A
CONTACT:
Olivia Byron-Cooper, MPH, Director, Health and Human Services Agency