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Human Services Department advising the Board of current perpetual agreements for services and memoranda of understanding as listed on Attachment 09-0797.A.1-8.; and recommending the Board authorize continuation of same.
FUNDING: Primarily State and Federal funds with County share of cost met with Realignment funds.
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BUDGET SUMMARY:
Maximum Annual Compensation Associated with Placement Agreements: $22,650,000
Maximum Annual Compensation Associated with Other Agreements: $ 1,249,118
Maximum Annual Compensation Associated with all Agreements: $23,899,118
FY 09-10 Amount Budgeted for Placement Services: $5,197,477
FY 09-10 Amount Budgeted for Other Services: $1,249,118
Total Amount Budgeted for FY 09-10 Costs Associated w/All Agreements: $6,446,595
All services are accessed on an "as requested" basis. Because maximum compensation is set higher than expected to allow for fluctuations in usage of any given vendor and limit administrative costs associated with contract amendments, the combined maximum annual compensation of $23,899,118 for these agreements does not equal the amount budgeted each fiscal year. Only $5,197,477 of the potential $22,650,000 is budgeted for provision of emergency shelter and foster care/group home placement services during FY 09-10 based on historical expenditure levels. The estimated cost of $1,249,118 associated with the other ongoing agreements is budgeted for FY 09-10, but is not likely to be fully expended.
Fiscal Impact/Change to Net County Cost: No Change. These agreements represent a variety of funding sources and a range of required County match dollars. Funding associated with the financial agreements is included in the FY 09-10 County Budget Request based on anticipated expenditures. The attached spreadsheet lists the maximum annual compensation for each agreement which would seldom, if ever, be reached during any fiscal year.
Fourteen (14) of the ongoing agreements are non-financial operational agreements. Seventy (70) agreements are for emergency shelter and/or foster care/group home placement services and are funded by Federal and State Social Services allocations with required County Share of Cost met primarily with realignment resources. One (1) agreement is for mandated health care benefits to eligible In Home Support Services Public Authority providers with required County Share of Cost met primarily with realignment resources. Four (4) agreements are 100% funded by annual State/Federal allocations or grants. Three (3) agreements are funded by Federal and State Social Services allocations with required County Share of Cost met primarily with non-General Fund dollars. One (1) agreement is funded by a combination of General Fund dollars, client fees and federal TCM revenues (Computrust Software Agreement for the Public Guardian Office). One (1) agreement is 100% General Fund dollars (Vehicle Insurance Associated with Operational Agreement with the City of South Lake Tahoe for the TRANSEN Program).
Reason for Recommendation: The Department of Human Services (DHS) brings this matter before the Board pursuant to BOS Policy C-17 which requires departments to obtain authorization from the Board of Supervisors, initially, and on an annual basis, to utilize any contract that does not have a stated contract term. This policy requirement is intended to advise the current Board of agreements approved by this or preceding Boards in the current or prior fiscal years and to enable the Purchasing Agent to prepare the necessary purchase orders for FY 09-10 payments associated with eighty (80) of the agreements.
The attached spreadsheet provides detailed information describing services provided under each agreement, fiscal obligations or budgeted revenues, County Counsel approvals, Fiscal Consideration language and contract termination provisions. Also attached are copies of Blue Routes containing pertinent comments by County Counsel about certain agreements. Because each of these agreements is required for the administration and provision of important services to the community, DHS is recommending their continuation. The list does not include new agreements with no stated end date that are coming before the Board in June 2009.
DHS administers multiple ongoing agreements to facilitate provision of services that are mandated or otherwise necessary to Department operations and that benefit the County and its residents. On July 1, 2008, DHS brought twenty-one (21) ongoing agreements to the Board's attention for FY 08-09. Ninety-four (94) ongoing agreements are now being brought to the Board's attention for FY 09-10. Seventy (70) of the ongoing agreements are for the provision of emergency shelter care and/or foster care/group home placement services. DHS replaced its limited term agreements for these services with no stated end date agreements and developed additional ongoing agreements with all newly identified foster family agency and group home providers of these services in order to ensure the timely placement of Child Protective Services minor clients in the most appropriate, nurturing and conveniently located environment, facilitate timely payments to vendors and reduce ongoing administrative costs. Each of these vendors is assigned a limited annual maximum compensation amount ranging from $100,000 to $1,400,000 based on anticipated usage. Working in conjunction with the CAO, DHS has established a tracking system that regularly monitors the level of expenditures for emergency shelter care placement services, as well as expenditures for each individual vendor. This tracking system ensures that overall expenditures remain within budget, while also allowing DHS sufficient time to amend any individual agreement for which actual placement costs will exceed the annual not-to-exceed maximum compensation amount.
The remainder of the ongoing agreements relate to a diverse variety of services, including software maintenance agreements, agreements that enable community agencies to participate in the County administered Medi-Cal Administrative Activities (MAA) Program, memoranda of understanding (operational agreements) that set forth the roles and responsibilities of participating parties as it applies to DHS clients and/or services, provision of non-paid interns through a local junior college in order to assist students to attain education hours as they strive to obtain a degree in Human/Social Services and the formal structure for the use of California's Interim State Automated Welfare System (ISAWS) and C-IV System as it relates to determining the eligibility of DHS clients for program-related services.
Action to be taken following Board approval: Purchasing Agent will encumber funds and establish blanket purchase orders necessary for payment of FY 09-10 costs associated with DHS agreements as detailed on the attached spreadsheet. DHS will review and approve invoices upon receipt and forward requests for payment to the Auditor-Controller's Office.
Contact: Janet Walker-Conroy x7272
Concurrences: County Counsel, Risk Management and Human Resources