Title
Department of Human Services recommending the Board approve and authorize the Purchasing Agent to execute Amendment I to Agreement for Services 578-S0911 with New Millennium Contemporary Management dba New Millennium Foster Family Agency (New Millennium FFA), a foster family agency, for the provision of emergency shelter care and/or foster care placement services on an "as-requested" basis, noting Amendment I increases the maximum annual compensation for this perpetual agreement from $100,000 to $200,000 for FY 2010-11 and subsequent fiscal years and allows placement by the Human Services Department and the Probation Department.
FUNDING: Federal and State Social Services Allocation with required County Share of Cost met primarily with realignment resources.
Body
BUDGET SUMMARY: |
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Total Annual NTE Amount |
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$200,000 maximum annual compensation |
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Contract History |
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Original Contract |
$100,000 maximum annual compensation |
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Amendment I |
$100,000 increase in annual compensation |
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Savings |
$ |
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Other |
$ |
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Total Funding Available |
$200,000 maximum annual compensation |
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Change To Net County Cost |
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N/A |
Fiscal Impact/Change to Net County Cost: No change. Emergency shelter care services, which are necessary pending Court-ordered case disposition, require a 15% to 30% County share of cost. Court-ordered foster care placement services require a 40% to 60% County share of cost. The State reimburses the County for the Federal and State share of cost in a varying ratio based on an array of circumstances. A total of $5,976,979 is included in the Department's budget for provision of emergency shelter care and foster care services during FY 2010-11. Funds for these services are budgeted annually based on projected need. The not-to-exceed annual compensation of $200,000 allows for anticipated potential usage.
Compensation: Compensation is based upon the non-negotiable State-assigned authorized rate of the group home/foster family agency providing services to the child placed at the facility. Payments to service provider are made monthly in arrears following notification that a child has been placed at the facility.
Termination: Agreement includes the County's standard Fiscal Considerations termination language as well as a provision for the County to terminate the Agreement without cause in seven (7) calendar days upon written notice.
Reason for Recommendation: On June 2, 2009, the Board authorized the Purchasing Agent to execute Agreement for Services 578-S0911 with New Millennium for the provision of as-needed emergency shelter care and/or foster care placement services for certain children taken into protective custody by DHS. The Agreement was originally established to allow for the transfer of clients when another vendor unexpectedly terminated services. The Agreement was also intended to provide for future placement needs.
By November 2010 the number of children being placed through this agency had escalated to seven (7). The monthly rate for placement is set by the State and depending on the number of children placed through the agency is currently anywhere from $9,256 to $11,635 per month. At this rate, costs would exceed the annual contract limit of $100,000 for the original Agreement. In order to accommodate the placement of children through this agency and meet potential future placement needs, DHS is recommending that the compensation be increased to $200,000 for FY 2010-11 and each subsequent fiscal year.
The Amendment also adds the El Dorado County Probation Department as a party to this Agreement and it shall be authorized to place children at this facility.
Although DHS does not anticipate reaching the $200,000 maximum annual compensation amount for this vendor in this or any other single fiscal year, this annual not-to-exceed amount provides DHS the flexibility necessary to enable accommodation of current demand and any sudden increase in the need for multiple placements with this particular vendor. Working in conjunction with the CAO, the Department has established a tracking system that regularly monitors the level of expenditures for combined placement services as well as for each individual vendor. This tracking system allows DHS to ensure that overall expenditures remain within budget while also allowing sufficient time to amend any individual agreement for which actual placement costs will exceed its annual not-to-exceed maximum compensation amount. Services will only be accessed on an "as needed" and "as requested" basis.
Human Resources has determined that the nature of services provided by the foster family agencies and group homes negates the need for their review and subsequent approval of the Department's intent to contract with each individual vendor.
Purchasing Agent Recommendations: The Purchasing Agent reviewed the Department's request to enter into this Agreement and concurs that it is not necessary to conduct a competitive selection process as the services are court ordered. The Department of Human Services (DHS) maintains purchase of services Agreements with multiple local, state and national vendors for the provision of emergency shelter care services for its clients to ensure that clients can be referred by their caseworker on an "as requested" basis to receive necessary services from the most appropriate and conveniently located vendor. Choice of vendor is based on the specific needs of each individual DHS client.
Action to be taken following Board approval:
1. Purchasing Agent to execute two (2) copies of the approved Amendment I to Agreement 578-S0911 and return one (1) original of the Amendment to Human Services at 3057 Briw Road.
2. Department to distribute the document as appropriate.
Contact: Daniel Nielson, M.P.A., Director, 642-7275
Concurrences: County Counsel, Risk Management, Purchasing Agent and Human Resources.