Inter-Departmental Correspondence

Human Services Agency



May 2, 2002


June 4, 2002



Honorable Board of Supervisors


Maureen D. Borland, Director, Human Services Agency


Yvonne Frazier, Administrator, Alcohol and Other Drug Services


Continuation of Contracts for Alcohol and Drug Services



Adopt a resolution authorizing the Controller to continue payments on Alcohol and Drug Services contracts from July 1, 2002 through September 30, 2002.



Contracts with a number of alcohol and drug treatment providers have terms ending June 30, 2002. Two-year contracts with a term of July 1, 2000 through June 30, 2002 contain alcohol and drug treatment services funded by alcohol and drug block grant funding through the Combined Negotiated Net Amount and Drug/Medi-Cal (NNA) contract with the State, and County funds, as well as nonreimbursable services which are supported entirely through participant fees. Contractors are paid a flat monthly rate for each service provided. Several of the contracts also contain a number of services which will not continue or for which FY 2002-03 funding has not yet been finalized.


Separate fee-for-service agreements initiated in FY 2001-02 will also expire on June 30, 2002. These agreements contain State Substance Abuse and Crime Prevention Act (SACPA)/Proposition 36, and Comprehensive Drug Court Implementation (CDCI) alcohol and drug treatment services, and SB223 drug testing services. Services funded by SACPA/Proposition 36 and CDCI were determined as the result of a Request for Proposals (RFP) process. Contractors providing services under the fee-for-service agreements are reimbursed for services provided, based on an approved unit rate, after the services are provided. All of the contractors are paid from an aggregate total for each funding source.



The FY 2002-03 funding levels for contracted alcohol and drug treatment services are uncertain at this point in the development of the State and County budgets, making it imprudent to negotiate new agreements with the service providers at this time. It is important to assure the continuity of these services, therefore a continuing resolution is requested at this time.


This resolution has been reviewed and approved as to form by County Counsel's office.


Vision Alignment

These agreements keep the commitment to: Ensure basic health and safety for all and goal number 8: Help vulnerable people - the aged, disabled, mentally ill, at-risk youth and others - achieve a better quality of life. These agreements contribute to this commitment and goal by providing individuals and families in San Mateo County with the skills and knowledge necessary to live alcohol- and drug-free lives, which in turn contributes to the health and safety of the communities in San Mateo County.


Fiscal Impact

The term of the continuing resolution is from July 1, 2002 through September 30, 2002. The total payments to contractors under the continuing resolution will not exceed $1,476,378 for the services paid on a flat monthly rate, and $400,398 for services paid on a fee-for-service basis from an aggregate total. Payments to contractors will be limited to those service modalities which are continuing services where funding sources have been identified. There is no additional Net County Cost.