COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Health Services Agency

DATE:

June 7, 2002

BOARD MEETING DATE:

June 25, 2002

TO:

Honorable Board of Supervisors

FROM:

Margaret Taylor, Director of Health Services

Gale Bataille, Director of Mental Health Services

SUBJECT:

Agreement with Lonny Davis, dba Davis Guest Home

Recommendation

Adopt a resolution authorizing the President of the Board

1.

to execute an agreement with Lonny Davis, dba Davis Guest Home for the provision of residential care services,

2.

to delegate signing authority to the Health Services Director to execute minor amendments and adjustments up to an aggregate of $25,000, and

3.

to authorize the Health Director to negotiate yearly rate increases after the first year.

Background

The Mental Health Services Division has contracted with Davis Guest Home, an out of county residential facility, since May 1999. Davis Guest Home has provided services for hard to place mental health clients who require a high degree of supervision. This contractor accepts some of the most difficult clients in our system of care who might otherwise be in a higher and more costly level of care.

Under the Division's plan for contracted services, residential and supportive services are in the "any qualified provider" category, a category that allows an unlimited number of qualified providers. Any agency can submit a proposal at any time and the proposal will be evaluated on quality and cost factors.

Discussion

Services provided by contractor include room and board; 24-hour, 7-days-a-week supervision; assistance with medication; and support and assistance with daily living skills. This agreement includes the purchase of a total of 3 beds. The facility has been assessed and certified by the Mental Health Services Division.

The FY 2001-02 objectives and actual performance and 2002-03 objectives are as follows:

Performance Measure

2001-02 Objectives

2001-02 Actuals

2002-03 Objectives

Minimum percent of clients discharged to a lower level of care

N/A

33%

33%

Maximum percent of clients discharged to acute care in less than six months

N/A

None

33%

During FY 2001-02 there have been 3 clients, and one has been discharged to a lower level of care.

Vision Alignment

This agreement with Davis Guest Home keeps 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. The agreement contributes to this commitment by providing residential and transitional care for some of the most vulnerable mental health clients.

Fiscal Impact

The term of the agreement is from July 1, 2002, through June 30, 2005. The agreement has been reviewed and approved by Risk Management and County Counsel.

The new contract maximum is $189,534, which covers the three-year term and will be sufficient to pay 3% annual increases in FY 2003-04 and FY 2004-05, if budgeted. For FY 2002-03, $61,320 has been included in the recommended Mental Health Services Division budget. Sales tax provided through realignment will cover 85.5% or $52,429. The remaining $8,891 represents net County cost, which consists of maintenance of effort requirement for realignment. For FY 2002-03 and FY 2003-04, $63,160 and $65,054, respectively, have been included in the recommended budget subject to availability of County funding.

We request that the Director of Health Services be given signing authority to execute amendments and minor modifications up to an aggregate of $25,000.

We further request that the Director of Health Services be authorized to negotiate yearly rate increases after the first year. In no event shall the maximum compensation for the agreement be exceeded.