October 21, 1999

The Honorable Board of Supervisors
County of Los Angeles
383 Kenneth Hahn Hall of Administration
500 West Temple Street
Los Angeles, California 90012

Dear Supervisors:

APPROVAL OF THREE NEW MENTAL HEALTH SERVICES AGREEMENTS - LEGAL ENTITY FOR FISCAL YEARS 1999-2000, 2000-2001 AND 2001-2002

(SUPERVISORIAL DISTRICTS 1, 3 AND 4)
(3 VOTES)

IT IS RECOMMENDED THAT YOUR BOARD:

1. Approve and authorize the Chairman to sign the attached three new Mental Health Services Agreements - Legal Entity with Counseling and Research Associates, Inc. dba Masada Homes, Los Angeles Orphans Home Society dba Hollygrove, and Optimist Youth Homes dba Optimist Boys' Home and Ranch, Inc. Approval of this action will enhance mental health services to seriously, emotionally-disturbed (SED) children residing in higher Rate Classification Level (RCL) group homes under contract with the Department of Children and Family Services (DCFS) and/or the Probation Department.

2. Delegate authority to the Director of Mental Health to prepare and sign Amendments to these Mental Health Services Agreements - Legal Entity, provided that: 1) the County's total payments to a contractor under each Agreement for each fiscal year shall not exceed a change of ten percent from the applicable Maximum Contract Amount; 2) any such increases shall be used for additional services or to reflect program and/or policy changes; 3) the Board of Supervisors has appropriated sufficient funds for all changes; 4) approval of

PURPOSE OF RECOMMENDED ACTION:

Board approval is requested to enter into Agreements with Counseling and Research Associates, Inc. dba Masada Homes, Los Angeles Orphans Home Society dba Hollygrove, and Optimist Youth Homes dba Optimist Boys' Home and Ranch to provide enhanced mental health services to SED children residing in higher RCL 12 group homes under contract with DCFS and/or the Probation Department.

JUSTIFICATION:

The Department of Mental Health (DMH) has long recognized the growing number of SED children residing in RCL 12 group homes throughout Los Angeles County. These group homes face increasing challenges to provide adequate treatment and supervision to maintain children in the least restrictive settings. DCFS has consistently requested that DMH enhance treatment services beyond what group homes can provide as part of the DCFS and/or the Probation Department contracts to allow them to manage the very difficult children in their care.

DMH currently contracts with a number of group homes in Los Angeles County to provide day rehabilitation services, including all of the RCL 14 programs and five of the RCL 12 programs. During FY 1998-1999, the Board of Supervisors approved expansion of day rehabilitation services through the use of Early and Periodic Screening, Diagnosis and Treatment (EPSDT) funding to the remainder of the RCL group homes.

The Agreements with Counseling and Research Associates, Inc., Los Angeles Orphans Home Society, and Optimist Youth Homes will enable the contractors to provide day rehabilitation and medication support services enhancing the treatment services beyond what group homes can provide as part of their contract with DCFS and/or the Probation Department.

FISCAL IMPACT:

There is no net County cost impact.

FINANCING:

The Maximum Contract Amount for Counseling and Research Associates, Inc., for FYs 1999-2000, 2000-2001 and 2001-2002 is $2,169,001, which will be funded by $1 in County General Funds (CGF) and $2,169,000 in EPSDT Cash Flow Loan Funds (EPSDT/CFLF).

The Maximum Contract Amount for Los Angeles Orphans Home Society for FYs 1999-2000, 2000-2001 and 2001-2002 is $507,001, which will be funded by $1 in CGF and $507,000 in EPSDT/CFLF.

The Maximum Contract Amount for Optimist Youth Homes for FYs 1999-2000, 2000-2001 and 2001-2002 is $1, which will be funded by CGF.

The EPSDT Program is a federally-mandated, fully-funded State and Federal mental health program for Medi-Cal eligible children and youth under 21 years of age.

FACTS AND PROVISIONS/LEGAL REQUIREMENTS:

Counseling and Research Associates, Inc., a nonprofit agency in Mental Health Service Area 8, was founded in 1989, and provides residential, educational, vocational and counseling services to abused, neglected and delinquent youth. The residential program is comprised of 14 six-bed group homes and an 11-bed orientation facility at RCL 12 for boys and girls between 13 and 18 years of age. The majority of residents attend Masada High School, a juvenile court school operated by the Los Angeles County Office of Education. It has an individually tailored academic program leading to a high school diploma or G.E.D. On the same campus, a ten-week Occupational Therapy Program is conducted, which prepares the resident for entrance to trade school and job placement.

Los Angeles Orphans Home Society, a nonprofit agency in Mental Health Service Area 4, was established in 1880. It's mission is to provide abused and neglected children a safe and nurturing environment where each child can heal and develop emotionally, intellectually, spiritually and physically. Their goal is to help the children achieve essential living skills, join healthy families and become responsible members of society. They are licensed to provide residential treatment to 68 children on their main campus in Hollywood. In addition, they have a six-bed group home for boys located in the San Fernando Valley.

Optimist Youth Homes, a nonprofit agency in Mental Health Service Area 4, was established in 1906. The agency uses a seamless service delivery system to develop individualized treatment programs, which encourages maximum involvement of the child and family in the treatment process. The focus of their treatment is to help children return to or remain in the community, with an emphasis on family stability, abiding by the law and no longer engaging in self-destructive behavior. Optimist Youth Homes has a residential program housing over 90 youths divided among five dormitories. All dormitories have a large staff comprised of childcare workers and social workers who provide a broad range of mental health services. They also have seven satellite group homes in various communities throughout southern California. Optimist Youth Homes also operates a day treatment program for youngsters who live at home but require supportive services such as family preservation counseling, specialized education or a day program addressing chemical dependency.

The term of the Agreements will commence on the date of Board approval through June 30, 2000, with provisions for two automatic one-year renewals.

Clinical and administrative staff of DMH are assigned to supervise and administer the Agreements, evaluate the programs to ensure that quality services are being provided to clients and ensure that Agreements, provisions and departmental policies are being followed.
All of the Agreements include clauses on Unlawful Solicitation, Conflict of Interest, Consideration for Hiring County Employees Targeted for Layoff or Former County Employees on a Re-employment List, Consideration For Hiring Greater Avenues for Independence (GAIN) Participants, Termination For Improper Consideration, Child Support Compliance Program and County's Quality Assurance Plan.

The Mental Health Services Agreements - Legal Entity, has been reviewed and approved as to form by County Counsel, in addition, this proposed action has been reviewed by the Chief Administrative Office and DMH's Fiscal and Program Services staff, DCFS and the Probation Department.

Attachment A describes the Contracting with Minority/Women-Owned Firms Percentage of Ownership in firms used by DMH.

CONTRACTING PROCESS:

In order to access EPSDT funds through DMH, a provider must be Short-Doyle/Medi-Cal (SD/MC) certified and have a contract with DMH. A SD/MC authorizes the provider to provide the Medi-Cal services as defined in the Agreement and establishes access to EPSDT funds to cover the cost of services. New providers who are in a position to deliver EPSDT eligible services may request to contract with DMH.

All group homes that have a current contract with DCFS and/or the Probation Department and a RCL of 12, have been offered an opportunity to contract with DMH to provide EPSDT mental health services. Counseling and Research Associates, Inc., Los Angeles Orphans Home Society, and Optimist Youth Homes have already accepted the offer. Because these Agreements are not based on competitive bidding, notification on the web-site did not occur.

All of these Agreements will be fully-funded by EPSDT funds and there will be no net County cost.

IMPACT ON CURRENT SERVICES:

These Agreements will allow participating group homes to minimize the need for re-placement or psychiatric hospitalization by providing day rehabilitation and medication support to existing mental health services and by stabilizing the children in the safest and least restrictive settings.

NEGATIVE DECLARATION/ENVIRONMENTAL IMPACT REPORTS:

This subject does not apply.

CONCLUSION:

When approved, it is requested that the Executive Officer, Board of Supervisors prepare four (4) fully-executed copies of each Agreement; notify the Department of Mental Health's Contracts Development and Administration Division at (213) 738-4684, when the documents are available.

Respectfully submitted,

Marvin J. Southard, D.S.W.
Director of Mental Health

MJS:JD:MAR:FM

Attachments (3)

c: Chief Administrative Officer
Executive Officer, Board of Supervisors
County Counsel
Chairperson, Mental Health Commission

C:\My documents\Contracts\Level 12 Board Letter

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