Title
a. Approve and authorize the Director of Health Services or designee to execute a retroactive Mental Health Services Agreement with Alliance on Aging, Inc., for the provision of mental health prevention services for older adults in the County of Monterey, for a total not to exceed $177,993 for the term beginning July 1, 2026 through June 30, 2027; and
b. Approve and authorize the Director of Health Services or designee to sign up to three future amendments to the Agreement, provided that these amendments do not substantially change the Scope of Services, do not add funds to the Agreement, and are approved by the Office of the County Counsel.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve and authorize the Director of Health Services or designee to execute a retroactive Mental Health Services Agreement with Alliance on Aging, Inc., for the provision of mental health prevention services for older adults in the County of Monterey, for a total not to exceed $177,993 for the term beginning July 1, 2026 through June 30, 2027; and
b. Approve and authorize the Director of Health Services or designee to sign up to three future amendments to the Agreement, provided that these amendments do not substantially change the Scope of Services, do not add funds to the Agreement, and are approved by the Office of the County Counsel.
SUMMARY:
In response to Board Resolution No. 26-180, this Agreement with Alliance on Aging, Inc. will enable their provision of provision of mental health prevention services for older adults in Monterey County, for a total Agreement amount not to exceed $177,993 for the retroactive term beginning July 1, 2026 through June 30, 2027.
DISCUSSION:
In March 2024, California voters approved Proposition 1, enacting the Behavioral Health Services Act (BHSA) to replace the Mental Health Services Act (MHSA) effective July 1, 2026, fundamentally restructuring its associated behavioral health financing and service delivery system. As part of this systemic change, BHSA transitions Prevention and Early Intervention (PEI) activities from county‑administered funding to a statewide Population‑Based Prevention model administered by the California Department of Public Health (CDPH), resulting in funding impacts to many local community‑based organizations in Monterey County whose services do not align with the new BHSA funding categories and requirements. During FY 2026‑27 Budget Hearings and related BHSA updates, the Board of Supervisors directed County Administrative Office (CAO) and Behavioral Health Bureau staff to review impacted providers and identify potential gap‑funding needs to temporarily mitigate the loss of mental health prevention programs serving underserved communities and populations under the new community-driven BHSA Integrated Plan. As per Board Resolution No. 26-180, approved by the Board of Supervisors on July 28, 2026, four providers-Alliance on Aging, Center for Community Advocacy, Centro Binacional para el Desarrollo Indigena Oaxaqueño, and The Village Project-were identified as eligible for one‑time General Fund contingency support totaling $680,000 to sustain limited services during FY 2026‑27 while seeking alternative funding sources.
This agreement is retroactive to July 1, 2026 to support continuity of service delivery following the termination of MHSA PEI component funding, and also accounts for the comprehensive contractor negotiations regarding scope of work, invoicing and insurance requirements taken place following the adoption of Board Resolution No. 26-180.
This work supports the following County of Monterey Health Department’s 2025-2028 Strategic Plan Goal(s): Goal 2: Provide exceptional person-centered care through accessible, community-focused health services. It also supports one of the ten essential public health services, specifically 7. Link people to needed personal health services and assure the provision of health care when otherwise unavailable.
OTHER AGENCY INVOLVEMENT:
The Offices of the County Counsel and Auditor-Controller have reviewed and approved as to legal form and fiscal provisions, respectively.
FINANCING:
This Agreement is funded 100% by General Fund - Contingencies (1001-105011). As part of the Board of Supervisors’ July 7, 2026 direction, appropriations for this Agreement were included in the Health Department Behavioral Health Bureau (Fund 1310, Department 400005) Fiscal Year (FY) 2026-27 Budget. Funding will be transferred from General Fund - Contingencies to the Behavioral Health Bureau to support the costs of this Agreement.
BOARD OF SUPERVISORS STRATEGIC PLAN GOALS:
The recommended action supports the Board of Supervisors' Strategic Plan Goals of Well-Being and Quality of Life by sustaining mental health prevention services to underserved communities and populations for a time-limited period as the contractor transitions off MHSA PEI funding.
Mark a check next to the related Board of Supervisors Strategic Plan Goals:
X Well-Being and Quality of Life
____ Sustainable Infrastructure for the Present and Future
____ Safe and Resilient Communities
____ Diverse and Thriving Economy
____ Dynamic Organization and Employer of Choice
Prepared by: Wesley Schweikhard, Management Analyst II, 755-4865
Approved by: Elsa Mendoza Jimenez, Director of Health Services, 755-4526
Attachments:
Board Report
Mental Health Services Agreement