Title
a. Accept and approve the revised Substance Use Disorder (SUD) Services Agreement (Agreement) boilerplate containing County’s standard risk provisions of insurance and indemnification, for the provision of SUD treatment services to clients with substance use disorders by County service providers;
b. Approve and authorize the Director of Health Services or designee to execute the standard template agreement with the following SUD providers each with a term of July 1, 2026 through June 30, 2027 and each in the following not to exceed contract amounts:
i. Community Human Services (CHS) for a total maximum amount not to exceed $6,461,727;
ii. Door to Hope (DTH) for total maximum amount not to exceed $2,361,003;
iii. Sun Street Centers (SSC) for a total maximum amount not to exceed $9,958,500;
iv. The Epicenter for a total maximum amount not to exceed $169,628, and
v. Valley Health Associates (VHA) for a total maximum amount not to exceed $2,305,552.
c. Approve and authorize the Director of Health Services or designee to execute a standard template agreement with additional providers for substance use disorder treatment and related services, during Fiscal Year 2026-27, where the contract amount for each agreement with each additional provider does not exceed $200,000 and where the aggregate for all contracts with additional providers does not exceed $2,000,000, and
d. Approve and authorize the Director of Health Services or designee to approve up to three future amendments for each Agreement listed in paragraph (b) above, which in the aggregate does not exceed 10% ($2,325,641) of the original Agreement amount and which do not significantly change the scope of services.
Report
RECOMMENDATION:
It is recommended that the County of Monterey Board of Supervisors:
a. Accept and approve the revised Substance Use Disorder (SUD) Services Agreement (Agreement) boilerplate containing County’s standard risk provisions of insurance and indemnification, for the provision of SUD treatment services to clients with substance use disorders by County service providers;
b. Approve and authorize the Director of Health Services or designee to execute the standard template agreement with the following SUD providers each with a term of July 1, 2026 through June 30, 2027 and each in the following not to exceed contract amounts:
i. Community Human Services (CHS) for a total maximum amount not to exceed $6,461,727;
ii. Door to Hope (DTH) for total maximum amount not to exceed $2,361,003;
iii. Sun Street Centers (SSC) for a total maximum amount not to exceed $9,958,500;
iv. The Epicenter for a total maximum amount not to exceed $169,628, and
v. Valley Health Associates (VHA) for a total maximum amount not to exceed $2,305,552.
c. Approve and authorize the Director of Health Services or designee to execute a standard template agreement with additional providers for substance use disorder treatment and related services, during Fiscal Year 2026-27, where the contract amount for each agreement with each additional provider does not exceed $200,000 and where the aggregate for all contracts with additional providers does not exceed $2,000,000, and
d. Approve and authorize the Director of Health Services or designee to approve up to three future amendments for each Agreement listed in paragraph (b) above, which in the aggregate does not exceed 10% ($2,325,641) of the original Agreement amount and which do not significantly change the scope of services.
SUMMARY:
The County of Monterey Health Department, Behavioral Health Bureau (BHB), currently utilizes a Board-approved SUD Services Agreement (“Agreement”) boilerplate to execute agreements with contractors providing substance use disorder services to eligible Medi-Cal beneficiaries of Monterey County.
DISCUSSION:
Behavioral Health seeks Board approval of a revised and updated standard boilerplate agreement drafted in accordance with the requirements for contract payment reimbursement and cost and revenue reporting of the California Advancing and Innovating Medi-Cal (CalAIM) program a multi-year California Department of Health Care Services (DHCS) initiative to improve the quality of life and health outcomes of our population by implementing a broad delivery system, program, and payment reform across the Medi-Cal program. In addition, as part of BHB’s Drug Medi-Cal Organized Delivery System (DMC-ODS) Waiver and Substance Use Block Grant (SUBG) services, BHB updated the Agreement’s boilerplate language to remain in compliance with our contract with DHCS.
The County currently has SUD Agreements, which will expire June 30, 2026, with the following local providers:
• Agreement A-17392 with CHS for a current contracted dollar amount of $5,817,275. CHS provides, residential services for adults, outpatient group and individual therapy for adults including case management and Medication Assisted Treatment (MAT). In addition to narcotic treatment services such as methadone dosing, CHS also provides Buprenorphine, Disulfiram and Narcan.
• Agreement A-17393 with DTH for a current contracted dollar amount of $2,291,451. DTH provides residential services for adults, outpatient group and individual therapy for adults including case management and recovery services.
• Agreement A-17394 with SSC for a current contracted dollar amount of $7,690,955. SSC provides residential services for adults, outpatient group and individual therapy for youth and adults including case management and recovery services. SSC also provides prevention services for youth, parents and caretakers.
• Agreement A-17395 with The Epicenter for a current contracted dollar amount of $169,628. The Epicenter provides Friday Night Live (FNL)/Club Live (CL) SUD Prevention Program services to both transition age youth of High School age and youth in our community.
• Agreement A-17396 with VHA for a current contracted dollar amount of $1,718,007. VHA provides outpatient group and individual therapy for adults and youth including case management and MAT. In addition to narcotic treatment services such as methadone dosing, VHA also provides Buprenorphine, Disulfiram and Narcan.
Both the current Agreement template and the new standard agreement template incorporates the County standard risk provisions for insurance and indemnification.
To ensure continuity in the provision of SUD services to eligible residents in Monterey County, the Department seeks authorization to execute new SUD Agreements with CHS, DTH, SSC, The Epicenter and VHA effective July 1, 2026, utilizing the updated SUD standard agreement boilerplate.
Behavioral Health is submitting this comprehensive board report to enhance contracting efficiency by allowing the Director of Health Services or designee to execute agreements for SUD services without having to request separate Board approval for each agreement. Behavioral Health seeks to enter into new agreements with contractors that historically have provided quality SUD treatment services to County residents for many years. The providers listed in the Title Section, paragraph (b) have agreed to the County’s standard boilerplate insurance and indemnification provisions. The Department will continue to secure Board approval for amendments to any agreements that significantly change the scope of services and in total exceed the 10% of original agreement amount.
This work supports one of the County of Monterey Health Department 2025-2028 Strategic Plan Goal(s): 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 Office of County Counsel, Risk Management, and Auditor-Controller have reviewed and approved the revised County of SUD Services Agreement template (“standard template agreement”) as to legal form and fiscal provisions, respectively and are supportive of request to authorize the Director of Health or designee to execute agreements with identified providers and others meeting County standard agreement requirements.
FINANCING:
The funds for these agreements are included in the Health Department Behavioral Health (Fund 1310, Department 400005) FY 2026-27 Adopted Budget. Approval of this action has no impact on the County General Fund.
BOARD OF SUPERVISORS STRATEGIC PLAN GOALS:
This Agreement will create a safe environment for people by allow continued access to substance use services for eligible residents within the community, aligning with the Strategic Plan Goal of Well-Being and Quality of life.
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: Rose Moreno, Management Analyst III, 755-4716
Approved by: Elsa Mendoza Jimenez, Director of Health Services, 755-4526
Attachment:
Board Report
Attachment A - County of Monterey Substance Use Disorder Services Agreement Boilerplate