Title
a. Approve and authorize the Director of Health Services or designee to execute a Renewal and Amendment No. 2 to Standard Agreement No. A-17285 between the County of Monterey and Arlene Guzman Corporation dba Thought Link for the continued provision of services related to consultation and implementation of Behavioral Health Transition from the Mental Health Services Act to the Behavioral Health Services Act, adding $583,914 for a total revised contract amount of $1,194,914 and adding six months for a revised term of January 1, 2025 to December 31, 2026; and
b. Approve and authorize the Director of Health Services or designee to execute up to three (3) future amendments to the Agreement that do not exceed 10% ($119,491) of the revised Agreement amount, do not significantly change the scope of services, and do not exceed a revised maximum amount of $1,194,914 subject to approval by the Office of 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 Renewal and Amendment No. 2 to Standard Agreement No. A-17285 between the County of Monterey and Arlene Guzman Corporation dba Thought Link for the continued provision of services related to consultation and implementation of Behavioral Health Transition from the Mental Health Services Act to the Behavioral Health Services Act, adding $583,914 for a total revised contract amount of $1,194,914 and adding six months for a revised term of January 1, 2025 to December 31, 2026; and
b. Approve and authorize the Director of Health Services or designee to execute up to three (3) future amendments to the Agreement that do not exceed 10% ($119,491) of the revised Agreement amount, do not significantly change the scope of services, and do not exceed a revised maximum amount of $1,194,914 subject to approval by the Office of County Counsel.
SUMMARY:
In March 2024, voters approved Proposition 1, which reformed the Mental Health Services Act (MHSA) into the Behavioral Health Services Act (BHSA), and established funding for behavioral health facility infrastructure through a general obligation bond. This initiative, called Behavioral Health Transformation (BHT), establishes several new state-mandated deliverables for counties with associated deadlines: Integrated Plan (IP) due to the Department of Health Care Services (DHCS) by July 2026, BHSA Individual Level Service reporting - Implementation required by January 2027, and Behavioral Health Outcomes, Accountability and Transparency Report (BHOATR) - Draft submission due January 30, 2028.
BHT aims to improve access to care, enhance accountability and transparency in county-administered behavioral health services, and expand the capacity of facilities across California. It will also standardize county reporting for better tracking of BHSA funding alongside other public behavioral health funding.
DISCUSSION:
The Behavioral Health Transformation (BHT) initiative established a compressed timeline for counties to meet new state requirements. Beginning January 1, 2025, counties entered an eighteen-month transition period to implement BHSA. Since December 2024, the Department of Health Care Services (DHCS or the State) has issued comprehensive policy manuals in phases covering BHSA fund use, community program planning, and reporting requirements. The State released the financial reporting component of this guidance, the Behavioral Health Outcomes, Accountability, and Transparency Report, in August 2026.
Given the volume and pace of new state policy, the County needs continued consultation support to interpret this guidance, prepare for the Integrated Plan and ISL reporting deadlines, and implement the newly released BHOATR requirements.
Renewal and Amendment No. 2 is submitted for the period of July 1, 2026, through December 31, 2026, to ensure uninterrupted consultation services after the original agreement expired on June 30, 2026.
OTHER AGENCY INVOLVEMENT/COMMITTEE ACTIONS:
The Office of County Counsel has reviewed and approved this renewal and amendment No. 2 as to form, and the Auditor-Controller has reviewed and approved as to payment provisions.
FINANCING:
This Agreement is funded by Mental Health Services Act (MHSA) (100%) for services occurring before July 1, 2026, and Behavioral Health Services Act (BHSA) for services occurring on or after July 1, 2026. The funds for this Agreement are included in the Health Department Behavioral Health Bureau (HEA012, Unit 8410) FY 2024-25 Adopted Budget. The funds for this Agreement for FY 2025-26 are included in the Health Department Behavioral Health Bureau (HEA012, Unit 8410) FY 2025-26 Adopted Budget. The funds for this Agreement for FY 2026-27 are included in the Health Department Behavioral Health Bureau (Fund 1310, Department 400005) FY 2026-27 Adopted Budget.
BOARD OF SUPERVISORS STRATEGIC PLAN GOALS:
This agreement does not fall into one of the Strategic Plan Goals; rather, it falls under the Administrative section, as it will provide fiscal and technical support to staff to effectively navigate state and federal requirements.
Check the related Board of Supervisors Strategic Plan Goals:
____ Well-Being and Quality of Life
____ Sustainable Infrastructure for the Present and Future
____ Safe and Resilient Communities
____ Diverse and Thriving Economy
_X__Administrative - Behavioral Health Transition from Mental Health Services Act to
Behavioral Health Services Act.
Prepared by: Shannon Castro, Management Analyst III, 279-3335
Approved by: Elsa Mendoza Jimenez, Director of Health Services, 755-4526
Attachments:
Board Report
Renewal and Amendment No. 2
Amendment No. 1
Original Agreement