Title
Approve and authorize the Director of Health or Assistant Director of Health to execute an Amendment No. 1 to the Central California Alliance for Health Agreement A-13329 for Medi-Cal Capacity Grant 0616-MCHD-CS-CI (“Agreement”), on behalf of Monterey County Health Department, Clinic Services Bureau (“County”), reducing the original grant allocation from $2,500,000 to $497,500 for the support of equipment and furnishing costs at the Seaside Family Health Center.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Approve and authorize the Director of Health or Assistant Director of Health to execute an Amendment No. 1 to the Central California Alliance for Health Agreement A-13329 for Medi-Cal Capacity Grant 0616-MCHD-CS-CI (“Agreement”), on behalf of Monterey County Health Department, Clinic Services Bureau (“County”), reducing the original grant allocation from $2,500,000 to $497,500 for the support of equipment and furnishing costs at the Seaside Family Health Center.
SUMMARY/DISCUSSION:
Central California Alliance for Health (CCAH) established the Medi-Cal Capacity Grant Program to support health care providers and community organizations whose efforts help to advance the mission of CCAH, which is to provide timely access to quality health care services and to increase Medi-Cal capacity in their service area. In June of 2016, the Director of Health notified the Board of Supervisors and the County Administrative Officer of the intent to submit an application to CCAH for the Medi-Cal Capacity Grant in the amount of $2,500,000. Grant requirements restrict the use of funds for capital expenditures only, which include construction costs, equipment and furnishings that are necessary for the delivery of care or equipment essential to the operation of the facility and must be incurred by the grant recipient.
In early September of 2016, Monterey County Health Department was notified by CCAH that it had been awarded the Capital Implementation grant for a maximum amount of $2,500,000. This funding was intended to help off-set the County’s costs for new construction of the clinic in Seaside but unfortunately per the grant requirements, funds may only be used for the purpose of paying expenses that are actually incurred by Grantee in carrying out the Statement of Services. The County currently has a (20) twenty-year lease agreement with Community Hospital Properties for the 1150 Fremont Boulevard, Seaside, location of the current Seaside Family Health Center as well as the new construction in the amount up to $10,000,000 for a new 19,000 square foot integrated health center which disqualifies the County from being eligible for the capital portion of the capacity grant.
In early March 2017, Monterey County Health Department was notified by CCAH that the total grant award would be modified and provided two options:
1. Maintain agreement with Community Health Properties (CHP) to pay the direct construction costs for the Seaside Clinic, use Alliance grant funding of up to $407,500 for the Equipment/Furnishing costs included in the approved project budget, and return the remainder of the $1,125,000 initial payment made on November 4, 2016. Ten Percent would be withheld for verification of project completion and equipment purchase. Per Section 11 of Grant Agreement, the County would be required to return $677,250 of the funded grant amount to the Alliance. Upon receipt of the returned funds, the Alliance would amend the Grant Agreement to only include the Equipment/Furnishing costs. It is important to note that if this option is pursued, the County (Clinic Services) will exhaust its Capital Grant opportunity with the Alliance and cannot apply for additional Capital Grant funding.
2. Return the $1,125,000 disbursed for the first grant payment on November 4, 2016 and notify the Alliance of the County’s intent to terminate the Grant Agreement which awarded $2,500,00 to the County for the construction of the Seaside Family Health Center. If the Grant Agreement is terminated, the County (Clinic Services) would be eligible to apply for a different capital project in the future.
The Monterey County Health Department decided to pursue option number one because it would provide funding for Equipment and Furnishing costs incurred in the current Seaside Clinic project. The grant amount shall not exceed $497,500.
Approval of the recommended action will allow the Monterey County Health Department’s Clinic Services Bureau to receive the benefit of the CCAH Grant Award and continue to meet the need for quality healthcare services and health access for our community.
This work supports the Monterey County Health Department 2011-2015 Strategic Plan initiative to: Ensure access to culturally and linguistically appropriate, customer-friendly, quality health services. It also supports one or more 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, and 8) Assure competent public and personal health care workforce.
OTHER AGENCY INVOLVEMENT:
County Counsel and Auditor-Controller have reviewed and approved the Agreement as to legal form and fiscal provisions, respectively.
FINANCING:
The CCAH Medi-Cal Capacity Capital Implementation program grant is for a maximum of $497,500. There are sufficient appropriations and revenues included in Health Department’s FY 2016-17 Adopted Budget (001-4000-HEA007-8105). This Agreement will be included in Health Department’s FY 2017-18 Requested Budget as needed, if agreement is not fully expended in FY 2016-17.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
Check the related Board of Supervisors Strategic Initiatives:
☐Economic Development:
• Through collaboration, strengthen economic development to ensure a diversified and healthy economy.
☐Administration:
• Promote an organization that practices efficient and effective resource management and is recognized for responsiveness, strong customer orientation, accountability and transparency.
☒Health & Human Services:
• Improve health and quality of life through County supported policies, programs, and services; promoting access to equitable opportunities for healthy choices and healthy environments in collaboration with communities.
☐Infrastructure:
• Plan and develop a sustainable, physical infrastructure that improves the quality of life for County residents and supports economic development results.
☐Public Safety:
• Create a safe environment for people to achieve their potential, leading businesses and communities to thrive and grow by reducing violent crimes as well as crimes in general.
Prepared by: Carmen Gil, MAIII, 8997
Approved by: Elsa Jimenez, Director of Health, 4526
Attachments:
Amendment No. 1 is on file with the Clerk of the Board
Agreement is on file with the Clerk of the Board