REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 18, 2025
FROM
GEORGINA YOSHIOKA, Director, Department of Behavioral Health
SUBJECT
Title
Amendment to Contract with Step Up On Second Street, Inc. for Full Service Partnership Services
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 2 to Contract No. 21-439 with Step Up On Second, Inc. for Full Service Partnership services, decreasing the total contract amount by $1,944,000 from $42,524,650 to $40,580,650 with no change to the contract period of July 1, 2021, through June 30, 2026.
(Presenter: Georgina Yoshioka, Director, 252-5142)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
This item does not impact Discretionary General Funding (Net County Cost). The decrease in the amount of $1,944,000 for Full Service Partnership (FSP) will result in lower use of Medi-Cal Federal Financial Participation and Mental Health Services Act funding. Adequate appropriation and revenue have been included in the Department of Behavioral Health’s (DBH) 2024-25 budget and will be included in the 2025-26 recommended budget.
BACKGROUND INFORMATION
DBH is responsible for providing mental health and substance use disorder (SUD) services to county residents experiencing severe mental illness and/or SUD. Since 2016, DBH has maintained a unique partnership with Step Up On Second, Inc. (SUOS) to provide FSP services to chronically homeless individuals who suffer from mental illness. In addition, FSP program consists of crisis intervention/stabilization, family education, peer support, treatment programs such as behavioral health conditions in an integrated fashion, and 24/7 access to an interdisciplinary team of behavioral health professional staff and peer advocates. The services provided by SUOS promote adaptive functioning in the community, with the goals of maintaining housing, preventing unnecessary re-admission to acute psychiatric hospitals, and reducing reincarceration.
The FSP program is a collaborative relationship between the FSP provider and clients, through which the contractor plans and provides the full spectrum of community services (mental and non-mental health services), so the client can achieve identified goals.
On June 8, 2021 (Item No. 27), the Board of Supervisors (Board) approved Contract No. 21-439 with SUOS to provide FSP services to chronically homeless individuals who suffer from mental illness, in the amount of $30,442,150 for the period of July 1, 2021, through June 30, 2026.
On March 15, 2022 (Item No. 18), the Board approved Amendment No. 1 to Contract No. 21-439 with SUOS for FSP services, increasing the total contract amount by $12,082,500, from $30,442,150 to $42,524,650, with no change to the contract period of July 1, 2021, through
June 30, 2026.
Based on historical milestones, DBH estimates that a balance of $1,992,021 will remain unspent at the end of this contract. DBH recommends reducing the available spending by $1,944,000 ($972,000 each from 2024-25 and 2025-26) and lowering the contract amount accordingly, with the remaining $48,021 to be reallocated in order to increase resources available for other programs and services.
With the recommended amendment, SUOS will provide FSP program services annually to approximately 444 Transitional Age Youth (18-25) and adults (age 26 or older) at an estimated cost of $17,661 per client.
DBH will implement mechanisms to regularly review 1) client service data and progress, conduct site visits and annual monitoring to ensure performance and compliance standards of the contract(s) are met; 2) applicable claims data and claims for reimbursement to ensure fidelity and accuracy of service billing and optimization of Medi-Cal reimbursement in alignment with Contract terms and Department of Health Care Services billing requirements; and 3) provider invoices administratively and programmatically to ensure client and/or bed counts are accurate prior to payment processing.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by Behavioral Health Contracts (Lisa Rivas-Ordaz, Contracts Supervisor, 383-3940) on May 7, 2025; County Counsel (Dawn Martin, Deputy County Counsel, 387-5455) on May 13, 2025; Finance (Paul Garcia, Administrative Analyst, 386-8392) on June 2, 2025; and County Finance and Administration (Cheryl Adams, Deputy Executive Officer, 388-0332) on June 2, 2025.