REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
April 9, 2024
FROM
LUTHER SNOKE, Chief Executive Officer, County Administrative Office
SUBJECT
Title
Non-Financial Amendment to Community Care Expansion Preservation Program Funding Agreement with Horne LLP
End
RECOMMENDATION(S)
Recommendation
1. Acknowledge assignment of Community Care Expansion Preservation Program Funding Agreement No. 23-333 from Advocates for Human Potential, Inc. to Horne LLP, as the agreement manager for the California Department of Social Services.
2. Approve non-financial Amendment No. 1 to Community Care Expansion Preservation Program Funding Agreement No. 23-333 with Horne LLP to modify the deadlines for obligating and liquidating Program funds, and extend the contract term by 21 months, for a total contract period of May 9, 2023 through March 31, 2029, with no change to the contract amount of $13,833,106.
3. Authorize the Chief Executive Officer or County Chief Financial Officer to execute and submit any non-substantive amendments to Agreement No. 23-333 or any additional or supplemental documentation as may be required by the California Department of Social Services or Horne LLP, in connection with the allocation from the Community Care Expansion Preservation Program Fund, subject to review by County Counsel.
4. Direct the Chief Executive Officer or County Chief Financial Officer to transmit any amendments related to Agreement No. 23-333 to the Clerk of the Board of Supervisors within 30 days of execution.
(Presenter: Luther Snoke, County Executive Officer, 387-4811)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Promote the Countywide Vision.
Operate in a Fiscally Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
Pursue County Goals and Objectives by Working with Other Agencies.
FINANCIAL IMPACT
Approval of Amendment No. 1 to the Community Care Expansion (CCE) Preservation Program Funding Agreement No. 23-333 (Amendment No. 1) will not result in the use of Discretionary General Funding (Net County Cost). Amendment No. 1 is non-financial in nature and updates Agreement No. 23-333 to modify the obligation and liquidation deadlines for the Operating Subsidy Payments and Capital Projects Program components. The total funding amount of $13,833,106 remains unchanged under Amendment No. 1.
BACKGROUND INFORMATION
The CCE Preservation Program is an effort initiated by the California Department of Social Services (CDSS), with an approximate budget of $249 million, made available through noncompetitive allocations to counties that have opted into the program. The program provides two forms of direct financial assistance to eligible Adult Residential Facilities (ARF), Residential Care Facilities for the Elderly (RCFE), and Residential Care Facilities for the Chronically Ill (RCFCI):
• Operating Subsidy Payments (OSP): Funds may be used to preserve and avoid the closure of ARFs, RCFEs, and RCFCIs through operational financial support.
• Capital Projects (CP): Funds may be applied to physical repairs or required upgrades to ARFs, RCFEs, and RCFCIs to prevent closure and/or meet licensing requirements.
San Bernardino County (County) recognized the vital role that ARFs, RCFEs, and RCFCIs play in providing care to vulnerable populations within the community. To ensure the ongoing reliability and sustainability of the long-term care continuum, the County agreed to participate in the CCE Preservation Program.
On May 9, 2023 (Item No. 23), the Board of Supervisors (Board) approved the CCE Implementation Plan and CCE Preservation Program Funding Agreement No. 23-333, including non-standard terms, with Advocates for Human Potential, Inc. (AHP) in the not-to-exceed amount of $13,833,106. The funding consists of $5,954,197 in OSP, which was to be obligated by June 30, 2027, and exhausted by June 30, 2029; and $7,878,909 in CP, which was to be obligated by June 30, 2024, and exhausted by December 31, 2026.
Under the original contract between the County and AHP, AHP’s obligations under the contract could be assigned without the County’s consent. On July 11, 2023, the CDSS informed the County that third-party administration of the CCE Program transitioned from AHP to Horne LLP (Horne) to implement and provide administration for the Program. The transition was part of the ongoing mission by CDSS to expand the state’s housing and care continuum, improve housing stability, and prevent the cycle of homelessness or unnecessary institutionalization.
Amendment No.1 will modify the deadlines for obligating and liquidating OSP and CP Program funds to align with the new timelines that have been issued by CDSS. Under Amendment No.1, the funding for $5,954,197 in OSP must be obligated by June 30, 2027, and exhausted by March 31, 2029; and the funding for $7,878,909 in CP must be obligated by December 31, 2026, and exhausted by September 30, 2028.
The County Administrative Office recommends approval of Amendment No. 1, as it will provide funding to support ARFs, RCFEs, and RCFCIs who provide care to vulnerable populations within the community.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Julie Surber, Principal Assistant County Counsel, 387-5455) on March 18, 2024; Risk Management (Victor Tordesillas, Deputy Executive Officer, 387-3101) on March 19, 2024; Finance (Joon Cho, Chief Administrative Analyst, 387-5402) on March 14, 2024; and County Finance and Administration (Matthew Erickson, County Chief Financial Officer, 387-5423) on March 19, 2024.