To: County of Sonoma Board of Supervisors
Department or Agency Name(s): Department of Health Services
Staff Name and Phone Number: Tina Rivera, 707-565-4774
Vote Requirement: Majority
Supervisorial District(s): Countywide
Title:
Title
Delegated Authority for State and Federal Revenue Agreements
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Recommended Action:
Recommended action
Adopt a resolution delegating authority to the Director of Health Services, or designee, to accept funding allocations for the County of Sonoma and execute revenue agreements, amendments, and related documents received in fiscal year 2024-2025 as necessary to receive revenue from California state and Federal agencies directly or their third-party administrators for various terms with some being for multiple years, subject to review and approval as to form by Counsel.
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Executive Summary:
Each year the Sonoma County Department of Health Services (hereinafter, “DHS” or “the Department”) requests that the Board of Supervisors delegate authority to the Director of Health Services to accept allocations and execute revenue agreements and amendments as necessary to receive revenue from state and Federal agencies. This item recommends that the Board adopt a resolution, provided as Attachment 1, delegating authority to the Director of Health Services, or designee, to accept funding allocations for DHS and execute revenue agreements, amendments, and related documents received in fiscal year 2024-2025 as necessary to receive revenue from state and Federal agencies. This action by the Board of Supervisors only applies to state and Federal agreements administered directly by state or Federal agencies, or their third-party administrators.
State and Federal funding is utilized to pay for programs that support the Department’s mission, including programs related to mental health, substance use disorders, environmental health, children and family health, emergency preparedness, disease control, and the public health laboratory. The Department’s fiscal year 2024-2025 adopted budget includes approximately $181,590,109 in funds to be received directly from state and Federal agencies or their third-party administrators, of which approximately $107,117,286 million requires execution of an agreement or other legal instrument during fiscal year 2024-2025 to receive. Estimated fiscal year 2024-2025 allocations and agreements are listed in Attachment 2.
This item requests approval from the Board of Supervisors to issue a resolution codifying delegation authority to staff to enter into funding agreements, amendments, and related documents received in fiscal year 2024-2025 with state or Federal agencies or their third-party administrators, subject to review and approval as to form by Counsel. Delegation includes authority that addresses requests of indemnification from the County.
Similarly, on July 11, 2023, per resolution 23-0327, the Board authorized delegated authority to the Director for state and Federal funding agreements totaling $91.8 million in revenues from state and Federal sources. The allocations and agreements executed in fiscal year 2023-2024 under this authority are included in Attachment 2.
Discussion:
It is both practical and an efficient use of County resources to delegate signature authority to the Director of Health Services to accept allocations and execute revenue agreements and amendments to revenue agreements with state and Federal agencies. Throughout each year, the Department must accept state and Federal allocations and execute agreements to facilitate the release of funding for programs. Most state and Federal allocations and contracts are for funds that renew each year. Cost efficiencies associated with a reduced number of Board items will benefit the departments involved in the Board item process, including Health Services, the County Administrator’s Office, Auditor’s Office, County Counsel, and Clerk of the Board. Other advantages include increased compliance with state timelines; more timely receipt of revenues (i.e., improved cash flow) and delivery of services to clients; and more accurate cost plan reporting and expenditure reconciliation.
The allocations in Attachment 2 are a mix of flat rate contracts to support salary, benefits, services, supplies, and contractual costs. Medi-Cal contracts are calculated based upon fee for service and forecasted units of services, which are based upon current services performed and historical trend data.
While the Department attempts to accurately project the revenue associated with state and Federal allocations and agreements through the budgetary process, various factors may result in adjustments to the final revenue received from state and Federal agencies. These factors include increased available funding, changes in state allocation formulas or funding amounts, programmatic changes, changes due to adoption of the state budget, and rollover of unspent prior year funds. Changes in state and Federal revenue amounts will be brought to the Board through the consolidated budget process.
This request is specific to state and Federal revenue and does not include authority to approve services contracts with providers that are financed with state and Federal allocations. Prior board action on June 16, 2024, granted delegated authority to the DHS Director to execute services (expense) contracts. The awarding of services contracts will follow standard procurement process and reviews.
As noted above, Board delegation will be requested annually, thus approval will apply only to revenue agreements received and executed in fiscal year 2024-2025.
State and Federal agencies, and their third-party administrators often seek indemnification from the County, which requires approval from the Board. This item requests approval from the Board of Supervisors to enter into funding agreements, amendments, and related documents from state or Federal agencies or their third-party administrators, received in fiscal year 2024-2025, subject to review and approval as to form by Counsel, should they seek indemnification from the County.
Upon entering into a revenue agreement with the state or Federal government, the County becomes obligated to provide the services specified in the agreement. Failure to meet the requirements of an agreement may result in forfeiture of continued funding during the current term and may result in decreased funding in future years.
Strategic Plan:
N/A
Prior Board Actions:
Most recently, on July 11, 2023, the Board adopted a resolution delegating authority to the Director of Health Services, or designee, to accept funding allocations for the County of Sonoma and execute revenue agreements, amendments, and related documents received in fiscal year 2023-2024 as necessary to receive revenue from state and Federal agencies.
Fiscal Summary
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Expenditures |
FY 24-25 Adopted |
FY 25-26 Projected |
FY 26-27 Projected |
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Budgeted Expenses |
$107,117,286 |
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Additional Appropriation Requested |
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Total Expenditures |
$107,117,286 |
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Funding Sources |
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General Fund/WA GF |
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State/Federal |
$107,117,286 |
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Fees/Other |
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Use of Fund Balance |
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Contingencies |
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Total Sources |
$107,117,286 |
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Narrative Explanation of Fiscal Impacts:
The Department’s fiscal year 2024-2025 adopted budget includes $181,590,109 in revenue received directly from state and Federal agencies, of which approximately $107,117,286 requires execution of an agreement or other legal instrument during fiscal year 2024-2025 to receive. Changes in state and Federal revenue amounts will be brought to the Board through the consolidated budget process.
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Staffing Impacts: |
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Position Title (Payroll Classification) |
Monthly Salary Range (A-I Step) |
Additions (Number) |
Deletions (Number) |
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Narrative Explanation of Staffing Impacts (If Required):
N/A
Attachments:
Attachment 1 - Resolution
Attachment 2 - Estimated Federal & State Grant Revenues FY 2024-2025
Related Items “On File” with the Clerk of the Board:
None