To: County of Sonoma Board of Supervisors
Department or Agency Name(s): Department of Health Services
Staff Name and Phone Number: Nolan Sullivan, 707-565-4774
Vote Requirement: Majority
Supervisorial District(s): Countywide
Title:
Title
Delegated Authority for State and Federal Agreements
End
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, data sharing, participation and other agreements, amendments, and related documents, including documents containing required indemnification language, received in fiscal year 2025-2026 as necessary to receive revenue from California state and Federal agencies directly or from their third-party administrators for various term lengths, with some being for multiple years, subject to review and approval as to content and 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 your Board delegate authority to the Director of DHS, or designee, to accept allocations and execute revenue, data sharing, participation and other agreements, amendments, and related documents, including documents containing required indemnification language, as necessary to receive revenue from state and Federal agencies.
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, homelessness services, children and family health, emergency preparedness, disease control, and the public health laboratory. The Department’s fiscal year 2025-2026 adopted budget includes approximately $221,651,809 in funds to be received directly from state and Federal agencies or their third-party administrators, of which approximately $150,701,984 requires execution of an agreement or other legal instrument during fiscal year 2025-2026 to receive. Estimated fiscal year 2025-2026 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 the DHS Director, or their designee, to enter into revenue, data sharing, participation and other agreements, amendments, and related documents, including documents containing State and Federal agency required indemnification language, received in fiscal year 2025-2026 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. Changes to prior or longstanding language in Federal or state agreements that might contradict existing Board policy direction will be reviewed with Counsel and brought to the Board before agreement if they are contravened by Board statements and positions.
Discussion:
It is both practical and an efficient use of County resources to delegate signature authority to the Director of Health Services, or designee, to accept allocations and execute revenue, data sharing, participation and other agreements, amendments and related documents, including documents containing State and Federal agency required indemnification language 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, and many times grantors require 30-day or less turn-around times for agreement signatures. 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 these amounts in 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, new unforeseen grant opportunities, and rollover of unspent prior year funds. Changes in State and Federal revenue amounts will be brought to the Board through the quarterly consolidated budget adjustment process.
This request is specific to State and Federal revenue, data sharing, participation and other agreements, amendments and related documents and does not include authority to approve services contracts with providers that are financed with state and Federal allocations. A separate Board item has been submitted requesting delegated authority to the DHS Director to execute specific expense contracts for FY 2025/26.
As noted above, Board delegation will be requested annually, thus approval will apply only to agreements received and executed in fiscal year 2025-2026.
All agreements received by the Department will be reviewed with Counsel and brought to the Board before agreement if they contravene Board policy directives and positions.
Strategic Plan:
This item directly supports the County’s Five-year Strategic Plan and is aligned with the following pillar, goal, and objective.
Pillar: Organizational Excellence
Goal: Goal 4: Seek out grant funding to enhance programs and improve infrastructure
Objective: Objective 1: Secure a total of $60 million in grant funding by 2026 for strategic priorities, including technology tools, climate resiliency, and other capital projects.
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
Most recently, on July 23, 2024, 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 2024-2025 as necessary to receive revenue from State and Federal agencies.
Fiscal Summary
|
Expenditures |
FY 25-26 Approved |
FY26-27 Projected |
FY 27-28 Projected |
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Budgeted Expenses |
$150,701,984 |
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Additional Appropriation Requested |
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Total Expenditures |
$150,701,984 |
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Funding Sources |
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General Fund/WA GF |
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State/Federal |
$ 150,701,984 |
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Fees/Other |
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Use of Fund Balance |
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General Fund Contingencies |
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Total Sources |
$ 150,701,984 |
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Narrative Explanation of Fiscal Impacts:
The Department’s fiscal year 2025-2026 recommended budget includes $221,651,809 in revenue received directly from State and Federal agencies. Of this amount, approximately $150,701,984 will require the execution of an agreement or other legal instrument during FY 2025-2026 to be received. Any changes to State and Federal funding will be presented 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):
None
Attachments:
Attachment 1 - Resolution
Attachment 2 - Estimated FY 2025-2026 State and Federal Allocations
Related Items “On File” with the Clerk of the Board:
None