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; Jan Cobaleda-Kegler, 707-565-5157
Vote Requirement: 4/5th
Supervisorial District(s): Countywide
Title:
Title
Behavioral Health Service Agreements
End
Recommended Action:
Recommended action
A) Authorize the County Executive Officer, or designee, to execute agreements and/or amendments, subject to review and approval as to form by County Counsel, as follows:
i) A second amendment with California Mental Health Services Authority for the “Connex” managed interoperability software as a service agreement, increasing the original contract amount by $157,500 for a new not-to-exceed amount of $506,108, effective from January 1, 2026 through December 31, 2026.
ii) A third amendment with Psynergy Programs, Inc. for Residential Care Facility services, effective retroactively to August 13, 2025, increasing the original contract amount by $700,000 for a new not-to-exceed amount of $4,330,776, through June 30, 2027.
B) Authorize the County Executive Officer, or designee, to execute modifications to the agreements associated with this Item in order to address changes in service needs, payment or reimbursement methodologies, subject to available funding as well as review and approval by County Counsel.
C) Adopt a Resolution authorizing budgetary adjustments to the Department of Health Services Fiscal Year 2025-2026 Adopted Budget, increasing appropriations by $510,000 to support the increased contract costs. (4/5th Vote Required)
end
Executive Summary:
The Department of Health Services is requesting delegated authority for the County Executive Officer, or designee, to execute the following amendments for behavioral health-related services:
• A second amendment with California Mental Health Services Authority for the “Connex” managed interoperability Software as a Service agreement;
• A third amendment with Psynergy Programs, Inc. for Residential Care Facility services.
The Department of Health Services is also requesting appropriations in the amount of $510,000 to support the increase in contracts.
These agreements strengthen the Department of Health Service's ability to deliver a coordinated continuum of behavioral health care - from prevention and early intervention to crisis stabilization, inpatient treatment, and long-term recovery - while reducing compliance risks and enhancing service quality and safety.
Discussion:
The mission of the Sonoma County Department of Health Services (DHS), Behavioral Health Division, is to promote recovery and wellness for County residents by delivering a full spectrum of mental health and substance use disorder services-from prevention and early intervention to treatment, aftercare, and recovery. To achieve this, DHS partners with a broad network of contracted providers offering clinical and administrative behavioral health services.
Interoperability Software Services - California Mental Health Services Authority (CalMHSA)
Term: January 1, 2024 through December 31, 2026
DHS currently contracts with CalMHSA to provide “CalMHSA Connex,” a managed Interoperability Software as a Service solution (the “Services”), to assist Sonoma County in meeting state and federal interoperability requirements. CalMHSA Connex facilitates the exchange of protected health information, personally identifiable information and other information between organizations and assists participants in connecting to larger national exchange networks.
The California Department of Health Care Services will be issuing a new Behavioral Health Information Notice (BHIN <https://www.dhcs.ca.gov/Documents/DRAFT-25-XXX-Interoperability-Requirements-for-MHPs-and-DMC-ODS-Plans.pdf>) soon that will outline requirements for real-time behavioral health data sharing under California Advancing and Innovating Medi-Cal, specifying methodologies, data elements, and responsibilities for counties and providers. The new requirements will necessitate one-time implementation costs of $72,500 and ongoing annual costs of $107,000. $22,000 of these implementation and ongoing costs will be covered with existing funds in the contract. Of the $157,500 being added to the agreement at this time, $110,000 will be for FY 2025-2026 and $47,500 will be for FY 2026-2027. All expenditures associated with this agreement, including the additional funds being added at this time, are reimbursable through California’s Proposition 30, which provides reimbursement to counties for specific state-mandated programs.
Residential Care Services - Psynergy Programs Inc.
Term: July 1, 2024 through June 30, 2027
DHS currently contracts with Psynergy Programs, Inc. to provide residential and housing services to individuals diagnosed with Serious Mental Illness and Serious Persistent Mental Illness whose level of functioning, symptoms, and psychiatric history necessitate service intervention to maintain the individual in community settings.
While DHS makes annual projections of service volume and resource needs, actual demand can exceed forecasts. Increased utilization of the vendor’s services in FY 2025-2026 to date has resulted in the need to increase the contract’s maximum payment obligation in order to ensure timely payments to the provider. DHS is therefore requesting delegated authority to increase the agreement by a total of $700,000 ($400,000 for FY 2025-2026 and $300,000 for FY 2026-2027) to cover the unanticipated demand and ensure continuity of care.
Strategic Plan:
This item directly supports the County’s Five-year Strategic Plan and is aligned with the following pillar, goal, and objective.
Pillar: Healthy and Safe Communities
Goal: Goal 1: Expand integrated system of care to address gaps in services to the County’s most vulnerable.
Objective: Objective 3: Create a “no wrong door” approach where clients who need services across multiple departments and programs are able to access the array of services needed regardless of where they enter the system.
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
July, 8, 2025 - Department of Health Services Delegated Authority for Service Agreements
May 6, 2025 - Behavioral Health Services Agreements
July 16, 2024 - DHS Delegated Authority for Service Agreements
April 16, 2024 - Behavioral Health Services Agreements - Additional Delegated Authority for Fiscal Year 2023-2024
Fiscal Summary
|
Expenditures |
FY 25-26 Adopted |
FY 26-27 Projected |
FY 27-28 Projected |
|
Budgeted Expenses |
|
$347,500 |
|
|
Additional Appropriation Requested |
$510,000 |
|
|
|
Total Expenditures |
$510,000 |
$347,500 |
$0 |
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
|
|
|
|
State/Federal |
$110,000 |
$47,500 |
|
|
Fees/Other |
$400,000 |
$300,000 |
|
|
Use of Fund Balance |
|
|
|
|
General Fund Contingencies |
|
|
|
|
Total Sources |
$510,000 |
$347,500 |
$0 |
Narrative Explanation of Fiscal Impacts:
For Fiscal Year 2025-2026, appropriations include a $110,000 increase for CalMHSA funded with Proposition 30 State funding and a $400,000 increase for Psynergy Programs, Inc. funded with Measure O revenues.
For Fiscal Year 2026-2027, funding to be requested through the annual budget cycle includes $47,500 for CalMHSA funded with Proposition 30 State funding and $300,000 for Psynergy Programs, Inc. funded with Measure O revenues.
Narrative Explanation of Staffing Impacts (If Required):
None
Attachments:
Attachment 1 - Budget Resolution
Attachment 2 - Requested Delegated Authority
Attachment 3 - Draft CalMHSA Amendment
Attachment 4 - Draft Psynergy Amendment
Related Items “On File” with the Clerk of the Board:
None