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Consent-Health & Human Services   # 26.
Board of Supervisors
Meeting Date:
03/24/2026
Brief Title
Seventh Amendment to Agreement No. 23-200 with Psynergy Programs, Inc.
From:
Monica Morales, Director, Health and Human Services Agency
Staff Contact:
Tony Kildare, Adult & Aging Branch Director, Health and Human Services Agency, x2929
Supervisorial District Impact:
Countywide

Subject

Approve seventh amendment to Agreement No. 23-200 with Psynergy Program, Inc. to add funding in the amount of $635,000 for fiscal year (FY) 2025-26 for a new contract maximum of $3,365,030 for the period of July 1, 2023 through June 30, 2026 for the provision of specialty mental health services. (No general fund impact) (Morales)

Recommended Action

  1. Approve seventh amendment to Agreement No. 23-200 with Psynergy Program, Inc. to add funding in the amount of $635,000 for fiscal year (FY) 2025-26 for a new contract maximum of $3,365,030 for the period of July 1, 2023 through June 30, 2026 for the provision of specialty mental health services; and increase option year funding for FY 2026-27 by $635,000; and
     
  2. Delegate authority to the Director of the Yolo County Health and Human Services Agency, or designee, to: 1) exercise optional year extension(s) for FY2026-27 in an amount not to exceed $1,530,000 and 2) issue related option year notices. See Paragraph III.E. of Article I. of Att.A.

Strategic Plan Goal(s)

Thriving Residents
County Mandated Service

Reason for Recommended Action/Background

Psynergy Program, Inc. (Psynergy) provides reliable adult residential home care in combination with intensive outpatient mental health services which assist individuals with mental illness to avoid the unnecessary expense and emotional trauma often associated with incarceration and hospitalization. Services provided by Psynergy help improve each individual’s quality of life, help individuals gain the skills and ability necessary to stay out of locked hospital settings and move into less restrictive living arrangements in the community.

The agreement was amended multiple times primarily to add funding and extend the contract term due to higher-than-expected utilization and increased numbers of clients served. Additional amendments addressed covering outstanding invoices, updating scope of work, and approving rate increases and future term extensions to ensure continued service delivery.

HHSA is requesting approval of this seventh amendment which adds funding for FY2025-26 and increases option year funding.  Additional funding is needed to maintain this level of care amid increased costs for sub-acute psychiatric residential services.

Collaborations (including Board advisory groups and external partner agencies)

County Counsel has approved this Amendment as to form.
Department of General Services, Procurement Division

Competitive Bid Process/Vendor Performance

On or about May 16, 2022, the then acting Yolo County Procurement Manager or designee approved a single source letter in conformance with the then current Yolo County Procurement Policy. HHSA’s request was reviewed, and it was determined that it was in the best interest of the County to enter into an agreement for these services based on satisfactory service/reasonable prices and to avoid the interruption of County business. Factors considered, included but were not limited to:

1) County’s ongoing challenges to find appropriate placements for seriously mental ill adults; 2) Psynergy’s ability to divert higher needs clientele from state hospitals by providing a high level of structured support at their varied campuses; 3) competitive pricing/cost, Psynergy works with the County to determine the daily patch rate based on consumer needs and circumstances.
 
Without single source approval, the County would lose the ability to place consumers in adult residential board and care homes provided by Psynergy within proximity. County would be limited in its ability to identify and place consumers quickly into facilities offering this appropriate level of care, and in some cases would be unable to meet federally mandated standards regarding the provision of care for consumers.

On or about March 27, 2025, a new single source was approved by the County’s Deputy Director of General Services Department/Procurement Manager to extend the term of this Agreement through June 30, 2027. Again, it was determined that it was in the best interest of the County to enter into an agreement for these services based on satisfactory service/reasonable prices and to avoid the interruption of County business.

Performance Measures:
The Performance Measures were included in the underlying Agreement and are not being revised at this time (See Att. B. Performance Measures).

HHSA confirms Psynergy is performing satisfactorily under this Agreement. Psynergy provides services to the County's most vulnerable clients and remain instrumental partners in supporting the stabilization of seriously mentally ill adults. 

Performance Measures FY2024-25:
1.1 # of individuals served in an ARF: 15
1.2 # of ARF treatment days (total): 2104
1.3 # of Yolo County clients referred: 14
1.4 # of Yolo County clients accepted: 12
1.5 Average length of stay in an ARF bed: 296
2.1 % of clients served who demonstrate 5 or more treatment engagements each week: 33%
2.2 % of clients served who are meeting their individual treatment goals during their ARF stay 100%
2.3 % of clients who successfully maintained placement: 93%
3.1 % of clients served who did not require a higher level of care: 93%
3.2 % of clients served who stepped down to a lower level of care from an ARF: 7%


Performance Measures FY2025-26 through Q2 :
1.1 # of individuals served in an ARF: 27
1.2 # of ARF treatment days (total): 2489
1.3 # of Yolo County clients referred: <11
1.4 # of Yolo County clients accepted: <11
1.5 Average length of stay in an ARF bed: 91 Days
2.1 % of clients served who demonstrate 5 or more treatment engagements each week: 96%
2.2 % of clients served who are meeting their individual treatment goals during their ARF stay: 89%
2.3 % of clients who successfully maintained placement: 89%
3.1 % of clients served who did not require a higher level of care: 85%
3.2 % of clients served who stepped down to a lower level of care from an ARF: 7%

Fiscal Impact

Fiscal impact (see budgetary detail below)

Fiscal Impact (Expenditure)

Total cost of recommended action:
$    635,000
Amount budgeted for expenditure:
$   1,530,000
Additional expenditure authority needed:
$   
On-going commitment (annual cost):
$   1,530,000

Source of Funds for this Expenditure

2011 BH Realignment
$635,000

Further explanation as needed:

No general funds are required for this action. These services are funded by Behavioral Health (BH) 2011 Realignment and Medi-Cal Federal Financial Participation (FFP). The action increases the contract maximum by adding $635,000 in 2011 BH Realignment funds for a total of $3,365,030 for the period of July 1, 2023 through June 30, 2026. The amount of $1,530,000 is included in the HHSA adopted budget for FY2025-26. The related funding will be included in the requested budget process for future fiscal years.

The following is the breakdown of funding for this agreement.
Fiscal Year 2023-24
July 1, 2023
through
June 30, 2024
Fiscal Year 2024-25
July 1, 2024
through
June 30, 2025
Fiscal Year 2025-26
July 1, 2025
through
June 30, 2026
Total
$749,197 $1,085,833 $1,530,000 $3,365,030

This Agreement also includes one (1) yearly optional extension for FY2026-27 in an amount less than or equal to $1,530,000.
Option Year/
Fiscal Year (OY/FY)
Revised Agreement
Expiration Date
Per OY/FY
Maximum Increased
Funding Amount
Per OY/FY
Revised Agreement
Lifetime Maximum
Per OY/FY
OY/FY 2026-27 On or before
June 30, 2027
Less than or equal to
$1,530,000
Less than or equal to
$4,895,030

In no event shall the term of the Agreement extend beyond June 30, 2027, nor shall the total contract maximum exceed the amount of FOUR MILLION EIGHT HUNDRED NINETY-FIVE THOUSAND THIRTY DOLLARS ($4,895,030), unless otherwise agreed to in writing by the Parties and in conformity with the then-current Yolo County Procurement Policy approved by the Yolo County Board of Supervisors.

Attachments

Form Review

Inbox Reviewed By Date
Tony Kildare Tony Kildare 02/25/2026 06:28 AM
Evis Morales Evis Morales 02/25/2026 11:53 AM
Financial Services David Estrada 03/13/2026 08:07 AM
County Counsel Hope Welton 03/17/2026 08:27 AM
Laura Galindo Laura Galindo 03/17/2026 01:28 PM
Form Started By:
Laura Checa
Started On:
01/14/2026 03:49 PM
Final Approval Date:
03/17/2026