Approve fifth amendment to Agreement No. 23-318 with Granite Wellness to extend the term of the Agreement through June 30, 2027 and decrease the contract maximum by $250,000 (reducing fiscal year 2025-26 by $500,000 and adding funding in the amount of $250,000 for fiscal year 2026-27) for a new contract maximum of $1,487,627 for the period January 1, 2024, through June 30, 2027; and decrease optional year funding, for the provision of Substance Use Disorder (SUD) adult continuum of care services. (No general fund impact) (Morales)

The County entered into an agreement with the California Department of Health Care Services (DHCS) to provide Drug Medi-Cal Organized Delivery System (DMC-ODS) substance use disorder (SUD) treatment services to eligible clients. DMC-ODS is a program for organized SUD services to Medi-Cal eligible individuals with SUD residing in a county that has elected to participate in the DMC-ODS. The program provides beneficiaries with access to care and system interaction needed to achieve sustainable recovery. The County also receives funding from a variety of other federal and state funding streams for the provision of SUD treatment services to various client populations, which may include but is not limited to:  Substance Abuse Prevention and Treatment (SABG) Block Grant Funds; Substance Abuse and Mental Health Services Administration (SAMHSA); CalWORKs and Child Welfare Services (CWS) funding; 2011 Realignment; AB109 Revenue, FFP, and Opioid Settlement funds.

SUD Continuum of Cares services include:

These services are provided to any eligible Yolo County resident referred through an access point established by Yolo County or directly requesting services through a provider and include, but not limited to, the following populations/programs:

On October 13, 2023, the Deputy Director/Manager of Procurement approved a single source procurement for Granite Wellness to provide withdrawal management, low intensity residential, high intensity residential, perinatal residential services, care coordination, and clinician consultation services.  

On September 13, 2024, the Deputy Director/Manager of Procurement approved a second single source procurement allowing the addition of two new scopes for FY 2024-25 that includes outpatient services and recovery residence (details below).

On or about January 12, 2024, the County and Granite Wellness entered into Agreement No. 23-318 (“the Agreement”) for withdrawal management, low intensity residential, high intensity residential, perinatal residential services, care coordination, and clinician consultation services.

On or about May 7, 2024, the County exercised its option to extend the Agreement for fiscal year 2024-25.

On or about September 24, 2024, the County amended the Agreement to add funding to FY 2023-24 to cover remaining fiscal year 2023-24 invoices. The additional funding for FY 2023-24 was needed due to increased utilization of services that were greater than projected.

On or about June 30, 2025, the County exercised its option to extend the Agreement for fiscal year 2025-26.

On or about March 10, 2026, the Parties further amended the Agreement to add funding for fiscal year 2025–26 and update rates effective July 1, 2025. This amendment also included provisions regarding repayment obligations to the County.
Approval of this amendment will extend the term of the Agreement through June 30, 2027, and result in a net decrease of $250,000. Funding is reduced in fiscal year 2025-26 by $500,000 and increased by $250,000 in fiscal year 2026-27 for a revised total of $1,487,627. The reduction of funding for 2025-26 is due to lower utilization. Approval of this amendment will allow for the continued support of SUD adult continuum of care services.

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

A single source was deemed appropriate for these services because the County has a contractual obligation with the State to provide SUD continuum of Care services that include 3.1 residential, withdrawal management 3.2, residential 3.5 and perinatal services. County staff completed outreach to several agencies in the region and Granite Wellness is the only provider that offers perinatal services and is willing to contract for those services. They are the only perinatal provider in the region that is currently certified for Drug Medi-Cal delivery system services. By contracting these services with Granite Wellness, the County is able to meet the state requirements of providing SUD services to all levels of care in a timely manner. The provider costs for these services align with County SUD budgets and set rates. Without single source approval, the County would not be able to meet the need of Yolo County residents. County residents would be put at risk of not having timely access to SUD services, costly interventions, significant delays in treatment and adverse effects when needed.

Vendor Performance:
HHSA confirms Granite Wellness is performing satisfactorily under this Agreement. Performance Measures were included in the original Agreement and are not being revised at this time (See Att. B. Performance Measures).