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Point Paper
Amendment of Contract with Sound Mental Health
ISSUE
: Because of changing needs of our Mental Health Court and redistribution of staff
resources of Sound Mental Health (SMH), SMH has proposed a new billing process that will
assure us of a dedicated SMH professional 20 hours per week and current treatment level of
service, at no increase to our budget. Recommend we concur and amend the current contract
accordingly.
In 2005 the City signed a contract with Sound Mental Health as the focal point for
treatment services for our mental health program
We budgeted $60,000 annually based on a constant flow of 10 defendants in the
program throughout the year. We have not increased that budget since 2005
The billing was done using per participant voucher payment system that equated up to
$933.00 per participant per month - Specific figures: $233.33 (staff)+ $500 (housing) +
$200 (meds) = $933/mo x 6 mo x 10 participants = $55,980
Because of the rapport between the City and SMH, the City has been receiving
additional services at no additional cost to the City
The County and other agencies are now demanding the services for which they were
paying, but not using - the City will not be getting these additional services without
additional costs, under the terms of the current contract
SMC is proposing that we amend the Payment section to fund a .5 FTE at $37,500
($3,125/mo) and a flex fund that is capped at $1,050/mo no matter how many patients
we have in the program (previously it could have gone well over the $700/mo depending
on the number in the program). The flex fund will be used for housing, psych meds and
other miscellaneous services. It will be tapped only when used. We have seldom used
much of this fund in the past. Total cost of the amended contract: $37,500 + $12,600 (if
fully used) = $50,100
RATIONALE FOR AMENDING THE CONTRACT:
1. The City saves a minimum of $5,880; still gets same contracted services
2. SMH can reallocate its staff resources
3. The number of City of Auburn defendants has increased over four years resulting in:
a. more in-custody reviews
b.
increase in the number of mental health evaluations
4.
City of Auburn gets a dedicated staff professional for 20 hours/week
5.
No reduction to current services
6. Start as early as October 1, 2009.
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ADDENDUM NO. 1
ADDENDUM TO SCOPE OF SERVICES EXHIBIT
BETWEEN SOUND MENTAL HEALTH AND THE CITY OF AUBURN
RELATING TO MENTAL HEALTH SERVICES
THIS ADDENDUM
is made and entered into this day of
_____, 2009, by and between Sound Mental Health, (hereinafter referred to as the "SMH") and the
City of Auburn, a municipal corporation of the State of Washington (hereinafter referred to as the
"City"), as an Addendum to the Scope of Services Exhibit to the Contract for Mental Health Services
between the parties for mental health services executed on February 27, 2008.
W I T N E S S E T H:
WHEREAS, the City and SMH (then Seattle Mental Health) entered into an Agreement
dated December 21, 2005 relating to the provision of mental health services in support of the City of
Auburn Mental Health Court; and,
WHEREAS, when the City determined that this service satisfactorily met the needs of the
City, it extended the agreement by entering into another Agreement dated February 27, 2008 under
the same terms as the previous contract; and,
WHEREAS, SMH must reallocate its resources and the needs of the City’s Mental Health
Court have changed, the City and SMH wish to amend the Scope of Services Exhibit A of the
current contract to reflect the new billing/payment procedure, at no additional cost to the City,
without reduction in services.
NOW THEREFORE in consideration of their mutual covenants, conditions and promises, the
City and SMH agree to amend the Scope of Services Exhibit A to the current contract as follows:
Voucher Payment
- $1,400 maximum per voucher for up to six (6) months, billed in
monthly increments of $233.33 per month for each month services are provided. Once client
starts to receive eligible Medicaid benefits or absconds or is unavailable for treatment, the
voucher will stop regardless of time remaining.
In addition, SMH may bill for housing per person at a maximum of $500 per month for up to six
(6) months. Medication can be billed at a maximum of $200 per month for up to six (6) months.
If medical expenses exceed the $200 per month allotment, additional approval will be required
from the City of Auburn.
Monthly payment is initiated by the first face-to-face contact between SMC personnel and the
inmate regardless of incarceration status.
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Payment
1.SMH will bill the City on the last day of each month, and the City will pay, in accordance with
its normal accounts payable procedures, Three Thousand One Hundred Twenty-Five Dollars and
No Cents ($3,125.00) to be used to support staff (.5 FTE) time of 20 hours per week dedicated to
the City of Auburn.
2.In addition, SMH will bill the City each month, and the City will pay, in accordance with its
normal accounts payable procedures, up to a maximum of One Thousand Fifty Dollars and No
Cents ($1,050.00), as needed, to be used to support actual housing, medication and miscellaneous
expenses of City of Auburn participants for that month. The billing will contain an itemized list of
expenditures.
3.The bill(s) will be sent to City of Auburn, ATTN: Greg Bockh, 340 East Main Street, Suite
101, Auburn, Washington 98002.
Remaining Terms Unchanged
. All other provisions of the Contract and Scope of
Services shall remain unchanged and in full force and effect.
Effective Date
Section 6: . This Addendum shall be effective October 1, 2009.
IN WITNESS WHEREOF
the parties hereto have executed this Addendum
SOUND MENTAL HEALTHCITY OF AUBURN
By: By: ______________________________
Peter B. Lewis, Mayor
Its:
Date: __________________________
Attest:
By: _________________________________
Danielle E. Daskam, City Clerk
Approved as to form:
_________________________________
Daniel B. Heid, City Attorney
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