title
HEALTH SERVICES AGENCY - Interim Executive Director Michelle Schmidt
end
Requested Action(s)
recommendation
a) AGREEMENT - Request approval and authorization for the Interim Executive Director to sign the Agreement with Open Line Group Homes, Inc., for the provision of Mental Health Services for the maximum compensation payable not to exceed $400,000, effective 9/1/25 and shall terminate 6/30/27
body
Financial Impact:
Budget Unit is 40131 for Mental Health. Costs of services will be paid for with Mental Health realignment funds and/or Mental Health Services Act funds allocated for medically necessary services. There is no impact to the General Fund.
Background Information:
This is a new Agreement with the vendor to provide mental health services for Tehama County youth. Placement for at risk youth is extremely difficult and there is a statewide shortage of beds available. The Department became aware of a client placement at Open Line Group Homes, Inc. in February 2026. This placement was made through the Department of Social Services for a short-term residential treatment of a foster youth due to an urgent placement need for high level of care. The Department was hoping to cover for these services through Purchase Orders, however, the amounts exceeded the limits allowable. Subsequent to this, contract development occurred.