HomeMy WebLinkAboutAgenda - 05-16-2006-9bORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 16, 2006
Action Age a6
Item No.
SUBJECT: Authorization to Release Current Bridge Funding to OPC/LME to Facilitate
Divestiture of Club Nova, and Consider Support for an Additional Allotment in
the Manager's Recommended FY 06-07 Budget
DEPARTMENT: County Manager's Office
PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
OPC Area Program -Program
Transition Worksheet
OPC/LME Request Letter
INFORMATION CONTACT
Gwen Harvey, Asst. Co. Mgr., 245 -2307
Ken Chavious, Finance Director, 245-
2453
Judy Truitt, OPC/LME Director, 913-4037
PURPOSE: To authorize the release of a County appropriation in the amount of $40,806 to
OPC/LME to facilitate the divestiture (transfer) of OPC Club Nova to Club Nova Community, Inc,
and to consider support for an additional allocation in the FY 2006-07 budget process (The
actual transfer of management responsibility from OPC is expected to occur on or before May
13, 2006.).
BACKGROUND: The Club Nava mission is to serve adults in Orange County living with severe
and persistent mental illness (SPMI) and provide them with structured daily activities, as well as
social, vocational, and residential opportunities that support their self-esteem and successful
integration into the larger community. Club Nova is an active member of the NC Clubhouse
Coalition, a statewide organization of clubhouse model programs that served adults with SPMI.
In its budget work session on June 16, 2005, the BOCC received an update from County and
OPC/LME staff on the projected need on a program by program basis for one-time
supplemental "bridge" funding (in the approximate amount of one-month's operating expense)
to help facilitate the divestiture of OPC programs serving Orange County residents as provided
under the approved business plan far mental health reform.
Attachment 1 is a copy of the Program Transition Worksheet that accompanied this item on the
June budget work session agenda. Based on OPC/LME calculations and overall request for
supplemental assistance, the County anticipated the need to reserve up to $66,663 for the
planned divestiture (transfer) of the OPC Club Nava within FY 2005-06. This amount is the
equivalent of one month's operating expense. Club Nova also secured a $75,000 grant through
the General Assembly to support its transition process.
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OPG management has recommended and the OPC/LME Board has authorized negotiation of a
contract award to Club Nava Community, Inc. Club Nova Community, Inc. is a nonprofit
established by the previous Club Nova advisory board along with program staff and consumers
to carry forward the services and support features of the clubhouse located in Carrboro. In
order to facilitate the organizational transfer, OPC/LME management requests release of the
one-time County funding in an amount actually less than earlier estimated as described in the
attached correspondence. OPC/LME as the contracting authority will be the transfer agent to
provide the additional BOCC funding to the new entity. Attachment 2 is the formal letter of
request for the supplemental funding from OPC/LME.
New Developments
Alongside divestiture, Club Nova Community, Inc. has -like other prospective providers of OPC
services -had to address the advent of new service level definitions and reimbursement rates
from the Centers of Medicare and Medicaid. As a result of increased budgetary uncertainties,
the Club Nova Community, Inc. board and staff met with Chair Jacobs, Vice Chair Halkiotis, and
county management to present its concerns and request for additional funding assistance,
above and beyond the supplemental funds previously reserved, to support the new non-profit
during its first year of operating independently of OPC, County staff -Gwen Harvey and Ken
Chavious -met with OPC financial and program managers, and with the Club Nova
Community, Inc. board and staff to refine their budgetary needs and craft a reasonable
proposed solution for consideration by the BOCC. What began as a request approaching
$200,000 was analyzed and clarified in good faith to a lesser amount,
The proposed solution is to request that the BOCC consider approving as part of the Manager's
recommended budget for FY 2006-07 budget an additional $80,000 to OPC for transmittal to
Club Nova Community Inc. The majority of these additional funds will be used to continue and
make available psychosacial rehabilitation services to Clubhouse clients who also require a
higher level of service through the separate Assertive Community Treatment Team (ACTT)
provider. These are the clients needing the highest level of community and social support and
who are most at risk for being re-hospitalized. The additional County funds will also allow the
purchase of essential office and computer equipment required to establish an administrative
unit to handle the business functions of Club Nova previously provided internally through OPC
at its headquarters.
The Club Nova Community, Inc, board and staff also understand, as explained by OPG staff,
that a portion of the County s continuing annual continuation of effort allocation (approximately
$100,000, or the same amount as in this current fiscal year) will be reserved by OPC internally
for distribution to Club Nava in FY06-07.
The Club Nova board and staff expressed its gratitude to the County, support for this proposal,
and greater confidence that the first year of independent operations could progress smoothly.
They did; however, wish to reserve the right to keep the BOCC apprised and, if absolutely
necessary, return to re-visit the financial situation during the upcoming budget year,
FINANCIAL IMPACT: "Bridge" funding, to be transferred at the time of divestiture far Club
Nova, was anticipated in the FY 2005-06 budget adopted by the BOGG. OPC/LME "bridge"
funds were specifically set aside by budget ordinance within the Critical Needs Reserve.
The additional $80,000 would be appropriated by the BOCG in the FY 2006-07 operating
budget through the OPC LME administrative conduit. (The County's maintenance of effort
funding to OPC would be increased by $80,000 specifically for Club Nova.)
RECOMMENDATION(S): The Manager recommends that the Board:
Authorize the release of $40,806 from the Critical Needs Reserve to facilitate the
divestiture and transfer of Club Nova from the OPC/LME to Club Nova Community, Inc.;
and
2. Consider the allocation of an additional $80,000 in the Managers Recommended budget
far FY 2006-07 to further support the first year of Clubhouse operations under Club Nova
Community, Inc.
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Memo
To: Orange County Board of County Commissioners
Attention: Barry Jacobs, Chair
From: Judy R. Truitt, Area Director
CC: John Link Gwen Harvey
Date: 5/11 /2006
Re: Request to Release One-Time Supplemental Funding to OPC-LME to
Facilitate Divestiture of Club Nova
OPC Area Program/LME has entered negotiations with Club Nava Community, Inc.
to assume operational management for Club Nova, OPC's psychosocial
rehabilitation program in Orange County. Club Nova Community, Inc, is anon-profit
organization established by the previous Club Nava advisory board, as well as staff &
consumers of the program, The actual transfer of management responsibility is
expected to occur on or before May 30, 2006.
In an effort to assure successful transition of OPC's service programs in Orange
County, the BOCC and OPC Area/LME Boards agreed to provide bridge funding for
programs in Orange County equal to one month operating expenses. As part of the
budget planning process for FY06-07, OPG Area/LME Boards approved the use of
continuation of effort monies already provided to OPC from the counties and staff set
aside $25,857 far this program, The remaining $40,806 was requested and
approved as one-time supplemental funding from the BOCC in July 2005,
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Based on the above information, I would request that the Board of County
Commissioners release $40,806 to OPC/LME for subsequent distribution to Club
Nova Community, Inc.
Continuation of effort monies
One-time supplemental funding
ToFal Orange County funding for Ciub Nova Community, Inc
$25,857 No action required by BOCC
40 806
$66,663
Thank you very much for your continued support and please do not hesitate to call
should you need any further information.
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