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HomeMy WebLinkAboutAgenda - 10-03-2006-5mORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 3, 2006 Action Agenda Item No. ~- m SUBJECT: Authorization to Allocate $80,000 to Support Operational Transition of Club Nova Community, Inc. Under Mental Health Reform DEPARTMENT: County Manager's Office PUBIC HEARING: (Y/N) No ATTACHMENT(S): 1. Agenda Abstract (May 16, 2006) 2. Formal Request Letter -Club Nova Community, Inc. 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 additional funds in the amount of $80,000 to OPC/L.ME to further facilitate the divestiture (transfer) of OPC Club Nova to Club Nova Community, Inc. (The formal transfer of management responsibility from OPC occurred in mid-May 2006.) BACKGROUND: The Club Nova 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. 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 increasedbudgetary uncertainties, the Club Nova Community, Inc. board and staff met during the spring with Chair Jacobs, Vice Chair Halkiotis, and county management to present its concerns and request for additional funding assistance to further support~operating responsibilities in the transition to independent status. The proposed solution, agreed upon by OPC, Club Nova, and County staff, as reported to the BOCC at its meeting on May 16 (see Attachment 1) ,was to request BOCC consideration to provide an additional allocation of $80,000 to OPC for transmittal to Club Nova Community Inc. during FY2006-07. The majority of the $80,000 would be used to continue and make available psychosocial 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 would 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. 2 The Board of Club Nova Community, Inc. has requested that the BOCC, as referenced earlier, grant consideration of its request for the additional allocation for operating purposes at this time. A formal letter to that effect is attached (see Attachment 2). FINANCIAL IMPACT: Funds to establish this transfer to Club Nova Community, lnc. through the OPC LME as the administrative conduit are available within the FY2006-07 Critical Needs Reserve for Human Services. Should Commissioners approve the appropriation of $80,000 from the County's Critical Needs Reserve to Club Nova, budget staff will bring a budget amendment for formal approval at an upcoming BOCC meeting. RECOMMENDATION(S): The Manager recommends that the Board authorize the release of $80,000 from the Critical Needs Reserve for Human Services to further support the first year of independent Clubhouse operations under Club Nova Community, Inc. ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No. ACTION AGENDA ITEM ABSTRACT Meeting Date: May 16, 2006 SUBJECT: Authorization to Release Current Bridge Funding to OPC/LME to Facilitate Divestiture of Club Nova, and 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): 1. OPC Area Program -Program Transition Worksheet 2. 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 Mebane 336-227-2031 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 FY06-07.budget process. The actual transfer of management responsibility from OPC is expected to occur on or before May 13, 2006. BACKGROUND: The Club Nova 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 for 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/MME 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 Nova within FY2005-06. 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. OPC management has recommended and the OPC/LME Board has authorized negotiation of a contract award to Club Nova Community, Inc. Club Nova Community, Inc. is a nonprofit established by the previous Club Nava 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/t_ME management requests release of the one-time County funding in an amount actually less than earlier estimated as described in the attached correspondence. OPC/t_ME 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/t_ME. 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 has since met with OPC financial and program managers, and with Club Nova Community, Inc. board and staff to refine their budgetary needs and craft a reasonable proposed solution for consideration by the BOCC. The proposed solution, agreed upon by the parties, is to request that the BOCC consider approving as part of the Manager's recommended budget for FY06-07 budget an additional $80,000 to OPC for transmittal to Club Nova Community lnc The majority of these additional funds will be used to continue and make available psychosocial 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. Club Nova Community, Inc. board and staff also understand, as explained by OPC staff, that a portion of the County's 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 Nova in FY06-07. The 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 for Club Nova was anticipated in the FY2005-06 budget adopted by the BOCC. OPC/LME "bridge" funds were specifically set aside by budget ordinance within the Critical Needs Reserve. The. additional $80,000. would need to be appropriated by the BOCC as part of a proposed Critical Needs Reserve in the FY06-07 operating budget as recommended by the County Manager, for transmittal to Club Nova Community, Inc. through the OPC LME administrative conduit. 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 support the set aside of $80,000 as part of a Critical Needs Reserve account in the Managers Recommended budget for FY06-07 to further support the first year of Clubhouse operations under Club Nova Community, Inc. * * 'f' ~ * * ,~.. ~ +K ~ 103 D West Main Street * *' ~ -~( „~ * * Carrboro, North Carolina 27510 * * * ~' * 919-968-NOVA (6682) Fax 919-968-1764 September 25, 2006 Club Nova Community, Inc. Matthew Cox Dear Board of County Commissioners, Betsy Fenhagen Esphur E. Foster We are requesting the release of the $80,000 ($75,000 plus $5,000 Human Gary Gaddy Services grant) from Orange County to Club Nova via OPC Area Program as was Barbara Nettles-Carlson discussed during the Spring of 2006 with Gwen Harvey, Ken Chavious, the Joan Pierce Commissioners Jacobs and Halkiotis, and Club Nova. We are asking this money be Dan Pollitt Jaki Shelton-Green released now to continue providing services for Club Nova members while we are segue snelton-Green still in the midst of transitioning from OPC Area Program into our own non-profit Club Nova Advisory Council entity. The money may be released the first of each quarter, with the first quarter Shiva Belovicz and second quarter coming together, if the County so desires. This money is helping M. Patricia Devine fill the gap left when the State of North Carolina decided not to provide Medicaid Bill Massengale funding for individuals receiving both Psychosocial Rehabilitation (Club Nova) and Michael Norton AI-en spalt ACTT services. The money Orange County will provide to Club Nova will continue Hans Wanders PSR services to members who felt they could not let go of ACTT, but still felt the Consultant need for a Clubhouse Model for their mental health needs. Jay Miller Shared Visions Foundation Sincerely, Director Karen Kincaid Dunn ~ Esphur E. Foster, * Board President, Club Nova Community, Inc Club Nova promotes and provides opportunities for individuals with mental illness to lead meaningful and productive lives of their choice, in the community.