2010-59-Order No. 2010-124 Recorded 2/5/2010REVIEr~~ n
LEGAL COUNSEL
DESCHUTES COUNTY OFFICIAL RECORDS yJ 101059
NANCY BLANKENSHIP, COUNTY CLERK Q V 9
11COM[111MISSIONERS1'11JOURNAL 02/05/2010 08:19:56 AM
For Recording Stamp Only
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
An Order Approving a Contract Specific
Special Procurement for Operation of * ORDER NO. 2010-124
Residential Mental Health Treatment
Facilities
WHEREAS, The Deschutes County Code, Section 2.37.010, designates the Board of County
Commissioners to act as the local contract review board; and
WHEREAS, ORS 27913.085 and the Deschutes County Code authorize the Board of County
Commissioners, acting as the local contract review board, to award contracts using the special
procurement method. A special procurement includes contract-specific special procurement, which is
a contracting procedure that is for the purpose of entering into a single contract or a number of related
contracts on a one-time basis or for a single project; and
WHEREAS, ORS 27913.085 requires that the contract review board make findings to support
the award of a contract under the special procurement procedures; now, therefore,
THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON,
acting in its capacity as the local contract review board, hereby ORDERS as follows:
Section 1. Based upon the recitals in this Order and the Memorandum from Lori Hill,
Behavioral Health Program Manager, which is attached and incorporated herein, the Board hereby
approves the award of one or more contracts for the operation of residential mental health treatment
facilities pursuant to the contract specific special procurement procedure, authorized by ORS
27913.085, to Telecare Mental Health Services of Oregon, Inc. The final terms and conditions of such
contract(s) are subject to legal review.
PAGE I of 2 - ORDER NO. 2010-124
Section 2. This Order shall become effective immediately upon its adoption.
ATTEST:
DATED this day of ~t..l 2010.
BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
Recording Secretary
DE IS R. LUKE, Chair
6AVu U41L~
ALAN UNGER, Vice Chair
TAMMY BANEY, Com issioner
PAGE 2 OF 2 - ORDER NO. 2010-124
HEALTH SERVICES
2577 NE Courtney Drive, Bend, Oregon 97701
Public Health (541) 322-7400, FAX (541) 322-7465
Behavioral Health (541) 322-7500, FAX (541) 322-7565
www.deschutes.org
TO: Board of County Commissioners
FROM: Lori Hill, DCBH Adult Treatment Program Manager
DATE: February 3, 2010
REFERENCE: Contract Specific Special Procurement for Residential Mental Health
Treatment services
This memorandum is furnished to the Board in support of a contract specific special procurement
for residential mental health treatment services. This proposed action is authorized by ORS
279B.085.
In order to approve this form of public procurement, the Board in its capacity as the public
contract review board must determine that:
It is unlikely to encourage favoritism in the awarding of public contracts or to
substantially diminish competition for public contracts; and
(A) Is reasonably expected to result in substantial cost savings to the contracting
agency or to the public; or
(B) Otherwise substantially promotes the public interest in a manner that could
not practicably be realized by complying with requirements that are
applicable under ORS 27913.055, 27913.060, 27913.065 or 27913.070 or under
any rules adopted thereunder.
What follows is a chronology which describes the steps taken by the State and the County which
resulted in the State selecting Telecare Mental Health Services of Oregon, Inc. (Telecare) to
provide residential mental health treatment in Central Oregon. Had the State been the party
actually contracting with Telecare to provide such services and not Deschutes County, this
special procurement would not have been necessary.
1. On August 1, 2007, Addictions & Mental Health Division (AMH) announced the
Expanding Community Living Opportunities (ECLO) project. This was a request for
applications for residential development throughout the state. As part of this process,
Deschutes County Behavioral Health (DCBH) had specifically identified 2 local
priorities. At that time, those 2 projects were identified as a 10-bed secure residential
BOCC memorandum Contract Specific Special Procurement 2-3-10 Page 1 of 3
treatment facility and an 8-bed non-secure residential treatment facility. Both for these
projects were listed in the ECLO announcement.
2. The ECLO project utilized an open competitive application process in accordance with
OAR 125-247-0288 Special Procurement by Rule.
3. In addition to the ECLO announcement, on October 4, 2007, DC Health Services
Director Scott Johnson sent an e-mail to 11 agencies throughout the state notifying them
of our projects and encouraging applications. These agencies were identified by AMH as
all of the potential residential providers within the state of Oregon.
4. DCBH staff interviewed, either in person or via phone, all agencies expressing an interest
in residential treatment in Deschutes County. Participating staff included Mental Health
Director, Adult Treatment Program Manager, Residential Specialist, Community Support
Supervisor and Crisis Team Supervisor.
5. DCBH provided letters of support for all agencies that expressed an interest in submitting
an application. Letters of support were provided for Telecare, Dungarvin Oregon, and
Oregon Regional Behavioral Services for both secure and non-secure projects and for
Springbrook corporation which chose to submit an application the for non-secure project
only.
6. All agencies provided a copy of their application to DCBH in addition to the original
submitted to AMH. While DCBH did not participate in the formal review process, DCBH
did provide AMH with input after interviews, reference checks and application review.
DCBH staff agreed that Telecare was considered to be the preferred provider and shared
this information with AMH staff prior to their final selection.
7. The steps taken by AMH after an application was received for the ECLO application
('0749 Biennium) were as follows:
7.1. Applications were reviewed and rated by an AMH appointed review panel. The
review panel's recommendations were presented to the AMH Assistant Director who
made the final funding decisions. The review panel utilized criteria listed below to
rate the applications:
7.1.1. Structured and Specialized Residential Program Rating Criteria:
Signed Application Information Sheet Threshold - must pass
CMHP letter of endorsement Threshold - must pass
Project development authorization Threshold - must pass
Eligible population to be served Threshold - must pass
Quality of Proposed Approach - 30 points
Population description
Program description
Selection and preparation plan
Appropriateness of program location - 15 points
Thoroughness of program start-up plan - 5 points
Quality of housing development plan - 20 points
BOCC memorandum Contract Specific Special Procurement 2-3-10 Page 2 of 3
Responsible management plan - 15 points
Solvent operating budget - 15 points
TOTAL POSSIBLE POINTS 100 points
7.1.2. Applications were required to meet all threshold criteria and score at least 70
points for each application component in order to be considered for funding.
AMH reserved the right to reject any or all applications, to score applications,
and to require additional information as a condition of funding.
8. On February 20, 2008, Addictions and Mental Health Division conditionally approved an
award of $909,576 to Telecare to operate an 8-bed non-secure residential treatment
facility in Deschutes County.
9. On February 27, 2008, Addiction and Mental Health Division conditionally approved an
award of $936,216 to Telecare to operate a 10-bed secure residential treatment facility in
Deschutes County.
10. In July 2008, through discussions with Deschutes County, AMH and Telecare there was
agreement to increase the secure facility from 10- beds to 16-beds. There was also
agreement to change the 8-bed project to two 5-bed facilities.
11. AMH has provide $675,000 in funding to Deschutes County for construction costs for the
secure facility. An additional $75,000 was later approved for additional space
modifications, bringing the total construction award to $750,000.
12. The County has issued an invitation to bid and selected a contractor to build the secure
residential treatment facility but is awaiting this action as well as final sign off on the
lease (under #13) before giving notice to proceed. The County has also taken preliminary
steps needed to issue bonds to finance construction.
13. DC has negotiated but not yet signed a lease with Telecare for the secure residential
treatment facility currently scheduled for construction. Telecare has also identified
properties for purchase in which it would operate non-secure treatment facilities.
14. All final awards from AMH for the operation of the secure and non-secure residential
facilities by Telecare will be made through Deschutes County Behavioral Health by
amendment to the existing contract between Deschutes County and AMH.
Since the process AMH followed in this case was a fully competitive process, and resulted in
the selection of Telecare, the Board finds that entering into a contract with Telecare for
residential mental health services is unlikely to encourage favoritism in the awarding of
public contracts or to substantially diminish competition for public contracts. Furthermore,
Telecare has demonstrated to DCBH and AMH that it is fully qualified to perform the
requested services, that it is prepared to enter into a lease and real property purchase for both
secure and non-secure residential treatment facilities and that selecting Telecare substantially
promotes the public interest in a manner that could not practicably be realized by repeating a
separate competitive procurement process.
BOCC memorandum Contract Specific Special Procurement 2-3-10 Page 3 of 3