Fremont City Council Meeting: 05/05/26 07:00 PM
3300 Capitol Avenue Div/Dept: Human Services Department Fremont, CA 94538 Category: Agreements and Contracts
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5696) DOC ID: 5696
Updated: 5/1/2026 11:46 AM by Dina Lewis Page 1
Mental Health Services Agreements - Authorize City Manager, or Designee, to Execute Amendment to Services Agreement with Alameda County Behavioral Health and to Execute a Services Agreement with La Familia Contact Persons:
Name: Annie Bailey Arquimides Caldera
Title: Youth and Family Services
Administrator
Human Services Director
Div/Dept: Human Services Department Human Services Department Phone: 510-574-2111 510-574-2056
E-Mail: [email protected] [email protected]
Executive Summary: As part of the Human Services Department’s Youth and Family Services (YFS) Division, Aging and Family Services (AFS) Division, and Family Resource Center (FRC) Division continued efforts to provide mental health services, Staff recommends that the City Council authorize the City Manager, or designee, to do the following:
1) Execute an amendment with Alameda County Behavioral Health (ACBH) in the amount of $1,536,869 for FY 2026/27 for the City to provide mental health services, resulting in a new total not-to-exceed amount of $4,321,349; and
2) Execute a Services Agreement with La Familia in the amount of $267,888 for the FRC Division to provide mental health counseling services, as part of a multi-disciplinary Working Wellness Program.
Background:
ACBH Mental Health Services Agreement
The City’s Human Services Department has provided Medi-Cal funded services to South Alameda County residents for many years, including mental health services, substance use disorder services, and Targeted Case Management Services.
Medi-Cal is California’s Medicaid health care program. Medi-Cal pays for services for children and adults with limited income and resources. Alameda County Behavior Health (ACBH) has provided reimbursement to the City for Early Periodic Screening Diagnosis and Treatment (EPSDT) services since FY 1999/2000 for youth and adult outpatient services based on the City’s actual costs up to a maximum allowed rate, which required the development of interim reimbursement rates and a final cost settlement each year.
Council Staff Report (ID # 5696) Meeting of May 5, 2026 Updated: 5/1/2026 11:46 AM by Dina Lewis Page 2
In FY 2025/26, as part of California Advancing and Innovating Medi-Cal (CalAIM) program, ACBH shifted the payment model for some behavioral health contracts. Under the new fee for service model, the City is no longer required to go through a cost settlement process and instead is paid a negotiated rate regardless of its actual costs. Alameda County invited the City to extend its current services agreement to provide Medi-Cal funded services for one year through FY 2026/2027.
The YFS Division provides approximately 7,000 hours of services to children with “full-scope Medi-Cal” (i.e., complete Medi-Cal coverage) that are funded through EPSDT, which is the joint county, state, and federal Medicaid reimbursement mechanism for services provided to children.
The FRC, YFS and AFS Divisions provide approximately 1,015 hours of Adult Outpatient Therapy services to 35 unduplicated adult clients with moderate to severe mental health issues.
Services are provided by licensed staff, Associate Social Workers, and graduate clinical interns.
La Familia Mental Health Services Agreement
The FRC Division has collaborated with Alameda County since 2001 to form a multi-disciplinary and multi-agency Family Service Team (FST) for clients with multiple issues, who are receiving public assistance through CalWORKs.
The City has provided mental health and wrap-around services, helping participants move from welfare to work.
In 2019, Alameda County re-bid this agreement and required providers to serve a much larger geographic area of the County which included the Tri-Cities, the Tri-Valley area, Hayward, and San Leandro. The City and La Familia submitted a successful joint application to provide these services to an expanded South Alameda County group of CalWORKs participants under a new program name, the Working Wellness Program, with La Familia serving as the lead agency and the City as a subcontractor.
Discussion/Analysis:
YFS Division: In FY 2026/27, the YFS Division will provide approximately 7,669 service hours in the following categories:
• Healthy Choices School-Site Counseling Services at Fremont school sites.
Council Staff Report (ID # 5696) Meeting of May 5, 2026 Updated: 5/1/2026 11:46 AM by Dina Lewis Page 3
• The Infant Toddler Program, which serves families with children who are five years old and younger. This program also includes the Early Connections project, which includes a full-time Family Partner that promotes family-driven mental health care for children. • The Youth Service Center, which serves youth with mental health needs and their families.
• The Truancy Intervention and Probation Youth Program, which serves pre-delinquent and delinquent youth and their families. • Outpatient Adult Mental Health brief therapy services (the AFS and FRC divisions will provide additional support in providing these services); and
• Intensive Care Coordination (ICC) for mental health clients. This is a form of Targeted Case Management (TCM) for youth.
The FRC Division: In FY 2026/27, the FRC Division will continue to assist clients who are on CalWORKs in removing barriers to employment. The FRC and La Familia’s collaborative Working Wellness program provides a coordinated and integrated system of support for clients and their families, which may include health, substance abuse and mental health services, as well as educational and job search assistance, aimed at helping clients to exit the CalWORKs system. The model invites the CalWORKs participant to be an active member of their treatment team. This program utilizes the Individual Placement and Support (IPS) model of Employment Services, provided by IPS staff from La Familia. In FY 2026/27, the FRC will provide approximately 766 hours of service to 26 unduplicated clients.
Fiscal Impact: Funding under these agreements offsets the costs of full-time mental health professionals, clinical supervision, clerical support costs and City overhead expenses. There is no impact to the General Fund.
While the reimbursement rates for the fee-for-service portions of the agreements may vary, the total amount for the FY 2026/27 ACBH amendment is $1,536,869, resulting in a new not-to-exceed amount of $4,321,349. The total not-to-exceed amount for the La Familia agreement is $267,888.
Funding for these programs will be included in the City’s FY 2026/27 proposed operating budget.
Environmental Review: The proposed actions are exempt from and not subject to review under the California Environmental Quality Act (CEQA) because, without limitation, it is not a “project” as that term is defined under CEQA Guidelines Sections 15378(b)(2), (4) and/or (5), or because it can be Council Staff Report (ID # 5696) Meeting of May 5, 2026 Updated: 5/1/2026 11:46 AM by Dina Lewis Page 4
seen with certainty that there is no possibility that the activity may have a significant effect on the environment per CEQA Guidelines Section 15061(b)(3), each of the foregoing providing a separate and independent basis for CEQA exemption.
Recommendations: Approve the following related to the delivery of mental health services:
1. Authorize the City Manager, or designee, to execute an amendment to the current Services Agreement with Alameda County Behavioral Health (ACBH) for the City to provide Mental Health services for FY 2026/27, in an amount not-to-exceed $1,536,869.
2. Authorize the City Manager, or designee, to execute a Services Agreement with La Familia for the FRC Division to provide mental health counseling services for FY 2026/27, as part of the Working Wellness Program, in an amount not-to-exceed $267,888.