Resolution:

No. 6-02

Approving an Extension of the Terms of Fiscal Year 2002/03 Contracts For the Department of Public Health

WHEREAS, the contractors listed on Attachment “A” currently provide health services to the residents of San Francisco through contracts with the Department of Public Health; and,

WHEREAS, the renewal of these contracts will not be completed through the regular contract processes prior to any of their expiration dates, which are June 30, 2002 or earlier, thereby causing financial hardship to the contractors listed; and,

WHEREAS, it is the intention of the Health Commission that these contractors continue to be paid at the 2001/02 contract rate(s), as reflected in the final version of the 2001/02 contracts with these contractors; and,

WHEREAS, monthly payment to the contractors listed in Attachment “A”, until such time as the availability of funds for these 2002/03 contracts are certified by the Controller will greatly reduce the financial hardship on these contractors; and,

WHEREAS, the Health Commission believes that a smooth transition from one contract year to another is important to minimize any disruption in services to San Francisco residents; and,

WHEREAS, the Commission has previously approved the acceptance and expenditure of various grant funds and State Substance Abuse and Crime Prevention Act of 2000 (“Proposition 36”) funds and the periods for receipt of these funds, beginning in 2001/02 and continuing into 2002/03; and,

WHEREAS, the Commission desires the services funded by these grants and/or Proposition 36 funds to continue without disruption; now, therefore, be it

RESOLVED, that the Health Commission hereby approves the extension of the terms of each contract with those contractors shown in Attachment “A”, on a month-to-month basis, at the 2001/02 contract rate(s) as reflected in the most recent version of their 2001/02 contracts, and until such time as the availability of funds for 2002/03 contracts (“renewals”) is certified by the Controller, or through December 31, 2002, whichever comes first. After certification of the 2002/03 “renewal” contracts, the contractor will provide an adjustment invoice to reconcile any differences between 2001/02 rates and the final 2002/03 negotiated contracts/rate(s); and, be it

FURTHER RESOLVED, that the Health Commission hereby approves provision in each of the contracts shown in Attachment “A” to allow an initial payment to be paid to all those contractors designated by the Department. Such payment shall not exceed twenty-five percent (25%) of the contract’s maximum compensation amount of General Fund monies and Proposition 36 monies, as applicable. Recovery of this initial payment by the City shall be made upon certification of the availability of funds for the final negotiated contract/rate(s) (“renewal” contract) by the City Controller, through a reduction in payments to the contractor in each remaining month of 2002/03, in equal amounts for each month; and, be it

FURTHER RESOLVED, that in order to ensure the smooth continuation of funding for services for those contracts which are listed in Attachment “A”, which include grant and/or Proposition 36 funding that continues into 2002/03, adjustments may be made as needed to the funding periods reflected in these contracts, in compliance with related grant agreements with grantors and/or the State.

I hereby certify that the Health Commission at its meeting of April 16, 2002 adopted the foregoing resolution.

Michele M. Olson, Secretary to the Health Commission

Attachment “A” (to Resolution #06-02)