City of Sacramento City Council

915 I Street, Sacramento, CA, 95814 www.CityofSacramento.org

Meeting Date: 8/16/2011 Report Type: Consent

Title: Supplemental Agreement: Cover The Kids Program Report ID: 2011-00712 Location: Citywide Recommendation: Adopt a Resolution: 1) authorizing the City Manager or designee to execute the Supplemental No. 1 to City Agreement No. 2010-0610 with First 5 Sacramento Commission (First 5) for the Cover the Kids Program to reduce the grant amount from $6,007,000 to $2,449,750 and to eliminate the two one-year renewal options; 2) authorizing the City Manager or his designee to enter into any additional amendments of the Cover the Kids program agreement with First 5, subject to approval as to form by the City Attorney, which may change the grant amount and/or agreement term as long as the amendment increases the maximum payment to the City by no more than $500,000 or decreases the maximum payment by any amount, and any additional services by the Cover The Kids program can be fully funded with the additional compensation; and 3) authorizing the City Manager to adjust the necessary operating and grant revenue and expenditure budgets to implement the First Amendment and any subsequent amendments. Contact: Murray Levison, Administrative Officer, (916) 808-6195, Dave Mitchell, Operations Manager, (916) 808-6076, Department of Parks and Recreation Presenter: None Department: Parks & Recreation Department Division: Cover The Kids Dept ID: 19001751 Attachments:

_____________________________________________________________________________________________________________

1-Description/Analysis 2-Background 3-Resolution 4-ExhibitA_Agreement _________________________________________________________________________ City Attorney Review City Treasurer Review
Approved as to Form Matthew Ruyak 8/10/2011 11:49:09 AM Prior Council Financial Policy Approval or Outside City Treasurer Scope Russell Fehr

Eileen Teichert, City Attorney

Shirley Concolino, City Clerk

1 of Russell Fehr, City Treasurer 54

William H. Edgar, Interim City Manager

8/2/2011 10:09:33 AM

Approvals/Acknowledgements Department Director or Designee: Jim Combs - 8/3/2011 5:39:52 PM Assistant City Manager: Cassandra Jennings - 8/10/2011 9:37:47 AM

Eileen Teichert, City Attorney

Shirley Concolino, City Clerk

Russell Fehr, City Treasurer

2 of 54

William H. Edgar, Interim City Manager

Back to Table of Contents

Description/Analysis Issue: Cover The Kids, a program that helps provide access to affordable health care for children, was awarded in 2010 a three-year grant in the amount of $6,007,000, with two one-year renewal options, by the First 5 Sacramento Commission (First 5) to provide health coverage outreach, education and enrollment services to children ages 0-5. The City Council authorized the original agreement (2010-0610) with First 5 on July 27, 2010. Due to a loss of funding provided by the State to First 5 commissions throughout California, First 5 reduced the Cover The Kids grant amount to $2,449,750 and eliminated the renewal options. Because the reduction of grant funding is greater than $100,000, authorization is required to execute the amendment. This reduction in funding and staff reductions was addressed as part of the FY2011-12 Budget. Policy Considerations: Operation of the Cover The Kids program is consistent with the City's strategic plan to achieve sustainability and livability and its mission to protect, preserve and enhance the quality of life for present and future generations. Environmental Considerations: California Environmental Quality Act (CEQA): This report concerns administrative activities that will not have any significant effect on the environment and that do not constitute a "project," as defined by CEQA Guidelines sections 15061 (b)(3), 15378(b)(2). Sustainability: Not applicable Commission/Committee Action: None Rationale for Recommendation: Approval of this amendment is consistent with the Citys existing programming efforts and maintains the opportunity for extensive outreach and enrollment to families whose children are uninsured for health coverage. Financial Considerations: On May 12, 2011, Council heard report 2011-00472: FY 2011/12 Proposed Budget for the Department of Parks and Recreation. Contained in the report was information about the reduction in funding from the First 5 Sacramento Commission and a recommendation to reduce the budget for Cover The Kids by $430,716 and eliminate 7.00 FTE. The budget and FTE reduction was approved by Council on June 21, 2011, with the adoption of the FY2011/12 Operating Budget. The remaining funding from First 5 and from other sources is adequate to support the operation of the Cover The Kids program as adjusted due to budget reductions. There is no General Fund support required for this program. The three year grant funding of $2,449,750 is allocated as follows: FY2010/11 - $1,128,500, FY2011/12 - $645,000 and FY2012/13 - $676,250. Emerging Small Business Development (ESBD): There are no ESBD considerations with this report.

3 of 54

Back to Table of Contents

Attachment 1 Background

Cover The Kids, Sacramento Children's Health Initiative, is a broad-based collaborative partnership that represents both public and private entities that has been coordinating health insurance coverage outreach, enrollment (application assistance), retention and utilization services since late 1998. Cover The Kids expanded its efforts in 2003 and has developed a comprehensive plan to provide medical, dental and vision coverage to uninsured children in Sacramento County. Cover The Kids' charter focuses on two areas: 1) enrolling eligible children into existing health programs; and 2) creating an additional insurance product, Healthy Kids, for those kids that are ineligible for Medi-Cal and Healthy Families coverage. Cover The Kids has created a non-profit that administers the Healthy Kids (HK) program that is a part of a five county Regional Children's Health Initiative known as Healthy Kids, Healthy Future which includes Colusa, El Dorado, Placer, Sacramento and Yuba counties. Since inception, Cover The Kids has assisted the enrollment of over 37,000 children ages 0-18 in Sacramento County into comprehensive health insurance programs such as Medi-Cal, Healthy Families, Kaiser Permanentes Child Health Plan, and Healthy Kids. Cover The Kids is ranked as the 15th highest Enrollment Entity in California, due to the amount of children Cover The Kids enrolls into the Healthy Families program. Cover The Kids staff are Certified Application Assistants (CAAs) and are a culturally diverse group that represents the population of Sacramento County. CAAs assist families to complete enrollment applications, troubleshoot to help families resolve health access and enrollment issues, and ensure that children are retained in their health coverage.

4 of 54

Back to Table of Contents

RESOLUTION NO. Adopted by the Sacramento City Council

APPROVING FIRST AMENDMENT TO CITY AGREEMENT 2010-0610 WITH FIRST 5 SACRAMENTO COMMISSION FOR THE COVER THE KIDS PROGRAM BACKGROUND A. The Department of Parks and Recreation has operated the Cover The Kids program since 1998 successfully assisting more than 34,000 children access affordable health care. In July 2010, City Council authorized an agreement for a three-year grant with the First 5 Sacramento Commission (First 5) for up to $6,007,000, with two one-year renewal options, to provide health coverage outreach, education and enrollment to children ages 0-5 by the Citys Cover The Kids program. Due to a loss of funding provided by the State to First 5 commissions throughout California, First 5 reduced the Cover The Kids grant amount to $2,449,750 and eliminated the two one-year renewal options. Because the reduction of grant funding is greater than $100,000, authorization is required to execute the amendment. The Approved FY2011/12 budget included a reduction of the budget and staffing associated with the Cover The Kids program so that no other budget reductions are necessary to implement this agreement amendment. Because of State budget uncertainties, First 5 may choose to increase or decrease the grant amount in subsequent years and may extend the term of the grant agreement. Provided the Cover The Kids program has the capacity to operate under the proposed conditions and to give flexibility to the Cover The Kids program to respond to changing situations, approval is requested to authorize the City Manager to execute further amendments to the agreement, subject to approval as to form by the City Attorney, which may change the grant amount and/or agreement term as long as the amendment increases the maximum payment to the City by no more than $500,000 or decreases the maximum payment by any amount, and any additional services provided by the Cover The Kids program can be fully funded with the additional compensation.

B.

C.

D.

E.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS: Section 1. The City Manager or his designee is authorized to execute the First Amendment to City Agreement No. 2010-0610 with First 5 Sacramento Commission (First 5) for the Cover the Kids Program to reduce the grant amount from $6,007,000 to $2,449,750 and to eliminate the two one-year

5 of 54

renewal options. Section 2. The City Manager or his designee is authorized to enter into any additional amendments of the Cover the Kids program agreement with First 5, subject to approval as to form by the City Attorney, which may change the grant amount and/or agreement term as long as the amendment increases the maximum payment to the City by no more than $500,000 or decreases the maximum payment by any amount, and any additional services by the Cover The Kids program can be fully funded with the additional compensation. The City Manager is authorized to adjust the necessary operating and grant revenue and expenditure budgets to implement the First Amendment and any subsequent amendments. The First Amendment described in Section 1 is attached as Exhibit A and made a part of this Resolution.

Section 3.

Section 4.

Table of Contents: Exhibit A First Amendment with First 5 Sacramento Commission for Cover the Kids Program

6 of 54

Back to Table of Contents

Back to Table of Contents

7 of 54

8 of 54

9 of 54

10 of 54

11 of 54

12 of 54

13 of 54

14 of 54

15 of 54

16 of 54

17 of 54

18 of 54

19 of 54

20 of 54

21 of 54

22 of 54

23 of 54

24 of 54

25 of 54

26 of 54

27 of 54

28 of 54

29 of 54

30 of 54

31 of 54

32 of 54

33 of 54

34 of 54

35 of 54

36 of 54

37 of 54

38 of 54

39 of 54

40 of 54

41 of 54

42 of 54

43 of 54

44 of 54

45 of 54

46 of 54

47 of 54

48 of 54

49 of 54

50 of 54

51 of 54

52 of 54

53 of 54

54 of 54