8101 · 2003-05-21 · 8101 april 18, 2002 the honorable board of supervisors county of los angeles...

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8101 April 18, 2002 The Honorable Board of Supervisors County of Los Angeles 383 Kenneth Hahn Hall of Administration 500 West Temple Street Los Angeles, California 90012 Dear Supervisors: APPROVAL OF ONE ALCOHOL AND DRUG SERVICES DRUG/MEDI-CAL AGREEMENT WITH HEALTH, EDUCATION, & LEADERSHIP FOR PEOPLE, INC. AND ONE ALCOHOL AND DRUG SERVICES PROPOSITION 36 AGREEMENT WITH THE PAJO CORPORATION (All Districts) (3 Votes) IT IS RECOMMENDED THAT YOUR BOARD: Approve and instruct the Director of Health Services, or his designee, to offer and sign two alcohol and drug services agreements with: 1) Health, Education, & Leadership for People, Inc., substantially similar to Exhibit I, effective November 2, 2000 through June 30, 2002, for a maximum obligation of $180,253, 100% offset by Federal Block Grant funds and State General funds; and 2) The Pajo Corporation, substantially similar to Exhibit II, effective upon Board approval through June 30, 2006, for a maximum obligation of $234,000, 100% offset by Proposition 36 State funds. PURPOSE/JUSTIFICATION OF RECOMMENDED ACTION : In approving the recommended action, the Board is authorizing the Director of Health Services, or his designee, to enter into one Drug/Medi-Cal (D/MC) agreement with Health, Education, & Leadership for People, Inc. (HELP), to provide outpatient drug free (ODF), day care habilitative (DCH), perinatal ODF and perinatal DCH services, retroactive to the provider’s State certification date of November 2, 2000 through June 30, 2002, as provided under the State’s directive that County must contract with new D/MC providers requesting a contract effective upon the certification date; and 2) The Pajo Corporation to provide outpatient narcotic treatment maintenance (ONTM) and outpatient narcotic treatment program detoxification services (ONTPDTX), effective upon Board approval through June 30, 2006. On December 18, 2001, the Board of Supervisors approved the implementation of new

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8101

April 18, 2002

The Honorable Board of SupervisorsCounty of Los Angeles383 Kenneth Hahn Hall of Administration500 West Temple StreetLos Angeles, California 90012

Dear Supervisors:

APPROVAL OF ONE ALCOHOL AND DRUG SERVICES DRUG/MEDI-CAL AGREEMENTWITH HEALTH, EDUCATION, & LEADERSHIP FOR PEOPLE, INC. AND ONE ALCOHOLAND DRUG SERVICES PROPOSITION 36 AGREEMENT WITH THE PAJO CORPORATION

(All Districts) (3 Votes)

IT IS RECOMMENDED THAT YOUR BOARD:

Approve and instruct the Director of Health Services, or his designee, to offer and sign twoalcohol and drug services agreements with: 1) Health, Education, & Leadership for People, Inc., substantially similar to Exhibit I, effective November 2, 2000 through June 30, 2002, for amaximum obligation of $180,253, 100% offset by Federal Block Grant funds and State Generalfunds; and 2) The Pajo Corporation, substantially similar to Exhibit II, effective upon Boardapproval through June 30, 2006, for a maximum obligation of $234,000, 100% offset byProposition 36 State funds.

PURPOSE/JUSTIFICATION OF RECOMMENDED ACTION:

In approving the recommended action, the Board is authorizing the Director of Health Services, or hisdesignee, to enter into one Drug/Medi-Cal (D/MC) agreement with Health, Education, & Leadershipfor People, Inc. (HELP), to provide outpatient drug free (ODF), day care habilitative (DCH), perinatalODF and perinatal DCH services, retroactive to the provider’s State certification date of November 2,2000 through June 30, 2002, as provided under the State’s directive that County must contract withnew D/MC providers requesting a contract effective upon the certification date; and 2) The PajoCorporation to provide outpatient narcotic treatment maintenance (ONTM) and outpatient narcotictreatment program detoxification services (ONTPDTX), effective upon Board approval throughJune 30, 2006. On December 18, 2001, the Board of Supervisors approved the implementation of new

The Honorable Board of SupervisorsApril 18, 2002Page 2

agreements for residential and non-residential services under Proposition 36, Substance Abuse andCrime Prevention Act of 2000.

In addition, Board approval of the recommended actions will allow the Department of Health Services(Department or DHS), Alcohol and Drug Program Administration (ADPA) to comply with the State’s D/MC and Proposition 36 requirements.

The County has guidelines for the timely submission of contracts for Board approval. However, theagreement with HELP, Inc. is retroactive to the agency’s certification date of November 2, 2000,approved by the State, consistent with State guidelines. The Proposition 36 agreement was allocated toTri-City Mental Health instead of to The Pajo Corporation “dba” Tri City Institute that is licensed toprovide narcotic treatment services. No services were provided by Tri-City Mental Health resulting inno funding being spent. The Program Office informed the Board Offices in a memo dated January 18,2002, informing them of the issue and the corrective action to reallocate funds.

FISCAL IMPACT/FINANCING:

The County’s total maximum obligation for: 1) HELP, Inc. is $180,253 ($11,038 for Fiscal Year (FY)2000-01 and $81,540 for FY 2001-02 in Federal D/MC funds; and $10,454 for FY 2000-01 and$77,221 for FY 2001-02 in State D/MC funds), 100% offset by Federal Block Grant funds and StateGeneral funds, as provided under the State Department of Alcohol and Drug Program’s D/MCagreement with the County; and 2) The Pajo Corporation is $234,000 ($22,000 for FY 2001-02,$53,000 for FY 2002-03, $53,000 for FY 2003-04, $53,000 for FY 2004-05 and $53,000 for FY2005-06), 100% offset by Proposition 36 State funds. No services were provided by Tri-City MentalHealth resulting in no funding being spent.

Funds for both of these agreements are included in the DHS FY 2001-02 Board Adopted Budget andwill be requested as an ongoing appropriation in future fiscal years for the continued provision ofnarcotic treatment services as appropriate. There are no County costs associated with theseagreements.

FACTS AND PROVISIONS/LEGAL REQUIREMENTS:

Health, Education, & Leadership For People, Inc.:

On August 19, 1994, as a result of Sobky v. Smoley, the Federal court ordered the State Department ofAlcohol and Drug Program (SDADP) to: a) ensure availability of methadone maintenance treatmentservices throughout the State, either through direct contracts or through subcontracts with variouscounties, where licensed methadone maintenance treatment programs are available; b) expedite requestsfor licensed methadone maintenance treatment providers for Medi-Cal provider certification; c) ensure thatall Medi-Cal eligible persons receive methadone maintenance treatment services with "reasonablepromptness", and d) ensure that no Medi-Cal eligible person be put on a waiting list to receive servicesdue to budgetary constraints. While the court's judgement specifically focused on methadone maintenancetreatment services, the SDADP applied the judgement to all drug abuse treatment programs supported byMedi-Cal funding.

The Honorable Board of SupervisorsApril 18, 2002Page 3

As a result, the SDADP's agreement with the County, which provides funding support, requires theCounty to enter into agreements with all State-certified D/MC service providers who request servicecontracts with the County, effective upon certification date. Under the agreement, the SDADP agrees tocover the costs of all D/MC services provided to Medi-Cal beneficiaries. SDADP has further agreed tofund agreements, effective as of the date of a D/MC provider’s certification, or July 1 of the current fiscalyear, whichever start date is requested by the provider, allowing for State-approved retroactive paymentsto the provider.

Board approval to enter into D/MC agreements will be requested from time-to-time as new D/MCproviders are certified by the State.

The Pajo Corporation

In a January 18, 2002 memo, ADPA informed the Board offices that the Department had allocated fundsfor a new agreement with Tri-City Mental Health to provide narcotic treatment services under theSubstance Abuse and Crime Prevention Act of 2000 (Proposition 36). This agency is not licensed forthese types of services, therefore the funds would be reallocated to The Pajo Corporation dba Tri CityInstitute, that is licensed to perform these services.

On March 2, 2002, Contracts and Grants Division received ADPA’s request for a new agreement underProposition 36 for narcotic treatment services with The Pajo Corporation, retroactive to December 18,2001, which is the date the Board of Supervisors approved the implementation of new agreements underProposition 36.

Approval of this action will allow narcotic treatment services to be provided to eligible Proposition 36participants and the Department will be in compliance with the requirements of this program. Alcohol and drug services agreements may be terminated immediately for breach or for convenience witha 30-day advance written notice by either party.

Attachment A provides additional information.

Exhibits I and II have been approved as to use and form by County Counsel.

CONTRACTING PROCESS:

It is not appropriate to advertise D/MC agreements on the Office of Small Business' Countywide Web Sitebecause this contracting opportunity is restricted to State-certified D/MC providers and new agreementsfor services to drug offenders eligible to participate in the Proposition 36 program were issued to currentalcohol and drug abuse services contract providers from each Service Planning Area.

IMPACT ON CURRENT SERVICES (OR PROJECTS):

The recommended Board action will continue to provide availability of D/MC and Proposition 36 servicesto residents throughout Los Angeles County.

The Honorable Board of SupervisorsApril 18, 2002Page 4

When approved, this Department requires four signed copies of the Board's action.

Respectfully submitted,

Thomas L. Garthwaite, M. D.Director and Chief Medical Officer

TLG:gh

Attachments

c: Chief Administrative OfficerCounty CounselExecutive Officer, Board of Supervisors

BLTCD1875.GH03/29/2002

ATTACHMENT A

SUMMARY OF AGREEMENTS

1. TYPE OF SERVICE:

Drug/Medi-Cal (D/MC) Outpatient Drug Free (ODF), Day Care Habilitative (DCH), Perinatal DCH andPerinatal ODF, and Proposition 36 outpatient narcotic treatment maintenance and narcotic treatmentdetoxification services.

2. AGENCY ADDRESSES AND CONTACT PERSONS:

Health Education & Leadership for People, Inc. The Pajo Corporation4045 Wilshire Boulevard 2080 Century Park East, Suite 1802Los Angeles, California 90010 Century City, California 90067Attention: Daniel Joseph, Administrator Attention: Carolyn A. Perry, P.A.Telephone: (213) 365-1704 / Executive DirectorFacsimile (FAX): (213) 365-1546 Telephone: (310) 553-9500 /

Facsimile (FAX): (310) 553-7247

3. TERMS:

Health, Education, & Leadership for People, Inc.: November 2, 2000 through June 30, 2002The Pajo Corporation: Effective upon Board approval through June 30,

2006

4. FINANCIAL INFORMATION:

The County’s total maximum obligation for: 1) HELP, Inc., is $180,253 ($11,038 for Fiscal Year (FY) 2000-01and $81,540 for FY 2001-02 in Federal D/MC funds; and $10,454 for FY 2000-01 and $77,221 for FY 2001-02 in State D/MC funds), 100% offset by Federal Block Grant funds and State General funds, as providedunder the State Department of Alcohol and Drug Program’s D/MC agreement with the County, and 2) The PajoCorporation, is $234,000 ($22,000 for FY 2001-02, $53,000 for FY 2002-03, $53,000 for FY 2003-04,$53,000 for FY 2004-05 and $53,000 for FY 2005-06), 100% offset by Proposition 36 State funds. Noservices were provided by Tri-City Mental Health resulting in no funding being spent.

Funds for both of these agreements are included in the DHS FY 2001-02 Board Adopted Budget and will berequested as an ongoing appropriation in future fiscal years for the continued provision of narcotic treatmentservices as appropriate. There are no County costs associated with these agreements.

5. GEOGRAPHIC AREAS SERVED:

All Supervisorial Districts.

6. ACCOUNTABILITY FOR PROGRAM MONITORING AND EVALUATION:

Patrick L. Ogawa, Director, Alcohol and Drug Program Administration

7. APPROVALS:

Public Health: John F. Schunhoff, Ph.D., Chief of Operations

Alcohol and Drug Program Administration: Patrick L. Ogawa, Director

Contracts and Grants Division: Riley J. Austin, Acting Chief

County Counsel (as to form): Robert E. Ragland, Deputy County Counsel

BLTCD1875.GH

03/29/02

EXHIBIT I

Contract No. (D/MC;NR)

ALCOHOL AND DRUG SERVICES AGREEMENT(DRUG MEDI-CAL)

THIS AGREEMENT is made and entered into this ___________ day

of _____________________, 2002,

by and between COUNTY OF LOS ANGELES (hereafter"County"),

and HEALTH, EDUCATION, & LEADERSHIPFOR PEOPLE INC.(hereafter"Contractor").

WHEREAS, the term "Code" as used herein refers to Title 9 of

the California Code of Regulations ("CCR"); and

WHEREAS, this Agreement is contemplated and authorized by

Welfare and Institutions Code Section 14021.5, Health and Safety

Code Sections 11758.10 et seq., 11758.20 et seq., 11983.2,

11983.6, 11987.5 and 11991.2; and Government Code Section 26227;

and, to the extent this Agreement is funded by Federal Block

Grant funds, also by Health and Safety Code Sections 11754 and

11775, and Government Code Section 53703; and

WHEREAS, the terms "ADPA" and "SDADP", as used in this

Agreement, refer to County's Alcohol and Drug Program

Administration and the State Department of Alcohol and Drug

Programs, respectively; and

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WHEREAS, throughout this Agreement, the term "participant"

shall be used interchangeably with the terms "client", "patient",

and "resident" unless otherwise noted; and

WHEREAS, the term "maximum obligation" as may be used in

various attachments to this Agreement shall now be replaced by

the term "estimated maximum obligation"; and

WHEREAS, Paragraph 13, FUNDING/SERVICES ADJUSTMENTS AND

REALLOCATIONS, of the Additional Provisions, only applies to Non-

Drug/Medi-Cal agreements, and shall not apply to any Drug/Medi-

Cal action taken herein; and

WHEREAS, throughout this Agreement, the term "Exhibits",

refers to Exhibit(s) A, B, C, and D, and the term "Schedules"

refers to Schedule(s) A, B, C, and D, and the term "Budgets"

refers to Budget(s) Not Applicable , inclusively, unless

otherwise noted; and

WHEREAS, the term "Director", as used in this Agreement,

refers to County's Director of Health Services or his/her

authorized designee; and

WHEREAS, the term "fiscal year", as used in this Agreement,

refers to County's fiscal year which commences July 1 and ends

the following June 30.

NOW, THEREFORE, the parties hereto agree as follows:

1. TERM: The term of this Agreement shall be effective

November 2, 2000 and shall continue in full force and effect to

and including June 30, 2002.

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In any event, this Agreement may be canceled or terminated

at any time by either party, with or without cause, upon the

giving of at least thirty (30) days' written notice to the other.

Further, County may also suspend the performance of services

hereunder, in whole or in part, upon the giving of at least a

thirty (30) days' written notice to Contractor. County's notice

shall set forth the extent of the suspension and the requirements

for full restoration of the performance obligations.

County may also terminate this Agreement immediately upon

the occurrence of any of the following events: (1) Federal

and/or State funds are not available for this Agreement or for

any portion hereof; (2) to the extent funding for this Agreement

is contingent on the review and recommendation for approval by

the Local Lead Agency, such as ADPA, or any local agency

designated by the ADPA to administer such review and

recommendation, or by SDADP and such review or approval is not

given; (3) to the extent that Contractor is approved to provide

methadone maintenance services, and the approval granted

Contractor by either Food and Drug Administration (FDA), Drug

Enforcement Administration (DEA), SDADP, or all, to serve as a

methadone maintenance service provider is withdrawn; and/or (4)

Contractor fails to initiate delivery of services within thirty

(30) days of the commencement date of this Agreement. Notice of

such termination, as described above, shall be given to

Contractor in writing.

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Notwithstanding any other provision of this Paragraph, the

failure of Contractor or its officers, employees, or agents to

comply with any of the terms of this Agreement or any written

directions by or on behalf of County issued pursuant hereto shall

constitute a material breach hereof, and this Agreement may be

terminated by County immediately. County's failure to exercise

this right of termination shall not constitute a waiver of such

right, which may be exercised at any subsequent time.

In the event of any termination of this Agreement,

Contractor shall:

A. Make immediate and appropriate plans to transfer or

refer all participants served under this Agreement to other

County drug abuse services providers (i.e., contract

agencies) for continuing service in accordance with the

participant's needs. Such plans shall be approved by

Director, before any transfer or referral is completed,

except in those instances, as determined by Contractor,

where an immediate participant transfer or referral is

indicated. In such instances, Contractor may make an

immediate transfer or referral to the nearest provider of

drug abuse services.

B. Immediately eliminate all new costs and expenses

under this Agreement. New costs and expenses include, but

shall not be limited to, those associated with new

participant admissions. In addition, Contractor shall

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immediately minimize all other costs and expenses under this

Agreement. Contractor shall be reimbursed only for

reasonable and necessary costs or expenses incurred after

receipt of Contractor's notice of termination.

C. Promptly report to County in writing all information

necessary for the reimbursement of any outstanding claims

and continuing costs.

D. Provide to County's Department of Health Services

(DHS), Financial Services Division, within forty-five (45)

days after such termination date, an annual cost report as

set forth in the ANNUAL COST REPORT Paragraph of the

ADDITIONAL PROVISIONS, attached hereto.

2. DESCRIPTION OF SERVICES:

A. Contractor shall provide services in the form as

described in the body of this Agreement and in the following

documents, which are incorporated herein by reference:

(1) Exhibit A - Outpatient Drug Free Services(Federal Drug/Medi-Cal)

(2) Exhibit B - Day Care Habilitative Services(Federal Drug/Medi-Cal)

(3) Exhibit C - Perinatal Outpatient Drug FreeServices (Federal Drug/Medi-Cal)

(4) Exhibit D - Perinatal Day Care HabilitativeServices (Federal Drug/Medi-Cal)

(5) ADDITIONAL PROVISIONS - DEPARTMENT OF HEALTHSERVICES - ALCOHOL AND DRUG PROGRAMADMINISTRATION - ALCOHOL AND DRUG SERVICESAGREEMENT - July 1, 2001

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(6) DRUG/MEDI-CAL CERTIFICATION STANDARDS FORSUBSTANCE ABUSE CLINICS - October 1, 1994

(7) STATE OF CALIFORNIA STANDARDS FOR DRUGTREATMENT PROGRAMS - Revised September 1982

(8) PERINATAL SERVICES NETWORK GUIDELINES - Fall1995

(9) APPEAL PROCESSES

Contractor hereby acknowledges receiving the above

referenced documents numbers (1) through (5) attached

hereto, and numbers (6) through (9) not attached hereto.

B. The quality of service(s) provided under this

Agreement shall be at least equivalent to the same services

that Contractor provides to all other participants it

serves.

3. NONEXCLUSIVITY: Contractor acknowledges that it is not

the exclusive provider to County of alcohol and drug services to

be provided under this Agreement, that County has, or intends to

enter into, contracts with other providers of such services, and

that County reserves the right to perform the services with its

own County personnel. During the term of this Agreement,

Contractor agrees to provide County with the services described

in the Agreement.

4. ESTIMATED MAXIMUM OBLIGATION OF COUNTY:

A. During the period November 2, 2000 through June 30,

2002, the estimated maximum obligation of County for all

services provided under this Agreement is One Hundred

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Fifty-Eight Thousand, Seven Hundred Sixty-One Dollars

($158,761). This sum represents the total estimated maximum

obligation of County as determined by adding each maximum

allocation shown in the Exhibits, attached hereto.

B. During the term of this Agreement, County will

reimburse Contractor for the provision of services hereunder

subject to the availability of sufficient funds from the

SDADP and the approval of Contractor's costs by ADPA. The

parties hereto acknowledge that each of the estimated

maximum obligations provided hereinabove are not intended to

be, nor shall be, a statement of County's obligation to

Contractor, but are used herein for County's fiscal and

accounting purposes only.

C. During the term of this Agreement, County and

Contractor shall review Contractor's expenditures and

commitments to utilize any funds, which are specified in

this Agreement for the services hereunder and which are

subject to time limitations as determined by Director,

midway through each County fiscal year during the term of

this Agreement, midway through the applicable time

limitation period for such funds if such period is less than

a County fiscal year, and/or at any other time or times

during each County fiscal year as determined by Director.

At least fifteen (15) days prior to each such review,

Contractor shall provide Director with a current update of

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all of Contractor's expenditures and commitments of such

funds during such fiscal year or other applicable time

period.

If the County determines from a review of Contractor's

service and billing records that a significant portion of

the funds provided for services under this Agreement will be

underutilized over any period of the Agreement term, then

the ADPA's Director, upon written notification to

Contractor, shall be allowed to adjust the use of these

underutilized funds by the moving of such funds into another

Exhibit, Schedule, and/or Budget category within this

Agreement, or reallocate such funds into another Drug/Medi-

Cal funded Agreement with another provider, that readily

provides for the efficient use of such funds before the

expiration of this Agreement's term. ADPA's Director shall

provide prior written notice of such funding changes to

Contractor, including any changes in the amount of services

to be received by County, to Contractor, DHS' Contracts and

Grants Division, and to County's Chief Administrative

Officer. Any such change in any County estimated maximum

obligation, and corresponding maximum allocation(s), shall

be effected by an administrative amendment to this Agreement

by ADPA's Director.

D. If, at any time during the term of this Agreement or

at any time after the expiration or termination of this

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Agreement, authorized representatives of Federal, State, or

County governments conduct an audit of Contractor regarding

the services provided to County hereunder and if such audit

finds that County's dollar liability for such services is

less than payments made by County to Contractor, then

Contractor agrees that the difference shall be either: (1)

repaid forthwith by Contractor to County by cash payment or

(2) at Director's option, credited against any amounts due

by County to Contractor under this Agreement. If such audit

finds that County's dollar liability for services provided

hereunder is more than payments made by County to

Contractor, then the difference shall be paid to Contractor

by County by cash payment, provided that in no event shall

County be liable to pay Contractor for an amount greater

than Contractor's actual costs under this Agreement and an

amount greater than that made available to County by SDADP

in order to reimburse Contractor.

E. This Agreement is valid and enforceable only if

sufficient funds are made available to County by the State,

through the Federal government, specifically to support

services provided under this Agreement. In addition, this

agreement shall be subject to any additional conditions,

limitations, and/or restrictions which are enacted by the

Federal government, or any statue enacted by the Federal

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government, which may affect the provisions, terms, and

funding of this Agreement in any manner.

5. COMPENSATION: County agrees to compensate Contractor

for performing alcohol and drug services hereunder, as set forth

in the PAYMENT Paragraph of the ADDITIONAL PROVISIONS, the

REIMBURSEMENT Paragraph of the Exhibit(s), and in the Schedule(s)

(any applicable Budget[s] thereto), all attached hereto and

incorporated by reference.

6. NON-APPROPRIATION OF FUNDS CONDITION: Notwithstanding

any other provision of this Agreement, County shall not be

obligated by any provision of this Agreement during any of

County's fiscal years unless funds to cover County's costs

hereunder are appropriated by County's Board of Supervisors. In

the event that funds are not appropriated for this Agreement,

then this Agreement shall deemed to have terminated on June 30th

of the prior fiscal year. County shall notify Contractor in

writing of such non-appropriation of funds at the earliest

possible date.

7. INDEMNIFICATION: Contractor shall indemnify, defend,

and hold harmless County and its Special Districts, elected and

appointed officers, employees, and agents from and against any

and all liability, including but not limited to demands, claims,

actions, fees, costs, and expenses (including attorney and expert

witness fees), arising from or connected with Contractor’s acts

and/or omissions arising from and/or relating to this Agreement.

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8. GENERAL INSURANCE REQUIREMENTS: Without limiting

Contractor's indemnification of County and during the term of

this Agreement, Contractor shall provide and maintain, and shall

require all of its subcontractors to maintain, the following

programs of insurance specified in this Agreement. Such

insurance shall be primary to and not contributing with any other

insurance or self-insurance programs maintained by County, and

such coverage shall be provided and maintained at Contractor’s

own expense.

A. Evidence of Insurance: Certificate(s) or other

evidence of coverage satisfactory to County shall be

delivered to County's Department of Health Services,

Contracts and Grants Division, 313 North Figueroa Street,

Sixth Floor-East, Los Angeles, California 90012, prior to

commencing services under this Agreement. Such certificates

or other evidence shall:

(1) Specifically identify this Agreement.

(2) Clearly evidence all coverages required in this

Agreement.

(3) Contain the express condition that County is to

be given written notice by mail at least thirty (30)

calendar days in advance of cancellation for all

policies evidenced on the certificate of insurance.

(4) Include copies of the additional insured

endorsement to the commercial general liability policy,

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adding County of Los Angeles, its Special Districts, its

officials, officers, and employees as insureds for all

activities arising from this Agreement.

(5) Identify any deductibles or self-insured

retentions for County’s approval. County retains the

right to require Contractor to reduce or eliminate such

deductibles or self-insured retentions as they apply to

County, or, require Contractor to provide a bond

guaranteeing payment of all such retained losses and

related costs, including, but not limited to, expenses

or fees, or both, related to investigations, claims

administrations, and legal defense. Such bond shall be

executed by a corporate surety licensed to transact

business in the State of California.

B. Insurer Financial Ratings: Insurance is to be

provided by an insurance company acceptable to County with

an A.M. Best rating of not less than A:VII, unless otherwise

approved by County.

C. Failure to Maintain Coverage: Failure by Contractor

to maintain the required insurance, or to provide evidence

of insurance coverage acceptable to County, shall constitute

a material breach of contract upon which County may

immediately terminate or suspend this Agreement. County, at

its sole option, may obtain damages from Contractor

resulting from said breach. Alternatively, County may

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purchase such required insurance coverage, and without

further notice to Contractor, County may deduct from sums

due to Contractor any premium costs advanced by County for

such insurance.

D. Notification of Incidents, Claims, or Suits:

Contractor shall report to County:

(1) Any accident or incident relating to services

performed under this Agreement which involves injury or

property damage which may result in the filing of a

claim or lawsuit against Contractor and/or County. Such

report shall be made in writing within twenty-four (24)

hours of occurrence.

(2) Any third party claim or lawsuit filed against

Contractor arising from or related to services performed

by Contractor under this Agreement.

(3) Any injury to a Contractor employee which

occurs on County property. This report shall be

submitted on a County "Non-Employee Injury Report" to

County contract manager.

(4) Any loss, disappearance, destruction, misuse,

or theft of any kind whatsoever of County property,

monies, or securities entrusted to Contractor under the

terms of this Agreement.

E. Compensation for County Costs: In the event that

Contractor fails to comply with any of the indemnification

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or insurance requirements of this Agreement, and such

failure to comply results in any costs to County, Contractor

shall pay full compensation for all costs incurred by

County.

F. Insurance Coverage Requirements for Subcontractors:

Contractor shall ensure any and all subcontractors

performing services under this Agreement meet the insurance

requirements of this Agreement by either:

(1) Contractor providing evidence of insurance

covering the activities of subcontractors, or

(2) Contractor providing evidence submitted by

subcontractors evidencing that subcontractors maintain

the required insurance coverage. County retains the

right to obtain copies of evidence of subcontractor

insurance coverage at any time.

9. INSURANCE COVERAGE REQUIREMENTS:

A. General Liability Insurance (written on ISO policy

form CG 00 01 or its equivalent) with limits of not less

than the following:

General Aggregate: $2 Million

Products/Completed OperationsAggregate: $1 Million

Personal and AdvertisingInjury: $1 Million

Each Occurrence: $1 Million

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B. Automobile Liability Insurance (written on ISO

policy form CA 00 01 or its equivalent) with a limit of

liability of not less than $1 Million for each accident.

Such insurance shall include coverage for all "owned",

"hired" and "non-owned" vehicles, or coverage for "any

auto".

C. Workers Compensation and Employers’ Liability:

Insurance providing workers compensation benefits, as

required by the Labor Code of the State of California or by

any other state, and for which Contractor is responsible.

In all cases, the above insurance also shall include

Employers’ Liability coverage with limits of not less than

the following:

Each Accident: $1 Million

Disease - Policy Limit: $1 Million

Disease - Each Employee: $1 Million

D. Professional Liability: Insurance covering

liability arising from any error, omission, negligent or

wrongful act of Contractor, its officers or employees with

limits of not less than $1 Million per occurrence and $3

Million aggregate. The coverage also shall provide an

extended two-year reporting period commencing upon

expiration or earlier termination or cancellation of this

Agreement.

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10. PROHIBITION AGAINST ASSIGNMENT AND DELEGATION:

A. Contractor shall not assign its rights or delegate

its duties under this Agreement, or both, whether in whole

or in part, without the prior written consent of County.

Any assignment or delegation which does not have such prior

County consent shall be null and void. For purposes of this

Paragraph, such County consent shall require a written

amendment to this Agreement which is formally approved and

executed by the parties. Any billings to County by any

delegatee or assignee on any claim under this Agreement,

absent such County consent, shall not be paid by County.

Any payments by County to any delegatee or assignee on any

claim under this Agreement, in consequence of any such

County consent, shall reduce dollar for dollar any claims

which Contractor may have against County and shall be

subject to set-off, recoupment, or other reduction for any

claims which County may have against Contractor, whether

under this Agreement or otherwise.

B. Shareholders or partners, or both, of Contractor may

sell, exchange, assign or divest, or otherwise transfer any

interest they may have therein. However, in the event any

such sale, exchange, assignment, divestment, or other

transfer is effected in such a way as to give majority

control of Contractor to any person(s), corporation,

partnership, or legal entity other than the majority

- 17 -

controlling interest therein at the time of execution of

this Agreement, then prior written consent thereof by

County’s Board of Supervisors shall be required. Any

payments by County to Contractor on any claim under this

Agreement shall not waive or constitute such County consent.

Consent to any such sale, exchange, assignment, divestment,

or other transfer shall be refused only if County, in its

sole judgement, determines that the transferee(s) is (are)

lacking in experience, capability, or financial ability to

perform all Agreement services and other work. This in no

way limits County's right found elsewhere in this Agreement,

including, but not limited to, any right to terminate this

Agreement.

11. SUBCONTRACTING:

A. For purposes of this Agreement, subcontracts shall

be approved by Director or his/her authorized designee(s).

Contractor’s request to Director for approval of a

subcontract shall include:

(1) Identification of the proposed subcontractor,

(who shall be licensed as appropriate for provision of

subcontract services), and an explanation of why and

how the proposed subcontractor was selected, including

a description of the Contractor’s efforts to obtain

competitive bids.

- 18 -

(2) A description of the services to be provided by

the subcontract.

(3) The proposed subcontract amount, together with

Contractor's cost or price analysis thereof.

(4) A copy of the proposed subcontract. Any later

modification of such subcontract shall take the form of

a formally written subcontract amendment which must be

approved in writing by Director before such amendment

is effective.

(5) Any other information and/or certification(s)

requested by County.

B. Subcontracts issued pursuant to this Paragraph shall

be in writing and shall contain at least the intent of all

of the Paragraphs of the body of this Agreement, including

the ADDITIONAL PROVISIONS, and the requirements of the

Exhibits(s) and Schedule(S) attached hereto.

C. At least thirty (30) calendar days prior to the

subcontract’s proposed effective date, Contractor shall

submit for review and approval to Director, a copy of the

proposed subcontract instrument. With the Director’s

written approval of the subcontract instrument, the

subcontract may proceed.

D. Subcontracts shall be made in the name of Contractor

and shall not bind nor purport to bind County. The making

of subcontracts hereunder shall not relieve Contractor of

- 19 -

any requirement under this Agreement, including, but not

limited to, the duty to properly supervise and coordinate

the work of subcontractors. Approval of the provisions of

any subcontract by County shall also not be construed to

constitute a determination of the allowability of any cost

under this Agreement. In no event shall approval of any

subcontract by County be construed as effecting any increase

in the amount contained in MAXIMUM OBLIGATION OF COUNTY

Paragraph.

E. In the event that County consents to any

subcontracting, Contractor shall be solely liable and

responsible for any and all payments or other compensation

to all subcontractors, and their officers, employees, and

agents.

F. In the event that County consents to any

subcontracting, such consent shall be subject to County’s

right to give prior and continuing approval of any and all

subcontractor personnel providing services under such

subcontract. Contractor shall assure that any subcontractor

personnel not approved by County shall be immediately

removed from the provision of any services under the

particular subcontract or that another action is taken, as

requested by County.

G. In the event that County consents to any

subcontracting, such consent shall be subject to County’s

- 20 -

right to terminate, in whole or in part, any subcontract at

any time upon written notice to Contractor when such action

is deemed by County to be in its best interest. County

shall not be liable or responsible in any way to Contractor,

or any subcontractor, or to any officers, employees, or

agents, or any subcontractor, for liability, damages, cost,

or expenses, arising from or related to County’s exercising

of such a right.

H. Contractor shall deliver to Director a fully

executed copy of each subcontract entered into by

Contractor, as it pertains to the provision of services

under this Agreement, on or immediately after the effective

date of the subcontract, but in no event, later than the

date any services are performed under the subcontract.

I. Director is hereby authorized to act for and on the

behalf of County pursuant to this Paragraph, including, but

not limited to, consenting to any subcontracting.

12. COMPLIANCE WITH APPLICABLE LAW:

A. Contractor shall comply with all Federal, State, and

local laws, ordinances, regulations, rules, guidelines, and

directives, applicable to its performance hereunder, as they

are now enacted or may hereafter be amended. To the extent

there is any conflict between Federal and State or local

laws, the former shall prevail.

- 21 -

In addition, in the performance of this Agreement,

Contractor shall specifically comply with the requirements

of Health and Safety Code, Division 10.5, Parts 1 and 3,

commencing with Section 11750 et seq.; Titles 9 and 22 of

the CCR; SDADP Drug Program and Drug Program/Medi-Cal

policies as identified in policy letters and the Department

of Health Services Substance Abuse Program Contract

Financial Handbook; written procedures as may be provided to

Contractor by ADPA; as well as all other applicable Federal,

State, and local laws, regulations, guidelines, and

directives.

Further, methadone maintenance services providers shall

also specifically comply with all applicable provisions of

Health and Safety Code Division 10, Chapter 5, Article 2

(Treatment of Addicts for Addiction) [Sections 11215, et

seq.]; Title 9 CCR Chapter 4, Subchapter 4 (Methadone

Treatment Programs) [Sections 1000, et seq.]; Drug Abuse

Prevention Treatment, and Rehabilitation Act of 1972 (21

U.S.C. Sections 1101, et seq.) and Federal regulations

pertaining thereto; regulations of the Food and Drug

Administration ("FDA"), including Title 21 CFR Section

291.505, and the Drug Enforcement Administration ("DEA"); as

well as all other applicable Federal, State, and local laws,

regulations, guidelines, and directives. To the extent

- 22 -

there is any conflict between Federal and State or local

law, the former shall prevail.

Any reference to a specific statute, regulation, or any

other document not prepared by County is deemed to include a

reference to any amendment thereto as of the effective date

of such amendment; further, this Agreement shall be

interpreted and the parties' duties and obligations under

this Agreement shall be consistent with any amendment to any

applicable statute, regulation or other document not

prepared by County which occurs after the effective date of

the Agreement.

B. Contractor shall indemnify and hold harmless County

from and against any and all loss, damage, liability, or

expense resulting from any violation on the part of

Contractor, its officers, employees, or agents, of such

Federal, State, or local laws, ordinances, regulations,

rules, guidelines, or directives.

13. CONFLICT OF TERMS: To the extent that there exists any

conflict or inconsistency between the language of this Agreement

body and its Additional Provisions, and that of the Exhibit(s),

Schedule(s), and any other documents incorporated herein by

reference (e.g., Budget[s] and/or Statement of Work forms), the

language found within this Agreement and its Additional

Provisions, shall govern and prevail.

- 23 -

14. ALTERATION OF TERMS: The body of this Agreement and

its Additional Provisions, Exhibits, Schedules, and Budgets,

attached hereto, fully expresses all understandings of the

parties concerning all matters covered and shall constitute the

total Agreement. No addition to, or alteration of, the terms of

this Agreement, whether by written or verbal understanding of the

parties, their officers, employees or agents, shall be valid and

effective unless made in the form of a written amendment to this

Agreement which is formally approved and executed by the parties

in the same manner as this Agreement.

15. CONTRACTOR'S OFFICE: Contractor's primary business

office is located at 4045 Wilshire Boulevard, Los Angeles,

California 90010. Contractor's primary business telephone number

is (213) 365-1704 and facsimile/FAX number is (213) 365-1546.

Contractor shall notify County, in writing, of any changes made

to Contractor's primary business address, business telephone

number and/or facsimile/FAX number as listed herein, or any other

business address, business telephone number and/or facsimile/FAX

number used in the provision of services herein, at least ten

(10) days prior to the effective date(s) thereof.

16. NOTICES: Notices hereunder shall be in writing and may

either be delivered personally or sent by registered or certified

mail, return receipt requested, postage prepaid, attention to the

parties at the addresses listed below. Director is authorized to

execute all notices or demands which are required or permitted by

- 24 -

County under this Agreement. Addresses and parties to be

notified may be changed by providing at least ten (10) working

days prior written notice to the other party.

A. Notices to County shall be addressed as follows:

(1) Department of Health ServicesContracts and Grants Division313 North Figueroa Street, Sixth Floor-EastLos Angeles, California 90012-2659

Attention: Division Chief

(2) Department of Health ServicesAlcohol and Drug Program Administration1000 South Fremont AvenueBuilding A-9 East, Third FloorAlhambra, California 91803

Attention: Director

B. Notices to Contractor shall be addressed as follows:

(1) Health, Education, & Leadership forPeople Inc.4045 Wilshire BoulevardLos Angeles, California 90010

Attention: Daniel Joseph, Administrator

IN WITNESS WHEREOF, the Board of Supervisors of the County

of Los Angeles has caused this Agreement to be subscribed by its

/

/

/

/

/

/

- 25 -

Director of Health Services, and Contractor has caused this

Agreement to be subscribed in its behalf by its duly authorized

officer, the day, month, and year first above written.

COUNTY OF LOS ANGELES

By Thomas L. Garthwaite, M.D.Director and Chief Medical Officer

HEALTH, EDUCATION, & LEADERSHIPFOR PEOPLE INC.

Contractor

By Signature

Print Name

Title (AFFIX CORPORATE SEAL HERE)

APPROVED AS TO FORMBY THE OFFICE OF THE COUNTY COUNSELLLOYD W. PELLMANCounty Counsel

APPROVED AS TO CONTRACTADMINISTRATION:

Department of Health Services

By ___________________________ Acting Chief, Contracts and Grants Division

03/13/02ADCD1379.LVBADCD1319.GH 10/11/01

(Cost/R/PR)

HEALTH, EDUCATION, & LEADERSHIP FOR PEOPLE INC.

EXHIBIT A

OUTPATIENT DRUG FREE SERVICES(FEDERAL DRUG/MEDI-CAL)

1. DEFINITION: Outpatient drug free services are drug

services which include crisis intervention, counseling, and

client referral services. Referrals may be made to medical

detoxification services, recovery home services, methadone

services, psychiatric services, or other appropriate treatment

service providers. Based upon the continuing treatment needs of

the client (including, but not limited to, homeless clients),

duration of any individual's treatment hereunder shall not exceed

twelve (12) months without the prior written approval of

Director. Clients shall receive counseling at least twice within

each thirty (30) day period. Clients not returning for services

within thirty (30) days shall be discharged.

For purposes of this Exhibit, "homeless" clients are defined

as those individuals with a drug abuse problem who lack shelter

and the financial resources to acquire shelter, and whose regular

nighttime dwelling is in the streets, parks, subways, bus

terminals, railroad stations, airports, and other similar

locations.

- 2 -

2. PERSONS TO BE SERVED: Outpatient drug free services

shall be furnished to Medi-Cal eligible beneficiaries meeting

certain admission criteria as defined in Title 22 California Code

of Regulations ("CCR") Section 51303. Contractor shall provide

covered services to Medi-Cal beneficiaries without regard to the

beneficiaries' county of residence. Unless a specific special

population(s) is identified immediately below, services will be

made available to male and female clients of all ages, and to all

ethnic and special population groups.

Specific special population(s) to be served is(are)

eligible Drug/Medi-Cal beneficiaries that abuse drugs and

alcohol . The Contractor will serve: X males/ X females. The

age group(s) to be served is(are) 18 years and over .

3. SERVICE DELIVERY SITE(S) AND DAYS AND HOURS OF

OPERATION: Contractor's facility(ies), where outpatient drug

free services are to be provided, and the days and hours of

operation for reception and program entry, or when services are

to be provided herein, are as follows:

Facility 1 is located at 4045-4049 A-D, Wilshire Boulevard,

Los Angeles, California 90010. Contractor's facility telephone

number is (213) 365-1704 and facsimile/FAX number is

(213) 365-1546. Contractor's facility days and hours of

operation are Monday through Saturday, 9:00 a.m. to 5:00 p.m.

- 3 -

Facility 2 is located at

. Contractor's facility telephone number

is ( ) and facsimile/FAX number is ( ) .

Contractor's facility days and hours of operation are

.

Contractor shall obtain prior written approval from Director

at least thirty (30) days before terminating services at such

location(s) and/or before commencing such services at any other

location. If the days and hours of operation, telephone number,

or facsimile/FAX number, of Contractor facility(ies), as noted

above, are changed in any manner, Contractor shall inform

Director at least ten (10) days prior to the effective date(s)

thereof.

4. MAXIMUM ALLOCATION:

A. During the period of November 2, 2000 through

June 30, 2001, that portion of the maximum obligation of

County which is allocated under this Exhibit for outpatient

drug free services is Twenty-One Thousand, Four Hundred

Ninety-Two Dollars ($21,492). This sum represents the

Combined Maximum State General Fund and Federal Drug/Medi-

Cal Allocations minus County administrative costs.

B. During the period of July 1, 2001 through

June 30, 2002, that portion of the maximum obligation of

County which is allocated under this Exhibit for outpatient

drug free services is Sixty-Four Thousand, Four Hundred

- 4 -

Seventy-Six Dollars ($64,476). This sum represents the

Combined Maximum State General Fund and Federal Drug/Medi-

Cal Allocations minus County administrative costs.

C. Federal Drug/Medi-Cal funds shall be used to

reimburse Contractor for services rendered to clients who

are covered by a federally connected social services aid

program. These funds shall be reimbursable hereunder only

to the extent Contractor serves individuals eligible to

receive Federal Drug/Medi-Cal benefits during the term of

this Agreement.

D. Contractor understands and acknowledges that County

has determined to the best of its ability, based on figures

and information provided by Contractor, the service numbers

(i.e., number of clients to be served and the number of

visits allowed per client) and maximum allocation dollar

amount(s) used in this Agreement. Contractor further

understands and acknowledges that he/she may be required to

continue to provide such services to County clients which

exceed the service numbers and maximum allocation dollar

amount(s) as listed in this Agreement, if such service

numbers and maximum allocation dollar amount(s) were

underestimated by County. If Contractor provides services

beyond the service number and maximum allocation dollar

amounts as listed in this Agreement, Contractor shall inform

- 5 -

the ADPA in writing immediately. County is only responsible

for reimbursing Contractor up to, but not exceeding, the

maximum allocation(s) as listed herein; however, County

shall make every effort to obtain additional funds from

SDADP and other governmental funding sources, if available,

to increase Contractor's maximum allocation, by an amendment

to this Agreement, in order to reimburse Contractor for any

additional services provided. Contractor shall allow the

ADPA a period of not less than thirty (30) days, after being

notified in accordance with the above procedures, to procure

funds from the SDADP and other governmental funding sources,

if available, for Contractor. Any increase in Contractor's

maximum allocation shall be limited to the availability of

State General Funds furnished County for that purpose. If

these funds are not available from SDADP through County,

Contractor shall seek reimbursement directly from the SDADP

for such funds and not from County. In requesting

reimbursement funds directly from the SDADP, Contractor

shall follow the procedures as described under Title 22 CRC

Section 51015. County shall not be liable for any

reimbursement funds due Contractor, for services provided,

which exceed the service numbers and the maximum allocation

dollar amounts listed in this Agreement and the Exhibit(s)

- 6 -

hereto, if additional funds to pay for such service numbers

are not available and/or forthcoming to County from the

SDADP.

Any increases to the maximum allocation under this

provision is further subject to the PAYMENT and FUNDING/

SERVICES ADJUSTMENTS AND REALLOCATIONS paragraph provisions

of this Agreement.

E. Other financial information for this Exhibit is

contained in the Schedule(s), attached hereto and

incorporated herein by reference.

5. REIMBURSEMENT: County agrees to compensate Contractor

for services provided to clients under this Agreement, at the

daily rate (provisional service rate per individual session and

provisional service rate per client attending a group session) as

set forth in the Schedule(s) referred to above, and attached

hereto. For purposes of this Agreement, the definition of an

"individual session" is a fifty (50) minute face-to-face visit.

Reimbursement for an individual session is limited to intake,

crisis intervention, collateral services, and treatment and

discharge planning. A "group session" is a ninety (90) minute

counseling session for a minimum of four (4) to a maximum of ten

(10) individuals.

Contractor's provisional rate shall be based on whichever

reimbursement rate, i.e., customary charge, allowable costs, or

- 7 -

maximum allowance/rate cap, is determined by the ADPA to be the

lowest possible charge to County for Contractor's services, in

accordance with Title 22 CCR Section 51516. Contractor's lowest

possible charge shall be further adjusted to include deductions

for allowable (as defined by the SDADP) County administrative

costs, the difference of which shall be defined as Contractor's

provisional rate, and as set forth in the Schedule(s) attached

hereto.

Provisional rate payments and any other required payments to

Contractor for services provided herein, shall be subject to the

provisions set forth in the PAYMENT Paragraph of this Agreement.

6. PROGRAM EVALUATION: Contractor shall have a statement

on the overall program goals and objectives that will be achieved

by Contractor in the provision of services in accordance with the

terms of this Agreement. (Note: If Contractor’s program services

are directed towards individual participants, Contractor shall

also have an additional goals and objectives statement that

describes the specific effects on a participant’s behavior and

health status that Contractor’s services are expected to produce

in a stated percentage of the participant population to be

served.) Each goal and objective shall include a timetable and a

completion date, which shall not exceed the term of this

Agreement. Program goals and objectives shall be submitted by

Contractor within thirty (30) days following the execution of

this Agreement for approval by Director.

- 8 -

Contractor agrees to allow County to use Contractor’s program

goals and objectives to develop and implement new program

activities, to evaluate the effectiveness of the service (i.e.,

program) provided by Contractor under this Agreement, and to

modify, as required, either Contractor’s program operations or

Contractor’s treatment outcome expectations (when services are

directed towards individual participants) to improve services

received under this Agreement.

As a result of Federal, State, and local emphasis on better

documenting and assessing program effectiveness, the County may,

at its sole discretion, require Contractor to participate in

County-authorized process and outcome evaluations. Evaluation

requirements may include, but are not limited to, interviews of

program administrators, staff, and clients; completing

questionnaires; observation of staff in-service training and

staff delivery of services to clients; abstraction of information

from client records; an expansion of the Los Angeles County

Participant Reporting System for both intake and discharge

information reported on clients; the reporting of services

received by selected clients; and other activities to meet

established standards for the conduct of evaluations of

acceptable scientific rigor. All evaluation activities will

provide suitable program, staff, and client confidentiality

assurances and will be conducted under applicable Federal and

- 9 -

state law with appropriate Institutional Review Board (human

subject protection) approval. When conducted by non-County

employees, evaluation will be conducted under the direction of

County with additional oversight by a County-appointed advisory

group.

7. CLIENT RECORDS: Client records shall include intake

information consisting of personal, family, educational, drug

(including alcohol) use, criminal (if any) and medical history;

client identification data; diagnostic studies, if appropriate; a

service/treatment plan which includes short and long term goals

generated by Contractor's staff and client; assignment of a

primary counselor/case worker; description of type and frequency

of services including support services to be provided; an

individual narrative summary of client interviews and any other

intake information determined by the County as necessary for

program evaluation purposes; and a discharge/transfer summary and

any other discharge information determined by the County as

necessary for program evaluation purposes.

8. MEDICATIONS: Contractor agrees that all controlled

substances and other prescription medications used hereunder

shall be administered and/or dispensed solely by a licensed

physician (i.e., medical doctor), licensed pharmacist, registered

nurse, licensed psychiatric technician or licensed vocational

nurse, in accordance with Federal and State law and related

regulations.

- 10 -

9. SPECIFIC SERVICES TO BE PROVIDED: Contractor shall

provide outpatient drug free services in accordance with

procedures formulated and adopted by Contractor's staff, and

approved by Director. Specific services to be provided hereunder

are as follows:

A. Conduct intake and client assessment/diagnosis,

including documentation of admission requirements, and

medical and psychosocial histories.

B. Casework services inclusive of individual

counseling, group counseling and crisis intervention, with

the involvement of the family where clinically appropriate

in the implementation of the treatment plan. Clients shall

receive a minimum of two (2) counseling sessions per thirty

(30) day period or be subject to discharge.

C. Involvement of "significant others" in the treatment

process when appropriate.

D. Coordinate the provision of services with other

agencies, including criminal justice agencies involved with

drug abuse programs.

E. Direct or referral services to clients, and

documentation of such services or referrals and referral

follow-up to other agencies for medical, social,

psychological, vocational, educational, legal, health

education or other services deemed appropriate for

- 11 -

contributing to clients' rehabilitation. Services provided

through referral shall not be a charge to, nor reimbursable,

hereunder.

F. Follow-up on former clients in accordance with

Contractor's written policies and procedures.

G. Provision, as needed, for the referral of homeless

clients to appropriate residential detoxification and

residential drug free programs, and to social services and

mental health programs for other services.

H. Body fluids testing (urinalysis) which, if performed

by Contractor hereunder, shall require each client's

emission of the urine collected be observed by an employee

of Contractor to protect against the falsification and/or

contamination of the urine sample.

I. Education on Human Immunodeficiency Virus/Acquired

Immune Deficiency Syndrome ("HIV/AIDS") transmission and

access to HIV/AIDS testing.

J. Information and education on tuberculosis ("TB") and

access to TB screening and services, in accordance with

Title 45 Code of Federal Regulation ("CFR") Section

96.127(a)(1).

K. Provision of or referral to interim services for

pregnant women who request services and cannot be admitted

to a program no later than forty-eight (48) hours after the

- 12 -

women seek services, in accordance with Title 45 CFR Section

96.131(d)(2).

L. Development of procedures necessary to refer

clients, when Contractor has no unused capacity, to

outpatient drug free services programs that do. Contractor

shall document their efforts to refer clients to other

agencies if Contractor is unable to provide immediate

services, and to notify the County ADPA Drug/Medi-Cal unit,

by telephone, of agency's inability to refer a Drug/Medi-Cal

beneficiary before placing any client on a waiting list.

10. PROGRAM TREATMENT CAPACITY:

A. The total number of full time equivalent (FTE)

positions budgeted to the program hereunder is .70 /2.43 .

B. The total number of FTE positions dedicated to

perform direct service hours during the Agreement term is

.58 /.60 .

C. Contractor shall provide a minimum of 1,067 /1,601

actual service hours for each dedicated FTE position(s)

during the Agreement term.

D. Contractor shall provide a minimum of 619 /486

service hours during the Agreement term (Item B x Item C).

11. STATE APPEAL PROCESSES: Contractor is allowed by the

State to appeal SDADP dispositions and other specific judgements,

that apply to Contractor's provision of services under this

Agreement. Any such appeal shall be filed in writing by

- 13 -

Contractor in accordance with the procedures as listed under

Title 22 CCR Section 51015, and shall be limited only to those

appeals specified in the State APPEAL PROCESSES document, as

received by Contractor under Paragraph 2, DESCRIPTION OF

SERVICES, Subparagraph A, of this Agreement.

03/13/02ADCD1533.LVBADCD1316.GH 10/11/01

(Cost/R/PR)

HEALTH, EDUCATION, & LEADERSHIP FOR PEOPLE INC.

SCHEDULE A

OUTPATIENT DRUG FREE SERVICES(FEDERAL DRUG/MEDI-CAL)

Period of Period of(11/02/00- (07/01/01- 06/30/01) 06/30/02)

1. Drug/Medi-Cal Provider Number ......... 7011 7011

2. Projected Units of Service:

A. Individual Sessions................ 72 226

B. Group Sessions..................... 63 173

3. Maximum Combined Allocation............ $ 21,492 64,476

4. Projected Revenues..................... $ 0 0

5. Projected Total Gross Program Cost .... $ 21,492 64,476 (Item 3 plus Item 4)

6. Provisional Rate Per Individual Session.................... $ 57.51 61.31

7. Provisional Rate Per Client in a Group Session......................... $ 27.54 29.10

03/13/02ADCD1533.LVBADCD1316.GH 10/11/01

(Cost/R/PR)

HEALTH, EDUCATION, & LEADERSHIP FOR PEOPLE INC.

EXHIBIT B

DAY CARE HABILITATIVE SERVICES(FEDERAL DRUG/MEDI-CAL)

1. DEFINITION: Day care habilitative services are non-

residential programs which provide counseling and rehabilitation

services. Clients (including, but not limited to, homeless

client) shall participate according to the minimum attendance

schedule as described below, and shall have regularly assigned,

supervised work functions. Clients shall participate in

scheduled, formalized services three (3) or more hours per day,

but less than twenty-four (24) hours, throughout the day at least

three (3) times per week. The program services shall be

available a minimum of six (6) hours per day, six (6) days per

week.

Based upon the continuing needs of clients, duration of any

individual's treatment hereunder shall not exceed one (1) year

without prior written approval of Director.

For purposes of this Exhibit, "homeless" clients are defined

as those individuals with an alcohol and/or other drug problem

who lack shelter and the financial resources to acquire shelter,

and whose regular nighttime dwelling is in the streets, parks,

subways, bus terminals, railroad stations, airports, and other

similar locations.

- 2 -

2. PERSONS TO BE SERVED: Day care habilitative services

shall be furnished to Medi-Cal eligible beneficiaries meeting

certain admission criteria as defined in Title 22 California Code

of Regulations ("CCR") Section 51303. Contractor shall provide

covered services to Medi-Cal beneficiaries without regard to the

beneficiaries' county of residence. Unless a specific special

population(s) is identified immediately below, services will be

made available to male and female clients under age twenty-one

(21), and to all ethnic and special population groups.

Specific special population(s) to be served is(are)

eligible Drug/Medi-Cal beneficiairies that abuse drugs and

alcohol . The Contractor will serve: X males/ X females.

The age group(s) to be served is(are) under 21 years old .

3. SERVICE DELIVERY SITE(S) AND DAYS AND HOURS OF

OPERATION: Contractor's facility(ies), where day care

habilitative services are to be provided, and the days and hours

of operation, or when services are to be provided herein, are as

follows:

Facility 1 is located at 4045-4049 A-D, Wilshire Boulevard,

Los Angeles, California 90010. Contractor's facility telephone

number is (213) 365-1704 and facsimile/FAX number is

(213) 365-1546. Contractor's facility days and hours of

operation are Monday through Saturday, 9:00 a.m. to 5:00 p.m.

Facility 2 is located at

. Contractor's facility telephone number

- 3 -

is ( ) and facsimile/FAX number is ( ) .

Contractor's facility days and hours of operation are

.

Contractor shall obtain prior written approval from Director

at least thirty (30) days before terminating services at such

location(s) and/or before commencing such services at any other

location. If the days and hours of operation, telephone number,

or facsimile/FAX number, of Contractor facility(ies), as noted

above, are changed in any manner, Contractor shall inform

Director at least ten (10) days prior to the effective date(s)

thereof.

4. MAXIMUM ALLOCATION:

A. During the period of November 2, 2000 through

June 30, 2001, that portion of the maximum obligation of

County which is allocated under this Exhibit for day care

habilitative services is Zero Dollars ($0). This sum

represents the Combined Maximum State General Fund and

Federal Drug/Medi-Cal Allocations minus allowable County

administrative costs.

B. During the period of July 1, 2001 through

June 30, 2002, that portion of the maximum obligation of

County which is allocated under this Exhibit for day care

habilitative services is Forty-Seven Thousand, Six Hundred

Eighty-Nine Dollars ($47,689). This sum represents the

- 4 -

Combined Maximum State General Fund and Federal Drug/Medi-

Cal Allocations minus allowable County administrative costs.

C. Federal Drug/Medi-Cal funds shall be used to

reimburse Contractor for services rendered to clients who

are covered by a federally connected social services aid

program. These funds shall be reimbursable hereunder only

to the extent Contractor serves individuals eligible to

receive Federal Drug/Medi-Cal benefits during the term of

this Agreement.

D. Contractor understands and acknowledges that County

has determined to the best of its ability, based on figures

and information provided by Contractor, the service numbers

(i.e., number of clients to be served and the number of

visits allowed per client) and maximum allocation dollar

amount(s) used in this Agreement. Contractor further

understands and acknowledges that he/she may be required to

continue to provide such services to County clients which

exceed the service numbers and maximum allocation dollar

amount(s) as listed in this Agreement, if such service

numbers and maximum allocation dollar amount(s) were

underestimated by County. If Contractor provides services

beyond the service number and maximum allocation dollar

amounts as listed in this Agreement, Contractor shall inform

the ADPA in writing immediately. County is only responsible

for reimbursing Contractor up to, but not exceeding, the

- 5 -

maximum allocation(s) as listed herein; however, County

shall make every effort to obtain additional funds from

SDADP and other governmental funding sources, if available,

to increase Contractor's maximum allocation, by an amendment

to this Agreement, in order to reimburse Contractor for any

additional services provided. Contractor shall allow the

ADPA a period of not less than thirty (30) days, after being

notified in accordance with the above procedures, to procure

funds from the SDADP and other governmental funding sources,

if available, for Contractor. Any increase in Contractor's

maximum allocation shall be limited to the availability of

State General Funds furnished County for that purpose. If

these funds are not available from SDADP through County,

Contractor shall seek reimbursement directly from the SDADP

for such funds and not from County. In requesting

reimbursement funds directly from the SDADP, Contractor

shall follow the procedures as described under Title 22 CCR

Section 51015. County shall not be liable for any

reimbursement funds due Contractor, for services provided,

which exceed the service numbers and the maximum allocation

dollar amounts listed in this Agreement and the Exhibit(s)

hereto, if additional funds to pay for such service numbers

are not available and/or forthcoming to County from the

SDADP.

- 6 -

Any increases to the maximum allocation under this

provision is further subject to the PAYMENT and FUNDING/

SERVICES ADJUSTMENTS AND REALLOCATIONS paragraph provisions

of this Agreement.

E. Other financial information for this Exhibit is

contained in the Schedule(s), attached hereto and

incorporated herein by reference.

5. REIMBURSEMENT: County agrees to compensate Contractor

for services provided to clients under this Agreement, at the

daily rate (provisional service rate per day care habilitative

service visit) as set forth in the Schedule(s) referred to above,

and attached hereto. For purposes of this Agreement, the

definition of a "day care habilitative services visit" is one (1)

"face-to-face" visit to receive services for at least three (3)

hours on a calendar day.

Contractor's provisional rate shall be based on whichever

reimbursement rate, i.e., customary charge, allowable costs, or

maximum allowance/rate cap, is determined by the ADPA to be the

lowest possible charge to County for Contractor's services, in

accordance with Title 22 CCR Section 51516. Contractor's lowest

possible charge shall be further adjusted to include deductions

for allowable (as defined by the SDADP) County administrative

costs, the difference of which shall be defined as Contractor's

provisional rate, and as set forth in the Schedule(s) attached

hereto.

- 7 -

Provisional rate payments and any other required payments to

Contractor for services provided herein, shall be subject to the

provisions set forth in the PAYMENT Paragraph of this Agreement.

6. PROGRAM EVALUATION: Contractor shall have a statement

on the overall program goals and objectives that will be achieved

by Contractor in the provision of services in accordance with the

terms of this Agreement. (Note: If Contractor’s program services

are directed towards individual participants, Contractor shall

also have an additional goals and objectives statement that

describes the specific effects on a participant’s behavior and

health status that Contractor’s services are expected to produce

in a stated percentage of the participant population to be

served.) Each goal and objective shall include a timetable and a

completion date, which shall not exceed the term of this

Agreement. Program goals and objectives shall be submitted by

Contractor within thirty (30) days following the execution of

this Agreement for approval by Director.

Contractor agrees to allow County to use Contractor’s program

goals and objectives to develop and implement new program

activities, to evaluate the effectiveness of the service (i.e.,

program) provided by Contractor under this Agreement, and to

modify, as required, either Contractor’s program operations or

Contractor’s treatment outcome expectations (when services are

directed towards individual participants) to improve services

received under this Agreement.

- 8 -

As a result of Federal, State, and local emphasis on better

documenting and assessing program effectiveness, the County may,

at its sole discretion, require Contractor to participate in

County-authorized process and outcome evaluations. Evaluation

requirements may include, but are not limited to, interviews of

program administrators, staff, and clients; completing

questionnaires; observation of staff in-service training and

staff delivery of services to clients; abstraction of information

from client records; an expansion of the Los Angeles County

Participant Reporting System for both intake and discharge

information reported on clients; the reporting of services

received by selected clients; and other activities to meet

established standards for the conduct of evaluations of

acceptable scientific rigor. All evaluation activities will

provide suitable program, staff, and client confidentiality

assurances and will be conducted under applicable Federal and

state law with appropriate Institutional Review Board (human

subject protection) approval. When conducted by non-County

employees, evaluation will be conducted under the direction of

County with additional oversight by a County-appointed advisory

group.

7. CLIENT RECORDS: Client records shall include intake

information consisting of personal, family, educational, drug

(including alcohol) use, criminal (if any) and medical history;

client identification data; diagnostic studies, if appropriate; a

- 9 -

service/treatment plan which includes short and long term goals

generated by Contractor's staff and client; assignment of a

primary counselor/case worker; description of type and frequency

of services including support services to be provided; an

individual narrative summary of client interviews and any other

intake information determined by the County as necessary for

program evaluation purposes; and a discharge/transfer summary and

any other discharge information determined by the County as

necessary for program evaluation purposes.

8. MEDICATIONS: Contractor agrees that all controlled

substances and other prescription medications used hereunder

shall be administered and/or dispensed solely by a licensed

physician (i.e., medical doctor), licensed pharmacist, registered

nurse, licensed psychiatric technician or licensed vocational

nurse, in accordance with Federal and State law and related

regulations.

9. SPECIFIC SERVICES TO BE PROVIDED: Contractor shall

provide day care habilitative services in accordance with

procedures formulated and adopted by Contractor's staff, and

approved by Director. Specific services to be provided hereunder

are as follows:

A. Conduct intake and client assessment/diagnosis,

including documentation of admission requirements, and

medical and psychosocial histories.

- 10 -

B. Casework services inclusive of individual

counseling, group counseling and crisis intervention, with

the involvement of the family where clinically appropriate

in the implementation of the treatment plan.

C. A minimum of nine (9) hours per week of scheduled,

formalized services (e.g., a work program, treatment

techniques, and recreational activities).

D. Involvement of "significant others" in the treatment

process when appropriate.

E. Coordinate the provision of services with other

agencies, including criminal justice agencies involved with

drug abuse programs.

F. Direct or referral services to clients, and

documentation of such services or referrals and referral

follow-up to other agencies for medical, social,

psychological, vocational, educational, legal, health

education or other services deemed appropriate for

contributing to clients' rehabilitation. Services provided

through referral shall not be a charge to, nor reimbursable,

hereunder.

G. Follow-up on former clients in accordance with

Contractor's written policies and procedures.

H. Provision, as needed, for the referral of homeless

clients to appropriate residential detoxification and

- 11 -

residential drug free programs, and to social services and

mental health programs for other services.

I. Body fluids testing (urinalysis) which, if performed

by Contractor hereunder, shall require each client's

emission of the urine collected be observed by an employee

of Contractor to protect against the falsification and/or

contamination of the urine sample.

J. Education on Human Immunodeficiency Virus/Acquired

Immune Deficiency Syndrome ("HIV/AIDS") transmission and

access to HIV/AIDS testing.

K. Information and education on tuberculosis ("TB") and

access to TB screening and services, in accordance with

Title 45 Code of Federal Regulations ("CFR") Section

96.127(a)(1).

L. Provision of or referral to interim services for

pregnant women who request services and cannot be admitted

to a program no later than forty-eight (48) hours after the

women seek services, in accordance with Title 45 CFR Section

96.131(d)(2).

M. Development of procedures necessary to refer

clients, when Contractor has no unused capacity, to day care

habilitative services programs that do. Contractor shall

document their efforts to refer clients to other agencies if

Contractor is unable to provide immediate services, and to

notify the County ADPA Drug/Medi-Cal unit, by telephone, of

- 12 -

agency's inability to refer a Drug/Medi-Cal beneficiary

before placing any client on a waiting list.

10. PROGRAM TREATMENT CAPACITY:

A. The total number of full time equivalent (FTE)

positions dedicated to perform direct service hours during

the Agreement term is 0/.5 .

B. Contractor shall serve 0/10 program clients for

each dedicated FTE position(s) during the Agreement term

(minimum number is 10).

C. The projected minimum number of clients served

during the Agreement term is 0/5 (Item A x Item B).

D. The average program attendance by each client is

projected to be 3 days per week during the Agreement term.

E. The projected program treatment capacity for program

clients during the Agreement term is N/A /780 (Item C x

Item D x 52).

F. The projected utilization rate of the total

treatment capacity for program clients during the term of

the Agreement is N/A /100% .

G. Contractor shall provide a minimum of N/A /780

service units during the Agreement term (Item E x Item F).

11. STATE APPEAL PROCESSES: Contractor is allowed by the

State to appeal SDADP dispositions and other specific judgements,

that apply to Contractor's provision of services under this

Agreement. Any such appeal shall be filed in writing by

Contractor in accordance with the procedures as listed under

Title 22 CCR Section 51015, and shall be limited only to those

appeals specified in the State APPEAL PROCESSES document, as

received by Contractor under Paragraph 2, DESCRIPTION OF

SERVICES, Subparagraph A, of this Agreement.

03/13/02ADCD1534.LVBADCD1315.GH 10/11/01

- 14 -

(Cost/R/PR)

HEALTH, EDUCATION, & LEADERSHIP FOR PEOPLE INC.

SCHEDULE B

DAY CARE HABILITATIVE SERVICES(FEDERAL DRUG/MEDI-CAL)

Period of Period of(11/02/00- (07/01/01- 06/30/01) 06/30/02)

1. Drug/Medi-Cal Provider Number ......... 7011 7011

2. Units of Service....................... N/A 780 (Day Care Habilitative Services Visit)

3. Maximum Combined Allocation............ $ 0 $ 47,689

4. Projected Revenues..................... $ 0 $ 0

5. Projected Total Gross Program Cost..... $ 0 $ 47,689 (Item 3 plus Item 4)

6. Provisional Rate Per Day Care Habilitative Services Visit........... $ 0 $ 61.07 (Item 3 divided by Item 2)

03/13/02ADCD1534.LVBADCD1315.GH 10/11/01

(Cost/R/PR)

HEALTH, EDUCATION, & LEADERSHIP FOR PEOPLE INC.

EXHIBIT C

PERINATAL OUTPATIENT DRUG FREE SERVICES(FEDERAL DRUG/MEDI-CAL)

1. DEFINITION: Perinatal outpatient drug free services

(hereafter "Outpatient Drug Free Services") are drug treatment

services, which include crisis intervention, counseling, and

client referral services. Referrals may be made to medical

detoxification services, recovery home services, methadone

services, psychiatric services, or other appropriate treatment

service providers. Each client (including, but not limited to,

homeless clients) at the program shall receive outpatient drug

free counseling at least twice within each thirty (30) day

period. Clients not returning for thirty (30) days shall be

discharged. Based upon the continuing treatment needs of client,

duration of any client's treatment hereunder shall not exceed

twelve (12) months without the prior written approval of

Director.

For purposes of this Exhibit, "homeless" clients are defined

as those individuals with a drug abuse problem who lack shelter

and the financial resources to acquire shelter, and whose regular

nighttime dwelling is in the streets, parks, subways, bus

terminals, railroad stations, airports, and other similar

locations.

- 2 -

2. PERSONS TO BE SERVED: Outpatient drug free services

shall be furnished to pregnant and postpartum women who are Medi-

Cal eligible beneficiaries meeting certain admission criteria as

defined in Title 22 California Code of Regulations ("CCR")

Section 51303. Priority admission to the program shall be given,

as delineated in the Perinatal Services Network Guidelines, in

the following order: (a) pregnant injection drug users and (b)

pregnant women using alcohol and/or other drugs. Contractor

shall provide covered services to Medi-Cal beneficiaries without

regard to the beneficiaries' county of residence.

3. SERVICE DELIVERY SITE(S) AND DAYS AND HOURS OF

OPERATION: Contractor's facility(ies), where outpatient drug

free services are to be provided, and the days and hours of

operation, or when services are to be provided herein, are as

follows:

Facility 1 is located at 4045-4049 A-D, Wilshire Boulevard,

Los Angeles, California 90010. Contractor's facility telephone

number is (213) 365-1704 and facsimile/FAX number is

(213) 365-1546. Contractor's facility days and hours of

operation are Monday through Saturday, 900 a.m. to 5:00 p.m.

Facility 2 is located at

. Contractor's facility telephone number

is ( ) and facsimile/FAX number is ( ) .

Contractor's facility days and hours of operation are

.

- 3 -

Contractor shall obtain prior written approval from Director

at least thirty (30) days before terminating services at such

location(s) and/or before commencing such services at any other

location. If the days and hours of operation, telephone number,

or facsimile/FAX number, of Contractor facility(ies), as noted

above, are changed in any manner, Contractor shall inform

Director at least ten (10) days prior to the effective date(s)

thereof.

4. MAXIMUM ALLOCATION:

A. During the period of November 2, 2000 through

June 30, 2001, that portion of the maximum obligation of

County which is allocated under this Exhibit for outpatient

drug free services is Zero Dollars ($0). This sum

represents the Combined Maximum State General Fund and

Federal Drug/Medi-Cal Allocations minus allowable County

administrative costs.

B. During the period of July 1, 2001 through

June 30, 2002, that portion of the maximum obligation of

County which is allocated under this Exhibit for outpatient

drug free services is Twenty-Six Thousand, Seven Hundred

Sixty-Six Dollars ($26,766). This sum represents the

Combined Maximum State General Fund and Federal Drug/Medi-

Cal Allocations minus allowable County administrative costs.

C. Federal Drug/Medi-Cal funds shall be used to

reimburse Contractor for services rendered to clients who

- 4 -

are covered by a federally connected perinatal treatment

expansion program. These funds shall be reimbursable

hereunder only to the extent Contractor serves individuals

eligible to receive Federal Drug/Medi-Cal benefits during

the term of this Agreement.

D. Contractor understands and acknowledges that County

has determined to the best of its ability, based on figures

and information provided by Contractor, the service numbers

(i.e., number of clients to be served and the number of

visits allowed per client) and maximum allocation dollar

amount(s) used in this Agreement. Contractor further

understands and acknowledges that he/she may be required to

continue to provide such services to County clients which

exceed the service numbers and maximum allocation dollar

amount(s) as listed in this Agreement, if such service

numbers and maximum allocation dollar amount(s) were

underestimated by County. If Contractor provides services

beyond the service number and maximum allocation dollar

amounts as listed in this Agreement, Contractor shall inform

the ADPA in writing immediately. County is only responsible

for reimbursing Contractor up to, but not exceeding, the

maximum allocation(s) as listed herein; however, County

shall make every effort to obtain additional funds from

SDADP and other governmental funding sources, if available,

- 5 -

to increase Contractor's maximum allocation, by an amendment

to this Agreement, in order to reimburse Contractor for any

additional services provided. Contractor shall allow the

ADPA a period of not less than thirty (30) days, after being

notified in accordance with the above procedures, to procure

funds from the SDADP and other governmental funding sources,

if available, for Contractor. Any increase in Contractor's

maximum allocation shall be limited to the availability of

State General Funds furnished County for that purpose. If

these funds are not available from SDADP through County,

Contractor shall seek reimbursement directly from the SDADP

for such funds and not from County. In requesting

reimbursement funds directly from the SDADP, Contractor

shall follow the procedures as described under Title 22 CCR

Section 51015. County shall not be liable for any

reimbursement funds due Contractor, for services provided,

which exceed the service numbers and the maximum allocation

dollar amounts listed in this Agreement and the Exhibit(s)

hereto, if additional funds to pay for such service numbers

are not available and/or forthcoming to County from the

SDADP.

Any increases to the maximum allocation under this

provision is further subject to the PAYMENT and FUNDING/

SERVICES ADJUSTMENTS AND REALLOCATIONS paragraph provisions

of this Agreement.

- 6 -

E. Other financial information for this Exhibit is

contained in the Schedule(s), attached hereto and

incorporated herein by reference.

5. REIMBURSEMENT: County agrees to compensate Contractor

for services provided to clients under this Agreement, at the

daily rate (provisional service rate per individual session and

provisional service rate per client attending a group session) as

set forth in the Schedule(s) referred to above, and attached

hereto. For purposes of this Agreement, the definition of an

"individual session" is a fifty (50) minute face-to-face visit.

Reimbursement for an individual session is limited to intake,

crisis intervention, collateral services, and treatment and

discharge planning. A "group session" is a ninety (90) minute

session for a minimum of four (4) to a maximum of ten (10)

individuals. Contractor must meet all requirements delineated in

the Perinatal Services Network Guidelines; however, Contractor

shall only be reimbursed for those allowable costs identified in

Title 22 CCR Section 51341.1.

Contractor's provisional rate shall be based on whichever

reimbursement rate, i.e., customary charge, allowable costs, or

maximum allowance/rate cap, is determined by the ADPA to be the

lowest possible charge to County for Contractor's services, in

accordance with Title 22 CCR Section 51516. Contractor's lowest

possible charge shall be further adjusted to include deductions

- 7 -

for allowable (as defined by the SDADP) County administrative

costs, the difference of which shall be defined as Contractor's

provisional rate, and as set forth in the Schedule attached

hereto.

Provisional rate payments and any other required payments to

Contractor for services provided herein, shall be subject to the

provisions set forth in the PAYMENT Paragraph of this Agreement.

6. PROGRAM EVALUATION: Contractor shall have a statement

on the overall program goals and objectives that will be achieved

by Contractor in the provision of services in accordance with the

terms of this Agreement. (Note: If Contractor’s program services

are directed towards individual participants, Contractor shall

also have an additional goals and objectives statement that

describes the specific effects on a participant’s behavior and

health status that Contractor’s services are expected to produce

in a stated percentage of the participant population to be

served.) Each goal and objective shall include a timetable and a

completion date, which shall not exceed the term of this

Agreement. Program goals and objectives shall be submitted by

Contractor within thirty (30) days following the execution of

this Agreement for approval by Director.

Contractor agrees to allow County to use Contractor’s program

goals and objectives to develop and implement new program

activities, to evaluate the effectiveness of the service (i.e.,

- 8 -

program) provided by Contractor under this Agreement, and to

modify, as required, either Contractor’s program operations or

Contractor’s treatment outcome expectations (when services are

directed towards individual participants) to improve services

received under this Agreement.

As a result of Federal, State, and local emphasis on better

documenting and assessing program effectiveness, the County may,

at its sole discretion, require Contractor to participate in

County-authorized process and outcome evaluations. Evaluation

requirements may include, but are not limited to, interviews of

program administrators, staff, and clients; completing

questionnaires; observation of staff in-service training and

staff delivery of services to clients; abstraction of information

from client records; an expansion of the Los Angeles County

Participant Reporting System for both intake and discharge

information reported on clients; the reporting of services

received by selected clients; and other activities to meet

established standards for the conduct of evaluations of

acceptable scientific rigor. All evaluation activities will

provide suitable program, staff, and client confidentiality

assurances and will be conducted under applicable Federal and

state law with appropriate Institutional Review Board (human

subject protection) approval. When conducted by non-County

employees, evaluation will be conducted under the direction of

- 9 -

County with additional oversight by a County-appointed advisory

group.

7. CLIENT RECORDS: Client records shall include intake

information consisting of personal, family, educational, drug

(including alcohol) use, criminal (if any) and medical history;

client identification data; diagnostic studies, if appropriate; a

service/treatment plan which includes short and long term goals

generated by Contractor's staff and client; assignment of a

primary counselor/case worker; description of type and frequency

of services including support services to be provided; an

individual narrative summary of client interviews and any other

intake information determined by the County as necessary for

program evaluation purposes; and a discharge/transfer summary and

any other discharge information determined by the County as

necessary for program evaluation purposes.

8. MEDICATIONS: Contractor agrees that all controlled

substances and other prescription medications used hereunder

shall be administered and/or dispensed solely by a licensed

physician (i.e., medical doctor), licensed pharmacist, registered

nurse, licensed psychiatric technician or licensed vocational

nurse, in accordance with Federal and State law and related

regulations.

9. SPECIFIC SERVICES TO BE PROVIDED: Contractor shall

provide outpatient drug free services in accordance with

procedures formulated and adopted by Contractor's staff, and

- 10 -

approved by Director. Specific services to be provided hereunder

are as follows:

A. Client intake, assessment, and diagnosis including

documentation of admission requirements and psychological

and medical histories.

B. Casework services inclusive of individual

counseling, group counseling and crisis intervention, with

the involvement of the family where clinically appropriate

in the implementation of the treatment plan. Clients shall

receive a minimum of two (2) counseling sessions per thirty

(30) day period or be subject to discharge.

C. Involvement of "significant others" in the treatment

process when appropriate.

D. Coordination with other agencies, including criminal

justice agencies involved with drug abuse programs.

E. Direct or referral services to clients, and

documentation of such services or referrals and referral

follow-up to other agencies for medical, social,

psychological, vocational, educational, legal, health

education or other services deemed appropriate for

contributing to clients' rehabilitation. Services provided

through referral shall not be a charge to nor reimbursable

hereunder.

F. Peer support and discussion groups.

- 11 -

G. On-site childcare for children from birth to thirty-

six (36) months of age, and on-site provision or

arrangements through referral for child care for children

thirty-seven (37) months to twelve (12) years of age.

Contractor's on-site child care operations and/or child care

operations provided by referral shall comply with any and

all required laws and regulations regarding child care.

H. Provision of or arrangement for transportation to

and from treatment, primary medical care, and ancillary

services for women who do not have their own transportation.

I. Education on the impact of alcohol and drug

consumption during pregnancy and breast feeding.

J. Parenting skills, training and education on child

development.

K. Coordination for obstetrical, gynecological,

pediatric, social service and other community services.

L. Provision of or arrangement for primary medical,

prenatal, and pediatric care.

M. Education on Human Immunodeficiency Virus/Acquired

Immune Deficiency Syndrome ("HIV/AIDS") transmission and

access to HIV/AIDS testing.

N. Information and education on tuberculosis ("TB") and

access to TB screening and services, in accordance with

Title 45 Code of Federal Regulation ("CFR") Section

96.127(a)(1).

- 12 -

O. Provision of or referral to interim services for

pregnant women who request services and cannot be admitted

to a program no later than forty-eight (48) hours after the

women seek services, in accordance with Title 45 CFR

96.131(d)(2).

P. Exit planning to ensure clients have support in

recovery, including transition to community services and

sober housing.

Q. Outreach to pregnant, postpartum, and parenting

women who use alcohol and other drugs and who would not

otherwise know about these services.

R. Follow-up on former clients in accordance with

Contractor's written policies and procedures.

S. Provision, as needed, for the referral of homeless

clients to appropriate residential detoxification and

residential drug free programs, and to social services and

mental health programs for other services.

T. Body fluids testing (urinalysis) which, if performed

by Contractor hereunder, shall require each client's

emission of the urine collected be observed by an employee

of Contractor to protect against the falsification and/or

contamination of the urine sample.

U. Development of procedures necessary to refer

clients, when Contractor has no unused capacity, to

outpatient drug free services programs that do. Contractor

- 13 -

shall document their efforts to refer clients to other

agencies if Contractor is unable to provide immediate

services, and to notify the County's ADPA Drug/Medi-Cal

unit, by telephone, of agency's inability to refer a

Drug/Medi-Cal beneficiary before placing any client on a

waiting list.

10. PROGRAM TREATMENT CAPACITY:

A. The total number of full time equivalent (FTE)

positions budgeted to the program hereunder is 1.02 .

B. The total number of FTE positions dedicated to

perform direct service hours during the Agreement term is

N/A /.08 .

C. Contractor shall provide a minimum of N/A /1,601

actual service hours for each dedicated FTE position(s)

during the Agreement term.

D. Contractor shall provide a minimum of N/A /129

service hours during the Agreement term (Item B x Item C).

11. STATE APPEAL PROCESSES: Contractor is allowed by the

State to appeal SDADP dispositions and other specific judgements,

that apply to Contractor's provision of services under this

Agreement. Any such appeal shall be filed in writing by

Contractor in accordance with the procedures as listed under

Title 22 CCR Section 51015, and shall be limited only to those

appeals specified in the State APPEAL PROCESSES document, as

- 14 -

received by Contractor under Paragraph 2, DESCRIPTION OF

SERVICES, Subparagraph A, of this Agreement.

03/13/02ADCD1535.LVBADCD1318.GH 10/11/01

(Cost/R/PR)

HEALTH, EDUCATION, & LEADERSHIP FOR PEOPLE INC.

SCHEDULE C

PERINATAL OUTPATIENT DRUG FREE SERVICES(FEDERAL DRUG/MEDI-CAL)

Period of Period of(11/02/00- (07/01/01- 06/30/01) 06/30/02)

1. Drug/Medi-Cal Provider Number ......... 6756 6756

2. Projected Units of Service:

A. Individual Sessions................ N/A 60

B. Group Sessions..................... N/A 46

3. Maximum Combined Allocation............ $ 0 26,766

4. Projected Revenues..................... $ 0 0

5. Projected Total Gross Program Cost .... $ 0 26,766 (Item 3 plus Item 4)

6. Provisional Rate Per Individual Session.................... $ 0 98.33

7. Provisional Rate Per Client in a Group Session......................... $ 0 45.36

03/13/02ADCD1535.LVBADCD1318.GH 10/11/01

(Cost/R/PR)

HEALTH, EDUCATION, & LEADERSHIP FOR PEOPLE INC.

EXHIBIT D

PERINATAL DAY CARE HABILITATIVE SERVICES(FEDERAL DRUG MEDI-CAL)

1. DEFINITION: Perinatal day care habilitative services

(hereafter "Day Care Habilitative Services") are non-residential

programs which provide treatment and recovery services to

pregnant and postpartum women (including, but not limited to,

homeless pregnant and postpartum women) who use alcohol and/or

other drugs, and their children. The primary purpose of these

services is to provide a planned program in a social setting

structured to maximize recovery and rehabilitation of clients.

These programs are used to provide services, more intensive than

a visit but less extensive than twenty-four (24) hour residential

services, in a clean, alcohol and drug free, sober environment.

Program clients shall participate at least three (3) hours per

day, three (3) times per week and return to their own residences

at night. The program services shall be available a minimum of

six (6) hours per day, six (6) days per week.

Based upon the continuing needs of clients, duration of any

individual's treatment hereunder shall not exceed one (1) year

without prior written approval of Director.

- 2 -

For purposes of this Exhibit, "homeless" persons are defined

as those individuals with an alcohol and/or other drug problem

who lack shelter and the financial resources to acquire shelter,

and whose regular nighttime dwelling is in the streets, parks,

subways, bus terminals, railroad stations, airports, and other

similar locations.

2. PERSONS TO BE SERVED: Day care habilitative services

shall be furnished to pregnant and postpartum women who are Medi-

Cal eligible beneficiaries meeting certain admission criteria as

defined in Title 22 California Code of Regulations ("CCR")

Section 51303. Priority admission to the program shall be given,

as delineated in the Perinatal Services Network Guidelines, in

the following order: (a) pregnant injecting drug users and (b)

pregnant women using alcohol and/or other drugs. Contractor

shall provide covered services to Medi-Cal beneficiaries without

regard to the beneficiaries' county of residence.

3. SERVICE DELIVERY SITE(S) AND DAYS AND HOURS OF

OPERATION: Contractor's facility(ies), where day care

habilitative services are to be provided, and the days and hours

of operation, or when services are to be provided herein, are as

follows:

Facility 1 is located at 4045-4049 A-D, Wilshire Boulevard,

Los Angeles, California 90010. Contractor's facility telephone

number is (213) 365-1704 and facsimile/FAX number is

- 3 -

(213) 365-1546. Contractor's facility days and hours of

operation are Monday through Saturday, 900 a.m. to 5:00 p.m.

Facility 2 is located at

. Contractor's facility telephone number

is ( ) and facsimile/FAX number is ( ) .

Contractor's facility days and hours of operation are

.

Contractor shall obtain prior written approval from Director

at least thirty (30) days before terminating services at such

location(s) and/or before commencing such services at any other

location. If the days and hours of operation, telephone number,

or facsimile/FAX number, of Contractor facility(ies), as noted

above, are changed in any manner, Contractor shall inform

Director at least ten (10) days prior to the effective date(s)

thereof.

4. MAXIMUM ALLOCATION:

A. During the period of November 2, 2000 through

June 30, 2001, that portion of the maximum obligation of

County which is allocated under this Exhibit for day care

habilitative services is Zero Dollars ($0). This sum

represents the Combined Maximum State General Fund and

Federal Drug/Medi-Cal Allocations minus allowable County

administrative costs.

B. During the period of July 1, 2001 through

June 30, 2002, that portion of the maximum obligation of

- 4 -

County which is allocated under this Exhibit for day care

habilitative services is Nineteen Thousand, Eight Hundred

Thirty Dollars ($19,830). This sum represents the Combined

Maximum State General Fund and Federal Drug/Medi-Cal

Allocations minus allowable County administrative costs.

C. Federal Drug/Medi-Cal funds shall be used to

reimburse Contractor for services rendered to clients who

are covered by a federally connected perinatal treatment

expansion program. These funds shall be reimbursable

hereunder only to the extent Contractor serves individuals

eligible to receive Federal Drug/Medi-Cal benefits during

the term of this Agreement.

D. Contractor understands and acknowledges that County

has determined to the best of its ability, based on figures

and information provided by Contractor, the service numbers

(i.e., number of clients to be served and the number of

visits allowed per client) and maximum allocation dollar

amount(s) used in this Agreement. Contractor further

understands and acknowledges that he/she may be required to

continue to provide such services to County clients which

exceed the service numbers and maximum allocation dollar

amount(s) as listed in this Agreement, if such service

numbers and maximum allocation dollar amount(s) were

underestimated by County. If Contractor provides services

beyond the service number and maximum allocation dollar

- 5 -

amounts as listed in this Agreement, Contractor shall inform

the ADPA in writing immediately. County is only responsible

for reimbursing Contractor up to, but not exceeding, the

maximum allocation(s) as listed herein; however, County

shall make every effort to obtain additional funds from

SDADP and other governmental funding sources, if available,

to increase Contractor's maximum allocation, by an

amendmentto this Agreement, in order to reimburse Contractor

for any additional services provided. Contractor shall

allow the ADPA a period of not less than thirty (30) days,

after being notified in accordance with the above

procedures, to procure funds from the SDADP and other

governmental funding sources, if available, for Contractor.

Any increase in Contractor's maximum allocation shall be

limited to the availability of State General Funds furnished

County for that purpose. If these funds are not available

from SDADP through County, Contractor shall seek

reimbursement directly from the SDADP for such funds and not

from County. In requesting reimbursement funds directly

from the SDADP, Contractor shall follow the procedures as

described under Title 22 CCR Section 51015. County shall

not be liable for any reimbursement funds due Contractor,

for services provided, which exceed the service numbers and

the maximum allocation dollar amounts listed in this

Agreement and the Exhibit(s) hereto, if additional funds to

- 6 -

pay for such service numbers are not available and/or

forthcoming to County from the SDADP.

Any increases to the maximum allocation under this

provision is further subject to the PAYMENT and FUNDING/

SERVICES ADJUSTMENTS AND REALLOCATIONS paragraph provisions

of this Agreement.

E. Other financial information for this Exhibit is

contained in the Schedule(s), attached hereto and

incorporated herein by reference.

5. REIMBURSEMENT: County agrees to compensate Contractor

for services provided to clients under this Agreement, at the

daily rate (provisional service rate per day care habilitative

services visit) as set forth in the Schedule(s) referred to

above, and attached hereto. For purposes of this Agreement, the

definition of "day care habilitative services visit" is a face-

to-face visit to receive services for at least three (3) hours on

a calendar day. Contractor must meet all requirements delineated

in the Perinatal Services Network Guidelines; however, Contractor

shall only be reimbursed for those allowable costs identified in

Title 22 CCR Section 51341.1.

Contractor's provisional rate shall be based on whichever

reimbursement rate, i.e., customary charge, allowable costs, or

maximum allowance/rate cap, is determined by the ADPA to be the

lowest possible charge to County for Contractor's services, in

accordance with Title 22 CCR Section 51516. Contractor's lowest

- 7 -

possible charge shall be further adjusted to include deductions

for allowable (as defined by the SDADP) County administrative

costs, the difference of which shall be defined as Contractor's

provisional rate, and as set forth in the Schedule attached

hereto.

Provisional rate payments and any other required payments to

Contractor for services provided herein, shall be subject to the

provisions set forth in the PAYMENT Paragraph of this Agreement.

6. PROGRAM EVALUATION: Contractor shall have a statement on

the overall program goals and objectives that will be achieved by

Contractor in the provision of services in accordance with the

terms of this Agreement. (Note: If Contractor’s program services

are directed towards individual participants, Contractor shall

also have an additional goals and objectives statement that

describes the specific effects on a participant’s behavior and

health status that Contractor’s services are expected to produce

in a stated percentage of the participant population to be

served.) Each goal and objective shall include a timetable and a

completion date, which shall not exceed the term of this

Agreement. Program goals and objectives shall be submitted by

Contractor within thirty (30) days following the execution of

this Agreement for approval by Director.

Contractor agrees to allow County to use Contractor’s program

goals and objectives to develop and implement new program

activities, to evaluate the effectiveness of the service (i.e.,

- 8 -

program) provided by Contractor under this Agreement, and to

modify, as required, either Contractor’s program operations or

Contractor’s treatment outcome expectations (when services are

directed towards individual participants) to improve services

received under this Agreement.

As a result of Federal, State, and local emphasis on better

documenting and assessing program effectiveness, the County may,

at its sole discretion, require Contractor to participate in

County-authorized process and outcome evaluations. Evaluation

requirements may include, but are not limited to, interviews of

program administrators, staff, and clients; completing

questionnaires; observation of staff in-service training and

staff delivery of services to clients; abstraction of information

from client records; an expansion of the Los Angeles County

Participant Reporting System for both intake and discharge

information reported on clients; the reporting of services

received by selected clients; and other activities to meet

established standards for the conduct of evaluations of

acceptable scientific rigor. All evaluation activities will

provide suitable program, staff, and client confidentiality

assurances and will be conducted under applicable Federal and

state law with appropriate Institutional Review Board (human

subject protection) approval. When conducted by non-County

employees, evaluation will be conducted under the direction of

- 9 -

County with additional oversight by a County-appointed advisory

group.

7. CLIENT RECORDS: Client records shall include intake

information consisting of personal, family, educational, drug

(including alcohol) use, criminal (if any) and medical history;

client identification data; diagnostic studies, if appropriate; a

service/treatment plan which includes short and long term goals

generated by Contractor's staff and client; assignment of a

primary counselor/case worker; description of type and frequency

of services including support services to be provided; an

individual narrative summary of client interviews and any other

intake information determined by the County as necessary for

program evaluation purposes; and a discharge/transfer summary and

any other discharge information determined by the County as

necessary for program evaluation purposes.

8. MEDICATIONS: Contractor agrees that all controlled

substances and other prescription medications used hereunder

shall be administered and/or dispensed solely by a licensed

physician (i.e., medical doctor), licensed pharmacist, registered

nurse, licensed psychiatric technician or licensed vocational

nurse, in accordance with Federal and State law and related

regulations.

9. SPECIFIC SERVICES TO BE PROVIDED: Contractor shall

provide day care habilitative services in accordance with

procedures formulated and adopted by Contractor's staff, and

- 10 -

approved by Director. Specific services to be provided hereunder

are as follows:

A. Client intake, assessment, and diagnosis including

documentation of admission requirements and psychological

and medical histories.

B. Casework services inclusive of individual

counseling, group counseling and crisis intervention, with

the involvement of the family where clinically appropriate

in the implementation of the treatment plan.

C. Involvement of "significant others" in the treatment

process when appropriate.

D. Coordination with other agencies, including criminal

justice agencies involved with drug abuse programs.

E. Direct or referral services to clients, and

documentation of such services or referrals and referral

follow-up to other agencies for medical, social,

psychological, vocational, educational, legal, health

education, or other services deemed appropriate for

contributing to client's rehabilitation. Services provided

through referral shall not be a charge to nor reimbursable

hereunder.

F. Community awareness, education and involvement

activities, including public information and drop-in space.

G. Peer support and discussion groups.

H. Social and recreational activities.

- 11 -

I. On-site child care for children from birth to

thirty-six (36) months of age, and on-site provision or

arrangements through referral for child care for children

thirty-seven (37) months to twelve (12) years of age.

Contractor's on-site child care operations and/or child care

operations provided by referral shall comply with any and

all required laws and regulations regarding child care.

J. Provision of or arrangement for transportation to

and from treatment, primary medical care, and ancillary

services for women who do not have their own transportation.

K. Education on the impact of alcohol and drug

consumption during pregnancy and breast feeding.

L. Parenting skills, training and education on child

development.

M. Coordination for obstetrical, gynecological,

pediatric, social service and other community services.

N. Provision of or arrangement for primary medical,

prenatal, and pediatric care.

O. Information and education on tuberculosis ("TB") and

access to TB screening and services, in accordance with

Title 45 Code of Federal Regulation ("CFR") Section

96.127(a)(1).

P. Provision of or referral to interim services for

pregnant women who request services and cannot be admitted

to a program no later than forty-eight (48) hours after the

- 12 -

women seek services, in accordance with Title 45 CFR

96.131(d)(2).

Q. Exit planning to ensure program clients have

support in recovery, including transition to community

services and sober housing.

R. Outreach to pregnant, postpartum, and parenting

women who use alcohol and/or drugs and who would not

otherwise know about these services.

S. Follow-up on former clients in accordance with

Contractor's written policies and procedures.

T. Provision, as needed, for the referral of homeless

clients to appropriate residential detoxification and

residential drug free programs, and to social services and

mental health programs for other services.

U. Body fluids testing (urinalysis) which, if performed

by Contractor hereunder, shall require each client's

emission of the urine collected be observed by an employee

of Contractor to protect against the falsification and/or

contamination of the urine sample.

V. Development of procedures necessary to refer

clients, when Contractor has no unused capacity, to day care

habilitative services programs that do. Contractor shall

document their efforts to refer clients to other agencies if

Contractor is unable to provide immediate services, and to

notify the County's ADPA Drug/Medi-Cal unit, by telephone,

- 13 -

of agency's inability to refer a Drug/Medi-Cal beneficiary

before placing any client on a waiting list.

10. PROGRAM TREATMENT CAPACITY:

A. The total number of full time equivalent (FTE)

positions dedicated to perform direct service hours during

the Agreement term is .18 .

B. Contractor shall serve 10 program clients for each

dedicated FTE position(s) during the Agreement term (minimum

number is 10).

C. The projected minimum number of clients served

during the Agreement term is 1.8 (Item A x Item B).

D. The average program attendance by each client is

projected to be 3 days per week during the Agreement term.

E. The projected program treatment capacity for program

clients during the Agreement term is N/A /280 (Item C x

Item D x 52).

F. The projected utilization rate of the total

treatment capacity for program clients during the term of

the Agreement is 100% .

G. Contractor shall provide a minimum of N/A /280

service units during the Agreement term (Item E x Item F).

11. STATE APPEAL PROCESSES: Contractor is allowed by the

State to appeal SDADP dispositions and other specific judgements,

that apply to Contractor's provision of services under this

Agreement. Any such appeal shall be filed in writing by

- 14 -

Contractor in accordance with the procedures as listed under

Title 22 CCR Section 51015, and shall be limited only to those

appeals specified in the State APPEAL PROCESSES document, as

received by Contractor under Paragraph 2, DESCRIPTION OF

SERVICES, Subparagraph A, of this Agreement.

03/13/02ADCD1536.LVBADCD1317.GH 10/11/01

(Cost/R/PR)

HEALTH, EDUCATION, & LEADERSHIP FOR PEOPLE INC.

SCHEDULE D

PERINATAL DAY CARE HABILITATIVE SERVICES(FEDERAL DRUG/MEDI-CAL)

Period of Period of(11/02/00- (07/01/01- 06/30/01) 06/30/02)

1. Drug/Medi-Cal Provider Number ......... 7011 7011

2. Units of Service....................... N/A 280 (Day Care Habilitative Services Visit)

3. Maximum Combined Allocation............ $ 0 $ 19,830

4. Projected Revenues..................... $ 0 $ 0

5. Projected Total Gross Program Cost..... $ 0 $ 19,830 (Item 3 plus Item 4)

6. Provisional Rate Per Day Care Habilitative Services Visit........... $ 0 $ 63.56 (Item 3 divided by Item 2)

03/13/02ADCD1536.LVBADCD1317.GH 10/11/01

Contract No.

ALCOHOL AND DRUG SERVICES AGREEMENT(Proposition 36)

THIS AGREEMENT is made and entered into this ___________ day

of _____________________, 2002,

by and between COUNTY OF LOS ANGELES (hereafter"County"),

and THE PAJO CORPORATION (hereafter"Contractor").

WHEREAS, this Agreement is contemplated and authorized by

Division 10.5 of the Health and Safety Code commencing with

Sections 11750 et seq., 11758.10 et seq., and 11758.20 et seq.;

Title 9 of the California Code of Regulations ("CCR"), Division

4; Government Code Section 26227; and, to the extent this

Agreement is funded by Federal Block Grant funds, also by Health

and Safety Code Sections 11754 and 11775, and by Government Code

Section 53703; and

WHEREAS, to the extent this Agreement is funded by the

Substance Abuse Treatment Trust Fund, also by Division 10.8 of

the Health and Safety Code Sections 11999.4 through 11999.13;

Title 9 of the California Code of Regulations ("CCR"), Sections

9530, 9532, 9533, 9535, 9540, and 9545; and

WHEREAS, to the extent this Agreement is funded by General

Relief ("GR") funds, also by Welfare and Institutions Code

Sections 17000 and 17001.5; and

- 2 -

WHEREAS, to the extent this Agreement is funded by Statham

funds, also by Penal Code Section 1463.16; and

WHEREAS, the terms "ADPA" and "SDADP", as used in this

Agreement, refer to County's Alcohol and Drug Program

Administration and the State Department of Alcohol and Drug

Programs, respectively; and

WHEREAS, the term "Proposition 36", as used in this

Agreement, refers to the Substance Abuse and Crime Prevention Act

of 2000; and

WHEREAS, the terms "alcohol services" and "drug abuse

services" have been combined under this Agreement and are now

collectively referred to as "alcohol and drug services"; and

WHEREAS, throughout this Agreement, the term "participant"

shall be used interchangeably with the terms "client", "patient",

and "resident" unless otherwise noted; and

WHEREAS, throughout this Agreement, the term "Exhibits"

refers to Exhibit(s) A and B, and the term "Schedules" refers to

Schedule(s) A and B,(and when applied, the term "Budgets" refers

to Budget[s] A and B), inclusively, unless otherwise noted; and

WHEREAS, the term "Director", as used in this Agreement,

refers to County's Director of Health Services (i.e., Director of

the Department of Health Services), or his/her authorized

designee; and

- 3 -

WHEREAS, the term "fiscal year", as used in this Agreement,

refers to County's fiscal year which commences July 1 and ends

the following June 30.

NOW, THEREFORE, the parties hereto agree as follows:

1. TERM: The term of this Agreement shall be effective

upon date of Board approval by County’s Board of Supervisors and

shall continue in full force and effect to and including June 30,

2006.

In any event, this Agreement may be canceled or terminated

at any time by either party, with or without cause, upon the

giving of at least thirty (30) calendar days advance written

notice to the other. Further, County may also suspend the

performance of services hereunder, in whole or in part, upon the

giving of at least a thirty (30) calendar days advance written

notice to Contractor. County's notice shall set forth the extent

of the suspension and the requirements for full restoration of

the performance obligations.

County may also terminate this Agreement immediately upon

the occurrence of any of the following events: (1) Federal

and/or State funds are not available for this Agreement or for

any portion hereof; (2) to the extent funding for this Agreement

is contingent on the review and recommendation for approval by

the Local Lead Agency, such as ADPA, or any local agency

designated by the ADPA to administer such review and

- 4 -

recommendation, or by SDADP and such review or approval is not

given; (3) to the extent that Contractor is approved to provide

narcotic treatment program services, and the approval granted

Contractor by either Food and Drug Administration ("FDA"), Drug

Enforcement Administration ("DEA"), SDADP, or all to serve as a

narcotic treatment program service provider is withdrawn; (4)

Contractor fails to initiate delivery of services within thirty

(30) calendar days of the commencement date of this Agreement;

and/or (5) Contractor fails to obtain and maintain in effect all

licenses, permits and/or certifications, as required by all

Federal, State, and local laws, ordinances, regulations, and

directives, which are applicable to Contractor's facility(ies)

and services under this Agreement. Notice of such termination,

as described above, shall be given to Contractor in writing.

Notwithstanding any other provision of this Paragraph, the

failure of Contractor or its officers, employees, agents, or

subcontractors, to comply with any of the terms of this Agreement

or any written directions by or on behalf of County issued

pursuant hereto shall constitute a material breach hereto, and

this Agreement may be terminated by County immediately. County's

failure to exercise this right of termination shall not

constitute a waiver of such right, which may be exercised at any

subsequent time.

- 5 -

In the event of any termination or suspension of this

Agreement, Contractor shall:

A. Make immediate and appropriate plans to transfer or

refer all participants served under this Agreement to other

agencies for continuing service in accordance with the

participant's needs. Such plans shall be approved by

Director, before any transfer or referral is completed,

except in those instances, as determined by Contractor,

where an immediate participant transfer or referral is

indicated. In such instances, Contractor may make an

immediate transfer or referral to the nearest provider of

alcohol or drug services.

B. Immediately eliminate all new costs and expenses

under this Agreement. New costs and expenses include, but

are not limited to, those associated with new participant

admissions. In addition, Contractor shall immediately

minimize all other costs and expenses under this Agreement.

Contractor shall be reimbursed only for reasonable and

necessary costs or expenses incurred after receipt of notice

of termination.

C. Promptly report to County in writing all information

necessary for the reimbursement of any outstanding claims

and continuing costs.

- 6 -

D. Provide to County's Department of Health Services

("DHS"), Financial Services Division, within forty-five (45)

calendar days after such termination date, an annual cost

report, as set forth in the ANNUAL COST REPORT Paragraph of

the ADDITIONAL PROVISIONS, attached hereto.

2. DESCRIPTION OF SERVICES:

A. Contractor shall provide services in the form as

described in the body of this Agreement and in the following

documents, which are attached hereto and incorporated herein

by reference:

(1) Exhibit A - Outpatient Narcotic TreatmentMaintenance Services (Proposition36)

(2) Exhibit B - Outpatient Narcotic TreatmentProgram Detoxification Services(Proposition 36)

(3) ADDITIONAL PROVISIONS - DEPARTMENT OF HEALTHSERVICES - ALCOHOL AND DRUG PROGRAMADMINISTRATION - ALCOHOL AND DRUG SERVICESAGREEMENT - July 1, 2001

(4) County of Los Angeles, Department of HealthServices, Alcohol and Drug ProgramAdministration, Proposition 36, Substance Abuseand Crime Act of 2001, Service Provider Manual,Version 1.0, June 2001.

Contractor hereby acknowledges receipt of the above

referenced documents numbers (1) through (4) attached

hereto. In addition, Contractor further acknowledges

receipt of any applicable Schedule(s), Budget(s), and/or

Statement of Work forms (which further defines the rates and

- 7 -

services to be provided by Contractor herein), as referenced

and attached to the above listed Exhibit(s).

B. The quality of service(s) provided under this

Agreement shall be at least equivalent to the same services

which Contractor provides to all other participants it

serves.

3. NONEXCLUSIVITY: Contractor acknowledges that it is not

the exclusive provider to County of alcohol and drug services to

be provided under this Agreement, that County has, or intends to

enter into, contracts with other providers of such services, and

that County reserves the right to perform the services with its

own County personnel. During the term of this Agreement,

Contractor agrees to provide County with the services described

in the Agreement.

4. MAXIMUM OBLIGATION OF COUNTY:

A. During the period of “effective date” through June

30, 2002, the maximum obligation of County for all services

provided under this Agreement is Twenty-Two Thousand Dollars

($22,000). This sum represents the total maximum obligation

of County as shown in the Exhibit(s) A and B, attached

hereto.

B. During the period July 1, 2002 through June 30,

2003, the maximum obligation of County for all services

provided under this Agreement is Fifty-Three Thousand

- 8 -

Dollars ($53,000). This sum represents the total maximum

obligation of County as shown in the Exhibit(s) A and B

attached hereto.

C. During the period July 1, 2003 through June 30,

2004, the maximum obligation of County for all services

provided under this Agreement is Fifty-Three Thousand

Dollars ($53,000). This sum represents the total maximum

obligation of County as shown in the Exhibit(s) A and B

attached hereto.

D. During the period July 1, 2004 through June 30,

2005, the maximum obligation of County for all services

provided under this Agreement is Fifty-Three Thousand

Dollars ($53,000). This sum represents the total maximum

obligation of County as shown in the Exhibit(s) A and B

attached hereto.

E. During the period July 1, 2005 through June 30,

2006, the maximum obligation of County for all services

provided under this Agreement is Fifty-Three Thousand

Dollars ($53,000). This sum represents the total maximum

obligation of County as shown in the Exhibit(s) A and B

attached hereto.

F. If, at any time during the term of this Agreement or

at any time after the expiration or termination of this

Agreement, authorized representatives of Federal, State, or

- 9 -

County governments conduct an audit of Contractor regarding

the services provided to County hereunder and if such audit

finds that County's dollar liability for such services is

less than payments made by County to Contractor, then

Contractor agrees that the difference shall be either: (1)

repaid forthwith by Contractor to County by cash payment or

(2) at Director's option, credited against any amounts due

by County to Contractor whether under this Agreement or any

other agreement, or contract, covered under ADPA control.

If such audit finds that County's dollar liability for

services provided hereunder is more than payments made by

County to Contractor, then the difference shall be paid to

Contractor by County by cash payment, provided that in no

event shall the maximum obligation of County for this

Agreement, as set forth in this Paragraph be exceeded.

5. COMPENSATION: County agrees to compensate Contractor

for performing alcohol and drug services hereunder, as set forth

in the PAYMENT Paragraph of the ADDITIONAL PROVISIONS, the

REIMBURSEMENT Paragraph of the Exhibit(s), and in the Schedule(s)

(any applicable Budget[s] thereto), all attached hereto and

incorporated by reference.

6. NON-APPROPRIATION OF FUNDS CONDITION: Notwithstanding

any other provision of this Agreement, County shall not be

obligated by any provision of this Agreement during any of

- 10 -

County's fiscal years unless funds to cover County's costs

hereunder are appropriated by County's Board of Supervisors. In

the event that funds are not appropriated for this Agreement,

then this Agreement shall be deemed to have terminated on June

30th of the prior fiscal year. County shall notify Contractor in

writing of such non-appropriation of funds at the earliest

possible date.

7. INDEMNIFICATION: Contractor shall indemnify, defend,

and hold harmless County and its Special Districts, elected and

appointed officers, employees, and agents from and against any

and all liability, including but not limited to demands, claims,

actions, fees, costs, and expenses (including attorney and expert

witness fees), arising from or connected with Contractor’s acts

and/or omissions arising from and/or relating to this Agreement.

8. GENERAL INSURANCE REQUIREMENTS: Without limiting

Contractor's indemnification of County and during the term of

this Agreement, Contractor shall provide and maintain, and shall

require all of its subcontractors to maintain, the following

programs of insurance specified in this Agreement. Such

insurance shall be primary to and not contributing with any other

insurance or self-insurance programs maintained by County, and

such coverage shall be provided and maintained at Contractor’s

own expense.

- 11 -

A. Evidence of Insurance: Certificate(s) or other

evidence of coverage satisfactory to County shall be

delivered to County's Department of Health Services,

Contracts and Grants Division, 313 North Figueroa Street,

Sixth Floor-East, Los Angeles, California 90012, prior to

commencing services under this Agreement. Such certificates

or other evidence shall:

(1) Specifically identify this Agreement.

(2) Clearly evidence all coverages required in this

Agreement.

(3) Contain the express condition that County is to

be given written notice by mail at least thirty (30)

calendar days in advance of cancellation for all

policies evidenced on the certificate of insurance.

(4) Include copies of the additional insured

endorsement to the commercial general liability policy,

adding County of Los Angeles, its Special Districts, its

officials, officers, and employees as insureds for all

activities arising from this Agreement.

(5) Identify any deductibles or self-insured

retentions for County’s approval. County retains the

right to require Contractor to reduce or eliminate such

deductibles or self-insured retentions as they apply to

County, or, require Contractor to provide a bond

- 12 -

guaranteeing payment of all such retained losses and

related costs, including, but not limited to, expenses

or fees, or both, related to investigations, claims

administrations, and legal defense. Such bond shall be

executed by a corporate surety licensed to transact

business in the State of California.

B. Insurer Financial Ratings: Insurance is to be

provided by an insurance company acceptable to County with

an A.M. Best rating of not less than A:VII, unless otherwise

approved by County.

C. Failure to Maintain Coverage: Failure by Contractor

to maintain the required insurance, or to provide evidence

of insurance coverage acceptable to County, shall constitute

a material breach of contract upon which County may

immediately terminate or suspend this Agreement. County, at

its sole option, may obtain damages from Contractor

resulting from said breach. Alternatively, County may

purchase such required insurance coverage, and without

further notice to Contractor, County may deduct from sums

due to Contractor any premium costs advanced by County for

such insurance.

D. Notification of Incidents, Claims, or Suits:

Contractor shall report to County:

- 13 -

(1) Any accident or incident relating to services

performed under this Agreement which involves injury or

property damage which may result in the filing of a

claim or lawsuit against Contractor and/or County. Such

report shall be made in writing within twenty-four (24)

hours of occurrence.

(2) Any third party claim or lawsuit filed against

Contractor arising from or related to services performed

by Contractor under this Agreement.

(3) Any injury to a Contractor employee which

occurs on County property. This report shall be

submitted on a County "Non-Employee Injury Report" to

County contract manager.

(4) Any loss, disappearance, destruction, misuse,

or theft of any kind whatsoever of County property,

monies, or securities entrusted to Contractor under the

terms of this Agreement.

E. Compensation for County Costs: In the event that

Contractor fails to comply with any of the indemnification

or insurance requirements of this Agreement, and such

failure to comply results in any costs to County, Contractor

shall pay full compensation for all costs incurred by

County.

- 14 -

F. Insurance Coverage Requirements for Subcontractors:

Contractor shall ensure any and all subcontractors

performing services under this Agreement meet the insurance

requirements of this Agreement by either:

(1) Contractor providing evidence of insurance

covering the activities of subcontractors, or

(2) Contractor providing evidence submitted by

subcontractors evidencing that subcontractors maintain

the required insurance coverage. County retains the

right to obtain copies of evidence of subcontractor

insurance coverage at any time.

9. INSURANCE COVERAGE REQUIREMENTS:

A. General Liability Insurance (written on ISO policy

form CG 00 01 or its equivalent) with limits of not less

than the following:

General Aggregate: $2 Million

Products/Completed OperationsAggregate: $1 Million

Personal and AdvertisingInjury: $1 Million

Each Occurrence: $1 Million

B. Automobile Liability Insurance (written on ISO

policy form CA 00 01 or its equivalent) with a limit of

liability of not less than $1 Million for each accident.

Such insurance shall include coverage for all "owned",

- 15 -

"hired" and "non-owned" vehicles, or coverage for "any

auto".

C. Workers Compensation and Employers’ Liability:

Insurance providing workers compensation benefits, as

required by the Labor Code of the State of California or by

any other state, and for which Contractor is responsible.

In all cases, the above insurance also shall include

Employers’ Liability coverage with limits of not less than

the following:

Each Accident: $1 Million

Disease - Policy Limit: $1 Million

Disease - Each Employee: $1 Million

D. Professional Liability: Insurance covering

liability arising from any error, omission, negligent or

wrongful act of Contractor, its officers or employees with

limits of not less than $1 Million per occurrence and $3

Million aggregate. The coverage also shall provide an

extended two-year reporting period commencing upon

expiration or earlier termination or cancellation of this

Agreement.

10. PROHIBITION AGAINST ASSIGNMENT AND DELEGATION:

A. Contractor shall not assign its rights or delegate

its duties under this Agreement, or both, whether in whole

or in part, without the prior written consent of County.

- 16 -

Any assignment or delegation which does not have such prior

County consent shall be null and void. For purposes of this

Paragraph, such County consent shall require a written

amendment to this Agreement which is formally approved and

executed by the parties. Any billings to County by any

delegatee or assignee on any claim under this Agreement,

absent such County consent, shall not be paid by County.

Any payments by County to any delegatee or assignee on any

claim under this Agreement, in consequence of any such

County consent, shall reduce dollar for dollar any claims

which Contractor may have against County and shall be

subject to set-off, recoupment, or other reduction for any

claims which County may have against Contractor, whether

under this Agreement or otherwise.

B. Shareholders or partners, or both, of Contractor may

sell, exchange, assign or divest, or otherwise transfer any

interest they may have therein. However, in the event any

such sale, exchange, assignment, divestment, or other

transfer is effected in such a way as to give majority

control of Contractor to any person(s), corporation,

partnership, or legal entity other than the majority

controlling interest therein at the time of execution of

this Agreement, then prior written consent thereof by

County’s Board of Supervisors shall be required. Any

- 17 -

payments by County to Contractor on any claim under this

Agreement shall not waive or constitute such County consent.

Consent to any such sale, exchange, assignment, divestment,

or other transfer shall be refused only if County, in its

sole judgement, determines that the transferee(s) is (are)

lacking in experience, capability, or financial ability to

perform all Agreement services and other work. This in no

way limits County's right found elsewhere in this Agreement,

including, but not limited to, any right to terminate this

Agreement.

11. SUBCONTRACTING:

A. For purposes of this Agreement, subcontracts shall

be approved by Director or his/her authorized designee(s).

Contractor’s request to Director for approval of a

subcontract shall include:

(1) Identification of the proposed subcontractor

and an explanation of why and how the proposed

subcontractor was selected, including a description of

Contractor’s efforts to obtain competitive bids.

(2) A description of the services to be provided

under the subcontract.

(3) The proposed subcontract amount, together with

Contractor's cost or price analysis thereof.

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(4) A copy of the proposed subcontract. Any later

modification of such subcontract shall take the form of

a formally written subcontract amendment which must be

approved in writing by Director before such amendment

is effective.

B. Subcontracts issued pursuant to this Paragraph shall

be in writing and shall contain at least the intent of all

of the Paragraphs of the body of this Agreement, including

the ADDITIONAL PROVISIONS, and the requirements of the

Exhibits(s) and Schedule(S) attached hereto.

C. At least thirty (30) calendar days prior to the

subcontract’s proposed effective date, Contractor shall

submit for review and approval to Director, a copy of the

proposed subcontract instrument. With the Director’s

written approval of the subcontract instrument, the

subcontract may proceed.

D. Subcontracts shall be made in the name of Contractor

and shall not bind nor purport to bind County. The making

of subcontracts hereunder shall not relieve Contractor of

any requirement under this Agreement, including, but not

limited to, the duty to properly supervise and coordinate

the work of subcontractors. Approval of the provisions of

any subcontract by Director shall also not be construed to

constitute a determination of the allowability of any cost

- 19 -

under this Agreement. In no event shall approval of any

subcontract by Director be construed as effecting any

increase in the amount contained in MAXIMUM OBLIGATION OF

COUNTY Paragraph.

12. COMPLIANCE WITH APPLICABLE LAW:

A. Contractor shall comply with all Federal, State, and

local laws, ordinances, regulations, rules, guidelines, and

directives, applicable to its performance hereunder, as they

are now enacted or may hereafter be amended. To the extent

there is any conflict between Federal and State or local

laws, the former shall prevail.

In addition, in the performance of this Agreement,

Contractor shall specifically comply with the requirements

of Health and Safety Code, Division 10.5, Parts 1 and 3,

commencing with Section 11750 et seq.; Titles 9 and 22 of

the CCR; SDADP Drug Program and Drug Program/Medi-Cal

policies as identified in policy letters and the Department

of Health Services Substance Abuse Program Contract

Financial Handbook; written procedures as may be provided to

Contractor by ADPA; as well as all other applicable Federal,

State, and local laws, regulations, guidelines, and

directives.

Further, narcotic treatment program services providers

shall also specifically comply with all applicable

- 20 -

provisions of Health and Safety Code Division 10, Chapter 5,

Article 2 (Treatment of Addicts for Addiction) [Sections

11215, et seq.]; Title 9 CCR Chapter 4, Subchapter 4

(Narcotic Treatment Programs) [Sections 1000, et seq.]; Drug

Abuse Prevention Treatment, and Rehabilitation Act of 1972

(21 U.S.C. Sections 1101, et seq.) and Federal regulations

pertaining thereto; regulations of the Food and Drug

Administration ("FDA"), including Title 21 CFR Section

291.505, and the Drug Enforcement Administration ("DEA"); as

well as all other applicable Federal, State, and local laws,

regulations, guidelines, and directives. To the extent

there is any conflict between Federal and State or local

law, the former shall prevail.

Any reference to a specific statute, regulation, or any

other document not prepared by County is deemed to include a

reference to any amendment thereto as of the effective date

of such amendment; further, this Agreement shall be

interpreted and the parties' duties and obligations under

this Agreement shall be consistent with any amendment to any

applicable statute, regulation or other document not

prepared by County which occurs after the effective date of

the Agreement.

B. Contractor shall indemnify and hold harmless County

from and against any and all loss, damage, liability, or

- 21 -

expense resulting from any violation on the part of

Contractor, its officers, employees, or agents, of such

Federal, State, or local laws, ordinances, regulations,

rules, guidelines, or directives.

13. ADDITIONAL PROVISIONS: Attached hereto and

incorporated herein by reference, is a document labeled

"Additional Provisions". The terms and conditions therein

contained are part of this Agreement.

14. CONSTRUCTION: To the extent there are any rights,

duties, obligations, or responsibilities enumerated in the

recitals or otherwise in this Agreement, they shall be deemed a

part of the operative provisions of this Agreement and are fully

binding upon the parties.

15. CONFLICT OF TERMS: To the extent that there exists any

conflict or inconsistency between the language of this Agreement

body and its Additional Provisions, and that of any of the

Exhibit(s), Schedule(s), and any other documents incorporated

herein by reference (e.g., Budget[s] and/or Statement of Work

forms), the language in this Agreement and its Additional

Provisions, shall govern and prevail.

16. ALTERATION OF TERMS: This Agreement, together with the

Additional Provisions, Exhibit(s), Schedule(s), and any Budget(s)

and/or Statement of Work forms, attached hereto, fully expresses

all understandings of the parties concerning all matters covered

- 22 -

and shall constitute the total Agreement. No addition to, or

alteration of, the terms of this Agreement, whether by written or

verbal understanding of the parties, their officers, agents or

employees, shall be valid and effective unless made in the form

of a written amendment to this Agreement which is formally

approved and executed by the parties in the same manner as this

Agreement.

17. CONTRACTOR'S OFFICE: Contractor's primary business

office is located at 2080 Century Park East, Suite 1802, Century

City, California 90067. Contractor's primary business telephone

number is (310) 553-9500 and facsimile/FAX number is (310) 553-

7247. Contractor shall notify County, in writing, of any changes

made to Contractor's primary business address, business telephone

number and/or facsimile/FAX number as listed herein, or any other

business address, business telephone number and/or facsimile/FAX

number used in the provision of services herein, at least ten

(10) calendar days prior to the effective date(s) thereof.

18. NOTICES: Notices hereunder shall be in writing and may

either be delivered personally or sent by registered or certified

mail, return receipt requested, postage prepaid, attention to the

parties at the addresses listed below. Director is authorized to

execute all notices or demands which are required or permitted by

County under this Agreement. Addresses and parties to be

- 23 -

notified may be changed by providing at least ten (10) working

calendar days prior written notice to the other party.

A. Notices to County shall be addressed as follows:

(1) Department of Health ServicesContracts and Grants Division313 North Figueroa Street, Sixth Floor-EastLos Angeles, California 90012-2659

Attention: Division Chief

(2) Department of Health ServicesAlcohol and Drug Program Administration1000 South Fremont AvenueBuilding A-9 East, Third FloorAlhambra, California 91803

Attention: Director

B. Notices to Contractor shall be addressed as follows:

(1) The Pajo Corporation 2080 Century Park East, Suite 1802Century City, California 90067

Attention: Carolyn Perry, P.A. Executive Director

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IN WITNESS WHEREOF, the Board of Supervisors of the County

of Los Angeles has caused this Agreement to be subscribed by its

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Director of Health Services, and Contractor has caused this

Agreement to be subscribed in its behalf by its duly authorized

officer, the day, month, and year first above written.

COUNTY OF LOS ANGELES

By ______________________________Thomas L. Garthwaite, M.D.Director and Chief Medical Officer

THE PAJO CORPORATION Contractor

By Signature

Print Name

Title ___________________________(AFFIX CORPORATE SEAL HERE)

APPROVED AS TO FORMBY THE OFFICE OF THE COUNTY COUNSELLLOYD W. PELLMANCounty Counsel

APPROVED AS TO CONTRACTADMINISTRATION:

Department of Health Services

By Acting Chief, Contracts and Grants Division

11/03/2001ADCD1451.RWADCD0688.LVB 05/14/2001

THE PAJO CORPORATION

EXHIBIT A

OUTPATIENT NARCOTIC TREATMENT MAINTENANCE SERVICES(Proposition 36)

1. DEFINITION: Outpatient narcotic treatment maintenance

services are outpatient drug treatment services which provide

administration of methadone at relatively stable dosage levels

for a period in excess of twenty-one (21) days, as an oral

substitute narcotic drug, accompanied by ancillary social and

medical services, for persons eighteen (18) years or older who

have a history of two (2) or more years of dependence on heroin

or other morphine-like drugs, and two (2) or more failures in

alternative treatment programs.

2. PERSONS TO BE SERVED: Outpatient narcotic treatment

maintenance services shall be furnished to persons residing in

Los Angeles County, who were deemed to be eligible and referred

by a community assessment and service center.

3. SERVICE DELIVERY SITE(S) AND DAYS AND HOURS OF

OPERATION: Contractor's facility(ies), where outpatient narcotic

treatment maintenance services are to be provided, and the days

and hours of operation, or when services are to be provided

herein, are as follows:

Facility 1 is located at 2080 Century Park East Suite 1802,

Century City, California 90067. Contractor's facility telephone

number is (310) 553-9500 and facsimile/FAX number is

- 2 -

(310) 553-7247. Contractor's facility days and hours of operation

are Monday through Friday, 7:00 a.m. to 2:00 p.m.; Saturday,

Sunday and Holiday, 8:00 a.m. to 10:00 a.m., appointment only.

Facility 2 is located at

. Contractor's facility telephone number

is ( ) and facsimile/FAX number is ( ) .

Contractor's facility days and hours of operation are

.

Contractor shall obtain prior written approval from Director

at least thirty (30) days before terminating services at such

location(s) and/or before commencing such services at any other

location. If the days and hours of operation, telephone number,

facsimile/FAX number, of Contractor facility(ies), as noted

above, are changed in any manner, Contractor shall inform

Director at least ten (10) days prior to the effective date(s)

thereof.

4. MAXIMUM ALLOCATION:

A. During the period of “effective date” through June

30, 2002, that portion of the maximum obligation of County

which is allocated under this Exhibit for outpatient

narcotic treatment maintenance services is Thirteen

Thousand, Two Hundred Dollars ($13,200). Other financial

information for this Exhibit is contained in the Schedule(s)

and Budget(s), attached hereto and incorporated herein by

reference.

- 3 -

B. During the period of July 1, 2002, through June 30,

2003, that portion of the maximum obligation of County which

is allocated under this Exhibit for outpatient narcotic

treatment maintenance services is Thirty-Two Thousand

Dollars ($32,000). Other financial information for this

Exhibit is contained in the Schedule(s) and Budget(s),

attached hereto and incorporated herein by reference.

C. During the period of July 1, 2003, through June 30,

2004, that portion of the maximum obligation of County which

is allocated under this Exhibit for outpatient narcotic

treatment maintenance services is Thirty-Two Thousand

Dollars ($32,000). Other financial information for this

Exhibit is contained in the Schedule(s) and Budget(s),

attached hereto and incorporated herein by reference.

D. During the period of July 1, 2004, through June 30,

2005, that portion of the maximum obligation of County which

is allocated under this Exhibit for outpatient narcotic

treatment maintenance services is Thirty-Two Thousand

Dollars ($32,000). Other financial information for this

Exhibit is contained in the Schedule(s) and Budget(s),

attached hereto and incorporated herein by reference.

E. During the period of July 1, 2005, through June 30,

2006, that portion of the maximum obligation of County which

is allocated under this Exhibit for outpatient narcotic

treatment maintenance services is Thirty-Two Thousand

- 4 -

Dollars ($32,000). Other financial information for this

Exhibit is contained in the Schedule(s) and Budget(s),

attached hereto and incorporated herein by reference.

5. REIMBURSEMENT: County agrees to compensate Contractor

for services provided to clients under this Agreement, as set

forth in the PAYMENT Paragraph of the ADDITIONAL PROVISIONS of

this Agreement and in accordance with the reimbursement dollar

amounts, as set forth in the Schedule(s), referred to above and

attached hereto.

For the period of “effective date” through June 30, 2002,

County agrees to compensate Contractor for services provided to

participants under this Agreement, for actual reimbursable costs

as set forth in the Schedule(s) and Budget(s) referred to above,

and attached hereto, as such costs are reflected in Contractor's

billing statement.

For the period of July 1, 2002 through June 30, 2006, County

agrees to compensate Contractor for services provided to

participants under this Agreement, at the fee-for-service rate

for each slot day or portion thereof, as set forth in the

Schedule(s) referred to above, and attached hereto.

For purposes of this agreement, the definition of "slot day"

is one (1) "face to face" day of service, provided to a client,

by staff licensed to prescribe and administer medication. Such

service shall include evaluation by Contractor's staff of the

side effects and/or results of any medication prescribed and

- 5 -

administered. In addition, a slot day shall also include

services provided by Contractor as specified under Paragraph 9,

SPECIFIC SERVICES TO BE PROVIDED, hereinbelow. County shall keep

Contractor apprised of any changes in the definition or service

duties of "slot day", for which County will compensate Contractor

hereunder. In any event, County shall not reimburse Contractor

for services performed herein, for more than three hundred sixty-

five (365) slot days (or one treatment slot) per individual

client.

6. STATEMENT OF WORK AND EVALUATION OF SERVICES:

Contractor agrees to provide services to County and County

participants as described and as summarized in Contractor’s

"Statement of Work" form, attached hereto and incorporated herein

by reference. Contractor shall be responsible for submitting the

Statement of Work form in writing for Director’s review and

approval before the commencement of any services hereunder.

Contractor shall have a statement on the overall program

goals and objectives that will be achieved by Contractor in the

provision of services in accordance with the terms of this

Agreement. (Note: If Contractor’s program services are directed

towards individual participants, Contractor shall also have an

additional goals and objectives statement that describes the

specific effects on a participant’s behavior and health status

that Contractor’s services are expected to produce in a stated

percentage of the participant population to be served.) Each

- 6 -

goal and objective shall include a timetable and a completion

date, which shall not exceed the term of this Agreement. Program

goals and objectives shall be submitted by Contractor within

thirty (30) days following the execution of this Agreement for

approval by Director.

Contractor agrees to allow County to use Contractor’s program

goals and objectives to develop and implement new program

activities, to evaluate the effectiveness of the service (i.e.,

program) provided by Contractor under this Agreement, and to

modify, as required, either Contractor’s program operations or

Contractor’s treatment outcome expectations (when services are

directed towards individual participants) to improve services

received under this Agreement.

As a result of Federal, State, and local emphasis on better

documenting and assessing program effectiveness, the County may,

at its sole discretion, require Contractor to participate in

County-authorized process and outcome evaluations. Evaluation

requirements may include, but are not limited to, interviews of

program administrators, staff, and participants; completing

questionnaires; observation of staff in-service training and

staff delivery of services to participants; abstraction of

information from participant records; an expansion of the Los

Angeles County Participant Reporting System for both intake and

discharge information reported on participants; the reporting of

services received by selected participants; and other activities

- 7 -

to meet established standards for the conduct of evaluations of

acceptable scientific rigor. All evaluation activities will

provide suitable program, staff, and participant confidentiality

assurances and will be conducted under applicable Federal and

State law with appropriate Institutional Review Board (human

subject protection) approval. When conducted by non-County

employees, evaluation will be conducted under the direction of

County with additional oversight by a County-appointed advisory

group.

Contractor will participate in the Los Angeles County

Evaluation and Outcome Reporting Program, as requested by the

County. Contractor participation will include, but not be

limited to, training, data collection and reporting, and the

administration of standardized evaluation and outcome reporting

instruments. Contractor will be reimbursed at its prevailing

rate for staff participation in program activities. Failure of

Contractor to participate in this program as described in this

Paragraph, shall constitute a material breach of contract and

this Agreement may be terminated by County.

7. CLIENT RECORDS: Client records shall include intake

information consisting of personal, family, educational, drug

(including alcohol) use, criminal (if any) and medical history;

client identification data; diagnostic studies, if appropriate; a

service/treatment plan which includes short and long term goals

generated by Contractor's staff and client; assignment of a

- 8 -

primary counselor/case worker; description of type and frequency

of services including support services to be provided; a record

of client interviews and any other intake information determined

by the County as necessary for program evaluation purposes; and a

discharge/transfer summary and any other discharge information

determined by the County as necessary for program evaluation

purposes.

Contractor shall participate and cooperate in any automated

data collection system, for the purpose of program evaluation,

conducted by County. Contractor will be required to provide

County with client data, for the purpose of program evaluation.

8. MEDICATIONS: Contractor agrees that all controlled

substances and other prescription medications used hereunder

shall be administered and/or dispensed solely by a licensed

physician (i.e., medical doctor), licensed pharmacist, registered

nurse, licensed psychiatric technician or licensed vocational

nurse, in accordance with federal and State law and related

regulations.

9. SPECIFIC SERVICES TO BE PROVIDED: In addition to those

services as described above, and under the "Statement of Work"

form (Overall Goals) attached hereto and incorporated herein by

reference below, Contractor shall provide a number of specific

services which shall be provided in accordance with procedures

formulated and adopted by Contractor's staff and approved by

- 9 -

Director. The specific services to be provided by Contractor

hereunder are as follows:

A. Conduct intake and client assessment/diagnosis,

including documentation of admission requirements, and

medical and psychosocial histories.

B. Dispense and administer methadone to clients by

authorized personnel.

C. Casework services inclusive of individual

counseling, group counseling and crisis intervention, with

the involvement of the family where clinically appropriate

in the implementation of the treatment plan.

D. Involve "significant others" in the treatment

process when appropriate.

E. Coordinate the provision of services with other

agencies, including criminal justice agencies involved with

drug abuse programs.

F. Provide direct or referral services to clients, and

documentation of such services or referrals and referral

follow-up to other agencies for medical, social,

psychological, vocational, educational, legal, health

education or other services deemed appropriate for

contributing to clients' rehabilitation. Services provided

through referral shall not be a charge to nor reimbursable

hereunder.

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G. Provide services on weekends for the dispensing and

the administering of methadone.

H. Include provision, as needed, for the referral of

homeless clients to appropriate residential detoxification

and residential drug free programs, and to social services

and mental health programs for other services.

I. Conduct body fluids testing (urinalysis) which, if

performed by Contractor hereunder, shall require each

client's emission of the urine collected be observed by an

employee of Contractor to protect against the falsification

and/or contamination of the urine sample.

J. Education on Human Immunodeficiency Virus/Acquired

Immune Deficiency Syndrome ("HIV/AIDS") transmission and

access to HIV/AIDS testing.

K. Provide information and education on tuberculosis

("TB") and access to TB screening and services, in

accordance with Title 45 CFR Section 96.127(a)(1).

L. Exit planning to ensure clients have support in

recovery, including transition to community services and

sober housing.

M. Aftercare services to include participation in

support groups for a minimum period of six (6) months.

N. Contractor shall follow up with former clients in

accordance with Contractor's written policies and procedures

which shall be approved by Director prior to commencement of

- 11 -

this Agreement. Contractor shall attempt to contact any

client who has received a minimum of thirty (30) days of

outpatient narcotic treatment maintenance services and who

no longer actively participates in the service program.

O. Contractor shall provide additional specific

services, in accordance with the Treatment Program

Procedures for Proposition 36 participants, as outlined in

Attachment I, attached hereto and incorporated herein by

reference.

10. TREATMENT SLOTS: Contractor agrees to provide the

number of allocated outpatient narcotic treatment maintenance

treatment slots as set forth in the schedule attached hereto. A

treatment slot is defined as the capacity to provide methadone

maintenance services to one (1) individual for a period of two

hundred twenty-four slot days (i.e., days), or one (1) full year.

Contractor agrees, at any given time during the term of this

Agreement, Contractor shall be capable of providing daily

outpatient narcotic treatment maintenance services to the same

number of clients as there are allocated treatment slots.

11. PRODUCTIVITY BASELINE TO ESTABLISH PROJECTED MINIMUM

UNITS OF SERVICE FOR AGREEMENT TERM:

A. The total number of treatment slots licensed by the

State in the facility(ies) identified in this Exhibit is

160 .

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B. The total number of treatment slots to be used by

program clients under this Agreement is 6.0 .

C. The total treatment capacity for program clients

served under this Agreement is 1,344 (Item B x 224).

D. The projected utilization rate of the total

treatment capacity for program clients during the term of

this Agreement is 76.04 %.

E. Contractor shall provide a minimum of 1,023 slot

day units of service during the Agreement term (Item C x

Item D).

12. AUTOMATED PARTICIPANT REPORTING SYSTEM: Contractor

shall participate and cooperate in the implementation of the

automated Los Angeles County Participant Reporting System

(LACPRS), effective July 1, 2000. For the purpose of reporting

monthly data, Contractor will enter client information directly

into the County’s automated LACPRS database. In order to access

the Treatment Courts and Probation eXchange (TCPX) web-based

system for Proposition 36, Contractor shall provide a computer

system, including but not limited to, hardware, software, cable

lines and connections, and modem. Contractor shall provide

maintenance for the computer system, ensure that the system is up

to date, in good operational order at all times, and that any

hardware and/or software provided by Contractor is compatible

with any existing computer system used by County.

11/03/2001ADCD1456.RWADCD1022.LVB 05/14/2001

(COST)

THE PAJO CORPORATION

SCHEDULE A (1 of 2)

OUTPATIENT NARCOTIC TREATMENT MAINTENANCE SERVICES(Proposition 36)

Period of(effective date - 06/30/02)

1. Maximum Allocation ............................... $ 13,200

2. Projected Revenues ............................... $ 7,763

3. Projected Total Gross Program Cost ............... $ 20,963 (Item 1 plus Item 2)

4. Maximum Monthly Amount/Allocation ................ $ 1,885(Item 1 divided by the number of months in applicable period)

11/03/2001ADCD1456.RWADCD1022.LVB 05/14/2001

(COST)

THE PAJO CORPORATION

BUDGET A

OUTPATIENT NARCOTIC TREATMENT MAINTENANCE SERVICES(“effective date” through June 30, 2002)

(Proposition 36)

ITEM AMOUNT

Salaries $ 13,200

Facility Rent/Lease 0

Equipment Leases 0

Services and Supplies 7,763

Administrative Overhead 0

Gross Budget* $ 20,963

* Contractor may revise the amount of any existing line item(s)by a maximum of ten percent (10%) of the gross budget withoutprior written approval, and not more than twenty-five (25%) ofthe gross budget with prior written approval from Director orhis authorized designee. Therefore, any increase in any lineitem(s) of the budget shall be offset by a correspondingdecrease in the other line item(s) of the budget. In anyevent, any revisions made in the gross budget, shall notresult in any increase in the maximum obligation during thenon-provisional period of this Agreement.

11/03/2001ADCD1456.RWADCD1022.LVB 05/14/2001

(FFS)

THE PAJO CORPORATION

SCHEDULE A (2 of 2)

OUTPATIENT NARCOTIC TREATMENT MAINTENANCE SERVICES(Proposition 36)

Period of Period of Period of Period of(07/01/02- (07/01/03- (07/01/04- (07/01/05- 06/30/03) 06/30/04) 06/30/05) 06/30/06)

1. Allocated Treatment Slots.............. 6 6 6 6

2. Units of Service....................... 1,023 1,023 1,023 1,023 (Slot Day)

3. Maximum Allocation..................... $ 32,000 $ 32,000 $ 32,000 $ 32,000

4. Projected Revenues..................... $ 19,766 $ 19,766 $ 19,766 $ 19,766

5. Projected Total Gross Program Cost..... $ 51,766 $ 51,766 $ 51,766 $ 51,766 (Item 3 plus Item 4)

6. Fee-for-Service Rate per Slot Day...... $ 31.28 $ 31.28 $ 31.28 $ 31.28 (Item 3 divided by Item 2)

7. Maximum Monthly Amount/Allocation...... $ 2,666 $ 2,666 $ 2,666 $ 2,666

(Item 3 divided by the number of months in applicable period)

11/03/2001ADCD1456.RWADCD1022.LB 05/14/2001

THE PAJO CORPORATION

(Contract No. ; Exhibit A)

STATEMENT OF WORK

OUTPATIENT NARCOTIC TREATMENT MAINTENANCE SERVICES(Proposition 36)

OVERALL GOAL: Contractor shall indicate the overall goal to

be achieved by Contractor's program. A goal is a broad statement

(i.e., statement of work or mission statement) which describes the

services to be provided by Contractor and the overall goal(s)

and/or objective(s) that such services will achieve.

Services and Overall Goal:

To provide basic services to be adjudicated by Proposition 36

services such as: urinalysis, dosages and counseling (individual

and group). The goal will be to service as many patients as

possible .

A detailed description, including a timetable, of the services tobe provided and the program goals and objectives to be achieved,as they relate to the Services and Overall Goal statement aboveshall be submitted by Contractor within thirty (30) days followingthe execution of this Agreement for approval by Director.

11/03/2001ADCD1456.RWADCD1022.LVB 05/14/2001

THE PAJO CORPORATION

EXHIBIT B

OUTPATIENT NARCOTIC TREATMENT PROGRAM DETOXIFICATION SERVICES(Proposition 36)

1. DEFINITION: Outpatient narcotic treatment program

detoxification services are those drug treatment services which

provide for the administering or furnishing of methadone, as a

substitute narcotic drug in decreasing dosage levels for a period

not exceeding twenty-one (21) days, in order to allow an

individual or client who is dependent on heroin or other morphine-

like drugs to withdraw from the use of such addicting drugs. Such

outpatient narcotic treatment program services (or detoxification

[treatment] services), shall be conducted in conjunction with an

organized and coordinated program to aid the patient (i.e.,

client) in altering his/her drug dependent life style, and to

eventually eliminate all dependency on drugs.

2. PERSONS TO BE SERVED: Outpatient narcotic treatment

program detoxification services shall be furnished to those

individuals (i.e., clients) who are affected by drug related

problems, are dependent on heroin or other morphine-like drugs,

and who are deemed to be eligible for services and referred by a

community assessment and service center.

3. SERVICE DELIVERY SITE(S) AND DAYS AND HOURS OF

OPERATION: Contractor's facility(ies), where outpatient narcotic

- 2 -

treatment program detoxification services are to be provided, and

the days and hours of operation for reception and program entry,

or when services are to be provided herein, are as follows:

Facility 1 is located at 2080 Century Park East Suite 1802,

Century City, California 90067. Contractor's facility telephone

number is (310) 553-9500 and facsimile/FAX number is

(310) 553-7247. Contractor's facility days and hours of

operation are Monday through Friday, 7:00 a.m. to 2:00 p.m.;

Saturday, Sunday and Holiday, 8:00 a.m. to 10:00 a.m.,

appointment only.

Facility 2 is located at

. Contractor's facility telephone number is

( ) and facsimile/FAX number is ( ) .

Contractor's facility days and hours of operation are

.

Contractor shall obtain prior written approval from Director

at least thirty (30) days before terminating services at such

location(s) and/or before commencing such services at any other

location. If the days and hours of operation, telephone number,

or facsimile/FAX number, of Contractor facility(ies), as noted

above, are changed in any manner, Contractor shall inform

Director at least ten (10) days prior to the effective date(s)

thereof.

- 3 -

4. MAXIMUM ALLOCATION:

A. During the period of “effective date” through June

30, 2002, that portion of the maximum obligation of County

which is allocated under this Exhibit for outpatient

narcotic treatment program detoxification services is Eight

Thousand, Eight Hundred Dollars ($8,800). Other financial

information for this Exhibit is contained in the Schedule(s)

and Budget(s), attached hereto and incorporated herein by

reference.

B. During the period of July 1, 2002, through June 30,

2003, that portion of the maximum obligation of County which

is allocated under this Exhibit for outpatient narcotic

treatment program detoxification services is Twenty-One

Thousand Dollars ($21,000). Other financial information for

this Exhibit is contained in the Schedule(s) and Budget(s),

attached hereto and incorporated herein by reference.

C. During the period of July 1, 2003, through June 30,

2004, that portion of the maximum obligation of County which

is allocated under this Exhibit for outpatient narcotic

treatment program detoxification services is Twenty-One

Thousand Dollars ($21,000). Other financial information for

this Exhibit is contained in the Schedule(s) and Budget(s),

attached hereto and incorporated herein by reference.

D. During the period of July 1, 2004, through June 30,

2005, that portion of the maximum obligation of County which

- 4 -

is allocated under this Exhibit for outpatient narcotic

treatment program detoxification services is Twenty-One

Thousand Dollars ($21,000). Other financial information for

this Exhibit is contained in the Schedule(s) and Budget(s),

attached hereto and incorporated herein by reference.

E. During the period of July 1, 2005, through June 30,

2006, that portion of the maximum obligation of County which

is allocated under this Exhibit for outpatient narcotic

treatment program detoxification services is Twenty-One

Thousand Dollars ($21,000). Other financial information for

this Exhibit is contained in the Schedule(s) and Budget(s),

attached hereto and incorporated herein by reference.

5. REIMBURSEMENT: County agrees to compensate Contractor

for services provided to clients under this Agreement, as set

forth in the PAYMENT Paragraph of the ADDITIONAL PROVISIONS of

this Agreement and in accordance with the reimbursement dollar

amounts, as set forth in the Schedule(s), referred to above and

attached hereto.

For the period of “effective date” through June 30, 2002,

County agrees to compensate Contractor for services provided to

participants under this Agreement, for actual reimbursable costs

as set forth in the Schedule(s) and Budget(s) referred to above,

and attached hereto, as such costs are reflected in Contractor's

billing statement.

- 5 -

For the period of July 1, 2002 through June 30, 2006, County

agrees to compensate Contractor for services provided to

participants under this Agreement, at the fee-for-service rate

for each slot day or portion thereof, as set forth in the

Schedule(s) referred to above, and attached hereto.

For purposes of this agreement, the definition of a "slot

day" is one (1) "face to face" day of service, provided to a

client, by staff licensed to prescribe and administer medication.

Such service shall include evaluation by Contractor's staff of

the side-effects and/or results of any medication prescribed and

administered. In addition, a slot day shall also include

services provided by Contractor as specified under Paragraph 10,

SPECIFIC SERVICES TO BE PROVIDED, hereinbelow. County shall keep

Contractor apprised of any changes in the definition or service

duties of "slot day", for which County will compensate Contractor

hereunder. In any event, County shall not reimburse Contractor

for services performed herein, for more than twenty-one (21) slot

days (or one treatment slot) per individual client.

6. STATEMENT OF WORK AND EVALUATION OF SERVICES:

Contractor agrees to provide services to County and County

participants as described and as summarized in Contractor’s

"Statement of Work" form, attached hereto and incorporated herein

by reference. Contractor shall be responsible for submitting the

Statement of Work form in writing for Director’s review and

approval before the commencement of any services hereunder.

- 6 -

Contractor shall have s statement on the overall program

goals and objectives that will be achieved by Contractor in the

provision of services in accordance with the terms of this

Agreement. (Note: If Contractor’s program services are directed

towards individual participants, Contractor shall also have an

additional goals and objectives statement that describes the

specific effects on a participant’s behavior and health status

that Contractor’s services are expected to produce in a stated

percentage of the participant population to be served.) Each

goal and objective shall include a timetable and a completion

date, which shall not exceed the term of this Agreement. Program

goals and objectives shall be submitted by Contractor within

thirty (30) days following the execution of this Agreement for

approval by Director.

Contractor agrees to allow County to use Contractor’s program

goals and objectives to develop and implement new program

activities, to evaluate the effectiveness of the service (i.e.,

program) provided by Contractor under this Agreement, and to

modify, as required, either Contractor’s program operations or

Contractor’s treatment outcome expectations (when services are

directed towards individual participants) to improve services

received under this Agreement.

As a result of Federal, State, and local emphasis on better

documenting and assessing program effectiveness, the County may,

at its sole discretion, require Contractor to participate in

- 7 -

County-authorized process and outcome evaluations. Evaluation

requirements may include, but are not limited to, interviews of

program administrators, staff, and participants; completing

questionnaires; observation of staff in-service training and

staff delivery of services to participants; abstraction of

information from participant records; an expansion of the Los

Angeles County Participant Reporting System for both intake and

discharge information reported on participants; the reporting of

services received by selected participants; and other activities

to meet established standards for the conduct of evaluations of

acceptable scientific rigor. All evaluation activities will

provide suitable program, staff, and participant confidentiality

assurances and will be conducted under applicable Federal and

State law with appropriate Institutional Review Board (human

subject protection) approval. When conducted by non-County

employees, evaluation will be conducted under the direction of

County with additional oversight by a County-appointed advisory

group.

Contractor will participate in the Los Angeles County

Evaluation and Outcome Reporting Program, as requested by the

County. Contractor participation will include, but not be

limited to, training, data collection and reporting, and the

administration of standardized evaluation and outcome reporting

instruments. Contractor will be reimbursed at its prevailing

rate for staff participation in program activities. Failure of

- 8 -

Contractor to participate in this program as described in this

Paragraph, shall constitute a material breach of contract and

this Agreement may be terminated by County.

7. ADDITIONAL STAFFING REQUIREMENTS: In the course of

providing services hereunder, Contractor may utilize (a non-

physician practitioner) either a Physician Assistant or a

Registered Nurse Practitioner in the place of a supervising

physician, subject to the following conditions and restrictions:

A. In the case of Contractor using a Physician

Assistant as a non-physician practitioner to provide

services hereunder, Contractor shall obtain prior approval

of Board of Medical Quality Assurance Physician Assistant

Examining Committee. The services of a Physician Assistant

shall not be employed unless such prior approval is

received.

B. In the case of Contractor using a Registered Nurse

Practitioner as a non-physician practitioner to provide

services hereunder, there shall be a written agreement

between the supervising physician and the Registered Nurse

Practitioner detailing authority delegated by the

supervising physician and responsibilities of each of the

parties in the provision of medical services hereunder. The

agreement between the supervising physician and the

Registered Nurse Practitioner shall be included as part of

the procedures formulated and adopted by Contractor's staff,

- 9 -

and approved by Director, under the Paragraph 10, SPECIFIC

SERVICES TO BE PROVIDED, herein below.

8. METHADONE DETOXIFICATION DOSAGE LEVELS: Dosage levels

shall be determined and administered in accordance with the

following:

A. Contractor shall set forth in its protocol its

dosage procedures.

B. Detoxification treatment dosages should be low, but

sufficient to suppress withdrawal symptoms.

C. Deviations from Contractor's protocol or planned

dosage procedures, either in initial stabilization or

gradually decreasing dosage levels, shall be noted by the

physician, with justification for such deviations, noted in

the client's record. Contractor's protocol/planned dosage

procedures shall adhere to the following:

(1) Recommended initial dosage shall be as low as

appropriate.

(2) Dosages above forty (40) milligrams per day

require notification to ADPA.

(3) Dosages above sixty (60) milligrams per day are

prohibited.

9. MEDICATIONS: Contractor agrees that all controlled

substances and other prescription medications used hereunder

shall be administered and/or dispensed solely by a licensed

physician (i.e., medical doctor), licensed pharmacists,

- 10 -

registered nurses, licensed psychiatric technicians or licensed

vocational nurses and in accordance with Federal and State law

and related regulations.

10. SPECIFIC SERVICES TO BE PROVIDED: In addition to those

services as described above, and under the "Statement of Work"

form (Overall Goals) attached hereto and incorporated herein by

reference below, Contractor shall provide a number of specific

services which shall be provided in accordance with procedures

formulated and adopted by Contractor's staff and approved by

Director. The specific services to be provided by Contractor

hereunder are as follows:

A. Conduct intake, including physical examinations,

documentation of admission requirements and psychological

and medical histories.

B. Administer methadone to clients using Contractor's

authorized personnel. Contractor shall provide services for

the administering of methadone seven (7) days a week.

C. Provide casework services to include at least two

(2) individual counseling sessions for each client during

the twenty-one (21) slot day detoxification cycle.

D. Develop an individualized treatment plan for each

client which shall address client's needs for rehabilitative

services, including, but not limited to, individual therapy,

vocational guidance and job and education counseling; and

- 11 -

provision for obtaining drug free counseling services, when

the period of detoxification treatment is completed.

E. Conduct body fluid testing (urinalysis) which shall

be performed at the time of admission and any other time

deemed necessary by the attending physician. Contractor

shall observe each client's emission of the urine collected

to protect against the falsification and/or contamination of

the urine sample.

F. Coordinate the provision of services with other

agencies, including criminal justice agencies involved with

drug abuse programs.

G. Direct or referral services to clients (and

documentation of such services or referrals and referral

follow-up) to other agencies for medical, social,

psychological, vocational, educational, legal, health

education, or other services deemed appropriate for

contributing to client's rehabilitation. Referral for

ongoing drug counseling or methadone maintenance services,

together with follow-up regarding the success of such

referral is required. Services provided through referral

shall not be a charge to, nor be reimbursable, hereunder.

H. Contractor shall provide additional specific

services, in accordance with the Treatment Program

Procedures for Proposition 36 participants, as outlined in

- 12 -

Attachment I, attached hereto and incorporated herein by

reference.

11. TREATMENT SLOTS: Contractor agrees to provide the

number of outpatient narcotic treatment program detoxification

services treatment slots identified in the Schedule(s) attached

hereto. A treatment slot is defined as the capacity to provide

detoxification services to one (1) individual for a twenty-one

(21) slot day (i.e., day) period. At any given time during the

term of this Agreement, Contractor shall be capable of providing

daily services to the number of clients equal to the number of

treatment slots identified above.

12. PROGRAM CAPACITY AND PRODUCTIVITY BASELINE TO ESTABLISH

PROJECTED MINIMUM UNITS OF SERVICE FOR AGREEMENT TERM:

A. The total number of treatment slots licensed by the

State in the facility(ies) identified in this Exhibit is

160 .

B. The total number of treatment slots to be used by

program clients under this Agreement is 31.96 .

C. The total treatment capacity (slot day units of

service) for program clients served under this Agreement is

671 (Item B x 21).

D. The projected utilization rate of the total

treatment capacity for program clients during the term of

this Agreement is 100 %.

- 13 -

E. Contractor shall provide a minimum of 671 slot day

units of service during the Agreement term (Item C x Item D).

13. AUTOMATED PARTICIPANT REPORTING SYSTEM: Contractor

shall participate and cooperate in the implementation of the

automated Los Angeles County Participant Reporting System

(LACPRS), effective July 1, 2000. For the purpose of reporting

monthly data, Contractor will enter client information directly

into the County’s automated LACPRS database. In order to access

the Treatment Courts and Probation eXchange (TCPX) web-based

system for Proposition 36, Contractor shall provide a computer

system, including but not limited to, hardware, software, cable

lines and connections, and modem. Contractor shall provide

maintenance for the computer system, ensure that the system is up

to date, in good operational order at all times, and that any

hardware and/or software provided by Contractor is compatible

with any existing computer system used by County.

11/03/2001ADCD1458.RWADCD0699.LVB 05/14/2001

(COST)

THE PAJO CORPORATION

SCHEDULE B (1 of 2)

OUTPATIENT NARCOTIC TREATMENT PROGRAM DETOXIFICATION SERVICES(Proposition 36)

Period of(effective date - 06/30/02)

1. Maximum Allocation ............................... $ 8,800

2. Projected Revenues ............................... $ 3,422

3. Projected Total Gross Program Cost ............... $ 12,222 (Item 1 plus Item 2)

4. Maximum Monthly Amount/Allocation ................ $ 1,257(Item 1 divided by the number of months in applicable period)

11/03/2001ADCD1458.RWADCD0699.LVB 05/14/2001

(COST)

THE PAJO CORPORATION

BUDGET B

OUTPATIENT NARCOTIC TREATMENT PROGRAM DETOXIFICATION SERVICES(“effective date” through June 30, 2002)

(Proposition 36)

ITEM AMOUNT

Salaries $ 8,800

Facility Rent/Lease 3,422

Equipment Leases 0

Services and Supplies 0

Administrative Overhead 0

Gross Budget* $ 12,222

* Contractor may revise the amount of any existing line item(s)by a maximum of ten percent (10%) of the gross budget withoutprior written approval, and not more than twenty-five (25%) ofthe gross budget with prior written approval from Director orhis authorized designee. Therefore, any increase in any lineitem(s) of the budget shall be offset by a correspondingdecrease in the other line item(s) of the budget. In anyevent, any revisions made in the gross budget, shall notresult in any increase in the maximum obligation during thenon-provisional period of this Agreement.

11/03/2001ADCD1458.RWADCD0699.LVB 05/14/2001

(FFS)

THE PAJO CORPORATION

SCHEDULE B (2 of 2)

OUTPATIENT NARCOTIC TREATMENT PROGRAM DETOXIFICATION SERVICES(Proposition 36)

Period of Period of Period of Period of(07/01/02- (07/01/03- (07/01/04- (07/01/05- 06/30/03) 06/30/04) 06/30/05) 06/30/06)

1. Allocated Treatment Slots.............. 31.96 31.96 31.96 31.96

2. Units of Service....................... 671 671 671 671 (Slot Day)

3. Maximum Allocation..................... $ 21,000 $ 21,000 $ 21,000 $ 21,000

4. Projected Revenues..................... $ 26,925 $ 26,925 $ 26,925 $ 26,925

5. Projected Total Gross Program Cost..... $ 47,925 $ 47,925 $ 47,925 $ 47,925 (Item 3 plus Item 4)

6. Fee-for-Service Rate per Slot Day...... $ 31.28 $ 31.28 $ 31.28 $ 31.28 (Item 3 divided by Item 2)

7. Maximum Monthly Amount/Allocation...... $ 1,750 $ 1,750 $ 1,750 $ 1,750

(Item 3 divided by the number of months in applicable period)

11/03/2001ADCD1458.RWADCD0699.LVB 05/14/2001

THE PAJO CORPORATION

(Contract No. ; Exhibit B)

STATEMENT OF WORK

OUTPATIENT NARCOTIC TREATMENT PROGRAM DETOXIFICATION SERVICES(Proposition 36)

OVERALL GOAL: Contractor shall indicate the overall goal to

be achieved by Contractor's program. A goal is a broad statement

(i.e., statement of work or mission statement) which describes

the services to be provided by Contractor and the overall goal(s)

and/or objective(s) that such services will achieve.

Services and Overall Goal:

Basic services will be provided as adjudicated by

Proposition 36. Basic services are as follows: urinalysis,

dosages, and counseling (individual and group) .

A detailed description, including a timetable, of the services tobe provided and the program goals and objectives to be achieved,as they relate to the Services and Overall Goal statement aboveshall be submitted by Contractor within thirty (30) daysfollowing the execution of this Agreement for approval byDirector.

11/03/2001ADCD1458.RWADCD0699.LVB 05/14/2001

- 1 -

Attachment I

TREATMENT PROGRAM PROCEDURES

The contracted Community Assessment Service Centers ("CASCs")

shall conduct individual assessments for eligible Proposition 36

participants. The Addiction Severity Index, a nationally

recognized substance abuse assessment instrument, shall be used

by all CASCs and treatment providers to initially assess

participants and to monitor participant treatment outcomes. The

CASCs shall make referrals to community-based treatment providers

which will allow the participant to access the level of treatment

services and other needed human services commensurate with the

severity of the conditions identified.

Treatment services shall consist of a three-level system

increasing in duration and intensity depending on the assessed

severity of the participant’s substance abuse problem. Minimum

duration is three (3) months for the lowest level of severity,

six (6) months for mid-level severity and nine (9) months for the

most severe level. All levels of treatment shall included drug

testing.

1. Level I - Minimum participation in treatment is three (3)

months: Proposition 36 participants requiring a low level of

- 2 -

outpatient treatment shall receive services which, at a minimum

shall include:

A. Intake, orientation, and evaluation;

B. Development of a treatment plan;

C. Individual, family and/or group counseling sessions,

including alcohol and other drug education;

D. Participation in self-help meetings;

E. Individualized treatment as appropriate (e.g.,

perinatal, dual-diagnosis, special needs);

F. Referral to alcohol and drug free living facilities,

as appropriate;

G. Provision of, or referral and follow-up for,

supplemental treatment services including literacy training,

vocational counseling, mental health services, and health

services;

H. Random, observed drug testing;

I. Thirty (30) day initial treatment plan to

Probation/Court; and

J. Court appearances as ordered by the Court.

Reports on the participant’s progress shall be made to the

Deputy Probation Officer every thirty (30) days (including the

submission of an initial treatment plan within the first thirty

- 3 -

[30] days), and the participant’s progress shall be re-assessed

at the completion of 3 months. Based on the assessment of the

treatment provider and in collaboration with Probation and the

Court, the services within this level may be adjusted as deemed

appropriate by the designated Proposition 36 Court.

2. Level II - Minimum duration in treatment services is six

(6) months: Participants may require one or more of the

following treatment services:

A. Outpatient Counseling Services - Alcohol and drug

treatment and recovery services directed at alleviating

and/or preventing alcohol and drug problems in a non-

residential facility. Services shall include individual,

family, and/or group counseling sessions.

B. Narcotic Treatment Program Services - Administration

of an opiate replacement for opiate addicted persons with a

documented history of unsuccessful treatment attempts.

Services shall include:

(1) Replacement narcotic therapy;

(2) Evaluation of medical, employment, alcohol,

criminal and psychological problems;

- 4 -

(3) Screening for diseases that are

disproportionately represented in the opiate abusing

population;

(4) Monitoring for illicit drug use;

(5) Counseling by addiction counselors that are

evaluated through ongoing supervision; and

(6) Professional medical, social work, and mental

health services, on-site or by referral (through

contracted interagency agreements).

C. Day care Habilitative Treatment Services - A planned

program of services in a social setting structure to maximize

recovery and rehabilitation of clients. These services are

more intense than outpatient counseling, but less extensive

than 24-hour residential services and shall include

individual, family, and/or group counseling sessions.

D. Residential Treatment Services - Supervised twenty-

four (24) hour live-in program with structured treatment and

recovery services.

All participants in Level II shall receive the following

services:

A. Intake, orientation, and evaluation;

B. Development of a treatment plan;

- 5 -

C. Participation in self-help meetings;

D. Individualized treatment as appropriate (e.g.,

perinatal, dual-diagnosis, special needs);

E. Referral to alcohol and drug free living facilities,

as appropriate;

F. Provision of, or referral and follow-up for,

supplemental treatment services including literacy training,

vocational counseling, mental health services, and health

services;

G. Random, observed drug testing;

H. Thirty (30) day initial treatment plan to

Probation/Court; and

I. Court appearances as ordered by the Court.

Reports on the participant’s progress shall be made to the

Deputy Probation Officer every thirty (30) days (including the

submission of an initial treatment plan within the first thirty

[30] days), and the participant’s progress shall be re-assessed

at three (3) month intervals. Based on the assessment of the

treatment provider and in collaboration with Probation and the

Court, the services within this level may be adjusted as deemed

appropriate by the designated Proposition 36 Court.

- 6 -

3. Level III - Minimum duration in treatment services is

nine (9) months: Participants may require one (1) or more of the

following treatment services:

A. Outpatient Counseling Services - Alcohol and drug

treatment and recovery services directed at alleviating

and/or preventing alcohol and drug problems in a non-

residential facility. Services shall include individual,

family, and/or group counseling sessions.

B. Narcotic Treatment Program Services - Administration

of an opiate replacement for opiate addicted persons with a

documented history of unsuccessful treatment attempts.

Services shall include:

(1) Replacement narcotic therapy;

(2) Evaluation of medical, employment, alcohol,

criminal and psychological problems;

(3) Screening for diseases that are

disproportionately represented in the opiate abusing

population;

(4) Monitoring for illicit drug use;

(5) Counseling by addiction counselors that are

evaluated through ongoing supervision; and

- 7 -

(6) Professional medical, social work, and mental

health services, on-site or by referral (through

contracted interagency agreements).

C. Day care Habilitative Treatment Services - A planned

program of services in a social setting structure to maximize

recovery and rehabilitation of clients. These services are

more intense than outpatient counseling, but less extensive

than twenty-four (24) hour residential services and shall

include individual, family, and/or group counseling sessions.

D. Residential Treatment Services - Supervised twenty-

four (24) hour live-in program with structured treatment and

recovery services.

All participants in Level III shall receive the following

services:

A. Intake, orientation, and evaluation;

B. Development of a treatment plan;

C. Admission into a detoxification program, as

appropriate;

D. Participation in self-help meetings;

E. Individualized treatment as appropriate (e.g.,

perinatal, dual-diagnosis, special needs);

- 8 -

F. Referral to alcohol and drug free living facilities,

as appropriate;

G. Provision of, or referral and follow-up for,

supplemental treatment services including literacy training,

vocational counseling, mental health services, and health

services;

H. Random, observed drug testing;

I. Thirty (30) day initial treatment plan to

Probation/Court; and

J. Monthly Court appearances as ordered by the Court.

Reports on the participant’s progress shall be made to the

Deputy Probation Officer every 30 days (including the submission

of an initial treatment plan within the first thirty [30] days),

and the participant’s progress shall be re-assessed at three (3)

month intervals. Based on the assessment of the treatment

provider and in collaboration with Probation and the Court, the

services within this level may be adjusted as deemed appropriate

by the designated Proposition 36 Court.

4. Aftercare Services: All Proposition 36 participants,

regardless of level, shall participate in 6 months of Aftercare

or continuing care. Aftercare can occur in a variety of

settings, such as periodic outpatient meetings, relapse/recovery

- 9 -

groups, self-help groups, and half-way houses. Services may

include relapse prevention, alumni activities and mentorship

programs.

5. Changes of Level of Services: Depending upon each

individual’s progress, or lack thereof, changes in the level of

treatment may be needed. Each treatment provider is responsible

for providing timely reports to Probation and/or the Court

regarding the participant’s progress, and Probation is

responsible for relaying this information along with a report on

the participant’s compliance with his/her conditions of probation

to the Court. Reports from the provider shall be transmitted

electronically. Positive drug test or non-compliance with

treatment plans shall be reported within forty-eight (48) hours.

Services shall be modified to meet the individual needs of the

participant. Recommendations for increased or decreased levels

of treatment or the participant’s amenability to treatment, shall

be made jointly by the Deputy Probation Officer and treatment

counselor. The Courts shall be notified of a change in the level

of services and/or the participant may be returned to Court for a

change of level order, as appropriate.

11/03/2001

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ADCD1460.RW