HomeMy WebLinkAboutC-8085-3A - Intergovernmental Agreement Regarding Transfer of Public Funds 2017 #16-93671CONTRACT # 16-93671
INTERGOVERNMENTAL AGREEMENT REGARDING
TRANSFER OF PUBLIC FUNDS
This Agreement is entered into between the CALIFORNIA DEPARTMENT OF HEALTH CARE
SERVICES ("DHCS") and the City of Newport Beach, a California municipal corporation and charter
city operating through its Fire Department (GOVERNMENTAL FUNDING ENTITY) with respect to the
matters set forth below.
RECITALS
A. This Agreement is made pursuant to the authority of Welfare & Institutions Code, sections
14164 and 14301.4.
B. The Orange County Health Authority, a California public agency dba Orange Prevention
and Treatment Integrated Medical Assistance, dba CalOptima (HEALTH PLAN) is a public agency
formed pursuant to California Welfare and Institutions Code Section 14087.54 and Orange County
Ordinance No. 3896, as amended by Ordinance Nos. 00-8, 05-008, 06-012, 09-001, 11-013 and 14-002.
HEALTH PLAN is a party to a Medi -Cal managed care contract with DHCS, entered into pursuant to
Welfare and Institutions Code section 14087.3, under which HEALTH PLAN arranges and pays for the
provision of covered Medi -Cal health care services to eligible Medi -Cal members residing in the County.
THEREFORE, the parties agree as follows:
AGREEMENT
1. Transfer of Public Funds
1.1 The GOVERNMENT FUNDING ENTITY shall transfer funds to DHCS pursuant
to sections 14164 and 14301.4 of the Welfare and Institutions Code, up to a maximum total amount of
One Hundred Sixty Thousand Five Hundred Thirteen dollars ($160,513) for the period of July 1, 2015
through June 30, 2016, and a maximum total amount of Two Hundred Twenty Two Thousand Five
Hundred Four dollars ($222,504) for the period of July 1, 2016 through June 30, 2017, to be used solely
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as a portion of the nonfederal share of actuarially sound Medi -Cal managed care capitation rate increases
for HEALTH PLAN for the periods of July 1, 2015 through June 30, 2016, and July 1, 2016 through June
30, 2017 as described in section 2.2 below. The funds shall be transferred in accordance with a mutually
agreed upon schedule between the GOVERNMENTAL FUNDING ENTITY and DHCS, in the amounts
specified therein.
1.2 The GOVERNMENTAL FUNDING ENTITY shall certify that the funds
transferred qualify for federal financial participation pursuant to 42 C.F.R. part 433 subpart B, and are not
derived from impermissible sources such as recycled Medicaid payments, federal money excluded from
use as State match, impermissible taxes, and non -bona fide provider -related donations. For transferring
units of government that are also direct service providers, impermissible sources do not include patient
care or other revenue received from programs such as Medicare or Medicaid to the extent that the
program revenue is not obligated to the State as the source of funding.
2. Acceptance and Use of Transferred Funds by DHCS
2.1 DHCS shall exercise its authority under section 14164 of the Welfare and
Institutions Code to accept funds transferred by the GOVERNMENTAL FUNDING ENTITY pursuant to
this Agreement as intergovernmental transfers ("IGTs"), to use for the purpose set forth in section 2.2
below.
2.2 The funds transferred by the GOVERNMENTAL FUNDING ENTITY pursuant to
this Agreement shall be used to fund a portion of the nonfederal share of increases in Medi -Cal managed
care actuarially sound capitation rates described in paragraph (4) of subdivision (b) of section 14301.4 of
the Welfare and Institutions Code and shall be paid, together with the related federal financial
participation, by DHCS to HEALTH PLAN as part of HEALTH PLAN'S capitation rates for the periods
of July 1, 2015 through June 30, 2016 and July 1, 2016 through June 30, 2017. The rate increases paid
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under section 2.2 shall be used for payments related to Medi -Cal services rendered to Medi -Cal
beneficiaries. The rate increases paid under this section 2.2 shall be in addition to, and shall not replace or
supplant, all other amounts paid or payable by DHCS or other State agencies to HEALTH PLAN.
2.3 DHCS shall seek federal financial participation for the rate increases specified in
section 2.2 to the full extent permitted by federal law.
2.4 The parties acknowledge the State DHCS will obtain any necessary approvals
from the Centers for Medicare and Medicaid Services prior to the payment of any rate increase pursuant
to section 2.2.
2.5 The parties agree that none of these funds, either GOVERNMENTAL FUNDING
ENTITY or federal matching funds will be recycled back to the GOVERMENTAL FUNDING
ENTITY'S general fund, the State, or any other intermediary organization. Payments made by the
HEALTH PLAN to providers under the terms of this Agreement and their provider agreement constitute
patient care revenues.
2.6 Within One Hundred Twenty (120) calendar days of the execution of this
Agreement, DHCS shall advise the GOVERNMENTAL FUNDING ENTITY and HEALTH PLAN of the
amount of the Medi -Cal managed care capitation rate increases that DHCS paid to HEALTH PLAN
during the applicable rate year involving any funding under the terms of this Agreement.
2.7 If any portion of the funds transferred by the GOVERNMENTAL FUNDING
ENTITY pursuant to this Agreement is not expended for the specified rate increases under Section 2.2,
DHCS shall return the unexpended funds to the GOVERNMENTAL FUNDING ENTITY.
Amendments
3.1 No amendment or modification to this Agreement shall be binding on either party
unless made in writing and executed by both parties.
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3.2 The parties shall negotiate in good faith to amend this Agreement as necessary and
appropriate to implement the requirements set forth in section 2 of this Agreement.
Notices. Any and all notices required, permitted or desired to be given hereunder by one
party to the other shall be in writing and shall be delivered to the other party personally or by United
States first class, certified or registered mail with postage prepaid, addressed to the other party at the
address set forth below:
To the GOVERNMENTAL FUNDING ENTITY:
City of Newport Beach Fire Department
Attn: Angela Velazquez, Administrative Manager
100 Civic Center Drive
Newport Beach, California 92660
acrespi@nbfd.net
With copies to:
To DHCS:
City of Newport Beach
Attn: Andrew Maiorano, City Attorney
100 Civic Center Drive
Newport Beach, California 92660
amaiorano@newportbeachca.gov
Sandra Dixon
California Department of Health Care Services
Capitated Rates Development Division
1501 Capitol Ave., Suite 71-4002
MS 4413
Sacramento, CA 95814
Sandra.Dixon@dhes.ca.gov
,5. Other Provisions
5.1 This Agreement contains the entire Agreement between the parties with respect to
the Medi -Cal rate increases for HEALTH PLAN described in section 2.2 that are funded by the
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GOVERNMENTAL FUNDING ENTITY and supersedes any previous or contemporaneous oral or
written proposals, statements, discussions, negotiations or other agreements between the
GOVERNMENTAL FUNDING ENTITY and DHCS. This Agreement is not, however, intended to be
the sole agreement between the parties on matters relating to the funding and administration of the Medi -
Cal program. One or more other agreements already exist between the parties regarding such other
matters, and other agreements may be entered into in the future. This Agreement shall not modify the
terms of any other agreement between the parties.
5.2 The nonenforcement or other waiver of any provision of this Agreement shall not
be construed as a continuing waiver or as a waiver of any other provision of this Agreement.
5.3 Section 2 of this Agreement shall survive the expiration or termination of this
Agreement.
5.4 Nothing in this Agreement is intended to confer any rights or remedies on any third
party, including, without limitation, any provider(s) or groups of providers, or any right to medical
services for any individual(s) or groups of individuals; accordingly, there shall be no third party
beneficiary of this Agreement.
5.5 Time is of the essence in this Agreement.
5.6 Each party hereby represents that the person(s) executing this Agreement on its
behalf is duly authorized to do so.
6. State Authority. Except as expressly provided herein, nothing in this Agreement shall be
construed to limit, restrict, or modify the DHCS' powers, authorities, and duties under federal and state
law and regulations.
7. Approval. This Agreement is of no force and effect until signed by the parties.
8. Term. This Agreement shall be effective as of July 1, 2015 and shall expire as of
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June 30, 2019 unless terminated earlier by mutual agreement of the parties.
SIGNATURES
IN WITNESS WHEREOF, the parties hereto have executed this Agreement, on the date of
the last signature below.
THE CITY OF NEWPORT BEACH, a California municipal corporation and charter city operating
through its Fire
By: /-��� Date: SZZ 1 // I
Kevin Muldoo avor
THE STATE OF CALIFORNIA, DEPARTMENT OF HEALTH CARE SERVICES:
By: Date:
Jetiffifer Lopez, Ac mg Division Chief, Capitated Rates Development Division
APPROVED AS TO FORM:
CITY ATFORNEY'Y'S� OFFICE
Date: .S/ C7/l %
I
3y: �
Aaron C. Harp, City Attorney
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Wiwi I. Brown, MMC Date: i T"