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Douglas County authorizes service agreement addendum with Mental Health America of the Heartland, schedules provider work session
Summary
The Douglas County Board of Commissioners authorized the county administrator to sign a $519,552 2026 service agreement addendum moving supportive-housing services to Mental Health America of the Heartland and scheduled a work session before the 2027 budget review to examine provider capacity; the motion passed 4–1.
The Douglas County Board of Commissioners on Jan. 7 authorized the county administrator to sign a 2026 service agreement addendum totaling $519,552 with Mental Health America of the Heartland to consolidate county-supported permanent supportive housing services under one provider, and agreed to a provider work session before next year’s budget review. The motion passed 4–1.
The item (consent agenda item 1.8) formalizes moving master-lease administration, leasing and utility passthroughs, and supportive services previously administered under a HUD-funded arrangement into Mental Health America’s contract so that one organization manages the flexible housing pool and the permanent supportive housing program. Commissioners and staff emphasized the change reflects a contractor swap and accounting of leasing costs rather than a request for new county funding.
Commissioner Anderson pressed for more detail about the apparent increase from $164,274 discussed in November to the $519,552 figure now in the service-agreement addendum. Anderson moved to defer signing the addendum until Mental Health America of the Heartland could present; that motion failed for lack of a second. ‘‘I think that is a new budget request that we’re seeing,’’ Anderson said during questioning, citing the November figure discussed by the commission.
County staff and other commissioners replied that the dollars were already included in the county’s 2026 budget and that the larger figure largely reflects master-lease and utility costs being moved into the contract. County staff said the consolidated annual flexible housing pool budget would total $921,000 going forward (the packet shows HUD and local funding components). A county staff member added that an earlier version of the attached contract in the packet contained an outdated number and that $519,552 is the correct updated addendum total.
Simon Messmer, representing Mental Health America of the Heartland, explained why the number grew. ‘‘The change in the budget number largely reflects leasing costs and utility costs and things like that,’’ Messmer said, explaining that some leasing and utility expenses were not included in the prior proposal and now appear as passthroughs in the contract. He described a staffing approach aiming for roughly one dedicated staff person per 12 households and said MHAh has done similar work in other regional communities.
Public commenter John Ems urged the commission that the item should not have been on consent and asked for the provider to appear before commissioners to explain operational details. Commissioners agreed to schedule a work session with Mental Health America before the July budget hearings so the board can review progress, provider capacity and program operations before making decisions about the 2027 budget.
The motion authorized the county administrator to sign the 2026 addendum and included direction to schedule a provider work session prior to the July budget review. The board approved the motion 4–1.
