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<br />August 25, 2026 <br /> <br />“ORDINANCE ACCEPTING STEP-VA FUNDING IN THE AMOUNT OF $285,612 <br />FROM THE VIRGINIA DEPARTMENT OF BEHAVIORAL HEALTH AND <br />DEVELOPMENTAL SERVICES AND APPROPRIATING SAID AMOUNT IN THE FY <br />2027 BEHAVIORAL HEALTHCARE SERVICE FUND FOR USE BY BHS TO PROVIDE <br />TARGETED CASE MANAGEMENT, CARE COORDINATION, AND PSYCHIATRIC <br />REHABILITATION.” <br /> <br />26-195l: <br /> <br />Adoption of a resolution to approve the Amended and Restated FY 2026-2027 <br />Community Services Performance Contract for the Department of Behavioral <br />Healthcare Services. <br /> <br />Background: <br /> <br />Portsmouth Behavioral Healthcare Services (PBHS) is the City department <br />● <br />designated as the community services board (CSB) that provides publicly funded mental <br />health, developmental, and substance use disorder services for the City of Portsmouth. <br />The Community Services Performance Contract is the primary funding and <br />● <br />accountability mechanism between DBHDS and the CSB, negotiated under § 37.2-508 <br />of the Code of Virginia. It delineates the responsibilities of the Department and the CSB <br />and specifies the conditions that must be met for the receipt of state-controlled funds. <br />The current contract is a biennial FY2026–FY2027 agreement (term July 1, 2025 <br />● <br />through June 30, 2027). DBHDS periodically amends the contract; Amendment 4 is the <br />current amendment, effective July 1, 2026. <br /> <br />Discussion: <br /> <br />Pursuant to § 37.2-508 of the Code of Virginia, the CSB must submit its proposed <br />● <br />performance contract to the governing body of each city or county that established it for <br />review and approval on or before September 30 of each year. <br />Amendment 4 revises a defined set of contract documents for this review cycle: <br />● <br />the Performance Contract Master Agreement (Medicaid billing language); Exhibit B <br />(Continuous Quality Improvement); Exhibit E (Schedule and Process); Exhibit F (Federal <br />Grant Requirements); Exhibit G (CSB Master Programs Services Requirements); Exhibit <br />I (IT Security and Compliance); Exhibit M (DOJ Settlement Agreement Requirements); <br />Addendum I (Administrative Requirements, including Appendices C, E, and F); the State <br />and Federal Indirect Cost Rate Policy; and Local Match. <br />In accordance with DBHDS instruction for this cycle, the proposed contract was to <br />● <br />be made available for public review and comment for a period of 30 days prior to <br />The contract was made available for public review from <br />submission for local approval. <br />July 9, 2026 to August 10, 2026. <br /> <br /> <br />Financial Impact: <br /> <br />The performance contract is the vehicle through which DBHDS provides state and <br />● <br />federal funds to BHS for community behavioral health services. Funding resources and <br />allocations are set out in Exhibit A, which is maintained in the Department's electronic <br />reporting application and is not included in the amendment document. <br />A 10% local match on state general funds is required as a condition of state- <br />● <br />controlled funding and is appropriated through the City's annual budget in the Behavioral <br />Healthcare Service Fund. Amendment 4 makes no change to the local match <br />requirement. <br />Approval of the performance contract does not, by itself, appropriate funds. <br />● <br />Individual grant awards under the contract are accepted and appropriated by separate <br />City Council ordinance. <br /> <br />Recommended Action: <br />Adoption of the resolution. Strategic Pillar #2 Financial and Operational <br />● <br />Excellence. <br /> <br />Next Steps Following Council Action: <br />Following Council approval, PBHS will route the Performance Contract for City <br />● <br />Manager review and signature and return the signed document to DBHDS. <br /> <br /> <br /> <br /> <br /> <br />