Title
Consideration of an amendment to the Federal Fiscal Year 2014 Women, Infants and Children (WIC) Local Agency Contract.
Body
Recommended Action: Accept the amendment; authorize the Chairman to sign the amendment document.
Background:
In preparing for a potential closure of WIC clinic's, caused by the recent shutdown of the Federal Government, the State WIC agency reviewed the current contract and found that the contract failed to include provisions to terminate or suspend the contract due to lack of federal funding. The amendment corrects this error and also clarifies the already existing provision for terminating the WIC contract by either party.
Alternatives: The County has the option not to agree to the amendment. It is unclear how the KDHE would react if the County refused to agree to the proposed amendment. If federal funding would not be available to the KDHE to pay the County at some point in time under this contract (without the amendment being signed), it is quite likely that the KDHE would still refuse to provide pass-through funding to the County. This would be the same result that would arise if the amendment to the contract were approved. Additional explanation is included below in the Legal Considerations.
Financial Considerations: No immediate financial impact will result from the recommended action. The contract amendment defines the terms of cancelation in the event that Federal funds received by the State are reduced or suspended during the term of the original agreement. In the event that the State must cancel its contract with Sedgwick County due to lack of Federal funding, WIC clinic revenue would be impacted.
Policy Considerations:
The Special Supplemental Nutrition Program for Women, Infants and Children (WIC Program) is authorized under Section 17 of the Child Nutrition Act of 1966, as amended. Legal authority under Federal Statute may be found at 42 U.S.C. 1786 and as regulated pursuant to the Code of Federal Regulations, Sec. 246 and the Kansas State WIC Policies and Procedures Manual. The Board of County Commissioners is authorized to accept the award pursuant to K.S.A. 19-101 et seq. Approval is by simple majority vote.
Legal Considerations: On October 16, 2013, the Board of County Commissioners approved the underlying contract between the County and the KDHE for WIC. Within the original contract, the KDHE neglected to include language indicating that the State would have the authority to terminate or suspend the contract due to a lack of available funds. Some form of this language is typically included in contracts with the State, particularly when pass-through funding is involved, as is the case with this contract. The KDHE saw a need to add that language as a result of the federal government shutdown in October. The proposed amendment to the contract, which has been drafted by the KDHE, essentially re-states the law on the issue of how the funding and termination of the contract would be handled if the State did not have enough funding.
The Board has the authority to approve this amendment under its home rule powers within K.S.A. 19-101 et seq. Approval would require a simple majority vote.