Title
Consider a memorandum/resolution authorizing a Professional Services Agreement with Central Texas Alcohol Rehabilitation Center for substance use disorder counseling and treatment services, in the amount of $132,723.69.
Body
DATE: January 20, 2026
TO: Kent Cagle, City Manager
FROM: Tiffanie McNair, Executive Director of Community Development
SUBJECT: Professional Services Agreement with Central Texas Alcohol and Rehabilitation Center (Cen-Tex ARC)
BACKGROUND AND FINDINGS:
The proposed agreement allows the City to provide funding for programming for Substance-Use Disorder treatment. This initiative responds to recommendations outlined in the Homeless and Mental Health Strategic Plan for intensive mental health and substance use disorder treatment.
Substance use disorder treatment includes counseling, and comprehensive wrap-around services to prepare individuals for long-term sufficiency and independence, as well as identifying permanent housing options to eligible unhoused persons.
The City of Killeen receives funding in disbursements from the Texas Opioid Abatement Fund Council, which is instrumental in supporting this program that assists individuals to exit homelessness in Killeen. To date, the City has received $358,453. The amount available to fund the proposed agreement is $132,723.69.
Central Texas Alcohol Rehabilitation Center (Cen-Tex ARC) provides substance use disorder treatment, counseling, and comprehensive wrap-around and housing support services. Funding for the program will support two scholarship beds for those experiencing homelessness, requiring substance abuse treatment services, and lack insurance coverage. The initial treatment term is up to 180 days. The treatment term may by extended up to an additional 45 days, with City approval, if it is determined that the extension will provide adequate supportive services to aid in the permanent housing of the program participant.
Staff recommends that City Council authorize the City Manager or his designee to enter into a professional services agreement with Cen-Tex ARC Inc., in the amount of $132,723.69.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
Staff recommends authorizing the City Manager or his designee enter into a Professional Services Agreement with Central Texas Alcohol Rehabilitation Center in the amount of $132,723.69 for substance counseling and treatment.
CONFORMITY TO CITY POLICY:
This item conforms with state and local policy and is recommended in the Homeless and Mental Health Strategic Plan which was approved by the City Council.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
The expenditure for FY 2026 is $132,723.69. Future year expenditures are contingent on future disbursements from the Texas Opioid Abatement Fund Council.
Is this a one-time or recurring revenue/expenditure?
This is a one-time expenditure.
Is this revenue/expenditure budgeted?
Yes, funds are available in the Programs- Homeless Initiative Fund account 213-55124-500-501-630002.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Yes
RECOMMENDATION:
Staff recommends that the City Council authorize the City Manager, or his designee, to enter into a Professional Services Agreement with Cen-Tex ARC in the amount of $132,723.69 for services for the treatment, counseling, and intervention related to substance use disorder.
DEPARTMENTAL CLEARANCES:
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Agreement
Presentation