Agenda

Return

C. 82

To:	Board of Supervisors
From:	Anna Roth, Health Services Director
Date:	August 1, 2023

Contra

Costa

County

Subject:

Mental Health Services Act Funds for Purchase of Real Property in San Pablo

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 08/01/2023

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Ken Carlson, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Suzanne Tavano, (925) 957-5201

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: August 1, 2023
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Health Services Director, or designee, to utilize budgeted Mental Health Services Act (MHSA) funds in the amount of $3,445,000, rather than a grant from the Behavioral Health Continuum Infrastructure Program (BHCIP), for the purchase of real property located at 2523 El Portal Drive, San Pablo, California, 94806 (the Property) if the County exercises its option to purchase the Property.

FISCAL IMPACT:

Approval of this action would not impact Count General Fund. The County’s application for BHCIP funds in Round 5 was not approved by the State; therefore, this action seeks Board authority to utilize alternative MHSA funds already received from the State if the County exercises its option to purchase the subject property.

BACKGROUND:

On July 12, 2022, the Board of Supervisors authorized Contra Costa Health to apply for funds made available under the State’s Behavioral Health Continuum Infrastructure Program (BHCIP), to support County behavioral health systems continuum of care in its efforts to address infrastructure needs. As part of the grant application, enforceable site control was required for all properties submitted in response to the Request for Applications. On December 13, 2022, the Board authorized the expenditure of $100,000 for purchase of an option that would enable the County to purchase the real property located at 2523 El Portal in San Pablo (the Property) for use as a mental health urgent care facility and as a therapeutic residential facility for behavioral health. Under the terms of the option, the County has the right through September 12, 2023, to purchase the Property for $3,445,000. The previously approved December 13, 2022 Board Order stipulated that the purchase price would be paid using BHCIP grant funds.

Three funding proposals were submitted during Round 5 of the BHCIP initiative, but were not awarded funding. However, given the outstanding need and strong stakeholder support, the Behavioral Health Services Division is recommending a revised, reduced scope for the project located at 2523 El Portal Drive in San Pablo, and a new funding strategy if the County elects to exercise the existing property option.

First, the financial and phsyical footprints of the project would be reduced from $33 million to $20.5 million by removing the originally proposed behavioral health community center and care-on-demand clinic. The two initiatives retained from the original proposal that would be two 16-bed residential programs (total of 32 beds), which would be certified to generate Medi-Cal Specialty Mental Health Services (SMHS) funds.

Second, the purchase price of the property and the initial site-work, which are expected to cost approximately a combined $7 million, would be provided through MHSA funds. Behavioral Health Services would submit a new proposal in BHCIP Round 6 requesting funding in the amount of $13.5 million to complete the project. Concurrently, this amount ($13.5 million) would be reserved in the MHSA budget as the back-up funding source in the event the grant is not awarded. The reduction in scope of the project and the proposed initial investment of local dollars should increase the likelihood of funding in BHCIP Round 6, but MHSA funds would be available if needed.

The December 13, 2022 Board Order clarified that in order to exercise of the option to purchase the property, the department would need to return to the Board for expenditure authority. This action requests only that the Board permit a modification of the source of funds should the County exercise the option to purchase during the available period. If this action is approved, the County’s Public Works Department will produce subsequent board requests on the August 8, 2023 and September 12, 2023 calendars to consider the consummation of the purchase of the Property.

CONSEQUENCE OF NEGATIVE ACTION:

Contra Costa Health would not have authority to utilize MHSA funds to complete the purchase of the Property if the County elects to exercise the existing purchase option.