Agenda

Return

C. 86

To:	Board of Supervisors
From:	Brian M. Balbas, Public Works Director/Chief Engineer
Date:	December 13, 2022

Contra

Costa

County

Subject:

Option to Purchase Real Property Located at 2191 Kirker Pass Road, Concord

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 12/13/2022

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

ABSENT:

John Gioia, District I Supervisor

Contact:

Julin Perez, 925-957-2460

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: December 13, 2022
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

APPROVE the purchase of an option for $1,000 that will give the County the right, for a six-month term, to purchase the real property located at 2191 Kirker Pass Road, Concord, for use in the operation of two therapeutic residential facilities for behavioral health clients at a purchase price of $2,900,000.


APPROVE and AUTHORIZE the Chair, Board of Supervisors, to execute the option, subject to approval by the County Administrator and approval as to form by County Counsel.

RECOMMENDATION(S): (CONT'D)

AUTHORIZE the Director of Public Works to extend the term of the option in one-month increments no more than three times at a cost not to exceed $100 for each extension.

AUTHORIZE the Auditor-Controller to issue a check in the amount of $1,000 payable to Doma Title of California, Inc., 4160 Dublin Blvd., Suite 100, Dublin, California, to be forwarded to the Real Estate Division of Public Works for deposit into escrow.

AUTHORIZE the Auditor-Controller to issue up to three additional checks in the amount of $100 each, payable to Doma Title of California, Inc., 4160 Dublin Blvd., Suite 100, Dublin, California, to be forwarded to the Real Estate Division of Public Works for deposit into escrow.

DIRECT the Real Estate Division of Public Works to record a memorandum of the option agreement in the Office of the Contra Costa County Recorder.

FISCAL IMPACT:

The option will be purchased using realignment funds made available by the State of California to support county mental health programs. If the option is exercised, the purchase of the property will be funded by a grant from the Behavioral Health Continuum Infrastructure Program (BHCIP), available through the California Department of Health Care Services (DHCS). The Board of Supervisors authorized the County to apply for BHCIP funds on July 12, 2022. The source of the required 10% match funding will be Realignment funds.

BACKGROUND:

APPLICATION FOR STATE FUNDING:

On July 12, 2022, the Board of Supervisors authorized the Health Services Director to apply for grant funding from BHCIP. Approval of the application was granted in recognition of the County’s need to increase the number of its urgent care and longer-term residential treatment facilities, both secure and voluntary, for adults with serious mental illness. In its application for BHCIP funding, the County intends to prioritize serving clients who require longer-term care in the County, regionalizing services, expanding step-down and other treatment options, and making additional facilities available for individuals who have co-occurring substance use disorder (SUD).

On September 30, 2022, DHCS announced the release of BHCIP Round 5: Crisis and Behavioral Health Continuum. Round 5 will make $480 million available to projects that address significant crisis care gaps in behavioral health infrastructure (i.e., mental health and SUD infrastructure). It is expected that the State will give priority to projects that provide crisis services to individuals in need. The application deadline for Round 5 is January 17, 2023.

The project contemplated by this board order will be part of the County’s application for BHCIP funding during Round 5. The option will give the County the right to buy the subject property under the terms of the option agreement and will only be exercised if the County’s application for BHCIP funding is approved. The right to purchase the property gives the County “site control.” If the County doesn’t have “site control” (i.e., ownership of, or the right to purchase, a particular property), over the location of the proposed project, DHCS will not award funds to the project.

PLANNED PROJECT – RESIDENTIAL TREATMENT FACILITY:

The subject property consists of approximately ten acres located at 2191 Kirker Pass Road, Concord. The property has been improved with two buildings, a storage shed, a children’s playground, a parking lot and landscaping. The project being proposed to the State as part of the County’s application for BHCIP funding involves the acquisition of the property, the demolition of the existing structures, the construction of two separate therapeutic residential facilities, and the operation of the two facilities.

If the project is approved, both of the new facilities will have a 16-bed capacity, will be staffed 24/7, and will be licensed by the State. Both will provide voluntary mental health services in a home-like setting. One facility will be used for individuals who have experienced a crisis and require additional support before returning home. The average length of stay at this facility is expected to be 5-14 days, with a maximum allowable stay of 30 days. The second facility will be used for individuals who are either returning from an institution for mental disease (IMD) or are at risk of IMD placement without additional support. The average length of stay at this facility is expected to be 3-9 months, with a maximum stay of 12 months. Both programs will provide comprehensive psychosocial and medication assessment; individual, group and family support; and life skills, social and recreational learning opportunities.

The site was selected based on its size, its proximity to the central and eastern parts of the County and its peaceful setting. The new buildings can be located at the back of the property, which will minimize any intrusion on the property and maximize privacy for the existing neighborhood.

PURCHASE OF PROPERTY:

As the first step in acquiring the property at 2191 Kirker Pass Road, Concord, the County will acquire a six-month option to purchase the property. The purchase price of the option is $1,000. The option price is non-refundable but will be applied to the purchase price of the property if the option is exercised. Once the option to purchase is in effect, the project will have four phases, which are (i) obtaining BHCIP funding from the State, (ii) acquiring the land (through the exercise of the purchase option), (iii) demolishing the existing buildings, and (iv) constructing the new facilities.

Under the terms of the option, the purchase price of the property is $2,900,000. If the option to purchase is exercised, the $1,000 purchase price of the option will be credited against the purchase price of the property.

If BHCIP funding is awarded to the County, a recommendation to accept the award and exercise the option to purchase the property will be the subject of a subsequent board order.

CONSEQUENCE OF NEGATIVE ACTION:

Failure to secure the right to purchase the real property at 2191 Kirker Pass Road, Concord, will result in the County not being awarded BHCIP funding to develop the proposed project.