Agenda

Return

C. 64

To:	Board of Supervisors
From:	Anna Roth, Health Services Director
Date:	May 18, 2021

Contra

Costa

County

Subject:

Settlement of Anka bankruptcy

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 05/18/2021

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
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:	Patrick Godley, 925-957-5405
cc:	Marcy Wilhelm Jackie Peterson

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: May 18, 2021
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

A. APPROVE and AUTHORIZE the Auditor-Controller to pay $26,234.13 to Paul Mansdorf, solely in his capacity as the duly appointed Chapter 7 Trustee for the bankruptcy estate of ANKA Behavioral Health, Inc. (US Bank. Ct., ND CA, Case No. 19-41025 WJL), to settle claims for contractual services rendered, as recommended by the Health Services Director; and

B. APPROVE and AUTHORIZE the Health Services Director for Contra Costa Health Services or designee to execute the settlement agreement on behalf of the County.

FISCAL IMPACT:

The County will pay $26,234.13 in settlement of claims for contractual services rendered. (100% Realignment funding)

BACKGROUND:

ANKA Behavioral Health, Inc. (“Anka”) and the County entered into multiple service contracts under which Anka provided mental health services to County residents on behalf of the County. On April 30, 2019, Anka filed for bankruptcy and consequently stopped providing services under the contracts.

The bankruptcy trustee for the bankruptcy estate of Anka (“Bankruptcy Trustee”) has threatened to bring an action against the County, claiming that the County owes the bankruptcy estate approximately $336,261 under three of the parties’ contracts. Contra Costa Health Services disputes the assertion. Anka was paid for invoiced services before the invoices were reviewed and reconciled by the State and County. Health Services’ records reflect that open and denied claims that were previously invoiced by Anka and paid by the County exceed the amount of the claim asserted by the Bankruptcy Trustee.

In settlement of the parties’ claims and subject to approval of the bankruptcy court, the County would pay the Bankruptcy Trustee $26,234.13 under the proposed settlement agreement. The settlement agreement contains a mutual-release clause and a term whereby the County agrees to waive any claims it could have assert against Anka or the bankruptcy estate.

CONSEQUENCE OF NEGATIVE ACTION:

The Bankruptcy Trustee will likely bring an action against the County.