To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract #74-571-12 with Psynergy Programs, Inc.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Health Services Director, or designee, to execute on behalf of the County Contract #74-571-12 with Psynergy Programs, Inc., a corporation, in an amount not to exceed $862,860, to provide residential care services to adults diagnosed with Serious Mental Illness (SMI) and Serious and Persistent Mental Illness (SPMI), for the period July 1, 2026 through June 30, 2027.
FISCAL IMPACT:
Approval of this Contract will result in annual budgeted expenditures of up to $862,860 and will be funded 100% by Behavioral Health Services Act (BHSA) revenues. Beginning July 1, 2026, the Mental Health Services Act (MHSA) funding fully transitions to the BHSA to reflect full implementation and oversight required under California Proposition 1, approved by voters in March 2024, which modernizes MHSA by renaming it the BHSA and redirecting funding to support building a comprehensive, integrated, and unified behavioral health system statewide.
BACKGROUND:
This Contract meets the social needs of County’s population by providing community-based residential care services focusing on adults diagnosed with SMI and SPMI who are stepping down from the Institutes for Mental Diseases (IMD) levels of care and transitioning back into the community. This Contractor has been providing these services since September 2018.
This Contract is entered into under and subject to the following legal authorities: California Government Code §§ 26227; California Code of Regulations, Title 9, Section 523 et seq.; California Welfare and Institutions Code Section (5600 et. seq., known as The Bronzan-McCorquodale Act). The Behavioral Health’s Quality Management, Utilization Management and Contract Monitor staff meet on a regular basis to ensure monitoring and performance measures in the Contract are upheld. This Contract was approved by Health Services Personnel to ensure there is no conflict with labor relations. This Contractor was selected under the BHSA 2025/2026 update to the BHSA three-year plan, approved by the Board of Supervisors on June 24, 2025.
On June 24, 2025, the Board of Supervisors approved Contract #74-571-11 with Psynergy Programs, Inc., in an amount not to exceed $917,500, for the provision of residential care services to adults diagnosed with SMI and SPMI, for the period July 1, 2025 through June 30, 2026.
Approval of Contract #74-571-12 will allow the Contractor to continue providing residential care services through June 30, 2027.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract is not approved, there will be fewer residential care services available for adults diagnosed with SMI or SPMI as the County solicits and engages an alternative Contractor.