To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract #74-627-8 with Ever Well Health Systems, LLC.
☒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 #74-627-8 with Ever Well Health Systems, LLC, a limited liability company, in an amount not to exceed $1,507,450 to provide residential and mental health services for 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 expenditures of up to $1,507,450 and will be funded as budgeted by the department in FY 2026-27, by 100% Behavioral Health Services Act (BHSA) funds. 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:
The County has been contracting with Ever Well Health Systems, LLC since December 2020 to provide residential and mental health services to adults diagnosed with SMI and SPMI. This Contract meets the social needs of County’s population by providing residential facilities for adults who require support and are being discharged from state hospitals or psychiatric health facilities and require step-down care to transition to community living.
This Contract is entered into under and subject to the following legal authorities: Welfare and Institutions Code §§ 5600, et seq. (The Bronzan McCorquodale Act); California Code of Regulations (“CCR”), Title 9, §§ 523, et seq. (Community Mental Health Services); California Government Code §§ 26227 and 31000. This Contract was approved by Health Services Personnel to ensure there is no conflict with labor relations. 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. These contracted services were determined to be exempt from Administrative Bulletin 600.3 solicitation requirements by the Public Works Department’s Purchasing Division.
On June 24, 2025, the Board of Supervisors approved Contract #74-627-7 with Ever Well Health Systems, LLC, in an amount to exceed $1,507,450, for the provision of residential and mental health services for adults diagnosed with SMI and SPMI for the period July 1, 2025 through June 30, 2026.
Approval of Contract #74-627-8 will allow the Contractor to continue to provide services through June 30, 2027.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract is not approved, County clients in need of SMI and SPMI care will not have access to Contractor’s services possibly resulting in higher levels of placement, including hospitalization.