To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract #74-640-5 with Mental Health Connections
☒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 #74-640-5 with Mental Health Connections, a non-profit corporation, in an amount not to exceed $2,796,740, to provide rapid rehousing, assisted outpatient treatment, and child and family flexible housing fund administration services, 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 $2,796,740 and will be funded 93% by Behavioral Health Bridge Housing grant funds and 7% by Behavioral Health Services Act funds.
BACKGROUND:
Contractor’s unique knowledge of Contra Costa County’s needs and ability to implement a flexible housing fund make them a valuable partner. Contractor provides services to clients in the County’s Behavioral Health Services Division (BHSD), which includes the provision of rapid rehousing and household expenses including rental assistance and bridge housing support. This Contractor has been providing these services fostering a deep understanding off the County’s mission, values, and long-term objectives since December 1, 2021.
This Contract is entered into under and subject to the following legal authorities: 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. This Contractor was approved by Public Works Department on July 14, 2026.
In March 2024, the Purchasing Services Manager approved and executed Contract #74-640-2 with Mental Health Connections, in an amount not to exceed $198,000, for the provision of diversion housing flexible fund administration services including rental assistance and bridge housing support, for the period March 1, 2024 through June 30, 2026.
On June 10, 2025, the Board of Supervisors approved Contract Amendment #74-640-3 with Mental Health Connections, effective June 1, 2025, to increase the payment limit by $150,000, to a new payment limit of $348,000, to provide additional housing, assisted outpatient treatment, child and family flexible fund administration services with no change in the term.
On November 18, 2025, the Board of Supervisors approved Contract Amendment #74-640-4 with Mental Health Connections, effective August 1, 2025, to increase the payment limit by $1,350,000 to a new payment limit of $1,698,000, to provide additional housing, assisted outpatient treatment, child and family flexible fund administration services with no change in the term.
Approval of Contract #74-640-5 will allow the Contractor to continue providing rapid rehousing, assisted outpatient treatment, and child and family flexible fund administration services including rental assistance and bridge housing support through June 30, 2027. This Contract was delayed due to extended negotiations between Division and Contractor.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract is not approved certain flexible housing funds to allow for additional rental assistance and bridge housing to client’s of BHSD will not be provided and may result in displacement of these individuals resulting in an increase of unsheltered residents.
CHILDREN’S IMPACT STATEMENT:
The recommendation supports the following children’s outcomes: Families that are Economically Self Sufficient; Families that are Safe, Stable and Nurturing; and Communities that are Safe and Provide a High Quality of Life for Children and Families.