To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Grant Agreement #78-103 with Advocates for Human Potential, 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, Project Funding Agreement #78-103 with Advocates for Human Potential, Inc., and any related certification documents as required by the grant, to pay County an amount not to exceed $37,993,776 for the development of the Los Medanos Recovery Center, which will be located at the property located on the County-owned property at 2311 Loveridge Road in Pittsburg, and AUTHORIZE the Public Works Director, or designee, to execute a regulatory agreement and declaration of restrictions, and any property related transaction documents, as required by the grant, all subject to final approval by the County Administrator and approval as to form by County Counsel.
FISCAL IMPACT:
Approval of this Project Funding Agreement will result in the County receiving up to $37,993,776 in funding from the State Department of Health Care Services through its administrator, Advocates for Human Potential, Inc., under State Prime Contract # 24-40117. County match of up to $3,799,377 is required and funded 27% ($1,015,000) by property equity and 73% ($2,784,377.58) by Mental Health Services Act funds.
BACKGROUND:
In March of 2024, California voters approved Proposition 1, a two-bill package amending the Mental Health Services Act (Senate Bill 326) and the Behavioral Health Bond Infrastructure Act of 2024 (Assembly Bill 531) to develop and expand an array of community behavioral health treatment and residential facilities through a competitive grant program administered by the California Department of Health Care Services (DHCS) with up to $4.4 billion dollars available statewide known as the Behavioral Health Continuum Infrastructure Program (BHCIP). On November 12, 2024, the Board of Supervisors approved the Behavioral Health Services Division’s request to apply for several projects including the Los Medanos Recovery Center project. In response to the County’s application, the County has been awarded up to $37,993,776 in grant funds for the construction of the Los Medanos Recovery Center, a multi-use facility on the campus of the Pittsburg Health Center in Pittsburg. The services to be provided at the recovery center include Mental Health Care on Demand, a sobering center and a medical withdrawal management program as well as outpatient and substance use services.
To receive the grant funds, the County is required to enter into Project Funding Agreement #78-103 (Agreement) with Advocates for Human Potential, Inc. (AHP), which is the grant administrator for DHCS for the Agreement. Under the terms of the Agreement, the County:
• Must develop construction plans and specifications, approved by AHP, and provide proof of a construction contract with a General Contractor.
• Is responsible for any cost overages and must return any excess funds upon construction completion.
• Must maintain an ongoing updated project budget.
• Must allow a Regulatory Agreement and Declaration of Restrictions to be recorded against that portion of the County-owned property that will be the site of the recovery center, restricting the use of the site for 30 years.
• Must provide a Phase I environmental study.
• Must indemnify both AHP and DHCS.
Approval of the Agreement will allow the County to receive funds for the construction of the Los Medanos Recovery Center. The term of the Project Funding Agreement begins upon execution of the agreement and continues through June 30, 2030, by which time the project funds must be expended, and the recovery center must be open and operational. The Agreement includes an indemnification provision requiring the County to indemnify, defend and hold harmless AHP and the State for any claims arising out of County’s performance under the Agreement, and for any claims and/or liabilities arising out the County’s failure to maintain the contractually required insurance policies, including Builder’s Risk Insurance.
CONSEQUENCE OF NEGATIVE ACTION:
If this Grant Agreement is not approved, the County will not receive this funding to support the development and construction of the Los Medanos Recovery Center.