DATE: November 28, 2023
TO: Board of Supervisors
SUBMITTED BY: Susan L. Holt, Director, Department of Behavioral Health
SUBJECT: Agreement with RH Community Builders LP for Behavioral Health Bridge Housing
RECOMMENDED ACTION(S):
TITLE
1. Retroactively approve and authorize the Director of the Department of Behavioral Health’s application to the California Department of Health Care Services for the Non-Competitive Behavioral Health Bridge Request for Applications that was submitted April 27, 2023 ($21,833,333);
2. Under Administrative Policy No. 34 for competitive bids or requests for proposals (AP 34), determine that an exception to the competitive bidding requirement under AP 34 is satisfied and a suspension of competition is warranted due to unusual or extraordinary circumstances, and that the best interests of the County would be served by entering into an agreement with RH Community Builders LP as this vendor is uniquely qualified to provide the Behavioral Health Bridge Program services;
3. Approve and authorize the Chairman to execute an Agreement with the California Department of Health Care Services for the Non-Competitive Behavioral Health Bridge grant allocation for $21,833,333; and
4. Approve and authorize the Chairman to execute an Agreement with RH Community Builders LP for Behavioral Health Bridge Program Services, retroactive to September 5, 2023, not to exceed 4 consecutive years, total not to exceed $39,498,370.
REPORT
Approval of the first recommended action retroactively approves the application for the Behavioral Health Bridge Housing (BHBH) grant funding for immediate sustainable housing needs of people experiencing homelessness.
Approval of the second recommended action will suspend the competitive bidding process and allow the Department of Behavioral Health (DBH) to contract with RH Community Builders LP for a mid-term Behavioral Health Bridge Housing program. The program will be funded with Department of Health Care services (DHCS) grant funds.
Approval of the second recommended action authorizes DBH to receive the DHCS non-competitive grant award ($21,833,333).
Approval of the fourth recommended action will allow RH Community Builders LP who has the experience and expertise to provide property management, outreach, shelter, navigation, mental health, SUD, medical services, linkages to housing and rental assistance, in communities in the County. These funds will provide services through June 30, 2027.
There is no increase in Net County Cost associated with the recommended actions. Although this item pertains to a location in District 1 and District 2, the item is countywide.
ALTERNATIVE ACTION(S):
Should your Board not approve the recommended actions, the DBH would not meet the DHCS timeline for the implementation of BHBH services and would result in the County becoming less competitive for subsequent rounds of BHBH funding.
SUSPENSION OF COMPETITION/SOLE SOURCE CONTRACT:
It is requested that the County find under AP No. 34 that an exception to the competitive bidding requirement is satisfied, and a suspension of competition is warranted due to unusual or extraordinary circumstances, as DHCS Behavioral Health Bridge housing start-up infrastructure requirements provide a competitive advantage in future rounds of BHBH program funding for Counties that make beds available within 90-180 days of receipt of funds. A BHBH stakeholder committee was formed that included members of the Fresno Madera Continuum of Care, other County Departments, and community members to assess the availability of resources for the creation of the BHBH program. RH Community Builders was identified as an organization that has the qualifications and experience to provide the BHBH services and owns a 40-room motel converted to hold 60 individuals and is in escrow for a 100-room motel converted to hold 120 individuals. This will allow DBH to meet the implementation timeline required by DHCS if no competitive bidding process is required. Based on this information, a letter of interest was not necessary. The Internal Services Department - Purchasing Division concurs with the DBH’s assessment that this satisfies the exception to the competitive bidding process required by AP 34.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions.
The maximum grant from DHCS is in the amount of $21,833,333. Of that amount DBH has elected to retain $1,434,963 for administrative overhead over the 4-year term of the program.
The maximum compensation for the 4-year term of the agreement with RH Community Builders LP is $39,498,370 which will be funded with the DHCS non-competitive allocation grant award. The maximum compensation includes $14,737,499 for program and services and $5,478,333 for infrastructure development. The DHCS Notice of Award letter permits awardees to commence work for BHBH program expenses incurred back to the date of the award letter which is September 5, 2023, provided the expenses align with the project identified in the application and the final executed contract. Thus, DBH is requesting that the agreement is retroactive to September 5, 2023.
Sufficient appropriations and estimated revenues are included in the DBH’s Org 5630 FY 2023-24 Adopted Budget and will be included in future budget requests for the duration of the term. Actual costs will be determined by actual services provided.
DISCUSSION:
Through the BHBH Program, DHCS will provide $1.5 billion in funding statewide to operate bridge housing to address the immediate and sustainable housing needs of people experiencing homelessness who have a serious mental illness (SMI) and/or substance use disorder (SUD). The BHBH Program, which was signed into law in September 2022 under Assembly Bill (AB) 179 (Ting, Chapter 249, Statutes of 2022), provides funding through June 30, 2027.
On February 21, 2023, DHCS released the initial non-competitive round of Behavioral Health Bridge Housing Program Request for Applications (RFA) that will provide $907,936,000 to California counties for use in the planning and implementation of bridge housing services for Californians experiencing homelessness who have serious behavioral health conditions (a serious mental illness and/or substance use disorder). The maximum BHBH allocation for Fresno County is $21,833,333. The additional funding sources will come from Medi-Cal FFP and CalAIM ECM and CS. Once the initial implementation is underway, Fresno County will be eligible for two additional rounds of funding in the next couple of years.
Senate Bill 1338 established the Community Assistance, Recovery, and Empowerment (CARE) Program, added Section 5982(b) to the Welfare and Institutions Code (WIC) to stipulate that CARE Program participants be prioritized for any appropriate bridge housing funded by the BHBH Program. Funds from the BHBH Program will be used for bridge housing to build collaboration, increase resources, and fill gaps by addressing the housing needs of individuals experiencing both homelessness and a serious behavioral health condition (SMI, SUD, or both).
Additional competitive rounds of BHBH funding will be announced in the Summer of 2023 and in Fiscal Year 2024-25. These competitive rounds will take into consideration activities accomplished in the initial grant period that may include but are not limited to the number of bridge housing beds active and the number of individuals served in bridge housing. Approval of the recommended actions will allow DBH to implement the DHCS BHBH Program.
The recommended agreement gives one-way indemnity in favor of AHP and DHCS. AHP’s liability is also limited to the total dollar amount of work properly performed up to the effective date of termination. DBH believes that the benefits of the recommended Agreement outweigh any potential risks and recommends approval of the agreement.
ATTACHMENTS INCLUDED AND/OR ON FILE:
Behavioral Health Bridge Housing Request for Application (RFA)
Suspension of Competition Acquisition Request
Behavioral Health Bridge Housing Subcontract Agreement
On file with Clerk - Agreement with RH Community Builders
CAO ANALYST:
Amina Flores-Becker