|
Agenda Item
ASR
Control 24-000215 |
||
|
MEETING
DATE: |
04/23/24 |
|
|
legal entity taking action: |
Board
of Supervisors |
|
|
board of supervisors district(s): |
3 |
|
|
SUBMITTING Agency/Department: |
Health
Care Agency (Approved) |
|
|
Department contact person(s): |
Veronica
Kelley (714) 834-7024 |
|
|
|
Annette
Mugrditchian (714) 834-5026 |
|
Subject: Approve Retroactive Contract for Be
Well Behavioral Health Hub with Mind OC
|
ceo CONCUR |
County Counsel Review |
Clerk of the Board |
||||||||
|
Concur |
Approved
Agreement to Form |
Discussion |
||||||||
|
|
|
3
Votes Board Majority |
||||||||
|
|
|
|
||||||||
|
Budgeted: Yes |
Current Year
Cost: $21,000,000 |
Annual Cost: FY 2024-25 $37,165,670 |
||||||||
|
|
|
|
||||||||
|
Staffing Impact: |
No |
# of Positions: |
Sole Source: Yes |
|||||||
|
Current Fiscal Year Revenue: N/A
|
||||||||||
|
Prior Board Action: 2/7/2023 #20, 9/13/2022 #29, 8/9/2022
#32, 2/1/2022 #7 |
||||||||||
RECOMMENDED
ACTION(S):
|
1. |
Approve
retroactive Contract with Mind OC for Funding of Construction of the Be Well
Behavioral Health Hub for the term of January 1, 2024, through Certificate of
Occupancy, in an amount not to exceed $62,874,729. |
|
2. |
Authorize the
County Procurement Officer or Deputized designee to execute the Contract with
Mind OC as referenced in the Recommended Action above. |
SUMMARY:
Approval of the Contract with Mind
OC for Funding of Construction of the Be Well Behavioral Health Hub will
support the construction of the Be Well Irvine Campus to help expand and
enhance Orange County’s shared system of behavioral health care and support by
providing access to Countywide behavioral health and substance use disorder
services, among other related services.
BACKGROUND
INFORMATION:
The Department of Health Care
Services (DHCS) was authorized through 2021 legislation to establish Behavioral
Health Continuum Infrastructure Program (BHCIP) and award $2.2 billion to
construct, acquire, and expand properties and invest in mobile crisis
infrastructure related to behavioral health.
On September 15, 2020, your
Honorable Board of Supervisors (Board) approved an option and ground lease
agreements with Mind OC to facilitate the entitlement, construction, operation,
management and maintenance of the Be Well Irvine Campus at the former Marine
Corps Air Station El Toro to help expand and enhance Orange County’s shared
system of behavioral health care and support by providing a second location for
residents of Orange County to access Countywide behavioral health and substance
use disorder services, among other related services.
On February 1, 2022, the Board
approved the grant award of $150,000 from DHCS for BHCIP Planning funds for the
planning efforts to expand the behavioral health infrastructure needs in Orange
County. Of the $150,000 award, $50,000 will go to Mind OC for the planning of
the Be Well Irvine Campus and the planning of the below projects.
On August 9, 2022, the Board
approved the grant award from DHCS for the BHCIP Round 3: Launch Ready
Projects. The County of Orange was awarded $10,165,670 to help fund the
planning and construction of a new 14,800 square feet (SF) Crisis Stabilization
Building. The building will include a Sobering/Recovery Center for adults and
Crisis Stabilization Units for both adults and adolescents. The
Sobering/Recovery Center will have twelve (12) bays, and the Crisis
Stabilization Unit will have eight (8) recliners/spaces for adolescents, and
sixteen (16) recliners/spaces for adults. The BHCIP Round 3 funds must be
encumbered by June 30, 2024, and expended by December 31, 2026, with project
close-out no later than June 30, 2027. The Program Funding Agreement between
DHCS and the Health Care Agency was executed in December 2023.
On September 13, 2022, the Board
approved the grant award from the Department of Health and Human Services (HHS)
for the Health Resources & Services Administration (HRSA) funds. The County
of Orange was awarded $5,000,000 that will be used for the procurement of
furniture and equipment for the Be Well Irvine Campus.
On January 23, 2023, pursuant to
the Board authority delegated on September 15, 2020, Mind OC entered into a
ground lease with the County for the purpose of designing, constructing and
operating a wellness hub at the Be Well Irvine Campus to support a coordinated,
Countywide behavioral health service system (Ground Lease). The facility is currently under construction
by Mind OC pursuant to the terms of the Ground Lease.
On February 7, 2023, the Board
approved the Grant Award of $27,659,059 from DHCS for BHCIP Round 4: Children
and Youth to help fund construction of a new single-story, 34,050 SF
residential treatment building for adolescent substance use disorder (SUD) and
perinatal SUD. The adolescent SUD program will offer thirty (30) beds, and
support both male and female clients. The perinatal SUD program will offer
twenty-four (24) rooms for either pregnant mothers or mothers with children.
The Program Funding Agreement between DHCS and the Health Care Agency (HCA) is
currently pending. HCA is working with Advocates for Human Potential to submit
all required documents. Once all required documents are submitted HCA will
execute the Program Funding Agreement for Round 4.
MHSA
Funding:
The $20 million of Mental Health
Services Act Funds (“MHSA”), funded by HCA, will help support Mind OC in the
design and construction of two (2) new buildings on the Campus, within Area 1,
including associated site work and landscaping. The first building is new
construction of a 24,011 square feet (SF) Welcome, Outpatient, & Support
Services building. The building will include a welcome lobby for the entire
Campus, inclusive of guest services & security, a kitchen & café to support
campus residents, support services space, and outpatient clinics. The second
building is new construction of a 34,997 SF residential treatment building for
adult crisis residential treatment (CRP) and adult substance use disorder
treatment (SUD). The adult CRP program will offer 16 beds, the adult SUD
program will offer 32 beds for residential treatment and 16 beds for withdrawal
management. The building will include rooms for individual and group therapy,
kitchens for meal preparation and learning nutritional skills, and have access
to outdoor activity spaces. Once constructed the facility will be owned and
operated by Mind OC pursuant to the terms of the Ground Lease.
U.S.
Department of Health and Human Services, Health Resources and Services
Administration (HRSA) Funding (federally earmarked funds)
The $5 million HRSA funds will
support Mind OC in the procurement of furniture and equipment for the Campus.
The funds will contribute to the procurement, delivery and installation of
moveable (non-architecturally significant) furniture & equipment, located
throughout the Be Well Irvine Campus. The funds will contribute to both
interior and exterior furniture and equipment. HCA worked closely with Mind OC
on the development of this Contract for the planning and construction of the Be
Well Irvine Campus, located at 7780, 7790, 7800, 7820, 7850, 7880, 7900 and
7950 Marine Way, Irvine, California 92618. The above-mentioned grant awards,
along with dedicated MHSA funding that was budgeted for the Be Well Irvine
Campus construction, will be used to expand the County of Orange behavioral
health services infrastructure. HCA has worked closely with Mind OC on the
implementation and planning of the Be Well Irvine Campus to help ensure it
meets the needs of the community and to help ensure the implementation of funds
is allowed as part of the grant funding. HCA is working with the HRSA team to
submit all required documents for these projects.
This a retroactive request to allow
for the reimbursement for the BHCIP Round 3 and Round 4 projects described
above. HCA is requesting retroactive approval due to the fact that DHCS and the
Board already approved projects for BHCIP round 3 and 4 grants, and the
facility is under construction currently. Additionally, DHCS is allowing for any
reasonable, actual, and documented project specific fees and expenses incurred
on or after June 16, 2022, the date of the Round 3 conditional award letter,
and on or after December 7, 2022, the date of the Notice of Conditional Award
for Round 4, to be reimbursed. The Contract will have deliverables that started
in January 2024. The County has previously entered into the Ground Lease for
the Premises to Mind OC for the purposes of designing and constructing a
wellness campus. Pursuant to the previously approved Ground Lease, Mind OC is
the sole vendor to plan and construct on the leased property and will
subsequently own and operate the facility. The proposed Contract is a sole
source contract.
The Orange County Preference Policy is not
applicable to this contract award. This contract, due to the nature of the
services, could require the addition of subcontractors. In order to add subcontractor(s) to the
contract, the contractor must express consent from HCA. Should the addition of
a subcontractor affect the scope of work and/or contract amount, HCA will bring
the item back to the Board for approval. See Attachment B for Contract Summary
Form.
FINANCIAL
IMPACT:
Appropriations for this Contract
are included in Budget Control 042 FY 2023-24 Budget and will be included in
the budgeting process for future years.
|
Funding |
Description |
FY
2023-24 |
FY
2024-25 |
FY
2025-26 |
Total
Funding Amount |
|
State: BHCIP Planning Funds |
Planning of Construction projects |
$50,000 |
N/A |
N/A |
$50,000 |
|
State: BHCIP Rd 3 |
Crisis Stabilization &
Sobering/Recovery Center Building |
$5,000,000 |
$5,165,670 |
N/A |
$10,165,670 |
|
State: BHCIP Rd 4 |
Adolescent/Perinatal Substance Use
Disorder Building |
$1,950,000 |
$21,000,000 |
$4,709,059 |
$27,659,059 |
|
State: MHSA |
Welcome, Outpatient, &Support
Building/Adult Crisis Building |
$13,000,000 |
$7,000,000 |
N/A |
$20,000,000 |
|
Fed: HRSA |
Furniture & Equipment for Campus |
$1,000,000 |
$4,000,000 |
N/A |
$5,000,000 |
|
Total |
|
$21,000,000 |
$37,165,670 |
$4,709,059 |
$62,874,729 |
The proposed Contract includes
provisions allowing HCA to terminate the Contract, reduce the level of
services, and/or renegotiate the levels of services provided, as necessary.
This includes a notice that allows HCA adequate time to transition or terminate
services to clients, if necessary.
STAFFING
IMPACT:
N/A
ATTACHMENT(S):
Attachment
A – Contract for Funding of Be Well Irvine Campus with Mind OC
Attachment B – Contract Summary Form