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Health and Human Services Agency (HHSA) in conjunction with the Chief Administrative Office (CAO) are recommending the Board:
1) Receive and file a presentation from the HHSA Director on the status and intended direction of the Behavioral Health Division’s Support, Outreach, Accessibility, and Resilience (SOAR) Project and the California Department of Health Care Services (DHCS) Bond Behavioral Health Continuum Infrastructure Program (Bond BHCIP) Round 1: Launch Ready grant;
2) Find that the proposed Bond BHCIP project is categorically and statutorily exempt from a California Environmental Quality Act (CEQA) review pursuant to 14 California Code of Regulations (CCR)§ 15301 (a), 14 CCR 15268 (a), and Welfare and Institutions Code (WIC) 5960.3(b);
3) Direct the HHSA Director to execute the Program Funding Agreement, similar in form, terms/conditions, and scope to the sample agreement attached (attachment A), which has been County Counsel approved, for the DHCS Bond BHCIP Round 1: Launch Ready grant, in the award amount of $24,000,000 for a term of execution through June 30, 2030, and to sign amendments which do not increase Net County Cost, contingent upon approval by County Counsel and Risk Management;
4) Authorize the Purchasing Agent, based on RFQ 23-918-072, to sign Agreement for Services 9701 with Lionakis, in the amount of $2,333,904, for a five-year term, which shall become effective upon final execution of the official Notice to Proceed with the Work, to provide architectural and engineering services for the tenant improvement project for County’s Psychiatric Health Facility (PHF) at 299 Fair Lane (upper level) and the HHSA offices at 295 Fair Lane (lower level) in Placerville, including amendments thereto that do not increase the maximum obligation or term of the Agreement; and
5) Authorize the HHSA Director, once the Program Funding Agreement is fully executed, to assign all of the Bond BHCIP Program Round 1 funding to the CAO for oversight and administration because the entirety of the funding is to be used towards the capital improvement project, and authorize the Assistant Chief Administrative Officer to sign related documents, requests for reimbursements, and all other associated documents pertaining to the grant.
FUNDING: 98% State Bond BHCIP Round 1 Grant Funds, 2% County Medical Services, with BHCIP matching funds provided through the County Medical Services Program Healthcare Infrastructure Development (CMSP HID) matching grant and in-kind equity.
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DISCUSSION / BACKGROUND:
On December 3, 2024, the Board adopted Resolution 211-2024 authorizing HHSA to apply for the Bond BHCIP Program Round 1 grant in response to the Request for Applications dated July 15, 2024 (Legistar file 24-1987). Subsequently, on December 13, 2024, HHSA submitted its application to DHCS for the Bond BHCIP Round 1 funding.
On May 6, 2025, HHSA was notified by Advocates for Human Potential, Inc (AHP), the entity administering the grant on behalf of DHCS, that its application to the Bond BHCIP Round 1 grant was awarded in the amount of $24,000,000 to pursue an infrastructure expansion project consisting of two components. This infrastructure expansion project, termed the SOAR Project, is intended to provide improved management for complex mental health and substance abuse cases at a centralized, easily accessible location. The first component of this infrastructure expansion project is comprised of the renovation of the upper floor of the PHF property located at 299 Fair Lane, Placerville. These modifications and renovations will facilitate the relocation and expansion of HHSA’s existing PHF, currently located at 935B Spring Street, Placerville. The second component of the SOAR Project is to renovate the lower floor of this property to house County staff from Outpatient Mental Health, Veterans’ Services, Self-Sufficiency, Substance Abuse, Public Guardian, Public Health, and Protective Services. The co-location of these programs and the development of an integrated client intake team and process at a location that is on the County’s public transportation route will improve equitable access to HHSA’s programs by lowering access barriers that currently exist due to HHSA’s programs being housed at multiple locations across the West Slope area, some of which are inaccessible by public transit.
On May 20, 2025, the Board adopted Resolution 067-2025, which amended Resolution 211-2024, and added authorization for the HHSA Director, or her duly appointed successor or designee (as the named Applicant) to accept and execute a Program Funding Agreement for the total award amount of $24,000,000 (Legistar file 24-0939).
On June 7, 2023, the County’s CAO Procurement and Contracts Division released Request for Qualifications (RFQ) 23-918-072 to solicit providers of as-needed professional architectural, engineering, and construction management consulting services. On August 22, 2023, Lionakis was formally published to this RFQ’s resulting qualified list for consulting services, including Category A - Architect: Commercial, Industrial, Landscape, Interior Design, and Category E - Engineer: Structural. The CAO Facilities Division has determined that this firm is best suited to provide the required expertise and value for the SOAR Project.
CEQA Analysis: Government code 15301 (a) exempts from CEQA actions taken by a public agency for projects consisting of minor alterations to an existing structure involving no expansion of use or square footage beyond what currently exists. Government code 15268 declares the project is statutorily deemed a ministerial project as it is a real estate asset to provide expanded capacity for acute and subacute care, and community and outpatient behavioral health services, and is located in a zone where office, retail, or parking is a principally permitted use. In addition, it will comply with, to the extent applicable, the core components of required labor standards in according with WIC 5960.31. Statutory exemption for WIC 5960.3 (b) states that CEQA is not applicable to a project funded under the Behavioral Health Continuum Infrastructure Program (Chapter 1 of Part 7 of Divisions 5 of the WIC) in which all specified requirements are met.
HHSA and the CAO are recommending the Board approve this agenda item to ensure seamless execution of the resulting Program Funding Agreement for the Bond BHCIP Round 1 Grant, which will allow HHSA and CAO to proceed with the next steps of the expansion project. Further, HHSA and CAO are recommending the Board approve the execution of Agreement 9701 with Lionakis to allow for architectural and engineering services to begin making the necessary improvements to the building. The Bond BHCIP Round 1 grant is structured as such that if the infrastructure expansion project is not completed by June 30, 2030, the entirety of the awarded funds must be paid back, regardless of whether the funds have been spent. Due to this timeline, County staff are moving as quickly as possible within this process to fulfill the commitments of the SOAR Project.
ALTERNATIVES:
Should the Board decline to approve this recommendation to accept the Bond BHCIP Round 1 grant, HHSA would continue providing existing services at the PHF and will pursue alternative funding sources to renovate the facility which will be needed at some point in the future. The SOAR project would end due to this grant being the sole source of the funding.
If funds to renovate the current PHF building are not found before it becomes unsafe for use, HHSA will either contract neighboring counties’ PHFs to house County patients or utilize local emergency departments for psychiatric emergency needs. The Board could choose to not approve Agreement for Services 9701 with Lionakis or could choose another consultant. This alternative could result in an increase in project costs and delays with no guarantee of finding an alternative consultant.
PRIOR BOARD ACTION:
1) 12/03/24, 24-1987, HHSA BHCIP Grant Application Resolution & HID Matching Grant Letter of Support
2) 04/08/25, 25-0515, Revised Letter of Support, Healthcare Infrastructure Development (HID) Matching Grant
3) 5/20/25, 25-0939, HHSA Behavioral Health Continuum Infrastructure Program Resolution Round 1
4) 09/30/25, 25-1267, Healthcare Infrastructure Development (HID) Matching Grant Acceptance
OTHER DEPARTMENT / AGENCY INVOLVEMENT:
CAO Facilities, CAO Procurement and Contracts, and County Counsel.
CAO RECOMMENDATION:
Approve as recommended.
FINANCIAL IMPACT:
There is no General Fund Cost associated with this agenda item. All matching funds associated with this project will be obtained through grants and in-kind equity.
CLERK OF THE BOARD FOLLOW UP ACTIONS:
N/A
STRATEGIC PLAN COMPONENT:
N/A
CONTACT:
Olivia Byron-Cooper, MPH, Director, Health and Human Services Agency
Laura Schwartz, Assistant Chief Administrative Officer, Chief Administrative Office