TO: Board of Supervisors
FROM: Ryan J. Alsop, Chief Executive Officer
REPORT BY: Becky Craig, Assistant Chief Executive Officer
SUBJECT: Project Creation and Related Budget Amendments for HHSA Behavioral Health Treatment Center
RECOMMENDATION
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Receive a presentation, create a new capital improvement project, and approve related budget amendments for repurposing the Reentry Facility as the HHSA Behavioral Health Treatment Center. (Fiscal Impact: $8.2 million expense-AB109 Public Safety Realignment Funds, $300,000 Expense-Health & Human Services Agency, $500,000 Expense - Capital Improvement Project 25005 Reentry Facility Acquisition; Not Budgeted; Discretionary)
[4/5 vote required]
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BACKGROUND
On August 20, 2024, the County authorized and appropriated the acquisition of the 72-bed Reentry Facility through defeasance of a long-term lease, in the amount of approximately $15.7 million. By acquiring the property, the County will then own the facility and is able to determine its operational use without restriction.
The original approval was for the acquisition was to be funded by the County’s General Fund through a transfer of $16 million to fund the purchase and all related costs. Through the assessment of community needs, collaboration and innovation, it was determined that the AB109 Public Safety Realignment monies, also known as Community Corrections Partnerships (CCP) could provide $8.2 million for the acquisition if the purpose of the facility aligned with the CCP’s priorities. The new goal for the facility is to provide services by the County Health and Human Services Agency (HHSA) as a Behavioral Health Treatment Center. This will then result in the reallocation of $7.3 million of the General Fund transfer to the Accumulated Capital Outlay Fund for future projects. $500,000 of the original General Fund transfer will remain, to offset staff’s request to increase project appropriations to $16.5 million resulting from increased costs to finalize the acquisition.
The Behavioral Health Treatment Center will consist of three programs: 1) Residential Substance Use Disorder Treatment and Withdrawal Management; 2) a Lanterman-Petris-Short (LPS) Act designated Mental Health Rehabilitation Center (MHRC) or other licensed facility type deemed eligible by the State to serve the target population; and 3) a Sobering Center.
The Behavioral Health Treatment Center envisions 1) New and Expanded Mental Health and Substance Use Disorder Care -SB 43 Treatment Mandate, 2) Proposition 36 Treatment Capacity, and 3) Jail and Emergency Department Diversion. These proposed programs at this new campus will strengthen the County’s behavioral health care system for those with the most serious mental health and substance use disorders to create infrastructure to meet the new SB43 mandate that modernizes conservatorships, sustain and expand residential treatment capacity to provide for a long-term facility through its relocation from Napa State Hospital and to serve the new adult offender population under Prop. 36 (allowing for an increase from 35 to up to 48 residential treatment beds at this new site) and create a program to divert intoxicated adults from arrest and jail into a safe environment with critical short-term care and access to onsite longer-term treatment.
HHSA, in working with the Public Works Department and Nacht & Lewis architects, anticipates that some modifications to the existing facility are needed to operate three treatment programs, thereby maximizing its use. Nacht & Lewis Architects was selected through a RFQ for on-call architectural services for various County projects and will assist the County with design of the project and preparation of plans, specifications and estimates. Nacht & Lewis designed the original facility which will be beneficial to the County for coordination and cost efficiency purposes. For tracking the modifications, staff is requesting the creation of a new Capital Improvement Project: 25050-HHSA Behavioral Health Treatment Center, with initial appropriations of $300,000 for the design phase, funded through a transfer from HHSA reserves. The goal is to complete the modifications to the facility in the first half of 2026, assuming Probation Department’s relocation from reentry to another leased space is accomplished in the Fall of 2025. The estimated total project cost through completion is $4,000,000 and will be funded from HHSA reserves. Public works will come back for additional appropriations once the estimated costs are finalized.
Current Challenges at Napa State Hospital:
Napa County currently leases space at Napa State Hospital for its Residential Treatment and Withdrawal Management Program. The urgent need for a long-term solution is underscored by extensive maintenance requirements, challenging access, and limited capacity within the exiting program and no ability to co-locate other treatment programs.
Optimal Relocation and Expansion:
Reentry Facility’s design, capacity, and existing furnishings make it the ideal site to relocate and expand capacity of our Residential Treatment and Withdrawal Management Program and add new critical programs to create a “Behavioral Health Treatment Center.” This new center is also adjacent to our new jail and nearby the Napa County HHSA that directly oversees these programs creating clear connections and referral pathways.
Requested Action:
1. For the close out of the Facility Acquisition - Approve Budget Amendments as follows:
a. Increase Transfers-Out appropriations in Fund 2500 Sub-division 1020081 - Community Corrections Partnership by $8.2 million, offset by use of available fund balance;
b. Redirect Transfers-In within Fund 3000, $7.3 million from Sub-division 3000560, Project 25005 to Sub-division 3000000 - Accumulated Capital Outlay for future use;
c. Increase appropriations in Fund 3000, Sub-division 3000560, Project 25005 by $500,000 for increased costs to close out the purchase, offset by project fund balance.
2. For the new purpose of the Reentry Facility - Approve the creation of a Capital Improvement Project and approve the related budget amendments as follows:
a. Establish a new Capital Improvement Project in Fund 3000, Sub-division 3000550, Project 25050-HHSA Behavioral Health Treatment Center;
b. Increase appropriations in Project 25050 for Engineer Services by $300,000, offset by transfer-in revenues from HHSA;
c. Increase Transfers-out appropriations in Fund 2000, Sub-division 2001000 HHSA Administration by $300,000, offset by use of available fund balance.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Payment of acquisition fees and establishing a Project with approval of initial budget are necessary to move the project forward. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
Construction costs will be incurred in fiscal year 2025-26. |
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Consequences if not approved: |
Fees will not be paid and the Project may not move forward. Behavioral health treatment infrastructure would not be developed. |
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Additional Information |
None |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: Consideration and possible adoption of a Categorical Exemption Class 1:It has been determined that this type of project does not have a significant effect on the environment and is exempt from the California Environmental Quality Act. [See Class 1 (“Existing Facilities”) which may be found in the guidelines for the implementation of the California Environmental Quality Act at 14 CCR §15301; see also Napa County’s Local Procedures for Implementing the California Environmental Quality Act, Appendix B.]