TO: Board of Supervisors
FROM: Steve Lederer, Director of Public Works
REPORT BY: Daniel Basore, Engineering Supervisor
SUBJECT: Construction Contract Award and Budget Amendment for “CSU Children’s Services Expansion”, PW 24-15
RECOMMENDATION
title
Award of Construction Contract to American River Construction, Inc. of Folsom, CA in the amount of $2,820,000 for the “CSU Children’s Services Expansion,” PW 24-15; and approve a Budget Amendment. (Fiscal Impact: $3,807,356 Expense; Health and Human Services Agency Fund; Not Budgeted; Discretionary)
[4/5 vote required]
body
BACKGROUND
The Department of Health Care Services (DHCS) was authorized through Welfare and Institutions Code sections 5960-5960.45 to establish the Behavioral Health Continuum Infrastructure Program (BHCIP) with
$2.2 billion to construct, acquire, and rehabilitate real estate assets or to invest in needed mobile crisis infrastructure to expand the community continuum of behavioral health treatment resources. DHCS is releasing BHCIP grant funds through six rounds that target various gaps in the state’s behavioral health facility infrastructure.
BHCIP aims to reduce homelessness, incarceration, unnecessary hospitalizations, and inpatient days and improve outcomes for people with behavioral health conditions by expanding access to community-based treatment. BHCIP proposes to invest in the expansion of beds, units, or rooms by building new behavioral health continuum infrastructure and expanding capacity. These resources would expand the continuum of services by increasing capacity for short-term crisis stabilization, acute and sub-acute care, crisis residential, community-based mental health residential treatment, substance use disorder residential treatment, peer respite, mobile crisis, community and outpatient behavioral health services, and other clinically enriched longer-term treatment and rehabilitation opportunities for individuals with behavioral health disorders, in the least restrictive and least costly setting.
Advocates for Human Potential (AHP) released “Round 5: Crisis and Behavioral Health Continuum” with a due date of applications by February 13, 2023. Health and Human Services Agency (HHSA) applied for the funds after extensive exploration and data collection on current community crisis needs, including children’s mental health needs related to the pandemic. The children’s expansion will provide crisis psychiatric assessment and crisis stabilization services for youth in Napa County. The services include medication assessment and administration, comprehensive care coordination, safety/discharge planning, and when necessary, facilitation of admission to psychiatric inpatient services. The service expansion will increase the current bed count from two in the current Crisis Stabilization Unit (CSU) to four in a separate area, created as a children’s specific treatment milieu focused on providing trauma informed, client-focused and culturally/linguistically appropriate services geared toward wellness and recovery.
By supporting an expansion of doubling the beds for children, we increase capacity not only within the crisis stabilization unit but also supporting the local emergency department. The two children’s beds in operation in the current CSU will be converted to adult beds. None of the BHCIP funding will be used in that transition to adult beds. The increase to four beds also supports the larger community mission to keep children in their communities and in home settings. Without local capacity, children are sent to out of county inpatient psychiatric hospital beds, which create costly barriers for family especially costs including childcare coverage for other children and transportation costs to out of county hospitals. The expansion of a children’s crisis CSU promotes the value in providing children and family specific services, creating a calm and safe therapeutic setting, and providing an opportunity for children to have more choice and voice in a separate clinical setting.
On July 25, 2023, the Board adopted a resolution authorizing the Director of HHSA to execute all required documents to participate in the BHCIP program, including but not limited to the Program Funding Agreement (PFA), Declaration of Restrictions, and Performance Deed of Trust accepting $3,329,955 in deliverable based revenue from the California DHCS through its contractor, AHP.
On April 23, 2024, the Board approved and authorized the creation and funding of the CSU- Children’s Services Expansion project and Agreement No. 240326B with TLCD Architecture for a maximum of $466,286 for design and construction administration services needed to support the project. During the feasibility review phase, Napa County requested to explore the feasibility of shared staff “core” spaces between the adult and youth programs with the goal of eliminating redundant space and increasing efficiency.
On September 10, 2024, the Board approved and authorized Amendment No. 1 to further explore the shared staff “core” space concept. After exploring this concept further through the feasibility work, Napa County determined the shared staff “core” spaces concept was the most efficient, safe, and reasonable program layout moving forward.
On December 3, 2024, the Board approved and authorized Amendment No. 2 which added architectural and engineering services for design and construction administration services to support the additional square footage of the shared staff “core” spaces concept which modifies the overall project square footage from approximately 3,000 square feet to approximately 6,856 square feet.
On June 24, 2025, the Board approved Plans and Specifications, authorized the project to bid, and authorized Amendment No. 3 shifted $50,000 from waterproofing (that is no longer needed) to other design disciplines to design a phased construction plan to keep the CSU operational during construction without increasing the overall contract amount. Construction will occur in three phases; the phased construction plan will be released during bidding as an addendum. On July 31, 2025, bids were received and opened. The bid results are attached for reference.
Staff recommends awarding the contract to the lowest responsive bidder, American River Construction, Inc. of Folsom, CA for their base bid of $2,820,000. American River Construction’s bid is lower than the engineer’s estimate of $3,190,000. The total project cost, including design and engineering, construction, construction management, special inspection, etc., is $4,607,356. Of the total project cost $3,329,955 is grant funded which will be reimbursed quarterly, HHSA will contribute $1,277,401 to the total project cost that will not be reimbursed and has been budgeted.
Requested Actions:
1. Award of the Construction Contract for the “CSU Children’s Services Expansion,” PW 24-15 to American River Construction, Inc. of Folsom, California for their low base bid of $2,820,000; and
2. Approve a Budget Amendment for the following (4/5 Votes required):
a. Increase Transfers Out appropriations by $3,807,356 in HHSA-Agency Administration (Fund 2000, Sub-Division 2001000, Account 56100) offset by increase to State Grant revenue by $3,329,955 (Fund 2000, Sub-Division 2001000, Account 43290) and use of its available fund balance by $477,401 to transfer to Project 24027 and increase to its Transfers In revenues (Fund 3000, Sub-Division 3000504, Project 24027, Account 48200); and
b. Increase Construction Services appropriations by $3,807,356 (Fund 3000, Sub-Division 3000504, Project 24027, Account 52360) offset by a Transfer In revenues from HHSA-Agency Administration budget.
FISCAL IMPACT
|
Is there a Fiscal Impact? |
Yes |
|
Is it currently budgeted? |
No |
|
Is it Mandatory or Discretionary? |
Discretionary |
|
Discretionary Justification: |
Approvals are needed to move the project forward into construction. |
|
Is the general fund affected? |
No |
|
Future fiscal impact: |
Routine maintenance of the facility upon project completion. |
|
Consequences if not approved: |
The project will not move forward and will jeopardize the grant funding received. |
|
Additional Information |
The grant fund is a deliverable based program funding agreement and the State will reimburse the County up to but not to exceed an amount of $3,329,955. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: 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.]