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HomeMy WebLinkAboutMINUTES - 06232009 - C.116RECOMMENDATION(S): APPROVE a First Amendment to Option Agreement to extend the one-year Option Agreement to purchase 20 Allen Street, previously approved by the Contra Costa County (County) Board of Supervisors on July 22, 2008. The extension consideration for the first amendment shall be $75,000 to extend the Option term from July 22, 2009 to January 1, 2010 and to identify a new escrow company due to closure of the escrow company identified in the Option. Except for the amendments agreed to, Said Option Agreement remains in full force and effect for use by the Health Services Department. AUTHORIZE the Chair, Board of Supervisors, to execute said First Amendment to Option Agreement on behalf of the County. AUTHORIZE the Auditor-Controller to wire funds in the amount of $75,000 to First American Trust, FSB, Santa Ana Branch, 5 First American Way, Santa Ana, CA 92707, ABA Number 122241255 for Credit to First American Title Insurance Company, 1850 Mt. Diablo Blvd., Suite 300, Walnut Creek, CA 94596, Account Number 3016860000, Escrow No. NCS-396069-CC, Attention Pamela Nicolini, phone: 925-927-2173. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 06/23/2009 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Gayle B. Uilkema, District II Supervisor Mary N. Piepho, District III Supervisor Susan A. Bonilla, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Carmen Pina-Sandoval, 313-2012 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: June 23, 2009 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: EMY L. SHARP, Deputy cc: C.116 To:Board of Supervisors From:Julia R. Bueren, Public Works Director/Chief Engineer Date:June 23, 2009 Contra Costa County Subject:First Amendment to Option Agreement for 20 Allen Street, Martinez area. Project No. 5955-6X5024 DIRECT the Real Property Division to have the above referenced First Amendment RECOMMENDATION(S): (CONT'D) to Option Agreement recorded in the Office of the Contra Costa County Recorder. FISCAL IMPACT: This activity is funded by the Mental Health Services Act. BACKGROUND: On April 22, 2008, the Board of Supervisors approved a public/private budget balancing strategy for Health Services that included exploring the feasibility of building a psychiatric facility and contracting with a Community Based Organization (CBO) to operate within it a multi-level care program. The County has identified a property directly adjacent to the existing Contra Costa Regional Medical Center campus that is well suited for this project. The property is located at 20 Allen Street, Martinez. The 2.2 acre site currently includes the old 20 Allen Street building, which formerly housed Health Services Administration. It is an unreinforced masonry structure in poor condition, which led Health Services to vacate the building several years ago. The building would be demolished and a facility designed specifically for psychiatric programs would be constructed. The new facility would include (a) a 16-bed psychiatric health facility (PHF) which would be for County residents being brought in involuntarily, (b) a 16-bed crisis residential program, which would be for individuals who have converted to voluntary status but who still need a 24/7 structured treatment program, and (c) a new Assessment and Recovery Center (Center), which will provide services to both individuals being brought in involuntarily and individuals who voluntarily seek mental health services. The Center will be set up to accommodate both levels of care by having separate entrances and egress, and separate program space for each. These three new programs will provide for a continuum of the most acute psychiatric care possible, and will allow an individual to transition from one level of care to the next as needed. Health Services is proposing a First Amendment to the Option Agreement for this property to ascertain the feasibility of contracting with a CBO to operate the facility. The amendment to extend the option will guarantee the availability of the property once the feasibility of the proposed public/private partnership is verified. As consideration for this extension, the County will pay $75,000, from Mental Health Services Act, which is non-refundable if the Option is not exercised. If the option is exercised, the additional consideration will be credited against the final purchase price of $2,250,000. If and when the proposal is determined to be programmatically feasible, we will return to the Board with a recommendation to acquire the property, construct the facility, and contract with a CBO to operate it. CONSEQUENCE OF NEGATIVE ACTION: The one year option term included $100,000 which is non-refundable if the Option is not exercised. In order to determine the feasibility of contracting with a CBO to operate the facility, an extension through January 1, 2010 is necessary. As consideration for this extension, an additional $75,000 will be put up that is non-refundable if the Option is not exercised. If the Option is exercised, both the Option Consideration and the Extension Consideration ($175,000 in total) will be credited against the final purchase price. ATTACHMENTS Amendment