To: Board of Supervisors
From: Health and Human Services Agency
Meeting Date: February 6, 2018
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Department Contact: |
Anne Molgaard |
Phone: |
463-7885 |
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Department Contact: |
Jenine Miller |
Phone: |
472-2342 |
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Item Type: Consent Agenda |
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Time Allocated for Item: N/A |
Agenda Title:
title
Adoption of Resolution Authorizing the Chief Executive Officer or Designee to Execute Agreements and Take All Other Necessary Actions to Carry Out Purpose of Agreement 17-006, an Agreement Between the County and Rural Communities Housing Development Corporation to Provide $1,336,000 of Seed Money Obtained from California’s Mental Health Services Act Housing Program to Develop a Rental Housing Project to Serve County Residents and Clients of Health and Human Services Agency Behavioral Health and Recovery Services
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Recommended Action/Motion:
recommendation
Adopt Resolution authorizing the Chief Executive Officer or designee to execute Agreements and take all other necessary actions to carry out purpose of Agreement 17-006, an Agreement between the County and Rural Communities Housing Development Corporation to provide $1,336,000 of seed money obtained from California’s Mental Health Services Act Housing Program to develop a rental housing project to serve County residents and clients of Health and Human Services Agency Behavioral Health and Recovery Services; and authorize Chair to sign same.
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Previous Board/Board Committee Actions:
On March 17, 2015, Board of Supervisors (“Board”) approved a resolution authorizing Director of Health and Human Services Agency (“HHSA”) to sign for the release of unencumbered Mental Health Services Act (“MHSA) housing program funds to the County. On May 17, 2016, the Board received an update and presentation from HHSA regarding MHSA housing funds feedback and survey results. On January 23, 2017, the Board received an update regarding MHSA housing. On February 14, 2017, the Board approved Agreement # 17-006.
Summary of Request:
HHSA requests additional authority for Mendocino County’s Chief Executive Officer to carry out the purpose of Agreement #17-006. The Board previously gave the HHSA Director authority to amend the Agreement, so long as the amendments did not exceed the annual maximum amount. HHSA is now seeking specific authority for the Chief Executive Officer to execute multiple additional agreements and to take other actions necessary to carry out the purpose of Agreement No. 17-006.
The purpose of Agreement No. 17-006 was to provide seed money, in the amount of $1,336,000.00, which was obtained from the MHSA Housing Program from the State, to develop a rental housing project to serve County residents and clients of HHSA Behavioral Health and Recovery Services (BHRS) through December 2038. The County was to provide Rural Communities Housing Development Corporation (“RCHDC”) the contract funds and then work with RCHDC throughout the term of the project.
HHSA BHRS and RCHDC would now like the money to go, in the form of a loan, to an RCHDC affiliate with whom HHSA BHRS will work for the term of the project. To make this happen, additional agreements are needed including four Loan Documents (a loan agreement, a regulatory agreement, and a promissory note, secured by a deed of trust), as well as an agreement to assign Agreement No. 17-006 to the RCHDC affiliate entity, which is currently being created. The contract amount will remain at $1,336,000.00. RCHDC, its partners and affiliates, and HHSA BHRS are in the process of finalizing these agreements, and therefore they are not presently ready for review. Nonetheless, the finalization of these documents is on a critical timeline. If they are not finalized and executed by early March, it may become impossible to fund the project.
Furthermore, to effectively manage the County’s rights and responsibilities during the project, both before and after development of the property, additional authority for the Chief Executive Officer will provide smoother operations and timely handling without the need for continual Board approval.
Alternative Action/Motion:
Return to staff for alternative handling.
Supplemental Information Available Online at: N/A
Fiscal Impact:
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Source of Funding: Budget Unit 4051 (MHSA) |
Budgeted in Current F/Y: Yes |
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Current F/Y Cost: $1,336,000 |
Annual Recurring Cost: $0 |
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Supervisorial District: All |
Vote Requirement: Majority |
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Agreement/Resolution/Ordinance Approved by County Counsel: Yes
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CEO Liaison: Janelle Rau, Deputy CEO |
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CEO Review: Yes |
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CEO Comments:
FOR COB USE ONLY
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Executed By: Nadia Tipton |
Final Status: Adopted |
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Date: February 8, 2018 |
Executed Item No.: Resolution Number: 18-022 |
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Note to Department: |
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Executed Documents Returned to Department: Originals _____ Copies _____ Hand Delivered ___ Interoffice Mail ___ Executed Agreement Sent to Auditor? Y/N |
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