Inter-Departmental Correspondence
Health System



September 23, 2009


October 20, 2009







Honorable Board of Supervisors



Jean S. Fraser, Chief, Health System


Louise Rogers, Director, Behavioral Health & Recovery Services



Agreement with 505 Cypress Avenue, LLC/Industrial Hotel



Adopt a Resolution:

1) Authorizing the President of the Board to execute an Agreement with 505 Cypress Avenue, LLC/Industrial Hotel to provide emergency/transitional housing services, for the term July 1, 2009 through June 30, 2012, for a maximum obligation of $182,700; and


2) Authorizing the Chief of the Health System or designee to execute contract amendments which modify the County's maximum fiscal obligation by no more than $25,000 (in aggregate), and/or modify the contract term and/or services so long as the modified term or services is/are within the current or revised fiscal provisions.



Since December 17, 1985, your Board has approved resolutions authorizing expenditures for residential care facilities serving mentally ill clients. Behavioral Health and Recovery Services (BHRS) has contracted with 505 Cypress Avenue, LLC/Industrial Hotel since March 2008 to provide specialized shelter beds for mentally ill San Mateo County residents. In addition, this facility provided housing for Full Service Partnership (FSP) enrollees through an Agreement with Telecare, our contract FSP provider for adults and older adults. Under the B-1 Administrative Memorandum, the selection of providers of housing services for mental health clients is exempt from the Request for Proposals process requirement.



Under this Agreement 505 Cypress Avenue, LLC/Industrial Hotel will provide housing for clients discharged from San Mateo County Medical Center 3AB and Psychiatric Emergency Services. Clients will also receive case management support services provided by BHRS staff or contracted staff.


The Agreement and Resolution have been reviewed and approved by County Counsel. The Agreement has been reviewed and approved by Risk Management. The contractor has assured compliance with the County's Contractor Employee Jury Service Ordinance, as well as all other contract provisions that are required by County ordinance and administrative memoranda, including but not limited to insurance, hold harmless, non-discrimination and equal benefits. This Agreement is late due to delays by the contractor in providing required insurance certificates.


The Agreement contributes to the Shared Vision 2025 outcome of a Healthy Community through the provision of emergency/transitional housing for seriously mentally ill individuals at risk of homelessness who are San Mateo County residents. BHRS provides a range of services to consumers of mental health services in order for them to remain at the lowest possible level of care. The provision of transitional housing services is one established level of care. The services provided through this Agreement contribute to this measure. It is anticipated that 74% of clients will be maintained at their current or lower level of care.


Performance Measure:


FY 2008-09

    FY 2009-10

Percentage of clients who will be maintained at a current or lower level of care.*



*These data are for all contractors providing transitional residential services.



The term of the Agreement is July 1, 2009 through June 30, 2012, and the maximum obligation is $182,700 for the three-year term. For FY 2009-10 the maximum obligation is $60,900. Of that amount, it is anticipated that $54,201 will be funded by sales tax through realignment, and $6,699 will be funded by Net County Cost. Funds for these services have been included in the BHRS FY 2009-10 Adopted Budget. Similar arrangements will be in place for FY 2010-11 and FY 2011-12. The anticipated Net County Cost for the three-year term is $20,097.