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Approve a contract with Crestwood Behavioral Health, Inc. for $4,684,582 to provide adult residential facility services for the period of December 1, 2025 through June 30, 2027; Delegate authority to the County Administrator to execute the contract and any subsequent amendments, with County Counsel concurrence, up to a total aggregate of $74,999; and Approve an Appropriations Transfer Request for $1,037,056 to increase appropriations and revenue in the Department’s FY2025/26 Working Budget (4/5 vote required)
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Published Notice Required? Yes ___ No _ X_
Public Hearing Required? Yes ___ No _ X_
DEPARTMENTAL RECOMMENDATION:
The Department of Health & Social Services (H&SS) recommends the Board of Supervisors:
1. Approve a contract with Crestwood Behavioral Health, Inc. for $4,684,582 to provide adult residential facility services for the period of December 1, 2025 through June 30, 2027;
2. Delegate authority to the County Administrator to execute the contract and any subsequent amendments, with County Counsel concurrence, up to a total aggregate of $74,999; and
3. Approve an Appropriations Transfer Request for $1,037,056 to increase appropriations and revenue in the Department’s FY2025/26 Working Budget (4/5 vote required).
SUMMARY:
On September 22, 2025, Health & Social Services (H&SS), Behavioral Health division received notice from Yolo Community Care Continuum (Y3C) of its intent to terminate its contract to operate the County-owned licensed adult residential facility (ARF) on the Beck Avenue campus, which provides housing and care services for up to 32 individuals. The contract termination takes effect on December 31, 2025.
H&SS requests the Board’s approval of a contract with Crestwood Behavioral Health, Inc. (CBH) to continue operations of the ARF. Upon contract execution, CBH will initiate operational readiness activities and prepare for the transition to minimize disruption of essential behavioral health services provided to justice-involved and unhoused individuals with complex mental health and co-occurring substance use needs at the facility.
FINANCIAL IMPACT:
Funding for this agreement is provided by 1991 Realignment, 2011 Realignment, and Medi-Cal revenues. Remaining funds originally designated for Y3C’s contract are currently included in the Department’s FY2025/26 Working Budget and will be used to support the CHB contract. In addition, an Appropriations Transfer Request (ATR) for $1,037,056 is needed to increase appropriations and revenue in the Department’s FY2025/26 Working Budget to fund this agreement. There is no impact on the County General Fund.
DISCUSSION:
On September 13, 2022, the Board approved the initial contract with Y3C. Under the agreement, and through the most recent renewal approved on August 26, 2025, Y3C provided critical services to individuals with co-occurring behavioral health and substance use disorder diagnoses, including schizophrenia, major depressive disorder, and bipolar disorder, many of whom present with high clinical needs and are involved in the justice system. The program prioritized individuals who are unhoused or incarcerated for low-level offenses.
On September 22, 2025, and in accordance with Exhibit C, Section 4 of their contract, H&SS, Behavioral Health received written notice from Y3C terminating their contract effective December 31, 2025. The termination of the contract necessitates an urgent response to limit the disruption, displacement, and increased risk of adverse outcomes, including hospitalization and incarceration, of the vulnerable individuals housed at the facility.
As such, H&SS, Behavioral Health began immediate steps to locate and engage a new operator to provide the County-owned mental health ARF services situated in the Beck Campus on South Watney Avenue, Fairfield. In accordance with emergency procurement procedures, Behavioral Health reached out to CBH who applied to the original request for proposal (RFP), but did not receive the award, as well as two additional vendors who serve the population and have experience running residential facilities.
H&SS, Behavioral Health requests the Board’s approval to establish an agreement with CBH to assume the services currently provided by Y3C. The new contract will be effective December 1, 2025 with the first three months of the contract allowing for an onboarding and transition period. Beginning the fourth month, the contractor will be considered service-ready and able to commence the full performance of deliverables defined in the contract. This approach is designed to facilitate the transition from one operator to another and ensure continued compliance by minimizing disruptions to mandated services. At the same time, CBH will secure the necessary licenses, Medi-Cal recertification, and operational infrastructure. During the transition period, no new intakes will be accepted. Current clients with a high level of medical complexity requiring licensed care are being moved to interim, alternative facilities. Clients with lower medical complexity or with social supports may continue to be housed at the site on a case by case basis and pending onboarding of adequate staffing by CHB. No current clients will be without housing during the transition.
The facility supports placement opportunities of the Misdemeanor Incompetent to Stand Trial (MIST) restoration program by serving 16 justice-involved individuals. The remaining 16 beds are designated for individuals experiencing or at risk of homelessness. The goal of the program is to offer a supportive living environment with a therapeutic milieu and structured daily programming. These services are designed to help participants better understand their behavioral health needs, develop and implement personalized recovery plans, and receive consistent support aimed at fostering community integration and independence within a 12- to 24-month timeframe.
ALTERNATIVES:
The Board may choose not to approve this contract; however, this is not recommended as the County risks failing to meet its mandated service obligations for an extended period of time until a replacement provider is under contract. The facility cannot operate beyond December 31, 2025, without a credentialed and licensed provider.
OTHER AGENCY INVOLVEMENT:
None
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION