Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Colleen Chawla, Chief, San Mateo County Health
Jei Africa, Director, Behavioral Health and Recovery Services
Subject: Assignment and Assumption Agreement with Front Street, Inc. and Drake House Center, LLC for Residential Services
RECOMMENDATION:
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Adopt a resolution authorizing an Assignment and Assumption Agreement with Front Street, Inc. and Drake House Center, LLC for residential board and care services for the term starting on the effective date of the Drake House Center, LLC State license for the provision of residential services through June 30, 2028, in an amount not to exceed $1,727,510.
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BACKGROUND:
Behavioral Health and Recovery Services (BHRS) currently has an agreement with Front Street, Inc. for the provision of 10 dedicated beds for San Mateo County older adult residents with serious and persistent mental illness for the term of July 1, 2025 through June 30, 2028 in an amount not to exceed $1,757,510 (Agreement). BHRS has contracted with Front Street, Inc. for these 24-hour residential care services since 2008, and Front Street, Inc. was selected under the B-1 Administrative Memorandum waiver exception for Housing Services and Related Supports.
DISCUSSION:
On July 31, 2025, Front Street, Inc.’s parent company, Front Street Administrative Services, LLC (Front Street), informed BHRS that it had contracted with PacifiCare Health Management, LLC (PacifiCare) for the sale of Front Street’s mental health treatment facilities, including Front Street, Inc. PacifiCare was to assume the provision of services under the terms of the current Agreement. However, in order to do so, PacifiCare had to first obtain appropriate licensure from the California Department of Social Services (CDSS).
On October 28, 2025, BHRS executed an executive assignment letter with Front Street, Inc., agreeing that Front Street could assign to PacifiCare...
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