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File #: 2026-0169   
Type: Consent Calendar Item Status: Agenda Ready
File created: 1/23/2026 In control: County Administrator
On agenda: 3/3/2026 Final action:
Title: Grant of State funds for Alexander Valley Healthcare Center Project
Department or Agency Name(s): County Administrator
Attachments: 1. Summary Report, 2. Attachment 1 - Budget Resolution, 3. Attachment 2 - Funding Agreement with Alexander Valley Healthcare

To: Board of Supervisors of Sonoma County

Department or Agency Name(s): County Executive’s Office

Staff Name and Phone Number: Katie Kavanaugh, 707-565-3779

Vote Requirement: 4/5th

Supervisorial District(s): 4th District

 

Title:

Title

Grant of State funds for Alexander Valley Healthcare Center Project

End

 

Recommended Action:

Recommended action

A) Authorize the County Executive, or designee, to accept $3,500,000 in pass-through funding allocated under the State of California 2025 Budget Act, for the Alexander Valley Healthcare Center project.

B)  Authorize the County Executive, or designee, to execute an agreement, in a form approved by County Counsel, to transfer funds to Alexander Valley Healthcare as required by said State grant.

C)  Adopt a Resolution amending the Fiscal Year 2025-26 budget by $3,500,000 in expenditures and revenues to facilitate the pass-through of funds.  

(4/5th vote required)

 

end

 

Executive Summary:

This item requests that the Board accept the $3,500,000 allocated under the State of California’s 2025 Budget Act, for Alexander Valley Healthcare to construct a re-designed Health and Wellness Center. The State of California allocated the funding to the County, to then be transferred to Alexander Valley Healthcare. Senator Mike McGuire advocated for this funding in the 2025 Budget Act.

 

This award will complement the $1,000,000 funding allocated by the Board of Supervisors in 2023 to support this project, funded through 4th District Community Infrastructure Funds. The cost for the new facility is expected to be approximately $40 million, funded through tax-exempt bonds, philanthropic support, and Federal and State funding.

 

Discussion:

The Alexander Valley Healthcare (AVH) is a Sonoma County-based non-profit, Federally Qualified Health Center that provides family medicine, dental, and behavioral health services to community members in and around Cloverdale. Construction of a new Alexander Valley Health and Wellness Center, <https://alexandervalleyhealthcare.org/wellness-center/> starting in 2025, will expand access to comprehensive, integrated services, all while keeping costs low and supporting the wellness of the community.

 

AVH’s current services include:

                     Comprehensive Primary Care for all ages

                     Behavioral and Mental Health Services

                     Substance Use Disorder Treatment

                     Financial Assistance for MediCal, Medicare, Affordable Care insurance, Prescription Services, and Supplemental Nutrition Application aid

 

With the facility expansion, AVH plans to offer several new services:

                     Urgent Care

                     Teen Clinic

                     Sonoma County Health and Human Services

                     Expanded Specialty Dental and Dental Hygiene Services

                     On-Site Pharmacy

                     Laboratory Services

                     Community Health Education multi-purpose room

 

The County is allocated the State funding only as a pass-through entity in the 2025 State Budget Act <https://legiscan.com/CA/text/SB105/id/3270023>. The funding will be transferred to AVH pursuant to a funding agreement, to ensure proper use of all said funds in accordance with the State Budget Act and other applicable laws.

 

Strategic Plan:

N/A

 

Racial Equity:

 

Was this item identified as an opportunity to apply the Racial Equity Toolkit?

No

 

 

Prior Board Actions:

10/24/2023 - The Board of Supervisors authorized a funding agreement with Alexander Valley Healthcare for $1,000,000 in support of the Alexander Valley Health and Wellness Center, funded through 4th District Community Infrastructure Funds.

 

Fiscal Summary

 Expenditures

FY25-26 Adopted

FY26-27 Projected

FY27-28 Projected

Budgeted Expenses

 

 

 

Additional Appropriation Requested

$3,500,000

 

 

Total Expenditures

$3,500,000

 

 

Funding Sources

 

 

 

General Fund/WA GF

 

 

 

State/Federal

$3,500,000

 

 

Fees/Other

 

 

 

Use of Fund Balance

 

 

 

General Fund Contingencies

 

 

 

Total Sources

$3,500,000

 

 

 

Narrative Explanation of Fiscal Impacts:

$3,500,000 in SB 105 funds will be deposited in the Designated Purposes Fund (10155) until authorized for distribution.

 

Narrative Explanation of Staffing Impacts (If Required):

N/A

 

Attachments:

Attachment 1: Budget Resolution

Attachment 2: Funding Agreement with Alexander Valley Healthcare

 

Related Items “On File” with the Clerk of the Board:

None.