To: County of Sonoma Board of Supervisors
Department or Agency Name(s): Department of Health Services
Staff Name and Phone Number: Tina Rivera, 707-565-4774
Vote Requirement: 4/5th
Supervisorial District(s): Countywide
Title:
Title
Alexander Valley Healthcare Funding Agreement utilizing 4th District Community Infrastructure Fund
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Recommended Action:
Recommended action
A) Authorize the Director of Health Services, or designee, to execute a funding agreement with Coppertower Family Medical Center Inc., dba Alexander Valley Healthcare, for the County to provide funding toward capital costs and services expansion in an amount not-to-exceed $1,000,000 through June 30, 2024.
B) Adopt a resolution authorizing budgetary adjustments to the fiscal year 2023-2024 adopted budget increasing appropriations in the amount of $1,000,000 to reflect revenue and expenditures associated with capital costs and services expansion of Coppertower Family Medical Center Inc dba Alexander Valley Healthcare. (4/5th Vote Required)
(4/5th Vote Required)
end
Executive Summary:
The Sonoma County Department of Health Services (hereinafter, “DHS” or “the Department”) is proposing to program $1,000,000 from 4th District Community Infrastructure Funds FY 2023/24 set aside, as contribution to the construction of a health facility in Cloverdale run by Alexander Valley Healthcare. Alexander Valley Healthcare has been caring for the health of northern Sonoma County since 1994 and has been preparing to construct a new Health and Wellness facility since 2013. They recently closed escrow on the purchase of 2.8 acres of land in downtown Cloverdale. Their plan is to construct a 40,000 square foot building with room to house and expand existing medical, dental, and behavioral health services, and to provide additional space for County and Community partnerships. For a full project description and video, please visit <https://alexandervalleyhealthcare.org/wellness-center/>
The Alexander Valley Healthcare is actively raising funds through federal, state, and local grants, as well actively seeking support from corporate and individual partners.
Discussion:
Alexander Valley Healthcare (AVH) was designated as a Federally Qualified Health Center (FQHC) in 2013, which provided funding that allowed the expansion of their medical and dental services. Designation as an FQHC also provides the opportunity to add mental health and substance abuse care to better serve the rural community of northern Sonoma County. Their mission is to provide patient-centered healthcare with excellence in quality, service, and access for all people regardless of their ability to pay. Currently, AVH is seeing approximately 5,700 patients each year of whom 50% identify as a minority, almost 40% are Medi-Cal recipients, 16% Medicare, and 17% uninsured. As the only medical and mental health provider between Healdsburg and Ukiah, and the only dental provider seeing Medi-Cal and uninsured patients, the need is great and growing, and their current small, leased facilities have reached the limit of their capacity.
Since 2013, AVH has been preparing to construct a new Health and Wellness facility. In October 2022, they closed escrow on the purchase of 2.8 acres of land in downtown Cloverdale. Their plan is to construct a 40,000 square foot building with room to house and expand existing Medical, Dental, and Behavioral Health services. They also intend to provide additional space for County and Community partnerships.
The overall cost for the new facility will be approximately $40 million. The primary source of funding for the facility will be through Cal Mortgage insured tax-exempt bonds, and the remainder will be through a Capital Campaign, which is estimated to garner $5 million in philanthropic support. Federal and State granted funds will round out the purchase. The bond issuance requires a 5% equity investment by AVH. The County’s $1 million contribution will aid towards completing the $2 million bond issuance equity investment. Separately, AVC has already spent $2.5 million of their reserve on purchasing land, as well as planning and preparing for the building project.
Discussions have already taken place with leadership from the Department of Health Services and the Human Services Department regarding partnership and the establishment of satellite offices in the new facility to bring essential services to northern Sonoma County. AVH’s goal is to build a state-of-the-art facility that will become a community resilience center and provide essential and necessary health and wellbeing as well as economic stimulation to the region.
Strategic Plan:
N/A
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
None
Fiscal Summary
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Expenditures |
FY 23-24 Adopted |
FY 24-25 Projected |
FY 25-26 Projected |
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Budgeted Expenses |
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Additional Appropriation Requested |
$1,000,000 |
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Total Expenditures |
$1,000,000 |
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Funding Sources |
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General Fund/WA GF |
$1,000,000 |
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State/Federal |
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Fees/Other |
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Use of Fund Balance |
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Contingencies |
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Total Sources |
$1,000,000 |
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Narrative Explanation of Fiscal Impacts:
During the 2023-24 budget hearings, the Board of Supervisors approved the Community Infrastructure Project Fund with $2 million per Supervisorial district to be used for infrastructure improvements. The fourth district is proposing to use $1,000,000 funding for Alexander Valley Healthcare for Capital Costs and services expansion. DHS is requesting appropriations to process the transaction.
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Staffing Impacts: |
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Position Title (Payroll Classification) |
Monthly Salary Range (A-I Step) |
Additions (Number) |
Deletions (Number) |
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Narrative Explanation of Staffing Impacts (If Required):
N/A
Attachments:
Attachment 1 - Agreement with Alexander Valley Healthcare
Attachment 2 - Budget Resolution
Related Items “On File” with the Clerk of the Board:
None