Background:
In 1973, the City of Los Altos, Town of Los Altos Hills, City of Mountain View, Los Altos School District, Mountain View School District, Whisman School District and Mountain View School District, Los Altos High School Districts observed the need to promote mental health and well-being within their community and the lack of available mental health resources and programs in their community. To address this need, the seven public agencies executed an agreement and formed a Joint Powers Authority now known as CHAC (“CHAC” or “JPA”) with nonprofit status whose mission is to provide accessible and culturally competent mental health services.
In recent years, the CHAC Board of Directors became concerned about the financial sustainability of the JPA due to a number of economic factors including, but not limited to, the cost of providing the services to the school districts, the historic rates charged for these services, changes in the law regarding interns, and the infrastructure required to access MediCal coverage. CHAC contracted with Venture Leadership Collective in 2023 to assess the current mental health environment and explore pathways to sustainability.
At its December 6, 2023 meeting, the CHAC Board approved pursuing a collaboration with Pacific Clinics. Pacific Clinics is a nonprofit behavioral and mental health care provider with a presence in the community and over 150 years of experience. CHAC and Pacific Clinics explored a net asset transfer. Following a due diligence period, CHAC and Pacific Clinics agreed upon the terms of the transfer and executed agreements to effectuate the transfer. As of July 1, 2024, CHAC transferred the building located at 590 West El Camino in Mountain View to Pacific Clinics. Except for supervision of an internship program until mid-August, CHAC has ceased providing services.
In light of the net asset transfer and impending dissolution, CHAC members have agreed to an Amended CHAC Joint Powers Agreement (“Amended Agreement”) specifically focusing on the wind up of CHAC’s affairs and outlining the process for eventual dissolution of the JPA, which is being presented to the District’s Board for approval via this resolution. Section 6500 et seq. of the California Government Code constitutes the enabling legislation for joint powers authorities authorizing the Board to enter into the Amended Agreement for the District. The Amended Agreement is made pursuant to this law to handle the process and procedure for dissolving CHAC.
Amended Agreement: The Amended Agreement sets forth the specific purpose and authority of the agency and incorporates provisions to address specific requirements in the Joint Exercise of Powers Act and proposes the following changes: First, it updates the agreement and specifies the purpose of the agency is to wind up its affairs. Second, it contains specific financial and reporting requirements, and they are partially outlined in Section 10 of the Agreement. Third, the composition of the Board of Directors is modified. Only the six public agencies who are the parties to the Amended Agreement will be represented on the Board. As with the current joint powers agreement, the governing body of each agency appoints its representative. There is no requirement the representative be a member of the governing body. Fourth, Amended Agreement does not allow the parties to withdraw from the JPA since the guidance of all the member agencies is needed to wind up CHAC’s affairs and dissolve CHAC. Each member agency is not required to make any financial contributions to support CHAC. Fifth, the number of required meetings has been modified to provide some flexibility to the Board so they can meet as they deem appropriate.
Since the purpose of CHAC is to make ready for dissolution, in the absence of its consent, no party to this Amended Agreement or members of the Board shall be bound to provide any sum of money, property, or service of any kind to CHAC.
In accordance with the Joint Exercise of Powers Act, the Amended Agreement provides that any surplus funds remaining at the time of dissolution, would be distributed according to the contributions made by the parties (Government Code Section 6512). Contributions would include those funds provided to the CHAC by the Member Agencies since 2012.
Written Consent to Dissolve CHAC: Once the obligations of the CHAC JPA have been satisfied, the Board will hold its last meeting and will send each member agency a notice requesting written consent to dissolve the JPA. This is anticipated to occur in the fall of 2026. Upon receipt of written consent from four of the six JPA members, the JPA will cease to exist. The resolution includes authorization for the Board to provide written consent to CHAC for termination of the JPA and dissolution of CHAC.
Appointment to CHAC Board of Directors: Pursuant to the Amended Agreement, each member can appoint an individual to CHAC’s Board of Directors according to its own procedures. The resolution authorizes the Board to appoint a representative to serve on CHAC’s Board of Directors.
Background materials attached.
Fiscal Implication:
None
Recommended Action:
It is recommend that the Board approve Resolution No. 03-110724 and the Amended Joint Powers Agreement of CHAC and Authorizing the Board to Execute the Amended CHAC Joint Powers Agreement and Provide Written Consent to CHAC.