Item 241/2026
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Ursula Luna-Reynosa
Dept:
City Manager Dept: Economic Development and
Housing
Date: 8/25/2026
Subject: Approval of an Agreement with Healthcare in Action (HIA) to operate the City's Mobile Crisis Response Team. (Cost: $1,000,000)(Action Item)
OBJECTIVE
For the City Council to approve a Professional Services Agreement with Healthcare in Action (HIA) to assume operation of the City's Mobile Crisis Response Team.
BACKGROUND
On May 25, 2021, the City Council approved an 18-month pilot agreement with Be Well OC to operate the City's Mobile Crisis Response Team. The pilot program was developed in coordination with the Garden Grove Police Department (GGPD), Orange County Fire Authority, and the Economic Development and Housing Department to provide behavioral health crisis intervention, de-escalation, homeless outreach, welfare checks, and linkage to community-based services.
Following successful implementation of the pilot program, the City Council approved a new Professional Services Agreement with Be Well OC on July 25, 2023, establ ishing the Mobile Crisis Response Team as an ongoing City program. The program has become an integral component of the City's continuum of care by providing specialized behavioral health crisis intervention, homeless outreach, case management, and connecti ons to community resources. Between October 2021 and June 2026, Be Well OC completed more than 23,100 services, including 10,769 welfare checks, 5,991 mental health responses, 5,358 homelessness-related services, and 796 substance use interventions. During that period, the team also provided 2,356 referrals to community resources, demonstrating its role in connecting residents with ongoing support beyond the initial crisis response.
In addition to these community-based services, the Mobile Crisis Response Team responded to police-dispatched calls for service. The team has dedicated more than 9,192 hours responding to dispatched calls and 12,135 total service hours across all program activities since program inception, including case management services. Based on Police Department estimates, the calls handled directly by Be Well OC during this period represent an estimated Item 241/2026
$1.2 million in police labor savings alone. The Mobile Crisis Response Team has generated emergency service cost savings by diverting appropriate behavioral health-related calls from traditional public safety responses, allowing police officers, firefighters, and emergency medical personnel to remain available for higher-priority emergencies.
In May 2026, Be Well OC formally notified the City of its intent to terminate the Professional Services Agreement for the Mobile Crisis Response Program (Attachment No. 1) , citing internal financial constraints and long -term operational sustainability considerations that made it no longer feasible to co ntinue operating the Mobile Crisis Response Team under its existing service model. Be Well OC indicated that its decision was based on the determination that the current service model was not financially viable at the existing contract rates, and emphasized that the decision was not related to the City of Garden Grove, the quality of the program, or the City’s partnership with the organization.
Be Well OC also committed to working collaboratively with the City to ensure an orderly transition of services. To ensure continuity of mobile crisis response services while a new provider was being selected, the City entered into a temporary month -to-month agreement with Be Well OC, effective July 1, 2026, in place of the existing annual contract. Under the temporary agreement, Be Well OC will provide a reduced level of service consisting of 10 hours per day, 7 days per week, at a cost of $539,323 for the five -month term from July 2026 through November 2026. The Fiscal Year (FY) 2025-26 agreement consisted of 18 hours per day, 7 days per week, at an annual cost of $1,126,400.
DISCUSSION
The City has worked proactively over the past several months to identify a replacement provider that can continue delivering high -quality mobile crisis response services following Be Well OC's decision to discontinue operations in Garden Grove. Staff learned that Healthcare in Action (HIA) provides mobile crisis response in Los Angeles County. HIA currently provides mobile behavioral health and street medicine services through the CalOptima Street Medicine Program. The partnership with CalOptima has provided valuable resources to the unhoused population in Garden Grove and HIA has been an integral component of the success of the Street Medicine Program. Based on this experience, and difficulty identifying other qualified providers, staff solicited a proposal from HIA to provide mobile crisis response services. HIA's proposed model is designed to respond alongside the GGPD to eligible behavioral health crises, allowing police officer s to transfer responsibility to licensed behavioral health professionals once a scene has been stabilized, thereby improving service delivery while returning officers to higher profile emergency response duties. It is important to note that the mobile crisis response team is completely separate from the street medicine team. This distinction was important to CalOptima to ensure a clear separation of services.
Following City Council approval, staff will implement a three -month transition period from September 1 through November 30, 2026, during which Be Well OC and HIA will operate simultaneously. This overlap is intended to ensure continuity of services while allowing HIA personnel to receive comprehensive operational training before assuming full responsib ility for the program. City staff is coordinating with Be Well OC and GGPD to develop a structured training curriculum that includes classroom instruction, dispatch procedures, ride-alongs, field observations, documentation requirements, and operational protocols. Be Well OC staff and Item 241/2026
GGPD personnel will work directly with HIA employees throughout the transition period to ensure they are fully trained and prepared prior to the full program launch. HIA anticipates approximately a 90-day implementation period that includes staff recruitment, vehicle and equipment readiness, dispatch integration, GGPD -led training, supervised field operations, and a full operational launch upon completion of the transition period.
The proposed agreement includes one -time star tup costs of $291,268 to establish HIA's operations in Garden Grove. These costs include personnel recruitment and onboarding, acquisition and outfitting of a response vehicle, reporting and documentation systems, software, office equipment, communications equipment, and other operational startup expenses necessary to begin service delivery. Additionally, the City will continue providing workspace and vehicle parking at the Purcell Building, maintaining the same operational arrangement currently utilized by Be Well OC.
While HIA will continue the core mission of the original mobile crisis response program , several operational changes are proposed as part of the transition. The daily service schedule will be adjusted from the current 10-hour operating model to an 8-hour-per-day, 7-days-per- week schedule, with final operating hours determined jointly by the City and GGPD based on historical peak call volume. The HIA response team will consist of two (2) Associate Clinical Social Workers (ACSW) and two (2) Emergency Medical Technicians (EMT), supported by a Licensed Clinical Social Worker (LCSW) Supervisor, physician oversight, clinical operations management, and dedicated data analytics support, totaling 5.62 full -time equivalent positions. The program will continue operating as a co -response model with GGPD and will strengthen coordination with the Orange County Health Care Agency, the County's Crisis Assessment Team (CAT), Federally Qualified Health Centers, and CalOptima's existing Street Medicine Program to improve care coordination and long -term service connections.
Transportation of individuals will be coordinated through emergency medical services, medical transportation providers when appropriate, or GGPD when necessary, as HIA personnel will not transport clients in program vehicles.
The proposed annual contract cost for HIA is $1,201,482, representing an increase of approximately $50,000 over the City's current contract amount with Be Well OC of $1,151,163. It is anticipated that approximately $560,677 of the FY 2026-27 funding originally budgeted for the Be Well contract will remain unspent following the transition of services to HIA on December 1, 2026. The estimated cost of HIA services from December 1, 2026 through June 30, 2027 is $700,864, resulting in an additional operating cost of $140,187 for the current fiscal year. Combined with the one-time startup costs of $291,268, the total additional funding required to transition the Mobile Crisis Response service to HIA is $431,455.
Staff believes this additional investment is warranted to maintain uninterrupted behavioral health crisis response services and preserve the significant public safety benefits the program has demonstrated since its inception. Staff further believes it is in the City's best interest to waive the competitive bidding process to avoid any disruption in service during the transition and to ensure continuity of care for residents experiencing behavioral health crises.
Given the significance of transitioning to a new service provider, staff recommends utilizing the remainder of FY 2026-27 as a pilot implementation period with HIA. During this period, Item 241/2026
City staff and GGPD will closely monitor program performan ce, operational effectiveness, response times, service outcomes, reporting capabilities, and coordination with public safety personnel. Staff will issue a Request for Pro posals in April 2027 for long-term mobile crisis response services and will return to City Council in June 2027 with a recommendation to award a long-term contract.
FINANCIAL IMPACT
The annual cost of the HIA contract is $1,201,481, plus a one-time startup cost of $291,268.
The prorated cost for the seven -month period from December 1, 2026 and June 30, 2027, including the startup costs, is $992,132. Combined with the temporary month -to-month agreement with Be Well OC totaling $539,323 for the period from July 1, 2026 through November 30, 2026, the total estimated cost for the City’s Mobile Crist Response Program for FY 2026-27 is $1,531,455.
A total of $1,100,000 in General Funds has been included in the adopted budget for the Mobile Crisis Res ponse Pro gram. Accordingly, an additional appropriation o f approximately $450,000 is required for the current fiscal year. The additional appropriation will be funded with National Opioid Settlement funds received by the City since November 2022.
RECOMMENDATION
It is recommended that City Council:
Approve to dispense of the bidding process per Municipal Code 2.50.060 (G), in the best interest of the City;
Approve a Professional Services Agreement with Healthcare in Action (HIA) for an amount not to exceed $1.0 million;
Approve an additional appropriation of $450,000; and
Authorize the City Manager , or designee, to sign the Agreement, and make minor modifications as appropriate on behalf of the City Council.
By: Timothy Throne, Project Planner
ATTACHMENT(S)
1. Notice of Contract Termination
2. Professional Services Agreement
3. Healthcare in Action Proposal