RESOLUTION NO. ___________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LANCASTER AUTHORIZING THE CITY MANAGER TO
NEGOTIATE, FINALIZE, AND EXECUTE CERTAIN DOCUMENTS
RELATING TO THE CALIFORNIA DEPARTMENT OF HEALTH
CARE SERVICES BOND BHCIP ROUND 1 LAUNCH READY
PROGRAM FUNDING, INCLUDING, BUT NOT LIMITED TO: (1)
GROUND LEASE AGREEMENT WITH UNIVERSAL HEALTH
SERVICES, INC.; AND (2) PROGRAM FUNDING AGREEMENT
WITH ADVOCATES FOR HUMAN POTENTIAL, INC. AND
DETERMINING SUCH ACTIONS TO BE EXEMPT FROM THE
REQUIREMENTS OF THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT
WHEREAS, the State of California (the “State”), through the Department of Health Care Services (“DHCS”), has entered into an agreement with Associates for Human Potential, Inc. (“AHP”), a private consulting and research firm focused on improving health and human services systems, to assist with management of Behavioral Health Infrastructure Bond Act of 2024 funds (“Bond BHCIP Funds”) and to administer the Behavioral Health Continuum Infrastructure Program (“BHCIP” or “Program”), as amended; and WHEREAS, pursuant to the requirements of BHCIP and DHCS guidelines, qualified grantees or entities shall use an award of Bond BHCIP Funds to expand the community capacity for serving persons with behavioral health disorders by the acquisition, construction, renovation or other physical improvement of real property, infrastructure, or facilities; and WHEREAS, DHCS oversees BHCIP to award Bond BHCIP Funds to qualified entities to construct, acquire, and rehabilitate real estate assets to address significant crisis care gaps in the State’s behavioral health (mental health and substance use disorder) infrastructure; and WHEREAS, in response to that certain Request for Applications for Bond BHCIP Round 1: Launch Ready issued by DHCS on or about July 17, 2024 (the “RFA”), for the award of Bond BHCIP Funds, the City (as lead applicant) and Universal Health Services, Inc. (“UHS”) (as co- applicant) submitted an application (“Application”) for funding to generally construct a facility to serve persons with behavioral health disorders; and
WHEREAS, the City has been selected for an award of $83,740,546 of Bond BHCIP Funds (“Program Funds”) to generally develop a 96-bed behavioral health hospital (“Project”), subject to the terms and conditions of a Program Funding Agreement (“Program Funding Agreement”) to be entered into by and between the City and AHP; and WHEREAS, the Project will be constructed and operated by UHS on certain City-owned real property pursuant to the terms and conditions of a Ground Lease (“Ground Lease”) to be entered into by and between the City and UHS, the Program Funding Agreement, and such other agreement(s) into which the City and UHS may enter; and WHEREAS, subject to the provisions of this Resolution, the City Council desires to authorize the City Manager to negotiate, finalize, and execute the Program Funding Agreement, Ground Lease and all other documents necessary to fulfill the BHCIP program requirements.
THEREFORE, THE CITY COUNCIL OF THE CITY OF LANCASTER DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. The foregoing recitals are true, correct, and constitute a substantive part of this Resolution.
Section 2. The City Council hereby finds and determines that the approval of the Ground Lease, Program Funding Agreement and an such other agreement(s) into which the City and UHS may enter as set forth below is exempt from the provisions of the California Environmental Quality Act pursuant to section 5960.3(b) of the California Welfare and Institutions Code.
Pursuant to section 5960.3(c) of the California Welfare and Institutions Code, the City Manager, or his designee, is authorized and directed to file a notice of exemption with the Office of Planning and Research and the Los Angeles County Clerk in the manner specified in subdivisions (b) and (c) of section 21152 of the California Public Resources Code.
Section 3. The City Manager, or his designee, is hereby authorized and directed to negotiate, finalize, execute, and deliver on behalf of the City all documents necessary to fulfill the Program requirements, including, but not limited to the following:
a. the Program Funding Agreement;
b. any and all exhibits and/or attachments to the Program Funding Agreement, including the following:
i. certification regarding lobbying;
ii. the sponsor public works certification;
iii. budget prevailing wage compliance;
iv. related party & related party transaction disclosure; v. match funds, property equity, or in-kind match;
vi. declaration of restrictions;
vii. legal review of California Welfare and Institutions Code §5960.31;
viii. planning agency review;
ix. due diligence completed;
x. design development drawings 100% complete;
xi. construction drawings for first submittal to building department;
xii. construction contract with construction contract
addendum;
xiii. prevailing wage compliance;
xiv. utility service commitments, building permit receipt and notice of exemption filed;
xv. required insurance and notice to proceed;
xvi. project construction is 50% complete;
xvii. receipt of certificate of occupancy;
xviii. notice of completion and receipt of
conditional/unconditional final releases of liens;
xix. receipt of business license and operational;
xx. project close-out, retention funds, excess funds, and continued compliance;
xxi. regulatory agreement and declaration of restrictions; xxii. construction contract addendum; and
xxiii. facility access agreement.
b. the Ground Lease; and
c. all other documents required or deemed necessary or appropriate to secure the award and disbursement of Program Funds and to participate in the Program, including, without limitation, a performance deed of trust and/or memorandum of Ground Lease.
Section 5. The City Council acknowledges and agrees that the City shall be subject to the terms and conditions specified in the Program Funding Agreement. Any and all activities, expenditures, information, and timelines represented in the Application are enforceable through the Program Funding Agreement. Program Funds are to be used for the allowable expenditures and activities identified in the Program Funding Agreement.
Section 6. The City Council further acknowledges and agrees that the City and/or UHS shall be and hereby is/are authorized to encumber the real property described in the Ground Lease by entering into and recording against such real property a declaration of restrictions, performance deed of trust, facility access agreement, memorandum of the Ground Lease, and/or such other document(s) required by DHCS as a condition to the City receiving the award and disbursement of Program Funds for the Project.
Section 7. The City Clerk shall certify to the passage and adoption of this Resolution.
PASSED, APPROVED and ADOPTED this ______ day of ____________, 2025, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST: APPROVED:
______________________________ ______________________________ ANDREA ALEXANDER R. REX PARRIS
City Clerk Mayor
City of Lancaster City of Lancaster
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF LANCASTER )
CERTIFICATION OF RESOLUTION
CITY COUNCIL
I, _____________________________, _________________________ City of Lancaster, California, do hereby certify that this is a true and correct copy of the original Resolution No.___, for which the original is on file in my office.
WITNESS MY HAND AND THE SEAL OF THE CITY OF LANCASTER, on this ____________ day of _____________________, _________.
(seal)
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