Date: November 17, 2026
To: The Honorable Lake County Board of Supervisors
From: Elise Jones, Director of Behavioral Health Services
Subject: Approve the Short-Term Transitional Residential Services Agreement Between the County of Lake and Davis Guest Home, Inc., for the period of July 1, 2026, through October 31, 2026, in an Amount Not to Exceed $116,850.00, and Authorize the Chair of the Board to Sign
Executive Summary:
The County of Lake is seeking retroactive approval of a Short-Term Transitional Residential Services Agreement with Davis Guest Home, Inc., for the period of July 1, 2026, through October 31, 2026, in an amount not to exceed $116,850. The agreement formalizes the County’s obligations for residential services provided to five existing LPS-conserved Lake County beneficiaries during a limited transition period.
The agreement was necessary to maintain continuity of residential care while Lake County Behavioral Health Services (LCBHS), in coordination with the Public Guardian, assessed each beneficiary’s placement needs and arranged transitions to alternative facilities offering appropriate care and supervision. The agreement did not authorize new admissions or replacement beneficiaries. All five beneficiaries have since been discharged from Davis Guest Home facilities, and the transitional services have concluded.
Compensation is limited to $190 per authorized beneficiary-day and is subject to the monthly ceilings established in Exhibit B. Covered services are limited to residential care and supervision as described in Exhibit A. Specialty Mental Health Services, psychiatric visits, psychotherapy, and professional medication-management services are excluded from the agreement.
The County has received invoices totaling $79,420 for services provided during July, August, and September 2026. The invoices remain subject to verification of authorized beneficiaries, eligible service days, and applicable contract rates. Payment will be processed following full execution of the agreement and completion of the required fiscal review.
The agreement will be charged to Mental Health Fund 145, Budget Unit 4014, Object 40.70, Welfare Care of Persons. The final adopted FY 2026-27 appropriation for Object 40.70 is $7,785,000. The services are County-funded using patient revenue and 1991 and 2011 Realignment funding and are not Medi-Cal reimbursable. No budget adjustment is requested as part of this item.
LCBHS is separately monitoring aggregate expenditures, encumbrances, unpaid invoices, and projected year-end obligations within Object 40.70. Based on that broader review, future budget modification may be necessary and, if required, will be presented through the appropriate County budget process. Approval of this agreement does not require an additional County General Fund contribution, local match, or Intergovernmental Transfer.
The agreement expires automatically on October 31, 2026, and does not authorize continued placements or services beyond that date.
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Estimated Cost: ________ Amount Budgeted: ________ Additional Requested: ________ Future Annual Cost: ________
Purchasing Considerations (check all that apply): ☐ Not applicable