Memorandum
Date: November 10, 2026
To: The Honorable Lake County Board of Supervisors
From: Elise Jones, Director of Behavioral Health Services
Subject: Approve Agreement between the County of Lake and Vista Pacifica Enterprises, Inc. for Adult Residential Support Services and Specialty Mental Health Services for FY2026-2027, in an amount not to exceed $1,000,000.00, and authorize the Chair of the Board of Supervisors to sign.
Executive Summary: Lake County Behavioral Health Services (LCBHS) contracts with Vista Pacifica Enterprises, Inc. to provide specialized adult residential support and specialty mental health services for clients whose clinical and placement needs cannot be appropriately met through standard outpatient services. The Agreement includes facility-based placements and services for clients requiring a higher level of care.
Vista Pacifica provides Institution for Mental Disease (IMD) services through its licensed Skilled Nursing Facility/Special Treatment Program facilities, including psychiatric evaluation, medication management, nursing services, therapeutic programming, and other residential and rehabilitative supports. Services and placements must be authorized by the County based on each client's clinical and placement needs.
Utilization of these services varies based on the number of clients requiring this level of care and the duration and intensity of each placement. In Fiscal Year 2024-25, Vista Pacifica served seven Lake County clients, with total payments of $616,410. In Fiscal Year 2025-26, Vista Pacifica served ten Lake County clients, with total payments of $1,094,730.
The proposed FY 2026-27 Agreement has a maximum compensation of $1,000,000. Payment is based on the applicable facility and service rates established in Exhibit B and actual County-authorized services provided. The contract maximum establishes the expenditure limit but does not guarantee that the full amount will be expended.
Due to the specialized nature of the residential and mental health services provided, the Agreement is exempt from formal competitive solicitation pursuant to Lake County Purchasing Policy/Code Section 2-38.2(2) for specialized professional services.
Fiscal Impact
The proposed Agreement has a maximum financial obligation of $1,000,000 for Fiscal Year 2026-27. Expenditures under this Agreement were included in the Board-approved FY 2026-27 Final Budget appropriations for Lake County Behavioral Health Services, Mental Health Budget Unit 4014, Account 740.40-70.
The Agreement will be funded through Mental Health Realignment and available patient revenue. The proposed contract maximum is included within the existing expenditure appropriations approved by the Board during adoption of the Final Budget. Approval of this Agreement does not require an increase to the adopted budget or additional appropriation authority.
For services provided July through September 2026, Vista Pacifica has submitted invoices totaling $280,094, representing approximately 28% of the proposed annual contract maximum. The remaining contract capacity is $719,906. Actual expenditures will depend on County-authorized placements, applicable service rates, and client utilization.
LCBHS will continue monitoring expenditures against the contract maximum and available appropriations within Account 740.40-70, which also supports other contracted placement services. Any additional contract authority or budget adjustments determined necessary will be brought forward for approval through the appropriate process.
No additional appropriations or County General Fund contribution are requested.
If not budgeted, fill in the blanks below only:
Estimated Cost: ________ Amount Budgeted: ________ Additional Requested: ________ Future Annual Cost: ________
Purchasing Considerations (check all that apply): ☐ Not applicable
☐ Fully Article X. <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI>- and/or Consultant Selection Policy <http://lcnet.co.lake.ca.us/Assets/Intranet/Policy/Policies+$!26+Procedures+Manual/Ch4_2021v2.pdf>-Compliant (describe process undertaken in “Executive Summary”)
☒ Section 2-38 <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI> Exemption from Competitive Bidding (rationale in “Executive Summary,” attach documentation, as needed)
☐ For Technology Purchases: Vetted and Supported by the Technology Governance Committee <http://lcnet.co.lake.ca.us/Assets/Intranet/Intranet+Forms/Information+Technology/AdvPlan.pdf> (“Yes,” if checked)
☐ Other (Please describe in Executive Summary)
Consistency with Vision 2028 <http://www.lakecountyca.gov/Government/Directory/Administration/Visioning/Vision2028.htm> (check all that apply): ☐ Not applicable
☒ Well-being of Residents ☐ Public Safety ☐ Disaster Prevention, Preparedness, Recovery
☐ Economic Development ☐ Infrastructure ☐ County Workforce
☐ Community Collaboration ☐ Business Process Efficiency ☐ Clear Lake
Recommended Action: Approve Agreement between the County of Lake and Vista Pacifica Enterprises, Inc. for Adult Residential Support Services and Specialty Mental Health Services for FY2026-2027, in an amount not to exceed $1,000,000.00, and authorize the Chair of the Board of Supervisors to sign.