Memorandum
Date: June 9, 2026
To: The Honorable Lake County Board of Supervisors
From: Rachael Dillman Parsons, Social Services Director
Subject: a) Waive the Formal Bidding Process Pursuant to County Ordinance 3137 Section 28.2 due to 38.2 (2) Not in the Public Interest; and, b) Approve Contract between County of Lake and North Coast Opportunities, Inc. for Stage One Child Care Services, in the amount of $1,500,000.00 per fiscal year from May 1, 2026 to June 30, 2027, and authorize the Chair to sign.
Executive Summary:
North Coast Opportunities, Inc. (NCO), in addition to being the local Resource and Referral (R&R) agency for Lake County, is also the official Alternative Payment Program (APP) provider. As Lake County’s APP, NCO manages the vast majority of Child Care programs available to residents, including Stage One. Because NCO is contracted through the California Department of Social Services as the APP, they are a sole source provider for the services covered by this Contract. Under Lake County Ordinance 3137, Section 38.2 (2), Stage One Child Care Services are exempt from the competitive bidding process due to the unique nature of services provided.
NCO provides Stage One Child Care services to eligible clients of Social Services and receives a portion of the funding for program operational costs. Stage One begins when a family starts receiving CalWORKs cash aid. CalWORKs clients may be served in Stage One until the county determines that the family situation is stable, or if no funds are available in Stage Two.
This program provides low or no cost childcare for eligible CalWORKs participants, alleviating a large burden for many families. Stage One Child Care also provides facility referrals to participants, assisting them in finding quality, available childcare. The funding provided by this Contract covers the administration costs of running the Stage One program, and actual Child Care costs are around $1,050,000 yearly, paid by DSS.
If not budgeted, fill in the blanks below only:
Estimated Cost: $ 1,500,000.00 Amount Budgeted: $1,500,000.00 Additional Requested: _____ Future Annual Cost: ______
Purchasing Considerations (check all that apply): ☐ Not applicable
☐ Fully Article X. <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI>- and/or Consultant Selection Policy <http://lcnet.co.lake.ca.us/Assets/Intranet/Policy/Policies+$!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)
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☐ 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: a) Waive the Formal Bidding Process Pursuant to County Ordinance 3137 Section 28.2 due to 38.2 (2) Not in the Public Interest; and, b) Approve Contract between County of Lake and North Coast Opportunities, Inc. for Stage One Child Care Services, in the amount of $1,100,000.00 per fiscal year from May 1, 2025 to June 30, 2026, and authorize the Chair to sign.