Memorandum
Date: June 23, 2026
To: The Honorable Lake County Board of Supervisors
From: Elise Jones, Director of Behavioral Health Services
Subject: Approve Amendment No. 1 to the Agreement Between the County of Lake and Davis Guest Home, Inc. for Adult Residential Support Services and Specialty Mental Health Services for Fiscal Year 2025-2026 for an Amount not-to-exceed $ 375,000.00 and Authorize the Chair of the Board to Sign
Executive Summary:
The County of Lake entered into an agreement with Davis Guest Home, Inc., effective July 1, 2025, for Adult Residential Support Services and Specialty Mental Health Services for Fiscal Year 2025-2026, with an original contract maximum of $300,000.00. Amendment No. 1 increases the total compensation payable under the agreement by $75,000.00, resulting in a revised contract maximum of $375,000.00, and amends Section 3 (Compensation) to reflect this change.
Since implementation of the agreement, utilization of services has exceeded initial projections, reflecting an increased demand for Residential and Specialty Mental Health Services within Lake County. Davis Guest Home currently serves four (4) active Lake County clients and has served seven (7) clients during Fiscal Year 2025-2026 to date, with an average utilization of 143.5 bed days per month. Currently invoiced expenditures total approximately $251,125.00.
Fiscal expenditures for comparable services have steadily increased over the past three fiscal years:
• FY 2023-2024: $191,104.46
• FY 2024-2025: $337,095.00
• FY 2025-2026: $251,125.00 invoiced to date
Historical utilization and placement activity further demonstrate the continued need for these services. Over the past three fiscal years, Davis Guest Home has served a total of eleven (11) unique Lake County clients, including several individuals requiring long-term placement due to persistent mental health symptoms, co-occurring substance use disorders, intellectual disabilities, limited insight, resistance to transition, hoarding behaviors, and difficulty maintaining stability in lower levels of care. Five (5) individuals have remained in placement for longer than twelve months as a result of the complexity of their treatment and housing needs.
Behavioral Health staff continue to review ongoing placement appropriateness, medical necessity and treatment needs, discharge readiness, and opportunities to transition clients to lower levels of care when clinically appropriate and feasible.
The Contractor will continue to provide services in accordance with Exhibit A (Scope of Services), and payment will continue to be made in accordance with Exhibit B (Fiscal Provisions), contingent upon the Contractor not being in default under the agreement.
The agreement remains subject to any restrictions, limitations, or conditions imposed by County, state, or federal funding sources and is contingent upon the availability of sufficient funding. Funding for these services is provided through Behavioral Health program revenues and Realignment funding sources. No portion of this contract is Medi-Cal reimbursable, and there is no additional County General Fund contribution, local match requirement, or Intergovernmental Transfer (IGT) exposure associated with this agreement.
Except as specifically amended, all other terms and conditions of the original agreement remain unchanged and in full force and effect. This amendment ensures continuity of critical Specialty Mental Health Services, supports increased service demand, and allows the County to maintain continuity of care for behavioral health clients requiring structured residential placement services.
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Recommended Action: Approve Amendment No. 1 to the Agreement Between the County of Lake and Davis Guest Home, Inc. for Adult Residential Support Services and Specialty Mental Health Services for Fiscal Year 2025-2026 for an Amount not-to-exceed $375,000.00 and Authorize the Chair of the Board to Sign