Memorandum
Date: October 21, 2025
To: The Honorable Lake County Board of Supervisors
From: Elise Jones, Director of Behavioral Health Services
Subject: Consideration of Agreement Between the County of Lake and Vista Pacifica Enterprises, Inc., for Adult Residential Support Services and Specialty Mental Health Services in the Amount of $750,000 for Fiscal Year 2025-2026.
Executive Summary:
Lake County Behavioral Health Services requests approval of an agreement with Vista Pacifica Enterprises, Inc. for Fiscal Year 2025-26 in an amount not to exceed $750,000 to provide adult residential support and specialty mental health services at licensed Institutions for Mental Disease (IMDs) and skilled nursing facilities.
Under California Welfare and Institutions Code (W&I) §§ 5600 et seq. and Title 9 of the California Code of Regulations (CCR), County Mental Health Plans are responsible for ensuring access to medically necessary Specialty Mental Health Services (SMHS) for Medi-Cal beneficiaries and uninsured adults who require sub-acute or long-term psychiatric residential care. Vista Pacifica operates DHCS-certified facilities under Title 22 and Title 9, providing secure 24-hour care, psychiatric nursing, medication management, and rehabilitative programming consistent with state and federal requirements.
This contract ensures compliance with all applicable federal and state regulations governing Medi-Cal-funded services, including:
• Title 9, CCR §§ 1810.380-1810.435 (provider selection, monitoring, and compliance)
• 42 CFR § 438.230 (federal subcontractor audit and oversight requirements)
• HIPAA (1996), HITECH Act (2009), and the HIPAA Omnibus Final Rule (data security and confidentiality)
• W&I § 5325 (patients’ rights) and Title 42 CFR § 438.100 (beneficiary rights)
• Cultural and Linguistic Competence Standards (CLAS) under DHCS requirements
During the prior fiscal year, the County expended $668,010.00, serving five unduplicated Lake County clients with no significant performance or audit issues identified. The proposed contract amount reflects modest rate adjustments aligned with the FY 2025-26 adopted budget and DHCS rate guidance for long-term care (AB 1629 reimbursement methodology). Utilization is projected to remain stable based on client needs and conservatorship placements.
Pursuant to Section 2-38 of the County Purchasing Ordinance, competitive bidding does not apply to this agreement due to the specialized and regulated nature of IMD and psychiatric skilled nursing services. Vista Pacifica has completed the required Request for Qualifications (RFQ) and Risk Assessment processes as part of the County’s ongoing provider credentialing and compliance oversight.
Approval of this agreement ensures access to high-acuity placements for adults requiring 24-hour behavioral health supervision and treatment, supports continuity of care for conserved and high-need individuals, and reduces reliance on state hospital placements by maintaining locally authorized, Medi-Cal-reimbursable treatment options in a secure, licensed environment.
If not budgeted, fill in the blanks below only:
Estimated Cost: _$750,000.00__ Amount Budgeted: ________ Additional Requested: ________ Future Annual Cost: ________
Purchasing Considerations (check all that apply): ☐ Not applicable
☒ Fully Article X. <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI>- and/or Consultant Selection Policy <http://lcnet.co.lake.ca.us/Assets/Intranet/Policy/Policies+$!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 the Agreement Between the County of Lake and Vista Pacifica Enterprises, Inc., for Adult Residential Support Services and Specialty Mental Health Services in the Amount of $750,000 for Fiscal Year 2025-2026 and Authorize the Board Chair to Sign.