Memorandum
Date: November 3, 2026
To: The Honorable Lake County Board of Supervisors
From: Elise Jones, Director of Behavioral Health Services
Subject: Approve the Agreement between the County of Lake and Ever Well Health Systems, LLC for Adult Residential Support Services and Specialty Mental Health Services for Fiscal Year 2026-2027, for the term of July 1, 2026 through June 30, 2027, in an amount not to exceed $225,000, and authorize the Chair of the Board of Supervisors to sign.
Executive Summary:
LCBHS recommends approval of the proposed $225,000 Agreement to maintain necessary residential services for currently placed Lake County clients and establish the contractual basis for processing authorized services invoiced beginning in July 2026. This recommendation is made with knowledge of significant California Department of Social Services (CDSS) licensing actions affecting Ever Well facilities. LCBHS is addressing these concerns through discussions with executive leadership, planned facility visits, and the authorization, reporting, monitoring, and corrective-action provisions of the Agreement.
LCBHS utilizes specialized residential providers for clients whose behavioral health, medical, functional, or placement needs cannot be appropriately met through standard outpatient or community-based services. Appropriate alternative placements are not presently available for all Lake County clients residing at Ever Well. An interruption in services or an unplanned transfer could disrupt treatment and residential stability. Continued placement must nevertheless be evaluated according to each client’s needs and the conditions at the specific facility.
Licensing findings and current status
Fiscal and purchasing considerations
The proposed maximum remains $225,000 for July 1, 2026 through June 30, 2027. The FY 2024-25 Agreement had a $125,000 maximum, with approximately $70,810 expended for 365 bed days. The FY 2025-26 Agreement, as amended, had a $225,000 maximum, with approximately $224,602 expended for 274 bed days. Invoices have been accumulating for services beginning in July 2026. Payment remains subject to County review of authorization, rates, documentation, allowability, and applicable funding; approval does not automatically validate outstanding invoices.
Funding is provided through available Behavioral Health revenues, including Medi-Cal reimbursement and Realignment, as applicable to the services and placements provided. The Agreement is subject to funding availability and applicable federal, State, DHCS, licensing, credentialing, confidentiality, and audit requirements. The proposed exemption from formal competitive solicitation is pursuant to Section 2-38.2(2) of the County Purchasing Policy/Code for specialized professional services.
If not budgeted, fill in the blanks below only:
Estimated Cost: ________ Amount Budgeted: ________ Additional Requested: ________ Future Annual Cost: ________
Purchasing Considerations (check all that apply): ☐ Not applicable
☐ Fully Article X. <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI>- and/or Consultant Selection Policy <http://lcnet.co.lake.ca.us/Assets/Intranet/Policy/Policies+$!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 the Agreement between the County of Lake and Ever Well Health Systems, LLC for Adult Residential Support Services and Specialty Mental Health Services for Fiscal Year 2026-2027, for the term of July 1, 2026 through June 30, 2027, in an amount not to exceed $225,000, and authorize the Chair of the Board of Supervisors to sign.