Board Of Supervisors — Tuesday, August 25, 2026

The Final Recommended Budget for Fiscal Year 2026/2027 for the County of Lake and Special Districts was originally scheduled for Tuesday, September 15, 2026. Due to budget revisions and time constraints, staff requests to schedule a special meeting on September 29, 2026 for this public hearing.

Approve the addition of a Special Meeting of the Board of Supervisors on Tuesday, September 29, 2026.

Lake County Behavioral Health Services participates in the California Mental Health Services Authority's ("CalMHSA") Interoperability Solution Program. The program supports secure health information exchange, care coordination, referral management, and compliance with applicable state and federal interoperability requirements. The original Participation Agreement No. 5107-INT-2023-LC is effective January 1, 2024 through December 31, 2026, with a current agreement maximum of $222,948. Amendment No. 1 adds specified services and associated fees for the period January 1, 2026 through December 31, 2026, and does not extend the overall term of the Participation Agreement. Amendment No. 1 adds access to the CalMHSA Connex Admission, Discharge, and Transfer ("ADT") Dashboard and implementation and subscription services for the CalMHSA Connex Closed Loop Referral and Prior Authorization ("CLR/PA") Module. Amendment No. 1 is effective retroactively for the period January 1, 2026 through December 31, 2026. Retroactive approval is requested because the amendment was finalized in May 2026, after the January 1, 2026 effective date, and County staff subsequently completed the necessary programmatic, fiscal, technology, contracting, and legal review prior to presentation to the Board of Supervisors. The amendment itself is dated May 28, 2026 and establishes the January 1 through December 31, 2026 service period. The ADT Dashboard will allow authorized County staff to view real-time and historical admission, discharge, and transfer information received through approved third-party health information exchange organizations. The information may be used to support care coordination and operational decision-making. CalMHSA will provide access to the dashboard, process and display available data, facilitate connectivity with approved data sources, and provide first-line technical support. The ADT Dashboard is provided at no cost only through December 31, 2026. Continuation after that date may require additional implementation and subscription fees at CalMHSA's then-current rates and would be subject to available appropriations and any required future approval. CalMHSA may also assess additional implementation costs if the County requests connectivity with additional ADT data sources. Such additional implementation or connectivity costs are not included in the funding increase presented for approval under this item and will not be incurred unless separately authorized in accordance with applicable County contracting and budget authority. The amendment expressly limits the no-cost ADT subscription to December 31, 2026. ADT information displayed through the dashboard will originate from third-party Qualified Health Information Organizations and other health information exchange organizations. CalMHSA will serve as the technical intermediary and will not independently originate or validate the accuracy, completeness, timeliness, availability, or content of the information received from those organizations. The existing JPA Business Associate Agreement will remain in effect, subject to the ADT-specific provisions contained in Amendment No. 1. The CLR/PA Module will support the electronic initiation, submission, tracking, and confirmation of referrals and prior authorization requests through the Connex platform. The project includes system design and configuration, development of referral and authorization workflows, role-based access controls, testing, training, deployment, user documentation, technical support, and post-launch stabilization. Behavioral Health Services will designate a project lead and subject matter experts, provide existing referral workflows and related documentation, participate in implementation, testing, training, and validation, coordinate engagement with local providers and managed care plans, and maintain an accurate list of authorized users. Amendment No. 1 increases the agreement maximum by $22,500, from $222,948 to $245,448. The additional cost consists of a one-time implementation and project management fee of $12,500 and an annual subscription fee of $10,000 for the CLR/PA Module. The implementation and project management fee will be invoiced upon execution of Amendment No. 1, and the annual subscription fee will be invoiced quarterly in arrears. The standard CLR/PA subscription includes up to 250 transactions per month. Amendment No. 1 also identifies optional additional transaction capacity in increments of 500 transactions per month at a rate of $500 per month. No optional additional transaction capacity is included in the requested $22,500 increase. Any additional capacity that would increase the agreement maximum would require separate authorization and available appropriations. Funding for the $22,500 increase is available within Fund 145, Behavioral Health Services Budget Unit 4014, using Prop 30 Federal - Interoperability funding. County fiscal records identify the CalMHSA Participation Agreement - Interoperability within Budget Unit 4014 and classify the expenditure as Prop 30 Federal - Interoperability. The $10,000 annual subscription fee covers January 1 through December 31, 2026; therefore, $5,000 is attributable to FY 2025-26 and $5,000 is attributable to FY 2026-27. The FY 2025-26 portion will be accrued, as applicable, as part of fiscal year-end close. The $12,500 implementation and project management fee is payable upon execution of Amendment No. 1 and will be attributable to FY 2026-27. No additional impact to the County General Fund is anticipated. Purchasing Considerations: A Section 2-38 exemption from competitive bidding is requested because Amendment No. 1 adds services provided through CalMHSA's existing Connex interoperability platform under the County's current Participation Agreement rather than procuring a separate technology platform from a new vendor. CalMHSA is the existing contracting entity responsible for the Interoperability Solution Program and the Connex platform through which the additional ADT Dashboard and CLR/PA Module services will be provided.

Approve Amendment No. 1 to Participation Agreement No. 5107-INT-2023-LC with the California Mental Health Services Authority for the Interoperability Solution Program, effective January 1, 2026 through December 31, 2026, increasing the agreement maximum by $22,500, from $222,948 to $245,448, and authorize the Chair to sign.

As part of the fiscal year-end closing process, Lake County Behavioral Health Services reviewed the remaining appropriations and outstanding obligations in Fund 141 (Substance Use Disorder), Budget Unit 4015. The review identified that additional budget authority is required to process New Life Narcotic Treatment Program activity and other contracted services. The review also identified that the Opioid Settlement Fund reserve must be adjusted to reflect OSF amounts already expended under previously approved or authorized awards and contracts. The related expenditure appropriations were previously increased at midyear. New Life obligations total approximately $9,033,633.33. New Life is a complete fiscal pass-through for the County: the County receives and transfers the applicable intergovernmental transfer or other non-federal share and receives and remits the corresponding Medi-Cal/DMC-ODS reimbursement. The County does not retain any portion of the revenue associated with New Life activity. Other obligations charged to account 740.23-80 total approximately $890,000, and approximately $49,000 in appropriation authority remains available. The resulting minimum appropriation increase is approximately $9,874,633.33. To provide limited authority for final valid invoices and year-end adjustments, the Department requests a $9,975,000 increase to account 740.23-80, providing a contingency of approximately $100,366.67 above the currently identified need. The corresponding $9,975,000 revenue increase is recorded as Medi-Cal/DMC-ODS revenue and is based on actual and anticipated reimbursement associated with New Life pass-through activity and other Fund 141 service obligations. The revenue and appropriation increases balance at $9,975,000. Separately, the Department requests a $3,573,547.55 reduction to Opioid Settlement Fund reserves to reflect OSF amounts already expended under previously approved or authorized awards and contracts. The related OSF expenditure appropriations were previously increased as part of the midyear budget adjustment; therefore, no additional OSF expenditure appropriation is requested through this amendment. The proposed amendment therefore increases Medi-Cal/DMC-ODS revenue and appropriations by $9,975,000 and separately decreases Opioid Settlement Fund reserves by $3,573,547.55 to reflect OSF amounts already expended under previously approved or authorized awards and contracts. The New Life appropriation increase and OSF reserve adjustment are separate components of the Fund 141 budget amendment. The Department expects all related revenue and expenditure activity to fall within the applicable fiscal year-end accrual periods. This budget amendment does not represent an immediate cash need; rather, it provides the budget authority necessary to recognize and process current-year obligations and corresponding revenues through the normal accrual, payment, and reimbursement processes. The requested adjustment provides budget authority only for existing fiscal year obligations and adjusts the OSF reserve for amounts already expended under awards and contracts previously approved or otherwise authorized by the County. It does not authorize new contracts, services, or Opioid Settlement Fund awards. No discretionary General Fund contribution is requested. Approval is requested to allow the Department and Auditor-Controller to complete fiscal year-end processing, pay valid pass-through and contract obligations, and accurately align the Opioid Settlement Fund reserve with amounts already expended under previously approved or authorized awards and contracts.

Adopt a Resolution amending Resolution No. 2025-118, as previously amended, to amend the FY 2025-26 Adopted Budget for Fund 141 (Substance Use Disorder), Budget Unit 4015, by increasing Medi-Cal/DMC-ODS revenue by $9,975,000, decreasing Opioid Settlement Fund reserves by $3,573,547.55, and increasing appropriations by $9,975,000 to finalize fiscal year-end obligations.

As part of the fiscal year-end closing process, Lake County Behavioral Health Services reviewed the remaining appropriations and outstanding obligations in Fund 145 (Mental Health), Budget Unit 4014. The review identified that additional budget authority is required to process contracted provider services, supplies and services, and client placement costs before year-end close. Known unprocessed obligations in accounts 740.23-80, 740.28-30, and 740.40-70 total approximately $6.34 million, compared with approximately $3.45 million in remaining budget authority. The resulting minimum appropriation shortfall is approximately $2.88 million. To ensure sufficient authority to finalize year-end and cover additional invoices that may be received during the closing process, the Department requests a total appropriation increase of $4,861,792. This includes $2,311,792 for contracted Specialty Mental Health Services (SMHS) billable provider services, $850,000 for supplies and services, and $1,700,000 for client placements. The requested increase provides approximately $1.98 million above the currently identified minimum shortfall for additional valid year-end obligations. The corresponding revenue increase, recorded in account 452.53-60, includes $829,280 for SMHS administrative claims submitted to the California Department of Health Care Services for reimbursement and $4,032,512 in additional SMHS Medi-Cal revenue. The Medi-Cal projection is based on $4,157,229.12 in billed but not yet paid SMHS Medi-Cal claims, reduced by the Department's 3% average denial rate. The proposed revenue and appropriation increases balance at $4,861,792 and are necessary to align the FY 2025-26 Adopted Budget with current service activity and outstanding fiscal year-end obligations. The Department expects the underlying FY 2025-26 services, associated claims, and related obligations to be recognized within the County's applicable year-end accrual periods. The requested adjustment provides budget authority only for current-year obligations and does not authorize new contracts, placements, or services beyond those otherwise approved by the County. No reserve transfer or discretionary General Fund contribution is requested. The amendment is supported by anticipated State and Federal Medi-Cal revenues administered through Behavioral Health Services. This amendment does not represent an immediate cash need. It establishes budget authority and recognizes anticipated FY 2025-26 revenue and expenditures; cash receipts and payments will occur through the normal Medi-Cal claiming and County payment cycles. Approval is requested to allow the Department and Auditor-Controller to complete fiscal year-end processing and accurately align appropriations and revenue with current-year obligations.

Adopt a Resolution amending Resolution No. 2025-118, as previously amended, to amend the FY 2025-26 Adopted Budget for Fund 145 (Mental Health), Budget Unit 4014, by increasing revenues and appropriations by $4,861,792 to finalize fiscal year-end obligations.

WHEREAS, International Overdose Awareness Day is a global campaign held on August 31 to end overdose, remember those who have died without stigma, and acknowledge the grief of family and friends left behind; and WHEREAS, in 2024, 21 people fatally overdosed in Lake County which was the 12th highest overdose death rate in the state of California and is almost 2 times higher than the California rate. Lake County's rate was 27.78/100k compared to California's rate of 14.48/100k deaths. Data from CA Overdose Dashboard; and WHEREAS, every person should have access to resources that prevent overdose and other causes of drug-related mortality, including naloxone, sterile needles, drug testing, and medication for addiction treatment; people who use drugs continue to be stigmatized and marginalized, discouraging them from accessing care and treatment; and WHEREAS, in Lake County, dedicated prescribers of medication for addiction treatment, harm reduction providers, behavioral health providers, and addiction recovery programs work tirelessly to provide residents with these resources; all overdose deaths are preventable via access to harm reduction, health care, substance use prevention and treatment services, and naloxone, the opioid overdose reversal agent; and WHEREAS, local communities play a crucial role in eliminating the stigma of addiction, including residents, elected officials, parents, private and public organizations, hospitals, law enforcement, first responders, schools, and colleges; and WHEREAS, SafeRx Lake County, an overdose prevention coalition comprised of local agencies and organizations including Lake County Behavioral Health and Lake County Health Services, hosted its sixth annual commemoration of International Overdose Awareness Day on August 22. NOW, THEREFORE BE IT PROCLAIMED, that the Lake County Board of Supervisors does hereby designate August 31 as International Overdose Awareness Day and urges Lake County citizens to join in this important observance.

Adopt Proclamation Designating August 31, 2026 as International Overdose Awareness Day

WHEREAS, International Overdose Awareness Day is a global campaign held on August 31 to end overdose, remember those who have died without stigma, and acknowledge the grief of family and friends left behind; and WHEREAS, in 2024, 21 people fatally overdosed in Lake County which was the 12th highest overdose death rate in the state of California and is almost 2 times higher than the California rate. Lake County's rate was 27.78/100k compared to California's rate of 14.48/100k deaths. Data from CA Overdose Dashboard; and WHEREAS, every person should have access to resources that prevent overdose and other causes of drug-related mortality, including naloxone, sterile needles, drug testing, and medication for addiction treatment; people who use drugs continue to be stigmatized and marginalized, discouraging them from accessing care and treatment; and WHEREAS, in Lake County, dedicated prescribers of medication for addiction treatment, harm reduction providers, behavioral health providers, and addiction recovery programs work tirelessly to provide residents with these resources; all overdose deaths are preventable via access to harm reduction, health care, substance use prevention and treatment services, and naloxone, the opioid overdose reversal agent; and WHEREAS, local communities play a crucial role in eliminating the stigma of addiction, including residents, elected officials, parents, private and public organizations, hospitals, law enforcement, first responders, schools, and colleges; and WHEREAS, SafeRx Lake County, an overdose prevention coalition comprised of local agencies and organizations including Lake County Behavioral Health and Lake County Health Services, will host its sixth annual commemoration of International Overdose Awareness Day in Library Park in Lakeport on Saturday, August 22, 2026 from 11am to 3pm. NOW, THEREFORE BE IT PROCLAIMED, that the Lake County Board of Supervisors does hereby designate August 31 as International Overdose Awareness Day and urges Lake County citizens to join in this important observance.

Presentation of Proclamation Designating August 31, 2026 as International Overdose Awareness Day

At the August 18, 2026 Board meeting under Agenda Item No. 6.8, your Board, by a vote of 3-2, approved the Findings of Fact and Decision, as amended, and granted the appeal in part in the above matter. A copy of Findings of Fact and Decision, incorporating the amendments made by your Board on August 18, 2026, is enclosed as part of today's (August 25, 2026) agenda packet. Subsequently, staff received information that one or more of the members of your Board may wish to change a vote that was inadvertently submitted and led to the action taken on August 18, 2026. Chapter 1, Section 3, Rule 9 of the County's policies and procedures states: "Any member of the Board who votes in the majority on a question . . . is eligible to make a motion to reconsider . . . Unless a member was absent, motion to reconsider must be placed on the agenda for the next regular Board meeting . . . A motion to reconsider shall require a majority vote." Chapter 1, Section 3, Rule 8 of the County's policies and procedures states: A motion to rescind any action or motion shall require four-fifths vote unless notice has been given at the previous meeting, either verbally and in writing." In light of the foregoing, your Board may reconsider each action taken under Agenda Item No 6.8 of the August 18, 2026 Board meeting and rescind each said action. Once reconsideration and rescission of said actions occur, your Board may then proceed with taking the following two actions: Move to approve the Findings of Fact and Decision and authorize the Chair to Sign; and Move to grant the appeal in part with the amendments to Major Use Permit (PL-25-71) (Exhibit E) as stated in the Findings of Fact and Decision.

(a) Move to reconsider the Board's August 18, 2026 action to approve the Findings of Fact and Decision, as amended, under Agenda Item No 6.8. (b) Move to rescind the Board's August 18, 2026 action to approve the Findings of Fact and Decision, as amended, under Agenda Item No 6.8. (c) Move to reconsider the Board's August 18, 2026 action granting the appeal in part with the amendments to Major Use Permit (PL-25-71) (Exhibit E) as stated in the Findings of Fact and Decision, as amended, under Agenda Item No 6.8. (d) Move to rescind the Board's August 18, 2026 action granting the appeal in part with the amendments to Major Use Permit (PL-25-71) (Exhibit E) as stated in the Findings of Fact and Decision, as amended, under Agenda Item No 6.8. (e) Move to approve the Findings of Fact and Decision and authorize the Chair to Sign. (f) Move to grant the appeal in part with the amendments to Major Use Permit (PL-25-71) (Exhibit E) as stated in the Findings of Fact and Decision.

As the Board is aware, the funding allocated to the Lake County 2050 (LC2050) Update must be spent by the end of the 2026 calendar year. The LC2050 Update was a three-year project, with extensive public outreach and a series of draft documents, including a Draft Environmental Impact Report. Recently, it has come to Staff's attention that additional public review with possible further edits may be warranted. Staff is in the process of gathering public responses to the latest version of LC2050 to assess the extent of possible edits, and proposes the following additional activities to the LC2050 project timeline: * Continue the Planning Commission LC2050 review to a future date * Collect and review the letters from various Municipal Advisory Councils (MACs) * Hold LAPAC meetings as necessary, to review letters * Assess edits and draft amendment to agreement to project consultant team, to be presented to the Board at a future meeting. Timeline Staff was working under the misconception that the state had a deadline for the receipt and review of the General Plan update. This is not the case but rather was a misunderstanding and conflation of the funding source deadline with a state timeline requirement. While this is helpful to the overall General Plan update timeline, the work on LC2050 is not free of cost. Attached please find an "a la carte" pricing sheet for the project consultant, to give the Board a sense for the request that may be required for additional edits to LC2050. Additionally, other department projects, including but not limited to the Short-Term Rental Ordinance, Article 73 Cannabis Ordinance, the Scope of Work for the Energy Resources Element Request for Proposals, and implementation of various actions in the Climate Adaptation Plan were scheduled to begin at the conclusion of LC2050. The Housing Element process is also scheduled to begin soon and will require considerable staff time to meet the State deadline of submission by August 2027. Staff would appreciate Board direction on a shifting of these anticipated timelines, with this unanticipated extra LC2050 work.

Receive presentation and provide direction on timeline for 2027 projects.

As you will be aware, Elsinore Valley Municipal Water District has expressed interest in acquiring and operating the Potter Valley Project facilities. Reportedly, there is interest from other groups, as well. Our Board has long held an interest that alternatives to Decommissioning Scott Dam and other Potter Valley Project facilities be explored, as documented in previous public statements, including Comments and Attachments submitted to the California State Water Resources Control Board's Division of Water Rights on November 3, 2025: https://www.lakecountyca.gov/1859/Lake-Pillsbury#docaccess-0129048a7d8af3d00139fb126cec14d7e26e5b1caab743a99f3db59da377d8cb Robust consideration of project alternatives has been frustrated by reluctance of Pacific Gas and Electric Company (PG&E) to make key project information available to all interested parties. It is in Lake County's, FERC's, and the broader public interest that PG&E be as open and transparent as possible with all information regarding the Potter Valley Project, so alternative plans can be effectively crafted and shared with the public. The County of Lake and other interested parties should have the chance to vet such alternatives. The attached letter implores FERC to robustly consider alternatives, and support agencies' interest in obtaining information necessary to craft quality alternative plans. We recommend that our Board approve the Letter and authorize the Chair to sign.

Approve the Letter Imploring the Federal Energy Regulatory Commission (FERC) to Robustly Consider Alternatives to Pacific Gas and Electric Company Application (P-77-332 Potter Valley Project), and Authorize the Chair to Sign.

(include fiscal and staffing impact narrative): The following Advisory Boards and Commissions have vacancies and applications for consideration have been received. Fish and Wildlife Advisory Committee Two (2) Vacancies: One (1) Fish and Wildlife Conservation; and One (1) Tribal Government * Angela DePalma-Dow (Fish and Wildlife Conservation seat) Lower Lake Waterworks District One Two (2) Vacancies: Two (2) Directors * Susanne Strek

Appoint qualified applicants to the specified Advisory Boards.

(include fiscal and staffing impact narrative): Lake County Special Districts has been working with LT Municipal Consultants to establish miscellaneous service fees. The purpose of this memorandum is to establish a standardized schedule of administrative, water, and wastewater user fees. User fees are miscellaneous service fees that are subject to the provisions of Proposition 26 (Articles XIII A and XIII C of the California Constitution) and are distinct from monthly or bimonthly utility rates which are subject to Proposition 218. Each proposed fee is a charge imposed for reasonable regulatory costs (i.e. licenses, audits, inspections, permits) that does not exceed the reasonable cost of service. Each fee covers staff time needed to ensure compliance with various health and safety codes. The fees are NOT related to general government benefits, ongoing monthly services, or property related fees. These fees are related to specific services triggered by or requested by residents for regulatory approval and are not generalized services. A summary of the proposed fees is provided in attachment "Attachment 1: Summary of Proposed User Fees". The fees are intended to recover the County's full cost of providing miscellaneous services. These costs are incurred through the County's General and Administrative activities and are not incurred via individual service area budgets such as LACOSAN. The services provided are to ensure compliance with the County's health and safety codes which apply County-wide and are not specific to any one service area nor are they a rate payor cost. Rate payors do not benefit or receive a needed service from these activities. The intent of the fees is to directly charge users who trigger regulatory services to relieve the financial burden on the County's General and Administrative Funds. It should be noted that the attached fee study references the LACOSAN grease trap interceptor program to illustrate the need for a grease trap inspection fee. The grease trap inspection fee is not specific to LACOSAN and instead applies to all grease traps within the County. As another example, not everyone is required to have a backflow devise, therefore inspections and the cost of installation of the devise is not a rate payor cost and the cost needs to be recovered from the user benefiting from the service. The County may implement fees less than or up to the amounts shown in compliance with the requirements of Proposition 26. Should the County charge less than the cost of service, a funding gap is created that is potentially recovered by other County revenue sources. Special Districts administration or operations does not receive any General Fund, or funding from an outside agency such as Lake County Economic Development Corporation to provide these special services. In leu of fees these are the kinds of funds that could be provided from the county, cities or outside agencies. Burdening rate payors with paying for services they do not receive is not eligible under Prop 218. The County should periodically review and update the fees included in this memorandum. In between comprehensive cost reviews, the County should increase the fees annually by either the annual change in the Consumer Price Index (CPI) or by labor cost increases such as step increases, staff benefit increases, or cost of living increases. Once approved the fees will be added to the Special Districts website that is refenced on the Master Fee, Cost Recovery Schedule https://www.lakecountyca.gov/1103/Rates. Moving forward the fees will be updated annually and submitted with the County Master Fee Schedule. Attached to this report is a table showing our existing fees and the proposed fees. _____________________________________________________________________________

Approve Special District User Fees and Proposition 26 User Fee Study.