Tracy council approves steps to implement Medi‑Cal medical‑respite services at temporary housing site and authorizes subrecipient agreement

City of Tracy City Council · November 3, 2025

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Summary

The council approved policies enabling the city to bill Medi‑Cal (CalAIM) for eligible medical‑respite services at the temporary emergency housing facility and authorized a subrecipient agreement with Independent Living Systems for billing and service delivery.

The Tracy City Council on Nov. 4 approved staff recommendations to operationalize Medi‑Cal (CalAIM) medical‑respite services at the city’s temporary emergency housing facility. Council also approved a subrecipient agreement with Independent Living Systems to provide billable services and act as the managed‑care provider link for Medi‑Cal reimbursements.

Homeless Services Manager Virginia Kearney summarized the phased project: Phase 2 (site buildings and kitchen) is nearing completion; Phase 3 includes non‑congregate modular units intended for medical‑respite beds; Phase 4 contemplates container dorms with potential behavioral‑health bridge housing. Staff said CalAIM billing could offset some operating costs for CalAIM‑eligible services and that the city had received technical assistance and grant support to implement billing systems.

Council approved two separate but related items: (1) a resolution authorizing staff to implement the medical‑respite program and approving interim policies and procedures to support CalAIM contracting and billing; and (2) a resolution approving a subcontractor services agreement with Independent Living Systems so the city can receive reimbursements for eligible services provided at the site.

Staff cautioned the council that the program-building process is iterative and that certain aspects — including details of staffing, billing workflows and any state‑required approvals for particular service providers — may require additional steps or subsequent council approvals. City staff said they will return to council with policies and any contracts that require formal council action as details solidify.

Roll calls for both items were unanimous in favor at the Nov. 4 meeting. The approvals authorize staff to continue negotiations, finalize subrecipient contracting and commence the CalAIM implementation process, subject to applicable state and managed‑care requirements.