Poulsbo council approves short-term contract to keep behavioral‑health services after provider shuts down

Poulsbo City Council voted Sept. 2 to authorize an emergency professional-services contract and a related budget amendment to maintain behavioral-health services at the city's Recovery Resource Center after Kitsap Homes of Compassion ceased operations.

Health, Housing and Human Services Director Kim Hendrickson told the council that Kitsap Homes of Compassion had "gone out of business" and that the city's case manager received termination notices on Sept. 1, creating an urgent continuity-of-care issue. Hendrickson said Katz Cottage of Port Orchard, whose director Kate Soderbergh previously supervised Kitsap Homes staff, agreed to take the contract through the end of the year so the same staff can continue serving clients.

"Katz Cottage has, quite literally, come to our rescue," Hendrickson said, asking the council to approve a budget amendment and execute the contract with a note that Kitsap County has told the city it will reimburse the expense though a county contract has not yet been finalized.

Council moved and seconded to approve "budget amendment 26-309 and authorize the mayor to sign a professional services agreement with Katz Cottage, LLC." The roll call vote recorded unanimous support; staff said services could resume immediately under the Katz Cottage arrangement, limiting the interruption to a few days.

Why it matters: The action preserved staffing and care for people reliant on the Recovery Resource Center and the provider-managed group homes; staff emphasized the county's stated intent to reimburse the city for the expense but advised council that the county contract remained pending.