496803049-2-25-2021-21-AS-CMAZ-C37S93-20210520134001

Community Care Licensing

COMPLAINT INVESTIGATION REPORT

Facility Number: 496803049
Report Date: 02/10/2021
Date Signed: 02/25/2021 06:56:21 PM

STATE OF CALIFORNIA - HEALTH AND HUMAN SERVICES AGENCY

COMPLAINT INVESTIGATION REPORT

CALIFORNIA DEPARTMENT OF SOCIAL SERVICES
COMMUNITY CARE LICENSING DIVISION
CCLD Regional Office, 101 GOLF COURSE DR. STE. A-230
ROHNERT PARK, CA 94928

This is an official report of an unannounced visit/investigation of a complaint received in our office on
01/05/2021 and conducted by Evaluator Jennifer Walden

PUBLIC

COMPLAINT CONTROL NUMBER: 21-AS-20210105092624

FACILITY NAME:	VARENNA AT FOUNTAINGROVE		FACILITY NUMBER:	496803049
ADMINISTRATOR:	BUOT, FERDINAND		FACILITY TYPE:	741
ADDRESS:	1401 FOUNTAINGROVE PKWY		TELEPHONE:	(707) 526-1226
CITY:	SANTA ROSA	STATE: CA	ZIP CODE:	95403
CAPACITY:	322	CENSUS:	DATE:	02/10/2021
		ANNOUNCED	TIME BEGAN:	03:07 PM
MET WITH:			TIME COMPLETED:	03:08 PM

ALLEGATION(S):

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Providers included factors not allowed by statues for increasing the monthly care fee

INVESTIGATION FINDINGS:

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As part of its investigation the Department reviewed the following information:
 The resident complaint;
 The Certificate of Authority (COA) to identify the providers and the operating agreements of the providers;
 Varenna projected costs for 2021 as set out in Varenna’s power point presentation to the residents;
 Varenna’s explanation of the methodology, calculation and financial data used for monthly care fee increases for the budget year 2021; and
 The audited financial statements of Varenna at Fountaingrove, LLC, the parent of Varenna, LLC, for the year 2019.
In addition, the Department interviewed:
 Keith Fitzsimmons, Chief Financial Officer of Gallaher Companies, Oakmont Senior Living, Varenna at Fountaingrove, LLC, and Varenna to gather information and accounting records related to Varenna’s 2021 budget including the basis for the planned monthly care fee increases.
 The complaining parties.

Unfounded

Estimated Days of Completion:

SUPERVISOR'S NAME: Allison Nakatomi	TELEPHONE: (916) 531-5336
LICENSING EVALUATOR NAME: Jennifer Walden	TELEPHONE: (916) 651-8148
LICENSING EVALUATOR SIGNATURE:	DATE: 02/10/2021

I acknowledge receipt of this form and understand my licensing appeal rights as explained and received.

FACILITY REPRESENTATIVE SIGNATURE:

DATE: 02/10/2021

This report must be available at Child Care and Group Home facilities for public review for 3 years.

LIC9099 (FAS) - (06/04)

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Control Number 21-AS-20210105092624

STATE OF CALIFORNIA - HEALTH AND HUMAN SERVICES AGENCY

COMPLAINT INVESTIGATION REPORT (Cont)

CALIFORNIA DEPARTMENT OF SOCIAL SERVICES
COMMUNITY CARE LICENSING DIVISION
CCLD Regional Office, 101 GOLF COURSE DR. STE. A-230
ROHNERT PARK, CA 94928

FACILITY NAME: VARENNA AT FOUNTAINGROVE	FACILITY NUMBER: 496803049
	VISIT DATE: 02/10/2021

NARRATIVE

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Oakmont Senior Living (OSL), Varenna at Fountaingrove, LLC, and Varenna jointly hold the certificate of authority for the community. OSL is the managing member of Varenna at Fountaingrove, LLC, which is in turn the managing member of Varenna, LLC. All three are required to maintain accounting and reporting systems in accordance with Generally Accepted Accounting Principles.

The Department’s review determined that the legal fees, settlements and fines referenced above were included in Varenna, LLC’s profit and loss for the fiscal year ending December 2020 as operating costs, but they were not included in the calculation of the monthly care fee increase and were not passed through to the residents. This is clear from the presentation to the residents and from clarification the Department has received from Mr. Fitzsimmons. These costs were simply taken as losses by ownership.

Because the costs in question were not considered in the calculation of monthly care fees, the complaint is UNFOUNDED.

SUPERVISOR'S NAME: Allison Nakatomi	TELEPHONE: (916) 531-5336
LICENSING EVALUATOR NAME: Jennifer Walden	TELEPHONE: (916) 651-8148
LICENSING EVALUATOR SIGNATURE:	DATE: 02/10/2021

I acknowledge receipt of this form and understand my licensing appeal rights as explained and received.

FACILITY REPRESENTATIVE SIGNATURE:

DATE: 02/10/2021

LIC9099 (FAS) - (06/04)

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