Are Government Officials Pocketing the Homeless Monies by Contracting with Themselves?
DEMA Consulting & Management Received Millions for No-Bid Contracts
DEMA Consulting & Management, a Santa Rosa, Sonoma County, California based company earned more than $26 million through no-bid Sonoma County contracts. In June 2021, DEMA Consulting and Management expanded into a second market — Harris County, Texas, the county enveloping Houston, securing a no-bid contract to operate two mobile medical clinics. The underlying question is, why?
TIMELINE OF EVENTS
December 2020: DEMA Consulting & Management Company, a for-profit entity, began working directly with the Sonoma County Health Services Department for Project Homekey services regarding Hotel Azura. It was odd that the Health Services Executive Director Barbie Robinson was inclined to grant contracts to DEMA during this timeframe being that they did not appear to legally incorporate until August 2021. Because of the pandemic, DHS contracts were given approval through the department's authority without being presented to the Board of Supervisors.
During this time frame, Mr. Erick Roeser, Sonoma County Treasurer was employed simultaneously with his spouse, Ms. Kimberly Roeser, Chief of Procurement for Sonoma County Health Services. Sonoma County Assistant Administrator Christina Rivera was also simultaneously employed with her spouse, Mr. Jonathan Kadlec, Assistant Treasurer, County of Sonoma.
Ms. Robinson appeared to purchase a home in Houston, Texas on March 17, 2022
Her direct report, Mr. Rohish Lal oddly resigned within the same exact month as the Legislative Policy and External Affairs Officer, County of Sonoma and took a position as the Director of Government Affairs for Harris County, TX as well.
August 2021: DEMA submitted their corporate filing to the California Secretary of State.
October 18, 2021: 1603 Ash Meadow Dr; Houston, TX, was an item of discussion for Harris County Emergency Services District #28 on October 18, 2021. Oddly, it is the same exact address associated with the corporate filing for Ms. Kathi Yost, the Vice President of Operations for DEMA, TX, and the former Director of Communications for the Harris County Sheriff's Office.
January 18, 2022: DEMA received an award letter from Harris County to provide services for the Holistic Alternative Responder Team (HART).
March 22, 2022: DEMA submitted their corporate filing to the TX Secretary of State.
March 22, 2022: Sonoma County Supervisor Gore signed the deed to his home in San Leon, Galveston County, TX.
Sonoma County, CA Supervisor James Gore & Harris County, TX Commissioner Rodney Ellis serve together on the National Association of Counties (NaCo). https://www.naco.org/articles/county-officials-discuss-prevention-management-disasters
June 2022: Ms. Kathi Yost resigned from her position of 24.5 years as Director of Communications for the Harris County Sheriff's Office to become the Vice President of Operations for DEMA. She chose to leave the company name as ‘anonymous’ on her LinkedIn.
From 2018-present, Ms. Yost has shared a home mortgage with her partner, Ms. Monette Hurtt, the Director of Administrative Services for the Harris County Sheriff's Office.
Ms. Yost & Ms. Robinson were quoted about the HART program by the Harvard Kennedy School Government Performance Lab.
July 2023: Sonoma County Elected Finance Chief Erick Roeser was selected to conduct an internal investigation of DEMA. This presents a conflict being that his spouse was the Deputy Chief of Procurement in DHS during the time period in which the contracts were signed.
Feb 12, 2024: I received the following statement from Harris County employee DeWight Dopslauf (purchasing) in response to my emailed concerns (see attached). Ms Robinson was cc'd on this response:
Ms. Flores, I received the information from Commissioner Garcia office and wanted to provide details related to the award of a contract to Dema Consulting and Management, LLC. Dema Consulting and Management, LLC was awarded Job No.21/0251 on 1/25/22; at that time they qualified as a sole proprietorship which is one of the exemptions allowed by the State of Texas to do business; therefore they were not required to be registered. After the contract began they opened a local office in Houston which is when they register as a State of Texas vendor in March 2022. Please note: DEMA Consulting and Management, LLC is made up of two members so they qualified for the exemption. Below is the list of exemptions from the State of Texas which was pulled from the following link: https://comptroller.texas.gov/taxes/publications/98-806.php
While operating their ‘for profit’ entity, DEMA has simultaneously operated a non-profit affiliate. The media has made zero mention of this.
April 2024: Sonoma County supervisors vote to sever ties with DEMA after financial investigation, legal threats from CEO
May 2024: Harris County halts HART program after Commissioners Court disagrees on paying vendor
May 2024: Harris County pauses program that diverts 911 calls to mental health crisis team
June 2024: DEMA’s CEO billed Sonoma County for working on a Sunday. She was at a Broncos game
June 2024: Sonoma County grand jury faults Health Services Department for DEMA payments
June 2024: Michelle Patino out as CEO of DEMA as embattled company seeks to maintain its Texas contract
I have shared all of this information with Sonoma County, California & Harris County, Texas media sources, as well as the associated government agencies. There has not been a peep about these matters shared publicly aside from what I am sharing with you here. Based on the facts presented, do you believe local elected officials and staff received a cut from the DEMA contracts?
Wow, Adina... I would say there are some kickbacks happening here. Based on this article I went online and searched all the links I could find on DEMA - there were many, probably with a lot of repeat information. I haven't had time to research any of them, yet. From the timeline you provide and the entities involved, this story stinks to high heaven, particularly with Roeser charged with investigating DEMA. Who watches the watchers? You, apparently. And now me.