Are NACO Officials Creating Homeless Offices & Programs for Profit?
Sonoma County Supervisor James Gore & Harris County Commissioner Rodney Ellis launched nearly identical homeless service programs, so why is the crisis escalating as billable hours are unaccounted?
*Sonoma County Supervisor Gore (left) & Harris County Commissioner Rodney Ellis (right)
Every fiscal year, the National Association of Counties (NACo) appears to provide an overview of the Fiscal Year (FY) funding opportunities directly available to state and local governments and nonprofit organizations through Congressionally Directed Spending, more commonly known as Congressional earmarks.
As of June 2020, the Harris County Commissioner’s Court earmarked $25M for criminal justice diversion programs after attending George Floyd’s funeral.
In response to the homeless crisis, the County of Sonoma launched the Homeless Encampment Access & Resource Team (HEART). This program focuses on sheltering Sonoma County’s homeless population. The cohort was established to engage with the homeless population on the Joe Rodota Trail, the largest encampment in the County’s history. It was expanded in March of 2020 to outreach and provide coordinated care to individuals living in encampments in the unincorporated parts of the county and the cities of Sebastopol, Cotati, Rohnert Park, Sonoma, Healdsburg, Cloverdale, and the Town of Windsor.
The HEART funding stemmed from the Homeless Housing, Prevention and Assistance (HHAP) grant funding authorized by AB 101 (Committee on Budget, Chapter 159, Statutes of 2019), which was signed into law by Governor Gavin Newsom on July 31, 2019.
In November 2020 the California Department of Housing and Community Development awarded the County of Sonoma Project Homekey grant funding for the purchase of the Hotel Azura in Santa Rosa and the Sebastopol Inn in Sebastopol. The County of Sonoma was later recognized in 2021 by NACo as the Achievement Award Winner for best in human services.
In 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 with the State of California 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. Barbie Robinson led the homeless services division as Director/Interim Executive Director for the County of Sonoma Health Services division from February 2016 - April 2021.
Mr. Rohish Lal directed communications alongside Ms. Robinson via his position as Legislative Policy and External Affairs Officer for the County of Sonoma Health Services division from June 2018 - May 2021.
In May 2021, Mr. Lal took the role of Director of Communications for the Harris County Public Health Department. Ms. Robinson was simultaneously hired as the Executive Director for the Harris County Public Health Department.
The following timeline was established by Harris County Staff alongside the Commissioners.
In February 2021, Harris County approved $5M to launch an alternative community responder team for the County.
Following the hiring of Ms. Robinson & Mr. Lal, Harris County Health Services created the Office of Community Health and Safety in July 2021. They simultaneously hired the Holistic Assistance Response Team (HART) Program Manager to sit within the new Public Health Office to coordinate implementation.
Between July-August 2021, Harris County sought proposals to contract with a local service provider to staff and supervise HART. The request for proposal (RFP) lay in the hands of Commissioner Ellis’ office and Purchasing. Commissioner Ellis’ Office and the Justice Administration Department (JAD) requested for Director Kathi Yost to be on the RFP Steering Committee as a voting member.
As of June 2021, Ms. Robinson guided DEMA CEO Michelle Patino through the RFP process and her upcoming presentation for DEMA sites.
In August 2021, Harris County selected a local service provider, DEMA for HART and began responder hiring and training.
Within the same month, DEMA submitted their corporate filing to the California Secretary of State. However, they did not register as a foreign entity. Being that HART’s program timeline specified the need for a ‘local service provider’ it was odd for Ms. Robinson to solicit proposals from entities in an entirely different state.
In Fall 2021, Harris County launched HART in a small geographic area with plans to expand countywide. Mr. Rohish Lal drove communications regarding the RFP process on behalf of Ms. Robinson
Odd Findings
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.
Commissioner Ellis’ Office did not mention that Harris County Sheriff’s Office Director of Communications Kathi Yost was to become the Director of Operations for DEMA when soliciting the RFP and appointing her to the Steering Committee. Ms. Robinson made little to mention to Harris County Commissioners that she previously conducted business with DEMA in Sonoma County.
In March 2022, DEMA submitted their corporate filing to the TX Secretary of State.
In March 2022, Sonoma County Supervisor Gore signed the deed to his home in San Leon, Galveston County, TX.
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
In February 2024, I received the following statement from Harris County employee DeWight Dopslauf (purchasing) in response to my emailed concerns. I did not understand why DEMA received contracts with Harris County before legally incorporating with the State of Texas. Ms. Robinson was cc'd on his 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
In 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.
April 2024: Sonoma County supervisors vote to sever ties with DEMA after financial investigation, legal threats from CEO
Because of DEMA’s Sonoma County investigation, the Harris County Commissioners halted payment to DEMA in May 2024. Although Commissioners disagreed on paying the vendor, Commissioner Ellis was a vocal supporter.
Per Houston Landing: “Harris County Judge Lina Hidalgo and Precinct 1 Commissioner Rodney Ellis voted in favor of the $270,000 payment, while Precinct 3 Commissioner Tom Ramsey voted against. Precinct 2 and Precinct 4 Commissioners Adrian Garcia and Lesley Briones abstained.”
Commissioners Court rules require a majority vote of those present to pass agenda items.
Officials from Harris County Public Health, which oversees the HART program, declined comment on Wednesday’s vote.
Leslie Wilks Garcia, first assistant county auditor with Harris County, said DEMA is cooperating with the audit. So far, she said, the audit has produced nothing to show the $270,000 was improperly billed.
If the payment had been approved and the audit revealed DEMA had improperly charged Harris County, the county attorney’s office said the cost could legally be recouped.
“There are serious open questions about the practices of this company,” Briones said. “I love HART…it would break my heart but in good faith as fiduciaries to the taxpayers, (but). without these questions answered, I cannot vote.”
Hidalgo and Ellis voiced their support for approving the payments so HART could continue operating.
Earlier this year, Harris County criminal justice leaders approved a draft strategic plan that prioritized the assessment and expansion of HART. Ellis, chair of the Criminal Justice Coordinating Council, and the sheriff’s office had urged the council to deprioritize other programs in favor of HART, extolling its success.
The Harris County Sheriff’s Office did not immediately respond to requests for comment on Wednesday.”
Per Houston Landing:
“In June 2024, Harris County approved the payment to controversial HART vendor amid call to expand program.
After debating for more than an hour, the court voted 4-1 to approve the payment. Precinct 3 Commissioner Tom Ramsey was the lone dissenting vote.
The court did not take action on more than $860,000 DEMA has billed the county. DEMA owner Michelle Patino last week said the county has failed to pay her company for the last 11 months.
The county auditor said the invoices submitted by DEMA do not match the contract.
The discrepancy, Post said, likely stems from the addition of new positions and pay rates that have not been approved by Commissioners Court. Once that is presented to the court for approval after the completion of the audit, Post said he would recommend the payment be approved.
Precinct 1 Commissioner Rodney Ellis and Precinct 4 Commissioner Lesley Briones also created a plan to improve invoicing requirements by DEMA. The plan also requires the Office of County Administration and the health department to come up with a plan by July 15 to bring the HART program in-house and a timeline for expanding the program.
The court approved the plan by a 4-1 vote, with Ramsey opposed.
The auditor’s office also reviewed DEMA billings for a 2022 contract with Harris County to run its SmartPod Services Program, which aims to bring mental health resources to underserved parts of the county. There were at least four instances of double billing with Harris and Sonoma counties under the SmartPod program, auditors found.
The auditor’s review was prompted by a Waste, Fraud and Abuse complaint triggered by Sonoma County, which contacted Harris County officials in April about the possibility DEMA was double-billing both jurisdictions.”
While operating their ‘for profit’ entity, DEMA has simultaneously operated a non-profit affiliate. The media has made zero mention of this and there is no record of the monies received.
CA District 2 Congressional Candidate Chris Coulombe recently discussed homeless monies with the Sebastopol Times:
“The state of California has spent $24 billion on homelessness over the last five years. Why has the problem of homelessness not been improved upon in a substantial way, even though there has been so much taxpayer money thrown at it?
What happens if we solve homelessness? That person who’s making $200,000 to be the executive director of a nonprofit that barely does anything—why would they want to solve homelessness? So the priorities are skewed. You’ve got the government who basically has the perfect marketing pitch and emotional appeal for us to do something to serve and save our fellow humans. We can solve homelessness, but instead homelessness blows up. The government has no interest in solving problems, because, if it solves the problem, it has to find a new reason to exist.”
My sentiments surrounding the homeless monies echo those of Candidate Coulombe. If elected officials and staff were not receiving financial kickbacks, why were they so eager to approve DEMA for no-bid contracts in both California & Texas?
“Those who trust in their riches will fall, but the righteous will thrive like a green leaf.”
-Proverbs 11:28