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Nonprofits urge Sonoma County supervisors to fix contracting delays, seek 15% federal indirect rate
Summary
Behavioral health and social-service nonprofits told the Board of Supervisors that late payments, complex invoicing and low indirect rates are threatening service continuity; speakers asked for county direction to pay on prior-year contract terms when renewals lag and to adopt a 15% federal indirect rate.
Several dozen nonprofit leaders and program directors pressed the Sonoma County Board of Supervisors on Tuesday to change county contracting and payment practices they say are destabilizing core services.
Speakers from West County Community Services, Community Support Network, Progress Foundation and others described late reimbursements, burdensome invoice requirements and an indirect cost policy that leaves nonprofits unable to recoup administrative overhead. "Payments based on prior year terms will prevent service interruptions and provide much needed financial stability," said Christy Davila, executive director of West County Community Services.
Davila told supervisors her agency faced laying off more than 50 employees after paying out nearly $1 million without reimbursement this year. Several other speakers praised recent interim measures by county staff that temporarily mirrored prior-year payment terms but said those fixes were described to them as one-time solutions.
Common requests from the nonprofit speakers:
- Direct county departments to keep payment flowing at the start of fiscal years when renewal contracts are delayed, using prior-year terms. - Simplify monthly invoicing and eliminate audit-level monthly expense detail that nonprofits say costs tens of thousands of dollars annually. - Adopt the federal 15% indirect cost rate across county contracts so agencies can cover administrative costs. Progress Foundation's director of operations said implementing the rate would free an estimated $72,000 a year for her organization.
Why it matters: County-funded nonprofits provide behavioral health, youth and housing services that supervisors described as essential. Supervisors and county staff said they are aware of the issue; Chair Hopkins and Supervisor Rabbit acknowledged work already under way and asked staff to report back.
Board response and next steps: Supervisors expressed support for addressing the complaints but noted legal and procedural constraints around some contracting rules. Supervisor Rabbit and others asked county leadership to discuss options with the auditor-controller and other departments; Vice Chair Hermosillo and Supervisor Corsi asked staff to prioritize a review of procurement and payment timelines. The board did not adopt a specific policy or funding change at Tuesday's meeting but directed staff to explore remedies and report back.
Public testimony also urged the board to expedite opioid settlement funds for behavioral-health services and to consider how any living-wage changes to the county's contracting rules would affect nonprofit budgets.
Ending: Supervisors told nonprofit leaders they would pursue an internal review and return with recommendations; no appropriation or ordinance was adopted at Tuesday's meeting.
