Thurston County commissioners pause contracting with Community Action Council amid recoupment, send recommendations back to Regional Housing Council

Thurston County commissioners on the afternoon agenda paused a staff plan to proceed with contract development for three recommended Community Action Council (CAC) awards and directed staff to return the applications to the Regional Housing Council (RHC) for reconsideration while county legal and audit teams complete further review.

The RHC recommended three awards to CAC at its April 9 meeting: $72,700 for basic-needs activities (hygiene and household supplies, emergency hotel stays, car repairs), $328,000 for an eviction-prevention rent assistance program aimed at single adults, seniors and veterans, and $5,000 for diversity, equity and inclusion training and support. Staff had planned to bring contracts to the Board for approval at the June 17 meeting.

The board’s decision to delay contracting stems from lingering concerns about a prior county recoupment tied to federal and state funds administered through CAC. Commissioners said they wanted additional review by the Prosecuting Attorney’s Office (PAO) and the internal auditor, and they noted the county has received a letter from CAC’s insurance carrier disputing whether the carrier must cover the recoupment exposure. County staff said Brandon Weber (internal auditor) and the PAO have been involved in examining insurance and contract language; auditor Mary Hall provided documentation that has been shared with the PAO and with CAC’s new executive director, Justin Defour.

Commissioner Mejia, Thurston County Board of County Commissioners, said she had “a lot of hesitance” about moving forward with new contracts for an organization that remains the subject of historical recoupment and audit scrutiny. Commissioner Fournier, Thurston County Board of County Commissioners, also said he was not comfortable entering new contracts while legal issues remain unresolved. Commissioner Grant asked whether other providers applied to serve single adults; staff said Family Support Center and Community Youth Services applied for family and youth populations while Partners in Prevention Education (PIPE) applied for youth but staff and the Homeless Services Advisory Board lack confidence in PIPE’s capacity for the single-adult population. Commissioners noted Catholic Community Services and other providers might be able to respond if the RHC reissued or broadened outreach.

Several commissioners asked staff to provide a clear list of what contract language and monitoring practices have changed since the earlier recoupment, including whether contracts still carry a “high risk” designation that previously discouraged CAC from signing. Tom (county manager) and public health director Dr. Jen Fryhite said contracts are being updated and that staff will prepare a comparison showing prior contract provisions and current, tightened language and monitoring safeguards. Staff told the board they will not yet insert contested language into any contract because the team is not at the contract stage.

The board gave the following direction: staff will return the three CAC applications to the Regional Housing Council for reconsideration so the RHC can pursue alternatives before June; staff will bring a follow-up briefing to the board that includes the PAO and the internal auditor on the CAC status and on general contract-monitoring improvements; and staff will prepare a matrix showing how contracting practices and monitoring safeguards have changed since the earlier recoupment. Commissioners emphasized that returning the recommendations to RHC is meant to give the RHC time to identify an alternate provider if necessary, and that the county is seeking to balance urgent service needs (eviction prevention for seniors, veterans and single adults) with stewardship of public funds.

The meeting record shows no final contract approvals or votes on these three proposed awards. The board’s direction means the RHC will need to reconvene to find alternatives or to provide additional justification if the county ultimately approves CAC contracts.

Community Action Council, Regional Housing Council and county staff will continue work on this item; staff said if the board later approves a contract the PAO will review the final contract language before execution.