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Council approves $15,000 CDBG agreement with McCrest; staff explains reimbursement model, resident raises questions
Summary
The Warren City Council approved a $15,000 CDBG-funded agreement with McCrest to reimburse hotel nights used for sheltering; staff said the model mirrors Turning Point arrangements and the contract is effective Oct. 1, 2024. A resident urged more vetting and raised conflict-of-interest concerns.
The Warren City Council on Jan. 28 adopted a resolution approving an agreement between the city and McCrest using Community Development Block Grant (CDBG) funds in the amount of $15,000 to reimburse actual costs for nights of shelter housed in hotels.
Councilmember Mindy Moore, serving as council secretary during the meeting, called the item for consideration and the council approved the motion unanimously.
Nut graf: City staff told the council the agreement changes how the city reimburses shelter providers: instead of trying to calculate an all-in cost per shelter night (staff said that is cumbersome for HUD documentation), the city will reimburse McCrest for actual hotel-night invoices for residents the provider places into hotels. Staff said the approach mirrors the city’s current model for Turning Point and that the dollar amount matches prior yearly allocations.
Staff explanation and contract timing City staff explained the agreement had been negotiated over several months and is not connected to other recent emergency actions the council discussed. A staff member said the city’s approach is to reimburse McCrest for documented hotel nights rather than attempt to calculate an overhead-inclusive per-night shelter cost for HUD accounting. "If you house someone in a hotel, what is that actual cost and what was incurred by McGrath? We can get an invoice, and we can reimburse them for those actual costs," staff said, describing the same model used for Turning Point.
Staff also told the council the contract was negotiated after the prior contract ended Sept. 30, 2024; the proposed agreement is effective Oct. 1, 2024 through Sept. 30, 2025. Councilmember Boiecki asked if any funds had been paid already; staff replied, "No. The contract hasn't been executed, so no funds are transferred."
Public comment and council response During public comment, resident Laurie Harris raised concerns about perceived "inappropriate relationships" between McCrest and a named individual and said the $15,000 allocation was "completely unnecessary and unacceptable." Harris asked why the agreement had moved from draft to review and signature in a two-week period and urged the council to ask more questions before approving funding. Her remarks were entered into the public-record portion of the meeting.
Council action and clarifications Councilmembers asked questions about historical allocations (staff said the annual amount to McCrest from CDBG has been "about 10 to $15,000") and whether the city could ensure funds were used for Warren residents. Staff explained that reimbursement eligibility is tied to last-known address and that the city can require documentation to confirm use for Warren residents. City legal/administration staff advised council that the body can approve a contract effective Oct. 1 with expenses reimbursed once council approves the agreement; staff confirmed that no funds had been disbursed before council action.
Ending: Staff will execute the agreement and process reimbursements via the city's regular CDBG procedures; council members asked that the city continue to monitor eligibility and documentation for reimbursements to ensure CDBG compliance.
