Commission asks council for program audit after CityNet raises contract payment concerns

The Public Safety Commission voted Monday to ask the City Council—via an advisory memo—to request a program audit of Redondo Beach’s enhanced response to homelessness. The motion follows concerns raised by CityNet, a local outreach subcontractor, which reportedly received a voicemail after a council vote indicating it would not be paid despite work performed in July.

Commissioners said they were concerned by several facts discussed during the meeting: that CityNet’s contract had, according to participants, an end date of June 30; CityNet received a voicemail after a July 1 council vote stating there was no more money to pay them; and the commission had earlier been told the program had raised substantial funds (speakers referenced $14,000,000 raised overall and an allocation from HealthNet of $1,500,000, with $500,000 noted for a pallet‑shelter expansion). CityNet told commissioners it continued outreach through June and into July and sought payment for work done during the transition.

Commissioners expressed concern about where fundraising dollars were allocated, whether the enhanced‑response program had a clear program manager home after council changes, and what would happen to CityNet staff and ongoing outreach operations if subcontractors are not paid or the program is discontinued.

The commission approved an advisory memo asking council and Budget & Finance to conduct a program audit that would document the program’s start and sunset dates, funding sources and expenditures, service outcomes and lessons learned; commissioners asked the memo to include questions about whether the city’s ‘functional zero’ designation (if applicable) would be affected.

Ending: The advisory motion passed by voice vote. Commissioners said the audit would help the city, the commission and the public understand where funds went, what services continued and how to preserve effective elements of the program.