Placer County outlines homelessness funding, directs staff to negotiate shelter contract updates amid scrutiny of provider

Placer County officials gave the Board of Supervisors a wide-ranging briefing on homelessness programs, funding sources and outcomes on Feb. 18, and the board voted to direct staff to renegotiate terms for the county’s mid-Placer shelters and to continue participating in regional planning.

The presentation, led by Jeff Merriman of the county CEO’s office and Dr. Rob Oldham, director of Health and Human Services (HHS), summarized county general-fund spending for homelessness (about $5.7 million annually) and state and federal programs (roughly $12.9 million described in the presentation) that support permanent supportive housing, case management, prevention, vouchers and other services. Merriman said staff sought preliminary guidance on adjustments to county-funded programs.

The briefing emphasized outcomes for different parts of the homelessness response: permanent supportive housing showed the strongest long-term housing retention, while congregate and mobile temporary shelters produced higher exit rates back to homelessness but reduced public-safety and public-health impacts in concentrated areas, staff said. Dr. Oldham noted county point‑in‑time counts had declined slightly since 2020, contrasting with statewide trends.

Public comment included dozens of speakers. Some residents, community groups and civic organizations — including representatives from Rotary clubs and the Gathering Inn — praised the county’s shelter operators and volunteers for moving people into housing and for local fundraising that supplemented contracted services. Nick Golling, chief program officer for the Gathering Inn, said his agency served 6,609 unique individuals across shelters and medical respite in fiscal 2023–24 and reported 199 exits to improved housing, including 119 to permanent destinations.

Other members of the public and several board members urged more transparency and independent review. Nellie Collins urged an external audit and said the county should re-bid contracts, arguing local nonprofits with legal or reputational problems should not receive county funding. Several supervisors and public commenters also raised concerns about a privately operated medical respite proposal in Lincoln and whether that location had been properly vetted and communicated to neighbors.

Supervisor Cindy Gustafson moved that staff start negotiations for an amended or new contract with the current shelter provider for the Mid Placer shelters to refine admissions and exit criteria, program requirements and administration; Supervisor Jim DeMartte seconded. The board approved the motion. The board also approved a separate, related motion to continue regional coordination and pursue additional shelter and permanent supportive housing sites with partner jurisdictions.

Board and staff discussion reiterated several policy questions for future negotiation: whether shelter admission residency or sobriety criteria should change, limits on length of stay, stronger performance metrics and “pay‑for‑performance” provisions in HHS contracts, and options for more competitive procurement for future capital and operating projects. Dr. Oldham and Raul Martinez (HHS assistant director) described the county’s existing contract monitoring and said contract invoices are compared to scopes of work and county staff maintain the right to audit.

Ending: The board asked staff to return with draft contract language and a plan for performance metrics, residency criteria, enforcement of shelter rules, and a communications plan for surrounding communities. Supervisors also requested periodic financial reporting so residents can see how paid and grant funds used in the homelessness response are allocated.