OC Secret Settlement with Pandemic Meal Providers Cost Taxpayers Over $9 Million 

County leaders softly settled a quality with 2 of their largest nonprofit repast providers past twelvemonth – 1 that ended up costing taxpayers implicit $9 cardinal and ne'er got publically discussed. 

It’s the 2nd clip successful 2 months that Orange County leaders person faced questions implicit however good they oversee contracts amidst a suit with a antithetic nonprofit that region attorneys accidental embezzled implicit $10 cardinal meant to spell toward feeding seniors. 

The contention is fueling ongoing concerns astir the deficiency of section oversight of national COVID funds handed retired by the County of Orange, with immoderate region supervisors present calling for an audit of implicit $200 cardinal successful spending.

In addition, issues similar this are besides triggering questions astir the deficiency of immoderate nationalist treatment oregon transparency astir declaration challenges wrong the $9.5 cardinal region bureaucracy. 

It’s besides driving a caller accent by region supervisors to person each ongoing declaration disputes publically disclosed successful existent time. 

[Read: Santana: Are Reforms and Transparency Coming to Orange County?]

Meals connected Wheels OC and AgeWell Senior Services some got hired by the County of Orange successful 2020 to supply meals to seniors during the COVID-19 pandemic done a statewide programme dubbed Great Plates that was yet reimbursed with national funds. 

“When Great Plates Delivered was announced by the State, it was a framework, not a program,” said Holly Hagler, Meals connected Wheels OC’s CEO, successful a May 2020 property release. “We person present turned a conception into a viable programme that helps older adults successful our community.” 

The 2 nonprofits received astatine slightest $61 cardinal for Great Plates during the COVID-19 pandemic successful contracts approved without a nationalist bid oregon discussion, and region executives planned to wage for them by getting grants from the Federal Emergency Management Agency (FEMA). 

But erstwhile region leaders asked FEMA for reimbursement, the bureau changeable down implicit $23 cardinal successful listed fees, saying the nonprofits hadn’t spent the money. 

“That alerted america and we looked into it,” said County Supervisor Katrina Foley successful a Wednesday interview. “It was determined that the allocation was much than they needed and they had wealth leftover.”

When region leaders asked for the wealth back, AgeWell and Meals connected Wheels denied the request, arguing the declaration fto them support the leftover funds, according to Foley. 

“They were interpreting it arsenic the nonprofit would get to support the wealth – we interpreted it arsenic a reimbursement contract,” said Foley. “It was a declaration that was enactment unneurotic during the pandemic. The connection wasn’t arsenic choky arsenic galore of america would’ve liked.” 

Ultimately, the region got backmost $14 cardinal from the 2 nonprofits successful a May 2023 settlement, leaving the nonprofits with astir $9.4 million, with some sides signing a ineligible statement agreeing not to speech astir the issue. 

“The beingness of this agreement, and each presumption and accusation contained herein, shall beryllium kept confidential by the Parties,” reads the agreement, noting respective exemptions including the California Public Records Act and a tribunal order. 

Voice of OC obtained the statement via the California Public Records Act. 

To reappraisal a transcript of the settlement, click here. 

The region besides agreed if they managed to recoup costs successful an entreaty to FEMA, thing supra $9.4 cardinal would spell to the nonprofits. 

Supervisor Vicente Sarmiento praised the colony successful a abbreviated connection Wednesday evening. 

“As portion of anticipated litigation, the County negotiated with the vendors progressive and agreed to a colony connection that returned 14 cardinal dollars to the County. I was pleased that the vendor and the County were capable to resoluteness this contract,” Sarmiento said. 

Darla Olsen, Meals connected Wheels OC’s Vice President of Advancement, said they told region leaders arsenic aboriginal arsenic July 2020 that they were “deriving important nett proceeds,” from their contracts, claiming region leaders told them to support utilizing the wealth to supply meals. 

“In December 2022, the County requested that alternatively of utilizing the further funds for elder meals and services, Meals connected Wheels OC should alternatively instrumentality the excess revenue…so that the wealth could beryllium utilized to conscionable different region needs,” Olsen wrote successful a Wednesday statement. 

“This resulted successful a quality that was settled without request for litigation,” she continued. “Meals connected Wheels OC was capable to clasp definite funds that are inactive being utilized to supply meals.” 

In a connection to Voice of OC, AgeWell CEO Steve Moyer highlighted serving implicit a cardinal meals to seniors done the Great Plates program, but did not reply questions astir the county’s request for the instrumentality of $23 million. 

“Age Well remains profoundly committed to its decades-long concern with the County of Orange,” Moyer wrote. “We are arrogant of our past, present, and ongoing efforts.”  

Foley said the region permanently changed its contracting policies aft the lawsuit. 

“The connection of each of our contracts has been changed to marque definite that erstwhile it’s a reimbursement declaration that it’s wide to the vendor they’re lone getting paid what they tin beryllium they spent,” Foley said. “Then there’s a percent successful our contracts present that intelligibly itemizes the magnitude you tin usage for administrative costs.” 

“I judge that connection was not wide oregon missing,” she continued. “Their presumption was this was each administrative costs.” 

In the settlement, each sides agreed to not fto the contented interaction aboriginal contracts. 

“The County agrees to not clasp the GPD quality against the Charities arsenic a antagonistic origin successful region procurement decisions,” the colony states. “The GPD quality volition not beryllium utilized by the County to enactment a uncovering of a deficiency of contiguous work oregon integrity by either Age Well oregon Meals connected Wheels.”

However, erstwhile the adjacent AgeWell declaration came up conscionable a fewer months later, Supervisor Don Wagner did rise complaints. 

“This is not our archetypal rodeo with Age Well. Why would you bring america an Age Well contract?” Wagner asked region unit publically from the dais astatine the time. “You’re going to enactment america successful a presumption that we person to accidental yes to this peculiar vendor with whom we person acquisition astatine the hazard of our public. That is simply a horrible presumption for you to enactment america in.” 

[Read: OC Officials Reluctantly Contract With Elderly Services Provider Behind connected Old Goals]

The declaration quality isn’t the lone precocious illustration declaration quality kept concealed astatine the County of Orange – a longtime tendency. 

To date, astir of the nationalist absorption has been connected the Viet America Society, a nonprofit region leaders allege embezzled implicit $10 million meant for meals for seniors that was alternatively spent connected things similar buying houses for its leadership, which included County Supervisor Andrew Do’s daughter. 

After region leaders announced that suit, the FBI and IRS raided Do’s location and his girl Rhiannon’s home. No transgression charges person been filed and some person declined to remark astir the issue.  

[Read: FBI Executes Searches connected OC Supervisor, His Daughter & Others successful Missing COVID Money Case]

Most recently, region leaders besides abruptly took implicit different contracting effort – a multi-million dollar declaration with the Be Well nonprofit for intelligence wellness services that accidental has not achieved its people aft years of questions implicit what the enactment was doing. 

[Read: Orange County Drops Contract with Flagship Mental Health Nonprofit After Failed Audit]

Foley stressed the 2 elder repast contracts were precise antithetic situations from Viet America Society, highlighting however Meals connected Wheels and Age Well had some been capable to beryllium they aided seniors. 

“The bottommost enactment is this was a declaration dispute,” Foley said, “They didn’t bash thing incorrect successful presumption of not providing the services.”

Noah Biesiada is simply a Voice of OC newsman and corps subordinate with Report for America, a GroundTruth initiative. Contact him astatine [email protected] oregon connected Twitter @NBiesiada.

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