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Series: CARES Act Funds

Orange County Officials Disclose More CARES Act Spending, Offer First Public Update on Millions in Secret Contracts

JULIE LEOPO, Voice of OC

Anaheim super testing site on Aug. 12, 2020.

By Nick Gerda Nick Gerda | January 28, 2021
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Orange County officials, in response to questions and ongoing news coverage from Voice of OC, this week publicly summarized hundreds of millions of dollars in federal coronavirus response money – much of it through contracts approved in secret.

In response to Voice of OC’s reporting on the records released so far – which showed more CARES Act spending on sheriff staff than health workers – officials publicly acknowledged spending another $140 million on contractors with the Health Care Agency.

“The vast majority of the spending on public health [has] been the service contracts,” county CEO Frank Kim said at county supervisors’ regular meeting Tuesday, after public questions and at the prompting of Supervisors’ Chairman Andrew Do.

Many of those contracts have been signed privately by Kim and other county executives under emergency powers granted to him by county supervisors.

“So all of our testing centers that the residents are getting access to, the additional public health nurses that we’ve hired – those types of contracts we’re doing via a service agreement,” Kim said.

He then publicly noted, for the first time, how much in total CARES Act money the county has spent on public health.

“There was over 220 million [dollars] from the CARES Act that supported the public health response,” Kim said. At least $140 million of it was on contracts, according to information his officer later provided.

Much of that money was approved secretly under the emergency contracting authority delegated by county supervisors to Kim, which he in turn has often delegated to Dr. Clayton Chau, director of the county Health Care Agency.

In ten months of the official pandemic emergency being declared, county supervisors have never held a detailed public discussion about how specifically these monies have been invested.

At a supervisors’ meeting earlier this month, the board’s chairman briefly mentioned that “hundreds of millions” in coronavirus-related contracts have been delegated to county staff to approve without first appearing on public agendas.

“The delegation to [the county] CEO is no different than the emergency delegation that we gave him eight months ago. And he has been doing all kinds of things under our name: testing, healthcare, housing,” Do said at the Jan. 12 meeting, while defending the secret approval process for a public relations contract to promote vaccines.

“And so the idea that all of a sudden now – after all that hundreds of millions – that delegating to you the use of a PR firm is so offensive or inconsistent with good governance. I don’t get it,” Do added.

In an interview Wednesday afternoon, Kim said that kind of delegation to staff is crucial to move quickly to get services out during an emergency.

“It’s about expediency. We’re in a crisis, and the reason why those types of options exist within public contracting is to – [the] most quickly as possible, during a period of emergency – respond to a crisis,” Kim told Voice of OC.

“Imagine the typical government contracting policy, if you follow all the rules it would take you 6 months to 9 months to issue a contract. It would not be appropriate for the public to wait 6 to 9 months for a new nurses contract” to come online, or testing at the fairgrounds, he said.

“All those things to expedite the timing, to serve the public. On these rare occasions, the board will delegate that authority to me. And that is the same in every other large [county] that I’m aware of.”

As for why such contracts have not been disclosed publicly on board agendas – even after they’re signed – Kim said he does do overall briefings on coronavirus response during board meetings and to individual supervisors’ offices, which typically do not get into the details of contracts.

“I don’t know that it’s that secretive. I have conversations with the board publicly about what we’re doing in our response to Covid,” Kim said, adding he also has a board subcommittee and briefs board offices monthly. All of those meetings are out of public view.

“We’re having dialogue regularly. But it’s not fair to say that the board members absolutely understand the name of every vendor or the exact terms and conditions of every contract,” Kim said.

“And that is what has been delegated to me. And I’m very careful with that, and I don’t want to misuse that authority, because it is an incredibly important component of how government works. And I think you’re right that there is an importance and a reason for that transparency. But there’s also a need, in a time of crisis, to work as quickly as possible.”

Voice of OC has filed a Public Records Act request for the secretly-approved contracts.

So far, in response to prior requests from Voice of OC, county officials have provided a list of how much CARES Act money went to each contractor, which did not include details about what the contractors did for that money.

In response to a follow-up request this month, county officials provided brief summaries of what the top 11 vendors did for the funds.

And on Wednesday, Kim’s office provided a summary of CARES Act spending on public health, which showed millions of dollars in broad categories like “Public Health Expense” and “research.”

Voice of OC asked follow-up questions early Wednesday afternoon seeking more detail on what the money went towards. Answers weren’t provided as of the end of the day.

In his public comments Tuesday, Kim pushed back on the notion that the county spent more CARES Act money on sheriff staff than public health workers.

“So if you’re looking at straight salaries, the sheriff have more staff that are in jails, they’re operating our [emergency operations center],” Kim said.

“From a public health side, most of it is done through contracts.”

Until his then, the only department-by-department spending breakdown the county had released showed $93 million on payroll at the Sheriff’s Department and $58 million on payroll at the Health Care Agency.

Nick Gerda covers county government for Voice of OC. You can contact him at [email protected].

How can I sign up for a vaccine?

For full details on the COVID-19 vaccine in Orange County view our Voice of OC vaccine page that is constantly updated and has links of where to register for an appointment: http://bit.ly/occovidvaccine.

What is COVID-19? Do I have it?

INFORMATION View the CDC website. View OC's website. View the latest OC case counts.

TRANSLATIONS See the county's guides in non-English languages. Learn key Coronavirus facts in Vietnamese and Spanish via VietRise. See VietRISE guides in Spanish and Vietnamese.

PROTECTION To limit exposure, the CDC recommends: wash your hands often, avoid close contact with others, cover your mouth and nose with a cloth mask when around others, cover coughs and sneezes, clean and disinfect frequently touched surfaces.

SYMPTOMS The CDC identifies these key symptoms that can occur any time between 2 and 14 days after exposure: Fever or chills, cough and shortness of breath or difficulty breathing, fatigue, muscle or body aches,  headache, new loss of taste or smell, sore throat, congestion or runny nose, nausea or vomiting or diarrhea. If you suspect Coronavirus, CALL your primary medical provider.

EMERGENCY SYMPTOMS If you display any of the following emergency warning signs, seek immediate medical attention: difficulty breathing or shortness of breath, persistent pain or pressure in the chest, new confusion or inability to arouse, or bluish lips or face.

RISK The CDC identifies people most at risk for serious illness: Older adults, and people who have serious chronic medical conditions such as heart disease, diabetes and lung disease.

What is open?

RESIDENTS The County of Orange offers a list of notices and news on what guidance is given for families and persons.

SCHOOLS The latest information for the county is available from the Orange County Board of Education.

STATE GUIDE TO WHAT IS OPEN A full list of statewide guidelines for what is open and what is closed.

SOCIAL DISTANCING Staying away from other people is called "social distancing." The aim is to SLOW the spread of Coronavirus so as to not overwhelm the nation's health care systems and so that people in need can get help. The Washington Post explains: "The spread (of COVID-19) can be slowed, public health professionals say, if people practice "social distancing" by avoiding public spaces and generally limiting their movement."

What support is available?

STRESS & ANXIETY Stress and anxiety can be triggered by the situation and resources are available to help from the Anxiety and Depression Association of America and from the American Psychology Association. Concern over this new virus can make children and families anxious, here are tips on talking with children about COVID-19.

MENTAL HEALTH The County of Orange offers a list of available mental health support services.

FIRST RESPONDERS The County of Orange offers these support services for first responders and health care workers.

BUSINESSES & ORGANIZATIONS The County of Orange offers a list of up-to-date guidelines for business and faith-based/community organizations.

FOOD ASSISTANCE Voice of OC offers a weekly list of available food pantries in Orange County. You can also apply for food benefits over the phone through the CalFresh program at 800-281-9799 or online.

PUBLIC TRANSPORTATION Buses and trains still offer service, but routes have been reduced so make sure to check your route ahead of time.

HOMELESSNESS The County of Orange offers a list of available shelter beds and other resources.

GENERAL FINANCIAL HELP Here are some services:

  •   • Find information on unemployment and disability benefits.
  •   • The Orange County Social Services Agency, despite closing its lobby, is processing online filings for assistance programs. This includes emergency cash assistance for immediate needs like rent or medical bills. The phone line has averaged a 30 minute wait time and offers a callback service, but people are encouraged to apply for benefits online.
  •   • Residents can apply for any of these programs by calling 800-281-9799.

RESTAURANT OWNERS & EMPLOYEES You can find a detailed list of resources available to restaurant owners and employees

How can I help?

VOLUNTEERING A statewide guide offers examples of ways to volunteer safely during Coronavirus. Options include, but are not limited to: donating plasma, making cloth face masks and supporting local food banks. Orange County's Second Harvest Food Bank lists support options online.

DONATIONS An Orange County Community Resilience Fund has been started through the OC Community Foundation to raise money for local nonprofits and volunteer organizations.

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SUBTOPICS:
  • Countywide
  • Housing & Homelessness
  • Top Stories
  • Andrew Do
  • CARES Act
  • Frank Kim
  • Orange County Coronavirus
  • Orange County Health Care Agency
  • Series: CARES Act Funds

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    While county supervisors have gotten monthly lists of such contracts, the public has not – until now.

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