[0:08] The AUGUST 25th, 2026 Committee [0:10] on. Thank you. Colleagues, for [0:10] joining us on today [0:11] s agenda. [0:11] We [0:12] ll have discussion about [0:13] possible action and appointment [0:15] to the Landmarks Commission. We [0:16] will then have an initial [0:18] briefing on the King County [0:21] 2026 2029 Equal Employment [0:23] Opportunity Affirmative Action [0:23] Plan, but we [0:24] re going to defer [0:25] action until a future meeting. [0:26] i [0:27] ll explain a little bit about [0:28] why. And then finally, we [0:28] ll [0:30] have a briefing from staff from [0:30] the executive [0:32] s office and from [0:33] the King County Regional [0:34] Homelessness Authority on the [0:36] case here. Contract transition [0:37] plan and the Corrective Action [0:39] Plan, and will consider taking [0:41] action on a motion accepting [0:43] the executive report with that [0:45] introduction. Clerk, will you [0:46] please call the roll? [0:48] Thank you. Chair. Councilmember [0:50] Balducci. Councilmember [0:54] Dembowski. Councilmember Dunn. [0:55] Councilmember Fain. [0:57] Councilmember Lewis. Here. [0:59] Councilmember. Mosqueda. Here. [1:01] Councilmember. Perry. [1:04] Councilmember von Reichbauer. [1:04] Chair. [1:07] Button here. And we do have a [1:08] quorum of the committee. Thank [1:11] you. Uh, vice chair. Well, [1:12] Council vice chair Dunson is [1:13] our vice chair of the [1:14] committee. Is not here. MAY I [1:15] have a motion for approval of [1:17] the minutes of the JUNE 23rd, [1:19] 2026 meeting? Move. Approval. [1:20] Thank you. Any questions? [1:22] Concerns? Comments regarding [1:23] the minutes? All right. All [1:24] those in favor of approving the [1:25] minutes, please say aye. Aye [1:28] aye. Any opposed? Say nay. The [1:30] meeting minutes are approved. [1:31] We will now turn to public [1:33] comment. If anyone has joined [1:34] us on zoom and would like to [1:35] provide public comment, please [1:36] use the raise Hand function or [1:37] press star nine. If you have [1:40] joined by phone. I do believe [1:41] we have some folks in public [1:42] provided public comments, so [1:42] i [1:44] ll read the the rules on [1:46] that. Uh, public comment must [1:47] be related to items on today [1:47] s [1:49] meeting agenda and not be used [1:50] for the purpose of assisting a [1:51] campaign for election of any [1:52] person to any office, or for [1:54] the promotion of our opposition [1:56] to any ballot proposition. It [1:58] must also not include obscene [1:59] speech. If a speaker fails to [2:00] abide by these restrictions, I [2:01] will rule the speaker out of [2:02] order and have the speaker [2:04] removed from the meeting. You [2:05] will have two minutes to speak [2:06] and you will hear a timer go [2:07] off. You can finish your [2:08] thought, but please wrap up [2:10] your comments. If you go much [2:11] past two minutes you MAY be [2:13] muted. We will begin by calling [2:14] on the people who have signed [2:15] up to speak in person. If [2:15] you [2:16] re providing comment [2:17] remotely, please listen to the [2:18] meeting on the zoom call until [2:20] you hear your name called. [2:21] Clerk will you please call on [2:22] those who are with us in [2:23] person? [2:25] Thank you. Chair. Yes. Kevin. [2:29] Altamira, please. [2:31] Welcome. Chair. Kevin Alzheimer [2:33] here to speak on affirmative [2:34] action, which is a very [2:36] significant thing in our [2:38] society, especially in the [2:41] communities of people of color. [2:43] Uh, as you know, in your audit [2:45] of last year, there was a real [2:47] affirmative action issue. You [2:49] had an auditor who went outside [2:50] of the scope, and you guys know [2:52] better. And then you also had a [2:55] situation where on APRIL the [2:58] 15th, uh, uh, Rod Dembowski met [2:59] with, uh, uh, what [3:00] s her name? [3:03] Lula Ramadan. Seattle Times. [3:05] And she said, hey, uh, rod, it [3:07] looks like, uh, Yolanda McGhee [3:10] did have an approval in a, in a [3:12] in, uh, Thomas Burlington did [3:14] not rule against her for [3:16] ethics. So then what does he [3:18] do? He sends her follow up [3:19] emails and says, look, I [3:19] ve [3:22] been trying to get the the [3:22] inspector general [3:24] s office for [3:26] since 2023. So I got his email. [3:26] So I [3:28] m just fair phrasing. So [3:30] this is how affirmative action [3:31] works. So you have people like [3:32] him who does what he does. Then [3:34] you have people like Kelly [3:36] Rider, a woman who was kicked [3:38] out of here because she said [3:39] there was no money missing in [3:41] dhhs. And she also said that [3:43] the family did not commit any [3:44] ethics violation. You know, [3:46] that ethics violation thing [3:47] goes two ways. It says the [3:49] county has a responsibility. So [3:50] on APRIL 9th, when Jennifer [3:52] Tanaka found out that the [3:54] actually in 2023, she found out [3:55] that the family dynamic was [3:56] there, she checked with Thomas [3:57] Burlington. He said there [3:57] isn [3:59] t. Then what happened? It [4:00] went to Megan. Those guys took [4:02] it to the state auditor. State [4:04] auditor to throw it away. Do [4:05] you know, last week, a judge [4:07] ruled against King County in [4:09] her unemployment case and said [4:11] that King County should never [4:13] put her on paid leave or [4:15] violated her rights by bringing [4:18] in an unsolicited document and [4:20] claiming that it was truth. So [4:21] what we have in this audit at [4:23] King County Oversight found [4:25] substack.Com, everybody [4:26] s act. [4:26] I don [4:28] t bring opinions. I show [4:30] you exactly what you did. [4:31] Thank you. Thank you. Clerks, [4:32] do we have anybody else signed [4:35] up in person? [4:36] Not in person, not in person. [4:36] All right. Let [4:40] s go to online. [4:44] Next week, I, Nicole Fillmore. [4:49] Welcome. [4:50] Hello. My name is Nicole [4:53] Fillmore, and I am I work for [4:54] coordinated entry for Csra [4:55] members of the council. I [4:56] m [4:57] speaking today on behalf of the [4:59] represented workers at King [5:00] County Regional Homelessness [5:01] Authority. We [5:01] re appearing [5:02] before you with the clear, [5:04] urgent message. The regional [5:06] approach to ending homelessness [5:08] in King County is worth saving, [5:09] and the front line workforce [5:11] doing this daily work is fully [5:12] committed to making it succeed. [5:14] When regionalism was [5:15] established, it was in response [5:17] to the fundamental truth that [5:18] our unhoused neighbors and [5:20] service networks do not stop at [5:22] municipal borders. Overcoming [5:24] this crisis requires regional [5:25] alignment, driven by commitment [5:27] and powered by experience. [5:29] While headline coverage focuses [5:31] on political friction. Behind [5:32] that noise, our small, [5:34] dedicated staff continue to [5:35] build and maintain the [5:37] essential operational machinery [5:39] of this response system. Our [5:41] Continuum of Care team secures [5:43] millions in federal funding by [5:44] managing the complex annual no [5:47] full competition and oversight [5:49] of the clc funding contracts. [5:50] Our our Severe Weather response [5:51] coordination protects lives [5:53] during extreme weather events. [5:55] Our independent Ombuds office [5:57] ensures consumer dignity, [5:58] accountability and grievance [6:00] resolution. Our Coordinated [6:01] Entry team manages the direct [6:03] front door to the system, [6:04] ensuring equitable access [6:07] across all jurisdictions. Our [6:08] research and data team manages [6:10] this uses regionally unified [6:12] open data to produce real time [6:14] by name lists and provides [6:15] critical data governance for [6:17] the entire system. Our programs [6:19] division provides day to day [6:21] contract monitoring. Um [6:23] partnering to ensure contract [6:25] compliance and quality by [6:26] providing technical assistance, [6:27] support and training to [6:30] contracted providers. Our [6:31] compliance contracts and [6:32] finance teams manage millions [6:34] in funding, develops and [6:36] executes contracts, ensures [6:37] adherence to funder guidelines, [6:39] leaves lease comprehensive [6:41] monitoring processes and [6:42] reviews invoices in due [6:45] diligence documentation. We [6:46] live and breathe this work [6:47] every single day. We [6:48] re not [6:49] political maneuvers. We are [6:53] civil servants. [6:55] Thank you. Nicole. On the next [6:56] person. [7:00] Next, we have Haley Willis. [7:01] Welcome. [7:03] Good morning, Council members. [7:04] My name is Haley Willis with [7:05] the Seattle King County [7:07] Coalition on Homelessness, [7:09] commenting on the transition [7:10] plan for locally funded [7:12] homelessness contracts on [7:14] behalf of more than 50 member [7:16] organizations who house shelter [7:17] and care for people [7:18] experiencing homelessness all [7:20] over King County. We appreciate [7:20] the executive [7:21] s and the [7:21] Council [7:22] s careful attention to [7:24] maintaining the stability of [7:25] our homelessness response [7:26] system. It [7:27] s incredibly [7:29] important that nobody loses or [7:30] experiences a gap in the [7:32] housing, shelter or essential [7:34] services they rely on every [7:36] day, especially in light of [7:38] ongoing uncertainty with [7:39] federal Continuum of Care [7:42] funding. Our community has led [7:44] the way in adopting evidence [7:46] based approaches that recognize [7:48] that people need a safe place [7:50] to live as a foundation to heal [7:52] and thrive. Thanks to these [7:54] evidence based practices, our [7:56] community successfully helps [7:57] thousands of people get a [7:58] stable home and leave [8:00] homelessness every year. As [8:02] King County and Seattle resume [8:04] management of locally funded [8:06] contracts, we urge you to [8:07] continue to keep best practices [8:10] and regional collaboration at [8:11] the center of your efforts to [8:13] bring more people home. Thank [8:14] you. [8:16] Thank you, thank you. Next is [8:27] Ryan Collin. [8:30] Welcome, Ryan. Go ahead. [8:31] Okay. Thank you. My name is [8:32] Ryan Talon. I [8:33] m a registered [8:34] nurse and I live in district [8:36] eight. I do not work for Kcra. [8:36] I [8:38] m here as a taxpayer. The [8:40] Kcra ceo, Kelly Kennison, [8:43] received $300,000 in public [8:44] funds. Even though the agency [8:45] has millions of dollars [8:47] unaccounted for. To put that [8:49] number in perspective, $300,000 [8:51] of the cost of 2 to 3 nurses. I [8:52] regularly discharge patients in [8:53] a situation where they have no [8:55] support, and the money that is [8:56] meant to address that is going [8:58] toward a salary of a ceo whose [8:59] own governing board [9:00] investigated her and found that [9:01] she retaliated against her [9:04] staff. A forensic audit found [9:05] that the agency under her [9:06] leadership, cannot account for [9:08] millions of dollars. As I [9:09] followed this story in the [9:09] news, I [9:11] ve been wondering when [9:12] will someone be held [9:14] accountable? The ceo retaliated [9:15] against staff who reported [9:16] fiscal concerns, and based on [9:18] reports, she has also skipped [9:19] council briefings about the [9:21] audit. I want to ask, is this [9:23] what my taxpayer dollars pay [9:25] for a ceo who appears unable to [9:26] account for significant public [9:27] funds, and who remains in this [9:29] position? Despite these [9:30] concerns, King County asks [9:32] voters to approve levies for [9:34] exactly this kind of work. I [9:36] vote yes every time, but each [9:37] story like this one gives the [9:39] next voter a reason to say no. [9:40] And the people who ultimately [9:42] pay for that are my patients, [9:44] not those in leadership, city [9:45] and county leaders watching [9:46] this MAY conclude that major [9:49] failures will not carry real [9:51] consequences. Staff MAY also [9:52] learn to stay silent when a [9:53] workforce is taught not to [9:55] speak up. The next $13 million [9:56] could go missing. With no one [9:57] left willing to raise the [9:59] alarm. Council members sit on a [10:00] governing board. There is no [10:03] one else to wait for. I ask [10:03] that you hold leadership [10:05] accountable and remove her from [10:07] this position. [10:14] Thank you. Next. Ben Mathewson. [10:17] Hello, my name is Ben Matheson, [10:19] and I am an analyst with Kcra. [10:19] I [10:25] d like to build on what? [10:33] We lost Matthew. Maybe we can [10:35] go to the next speaker if there [10:37] is another commenter. Or if we [10:44] can get Matthew back. [10:46] The next person. [10:49] The next person is Ryan. [10:51] Welcome. [10:54] Hi. Hi. Hi. Hi. Hi. Hi. [10:58] We have a bad, uh, echo. So if [10:59] you could mute that whatever [11:04] other device you have. Now, [11:04] we [11:09] ve lost. Sorry. I also. All [11:12] right, we have you back. [11:14] Hi. My name is Saori Aguilar. [11:15] I [11:16] m with the coordinated entry [11:20] team here at Kcra. And building [11:22] on what my colleague Nicole [11:24] said. Um, we know that public [11:26] confidence in our agency has [11:28] been severely tested by [11:31] executive transitions, audit [11:33] findings, and budget deficits. [11:35] Recently, critics inside and [11:37] now have labeled us as a failed [11:39] experiment. But a staff doing [11:40] the daily work. We ask that you [11:42] look closely at where the [11:44] perception comes from. Partner [11:45] confidence and in our ability [11:47] to deliver results is higher [11:49] today than ever. When people [11:50] read the headline critiques [11:53] about agency mismanagement, [11:53] they don [11:54] t see the staff who [11:56] stay late during severe weather [11:58] activation to ensure shelter [12:00] beds are open, or the program [12:01] managers who have fought [12:02] through housing instability [12:04] themselves to earn graduate [12:06] degrees and return to serve [12:08] their community. Turbulence at [12:10] leadership level MAY conceal or [12:12] distract from our best [12:14] accomplishments, but it cannot [12:15] conceal the competence, [12:17] integrity and dedication of the [12:19] people performing the work. As [12:21] King County navigates severe [12:23] budget constraints, we want the [12:24] Council and the public to [12:26] understand that our workforce [12:27] embodies deep reservoirs of [12:29] institutional knowledge, a [12:31] diverse collection of technical [12:33] and professional skills, and an [12:34] unwavering commitment to our [12:38] unhoused neighbors. Conflating [12:40] top level administrative [12:41] turbulence with frontline [12:43] operational capability is a [12:45] threat to the very expertise [12:46] that our regional response [12:48] infrastructure depends on [12:50] cutting the front line workers [12:52] who manage system access, [12:53] secure federal grants and [12:56] maintain data integrity will [12:57] not solve our regional [12:59] homelessness crisis. It would [13:01] only destroy the institutional [13:03] memory and the operational [13:04] capacity that keeps our [13:06] regional homelessness response [13:09] afloat. Thank you. [13:12] Thank you again, Ryan Talon, [13:17] please can you unmute yourself? [13:19] I think we heard from Ryan. I [13:21] think it was William that we [13:21] skipped. [13:23] Oh, sorry. [13:23] What [13:25] s that? Oh, Ben. Sorry. [13:30] Ben. Ben. Ben, can you unmute [13:32] yourself, please? [13:33] Yes, yes. Hello? Are you able [13:34] to hear me? [13:34] Yes. [13:35] We can. Yes, Ben. We have a [13:36] little bit of an echo, so if [13:37] you have another device, make [13:39] sure you turn that down. But go [13:41] ahead. [13:43] My name is Ben Matthewson. I [13:45] work as an analyst at the kcrw. [13:46] I [13:47] m members of the council. You [13:49] hold a vital role in ensuring [13:50] and shaping the future of [13:52] regionalism in King County. As [13:53] workforce adjustments and [13:54] restructuring decisions occur, [13:56] the central priority must be [13:57] preserving the institutional [13:59] knowledge, lived experience and [14:00] operational capacity that keeps [14:02] this system running. Budget [14:03] reductions are inevitable, but [14:04] protecting frontline [14:06] capabilities, including severe [14:07] weather response coordination, [14:09] data governance and management, [14:10] federal grant administration, [14:11] contract monitoring and [14:13] compliance, system navigation [14:15] and ombuds function is the only [14:16] way to ensure our region [14:17] maintains and continues to [14:18] improve its homelessness [14:20] response. A shrewd, fiscally [14:21] responsible approach to budget [14:22] contractions is one that [14:24] prioritizes direct operational [14:26] value, demonstrating to the [14:27] public that King County values [14:29] frontline competence over [14:30] administrative overhead, [14:32] restores faith in our public [14:34] institutions. Reform is never [14:35] about blindly trimming from the [14:37] bottom up. It is about having [14:38] the courage and the discipline [14:39] to occasionally trim from the [14:41] top down, accountability from [14:42] leadership is essential in [14:43] order to protect our [14:44] experienced, data driven [14:46] workforce, and demonstrates to [14:47] the public that King County [14:49] values operational competence [14:51] and fiscal efficiency over [14:52] executive overhead. The workers [14:54] at Kcra remain fully committed [14:55] to the vision of a unified, [14:57] equitable, and effective [14:58] regional homelessness response, [14:59] and we asked the Committee of [15:00] the whole to recognize the [15:02] value of the people behind the [15:03] products to protect the [15:05] frontline infrastructure of [15:07] regionalism, and to help us [15:08] ensure that every public dollar [15:09] continues to serve the members [15:11] of our communities who rely on [15:14] us. Thank you. [15:14] That [15:16] s the last person I have [15:17] that has raised her hand. [15:17] Thank you. I [15:18] ll do one more [15:19] check. If you [15:19] re trying to [15:20] provide public comment and you [15:21] haven [15:21] t had an opportunity to [15:22] do so, please use the raise [15:26] hand function and zoom. All [15:27] right. We [15:27] re not seeing any [15:28] further requests for public [15:29] comments. So we will close [15:31] public comment and start with [15:32] our agenda. Uh, colleagues, [15:32] we [15:34] re going to start out with [15:35] our first item, which would [15:36] confirm an appointment to the [15:38] King County Landmarks [15:39] Commission. King County [15:40] established Landmarks [15:41] Commission to ensure [15:42] preservation of the region [15:42] s [15:43] historic places, material [15:45] culture and traditions for [15:46] future generations. We will be [15:48] briefed on this item by Brandy [15:49] Perello, who [15:49] s on behalf of [15:52] Leah, who is not here today. [15:54] Then I will ask for any input [15:55] from Sarah Stein from the King [15:57] County Historic Preservation [15:58] Program. And then we [15:58] ll hear [16:00] from the from our appointee, [16:02] Brandi. Go ahead. [16:04] Good morning, chair Baron and [16:05] council members. For the [16:06] record, my name is Brandi [16:08] Parabola with Council central [16:10] staff. The staff report for [16:12] this item begins on page eight [16:14] of your packets. And materials [16:17] for the appointee were sent out [16:18] simultaneously with your [16:20] packets on Friday. As brief [16:22] background on this item. [16:23] Landmark Commission [16:25] commissioners are responsible [16:26] for the designation and [16:27] regulation of landmark [16:29] properties. Representation of [16:30] suburban cities with interlocal [16:32] agreements with King County, [16:34] and advice to the executive and [16:35] the Council on King County [16:37] Landmarks. Issues. Funding for [16:39] the landmark program is [16:40] available from the Cultural [16:43] Development Fund. Membership [16:45] consists of nine members and is [16:46] comprised of volunteers with [16:48] expertise in areas such as [16:50] architecture, art, land use, [16:51] historic preservation, [16:53] archaeology, education, and [16:55] history. No more than four [16:57] members MAY reside in any one [16:59] municipal jurisdiction, and [17:00] commissioners are appointed to [17:03] three year terms. Colin Carter [17:04] is our appointee today, and [17:04] he [17:06] s an associate planner for [17:07] the city of Kirkland, who [17:08] serves as the city [17:09] s primary [17:10] contact for historic [17:11] preservation. He [17:12] s also a [17:14] member of the Kirkland Heritage [17:16] Society. Staff have not [17:17] identified any issues with the [17:19] proposed appointment, and it [17:20] appears to be consistent with [17:22] the requirements of King County [17:23] Code. That concludes my [17:24] remarks. I [17:24] d be happy to try to [17:26] answer any questions. [17:27] Thank you. Thank you Brandi. [17:28] Any questions for staff? All [17:29] right. Seeing none, I [17:29] m going [17:31] to call on Sarah Stein from our [17:33] King County Historic [17:34] Preservation Program. Sarah, [17:35] anything you [17:37] d like to add? [17:39] Thank you. Councilmember. Um, I [17:40] just want to say that we [17:40] re [17:42] excited to have Colin on board. [17:42] We [17:43] ve been working with him [17:45] since he was actually at uw. He [17:47] did the the bathhouse [17:48] nomination as as a school [17:50] project in Kirkland, which is a [17:51] working class house. It [17:52] s one [17:53] of the few left in that [17:54] neighborhood. And he did an [17:55] excellent job with that. So [17:56] we [17:56] ve been working with him [17:58] regularly both before he was a [18:00] planner and as a planner, and [18:00] we [18:01] re really excited to have [18:03] him, uh, joining us on the [18:04] commission. [18:06] Thank you very much. Uh, well, [18:06] now it [18:07] s time to hear from the [18:07] appointee. So I [18:08] m going to ask [18:10] MR. Carter to come join us at [18:11] the table here for a quick, uh, [18:14] yes. Thank you very much. [18:16] Welcome. And thank you for your [18:20] interest in serving. We will be [18:22] gentle here. So, uh, thank you, [18:25] MR. Carter. Uh, appreciate your [18:26] interest in serving. And can [18:27] you share a little bit with the [18:28] committee about, uh, your [18:29] interest in serving this role? [18:32] Yes, absolutely. Good morning. [18:33] Uh, chair. And the remainder of [18:34] the committee and council, I [18:36] guess, uh, I [18:37] m honored to have [18:38] this opportunity to serve on [18:40] the Landmarks Commission. Uh, [18:41] now, more than ever, it [18:41] s [18:43] important that we preserve not [18:45] only the places, but the [18:47] stories that these places, [18:49] structures and objects possess [18:51] throughout King County. Uh, as [18:53] Sarah Stein had mentioned, I [18:54] ve [18:56] had the opportunity to, uh, [18:58] collaborate with King County [19:01] staff to actually, uh, nominate [19:03] and successfully designate, uh, [19:05] the last structure, uh, within [19:07] the city of Kirkland to [19:09] designated status, uh, [19:11] preserving not only the working [19:13] class history, uh, also that, [19:14] you know, associated [19:16] agricultural and railroad [19:18] history. Um, and so that [19:19] s kind [19:20] of the story of how I actually [19:21] got into it was what started as [19:24] a simple school project. Um, [19:25] like many others in the [19:26] historic preservation realm, [19:29] you sort of just fall into it [19:30] rather than a dedicated track [19:32] from childhood. I would say. [19:34] Um, but, uh, throughout the [19:36] years of now serving as the [19:39] city of Kirkland contact for [19:40] homeowners, developers and [19:41] others that are interested in [19:42] the historic preservation [19:44] programs, not only the city, [19:47] but the county, the county. Um, [19:47] you know, I [19:49] ve seen the the [19:50] challenges that potential [19:52] historic preservation poses. [19:56] The, uh, conversations maybe on [19:58] how it limits development and [20:01] how the demand for housing, um, [20:03] and so kind of taking all of [20:04] that, I think I have a very [20:08] pragmatic and, um, I would say [20:09] well-rounded understanding of [20:11] historic preservation within [20:13] the county. So I guess the long [20:14] winded answer, but I [20:14] m, you [20:15] know, I could keep talking, [20:17] very excited about all the [20:18] facets of it. [20:19] Thank you very much, MR. [20:19] Carter. Appreciate it. [20:20] Colleagues, do we have any [20:23] questions for the appointee? [20:24] Seeing none, I [20:25] m going to ask [20:27] Councilmember Dembowski, as the [20:28] council member from district [20:29] one, to put this item before [20:30] us. It [20:32] s proposed motion 2026 [20:33] 0185. [20:35] Move adoption with a do pass [20:35] recommendation. [20:36] Thank you very much. That [20:38] motion is before us. Any final [20:40] comments before we take a vote? [20:41] Appreciate your willingness to [20:42] serve. [20:43] Thank you. And I will ask the [20:45] clerk to please call the roll. [20:47] Thank you. Chair Councilmember [20:48] Balducci. Councilmember [20:52] Dembowski I, Council Dunn I [20:54] Council member Fain I. [20:56] Councilmember Lewis I. [20:57] Councilmember Mosqueda. [20:58] I. [21:01] Councilmember Perry. [21:03] Councilmember von Reichbauer a [21:04] chair Baron I have seven a [21:05] s [21:05] zero no [21:06] s and no one asks. [21:08] Pardon me. Councilmember [21:09] Balducci and Perry. Ah. [21:10] Thank you very much. By our [21:12] vote we have approved proposed [21:16] motion 2026 0185. Uh, unless [21:18] there are any objections, we [21:19] will send these this motion [21:20] with a do pass recommendation [21:22] for the consent agenda on the [21:23] regular course. Thank you very [21:25] much. Congratulations, Colin. [21:26] Again, thank you for your [21:27] willingness to serve you. This [21:28] will be on the agenda for the [21:29] full council, but you do not [21:30] need to appear. Of course, you [21:31] can always come if you want to, [21:33] but no need for you to appear. [21:34] And thank you again for your [21:36] for your willingness to serve. [21:38] Wonderful colleagues. We [21:38] ll [21:39] move to the next item, which is [21:43] item six. This would approve [21:46] the 2026 2029 Equal Employment [21:48] Opportunity Affirmative Action [21:49] Plan, which is a four year [21:51] plan. The county uses as an [21:52] informational resource to [21:53] provide an overview of the [21:53] county [21:54] s key efforts relating [21:56] to equal employment [21:58] opportunity. We will be briefed [22:00] on this item by Eric Newman, [22:02] and I will note that we [22:02] re not [22:03] going to take action on this [22:04] item, because there are still [22:05] some legal issues, but I [22:06] thought it was important as a [22:08] significant multiyear plan to [22:10] have at least an initial touch [22:13] on this item. So, Erica, I will [22:16] turn it over to you. [22:18] Thank you, MR. Chair. Erica [22:20] Newman, Council central Staff [22:22] the items for Proposed [22:26] Ordinance 2026 0147 begin on [22:28] page 14 of your packet. The [22:30] proposed ordinance would adopt [22:33] the 2026 2029 Equal Employment [22:34] Opportunity and Affirmative [22:37] Action Plan. The plan is covers [22:39] the executive departments as [22:40] well as Department of [22:42] Assessments, Department of [22:43] Elections and the Prosecuting [22:44] Attorney [22:45] s Office. Under code, [22:48] the executive is to submit um, [22:50] the new plan by JUNE 1st of [22:52] every fourth year, which began [22:56] in 2018. Um, and then the [22:59] council has uh, until or before [23:01] JANUARY 1st should either, uh, [23:03] approve, modify or reject it, [23:06] uh, via ordinance. The first, [23:09] uh plan was adopted by council [23:13] in 1995. The current plan, um, [23:15] was adopted in DECEMBER of [23:19] 2022, and the under. I [23:21] m sorry. [23:25] Um, in the eeo, uh, the the [23:27] plan outlines goals and [23:29] objectives and objectives to [23:30] attract and retain a diverse [23:32] workforce that reflects, uh, [23:35] the community. And so, um, the [23:39] proposed plan, um, includes [23:40] information related to county [23:43] workforce statistics, [23:45] implementation plans for [23:47] departments and a summary of [23:49] the um, prior equal employment [23:52] opportunity, um, plan. But if [23:55] you want to go into the the [23:56] parts where we can get into [23:58] more detail, uh, beginning on [24:02] page 48 of your packet, um, it [24:04] starts to talk about placement [24:05] goals for the plan period for [24:09] 2026, 2029, as well as the [24:12] implementation plans. And, um, [24:15] the on page 48, it does state [24:20] that, um. The implementation [24:22] plan included job categories [24:24] for persons of color and women, [24:26] and the goals were based on [24:27] King County workforce [24:29] availability from the 2020 [24:32] population. Um, and there were [24:35] underrepresentation found in, [24:37] um, the King County workforce. [24:38] Departments are planning to [24:39] make good faith efforts to [24:42] address these areas during the [24:46] 2026, 2029, uh, plan. The [24:50] implementation, uh, the the [24:50] department [24:52] s plan for [24:55] implementing the plan is, uh, [24:57] creating a new plan and [24:58] analyzing results from the [25:01] prior plan and beginning on [25:05] page 38 of your packet of the [25:07] plan. But page 60 of the [25:11] packet, our goals, um, goals [25:16] and highlights from the 2022 [25:20] 2025 plan. It showed that 800 [25:23] 840 defined goal areas, which [25:26] is about 86%, had a workforce [25:27] that was consistent with the [25:28] availability of people of color [25:30] or women with requisite job [25:33] skills. And, um, King County, [25:37] the remaining 14%, um, where [25:38] the percentage of people of [25:39] color and women were [25:41] underrepresented when compared [25:42] with those qualified and [25:45] available in the workforce. Um, [25:48] moving on to page 61 includes [25:50] achievements, um executive [25:51] departments did acknowledge [25:53] that they faced a variety of [25:54] ongoing recruitment challenges [25:56] during the prior plan period. [25:58] Um, and placement goals were [26:00] for um. For the most part, they [26:02] were achieved across all [26:06] departments. Um, the highlights [26:08] are those are the highlights. [26:11] And the executive remains that [26:13] they are going to reiterate and [26:13] advance the county [26:14] s commitment [26:15] to equal employment [26:17] opportunity, diversity, equity, [26:20] inclusion and belonging. Um, [26:21] the proposed ordinance was [26:23] transmitted on time. There are [26:25] no direct fiscal impacts on [26:26] county expenditures or revenues [26:28] and federal regulations related [26:30] to this item have very recently [26:32] changed. And therefore legal [26:34] analysis of those impacts are [26:37] ongoing. We do have Gloria [26:39] Ingersoll, uh, the King County [26:40] Workforce equity manager from [26:42] department and Human Resources [26:43] available to answer any [26:45] additional questions. MISTER [26:46] Chair, that concludes my [26:47] remarks. [26:49] Thank you very much. Uh, [26:51] colleagues, any questions on [26:54] this item? Uh, Councilmember [26:55] Lewis. [26:56] Thank you. Chair. Um, thank [26:58] you, Erica, for that staff [27:00] report. I have a couple of [27:02] questions, and they MAY be [27:05] questions for executive staff. [27:09] Um, the first question is, how [27:11] were the eib managers, the [27:12] equity, inclusion and belonging [27:15] managers involved in the [27:17] creation, updating of this [27:21] report? And the other question, [27:21] I [27:23] ll ask it now, maybe answer [27:25] it later. But as I read the [27:26] report, there was a lot in the [27:28] report about recruitment and [27:30] retention. And I [27:31] m interested [27:34] in where the report addresses [27:37] advancement for, uh, people of [27:38] color, women and people of [27:41] color, and also how it [27:43] addresses the recommendations [27:44] of the black women [27:45] s [27:47] experience. Um, study that the [27:49] county invested quite a bit of [27:59] resource in having that done. [28:02] So go ahead. [28:07] This is Gloria. Can you hear [28:08] me? [28:10] We can not hear you very [28:12] clearly. We can just barely [28:14] hear you. [28:15] Yeah, okay. I [28:16] m having some [28:17] technical difficulty. [28:19] No, no, no, no, we can hear you [28:20] better. I think we upped the [28:24] volume here. Go ahead. [28:24] Let [28:26] s do the thing there. Um. [28:28] Thank you, thank you. Thank [28:32] you. Councilmember. Um, one for [28:34] the first question as it [28:36] relates to, uh, engaging eib [28:39] managers. Um, um, we did not [28:42] engage the eib managers. And, [28:43] uh, since we started, if this [28:45] is meeting being forthcoming, [28:47] uh, since we started the plan, [28:49] uh, the eib classification is a [28:52] new classification. Uh, in [28:53] crafting the plan, we did not [28:55] engage the eib manager, but in [28:58] ongoing efforts to continue to [29:00] diversify our workforce. Um, [29:03] through, uh, our advisory [29:05] committee, uh, the eeo advisory [29:07] Committee, there are ongoing [29:09] conversations that includes [29:11] conversations with the hr [29:14] managers and eib managers in [29:16] terms of implementation and [29:18] making sure that not only are [29:19] we meeting our hiring retention [29:21] goals, but we are also looking [29:24] into data that is, uh, ongoing [29:25] because we pull that data on a [29:27] quarterly basis. And so [29:29] advisory committee members, [29:30] they do have those regular [29:31] meetings to continue to make [29:33] sure that department is being [29:35] held accountable to the efforts [29:37] that we put forth in this plan [29:40] and that both hr manager are [29:42] involved in the eib managers [29:44] are also informed, uh, [29:46] informing those implementation [29:48] efforts. Um, I can say that [29:50] moving forward, as we continue [29:52] to make improvements, we will [29:54] definitely make sure that we [29:56] are engaging eib managers, [29:58] although, um, I would say that [29:59] for the most part, really [30:02] looking at hiring, retention [30:03] and promotions that work since [30:05] it leaves and sits within the [30:07] hr managers, uh, they tend to [30:09] be the ones that we engage the [30:11] most with. [30:13] Thank you very much for that. [30:14] Would you mind identifying [30:15] yourself for the record? [30:15] Because we [30:17] re seeing you as [30:20] Megan Peterson. So go ahead. [30:21] Uh, my name is Gloria and [30:23] Gonzalez, last name. And I am [30:24] the King County Workforce [30:25] equity manager in the [30:27] Department of Human Resources. [30:29] Thank you very much, [30:31] colleagues. Any additional [30:34] questions? Um, as I noted, [30:34] we [30:35] re not going to take action [30:36] on this item. The one thing [30:38] that I did note from the, uh, [30:40] report that I wanted to make [30:42] sure that we, you know, [30:44] recognize is that one of the [30:46] areas that we have, I would [30:48] say, backtracked as a county [30:50] workforce in the past few years [30:51] has been the issue of gender [30:53] and our the percentage of our [30:55] workforce, uh, who identify as [30:58] women is going, I would say, in [31:00] the wrong direction. Um, so, [31:01] you know, I think that [31:01] s that [31:01] s [31:02] what the data shows. There [31:03] s no [31:04] kind of controversy about that. [31:05] But I just wanted to highlight [31:07] that. And I urge, you know, the [31:08] executive branch and something [31:09] that I think we want to monitor [31:11] closely, and perhaps when we [31:13] take action, I would love to [31:15] hear from, uh, from the, our [31:17] executive branch specifically [31:18] on that issue, on what steps [31:18] we [31:20] re taking, uh, to reverse [31:22] that trend. Um, there [31:22] s some, [31:23] some, some of that in the [31:24] report, but I think it would be [31:25] great to hear a little bit more [31:28] on that. Uh, next, next month [31:29] when we take action on this [31:30] item. Uh Councilmember [31:32] Mosqueda. I see your hand up as [31:33] well. [31:35] Thanks so much. Sorry. It was a [31:36] little bit choppy. Did you say [31:38] that the equity, inclusion and [31:43] belonging was not consulting? [31:44] Uh, not. [31:45] In the crafting of the plan, [31:46] but in the ongoing [31:47] implementation? [31:49] Yes. We are. Consulting with [31:51] them on a regular basis. [31:53] Okay. And Councilmember Lewis [31:54] had asked the question. I was [31:56] wondering about regarding the, [31:57] um, black women [31:58] s experience at [32:00] King County. Um, and [32:01] colleagues, if you haven [32:02] t seen [32:03] that report recently or read [32:05] it, I think it would behoove us [32:09] all to see how this submission [32:11] correlates with the report that [32:12] Councilmember Lewis noted prior [32:15] to considering this in the next [32:16] meeting, happy to bring down [32:20] copies momentarily. [32:22] Thank you Councilmember [32:23] Mosqueda. And again, this item [32:25] will come back to us so we have [32:26] further opportunities to ask [32:27] questions. In the meantime, [32:31] before we sign off on it. Uh, I [32:31] don [32:33] t see I think Councilmember [32:33] Mosqueda that [32:34] s your old hand, [32:36] I believe. Uh, unless you have [32:38] an additional question. Old [32:39] man. Hold hand. All right. [32:42] Thank you very much. Uh, thank [32:43] you. Colleagues. So, as I [32:44] mentioned, uh, legal review of [32:46] this item is still in process. [32:46] We [32:47] re going to defer action [32:48] until the next meeting of the [32:50] committee on SEPTEMBER 22nd. [32:52] With that, we will move on on [32:54] our agenda. Thank you. Uh, our [32:55] next two items are related to [32:56] the King County Regional [32:58] Homelessness Authority. First, [33:00] we have a briefing from [33:01] executive staff and then [33:03] followed by a briefing from the [33:06] case staff on the casework [33:07] contract transition plan and [33:09] then the overview of the [33:11] corrective action plan. Uh, [33:11] we [33:13] re going to be hearing [33:15] initially from chief operating [33:17] officer of the Executive [33:18] Office, Jelani Jackson, who [33:18] s [33:19] the acting director of the [33:20] Housing and Community [33:23] Development division at dhs, [33:25] and Aaron Robert, the chief [33:25] budget officer for the [33:26] Executive office. And then I [33:28] will introduce our case here, [33:30] staff. Uh, uh, when we get to [33:32] that panel, uh, I do want to [33:35] just remind us how, uh, what [33:37] this briefing, uh, stems from. [33:38] This briefing is the result of [33:42] motion 16970, which I sponsored [33:43] with Councilmember Fain and [33:45] Dembowski, and which the [33:46] council adopted unanimously on [33:48] MAY 5th after a forensic [33:49] evaluation led by Clark [33:51] Newberry and released in APRIL, [33:53] exposed serious weaknesses in [33:54] cases this, uh, financial [33:56] management internal controls. [33:57] That motion asked the executive [33:58] to provide a report on the [34:00] future of the authority and the [34:01] steps being taken to address [34:02] the findings of the forensic [34:04] evaluation. By AUGUST 1st. And [34:05] I appreciate that the [34:07] executive, uh, complied with [34:09] that request. In the months [34:10] since, there have been [34:11] additional developments. On [34:12] JULY 1st, the executive of the [34:13] mayor of Seattle announced a [34:15] plan to stabilize right size [34:17] and reset cases, including the [34:18] transition of most locally [34:19] funded contracts back to the [34:20] city and the county, [34:21] respectively. And we [34:22] ll hear [34:23] more details on that in a [34:25] second. Uh, as I noted, the [34:26] executive delivered the report [34:27] we requested actually a day in [34:30] advance on the 31st JULY 31st, [34:31] probably because AUGUST 1st was [34:33] society. Uh, today gives us the [34:34] chance to hear about the [34:34] executive [34:35] s recommended steps [34:36] regarding the authority, the [34:37] status of the contract [34:39] transition plan, and the status [34:40] of the correct corrective [34:41] action plan that Kasahara is [34:42] implementing. After hearing [34:44] from the executive team, uh, we [34:46] will hear from Kcra leadership [34:48] directly. Um, thank you. And [34:48] I [34:50] m going to turn it over to, [34:53] uh, ceo Kim. [34:54] Thank you so much. For the [34:56] record, my name is Heyo Kim, [34:57] chief operating officer for [35:00] Executive Zahilay chair Baron. [35:01] Members of the committee, thank [35:02] you so much for having us here. [35:05] Um, as you mentioned, the [35:08] executive delivered a report to [35:11] you all, um, the, uh, the [35:12] report is fairly extensive, I [35:15] think, in the details. And so, [35:17] uh, Aaron, Jelani and myself [35:19] are here to provide an overview [35:21] of what was, uh, contained in [35:23] that report and to be able to [35:26] answer any questions. Um, as [35:29] you, uh, I think, um, chair, [35:30] you you kind of took my top [35:34] line, um, in JULY, the [35:36] executive and mayor, uh, [35:38] announced next steps to [35:40] stabilize right size and reset [35:42] our King County Regional [35:43] Homelessness Authority. The [35:45] joint plan focused on [35:47] stabilizing, right sizing and [35:49] resetting Kcra chase future. So [35:51] today we will be speaking [35:53] mostly about the stabilizing [35:55] and rightsizing approach, the [35:57] work to reset the future of [36:00] Kcra is going to be ongoing for [36:02] the next several months. Um, [36:04] and we are committed to working [36:07] with this body as well as the [36:09] legislative body over at the [36:11] city and the k Sara Jay [36:13] governing board, in conjunction [36:15] with ceo Kennison and her team [36:18] to ensure an extensive [36:20] stakeholder process. Um, but [36:22] that has not yet been launched [36:24] quite yet. Uh, the county and [36:26] the city remain committed to, [36:30] um, sorry, just lost my cheat [36:32] sheet. Uh, a regional response [36:34] to homelessness and to [36:36] strengthening Kcra so that it [36:37] can fulfill its [36:39] responsibilities. Some of the [36:42] guiding principles, um, really [36:44] defining and informing this [36:46] work is that providing high [36:48] quality shelter services and [36:49] housing to our region [36:50] s most [36:52] vulnerable community members [36:54] should not be disrupted. Uh, [36:55] that creating clear pathways [36:58] for individuals to exit from [37:00] homelessness to shelter and [37:02] services and to long term [37:04] housing, uh, is our North Star [37:06] and should be our North Star. [37:07] And that understanding [37:09] homelessness as a regional [37:11] issue that requires [37:12] coordination and collaboration [37:14] with government partners across [37:16] King County should be bedrock [37:17] to how we think about the [37:20] future of the work. And so, as [37:22] you will hear from Jelani and [37:25] from Aaron, uh, some of the key [37:27] considerations that, uh, both [37:29] the executive and the mayor [37:32] embarked upon, um, in making [37:36] the decision to, uh, transition [37:37] the contracts, the county [37:38] contracts and the city [37:39] contracts, some of the key [37:41] considerations that they had [37:43] were that, uh, protecting [37:45] federal funding for this region [37:47] was absolutely critical. As you [37:49] all know. Um, this year, we are [37:53] looking at about $67 million in [37:55] federal funds that that funnel [37:57] through our continuum of care [37:59] to serve, um, the most [38:01] vulnerable residents in our [38:05] community. Um, that is $67 [38:07] million. That cannot be easily [38:09] replaced by either the county [38:12] or the city or state partners. [38:14] Um, another key consideration [38:16] for us was that minimizing [38:18] service disruption for clients [38:20] and providers was absolutely [38:22] critical. Uh, we know that this [38:23] is not a transition that [38:24] s [38:26] going to be easy, but we [38:28] really, really wanted to ensure [38:30] that we were taking pains to [38:33] listen to our service providers [38:36] to understand how to ensure a [38:38] smooth transition. And you will [38:39] hear Jelani speak to that a [38:41] little bit. And then again, the [38:43] regional reset conversations, [38:44] although not quite yet [38:47] launched, are going to be, um, [38:51] are um, approach to [38:52] understanding and to hearing [38:54] from a diverse set of [38:56] stakeholders to so that we [38:58] maintain a regional approach to [38:59] homelessness. And I think that [39:01] is critical that it is both the [39:04] King County and the mayor who [39:06] have expressed that commitment [39:09] at their JULY press conference. [39:11] Uh, that commitment has, uh, we [39:12] have reiterated that commitment [39:14] in the report, the written [39:16] report that was handed to the [39:19] council. And we are here to [39:20] again, emphasize that the [39:21] regional approach to [39:23] homelessness is one that the [39:24] executive and the mayor are [39:26] committed to. And, um, that the [39:28] regional reset conversations [39:31] will help inform the [39:32] recommendations that come from [39:33] that. So with that, I [39:33] m going [39:36] to turn it over to Aaron, all [39:36] right. [39:37] Thank you for the record. [39:39] Aaron Robert, chief budget [39:40] officer in King County [39:41] Executive Office. So I [39:42] m going [39:42] to talk a little bit about [39:44] stabilizing Kcra, really with a [39:46] focus on financial processes [39:47] and the financial work that [39:47] s [39:49] been going on. One of the key [39:51] efforts to stabilize Kcra is [39:53] really embedding a external [39:55] financial consultant. That [39:55] s [39:57] turning point strategic plans [39:59] to strategic partners. Um, [39:59] they [40:00] re under contract until [40:01] the end of the year. They [40:01] re [40:03] looking at a few specific [40:04] things in their scope of work. [40:06] So an assessment of the cra [40:08] financial operations, by being [40:10] embedded, working closely with [40:11] the organization, they [40:11] re [40:12] working through that issue [40:14] right now. Um, financial [40:16] stabilization and oversight and [40:18] providing that. So as [40:20] additional financial [40:21] transactions come in, starting [40:22] to review those kind of over [40:25] the shoulder look for Kcra, [40:25] understanding what the [40:27] financial transactions are, [40:28] making sure they [40:28] re [40:29] appropriate, appropriate and [40:30] making sure they [40:30] re following [40:32] internal controls and [40:33] procedures that have been [40:36] documented. Um, a county [40:37] reconciliation and financial [40:39] remediation, the accounting [40:41] reconciliation is complex. [40:42] There are thousands of [40:43] transactions that that have [40:44] happened over the last five [40:44] years. There [40:46] s multiple systems [40:47] that have been involved. So [40:48] they are going through that at [40:49] a very detailed level and [40:50] starting to figure out exactly [40:52] what has happened in the past [40:53] and will eventually be able to [40:54] provide to the county [40:55] executive, to the county [40:58] Council, and to Katara. An [41:00] assessment of where the dollars [41:02] have been spent. What is [41:04] Unreconciled unreconciled and [41:05] what we need to do moving [41:08] forward. So that is a complex [41:10] and time consuming effort, but [41:11] they are doing that now and [41:13] making good progress. In my [41:15] opinion. Um, contract [41:17] administration support. So as [41:19] new contracts come in, how do [41:20] we administer them? How do we [41:22] document our practices? They [41:22] re [41:23] working through that as well. [41:26] Also advising on stabilization [41:27] moving forward. We [41:27] ve asked [41:28] them as part of their scope of [41:31] work to help develop proposals [41:33] on the size of the organization [41:35] moving forward and financial [41:36] processes and procedures that [41:37] should be embedded moving [41:39] forward. So turning Point [41:40] strategic partners are working [41:42] through all of that. We have [41:44] weekly meetings with them, with [41:45] their finance teams. They also [41:46] are reporting out to the [41:48] finance committee periodically [41:50] and to the executive sponsors [41:51] group. So I [41:52] m feeling pretty [41:54] confident in where they are and [41:54] where they [41:55] re going. But there [41:57] is still a lot more work to do [41:59] with the strategic partners. [42:00] Um, they [42:01] ve been embedded since [42:01] JULY. They [42:02] re going to be there [42:03] until the end of the year, and [42:03] we [42:05] ll have to assess the next [42:06] steps from there. Um, and I [42:07] just want to say that some of [42:08] the things that I [42:08] m really [42:10] looking for from them, and I [42:11] want to be really clear, is, [42:13] um, reconciliation of the [42:15] accounts. We need to understand [42:16] the details of those accounts. [42:16] They [42:17] re working towards, that. [42:19] We need to start seeing [42:20] improvement in the negative [42:22] cash balance at the investment [42:23] pool, and we need to start [42:25] seeing cycle times for this [42:26] invoicing process to go down. [42:28] That lag time is really driving [42:30] some of our issues. So those [42:30] are some of the things that I [42:31] m [42:32] really looking for from Turning [42:35] Point and from Kcra. [42:36] Thank you. And I [42:38] ll apologize [42:40] for not naming you. And calling [42:40] people out there. So I [42:41] apologize I missed that on my [42:44] notes. Thank you. Jelani. [42:46] Jelani Jackson, acting director [42:47] of the Housing and Community [42:51] Development Division of dhs. [42:53] All right, Kcra will retain its [42:56] core regional responsibilities. [42:57] These functions are the [42:58] backbone of our region [42:58] s [43:00] homelessness services system. [43:01] As contracts transition back to [43:02] the city of Seattle and King [43:05] County, Kcra can focus its [43:06] efforts on its key functions [43:08] like the point in time count, [43:09] our region, severe weather [43:11] response, coordinated entry, [43:12] and most importantly, being the [43:14] lead agency for all continuum [43:16] of care activities for King [43:18] County. The Housing and [43:20] Community Development Division [43:21] of dhs will be ready to [43:23] administer up to 100 contracts [43:28] starting in JANUARY 2027. [43:30] Extending existing contracts [43:31] will provide consistency for [43:33] providers through the [43:35] transition. In this way, they [43:36] can focus on delivering the [43:38] services our region needs. Hcd [43:40] staff will anticipate that a [43:42] small portion of contracts will [43:44] likely stay with Kcra work to [43:45] determine the exact number of [43:46] contracts, and the [43:50] corresponding cost is ongoing. [43:52] From the contract transition [43:53] timeline, you can see this is a [43:55] month by month, uh, sort of [43:56] macro overview. It [43:57] s a very [43:58] high level overview of the work [44:00] that dhs and hsd will conduct [44:02] from now until the end of the [44:08] year. Preparations are underway [44:10] to ensure dhs is ready to take [44:12] on this body of work. As noted [44:14] in table two of the Kcra [44:15] Contract Transition Plan, we [44:17] are adding ten Career Service [44:18] fte who will be tasked with [44:21] monitoring contracts, fiscal or [44:23] compliance related work to [44:24] ensure dhs will meet its hiring [44:26] timeline. We onboarded one [44:27] temporary term limited human [44:29] resource analyst in JULY. [44:30] Through the end of the year, [44:32] dhs will be focused on hiring, [44:34] training, and preparing our [44:35] staff for the successful [44:36] transfer of contract starting [44:38] in JANUARY, the City of [44:39] Seattle [44:40] s Human Services [44:42] Department and dhs have hosted [44:43] two meetings with providers [44:44] from across the county. Our [44:46] growing invite list includes [44:47] more than 50 providers and [44:50] represents the full spectrum of [44:52] homeless services. During these [44:53] meetings, King County staff [44:54] have shared timely updates with [44:56] the community and answered [44:58] questions. These joint meetings [44:59] will continue through the end [45:01] of the year. The county and the [45:02] city are committed to ensuring [45:03] there is no interruption to [45:06] services or provider payments. [45:07] Finally, work to reduce the [45:09] burden on our contractors has [45:11] begun. Hsd and dhs will [45:13] continue this work through [45:15] 2027. Dhs has decades of [45:17] experience managing complex [45:18] homelessness and housing [45:20] investments, including many of [45:21] the contracts that will [45:22] transition from Kcra back to [45:25] dhs. Prior to the creation of [45:27] Kcra, the Housing and Community [45:28] Development Division of dhs [45:30] successfully administered many [45:31] federally and locally funded [45:32] contracts with providers [45:36] throughout King County. [45:38] Great. Um, and so then that [45:41] takes us to the future of Kcra. [45:44] And as the executive and the [45:46] mayor. Um, indicated at their [45:49] JULY press conference, um, and [45:52] that was as indicated in the [45:54] written report that we provided [45:56] we do plan to embark on a [45:59] series of extensive stakeholder [46:02] conversations. Um, the the list [46:03] of council, I [46:04] m sorry, the list [46:06] of stakeholders and kind of [46:09] interests are identified on [46:11] this. Um, just for I think just [46:13] to illustrate the breadth of [46:14] stakeholders. But it [46:14] s [46:16] certainly not an exhaustive [46:18] list. Um, and really, we are [46:20] looking at this, these regional [46:21] reset conversations in sort of [46:24] three phases. We have an, um, [46:26] we are going to identify an [46:29] initial group of individuals to [46:30] have pre engagement [46:33] conversations with um, and um, [46:35] those pre engagement [46:38] conversations will help inform [46:40] um the engagements. The more [46:42] extensive engagements that we [46:44] plan to take and the questions [46:45] that we are really posing are [46:48] really, I think fundamental to [46:50] what prompted Kcra to begin [46:53] with. Um, what were some of the [46:56] gaps in our regional services [46:59] that Kcra was meant to address? [47:02] Um, and why, you know, were [47:03] some of those promises or were [47:06] some of those solutions ever, [47:09] um, did they ever materialize? [47:10] You know, why or why not? Um, I [47:13] think the what we wanted to do [47:14] was not get into the weeds of [47:17] the tactical sort of what, the [47:19] structure, but really ask more [47:21] fundamental strategic questions [47:23] around how how should a [47:25] regional homelessness, um, [47:26] system and what does that [47:28] regional coordination, what [47:29] should it look like? And what [47:29] s [47:31] missing, uh, even in its [47:34] current state today, um, the [47:36] synthesizing of information [47:38] will then take place. And [47:40] finally recommendations will be [47:42] delivered. Um, the all of this [47:43] work is expected to be [47:45] completed by the end of the [47:47] first quarter of next year. Um, [47:49] and again, as I mentioned [47:51] earlier, we plan to and have [47:54] already spoken to some of the [47:56] governing board members. Uh, [47:58] certainly ceo Kinnison and her [48:00] team, to ensure that these are [48:02] conversations that we hold [48:04] together with Kcra. At the same [48:07] time, uh, and stakeholder work [48:09] will include people who have [48:11] been critics. We need to listen [48:13] to what those critics have [48:15] said. We need to understand [48:16] what the gaps are and what the [48:19] problems are in order to inform [48:22] the future of k star. So with [48:24] that, we are happy to answer [48:26] any questions that you MAY [48:26] have. [48:27] Thank you very much. I know [48:28] you [48:28] re going to have a lot of [48:30] questions coming your way. Let [48:31] me let me just start off with [48:32] one, because this was kind of [48:33] one of the central things in [48:35] the motion that we sent over to [48:36] the executive. And I just [48:37] answered on the report, but we [48:38] didn [48:39] t really tackle it [48:41] verbally. And one of the [48:42] questions that we asked was our [48:43] recommendation from the [48:45] executive on whether to take [48:48] action at this point to, uh, to [48:51] solve cases. Che. Could you [48:53] elaborate a little bit on the [48:55] recommendation that the [48:56] executive center and the [48:56] report? [48:58] Sure. I do believe that in our [49:00] cover note, the executive [49:01] respectfully requested at this [49:04] time that any motion to [49:07] dissolve Kcra che be paused and [49:09] held in abeyance until we have [49:11] we, the executive and the mayor [49:14] are have the time to go through [49:16] these regional reset [49:17] conversations. And I think, you [49:19] know, fundamentally, the [49:19] executive [49:21] s position is that [49:23] before we have a clear answer [49:25] for how we are going to answer [49:26] the question of what [49:27] s next, [49:30] that we should not initiate [49:33] dissolution. Um, efforts, [49:34] because I think that is going [49:38] to be fundamentally disruptive [49:41] to the existing staff. Um, the [49:42] I think the executive, the [49:44] mayor, felt that fundamentally, [49:46] the transition of the contracts [49:48] were in and of themselves, a [49:49] significant lift, and they [49:52] really wanted to focus on that. [49:55] Um, as the, uh, in this stage [50:00] and the I think the motion to [50:01] dissolve our efforts to [50:04] dissolve kcc until we have a [50:07] clearer answer on what the what [50:09] the what. Next question is, um, [50:12] could be also demoralizing to [50:13] the existing staff that still [50:16] will remain with Kcra. Um, and [50:19] that are fundamentally needed [50:21] to continue to implement our [50:23] continuum of care dollars, as [50:24] well as some of the other [50:25] regional services that will [50:27] remain in Sierra Che. [50:30] Thank you very much. Uh, [50:32] colleagues, questions, comments [50:34] and a reminder that we are [50:35] going to have a follow up [50:37] presentation regarding the [50:38] corrective action plan from kkk [50:40] leadership. But I think, uh, [50:40] I [50:42] ll open up for questions. [50:43] Councilmember Dunn. [50:44] Thanks. Thanks for being here. [50:45] I appreciate your work on this. [50:47] Um, obviously an important [50:48] issue. I personally believe [50:51] that this issue of homelessness [50:53] generally is the premier local [50:54] issue of our generation. I [50:55] think it [50:56] s a really tough nut [50:58] to crack, and a 600 word [51:00] editorial in the Seattle Times [51:00] doesn [51:01] t really necessarily give [51:03] it justice. As I wrote the [51:04] other day. And and anyone who [51:06] writes an editorial knows that [51:07] the Seattle Times continues to [51:08] own the headline. They will [51:10] write the headline however they [51:10] want to write it. Right. It [51:11] s [51:13] catchy. So they said we should [51:14] something to the effect of turn [51:15] our back on housing first. Now, [51:17] I would not have written that [51:18] that way. I would have written [51:21] it differently. Um, and I want [51:23] to talk about it for a second. [51:26] But if we look at this issue, [51:27] there [51:28] s about half a dozen ways [51:30] we can responsibly structure [51:32] our homelessness response in [51:35] King County. One way is to put [51:36] a regional organization [51:38] together, like we did at the [51:39] council. Rod and I were [51:41] involved in some of that. [51:41] There [51:42] s others. We can bring it [51:42] in-house into the [51:43] jurisdictions, we can do [51:45] partnerships, we can do private [51:46] sector work. There [51:46] s a lot of [51:47] different models across the [51:49] country. And I think, you know, [51:49] I [51:50] ve been a tough critic for [51:52] Kcra, but it is a result of [51:54] action of this council. [51:56] Interestingly. So we found that [51:56] there [51:57] s some challenges there [51:57] and we [51:58] re retooling it, I [51:59] commend that. I think that [51:59] s [52:01] great. I think the executive [52:03] shows leadership in coming in [52:06] and in changing its focus a [52:06] little bit. That [52:07] s I think [52:07] that [52:10] s good. I still think, as [52:12] they say, the system is [52:14] perfectly designed right now to [52:16] get the results it is currently [52:19] achieving. Um, and that [52:19] ll be [52:21] the same if we just move the [52:23] deck chairs around, um, without [52:25] a substantial shift in the [52:28] policy focus that underlies [52:29] what we [52:29] re trying to do to [52:31] reduce homelessness. And so, [52:32] you know, there [52:34] s this crazy [52:36] political dynamic out there. [52:36] It [52:37] s all housing first or it [52:38] s [52:38] all. [52:40] You know, mental health and [52:41] behavioral health and substance [52:43] use recovery. The truth, I [52:44] think, and you guys have all [52:46] toured plenty of homeless camps [52:46] and have a lot of friends [52:47] who [52:48] ve been homeless and know [52:49] people and work with it. The [52:50] truth is, there multiple [52:52] pathways to get people off the [52:53] streets. We need all those [52:55] strategies in the toolbox, [52:56] right? I think we need all of [52:57] them. I don [52:58] t think we should [52:59] get rid of housing first [53:00] completely. What I think we [53:01] should do is think about a [53:03] bunch of levers, policy levers. [53:04] Right. Let [53:05] s dial down some of [53:07] the the resources going to go [53:09] to that traditional housing [53:11] first model and reallocate that [53:12] into drug and alcohol [53:15] addiction, mental health, job [53:16] training. Um, I think that [53:16] s [53:19] where we should we should be [53:20] going. We got a brand new [53:23] executive. Right. Great. [53:23] Executive is out in my [53:24] district. Last night we were [53:25] speaking together, having a [53:27] good time. And one of the [53:27] things he [53:28] s going to be judged [53:31] on in four years is what has [53:32] happened with homelessness, [53:33] with the trajectory of [53:34] homelessness. It [53:35] s an empirical [53:35] data point. He [53:36] s going to get a [53:39] grade on it, a plus c minus [53:41] whatever it is. I just don [53:42] t [53:44] see how you can get a different [53:45] achieve a different result [53:46] simply by altering the [53:47] management structure. It [53:48] s got [53:49] to address the underlying [53:51] policies. And so that is my [53:53] question to you. To what extent [53:55] are you willing to think about [53:57] changing the underlying [53:59] policies we are using to attack [54:02] homelessness moving forward? Is [54:03] that a part of this [54:05] conversation? [54:07] I think certainly those [54:08] conversations will be had [54:09] during the regional reset [54:12] conversations. I will also say [54:14] Councilmember Dunn, um, the [54:15] executive has three years. He [54:16] doesn [54:17] t have four years. Um, [54:20] and so the sense of urgency, [54:21] um, his re-election is in three [54:23] years, not four. Um, the sense [54:25] of urgency that he has on this [54:27] problem is absolutely matches [54:29] your passion for this. Um, I [54:30] will say this. I think the [54:33] executive has, um, the kind of [54:36] all, um, utilizing all the [54:37] tools that you just mentioned [54:40] are, um, is an approach that he [54:41] empirically, empirically has [54:44] also embarked upon. Um, he was [54:46] the leader when the council [54:48] passed your, you know, sort of [54:50] unprecedented crisis care levy. [54:51] Um, that is a, you know, it [54:51] s a [54:54] new tool in the toolbox to [54:57] address substance use disorder [54:59] in so many communities. Um, the [55:01] fact that among the first [55:02] things that the executive [55:04] prioritized when he came into [55:07] office was 500 units in 500 [55:09] days. Those units we are [55:12] looking at a full range of [55:14] housing type, uh, and really [55:15] emphasizing shelter. The [55:18] executive has also launched his [55:20] Breaking the Cycle work group [55:21] that is asking the urgent [55:23] question, even though the [55:25] population is not, you know, [55:27] the the as as expansive as our [55:28] broader homelessness [55:29] population, the Breaking the [55:32] Cycle workgroup is looking at [55:35] the population of individuals [55:37] that have, um, uh, that show up [55:39] in multiple systems and for [55:42] whom all of those systems have [55:43] not addressed their needs. [55:45] Right. These are the criminal [55:47] justice systems. This is the [55:48] substance abuse, you know, [55:49] dealing with substance abuse [55:51] disorders. Individuals who are, [55:52] you know, have been in and out [55:54] of shelters. And right now, I [55:57] think the executive, by [55:59] acknowledging that, you know, [56:00] our systems are not working for [56:02] everyone. The Breaking the [56:03] Cycle workgroup, we are [56:05] confident, will come up with [56:08] some, um, recommendations that [56:10] really zero in on those [56:12] strategic questions of why [56:12] isn [56:13] t the system that, you [56:15] know, all of us have had a hand [56:18] in designing, working for these [56:20] individuals. Um, so I think [56:20] there [56:22] s a multitude of [56:24] strategies that the executive [56:26] is looking at and the future of [56:29] this area is just one of those. [56:30] So I don [56:31] t know that, you know, [56:32] we, um, I don [56:32] t know that we [56:34] would, you know, like you said, [56:36] agree with the headline, but [56:38] certainly the executive is not [56:39] taking a, uh, let [56:40] s just do [56:40] what we [56:42] ve always done [56:44] approach. He is asking all of [56:47] us to challenge our assumptions [56:47] about what [56:49] s worked before, and [56:50] to work with a great sense of [56:52] urgency on the issue of [56:52] homelessness. [56:52] That [56:53] s great. And that [56:53] s that [56:53] s [56:54] a good place to start. I mean, [56:54] I can [56:55] t disagree at all with [56:56] that. In fact, the fact we [56:56] re [56:57] having this conversation is a [56:58] great place to start. He [56:58] s [56:59] looking at the structure, which [57:01] is the first thing you got to [57:02] do, and then you got to get to [57:06] the policies. I just I know I [57:08] everybody at Kcra and everybody [57:11] in the housing, industrial, uh, [57:14] nonprofit sector that we have [57:15] working very hard are doing [57:16] good work and they [57:16] re trying [57:17] very hard. Like, I don [57:18] t I [57:18] don [57:21] t question their [57:21] intentions. Everybody [57:22] s trying. [57:23] I just see the results of the [57:25] number of unhoused on our [57:26] streets getting worse and worse [57:29] and worse. So I think that it [57:29] s [57:32] not unreasonable to question [57:33] not only the structure, but [57:35] also the policies. And I really [57:37] encourage I know we all have [57:38] that talking point in our head. [57:38] Well, it [57:40] s empirically proven [57:42] that Housing First reduces [57:42] homelessness. Well, it [57:43] s not [57:45] out here. Not at all. In fact, [57:46] last year we were the worst in [57:47] the country. And the aggregate [57:49] number of homelessness in the [57:50] state and most of us in King [57:50] County can [57:51] t argue with that. [57:54] Worst, worst out of 50. Um, and [57:56] so some of these nonprofits and [57:57] other groups might be [57:59] disappointed that we change [58:01] priorities over the next months [58:04] and years. Um, to emphasize [58:05] other areas. It doesn [58:05] t mean [58:05] they [58:06] re not profit won [58:06] t be [58:08] involved in the work that we [58:08] ll [58:09] be doing for that. I just want [58:11] to be clear about that. I hope [58:14] that you consider policy [58:16] shifts. I think you will find [58:17] if you do and you model them [58:18] after best practices that are [58:19] proven to work across the [58:21] country, that we will start to [58:23] have positive results. That [58:23] s [58:25] all. And I will support you in [58:26] those efforts. If you choose to [58:28] go there. [58:31] Thank you. Councilmember Dunn. [58:33] Uh Councilmember Dembowski. [58:34] Thank you. I just wanted to [58:36] engage a little bit here along [58:37] the lines of Councilmember [58:37] Dunn [58:40] s, uh, uh, statement and [58:41] just put a little detail on it. [58:45] If I might. Regan. Um, with [58:47] respect to the the results, I [58:49] mean, this is from the most [58:51] recent point in time count from [58:55] Kcra from 2022 to 2026, total [58:56] homelessness in King County is [59:00] up 37% from 13,300 folks to [59:03] 18,300. Unsheltered [59:05] homelessness is up from 2022 to [59:10] 2026. 54% from 7600 folks to [59:17] 11,800 folks. Okay. Our [59:19] emergency shelter beds are down [59:24] from 2025 to 2026 by 689. [59:26] Unsheltered family homelessness [59:33] is up 78% from 1253 to 2200 [59:35] families. So Councilmember [59:35] Dunn [59:36] s point about what we [59:36] re [59:37] doing isn [59:39] t working is correct. [59:41] He has suggested in his op ed [59:43] and elsewhere that when things [59:43] aren [59:44] t working with our current [59:45] policy, we might want to [59:47] reflect on the policy and quit [59:47] saying that it [59:48] s evidence based [59:49] and that it [59:50] s delivering the [59:52] results, because I agree with [59:52] you, Reagan. It [59:54] s not. So [59:54] there [59:56] s work to do there. This [59:59] discussion is around how we do [1:00:00] it. Councilmember Dunn has [1:00:01] ideas. I [1:00:02] ve got ideas. Council [1:00:03] member Fain has asked every [1:00:04] member on the dais, and the [1:00:06] executive has policy ideas, and [1:00:06] that [1:00:07] s what we were sent here [1:00:10] to do. And the problem with the [1:00:11] King County Regional Homeless [1:00:15] Authority is it takes seven [1:00:17] policymakers on this dais out [1:00:20] of the game. We send two over, [1:00:22] and the executive, the city of [1:00:24] Seattle sends two over. And the [1:00:25] mayor and our suburban city [1:00:28] partners sent some [1:00:29] representatives. This [1:00:31] government, following the work [1:00:32] of Jim Ellis in the 50s and [1:00:34] 60s, was built to be the [1:00:37] regional government [1:00:39] As the region boomed, as it [1:00:41] grew, he saw that there were [1:00:42] going to be pressing regional [1:00:44] problems that needed [1:00:45] cooperation across municipal [1:00:47] boundaries. Your point, ceo [1:00:50] Kim, about a regional response [1:00:53] to homelessness is is correct. [1:00:53] We [1:00:54] ve got to cooperate around [1:00:56] the region. But would say after [1:00:59] trying this for seven years now [1:01:01] at the Kcra, where the vision [1:01:02] seemed to be, we were going to [1:01:04] have kind of one answer with [1:01:06] maybe some subregional plans. [1:01:07] It that hasn [1:01:08] t worked. What [1:01:09] what the South County [1:01:10] leadership wants to do is [1:01:11] different than what folks want [1:01:13] to do in the city of Seattle. [1:01:15] We cannot I don [1:01:15] t believe [1:01:17] politically have a one size [1:01:19] policy response to this [1:01:20] challenge around the region. [1:01:22] And if we allow some [1:01:23] experimentation in different [1:01:25] things, we might see, you know, [1:01:28] what works. But the the point I [1:01:30] want to deliver here is we [1:01:30] ve [1:01:32] got a structure that doesn [1:01:33] t [1:01:35] allow us to work on this [1:01:37] effectively through the Kcra, [1:01:38] and I don [1:01:39] t see, particularly [1:01:41] after you bring the contracts [1:01:42] back or direct service [1:01:44] provision, what the value [1:01:46] proposition is, what the [1:01:49] business case is to have an [1:01:51] entirely separate standalone [1:01:53] government with with [1:01:55] confederated leadership to run [1:01:57] just a little piece of this. [1:01:59] The Mis, the coordinated entry, [1:02:01] the emergency response and the [1:02:03] continuum of care. Those are [1:02:06] regional functions. And I don [1:02:06] t [1:02:09] understand why this regional [1:02:09] government shouldn [1:02:11] t be charged [1:02:13] with carrying them out. We did [1:02:15] much of them, you know, before. [1:02:15] I don [1:02:18] t know why we would pay [1:02:21] executives, accountants, [1:02:23] auditors, lawyers for a whole [1:02:26] separate government to do that. [1:02:27] Maybe in the course of these [1:02:29] regional conversations, the [1:02:30] value proposition will [1:02:33] magically appear. But I don [1:02:33] t [1:02:35] see it. And I think we ought to [1:02:37] send a clear signal that there [1:02:39] we can have the discussions [1:02:39] there, but we don [1:02:40] t need a [1:02:41] separate government to do it. [1:02:43] And I need to say there is some [1:02:45] urgency to this. The audit that [1:02:46] triggered this current [1:02:48] conversation concluded with a [1:02:49] review of a time period, I [1:02:51] think, through last JULY. So [1:02:55] more than a year ago, and we [1:02:56] still, as we sit here today, [1:02:57] don [1:03:00] t have clarity and answers. [1:03:04] In AUGUST of 2026 about the [1:03:06] financial condition with the [1:03:09] books are at the Kaikoura. Why [1:03:15] does that matter to the county? [1:03:18] Were there banker? I chair the [1:03:20] Executive Finance Committee. I [1:03:24] am extremely nervous. The we [1:03:24] re [1:03:26] like to run the checking [1:03:27] account to put it in plain [1:03:29] English. Right. The last [1:03:30] meeting we had a few weeks ago, [1:03:32] just before late JULY, they [1:03:37] were $65 million overdrawn, $65 [1:03:39] million. Our policies allow for [1:03:42] an occasional inadvertent [1:03:43] deficit, but this has gone on [1:03:46] and on and on for years now. [1:03:48] Part of it is, I think, some [1:03:49] mismanagement. It [1:03:50] s part of [1:03:50] it [1:03:51] s overspending, but part of [1:03:51] it [1:03:53] s also the structure. They [1:03:53] don [1:03:55] t they never set up at the [1:03:58] cash and operating capital [1:04:00] system for, in other words, to [1:04:02] have the float to address the [1:04:04] difference between time money [1:04:05] was received and time going [1:04:06] out. So we charge interest on [1:04:06] that. That [1:04:09] s added some costs. [1:04:12] Why we would continue that [1:04:14] structure to send money out to [1:04:16] a third party entity from a [1:04:18] financial sense perspective, I [1:04:18] don [1:04:19] t know. But I will just say [1:04:21] the longer this goes on and I [1:04:23] understand from MR. Robert, [1:04:25] maybe this is ticked down to 50 [1:04:27] million or so now, but I [1:04:27] m [1:04:28] going to send a letter as [1:04:29] CHAIRMAN Of the Executive [1:04:31] Finance Committee to the case. [1:04:32] Haha. We have a meeting, I [1:04:34] think, Thursday, because I said [1:04:34] don [1:04:35] t cancel it. We need an [1:04:38] update on this. Asking for what [1:04:40] the status is of the accounts [1:04:42] receivable and what the plan is [1:04:45] to make this pool whole. To get [1:04:47] back to zero. And I think we [1:04:48] need to have answers in a [1:04:50] couple of weeks. It [1:04:51] s gone on [1:04:53] for too long and I don [1:04:54] t [1:04:57] believe that we can, in good [1:04:58] conscience, allow it to go on [1:05:01] for another year or another six [1:05:03] months. While regional [1:05:05] conversations occur. This is [1:05:06] very, very, very serious. We [1:05:06] re [1:05:07] out of compliance with our [1:05:09] audit standards. We [1:05:09] re out of [1:05:12] compliance with our policies. [1:05:15] And I do not support loaning [1:05:17] the cra money because I [1:05:18] m not [1:05:19] sure how they would pay it [1:05:22] back. So, uh, I wanted to [1:05:23] follow up on Councilmember [1:05:23] Dunn [1:05:24] s, I think, correct [1:05:27] remarks about policy, but also [1:05:29] how you make change in the [1:05:31] policy is driven in large part [1:05:33] by the ability to do it. This [1:05:35] dais has the regional policy [1:05:36] committee has elected [1:05:37] representatives from all over [1:05:38] the county at the rpc. [1:05:40] Remember, county members. City [1:05:42] of Seattle. Members, suburban [1:05:43] city members. We come together. [1:05:45] We have structures here. This [1:05:46] work can be done and it is [1:05:48] important work. But I [1:05:48] ve [1:05:50] concluded I don [1:05:51] t think that [1:05:52] the executive in his report, [1:05:54] the stabilized is fine. I [1:05:54] d [1:05:55] call it an accounting [1:05:58] transition is what I replace [1:06:00] right size with. And then [1:06:01] terminate, not reset. I think [1:06:04] you got three wrong words. Uh, [1:06:07] and, um, with that, I do think [1:06:08] the exac and the mayor have [1:06:10] done a good job in making a big [1:06:11] first step at bringing these [1:06:12] contracts back, because that [1:06:14] will help mitigate some of the [1:06:16] ongoing problems. But final [1:06:18] question in the motion, or [1:06:18] maybe it [1:06:19] s the first question I [1:06:21] have the statement we asked for [1:06:22] an assessment of the risk to [1:06:22] the county [1:06:24] s investment pool [1:06:26] and identification of completed [1:06:27] or recommended actions to [1:06:30] mitigate this is on page 259 of [1:06:32] the materials page. I think [1:06:37] four of your appendix. This is [1:06:39] inadequate in terms of a [1:06:41] response to this risk that [1:06:41] we [1:06:44] re looking at here. It says [1:06:44] kcrw [1:06:46] s negative cash balance [1:06:47] presents several risks to the [1:06:48] county investment pool, [1:06:49] including negative findings by [1:06:49] the auditor [1:06:50] s office and [1:06:51] repayment uncertainty. And then [1:06:52] the final sentence is something [1:06:53] I don [1:06:54] t understand a [1:06:56] recommended action to mitigate [1:06:59] risks is analysis of the [1:06:59] county [1:07:02] s repayment obligations. [1:07:02] I don [1:07:03] t know what you [1:07:03] re saying [1:07:06] there. Maybe you can enlighten [1:07:07] me a little bit, but this area [1:07:09] of the report and actually this [1:07:14] body of work needs attention. [1:07:16] Thank you. Councilmember [1:07:17] Dembowski. And first of all, I [1:07:19] would agree that the negative [1:07:21] cash balances is a risk, [1:07:22] something that I am also [1:07:24] worried about. Um, there is a [1:07:25] risk to the investment pool. [1:07:26] There is a risk to the county [1:07:27] s [1:07:28] general fund and we have to [1:07:30] mitigate that. So I would be [1:07:31] definitely supportive of in our [1:07:33] discussion on Thursday, going [1:07:34] through and figuring out what [1:07:37] exactly to request from Kcra. [1:07:39] So the analysis that that needs [1:07:41] to happen and that is happening [1:07:43] is reviewing all of those [1:07:46] unreconciled receivables and [1:07:47] figuring out where they came [1:07:50] from and who ultimately should [1:07:51] be paying for them. To the [1:07:52] degree that we get to a point [1:07:54] where there are receivables or [1:07:54] there [1:07:55] s cash that has been [1:07:58] spent that we cannot recover, [1:08:00] we will have to do some sort of [1:08:02] repayment plan in conjunction [1:08:04] with the city and the county to [1:08:05] fill that gap. And that [1:08:05] s [1:08:05] that [1:08:06] s the analysis that [1:08:06] s [1:08:08] referring to. We have to figure [1:08:10] out what exactly the gap is and [1:08:12] then work with the city to [1:08:13] figure out when and how to pay [1:08:15] that gap. So that is that is [1:08:16] the next steps. Turning point [1:08:18] has done a good job. And in [1:08:20] starting to go deep into those [1:08:23] accounting transactions, and we [1:08:24] need to see the results of that [1:08:25] to really get there. So that [1:08:27] that is what that is referring [1:08:27] to. [1:08:28] Thank you very much, Aaron. I [1:08:30] agree, I think in plain [1:08:31] English, once we figure out [1:08:34] what the deficit is, in other [1:08:35] words, we receive all the [1:08:36] receivables that are to be [1:08:38] received. Call it. Well, it [1:08:39] s [1:08:40] 65 million there, but maybe [1:08:40] it [1:08:42] s 50 million today. Yeah. [1:08:43] Whatever [1:08:44] s left and it [1:08:45] s going [1:08:47] to be eight, ten, 12, $15 [1:08:48] million. Who knows what it is. [1:08:49] The city and the county are [1:08:51] going to have to write a check. [1:08:51] That [1:08:52] s correct. I would just [1:08:54] like to stop the bleeding. I [1:08:55] would just like to stop [1:08:56] reading. And the the thrust of [1:08:59] the of this report seems to [1:09:01] indicate that there is a [1:09:02] possibility that this entity [1:09:06] would continue on, and I don [1:09:06] t [1:09:07] see the value proposition from [1:09:10] a policy perspective or a [1:09:12] financial perspective. I just I [1:09:12] just don [1:09:13] t I don [1:09:13] t I don [1:09:14] t see [1:09:16] it. [1:09:18] Councilmember Fain. [1:09:20] Thank you. And thank you for [1:09:21] all of your work on this. I [1:09:22] know many of you weren [1:09:23] t [1:09:25] present until recently, but [1:09:25] you [1:09:26] re diving in and I [1:09:28] appreciate your thoughtfulness. [1:09:31] And, um, in your approach. Uh, [1:09:31] I [1:09:34] d like to tag on to what my [1:09:36] colleagues have said so far [1:09:40] about, um, the lack of truly [1:09:43] regional approach in allowing [1:09:46] the entire county a voice and a [1:09:49] say in how dollars are spent [1:09:54] or, um, contracts are selected. [1:09:57] Um, and so beyond whether or [1:10:01] not Kcra exists, which it will [1:10:02] largely need to do for Coc [1:10:04] funding. And in that piece, I [1:10:07] understand. Um, but beyond [1:10:09] that, the county is going to be [1:10:12] taking on 100 of these, um, [1:10:15] provider contracts in JANUARY. [1:10:17] And so I understand that the [1:10:19] county and the city are working [1:10:22] towards a no for, um, in the [1:10:27] later part of 2027. So I have [1:10:29] two questions. Slash concerns [1:10:31] relating to that. One is will [1:10:33] all of the contracts be, um, [1:10:37] part of the nova, meaning that [1:10:39] the county and the city will [1:10:47] align on, um, funding and, um, [1:10:50] providers? The idea is really [1:10:52] to address the previous [1:10:54] structure, which was everybody [1:10:55] was contracting with different [1:10:57] providers and nobody knew what [1:10:58] anyone else was doing. So I [1:11:01] understand the need to [1:11:03] collaborate and understand that [1:11:04] we shouldn [1:11:08] t, um, essentially [1:11:10] have providers potentially [1:11:11] receiving the same amount of [1:11:13] funding to do the same work for [1:11:15] the county and the city. That [1:11:17] being said, I worry if all of [1:11:18] the contracts are going to be [1:11:19] under the Nova, we [1:11:19] re going to [1:11:21] run into the same issue, which [1:11:25] is, um, that the entire county [1:11:29] might not have a voice in how [1:11:31] services are provided in [1:11:32] different cities and different [1:11:33] regions. So that [1:11:34] s one around [1:11:37] the nova and then the other, [1:11:39] uh, question I have and I [1:11:39] d [1:11:41] like to hear a little bit more [1:11:46] about is how will the council [1:11:51] be a part of, um, oversight [1:11:54] input into the contracts after [1:11:56] JANUARY? Um, currently there [1:11:58] are two representatives on the [1:12:01] cra that receive updates on the [1:12:03] status of the contracts, the [1:12:06] outcomes, um, and all of that. [1:12:09] But once the hundred contracts [1:12:13] go over to dcs, will we get I [1:12:14] mean, ideally we would not just [1:12:16] get an annual report that [1:12:17] council would be able to [1:12:19] provide some input in some [1:12:20] manner, as suggested by my [1:12:22] colleagues, in how those [1:12:26] dollars should be. Um, spent. [1:12:28] So those are kind of the two [1:12:28] areas I [1:12:29] d love to hear more [1:12:30] about. [1:12:31] Do you want me to start? [1:12:32] Yeah, I can start. [1:12:33] You going to turn on your [1:12:35] thing, Jelani? [1:12:37] Stone there. Uh, I can start [1:12:38] with the first question and [1:12:40] partial answer. Um, so, look, [1:12:42] every crisis offers plenty of [1:12:43] opportunity to look at the way [1:12:45] we do business and to strive [1:12:47] for efficiencies and to, more [1:12:49] importantly, do things better. [1:12:51] So, uh, the main effort here [1:12:52] between the county and the city [1:12:54] is to really look at the way we [1:12:56] contract. Can we harmonize [1:12:58] language? Can we synchronize on [1:13:00] outcomes that we want to see, [1:13:01] you know, settle on some [1:13:02] boilerplate text for our [1:13:03] contracts and just generally [1:13:06] simplify the process. Um, and [1:13:07] the second part to that too is [1:13:09] also look at who pays for what. [1:13:11] So, you know, King County [1:13:12] Seattle and King County, does [1:13:14] King County pay for a contract [1:13:16] for services that are delivered [1:13:17] in Seattle or to Seattle? Take [1:13:18] that on and in return, if [1:13:18] there [1:13:19] s going to be some fun [1:13:21] swapping, how do we look at [1:13:23] that as a region? And so those [1:13:24] are some of those efforts that [1:13:24] we [1:13:25] re trying to do to simplify [1:13:26] the process and also make [1:13:27] things better. [1:13:32] I would say also, um, the, the, [1:13:34] the, the whole point of Anova [1:13:36] process is to ensure [1:13:38] competitive processes in [1:13:41] contracting that has not, I [1:13:44] believe that when Kcra Chase [1:13:47] started, there was an intent to [1:13:49] put both the city and county [1:13:51] contracts out for procurement [1:13:53] and that never happened. And so [1:13:55] part of what, um, what we [1:13:57] wanted to do was the initial [1:13:59] step in rolling the contracts [1:14:02] back, uh, minimise disruption. [1:14:05] But, um, the conversations, I [1:14:07] think, uh Councilmember Fain. [1:14:08] To your point, we do need to [1:14:10] have a strategic conversation [1:14:14] about how we are planning to re [1:14:16] procure those contracts. Are [1:14:18] these the right strategies? Do [1:14:20] we have the right mix of [1:14:22] strategies employed and how we [1:14:24] are thinking about these funds? [1:14:27] I think those are not questions [1:14:29] that we have answers to today. [1:14:31] But, uh, when the contracts [1:14:32] come back, we will be working [1:14:33] closely with our provider [1:14:35] community and addressing, you [1:14:36] know, some of the policy [1:14:38] questions, quite frankly, that [1:14:39] some of your colleagues raised. [1:14:42] Um, I think the other piece of [1:14:43] this, uh, the contracts, when [1:14:44] they do come back to the [1:14:47] county, uh, they will be they [1:14:50] will be put forward through the [1:14:50] county [1:14:52] s budgeting process. So [1:14:54] you will have a recommendation [1:14:56] from the executive in his [1:14:59] second omnibus for the amount [1:15:00] of county contracts. Again, we [1:15:02] are hoping that, um, you don [1:15:03] t [1:15:04] do much to change them because [1:15:06] we want to maintain continuity [1:15:08] for this next year. But once [1:15:09] the contracts come back, once [1:15:11] that, you know, sort of, um, [1:15:12] bucket of funds come back to [1:15:14] the county, we will, as with [1:15:17] every other budget, uh, that [1:15:18] goes through the budget [1:15:20] process, the executive branch [1:15:21] will be working and [1:15:23] collaborating closely with the [1:15:25] Council on the right [1:15:26] strategies, the right mix, the [1:15:30] right dosage for those funds. [1:15:32] Thank you. Uh Councilmember [1:15:33] Mosqueda. Did you want to jump [1:15:37] in now? Go ahead. [1:15:39] Um, well, first I want to say [1:15:43] thank you so much for, as the [1:15:44] chair said, um, providing the [1:15:45] report, we know that there [1:15:45] s a [1:15:47] lot of moving parts here. So [1:15:49] thank you for sending this over [1:15:51] and working in partnership with [1:15:53] the council on the timeline [1:15:54] that had been suggested. [1:15:55] Obviously, there was a lot of [1:15:57] work that went into this with, [1:15:58] um, the announcement made with [1:16:00] the city of Seattle as well. So [1:16:01] we appreciate you were both [1:16:02] responding to the report [1:16:04] request, um, acting in real [1:16:05] time to figure out how to [1:16:07] stabilize and trying to figure [1:16:08] out both how to do that in a [1:16:10] way that minimized impact on [1:16:12] those experiencing homelessness. [1:16:14] Are contracted providers, and [1:16:15] really making sure that we are [1:16:16] sending a message to all in [1:16:18] this region that here in King [1:16:20] County, we can govern as [1:16:21] opposed to what we see in the [1:16:23] other Washington. We are going [1:16:24] to offer stability to folks. [1:16:25] And I still think that that [1:16:25] s [1:16:27] an important message for us as [1:16:28] a collective body, to be [1:16:29] sending in this moment with so [1:16:31] much uncertainty, especially [1:16:32] around some of the dollars that [1:16:33] have been talked about, that we [1:16:35] will continue to strive for as [1:16:37] much stability and certainty as [1:16:38] we can, not only for the [1:16:41] contracted providers, but by [1:16:42] doing so, providing stability [1:16:43] to those who are experiencing [1:16:45] homelessness or the folks that [1:16:46] will fall into homelessness. So [1:16:48] thank you for submitting this [1:16:50] report. And that said, I know [1:16:50] that there [1:16:51] s a lot that is [1:16:52] still in the works. I think [1:16:52] there [1:16:55] s some conversations in [1:16:57] this, uh, well, some language [1:16:59] in this report that really is [1:17:02] more of a to be fleshed out. [1:17:03] Right, and along the lines of [1:17:06] what Councilmember Fain noted, [1:17:07] I do want to make sure that the [1:17:09] council and not only the [1:17:11] members who are sitting on the [1:17:12] board, but the members of the [1:17:14] council have an active role in [1:17:15] figuring out what those next [1:17:17] steps look like. Because, um, [1:17:19] this is an area that is clearly [1:17:20] of interest to members of the [1:17:22] media as has been described, [1:17:24] but most importantly to members [1:17:25] who are providing direct [1:17:26] services and wanting to see [1:17:29] that certainty. Um, I do have a [1:17:31] question about how contracts [1:17:32] are being moved over, and then [1:17:33] I have some comments, if you [1:17:33] don [1:17:35] t mind, MISTER Chair. Um, I [1:17:37] know that dhs is trying to [1:17:39] ensure continuity of services [1:17:41] with 100 plus contracts [1:17:44] transferring over. Uh, JANUARY [1:17:46] 2027. And in order to do so, we [1:17:48] need staff. And you [1:17:48] ve talked [1:17:49] about that a little bit, but I [1:17:50] just want to make sure that [1:17:50] we [1:17:53] re not biasing our hiring [1:17:54] and recruitment of the staff [1:17:56] that could potentially come in [1:17:58] and be ready to ensure [1:18:01] continuity and know best the [1:18:02] relationships with the [1:18:05] community organizations who are [1:18:06] trying to provide care, not [1:18:08] biasing those individual staff [1:18:10] members because they worked at [1:18:11] Kcra. We [1:18:12] ve talked a lot about [1:18:15] the concern the entity has, and [1:18:17] we even heard concern today in [1:18:18] public testimony about the [1:18:21] executive director. I just want [1:18:22] to make sure that the folks who [1:18:23] are on the front line, many of [1:18:23] whom we [1:18:24] ve heard from today in [1:18:25] public comment and we [1:18:25] ve [1:18:27] received a letter, are not [1:18:28] being biased in some way. If [1:18:30] they are also applying for [1:18:32] positions within dhs. So can [1:18:34] you confirm for us or assure [1:18:36] for us that that is not [1:18:37] filtering in to the analysis of [1:18:39] who gets a first round of [1:18:41] interviews? And for us to be [1:18:43] sure that that continuity is [1:18:44] preserved? I think that [1:18:44] s a [1:18:46] really critical piece for the [1:18:47] community to know that we are [1:18:50] trying to maintain a network, [1:18:51] even if it is not within the [1:18:52] existing system. [1:18:55] In the most simplest terms, [1:18:56] yes, we are going to make sure [1:18:59] that folks are not biased at [1:19:00] all. We recognize that the [1:19:02] staff at Kcra do hard work [1:19:04] every day. Many of them were [1:19:05] colleagues of mine when I was a [1:19:06] case manager in the field, [1:19:08] housing individuals in this [1:19:10] county myself. We are going to [1:19:10] we [1:19:11] re going to hold a [1:19:12] competitive hiring process [1:19:12] that [1:19:13] s in alignment with our [1:19:16] agreement with Pro Tech 17. We [1:19:18] also expect current cra [1:19:19] employees who are interested in [1:19:20] King County employment or [1:19:22] frankly, for employment at the [1:19:23] city of Seattle to be very [1:19:25] competitive because, frankly, [1:19:26] they have experience doing the [1:19:26] very work that we [1:19:27] re seeking to [1:19:27] do. [1:19:30] Okay. Thank you. Um, and then [1:19:32] as we know as well, um, dhs and [1:19:35] Kcra, both entities have been, [1:19:38] um, found to have had slow [1:19:40] execution of contracts or [1:19:40] making payments. Right. That [1:19:41] s [1:19:42] not unique to Kcra. It [1:19:42] s an [1:19:43] issue that I know this new [1:19:44] executive is actively working [1:19:47] on at dhs, but I [1:19:48] m concerned [1:19:50] about additional capacity, um, [1:19:52] being taken on before those [1:19:54] staff members are trained up. [1:19:57] So can you remind us what is [1:19:58] actively happening right now to [1:20:00] remediate the existing issues [1:20:03] at dhs? And in regards to [1:20:05] payment of contracts on time? [1:20:08] Um, because we do get a lot of [1:20:10] emails lately, I think coming [1:20:11] from a place of wanting to make [1:20:13] sure that every t is crossed, [1:20:15] every eye is dotted, but [1:20:17] sometimes that triple checking [1:20:20] almost, um, more than that, I [1:20:22] heard one from one contractor [1:20:24] last month that there was six [1:20:25] different reports that they [1:20:26] were asked to fulfill in one [1:20:28] time, one month time frame, and [1:20:28] all of that [1:20:29] s leading to [1:20:30] delayed payments for existing [1:20:32] contractors. So can you talk [1:20:34] about building capacity as you [1:20:35] try to onboard additional [1:20:36] people and take on additional [1:20:37] work? [1:20:39] Yeah, I can start. So, yes, um, [1:20:41] part of our effort is to bring [1:20:43] in this capacity early of I [1:20:44] noted earlier, we [1:20:45] ve hired an [1:20:46] hr specialist who can just [1:20:47] focus on hiring and bringing [1:20:48] staff on board. This will [1:20:50] provide critical time for folks [1:20:52] to be trained properly, receive [1:20:53] updated fraud prevention [1:20:55] training to ensure that staff [1:20:57] are ready to go. Not into [1:20:58] JANUARY or to summer, but much [1:21:00] earlier than that. Second, the [1:21:03] team that this work is going to [1:21:05] is very experienced with this [1:21:07] work. Many of them worked for [1:21:09] King County and work with these [1:21:12] contractors. Uh, the contracts [1:21:12] we [1:21:14] re talking about prior to. [1:21:14] Kcrw [1:21:15] s, uh, you know, [1:21:17] formation. So we [1:21:17] re working [1:21:18] hard to make sure that it [1:21:18] s a [1:21:20] smooth process as possible. [1:21:20] We [1:21:22] re starting this work early. [1:21:22] We [1:21:23] re engaging in a lot of [1:21:24] conversations with the folks [1:21:26] that we will ultimately have [1:21:27] contracts with. I [1:21:27] m also happy [1:21:29] to say that we [1:21:29] ve looked at [1:21:31] every individual contract. It [1:21:31] s [1:21:33] really only about 10% of the [1:21:35] contracts and totals about ten [1:21:35] we don [1:21:36] t have an existing [1:21:38] business relationship with. So [1:21:38] we [1:21:39] re in conducting some early [1:21:40] outreach to make sure that [1:21:41] those folks are ready to [1:21:41] conduct business with the [1:21:42] county. [1:21:43] Great. [1:21:44] And maybe just the last [1:21:46] comment, if I MAY, and thank [1:21:48] you. I was, um, listening [1:21:51] intently on the zoom as I was [1:21:53] on the way here, but I wanted [1:21:56] to just underscore for maybe [1:21:57] members of the public that are [1:21:59] listening. Um, I think there [1:21:59] s [1:22:00] shared frustration between the [1:22:01] executive branch and the [1:22:03] legislative branch, shared [1:22:04] frustration amongst colleagues [1:22:06] here on the council with where [1:22:06] we [1:22:08] re at right now with Kcra. [1:22:09] But I do want to make sure that [1:22:09] we [1:22:11] re not conflating the [1:22:12] agency. The King County [1:22:13] Regional Homelessness [1:22:15] Authority, specifically with [1:22:16] the decades long proven [1:22:18] practices of Housing First [1:22:20] policies, housing first is a [1:22:22] national standard, and it is a [1:22:24] proven, evidence based policy, [1:22:25] contrary to what the federal [1:22:27] administration is trying to [1:22:30] assume or impugn through their [1:22:32] continuum of care contracts and [1:22:33] their nova process and the [1:22:35] language that they use. Housing [1:22:36] first is an approach in our [1:22:38] region that has been something, [1:22:39] a point of pride for a very [1:22:41] long time. And this is true [1:22:42] even before the King County [1:22:44] Regional Homelessness Authority [1:22:46] was created. I give you some [1:22:47] examples of evidence of the [1:22:48] Housing First policy showing [1:22:50] higher retention rates. Studies [1:22:51] cited by the National Alliance [1:22:52] to End Homelessness showed that [1:22:55] over 80% of individuals with [1:22:56] complex needs remained housed [1:22:58] after a year. This is much [1:22:59] higher than other intervention [1:23:02] strategies. 88% of reduction. [1:23:04] There was an 88% reduction in [1:23:06] homelessness among individuals [1:23:07] experiencing homelessness, [1:23:09] according to a comprehensive [1:23:10] United States Department of [1:23:11] Housing and Urban Development [1:23:13] analysis that reviewed 26 [1:23:14] separate studies. And they [1:23:16] found that utilizing Housing [1:23:18] First approach decreased [1:23:19] overall time spent in [1:23:21] homelessness by 88% and [1:23:22] increased general housing by [1:23:25] 41%. That is unparalleled in [1:23:26] other strategies. Stability, [1:23:28] Foundation. They provide a [1:23:31] stability for getting into [1:23:33] homelessness. According to us, [1:23:34] out of homelessness. According [1:23:35] to the National Low Income [1:23:36] Housing Coalition, which [1:23:38] confirmed that stable housing [1:23:39] through Housing First provides [1:23:41] a necessary foundation for [1:23:44] personal recovery and accessing [1:23:46] health services. I think that [1:23:47] there is a really important [1:23:49] data point around veterans. We [1:23:51] saw a 55% drop in veteran [1:23:57] homelessness between 2009 and [1:23:59] 2022. The federal government [1:24:01] paired Housing First principles [1:24:01] with the hud [1:24:03] s Vash voucher [1:24:05] program, resulting in a 55% [1:24:06] reduction in veteran [1:24:08] homelessness. The list goes on. [1:24:10] I will spare you in the moment. [1:24:10] I [1:24:12] m happy to provide this to [1:24:13] members of the public and my [1:24:14] colleagues and the executive [1:24:15] branch as well, but I want to [1:24:16] make sure that we don [1:24:17] t, in the [1:24:20] analysis of how we transition [1:24:22] away from Kcra in its current [1:24:24] form to bringing more contracts [1:24:27] into the King County family and [1:24:28] shared responsibility with [1:24:30] other city jurisdictions, not [1:24:31] just Seattle, but with other [1:24:33] city jurisdictions. I want to [1:24:33] make sure that we [1:24:33] re not [1:24:35] conflating the rise in [1:24:36] homelessness with the failure [1:24:39] of, um, a policy that has [1:24:40] actually been proven. Housing [1:24:42] first is absolutely an [1:24:43] appropriate policy that has [1:24:45] decades long data behind it, [1:24:47] and our region needs to, I [1:24:48] think, look at every evidence [1:24:50] based strategy, especially when [1:24:50] there [1:24:52] s compounding tragedies [1:24:54] of the opioid crisis, rising [1:24:55] costs for housing in our [1:24:57] region, and the need for us to [1:24:58] provide that stability compared [1:24:59] to what we [1:24:59] re seeing at the [1:25:02] federal level. I thank you for [1:25:03] hearing those statistics, [1:25:04] because I think that there [1:25:05] s [1:25:07] shared and understandable [1:25:09] frustration with Kcra. And as [1:25:12] we seek to try to mitigate for [1:25:14] the problems that we see at [1:25:17] Kcra, we do need to remain [1:25:19] focused on what has worked. And [1:25:21] for me and for the statistics [1:25:22] that our team has looked at and [1:25:25] for the nation, including in [1:25:26] the previous administration, [1:25:28] previous administrations [1:25:29] through hud, they point to [1:25:31] Housing First as a proven [1:25:32] strategy to get folks out of [1:25:34] homelessness. So much more to [1:25:35] do in terms of investment in [1:25:36] that area, but just want to [1:25:36] make sure that [1:25:37] s not being [1:25:39] conflated. [1:25:41] Thank you. Councilmember [1:25:44] Mosqueda. Um, let me close out [1:25:46] this section and before I call, [1:25:47] uh, case leadership, since we [1:25:48] had questions about the [1:25:50] financial situation, I want to [1:25:51] give them an opportunity to [1:25:52] provide an update on the [1:25:53] corrective action plan. But [1:25:55] just as we close this section, [1:25:56] uh, first of all, I want to [1:25:58] thank the executive for, uh, [1:26:01] for their work on the report. I [1:26:03] understand that part of it is [1:26:04] incomplete in a sense, because [1:26:05] I think some of the questions [1:26:07] that we asked, I think your [1:26:08] response is we need more time [1:26:10] and engagement to be able to [1:26:11] tackle them. And I appreciate [1:26:12] that. And I, I, I think [1:26:13] ultimately I agree with that. [1:26:14] And I think one of the things [1:26:16] that I would highlight is I saw [1:26:18] a pretty, you know, what I [1:26:20] would consider deliberate, uh, [1:26:22] but tight timeline through [1:26:24] first quarter of 2027 to be [1:26:25] able to make those decisions. [1:26:26] So I don [1:26:27] t see this as an [1:26:29] indefinite, um, trying to [1:26:30] balance the engagement that you [1:26:32] want to have. I also think that [1:26:33] we need to be very careful with [1:26:34] the fact that we [1:26:34] re in the [1:26:35] middle of a federal application [1:26:36] process with the continuum of [1:26:38] care. And I think, I think one [1:26:39] of the, you know, one of the [1:26:42] guiding principles, I would [1:26:43] describe it as do no harm, [1:26:44] which means don [1:26:45] t make the [1:26:47] situation worse. And I think [1:26:48] the loss of federal funding [1:26:49] would be something that would [1:26:50] certainly make the situation [1:26:51] worse. And so I think we need [1:26:53] to be careful about taking [1:26:54] actions that might undermine [1:26:55] our ability to be able to be [1:26:56] competitive for that federal [1:26:58] funding. And I think the steps, [1:26:59] you know, if our federal [1:27:01] partners are listening, we are, [1:27:02] you know, taking, you know, [1:27:02] we [1:27:03] re not taking status quo. We [1:27:05] are taking steps to be able to [1:27:06] address the issues that have [1:27:09] been found. Uh, but we are [1:27:11] continuing to have considered [1:27:14] to be the applicant for the [1:27:16] cycle until we make decisions [1:27:17] as to whether we, as a region, [1:27:18] want to take a different [1:27:19] approach. At least, you know, [1:27:22] at this moment. Uh, so I, I [1:27:25] support that that approach. And [1:27:26] I think, you know, I don [1:27:27] t want [1:27:28] to like I think there [1:27:28] s going [1:27:29] to be further conversations [1:27:31] into the policy debate that we [1:27:32] sit here. But I just wanted to [1:27:33] sort of state my own [1:27:36] perspective on, on this. Um, I, [1:27:37] I think there [1:27:38] s broad agreement [1:27:39] here, I think, from both [1:27:40] executive and legislative [1:27:41] branches, that the current [1:27:43] status quo is not acceptable. [1:27:45] Right. I think the numbers that [1:27:46] Councilmember Dembowski [1:27:48] highlighted are not are not [1:27:50] good. Uh, I think we owe to [1:27:51] people who are unhoused in our [1:27:53] region to, to, you know, work [1:27:55] to identify the best structure [1:27:56] and the best policy that we [1:27:58] can. And we should be open to, [1:28:00] you know, thinking about this [1:28:00] and what [1:28:02] s working my own [1:28:03] perspective. I agree with [1:28:04] Councilmember Mosqueda that I [1:28:05] think Housing First is and is a [1:28:07] model that has been shown to be [1:28:09] effective. The problem is that [1:28:10] the, you know, as the model [1:28:12] suggests, that housing is the [1:28:12] key part, and that [1:28:13] s the part [1:28:13] that we [1:28:14] re missing in our [1:28:17] community. And I think [1:28:18] appreciate, you know, [1:28:19] Councilmember Dunn your [1:28:20] perspective about potentially [1:28:21] trying different approaches. I [1:28:22] think the challenge we [1:28:22] ve been [1:28:23] dealing with this, with the [1:28:25] with the federal funding is [1:28:26] that, you know, there are [1:28:27] people who are housed with our [1:28:29] current set of resources. And [1:28:31] so if we shift resources, as [1:28:33] the feds are wanting to do in [1:28:36] other areas without, that [1:28:37] creates a gap in housing. And [1:28:37] so that [1:28:38] s my concern about [1:28:40] being, you know, sudden in [1:28:41] terms of pulling resources [1:28:43] away. If we had a whole [1:28:44] additional set of resources, we [1:28:45] could have the conversation to [1:28:46] have. As it gets allocated, we [1:28:47] MAY need to have a conversation [1:28:48] as to how the current set of [1:28:49] resources needs to be [1:28:50] allocated, but we just need to [1:28:51] be very careful, because what I [1:28:52] don [1:28:53] t want to do is to lead to [1:28:54] a situation where those numbers [1:28:55] actually skyrocket, because [1:28:56] we [1:28:57] re losing, uh, we [1:28:58] re losing, [1:29:00] uh, current, uh, services [1:29:03] capacity locally. Um, so, uh, I [1:29:04] appreciate the work. I think I [1:29:06] consider this to be a, you [1:29:08] know, uh, not an end of a [1:29:10] conversation. But, uh, as the [1:29:11] executive noted, and engagement [1:29:13] over the next few months to [1:29:15] find a final answer, at least [1:29:16] from my perspective, I don [1:29:16] t [1:29:16] think I [1:29:17] m speaking for the [1:29:17] whole council. I [1:29:18] m just saying [1:29:19] from my perspective, that [1:29:19] s how [1:29:22] I heard the report. Uh, I think [1:29:22] there [1:29:24] s clearly some questions. [1:29:26] And so there was a motion that [1:29:27] the executive sent over with [1:29:29] this to accept the report, and [1:29:29] i [1:29:30] m going to put that on hold [1:29:32] unless I hear strong commitment [1:29:33] to that, just because I feel [1:29:34] like there are some questions [1:29:35] that people still have about [1:29:37] the financial picture and, and [1:29:38] some of the policy issues. So [1:29:38] we [1:29:39] re not going to take action [1:29:41] on that item. But I do want to [1:29:42] acknowledge the work that was [1:29:44] done by the executive. And in [1:29:45] completing that report, [1:29:46] colleagues and, Lois, we have [1:29:47] any questions for executive [1:29:48] staff right now? I [1:29:48] m going to [1:29:49] invite Kcra leadership to [1:29:50] provide an update on the [1:29:53] corrective action plan. Um, and [1:29:54] I see some notes on that [1:29:55] direction. So thank you very [1:29:58] much to our executive team. Uh, [1:30:00] for the work on this. And I [1:30:00] m [1:30:02] going to invite Doctor Kelly [1:30:03] Kinnison, who [1:30:04] s the ceo of [1:30:05] cascara chair, as well as [1:30:06] William Todd, who [1:30:06] s the [1:30:09] associate deputy for strategy [1:30:10] of Sierra Che. And they [1:30:10] re [1:30:11] going to be providing an update [1:30:14] on the corrective action plan, [1:30:15] uh, as well as any other [1:30:16] updates that you [1:30:16] d like to [1:30:21] provide. Thank you. [1:30:23] I thought I turned. [1:30:25] Thank you, Chair Barone, for [1:30:27] inviting us to give this [1:30:29] update. Um. Thank you. Members [1:30:31] of council, um, and the public [1:30:33] who are listening, uh, just [1:30:35] brief background. As folks [1:30:37] know, I arrived in AUGUST of [1:30:40] 2024 to a greatly imperiled [1:30:42] agency that had been without [1:30:44] permanent leadership in many of [1:30:45] our departments for a year or [1:30:46] more. I [1:30:47] ve worked closely with [1:30:48] the governing board and city [1:30:50] and county partners to address [1:30:53] many aspects of kcr operations. [1:30:55] And thanks to our very talented [1:30:57] staff at Kcra, we [1:30:57] ve made a [1:30:59] number of improvements in the [1:31:01] system. Uh, for example, you [1:31:03] all saw in our 2026 pit count [1:31:05] that we saw for the first time [1:31:06] in many years, the rate of [1:31:08] growth of homelessness begin to [1:31:11] slow. Um, despite sort of [1:31:12] unabated key drivers of [1:31:14] homelessness in our region. [1:31:17] However, it became very clear, [1:31:19] uh, early in my tenure, that [1:31:21] deep expertise was needed to [1:31:23] untangle what was going on in [1:31:26] our finances after, uh, 3 to 4 [1:31:29] years of operations, a series [1:31:31] of operational missteps, um, [1:31:32] and the need to address our [1:31:34] underlying cost reimbursement [1:31:36] financial model. I worked with [1:31:38] the city and county to request [1:31:40] a forensic evaluation to bring [1:31:42] transparency to our financial [1:31:44] situation and create a path [1:31:46] forward for Kcra and our [1:31:48] regional homeless response [1:31:49] system. Since receiving the [1:31:52] forensic evaluation in APRIL, [1:31:54] Casey has worked with urgency [1:31:56] to address issues. Surfaces [1:31:58] surfaced by the evaluation as [1:31:59] well as the longer term [1:32:01] structural issues within the [1:32:04] operations of Kcra. We also [1:32:06] recognize we did not have the [1:32:08] capacity or capability in our [1:32:09] finance department to do this [1:32:11] work, and requested embedded [1:32:12] support. We [1:32:13] re super grateful [1:32:15] to our city and county partners [1:32:16] for providing this support [1:32:17] through Turning Point Strategic [1:32:19] Advisors. Um, I [1:32:19] m going to turn [1:32:21] it over to William Towey to [1:32:22] provide you with an update on [1:32:24] our 90 day corrective action [1:32:26] plan and our work with Turning [1:32:28] Point Strategic Advisors, and [1:32:29] be happy to answer any [1:32:34] questions you have. [1:32:37] Thank you, Doctor Kennison, [1:32:39] chair, Council members. Good to [1:32:40] be back with you. I [1:32:41] m grateful [1:32:43] for the opportunity to be here [1:32:44] and share what we [1:32:53] re up to. I [1:32:55] wanted to provide a brief [1:32:58] update on where we are at with [1:33:01] the 90 day point. Here in the [1:33:02] case corrective action plan, [1:33:05] and particularly how that work [1:33:07] is now transitioning into [1:33:10] financial stabilization and [1:33:11] implementation work being led [1:33:13] by and with Turning Point [1:33:16] strategic partners at a high [1:33:18] level, the controls and [1:33:21] processes that strengthened [1:33:23] during the Cap period remain in [1:33:24] operation, and a number of the [1:33:26] original corrective action [1:33:28] items have now moved from [1:33:31] development into recurring [1:33:33] practice. The 90 day report [1:33:34] largely completes the initial [1:33:40] reporting cycle. Associated [1:33:41] with the corrective Action [1:33:42] Plan, but it does not represent [1:33:45] the end of the work. Turning [1:33:46] point has now completed its [1:33:48] initial assessment and is [1:33:50] embedded with our finance team [1:33:52] working directly on [1:33:54] Reconciliation monthly. Close [1:33:56] financial reporting, internal [1:33:58] controls and implementation. So [1:33:59] increasingly, the work that [1:34:02] began through the Cap is moving [1:34:04] into sustained implementation [1:34:06] and independent validation [1:34:07] through Turning Point. The [1:34:09] important distinction is that [1:34:11] while the formal 90 day cap [1:34:13] reporting cycle is concluding [1:34:14] the underlying financial [1:34:17] improvement work is continuing [1:34:20] and is increasingly being [1:34:21] incorporated into kcrw [1:34:22] s [1:34:33] ongoing financial operations. [1:34:35] One area where that work has [1:34:37] already materially improved our [1:34:39] understanding is the [1:34:41] approximately $8 million in [1:34:43] receivables identified in the [1:34:44] forensic evaluation is not [1:34:46] reconcilable. From the records [1:34:48] available at that time. Turning [1:34:50] Point has substantially [1:34:51] advanced the balance sheet [1:34:53] reconciliation and identified [1:34:55] historical accounting entries [1:34:57] and reporting differences that [1:34:59] help explain that balance. The [1:35:00] work is being validated against [1:35:02] funder records as the county [1:35:04] and city records, so I don [1:35:05] t [1:35:05] want to characterize the [1:35:07] original finding is completely [1:35:08] resolved, but our understanding [1:35:09] of that 8 million is [1:35:11] considerably better today than [1:35:13] it was when the forensic report [1:35:15] was issued. And at the time of [1:35:17] our last report to the [1:35:19] Committee of the whole, I also [1:35:20] want to be careful not to [1:35:23] override that result. The [1:35:24] original 8 million represented [1:35:26] a particular population [1:35:28] identified through the forensic [1:35:30] review, resolving accounting [1:35:32] issues with that population [1:35:34] does not, by itself resolve the [1:35:36] broader historical and [1:35:39] receivables reconciliation. [1:35:40] Turning point. In case you [1:35:41] re [1:35:42] continuing to reconcile [1:35:45] receivables, invoices, advances [1:35:49] and funder records, the broader [1:35:50] work MAY also identify [1:35:52] expenditures paid by kcrw that [1:35:54] were not fully reflected in [1:35:56] historical billings to the city [1:35:58] or county. The broader [1:35:59] reconciliation MAY identify [1:36:00] adjustments in either [1:36:02] direction. That is why we [1:36:02] re [1:36:04] continuing the transaction [1:36:05] level work, rather than drawing [1:36:08] a conclusion from any single [1:36:10] population or balance the [1:36:12] administrative overspend [1:36:13] identified in the forensic [1:36:15] evaluation is also still under [1:36:17] validation. We aren [1:36:17] t [1:36:19] presenting a revised historical [1:36:20] number today because the [1:36:22] balance sheet and receivables [1:36:24] work needs to be sufficiently [1:36:27] complete before that exposure [1:36:29] can be reliably stated in [1:36:31] parallel. Turning point is [1:36:34] developing a 2026 budget and [1:36:36] cash requirements plan so that [1:36:36] we [1:36:38] re addressing both the [1:36:40] historical reconciliation and [1:36:42] the forward looking management [1:36:44] of administrative spending. So [1:36:45] at this stage, we have a [1:36:46] greater confidence in [1:36:48] explaining the original $8 [1:36:49] million finding, but we [1:36:49] re not [1:36:51] yet prepared to state a final [1:36:53] net historical receivables or [1:36:54] administrative overspend number [1:36:56] until that broader [1:37:04] reconciliation is complete. [1:37:06] William, can I pass you here? [1:37:07] Councilmember Mosqueda, I had a [1:37:08] question for you. [1:37:09] Sorry. Thank you. On the last [1:37:10] slide, please. [1:37:12] Yeah. Let me go back. [1:37:14] Um, on first bullet. Regarding [1:37:15] the 8 million, I mean, I think [1:37:16] that that was the biggest [1:37:18] takeaway from your presentation [1:37:19] the last time around, right? It [1:37:21] got quite a bit of, um, media [1:37:22] coverage. It definitely sparked [1:37:24] a conversation here. So what [1:37:26] exactly are you saying? That [1:37:26] you [1:37:28] re not sure that it was 8 [1:37:29] million? Can you just clarify [1:37:31] for me what the takeaway. [1:37:33] Yeah. At the last time we were [1:37:36] presenting, we delved into the [1:37:38] topic of the Unreconciled [1:37:40] receivables. The Clark Newberg [1:37:41] forensic evaluation clearly [1:37:45] identified an $8 million number [1:37:48] in that regard. And as Aaron [1:37:51] pointed out earlier today, and [1:37:52] as I was sharing the last time [1:37:55] I was here as well, we [1:37:57] recognized that there MAY be [1:37:59] unreconciled receivables that [1:38:01] need to be clarified. And the [1:38:02] process that we [1:38:03] re close to [1:38:05] concluding with Turning Point [1:38:07] will give us final [1:38:09] understanding of what those [1:38:11] numbers are. So to be very [1:38:13] direct to your question, um, [1:38:15] the question is, were there [1:38:19] funds that Kcra expended to [1:38:21] providers for services that [1:38:23] were not built back to the [1:38:25] county or the city? And that [1:38:25] s [1:38:27] an example of what might be an [1:38:29] unreconciled receivable. In [1:38:30] this particular case. The [1:38:32] update today is that the work [1:38:34] so far with Turning Point has [1:38:36] gained deeper understanding of [1:38:38] that particular $8 million [1:38:40] population that they [1:38:42] discovered. But there there [1:38:43] could be others in the [1:38:45] different types. And and so [1:38:46] until we get the final [1:38:48] determination, we won [1:38:48] t have [1:38:51] the exact number in terms of [1:38:53] what is or isn [1:38:55] t unreconciled [1:38:57] and what MAY or MAY not be due [1:38:59] one direction or the other yet. [1:39:00] So it [1:39:01] s still pending. [1:39:02] Is it fair to say that you [1:39:02] re [1:39:03] flagging it might be higher [1:39:05] than $8 million? [1:39:06] Then I wouldn [1:39:06] t make an [1:39:10] estimation at this point. Yeah. [1:39:11] William, can I follow up on [1:39:13] that and just say, because I [1:39:14] agree with customer Mosqueda, [1:39:15] this was an area of focus for a [1:39:17] number of community members. [1:39:20] Understandably. Um, and I think [1:39:22] when when we had the [1:39:23] presentation in JULY, I think [1:39:25] the aim was to be able to like, [1:39:26] figure that out by the 90 day [1:39:27] review. So we [1:39:28] re not quite [1:39:30] there yet. But do you have an [1:39:31] estimate of how much longer it [1:39:33] might take for us to get a [1:39:34] final answer on that? [1:39:36] I do, and in fact, the notes [1:39:38] and comments from the next [1:39:39] slide lean into that a little [1:39:39] bit. [1:39:39] Don [1:39:40] t let me interrupt you. [1:39:41] Then perhaps I [1:39:42] ll proceed. Go [1:39:44] ahead. Yeah, yeah. Let me just [1:39:48] do that. Because they tie [1:39:50] together to the negative cash [1:39:53] balance conversation. Obviously. [1:39:56] And so, um, finally, I want to [1:39:57] distinguish the negative [1:39:59] balance in the King County [1:40:01] investment pool from an [1:40:03] established financial loss. [1:40:04] Those are not the same things [1:40:07] at all. The negative balance is [1:40:09] significant. And as [1:40:11] Councilmember Dembowski noted, [1:40:13] with this, you know, [1:40:14] conversation on this around it [1:40:16] being like a checking account [1:40:18] or a credit account of some [1:40:21] sort, it is, at its most basic [1:40:23] level, it means cash outflows [1:40:26] have exceeded reimbursed cash [1:40:28] and advances over time. And so [1:40:29] we [1:40:30] ve expanded more funds than [1:40:30] we [1:40:32] ve received back in. And the [1:40:34] cash balance by itself, though, [1:40:36] does not tell us what portion [1:40:39] represents an actual [1:40:41] unrecoverable deficit, which [1:40:43] is, as you noted, one of the [1:40:44] key things we [1:40:45] re all eager to [1:40:48] land on. The balance reflects [1:40:49] several things operating [1:40:51] together, paying providers [1:40:53] before reimbursement is [1:40:55] received, outstanding and [1:40:57] unbilled receivables fund [1:41:00] advances, reimbursement timing, [1:41:02] historical invoicing and [1:41:04] reconciliation differences, [1:41:06] accounting adjustments, and the [1:41:08] reconciliation will ultimately [1:41:10] determine whether any portion [1:41:12] represents expenditures that [1:41:14] are not recoverable. Now, [1:41:17] Turning Point has substantially [1:41:20] reconciled. Kcra cash position. [1:41:22] At this point, they have been [1:41:23] doing amazing work since [1:41:23] they [1:41:24] ve arrived, and it [1:41:24] s just [1:41:26] been really great to have them [1:41:26] in. But they [1:41:27] ve been in less [1:41:29] than a month with us, so things [1:41:29] have been moving really [1:41:30] quickly. But it [1:41:31] s been a short [1:41:33] window so far. The remaining [1:41:36] work is necessary to [1:41:37] distinguish, you know, the [1:41:39] timing differences and [1:41:41] recoverable receivables from [1:41:44] any actual unresolved deficit. [1:41:45] And so that [1:41:46] s why at this [1:41:46] point, it [1:41:47] s we don [1:41:48] t have an [1:41:50] accurate number to characterize [1:41:54] today. Um, but we are very, [1:41:56] very close on that. And so I [1:41:56] ll [1:41:58] just move on then to the next [1:42:01] phase, which kind of ties this [1:42:06] up. Turning point has [1:42:08] substantially completed the [1:42:11] reconciliation work using Cras [1:42:13] records and is now awaiting [1:42:15] complete transaction level [1:42:17] detail from the county and the [1:42:19] city to validate that work [1:42:22] against those records. Once [1:42:23] those records are received from [1:42:24] the county and the city, our [1:42:25] understanding is a turning [1:42:27] point. Expects to complete that [1:42:30] validation and reconciliation [1:42:31] quite quickly after that, like [1:42:33] a matter of weeks, they [1:42:33] ll need [1:42:35] a few weeks to process that. [1:42:35] And that [1:42:36] s the acid test [1:42:37] against what we [1:42:39] ve done [1:42:40] internally for full [1:42:42] reconciliation. We need to [1:42:42] check that against y [1:42:43] all [1:42:43] s [1:42:45] records and make sure that we [1:42:46] really understand it. And then [1:42:47] at that point, we [1:42:47] re going to [1:42:48] have the answers to all of [1:42:50] these core underlying [1:42:51] questions, because they [1:42:51] re [1:42:53] driven from the same underlying [1:42:55] issue. So that work allows us [1:42:57] to complete the validation of [1:42:59] the historical administrative [1:43:01] overspend and more reliably [1:43:02] distinguish outstanding [1:43:04] receivables and timing [1:43:07] differences from any actual [1:43:09] unresolved financial deficit. [1:43:11] So I would characterize the 90 [1:43:13] day point as a transition, not [1:43:14] an end point. We know [1:43:16] considerably more today than we [1:43:17] did when the forensic [1:43:19] evaluation was completed. Some [1:43:21] of the original findings are [1:43:24] being material, materially [1:43:25] clarified, while other [1:43:26] questions remain under [1:43:28] validation. Our focus now is [1:43:30] completing the work and [1:43:31] continuing to strengthen kcrw [1:43:32] s [1:43:33] recurring reconciliation [1:43:35] monthly. Close and financial [1:43:38] reporting practices. Turning [1:43:39] point will remain directly [1:43:41] engaged through the next phase, [1:43:43] including ongoing review and [1:43:46] validation of those processes. [1:43:46] Thank you. I [1:43:47] m happy to answer [1:43:48] any questions. [1:43:50] Thank you. Uh, Willie, let me [1:43:53] let me ask you to comment. And [1:43:54] or, you know, one of the [1:43:55] questions I was raised in our [1:43:57] earlier conversation is, I [1:43:59] think Councilmember Dembowski [1:44:02] said, stemmed the bleeding, and [1:44:02] I [1:44:03] m just trying to figure out, [1:44:06] uh, post JANUARY. So the [1:44:07] executive, of course, is [1:44:11] planning to, um, to, uh, take [1:44:14] over the most, I guess I would [1:44:15] say of the of the locally [1:44:17] funded contracts. But under [1:44:19] that plan, because you will [1:44:21] remain responsible for the cost [1:44:24] money and for a state funded [1:44:26] contracts as well as [1:44:28] potentially some locally funded [1:44:32] contracts. It my question is, [1:44:34] how do we. Is there anything [1:44:36] that we can do to avoid the [1:44:37] same problem that we [1:44:39] ve had in [1:44:40] the past years? Because I think [1:44:41] those contracts are also kind [1:44:42] of on this reimbursable [1:44:44] situation. So you still be [1:44:46] paying. Is it fair to say that [1:44:46] you [1:44:47] ll still be paying [1:44:49] providers in advance, not in [1:44:51] advance of their work, but [1:44:52] earlier than you get [1:44:54] reimbursements? So what I [1:44:54] m [1:44:56] trying to get at is like, do we [1:44:57] still have the concern that we [1:44:58] will still be in a situation [1:44:58] where we [1:44:59] ll be accruing, or [1:45:00] Casey or Che will be accruing [1:45:02] interest because of that [1:45:03] structural issue that we [1:45:04] ve [1:45:04] haven [1:45:06] t been able to to, to get [1:45:06] around. [1:45:07] I think that [1:45:08] s a really [1:45:09] important question. And the [1:45:15] answer is no. Virtually 100% of [1:45:17] the challenges and difficulties [1:45:17] that we [1:45:19] re untangling today are [1:45:20] directly related to the local [1:45:22] contracts with King County and [1:45:23] City of Seattle. Our hud [1:45:25] portfolio and our commerce [1:45:27] portfolio is entirely clean and [1:45:28] straight. [1:45:29] Okay, so we don [1:45:29] t have we don [1:45:29] t [1:45:30] have concerns about that [1:45:32] problem recurring with the with [1:45:33] the federal grade. [1:45:35] No, no, the the the local [1:45:39] contracts are complex and the [1:45:41] never tried before efforts to [1:45:43] co-locate them from the [1:45:46] originating agencies with city [1:45:48] and the county to Kcra and have [1:45:50] an entity take over to other [1:45:54] entities operations. Clearly [1:45:54] that didn [1:45:55] t go very well. So [1:45:57] the return of the contracts [1:45:58] back to their origin source, I [1:46:01] think, is a prudent move given [1:46:04] the experience that has taken [1:46:06] place over the past few years. [1:46:08] Thank you colleagues. Any [1:46:12] questions for Kcra staff Member [1:46:13] Desk? [1:46:16] Thanks very much, William. Um, [1:46:17] it sounds like we [1:46:17] re going to [1:46:20] have this reconciliation on the [1:46:21] kind of the call it the net [1:46:24] deficit. In simple terms, soon. [1:46:25] How soon? [1:46:28] Um, turning point. Are working [1:46:30] really closely with us, and [1:46:30] we [1:46:31] re again, I can [1:46:31] t say enough [1:46:33] about the gratitude we have for [1:46:36] the decision to embed a [1:46:38] resource with us. We simply did [1:46:39] not have the capacity and [1:46:41] capability internally to do [1:46:41] this. They [1:46:42] ve been moving [1:46:43] really quickly. They have [1:46:44] completed the full [1:46:46] reconciliation of all of our [1:46:47] internal records. So we have a [1:46:48] good sense of what [1:46:49] s going on [1:46:51] historically over the past. And [1:46:51] it [1:46:53] s really four years, 22, 23, [1:46:56] 24, 25. And now into 2026. Uh, [1:46:58] most of the issues are stemming [1:47:01] in the sort of 2324 range. [1:47:01] That [1:47:01] s that [1:47:03] s when things went [1:47:06] off track. And right now we [1:47:07] just were hoping that we will [1:47:10] get the records from the county [1:47:13] and the city from their sides [1:47:14] of those four years of [1:47:16] transactions. So that turning [1:47:18] point can do the full [1:47:19] reconciliation against the [1:47:21] funder records. Otherwise, we [1:47:22] would just be providing a [1:47:24] self-referential understanding [1:47:26] of our own records, which we [1:47:27] are at. But we need that [1:47:29] validated. We need to [1:47:32] understand your understanding [1:47:34] of what was paid and received, [1:47:35] and the city [1:47:36] s understanding of [1:47:37] what was paid and received in [1:47:40] order to fully account and [1:47:42] reconcile all of that. All of [1:47:44] those transactions. [1:47:45] Sorry, I heard all that, but my [1:47:48] question was how soon? William. [1:47:48] Pardon me. So that [1:47:49] s that. That [1:47:51] calls for a date or weeks or. [1:47:53] No, I understand, thank you. [1:47:54] Yeah. For, for, uh, [1:47:56] highlighting my lack of [1:47:57] response there. Turning point [1:47:58] are expecting to have this done [1:47:59] within and I hate to put them [1:48:01] on the spot, but like 2 or 3 [1:48:02] weeks is what they [1:48:02] re. [1:48:03] Saying from today. [1:48:04] Yeah. From when they get the [1:48:05] materials. [1:48:06] And is there any holdup at the [1:48:07] county? We [1:48:08] ve got the request. [1:48:09] I don [1:48:09] t think so. They they [1:48:10] feel like. [1:48:10] It [1:48:11] s you have a number [1:48:13] internally. You know what [1:48:13] they [1:48:14] ve preliminarily [1:48:15] determined? [1:48:15] No. [1:48:16] Oh you don [1:48:17] t I thought you said [1:48:19] that they based on the case [1:48:20] Harry j records they determined [1:48:21] a number and now was just going [1:48:23] to check it against Seattle in [1:48:23] the county [1:48:25] s records. [1:48:29] We have a we want to say it. We [1:48:32] have confidence in our ability [1:48:34] to determine the number. Once [1:48:36] we get that information back [1:48:36] from the county in. [1:48:37] The city. So it [1:48:37] s not [1:48:39] constructible by your own [1:48:39] records. [1:48:41] Yeah, exactly. We want to [1:48:41] confirm that. [1:48:42] I heard something I [1:48:43] ll just [1:48:44] tell you entirely differently. [1:48:46] I heard in your presentation [1:48:48] your slides that you that the [1:48:49] turning points based on your [1:48:50] own records in your [1:48:52] presentation had developed a [1:48:54] number. And now you just wanted [1:48:55] to validate it against the [1:48:56] outside funders, the county and [1:48:57] the city. But now I [1:48:58] m hearing [1:48:59] that you can [1:49:00] t do it based on [1:49:01] your records. And if it [1:49:02] s going [1:49:03] to require the county and the [1:49:06] city records to get to the net [1:49:06] deficit. [1:49:09] To validate what we think we [1:49:11] have internally is how I should [1:49:12] have said that more accurately. [1:49:15] To determine or to validate. [1:49:17] To both. I think I think it [1:49:17] s [1:49:21] fair to say that the degree of, [1:49:26] um, um, work and the long [1:49:28] history of this, this is, this [1:49:32] is a complex historical [1:49:32] undertaking. [1:49:33] All of that, sir. [1:49:34] Yeah, yeah. [1:49:34] I [1:49:36] m just speaking as the budget [1:49:39] chair of this government and [1:49:42] with a serious concern about [1:49:43] where we stand and how we [1:49:43] ve [1:49:44] gotten here and how we [1:49:44] re going [1:49:45] to get out of it, and how we [1:49:48] not do any further harm. And [1:49:50] month after month after month [1:49:52] is going by. And I understand [1:49:52] it [1:49:53] s very complicated. And you [1:49:55] all are new to the scene, [1:49:58] relatively. But, um, there [1:49:58] s a [1:50:00] lot of words on the slides, but [1:50:02] no numbers, you know, no firm [1:50:05] numbers. And so the time for [1:50:10] kind of. My dad told a story. [1:50:12] He had an office and with MR. [1:50:15] Harter in the 1950s, and MR. [1:50:16] Harter son would go down to [1:50:17] have lunch and he [1:50:18] d take a long [1:50:20] lunch and someone would call [1:50:22] for Sylvester the son. And MR. [1:50:23] Harter. His dad would say, I [1:50:27] can almost see him coming now. [1:50:29] I can almost see him coming [1:50:31] now. This kind of feels like [1:50:32] that. [1:50:32] Yeah. [1:50:33] We gotta get we we [1:50:34] ve got to [1:50:36] run this to ground. Not almost, [1:50:39] but. But not not not not next [1:50:40] month. Not in two months. But [1:50:41] we got to get this. We got to [1:50:42] get this done because it [1:50:43] s very [1:50:44] serious. [1:50:46] Yeah. Yeah I appreciate that. [1:50:47] All right. And I can assure you [1:50:48] we [1:50:50] re equally eager to get to [1:50:52] that number. But some of that [1:50:55] validation with the county city [1:50:56] records is going to have [1:50:58] tremendous impact on what those [1:50:59] numbers could be. So it [1:50:59] s just [1:51:00] too early to state at this [1:51:00] point. [1:51:01] We [1:51:01] re ready to go to work to [1:51:02] solve it. I think we [1:51:03] re [1:51:04] prepared that there [1:51:04] s going to [1:51:05] be a check to be written. We [1:51:05] ll [1:51:07] figure it out with the city. [1:51:07] That [1:51:09] s all. Understood. And [1:51:10] then we can get on to figuring [1:51:12] out kind of what the future [1:51:13] holds. But I [1:51:14] m interested in [1:51:16] kind of stopping stopping the [1:51:18] bleeding, getting it squared [1:51:20] away, chewing it up, and then [1:51:22] and then putting this chapter [1:51:23] of I didn [1:51:24] t even put them up [1:51:28] here. Thousands of headlines of [1:51:31] bad news, you know, behind us [1:51:33] because it [1:51:33] s we [1:51:34] re talking [1:51:34] about people [1:51:36] s lives. Hundreds [1:51:37] of folks a year in this county [1:51:38] are dying on the street. [1:51:39] You know, I [1:51:40] m a. [1:51:40] And I [1:51:41] ve worked great with you. [1:51:44] You ran. Yeah. Oaks. And you [1:51:44] re [1:51:48] a tremendous leader. Um, but [1:51:49] we [1:51:50] ve set up a system here that [1:51:50] isn [1:51:50] t working, and it [1:51:51] s [1:51:53] incumbent upon us to fix it and [1:51:55] fix it as soon as we can. [1:51:56] You know, I [1:51:57] m 100% aligned with [1:51:58] you there. And I can assure [1:52:01] you, the bleeding has stopped. [1:52:02] So, you know, I [1:52:02] ve not been [1:52:04] there long. But we are. We are [1:52:05] a tight ship today. There [1:52:06] s no [1:52:10] no deficit. Uh, out of control [1:52:11] organization at the moment. We [1:52:14] are diligently pursuing [1:52:15] reconciliation of these past [1:52:17] issues, and we will get them [1:52:19] nailed down. [1:52:21] Councilmember Mosqueda. [1:52:22] Thanks for your presentation. [1:52:23] And this MAY be more of a [1:52:25] question for the actual agency. [1:52:26] Good to see you again. I [1:52:27] m [1:52:28] worried about a bleeding of a [1:52:29] different sort. I [1:52:29] m worried [1:52:31] about people leaving the [1:52:33] agency. Um, given the [1:52:33] uncertainty of what [1:52:34] s going to [1:52:35] happen to their position. Um, [1:52:37] and this is something that we [1:52:40] have flagged for our partners [1:52:41] as well. The concern that [1:52:44] people will leave Kcra and not [1:52:46] have the actual institution and [1:52:48] the capacity to provide direct [1:52:49] services. Can you speak to how [1:52:52] many people have left Kcra? [1:52:54] What the vacancy rate is? Do [1:52:55] you have statistics on turnover [1:52:57] rates currently at kcr? Hey, [1:53:00] maybe today relative to a year [1:53:08] ago or six months ago. [1:53:11] Thanks for that question. Um, [1:53:11] we [1:53:13] ve spent a lot of time as an [1:53:15] executive team, uh, talking [1:53:16] about, um, the health and [1:53:19] well-being of our staff and the [1:53:21] ability to continue with our, [1:53:22] our work and the mission of [1:53:25] Kcra. Um, and I have to say, [1:53:25] uh, the mayor [1:53:26] s office and the [1:53:26] executive [1:53:27] s office in [1:53:29] announcing the local contract [1:53:32] transition surfaced early that [1:53:33] this would be, you know, [1:53:35] difficult for Kcra staff, [1:53:37] particularly those whose work [1:53:38] is moving back to the city and [1:53:40] county. Um, and so we [1:53:40] ve been [1:53:43] working with our labor partners [1:53:45] to make sure there are clear, [1:53:49] um, principles for us to follow. [1:53:51] K Sarah j is sharing every [1:53:54] announcement from the city and [1:53:56] county and providing support [1:53:59] for our teams who MAY want to [1:54:00] follow the work. Um, we [1:54:01] ve had [1:54:05] one resignation. Um, this year [1:54:07] I can happily share with the [1:54:08] council, uh, the statistics [1:54:10] that you requested. Um, [1:54:11] Councilmember Mosqueda. I don [1:54:12] t [1:54:14] have those at hand. Um, but I [1:54:17] think, uh, folks are, you know, [1:54:19] waiting to see what happens. [1:54:19] We [1:54:20] re waiting to see what [1:54:23] happens. Um, my leadership in [1:54:24] this moment is just to be as [1:54:25] transparent as I can be with [1:54:27] those staff. Encourage them to [1:54:27] do what [1:54:29] s best for them. Um, [1:54:30] but obviously i [1:54:30] m not in a [1:54:32] position to guarantee anyone a [1:54:37] job. Um, and, uh, we are, um, [1:54:38] working hard to keep them [1:54:41] informed, give them outlets to [1:54:44] provide, um, input, ask [1:54:46] questions. Um, but we have, you [1:54:47] know, this is a business [1:54:48] decision. And and as we [1:54:48] ve [1:54:49] heard, uh, it [1:54:50] s very dire and [1:54:53] urgent. And the only lever I [1:54:58] control is really is payroll. [1:55:01] Thank you. Colleagues, I don [1:55:01] t [1:55:03] see further questions about I [1:55:04] just on that point, I do want [1:55:05] to sort of acknowledge because [1:55:06] we, you know, began the meeting [1:55:08] with, with some, uh, public [1:55:10] comment from staff. And I do [1:55:12] want to acknowledge that and [1:55:13] reiterate, I think the point [1:55:15] that you made, Doctor Kinnison, [1:55:16] about the fact that there are [1:55:17] some changes that are going to [1:55:18] impact people who have been [1:55:19] providing services to the [1:55:21] community, and we want to [1:55:22] acknowledge that. I don [1:55:22] t think [1:55:23] we want to sugarcoat the fact [1:55:24] that, like, these changes are [1:55:26] going to have a disruptive [1:55:26] impact on people [1:55:27] s lives who [1:55:28] have been providing services [1:55:29] for our region, and we [1:55:32] appreciate their work. And, uh, [1:55:34] you know, sometimes in [1:55:35] government, we have to make, [1:55:36] you know, difficult decisions. [1:55:38] And I think the agency is [1:55:40] responding in some ways to some [1:55:41] of the issues that were part of [1:55:42] the first evaluation in terms [1:55:45] of our administrative, uh, [1:55:46] budget and making sure that [1:55:46] we [1:55:47] re complying with that. And, [1:55:49] of course, the the changeover [1:55:50] of the contracts is going to [1:55:51] have a disruptive effect for [1:55:53] sure. Staff, I agree with [1:55:54] Councilmember Mosqueda that I [1:55:56] think we we should try to [1:55:57] figure out as a local region [1:55:58] with the city and the county to [1:55:59] figure out if there are, you [1:56:01] know, people who have skills, [1:56:03] who can come over to, to do the [1:56:05] work. Uh, locally. I think that [1:56:07] that would make sense and try [1:56:08] to mitigate the impacts. But we [1:56:08] also don [1:56:10] t want to overpromise. [1:56:10] What what [1:56:12] s possible, given the [1:56:14] limited resources that we have [1:56:16] to do the work. So thank you [1:56:17] for that. And I appreciate all [1:56:19] the folks from from Kcra staff [1:56:20] who provided public comment [1:56:22] today. Um, and we [1:56:22] ll continue [1:56:23] to be engaged in that [1:56:25] conversation. Colleagues, as I [1:56:26] mentioned, I sensed that we [1:56:28] still had questions on this. So [1:56:29] I [1:56:29] m not going to take I [1:56:30] m not [1:56:31] going to put the motion [1:56:33] accepting the report on, uh, [1:56:35] for a vote today. But I [1:56:36] appreciated the work that [1:56:37] everybody has done to get us [1:56:39] better informed. Um, I will [1:56:41] second the Councilmember [1:56:43] Dembowski comment earlier about [1:56:44] the need for kind of more [1:56:45] clarity on the numbers. And I [1:56:45] know you [1:56:46] re working hard, but I [1:56:47] think that is going to be very [1:56:49] important as we try to make [1:56:51] decisions in the coming months. [1:56:53] And, uh, and look forward to [1:56:54] continuing engagement in this [1:56:56] topic as, as needed. Uh, does [1:56:58] anybody have any other final [1:57:00] comments? Uh Councilmember [1:57:02] Lewis. [1:57:04] Yes. Thank you. Chair. Um, [1:57:05] earlier in the meeting, I [1:57:06] mentioned the Black Women [1:57:06] s [1:57:08] Experience study, and I just [1:57:10] want my colleagues to know that [1:57:11] for those of you who would like [1:57:12] to review it while you [1:57:12] re in [1:57:15] transit or otherwise being [1:57:17] ferried about, we do have [1:57:20] printed copies of those for you. [1:57:21] Thank you very much, [1:57:22] Councilmember Lewis, for [1:57:26] educating us. All right. Um, [1:57:27] Councilmember Mosqueda. [1:57:28] So sorry. And I just want to [1:57:29] thank Councilmember Lewis again [1:57:30] for your comments during the [1:57:32] earlier presentation. Um, [1:57:33] Councilmember Lewis has also [1:57:34] sent out an email to the whole [1:57:36] floor with the hard copy. I [1:57:37] would say, though, that that [1:57:39] report used to live online, and [1:57:40] our team was having a hard time [1:57:42] finding it online. So just a [1:57:43] request to the King County [1:57:45] family to try to get that [1:57:47] report back up in the [1:57:48] appropriate place, because it [1:57:49] does appear that that link has [1:57:50] been taken down. So thank you [1:57:52] to Councilmember Lewis for [1:57:53] again mentioning that sending [1:57:55] the email around and for our [1:57:56] team for printing that out and [1:57:57] helping to make sure everybody [1:57:59] had a copy in hand. [1:58:01] Thank you very much. [1:58:02] Councilmember Mosqueda Clark, [1:58:04] did we have any council members [1:58:05] besides Councilmember Balducci [1:58:06] or Councilmember Perry who [1:58:08] missed votes. [1:58:10] Other than Councilmember [1:58:12] Balducci and Perry? No. All [1:58:12] right. [1:58:15] Thank you. Um. Thank you, [1:58:15] colleagues, we [1:58:17] re going to end [1:58:17] the meeting. If there [1:58:18] s no [1:58:19] further business to come before