Denver City Council renews contract for Caring for Denver, but for shorter duration, after questions arise about how money is spent

This story is part of CPR News' Cash for Caring series. Read the first installment here.

The Denver City Council approved a new but shorter contract with Caring for Denver on Monday, vowing to take the next year to review all of the city’s sales tax initiatives overseen outside of government.

Council members who spoke at Monday’s meeting were united in support of Caring’s mission to distribute more than $40 million annually in tax dollars voters approved for mental and behavioral health care grants in 2018.

But City Council President Amanda Sandoval said all of the city’s tax initiatives need to be reviewed to be sure they are providing the public with transparency in how the funds are being spent, and that they are being treated consistently by the council.

“Our goal through this review process will be to implement consistent ordinance language across the board,” Sandoval said. “By focusing on process and transparency, we aim to provide a solid framework for responsible governance.”

Caring for Denver’s original five-year contract was up for renewal this fall. The council slowed that process after CPR News began asking questions that led to stories questioning the stewardship of the tax money Caring oversees. A year-long review by CPR News found that millions from the program have gone to inexperienced organizations without staff licensed by the state to provide health care, along with organizations led by staff with long and recent felony criminal histories.

More than 200 organizations have received tax funds through Caring for Denver.

On Monday, the Denver City Council voted to renew Caring for Denver’s contract for one year.

Lorez Meinhold, Caring’s executive director, declined to allow CPR News to review any records showing how the organization oversees grantees, citing contract language she and the organization’s attorney believe exempts them from Colorado’s Open Records Act. That makes it impossible for the public to see what Caring requires of grantees or how the organization ensures that only Denver residents are benefitting from the tax money their neighbors pay, as required by the ordinance. Several grantees getting funds through Caring are located outside of Denver. That’s allowed, so long as they serve only Denver residents with that money

“We just need to understand the level of transparency,” said Council Member Jamie Torres. “Not just of Caring for Denver, but of all the sales tax initiatives.”

Nothing in Caring’s contract or the ordinance creating the tax precludes them from releasing records.

The Council faced a roomful of Caring for Denver grantees and their supporters, there to fight for continued funding and to complain that they were misunderstood or unfairly portrayed in the CPR News stories.

One of those in attendance was Geno Shvedov, executive director of Hazelbrook Sober Living and Caring grantee ParadigmONE. That’s a program Shvedov says he invented in which those who fail drug tests are allowed to remain in sober living, in houses largely located in Aurora.

“The ‘Transitional Safety Zone’ is a one-of-a-kind, game-changing program that has literally saved thousands of lives of Denver residents,” Shvedov told the council. “These are not just numbers, these are real lives saved and futures rebuilt. These results speak for themselves and are undeniable.”

Both Shvedov and Caring for Denver declined to let CPR News review any reports or audits showing oversight of ParadigmONE or other grantees. Shvedov acknowledged in an earlier interview that he is only able to follow former residents for 90 days after leaving his program.

More than $6 million has gone from Caring to a pair of sober living companies. Other grants have gone to some of the city’s best-known providers with long track records, including WellPower, Servicios De La Raza and Denver Health.

But even with the infusion of $170 million since Caring’s overwhelming passage by voters, the number of suicides and overdoses in Denver remains stubbornly high.