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HomeMy WebLinkAbout2008-10-06 Work Session Minutes Deschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org MINUTES OF WORK SESSION DESCHUTES COUNTY BOARD OF COMMISSIONERS MONDAY, OCTOBER 6, 2008 ___________________________ Present were Commissioners Dennis R. Luke, Michael M. Daly and Tammy Melton. Also present were Dave Kanner, County Administrator; David Inbody, Assistant to the Administrator; Marty Wynne, Finance; Tom Anderson Community Development; Judith Ure, Administrator; Mark Pilliod, Legal Counsel; Sheriff Larry Blanton; Anna Johnson, Communications; several media representatives and approximately twenty other citizens. Chair Luke opened the meeting at 1:30 p.m. 1. Update on Central Cascade Lines Bus Service. Dave Kanner stated that there have been numerous discussions about this issue. A copy of the latest report was provided to the Commissioners and put on the Commissioners’ web page, along with a letter from an attorney representing Central Cascade Lines (CCL) and another from ODOT. Judith Ure explained that site visits have been done, and the required documentation was not available at the time of the first visit, so they were unable to determine if they were in compliance. Additional time was given to allow CCL to come up with the appropriate documentation. Some information was provided by August 25, and a second visit was done on August 28. What was found that they still did not have adequate documentation. Some pieces were missing, such as a training plan and procurement policy. Other documents were incomplete or inconsistent with operational practices. It appears work was started on some things but not completed. During the site review, they were looking for business practices and accounting practices. They are not adequate to obtain grant funds, per ODOT. There is nothing to differentiate where funds are going. This must be in place before grant funds are received. Minutes of Administrative Work Session Wednesday, October 1, 2008 Page 1 of 7 Pages Minutes of Administrative Work Session Wednesday, October 1, 2008 Page 2 of 7 Pages Internal controls are lacking; it does not appear that there is much oversight of the board, which has a fair amount of turnover. They do not appear to be operating within their own articles and by-laws. The policies and procedures have not been customized for their use. They appear to be operating at a loss as well. Service has been shut down on at least one occasion, and there is no operational budget established. ODOT funds are not intended to be the entire source of funding; and it appears that the organization cannot function without this. The grant funds are made available on reimbursement basis. The grant funds are the State’s and the County does not receive them until a need has been shown. The agreement is between the State and the entity. The money is paid out at the time ODOT releases the funds. When an organization is found to be compliant, it can receive funding. In regard to the purchase of a new bus, it takes six to ten months to go through the process. Commissioner Daly asked if they have received ODOT funding in the past. Ms. Ure said that they get formula grant funds from the County, which is different and there is more discretion. The advisory committee makes these recommendations. Commissioner Daly said that they might not be able to operate without the ODOT funding. Mr. Kanner said that the money could be held in an account, and can be awarded to another agency if a process is opened up to compete for it. He said that if the County decides to work with CCL, that would have to happen without these particular ODOT funds. At this time, the group discussed ODOT requirements regarding the financial process, tracking revenue and expenses; also, record keeping in regard to maintenance. An operational track record for a period of time is also needed. Nothing would keep CCL from operating but it would have to be done without these particular funds. Dave Kanner emphasized that Deschutes County is not a transit planning or funding agency, only a pass-through. ODOT will not reimburse the dollars even if everything is in place by December 1. The goal is to provide transit services, not to support a particular provider. Another provider is running and is willing to take the County out of the picture. ODOT will not do another site review. Ms. Ure is not a transit representative. Mr. Kanner recommended that the grant agreement with ODOT be terminated to allow funding to go to COIC, and take the earmarked formula funds and provide it to COIC. Minutes of Administrative Work Session Wednesday, October 1, 2008 Page 3 of 7 Pages Commissioner Melton added that Ms. Ure is consistent and optimistic, but should not have to have been as involved as she was in trying to work this out. Greg Chaimov, representing CCL, said that in addition to advocating for his client, he also represents constituents at the State and other agencies. He is away of the need to watch over funding and the amount of work needed to receive any grant funds. He assured that CCL understands its obligations, and can see why in the past the Board may have had the impression that they are not ready, willing or ably to adjust the way they do business. He will not say now that they have the capacity to do what is needed at this time, but they have reached out for professional help by engaging his law firm. Commissioner Luke reminded everyone that the requirements are not those of the County; they are ODOT’s. The County does not want to have to pay back the grant funds to ODOT. Mr. Chaimov said there are attorneys waiting to help them put together their policies and procedures. He worked with TACS for years, providing technical assistance to nonprofits. There is an office through the Governor’s office that supports minority, women and emerging businesses with certain types of communication. CCL is asking for a chance to put these resources into play. They would like until the end of November to demonstrate they can operate in a way that will comply with ODOT and the County. He has discussed this with ODOT and would not be asking for additional time if he did not think they could bring ODOT around at that time. He asked that the agreements not be terminated and the award not be made to another entity. Commissioner Luke asked how the County is going to know if CCL is compliant, since ODOT will not do another site visit, and the County does not have the expertise, authority or capacity to do it. Commissioner Melton pointed out that ODOT is the end-all, and if ODOT will not reimburse, County funds are being used. Mr. Chaimov stated that they are not asking for the County to use any funds, just t not give them to anyone else until CCL has had a chance to show what they can do. Based on his conversation with the Director on Friday, October 3, ODOT should be willing to inform the County by the end of October whether CCL is operating properly. Minutes of Administrative Work Session Wednesday, October 1, 2008 Page 4 of 7 Pages Commissioner Luke asked if Mr. Chaimov could get a letter from ODOT by Wednesday stating this. All the County has right now is a letter from ODOT stating they will not support CCL. Mr. Chaimov stated that having a letter by Wednesday would not be a problem. He thinks if the County is willing to give it some time, ODOT may be willing to continue the effort. Commissioner Luke reiterated that the latest letter the County got from ODOT says that they are done. Mr. Chaimov said he would try to get a letter by Wednesday. Commissioner Daly stated that Mr. Chaimov alluded to the Governor’s Office. He asked if there is any indication that they will tell ODOT to give CCL an opportunity. He added that he has worked with Lupita a long time and wants the business to be successful. The County cannot take on any more financial risk and needs ODOT behind it in this case. Mr. Chaimov agreed. Ms. Ure stated that the track record is very clear. ODOT said what is in place is not adequate for these funds. They want to see 18 months or longer of operating in accordance with the rules. Commissioner Luke observed that the letter would have to say that, and also allow for a site visit. If not, there is not much reason to continue this. Ms. Ure added that this has to be properly managed. ODOT will not grant funds if they are at risk for their STF allocations and federal funding. Commissioner Melton said that the County is involved because ODOT requested the County be the pass-through agency. ODOT holds the funds. She added that she appreciates COIC’s ability to help out. She also believes in an open RFP process. Ms. Ure said that applies to formula funds only. If the County steps out of the discretionary funds part, ODOT would direct and deal with whomever they want. The County has to recommend the money stay in the region, as they could send it wherever they want. They do not traditionally contract with new entities, which is why they asked the County to do it. If a transit district is formed, it will be responsible for all of the money and where it goes. Minutes of Administrative Work Session Wednesday, October 1, 2008 Page 5 of 7 Pages Mr. Kanner asked if CCL could operate without public funds. Mr. Chaimov replied that he did not know, but that it hinges not so much on the money but on County support for the operation. There needs to be a public show of support so as not to depress ridership. Commissioner Luke pointed out that this has been done; they have received short-term lottery grant funds for fuel and maintenance. They would release funding today if ODOT would sign off on it. The County has given its support but does not control most of the money needed. Commissioner Melton added that the County wants them to succeed. The strings attached make it harder. Fulfilling all of the requirements would make the business stronger. Ms. Ure said that there is nothing to prevent them from applying for future cycles of funding, but time is not on their side for this cycle. Commissioner Daly stated that the community wants to see them successful. The County is getting blamed for this, but it is ODOT’s call. 2. Continued Discussion of General Fund Transfer to Community Development. Dave Kanner suggested that the $200,000 needed for Community Development operations come out of the general fund contingency, and they can backfill out of different reserve funds later. Discussions have occurred with departments to look at cost savings that would total $200,000. The next fiscal year the $200,000 could go back into contingency. This amount could be reduced by examining the travel and training expenses of departments. Commissioner Luke stated that the summary left something out. If positions are not filled, the costs associated with those positions should not be paid. Anyone who was an FTE who was laid off is still being charged for PERS and health benefits. Mr. Wynne said that PERS is different. The health benefits part is charged by FTE, as is the health benefits trust. PERS is charged against salary. Minutes of Administrative Work Session Wednesday, October 1, 2008 Page 6 of 7 Pages Commissioner Luke pointed out that the number of employees times the number of months is substantial. Before moving funds over, he wants to be sure they aren’t getting charged for this. Mr. Wynne stated that Mr. Kanner asked that a resolution removing those charges be drafted and approved later in the month. Mr. Kanner pointed out that even if they do this, the department is still upside down. Commissioner Melton said that she is okay with using general fund contingency at this time. She does not want to take it from general fund next year and ask other departments to cut back. The department is fee driven. In the past, other departments have had to cut back and did not benefit in this fashion. If the other departments were held harmless, this should remain the policy. It is not fair to reduce some departments’ budgets to cover long-range planning expenses. Mr. Kanner stated he has asked to reduce general fund expenditures, and perhaps will set target amounts. He is not talking about any department having to cut a large amount of money. Commissioner Melton replied that they might need that money for their own needs, regardless of the amount. Mr. Wynne asked to keep things simple right now. Adjustments can be made in the new budget process. The Commissioners indicated they approve of the general funds transfer at this time. 3. Discussion of Spay and Neuter Grant Application Program. David Inbody said this program involves voluntary donations given by the public at the time of dog licensing. There has been about $2,000 collected at this point. The form, which will be sent to appropriate agencies, outlines the criteria to follow, and will go to eligible entities. There are not a whole lot of organizations that provide this kind of service. Commissioner Melton stated that the Board plans to double the amount collected, per Commissioner Luke’s suggestion. The Board supported the form as presented.