PROCEEDINGS OF THE BOARD OF MONTROSE COUNTY COMMISSIONERS
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1 The Board of County Commissioners met in regular session held at the Olathe Town Hall at 6:00pm. Those present: David White, Chairman; Gary Ellis, Vice-Chairman; Ronald Henderson, Commissioner; Jesse Smith, County Manager; Marie Simons, Deputy Clerk to the Board. A. WELCOME 1. PLEDGE OF ALLEGIANCE 2. ROLL CALL: Ronald Henderson, District 1 Present Gary Ellis, District 2 Present David White, District 3 Present 3. CALL TO THE PUBLIC: The Call to the Public agenda item was a time when the citizenry brought forth items of interest or concern. Please note that no formal action was taken on these items during this time due to the open meeting law provision; however, they may be placed on future posted agenda if action was required. Out of concern for Citizens and staff who had scheduled business, comments were limited to three minutes. Note: The remainder of the meeting commenced immediately after the Call to the Public. John Harold, representing the Olathe Medical Clinic Board and the FQHC (Federal Qualified Health Center) informed the Board that effective November 2012, the Olathe Medical Clinic was a stand-alone clinic and was currently in arrears by approximately $67,000. Mr. Harold asserted that the County had budgeted $81,000 for the Clinic in 2012 and he asked the County to give the Clinic the budgeted amount. At Commissioner Ellis' inquiry, Finance Director Cindy Bennet affirmed the County allocated funds for medical clinics in the 2012 budget. None of those funds had yet been distributed. County Manager Jesse Smith clarified that the Commissioners would decide how much of the funds would go to each clinic. County Manager Smith informed Mr. Harold that the County required a financial statement and an invoice as soon as possible from the Olathe Clinic with financials through the end of the year, which would assist the Commissioners in knowing how much to allocate to the Olathe Clinic. Scott Harold, also representing the Olathe Medical Clinic Board, informed the Board that because they had been operating for 14 days, a financial statement would be difficult to create. John Harold asserted that the Olathe Clinic could submit a financial statement through the end of October. County Manager Smith acknowledged that this would be acceptable and noted it was not necessary that the financial statement be audited. Commissioner Ellis noted that during a recent meeting with the Montrose Memorial Hospital Board of Trustees, the Board of Trustees informed the Commissioners that $64,000 was allocated for the Olathe Clinic. He further explained that in the past, the County gave funds to the Hospital as reimbursement for losses they had incurred by supporting the clinics. Scott Harold noted this would most likely happen for the year County Manager Smith countered that the County could give funds directly to the clinics without going through the Hospital. Commissioner Ellis pointed out this would change how the Commissioners had historically handled funding of the clinics. John Harold asserted his understanding that because the Olathe Clinic was now a FQHC facility (a change in governance) funds could not be given to the Hospital, but must be given to the FQHC. John Harold informed the Board he would provide the County with the Clinic's financial statement and invoice by the following Friday. County Manager Smith responded that the County must submit payment before the end of December, or the funds would no longer be available. Harry Archer, representing the Basin Clinic Board, submitted a letter, financial statement, and invoice to the Board from the Basin Clinic and noted that in October of 2011, funds to the Basin Clinic were discontinued. He explained that the invoice he had submitted to the Board included charges through September of 2012, which totaled 487
2 approximately $292,000. At Commissioner White's inquiry, Mr. Archer affirmed that these numbers were calculated by Montrose Memorial Hospital because the Hospital had funded the Basin Clinic since October of Commissioner Ellis noted that the County would need to reimburse the Hospital for funds given to the Basin Clinic. Mr. Archer affirmed this was correct. At that time, Mr. Archer reported that the Basin Clinic Board was attempting to look for funding for the clinic; however, it was recently discovered that the Norwood Clinic had obtained grant funding by using the Basin Clinic's numbers as well as the numbers for the Norwood Clinic. County Manager Smith emphasized that Montrose County did not provide the Norwood Clinic with any of the numbers from Basin Clinic. B. COUNTY MANAGER, Jesse Smith, consideration for removal or change in any items on this Agenda: County Manager Smith reported that Item D2 was titled incorrectly and needed to be changed from Masters Law Firm, Kathryn Sellars to Town of Olathe, Scott Harold. Additionally, Item D3 should state the "First 2012 Budget Amendment" instead of the "Final 2012 Budget Amendment". C. CONSENT AGENDA: All matters under the consent agenda are considered routine by the Board of County Commissioners and are enacted with a single vote. There was no separate discussion of these items. If discussion was deemed necessary, that item was removed from the Consent Agenda and considered separately: 1. COUNTY ATTORNEY, authorization for the Chairman s signature on agreement with the MMH Board of Trustees and the Basin Clinic for rural clinic health care services effective 11/5/2012 as reviewed by Counsel; this represented a budgeted expense and supports Strategic Plan Priority #3 Providing for the Public Safety: Commissioner Henderson noted that County Attorney Hill had explained he had reviewed that all agenda items on this agenda. Roger Brown asked how much funding was involved with this item and what the ending date was. Commissioner White responded that the contract was an open contract and County Manager Smith added there was a line item in the 2012 budget that was not allocated to anyone, which allowed the Commissioners to choose where the funding would go and how much would be allocated to that entity. Commissioner White reported that the amount in the 2012 budget was $300,000. County Manager Smith explained that $300,000 was allocated for clinic support. Commissioner Ellis also explained this was the mechanism the County used to obtain funds (by legal means) to support the clinics. The amount of funds would be specified through the budget before the end of Mr. Archer added that according to the voter approved ballot, the Sheriff's Office would receive a specific amount and that the Commissioners would decide what to do with the remaining amount. Commissioner Henderson interjected that the ending date was December 31, At that time, Commissioner Ellis read Item 1 of the Agreement for Rural Medical Clinic Health Care Services. 488
3 At Mr. Brown's inquiry, County Manager Smith reported that Montrose Memorial Hospital had submitted an invoice dated November 12, 2012 for $389,252. Mr. Brown noted there would be a shortage of funds. COMMISSIONER HENDERSON MOVED TO APPROVE THE CONSENT AGENDA AS PRESENTED. COMMISSIONER ELLIS SECONDED. MOTION CARRIED UNANIMOUSLY. D. GENERAL BUSINESS & ADMINISTRATIVE ITEMS: 1. HEALTH & HUMAN SERVICES, Peg Mewes, consideration and authorization for the Chairman s signature on the Lease Agreement with Columbine Village Mall LLC for office space for the Empowering Dads program in Delta CO effective 12/1/2012 through 9/30/2013 as reviewed by Counsel; this represented a budgeted amount of $2600 in support of Strategic Plan Priority #4 effective and responsive government: County Manager Smith explained that this agreement was part of a $564,000 grant the H&HS received from State and Federal governments to implement the Empowering Dads program. The $2600 would be paid from that grant as a pass through, which meant there would be no budgetary impact to the County. COMMISSIONER ELLIS MOVED TO AUTHORIZE THE CHAIRMAN'S SIGNATURE ON THIS LEASE AGREEMENT WITH COLUMBINE VILLAGE MALL LLC FOR OFFICE SPACE FOR THE EMPOWERING DADS" PROGRAM IN DELTA CO EFFECTIVE 12/1/2012 THROUGH 9/30/2013; THIS HAS BEEN REVIEWED BY COUNSEL AND THIS REPRESENTS A BUDGETED AMOUNT OF $2600; THIS DOES SUPPORT STRATEGIC PLAN PRIORITY #4 EFFECTIVE AND RESPONSIVE GOVERNMENT. COMMISSIONER HENDERSON SECONDED. MOTION CARRIED UNANIMOUSLY. 2. MASTERS LAW FIRM, Kathryn Sellars, Town of Olathe, Scott Harold, consideration and authorization for the Chairman s signature on the letter of agreement with the Town of Olathe concerning annexation requirements for the Neal Subdivision effective 11/5/2012 as reviewed by Counsel; this represented no budget impact and supports Strategic Plan Priority #4, effective and responsive government: Scott Harold reported that both legal counsels, the BOCC and the Town of Olathe, had reviewed the letter of agreement. He explained that the Neal Subdivision was located at the top of the hill south of Olathe and had a sewer lagoon system that had not been approved by the State since The Town of Olathe secured funding to connect the subdivision to the sewer plant north of Olathe. Part of the annexation process required the BOCC to decide whether a study of possible effects was necessary. The item before the BOCC requested exemption from the study. Commissioner Ellis complimented Mr. Harold and the Town of Olathe for simplifying a difficult 489
4 process for the BOCC. Mr. Harold noted that taking care of this issue helped the homes in the subdivision as well as the environment. Additionally, property values would be raised as soon as the letter of agreement became effective. COMMISSIONER HENDERSON MOVED TO APPROVE THE CHAIRMAN'S SIGNATURE ON THE LETTER OF AGREEMENT WITH THE TOWN OF OLATHE CONCERNING ANNEXATION REQUIREMENTS FOR THE NEAL SUBDIVISION EFFECTIVE 11/5/2012 AS REVIEWED BY COUNSEL; THIS REPRESENTS NO BUDGET IMPACT AND SUPPORTS STRATEGIC PLAN PRIORITY #4, EFFECTIVE AND RESPONSIVE GOVERNMENT. COMMISSIONER ELLIS SECONDED. MOTION CARRIED UNANIMOUSLY. County Manager Smith acknowledged a telephone conversation that took place between himself and Scott Harold concerning the sewer plant and explained the conversation recognized that if the Montrose water park was approved as a recreational park and the river was re-designated, the sewer plant would have serious problems. Mr. Scott affirmed this was correct but that the Town of Olathe was trying to mitigate the problems by attending water quality hearings that dealt with nutrients and this designation. The Water Use Board made the recommendation to the Water Quality Board to re-designate a section of the river. At Commissioner Ellis' inquiry, Mr. Harold was unsure whether the issue had been resolved. County Manager Smith reported that this subject would be discussed once again by the Montrose City Council in the near future and suggested that Mr. Harold or someone from the Town of Olathe be present at that meeting to make their concerns known. Mr. Harold pointed out that he raised the subject at an intergovernmental meeting so that City Manager Bill Bell would be aware of the issue as well. PUBLIC HEARING: 3. BUDGET OFFICER, Cindy Bennet, consideration and adoption of the final first 2012 budget amendment and appropriation: Commissioner White opened the Public Hearing. 490
5 Finance Director Cindy Bennett noted that this amount ($796,866) would be partially funded through grants from the State, Department of Homeland Security, and by the undesignated, un-appropriated fund balance. CIP = Capital Improvement Fund 491
6 COP = Certificate of Participation 492
7 Finance Director Bennet explained that the General Debt Service Fund was established when the new Justice Center Annex COP's (Certificate of Participation) were issued. The first interest payment was due in November. Commissioner White noted that a major portion of the budget amendment involved grant, FAA (Federal Aviation Administration), and CDOT (Colorado Department of Transportation) Aeronautics funding as well as the opportunity to pay off the Airport debt. Finance Director Bennet pointed out that the budget was inflated because the County needed to appropriate for transfer of funds. Commissioner Ellis asserted that the Airport bond obligation was transferred to the Justice Center Annex in order to eliminate the Building Authority. He emphasized 493
8 that the Airport would continue to repay that debt obligation and that the interest was reduced from 6.5 percent to 2.5 percent. Finance Director Bennet agreed and noted that most of the budget amendment involved the budgetary accounting mechanism that was necessary for the appropriating accounting. At Mr. Brown's inquiry, Finance Director Bennet explained that the budget amendment contained additional grant funds or expenditures related to the issuance and defeasance of the Airport debt. The Airport took on a large unplanned capital project during the middle of Commissioner White added that the cost of that project was $9,325,000, which was funded by the FAA and State dollars. The numbers of the budget appear higher then actuality due to government accounting practice requirements. Finance Director Bennet explained that the Total Supplemental Appropriation amount was $20,035,010 and would be added to the 2012 Budget of $61,502,748, making a total of $81,537,758. Finance Director Bennet confirmed Mr. Brown's assertion that most of the supplemental budget was paid for by grants and Commissioner White added that a small portion of the Supplemental Appropriation amount was approximately $1 million in unanticipated expenses. Finance Director Bennet noted that the major portion of that amount ($600,000) was funding for water rights acquisition. At Mr. Brown's inquiry, Deputy Clerk Marie Simons reported that documents for this agenda would be available on the County's website the following day in pdf format. Commissioner White closed the Public Hearing. COMMISSIONER ELLIS MOVED TO ADOPT RESOLUTION , THAT WE GO AHEAD AND ADOPT THE FIRST 2012 BUDGET AMENDMENT AND APPROPRIATION AS PRESENTED. COMMISSIONER HENDERSON SECONDED. MOTION CARRIED UNANIMOUSLY. 4. HOSPICE & PALLIATIVE CARE, Nancy Hoganson, consideration and approval for the passthrough grant application with DOLA (Department of Local Affairs) Community Development Block Grant in the amount of $400,000 for their A Home for Hospice project and authorization for the Chairman s signature on a letter of support; this represented no budget impact and supports Strategic Plan Priority #4 effective and responsive government: Nancy Hoganson explained that the space Hospice had resided (rent-free) the past seventeen years was owned by Montrose Memorial Hospital. Hospice had outgrown these accommodations. Originally, Hospice planned a capital campaign that would encompass an office building and an inpatient care center; however, due to the downturn in the economy and the many changes in Medicare, it was decided that the campaign would be divided into Stage I (office building) and Stage II (inpatient care center), which would be built in the future. Two lots were purchased for the office close to the Hospital on South 4 th Street. A request for funds for construction costs would be made through the DOLA Community Development Block Grant. At Commissioner Ellis' inquiry, Ms. Hoganson affirmed that Hospice owned five acres on Ogden Road and that once the situation with Medicare was stabilized, Hospice planned to build the inpatient care center at that location. COMMISSIONER HENDERSON MOVED TO APPROVE THE PASS-THROUGH GRANT APPLICATION WITH DOLA COMMUNITY DEVELOPMENT BLOCK GRANT IN THE AMOUNT OF $400,000 FOR THEIR "A HOME FOR HOSPICE" PROJECT AND AUTHORIZE FOR THE CHAIRMAN'S SIGNATURE ON A LETTER OF SUPPORT; THIS REPRESENTS NO BUDGET IMPACT AND SUPPORTS STRATEGIC PLAN PRIORITY #4 EFFECTIVE AND RESPONSIVE GOVERNMENT. COMMISSIONER ELLIS SECONDED. MOTION CARRIED UNANIMOUSLY. 494
9 5. ADMINISTRATION, Sandy Nelson, consideration and appointment of (6) members to the Montrose County Fair Board for terms expiring 9/1/2015 (4) and 9/1/2014 (2): Administrative Assistant Sandy Nelson explained that two vacancies were the result of the resignations of Paula Klaus and John Wertz. She also reported that John Gibson had recently resigned. Paula Klaus resigned because she had moved from the County and was ineligible to serve on the Board; however, she recently returned to the County. All candidates were interviewed in September and October of Commissioner Ellis moved to reappoint Tami Distel, Larry Franks, Doug Kimberlin, and Paula Klaus. Commissioner Henderson asserted that he could not second the motion; therefore, Commissioner White seconded for discussion. Commissioner Henderson explained he could not support the reappointment of Tami Distel; however, he noted he was uncomfortable discussing the situation in a public setting. COMMISSIONER ELLIS MOVED FOR THE REAPPOINTMENT OF TAMI DISTEL, LARRY FRANKS, DOUG KIMBERLIN AND I'D PROBABLY ADD PAULA KLAUS FOR THE THIRD TERM, AND THEY WOULD EXPIRE 9/1/2015. COMMISSIONER WHITE SECONDED. COMMISSIONER HENDERSON VOTED NAY. MOTION PASSED WITH A TWO-TO-ONE VOTE. COMMISSIONER ELLIS MOVED TO APPOINT MIKE MONELL TO THE FAIR BOARD TO FILL THE KLAUS VACANCY FOR THE TERM EXPIRING 9/1/2014 AND APPOINT JIM PLUMHOFF TO THE FAIR BOARD TO FILL THE WERTS VACANCY FOR A TERM EXPIRING 9/1/2014. COMMISSIONER HENDERSON SECONDED. MOTION CARRIED UNANIMOUSLY. At Scott Reba's request for clarification, Commissioner White explained that Paula Klaus had been appointed to fill the Gibson vacancy; Mike Monell was appointed to fill the Paula Klaus' former vacancy that took place when she moved from the County. E. UNFINISHED BUSINESS F. PLANNING & DEVELOPMENT: G. EXECUTIVE SESSION: 495
10 With no further business coming before the Board, the Board of County Commissioners adjourned at 7:05pm. ATTEST: BOARD OF MONTROSE COUNTY COMMISSIONERS Francine Tipton-Long, County Clerk & Recorder By: Marie Simons Deputy Clerk of the Board David S. White, Chairman Gary Ellis, Vice Chairman Ronald D. Henderson, Commissioner 496
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