Commissioners approve ODOT 53.10 contract despite legal uncertainty tied to federal injunction

Baker County approved an ODOT 53.10 transit funding agreement (ODOT contract no. 35718) and the related CCNO subrecipient contract at its Sept. 3 meeting, despite staff and counsel warning of a legal uncertainty tied to a temporary federal injunction on a federal immigration-related funding condition.

County counsel told the commissioners the agreement before them includes language that acknowledges the injunction and noted that while the injunction is in place the counties should be able to draw down reimbursement for transportation services, "but it is a temporary injunction, and temporary things are just that, temporary." Counsel said counties face a repayment risk if the injunction is later lifted and the federal government seeks repayment or challenges reimbursements. Counsel recommended options commissioners could consider — for example, seeking more frequent reimbursement draws (monthly rather than quarterly) to limit the county's exposure if federal payments stop.

Stacy, a representative of SK Consulting and the county's transit provider, described the existing reporting system and practice: reimbursements run on a quarterly schedule through the Optus reporting system and converting to monthly draws would require additional reporting effort by the provider.

Commissioner discussion and vote
Commissioner Casper asked whether the contract would be discussed at a Region 5 meeting; counsel and Stacy clarified regional coordination and that other counties and some cities have already signed similar contracts. After weighing counsel's explanation of the risks against the consequence of not signing (forfeiture of currently available funds), the board voted to approve the ODOT 53.10/CCNO 53.10 contract with a motion that included direction to monitor developments and revisit funding decisions if the injunction is lifted. The motion carried by voice vote.

Context and next steps
- Counsel recommended staying in contact with other counties to pursue coordinated responses if enforcement actions or repayment demands occur.
- Staff noted reimbursements are currently quarterly; they will ask whether monthly draws are feasible as a risk-mitigation strategy.
- Commissioners and staff instructed that if a reimbursement is missed such that the county is not receiving funds for services already provided, the county would have the contractual right to cancel with 30 days' notice but could still be liable for services already rendered during any reimbursement lag.

Ending
The county signed the ODOT contract to secure immediate transit funding while acknowledging the legal uncertainty and reserving the right to re-evaluate funding decisions if the injunction is reversed.