Morrow County board amends and approves fiscal-agency agreement for Clean Water Consortium

The Morrow County Clean Water Consortium amended language on budget timing in a fiscal-agency agreement with Morrow County and approved the agreement at a board meeting.

The amendment clarified how the consortium would adopt an annual budget and when a copy of the adopted budget would be provided to the county. Matt Jensen, the consortium’s managing director, presented the agreement and described the county’s role: "The county on this side will receive the funds, ensure the funds are counted separately, they'll hold the funds for that, manage the funds and only disbursing funds is directed by the consortium's board of directors." Jensen added that the county would prepare accounting and assist with grant management.

The board discussed whether the consortium must follow Oregon local budget law. Eileen (attorney) said the Department of Revenue had advised the consortium was not organized under the statute that would automatically trigger the local budget law but recommended following a budget process as a best practice. Jensen said the draft fiscal-agency agreement and proposed bylaws would capture spending approval levels and monthly accounting requirements.

Under the approved terms the county will hold consortium funds in a segregated fiduciary fund and manage receipts and disbursements on direction from the consortium board. Jensen told the board that "the fiduciary fund... is not included in the county budget" but would be managed in the county’s accounting system so the cash can participate in the county’s pooled investments while remaining separately tracked on the books.

The agreement allows either party to terminate with 60 days' notice. County counsel involvement on the county side was confirmed; Kevin Ince coordinated county review and helped add clarifying language on bonds and accounting.

The board first voted to amend Section 4(a)(1) to clarify adoption and timing of providing a copy of the adopted budget. That amendment was moved, seconded and approved. The board then voted to approve the fiscal-agent agreement as amended; the voice vote was recorded in the meeting as unanimous.

The consortium will adopt bylaws that specify approval thresholds and the managing director’s responsibilities; those bylaws are expected to be drafted and circulated for board review during the upcoming budget schedule.

The board also discussed cost recovery for county staff time and legal counsel. Jensen said legal counsel costs and certain consultant costs would be billed to the consortium once revenue is available, but that there will be no immediate “bill back” to the consortium for county staff time while the structure is being set up.

The board directed staff to circulate the amended agreement and the forthcoming bylaws draft for additional review before final implementation.