Kootenai County reviews transit service, grant management and Kootenai Health partnership

Kootenai County commissioners heard an overview of the countypublic transportation system and debated the county's role in managing federal grants and a long-standing partnership with Kootenai Health at a Feb. 19 special meeting.

The discussion matters because Kootenai County currently acts as the primary recipient for Federal Transit Administration (FTA) grants that fund vehicle purchases and operations; commissioners said that responsibility brings both matching-fund benefits and potential compliance liabilities that could affect the county's finances and future grant eligibility.

Chad Engel, transit manager for Kootenai County, told the board the county's most recent service-and-fare equity analysis and 2020 census overlays show fixed routes concentrated around Coeur D27Alene and employment centers. Engel said the county operates three fixed routes that serve Coeur D27Alene, Post Falls, Hayden, Dalton Gardens and Hutter and described the system's technology and paratransit obligations. "As part of the Federal Transit Administration or FTA requirements, for providing fixed route services, we are required to offer ADA paratransit services," Engel said, summarizing the program's curb-to-curb paratransit zone and demand-response Ring-a-Ride service for seniors and people with disabilities.

Engel provided year-to-year operating data: in fiscal year 2024 fixed-route service provided 121,854 unlinked passenger trips, 56,615 vehicle revenue miles and about 11,037 revenue hours; paratransit provided 12,075 unlinked trips, 62,748 revenue miles and about 6,077 revenue hours; Ring-a-Ride recorded roughly 1,364 unlinked trips, 8,057 revenue miles and about 780 revenue hours. He said Kootenai Health provided 22,142 unlinked passenger trips, 130,511 revenue miles and 11,352 (as reported) in fiscal year 2024 as part of a demand-response medical-transport partnership. Engel also noted the county uses ITS (intelligent transportation systems) implemented with PASIO Technologies for real-time rider information and mapping integration.

Commissioners pressed on how the county's role intersects with Kootenai Health27s separate transportation program. Commissioner Eberlein asked whether Kootenai Health, identified in the meeting as a nonprofit transportation provider, could apply directly for federal grants. Engel said the transportation operation is "part of the Kootenai Health network" and that "Kootenai Health pays for and runs all the operations for it. We supply the buses." Engel also told the board he would welcome partnerships with other medical providers if they could operate their own transportation programs and contribute matching resources.

Eberlein repeatedly raised concerns about the county "backstopping" grant applications, saying the county assumes compliance risk and long-term financial commitments when it serves as the grant recipient. He cited a county revenue chart discussed in the meeting showing transit-related revenue rising from about $919,000 in 2016 to roughly $3.2 million in 2024 (the chart included cash and in-kind match values). "If there is a mistake on these things we can have a finding that can affect our ability to get other grants," Eberlein said, urging the board to set an explicit policy on acceptable revenue or service-level targets going forward.

Other commissioners defended the current structure as the most efficient model now in place. Commissioner Duncan (speaking in the meeting) said prior attempts to move to a joint-powers governance model or shift operations to cities were declined by municipalities and that changing governance could increase administrative costs and complexity. Duncan argued the county's role provides neutral oversight and efficiency of scale while stakeholders retain opportunities to request governance changes.

Members of the public echoed governance-and-equity concerns. Ron Hartman, who spoke during public comment, said property owners outside served routes still pay through county property taxes. "I don't out where I live in the county, there's no bus routes, but it shows up on my property taxes," Hartman said, arguing for a clearer cost-allocation method so cities pay for the service they receive and county taxpayers are not subsidizing services not delivered to them.

The board did not take a formal vote at the meeting. Commissioners discussed next steps: more detailed financial analysis of the transit programincluding separating cash versus in-kind matchand additional stakeholder conversations about governance, service allocation and whether other medical providers could or should run their own transportation operations. Engel said staff planned to begin conversations with other providers to explore options.

The county also noted the Human Transportation Plan, updated periodically and required as part of regional planning, as the formal vehicle for setting policy and service priorities going forward.