Kootenai County details Kootenai Health transit partnership and $1 million grant match requirement

Kootenai County commissioners met January 15, 2025, to review the county's transit partnership with Kootenai Health and to clarify how a recently amended federal grant and its $1,000,000 match are being documented and accounted for.

The discussion focused on a partnership that county transit staff say began around 2015 under which Kootenai County Public Transportation uses Federal Transit Administration (FTA) grant funds to purchase buses while Kootenai Health covers most operating expenses, and those operating expenses are claimed as match for FTA programs. "The partnership with Kootenai Health has been something that we've had in place since about 2015," transit staffer Chad Ingram said.

Commissioners said auditors had difficulty locating clear, centralized documentation showing how the match is accumulated and made available. Commissioner Eberlein asked specifically about the performance period for the $1,000,000 amendment and matching funds; county staff said the grant's performance period ends March 31, 2026, and that match funds must be available to draw on through that date. "We have to have it available ready to use if needed," transit staff said in reply.

Why this matters

County officials said the arrangement helps the county secure federal funding while Kootenai Health provides the day-to-day operations for non-emergency medical transportation (NEMT). Commissioners and staff said clearer documentation is important because the county previously had an audit finding in the transit program (2016), and auditors act as an objective review to reduce post-award findings.

Key points from the meeting

- Structure of partnership: Chad Ingram of Kootenai County Public Transportation described the arrangement as one in which federal grant funds (including FTA 5307 and 5310 programs) are used to buy buses; Kootenai Health hires and pays drivers and other operating costs. Those operating expenses are then recorded as match that the county can use toward FTA program requirements. "Kootenai Health covers all operating expenses not funded by Federal Programs," Ingram said.

- Match and eligible projects: Staff said the valuation plan and recent documentation state the match can be used for FTA 5307 program projects, which include fixed route and paratransit services. Staff explained the original documentation (from FY22) referenced paratransit only because that was the primary use then; updated documentation submitted to FTA clarifies 5307 eligibility more broadly.

- Performance period and timing: When asked whether the $1,000,000 match must be available through March 31, 2026, staff responded that the grant performance period ends March 31, 2026, and the match must be available to draw if needed.

- Budgets and funding shifts: Commissioners discussed prior and current local tax-dollar support for transit. County comments noted that tax-dollar support was about $185,000 in FY2017, roughly $419,000 in FY2024, and was reduced to about $66,000 in FY2025 after moving salary costs under grant-funded accounts; that shift changed how in-kind match could be claimed.

- Operational scale: Staff estimated Kootenai Health is absorbing roughly $100,000 per month in operating costs for the service, acknowledging variation across months due to rising costs.

Questions auditors raised and documentation

County auditors told the board they prefer to find documentation in a central G Drive location; an auditor at the meeting said they locate files on the G Drive and that email chains can obscure where source documents live. Commissioners said if auditors report difficulty obtaining materials, it would affect their willingness to approve additional transit requests until documentation practices improve.

Public comment

A member of the public raised concern that county-purchased buses operated by a private health system amount to subsidizing a private entity with public dollars and asked whether other hospitals operate similar services. Transit staff reiterated the service's role as NEMT for patients with limited transportation options and said the network serves multiple medical partners across Coeur d'Alene, Hayden, Post Falls, Dalton Gardens and Rathdrum.

What was not decided

The meeting did not include any formal motions or votes to change the partnership, alter funding commitments, or approve new contracts. Commissioners asked staff to improve documentation and coordination with the auditor's office and discussed the possibility of outreach to other medical providers to expand the network, but no action was taken.

Next steps noted by commissioners and staff

Commissioners asked transit staff to work with the auditor's office to ensure updated valuation plans, match spreadsheets, and supporting invoices are organized in an accessible, central location. Staff said they would continue internal discussions about recruiting additional medical providers to the network before presenting any formal proposal to the board.