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Kootenai County directs staff to pursue federal 'de minimis' recovery amid heated IGA dispute
Summary
County commissioners directed staff to prepare a presentation on using the federal 15% de minimis indirect-cost rate for transit (5307) grants, while a contentious exchange exposed divisions over a proposed intergovernmental agreement and control of county-run transit.
Kootenai County commissioners on Dec. 16 directed staff to explore using the federal de minimis indirect-cost rate to recover administrative expenses from transit grants and to return with detailed auditing and compliance information.
During a status-update meeting, a county staff member confirmed the allowable rate: “15% is the new de minimis,” the transit staff member said when asked whether the rate could be applied to 5307 grants. Commissioners responded by instructing staff to prepare a presentation showing how the de minimis would be applied to current and future grants and to coordinate with the county auditing department to ensure federal thresholds and allowable expenditures are met.
The directive came amid a broader, heated debate over how the county should govern transit. One presiding commissioner criticized the process used at a recent multi-jurisdiction meeting, saying an intergovernmental agreement (IGA) and an accompanying comparison chart were presented without adequate county review and counsel input. “Any agreement that we get into should be drafted by our own attorneys,” the presiding commissioner said, arguing the presented IGA reduced county authority and allowed easy withdrawal.
Another commissioner defended the outreach to cities and tribes as a starting point for conversation and said joint governance mechanisms and a transit advisory committee could help address operations and city concerns. That commissioner noted benefits the county receives from transit, including access to work and health care for residents.
Staff said they would assemble the documentation requested — including confirmation that using the de minimis would not push federal expenditures past applicable thresholds — and present options to the board. No formal vote was recorded; the board made a procedural direction to staff.
The county’s next steps are to have staff compile the compliance analysis and present it to the board, with the auditing office included in that review. The intent is to identify opportunities to reduce county general-fund exposure to transit administrative costs while preserving service where warranted.
