City feels health center at fault in grant loss SCHC refutes accusation
From our weekly issue dated March 12, 2008
Cave Junction councilors feel that the city is left holding the bag following a $441,666 grant being withdrawn after the city used its own funds to pay for extension of water and sewer lines to the new Siskiyou Community Health Center (SCHC).
A consensus expressed by the mayor and council is that the health center and Copeland Paving Inc., of Grants Pass, “got what they wanted” out of the project. But that now the city has to make up the loss of the grant.
Meeting in city hall Monday night, March 10, CJ council members heard a presentation from Mayor Tony Paulson about what he indicated could be SCHC’s potential culpability in the loss of the federal block grant, administered by the state of Oregon.
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The reasoning is based on what the mayor claimed is SCHC’s lack of cooperation in providing documentation to prove that it’s meeting a grant requirement for 13 new full-time equivalency jobs.
However, Kurt Higuera, CEO of SCHC, said Tuesday morning, March 11, that the organization is meeting its hiring obligations. He said that one or two jobs still are outstanding, but that they will be filled by an April 15 deadline, under terms of the grant.
Additionally, he and City Recorder Jim Polk note that Oregon Economic & Community Development Dept. (OECDD) officials have stated that the loss of the grant is permanent, no matter what actions are taken now.
“It’s a federal program, and it literally would take an Act of Congress to revise it,” Polk told the council and the 20 persons who attended Monday’s meeting. Polk oversaw the grant process.
Likewise, Higuera said that he has spoken with state officials and gotten the same answer. “We have every intention of fulfilling the job requirements,” he said, “even though it will not help” (the city being able to recoup the lost grant).
He said Tuesday, and the mayor stated Monday night, that the biggest issue is the city’s failure to complete an environmental impact study (EIS) prior to the infrastructure work. Paulson’s Executive Summary presented that and two other “findings” followed by four recommendations.
The mayor said that there are 16 findings from OECDD stating omissions by the city leading to the grant withdrawal, but that he selected what he sees as perhaps the most significant in the loss. Besides the EIS, the mayor listed required labor standards involving documentation, and “the national objective” for new employment.
In any case, the grant will not be reinstated.
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In the wake of the situation, the mayor’s recommendations are that the city adopt an ordinance to not sponsor any OECDD grants with a job creation requirement. He also noted that because of the city’s failure with the EIS, a two-year ban for such grants has been placed on the city.
Paulson also recommends that in the future the council use contract help for any OECDD grants with “an experienced, bonded professional” with the cost paid through the grant. Further, that the council evaluate the city code “and the responsibilities placed upon the office” now held by Polk.
His final recommendation is that an executive (closed to the public) session be conducted “to discuss personnel decisions.” The council is to ponder the matters and advise the mayor later on what direction to take.
Higuera on Tuesday provided a mass of information specifically showing the city’s documentation failures. He also provided a letter dated Feb. 21, sent to Paulson, which states in part:
“I believe it is important to note that prior to our January 2008 conversations, the last formal communication SCHC received from the city regarding this issue was a letter dated April 2, 2004.
“As a result, SCHC had no indication of any problems or issues related to (the grant).
“The implication in your Feb. 5 letter that SCHC is now somehow at fault for the state’s decision to withdraw the grant is disheartening, and as thoroughly demonstrated (with factual data), without merit.”
