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657
BEFORE THE BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
AUGUST 16, 1971
3:00 P. M.
PRESENT:
The Board of County Commissioners
Marshall H. Anderson
Glenn K. Billings
Harry S. Ashley
County Attorney
Samuel S. Telep
COUNTY TREASURER
F. M. Loustalet
Chief Accounting Officer
Barton Buss
Welfare Director- Weld County
Eugene McKenna
Mr. Ron Cooke, Attorney Representing the Board as Co Counsel
S Cc(J-)
710513
Mr. Telep: Let the record show that the Weld County Board of County Commissioners
met in executive session on Monday, at 3:00 o'clock P. M., August 16, 1971.
Present were Marshall H. Anderson, Glenn K. Billings, Harry S. Ashley also
present was the County Attorney, Samuel S. Telep, Co Counsel Mr. Ron Cooke
of Denver, Colorado. Also present is the County Treasurer, Mike Loustalet,
Welfare Director, Eugene McKenna and our Chief Accountant, Mr. Barton Buss.
Gentlemen - Mr. Chairman, the question has come up about the
validity of the meeting in executive session - this is just a meeting just
to decide what to do in view of the recent Supreme Court decision whereby
clear
there was a/mandate that Weld County find the necessary funds to fund
Welfare for the balance of the year 1971. So with your permission Mr. Chairman,
perhaps it would be a good idea to have the record reflect that we are not in
executive session and that this was just a meeting called by the Board to
hash the problem that is.confromting the Board at this time. We don't like
anybody to get the connotation that the public was excluded from this meeting.
Mr. Chairman as you well know, we had an opportunity to file a motion
for rehearing this morning and this was done at about a quarter of ten, and
to bring you up to date in chronology as to what has happened since that time
I am going to introduce you to at this time, Mr. Ron Cooke who has been on
the case with me as Co-Counsel.
Mr. Cooke: Thank you Sam, Mr. Chairman, the petition for rehearing was filed
in the Supreme Court this morning - two and a half hours after it was filed
we were informed that a decision had been made and the Supreme Court had
denied our petition for rehearing. By virtue of these acts the Supreme
Court - found - this is somewhat the last step that can be taken. Whether
its an opinion on order-it is clear that they have directed that Weld County
pay its share of all welfare costs. By virtue of that order, I think the
only thing left for the Board of County Commissioners of Weld County, is to
determine what funds it has available and if it has no funds then a procedure
for setting up registered warrants. Also I think it clearly, the mandate
by the Supreme Court, since no funds are available in the Welfare fund
that this has created an unforseen contingency for the County and the
Board of Welfare Metes August 16, 1971
before it can
County will have to pass a resolution/appropriate any monies or even
register warrants.
Marshall Anderson: One question, Ron, that I would like toask - If I understand
it - the Supreme Court ordered the District Court to issue the injunction
is that right?
Mr. Cooks Yes.
Mr. Anderson: Do we have an injunction yet?
Mr. Telep: Mr. Chairman, we haven't received the order and I am sure we will
perhaps
get it - if not this afternoon / tommorow morning early, but you can rest
assured that there will be such an order and I am sure too that it will be
a Forth-with Order. I did not see the copy of the order that Trial Court
- the Trial Judge - I should say - Judge Wolvington received. Maybe you
know something about it, do you know the wordage of that?
Mr. Cooks: I assume what they are saying must the opinion of the Supreme
Court.
Mr. Telep: Well I think that in addition, don't you think he had received
a directive a Forthwith Order to get this out because there is no time
limitation in the opinion of the Supreme Court.
Mr. Cooke; t really don't know Sam.
Mr. Telep: Well I think anyway, that this Board has a right to do some
tall thinking about where it is going to get the necessary monies to pick
up the Welfare load for the balance of the year in view of the clear mandate
of the Supreme Court. And rest assure to that you will get such an order
if not this afternoon probably tomorrow morning.
Mr. Anderson: Well that brings another question, Ron, you said - unforseen
obligation.- Are you saying that we have to tap the Contingent Fund?
Mr. Cooks; I am saying that due to the Chapter 88, Article I, Provisions -
the only way you can spend monies that are unappropriated, that are not
budgeted is by determining that it was an unforseen contingency or an act
of God. It would seem to me that at the time of making the budget - the
Board of County Commissioners did not fully realize that there would not
be sufficient monies at this time to pay Welfare also the Board of County
Board of Welfare Minutes 3 August 16, 1971
Commissioners of Weld County, when they passed a budget did not foresee
that they would have a Supreme Court Order - ordering them to pay the
total share of the County - total County share of Welfare expenses in
Weld County. I think this would be enough to qualify under Chapter
88, Article I for you to make an emergency appropriation. The emergency
appropriation does not necessarily speak that there has to be - appropriate
cash - but you have to create a temporary loan and you can register warrants
from that or if you have sufficient available money in other funds you can
transfer that - those funds.
Mr. Billings: Would this, Ron, not also in effect give us the right to
request funds from the Department of Social Services?
Mr. Cook: I don't think there is any question about it. I think it is
going to be up to the Department of Social Services to determine, under
the State Contingent Fund - whether Weld County qualifies - if so an
application should be made under 119-9-13 - somewhere in there,it is the
one on ADC which allows the State to reimburse more than the 80 percent
if there is any emergency in the County.
Mr, Anderson: I think that would be in order.
Mr. Telep: I think that is correct Mr. Chairman. I would also say or
recommend that that application be made immediately. Also in line with
that I would recommend that funds - administration funds be reapplied for,
Mr. Billings, has that been done? I think we are entitled to that now
Mr. Billings: I have not done that - Gene have you applied---
do
Mr. McKenna: No - we/have the necessary documents in there now for the
administration part.
Mr. Billings: Well Sam would Gene also be the one to apply to the State
Department of Social Services for funding from the State Contingency Fund
or would that be the Board of County Commissioners? Mr. Cook and you also
seem to feel and have given the opinion that this emergency was unforseen
and was brought on by the State Supreme Court Decision and we had no previous
knowledge of what the decision would be. So would it be as a Board that we
apply to the State Department of Social Services or would Mr. McKenna?
Board of Welfare 4 _ --August 16, 1971
Mr. Telep: No, I feel that this is Board action, I think that Mr. Cook
agrees with me. This should be Board action, I think this should be
done by telephone and perhaps done this afternoon, if at all possible,
because time is of the essence.
Mr. Billings: This will fall only under ADC only? You made the remark
Mr. Cooks: You have the statement ` which falls on all programs
then likewise in ADC you have a special section there you can apply for
monies when an emergency occurs.in Weld County.
Mr. Anderson: About all they can do is turn us down.
Mr. Telep: Well I feel that this should be confirmed in writing, too, Marsh
I would just like to make an observation as to where we are going to get
the funds and Mr. Cook mentioned and rightfully so that perhaps the
Contingency Funds can be used and then registering warrants. As County
Attorney I certainly could not recommend that we use the Contingency Fund
for the simple reason that they wouldn't be immediately available because
under the statute you must advertise, you must have a hearing and then you
wouldn't have the monies soon enough and then too more important, what would
you do - this money was put into this Contingency Fund especially - perhaps
looking into the future - some catastrophe might befall Weld County. We
might have a flood in the next week. Supposing we have a blizzard - you
have a right to look to something like that, and if you tap the Contingency
Fund at this time and then if you would have such a catastrophe in Weld
County and I then I assure you gentlemen and I will guarantee you gentlemen
that you will have chaos in Weld County. Consequently and besides I don't
think all the monies you have today in the Contingency Fund would even
cover the monies that you need to take over the balance of the Welfare load
for the year 1971. Do you agree with that Ron?
Mr. Cook: Yes, and I just talked to your Budget Officer and he informed me
that the projections for the end of the year in the General Fund, the
Road and Bridge Fund and other funds available for the County - that it
is real close. You are not going to have any real excess in those funds.
Because of this you cant raid those funds. If you have a blizzard or
any unusual fall rains and loose any bridges and this type of thing - that
you would have to rely wholly on the Contingent Fund on this. You may
even have to fall back as far as supplementing the General Fund.
Board of Welfare ^ 5 August 16, 1971
Mr. Anderson: What would happen - we could save a lot of interest by using
the Contingency Fund - if we advertise it tomorrow - it would still be
30 days.
Mr. Teleo: Even with that fact Mr. Chairman, I—in good conscious
could not recommend it for the reasons that I mentioned and reiterate
it again for Mr. Cook. I think this has been set up for an entirely
different purpose and if the Dear Lord could cause this County to have
a flood and wipe out your bridges or blizzard would come in - you
wouldn't have it and then as I said before and I reiterate again
you would really then have ehoas. I think you should seek other areas
for money.
Mr. Cook: I think on of the areas too that we are concerned about
with as much litigation that is going on in Weld County and Weld County
being sued by the Colorado Rural Legal Services that you may have to raid
the Contingency Fund for Attorney's fees to defend Weld County with. Thats
going to have to be on the basically on a cash basis.
Mr. Ashley: Did you say you could tap that fund an then replace it later?
Mr. Cook: You can't replace it later this year. You have no sources
in which to receive any revenues.
Mr. Ashley: Then on next tax base on Welfare - you can replace it? You
can add a couple of mills on next years tax to replace it with?
Mr. Cook: Yes in the fact if you register warrants this is exactly what
will happen is that you will run out at the end of this year - a minus
in funds
situation/and you will have to pay for all those registered warrants
so at budget time - which you will be going into very shortly here, you
to
will have/anticipate how much you are registering in anticipation warrants
and make a levy for that plus what Welfare needs for next year.
Mr. Billings: What is the estimated amount at this time? Barton what are we
going to be short in 1971?
Gene
Mr. Buss: I have been saying for quite some time $450,000 and we came up
with a figure of$442,000 which is his estimate as of now.
Board of Welfare 6 August 16, 1971
Mr. Cook: I think in the briefs, in the case in Supreme Court, the
Department of Social Services said that Weld County would be running
short in the amount of $594,000.
Mr. Loustalet: They have had somebody come up from the State and I didn't
think they were there long enough to research and come up with an
it possible
accurate figure, but I suppose that/is/where they got it -- - - ._
Mr. McKenna: I think that their estimate is high barring something very
unforseen - something approximately $450,000 should be our estimate at this time.
Mr. Anderson: Thats 2.5 mills.
Mr.. Buss: Yes, well on our current valuation.
Mr. Anderson: Thats right on the money.
Mr. Buss: Well on our current valuation - I mean on our valuation for next year.
Mr. Anderson: About 2 mills for next year.
Mr. Telep: In other words it has been acertained that we need two mills - is
that right to take of the deficit for 1971.
Mr. Cook: You've got a two mill in 1972 for 1971
Mr. Anderson: That $450,000 is going to crowd 2 mills awfully close, there is some
interest in there. Mike do you have anything that you want to add to this?
Mr. Loustalet: No not at this time
Mr. Anderson: Well then is it in order at this time to draft a letter and call
Mr. Shea before he leaves his office and tell him what - or beg for some
money?
Mr. Telep: I think that would be in order. I hate to hear you use the word beg.
I think you have a right toask for it pursuant to this 1969 Statutue that
Mr. Cooke mentioned - 9-12 - 9-13.
Mr. Anderson: Why don't you make sure what it is so we can act.
Mr. Telep: Would you get that 1969 book
Board of Welfare ^ 7 August 16, 1971
Mr. Cooke: Mike as Treasurer, do you agree with these statements that
Sam and I have made as to the financial condition of the County is
presently?
Mr. Loustalet: Yes.
Mr. Anderson: Well Mike--- you were talking the other day about these
warrants - we are not going to have many in August-are we?
Mr. Loustalet: I don't know - no we are not - it is going to gradually
the way the law is set up
build up a few each month because as soon as/the-law-says-or-es-seen
soon as
as/we get reimbursed from the State then we have got to call for registered
warrants. W'e have at least $500.00 in the fund no matter from what source
we will register
we must call and when the fund is depleted we must register/Tor a period
of time until we get reimbursed by the State- we-mast-eels-and-when-the
fund-i and then we will make a call and as soon as the money is gone
that the State has given us we will start registering again
Mr. Anderson: The first two months it shouldn't be too bad should it?
Mr. Loustalet: The first month shouldn't be bad, the second month I don't
know - it shouldn't be any great amount but the last two months are going
to be pretty tough.
that
Mr. Cooke: Well is the projection of the State Department -/it runs about
50,000 to 54,000 a month correct - for the County's share? It would seem
it would be.
Mr. Buss: Well that is what we budgeted - 54,000 a month.
Mr. Cooke: Well what do you think its going to cost Weld County next month
to pay for all the expenses?
Mr. McKenna: Well for August
Mr. Cooke: Yes.
Mr. McKenna: Well it is more like 84,000.
Mr. Cooke: That would be the County's share.
Mr. McKenna: The County's share - 20 percent.
Mr. Anderson: What do we have five months left?
Board of Welfare 8• August 16, 1971
Mr. Cooke: Correct.
Mr. Anderson: 420.
Mr. McKenna: We are also allowing for some growth based on case load in training
If things go according to plan.
Mr. Cooke: The statute is 119-9-13 which provides when any county by reason
of emergency or other temporary conditions shall be unable to meet necessary
financial obligations for other public welfare purposes which at the same
time the obligations for other public welfare purposes, and at the same
time meet its requirments for aid to dependent children, the department
may, in its discretion upon consideration of the conditions and the requirements
of this article, reimburse such county in excess of eighty per cent of the
amount expended for aid or services to families with dependent children.
So I think the request should go under this - the request should go under
this section and also under the General - the State Contingency Fund.
Mr. Buss: You know too in our budget all the other welfare programs are on
the money budget wise. ADC is 205.73 per cent expended
Mr. Anderson: Then why don't we get Linda in here and you guys dictate a
letter - how you want it and we will read it to Con Shea over the phone.
Wouldn't that be the proper way to do that.
Mr. Cooke: Yes I think probably it would be.
Mr. Anderson: We will read it - the letter over the phone and then mail it to
him, and give a copy to the press.
Mr. Cooke: It is here Volumne 119-3-12.
Dictates Letter
Mr. Cooke: When you come down to the end of the year everything is going to
be wiped out. Those advances will go as soon as they come in - I think as
I remember going through this if they come in with those registered warrants
they just start issusing out to retire the previous months registered warrants.
Down toward the last of the year say you will be exhausting all those funds,
and then you are going to have just one big glob of registered warrants.
Mr. Billings: Then they will have to have their name on them.
Board of Welfare • 9. August 16, 1971
•
Mr. Cooke: Then you are going to have to turn around then and I am sure
the first of next year or the first three or four months you will be
issuing warrants all over again, because you won't have sufficient
monies in there - in the fund - so you will have to register anticipation
tax dollars.
help the Welfare Department to
Mr. Loustalet: This might be of an incentive to/cut the Welfare Department
or program to cut their minuses over their advance deposits
Mr. Cooke: I think that is one of the things we want to talk to Con Shea
about on the phone about what are problems are
Mr. Billings: What statute is that under?
Mr. Cooke: 36-2-10.
Mr. Billings: January and February you have to be darn sure have to be certain
at least December, January and February - that will shake him up.
Mr. Billings: Mr. Chairman if you will bear with me while I go over these
notes slowly I would make a motion that we instruct our County Attorney
to draw the proper resolution instructing our County Treasurer as of this
date, August 16, 1971, at 4:00 o;clock P. M. in special session of the
Board of County Commissioners - order the County Attorney to instruct our
Treasurer to proceed with the registering of warrants in the necessary
amounts for each month to cover Weld County's 20 per cent of funding for
Welfare for the balance of the year 1971. And that the following letter
which will be mailed to Mr. Con Shea, Director of the State Department
of Social Services, by registered mail this afternoon - be a part of the
resolution. The letter reads, " August 16, 1971, Mr. Con F. Shea,
Director Department of Social Services, 1575 Sherman Street, Denver,
Colorado 80203. Dear Mr. Shea: Reference to Weld County's Request for
Contingency and Emergency Funds. On August 16, 1971, the Weld County
Board of County Commissioners met how to determine how Weld County would
finance its share of Welfare expenses pursuant to Colorado Supreme Court
Decision, in the Colorado State Board of Social Services vs. Weld County.
After hearing statements from the Budget Officer of the County, the County
Treasurer of Weld County, the County Attorney of Weld County, the Board of
County Commissioners has determined that sufficient cash funds are not
any of
available in/the various funds including the General Fund, the Road and
Bridge Fund, the Welfare Fund and the Contingent Fund, with which to pay
Weld County's share of all Welfare costs for the balance of the year 1971,
Board of Welfare 10 August 16, 1971
The Board of County Commissioners on this day determined by
resolution the lack of sufficient funds to pay all the welfare costs
for the remainder of the year 1971 was an unforseen contingency and
since monies are not available for transfer from other County funds
the Board of County Commissioners of Weld County have directed the
County Treasurer to register warrants to provide for excess expenditures
to the Welfare Fund whenall remaining monies in said Welfare fund become
exhausted. Since it is not the desire of the Board of County Commissioners
of Weld County to register warrants it hereby requests the State Board of
Social Services supplement County expenditure from Public Assistance, County
Welfare Administration, Child Welfare Services provided for in 1963, C.R.S.
119-3-12 (1969) Perm.Cum.Sup. The Board requests that if sufficient monies
are not available in such State Contingency Fund to supplement County
expenditures for the remainder of the calendar year 1971, then that the
State Board of Social Services determine that an emergency exists in
Weld County causing the County to be unable to meet it necessary financial
obligations for public welfare purposes pursuant to 1963 C.R. S. 119-9-13.
Since the payment of welfare in Weld County is of great importance we
ask that you expidite the requests - so that it will not be necessary for
Weld County to register warrants. This is signed by the Board of County
Commissioners, Marshall H. Anderson; Chairman, Glenn K. Billings, Member;
Harry S. Ashley, Member. I move adoption of the resolution.
Mr. Ashley: I second the motion.
Mr. Anderson: How do you vote on the motion?
Mr. Billings: I vote yes.
Mr. Anderson: Mr. Ashley?
Mr. Ashley: I vote yes.
Mr. Anderson: The chair votes yes. Let the record show that the resolution
passed by a unanimous ballot and that it is an individual vote of each member.
Mr. Billings: I would like to make a correction in the wording of the fifth line
at the end of the letter to the State Department of Social Services, which
will now read, " theLrmonies by made available by the State Board of Social
Services by determining that an emergency exists"- the continuing lines would
then be, "Weld County causing - exists in Weld County - Weld County will be
Board of Welfare . 11 -
August 16, 1971
to meet its necessary financial obligation for public welfare purposes
pursuant 1963 C. R. S. 119-9-13. The rest of the last sentenence is okay.
Mr. McKenna: Mr. Chairman, I would like to request that the Board grant
authority for the cancellation of lay-off notices to the staff. There
is a certain amount of anxienty by staff members in light of the Supreme
Court decision - would it be possible to cancel the notices.
Mr. Anderson: I don't see any problem do you?
Mr. Cooke: No I think by virtue of that order or the opinion of the
Supreme Court that it becomes a useless act not to cancel the order
or the notices. I think the opinion is clear that you have to pay
for the administrative costs.
Mr. Telep: Lets see lets go over that request again what - you say cancel
the notices - the notices are gone
Mr. Billings: This is notices of employment.
Mr. McKenna: Would there be any necessity for you to cancel notices to the
recipients or would this be
Mr. Cooke: No because of the Supreme Court order.
Mr. Anderson: Is there anything else to come before this Board?
Mr. Billings: Mr. Chairman, I also move at this time that we instruct our
Welfare Director to inform the employees of the Weld County Welfare Department
that the previous notice informing them of the lay-off be recinded.
Mr. Ashley: Seconded.
Mr. Anderson: How do you vote on the motion?
Mr. Billings: Yes.
Mr. Anderson: Mr. Ashley?
Mr. Ashley: Yes.
Mr. Anderson: The Chair votes yes. You may instruct your employees. Meeting
adjourned.
cVn*14 THE BOARD 0 COUNTY CO ISSIONERS
COUNTY CL AND RECORDER WELD COUNTY, COLORADO
AND CLERK TO THE BOARD
DEPUTY COUNTY CLERK
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