Agenda - 10-16-2018 8-a - Minutes

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13 1 Gary Donaldson said it will be an independent audit, and in the case of InterFaith 2 Council (IFC), their auditor provides that opinion. 3 Commissioner Jacobs asked if a small non-profit wants to apply, would the audit 4 expense prevent them from being able to do so. 5 Gary Donaldson said staff would look at the rest of the financial statements, but it would 6 be best practice for a non-profit to have an independent audit. 7 Commissioner Jacobs said when the outside agency funding applications are created 8 this fiscal year, he would recommend inquiring how many of those entities conduct an audit. 9 Gary Donaldson said he has already looked into this, and believes that all already 10 conduct an audit. 11 Commissioner McKee said the balance in the loan fund is now $282,000, and asked if 12 that is reserved for the community loans, and the $500,000 would be in addition to that for non- 13 profit loans. 14 Gary Donaldson said yes. 15 Commissioner Rich asked if there is an advertising plan for this process. 16 Gary Donaldson said staff can engage their Community Relations Director and other 17 outlets. 18 Bonnie Hammersley said she will share this with all outside agencies during the outside 19 agency process. She said of the outside agencies, to which she has spoken, there has been 20 no interest in a loan, but having it available would be nice. She said all non-profits would prefer 21 a contribution. 22 Commissioner McKee asked if there is a way to keep this from being a contribution. He 23 said this is his concern, and he sees no reason to go through the song and dance. He said he 24 would prefer to just call it a grant from the beginning, knowing that non-profits will request debt 25 forgiveness. 26 Gary Donaldson said there would be a loan agreement with a security of a deed of trust 27 that would indicate the monthly repayment schedule. 28 Commissioner McKee said this in no way prevents this, or a future board, from forgiving 29 a loan. 30 Gary Donaldson said that is correct. 31 Commissioner Jacobs said he shares this concern, and the Board would have to 32 reiterate that this is a loan, not a grant. He said non-profits may not currently be interested, but 33 this has never been an option before, and this is a lot like a conservation easements, which no 34 one wanted to try. He said it may take one or two non-profits being willing to try the program to 35 see the benefit of a loan. 36 Commissioner Price asked if a loan is defaulted upon, would the County have ownership 37 of the property. 38 Gary Donaldson said there would be a legal process to determine liens, and the 39 recourse available to the County. 40 Commissioner McKee said a conservation easement is a giveaway program, and he 41 sees this loan process the same way. 42 Commissioner McKee asked if the number of outside agencies currently being funded is 43 known. 44 Gary Donaldson said 55. 45 Commissioner McKee said if 20% of those agencies meet the eligibility criteria, there will 46 be insufficient funds available. He asked if there is a process in place to determine who gets 47 funding. 48 Commissioner Marcoplos said one would go through a process, and may get funding or 49 may not.