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Budget and Management -
Good morning. I’m not sure if this is the right committee to be addressing this matter to, but since it concerns the collection of monies owing to the county from a contract agency, I thought Budget and Management might be appropriate. I’m sure that the committee is aware that under the Consultancy contract between Infinitecare and the County, Infinitecare is supposed to repay the county for the shortfall payment, which now amounts to at least 9 million dollars as far as I can tell from the reconciliation figures, which were last received publicly last year, although they are supposed to be quarterly. In the contract, there is no specified time period for the repayment or interest on it, so it almost appears that the county didn’t really expect or require any actual repayment. This seems like a great example of Sullivan County just throwing the taxpayers’ money away in service of a dubious project which has had little success so far. Now, I realize that 9 million dollars is not that significant in terms of the total budget, and it represents monies that the county has already paid. Still, is there any actual plan for the shortfall repayment? I recall that when our County Manager was asked about this, he said that it would be part of future negotiations, but, since the lease agreement has already been signed, what negotiations could he be anticipating? Even the County Auditor last month seemed unclear about this.
Let’s just imagine that Infinitecare never receives their Certificate of Need approval from the DOH. After all, it’s been 19 months since they first applied, they got no recommendation from the PHHPC committee last November, and public opposition, complaints and citations galore since then. What happens if the current situation continues until August 2027, when the CON application period is ended? There have been several threats from Infinitecare to sue the county for failing to support the project adequately, as they see it. They are fearful that the public failure of this project will negatively affect their other business. There is also a 30 day clause under which the consultant or the county could end the consultancy agreement for cause. Does the county have any plan in development, either in the case of the consultancy contract termination, or to get the shortfall money they owe us?
Is it the job of the Management and Budget Committee to provide leadership on this issue? If not, whose job is it?
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