Review details transit system's demise

A defunct local transit provider had "serious cash flow problems" before it stunned riders last month when it stopped operating, a report states.

A review of the North Idaho Community Express (NICE) by the Idaho Transportation Department found an array of alleged issues, including a shortfall in local match funds, a lack of financial oversight, unpaid bills and no efforts to fill board vacancies as required under the by laws.

The report doesn't identify any cases of theft, but the Coeur d'Alene Police Department is investigating a different report alleging grand theft, Sgt. Christie Wood said.

"It is currently under investigation so I can not release any further information or confirm any specific suspects," Wood said, adding that no charges have been filed.

ITD's financial review of NICE, recently made public, offers insight to the fallout of the transit, which offered services in Kootenai, Bonner and Shoshone counties.

A local match shortfall of $33,045 in fiscal 2010 was noted. For fiscal 2011, through last October, there was another local match shortfall of $19,051.

The Federal Transit Administration requires that grant sub-recipients such as NICE have a local match to obtain the federal funds.

"NICE did not have the local match," said Rinda Mitchell, grant manager for ITD's public transportation division. "Without the local match, they could not provide the service."

Mitchell declined to comment further on the report.

"The report has to speak for itself," she said.

There's other indications of financial disarray.

"Over the three months prior to our field work, several hundred dollars in late fees and return check charges were noted on NICE's bank statement," the report states. "Over the course of the past calendar year, several federal and tax deposits were not made on a timely basis. Finally, as of the last day of our field work (Dec. 10), the state and federal tax deposits for October 2010 had not been made."

ITD's public transportation division received a call from Liberty Tire in Coeur d'Alene wondering how to get paid $6,329 for tires sold to NICE, the report states. But NICE had been reimbursed for the tires on Nov. 10.

The report states that NICE did not have purchasing rules, a written safety and security plan, follow state meeting rules and track assets of more than $5,000.

Local officials and riders have been pursuing answers on the NICE fallout since operations ceased last month.

"There's been a lot of questions from the public wanting to get the information out," County Commissioner Todd Tondee said.

Post Falls Mayor Clay Larkin, who sits on the Kootenai Metropolitan Planning Organization board, said the public is leery since former county chief deputy clerk Sandra Martinson was accused last month of embezzlement.

"The first thing people wondered is, 'Do we have another Sandra Martinson going on?' so that's what we're looking at," Larkin said, referring to the NICE demise. "I don't think all the answers have been told yet."

The county oversaw the contract of the urban routes of NICE/Kootenai Area Transit System (KATS), while ITD oversaw the contract for the rural routes.

Helen Stephens, who served as the NICE director, could not be reached for comment. A phone number she recently had has been disconnected. She previously referred questions to the Community Transportation Association of Idaho, which is in the process of finding a replacement provider for rural routes.

Stephens earlier said NICE folded due to a lack of funding and no further comment was provided.

Tondee said the county was unaware of NICE's financial woes until the audit of the rural route funding.

"With all of the questions about the rural audit, (NICE) decided to also end the urban contract," Tondee said.

Seniors and those with disabilities were among those who received door-to-door service through NICE/KATS. Service through other providers is being sought. Kootenai Medical Center is providing medical transport services in the urban area in the interim.

Citylink, funded by the Coeur d'Alene Tribe and federal grants, continues to operate throughout Kootenai County.