The council’s action came at its Sept. 2, 2014 meeting.

Splitt is still within the three-term limit for DDA board members that was included as part of a set of ordinance changes made by the city council at its Nov. 18, 2013 meeting. Some councilmembers had wanted a two-term limit, but the three-term limit emerged as part of a compromise. In addition to board governance, the council amended the ordinance regulating the DDA’s TIF (tax increment finance) capture.

Some councilmembers voting against Splitt’s confirmation cited recently reported raises awarded to DDA executive director Susan Pollay for FY 2013 and FY 2014 that appear to have been decided in a way that violated Michigan’s Open Meetings Act.

Several others were uncontroversially confirmed to other boards and commissions at the Sept. 2 meeting. Anna Ercoli-Schnitzer had been nominated to fill a vacancy on the commission on disability issues. Tamara Burns and Dick Mitchell had been nominated to be reappointed to the design review board. Sofia Franciscus had been nominated to fill the vacancy on the planning commission due to Paras Parekh’s resignation. All of those nominations were confirmed without discussion.

This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron.

The council’s first regular meeting in September was shifted from Monday to Tuesday in order to accommodate the Labor Day holiday.

The sign on the door to the Ann Arbor city council chamber includes Braille.

The Sept. 2 agenda is relatively light and is dominated by land use and development issues, several of them related to the Ann Arbor housing commission’s (AAHC) extensive plan to renovate many of its existing properties.

In other significant business, the council will consider giving direction to the city administrator to negotiate operating agreements with transportation networking companies like Uber and Lyft.

And the council will consider authorizing up to a 15-year extension of the local development finance authority (LDFA), based on collaborating with a satellite arrangement in Adrian and Tecumseh.

Separate from site plan and zoning issues associated with the AAHC’s renovations, the council will also consider transferring $729,879 from the affordable housing trust fund to the Ann Arbor housing commission. The fund transfer would support the “West Arbor” portion of the renovation plan. That would leave a $850,920 balance in the trust fund. The trust fund’s current balance stems largely from the council’s decision late last year – on Dec. 16, 2013 – to deposit into the trust fund the net proceeds of the sale of the former Y lot.

Two projects associated with the West Arbor part of the AAHC plan appear on the council’s Sept. 2 agenda. First, the council will consider initial approval of rezoning for the 3451 Platt Road property – from R1C (single-family dwelling district) and R2A (two-family dwelling district) to R4B (multi-family dwelling district). That was forwarded to the council with a recommendation of approval from the planning commission. However, commissioners postponed consideration of the site plan for the five-building, 32-unit project, amid concerns about the site’s location in the floodplain and stormwater management. The site plan may be able to “catch up” to the zoning approval – because the council will need to give the rezoning a second and final approval at a meeting following the Sept. 2 session.

Second, the North Maple Estates site plan, which requires just one council vote, will be considered on Sept. 2. The rezoning required for the AAHC project – a 4.8-acre site at 701 N. Maple Road – has already been given final approval by the city council, at its Aug. 18, 2014 meeting. The zoning was changed from R1C (single-family dwelling district) to R4B (multi-family dwelling district). The site plan, which was shifted to the Sept. 2 agenda, calls for demolishing 20 existing single-family homes – the public housing complex known as North Maple Estates – and constructing an eight-building, 42-unit apartment complex with a total of 138 bedrooms.

A non-AAHC land development item on the council’s Sept. 2 agenda is final approval of the rezoning of property necessary for an expansion of the Gift of Life Michigan facility on Research Park Drive. The rezoning would change 6.55 acres from O (office district) and RE (research district) to ORL (office/research/limited industrial district). The site plan, which also appears on the Sept. 2 agenda, calls for building a three-story, 40,786-square-foot addition to connect two existing buildings at 3161 and 3169 Research Park Drive, which are owned and occupied by the nonprofit.

Even though the council rejected one proposed change to its taxicab ordinance at its Aug. 18 meeting – which would have regulated all drivers for hire in the city – initial approval was given to another change in the part of the ordinance that regulates rates. So the council will be giving final consideration to that change on Sept 2. The change would establish certain parameters to mitigate possible negative consequences to the setting of a very high maximum allowable taxicab rate, under which taxicab companies might eventually compete. Those parameters include a requirement that a taxicab company commit to a single rate annually and that the rate be advertised in a vehicle with signage in letters one-inch tall.

As an alternative to requiring all drivers for hire to be registered with the city and to affix commercial plates to their vehicles, the council will consider whether to establish operating agreements with companies like Uber and Lyft. The council’s Sept. 2 agenda includes a resolution that would direct the city administrator to negotiate operating agreements with transportation network companies (TNCs) in lieu of developing a local law. The resolution does not define in specific terms what a TNC is.

In other business on Sept. 2, the council will consider a large contract with Ultimate Software Group, worth $250,000 for payroll software to cover the period as the city transitions to NuView, a different software system. Another large contract to be considered by the council on Sept. 2 is with Northwest Consultants Inc. for $930,822 – to do design work for the Stadium Boulevard reconstruction project from Kipke Drive to Hutchins.

A smaller contract to be considered by the council, as part of the consent agenda, is with Hinshon Environmental Consulting Inc. for additional facilitation services for the technical oversight and advisory group (TOAG). That group is overseeing and coordinating multiple wet weather-related projects in the city. The $10,000 contract amendment would bring the total contract value to $35,000.

The council will also consider the confirmation of several nominations to boards and commissions, including a reappointment of John Splitt to the board of the Ann Arbor Downtown Development Authority. It would be Splitt’s third four-year term on the board.

This article includes more detailed information about many of these agenda items. More details on other agenda items are available on the city’s online Legistar system. The meeting proceedings can be followed Tuesday evening live on Channel 16, streamed online by Community Television Network starting at 7 p.m.

The Chronicle will be filing live updates from city council chambers during the meeting, published in this article below the preview material. Click here to skip the preview section and go directly to the live updates. The meeting is scheduled to start at 7 p.m.

Affordable Housing Fund Transfer

The council will be considering a $729,879 transfer from the affordable housing trust fund to the Ann Arbor housing commission to support the “West Arbor” portion of the AAHC’s renovation plan. That would leave a $850,920 balance in the trust fund. The trust fund’s current balance stems largely from the council’s decision late last year – on Dec. 16, 2013 – to deposit the net proceeds of the sale of the former Y lot into the trust fund.

By way of background, in 2012 the city was accepted into a new rental assistance demonstration program, known as RAD, offered by the U.S. Dept. of Housing and Urban Development (HUD). The program allows residents in selected housing units to receive rental assistance through long-term Section 8 subsidy vouchers that are tied to the buildings, rather than individuals. The RAD program also enables entities like the AAHC to partner with private-sector developers on housing projects – something the AAHC couldn’t previously do. The Ann Arbor city council gave necessary approvals in connection with the RAD program at its June 3, 2013 meeting. Financing for the RAD program is primarily through low-income housing tax credits (LIHTC).

According to the memo accompanying this item, out of the $16,564,370 project budget for West Arbor, low-income housing tax credits and permanent debt are expected to cover $14,091,491. That leaves a gap of $1,472,879. The AAHC has secured $50,000 from Michigan State Housing Development Authority (MSHDA) and $293,000 from a Community Challenge Planning Grant. So the AAHC has requested up to $729,879 in capital funding support from the Ann Arbor housing trust fund for the West Arbor portion of the RAD conversion.

A project included in West Arbor is the Lower Platt Road project, which will entail demolishing four 5-bedroom units – because of their current placement in the floodplain – and constructing 32 townhomes and a community center. A second project included in West Arbor is North Maple Estates, which currently offers 19 units. All those units would be demolished and replaced with 42 townhomes.

The final component of West Arbor is the renovation of the four 3-bedroom units known as the North Maple Duplexes.

AAHC: 3451 Platt Road Rezoning

The council will give initial consideration to the rezoning that’s necessary for the Lower Platt portion of West Arbor: from R1C (single-family dwelling district) and R2A (two-family dwelling district) to R4B (multi-family dwelling district).

The planning commission sent the rezoning request for the 3451 Platt Road property to the city council with a recommendation of approval – in a vote taken at its Aug. 6, 2014 meeting. However, commissioners postponed consideration of the site plan for the five-building, 32-unit project, amid concerns about the site’s location in the floodplain and stormwater management. The postponement is supposed to allow time to address staff concerns regarding the impact on natural features.

Zoning and site plan approval must ultimately be given by the city council. However, the zoning approval will require two votes by the council at two separate meetings – because changes to the zoning code are actually changes to a city ordinance. So the site plan’s delay would not necessarily delay the project, as long as the site plan is put in front of the council for consideration by the time the council takes a second vote on the rezoning.

The site includes a property currently owned by AAHC, as well as an adjacent parcel that’s being purchased by the city on behalf of AAHC.

The project calls for demolishing four single-family homes and one two-family building, and constructing a 32-unit apartment complex with five buildings, 61 parking spaces, a playground, and a community building. The new apartments will include: 8 one-bedroom units; 12 two-bedroom units; 6 three-bedroom units; 2 four-bedroom units; and 4 five-bedroom units.

Two of the proposed buildings would be in the floodplain, which raised concerns from city staff. The AAHC is working to address those concerns – possibly by eliminating or reducing the number of buildings in the floodplain. It had been expected that the AAHC could address the issues raised by city staff so that the site plan could return to the planning commission at its Aug. 19 meeting – but that didn’t happen. Nor is it on the planning commission’s Sept. 3 agenda. [.pdf of planning staff report] [.pdf of June 28, 2014 citizen participation meeting report]

This project is part of major renovations and improvements the AAHC is making to its low-income housing inventory. For background on the AAHC process of renovating its properties, see Chronicle coverage: “Public Housing Conversion Takes Next Step.”

The AAHC Platt Road project is different from a Washtenaw County-owned property at 2260 and 2270 Platt Road, the former location of the county’s juvenile center. That site is also being considered for affordable housing.

North Maple Estates

The council will consider the site plan for North Maple Estates on Sept. 2. This Ann Arbor housing commission project calls for demolishing 20 existing single-family homes – the public housing complex known as North Maple Estates – and constructing an eight-building, 42-unit apartment complex with a total of 138 bedrooms.

Aerial view of North Maple Estates site, outlined in green.

The rezoning of the 4.8-acre site at 701 N. Maple Road already has been given final approval by the city council at its Aug. 18, 2014 meeting. The zoning was changed from R1C (single-family dwelling district) to R4B (multi-family dwelling district).

The Ann Arbor planning commission had recommended the zoning and site plan for approval at its meeting on June 17, 2014. The council gave initial approval of the rezoning at its July 7, 2014 meeting.

The project is another part of the major renovation effort being undertaken by AAHC on several of its properties. The site is on the west side of North Maple, between Dexter Avenue and Hollywood Drive. [.pdf of staff report]

The units in the eight-building, 42-unit apartment complex are proposed to have a total of 138 bedrooms. The units range in size from one bedroom to five bedrooms.

The project will include a playground, community building and 73 parking spaces. According to a staff memo, the buildings will be located along a T-shaped driveway that connects to North Maple Road and Dexter Avenue. The drive extends northward toward Vine Court but does not connect with that street. There would be a new connection to Dexter Avenue through the remaining, undeveloped length of Seybold Drive.

Gift of Life Expansion

At its Sept. 2 meeting, the council will consider giving final approval to the rezoning of property necessary for an expansion of the Gift of Life Michigan facility on Research Park Drive. The rezoning would change 6.55 acres from O (office district) and RE (research district) to ORL (office/research/limited industrial district). At the same meeting, the council will also consider the site plan for the project.

Aerial view of Gift of Life Michigan site.

The proposal calls for building a three-story, 40,786-square-foot addition to connect two existing buildings at 3161 and 3169 Research Park Drive, which are owned and occupied by the nonprofit. According to a staff report, the additional space will accommodate offices, a special events auditorium and “organ procurement suites.” The nonprofit’s website states that the Gift of Life is Michigan’s only federally designated organ and tissue recovery program. Cost of the expansion project will be $10.5 million.

The city planning commission recommended approval of the rezoning at its July 1, 2014 meeting. City council action to give initial approval of the site plan came at its meeting on Aug. 7.

The project would reduce the four existing curb cuts to Research Park Drive to three, connecting one of the loop driveways to an existing driveway at the east end of the site. A parking lot at the back of the site will be expanded by 38 parking spaces. Two alternate vehicle fueling stations are proposed in parking spaces near the main entry, with the driveway at the center of the site providing access for ambulances. A new shipping and receiving facility will be located on the northeast corner of the site.

Taxicab Meter Rates

Even though the council rejected one proposed change to its taxicab ordinance at its Aug. 18, 2014 meeting – which would have regulated all drivers for hire in the city – initial approval was given to another change in the part of the ordinance that regulates rates. So the council will be giving final consideration to that change on Sept 2.

The change would establish certain parameters to mitigate possible negative consequences to the setting of a very high maximum allowable taxicab rate, under which taxicab companies might eventually compete. Those parameters include a requirement that a taxicab company commit to a single rate annually and that the rate be advertised in a vehicle with signage in letters one-inch tall.

The vote by the taxicab board to recommend the ordinance change came at its July 24, 2014 meeting.

These issues were also discussed at three monthly meetings of the taxicab board prior to that, on April 23, 2014, May 22, 2014 and June 26, 2014. Representatives of the taxicab industry at those meetings advocated for the establishment of a very high maximum – not tied to gas and insurance prices. They feel it’s one mechanism that would allow them to compete with ride-sharing services like Uber and Lyft.

The proposal to regulate all drivers for hire, which the council rejected, was also intended in part to allow taxicab companies to compete with Uber and Lyft on an even playing field. Taxicab drivers are already regulated by the city.

Regarding fare regulation, the city’s current structure already allows for establishing a maximum rate to be adopted by the city council. Currently the maximum rate in Ann Arbor is $3 to get in, $2.50 per mile, and 40 cents per minute waiting time. Those maximum rates were last adjusted upwards three years ago, on May 16, 2011, in response to gas prices that had nudged past $4 per gallon. At that time, the taxicab board indicated it did not anticipate considering another rate change until the gas prices were over $5 for at least two consecutive months.

So the taxicab board’s thinking is not being driven by gas prices, which are currently between $3.75 and $4 in the Ann Arbor area. Instead, a possible increase in allowable fares is based on concern that the taxicab industry in Ann Arbor might not be able to survive unless taxis are allowed to charge more.

At its Aug. 28, 2014 meeting, taxicab board members recommended the following maximum rate schedule for eventual consideration by the council, which could appear on the council’s agenda as soon as Sept. 15: $10 to get in, $5 per mile and 40 cents per minute waiting time. In addition, a $1 surcharge could be applied for each passenger over three passengers.

At the council’s Aug. 18 meeting, Stephen Kunselman (Ward 3) – who also serves as the city council’s representative to the taxicab board – asked rhetorically if the taxicab board should be disbanded. At its Aug. 28 meeting, taxicab board chair Michael Benson announced that he’d received an email from board member Eric Sturgis, who indicated that he would be resigning from the board – because he’s moving to Jackson, Mich. It has historically been difficult to find residents willing to serve on the taxicab board.

Drivers for Hire: Uber/Lyft Operating Agreement

The ordinance change rejected by the council on Aug. 18, 2014 would have required all drivers for hire to be registered with the city, to have commercial plates on their vehicles, and to maintain insurance commensurate with commercial plates. And the absence of commercial plates on a vehicle that’s observed being used for picking up or dropping off passengers would have provided a reason for a traffic stop by Ann Arbor police. At the taxicab board meetings over the last few months, representatives of the taxicab industry argued that the state statute regulating limousines already gives the city the ability to enforce against Uber and Lyft drivers.

At the taxicab board’s Aug. 28 meeting, representatives of the taxicab industry lamented the fact that they had not attended the council’s Aug. 18 meeting to advocate for regulating all drivers for hire through a city ordinance. Representatives of Uber and Lyft numbered over 50 people at the council meeting, some of whom addressed the council during public commentary time.

Ward 3 city councilmember and taxicab board member Stephen Kunselman indicated at the board’s Aug. 28 meeting that there might be a possibility that one of the five councilmembers who voted against the ordinance at first reading on Aug. 18 might bring it back for reconsideration.

The 5-5 vote totaling 10 on the 11-member body stemmed from the absence of Margie Teall (Ward 4). Voting for the regulation of all drivers for hire were Kunselman, Sumi Kailasapathy (Ward 1), Jack Eaton (Ward 4), Chuck Warpehoski (Ward 5) and Mike Anglin (Ward 5). Voting against the change were mayor John Hieftje, Sabra Briere (Ward 1), Jane Lumm (Ward 2), Sally Petersen (Ward 2) and Christopher Taylor (Ward 3).

At the council’s Aug. 18 meeting, during deliberations on the rejected ordinance change, Briere indicated that she’d concluded as early as April of this year that an operating agreement – instead of a local ordinance – would be the right approach. Taylor indicated he had been working with Briere to come up with that kind of approach.

The resolution to be considered by the council on Sept. 2 would direct the city administrator to negotiate an operating agreement with established transportation network companies (TNCs) and to bring an agreement to the council for approval by the second council meeting in October, which is Oct. 20.

The elements to be included in the operating agreement are specified in an attachment to the resolution as follows:

Operating agreement principles include:

• Company will provide a minimum of $1M in liability insurance coverage for the driver, vehicle and passengers and any other injured parties, from the moment a driver is linked with a passenger to the moment the passenger releases the vehicle.
• Company will conduct the following at no cost to the city: background checks for each driver-applicant prior to allowing their participation. This background check will include a criminal background check, including a check for multiple relevant jurisdictions; a review of the applicant’s driving record; a mechanical inspection of the vehicle by a licensed inspector. The results of this data collection will be made available to the City for any driver / vehicle combination approved for participation in the company.
• Company will not allow participation by a driver / vehicle combination if the driver has any felony conviction; any conviction for DUI; more than 2 moving violations in any calendar year or more than 4 moving violations in a six-year period, with no more than 4 accumulated points in any calendar year.
• Company shall ensure that all driver vehicles pass an annual, mutually agreeable safety inspection conducted by a licensed mechanic.
• Prior to participation in the program, drivers shall go through a driver-education program that provides training in customer service and improves familiarity with local streets and local traffic conditions.
• Drivers shall not accept passengers except through the ride-sharing mechanism provided by the Company.
• Company will provide requested data to the City about accidents and incidents with passengers, as well as a report on customer satisfaction and safety ratings.

The resolution does not appear to define explicitly what a TNC is – and seems to allow for the possibility that an existing limo company could seek to operate under such an agreement without complying with the state statute on operation of limousines.

The resolution also leaves unspecified the intended term of the agreement – although deliberations at the council’s Aug. 18 meeting indicated that the intent of such operating agreements in other Michigan municipalities was to implement a temporary basis under which Uber and Lyft could operate, while the state legislature establishes a legislative framework under which such companies could operate.

The resolution does not direct the city administrator to provide for any explicit penalties that the city could impose on a TNC for failure to adhere to the operating agreement. The enforcement mechanism that the resolution seems to contemplate is for a TNC to provide certain kinds of data to the city upon request.

The resolution does not direct the city administrator to impose any requirements on the public accessibility of data provided by TNCs to the city. If a company were to come to an agreement with the city that data and information would be provided to the city, but only upon the condition that it not be disclosed to the public, then that data would be exempt from disclosure, even under a request made under Michigan’s Freedom of Information Act.

Extension of LDFA

The council will consider a resolution on Sept. 2 that would move ahead with a 15-year extension of the local development finance authority (LDFA). The LDFA – branded as one of about a dozen LDFA SmartZones statewide – is funded through capture of public school operating millages within the geographic areas of the Ann Arbor and Ypsilanti downtown development authority districts. In actual fact, however, no capture is made of the Ypsilanti school taxes.

The LDFA contracts with Ann Arbor SPARK to operate a business accelerator, which is meant to move start-up companies in the tech and biosciences sectors more quickly to a stage in their development when they are generating revenue from paying customers and adding jobs. Separate from the LDFA business acceleration contract with Ann Arbor SPARK, the city of Ann Arbor has historically engaged SPARK for business attraction and retention services. However, this year the $75,000 annual contract with SPARK was tabled by the council – in a vote taken at the council’s June 16, 2014 meeting. It’s expected at some point to be taken back up off the table for consideration. By council rule, it will be considered demised if it’s not considered before a lapse of six months.

The extension – which would still need approval from the Michigan Economic Development Corporation – depends on establishing a relationship between the Ann Arbor-Ypsilanti SmartZone and some other “satellite” LDFA. So the Sept. 2 resolution designates Adrian/Tecumseh as that satellite. The council’s resolution specifies the following as findings:

1. That the selection of the Adrian/Tecumseh LDFA as a satellite provides unique characteristics and specialties through its public and private resources including the location of Adrian College, Siena Heights University and Jackson College within its TIF District and the opportunities for research partnerships and student/young entrepreneur involvement. In addition partnership with another multi-jurisdictional LDFA provides opportunities for shared experiences.
2. That the selection of the Adrian/Tecumseh LDFA as a satellite provides regional cooperation and collaboration benefits to the LDFA and the Cities of Ann Arbor and Ypsilanti with joint focuses on technology (including expanding green technologies and agricultural technology) and entrepreneurial services.
3. That the selection of the Adrian/Tecumseh LDFA as a satellite provides value and support to the LDFA by strengthening existing collaboratives, making available a new/expanded technical assistance and support through its Innovation Center at Adrian College, and agricultural and manufacturing resources.

In connection with the extension, revisions to the Ann Arbor-Ypsilanti SmartZone TIF (tax increment financing) plan and development plan are being undertaken. Drafts of revisions are attached to the council’s Sept. 2 agenda item. Revisions appear to address concerns that have been raised about the current arrangement – to some extent by Ann Arbor city councilmembers.

Those concerns include the fact that TIF is not currently allowed to be spent outside the TIF district in the city of Ann Arbor; further, no TIF funds can be expended in Ypsilanti – inside or outside its TIF district – because no actual tax capture revenue is generated for the LDFA in that area. The revisions would allow TIF revenue to be expended anywhere in the entire cities of Ann Arbor or Ypsilanti.

In addition, the revisions specify in greater detail that TIF revenue can be used to pay for high-speed communications infrastructure. Specifically mentioned as eligible expenditures is the “installation of technology related infrastructure assets, i.e. fiber lines, nodes, or work spaces.”

The LDFA extension comes in the context of lingering questions about the impact on school funding of the LDFA tax capture. In FY 2013, the total amount captured by the Ann Arbor SmartZone LDFA was $1,546,577, and the current fiscal year forecast is for $2,017,835. About the same amount is forecast for FY 2015.

The LDFA captures Ann Arbor Public Schools (AAPS) operating millage, but those captured taxes don’t directly diminish the local school’s budget. That’s because in Michigan, local schools levy a millage, but the proceeds are not used directly by local districts. Rather, proceeds are first forwarded to the state of Michigan’s School Aid Fund, for redistribution among school districts statewide. That redistribution is based on a per-pupil formula as determined on a specified “count day.” And the state is supposed to “reimburse” the School Aid Fund for the taxes captured by some SmartZones in the state.

Questions raised in the last few months have centered around whether the School Aid Fund is “reimbursed” by the state’s general fund for the taxes that are captured to fund the Ann Arbor SmartZone LDFA – because the wording of the state statute is based on the term “reimburse.”

It turns out that the school taxes captured by the Ann Arbor SmartZone are not required to be “reimbursed” to the state School Aid Fund – which diminishes the amount of funding for public schools statewide. That’s a conclusion based on a reading of the LDFA statute and confirmed to The Chronicle by communications staff in the Dept. of Treasury and the MEDC. However, it’s not clear that “reimbursement” is even a useful way of framing the question – notwithstanding the wording of the state statute. That’s partly because tax capture from those LDFAs to which the state statute does apply are not “reimbursed” in the sense that the word implies – with a specific calculation done and a transfer of money (or an adjustment to the legislature’s appropriation) made based on that calculation. From an Aug. 7, 2014 staff memo: “… the reimbursement language really only served as language of intent.”

Based on subsequent inquires made by city of Ann Arbor financial staff with state officials, it appears that the setting of the statewide per-pupil allowance each year proceeds along a separate track from replenishing the School Aid Fund – which receives significant revenue from sources other than local school operating millages. It appears it’s not possible to establish a 1-to-1 relationship between local school operating taxes that are captured by LDFAs and money that flows into the School Aid Fund from various other sources that might be analyzed as “compensating” for the capture.

In any case, city staff have concluded that LDFA tax capture has not had a negative impact on Ann Arbor’s local school funding.

Appointments to Boards and Commissions

Appointments to the city of Ann Arbor’s boards and commissions are typically handled in a two-step process: (1) the mayor announces the nominations at a council meeting; and (2) the council votes on the confirmation at the next meeting of the council. The procedure is grounded in the city charter.

At the council’s Aug. 21 meeting, Anna Ercoli-Schnitzer was nominated to fill a vacancy on the commission on disability issues. Tamara Burns and Dick Mitchell were nominated to be reappointed to the design review board. Sofia Franciscus was nominated to fill the vacancy on the planning commission due to Paras Parekh’s resignation. And John Splitt was nominated for reappointment to the Downtown Development Authority board.

3:05 p.m. The staff responses to councilmembers’ questions about agenda items are now available. [Sept. 2, 2014 staff responses to questions]

4:29 p.m. Tonight only five people appear to be signed up to talk in the 10 slots for public commentary that are available at the start of the meeting. Kai Petainen is signed up to talk about the LDFA extension. Alan Haber is signed up to talk about the park advisory commission’s recommendation for redevelopment of Liberty Plaza, which is an attachment to the clerk’s report. And three people are signed up to talk about the direction to the city administrator to negotiate operating agreements with transportation network companies like Uber and Lyft: John Heed, a representative of SelectRide; and Michael Benson and LuAnne Bullington, who serve on the city’s taxicab board. (Benson is chair of that group.)

6:52 p.m. Jane Lumm (Ward 2), Jack Eaton (Ward 4), Sally Petersen (Ward 2) and mayor John Hieftje have arrived.

7:04 p.m. We’re still missing Christopher Taylor (Ward 3) and Margie Teall (Ward 4).

7:07 p.m. Call to order, moment of silence, pledge of allegiance.

7:07 p.m. Roll call of council. Margie Teall (Ward 4) and Christopher Taylor (Ward 3) are absent.

7:08 p.m. Approval of agenda.

7:09 p.m. Chuch Warpehoski (Ward 5) is adding an agenda item DS-4, which will take up the Ann Arbor SPARK contract off the table from a previous meeting. A separate vote will be taken at the time the council reaches that agenda point.

7:09 p.m. Outcome: The council has approved the evening’s agenda as amended.

7:10 p.m. Communications from the city administrator. City administrator Steve Powers reminds the council of the Sept. 8 work session with the DDA on parking issues, starting at 7 p.m.

7:10 p.m. Public commentary. This portion of the meeting offers 10 three-minute slots that can be reserved in advance. Preference is given to speakers who want to address the council on an agenda item. [Public commentary general time, with no sign-up required in advance, is offered at the end of the meeting.]

7:13 p.m. Kai Petainen is speaking about the LDFA extension. He is focusing on the jobs claims that have been made by Ann Arbor SPARK. He says that SPARK and LDFA are not telling a consistent story. He asks if it’s worth spending $58 million on 700 jobs. He asks if many of the jobs that have been created would have been created even without the existence of SPARK and the LDFA. [.pdf of Petainen's remarks]

7:14 p.m. Alan Haber is talking about the World Day of Peace. He’s talking about the importance of gathering the community. He’s supporting a proclamation later on the agenda that would recognize World Peace Day. [Teall and Taylor have now arrived at the meeting.]

7:17 p.m. John Heed is speaking against negotiating an operating agreement with Uber and Lyft, arguing that they operate in violation of state law. He gives insurance requirements as an example of the competitive playing field not being level. The operating agreements would simply shift responsibility, he says. Having a new business model does not make anybody above the law, he says.

7:21 p.m. Michael Benson is chair of the taxicab board and a resident of Ward 2. He was in Beijing during the last council meeting and couldn’t attend. He characterizes the transportation industry as in a state of flux due to a variety of factors. He’s speaking against establishing operating agreements with TNCs, arguing that they fall under the state’s limo statute. He says that the proposal that the taxicab board had made would be broad enough to cover the market, however it evolved. He points out that the city had issued a cease-and-desist order, which means that the city’s view is that Uber and Lyft are operating in violation of the law. He asks that the council reconsider the ordinance they rejected, and allow a public hearing on the question by allowing it to go to a second reading. [.pdf of Benson's remarks]

7:24 p.m. LuAnne Bullington says she’s not speaking as a member of the taxicab board, but as a citizen who knows something about transportation. A limo is licensed by the state, and a taxi is licensed by a local municipality. It’s not possible to regulate taxicabs outside of the city, she says. She says that Uber is really a $17 billion taxicab company that the state and the city of Ann Arbor can’t regulate. She notes that a court in Frankfurt, Germany had issued an order against Uber that Uber is simply ignoring.

7:24 p.m. Communications from the council. This is the first of two slots on the agenda for council communications. It’s a time when councilmembers can report out from boards, commissions and task forces on which they serve. They can also alert their colleagues to proposals they might be bringing forward in the near future.

7:24 p.m. Jack Eaton says that a meeting on the Packard Square development has been canceled and will be scheduled for a later time.

7:28 p.m. Mike Anglin is talking about the Sept. 21 World Peace Day proclamation. He says that it was added late, but he wanted it to appear on this council’s agenda. He also points to the F-3 communication from the park advisory commission, which is attached to the agenda. Anglin says that voters had overwhelmingly said they wanted additional parks in the downtown. Because the council had voted to designate part of the top of the Library Lane parking structure as a public park/plaza, it was important to start holding events there. The World Peace Day event is something that there can’t be any equivocation about, he says – as everyone agrees there should be peace in the world. It should be made possible without establishing barriers. He’s referring to the requirement that an insurance policy be in place. [The DDA's policy on use of public parking facilities for events includes an insurance requirement.]

7:30 p.m. Sumi Kailasapathy says that as she was walking in, Ray Detter had told her that there was a light agenda. She said that although the agenda is light, she had a heavy heart because it is the last day of The Ann Arbor Chronicle. She’s now talking about the beheading of journalists in the Middle East and relates her own experience growing up in a civil war in Sri Lanka. She’s talking about the importance of documenting history. She’s sending her salutations and thanks to The Chronicle.

7:32 p.m. Sabra Briere is talking about the design charrette on the Platt Road site. It was hosted by Washtenaw County, which owns the land. The county board of commissioners was interested in how the public wanted to see the site developed if it included housing. The results of the charrette are now up on the website, Briere says. If the county determines that affordable housing is appropriate, she hopes the city will be able to cooperate in that effort. She encourages people to look into that and to communicate to the county.

7:35 p.m. Jane Lumm is announcing the year-end dog swim at the Buhr Park pool on Sept. 3-4. Educational efforts will be made at the event about the dog licensing requirements. She’s thanking Kailasapathy for her comments about The Chronicle and wishes us a happy 25th wedding anniversary. She’s describing The Chronicle as public servants who have helped improve the community with an emphasis on open and transparent governance. She’s extending her sincere thanks and says The Chronicle will be missed.

7:36 p.m. Hieftje says there are some spectacular athletes at the dog swim. He tells late-arriving councilmembers that the SPARK contract has been added to the agenda to be taken up off the table.

7:37 p.m. MC-1 Confirmations. At the council’s Aug. 21 meeting, Anna Ercoli-Schnitzer was nominated to fill a vacancy on the commission on disability issues. Tamara Burns and Dick Mitchell were nominated to be reappointed to the design review board. Sofia Franciscus was nominated to fill the vacancy on the planning commission due to Paras Parekh’s resignation. And John Splitt was nominated for reappointment to the Downtown Development Authority board.

7:37 p.m. Eaton is asking that John Splitt’s nomination to be separated out from the others.

7:38 p.m. The council has confirmed all the nominations except for that of Splitt, which is being considered separately.

7:39 p.m. Stephen Kunselman says he won’t support Splitt to a third term. Eaton also says he won’t support it, and he wants to explain why. He says that The Chronicle has consistently reported on various problems with the Open Meetings Act and a compliant development plan, and he thinks that those problems stem from confirming the same people over and over again.

7:40 p.m. Kailasapathy also says she won’t support Splitt’s confirmation. She wants people who will take TIF (tax increment finance) spending seriously, and not treat it like “Halloween candy.” New people will look at things with fresh eyes, she says. She says it’s not personal.

7:42 p.m. Petersen says she’ll support Splitt and says she knows him to be an independent thinker. When she traveled with the DDA to New York City, he’d made an extra effort to get to know her. She says that Splitt represents the State Street area of the downtown.

7:44 p.m. DDA board chair John Mouat is asked to the podium by Margie Teall (Ward 4). She asks him if the DDA board members are “slackers.” Mouat is saying there is a steep learning curve on the DDA. Teall asks if there is any review of the OMA on staff. He allows that it’s been brought up as a point of discussion. It’s probably something that the DDA should look at, he says.

7:48 p.m. Kunselman is asking Mouat about the raises that Susan Pollay received as executive director. Mouat says he doesn’t feel comfortable answering that question. Kunselman says he wasn’t planning to go into detail. He’s reviewing The Chronicle’s reporting about those raises. Kunselman is now talking about the requirements of the DDA statute. He says he’s looking for new DDA members who will each year work on the TIF plan. Mouat points to the joint working session on Sept. 8, which would be a better occasion for this discussion, he says.

7:49 p.m. Anglin is comparing the compensation of DDA staff to city staff. Anglin says he’s voting against Splitt’s reappointment because he wants to see the DDA step up and provide police in the downtown.

7:51 p.m. Kailasapathy responds to Mouat’s remarks about the learning curve. The DDA’s institutional memory is not as good as it should be, she says. Kailasapathy is talking about Kunselman and The Chronicle’s retrieval of some DDA records from the Bentley Library. She wondered why long-term members of the DDA had not remembered these things.

7:53 p.m. Lumm thanks those who have said they will vote against Splitt’s appointment. She says that city administrator Steve Powers had demonstrated a courageous vote when he voted against Susan Pollay’s raise this year. However, Splitt was entitled to another term, Lumm says. Splitt has worked hard, she adds, so she will support his appointment.

7:55 p.m. Hieftje says there are membership criteria for members of the DDA. Splitt is a downtown business owner and lives in the DDA district, he says. He gives a breakdown of the mix of the DDA board in terms of thirds, based on their length of service.

7:55 p.m. The council has confirmed the nominations of John Splitt to a third term on the DDA board on a 7-4 vote. Dissenting were Kailasapathy, Kunselman, Eaton and Anglin

7:55 p.m. MC-2 Nominations. Tonight Sam Callan is being nominated to the building board of appeals. The vote on his confirmation will come at the council’s next meeting.

7:55 p.m. Public Hearings. All the public hearings are grouped together during this section of the meeting. Action on the related items comes later in the meeting. Four public hearings are scheduled tonight: one on the Ann Arbor Housing Commission’s North Maple Estates site plan; two on the Gift of Life project (one for the rezoning and the other on the site plan); and one on the changes to the taxicab rate ordinance.

7:55 p.m. PH-1 AAHC North Maple Road site plan

7:57 p.m. Thomas Partridge is speaking in support of this item, with the proviso that it should have adequate handicapped parking.

7:59 p.m. Ed Vielmetti is speaking in support of the site plan. He’s objecting to the copyright notices that are included on the various maps. Because they are planning documents that people might want to review, it’s important that the city include copyright notices that are appropriate for archival distribution.

8:02 p.m. Scott Betzoldt with Midwestern Consulting, Jennifer Hall of the AAHC and architect John Mouat are at the podium. They represent the project. Betzoldt is going first. He says that all the underground utilities will be replaced, and stormwater detention will be provided. Mouat says that his firm has worked with AAHC for over 20 years. He stresses three points. The buildings have been designed to be simple to maximize floor area. The mix of bedrooms is 1-bedroom, 2-bedroom, 3-bedroom and 4-bedroom units. He also notes that the units will be barrier-free. The building will also be certified as environmental friendly, he says, including 4×6 stud construction, which will allow for additional insulation.

8:04 p.m. Hall says that this is the first site to which the AAHC has been able to add units in over 20 years. She’s talking about the relocation plan for the current tenants. They’ll be able to move back to the site when construction is complete.

8:04 p.m. That’s it for PH-1.

8:04 p.m. PH-2 Gift of Life rezoning

8:06 p.m. Thomas Partridge expresses concern that there should be a requirement that the property be made accessible to public transportation as well as paratransit. All similar rezoning should have such a requirement.

8:07 p.m. That’s it for PH-2.

8:07 p.m. PH-3 Gift of Life site plan

8:08 p.m. Thomas Partridge reiterates the importance of making site plan approval contingent on adequate access to handicapped parking and public transportation.

8:09 p.m. That’s it for PH-3.

8:09 p.m. PH-4 Taxicab ordinance

8:12 p.m. Mark LaSarge of SelectRide is addressing the council. He’s arguing against pricing restrictions generally. He’s ticking through the costs of the taxicab industry. The city doesn’t determine prices for milk, he notes, and should not determine prices for taxicabs. He’s also arguing against the direction to the city administrator to negotiate operating agreements that the council will consider tonight.

8:16 p.m. John Heed says this should be passed, even though it will not solve all the problems. It will help the taxicab industry absorb “price shocks,” he says.

8:16 p.m. A woman introduces herself as a taxicab driver. She disagrees with the taxicab owners on the fare issue. But she agrees with them on the question of operating agreements with Uber and Lyft. Hieftje encourages her to relate her remarks to the ordinance on the agenda. She invites councilmembers to do a ride-along with her as she drives her taxi.

8:18 p.m. LuAnne Bullington is reviewing how the price structure would work. She asks councilmembers to support this ordinance change, because it gives taxicab companies flexibility. The taxicabs would simply have to post the rates, she concludes.

8:20 p.m. Rick Clark, of Amazing Blue Taxi, tells the council that he’d received a sad phone call from a customer, who would no longer be using his cab service – because she’s moving to California. She thanked him for the service. “An app is not going to care about people,” he concludes.

8:22 p.m. Thomas Partridge wants the maximum rates extended to cab-like services like Uber and Lyft. He calls for keeping Ann Arbor an affordable city.

8:23 p.m. Michael White, general manager for Uber in Michigan, speaks in support of the “deregulation” of taxicab rates. He says that the council’s focus should be on providing choice and safety. Uber provides choice and safety, he says. He’s available, if councilmembers have questions, he says.

8:26 p.m. Michael Benson, chair of the taxicab board, says that this ordinance addresses two problems – variable insurance and gas rates. The cost of doing business has to be weighed against the cost to the public. The ordinance requires posting the rates and allows a taxicab company to change its rates once during the year. This does not mean the taxicab board is in favor of complete deregulation, he says. The taxicab industry is different from others in that it operates solely in the public right of way. He encourages the council to approve the ordinance.

8:27 p.m. That’s it for PH-4.

8:27 p.m. Council minutes.

8:27 p.m. Outcome: The council has approved the minutes of the previous meeting.

8:27 p.m. Consent agenda. This is a group of items that are deemed to be routine and are voted on “all in one go.” Contracts for less than $100,000 can be placed on the consent agenda. This meeting’s consent agenda includes:

• CA-1 Street Closing: Oktoberfest Oct. 3-4, 2014 (W. Washington) requested by Arbor Brewing Company.
• CA-2 Street Closing: Oktoberfest Oct. 3-4, 2014, (W. Washington) requested by Grizzly Peak Brewing Company and the Blue Tractor.
• CA-3 Street Closing: Reception for UM President Sept. 5, 2014 (E. Washington btw. Thayer and Fletcher).
• CA-4 Contract Amendment with Hinshon Environmental ($10,000).
• CA-5 Approve a purchase order with Staples FY 2015 ($92,499).
• CA-6 PILOT for Avalon Housing 1010-1030 Arbordale Street.
• CA-7 Amend contract with Green Vision Lawn and Landscaping ($2,556).
• CA-8 Authorize contract with OPUS International Consultants, Inc. ($58,724) for Nixon/Green/Dhu Varren Intersection Improvement Study.

8:28 p.m. Councilmembers can pull items off the consent agenda for separate consideration. Tonight Briere has asked CA-6 and CA-8 to be pulled out for separate consideration. Taylor wants CA-2 pulled out.

8:28 p.m. Outcome: The council has approved the consent agenda except for the three items to be considered separately

8:28 p.m. CA-2 Street Closing: Oktoberfest Oct. 3-4, 2014 (W. Washington) requested by Grizzly Peak Brewing Company and the Blue Tractor.

8:29 p.m. This was considered separately to allow for recusal of Taylor because his firm represents the requestor of the street closing.

8:29 p.m. Outcome: The council has now approved CA-2 on the consent agenda.

8:30 p.m. CA-6 PILOT for Avalon Housing 1010-1030 Arbordale Street. Briere makes some remarks in favor of this item.

8:31 p.m. Outcome: The council has now approved CA-6 on the consent agenda.

8:31 p.m. CA-8 Authorize contract with OPUS International Consultants Inc. ($58,724) for Nixon/Green/Dhu Varren Intersection Improvement Study. Briere says that Ward 1 and Ward 2 councilmembers are delighted to see this item. She reminds city administrator Steve Powers that she’s grateful for the public participation component of the contract. Kailasapathy says that residents will definitely have a lot to say.

8:33 p.m. Lumm says, “Hear, hear,” to the comments that Briere and Kailasapathy have made. The “intersection” is problematic, she says.

8:34 p.m. Outcome: The council has now approved CA-8 on the consent agenda.

8:34 p.m. B-1 Gift of Life Rezoning. This is final approval of the rezoning of property necessary for an expansion of the Gift of Life Michigan facility on Research Park Drive. The rezoning would change 6.55 acres from O (office district) and RE (research district) to ORL (office/research/limited industrial district). The site plan, which also appears on the Sept. 2 agenda, calls for building a three-story, 40,786-square-foot addition to connect two existing buildings at 3161 and 3169 Research Park Drive, which are owned and occupied by the nonprofit. [For additional background, see Gift of Life Expansion above.]

8:35 p.m. Outcome: The council has voted without discussion to give final approval to the Gift of Life rezoning.

8:35 p.m. B-2 Taxicab Rate Ordinance. The council gave initial approval at its Aug. 18 meeting to a change in the part of the taxicab ordinance that regulates rates. This is the final consideration of that change. The change would establish certain parameters to mitigate possible negative consequences to the setting of a very high maximum allowable taxicab rate, under which taxicab companies might eventually compete. Those parameters include a requirement that a taxicab company commit to a single rate annually and that the rate be advertised in a vehicle with signage in letters one-inch tall. [For additional background, see Taxicab Meter Rates above.]

8:37 p.m. Kunselman says that staff has asked him to add an amendment – to set the date of enactment to be Oct. 14. He says he won’t bore everyone by repeating the sentiments expressed during the public hearing. He reviews how the ordinance would work, saying that it allows for the setting of a very high maximum. It would allow taxicab companies to start to compete with companies like Uber and Lyft that are competing unfairly. Lumm indicates her support for the change to the ordinance.

8:41 p.m. Hieftje says that he served on the taxicab board from November 1999 to November 2000. At that time, nobody heard much from the taxicab board, he notes. Kunselman says that he very rarely uses livery services. He said that the camaraderie among the livery service community should be taken note of. They’ve been around for a long time, he says. He’s known a number of taxicab drivers and talks about the stories they tell. He jokes that someone else on the council might want to serve as the council’s representative starting in November, when the council reassigns its board and commission appointments.

8:41 p.m. Anglin echoes Kunselman’s appreciation of the taxicab industry.

8:42 p.m. Outcome: The council has voted to give final approval to the revision to the taxicab ordinance, regarding the setting of rates.

8:42 p.m. Recess. We’re now in recess.

8:53 p.m. We’re back.

8:53 p.m. C-1 AAHC Platt Road rezoning. This is the initial rezoning approval for the AAHC’s Lower Platt Road project, which will entail demolishing four 5-bedroom units – because of their current placement in the floodplain – and constructing 32 townhomes and a community center. The zoning change would be from R1C (single-family dwelling district) and R2A (two-family dwelling district) to R4B (multi-family dwelling district). [For additional background, see AAHC: 3451 Platt Road Rezoning above.]

8:54 p.m. Lumm asks if planning manager Wendy Rampson is available. She is. Lumm asks about the delay in the site plan at the planning commission. Rampson explains to Lumm that a reconfiguration is being sought for some of the buildings.

8:54 p.m. Outcome: The council has voted to give initial approval to the rezoning of 3451 Platt Road.

8:54 p.m. DC-1 SmartZone satellite agreement. This resolution would move ahead with a 15-year extension of the local development finance authority (LDFA). The LDFA  – branded as one of about a dozen LDFA SmartZones statewide –  is funded through capture of public school operating millages within the geographic areas of the Ann Arbor and Ypsilanti downtown development authority districts. The extension requires an agreement with a satellite LDFA, which the Ann Arbor-Ypsilanti SmartZone is making with Adrian/Tecumseh. [For additional background, see Extension of LDFA above.]

8:58 p.m. Petersen is reviewing the purpose of the resolution. [She's the council's representative to the LDFA board.] Petersen is reading aloud a statement in support of economic development generally. She’s addressing the possible objection that some councilmembers might have, given the mechanism for funding the LDFA – which is through tax increment financing. She’s inviting Eric Jacobsen, board treasurer of the LDFA, to the podium.

9:00 p.m. Jacobsen notes that the recruitment of a satellite LDFA is a state mandate as a condition of the extension. He’s reviewing the reasons for choosing Adrian/Tecumseh over Brighton/Howell. He says that no Ann Arbor tax dollars would be going to Adrian/Tecumseh.

9:03 p.m. Jacobsen notes that this is just the next step in a multi-step process. One of the next steps is to define a new TIF agreement. The LDFA is in the business of economic growth – helping start-up companies, not trying to get other companies to relocate here. It’s an ecosystem for entrepreneurs, he says. Ann Arbor can compete with Palo Alto and Austin, he says. He stresses that Ann Arbor SPARK is the LDFA’s contractor – and that SPARK executes on the directive that LDFA gives.

9:04 p.m. Jacobsen reports that the Ypsilanti city council has approved the agreement earlier tonight. Five other cities are applying for two possible extensions statewide, he says.

9:08 p.m. Kailasapathy notes that the revenue estimates for the 15-year period total about $58 million. She calls that a estimate conservative. She says her understanding is that something like $3-6 million will be spent in Ypsilanti, even though there is no TIF capture in Ypsilanti. CFO Tom Crawford says that there have been informal discussions with the MEDC, and there’s an interest by MEDC in seeing the money spent in Ypsilanti as well. Ann Arbor still comes out ahead, Crawford says. Kailasapathy says $58 million is a lot of money.

9:11 p.m. Kailasapathy is confronting the contention that the ecosystem will “wither away” without the extension. She notes the increase from $200,000 in the early years of the LDFA to $2 million now. She points out that the University of Michigan has a new entrepreneurial effort. Jacobsen says that he expects all the partners will work together.

9:12 p.m. Kailasapathy is now addressing the focus on job creation. How many jobs will be created in the next 15 years? she asks.

9:14 p.m. Crawford points to the draft amended TIF plan. After getting approval from the MEDC, the city would then need to enter into negotiations on the TIF plan with the MEDC. After it get passed, the city would be jumping into that feet first, he says. Kailasapathy calculates that it would be $80,000 per job created.

9:15 p.m. Jacobsen is saying for every job created in the tech field, another five jobs are created. So if it’s $80,000 per job, the return to the community is still very impressive, he says.

9:16 p.m. Lumm says she understands that the final TIF and development plans aren’t required until next year, but she’s happy the council has been provided with draft versions. Jacobsen reiterates that goals on job creation would come after the TIF and development plans are finalized.

9:19 p.m. Briere asks Jacobsen if he were to design the agreement, whether job creation would be a “decent” metric. Yes, he says. She asks him to explain how it’s a good metric. Stephen Rapundalo, an LDFA board member and former Ward 2 city councilmember, takes the podium. Growing businesses is the goal, Rapundalo says, and the jobs come as a result of that.

9:21 p.m. Briere says that it feels good to say that we’ll project a certain number of jobs created and then go back and check to see if that’s what happened. But that “recipe” makes her nervous, she says. How many dollars we spend to get how many jobs is not a good way to think about it, she adds. So she wonders what other metrics can be offered? Rapundalo says that the number of companies that are starting is one measure, as well as the amount of funding that they are receiving. Briere says she wishes the discussion was less focused on the specific number of jobs.

9:28 p.m. Eaton asks if we acknowledge that if the $58 million is captured, that the state does not reimburse the state’s School Aid Fund. Crawford explains that the foundation grant is determined by two components: the local millage funding and the state contribution. Local schools are not harmed through the tax capture, he says. Eaton asks if the state treasurer is making up the fact that the School Aid Fund is not reimbursed. Crawford explains the complexity of the School Aid Fund mechanism. Eaton is reiterating his concern about the impact on school funding. He also talks about the “fuzzy” job creation number. He wonders if the jobs that are created are really attributable to the activities of the LDFA. Crawford compares $4 million to $10 billion that the state contributes, so he says that tax capture has a negligible impact on school funding.

9:30 p.m. Kunselman wants to know what five cities are in the running for the two slots for the 15-year extension. Automation Alley, Grand Rapids and Kalamazoo are named. Kunselman wants to know how unemployment rates in the cities compare. Ann Arbor has the lowest unemployment in the state, Kunselman is told. Now Kunselman wants to know what the options are for a five-year extension, if Ann Arbor is not selected for the 15-year extension.

9:36 p.m. Kailasapathy wants to see some of the taxes eliminated from capture – the school operating millage, because that’s the amount that is distributed from the state treasurer directly back to the school districts. Lumm expresses skepticism that Kailasapathy has characterized that accurately. Crawford confirms that’s right.

9:40 p.m. Briere ventures that the foundation grant level is set, and after that the state looks for where the money comes from to fund that grant level. Crawford is explaining that there are numerous factors. He is arguing that there is some return on the investment of the captured taxes, which generates greater revenue to the state and the local communities.

9:42 p.m. Anglin is now asking about the possibility of imposing hold-harmless requirements.

9:45 p.m. Kunselman says he appreciates all the commentary. He says that the LDFA is showing a lot of care and consideration in its willingness to work with the council – something he can’t say about every authority the council deals with. He still has a problem with the fact that the money is taken from schools. When he hears about the other communities that are in the running, because they have real need for job creation. Ann Arbor already enjoys the benefits of the economic engine that the University of Michigan provides. He wants to see Detroit and Kalamazoo get this benefit. So he won’t support the 15-year extension. He calls this greedy on Ann Arbor’s part. “We are in this as a state,” he says. “If Detroit doesn’t get better, we don’t get better.”

9:46 p.m. Teall agrees with Kunselman that everyone needs this. But Ypsilanti and Adrian/Tecumseh need this too, she says. The stronger this local region is, the stronger the state can become, she says.

9:48 p.m. Petersen is asking for clarification about who is still in the running. Houghton/Marquette already have the extension, she ventures. That’s right, confirms Crawford.

9:50 p.m. Lumm is explaining her reasons for supporting this. She hopes that LDFA and SPARK will listen to the concerns about the need for greater transparency. She remarks on the funding of fiber networks in the next 15 years as a positive. She says she does not believe that the capture of the school taxes has a negative impact on school funding.

9:53 p.m. Anglin says the council has not talked about the five-year option. Why is the 15-year plan preferable? he asks. He points to the rationale for excluding the Washtenaw Intermediate School District’s tax from capture and wonders why that exemption doesn’t apply to the AAPS operating millage. Good schools lead to good jobs, he says. He’s saying that local officials need to tell the state that they need to do better in their overall approach to funding state education.

9:54 p.m. Anglin says he’d like to see a smaller step taken – a five-year extension.

9:59 p.m. Crawford clarifies that the WISD millage is not captured. Briere ventures that the rationale for not capturing WISD’s millage is that WISD doesn’t receive per-pupil reimbursements from the state. Briere also says that the reason the council is considering the 15-year extension first is that Ann Arbor is in competition with other cities – and if Ann Arbor does not win, then the five-year extension is the fall-back position.

9:59 p.m. Anglin says he will vote against this, because he wants the state legislature to do a better job funding schools.

10:00 p.m. Eaton is noting that the 15-year extension goes out 18 years from now, because there’s three years left on the current authorization. To date, the council has only seen “fuzzy” justification for the results, he says. Eaton would support a five-year extension but says that planning for 15 years in the future at this price tag is pretty speculative.

10:02 p.m. Petersen clarifies that the council is not voting on the 15-year extension – as that’s the purview of MEDC and the state treasurer – but rather on the inclusion of Adrian/Tecumseh in the application.

10:02 p.m. Lumm returns to the school funding question.

10:04 p.m. Kunselman is asking what the TIF capture would be in other cities that are competing for the 15-year extension.

10:06 p.m. Anglin is reading aloud the parts of the resolution that address the 15-year extension and asks: “Are we reading the same document?” Hieftje thanks Crawford for all the work he’s done and also the LDFA board. The LDFA has responded to questions from the council, he says. He’s convinced that local schools are not hurt by the LDFA – as the state will fund public schools the way it wants to.

10:08 p.m. Hieftje says that he disputes the idea that job creation would happen without the efforts of the LDFA. Ann Arbor might be the only city in the state of Michigan that can compete with Palo Alto, Hieftje says. So it’s important that Ann Arbor continue to do that. He says that it would be good for some of the LDFA money to be spent in Ypsilanti. This will “lift all boats,” he says.

10:10 p.m. Warpehoski is responding to the question Kunselman asked about the TIF capture of other cities, with data he Googled.

10:13 p.m. Warpehoski notes Pfizer’s departure and says that Ann Arbor’s economy is not bulletproof. He points to SPARK’s bootcamp and a resident who went through it, who has now started a business: 1000 Tools. Warpehoski is glad that kind of innovation is happening, he says. Even if after five years there are no jobs associated with that company, he thinks the impact is positive.

10:14 p.m. Taylor says it’s all pretty simple. There’s an opportunity to obtain a few million dollars for the benefit of Ann Arbor’s economy.

10:15 p.m. Taylor notes that 2,400 were lost when Pfizer left. That was not the only negative impact. Conversely, he says, adding jobs has additional positive impact beyond just those job numbers.

10:18 p.m. Briere says she likes to look at the resolution in front of her but she’d had to look at a lot more than that with this resolution. Briere says that the state does not attach as much importance to infrastructure and schools as it once did. But now it’s willing to invest in economic development, which might indirectly help revenues to fund infrastructure and schools.

10:19 p.m. Briere says there are three things that are important: (1) money will be spent in Ypsilanti; (2) it allows investment in Adrian/Tecumseh; and (3) spending on fiber networks.

10:20 p.m. Anti-Israel activists have arrived with signs. They attended the Ypsilanti city council meeting earlier.

10:20 p.m. Briere will support the resolution.

10:22 p.m. Outcome: The council has voted 7-4 to approve the agreements with Adrian/Tecumseh regarding the extension of the LDFA, over dissent from Kailasapathy, Kunselman, Eaton and Anglin.

10:22 p.m. DC-2 Transportation Network Companies (Uber/Lyft). Direct the city administrator to negotiate operating agreements. This resolution would direct the city administrator to negotiate operating agreements with transportation network companies like Uber and Lyft. This is being considered as an alternative to the ordinance considered, but rejected at the council’s Aug. 18, 2014 meeting, which would have required all drivers for hire to be registered with the city, to have commercial plates on their vehicles, and to maintain insurance commensurate with commercial plates. And the absence of commercial plates on a vehicle that is observed being used for picking up or dropping off passengers would have provided a reason for a traffic stop by Ann Arbor police.

10:24 p.m. Briere says that the resolution was the result of electronic collaboration among herself, Taylor and Petersen. The language had been run past city staff to make sure the principles in the resolution were principles from which the staff could negotiate. Public safety was one of the concerns she’d tried to address. This is an effort to regulate companies like Uber and Lyft, she says.

10:27 p.m. Kunselman wants to know if the insurance referred to is primary or secondary. Briere invites Kunselman to make an amendment to clarify. Kunselman declines, saying he plans to vote against this resolution.

10:30 p.m. Kunselman asks assistant city attorney Abigail Elias if the cease-and-desist order is still in effect. She states that she is not familiar with the order. Kunselman ventures that the direction to the city administrator undercuts the city attorney’s authority.

10:30 p.m. Kunselman reiterates that he won’t support this resolution.

10:32 p.m. Warpehoski asks what the goal is of having a company provide customer satisfaction data. Briere indicates that it’s kind of a proxy for safety data.

10:35 p.m. Warpehoski says his concern with this provision is twofold. Are we holding TNCs to an appropriate standard for public safety? Does that compromise proprietary information? he wonders. He asks that Powers interpret this flexibly so that private information is not compromised.

10:36 p.m. Petersen says that this is data that TNCs already collect. There should be a plan to use it, if the city is going to ask for it, she says. The operating agreement should include a plan to use the data once the city has it.

10:40 p.m. Petersen ventures that once an operating agreement is in place, the cease-and-desist orders would be rescinded. Hieftje appreciates the work that Briere, Taylor and Petersen have put into it and indicates he’ll support it. Warpehoski said that if the city hears complaints about racial profiling or access of helper dogs, that should be referred to relevant boards and commissions. He also says that a blanket ban on drivers with felony convictions is an overly broad requirement to place on TNCs. Someone who is convicted of embezzlement should not be precluded as a driver. So he wants to amend the principles to indicate that only relevant felony convictions would be considered.

10:40 p.m. Lumm wants to know what other cities are doing. Briere says it varies from community to community.

10:45 p.m. Lumm says she doesn’t have enough information to evaluate Warpehoski’s amendment. She wants the city attorney’s office to address these questions. Taylor says this issue can be evaluated when the council is presented with an actual operating agreement. Teall wants to know the difference between UberX and UberBlack. Kunselman is explaining the difference. UberX is the service where drivers use their personal vehicles, he says. Uber’s Michael White has again been invited to the podium. Limo companies offer rides through UberBlack to help fill their downtime, he explains. He is now explaining how UberX works.

10:46 p.m. White says that the insurance provided by Uber for UberX is for primary, commercial insurance.

10:49 p.m. Kunselman questions whether the cease-and-desist order can be rescinded unless the operating agreement results in compliance by UberX with the state limo act. He is worried about councilmembers’ liability for direction to rescind the cease-and-desist order. He says that he’ll vote against it.

10:50 p.m. The rest of the world is moving forward with regulation, Kunselman says. Those councilmembers who are going to “dance around the law, have at it, please!”

10:52 p.m. Lumm wants to know if there will be some kind of limit on the life of the operating agreement. Briere ventures that it will be limited in time.

10:54 p.m. Lumm asks for thoughts on the term of the agreement. Taylor says that he thinks something like two years, with a provision that material changes in state law could result in earlier termination.

10:55 p.m. Lumm asks for an amendment clarifying that inspection would be done by a state licensed mechanic.

10:57 p.m. Eaton is taking Kunselman’s question to heart about the potential conflict between the city attorney’s cease-and-desist order and this resolution. Eaton says that he thinks the city attorney should review this question. Assistant city attorney Abigail Elias notes that all contracts entered into by the city are reviewed by the city attorney’s office.

10:59 p.m. Elias explains to Kunselman her view that a request for a public opinion must be made by the council. Petersen wants to know what will happen to the cease-and-desist order. Hieftje indicates that will be decided in the future. Lumm quips that the cease-and-desist order is not causing Uber and Lyft to cease and desist.

11:01 p.m. Lumm is reading aloud her prepared statement in support of this direction to the city administrator to negotiate an operating agreement. She calls the principles robust and says they provide a good framework.

11:03 p.m. Warpehoski says that he’s forwarded the text of the city’s taxicab ordinance so that Lumm can compare the current resolution on felony convictions to requirements on taxicab drivers.

11:04 p.m. Outcome: The council has voted 8-3 to direct the city administrator to negotiate operating agreements with transportation network companies like Uber and Lyft, over dissent from Kailasapathy, Kunselman and Anglin

11:04 p.m. DC-3 Accept and allocate Michigan Supreme Court State Court Administrative Office Michigan Veterans Treatment Court Program Grant ($173,911). The grant would fund the veterans treatment court.

11:04 p.m. Outcome: The council has voted to accept the Supreme Court grant.

11:04 p.m. DC-4 Community Events Funding Disbursements. The bulk of the community events disbursements were made at the council’s previous meeting. This one is an add-on for Community Works Plus ($1,000) to cover city costs for the African-American Festival Event scheduled on June 6, 2015.

11:04 p.m. Outcome: The council has voted to approve the community events fund disbursements.

11:04 p.m. DC-5 Resolution in Support of World Peace day on Sept. 21, 2014.

11:05 p.m. Anglin says that the only objection he’s heard so far is about insurance, but he ventures that no one would object to the overall intent of the resolution.

11:07 p.m. Warpehoski says this is an important commemoration worldwide. There will also be an event on the Diag, he says, and a demonstration on climate action. He says that he doesn’t see the resolution as a promise that the insurance question will be solved. He’s concerned about the appearance of a precedent.

11:08 p.m. Petersen asks city administrator Steve Powers about how a July 2012 event was handled. Powers doesn’t recall. For two more recent events, the city has required insurance: Dancing in the Streets, and the Barracuda street closure. That’s an existing city requirement, he says.

11:09 p.m. Hieftje appreciates Warpehoski raising the question.

11:09 p.m. Kunselman asks if Pizza in the Park carries insurance. Powers indicates that he’d have to check into that. Hieftje ventures that this issue will be figured out.

11:10 p.m. Outcome: The council has voted unanimously to approve the resolution calling for celebration of World Peace Day on Sept. 21, 2014.

11:10 p.m. DB-1 AAHC North Maple Estates. This vote is on the North Maple Estates site plan, which requires just one council vote. The rezoning required for the AAHC project – a 4.8-acre site at 701 N. Maple Road – has already been given final approval by the city council, at its Aug. 18, 2014 meeting. The zoning was changed from R1C (single-family dwelling district) to R4B (multi-family dwelling district). The site plan calls for demolishing 20 existing single-family homes – the public housing complex known as North Maple Estates – and constructing an eight-building, 42-unit apartment complex with a total of 138 bedrooms. [For additional background, see North Maple Estates above.]

11:10 p.m. Outcome: The council has voted to approve the site plan for North Maple Estates.

11:10 p.m. DB-2 Gift of Life site plan. This is the site plan that required the council to approve rezoning, which was completed earlier in the meeting. [For additional background, see Gift of Life Expansion above.]

11:10 p.m. Outcome: The council has voted to approve the Gift of Life site plan.

11:10 p.m. DB-3 AAHC Funding Request ($729,879) from the affordable housing trust fund. This resolution would transfer $729,879 from the affordable housing trust fund to the Ann Arbor Housing Commission. The fund transfer would support the “West Arbor” portion of the AAHC’s renovation plan. That would leave a $850,920 balance in the trust fund. The trust fund’s current balance stems largely from the council’s decision late last year – on Dec. 16, 2013 – to deposit into the trust fund the net proceeds of the sale of the former Y lot. [For additional background, see Affordable Housing Fund Transfer above.]

11:11 p.m. Outcome: The council has voted to approve the transfer from the affordable housing trust fund to the AAHC.

11:11 p.m. DS-1 Approve purchase order for Ultimate Software Group ($250,000).  This is the city’s payroll software. The amount will cover a transition period as the city moves to NuView, a different software system.

11:11 p.m. Outcome: The council has voted to approve the purchase order with Ultimate Software Group.

11:11 p.m. DS-2 Approve a contract with Northwest Consultants Inc. for the Stadium Boulevard Reconstruction Project ($930,822). This is for the design work for the Stadium Boulevard reconstruction project from Kipke Drive to Hutchins.

11:14 p.m. Teall says this is really exciting. Councilmembers are reviewing the history of this project. Kunselman asks if the city is asking for an easement from the Ann Arbor Golf & Outing Club. Michael Nearing is explaining that there is a robust public participation component of the project. It will be discussed with the public and Ann Arbor Golf & Outing.

11:16 p.m. Nearing tells Lumm the staff will keep the council apprised of the project.

11:16 p.m. Outcome: The council has voted to approve the contract with Northwest Consultants for the Stadium Boulevard design work.

11:16 p.m. Recess. We’re now in recess.

11:28 p.m. We’re back.

11:28 p.m. DS-3 Accept easement for sidewalk at 3947 Research Park Drive from American Honda Motor Co. Inc. This is a standard easement.

11:28 p.m. Outcome: The council has voted to accept the easement.

11:28 p.m. DS-4 Ann Arbor SPARK contract ($75,000). This is the item that the council had tabled back on June 16, 2014 meeting. The first vote will be on the question of taking the item up off the table.

11:29 p.m. Outcome: The council has voted to take the item up off the table.

11:29 p.m. The question of the SPARK contract is now in front of the council.

11:31 p.m. Warpehoski proposes an amendment to include a clause on the scope of the contract to include additional metrics and direction for collaboration with Washtenaw County’s Act 88 committee. [.pdf of Warphehoski's amendment, as forwarded to the city clerk, who then forwarded it to media]

11:33 p.m. Warpehoski is now arguing for the contract.

11:33 p.m. Outcome: The council has approved amendment.

11:36 p.m. Kunselman proposes an amendment to adjust the amount down to $65,000. Teall asks why he’s proposing that number. Kunselman recalls the amount was $50,000 back in 2007. And other general fund needs have arisen, he says – like the need for a warming shelter. But he says that he’ll support the contract, even if the amendment doesn’t succeed.

11:37 p.m. Hieftje says that he wants to see the $10,000 stay in SPARK’s contract because that will make the “pie” bigger. Kunselman cites the Headlee Amendment as a reason that increased property values will not create the money that will be needed.

11:38 p.m. Kailasapathy recalls her question from earlier in the year about the contributions from other municipalities – less than Ann Arbor – so she’d be happy to see it reduced to $50,000.

11:40 p.m. Paul Krutko, CEO of Ann Arbor SPARK, indicates that this information is now available as a FAQ. The next-closest municipality in terms of contribution to SPARK is Pittsfield Township.

11:41 p.m. Kunselman ventures that when the county levies Act 88 money, it’s collecting Ann Arbor taxes, too. Krutko confirms that.

11:43 p.m. Eaton indicates that the county’s Act 88 collection provides $200,000 to SPARK. He asks how much of that is due to Ann Arbor taxpayers. Krutko said he’d have to get back to him about that.

11:43 p.m. Outcome on Kunselman’s amendment: The council has rejected the amendment reducing the amount to $65,000. It received support only from Kailasapathy, Kunselman, Eaton, and Anglin.

11:44 p.m. Lumm says the city of Ann Arbor is getting good return on its investment from the $75,000.

11:46 p.m. Outcome: The council has approved the $75,000 SPARK contract over dissent from Kailasapathy, Eaton, and Anglin

11:46 p.m. Communications from council. Presentation to The Ann Arbor Chronicle.

11:47 p.m. Public comment. There’s no requirement to sign up in advance for this slot for public commentary.

11:49 p.m. Kai Petainen is now addressing the council on SPARK. He says it was sneaky to add the item to the agenda late. He ventures that the state is playing favorites with Ann Arbor’s LDFA. He criticizes the fact that the assistant city attorney Abigail Elias had said she was not familiar with the cease-and-desist order.

11:52 p.m. Ed Vielmetti is addressing the council on several issues, including the topic of copyright notices that the city puts on maps. He says that Legistar makes it difficult to search for things. He says that given the fragile state of the press in this town, it would behoove the council to move toward closed captioning for meetings. The new website for the city is beautiful, he tells the council, but he notes that many of the links are now broken.

11:53 p.m. LuAnne Bullington expresses skepticism that the city administrator will be able to negotiate an operating agreement with Uber and Lyft in the short timeframe specified in the resolution.

11:57 p.m. Changming Fan says that thanks is not enough and action means the most. He is president of TiniLite, which he says is a small company based in Ann Arbor. He says that DDA board member John Splitt had spent two hours meeting with him, so Fan appreciated his support. “He is a good man,” even though he is older and is bald, he quips.

11:59 p.m. Alan Haber says he came back to give his appreciation. He hopes a creative approach can be found to deal with the insurance question for the World Peace Day event. He’s talking about a culture of peace and non-violence for the children of the world.

12:04 a.m. Michael Benson is addressing the councilmembers, thanking them for passing the taxicab ordinance on rates. He questions whether complaints about TNCs should be forwarded to the taxicab board – not the human rights commission or the commission on disability issues. He says he doesn’t appreciate the fact that the council killed the other ordinance proposal at first reading. The taxicab board had held off holding a public hearing, because it was felt that the council would be a better venue for that – which would have taken place at the second reading of the council.

12:04 a.m. Adjournment. We are now adjourned. That is all from the hard benches.

This is the corner spot on the hard benches in the city council chambers where The Chronicle typically sat. It’s somebody else’s seat now!

Guenzel was first appointed to the DDA board in 2010 when mayor John Hieftje chose not to reappoint Jennifer Santi Hall. During her tenure on the DDA board, Hall was on occasion sharply critical of the board as a group – for a lack of commitment to open and transparent governance.

During Guenzel’s first four years of service, board decisions on salary increases for DDA executive director Susan Pollay – in FY 2013 and FY 2014 – were apparently made in a way that violated Michigan’s Open Meetings Act (OMA). The DDA has not produced minutes of any meeting when the board made decisions to increase Pollay’s salary in those years.

Guenzel is likely more familiar with requirements of Michigan’s Open Meetings Act than typical DDA board members are – through his experience as former Washtenaw County administrator. And though retired, Guenzel is also an attorney who maintains his membership in the Michigan Bar Association (P14457).

This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron.

Chris Haslinger (second from right), director of training for the United Association (UA) of plumbers and pipefitters, received a proclamation from the county board of commissioners at the board’s Aug. 6 meeting. They were gathering for a photo to mark the event. From left: Conan Smith, Andy LaBarre, Alicia Ping, Yousef Rabhi, Chris Haslinger, and Verna McDaniel, the county administrator. (Photos by the writer.)

The county has determined that it’s authorized to collect up to 1/10th of a mill for support of indigent veterans, without seeking voter approval. That’s because the state legislation that enables the county to levy this type of tax – the Veterans Relief Fund Act, Public Act 214 of 1899 – predates the state’s Headlee Amendment. The county first began levying this millage in 2008, and collects the tax in December. The current proposal is to levy 1/27th of a mill in December 2014, which is expected to raise about $540,887 in revenues for use in 2015.

The county’s position is that Act 88 can also be levied without voter approval to fund economic development and agricultural activities. This year, the proposal is to levy 0.07 mills in December 2014 – the same rate that was levied in 2013. It’s expected to raise an estimated $1,022,276 in property tax revenues.

Final action on these tax levies is expected at the board’s Sept. 3 meeting.

Also related to Act 88, the board approved allocations of $87,760 in Act 88 revenues that were collected in 2013, to support six projects. Four of the projects are administrated by Ypsilanti-based Growing Hope, with the remaining two projects initiated by the Michigan State University Product Center.

During the Aug. 6 meeting, commissioners approved amendments to both the Act 88 projects resolution and the resolution to levy the tax this year. The amendments directed the county’s corporation counsel to provide a written opinion about how Act 88 revenues can lawfully be used, and how the tax can be lawfully levied without a vote of the people. The amendments were brought forward by Dan Smith (R-District 2).

In other action, the board received a second-quarter budget update, with projections showing a general fund surplus of $211,920 for the year. The board also made mid-year budget adjustments, which included allocating a $3.9 million surplus from 2013 into unearmarked reserves.

Commissioners approved a new policy to guide decisions on tax increment finance (TIF) proposals, and supported revised rules and guidelines from the water resources commissioner. Those revisions relate to procedures and design criteria for stormwater management systems.

A proclamation made during the Aug. 6 meeting honored Herb Ellis Sr., the first black man to be elected to the Washtenaw County board of commissioners. Ellis was elected in 1968 and served until 1982, representing Ann Arbor. During that time he also was the first black chair of the county board. He passed away on July 10, 2014 at the age of 98.

Another resolution recognized the contributions of United Association (UA), a union of plumbers, pipefitters, sprinkler fitters, welders, and heating, ventilation, air conditioning and refrigeration (HVACR) technicians. They’re in this area from Aug. 9-15 for their 61st annual training program, and have announced a new 15-year agreement to continue the program at the Washtenaw Community College.

The Aug. 6 meeting was held one day after the Aug. 5 primary elections. At the start of the meeting, board chair Yousef Rabhi congratulated all primary candidates, and said he looked forward to working with Ruth Ann Jamnick, the winner of the District 5 Democratic primary. He quickly added “pending the general election, but I think…” – a comment that drew laughs. District 5 – which covers August Township and parts of Ypsilanti Township – is heavily Democratic. Jamnick, who prevailed in the four-way Democratic primary, will face Republican Timothy King in the Nov. 4 general election. District 5 was the only race that was contested for the county board, with incumbent Rolland Sizemore Jr. not seeking re-election. Incumbents in all other districts of the nine-member board were unchallenged in the primary.

At the end of the meeting, the board voted to enter into a closed executive session for the purpose of reviewing attorney-client privileged communication. It is one of the exemptions allowed under the Michigan Open Meetings Act.

After about 30 minutes, three commissioners returned to the boardroom – Dan Smith (R-District 2), Alicia Ping (R-District 3) and Conan Smith (D-District 9). They indicated to The Chronicle that they thought the discussion in the closed session had strayed away from the limits imposed by the OMA, and they had left the session because of that. They did not state what the nature of the discussion had been, nor the topic of the session.

Soon after, the remainder of the board emerged from the closed session, and the meeting was adjourned.

Act 88 Grants, Levy

The Aug. 6 agenda included a resolution to approve allocations to six projects, using funds from an Act 88 millage that the county levies each year. Commissioners were also asked to give initial approval to levy that tax.

Tony VanDerworp, the county’s economic development officer.

The county’s position is that Act 88 of 1913 can be levied without voter approval to fund economic development and agricultural activities. This year, the proposal is to levy 0.07 mills in December 2014 – the same rate that was levied in 2013. It’s expected to raise an estimated $1,022,276 in property tax revenues.

In previous years, the resolution setting this millage has outlined how the revenues would be allocated. The largest allocations have gone to the county’s office of community & economic development, and to the nonprofit Ann Arbor SPARK.

However, at its Nov. 6, 2013 meeting, the board adopted a new policy for allocating Act 88 revenues, drafted by Conan Smith (D-District 9). [.pdf of Act 88 policy] The policy included creating an Act 88 advisory committee to make recommendations to the board and prepare an annual report that assesses how Act 88 expenditures have contributed toward progress of goals adopted by the board. The policy allows the committee to distribute up to 10% of annual Act 88 revenues without seeking board approval. The policy also allocates up to 30% of revenues to the county office of community & economic development, which administers Act 88 funding.

This year, the 10% amounts to $91,753. Of that, $3,993 remains unallocated and will stay in the Act 88 fund balance to support future projects. Beyond that, a total of $87,760 in funding was recommended for six projects initiated by two organizations – the Michigan State University Product Center, and Ypsilanti-based Growing Hope [.pdf of staff memo]:

• $10,060 to the MSU Product Center to study the potential for enhanced food processing in Washtenaw County.
• $12,700 to the MSU Product Center to develop “MarketMaker,” a food industry business network and database.
• $20,000 to Growing Hope/Reconsider to run community education events on the Michigan Invests Locally Exemption Act and to study the potential and processes for investing locally in Washtenaw County.
• $13,000 to Growing Hope/Revalue to provide two full-day educational events to assist investors in incorporating local investment offerings into their financial plans.
• $13,000 to Growing Hope to create a study on increasing food assistance sales at farmers markets in Washtenaw County.
• $19,000 to Growing Hope to support the development of an Ypsilanti “MarketPlace,” a year-round farmer’s market, and “MarketHub,” a food distribution center serving underserved communities.

These recommendations were made to the county board by the Act 88 advisory committee. Members are: County commissioners Ronnie Peterson (D-District 6), Alicia Ping (R-District 3) and Conan Smith (D-District 9); Todd Clark, president of United Bank & Trust; and Art Serafinski, chair of the Ypsilanti Convention & Visitors Bureau board. Staff support was provided by the county’s office of community & economic development (OCED), including economic development officer Tony VanDerworp, who attended the Aug. 6 meeting along with OCED director Mary Jo Callan.

Act 88 Grants: Board Discussion

Commissioner Dan Smith (R-District 2) began the discussion by noting that he’s had some long-standing concerns about the legality of how the county is using Act 88 funds. Rather than sorting those issues out that night, he said he’d rather work with the county’s corporation counsel and come to an understanding about it.

He then brought forward an amendment for the projects resolution, requesting that corporation counsel provide the board with a written opinion about the lawful use of the sums raised under Act 88. Smith’s original proposed amendment stated:

FURTHERMORE BE IT RESOLVED that the Washtenaw County Board of Commissioners directs Corporation Counsel to provide an exhaustive written opinion, by December 31, 2014, detailing the lawful uses of sums raised under Act 88 of 1913 (MCLA 46.161), and that this opinion address in similar manner other possible interpretations.

Smith’s motion did not receive support from any other commissioners to bring it forward for discussion, so Alicia Ping (R-District 3) declared it dead due to the lack of support.

Dan Smith (R-District 2).

Conan Smith (D-District 9) and Yousef Rabhi (D-District 8) had been out of the room during this part of the meeting, and returned to their seats just after the motion had been declared dead. Conan Smith said he’d be willing to support Dan Smith’s motion. Alicia Ping (R-District 3) – vice chair of the ways & means committee, who was chairing the meeting in the absence of Ways & Means chair Felicia Brabec (D-District 4) – allowed D. Smith to reintroduce the motion. It was then supported by C. Smith.

C. Smith said there’s been a lot of confusion about Act 88, “and we face it every year.” He and D. Smith had spent a lot of time on the phone talking about the meaning of the act, he said, so “it would be really helpful to have an interpretation that we can use as we go into our granting processes and the distribution of these funds.”

At the Act 88 committee meeting that was held earlier in the day, C. Smith said, they began talking about the grants process for next year, and about how to ensure that the allocations relate specifically to the purposes of the act – “just to make sure we’re on the straight and narrow.” One way to go about it is to leave it up to the committee to determine, though none of the committee members are lawyers, he noted. He thought it would be great to have a statement to rely on. Even if it’s not possible to be definitive – because the law itself is unclear – it would be useful to know what ways the law could be interpreted, he said. C. Smith concluded that he was comfortable with the amendment.

Andy LaBarre (D-District 7) asked Curtis Hedger, the county’s corporation counsel, about what legal effect Hedger’s legal opinion would have – “what would it get us on the hook for down the road, good or bad?”

Curtis Hedger, the county’s corporation counsel.

Hedger replied that like any opinion, it would simply be his advice to the board. As policymakers, ultimately it’s the county commissioners who decide what to do, he noted. If the amendment were approved, he’d give them his best interpretation of how the Act 88 revenues can be spent. Hedger said that asking him to come up with alternative interpretations, as directed by D. Smith’s draft amendment, was a little “touchy-feely.” He added: “That would just be me speculating.”

As far as putting the county on the hook one way or another, Hedger said he didn’t think that was an issue, because it would just be an opinion.

Yousef Rabhi (D-District 8) asked what D. Smith meant by the word “exhaustive.” D. Smith replied that Hedger has already provided the board with opinions on other topics that explain how phrases could be construed in different ways. That’s what D. Smith intended by “exhaustive.” The language in MCLA 46.161 is extremely convoluted, he added, so Hedger could explain how parsing the grammar in different ways would yield different interpretations. Then it’s up to the board to decide which interpretation to use, he said.

Rabhi said he thought an opinion was simply an opinion – not a description of other opinions. He wasn’t sure it was an appropriate approach to ask for alternative interpretations. Rabhi would support asking Hedger to give the board his interpretation of the law, but it wasn’t Hedger’s job to do more than that.

C. Smith said he’d asked D. Smith to include that language in the amendment. He noted that the very first sentence of Act 88 has a semicolon in it. That sentence states:

The boards of supervisors of the several counties may levy a special tax on the taxable property within their respective counties for the purpose of creating a fund; or appropriate out of the general fund an amount to be used for advertising agricultural or industrial advantages of the state or county or any part of the state, or for collecting, preparing or maintaining an exhibition of the products and industries of the county at any domestic or foreign exposition, for the purpose of encouraging immigration and increasing the trade in the products of Michigan, or advertising the state and any portion thereof for tourists and resorters.

As an English major, C. Smith said, his interpretation of a semicolon is to stop one thought, and append another thought to it – interrelated but separate. So for the Act 88 language, he said, there might be two legitimate interpretations of the function of that semicolon. It’s important for the board, which will be allocating the Act 88 dollars, “to have some degree of comfort that we’re doing it within the parameters of legality, even if those aren’t 100% clear,” he said.

Conan Smith (D-District 9).

The courts ultimately are responsible for interpreting the law, C. Smith said. If the board asked for a legal opinion and someone then sued the county over Act 88, the board would have a document that showed the legal underpinnings for their decision – and “I would feel more comfortable with the decisions that we are making.”

Act 88 is a mess, C. Smith continued – it’s “ancient” legislation that’s been amended over the decades, making it even more convoluted. “Just knowing that we’re walking down a path that is legal – even if we’re not sure that that is the absolute right path – I think would be helpful for us on the committee to make an allocation of the funds,” he said. “What I definitely don’t want to do is to walk down a path that’s not legal.”

D. Smith said he wants to make sure there’s a very full discussion of the law’s various nuances. At the end of the day, Hedger will provide his best interpretation of the law, he added. But as part of that guidance, it’s prudent to explore other ways that it could be interpreted. It should answer as many questions as can be answered, he said, “so that this issue is put to rest once and for all.”

Rabhi said it seemed like D. Smith was trying to do Hedger’s job. He thought they should ask the person that they hired to be the county’s attorney for his opinion. If the board wants a white paper on Act 88, they should ask for that – but maybe not from Hedger, he said. Rabhi asked Hedger what he thought.

Hedger replied that after this discussion, he had a better feel for what the amendment is asking for. He said D. Smith was right – when Hedger writes legal opinions for the board, he often describes other interpretations that he doesn’t necessarily agree with. He didn’t have a problem with this approach.

Alicia Ping (R-District 3) didn’t think the amendment accurately reflected what the board wanted from Hedger. C. Smith said he’d be comfortable striking the last clause: “…and that this opinion address in similar manner other possible interpretations.” D. Smith agreed to that change.

Rabhi thanked the Smiths, saying that striking the clause would allow him to support the amendment.

The revised amendment was as follows: [strike-through reflects a clause that was struck during deliberations]:

FURTHERMORE BE IT RESOLVED that the Washtenaw County Board of Commissioners directs Corporation Counsel to provide an exhaustive written opinion, by December 31, 2014, detailing the lawful uses of sums raised under Act 88 of 1913 (MCLA 46.161), and that this opinion address in similar manner other possible interpretations.

Outcome on the amendment, as revised: It passed unanimously on a voice vote.

Outcome on main resolution, as amended: The board unanimously passed the resolution allocating Act 88 funds, without additional discussion.

After the vote, Conan Smith commented that this was the first round of competitive Act 88 grants, and the projects are really interesting. “I think they’ll be very impactful on the community,” he said. He was especially excited about the grant to Growing Hope to study how to increase the use of food stamps at the Ypsilanti farmers market, so that people who use food stamps can get better access to fresh fruit and vegetables. He encouraged everyone in the community to take a close look at these projects.

Rolland Sizemore Jr. (D-District 5) expressed some frustration about the amount of money in general that’s being spent on studies, rather than directly on projects. He thought that the Ypsilanti farmers market project should be expanded to other parts of the county.

Act 88 Levy: Board Discussion

Later in the meeting, the board was asked to consider a separate resolution that would authorize the county to levy the Act 88 tax this year.

Dan Smith brought forward a similar amendment, aimed at getting a firm understanding of the Act 88 millage:

FURTHERMORE BE IT RESOLVED that the Washtenaw County Board of Commissioners directs Corporation Counsel to provide an exhaustive written opinion, by October 1, 2014, detailing the exact mechanism under which Act 88 of 1913 taxes may be levied in excess of Article IX, Section 6 constitutional limits without a vote of the people.

There was no discussion on the amendment.

Outcome on the amendment: It passed unanimously on a voice vote.

Outcome on the main resolution, as amended: It passed unanimously.

2nd Quarter Budget Update

The administration gave an update on the county’s second-quarter financial status, for the period from Jan. 1 through June 30, 2014. County administrator Verna McDaniel introduced the update by calling it “good news.” [.pdf of presentation]

Finance analyst Tina Gavalier.

Tina Gavalier of the county’s finance staff told commissioners that property tax revenue is showing a projected surplus of $720,000 compared to what was budgeted for 2014. In addition, the sheriff’s office is projecting a roughly $200,000 surplus due to federal, state and local reimbursements for prisoner boardings. In the category of general intergovernmental revenues, there’s now a projected surplus of $370,000 due to state liquor tax funds and local reimbursements for animal control.

Several other areas are showing a revenue shortfall, however, compared to the amount budgeted. Those units include the clerk/register of deeds ($350,000 shortfall), district court ($209,000 shortfall), trial court ($73,000 shortfall) and interest income ($71,000 shortfall).

Gavalier noted that the trial court is still determining the impact of a Michigan Supreme Court decision prohibiting the assessment of court costs on criminal cases. The court can collect on anything that was assessed prior to the court ruling, she explained, but if no legislative action is taken, courts could see a substantial decrease in future revenues.

Overall, the net projected revenues for the general fund show a revenue surplus of $656,991.

On the expenditure side, the sheriff’s office has a projected over-expenditure of $673,000 related to overtime costs, inmate food and medical services, and law enforcement operating supplies. Gavalier said the sheriff and his staff are actively working to reduce that over-expenditure by year’s end. All other departments are reporting a combined operating surplus of $135,000.

In other expenditure categories, the line item for tax appeals and refunds is projected to have a surplus of about $239,000. The line item of central charges has a projected surplus of $93,000 due to tax refund overpayments being less than budgeted – partially offset by projected over-expenditures from the homelessness initiative that the board approved earlier this year. Appropriations are assumed to be on budget at $16.2 million. The expenditure projections also took into account structural and non-structural budget adjustments that have been made so far in 2014, totaling $560,000.

The net projected over-expenditures for the general fund are $445,070. So the projected general fund surplus for 2014 is $211,920.

Washtenaw County general fund projections for 2014.

If that $211,920 is added to the fund balance at year’s end, Gavalier said, then the fund balance would be 20.3% of the general fund expenditures.

Most departments that aren’t part of the general fund are on budget or are projecting a surplus, Gavalier reported. Two areas – veterans relief and risk management – are using their fund balances as planned, she said.

Some revenue issues to monitor include: (1) state legislation that might repeal or reform Act 88, (2) revenues for the clerk/register of deeds office, (3) court revenues, (4) personal property tax reform, and (5) payments from state revenue-sharing. Expenditure items to monitor include rising costs in the child care fund due to increased caseloads and placements, the sheriff’s office costs, and union contract negotiations.

Gavalier noted that the board will receive a third-quarter update in November, with a budget reaffirmation process taking place this fall for the 2015-2017 budget.

2nd Quarter Budget Update: Board Discussion

Responding to a query from Yousef Rabhi (D-District 8), Tina Gavalier explained that the projected revenue shortfall of $350,000 in the clerk/register of deeds office was from lower-than-projected fees from document-processing – such as real estate transfers and marriage licenses. It’s lower than it’s been in the past several years. Rabhi quipped: “Buy houses and get married, everybody!”

County administrator Verna McDaniel.

Regarding the courts, Rabhi asked if there’s legislation pending to address the impact of the recent state Supreme Court ruling. He wondered if the county’s lobbyist needed to work on something in Lansing. [Washtenaw County and several other local municipalities pay Governmental Consultant Services Inc. to act as a lobbyist for their interests at the state level.]

County administrator Verna McDaniel said she hadn’t taken any action on this issue, but would be talking with the court administrators about it. She pointed out that the courts operate under a lump sum budget.

Rabhi said it might be worthwhile to see what other counties are facing, and to see if there’s potential to work across county lines. McDaniel said she’d get more information about that.

Dan Smith (R-District 2) wondered when the new GASB regulations take effect. He was concerned when the administration talks about a “surplus,” knowing that the county actually has about a huge amount of unfunded liability.

By way of background, Smith was referring to more than $200 million in unfunded liabilities from the retiree health care and pension funds. The new accounting changes – required by the Governmental Accounting Standards Board (GASB) – take effect in phases. In 2014, the main change will be more disclosures in notes to the financial statements, required by GASB 67. But in 2015, when GASB 68 is implemented, the county’s unfunded actuarial accrued pension liability will be booked as a liability in the county’s statement of net position, which will be a significant change, according to the county’s finance staff. New standards for health care liabilities will be addressed in the future by GASB, and the county’s accounting staff is working on that.

McDaniel replied that it’s an issue that staff will “continue to dialogue with this board about,” to get direction in terms of priorities and any additional actuarial payments that might be required.

Alicia Ping (R-District 3) asked about the shortfall for the courts, saying she was concerned about it. She wondered how that will impact the memorandum of understanding with the county, regarding the lump sum budget under which the courts operate. McDaniel noted that in the past, the courts have been able to work within their lump sum budget. But this year, the impact of the Supreme Court ruling will be substantial, she said. So the courts will have to come up with a plan about how they’ll handle it. The impact could be as much as a half million dollars, McDaniel said. “We’ll work with them, and we’ll have more information as this develops.”

Ping also asked for a breakdown in line-item costs that are contributing to the over-expenditures in the sheriff’s office budget. McDaniel said that the sheriff, Jerry Clayton, felt confident that expenses will even out over the remainder of 2014, based on actions that his office is taking.

Outcome: This was not a voting item.

2014 Budget Adjustments

Commissioners were asked to give final approval to mid-year budget adjustments, including allocating this year’s higher-than-expected property tax revenues and a $3.9 million surplus from 2013. Initial approval had been given at the board’s July 9 meeting.

The adjustments increased the general fund budget’s expenses and revenues by $720,486 for 2014, $733,233 for 2015, $745,980 for 2016 and $758,727 for 2017. The county operates on a four-year budget, with the fiscal year matching the calendar year.

The adjustments were recommended by county administrator Verna McDaniel, who requested setting aside the $3,920,818 surplus from 2013 in unearmarked reserves, rather than spending it. The projected year-end 2014 fund balance is $20,638,675. The county board had previously approved a goal of holding a fund balance equal to 20% of its general fund budget. For 2014, the general fund budget is $103,127,202. [.pdf of staff memo and mid-year budget resolution]

In addition, the following mid-year budget adjustments were made to the general fund:

• Structural adjustments resulting in a $494,677 increase in expenditures for: (1) providing employee health care coverage for autism; (2) a consultant to help with the board’s budget priority work, (3) a “local government initiatives” intern; (4) reinstatement of two full-time equivalent positions in the sheriff’s office; and (5) salary adjustments for non-union employees.
• Non-structural, one-time, adjustments that increased expenditures by $65,000 for homelessness initiatives.

The administration recommended that the remaining $160,809 be held as an undesignated allocation until budget projections improve as new information becomes available. Finance staff gave a second-quarter budget update on Aug. 6, projecting that the county will have a $211,920 general fund surplus at the end of 2014. [.pdf of budget presentation]

From left: County prosecuting attorney Brian Mackie and commissioner Dan Smith (R-District 2).

When an initial vote was taken on July 9, commissioners Dan Smith (R-District 2) and Conan Smith (D-District 9) had voted against it. On Aug. 6, both raised the same concerns they’ve voiced earlier.

Conan Smith said he hoped that when the county achieves its goal of a fund balance equal to 20% of the general fund budget, then any extra surplus would be “put to work in the community.” With its vote that night, the board will have achieved fiscal stability, he said, and he looked forward to achieving community stability as well.

Dan Smith stressed the importance of setting a budget and sticking to it, with adjustments coming only during the annual budget affirmation process – rather than throughout the year. There are other things to focus on, he said, including policy issues.

Yousef Rabhi (D-District 8) said he agreed with C. Smith. The board has done a lot to make sure the county’s financial security is in place. Looking forward, there are some investments that the county can make in the community. He thanked C. Smith for advocating on that issue.

Outcome: The budget adjustments passed unanimously.

Veterans Relief Tax

Commissioners were asked to give initial approval to levy a tax to support services for indigent veterans.

The county has determined that it is authorized to collect up to 1/10th of a mill without seeking voter approval. That’s because the state legislation that enables the county to levy this type of tax – the Veterans Relief Fund Act, Public Act 214 of 1899 – predates the state’s Headlee Amendment. The county first began levying this millage in 2008, and collects the tax in December. Services are administered through the county’s department of veterans affairs.

Since 2008, the county board has slightly increased the rate that it levies each year. In 2012, the rate was 0.0286 mills – or 1/35th of a mill. It was raised to a rate of 1/30th of a mill in December 2013, to fund services in 2014.

The current proposal is to levy 1/27th of a mill in December 2014, which is expected to raise about $540,887 in revenues for use in 2015.

There was no discussion of this item at the board’s Aug. 6 meeting.

Outcome: The board unanimously gave initial approval to levy this millage. A final vote is expected at the board’s Sept. 3 meeting.

New TIF Policy

Commissioners were asked to give initial approval a policy to guide the county’s participation in tax increment financing (TIF) authorities.

Commissioner Andy LaBarre (D-District 7) and county administrator Verna McDaniel.

At its Oct. 16, 2013 meeting, the board had passed a resolution directing county administrator Verna McDaniel to develop a policy for evaluating future TIF proposals. The resolution stated that the policy would be developed with input from staff of the office of community and economic development, the equalization department, and the brownfield redevelopment authority. The Oct. 16 resolution was passed over dissent by the board’s two Republican commissioners, Dan Smith (R-District 2) and Alicia Ping (R-District 3).

Subsequently, an advisory committee was formed to help develop the policy. Members were: county commissioner Andy LaBarre (D-District 7); county treasurer Catherine McClary; corporation counsel Curtis Hedger; and finance director Kelly Belknap.

The two-page policy brought forward by McDaniel lays out a process by which the board would consider any proposed or amended Corridor Improvement Authority (CIA) or Downtown Development Authority (DDA) where the capture of county tax revenues is requested. [.pdf of TIF policy]

New TIF Policy: Board Discussion

Dan Smith (R-District 2) referred to this section of the policy:

III. Tax Increment Financing Participation Process

Any local unit of government proposing a new or amended Corridor Improvement Authority or Downtown Development Authority, or other statutory entity empowered to capture, incremental County tax revenues are requested, shall adhere to the following review process, in addition to those specified by the appropriate state enabling legislation:

…

D. Any County participation in these Tax Increment Financing Districts shall be through the execution of a participation agreement. A participation agreement shall include, at a minimum, extent of County participation including estimated amount (consideration of dollar for dollar and percentage estimates), duration, and methods, if any, of termination and reporting requirements.

IV. County Opt Out Authorization

In the event a requesting entity fails to adhere to this process, the Washtenaw County Board of Commissioners authorize the County Administrator to take the appropriate steps to opt out of participation in the proposed tax increment financing plan.

It appeared to D. Smith that no additional board approval would be required, in order for the county administrator to begin opt-out proceedings if the requesting entity doesn’t follow the agreed-upon process. He didn’t object to that approach, but wanted to make certain that it’s what is intended.

Andy LaBarre (D-District 7) responded, saying that D. Smith’s interpretation was correct. Corporation counsel Curtis Hedger said the committee gave that authorization because of a potential timing issue. There are times when deadlines related to the TIF process would occur before the next board meeting, “so it gives the administrator some flexibility,” he said.

LaBarre said the policy is an attempt to give the board as broad a framework as possible. This is a tool the board could use, he said, but he also urged the board to look at each individual proposal in its set-up and its context. There are so many different types of tax-capture mechanisms for many different purposes, so he wanted to give that caveat. LaBarre praised the county staff for their work in developing this policy, saying “I simply went along for the ride.

Outcome: The TIF policy passed unanimously on an initial vote. A final vote is expected at the board’s next meeting, on Sept. 3.

Appointments

Yousef Rabhi (D-District 8), the board’s chair, made several nominations for appointments.

• Food Policy Council: Khadije Wallace to the slot for a citizen representative, for a term ending Dec. 31, 2014.
• River Raisin Watershed Council: Evan Pratt, the county’s water resources commissioner, as the Washtenaw County representative; and Harry Sheehan, environmental manager with the water resources commissioner’s office, as the county alternate. Those terms both end on Dec. 31, 2014.
• 2014 Remonumentation and Land Survey Peer Review Group: Thomas Sutherland, John Jekabson, Kevin Gingras, Patrick Hastings and Kenneth Coleman.

Outcome: All appointments were confirmed.

Water Resources: Revised Rules & Guidelines

The board’s Aug. 6 agenda included an item to support new rules and guidelines proposed by the county’s water resources commissioner, Evan Pratt. The changes relate to procedures and design criteria for stormwater management systems. [.pdf of revised rules and guidelines]

The previous rules and guidelines had been adopted in 2000. According to a staff memo, the new changes reflect updated requirements of the county’s National Pollutant Discharge Elimination System (NPDES) Phase II stormwater discharge permit, which is administered by the Michigan Department of Environmental Quality.

Pratt attended the Aug. 6 meeting, but there were no questions from commissioners and no discussion on this item.

Outcome: The resolution supporting the revised rules and guidelines was approved.

Communications & Commentary

During the Aug. 6 meeting there were multiple opportunities for communications from the administration and commissioners, as well as public commentary. In addition to issues reported earlier in this article, here are some other highlights.

Communications & Commentary: Proclamations – UA

At its July 9, 2014 meeting, the board had passed a proclamation welcoming the United Association (UA), a union of plumbers, pipefitters, sprinkler fitters, welders, and heating, ventilation, air conditioning and refrigeration (HVACR) technicians. They’ll be in this area from Aug. 9-15 for their 61st annual training program. For the past 25 years, that program has been held in Washtenaw County on the Washtenaw Community College campus, bringing about 2,400 participants to the county with an estimated economic impact of $5 million. [.pdf of UA proclamation]

Chris Haslinger, director of training for the United Association (UA) of plumbers and pipefitters.

At the Aug. 6 meeting, Chris Haslinger, director of training for the UA, was on hand to receive the proclamation. He thanked the board. He described the growth of the training program over the years, pointing out that this year there will be 450 first-time attendees. He noted that the community here welcomes the UA members, and that the union receives a great deal of assistance from the Ann Arbor and Ypsilanti convention and visitors bureaus. Both presidents of those bureaus – Mary Kerr and Debbie Locke Daniel – also attended the county board’s Aug. 6 meeting.

Halsinger reported that the UA had reached an agreement with WCC to extend the program here through 2028. There are eight people based in the Ann Arbor area who work year-round on UA training programs, he said. Eight people might not seem like a lot, he added, but it’s important that they live here and contribute to the community.

He described some other initiatives undertaken with WCC, and concluded by thanking the county, the city of Ann Arbor, Local 190 and Local 704. “We look forward to a future in the Ann Arbor community,” he said.

Board chair Yousef Rabhi (D-District 8) responded by thanking Halsinger and sharing an anecdote. He said he was on a conference call with U.S. vice president Joe Biden, discussing the future of the country’s talent and job resources. Rabhi said he asked Biden a question and mentioned the partnership between WCC, the county, the UA and other communities as an example of the direction that the country should be heading. He thanked Haslinger for UA’s investment in this community.

Communications & Commentary: Proclamations – Herb Ellis Sr.

Yousef Rabhi (D-District 8) read a proclamation honoring Herb Ellis Sr., the first black man to be elected to the Washtenaw County board of commissioners. Ellis was elected in 1968 and served until 1982, representing Ann Arbor. During that time he also was the first black chair of the county board. [.pdf of proclamation]

Jeff Ellis.

Ellis had passed away on July 10, 2014 at the age of 98.

Jeff Ellis, one of Ellis’ sons, was on hand to accept the proclamation. His father’s life was dedicated to serving others, either through education, civic organizations or as an elected official, he said. In particular, Ellis had been interested in public health issues, promoting educational opportunities for young people, and improving the lives of senior citizens.

Herb Ellis was a pioneer in the community, as one of the first black teachers in the Ann Arbor public school system, and the first person of color to be elected to the county board of commissioners. He was recognized as a consensus-builder, Jeff Ellis said. “He believed in leading by example, and did his best to be a positive role model in all aspects of his life. By most accounts, he was successful in that effort.”

Communications & Commentary: Proclamations – Donald Shelton

The board had a third proclamation – for 22nd circuit court judge Donald Shelton, who is retiring this year. [.pdf of proclamation for Shelton] Shelton was out of town and did not attend the Aug. 6 meeting. Yousef Rabhi reported that the proclamation would be given to Shelton at a retirement party later this year.

Communications & Commentary: Public Commentary

Thomas Partridge introduced himself as a recent candidate for political office in the state legislature and Ann Arbor city council. He called on the county to redouble its efforts after the Aug. 5 primary election to give priority to eliminating homelessness, generating adequate affordable housing, true countywide affordable and accessible public transportation, affordable health care and education. He supported Act 88 funding but didn’t think the grants reflected these priorities. Partridge advocated for support of Democrat Mark Schauer in his bid for governor, and for a progressive Democratic platform to address the needs of the most vulnerable residents. The state needs a balanced budget, but not one that’s balanced on the backs of those who are least able to fend for themselves in this economy.

Executive Session

At the end of the meeting, the board voted unanimously to go into executive session for the purpose of reviewing attorney-client privileged communication. It is one of the exemptions allowed under the Michigan Open Meetings Act. Commissioners retreated to a room in the administration’s offices, along with several staff members and others who had been invited into the closed session.

After about 30 minutes, three commissioners returned to the boardroom – Dan Smith (R-District 2), Alicia Ping (R-District 3) and Conan Smith (D-District 9). They indicated to The Chronicle that they thought the discussion in the closed session had strayed away from the limits imposed by the OMA, and they had left the session because of that. They did not state what the nature of the discussion had been, nor the topic of the session.

Soon after, the remainder of the board emerged from the closed session, and the meeting was adjourned.

Present: Andy LaBarre, Kent Martinez-Kratz, Alicia Ping, Yousef Rabhi, Rolland Sizemore Jr., Conan Smith, Dan Smith.

Absent: Felicia Brabec, Ronnie Peterson.

Next regular board meeting: Wednesday, Sept. 3, 2014 at 6:30 p.m. at the county administration building, 220 N. Main St. in Ann Arbor. The ways & means committee meets first, followed immediately by the regular board meeting. [Check Chronicle event listings to confirm date.] (Though the agenda states that the regular board meeting begins at 6:45 p.m., it usually starts much later – times vary depending on what’s on the agenda.) Public commentary is held at the beginning of each meeting, and no advance sign-up is required.

From left: former Congressman Wes Vivian talks with Washtenaw County board chair Yousef Rabhi (D-District 8) before the board’s July 9 meeting. Vivian is advocating for the board to put a proposal on the Nov. 4, 2014 ballot regarding the U.S. Supreme Court’s Citizens United ruling. (Photos by the writer.)

Linda Edwards-Brown, the county’s juvenile division administrator, told commissioners that there’s been an increase in young men “terrorizing” their communities. The sheriff’s office and court had started working together several months ago after they began observing an increase in gang-type activity, she said, including home invasions, firearm larceny, and assaulting police officers. They’d been hopeful that they could stem the tide of violence, she added, but it had escalated with a death in Ypsilanti earlier this summer.

So the sheriff’s office and court officials have reached consensus to remove some of these young men from the community and put them into residential facilities in other parts of the state, Edwards-Brown said. The juvenile division of the Washtenaw County trial court will place at least six youths in residential facilities this month, in addition to six youths who are currently in residential placements. According to a staff memo, residential placements are costly, with a typical length of stay at nine to twelve months.

At the July 9 meeting, commissioners and staff expressed the need to continue working on this issue as a community-wide effort.

In other action, commissioners were asked to pass a resolution making mid-year budget adjustments and allocating this year’s higher-than-expected property tax revenues, as well as putting the $3.9 million surplus from 2013 into unearmarked reserves.

The adjustments passed on a 6-2 vote, with Dan Smith (R-District 2) and Conan Smith (D-District 9) dissenting. Andy LaBarre (D-District 7) was absent. Dan Smith objected to spending more than was budgeted and making budget changes outside of the annual budget affirmation process, which takes place later this year. Conan Smith didn’t state his reason for voting against it on July 9, though in the past he has advocated for spending more of the surplus, rather than setting it aside in the fund balance.

Commissioners also authorized putting a proposal on the Nov. 4, 2014 ballot to renew a 10-year, 0.2353-mill countywide parks and recreation operations tax. They held public hearings related to other millages that the county plans to levy later this year: (1) for support of indigent veterans and their families; and (2) to fund economic development and agricultural activities, under Act 88. The hearings drew one speaker – Thomas Partridge.

Related to the health department, the board created a new board of health to help oversee public health services in the county. A state official was on hand to talk about the accreditation process that the Washtenaw County public health department completed earlier this year.

Commissioners voted to accept the recommendations of a task force that’s been working on a funding strategy to help end homelessness, and to sunset that task force. The board also made appointments to a new committee that’s charged with exploring funding options for road repair.

Several issues were raised during public commentary. Former Congressman Wes Vivian urged the county board to place a proposal on the Nov. 4, 2014 ballot enabling Washtenaw County voters to ask the state to support a constitutional amendment to overturn the Citizens United decision. That U.S. Supreme Court ruling has resulted in corporations “sloshing big money into our elections at all levels,” Vivian said.

Also during the meeting, commissioners honored Arthur Williams, who is retiring as principal of Huron High School in Ann Arbor after 19 years in that job. The board also passed proclamations welcoming the United Association (UA) of plumbers and pipefitters and the Ironworkers International. Both unions hold training programs in Washtenaw County each summer.

At the beginning of the meeting, Rabhi asked for a moment of silence in memory of Rowan David LaBarre, the newborn son of commissioner Andy LaBarre and his wife Megan LaBarre. Rowan David had passed away earlier in the week. “We all pray and hold Rowan in the light of our prayers and thoughts,” Rabhi said.

Funding to Address Juvenile Crime

The July 9 agenda included a resolution authorizing the use of $642,707 from the Child Care Fund balance to pay for a range of services overseen by the county’s dept. of human services. The use of $642,707 will drop the Child Care Fund balance from $1,041,882 to $399,175. [.pdf of staff memo]

Linda Edwards-Brown, the county’s juvenile division administrator.

The resolution authorized an amendment to the Child Care Fund (CCF) budget for the current fiscal year. The request came from the Washtenaw County Trial Court’s juvenile division and the county’s department of human services – the entities that oversee programs supported by the CCF.

According to a staff memo, the CCF is a collaboration between the state and county circuit courts to support programs that serve neglected, abused and delinquent youth in Michigan. The state reimburses counties for 50% of all eligible CCF expenses.

The specific request on July 9 was for an increase in the CCF budget from $1,872,928 to $2,500,000 for the 2014 county fiscal year, which runs from Jan. 1 through Dec. 31 – an increase of $642,707.

Expenditures for the children’s services department are expected to be $262,341 over the current budget during the county fiscal year. Those expenses relate to use of part-time temporary staff as well as overtime, according to the staff memo, “to ensure that Children’s Services remains in compliance with state licensing requirements for juvenile detention facilities.”

In addition, the Trial Court’s juvenile division planned to put at least six youths in out-of-home placements in July. Another six youths are already placed. The typical length of such placements is nine to twelve months at an average $260 per day, per youth. That cost can range from a low of $150 to a high of $522. The total cost for the remainder of the county fiscal year is projected to be $396,000.

In addition, detention beds in the county’s children’s services facility have been occupied at or near capacity for all of 2014, which has resulted in the need for part-time temporary staff as well as overtime pay.

Funding to Address Juvenile Crime: Board Discussion

Ronnie Peterson (D-District 6) asked about the timing of this request. Linda Edwards-Brown, the county’s juvenile division administrator, clarified that the request for funding is for the county’s fiscal year, through Dec. 31. However, the Child Care Fund (CCF) budget is aligned with the state’s fiscal year, from Oct. 1 through Sept. 30. Edwards-Brown noted that the budget amendment would run only through Dec. 31, 2014. “We’ll be back here in a few months to look at the 2014-2015 Child Care Fund budget,” she said.

Ronnie Peterson (D-District 6).

Peterson expressed interest in seeing long-term budget projections. It’s not about the money, he added, but it’s important to find out what’s happening in the juvenile justice system. The county needs to know what its financial obligations are to address some of the issues that are occurring in the community, which are causing youth to end up in detention facilities.

Edwards-Brown told commissioners that a group of young men are “terrorizing” their communities. They are carrying weapons, displaying weapons on social media, committing home invasions, and stealing guns.

Several months ago, the sheriff’s office and the court started working together as they saw the beginning of what seemed to be gang-type activity, Edwards-Brown said. “We were hopeful that we would be able, by working together, to stem this tide of violence that we’re seeing in the community. We were unable to do that.”

Last month, a young man was murdered in Ypsilanti, Edwards-Brown said. It’s a problem that the sheriff’s office had predicted, she added. Now, collectively, the court and sheriff’s staff have decided they need to remove the young men from the community, she said. “So that’s the answer as to why we’re here tonight asking for more money for residential placements.”

The trial court has made a concerted effort over the last several years to keep youth in the community and work with them in their homes, Edwards-Brown said. But at this point, public safety is an issue, as well as the safety of these young men, she said. They can’t be “safely maintained” in the community, and need to be taken outside their homes, she said.

Derrick Jackson, director of community engagement for the sheriff’s office, reported that last summer, deputies started to notice an increase in juvenile violence and an escalation in crimes that juveniles were committing. He noted that in the early 1990s, there was gang activity in the area and a lot of those gang members were taken off the streets for 10-15 years. The question since then has been how can the community change so that when those men got back out, “things won’t go back to the way they were,” he said.

Derrick Jackson, director of community engagement for the Washtenaw County sheriff’s office.

Fortunately, those men didn’t go back to criminal behavior, Jackson added, but some of their children, younger siblings and other relatives are now in their teens, and are starting to get involved in gang-type activity. The good thing about having a conversation now is that it’s at an early stage, he said, “and we’re hoping we can prevent some of this.”

They’re not saying that the answer is to lock up every kid who’s associated with these things, Jackson stressed. But this is one of the answers for a small percentage of kids who are very violent, carrying weapons, doing drugs and who ultimately committed homicide.

A large task force is coming together to talk about a “holistic, wrap-around response to what we’re seeing in the community,” Jackson said, because it’s such a significant issue. He noted that about 55 community leaders – including some county commissioners – had met recently to talk about the juvenile criminal justice system, and everyone had seen an increase in problems. When he talks to high school and middle school teachers in the eastern part of the county, they all say the same thing – they see a difference in how young people are acting.

Jackson said that when you see the train coming down the track, you can prepare to get run over or you can figure out a way to stop it. People in the county are working to stop the train, he said.

Lisa Greco, the county’s youth center director, noted that juvenile detention is where kids are placed when law enforcement removes them from the community. They’re held in secure custody until decisions can be made about what to do next. The juvenile detention center has seen more than a 25% increase in population and days of care, Greco said. Managing the dynamics in the community is challenging, she said, and managing those kids in the confined space of juvenile detention is also a challenge. “I think we’ve been up to it, and have taken good care of the kids,” she said.

Rolland Sizemore Jr. (D-District 5).

The community is at a crossroads, Greco added. There’s a need for an immediate response, as well as a call to action to re-examine the juvenile justice system in Washtenaw County in its entirety. “We need alternatives to juvenile detention,” she said. There needs to be early identification, intervention and assessment for kids who are struggling in the community.

Rolland Sizemore Jr. (D-District 5) expressed concern about the kids who’ll be sent to places outside of Washtenaw County. “What happens when they get done and come back here?”

Edwards-Brown replied that none of the young men will be sent out of state. They’ll be sent to Maxey Boys Training School in Whitmore Lake, Turning Point Youth Center in St. Johns, and other facilities within Michigan. “We want them to have the opportunity for their families to visit them and to participate in family therapy while they’re in these placements,” she said.

These young men will eventually be returning home in nine to 12 months, Edwards-Brown noted. So it’s important to bring change to their homes, so that they won’t be returning to the same situation, she said.

Sizemore advocated for having an individual or entity examine all the programs in the county that help youth. He thought there were duplicative services, and the services should be better coordinated. He also hoped the school districts would get involved, and that parents would be supported. He praised Jackson, sheriff Jerry Clayton and deputies for doing difficult work. But it’s time to stop studying the situation and to put some money directly into programs that will help youth, he said.

Alicia Ping (R-District 3) said she first heard about the Ypsilanti murder on Facebook, from a friend who lived in that neighborhood. She thought that by removing these young men, it will help the community as a whole. It will provide hope to the people living there, since they won’t be living in a place of fear. It’s important to let residents know that the community cares about what’s happening in those neighborhoods, Ping said, and that action is being taken to help.

Alicia Ping (R-District 3).

Edwards-Brown stressed that “this may not be the panacea.” Although the additional funding will help remove a certain number of young men, “there are brothers and sisters and nieces and nephews and cousins – so we have a bigger problem that we have yet to address,” she said. “We’re hoping to, quite frankly, save lives – the lives of these young men, and perhaps someone else in the community. But our work is far from done.”

Peterson said the problem isn’t just isolated to Ypsilanti – it’s something happening nationwide. He noted that the funding for this request is coming from the Child Care Fund reserves, but it’s unclear where funding will come from in the future. It could be a budget that inflates much higher, because the county has an obligation to provide services to all youth in need, he said.

Peterson suggested that the county administrator, Verna McDaniel, and the county board chair, Yousef Rabhi (D-District 8), work with staff to identify budget projections and future demand for services. If there’s a trend, the board should be aware of it well in advance, he said. “This is not going to be a gang haven,” he said. “The is not the Wild West.” Washtenaw County has the reputation as a great place to raise children, and they need to maintain that, Peterson added.

Jackson offered to make a presentation to the board with more details about the responses that are being planned. He said he’d spoken with three different mothers who had noticed that their sons were changing, but who couldn’t find help until the situation had escalated. That’s what needs to be addressed, he added – how to structure something in this community that will align the human services with the real issues that need attention.

Conan Smith (D-District 9) drew attention to the fact that fund balance is being used. The CCF fund balance will be depleted by two-thirds with just this one allocation, he noted. It’s an important allocation, and the kind of thing that fund balances are used for, he added. “But we’re doing it regularly now – dipping into departmental fund balances for programmatic expenditures.”

At the same time, Smith noted, the board is set to add money to the general fund reserves. He expected to see other proposals from departments later this year, also requesting to use their departmental fund balances. “This is a fiscal policy question that we really ought to be grappling with,” Smith said.

McDaniel pointed out that it’s actually a $1.3 million problem – the county’s $642,707, plus an equal amount that will be reimbursed by the state.

Outcome: Commissioners unanimously approved the Child Care Fund budget amendment.

Mid-Year Budget Adjustments

Commissioners were asked to pass a resolution making mid-year budget adjustments and allocating this year’s higher-than-expected property tax revenues, as well as a $3.9 million surplus from 2013.

County administrator Verna McDaniel.

The adjustments increased the general fund budget’s expenses and revenues by $720,486 for 2014, $733,233 for 2015, $745,980 for 2016 and $758,727 for 2017. The county operates on a four-year budget, with the fiscal year matching the calendar year.

The adjustments also followed the recommendation of county administrator Verna McDaniel, and set aside the $3,920,818 surplus from 2013 in unearmarked reserves, rather than spending it. The projected year-end 2014 fund balance is $20,638,675. The county board had previously approved a goal of holding a fund balance equal to 20% of its general fund budget. For 2014, the general fund budget is $103,127,202. [.pdf of staff memo and mid-year budget resolution]

In addition, the following mid-year budget adjustments were made to the general fund:

• Structural adjustments resulting in a $494,677 increase in expenditures for (1) providing employee health care coverage for autism; (2) a consultant to help with the board’s budget priority work, (3) a “local government initiatives” intern; (4) reinstatement of two full-time equivalent positions in the sheriff’s office; and (5) salary adjustments for non-union employees.
• Non-structural, one-time, adjustments that increased expenditures by $65,000 for homelessness initiatives.

The administration recommended that the remaining $160,809 be held as an undesignated allocation until budget projections improve as new information becomes available. The administration will present a second-quarter budget update at the board’s next meeting on Aug. 6, 2014.

Mid-Year Budget Adjustments: Board Discussion

Dan Smith (R-District 2) noted that it’s been less than three months since Raman Patel, the county’s equalization director, told the board about higher-than-expected tax revenues, which resulted in about $750,000 more revenue this year than had been budgeted for 2014.

Dan Smith (R-District 2).

Now, the board is already spending almost $600,000 of that surplus, which hadn’t been included in the original 2014 budget, Smith noted. There is no shortage of things to spend this money on, he continued, including over $234 million in unfunded liabilities “which we have no particular plan to pay for, other than amortizing payments over 26 years – something that our actuary is recommending against us doing.” The actuary would like to see that amount amortized over a much shorter period of 10 years.

Smith said he had no problem with making technical budget adjustments as they come along. But one of the reasons to have a four-year budget is to have a plan and then execute that plan, Smith said.

If the board wants to “be constantly in budget mode,” he said, then they could simply have a one-year budget. Unless there’s an emergency situation or deadlines that are outside of the county’s control, he thought it would be more appropriate to make these changes in the fall, during the board’s annual budget reaffirmation process.

There was no additional discussion on this item.

Outcome: The budget adjustments were passed on a 6-2 vote, over dissent by Dan Smith (R-District 2) and Conan Smith (D-District 9). Andy LaBarre (D-District 7) was absent.

County Parks & Rec Millage

The board was asked to pass a resolution that would authorize putting a proposal on the Nov. 4, 2014 ballot to renew a 10-year countywide parks and recreation operations millage.

Bob Tetens, director of Washtenaw County parks & recreation.

The resolution on July 9 was for an amended version, compared to a resolution given initial approval on May 21, 2014. That’s because some state-mandated information had inadvertently been left off the proposed ballot language in the original resolution, according to a staff memo. [.pdf of staff memo]

The operations millage was first authorized by voters in November 1976 at 0.25 mills for a 10-year period and has been renewed three times. Because of the state’s Headlee amendment, the rate that’s actually levied has been rolled back and is now 0.2352 mills. The current millage expires in December 2016.

If renewed again, it would generate an estimated $3.4 million annually – or about half of the parks & rec annual operating expenses. Other revenue sources are admission/gate/membership fees charged seasonally at facilities including the Meri Lou Murray recreation center, the water/spray parks, and the Pierce Lake golf course. Funding is also received from state and federal grants as well as private donations.

The county parks system receives most of its funding from two countywide millages. In addition to the operations millage, another millage pays for capital improvements and park development. It was also originally levied at 0.25 mills, but has been rolled back to 0.2367 mills.

In addition, a third millage – levied at 0.25 mills but rolled back to 0.2409 mills – funds natural areas preservation, bringing in about $3 million annually. It was first approved by voters in 2000, and renewed for another 10 years in 2010.

The county’s parks & recreation department is overseen by a separate entity – the parks & recreation commission – whose members are appointed by the county board. The county board has the authority to put a parks millage proposal on the ballot, but does not authorize expenditure of the funds. That responsibility rests with the parks & recreation commission. The group meets monthly at the parks & recreation office at County Farm Park, and its meetings are open to the public.

County Parks & Rec Millage: Board Discussion

Conan Smith (D-District 9) advocated for support of this millage in November. The county parks & recreation commission has done incredible things, he said. [Conan Smith serves on the commission, along with Dan Smith (R-District 2) and Rolland Sizemore Jr. (D-District 5).] There’s a park or preserve or recreation facility in nearly every community throughout Washtenaw County, and most of the county facilities are free to the public, he noted. The parks & rec commission also leverages funds from the state, Smith added, on projects like the Border to Border trail. It’s worthy of the continued support of county citizens, he concluded.

Yousef Rabhi (D-District 8) said he hears a lot from people around the state and nation about how unique the county parks & rec system is. He also supported the millage renewal.

Outcome: The board unanimously approved placing the millage renewal on the Nov. 4, 2014 ballot.

Appointments

There were two sets of appointments on the July 9 agenda – for a road funding committee, and the board of public works.

Appointments: Road Funding Committee

Commissioners were asked to approve appointments to a new committee that’s charged with exploring funding options for road repair.

The board had created the road funding committee on June 4, 2014, after debating whether to levy a countywide road millage or put a millage proposal on the Nov. 4, 2014 ballot to fund road repair. The final vote to create the committee had been 6-1 vote, over dissent from Conan Smith (D-District 9). Commissioners Yousef Rabhi (D-District 8) and Dan Smith (R-District 2) were absent.

In arguing against levying a tax at that time, some commissioners cited the need to study funding options – including a possible Act 283 levy, which doesn’t require voter approval – before making a decision.

On July 9, Rabhi proposed an amendment to his original resolution, adding two new slots – one for the director of the Washtenaw Area Transportation Study (WATS), and one for an additional county commissioner slot, to make it an odd-numbered roster.

Rolland Sizemore Jr. (D-District 5) wondered why nine members were needed. Rabhi said he wanted to add the WATS representation because that group has been doing a lot of work on the road funding issue, and would like to participate. “It’s less a matter of the number of people, and more a matter of who we have at the table,” Rabhi said.

Outcome on amendment: Commissioners approved the amendment on a voice vote.

The following members were nominated by Rabhi:

• Lew Kidder, representing the general public
• Bill McFarlane, representing the road commission
• Roy Townsend, managing director of the road commission
• Rolland Sizemore Jr., the county board of commissioners’ liaison to the road commission
• Dan Smith, county commissioner
• Kent Martinez-Kratz, county commissioner
• Rodrick Green, Superior Township trustee, representing townships
• Steve Powers, Ann Arbor city administrator, representing incorporated municipalities
• Ryan Buck, director of the Washtenaw Area Transportation Study (WATS)

The resolution directs the committee to meet within 60 days of this appointment to elect officers and draft bylaws. The committee is to report to the county board at its Sept. 17, 2014 meeting, and make quarterly updates after that with a final report due in December 2015.

The county administrator will help provide administrative support to the committee.

For additional Chronicle coverage on road-related issues, see: “County Board Continues Weighing Road Tax,” “County Board Debates Expanded Road Commission,” “County Board Sets Hearing on Road Tax,” “County Considers Road Funding Options,” “No Major Change Likely for Road Commission” and “Group Explores Road Commission’s Future.”

Outcome: Commissioners unanimously approved the appointments to the road funding committee.

Appointments: Board of Public Works

Yousef Rabhi nominated Steve Feinman to the county’s board of public works for the remainder of a three-year term ending Dec. 31, 2015.

According to the department of public works website, the board of public works “focuses on assisting local communities within Washtenaw County in addressing environmental and public health issues and development needs, including wastewater disposal and collection, water treatment and supply, lake management, and solid waste management.”

There was no discussion on this appointment.

Outcome: Feinman’s appointment was made on a unanimous vote.

Public Hearings: Act 88, Veterans Relief Millages

The board held two hearings on July 9 related to millages that the county plans to levy later this year: (1) for support of indigent veterans and their families; and (2) to fund economic development and agricultural activities.

Kent Martinez-Kratz (D-District 1).

For support of indigent veterans, the county’s position is that it is authorized to collect up to 1/10th of a mill without seeking voter approval. That’s because the state legislation that enables the county to levy this type of tax – the Veterans Relief Fund Act, Public Act 214 of 1899 – predates the state’s Headlee Amendment. The county first began levying this millage in 2008, and collects the tax in December. Services are administered through the county’s department of veterans affairs.

Since 2008, the county board has slightly increased the rate that it levies each year. In 2012, the rate was 0.0286 mills – or 1/35th of a mill. It was raised to a rate of 1/30th of a mill in December 2013, to fund services in 2014.

The current proposal is to levy 1/27th of a mill in December 2014, which is expected to raise about $540,887 in revenues for use in 2015.

No increase is proposed for the economic development millage, levied under Act 88 – another pre-Headlee law. The proposal is to levy 0.07 mills in December 2014, raising an estimated $1,022,276 in property tax revenues. In previous years, the resolution setting this millage has outlined how the revenues would be allocated. The largest allocations have gone to the county’s office of community & economic development, and to the nonprofit Ann Arbor SPARK.

However, at its Nov. 6, 2013 meeting, the board adopted a new policy for allocating Act 88 revenues, drafted by Conan Smith (D-District 9). [.pdf of Act 88 policy] The policy included creating an Act 88 advisory committee to make recommendations to the board and prepare an annual report that assesses how Act 88 expenditures have contributed toward progress of goals adopted by the board. The policy allows the committee to distribute up to 10% of annual Act 88 revenues without seeking board approval. The policy also allocates up to 30% of revenues to the county office of community & economic development, which administers Act 88 funding.

On July 9, only one person – Thomas Partridge – spoke at these public hearings. He endorsed the veterans relief millage, and questioned whether it would provide sufficient support for indigent veterans. He also questioned whether the amount levied under the Act 88 millage was sufficient for a county this size.

Outcome: This was not a voting item. A vote to levy these millages would be made at a future meeting.

Task Force on Homelessness

Commissioners were asked to accept the report and recommendations of a task force that’s been working on a funding strategy to help end homelessness. The resolution also sunsets that task force.

Felicia Brabec (D-District 4).

The leadership group for the Task Force on Sustainable Revenues for Supportive Housing Services to End Homelessness made a presentation at the board’s May 22, 2014 working session. Their recommendations include the goal of building a $50 million endowment over 20 years. Payouts from the endowment would fund supportive services – such as treatment for mental illness and substance abuse – with the intent of addressing the root causes of homelessness. The concept is called permanent supportive housing, and is part of the community’s broader Blueprint to End Homelessness, which was created in 2004 and is being updated.

A possible millage – recommended at 0.25 mills, for no more than 20 years – would help fund supportive services while the endowment is built. County commissioners are being asked to consider putting such a millage on the ballot, possibly in 2015.

Several steps have already been taken to achieve these goals. An endowment was established in 2011, with $2.1 million in commitments so far. That amount includes a $1 million gift from the St. Joseph Mercy Health System to create the endowment, which is called the Sister Yvonne Gellise Fund for Supportive Services for Housing. Gellise is the former CEO of St. Joe’s. She served on the task force and is a founding board member of the Washtenaw Housing Alliance. Another $1 million commitment comes from the Ann Arbor Area Community Foundation (AAACF), where the endowment is housed. AAACF CEO Cheryl Elliott is another task force member. In addition, an anonymous donor has contributed $100,000.

The first fund distribution – of $26,100 – will be made this fall in a competitive grant process. AAACF’s distribution committee – an all-volunteer group – will be responsible for making grant recommendations.

AAACF is also helping provide a three-year, part-time development job to support fundraising for this endowment. Funding for the position will come from the Washtenaw Housing Alliance ($25,000), the AAACF ($5,000) and an anonymous donor ($10,000).

The foundation posted the position earlier this summer, with the intent of making a hire as soon as possible. The position would be in place until at least mid-2017. The employee will report to AAACF’s vice president for development and donor services, and to the Sister Yvonne Gellise Fund development committee. Members of that committee are the same people who’ve served on the leadership team of the task force, Elliott said. In addition to herself, members include Bob Chapman, Sister Yvonne Gellise, Bob Guenzel, Norm Herbert and Dave Lutton.

There was no discussion on this item at the July 9 meeting.

Outcome: Commissioners unanimously voted to accept the report and sunset the task force.

Public Health Accreditation

Mark Miller, director of local health services with the Michigan Dept. of Community Health, attended the July 9 meeting to talk about the accreditation process that the Washtenaw County public health department completed earlier this year. [.pdf of letter from Dept. of Community Health director]

Washtenaw County health officer Ellen Rabinowitz and sheriff Jerry Clayton.

Miller thanked commissioners and staff, including county health officer Ellen Rabinowitz and retired health officer Dick Fleece, who both attended the July 9 meeting. Miller presented certificates of accreditation, and praised the achievement. It’s the fifth cycle that Washtenaw County has completed, passing stringent standards in the accreditation program, he said. The standards are hard to meet, Miller added, especially when budgets are tight.

Ten program areas were reviewed, and of 140 indicators, the Washtenaw County health department only missed one, Miller reported. “I don’t get to go to too many counties and get to say that – generally, [other counties] miss quite a few more.” Washtenaw County eventually achieved 100%, he noted.

Washtenaw County also passed an optional quality improvement supplement, which only about half of the health departments in Michigan have achieved, Miller reported. It means the county has a comprehensive program for improvement.

“This performance is no fluke,” Miller told commissioners. The Washtenaw County health department maintains many partnerships, which allow it to leverage resources and provide better services for residents. That’s admirable, he said.

Miller highlighted several comments included in the accreditation report, including praise for the health department’s website and for support from county commissioners for initiatives like breastfeeding-friendly policies. He called out Sharon Sheldon, the program administrator for health promotion and disease prevention, for her unit’s work. Special recognition is deserved for the HIV/STD program, the report noted, because client return rates for HIV test results have exceeded 96%. Programs in hearing and vision care were also commended, as was the food safety unit, overseen by Kristen Schweighoefer, and several other programs. Miller also noted that Washtenaw County is a pioneer in trying to manage requests for vaccine waivers.

Miller concluded by saying the state was very impressed by the county health department’s efficient and innovative programs. “You guys have a really terrific health department here,” he said.

Board of Health

A resolution to create a board of health was originally on the board’s June 4, 2014 agenda for final approval, but was postponed until the July 9 meeting. The entity would provide advice on public health issues for the county. Commissioners had given initial approval to the item at their May 21, 2014 meeting.

A description of the board’s duties is outlined in a staff memo that accompanied the resolution:

The purpose and role of a Washtenaw County Board of Health will be to identify public health problems and concerns in the community, establish health priorities, and advise the Board of Commissioners and the Health Department on issues and possible solutions. The Board of Health will serve as advocates and educators for public health services and policies. The Board of Health will provide oversight and guidance to the Health Department, and will recommend a program of basic health services to the Board of Commissioners.

The new Board of Health will have the authority to hear appeals and requests for variances from the local public health and environmental regulations established under the Public Health Code. The Board of Health will have the authority to hear appeals regarding the suspension or revocation of food service licenses.

The resolution creating the health board also dissolves an existing environmental health code appeals board and the hearing board for the Health Department Food Service Regulation. The duties of those boards would be absorbed by the new health board. [.pdf of staff memo]

The recommended size is 10 members, including one ex-officio representative from the county board of commissioners. According to the staff memo, appointments could represent “health service delivery (physicians, dentists, mental health practitioners, administrators); environmental health and conservation, land use planning, food service and nutrition, academia, K-12 education, philanthropy, social service delivery, legal services, and consumers of public health services.”

Members would be compensated for attending each meeting. The total cost for the health board, including in-kind staff support, is estimated at $19,000 annually. The board of health would be expected to convene for the first time in October 2014.

Ellen Rabinowitz, the county’s public health officer, attended the July 9 meeting but did not formally address the board.

Board of Health: Board Discussion

Conan Smith (D-District 9), who had moved to postpone the resolution last month without explanation, told commissioners on July 9 that he had distributed three amendments to the board via email. All of them are making additions to the resolution, he said.

Conan Smith (D-District 9).

Smith noted that commissioners have talked about a board of health taking a leadership role in the county, coordinating public health responses across many agencies. He thought it was important for the board of health to think actively about its role as a coordinator, so one of his amendments included that sentiment in a whereas clause.

Smith also proposed adding two resolved clauses. One clause clarified the roles and expectations of the board of health, to do three things: (1) develop and oversee the strategic plan for the department of health; (2) recommend the annual budget to the county administrator; and (3) work with the county administrator to evaluate the performance of the county public health officer.

The second additional resolved clause is to ensure that the bylaws that will be developed for the board of health will be brought to the county board of commissioners for review and approval. “That’s the document that’s truly going to delegate any authorities that we have from this board,” Smith said.

There was no discussion on these amendments.

Outcome: Smith’s amendments were approved on a voice vote.

There was no additional discussion.

Outcome: On a 7-1 vote, commissioners approved creation of a board of health, over dissent from Rolland Sizemore Jr. (D-District 5). Andy LaBarre (D-District 7) was absent.

Later in the meeting, Ronnie Peterson (D-District 6) said that establishing the board of health is a major step in improving the health for residents of this community, especially children.

Communications & Commentary

During the July 9 meeting there were multiple opportunities for communications from the administration and commissioners, as well as public commentary. In addition to issues reported earlier in this article, here are some other highlights.

Communications & Commentary: Budget Work

Felicia Brabec (D-District 4) reported that Susan McGraw has been hired as a consultant to work with the board on its budget priorities. That work will kick off later this month, she said.

Communications & Commentary: Taubman Fellowship

Yousef Rabhi (D-District 8) reported that he’d learned a lot earlier this summer at Harvard University’s Program for Senior Executives in State and Local Government at the John F. Kennedy School of Government. Ronnie Peterson (D-District 6) pointed out that Rabhi had received the Taubman Fellowship for Executive Excellence, which is given to selected officials and staff through the Southeast Michigan Council of Governments (SEMCOG). Peterson said that to be chosen for a fellowship is one of the highest recognitions that SEMCOG awards. “We should be honored to know that Washtenaw County and a Washtenaw County commissioner was selected,” Peterson said, joking “I just don’t know why they didn’t ask me.”

Arthur Williams, who retired as principle of Huron High School after 19 years in that position.

Communications & Commentary: Proclamations

Several proclamations were given during the July 9 meeting.

Communications & Commentary: Proclamations – Retirements

Board chair Yousef Rabhi (D-District 8) presented a proclamation honoring Arthur Williams, who is retiring as principal of Huron High School in Ann Arbor. [.pdf of Williams' proclamation]

Rabhi noted that he graduated from Huron High School “and Dr. Williams was my principal!” Williams was also a neighbor to Rabhi’s family as Rabhi grew up, so he knows Williams well. Williams has served as principal at Huron High since 1995.

Williams spoke briefly. As educators, he said, “we touch the future.” Many times they don’t know what the effects are of what they do in the schools, he added. Williams noted that Martin Luther King said everyone can be great, because everyone can serve. Williams said his goal has been to try to make this world a better place, by helping raise young people and families, and by trying to make an impact on lives.

He received a round of applause from commissioners and staff.

The board also made a proclamation to Mary Sue Coleman, who recently stepped down as president of the University of Michigan. Coleman did not attend the July 9 meeting.

Communications & Commentary: Proclamations – Ironworkers, UA

Mary Kerr, president of the Ann Arbor Visitors & Convention Bureau, was on hand to receive a proclamation welcoming the Ironworkers International annual instructor training program, which ran from July 12-18 this year. That program, held at Washtenaw Community College, brought in about 700 participants and an estimated economic impact of $2 million. It’s their fifth year holding the program in Washtenaw County. [.pdf of Ironworkers proclamation]

Mary Kerr, president of the Ann Arbor Visitors & Convention Bureau.

The board also gave a proclamation welcoming the United Association (UA) of plumbers and pipefitters for their 61st annual training program. For the past 25 years, that program has been held in Washtenaw County. [.pdf of UA proclamation]

This year, the program runs from Aug. 9-15, also on the WCC campus, bringing about 2,400 participants to the county with an estimated economic impact of $5 million.

Kerr noted that the county also hosts the training week for the National Joint Apprenticeship and Training Committee (NJATC) for the Electrical Industry. This year is a milestone for all three groups, she said. NJATC is in its 25th year and has been coming to Washtenaw County for six years. This year, the NJATC National Training Institute runs from July 26-Aug. 1 at the University of Michigan, and expects a 15% increase in participation compared to last year, Kerr reported.

Kerr said that a conservative economic impact estimate for all three programs is $12 million. “This is new spending in our community – spending that wouldn’t be here if these three training programs were not here,” she added. The spending is on hotels, restaurants, recreation, entertainment, shopping and transportation.

Her goal is to keep these events in Washtenaw County by providing a high level of service and making sure the unions know that they’re appreciated by the community. She thanked commissioners for their continued support.

Communications & Commentary: Proclamations – Gun Safety

The board passed a proclamation declaring July 20-26 as Gun Safety Week in Washtenaw County. [.pdf of gun safety resolution] The goal is to increase public safety “by raising awareness and educating residents of Washtenaw County about how to keep themselves and their families safe.”

During the week, local law enforcement agencies will be providing free gun locks and gun safety information. More information about the week is provided on the county’s website.

Communications & Commentary: Public Commentary

Speaking during public commentary, former Congressman Wes Vivian told commissioners that until four years ago, the U.S. had laws that prohibited or limited contributions by corporations to candidates for political office.

Former Congressman Wes Vivian.

But four years ago, the U.S. Supreme Court overturned those laws in the Citizens United decision, he said. Now, “corporations are sloshing big money into our elections at all levels,” Vivian said. Polls show that about 90% of U.S. citizens oppose that Supreme Court decision. Furthermore, almost 20 state governments have asked the U.S. government to enact a constitutional amendment to overturn the Citizens United decision. “To date, the state of Michigan has not done so, even though it’s been asked to,” Vivian noted.

The Ann Arbor and Ypsilanti city councils have asked Michigan’s government to take action on this issue, Vivian said. But so far, the state legislature has refused to bring it up for a vote, he added. He asked the county board to place a proposal on the Nov. 4, 2014 ballot enabling Washtenaw County voters to ask the state to support a constitutional amendment to overturn Citizens United. He didn’t have suggested wording for such a ballot proposal, but said he’d be glad to work on it.

Yousef Rabhi (D-District 8), the board’s chair, thanked Vivian and said he hoped the board would take action of some sort at a later date. It was an issue about the sustainability of this nation’s democracy, he said.

Conan Smith (D-District 9) also thanked Vivian for raising this issue. The idea of corporate personhood has raised many challenges, he said, “and the notion that just regular citizens are somehow second class in our decision-making process has got to be pre-empted.” It’s incumbent upon elected officials and the county board as a body of elected officials to take a stand, he said. Smith liked the idea of asking county residents to weigh in, saying it would send a great signal to people throughout the state and nation.

Ruth Ann Jamnick also addressed the board during public commentary. She pointed out that she’s one of the four candidates in the Aug. 5 Democratic primary election for the District 5 seat on the county board. She provided a handout with information about her experience and accomplishments.

Ruth Ann Jamnick.

Referring to the board’s discussion about juvenile crime earlier in the evening, Jamnick noted that she had been involved in addressing similar issues years ago in Ypsilanti Township. What makes it different now are the ages of the young people who are involved, she said. At that time, it was youth in their late teens – but now, the youth who are creating these problems are younger. It’s important to make some changes and address these issues. She also noted that the situation isn’t isolated to Ypsilanti Township.

Jamnick concluded by thanking Rolland Sizemore Jr., the district’s current commissioner, for his work.

Earlier this year, Sizemore announced that he did not intend to seek re-election. In addition to Jamnick, the three other Democratic candidates are Victor Dobrin, Wilma Gold-Jones, and Keith P. Jason. The winner of that primary will face Republican Timothy King in the Nov. 4 general election. King is unopposed in the primary.

Thomas Partridge introduced himself as a recent candidate for the state legislature. He urged the public to elect Democrat Mark Schauer as governor in November, and to address the critical needs of affordable housing, public transportation, human rights and health care in Washtenaw County. Too many residents are vulnerable and don’t have the services they need, he said. He criticized the county board’s agenda for not including items that address ending homelessness, providing affordable housing and access to countywide public transportation, and supporting better health care and education for adults. These should be priorities for the board, he said.

Present: Felicia Brabec, Kent Martinez-Kratz, Ronnie Peterson, Alicia Ping, Yousef Rabhi, Rolland Sizemore Jr., Conan Smith, Dan Smith.

Absent: Andy LaBarre.

Next regular board meeting: Wednesday, Aug. 6, 2014 at 6:30 p.m. at the county administration building, 220 N. Main St. in Ann Arbor. The ways & means committee meets first, followed immediately by the regular board meeting. [Check Chronicle event listings to confirm date.] (Though the agenda states that the regular board meeting begins at 6:45 p.m., it usually starts much later – times vary depending on what’s on the agenda.) Public commentary is held at the beginning of each meeting, and no advance sign-up is required.

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The staff memo accompanying the ordinance changes summarizes them as follows. The ordinance amendment:

• clarifies that the councilmembers currently serving on the environmental commission nominate persons for “at-large” appointments, which are then approved by council resolution;
• clarifies that the planning commission, park advisory commission, and energy commission each designate a representative to the environmental commission without council approval and for a one-year term;
• clarifies that the 3-year terms should be equally staggered;
• removes references to the Leslie Science Center Advisory Board, which no longer exists;
• requires the city administrator or the designated support staff of the environmental commission to notify council of vacancies – previously this was delegated to the clerk’s office, which does not always have immediate knowledge of vacancies;
• contains a few minor, non-substantive corrections and clarifications.

The EC is one of the few boards or commissions in the city for which the mayor does not make nominations. The more familiar procedure – for most boards and commissions – includes a mayoral nomination at one council meeting, followed by the confirmation vote of the council at a subsequent meeting.

In the past, the council has mimicked this procedure for the EC by having some councilmember put a resolution on the agenda appointing a member to the EC, and then postponing the resolution until the next meeting. So the ordinance revisions include clarification that the nominations put forward by the council as a body to the EC are to be made by the two councilmembers who serve as the council’s representatives to the EC.

Besides two slots for council representatives, the EC includes positions for members of the planning commission, park advisory commission, and energy commission. The ordinance revision that was given final approval on July 21 makes clear that those groups make their appointments to the EC without further city council approval.

This specific revision comes after the planning commission had selected Kirk Westphal from its membership to serve on the EC earlier this year. Some councilmembers voted against his confirmation, when the council was asked to confirm his selection two months ago. For background on that vote, see “Hutton, Westphal Reappointed to EC.”

Mark Clevey’s name had been scheduled to be put before the council on July 7 to be confirmed as a member of the EC, but was withdrawn – because he is the selection by the energy commission to represent that commission on the EC. After enactment, the energy commission appointment to EC (like that of other boards and commissions to the EC) will be for one year and will not need city council approval.

In other business related to boards and commissions at its July 21 meeting, the council amended a resolution from last year that placed a member of the city council on the commission on disability issues.

The amendment clarifies that the city council representative will be appointed for a one-year term annually. Currently the council’s representative to the commission on disability issues is Sally Petersen (Ward 2).

This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron.

The board had created the road funding committee on June 4, 2014, after debating whether to levy a countywide road millage or put a millage proposal on the Nov. 4, 2014 ballot to fund road repair. The final vote to create the committee had been 6-1 vote, over dissent from Conan Smith (D-District 9). Commissioners Yousef Rabhi (D-District 8) and Dan Smith (R-District 2) were absent.

In arguing against levying a tax at that time, some commissioners cited the need to study funding options – including a possible Act 283 levy, which doesn’t require voter approval – before making a decision.

Members appointed are:

• Lew Kidder, representing the general public
• Bill McFarlane, representing the road commission
• Roy Townsend, managing director of the road commission
• Rolland Sizemore Jr., the county board of commissioners’ liaison to the road commission
• Dan Smith, county commissioner
• Kent Martinez-Kratz, county commissioner
• Rodrick Green, Superior Township trustee, representing townships
• Steve Powers, Ann Arbor city administrator, representing incorporated municipalities
• Ryan Buck, director of the Washtenaw Area Transportation Study (WATS)

The resolution directs the committee to meet within 60 days of this appointment to elect officers and draft bylaws. The committee is to report to the county board at its Sept. 17, 2014 meeting, and make quarterly updates after that with a final report due in December 2015.

The county administrator will help provide administrative support to the committee.

For additional Chronicle coverage on road-related issues, see: “County Board Continues Weighing Road Tax,” “County Board Debates Expanded Road Commission,” “County Board Sets Hearing on Road Tax,” “County Considers Road Funding Options,” “No Major Change Likely for Road Commission” and “Group Explores Road Commission’s Future.”

This brief was filed from the county administration building at 220 N. Main. in Ann Arbor. A more detailed report will follow: [link]

Given initial approval by the council was an amendment to the city ordinance establishing the commission. In other business, the council confirmed the appointment of additional members to the commission: Allison Skinner and Benjamin Muth. Those nominations had been announced at the council’s June 16, 2014 meeting.

The ordinance change relates in part to the way that nominations to the EC are made. The EC is one of the few boards or commissions in the city for which the mayor does not make nominations. The more familiar procedure – for most boards and commissions – includes a mayoral nomination at one council meeting, followed by the confirmation vote of the council at a subsequent meeting.

In the past, the council has mimicked this procedure for the EC by having some councilmember put a resolution on the agenda appointing a member to the EC, and then postponing the resolution until the next meeting. The ordinance revisions include clarification that the nominations put forward by the council as a body to the EC are to be made by the two councilmembers who serve as the council’s representatives to the EC.

Besides two slots for council representatives, the EC includes positions for members of the planning commission, park advisory commission, and energy commission. The ordinance revision to which the council gave initial approval on July 7 makes clear that those groups make their appointments to the EC without further city council approval. This specific revision comes after the planning commission had selected Kirk Westphal from its membership to serve on the EC earlier this year. Some councilmembers voted against his confirmation, when the council was asked to confirm his selection two months ago. For background on that vote, see “Hutton, Westphal Reappointed to EC.”

The staff memo summarizes the changes to the ordinance regulating appointments to boards and commissions as follows:

• clarifies that the councilmembers currently serving on the environmental commission nominate persons for “at-large” appointments, which are then approved by council resolution;
• clarifies that the planning commission, park advisory commission, and energy commission each designate a representative to the environmental commission without council approval and for a one-year term;
• clarifies that the 3-year terms should be equally staggered;
• removes references to the Leslie Science Center Advisory Board, which no longer exists;
• requires the city administrator or the designated support staff of the environmental commission to notify council of vacancies – previously this was delegated to the clerk’s office, which does not always have immediate knowledge of vacancies;
• contains a few minor, non-substantive corrections and clarifications.

The ordinance amendment will still need a second and final vote at a subsequent meeting, in order to be enacted.

This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron.

Pat Kelly, former Dexter Township supervisor, talks with county commissioner Conan Smith and finance director Kelly Belknap before the March 19, 2014 county board meeting. The board passed a resolution of appreciation for Pat Kelly during the meeting. (Photos by the writer.)

The board also heard from county treasurer Catherine McClary, who reported that foreclosures are decreasing, as are delinquent taxes. Delinquent taxes are a leading economic indicator for both mortgage foreclosures and tax foreclosures, she noted, so the decreases are good news. Commissioners gave initial authorization to the treasurer’s office to borrow up to $30 million against the amount of delinquent property taxes in all of the county’s 80 taxing jurisdictions, an annual process.

Commissioners also authorized the county administrator to hire a contract employee who will support budget-related work this year for the county board and administration. The vote came over dissent from Rolland Sizemore Jr., who felt the work could be absorbed by existing staff.

The budget was also the focus of an update from lobbyist Kirk Profit and his colleague Gary Owen at Lansing-based Governmental Consultant Services Inc., who talked about how action in the state government might impact Washtenaw County. GCSI is the lobbyist for the county and several other local governments, including the city of Ann Arbor. Their updates included the fact that legislation has been introduced to repeal Act 88, which the county uses to levy taxes for economic development and agriculture. This year, the county has budgeted $973,000 in revenues from an Act 88 levy.

In other action, the board appointed former Superior Township supervisor Bill McFarlane to the county road commission board, to fill the seat left vacant by the recent death of long-time road commissioner Fred Veigel. The remainder of that six-year term runs through Dec. 31, 2014.

Commissioners supported McFarlane, but also discussed the possibility of changing the process so that interviews with applicants would be held at a public meeting. Yousef Rabhi (D-District 8), who as board chair makes these nominations, described the process of nominating a new road commissioner as a difficult one, and highlighted the need for a five-member road commission. Currently the road commission board consists of three members. It’s an issue that Rabhi plans to bring up at an April 17 working session.

The board also took a step toward allowing employees to get health insurance coverage for the treatment of autism. Commissioners gave initial approval that would authorize adding an Autism Spectrum Disorder (ASD) rider to existing active employee and retiree benefits.

And a resolution to oppose a mineral mining operation in Lyndon Township drew criticism from Dan Smith (R-District 2), who objected to the county board weighing in on an issue that’s not within its purview. Other commissioners felt the county had a vested interest in formally voicing an opinion, both because of broader economic and environmental impacts that would affect residents, and because the county parks & recreation commission owns property in the township. Smith’s decision to state “present” – rather than casting a yes or no vote – resulted in brief discussion about board rules.

Lyndon Township Mineral Mining

A resolution opposing a mineral mining proposal in Lyndon Township appeared on the March 19 agenda.

The resolution stated that the county board “formally opposes the establishment of the proposed McCoig Materials mining operation in Lyndon Township on the basis of the very serious negative consequences to the surrounding communities.” The company is proposing a sand and gravel mine on 189 acres north of Chelsea on M-52. The rural site is located near several parks and nature areas, including Waterloo State Recreation Area, the Pinckney State Recreation Area, Park Lyndon, the Green Lake Camping area, and the Waterloo-Pinckney Hiking Trail. Over 31,000 acres of protected land is located in that area.

McCoig is asking Lyndon Township for special land use zoning and has submitted an application for a mineral mining operation. Public hearings on the issue have drawn heavy opposition. On its website, the township has noted that its authority is limited:

Michigan State Legislators have greatly reduced township control by passing Act 110 of 2006 (125.3205). Under that law, the township must not “prevent the extraction, by mining, of valuable natural resources from any property unless very serious consequences would result from the extraction of those natural resources. Natural resources are considered valuable for the purposes of this section if a person, by extracting the natural resources, can receive revenue and reasonably expect to operate at a profit.” The township’s authority is limited to “reasonable regulation of hours of operation, blasting hours, noise levels, dust control measures, and traffic that are not preempted by part 632 of the Michigan environmental laws,” 1994 PA 451, MCL 324.63201 to 324.63223.

The county board’s resolution addresses these issues, stating in its “whereas” clauses that “the noise, dust, air pollution, and additional heavy traffic generated by the operation of the mine and the transportation of the minerals will likely have serious negative consequences for the natural environment and wildlife …” [.pdf of full resolution]

The issue was also raised during the March 11, 2014 meeting of the Washtenaw County parks & recreation commission. WCPARC director Bob Tetens subsequently sent a letter to Lyndon Township supervisor Mark Keezer outlining several concerns with the project. [.pdf of Tetens letter] The letter indicates that WCPARC is willing to purchase the property.

Lyndon Township Mineral Mining: Public Commentary

A resident of Lyndon Township spoke during public commentary, saying he’s not anti-mining. “But my mama taught me there’s a right place for everything, and in the heart of the largest state recreation area in the lower Peninsula is not the right place.” He strongly encouraged commissioners to pass the resolution and to do everything in their powers to support the citizenry, “who I can tell you is very strongly against this.”

Larry Murphy, a Scio Township resident, told commissioners that he’s a candidate for the county board. [Murphy, a Republican, has filed to run for the Aug. 5 primary in District 1. The seat is currently held by Democrat Kent Martinez-Kratz, who is running for re-election.] Murphy said he attended the public meeting earlier in the month about this proposal, which was held by the Lyndon Township planning commission. He said he was shocked that about 500 people attended. It’s really a disaster in terms of the environment and the effect on recreation, Murphy said. It’s also a disaster in terms of transportation, because of the trucks that would be going through downtown Chelsea. He encouraged the board to oppose this project. He wanted people to know that opposition to this is bi-partisan. “This mining company, McCoig, has no support, no friends in Washtenaw County,” Murphy concluded.

Lyndon Township Mineral Mining: Board Discussion

Kent Martinez-Kratz (D-District 1) – who represents the county district that includes Lyndon Township – described the situation, noting that the mining would directly affect a county park. Park Lyndon shares a lake with the proposed sand mine, he noted, and the company plans to use water from the lake as part of its mining operation. He pointed to the letter by Bob Tetens, director of the county parks & recreation commission, as giving a good explanation of the objections. Martinez-Kratz also noted that about 700 people had attended two public meetings in the township, overwhelmingly opposed to this proposal. He thought the community would appreciate the county’s opposition.

From left: Yousef Rabhi (D-District 8) and Dan Smith (R-District 2).

Dan Smith (R-District 2) spoke about process and the county board’s role. “It seems that this board simply can’t mind its own business. Here we are, yet again, sticking our nose in someone else’s business.” This is a matter for Lyndon Township to decide what’s best for them, he said. The planning commission is holding public hearings and getting lots of public comment. The planning commission will review that public comment, as well as the advice from their attorneys, and make a decision. The township board will subsequently weigh in as well. If voters are unhappy about that, they have a right of referendum, Smith noted. Residents can circulate petitions and perhaps overturn whatever decision is made. If a lawsuit occurs, it will be the taxpayers of Lyndon Township who’ll be paying for it, he noted.

It’s not the job of the county board to sort out these issues, Smith said. This isn’t under the county’s control, he added, “and I wish you would stop having things in front of us that are not under our purview.” [In general, Smith has consistently objected to resolutions weighing in on issues – usually at the state level – that are outside the purview of the county board.]

Conan Smith (D-District 9) said he appreciated Dan Smith’s position that the township board will be making the decision. But Washtenaw County is a significant landowner in Lyndon Township, he noted, with properties including Park Lyndon and West Lake Preserve. The resolution that the board is considering plainly articulates the impacts on natural resources as being the main driver of the county’s concern, C. Smith said. The township is gathering public opinion, and the county as a landowner has an interest in that land and the possible impacts of the mining facility. “It’s right for us to articulate our concerns,” he said. The resolution doesn’t carry any more weight than other landholders, he said, and he supported it.

Rolland Sizemore Jr. (D-District 5) asked whether the Lyndon Township board supported or opposed the mining proposal. Yousef Rabhi (D-District 8) didn’t think the township board had made a determination – that’s why they’re soliciting public comment. Sizemore wondered what the county board’s resolution would do. Rabhi replied that it expresses the board’s opposition to the mining operation.

Sizemore said Dan Smith had a point about it being the township’s business. But Sizemore noted that he served on the county parks & recreation commission, which has a lot of land there, so he’d support the resolution. [Dan Smith and Conan Smith also serve on the parks & recreation commission.]

Kent Martinez-Kratz (D-District 1) talks with former Dexter Township supervisor Pat Kelly.

Rabhi thanked Martinez-Kratz for advocating on this issue. Rabhi noted that his own personal interest in it stems from his background in environmental studies. He’s heard from people at the University of Michigan that they also have concerns about this project. Rabhi called Tetens’ letter well-stated, outlining many concerns that people share. It’s a community-wide issue, he said, not just isolated to the township. Lyndon Township is within Washtenaw County, and the county has a duty to take a stance on this – because the environment in the county is a countywide asset to all citizens. “We are doing the right thing by passing this resolution in opposition of the mining operations in Lyndon Township,” Rabhi said. It should be a concern for all of Washtenaw County.

Dan Smith countered that if the state wanted the county board to have control over land use, then the legislature could amend the zoning enabling act. In some states, land use is a county matter, he said. If that were the case, then the question of this mining operation would rightfully be before the county board, and it would make the determination.

The proper response, D. Smith continued, is in Tetens’ letter, where Tetens indicated the willingness of the parks & recreation commission to buy the property. It makes perfect sense for natural areas preservation, he said.

Martinez-Kratz thought the state would want the county board to advocate on issues that are important to the county. This issue is important for economic and environmental reasons, he said. It won’t be resolved quickly, and he thought that township officials would look for guidance from the county as well as from the township residents.

Outcome: The resolution passed. Alicia Ping (R-District 3) was absent, and Dan Smith (R-District 2) stated “present.”

Lyndon Township Mineral Mining: The Vote – Coda

Kent Martinez-Kratz asked corporation counsel Curtis Hedger for clarification about how Dan Smith’s vote would be recorded. The board rules state that a commissioner must vote yes or no unless there’s a conflict of interest, but Hedger noted that there’s no mechanism to enforce the rule.

Hedger said he did some research, because Smith had indicated that he would be making the “present” statement. It will be recorded that Smith stated “present,” Hedger said. But because it takes an affirmative vote to approve a resolution, then anything else is considered a “soft no.” Yousef Rabhi recommended making a note next to the vote, indicating that it’s not in keeping with the board rules.

Specifically, the board rules – as adopted unanimously by commissioners at their Jan. 8, 2014 meeting – state:

O.
 VOTING:

Every
 member
 who 
shall 
be 
present, 
including 
the
 Chair,
 when 
a 
motion 
is 
last 
stated 
by 
the
 Chair, 
and 
no 
other, 
shall 
vote 
for 
or 
against 
the
motion 
unless 
the 
member 
has 
a 
conflict 
of
 interest, 
in 
which 
case 
the 
member 
shall
 not 
vote.

1.
 Roll
 Call
 Vote:

Roll
 call
 vote
 shall 
be 
taken
 when 
called 
for 
by 
any
 member 
of 
the 
Board, 
and
 on 
board actions 
to 
adopt 
ordinances, 
resolutions
 and 
the
 appointment 
or 
election 
of 
officers.

2.
 Votes 
Required:

Procedural
 and
 other
 questions
 arising 
at
 a
 meeting 
of
 the 
Commissioners,
 except
 for
 those 
decisions
 required
 by 
statute
 or 
by 
these 
rules
(Specifically,
 Rule
 II
 F – Closing
 Debate
 in 
Committees 
and
 Rule
 III 
R – Suspension/
Amendment
 or 
Rescission
 of
 Board
 Rules) 
to 
have 
a 
higher
 majority, 
shall
 be 
decided 
by 
a 
majority 
of 
the 
members 
present.
 A 
majority 
of 
the 
members 
elected 
and 
serving, 
however, shall 
be
 required
 for 
the 
final
 passage 
or 
adoption
 of
 a 
motion,
 resolution 
or
 allowance 
of
 a 
claim.

Ronnie Peterson noted that commissioners are individually elected, and they can choose to vote or not vote. Every commissioner stands by their individual commitments to vote, he said. The resolution passed with majority support, he noted. The board establishes its practices and norms by example, Peterson said. Whatever the board finds acceptable is how it will function, regardless of what the official rules state, he added. “I don’t like that, but we’ve established that in the past.”

Appointments

At the board’s March 19 meeting, Yousef Rabhi (D-District 8) made nominations to six county committees, commissions and boards. [.pdf of application packet] Nominations are made by the board chair, with confirmation of the appointments made by a vote of the full board.

Appointments: Road Commission Board

Yousef Rabhi nominated former Superior Township supervisor Bill McFarlane to the Washtenaw County road commission board, to fill the seat left vacant by the recent death of long-time road commissioner Fred Veigel. The remainder of that six-year term runs through Dec. 31, 2014. Unlike most other county-appointed boards, road commissioners receive annual compensation of $10,500.

Superior Township supervisor Ken Schwartz, a former road commissioner.

McFarlane was among 10 applicants for the position. Others who applied included former county commissioner Rob Turner; Mike Henry, chair of the Ann Arbor Democratic Party; and University Bank CEO Stephen Ranzini.

During the evening’s first opportunity for public commentary, Ken Schwartz – a former county commissioner, former road commissioner and current supervisor of Superior Township – spoke briefly in support of McFarlane’s appointment. He noted that McFarlane was very experienced in local government. McFarlane had served as Superior Township’s supervisor for 22 years and before that worked for the sheriff’s department. “Bill is more than qualified to step in,” Schwartz said. McFarlane has worked with municipal budgets, and understands the difference between primary roads and local roads. He’d be an excellent choice, Schwartz concluded.

Conan Smith (D-District 9) said he was glad that McFarlane would be back working for the county. He described McFarlane as very bright and “super genial,” and as someone who is trusted by the communities that are impacted by decisions of the road commission.

Ronnie Peterson (D-District 6) described McFarlane as a personal friend, and said there was no question about his integrity. He was pleased that McFarlane was willing to serve, and he supported the nomination.

However, Peterson said he was concerned about following proper procedures, and that the board hadn’t always done that. In the past, they’d gotten rid of a 24-year veteran on the road commission, Peterson said, “through a process that was very questionable.” [Peterson didn't mention any names, but was possibly referring to Steve Puuri, who retired as managing director of the road commission in 2011 after nearly 25 years.]

Following the rules and procedures is the only way that people know that something is being done in a fair, consistent way, he said. Peterson questioned why there hadn’t been public interviews of potential candidates to the road commission board.

Peterson also said he hadn’t yet heard about the recommendations regarding the future of the road commission, which a board subcommittee had undertaken. He wanted to have some discussion about that. If the nomination were anyone else besides McFarlane, Peterson said he might not vote for that person, because he didn’t think the process had been fair, clear or consistent.

Conan Smith responded, saying that candidates for the road commission in the past had been interviewed, but that hadn’t happened for at least seven years. The more recent appointments to the road commission hadn’t been made that way, he noted, and perhaps the board should return to its past practice. He said he knew how rough it was for the board chair to have to make the decision.

C. Smith noted that since the current appointment runs only through the end of 2014, there would be a chance soon to implement an interview process when the county board makes an appointment for the term that begins on Jan. 1, 2015. He thought it would be very valuable for the public to have input.

Rolland Sizemore Jr. (D-District 5) said he supported McFarlane. He disagreed with Peterson and C. Smith, saying that citizens elected the county commissioners so that the commissioners would make decisions. It’s the board’s job to make these appointments, he said, not to set up an advisory committee to make recommendations. He thought the board was letting go of its authority, and letting residents decide “when they don’t know a third of the story.”

Andy LaBarre (D-District 7) noted that the road commission would be the topic of an April 17 working session, which he chairs. He suggested continuing discussion of the issue at that time. The working session will also include a report from the subcommittee that is making recommendations on the future of the road commission. [For additional background, see Chronicle coverage: “No Major Change Likely for Road Commission.”]

Rabhi described the process of nominating a new road commissioner as a difficult one. He appreciated the diversity of backgrounds among the applicants. He said he called all 10 applicants for 15-30 minutes or more, to talk about their interests and qualifications. “It was a very hard and stressful process for me.” McFarlane has the qualifications necessary to fill this vacancy, Rabhi said, and he was happy to put his name forward.

Rabhi said it would be great to find a way to engage all the applicants, who are passionate about roads and road funding. Perhaps there’s a way to do that in an ongoing basis, he said.

Yousef Rabhi (D-District 8), chair of the county board.

Noting that this might be extremely controversial, Rabhi then said the county needs a five-member road commission. Currently the road commission board consists of three members. “This process highlighted that need” to expand, he said. With five members, the road commission would have more representation from more backgrounds and more parts of the community. That would result in a more productive dialogue than three commissioners can have, Rabhi said, especially given the restrictions of the state’s Open Meetings Act.

It’s an issue that Rabhi plans to bring up at the April 17 working session.

Rabhi said he’d love to hear about how the public interview process has worked in the past, noting that he wasn’t on the board when those kind of interviews occurred. He’d like to review that process, as long as it’s not taking away the decision-making from the board.

In this case, given the vacancy and the need for a full road commission board, a new commissioner needed to be appointed quickly, Rabhi said. He again stressed that he’d spent a lot of time talking to applicants as well as to fellow county commissioners, to get their input. He hoped the board would support McFarlane.

Sizemore wanted to know when the county board could change the pay of the road commissioners. Corporation counsel Curtis Hedger said it can’t be done during a road commissioner’s current term. It would have to be done and take effect at the beginning of the new term. Sizemore said that if the road commission board is expanded to five members, perhaps the salary should be reduced to $6,000 each. Hedger pointed out that there would be varying salaries for a period, because the terms for the road commissioners are staggered.

Peterson said he didn’t know where the idea of having a citizens advisory committee had come from, and emphasized that the appointments are made by the board. Whatever process is put in place should also be decided by the board, he said.

Outcome: Commissioners unanimously appointed Bill McFarlane to the Washtenaw County road commission.

Later in the meeting, Ronnie Peterson asked whether expanding the road commission to five members would actually mean dissolving the existing road commission and establishing a new one. He asked corporation counsel Curtis Hedger to research that question. He said he wasn’t advocating for it, and joked that he hoped people wouldn’t call him about it.

Yousef Rabhi also suggested that the board might consider designating positions on the road commission board based on specific skills – like community outreach, or technical expertise – so that there’s more diversity of background, especially if the road commission board is expanded to five members. It might even include geographic designations, he said. That might be something else that Hedger could explore.

In general, Rabhi said he wanted to move road commission appointments away from being political and more toward being policy-driven.

Appointments: Other Commissions & Committees

Yousef Rabhi made several other nominations on March 19:

• Accommodations ordinance commission, for a term ending Dec. 31, 2014: Andy LaBarre (D-District 7).
• Agricultural lands preservation advisory committee, for a term ending Dec. 31, 2014: Erica Bloom (environmental/conservation group/natural resources professional).
• Workforce development board, for terms ending Dec. 31, 2016: John Haberthy (private sector) and Matthew Sandstrom (private sector).

In addition, five nominations were made to the Act 88 advisory committee, for terms ending Dec. 31, 2014. Three county commissioners – Conan Smith (D-District 9), Alicia Ping (R-District 3) and Ronnie Peterson (D-District 6) – were appointed, along with citizens Todd Clark and Art Serafinski.

Action on appointing the Act 88 advisory committee had been originally considered at the board’s Feb. 19, 2014 meeting. The item was postponed after Ronnie Peterson (D-District 6) raised concerns over the policy governing the committee’s role. The committee had been created at the board’s Nov. 6, 2013 meeting, as part of a broader policy to help the board allocate revenues levied under Act 88 of 1913. No appointments had been made at that time, however. The county levies the tax to fund economic development and agricultural activities, including Ann Arbor SPARK. [.pdf of March 19 staff memo on Act 88]

Outcome: All appointments were approved by the board.

Staff for Budget Work

Commissioners were asked to give final approval to a proposal to hire a contract position that would support budget-related work for the county board and administration. The item had been originally considered, but postponed, at the board’s meeting on Feb. 5, 2014. It was subsequently given initial approval on March 5, 2014.

County administrator Verna McDaniel.

This process started on Nov. 20, 2013 meeting, when commissioners gave direction to county administrator Verna McDaniel to research and recommend staffing options that would support the board’s community investment priorities. As part of adopting a four-year budget, the board set up a new strategic model to help it determine where the county’s resources should go. The board set goals as well as outcomes that are intended to measure how those goals are being achieved.

The priority areas for investment that were approved by the board in 2013 are: (1) ensure community safety net through health and human services, inclusive of public safety; (2) increase economic opportunity and workforce development; (3) ensure mobility and civic infrastructure for county residents; (4) reduce environmental impact; and (5) ensure internal labor force sustainability and effectiveness.

The dollar amount for this position wasn’t included in the resolution, which stated that “compensation shall not exceed the scope of the Administrator’s authority.” The administrator has discretion to spend up to $50,000 on professional services contracts, and up to $100,000 for any proposed goods, services, new construction or renovation. [.pdf of staff memo and resolution] A four-page job description had been included in the Feb. 5 board packet. The person would report to the county administrator in terms of daily operations. [.pdf of job description] [.pdf of scope of services]

The issue was debated at some length during the board’s Jan. 22, 2014 meeting, when commissioner Ronnie Peterson (D-District 6) questioned the process for hiring this kind of staff support. On Feb. 5, several commissioners expressed concern about spending money on this position and wanted more details about funding and duties, which led to the postponement. There was no discussion about the item on March 5, when it was given initial approval on a 7-1 vote, over dissent from Dan Smith (R-District 2). Rolland Sizemore Jr. (D-District 5) had been absent.

Staff for Budget Work: Board Discussion

On March 19, Ronnie Peterson asked for the item to be pulled out for a separate vote. He said he supported the staff position, but wanted to clarify some things. He joked that the chair, Yousef Rabhi, “took me to the back room, to make sure I did not waver.”

Peterson referred to the following “whereas” clause, highlighting a reference to the board leadership:

WHEREAS, upon approval, the Administrator is directed to work with Board Leadership to contractually engage a qualified professional to assist the BOC to develop strategies and provide oversight for the integration of Board-defined community impacts and outcomes into organizational and departmental programs, policies and budget priorities and;

Peterson said he wasn’t part of the board leadership, and he wanted to know how they perceived the role of this new employee. [The leadership includes board chair Yousef Rabhi; vice chair Alicia Ping; Felicia Brabec, chair of the ways & means committee; and Andy LaBarre, chair of the working sessions.] How would the communication flow from the leadership to the rest of the board? Peterson asked. He noted that the new staff person would be under the supervision of the county administrator, but would report to the board.

Felicia Brabec said that the “whereas” clause relates to hiring the person, and she encouraged all commissioners to be involved in that process. She was open to changing “board leadership” to simply “the board.”

Regarding the flow of information, Brabec said the person would regularly come to board meetings to update commissioners about the work. That way, commissioners would be on the same page when they needed to make decisions for the budget reaffirmation later this year, she said.

Rabhi supported an amendment to strike the phrase “to work with Board Leadership.” But Conan Smith said he thought the board should be involved in the hiring. Peterson agreed, saying the board should be very open about this hiring, and should let other employees know what this person will be doing. The role should be clearly defined, he said. Peterson agreed that the entire board should be involved, not just the leadership.

The proposed amendment changed the “whereas” clause to state [emphasis added]:

WHEREAS, upon approval, the Administrator is directed to work with the Board to contractually engage a qualified professional to assist the BOC to develop strategies and provide oversight for the integration of Board-defined community impacts and outcomes into organizational and departmental programs, policies and budget priorities and;

Outcome on amendment: On a voice vote, commissioners approved the amended “whereas” clause.

Rolland Sizemore Jr. (D-District 5).

Rolland Sizemore Jr. wondered whether in the future he should contact county administrator Verna McDaniel, or the new staff person that would be hired. He was skeptical about the need to hire someone new. “We’ve already got 1,300 employees, but you guys feel we need to hire somebody else to do Verna’s job, and Verna’s job is to tell somebody on her staff to get some work done.”

Sizemore also asked why there were no dollar amounts specified in the resolution for this new hire, or a timeframe for this work. Finally, he asked whether the county would also need to hire someone to implement the recommendations made by the new employee. He didn’t support the hire, saying that the county already had staff who could do this work.

Brabec and McDaniel clarified that the contract would likely be between $50,000 to $75,000, and would not exceed the amount that the county administrator is allowed to spend without board approval – a $100,000 limit. In terms of a timeframe, McDaniel said it would likely be a contract at least through 2014. The board would need to decide whether the work would continue beyond that, she said.

Sizemore noted that not long ago, the county was poised to borrow up to $350 million “because we were in such desperate straits,” but now there’s money to hire someone new. He would not support the resolution. [Sizemore was referring to a bond proposal that had been floated in early 2013 to cover unfunded pension and retiree healthcare obligations. McDaniel had initially said the bond was crucial to the county's financial health, but the proposal was dropped in July of 2013 amid concerns over cost and process, as well as uncertainty related to the state approval process that was required for this type of bonding.]

Outcome: The resolution on hiring a contract employee for budget work passed on a 6-1 vote, over dissent from Rolland Sizemore Jr. Dan Smith was out of the room when the vote was taken, and Alicia Ping was absent.

Autism Coverage

Andy LaBarre (D-District 7) brought forward a resolution from the floor, authorizing the county to provide health insurance coverage for the treatment of autism. The resolution would authorize adding an Autism Spectrum Disorder (ASD) rider to existing active employee and retiree benefits. [.pdf of staff memo and resolution]

Adding the rider would cost the county an estimated $182,589 this year, according to staff – to be paid to Blue Cross Blue Shield of Michigan. To cover that cost, each county department will be charged on a per-employee basis. In addition, the county will pay for claims made by employees for this benefit, with the assumption that most if not all claims would be reimbursed by the state. LaBarre described the amount of claims that the county might be required to pay as a “moving target, but one I think we can meet.” He said the policy is needed for employee recruitment and retention, as well as for the “basic moral argument” that coverage should be provided.

Andy LaBarre (D-District 7).

The board has been discussing this possibility for several months. LaBarre noted that Conan Smith (D-District 9) had brought up the issue last fall, pointing out that the county didn’t provide full mental health parity. That was because of budgetary constraints, LaBarre said.

At its Jan. 22, 2014 meeting, the board received a staff presentation about the possibility of offering such coverage. Colleen Allen, CEO of the Autism Alliance of Michigan, attended that meeting to answer questions and advocate for coverage. The board created a committee to explore the cost to the county for providing employee health insurance coverage for autism. Committee members were LaBarre, Felicia Brabec (D-District 4), and Ronnie Peterson (D-District 6). The committee’s charge was to (1) investigate the cost and sustainability of coverage of autism spectrum disorders; and (2) recommend a policy providing and funding coverage if the state reimbursement fund is exhausted.

The federal Mental Health Parity & Addiction Equity Act of 2008 mandates that any group plan with 50 or more members – like Washtenaw County government – must offer both medical and mental health benefits. Under more recent federal health care reform, there’s been an expansion of benefits, and mental health benefits are considered a mandatory part of basic health care, starting this year. However, autism isn’t included as part of that mental health mandate.

On the state level, in October 2012 a state of Michigan mandate took effect stating that all fully insured plans must provide coverage for the diagnosis and treatment of autism spectrum disorders (ASD). The county is not a fully insured plan, however. Because the county is self-funded, it was exempt from this state mandate.

The costs of treatment are estimated to be about $60,000 a year to cover a child with autism. The state of Michigan has made coverage a priority, and has started setting aside funds to reimburse organizations that provide coverage. In fiscal year 2012-13, $15 million was made available, with an additional $11 million in fiscal 2013-14. Of that, only about $500,000 has been expended on reimbursements. The program is handled by the Michigan Dept. of Insurance and Financial Services.

The state program provides for reimbursement of up to $50,000 per year per child between the ages of 0 to 6, up to $40,000 per year from ages 7-12, and up to $30,000 per year for ages 13-18.

County staff have estimated that offering the coverage would result in up to a 5% increase in medical expenses, or up to $1 million annually. This year, medical expenses are budgeted at about $20 million. The county is expected to be fully reimbursed by the state of Michigan for the amounts that are allowed under the autism program.

The resolution given initial approval on March 19 included two resolved clauses:

NOW THEREFORE BE IT RESOLVED that the Washtenaw County Board of Commissioners authorizes the implementation of the Autism Spectrum Disorder (ADS) rider to existing active and retiree as soon as feasibly possible through Blue Cross/Blue Shield of Michigan, providing mental health and physical health parity.

BE IT FURTHER RESOLVED that Washtenaw County commits to a review of claims paid and/or reimbursed on an annual basis as our individual experience is not yet known. Such review would occur prior to the annual review process with Blue Cross/Blue Shield to determine if such benefit (rider) would be continued in the next year of benefits.

Autism Coverage: Board Discussion

Yousef Rabhi (D-District 8) thanked the committee and staff for their work. He asked Diane Heidt, the county’s human resources and labor relations director, what percentage of costs the county could be expected to bear for this coverage.

Heidt described the annual payment to Blue Cross Blue Shield – of about $182,000 – as a kind of “permission slip” that would allow the county to offer the coverage. That amount will be pre-funded from the county’s medical fund reserves, and it will then be charged out to each county department based on the number of employees in each department – both general fund employees and non-general fund employees.

Employees that take advantage of the coverage would pay if there’s a deductible on their current insurance plan, or if there’s co-insurance, Heidt explained. The majority of employees pay 10% as co-insurance. She reminded the board that the administration is still negotiating with unions that represent about 300 employees at the sheriff’s office, so the benefits for those employees are different at this point.

Felicia Brabec (D-District 4).

The remainder of the claim would be paid by the county, with the expectation that the county would be reimbursed from the state, based on the age of the child that’s receiving treatment. The annual state reimbursement levels are $50,000 through age 6, $40,000 from ages 7-12, and $30,000 from ages 13-18.

Rabhi noted that Lansing is “a very dynamic place,” and he wondered what the impact would be if the state reimbursement program is eliminated. Heidt replied that currently about $25 million is available in the state reimbursement fund. The committee recommends that the county review the benefits and claims annually, to determine if the coverage would continue to be offered in the following year, Heidt said.

Rabhi noted that once the county offers a benefit, it’s hard to take that benefit away. If for some unforeseen reason there’s suddenly no money available from the state, he said, the county would need to evaluate if it’s a benefit that they can continue to pay for. But it’s hard to see the county removing that benefit, he said. Heidt stressed the importance of annually evaluating the county’s expenses, because at this point it’s unclear how many employees will take advantage of the coverage.

Rabhi supported offering coverage, but wanted to make it clear that it wasn’t a guarantee every year. He was concerned about what might happen if state funding disappeared, and what impact that would have on employees as well as on the county budget. He also noted that a lot of the county’s departments that get funding primarily from non-general fund sources are short on cash. What kind of burden will this coverage place on those departments? Heidt replied that of the $182,000 total, about $102,000 of that will be charged to non-general fund departments, based on the number of employees in each of those departments.

But this year, that $182,000 total would be pro-rated based on when the coverage begins, she noted – so that total amount will likely be only about $75,000 this year, since the coverage won’t be started until well into the year.

Rabhi said he wanted to be clear that the families who access this benefit aren’t a burden – that’s not what he meant. He was simply trying to understand the dollars that the county will be spending.

Conan Smith (D-District 9) asked about the $182,589 payment to Blue Cross Blue Shield, noting that it effectively doubles the cost of providing the coverage. He wondered what BCBS was doing with that money. Heidt replied that BCBS is charging that amount in anticipation of the claims that might be made. Based on whatever the county’s actual experience is with autism claims, that annual payment to BCBS might be less in the following year, she said. Smith asked what the dollars are used for within the insurance company. County administrator Verna McDaniel said that the basic understanding is that the money goes into an insurance pool, but beyond that, it’s not clear how it is allocated.

Smith said the issue of autism coverage didn’t arise because there’s state funding available for reimbursement. It came up because of the desire for mental health parity, and because many commissioners thought the county already provided autism coverage and were surprised when that wasn’t the case. Every other mental health issue is covered. Heidt noted that autism is the only mental health issue that doesn’t have coverage mandated by the state. Smith wondered how it’s possible that this relatively minor coverage is costing the equivalent of $15 per employee per month to add to the county’s health care costs. Heidt said it’s probably because there are so many unknowns.

Ronnie Peterson (D-District 6).

Smith asked how the cost of the autism rider compares to other riders that the county has with BCBS. Heidt said it’s been a long time since the county added a new rider, so she didn’t have those costs broken out. Smith replied that he “loved the Blues” and has been covered by that entity his entire life. But he wanted some sort of explanation about how BCBS calculates the autism rider. Heidt said she’d talk to the county’s BCBS agent to get more information.

LaBarre agreed with Rabhi about the county needing to go into this with “our eyes wide open.” The county can leverage state funds now, but it’s not a given in the future. LaBarre noted that some commissioners wonder why this isn’t being done as part of the budget reaffirmation later this year. It’s not without risk in terms of cost, he said, but the merits of doing it as soon as possible make it worth supporting.

Ronnie Peterson (D-District 6) said he hoped the county never takes back the benefits offered to employees. They should figure out how to finance this benefit, regardless of state aid. It’s about making a commitment to employees who have made previous sacrifices, he said.

Dan Smith (R-District 2) said he was happy to move this item forward for an initial vote. But because of the budgetary impacts it has, and the fact that the county is barely three months into a four-year budget, he hoped that it would come back to the board for final approval not on April 2 but rather as part of the board’s budget reaffirmation process later in the year. At that time, they’d have a better handle on the county’s finances for the year and how the county could fund this benefit, he said.

Felicia Brabec (D-District 4) thanked the staff for working on this issue, saying it was important to “right this wrong.” She agreed that it was important to figure out how to pay for the benefit if the state fund is eliminated, but it’s important to move this forward so that families who need this benefit can access it.

Brabec noted that Heidt is working on how families can get coverage for older children, from ages 18-26, who aren’t eligible for reimbursement from the state.

Outcome: Commissioners unanimously gave initial approval to offering autism coverage.

2013 Year-End Financial Update

County administrator Verna McDaniel introduced the year-end financial update by telling commissioners that “I think you’ll be pleased.” [.pdf of financial update]

Tina Gavalier, the county’s finance analyst, delivered the report. She noted that the audit is still in progress so these are preliminary results. It’s unlikely that anything will change drastically, she added.

From left: Washtenaw County finance director Kelly Belknap and finance analyst Tina Gavalier.

The county had a projected general fund revenue surplus of $2.356 million for the year. Surpluses in several areas contributed to that result, including intergovernmental revenue ($1.3 million, primarily due to payments in state revenue-sharing), fees and service revenue from the county clerk/register of deeds office ($591,000), and the sheriff’s office ($495,000).

On the expenditure side, the county spent $1.564 million less than budgeted. The bulk of that comes from $1.338 million in personnel savings from attrition, position vacancies, and planned reductions. Over $1 million of that was in the sheriff’s office, Gavalier reported, where there are 25 vacancies.

The total year-end surplus for the general fund was $3.92 million. Total revenues were $105.797 million, with total expenses of $101.876 million.

Looking ahead, Gavalier noted that there are several areas to monitor, including child care fund expenditures that are rising due to caseload and placements. [The child care fund is a joint effort between state and county governments to fund programs that serve neglected, abused and delinquent youth in Michigan. Fifty percent of the fund comes from state dollars.]

Other issues to watch that could have a financial impact include fringe benefit projections and trends, personal property tax reform, the possible legislative repeal of Act 88, and state revenue-sharing/county incentive program payments. Regarding Act 88, Gavalier noted that the county has budgeted $973,000 in revenues from an Act 88 levy in 2014, to fund economic development and agricultural-related programs. “So if that’s repealed, there are some decisions that will need to be made,” she said.

Gavalier outlined the next steps for budget-related action that involves the board. The 2014 equalization report will be presented in April, along with a year‐end audit and financial statement. Quarterly budget updates for 2014 will occur in May, August and November. And this fall, the board will make a budget affirmation, with possible amendments to the remaining years of the four-year budget that was adopted in late 2013, for the period from 2014 through 2017.

McDaniel told the board that the county was recently notified that it’s receiving a national Alliance for Innovation award for its four-year budget. [Former Washtenaw County administrator Bob Guenzel previously served on the board of that group, which is based in Phoenix.]

2013 Year-End Financial Update: Board Discussion

Conan Smith (D-District 9) asked Tina Gavalier for more details about the intergovernmental revenue line item. She replied that the surplus of about $1.3 million comes from combining federal, state and local government revenues going into the general fund. Most of that came from a $1.495 million surplus in state revenue-sharing. The county received $9,602,028 in state-revenue sharing in 2013, compared to the budgeted amount of $7,665,098. The $1.495 million surplus in state-revenue sharing was offset by a $238,046 shortfall in local government revenue.

The $1.495 million in state revenue-sharing reflects the first two payments for 2014 that were actually made in October and December of 2013. There will be six payments in total for 2014, including those two, she said, but the payments that were made in 2013 had to be recorded in that year. She described it as a “one-time windfall.”

Kelly Belknap, the county’s finance director, pointed out that the state and county are on different fiscal years. The state’s fiscal year runs from Oct. 1 through Sept. 30. The county uses a calendar year as its fiscal year. That difference resulted in the timing of the payments, she explained, and the way in which they are accounted for in the county’s budget.

Gavalier also noted that the state Dept. of Treasury issued a guidance letter (No. 2013-1) stating that revenue-sharing is no longer based on statewide sales tax revenue, but instead will be a state appropriation.

C. Smith asked that the upcoming steps in the budget schedule reflect a supplemental budget update in the May-June timeframe, to reflect the updated revenue projections that will be coming in the equalization report. The board would be looking to adjust the budget at that time, based on any revenue shortfall or surplus. When Gavalier replied that it would be part of the budget update in August, Smith stressed that it should happen earlier – in May or June.

Outcome: This was not a voting item.

Delinquent Tax Borrowing

In an annual action to help the cash flow of local governments in Washtenaw County, the county board was asked to give initial authorization to county treasurer Catherine McClary to borrow up to $30 million against the amount of delinquent property taxes in all of the county’s 80 taxing jurisdictions. [.pdf of delinquent tax resolution]

Washtenaw County treasurer Catherine McClary.

The estimated amount of delinquent taxes is lower than in recent years, possibly reflecting a recovering economy. Last year, the board authorized borrowing up to $40 million, and the treasurer’s office ended up actually borrowing much less.

After March 1, taxing jurisdictions – including cities, townships, schools systems and libraries, among others – turn their delinquent taxes over to the county, and are reimbursed for that amount. The county treasurer then assumes responsibility for collecting these delinquent taxes. This is a standard procedure that’s conducted annually at this time of year. The borrowed funds are used for cash flow purposes, to fund operations for the first half of the year.

Under the state’s General Property Tax Act, the county treasurer is required to collect delinquent taxes. Section 87 of the act allows the county to set up a revolving fund – which was done several decades ago – so that the county can borrow the estimated amount of delinquent taxes, then pay in advance to all the taxing jurisdictions the amount that they would have collected if there had been no delinquent payments.

Dan Smith (R-District 2) thanked McClary for making this happen, saying this was very helpful to the townships and other municipalities that can get all their taxes upfront and then settle up after properties are foreclosed.

McClary noted that foreclosures are going down, “which is very, very good news.” It also appears that there will be a slight drop in delinquent taxes, she said. Delinquent taxes are a leading economic indicator for both mortgage foreclosures and tax foreclosures, so that’s also good news, McClary said. There’s also been a definitive drop in forfeitures, which is the step immediately preceding a foreclosure.

Last year, the county had authorized the treasurer’s office to borrow up to $40 million, but there ended up being only $21 million in delinquent taxes, McClary said. And only $16 million was borrowed, because there was a small reserve in the county’s tax revolving fund – about $4 million. So a small amount of self-funding is possible, she said, which saves the county money. Approximately 4% of what the treasurer’s office borrows represents either interest or fees. “So any time we can reduce the amount of delinquent tax borrowing, we’re doing a favor for the taxpayers,” McClary said.

She noted that the $4 million in the tax revolving fund is the result of a county board decision. Commissioners could decide to put that money into a capital projects fund or the county’s general fund, she said, but they’ve chosen to keep it as reserves. That helps the county when credit rating agencies make their evaluations, she said. It would help more if there were more money in those reserves, she added.

McClary noted that the county board recently approved a new way to pay off debt incurred from bonding, typically for public works projects in local municipalities. [At its Oct. 2, 2013 meeting, the board authorized the change to allow local units of government to repay bonds early via the county’s delinquent tax revolving fund. The intent is to reduce interest rate payments while posing no financial risk to the county. At the same meeting, the board approved restructuring debt held by Bridgewater Township, which owed $585,000 on $1.095 million in bonds issued in 2004 to fund a sewer system.]

The treasurer’s office agreed to loan Bridgewater Township money to pay off the bonds, with the township repaying the treasurer’s office at a lower interest rate than it was paying for the bond debt, which was averaging 4.1%. The interest rate that is being used to repay the treasurer’s office is slightly above the average weighted yield that the county was getting on its portfolio, McClary reported, “so it’s a very good deal for the county coffers as well.”

McClary also told the board that she’s been working with Evan Pratt, the county’s water resources commissioner. That office has a lot of small bond issues for drain projects, in the range of $200,000 to $400,000. Depending on the size of the issue, they might be spending as much as half of any issue on fees and interest. If the $4 million in the delinquent tax revolving fund could be raised, she said, the county would gain more stability from the credit rating agencies and would be in a position to do more internal loans. She said she hasn’t yet made a formal proposal about that, but that’s where she’s headed.

Outcome: Commissioners gave initial approval to the authorization, with a final vote expected on April 2.

Treasurer’s Report

County treasurer Catherine McClary gave a report on investments in 2013. [.pdf of 2013 treasurer's report] [.pdf of 2012 treasurer's report]

Investment earnings were $637,866 for the year. That compares with $755,681 in 2012. Fees and interest on delinquent taxes totaled $3.72 million in 2013, compared to $5.046 million in 2012. Fees for dog licenses were $62,718 last year, up from $59,748 in 2012. And income from tax searches was $23,052 compared to $31,760 in 2012.

Chart showing three-year historical comparison of Washtenaw County investments.

Total cash and investments reported as of December 2013 was $145.226 million, down from $156.081 million at the end of 2012. The 2012 figure included $4.67 million in funds related to the county accommodations tax, which at that time was administered by the treasurer’s office. In October 2012, the board approved an ordinance change that shifted control over administering and enforcing Washtenaw County’s accommodation tax from the county treasurer to the county finance director.

McClary noted that the average weighted yield of the county’s investments was 0.476% in 2013, compared to the three-month Treasury benchmark of 0.07%.

McClary highlighted three other items during her remarks to the board. The social workers in her office – who work with residents with delinquent taxes – have been certified by the state Dept. of Human Services to do intakes for residents in a range of programs, including Medicaid and food stamps. Her office is also participating in the Step Forward Michigan program, which uses federal mortgage prevention funds to also prevent tax foreclosure. It’s the only state in the country to do that, she said.

Finally, McClary reported that property assessments are increasing. She told commissioners that she had prepared a brochure for residents about how to appeal their assessments.

Resolution of Appreciation for Pat Kelly

The March 19 agenda included a resolution of appreciation for former Dexter Township supervisor Pat Kelly. [.pdf of resolution]

Pat Kelly, former Dexter Township supervisor.

Board chair Yousef Rabhi (D-District8) began by wishing Kelly a happy birthday.

Rabhi noted that Kelly had stepped down from her role as Dexter Township supervisor, after serving in that role for 12 years. He said he had served on many boards and committees with her, and knows that she’s someone who cares about all residents of Washtenaw County. He read aloud the resolution, which highlighted Kelly’s work on the Washtenaw Area Transportation Study, the Washtenaw County Transit Master Plan, Washtenaw County Police Services Steering Committee, and several other public entities.

The resolution also noted that Kelly “led Dexter Township’s response to a devastating tornado in 2012 and worked tirelessly and diligently to establish communication channels with affected residents, safely coordinate volunteer efforts to aid in the massive clean-up, and, with significant and important assistance from the County and Road Commission, supported and led township efforts to remove debris and fallen trees from private property at little or no cost to residents…”

Kelly was visibly emotional when she responded, saying she was touched by the recognition. Almost two years ago, she said, she’d stood at the same podium and thanked commissioners for helping her community after the 2012 tornado. “It’s been a good partnership,” she said.

Conan Smith (D-District 9) praised Kelly’s negotiating skills in representing her township as well as the entire county. When he first was elected, Smith said, the tension between the county and townships over police service contracts, provided through the sheriff’s office, seemed insurmountable. “It seemed like we were going to be at war for a generation,” he said. At one of his most frustrating moments during his first term, Smith recalled, Kelly called him and “very gently explained the interests that your colleagues in the townships had and concerns in a way that just opened my eyes to the possibility of a real partnership.” The county could not have reached a resolution without Kelly’s leadership on that issue, he said. “You’ve been a calming force in huge turmoil, and a passionate deliverer of messages without creating conflict in that process.”

Smith said he knew the county would find some way to keep her deeply engaged with policy work and community leadership.

Outcome: The board unanimously passed a resolution of appreciation for Pat Kelly.

Report from Lansing Lobbyist

Lobbyist Kirk Profit and his colleague Gary Owen at Lansing-based Governmental Consultant Services Inc. gave a presentation to the board about action in the state government that might impact Washtenaw County. GCSI is the lobbyist for the county and several other local governments, including the city of Ann Arbor.

The state budget is actually in good shape, Profit said, with about $52 billion in expenditures and a surplus of about $970 million. He commended the state legislators who represent districts in Washtenaw County, saying that they represent the local interests very well, even though they’re in the minority, as Democrats. He said it was great to have the state Senate majority leader representing part of Washtenaw County as well. [Sen. Randy Richardville, a Republican, represents District 17, which includes six southern and central townships in the county, and the city of Saline.]

Kirk Profit, a paid state lobbyist for Washtenaw County, and commissioner Felicia Brabec (D-District 4).

Revenue sharing is moving in the right direction, Profit said. This year the county will get about $5.5 million, and he expected the county would get about $6.9 million in 2015. The state doesn’t have a good track record in terms of the county’s ability to count on state revenue-sharing, he said. It’s good to understand that going forward.

He noted that the personal property tax referendum will be on the ballot in August of 2014. [The tax is being phased out starting in 2014 through 2022. As part of that change, a statewide voter referendum is slated for Aug. 5, 2014 to ask voters to authorize replacement funds from other state revenue sources.]

Eliminating the PPT removes about $576 million statewide, which primarily are revenues that fund local municipalities. The voter referendum would authorize a use tax to be collected by a new Michigan Metropolitan Areas Metropolitan Authority, which would distribute the funding by statute.

Profit noted that TIF (tax increment finance) capture is “hot” in Lansing right now. State Rep. Eileen Kowall has drafted legislation that addresses several issues related to TIF, including the ability to opt out, resetting the base for TIF capture, and sunset clauses. “It’s going to receive a lot of attention and a lot of dialogue,” Profit said, but it wasn’t clear whether it will pass.

While noting that the state budget is in great shape, Profit said there are also some areas that have holes, including health care funding, education and roads. Some legislators would prefer to give the entire surplus back to taxpayers as refunds, he noted. Profit said he wasn’t sure how these issues will be resolved, but the legislature will be addressing these matters over the next 60-90 days.

The legislature recently approved about $215 million in supplemental funding for roads, which will bring about $1 million to Washtenaw County, Profit said. The city of Ann Arbor will get about $450,000. Other cities and villages will get much less, he said. Profit praised Gov. Rick Snyder, saying that Snyder is “right there on roads” and had demanded that the legislature produce funding for roads.

The southeast Michigan regional transit authority (RTA), which includes Washtenaw County, received close to $2 million for operating expenses to fund it until an anticipated millage vote in 2016, Profit said.

Profit told the board that Act 88 is under some attack, with legislation introduced that would repeal it. [The county’s position is that it is authorized to collect up to 0.5 mills under Act 88 without seeking voter approval. That’s because the state legislation that enables the county to levy this type of tax was enacted in 1913, which predates the state’s Headlee Amendment. The county currently levies 0.07 mills under Act 88.]

Profit said that GCSI’s Gary Owen was working aggressively to make sure legislators understand the significance of Act 88 funding for Washtenaw County. Profit said the target of the repeal legislation is Gratiot County.

The state’s supplemental budget included $750,000 for indigent defense, and Profit credited Washtenaw County public defender Lloyd Powell for successfully advocating for that funding.

Collective bargaining continues to draw a lot of attention in Lansing, Profit said. He also noted that GCSI is working with judge Donald Shelton and Dan Dwyer, court administrator of the Washtenaw Trial Court, on implementing e-filing statewide.

Breastfeeding in public is another issue that GCSI is following, Profit said. He noted that state Sen. Rebekah Warren introduced legislation that was passed in the Senate to guarantee a woman’s right to breastfeed in public places.

Profit also mentioned interest at the state level regarding the Freedom of Information Act and Open Meetings Act. Pending legislation “would dramatically limit your ability recoup costs that you might incur for FOIA responses, and also perhaps to dramatically limit your ability to have certain protected conversations from open meetings requirements.” Profit said GCSI would work closely with corporation counsel Curtis Hedger on that.

Corporation counsel Curtis Hedger and Felicia Brabec (D-District 4).

Profit highlighted an increase in state arts funding from $2 million to $10 million, which translates into about $590,000 coming to Washtenaw County for a variety of arts organizations.

Gary Owen of GCSI said he’d been working with Evan Pratt, the county’s water resources commissioner, regarding action at the Michigan Dept. of Environmental Quality (MDEQ) that will affect the Pall-Gelman 1,4 dioxane cleanup in Washtenaw County. The MDEQ is updating its cleanup standards, and Mike Gebhard has been participating in that process and is on the MDEQ’s toxicity committee. Gebhard is a former environmental analyst/hydrogeologist with Washtenaw County who now works for the county’s information technology department.

The MDEQ will make a recommendation to the state’s Office of Regulatory Reinvention in July, which will include the new standards, Owen said, but those recommendations will be known before then. “It will most likely be a drastic difference than what it is today, but the process will determine that,” he said.

Regarding the Michigan Dept. of Natural Resources trust fund, Owen cited the county’s success in getting grants in the past few years. He credited Bob Tetens, director of the Washtenaw County parks & recreation commission, with that success, which Owen said is probably unparalleled across the state. Owen cited several grants, including $300,000 for the Rutherford Pool in Ypsilanti, $300,000 for the Ann Arbor skatepark, and over $1 million for the acquisition of 54 acres near Domino’s Farms.

Regarding the possible repeal of Act 88, Owen said GCSI is working to make sure that Washtenaw County’s interests are addressed.

Report from Lansing Lobbyist: Board Discussion

Dan Smith (R-District 2) said the comments regarding Act 88 are “misplaced.” It’s not about what the money is spent on in Washtenaw County, he said. “It’s about how the money is collected, and what the law says that money can be spent on.” In his opinion, Smith said, the Washtenaw County board hasn’t done its proper due diligence, “despite my repeated requests.”

Regarding roads, D. Smith noted that legislation has been introduced to repeal the sunset clause on the ability of a county board of commissioners to absorb the duties and responsibilities of a road commission. He asked for a prognosis of that bill. Kirk Profit replied that the outcome is hard to read. GCSI will continue to watch it, but Profit didn’t think legislators had made up their mind yet.

Conan Smith (D-District 9).

D. Smith noted that a subcommittee of the board had recently finished a process regarding what the county would do, but the recommendation hadn’t yet been brought forward to the full board. A working session on that is scheduled for April 17. But Smith’s take on the bill is that it would provide the board with a lot of tools, while forcing the board to dramatically alter things right now. It would be productive to have a longer time to discuss how to best manage this critical transportation infrastructure, he said, noting that it’s not something that can quickly be decided. People are very resistant to change, Smith said, and need more time to work on it. He hoped the legislature would repeal the sunset clause.

Conan Smith (D-District 9) agreed with Dan Smith on the road commission issue. Removing the sunset wouldn’t mean that the county would get rid of the road commission, he said. Statewide, not many counties have taken advantage of the current ability to do that. But he hoped that option would be made available for a longer period.

Regarding Act 88, C. Smith said he had a different perspective from Dan Smith. But he thought they might agree on the fact that Act 88 is just one response that the county has to a “broken municipal finance system.” The state took millions of dollars of state revenue-sharing away from the county over the past several years. If that hadn’t happened, he said, perhaps the county wouldn’t be scraping to find other revenue sources.

C. Smith said he understood why some people want to repeal Act 88, but they should be beating the bigger drum of fixing the system. Lots of cities are on the cusp of financial insolvency, he noted, so he’d advocate not to mess with Act 88 until this bigger problem is fixed.

Yousef Rabhi (D-District 8) echoed C. Smith’s sentiments on Act 88. The county needs tools to address the needs of citizens, Rabhi said, “and right now the state is just tying our hands.” Personal property tax repeal is another example, he said. Rabhi said that Act 88 funding works and benefits the community, and he didn’t think legislators understood that.

Urban County Plan Public Hearing

The March 19 meeting included a public hearing to give input for the Washtenaw Urban County 2014-15 action plan. The hearing was set to solicit feedback about proposed projects and programs that the county intends to implement with federal funding – through community development block grant (CDBG), HOME and emergency shelter grant programs – from July 1, 2014 through June 30, 2015. [.pdf of action plan]

Computer screen: Notes being taken by Brett Lenart of the county’s office of community & economic development during a public hearing on the Urban County action plan.

The Urban County is a consortium of Washtenaw County and 18 local municipalities that receive federal funding for low-income neighborhoods. Members include the cities of Ann Arbor, Ypsilanti and Saline, and 15 townships. “Urban County” is a designation of the U.S. Dept. of Housing and Urban Development (HUD), identifying a county with more than 200,000 people. With that designation, individual governments within the Urban County can become members, entitling them to an allotment of funding through a variety of HUD programs. The Urban County is supported by the staff of Washtenaw County’s office of community & economic development (OCED).

Two HUD programs – the Community Development Block Grant and HOME Investment Partnership – are the primary funding sources for Urban County projects.

One person – Thomas Partridge – spoke during the public hearing. He said the Urban County organization is isolated, like many county organizations. Meetings are held at locations outside of Ann Arbor and aren’t televised on the Community Television Network, he said. The body should be very prominent, Partridge said, because it gets funding for affordable housing. But that funding is under attack, he noted, and more financing from the private sector is needed. Homelessness can’t be eliminated without more attention to this issue.

Thompson Block Brownfield Public Hearing

The board agenda included a resolution to set a public hearing for input on the brownfield development plan of the Thompson Block redevelopment in Ypsilanti. The street addresses for the block are 400-408 N. River St. and 107 E. Cross St. The hearing will be held at the county boardroom in downtown Ann Arbor, 220 N. Main, during the April 2 meeting, which begins at 6:30 p.m. [.pdf of staff memo]

Outcome: Commissioners voted to set the public hearing, over dissent from Dan Smith (R-District 2).

Communications & Commentary

During the March 19 meeting there were multiple opportunities for communications from the administration and commissioners, as well as public commentary. In addition to issues reported earlier in this article, here are some other highlights.

Communications & Commentary: Regional Transit Authority

Jim Casha spoke about the southeast Michigan regional transit authority (RTA). He lives in Canada, and noted that Ann Arbor reminds him of Canada – “except for the roads.”

He’d attended the recent Michigan senate transportation committee hearings in Lansing, and listened to the RTA board chair, Paul Hillegonds, ask for more money for that organization. He also attended the transportation appropriations committee meeting and heard Amtrak’s presentation about service between Chicago and Detroit, through Ann Arbor.

From left: Jim Casha and county commissioner Ronnie Peterson.

Casha said he’s still confused about why the RTA board isn’t making a fight for the 163-acre state fairgrounds. He’d just attended the RTA board meeting, and he thought that RTA board members are confused as well. One of the big supporters of the state legislation that created the RTA, state Sen. John Pappageorge, is a “military guy,” Casha said. “He understands that it’s always cheaper to hold what you have than to retake what you’ve lost – and there’s no reason to give up the fairgrounds.” Even if the fairgrounds turns out not to be a great property to own, though Casha said he thought it was, there’s no reason to give it up now. “We should retain it and evaluate it,” he said.

The situation is rather perilous, Casha said. He reported that Hillegonds had been surprised by the lack of knowledge that state legislators had regarding the RTA. Casha found that the same thing was true with the state fairgrounds. They pass legislation in Lansing, but then don’t keep up with its impact, he said.

Casha asked commissioners to talk with the state legislators and with Washtenaw County’s representatives on the RTA board to keep people informed about what’s happening. [The two RTA representatives from Washtenaw County, who were appointed by the county board, are Liz Gerber and Alma Wheeler Smith, the mother of county commissioner Conan Smith.] Legislators are making some serious mistakes that could seriously impact the ability to have a regional transportation system, Casha said.

Later in the meeting Casha spoke again. At the recent transportation appropriations committee meeting, the RTA presented documentation showing that state legislation allows for the RTA to generate revenue from the sale, exchange, mortgage, lease or other disposition of property acquired by the authority, he said. So his question was: Why doesn’t the RTA take advantage of it? One reason is that the RTA has been misled by people in the governor’s office, Casha contended. There was misinformation, he said, and the state fairgrounds was transferred to private individuals. “It’s definitely not a done deal yet,” Casha said. There are ways out of any legal contract, he added.

Casha noted that the Michigan Land Bank has a new director, “and maybe she has a different opinion of what the land bank’s done so far with this land.” The state owes it to the people in the four-county RTA district to look after their interests in this matter.

Communications & Commentary: Roads in Manchester

Allison Tucker of Manchester, who had spoken to the board at its Feb. 19, 2014 meeting about the GED (general education diploma), began by reporting that the Washtenaw Community College’s adult transitions program recently secured $3,000 in funding. It reinstated her faith that one person can make a difference. But she was there that night to talk about the condition of roads in Manchester. She had hoped to address commissioner Alicia Ping (R-District 3), whose district includes Manchester, but noted that Ping was absent. There are a lot of potholes, and many of them are deep, Tucker said. The situation could kill someone, she said. For smaller communities, it’s difficult to have funding for plowing and salting the roads, she noted. Tucker hoped that the county could help, so that someone like her who travels to class wouldn’t face that problem.

Communications & Commentary: Thomas Partridge

Thomas Partridge addressed the board during both opportunities for public commentary. He urged commissioners to come up with a fundamentally sustainable agenda for county government, with top priorities of eliminating homelessness, funding affordable housing and countywide public transportation, and supporting human rights. He said Washtenaw County has a programmed way of doing business that leaves out a substantial number of residents in making decisions about these issues.

Present: Felicia Brabec, Andy LaBarre, Kent Martinez-Kratz, Ronnie Peterson, Yousef Rabhi, Rolland Sizemore Jr., Conan Smith, Dan Smith.

Absent: Alicia Ping

Next regular board meeting: Wednesday, April 2, 2014 at 6:30 p.m. at the county administration building, 220 N. Main St. in Ann Arbor. The ways & means committee meets first, followed immediately by the regular board meeting. [Check Chronicle event listings to confirm date.] (Though the agenda states that the regular board meeting begins at 6:45 p.m., it usually starts much later – times vary depending on what’s on the agenda.) Public commentary is held at the beginning of each meeting, and no advance sign-up is required.

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The appointments included naming former Superior Township supervisor Bill McFarlane to the Washtenaw County road commission board, to fill the seat left vacant by the recent death of long-time road commissioner Fred Veigel. The remainder of that six-year term runs through Dec. 31, 2014. Unlike most other county appointed boards, road commissioners receive annual compensation of $10,500.

McFarlane was among 10 applicants for the position. Others who applied included former county commissioner Rob Turner; Mike Henry, chair of the Ann Arbor Democratic Party; and University Bank CEO Stephen Ranzini.

Nominations are made by the board chair. The current board chair is Yousef Rabhi (D-District 8). Before the vote on the road commission appointment, there was discussion about changing the process so that interviews with applicants would be held at a public meeting.

Andy LaBarre (D-District 7) noted that the road commission would be the topic of a April 17 working session, which he chairs. He suggested continuing discussion of the issue at that time. The working session will also include a report from the subcommittee that is making recommendations on the future of the road commission. For additional background, see Chronicle coverage: “No Major Change Likely for Road Commission.”

Rabhi described the process of nominating a new road commissioner as a difficult one, and highlighted the need for a five-member road commission. Currently the road commission board consists of three members. It’s an issue that Rabhi plans to bring up at the April 17 working session.

Several other appointments were made on March 19 in a separate vote:

• Accommodations ordinance commission, for a term ending Dec. 31, 2014: Andy LaBarre (D-District 7).
• Agricultural lands preservation advisory committee, for a term ending Dec. 31, 2014: Erica Bloom (environmental/conservation group/natural resources professional).
• Workforce development board, for terms ending Dec. 31, 2016: John Haberthy (private sector) and Matthew Sandstrom (private sector).

In addition, five appointments were made to the Act 88 advisory committee, for terms ending Dec. 31, 2014. Three county commissioners – Conan Smith (D-District 9), Alicia Ping (R-District 3) and Ronnie Peterson (D-District 6) – were appointed, along with citizens Todd Clark and Art Serafinski.

Action on appointing the Act 88 advisory committee had been originally considered at the board’s Feb. 19, 2014 meeting. The item was postponed after Ronnie Peterson (D-District 6) raised concerns over the policy governing the committee’s role. The committee had been created at the board’s Nov. 6, 2013 meeting, as part of a broader policy to help the board allocate revenues levied under Act 88 of 1913. No appointments had been made at that time, however. The county levies the tax to fund economic development and agricultural activities, including Ann Arbor SPARK. [.pdf of March 19 staff memo on Act 88]

This brief was filed from the boardroom of the county administration building at 220 N. Main St. in Ann Arbor. A more detailed report will follow: [link]