New Plan Proposed for County Infrastructure

A reorganization of Washtenaw County facilities is underway, spurred in part by excess building capacity and a push to cut expenses. As a result, some departments and programs will be relocated, and the long-time leasing of some sites might be eliminated.

The Washtenaw County board of commissioners were briefed on these plans at their most recent working session by Greg Dill, infrastructure management director. The March 8 briefing included an update on information technology infrastructure, which Dill also oversees.

Washtenaw County owns about 1 million square feet of building space and about 62 miles of fiber network. Building operating costs in 2010 – the most recent data available – totaled $9.979 million, including $1.62 million for utilities and $965,800 for security, primarily at the county courthouses.

Dill told commissioners that the goal is to be more strategic about the use of facilities, in part by maximizing occupancy at county-owned buildings and minimizing the amount of leased space. The county pays about $500,000 annually for two major leases in the city of Ypsilanti, both used for Michigan Works workforce development programs: at the KeyBank building at 301 W. Michigan Ave., and at 300 Harriet St. on the south side of town.

The space plan Dill and his staff are developing includes making better use of the county’s Zeeb Road facility, which has been partially vacant. In the short term, offices of the Washtenaw Community Health Organization will move there, freeing up space in their current location – at 555 Towner in Ypsilanti – for possible use by the workforce development programs. In the long term, the Zeeb Road site might be the future home for 911 dispatch operations, which the county recently consolidated with the city of Ann Arbor.

Two other properties are being evaluated for possible sale: (1) the vacant building and land on Platt Road, site of the former juvenile justice center; and (2) the Head Start building at 1661 Leforge in Ypsilanti. The county is relinquishing the administration of Head Start later this year.

Dill also talked about his goal of cutting annual operational costs by $1 million, through a combination of eliminating leases and creating energy efficiencies – migrating to LED lights, for example. Efforts to cut energy expenses were supported by several commissioners, as was the plan to hire an energy manager for the county. Commissioner Leah Gunn noted that several years ago the county had invested heavily in what’s known as the Chevron project, a multi-year contract aimed at cutting energy costs. She asked for an update on the effectiveness of that effort, which Dill said he’d provide.

County Infrastructure: An Overview

Greg Dill, infrastructure management director, has been working with his staff for several months on a space plan for  county operations. The March 8 briefing was his first formal report to the board since he was appointed to this position in September of 2011, overseeing the county’s facilities and information technology infrastructure. Dill is also part of a recently approved cross-lateral team of four top managers who report directly to county administrator Verna McDaniel and handle responsibilities previously assigned to the deputy administrator, a currently unfilled position.

Washtenaw County owns about 1 million square feet of building space and about 62 miles of fiber network. Dill told the board that since the early 2000s, the county has focused on adding capacity. Their building infrastructure has grown 25% since then. Now there’s more space than the county needs, he said. [link to .pdf map of county-owned and leased facilities][link to .pdf of detailed building inventory]

Dill also noted that facility considerations haven’t been part of the budget planning process, and the commissioners – as policymakers – haven’t received much feedback about that part of the county’s operations. “We hope to change that,” he said, with a charge to align the county’s infrastructure with the board’s policy direction, with internal and external stakeholders, and with declining financial resources.

The county needs to take a strategic approach to its infrastructure planning, Dill said, using a data-driven process that’s in line with the county’s broader goals. The approach needs to look at all infrastructure, including technology like computers, software, and both the wired and wireless networks.

There are opportunities for cost savings, he noted. Building operating costs in 2010 totaled $9.979 million, including $1.62 million for utilities and $965,800 for security, primarily at the county courthouses. The ability to find savings – in cutting energy costs, for example – will free up those financial resources to be used elsewhere, Dill noted. The county will be hiring an energy manager to focus on that effort, he said.

Dill outlined several initiatives for 2012, including a comprehensive building space plan; completing renovations at the downtown Ann Arbor courthouse; determining the future of the former juvenile justice center on Platt Road, which has been vacated; and enhancing security for the county’s technology systems, which is becoming a “nightmare,” Dill said.

There are several goals in developing a comprehensive building space plan, Dill said. He hopes to maximize occupancy at county-owned buildings, and minimize the amount of leased space. The county has two major leases in the city of Ypsilanti, both used for Michigan Works workforce development programs: at the KeyBank building at 301 W. Michigan Ave., and at 300 Harriet St. on the south side of town.

Other goals include finding cost savings, taking advantage of departmental consolidations or collaborations to make changes in infrastructure, and improving the delivery of county services to residents.

The space plan under development focuses on four county “campuses,” Dill said: (1) the eastern campus, primarily 555 Towner, (2) the downtown Ann Arbor campus, including the Annex building at 110 N. Fourth, (3) the western campus, including the 705 Zeeb Road service center, and (4) the southern campus, including the former juvenile justice center at 2270 Platt.

There are two major leases on the eastern campus, he said, which are significant in terms of contract price. [Dill did not name those locations and did not mention the lease amount in his presentation. The building inventory report identifies the leased space as the KeyBank building at 301 W. Michigan Ave. and the 300 Harriet St. facility. Respond to a follow-up query from The Chronicle, corporation counsel Curtis Hedger provided more details about the leases. The KeyBank lease is $285,000 annually, and ends July 30, 2012. The Harriet Street lease runs through Oct. 31, 2014 at $150,000 annually, plus an $80,000 annual charge to cover taxes, trash, janitorial, utilities and other expenses.]

Dill told commissioners that he hopes to find space for programs within existing county-owned facilities – there are buildings that are under-utilized at this point. Ideally, he said, vacancy should be at about 80%, which would allow for sufficient flexibility to accommodate growth and restructuring.

In 2012, the space plan will include relocating the office of community and economic development (OCED), which was recently formed as the consolidation of three separate departments. Decisions will also be made about the former juvenile justice facility at 2270 and 2260 Platt Road, which includes a vacant 42,320-square-foot building on 10 acres of land.

In addition, staff of the sheriff’s office will be moving from the correctional facility at 2201 Hogback to the nearby 4101 Washtenaw facility, where offices for the sheriff’s Community Corrections division are located.

Major changes will also occur this year at the Zeeb Road building in Scio Township, Dill said. The office of the water resources commissioner – Janis Bobrin and her staff – will move from the second floor to the first level. That will allow the Washtenaw Community Health Organization (WCHO) to move into the second floor.

The Zeeb Road building would also be a perfect place for combined dispatch services and emergency services, because of the I-94 freeway access, Dill said. And there’s space available for special vehicle storage at that site as well, he said. Those possibilities will be explored in 2013 and beyond.

Also in the intermediate term is the status of the county-owned Head Start building at 1661 Leforge in Ypsilanti. Built in 2003, the 17,500-square-foot building on 10 acres of land is tied to the early childhood program, which the county has managed for four decades but is relinquishing later this year. Dill said the county needs to start making plans for the disposal of that asset, in case that’s the decision that the administration and board make.

Looking even further ahead to 2015 and beyond, Dill said he plans to take a strategic look at the county’s parking needs, the 14A District Court in Saline, and energy/sustainability issues, among other things.

Dill also reviewed goals for the county’s technology plan, which includes reducing long-term operating costs, and increasing reliability. Network security will remain an important priority. He noted that the county’s 62 miles of fiber network, connecting all of the county’s major campuses, also creates opportunities for collaboration and possible revenue, with other entities leasing the network. Dill estimated the county would see a return on its tech infrastructure investment within nine years.

Dill concluded by noting that the next steps for the space plan include incorporating the board’s feedback, and continuing to address identified priorities. He told commissioners that he plans to return to give regular updates at future working sessions.

County Infrastructure: Board Discussion

Commissioners asked a range of questions regarding the county’s infrastructure. This report organizes the discussion by topic.

County Infrastructure: Board Discussion – Departmental Moves

Conan Smith asked for more details about departmental moves that are already in the works. Dill explained that at the 705 Zeeb Road building, the staff of the water resources commissioner will move from the second to the first floor. The Washtenaw Community Health Organization (WCHO) will move into the second floor, relocating from their current offices at 555 Towner in Ypsilanti.

The Washtenaw Area Transportation Study (WATS) will relocate from the Zeeb Road building, where it leases space from the county, into another county facility – most likely the Annex building at 110 N. Fourth in downtown Ann Arbor. Administrative staff for the office of community and economic development (OCED) will likely move out of the Annex to the Learning Resource Center at 4135 Washtenaw.

With WCHO leaving the 555 Towner building, it frees up space there for the possibility of the workforce development staff to move out of leased offices and into Towner, Dill said.

Smith asked whether these relocations took employees into consideration, in terms of their travel to work. Dill replied that his staff works in partnership with other departments in looking at these space options, trying to take a holistic approach. If the moves are as strategic as possible, he said, that will minimize the need for future relocations.

Smith noted that at the Zeeb Road building, WATS is located next to the Washtenaw County Road Commission, which has a facility next door at 555 Zeeb. He was concerned that WATS would be moving away from its core function. He also wondered about the impact of OCED’s move out of downtown Ann Arbor.

Dill said the WATS move will actually assist them in meeting their federal mandates. Commissioner Yousef Rabhi elaborated, saying that the WATS director has been concerned about public accessibility, because the Zeeb location isn’t on a bus line. That issue will be resolved when WATS moves to downtown Ann Arbor, which is accessible via public transit.

Conan Smith responded to Rabhi saying that it seemed to him like a weak reason. He said he was more interested in the 300 hours that the staff spends on operational issues, not the three hours they spend in public meetings.

County Infrastructure: Board Discussion – Technology

Alicia Ping thanked Dill for the briefing – as a relatively new commissioner, she said, it was great information to have. She also praised the idea of merging the building and IT infrastructure into one department, calling the move “genius.”

Dan Smith, who works in the software industry, asked if the county operates all 62 miles of fiber network mentioned in the report.

Andy Brush, the county’s IT director, said that county staff operates and monitors the entire network. It’s connected to the Merit Network – an Ann Arbor-based nonprofit that operates a statewide computer network – as well as to the city of Ann Arbor’s fiber network. Other governmental entities are interested in possibly leasing capacity from the county’s network, Brush said, including Livingston County and the state of Michigan.

In a follow-up email to The Chronicle, Brush elaborated on the leasing possibilities. The county is in conversations with the state about leasing fiber that would allow the state’s network to provide internet connections to state offices in Washtenaw County. It would allow the state potentially to lower costs and access higher bandwidth, Brush said.

Livingston County is also looking to connect its fiber network to the county’s network, Brush wrote. This would create opportunities for IT partnerships that aren’t possible now, and would allow Livingston County to connect to Lansing through a connection on Merit’s network.

At the March 8 briefing, Dill noted that in addition to managing the fiber network, the county’s IT staff also supports over 240 server-based applications, and about 1,600 computers.

Conan Smith said it’s important to understand that IT infrastructure isn’t any different than road infrastructure. It deserves the same kind of attention as other facilities.

County Infrastructure: Board Discussion – Energy

Dan Smith noted that with about $10 million in annual operating costs, finding just 10% in efficiencies would equate to $1 million in savings. Dill said he hopes to achieve that goal in 2013. [He indicated that some of the savings would come through eliminating leases – a cost not calculated into the operating expense total that was provided to the board.] D. Smith noted that although there are often upfront costs involved, the return on investment (ROI) is worth it. He asked how many years it would take to realize the ROI for some of these energy efficiency moves. Dill said it runs the gamut, and they’ll be measuring those savings.

Yousef Rabhi said the topic of energy touches at the heartstrings of his beliefs. The county needs to be at the forefront of energy efficiency and alternative energy as much as it can, he said, and he was glad to hear that Dill is on board with that. He also supported hiring an energy manager, noting that the city of Ann Arbor has someone in that position. [Andrew Brix is program manager for the city's energy office. Update: Brix left that position earlier this month. The city plans to hire a replacement.]

Dill replied that in the next update he plans to give, commissioners will hear more about the county’s energy initiatives. Plans are in the works to “green” the county’s infrastructure, he said. That might include installing solar panels on buildings with flat roofs, for example, or switching to LED lights. There are many ways to reduce the county’s carbon footprint as well as cut operating costs, Dill said. The county can also be a leader in helping other local government with these efforts, he added.

Rolland Sizemore Jr. observed that flat roofs at the Annex and circuit court buildings could also be made available for employees to take breaks outside. He said he’d like to get employee input on that.

Leah Gunn noted that several years ago, the county invested in what’s known as the Chevron project – a multi-year, multimillion-dollar effort to cut energy usage in county facilities. It would be good to know how that’s paying off, she said.

By way of background, the board was last briefed on the Chevron project at a May 20, 2010 working session. In the summer of 2004, the board authorized a $6.088 million long-term contract with Chevron Energy Solutions. The company’s efforts under the contract, financed by a 20-year bond, consisted of 26 energy-efficiency projects at 18 county facilities. The projects included replacing boilers and chillers, installing new controls for HVAC equipment, replacing air handlers and rooftop units, upgrading lighting and adding insulation, among other things. Chevron also agreed to track energy usage for four years after their work was completed – that tracking period ended in July 2010.

At the March 8 working session, Rob Turner noted that he works as an electrical contractor, and energy savings is one of the biggest aspects of his job. But there needs to be balance, he said. Alternative energy doesn’t provide the biggest return on investment, he said. The biggest savings come from energy conservation. He noted that the Chelsea school system, where he served on the school board for nine years, took out a bond to invest in conservation measures, including lighting systems and window replacements. In 2010, the district spent the same amount on energy as it did in 2004 – despite significant increases in the cost of energy.

Turner also supported hiring a county energy manager, saying that the position will pay for itself through savings in energy costs.

Later in the meeting Rabhi responded to Turner’s remarks. he noted that the dollar return on energy investment is important, but it’s also important to recognize the value of reducing the county’s carbon footprint. It might not be of immediate importance in terms of finances, but it’s of long-term value for the future of Earth, he said.

In response to a query from Rabhi, Conan Smith noted that the board had created an energy committee. [The committee was created in December 2011, to provide direction in developing a county energy policy. Having such a policy is a condition to receive federal Energy Efficiency and Conservation Block Grants. The board appointed commissioners Rob Turner, Alicia Ping, Wes Prater and Yousef Rabhi to the committee, but it has not yet met.]

Rabhi suggested that the committee work with the new energy manager and give input on efforts in that area. Dill indicated that he’s working closely with Tony VanDerworp, who has overseen the county’s energy programs.

County Infrastructure: Board Discussion – Leases

Alluding to a comment made earlier in the meeting by Alicia Ping, Leah Gunn told Dill that old commissioners like her also find this information valuable – the remark drew laughter from her colleagues. Gunn then said she wanted the county to get out of leased space. The county should only lease a facility if it’s absolutely necessary, she said.

Ping also voiced her support for eliminating leases – she said she thought it went without saying. Dan Smith echoed that sentiment, saying he was glad the county is moving in that direction.

Rob Turner serves with Rolland Sizemore Jr. on the space plan committee that’s been working with Dill and his staff. Turner said that he and Sizemore have been clear about the desire to reduce the number of leases, but that it needs to be handled in a wise way so that residents maintain access to services.

Felicia Brabec agreed with the goal of eliminating leases, but wanted to make sure that residents who use the services at these locations won’t be impacted. Dill said the main thing is to make sure that any new location is also located on a bus line. Programming aspects are key in making decisions about any of these moves, he said. In almost all cases, access will be improved.

County Infrastructure: Board Discussion – Dispatch

Felicia Brabac asked for more information about 911 dispatch moves. Didn’t the county dispatchers relocate recently? she asked. [By way of background, county dispatchers co-located to a joint dispatch operation at the city of Ann Arbor's #1 Fire Station in 2010. Last year, both the city council and the county board approved consolidation of those operations – the city is contracting with the county, which will manage dispatch for both entities.]

Dill said the long-range plan has always been to move into county-owned space, and the Zeeb Road facility is the most logical location. There wasn’t a specific timeline associated with this move, he said. It’s something that needs to be discussed in greater detail.

Dan Smith recalled that new equipment would be needed for the combined dispatch operations, and clarified with Dill that a future move to Zeeb Road would likely be keyed to bringing that new equipment online.

Dill confirmed that a key decision point will come when the dispatch operations, managed by the sheriff’s office, will replace their phone system. It’s important to coordinate the financial resources for a move, he said, working with the sheriff’s office and the city of Ann Arbor.

County Infrastructure: Board Discussion – Head Start

Felicia Brabec asked for more information about the Head Start building. By way of background, the county is turning over the Washtenaw Head Start program to federal officials, a move that commissioners had approved last year as part of the budget process. The county will end its 46-year affiliation with Head Start on July 31. The county owns the Head Start building at 1661 Leforge Road in Ypsilanti. It owes about $2.6 million on the bond and makes $167,000 in bond payments annually at the building. The bond payment schedule runs through 2022.

Dill said his staff is looking at several options for the building. The county needs to be able to respond to a variety of scenarios – that might mean selling the building, he said. [Federal officials are handling the process of finding another entity to manage Head Start – possibly the Washtenaw Intermediate School District.] The county administrator has been provided with information that would allow the county to market the building, if that decision is made. Dill’s staff is also prepared to continue operating the building, if it is leased to the next entity that runs Head Start.

Yousef Rabhi said he hoped the Head Start program could stay at its current location. It’s important for children and parents to come to that same spot as though nothing has changed, he said. Brabec agreed with Rabhi’s comments. Anything the county can do to lessen the anxiety for Head Start parents and children is important. ”They already have to manage a lot,” she said.

County Infrastructure: Board Discussion – Chelsea Courthouse

Wes Prater wondered if there was still the possibility of moving the Chelsea courthouse, located at 112 S. Main in Chelsea, into the Zeeb Road facility. The courthouse houses operations for the 14A-3 District Court. Rob Turner, the commissioner whose district includes Chelsea and much of western Washtenaw, said he would be meeting with Chelsea’s mayor and city administrator to discuss that subject. It would be a big savings, he said.

The court really serves all of the county, Turner noted. If the county were to move the court, they’d save money by eliminating an operating expense, and would get proceeds from the sale. The city of Chelsea would benefit because the property would return to the tax rolls, assuming it would be bought by a private entity. [The historic building was constructed in 1901 and has an insured value of $2.56 million, according to the county's building inventory report.] It would be a win-win situation for both governments, Turner said.

County Infrastructure: Board Discussion – Preventive Maintenance

Dan Smith said he appreciated the notes in the building inventory report, which included information about how each building is used, as well as its condition. [link to .pdf of detailed building inventory report] He noted that when he served on the Northfield Township board, the township had dealt with a building that had fallen into disrepair. It can happen more quickly than people expect, Smith said, and he wondered about the county’s preventative maintenance plan.

Dill said that many public agencies like to build a structure, use it, then tear it down and rebuild another one. The average life of a building is 40-50 years, but there’s value in extending it to 60-70 years, he said. The staff is structured around that goal, he said, and preventive maintenance is important for that.

Dave Shirley, operations and maintenance manager, said that there’s a program to “touch” each county asset multiple times a year. That approach has saved tremendously in operational costs, he said. IT manager Andy Brush said a similar program is in place for the computer equipment.

Dan Smith said he was glad to hear it. Capital costs can be huge, so it’s good not to incur those expenses, if possible.

County Infrastructure: Board Discussion – Platt Road Property

Dill mentioned that one way to keep pressure off of the general fund is to dispose of the property at Platt Road, the vacant building and 10 acres of land south of Washtenaw Avenue where the juvenile justice center was previously located. Money from that sale could be used to fund infrastructure moves, he said.

Yousef Rabhi noted that the Platt Road property is in District 11, which he represents. He said he’s spoken to residents about what they’d like to see there. He’d held a public forum at that location that had a good turnout. It seems like the county is talking about the sale of that property as a fait accompli, he said. But there needs to be a robust discussion about it and look at all the options.

The overwhelming majority of residents are in favor of keeping the property as public land and greenspace, Rabhi said. It would be a good fit with the nearby County Farm Park at Platt and Washtenaw. In his ideal world, the land would be retained by the county and used for alternative energy projects or agricultural demonstrations. He said he realized the county doesn’t have financial resources to do something like that at this point, but at minimum he’d like to see the county keep the land, possibly managed by the parks department.

Dill said the county administrator has asked for recommendations about the property, and community input would be part of any decision. Conan Smith, the board’s chair, asked that any decision about the property be brought to the board for approval.

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