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.

The board had been without a chair, because board member Gary Boren, who had been elected to that post by his board colleagues at their July 6, 2011 meeting, was not nominated by mayor John Hieftje for reappointment to the board after his term expired on July 31. Boren was replaced on the board by local attorney Nader Nassif.

Guenzel, who retired last year as Washtenaw County administrator, was elected vice chair of the board at the July meeting and, according to the bylaws, would perform all the duties of the chair. Gunn’s other public service currently includes representing District 9 on the Washtenaw County board of commissioners.

The evening before, at the Sept. 6 city council meeting, three nominations to the DDA board were on the agenda for confirmation: Joan Lowenstein (reappointment), John Mouat (reappointment), and Nader Nassif (new appointment replacing Boren). The nominations had been announced at the council’s previous meeting, on Aug. 15.

At the council’s Sept. 6 meeting, Stephen Kunselman (Ward 3) made the rare request that the council’s confirmation of the mayoral nominations be done separately on roll call votes for each nominee. The votes on the appointments of Mouat and Nassif were unanimous. However, Kunselman voted against the reappointment of Lowenstein. All other councilmembers present voted for her.

This brief was filed from the DDA offices at 150 S. Fifth Ave., where the board holds its meetings. A more detailed report will follow: [link]

The Washtenaw County administration building at the northeast corner of Main and Ann streets might be renamed the Robert E. Guenzel Government Center. (Photo by the writer.)

Conan Smith defended the resolution, which would name the building at 200 N. Main St. the Robert E. Guenzel Government Center. He called Guenzel’s 37-year tenure “remarkable,” saying his length of service and number of accomplishments makes him worthy of the honor. But Prater questioned the process and fairness of the decision, asking, “Who’s being overlooked?”

Also at Wednesday’s briefing, incoming county administrator Verna McDaniel announced her decision to hire Bill Reynolds as deputy administrator. He was one of two finalists who’d been in town earlier this month for a full day of interviews. The board will be asked to approve the hire at its June 2 meeting.

To mark her promotion to county administrator, McDaniel will be honored at a reception prior to the May 19 board meeting, from 5:30-6:30 p.m. at 220 N. Main St.

After last Wednesday’s briefing, commissioners also held a caucus to discuss appointments to nine county boards and commissions. They’ll vote on the appointments at their May 19 meeting, and if the consensus reached at caucus holds, it will result in turnover on the county’s historic district commission.

And a dearth of applications for the workforce development board prompted a discussion of the importance of that group, which helps oversee the county’s Employment Training and Community Services (ETCS) department. Among other things, ETCS is handling roughly $4 million in stimulus funds to weatherize local homes, and commissioner Ken Schwartz raised concerns over the effectiveness of that effort.

Naming a Building: What’s the Policy?

During Wednesday’s administrative briefing, a draft copy of the board’s May 19 agenda included a resolution under “new business” to rename the building at 200 N. Main St. the Robert E. Guenzel Government Center. Built in 2000, the four-story structure houses several departments, including offices of the prosecuting attorney, treasurer, and county clerk, register of deeds and vital records.

McDaniel told commissioners that she’d prefer to bring the resolution from the floor, rather than have it included in the agenda. The agenda now posted online reflects that request – the resolution is no longer listed.

Most of the discussion about the naming took place during the appointments caucus which immediately followed Wednesday’s briefing, and which wasn’t attended by McDaniel. Wes Prater asked how the proposal had surfaced, and was told by board chair Rolland Sizemore Jr. that it had been suggested by commissioners Leah Gunn and Barbara Bergman. Neither Gunn nor Bergman attended Wednesday’s briefing or caucus.

Prater indicated that naming a building after an employee wasn’t appropriate without discussing the criteria used. “We’ve got a lot of good employees,” he said.

Ken Schwartz pointed to the county’s Meri Lou Murray Recreation Center as an example of a building named in someone’s honor. Murray was a county commissioner – an elected position – who was the driving force behind starting the county parks system.

Conan Smith said there wasn’t a policy about naming facilities. “It’s an honor more than a process,” he said. In that case, Prater replied, it becomes a question of fairness. He wondered who’s being overlooked, and said it seemed like a done deal without any discussion.

Smith said that Guenzel’s service has been remarkable, both in length and accomplishments. He served 37 years with the county, including 15 years as county administrator, and has taken on many leadership roles in the community during that tenure. Among other things, he was instrumental in developing the county’s Blueprint to End Homelessness and in leading the effort to build the Delonis Center, a homeless shelter located in Ann Arbor. Last December he announced his retirement, which took effect May 14.

Prater said if the resolution comes to the floor at the May 19 meeting, he plans to air his concerns.

Deputy County Administrator Hired, Finance Director on Hold

During Wednesday’s administrative briefing, Verna McDaniel – the incoming county administrator – told commissioners that she has made an offer to Bill Reynolds for the position of deputy county administrator, at a salary of $138,000. He accepted the position, she said, and plans to start on June 21. Commissioners will be asked to approve the appointment at their June 2 meeting.

Bill Reynolds, right, talks with Washtenaw County commissioner Wes Prater during a May 5 reception in the lobby of the county administration building. Reynolds is being hired as deputy county administrator.

Reynolds and another finalist for the position, Jose Reyes, spent the day on May 5 being interviewed by county management and others. McDaniel said the feedback in favor of Reynolds was nearly unanimous.

Until resigning to take the Washtenaw County job, Reynolds was chief administrative officer for Chippewa County, Wisc. He served as chief of staff for Republican-turned-Democrat Sen. Arlen Specter of Pennsylvania, and led the teams that oversaw the Senate confirmation hearings of both Chief Justice John Roberts and Associate Justice Sam Alito to the U.S. Supreme Court. He also served in Iraq in 2004 with a Marine Corps reserve unit, and was a senior officer leading civil/military operations in Al Anbar province. He has a masters degree in public administration from the John F. Kennedy School of Government at Harvard University – McDaniel has the same degree from Harvard.

McDaniel, who was deputy administrator until being promoted to county administrator when Guenzel retired, said Reynolds’ style is very different from hers, but that they complement each other. Because of his experience running a county himself, “he can hit the ground running,” she told commissioners at Wednesday’s briefing.

Commissioner Ken Schwartz asked about the status of McDaniels’ search for a finance director. That position is vacant following the retirement of former finance director Peter Ballios at the end of 2009. McDaniel said she’s decided not to make a hire until Reynolds comes on board. There might be opportunities to restructure, she said, and she wanted his advice.

Rolland Sizemore Jr., the county board’s chair, told McDaniel he wanted her and Reynolds to attend an Ypsilanti Township board meeting and be introduced as the county’s new top administrators. He said he wanted to go along as well, and he invited the other commissioners who represent parts of Ypsilanti Township – Ronnie Peterson and Wes Prater. It was important to reach out to other government leaders, he said, adding that he wanted to go to the board of Superior Township as well – his district includes a small portion of that township.

Conan Smith said it would be a good idea to do the same thing for the Ann Arbor city council. He noted that councilmembers “might fall over dead if someone from the county showed up at one of their meetings.”

Other Agenda Items: Road Commission, Police Services Lawsuit

Several items were on the draft agenda but were not discussed in detail at Wednesday’s briefing. Here’s a sampling.

Setting the County Operating Millage

At the May 19 meeting of the Ways & Means Committee, on which all commissioners serve, they’ll vote on a resolution to set the 2010 Washtenaw County operating millage. It will be levied in property owners’ July tax bills and is unchanged from last year, at 4.5493 mills. Commissioners will take a final vote on the millage at their June 2 board meeting.

When other millages are factored in, the total county millage is 5.6768 mills. In addition to the operating millage, these other taxes are levied in July:

County Parks (expires 2016):    0.2353
County Parks (expires 2019):    0.2367
Natural Areas (expires 2011):   0.2409
Enhanced Emergency Communications System
  800 MHZ (expires 2015):       0.2000
Huron-Clinton Metro Authority:  0.2146

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Later this year, the board will also be asked to approve a veterans relief millage and Act 88 millage (for economic development purposes), which will both be levied in December.

Setting a Public Hearing for Possible Road Commission Expansion

Conan Smith had previously attempted to set a public hearing for expanding the Washtenaw County Road Commission from three commissioners to five. At the board’s April 21, 2010 meeting, he moved a resolution to set the hearing for May 19. At the time, he told commissioners it wasn’t a decision on whether to expand – setting the public hearing was just a way to start the conversation. [The county board is responsible for appointing the road commissioners to six-year terms. Currently serving are David Rutledge, Douglas Fuller and Fred Veigel.]

The resolution was supported by Leah Gunn, Barbara Bergman and Jeff Irwin, but several other commissioners opposed the timing of the move, saying they wanted more time to discuss it. Ken Schwartz proposed tabling the resolution until the May 19 meeting, and that motion carried.

So on the agenda for the May 19 board meeting is a resolution to set the public hearing on the road commission expansion for the Wednesday, July 7 meeting. During the summer months, the county commissioners meet only once a month, so further action on the expansion wouldn’t likely occur until the Aug. 4 meeting at the earliest – after the Aug. 3 primary elections.

Closed Session to Discuss Pending Litigation

The board will hold a closed executive session at the end of their May 19 board meeting to get an update on the lawsuit between the county and the townships of Augusta, Salem and Ypsilanti. The townships sued the county in 2006 over the cost of sheriff deputy patrols. In late April, the state Supreme Court refused to reconsider a motion made by the townships to hear the case. [See Chronicle coverage: "Townships Lose Again in Deputy Patrol Case"] The county planned to ask for a judgment to cover costs of providing patrols to the townships without a contract for most of 2006 – potentially around $2 million.

At Wednesday’s briefing, the county’s corporation counsel told commissioners that a June 2 hearing has been set regarding the judgment request.

Changes to Natural Areas Preservation Program Ordinance

At their April 22, 2010 working session, commissioners were briefed on proposed changes to the county’s Natural Areas Preservation Program, which would help the county protect more land that’s being used for farming. At their May 19 meeting, they’ll be voting on those changes.

The 10-year NAPP millage expires this year, and commissioners will need to decide whether to put a renewal for it on the November ballot. The current millage, which raises about $3 million annually to preserve natural areas in the county, expires at the end of 2010.

Appointments Caucus

Two times a year, the county board approves appointments to the many boards, committees and commissions that oversee various county programs and activities. The official job of nominating people falls to the board chair, with nominations confirmed by a vote of the board. Prior to the board meeting when this occurs, an appointments caucus is held to discuss potential candidates. That caucus happened immediately after the board’s May 12 administrative briefing.

Appointments to nine groups were discussed, with consensus reached on all but one group – the local emergency planning committee. Here are the tentative appointments, based on Wednesday’s caucus:

• Accommodations Ordinance Commission: Shary Brown, Shari Faulhaber
• Agricultural Lands Preservation Advisory Committee: Charlie Koenn
• Brownfield Development Authority: Teresa Gillotti, Mark Heusel
• Emergency Medical Services Commission: Ashley Cieslinski, Eric Copeland
• Natural Areas Technical Advisory Committee: Rane Curl, David Lutton
• Public Works Board: Ruth Ann Jamnick
• Workforce Development Board: Sean Duval

For the local emergency planning committee, 13 positions are open, but only four people applied. Of those, commissioners agreed to appoint two: Samantha Brandfon and Ashley Cieslinski. There were some conflict of interest concerns regarding the other two applicants, so commissioners agreed to hold off on any decision for those appointments.

In addition, agreement was reached on four appointments for the historic district commission: Chuck Gray, Jean King, Elmer White and Ron Woods. All but Woods are reappointments. Two other HDC commissioners who reapplied – Martha Churchill and Nancy Snyder – will not be reappointed, if the recommendations made at caucus are approved.

During Wednesday’s caucus, some commissioners discussed the view that the HDC hasn’t been an extremely functional group. Conan Smith said that while commission members all care passionately about the historic district, there’s been internal fighting, primarily between White and Churchill. The HDC has potential to play a role in economic development by highlighting the county’s historical assets, Smith said, but it hasn’t to date fulfilled that function.

Ken Schwartz described White as the “heart and soul” behind the effort to organize a permanent display of a model of the USS Washtenaw, the most highly decorated ship of the Vietnam War. The consensus was to reappoint White. Smith noted that the appointment of Woods would add diversity – he would be the only minority on the commission.

Workforce Development Board and Weatherization

Sean Duval, CEO of Golden Limousine in Ann Arbor, was the only applicant for the workforce development board, though there are five openings – when full, there are 13 seats on the board. He was recommended for the position by the Ann Arbor Area Chamber of Commerce.

Wes Prater said the commissioners need to give the workforce development board more attention, given its oversight role. It’s one of the two primary boards – along with the community action board – that oversee the county’s Employment Training and Community Services (ETSC) department.

Jeff Irwin agreed with Prater, saying it was especially true given the recent change in leadership and influx of federal stimulus dollars. [Trenda Rusher, the long-time head of ETCS, retired at the end of 2009 after nearly 30 years with the county. The department is being led by interim executive director Patricia Denig.]

ETCS has been successful in garnering millions of dollars in federal stimulus funding, including $4.29 million for a program to weatherize 600 homes for low- to moderate-income families over a three-year period. That grant was announced in March 2009.

Ken Schwartz expressed concern with the weatherization program, and told commissioners the county needs to hire an objective third-party inspector to start doing spot checks on the work. He said some of the work he’s seen has not been good – a simple audit would tell the commissioners whether the program is working, he said. He asked to schedule a working session on the issue. “It bears looking at,” he said.

Schwartz has raised concerns about the weatherization program at several board meetings over the past few months, primarily pushing for faster implementation of the program. Other commissioners have asked questions as well. At an April 8, 2010 working session during which commissioners were updated on how the county’s stimulus funding was being spent, Prater asked how many local contractors were being used for the weatherization program. Staff didn’t have an answer at the time, but on Wednesday Prater said he’d been told that of the 16 or so contractors being used, only four or five were based in Washtenaw County – that concerned him.

At a Feb. 18, 2010 working session, Conan Smith had asked whether the weatherization program at ETCS might be moved to the newly created department of energy and economic development. That issue was brought up again at Wednesday’s discussion by Schwartz, who said there had been no coordination with the new energy office.

Regarding the quality of the weatherization work, on Wednesday Irwin said it would help to get data on how effective the program is. Having that information could also help the county get future grants, he said. Smith suggested getting homeowners to sign a release from DTE, so that the county could have access to their usage records and could track how much savings are gained from weatherizing homes.

Rolland Sizemore Jr. wrapped up the discussion, saying, “It’s something we will address.”

Candidates for County Commission

Alice Ralph, a Democrat who’s running for the District 11 seat that will be vacated by Jeff Irwin, attended Wednesday’s briefing – she has attended several briefings over the past few months, as well as regular board meetings. Irwin is not seeking reelection and is instead running for the state representative’s seat in District 53.

May 11 was the deadline to file for the Aug. 3 primary, and all but one of the board’s 11 districts face competition either in the primary or the November general election. Here’s a rundown of the candidates:

District 1 (Chelsea, Dexter, and the townships of Lyndon, Sylvan, Dexter and Lima, and portions of Webster and Scio townships) This seat is currently held by Republican Mark Ouimet, who will be running for state representative in District 52.

Eric Borregard (D)
Reid McCarthy (D)
Adam Zemke (D)
Kathy Jane Keinath (R)
Rob Turner (R)

District 2 (the townships of Ann Arbor, Superior, Salem and Northfield, and portions of Webster Township)

Ken Schwartz (D-Incumbent)
Ben H. Colmery III (R)
Dan Smith (R)

District 3 (the cities of Saline and Manchester, and townships of Saline, Lodi, Freedom, Bridgewater, Sharon and Manchester, and a portion of Scio Township) The seat is currently held by Jessica Ping, who isn’t seeking reelection. Alicia Ping is her sister.

Alicia Ping (R)

District 4 (the city of Milan, the townships of York and Augusta, and portions of Ypsilanti Township)

Wes Prater (D-Incumbent)
Rick Roe (D)
Robert Van Bemmelen (R)

District 5 (portions of Superior and Ypsilanti townships)

Rolland Sizemore Jr. (D-Incumbent)
Daniel K. Benefiel (R)
Bill Emmerich (R)

District 6 (Ypsilanti and portions of Ypsilanti Township)

Mark Namatevs (D)
Ronnie Peterson (D-Incumbent)
David H. Raaflaub (R)

District 7 (Pittsfield Township)

Kristin Judge (D-Incumbent)
Sean Gray (R)

District 8 (northeast Ann Arbor)

Barbara Levin Bergman (D-Incumbent)
Melinda Day (R)

District 9 (south and southwest Ann Arbor)

Leah Gunn (D-Incumbent)
Mark Tipping (R)

District 10 (west and northwest Ann Arbor)

Danielle Mack (D)
Conan Smith (D-Incumbent)

District 11 (central and east Ann Arbor)

LuAnne Bullington (D)
Mike Fried (D)
Yousef Rabhi (D)
Alice Ralph (D)
Joe Baublis (R)
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Contact information for the candidates can be found on the county elections website.

On Wednesday, Washtenaw County administrator Bob Guenzel attended the last board of commissioners meeting of his 37-year career with the county. (Photos by the writer.)

The board’s tribute to the outgoing leader came at the end of a meeting that included a first-quarter budget update with news both good and bad. Though the county’s general fund budget is on track to show a surplus, it’s not as much as needed to carry over into 2011 – which means the budget could be tighter next year. And Guenzel cautioned that 2012 and 2013 could be even more challenging.

Also during the meeting, two finalists for the job of deputy county administrator were introduced: Bill Reynolds, who leads the Chippewa County (Wisc.) government and is former chief of staff for Sen. Arlen Specter, and Jose Reyes, CEO of a Southfield management consulting firm. They had been interviewing all day for the position now held by Verna McDaniel, who’ll be the next county administrator.

And what was expected to be a relatively short meeting was lengthened by a discussion about the Washtenaw Urban County‘s annual plan, which commissioners were being asked to approve. Despite some apparent confusion on the part of one commissioner over funding sources in the plan, it ultimately received unanimous support.

After the meeting, commissioners and staff headed over to Argiero’s to give Guenzel a send-off. A larger farewell party is planned later this month at The Ark, where he is a long-time board member.

2010 Budget Update: First Quarter

Bob Guenzel reminded commissioners that because the county prepares a two-year budget, it’s important that cost cuts and revenue gains in 2010 carry over into 2011. The challenge for this year, he said, is whether they can accumulate what they need in 2010 to avoid problems in 2011. He also noted that the presentation was only reporting on the first quarter of 2010. “As we move through the year,” he said, then laughed – “as you move through the year,” it will become clearer if the budget is on target. This year and next year should be fine, Guenzel concluded. But 2012 and 2013 “are another issue.”

Jennifer Watson, the county’s budget manager, gave the formal presentation, starting with an update on revenues. As reported at the board’s April 21 meeting, $1.7 million more in property tax revenues is now projected for 2010 than was originally expected. Fees collected by the Register of Deeds office are slightly down but close to 2009 levels. Compared to the steep declines seen since 2003, Watson said, it’s good to see those revenues stabilize. Revenues from the office of the water resources commissioner – generated mostly from fees – are also down slightly, but that’s offset by a reduction in expenses.

Watson said revenues from the 14A district court in 2009 were down $420,000 from the $3.457 million that was budgeted, and that trend continues into 2010. Revenues are expected to be closer to the $3 million range this year. The decrease is caused by a drop in the amount of fines collected, as well as fewer tickets being issued – reflecting smaller law enforcement staff in many jurisdictions. To address the revenue decline, county staff has been working with chief judge Kirk Tabbey and Gene DeRossett, court administrator. The goal is to generate additional revenues from new programs and an emphasis on collections.

Revenues from police services contracts are down about $1 million, due to a reduction in the number of contracted sheriff deputy patrols for Ypsilanti Township – that change took effect in January 2010. [See Chronicle coverage: "County Board OKs Ypsi Twp. Deputy Cuts"] The revenue loss has been offset to some degree by cost savings and new revenues generated by the sheriff’s department, leaving a net loss of $370,000, Watson said.

Interest income has also declined, Watson told commissioners – from $1.3 million in 2007 to $146,000 last year. Lower cash balances, coupled with low interest rates, have contributed to the drop. [Much of the decrease in cash balances is related to a declining balance in the county's state revenue-sharing reserve fund. When the state suspended revenue sharing in 2004, counties were required to create a reserve fund, which was intended as a substitute for revenue-sharing from the state. Washtenaw County has been drawing over $6 million annually from its fund – at the end of 2009, its balance stood at $24 million. The fund will be depleted sometime in 2013, and it's not clear whether the state will refund that reserve or reinstate revenue sharing.]

In 2010, it now looks like interest income will be $458,000 lower than the $668,800 originally budgeted, Watson said.

A chart of showing the first quarter update of the Washtenaw County general fund budget. (Image links to larger file.)

On the expenditure side, concessions from the county’s labor unions were substantial, Watson said, but about $1.5 million less than expected. Four unions made no concessions at all: two Teamsters unions for the 14A district court; the Police Officers Association of Michigan (POAM); and the Command Officers Association of Michigan (COAM). Those four unions account for 48% of the 613 full-time positions covered by the general fund budget. Employee attrition is on track with the budget, Watson said.

The two-year budget for 2010 and 2011 originally had a projected deficit of $30 million – the budget was balanced with a combination of expense cuts and new revenues. Now, the county staff needs to make sure their budget targets are realized, Watson said. In some cases, substantial operating changes are needed to make that happen.

Overall, the general fund is now projected to have a $4,370,289 surplus in 2010. However, the 2011 budget assumes that a $5,289,000 surplus will be carried over from 2010. At this point, the county is projecting they’ll be $918,000 short of that amount.

Watson said it’s still early in the year, and the second quarter will provide additional data – commissioners will receive their next budget update in August.

Budget: Commissioner Questions and Comments

Observing that there was some positive trending news, Mark Ouimet said it would be critical to monitor the county’s fund balance, as a percentage of net operating expenses. Cash flow will be important, and they can’t lose sight of that. He asked what specific percentages were targeted. Watson said the board policy targets 8%, and they are currently exceeding that. The undesignated general fund balance of $9.773 million is just under 10% of the budget’s $99 million in net operating expenses. Watson said they’ve been able to build up some non-general fund balances as well.

Ken Schwartz commented that while 2010 looks fine, he’s worried about 2011. He wondered whether administration had given any thought to offering incentives, working with the retirement board, to get more savings through attrition. If there’s a program that would work, he said, any 2011 budget problem would “disappear.”

Guenzel responded, saying that over the past 15 years the county has made two early retirement offers that have yielded significant savings. At the time, however, the Washtenaw Employees Retirement System (WERS) was overfunded – that’s not the case now, he said. They’d need to do an analysis to see if early retirement offers were possible, and he noted that it would be mandatory to negotiate with the county’s labor unions.

In her budget presentation, Watson had indicated that several areas outside the general fund are projecting a surplus – including the child care fund, public health, environmental health and building inspection. Schwartz asked whether any surpluses from non-general fund departments could be rolled over into the general fund. Yes, Watson said, but some of those surpluses are already accounted for in the general fund projections. In addition, the staff needs to evaluate the source of those surpluses, she said – for example, are they due to general fund allocations or outside funding. Those factors will determine how much eventually might get rolled over into the general fund.

Kristin Judge spoke about the shortfall in savings from labor union concessions. She said she thought that they’d achieved their total goal in concessions – but they hadn’t? Watson said the budget had been based on $3.5 million in concessions in 2010, and $5 million in 2011 – they fell $1.5 million short of that, over the two-year period. Judge pointed out that when the board approved the budget in December, it had been based on the original assumptions. But since negotiations were completed by then, why didn’t the budget at that time reflect the $1.5 million shortfall, she asked. Judge was also sensitive to the fact that it seemed the administration was laying blame on the unions. “We want to be good partners,” she said.

Guenzel said that the administration knew by December that they would fall short in their hopes for labor concessions, but the staff didn’t have time to finish calculations on the budget impact before year’s end. “The short answer is, we ran out of time,” he said. Coming up $1.5 million short in no way minimizes the concessions that many unions made, Guenzel said. Their actions saved over 100 jobs.

Later in the discussion, Conan Smith said they knew they wouldn’t hit their goals in labor savings, but that he’d felt the two-year budget would give them enough time to address the shortfall. If they had dealt with the shortfall in December and incorporated it into the budget, it would have meant layoffs, he said. It’s important to watch the financial trending closely, he added, so that they can react and make corrections if necessary.

Regarding the fund balance, Judge said she was in favor of saving, since the financial situation isn’t likely to improve soon.

Jeff Irwin urged the administration to communicate the full nature of the county’s financial position, so that the unions understand how important their concessions were. The county ended the year with a small surplus, then got the good news that they’d be seeing $1.7 million more in revenues this year than was projected – but that’s not the whole picture. He said it wasn’t possible to overdo communication on this.

Guenzel reported that he’d talked to department heads and the labor management team earlier that day, and that he assumed Verna McDaniel would continue to communicate the county’s financial status when she takes over as administrator later this month. If labor concessions hadn’t occurred, he said, the county would be having serious problems now and in 2011.

Jessica Ping asked whether the administration was continuing to look for opportunities to consolidate services. McDaniel reported that they were, and she plans to update the board at a future working session.

Wes Prater said they needed to keep a close eye on revenue as the year unfolds. And he repeated a request he’d made at a previous meeting, asking staff to provide a list of all of the county’s debt and liabilities, both funded and unfunded, “so that we know how much this county actually owes to somebody.”

Leah Gunn said she was pleased that the county had been pinching its pennies, but also expressed caution. “I try to be an optimist,” she said, “but I think we have some big problems ahead of us.”

Rolland Sizemore Jr. asked whether the expenses from the jail expansion were part of the financial picture presented in this budget update. Watson said that those expenses hadn’t been included. [Additional staffing approved by the board earlier this year will result in a projected two-year shortfall of $2 million for the county's corrections division in 2012 and 2013. See Chronicle coverage: "Sheriff Requests More Staff for Expanded Jail"] McDaniel said the board would be getting a full report on the jail expansion at an upcoming working session.

Candidates for Deputy County Administrator

Verna McDaniel, who’ll be replacing Guenzel as county administrator, introduced two finalists for the job of deputy administrator, which she now holds.

At right: Bill Reynolds, a candidate for Washtenaw County deputy administrator, talks with county commissioner Wes Prater during a reception Wednesday for the candidates in the lobby of the county administration building.

She’ll likely be making a selection later this month.

The candidates – Bill Reynolds and Jose Reyes – spent all day Wednesday being interviewed and meeting with county staff.

A reception for them was held prior to the board of commissioners meeting, and both spoke briefly during the meeting, saying they wished the county well, regardless of whether they were hired.

Reynolds is chief administrative officer for Chippewa County, Wisc.

He has served as chief of staff for U.S. Sen. Arlen Specter of Pennsylvania.

He led the teams that oversaw the Senate confirmation hearings of both Chief Justice John Roberts and Associate Justice Sam Alito to the U.S. Supreme Court.

Jose Reyes, right, a candidate for Washtenaw County deputy administrator, talks with Andy Brush, who works in the county’s IT division.

Reynolds also was deployed to Iraq in 2004 with a Marine Corps reserve unit, and was a senior officer leading civil/military operations in Al Anbar province.

Reyes, a Washtenaw County resident, is founder and CEO of the management consulting firm Prism Solutions, based in Southfield.

One of his most recent consulting jobs was as quality assurance director for the Detroit Healthcare Career Center.

He was previously chief information officer for the Detroit-Wayne County Community Mental Health Agency.

A University of Michigan graduate, Reyes also previously worked as an aid to UM’s vice provost for minority affairs.

Urban County Annual Plan: A Bit of Confusion

At their April 21 meeting, the board held a public hearing on the Washtenaw Urban County’s annual plan for 2010-11. They voted unanimously at their Ways & Means Committee meeting that night to approve the plan. On Wednesday’s agenda for the regular board meeting, commissioners were scheduled to take a final vote. [For background on the Urban County, see Chronicle coverage: "Urban County Allocates Housing Funds" and "Washtenaw Gets More Housing Funds"]

Though there had been no discussion of the plan at the April 21 meeting, on Wednesday commissioner Ronnie Peterson said he had concerns, and asked that a separate vote be taken on the item. [Typically, all action items are voted on collectively.]

Peterson said he had concerns over the plan’s human services funding. He said he didn’t want the county board to hand over its funding authority to the Urban County. In particular, funding for children’s well-being was important to him, he said, and the allocation for that should be done by the board of commissioners, not the Urban County executive committee.

Leah Gunn, who chairs the Urban County executive committee, clarified that the Urban County was allocating federal dollars, not county general fund money. Specifically, 15% of the funds received through the federal Community Development Block Grant (CDBG) program can be allocated to human services. For 2010-11, $360,014 is being allocated to Ozone House, SOS Community Services, Northfield Township’s human services program, and the Shelter Association of Washtnaw County – with nearly $27,000 as yet unallocated. [.pdf of 2010-11 Urban County plan]

Peterson repeated that the county board shouldn’t delegate its authority to allocate funding. He said he’s not concerned over federal dollars, just the county’s general fund dollars.

Again, Gunn attempted to clarify, telling Peterson that he was mixing up the two types of funding. The board did allocate general fund dollars for human services, she said – they’d done it as part of the budget process, and voted on 2010 and 2011 funding at their December 2009 meeting.

Wes Prater said the communication seemed clear to him, but suggested that since Peterson wasn’t satisfied, perhaps they should discuss it more and postpone the vote to accommodate him.

Peterson said he had no problem approving the plan if they removed the portion related to children’s well-being. Gunn, exasperated, said that there was no county funding for children’s well-being in the Urban County plan: “I don’t know how many ways I can say this.” The vote was time-sensitive, she added, because the plan must be submitted this month to the U.S. Dept. of Housing and Urban Development (HUD).

Peterson then made a motion to remove the children’s well-being funding from the Urban County annual plan. Prater supported the motion, though he added that he didn’t think there wast any such funding in the plan. Gunn confirmed that, and urged commissioners to vote down the motion and support the annual plan.

Peterson said that if there wasn’t any children’s well-being funding in the plan, then why not support his motion? It couldn’t do any harm, he said.

As a point of order, Jeff Irwin asked Curtis Hedger, the county’s corporation counsel, whether such a motion was permissible, if it’s not germane to the resolution. Hedger said it was a tough call.

A vote on the motion to remove children’s well-being funding from the Urban County plan was taken. The motion failed, with commissioners Irwin, Gunn, Schwartz, Ouimet and Sizemore voting against it. Jessica Ping was out of the room and did not vote. Barbara Bergman was absent.

The vote on the main resolution to approve the Urban County plan was then taken. It received unanimous support.

ACH Brownfield Project Public Hearing

A public hearing was held on a proposal to amend the county’s brownfield plan to include a project in the city of Saline at the Automotive Components Holdings plant. The Saline ACH plant, located at 7700 Michigan Ave., needs the brownfield designation in order to apply for $1.2 million in Michigan Business Tax credits.

Only one person spoke. Bob Brewster, human resources manager for the Saline plant, said he was on hand to answer any questions that commissioners might have about the request. They had none, and passed the resolution unanimously without comment.

CVS/Caremark

At their April 21 meeting, commissioners had a heated debate over a resolution authorizing the county to enter into a contract with CVS/Caremark for a drug discount program, which would be offered to residents. The resolution passed during a vote at the April 21 Ways & Means Committee, on which all commissioners serve. Only Conan Smith, Leah Gunn and Barbara Bergman voted against it.

At Wednesday’s board meeting, a final vote was taken and again, Smith and Gunn voted against it. [Bergman was absent.] There was no discussion and the resolution passed.

Communications from Commissioners

Ken Schwartz reported that he was recently driving through the south side of Ypsilanti and saw a significant number of houses that had signs announcing they were in tax foreclosure by the county treasurer. Many of them, he said, were “blighted junk on the landscape.” He wondered what the county’s options were if the houses didn’t sell at the July tax auction, and proposed having a discussion about it at a future meeting.

Kristin Judge reported that she had been among those who lobbied Lansing legislators by attending a recent meeting of the House judiciary committee, on which local Reps. Pam Byrnes and Rebekah Warren both serve. She was there to support HB5797, a bill addressing the problem of unfunded mandates. It would require that any new state mandates include a financial impact statement.

Caleb Poirier, a resident of Camp Take Notice, being interviewed on April 29 by reporter Cheryl Chodun of Channel 7 Action News. The homeless community had been forced to relocate their camp by state police and sheriff deputies.

Judge also made a plea to the public to help the residents of Camp Take Notice, a homeless community that’s looking for a new location to settle. She said that she and a few other commissioners had been trying to see what the camp’s options are. They were hoping a church or other faith-based organization would help house the group. Judge said she recently wrote about how the county’s Blueprint to End Homelessness was one of the reasons she was inspired to run for commissioner. It was one of Bob Guenzel’s finest projects, she said, and they shouldn’t lose sight of his vision.

Finally, Judge expressed disappointment that the Thursday working session had been canceled. The board needs to get to work setting its priorities and getting public input, she said. Next year they’ll have to set the budget for 2012 and 2013, which will be a difficult effort. It’s already May, and they haven’t made much progress in preparing for that. “We have a lot of work to do,” she said, adding that she hopes they’ll start to make faster progress soon.

Public Commentary

Tom Partridge was the only person who spoke during the night’s four opportunities for public commentary – he spoke twice. He referenced the speech that President Barack Obama had given at the May 1 University of Michigan commencement, and called for leadership during this critical election year, when all 11 seats on the board are up for election. Evoking presidents John F. Kennedy and Lyndon Johnson, Partridge urged commissioners to put forward an agenda for progress to tackle issues of accessibility and affordability of health care, education, housing and transportation.

County Administrator Bob Guenzel Honored

Wednesday’s board meeting was the last one that Bob Guenzel will attend as county administrator – his retirement from that job takes effect May 14.

During the meeting, Verna McDaniel – the current deputy county administrator who’s been hired to replace Guenzel – read a resolution of appreciation from the board, thanking him for his 37 years of service to the county and the leadership he’s shown. As he accepted the framed resolution and hugged McDaniel, Guenzel received a long standing ovation from commissioners, staff and others attending the meeting, including his wife, Pam Guenzel.

Andrew Cluley with WEMU radio interviews Bob Guenzel after the May 5 meeting of the county board of commissioners. Guenzel’s retirement takes effect May 14.

Standing at the boardroom’s podium, Guenzel told commissioners he’d been getting more emotional as the day wore on – the county government has really been a home to him for 37 years. He’s worked with over 65 commissioners during his tenure, and said the county is fortunate to have such a high caliber of people elected who really care about the community – the current board demonstrates that well.

He then spoke to each commissioner directly, one by one, citing specific ways in which he appreciated their service. Several of them he’s known for years – as many as 40 years for Leah Gunn and Wes Prater. He joked with Ronnie Peterson, saying “I was here when he was born.”

Guenzel described the county organization as strong, saying that the challenges they’ve faced over the past few years have made them more resiliant. Now, he said, Verna McDaniel will lead the county forward with a fresh perspective. “I’m really optimistic about the future of Washtenaw County,” Guenzel said. As he’s often noted since announcing his plans, Guenzel said he’s retiring from county government, not from Washtenaw County.

McDaniel, who has worked for the county since 1982, described working with Guenzel as “an amazing journey.” Noting that he was well known for championing a business improvement process within the organization, she said they had prepared a document that detailed the history of his tenure and the work he’s done in that regard. Copies of the document were distributed to commissioners during the meeting.

Commissioners praised Guenzel and spoke affectionately about their relationship with him. Jeff Irwin thanked Pam Guenzel for the sacrifices she’d made in giving her husband’s time to the community over the years. Guenzel cared about the county, Irwin said, and that caring could be seen in many different ways, large and small. “The good work you’ve done is going to last for many, many years.”

Ronnie Peterson credited Guenzel with initiating the Harriet Street corridor project, an effort to improve Ypsilanti’s south side, as well as the Washtenaw Literacy Coalition and the Eastern Leaders Group. Peterson said he’d been around for six county administrators, and he’d seen Guenzel on the eastern side of the county more than any of the others combined.

Rolland Sizemore Jr., who serves as board chair, thanked Guenzel for his support. He said one of his best memories is of sitting in a “quiet” meeting with Guenzel and Washtenaw County Trial Court chief judge Donald Shelton. “You can take ‘quiet’ any way you want,” he joked.

Sizemore then announced that Peterson would be buying drinks at Argiero’s – and the meeting was adjourned.

Present: Leah Gunn, Jeff Irwin, Kristin Judge, Mark Ouimet, Ronnie Peterson, Jessica Ping, Wes Prater, Ken Schwartz, Rolland Sizemore Jr., Conan Smith

Absent: Barbara Bergman

Next board meeting: The next regular meeting is Wednesday, May 19, 2010 at 6:30 p.m. at the County Administration Building, 220 N. Main St. The Ways & Means Committee meets first, followed immediately by the regular board meeting. [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 comment sessions are held at the beginning and end of each meeting.

Danielle Mack and Yousef Rabhi attended Wednesday’s board meeting. They both plan to run for a seat on the board, in Districts 10 and 11, respectively.

Bob Guenzel, Washtenaw County administrator, plans to retire in May of 2010. (Photo courtesy of Washtenaw County.)

Bob Guenzel, Washtenaw County’s top administrator and the leader of a wide range of community initiatives, is retiring after 37 years with the county. He informed the board of commissioners on Thursday – the day after the board passed the 2010/2011 county budget – and told the county’s department heads on Friday morning. His last day will likely be May 14.

“It’s been a great run,” Guenzel told The Chronicle.

Guenzel, who turned 68 last month, has indicated an intention to retire for some time, but said he had wanted to see the organization through its difficult two-year budget cycle before setting a definitive date to step down. With tax revenues falling because of a sharp drop in property values, the county faced a projected $30 million deficit over the next two years. While the budget that was passed on Wednesday is balanced, already it’s likely the county will need to make more cuts in early 2010.

The position of county administrator is appointed by the board of commissioners – Guenzel has served in that role since 1994, and for 22 years before that served as the county’s corporation counsel. Board chair Rolland Sizemore Jr. couldn’t be reached for comment about the upcoming transition and search for a new administrator. Vice chair Mark Ouimet said commissioners hadn’t yet had the chance to discuss it.

Future Plans, Post-Retirement

Guenzel is an attorney by profession. Prior to joining the county as its first corporation counsel, Guenzel was an Ann Arbor assistant city attorney and a trial attorney for the National Labor Relations Board’s 7th Region in Detroit. He isn’t returning to a law practice, but did say that he’s hoping for another career – albeit one not as stressful or demanding as his current job. He hopes to teach, possibly at the University of Michigan Ford School of Public Policy, where last year he taught two courses in state and local public policy. Other options he said he’ll explore include leadership coaching, consulting and taking on special initiatives within the community.

“I’m not retiring from Washtenaw County – I’m retiring from Washtenaw County government,” Guenzel said.

Guenzel is already involved in a wide range of community activities. He is vice chair of the board for Ann Arbor SPARK, the area’s economic development agency, and is a board member of the Washtenaw Housing Alliance and The Ark, among other groups. He was instrumental in developing the county’s Blueprint to End Homelessness and in leading the effort to build the Delonis Center, a homeless shelter located in Ann Arbor. He served as 2008 chair of the Washtenaw United Way Campaign. He is co-chair – along with Ann Arbor District Library director Josie Parker – of the Washtenaw Literacy Coalition, which is working to implement a Blueprint to End Illiteracy. Nationally, he is on the board of the Alliance for Innovation, a group aimed at improving the performance of local governments.

Guenzel cited his work in transforming the county government itself – focusing it on becoming a world-class service provider – as one of his most significant accomplishments. The county employs about 1,350 people, with a 2010 general fund budget of $99 million. Guenzel also said he was proud of the relationships he developed with county commissioners – he’s worked with 62 different commissioners over the years. He said he was incredibly sad to leave, but that he felt like he was leaving the county in good hands.

What’s Next for the County?

Guenzel said that it’s up to commissioners to determine the process for a search to replace him. Mark Ouimet, the board’s vice chair, praised Guenzel’s leadership and organizational skills, and said that “you don’t replace – you move on.”

Ouimet said the next county administrator needs the ability to create a vision, to inspire people to pursue that vision, and to build a strong community presence. The person would also need a deep understanding of finance, Ouimet said, given the economic climate. County government will be substantially different in the future, he said, with fewer employees, fewer resources and more demands. That will require some creative approaches, which will likely include partnering with other governments, nonprofits and the private sector.

Commissioner Kristin Judge told The Chronicle that in light of the difficult economy, it was the perfect time for the board to discuss the county’s overall goals and priorities, and to link that to their search for a new administrator.

Both Ouimet and Judge praised Guenzel for staying with the county through this budget cycle, and said the county would miss his leadership.

Guenzel’s departure isn’t the only transition facing the county. Two commissioners – Ouimet, a Republican from Scio Township, and Democrat Jeff Irwin of Ann Arbor – have announced plans to run for state representative, leaving those commission seats up for grabs in the 2010 election. Two other commissioners – Democrats Rolland Sizemore Jr. of Ypsilanti Townshp and Ken Schwartz of Scio Township – have said they are also thinking about making a bid for state office. [See Chronicle coverage: "More Candidates Vie for State House, Senate"]

Further ahead, the county faces a redistricting process that could increase or decrease the number of commissioners that serve on the board, and change the boundaries of their districts. That process, which occurs every 10 years, begins after the 2010 census and will be completed in time for the 2012 election cycle.

“There’s lots of change going forward,” Guenzel said.