Some of the crowd at the Jan. 22, 2014 Washtenaw County board of commissioners meeting. (Photos by the writer.)

Speaking during public commentary, several people argued that the Delonis Center‘s warming center should be made available when temperatures are lower than 45 degrees. One woman presented a list of specific requests for expanded services at the homeless shelter, including 24-hour access to shower facilities and increased hours for access to laundry facilities.

There was no formal agenda item on this issue, but several commissioners agreed that the community needs to do more for the homeless. Conan Smith (D-District 9) noted that county had a 10-year plan to end homelessness, “and then we got socked by a terrible economy and made pretty dramatic reductions in the county’s spending.” [The Blueprint to End Homelessness was adopted in 2004 but appears to be dormant.]

The board ultimately voted to direct county administrator Verna McDaniel to address issues related to services for the homeless. They’ll be getting an update at their Feb. 6 working session from Ellen Schulmeister, director of the Shelter Association of Washtenaw County, which runs the Delonis Center.

Alicia Ping (R-District 3) cautioned against the county overstepping its bounds, and pointed out that the shelter is run by a separate nonprofit – although the county owns and maintains the building where the shelter is located at 312 W. Huron in Ann Arbor, and contributes some funding. Ping noted that the county also currently pays the Ann Arbor Downtown Development Authority for several parking spaces used by Delonis Center employees, and suggested that the money might be better spent on direct services to the homeless. The county is continuing to negotiate its parking contract with the DDA.

Also at the Jan. 22 meeting, the board made a range of appointments, including confirmation of Dan Ezekiel, former Ann Arbor greenbelt advisory commissioner, to replace Nelson Meade on the county parks & recreation commission. And former state legislator Alma Wheeler Smith was appointed to fill an opening on the southeast Michigan regional transit authority (RTA) board. Richard Murphy – one of two RTA board members from Washtenaw County – was not seeking reappointment. Smith was the only eligible applicant and is the mother of county commissioner Conan Smith, who abstained from the confirmation vote.

In addition, during the Jan. 22 meeting the board created a new committee to explore the cost to the county for providing employee health insurance coverage for autism. The board had received a staff presentation earlier in the evening about the possibility of offering such coverage.

In other action, the board gave initial approval to a proposed ordinance that would allow the county to issue municipal civil infractions for owning an unlicensed dog, with a final vote expected on Feb. 5. The ordinance could take effect 50 days after that, in late March, but county treasurer Catherine McClary indicated that her office would be looking to implement the changes in June or July. Several  commissioners advocated for educational outreach to ensure that residents – especially in rural areas – will be aware of the changes.

The board also gave initial approval to establish a countywide Property Assessed Clean Energy (PACE) program, after hearing from several people during public commentary who supported the effort. A final vote to establish the program is expected at the board’s Feb. 5 meeting.

Services for the Homeless

Although there was no agenda item directly related to the county’s support for services that aid the homeless, the issue was the focus of public commentary on Jan. 22, and of subsequent response from the board.

Eight people spoke during public commentary about issues facing the homeless and those living in poverty.

One man described his 37-year-old son who suffers from bipolar disorder, schizophrenia and short-term memory loss. For the past 8 or 9 years, the son has lived at the Embassy Hotel, at the southeast corner of Huron and Fourth. Out of his son’s roughly $700 per month disability check, the hotel is charging almost $650 for a small room with furniture in disrepair, he said. There are patches on the wall that aren’t painted, a stained lampshade, and a small refrigerator that doesn’t work properly. The hotel management talks down to his son in a degrading way, and sometimes doesn’t let his son into the hotel at night if he forgets his key. “So he’s on the streets until seven o’clock in the morning,” the man said.

After other expenses, his son only has about $10 a week for food – “that’s criminal and shameful,” he said. Some people say that living there is his son’s choice, but where else would he live? “There’s no affordable housing in downtown Ann Arbor that he can afford.” This is a problem, and it’s not just his son, the man said. “You’ve got to do something about this.”

One woman spoke as a representative of people who use the Delonis Center shelter and its warming center. The warming center operates only six months out of the year, she said. But every human being has the right to be protected from the elements, and to have access to food, clothing, computers, and medical care. The Delonis Center isn’t meeting those needs, she said. The woman ticked through a list of requests, which she also provided to commissioners in writing:

• 24-hour access to shower facilities.
• Increased, flexible hours for laundry access.
• An immediate review of the trespassing policy.
• More flexible hours for storage access.
• Breakfast and snacks for people who use the warming center.
• An end to the policy that requires people to leave the center during the day. The center should be used in the daytime for reading, computer use and other inside activities.

She requested a response from commissioners within 72 hours about their intent to implement these proposals.

Tim Green introduced himself as a member of Camp Misfit and a board  member of MISSION. There aren’t adequate services for the homeless in Washtenaw County, he said. But his biggest concern now is the freezing temperatures and the lack of adequate access to the warming center. According to the Centers for Disease Control, he said, hypothermia can set in at 45 degrees. “Do you put your dog outside for 8-10 hours, like they expect these people to do?” he asked. “You’d be put in jail for animal cruelty.” But people are on the streets with nowhere to go. The community needs a daytime warming shelter and a larger shelter for the night, he said. He’s been homeless in the past, and he continues to help people when he can. A friend of his froze to death last year because he had a drinking problem and couldn’t get into the Delonis Center, Green said. Alcoholism is obviously a disease, he said, and there should be a place to help people who need it, so they won’t freeze to death. Something needs to be done, he concluded.

Jeff Plasko provided sign language interpretation at the Jan. 22 meeting of the county board. It’s a service that the county pays for upon request.

Steve Carnes told commissioners he’s lived in Ann Arbor for about 10 years, and the previous speaker had addressed most of the issues he wanted to raise. He asked people from Camp Take Notice and Camp Misfit to stand or raise their hands – about 20 people indicated they were part of those groups. He noted that there needs to be a timely appeals process when people are asked to move their tents because of trespassing. He knows of cases that have extended over three months.

Odile Huguenot Haber said she’s been a Washtenaw County resident for about 20 years. About 65 people are sleeping on the floor of the Delonis Center, she said, plus 25 people sleeping at the rotating shelter in local churches. She told commissioners that she didn’t know if they’ve slept on the floor recently, “but it’s not great.” Some people are senior citizens, or disabled, or mentally ill, she noted. It’s crowded and not comfortable. It’s better than sleeping outside, but she pointed out that not everyone has a space inside. Haber called for a countywide meeting of all the stakeholders about homelessness to offer something better than what’s available now. “We’re not in Syria,” she said. “We’re in Ann Arbor in the United States. We can do much better.”

Speaking as a member of Camp Misfit, Tracy Williams said they keep getting pushed out of their tent homes. It happened to some friends of his recently. The city has money to “throw around for all the buildings in Ann Arbor,” he said, but they can’t fix a streetlight. People who have a place set up for the winter are having to move because neighbors feel threatened since there’s not adequate lighting, he said. Where are those people going to go? Are they going to the cemetery?

Greg Pratt introduced himself by saying “I live in Andy’s district” – District 7 in Ann Arbor, represented by Democrat Andy LaBarre. There are people freezing outside, and they’re being evicted, he said. They need warm places to go that aren’t necessarily in the homeless shelter. People who were attending that night’s meeting are speaking from a place of strong emotion, Pratt said. “There’s people’s lives on the line.” The Delonis Center needs to set the “weather amnesty” at 45 degrees – and people should be allowed to stay there even if they blow over 0.1 on a breathalyzer, he said, or have behavioral problems. Pratt added that he knew there were at least a few commissioners who wanted to help out, so he urged them to do what they can.

Speaking through a sign language interpreter, Tony Galore told commissioners that they should do whatever they can, either providing funds or building another shelter. People need to be helped, he said, “and we would help you back later.” He said raised the issue of transportation, saying he was from Miami and you could get anywhere you wanted to go there. In Michigan, it’s not so easy, he said. “To me, it’s backwards here.” He urged commissioners to help people who need access to transportation.

Services for the Homeless: Board Response

Conan Smith (D-District 9) thanked people for coming and telling their powerful stories. Addressing the challenge of homelessness needs to be a priority in these hard economic times, he said. There’s no excuse for the county not to allocating some funds for this purpose, Smith added. It’s not about how cold it is, he said – people deserve a home if they want one.

The county needs to adopt public policy and investment strategies reflecting that housing is a right, Smith said. The community needs systemic solutions, he added, and not simply respond to a crisis. They need to address the causes of homelessness, not just the symptom. The county had a 10-year plan to end homelessness, he noted, “and then we got socked by a terrible economy and made pretty dramatic reductions in the county’s spending.” [.pdf of the 2004  Blueprint to End Homelessness] Smith said the county would be doing what it could.

County administrator Verna McDaniel and commissioner Yousef Rabhi (D-District 8).

Yousef Rabhi (D-District 8) said the situation that was described about conditions at the Embassy Hotel sounds “appalling” and something that he hoped the county staff could look into. Thanking others who’d spoken on behalf of the homeless, Rabhi said “it’s a human issue, and one that we can’t back away from.” It’s been a priority for Washtenaw County since he’s been on the board and even before that, he said. Other communities don’t provide the same level of support for the homeless, he noted. Nobody was turned away from the Delonis Center when temperatures dropped, he said. Even so, he added, “we still need to do more.” The county needs to identify holes in the system and patch those holes with additional resources.

Rabhi described a meeting he’d had recently with Ann Arbor city councilmember Sumi Kailasapathy and county staff who are working on homeless issues. They identified the need for more collaboration between the city and county. They talked about having a joint city/county task force to have that dialogue. Responding to a suggestion from the crowd, Rabhi said that members of the homeless community should be involved in the task force, too.

In terms of the specific list of requests that were made during the public commentary, he noted that county administrator Verna McDaniel had assured him that she’d bring together staff and others in the community to respond to the requests and make recommendations to the board.

Rabhi pointed out that the cost for opening the warming center for temperatures above 10 degrees is about $180,000 annually. He agreed with Smith that the board should allocate some amount of funding to address these basic human needs.

Alicia Ping (R-District 3) said it’s important to understand where the county’s role stops and the shelter’s role begins. The county doesn’t run the shelter, she noted, so getting involved risks overstepping the county’s authority.

Related to that, Ping wondered if there was an update on negotiations between the county and the Ann Arbor Downtown Development Authority. She said she brought it up because the county pays the DDA for about two dozen parking spaces used by employees of the Delonis Center. By eliminating that, the county could probably use the money to help pay for more services for the homeless, she said.

McDaniel reported that there had been several meetings between her staff and the DDA, and that she had a meeting scheduled later in the week with the DDA “to hone in where we are with that.” They’re continuing to negotiate, she said. McDaniel added that she’d report back to the board as soon as she had more information.

Rabhi said he’d support passing a resolution that would direct McDaniel and her staff to address the concerns that were raised that night.

Outcome: The board voted to direct the county administrator to address issues related to services for the homeless.

Rabhi also asked Mary Jo Callan, director of the county’s office of community and economic development, if she could prepare a report for an upcoming working session. Callan agreed to do that. She noted that although about 85% of the support for the Delonis Center comes from sources other than the county and city of Ann Arbor, the county does own and maintain the center’s building. [The board's Feb. 6 working session agenda now includes a briefing on homelessness issues by Ellen Schulmeister, director of the Shelter Association of Washtenaw County, which runs the Delonis Center.

Conan Smith said the board shouldn't forget its role as funders of the shelter, with a strong financial interest in that nonprofit. They have a right and obligation to articulate their concerns to the shelter's leadership, he said. "Now, if that organization chooses not to respond to our interests, that does put our relationship in a more interesting place," Smith added. "But to date, that has not been the case. They've been always very responsive to the concerns of the board of commissioners."

Appointments

Appointments to three groups – the southeast Michigan Regional Transit Authority (RTA); the Washtenaw County food policy council, and the Washtenaw County parks & recreation commission – were on the board’s Jan. 22 agenda. The board also made its annual appointments of county commissioners to various boards, committees and commissions.

Appointments: Regional Transit Authority

Yousef Rabhi (D-District 8), chair of the board, nominated Alma Wheeler Smith to fill an opening in the RTA. Richard Murphy – one of two RTA board members from Washtenaw County – was not seeking reappointment.

County prosecuting attorney Brian Mackie and former state legislator Alma Wheeler Smith.

The deadline to apply for this opening had been extended, but there were only two applicants. The other applicant was Jim Casha, but as a Canadian resident he was ineligible to be appointed for the seat to represent Washtenaw County. The RTA state enabling legislation (Act 387 of 2012) mandates that board members must be residents of the county or city that they represent.

Alma Wheeler Smith, a former state legislator, is the mother of county commissioner Conan Smith (D-District 9). She attended a portion of the Jan. 22 meeting but did not formally address the board.

By way of background, the RTA was established by the state legislature in late 2012. It includes a four-county region – Macomb, Oakland, Washtenaw and Wayne – with each county making two appointments to the board, and the city of Detroit making one.

The county board chair appoints both of Washtenaw County’s members to the RTA board. Those appointments were first made at the end of 2012 by Conan Smith, who was chair through the end of that year. Liz Gerber, a University of Michigan professor of public policy, was appointed to a three-year term. Murphy, who works for Smith at the Michigan Suburbs Alliance, was appointed to a one-year term.

Appointments: Regional Transit Authority – Public Commentary

Jim Casha introduced himself by saying commissioners might remember his previous commentary regarding the RTA, at the board’s Jan. 8, 2014 meeting. At that time, he had objected to the RTA board’s selection of John Hertel over Larry Salci as the RTA’s CEO. He had also criticized the failure of the RTA board to acquire the 157-acre Michigan state fairgrounds property, as a way of generating revenue.

Jim Casha.

Since then, the question of Hertel as CEO has become moot, Casha noted, since Hertel decided not to accept the RTA’s offer. So the RTA board has a chance to make a different decision this time, he said, and to pick someone with more transit experience. He hoped they would again consider Salci, a former director of the southeast Michigan transportation authority in the 1970s. Salci is currently a consultant for the federal government in commuter rail initiatives nationwide, Casha said.

Casha, a Canadian resident, said he understood he wouldn’t be the county’s appointee to the RTA, “since not only do I not live in your county, I don’t even live in your country.” He noted that the Ann Arbor-to-Detroit commuter rail was a big priority to a lot of people in Ann Arbor, and it should be the No. 1 priority for the RTA.

Instead, the RTA is concentrating on bus rapid transit up Woodward Avenue and other corridors, Casha said. But the rails are already in place, and train cars have already been purchased, he noted. There’s a great potential location for a station at the state fairgrounds site. Commuter trains shouldn’t end at the New Center in downtown Detroit on Woodward, Casha said. It should continue to the fairgrounds, where it can tie into a multi-modal regional transportation center that can take anybody via bus anywhere in the region. “We could truly have a transportation system that we could be proud of,” he said. He urged commissioners to ask the county’s RTA board members to push for this. “It’s still not too late,” he concluded.

During the evening’s second opportunity for public commentary, Casha noted that the fairgrounds site could be used as a demonstration center for innovative projects – to showcase different types of housing, for example. He said he’s also trying to get legislative support for having a sesquicentennial Civil War celebration in 2015 to honor Michigan soldiers, General Ulysses Grant and Austin Blair, who served as the state’s governor during the war. The house that Grant lived in during 1849 is located at the fairgrounds. The celebration could be a catalyst for private funding, Casha said.

Appointments: Regional Transit Authority – Board Discussion

As board chair, Yousef Rabhi (D-District 8) is authorized to make the RTA appointments, without full board confirmation. However, he put forward his RTA nomination of Alma Wheeler Smith as part of a resolution with all of his other nominations. He told the board that there had been back-and-forth with a state official who had originally indicated that the appointment would be for another one-year term. He had clarified with state that the term is for three years. The term will end on Dec. 31, 2016, because Washtenaw County is making calendar-year appointments to conform with its existing process of making appointments.

Conan Smith (D-District 9) said he planned to abstain from the vote on his mother, citing what he called a “perceived conflict of interest – although you all know how independent she is.” He thought she was a great choice, but said he did not involve himself in the selection. “I did my best to stay out of [the selection process], passionate though I am about the RTA and my mother.”

Outcome: On a roll call vote along with other confirmations, Alma Wheeler Smith was appointed to the RTA board. Conan Smith abstained.

Appointments: Parks & Recreation Commission, Food Policy Council

In other appointments made on Jan. 22, Dan Ezekiel was nominated to fill a term that was recently vacated by long-time county parks & recreation commissioner Nelson Meade, who stepped down at the end of 2013. Ezekiel was one of the founding members of the Ann Arbor greenbelt advisory commission. His most recent term ended in mid-2013. He was term limited for that position. For the county parks & recreation commission, Ezekiel’s term ends on Dec. 31, 2016. He also attended the Jan. 22 county board meeting, but did not formally address the board.

Jeremy Seaver and Sara Simmerman were nominated to the Washtenaw County food policy council, for terms ending Dec. 31, 2015.

Outcome: These nominations were confirmed unanimously by the board.

Appointments: Commissioner Appointments

Yousef Rabhi, as board chair, asked the board to confirm annual appointments of county commissioners to various boards, committees and commissions. [.xls spreadsheet of 2014 appointments] Only minor changes were made to previous appointments from 2013.

In addition to their salaries, commissioners receive stipend payments based on the number of meetings that a commissioner is likely to attend for a particular appointment. One or two meetings per year would pay $50, three or four meetings would pay $100, and the amounts increase based on the number of meetings. Each commissioner typically has several appointments. Commissioners who are appointed as alternates receive the same stipend as the regular appointments. Some appointments were not designated to be paid because no meetings were expected to be scheduled.

Commissioners can waive their stipends by giving written notice to the county clerk. Otherwise, the stipend payments are made automatically.

In 2013, only Dan Smith (R-District 2) waived all of his stipends, according to the county clerk’s office, which administers the stipends. Felicia Brabec (D-District 4) waived her stipend for the accommodations ordinance commission. Ronnie Peterson (D-District 6) was not appointed to any boards, committees or commissions and therefore did not receive any stipends.

For 2013, the following stipends were paid:

• Yousef Rabhi (D-District 8): $2,700 (11 paid appointments, including several stipulated by virtue of Rabhi’s position as board chair, plus 3 unpaid appointments)
• Rolland Sizemore Jr. (D-District 5): $2,350 (11 paid, 2 paid alternates, 1 unpaid)
• Conan Smith (D-District 9): $1,800 (6 paid, 2 paid alternates, 1 unpaid)
• Felicia Brabec (D-District 4): $1,450 (8 paid, 1 alternate with stipend waived)
• Kent Martinez-Kratz (D-District 1): $800 (4 paid)
• Andy LaBarre (D-District 7): $550 (3 paid, 1 unpaid)
• Alicia Ping (R-District 3): $400 (2 paid, 2 unpaid)

In total, seven commissioners were paid $10,050 in stipends for 2013. There is no mechanism in place for validating attendance, other than checking the meeting minutes of these various groups. No one is designated to do that, however.

Outcome: All nominations were confirmed without discussion.

Coordinated Funding Policy

Commissioners were asked to give initial approval to a resolution stating that for the 2014 through 2016 fiscal years, departments and agencies of Washtenaw County government would not be eligible to apply for coordinated funding. There would be two exemptions: (1) if the funding was part of a collaboration of nonprofit agencies and/or community groups that can’t act as fiduciary on their own; and (2) if the applicant was the county’s Project Outreach Team (PORT). [.pdf of staff memo and resolution]

County commissioner Yousef Rabhi talks with Mary Jo Callan, director of the county’s office of community & economic development.

The county is one of several partners in the coordinated funding approach. Other partners include the city of Ann Arbor, United Way of Washtenaw County, Washtenaw Urban County, the Ann Arbor Area Community Foundation, and the RNR Foundation. It began as a pilot program in 2010, and has been extended twice since then. The most recent extension was approved by the county board at its Nov. 6, 2013 meeting, and authorized the allocation of children’s well-being and human services funding for 2014 through 2016. That resolution also authorized the continued management of those funds through the county’s office of community & economic development (OCED), using the coordinated funding approach – with some modifications.

The coordinated funding process has three parts: planning/coordination, program operations, and capacity-building. The approach targets six priority areas, and identifies lead agencies for each area: (1) housing and homelessness – Washtenaw Housing Alliance; (2) aging – Blueprint for Aging; (3) school-aged youth – Washtenaw Alliance for Children and Youth; (4) children birth to six – Success by Six; (5) health – Washtenaw Health Plan; and (6) hunger relief – Food Gatherers.

At the board’s Jan. 22, 2014 meeting, OCED director Mary Jo Callan told commissioners that the resolution brought forward that evening was in response to a request made by commissioner Conan Smith (D-District 9) last year. He had raised concerns about county departments competing with community groups for coordinated funding dollars. He had argued that if the county programs were worth funding, then the county should fund those programs directly. This resolution formally prohibited county programs, with some exemptions, from applying for coordinated funding.

Coordinated Funding: Public Commentary

Lefiest Galimore raised concerns about the coordinated funding approach to supporting human services. It’s blocking a certain segment of nonprofits from providing services, he said, and he urged commissioners to take a look at this problem. Essentially the same organizations are being funded from one cycle to the next, he said, and it doesn’t appear that there’s any accountability. He also criticized the argument that some groups shouldn’t be funded because they don’t have the capacity to provide services. Smaller organizations have fewer resources, he noted, so they aren’t able to do as much as larger entities – and he indicated that they shouldn’t be compared in the same way.

Coordinated Funding: Board Discussion

Conan Smith (D-District 9) asked Mary Jo Callan how much coordinated funding is received by the Project Outreach Team (PORT). Callan wasn’t sure, but thought it was about $100,000. Smith said he really believed that coordinated funding should be a community grant program, and that if a county program needs funding, “we should just fund that program, not tell them to go through a competitive grant program with an outside set of decision-makers.” He said he’d support the resolution, but thought a better approach would be to simply fund PORT directly. It would open up more funding for other community groups that aren’t part of the county infrastructure, he noted.

Yousef Rabhi (D-District 8) agreed with Smith. He asked what the funding source was for the money that PORT receives through coordinated funding. Callan replied that PORT’s funding comes from the city of Ann Arbor. She noted that the city had funded PORT for many years, prior to the coordinated funding program.

Ronnie Peterson (D-District 6) also agreed with Smith, saying it would be unfair for a county department to compete against a local nonprofit. He said he had expected to see additional issues addressed as well – issues that had been raised during the board’s discussion on Nov. 6, 2013. County administrator Verna McDaniel replied that other issues would be addressed separately.

Andy LaBarre (D-District 7) asked if this resolution would result in the county excluding itself from meeting a need. “Are we leaving something on the table that we really shouldn’t?” Callan replied that she didn’t think that was the case, especially because the policy specifically allowed a county department to act as a fiduciary for a nonprofit that would otherwise be ineligible for coordinated funding. The sheriff’s office, for example, has acted as fiduciary for a program that provides a lot of services to the community, she said, even though it isn’t a 501(c)3 nonprofit.

Outcome: Commissioners gave initial approval to the new policy regarding coordinated funding. A final vote is expected on Feb. 5.

Dog Licenses

Commissioners were asked to give initial approval to a proposed ordinance that would allow the county to issue municipal civil infractions for owning an unlicensed dog. [This ordinance would not apply to Ann Arbor residents, as the city of Ann Arbor has its own dog licensing program.]

From left: County treasurer Catherine McClary and county administrator Verna McDaniel.

The proposal would also establish that the county treasurer’s office to be the bureau for administering these infractions, and would set new licensing fees. [.pdf of proposed dog license ordinance] The board held a public hearing about this proposal on Jan. 8, 2014 when one person, Thomas Partridge, spoke. The board had held a previous hearing at its meeting on Oct. 16, 2013, but it occurred after midnight and no one attended.

More than a year ago, at the county board’s Nov. 7, 2012 meeting, commissioners approved a civil infractions ordinance that gave the county more flexibility to designate violations of other county ordinances as a civil infraction, rather than a criminal misdemeanor. For example, enforcement of the county’s dog licensing ordinance is low because the current penalty – a criminal misdemeanor of 90 days in jail or a $500 fine – is relatively harsh. The idea is that enforcement would improve if a lesser civil infraction could be used. The new civil infraction fines would be $50 for a first offense, $100 for a second offense, and $500 for a third or any subsequent offense.

An increase in the enforcement is expected to result in an increase in the number of dog licenses, which would provide additional revenue to be used for animal control services.

A draft resolution and staff memo had been prepared in November 2013 but the item was not brought forward to the board for a vote last year. The current proposal is similar to that initial draft. [.pdf of Jan. 22, 2014 resolution and memo]

The county treasurer’s office also is proposing to lower the current dog licensing fee from $12 to $6 per year for spayed or neutered dogs and from $24 to $12 per year for dogs that aren’t spayed or neutered. There would continue to be a discount for a three-year license. There would be no charge to license service dogs, with proper documentation and proof of rabies vaccination. More information about current dog licenses is available on the county website.

Deliberations at the Jan. 22 meeting included the importance of outreach to educate residents about the changes.

Dog Licenses: Board Discussion

Dan Smith (R-District 2) urged residents to license their dogs. The fine for a first offense is $50, he noted, which would be waived if the owner subsequently secures a license. The maximum fee for a three-year license is $30.

Ronnie Peterson (D-District 6) thanked the treasurer’s office for developing this proposal. He wondered what kind of educational information would be available to residents. He hoped the county would invest in some kind of educational component, especially for something that had a fine attached to it.

Alicia Ping (R-District 3) fully supported the idea of educational outreach, especially for rural areas. “Lots of people have lots of dogs in barns,” she said, and they aren’t necessarily aware of this ordinance. She also wondered if township offices could be allowed to sell licenses, at least during an initial period, so that it would be more convenient for residents who don’t live in Ann Arbor, where the county administrative offices are located.

County commissioners Yousef Rabhi (D-District 8) and Alicia Ping (R-District 3).

County treasurer Catherine McClary came to the podium and thanked the board for acting on this ordinance. She said she sees it as a public health issue – the purpose of licensing a dog is to prove that the dog has a rabies vaccination. “I don’t see it as a punitive measure,” she said, and agreed with the need for public education.

Although the ordinance could take effect 50 days after the board’s final vote, McClary told the board that she was contemplating an effective date even later – perhaps sometime this summer – to provide enough time for a proper rollout. One thing her office is considering is to send a mailing to every property owner in the county. When they did something similar about 10 years ago, dog licensing doubled, she reported. It’s been relatively flat since then.

The treasurer’s office has been handling dog licenses for the city of Ypsilanti for about a year, McClary said. It’s also possible for township treasurers to sell the county licenses, if they choose to do that. She noted that in the past, the township treasurers were given dog tags to sell, but there was no accounting for how many licenses were sold. There also was no central database for that approach, she said. Now, the paperwork can be handled by the townships, but the county treasurer’s office keeps the central database and mails out the actual dog tags. It’s also possible for residents to apply online, by mail or by fax.

Some veterinarians also sell licenses, McClary said, and she’d like to expand that to other vets in the county. Conan Smith (D-District 9) encouraged that approach, calling it an easy point of contact for responsible pet owners.

Yousef Rabhi (D-District 8) noted that when Conan Smith was chair of the board, “he had to deal with a very, very difficult process … in how we fund animal control in Washtenaw County.” [Rabhi was alluding to negotiations with the Humane Society of Huron Valley over how much financial support the county would provide to HSHV.] Revenue from dog licenses was a part of that conversation, Rabhi noted. In contrast, the process of bringing forward this new ordinance happened “without too many aches and pains,” he said. Rabhi also stressed the need for educational outreach to dog owners.

Commissioner Andy LaBarre (D-District 7).

Rabhi noted that the licensing fee can only be used to pay for administrative costs. He wondered how the revenue from fines is distributed. McClary replied that the fine revenue is divided between the courts, the county and possibly the district libraries, which receive revenue from penal fines. She said she’d provide the board with additional information about how the revenue from fines is allocated.

Rabhi encouraged McClary to consider allowing parks staff to issue citations, because many people bring their dogs to county parks. McClary said she’d talk with parks & recreation director Bob Tetens about whether some of his staff could be deputized for that purpose.

McClary also pointed out that there’s no uniformity with the city of Ann Arbor, which issues its own licenses and has a separate fee structure. At some point, after the new county program has been running for a while, McClary said she’d like to start discussions with the city of Ann Arbor about possibly coordinating their programs.

Rabhi noted that the county funds the HSHV, which provides services in Ann Arbor too. He appreciated that Ann Arbor was starting to help pay for that, but it seemed like there was still a duplication of services in some cases – like dog licensing – and resources weren’t being aligned in order for the licensing program to be most effective.

Outcome: The board gave initial approval to the ordinance allowing the county to issue municipal civil infractions for owning an unlicensed dog. A final vote is expected on Feb. 5.

Health Care Coverage for Autism

Diane Heidt, the county’s human resources and labor relations director, gave a presentation on a proposal that the county administration plans to make formally to the board at a future meeting: To begin offering health care coverage to county employees for the treatment of autism. She began by introducing Colleen Allen, CEO of the Autism Alliance of Michigan, who was on hand to answer questions.

County commissioner Conan Smith. In the background is Pete Simms of the county clerk’s office.

Heidt noted that last fall, commissioner Conan Smith (D-District 9) had directed staff to research mental health parity, specifically focusing on autism coverage. Mental health parity refers to recognizing mental health conditions as equivalent to physical illnesses, and Washtenaw County has been a leader in providing mental health coverage, Heidt said, even before federal mandates. But one area where there isn’t parity is autism.

It hasn’t been included so far because of cost considerations, Heidt told commissioners. The county continues to recover from the economic downturn, but more recently the staff became aware of resources that are available to help provide coverage.

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.

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, Heidt explained. Rather, the county is self-funded, and so it was exempt from this state mandate.

Heidt described how ASD has become more common over the past few decades – 1 in 88 children are now diagnosed with ASD. That increase is related in part to increased awareness, she noted. Intervention can include medicine, behavioral treatment, or a combination of both.

The costs are estimated to be about $60,000 a year to cover a child with autism. The state of Michigan has made coverage a priority, Heidt said, and has started setting aside funds to reimburse organizations that provide coverage. In fiscal 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.

For Washtenaw County, Heidt 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, Heidt said. The county would be fully reimbursed by the state of Michigan for the amounts that are allowed under the autism program.

Heidt said the county administration is recommending that starting Jan. 1, 2015, the county would offer a rider for autism coverage as part of its health benefits, as long as the state’s reimbursement program remains in effect. They would re-evaluate it on an annual basis, she said.

It would be possible to offer the benefit even earlier, Heidt noted – as soon as 90 days after approval by the board.

Health Care Coverage for Autism: Public Commentary

Ryan Schuett introduced himself as a Washtenaw County employee in support of the autism coverage that the board would be considering. He said he’s the father of a three-year-old autistic child who was diagnosed last year. He and his wife were happy to get a diagnosis, and started looking at treatment options. They initially weren’t concerned because they knew that the county provided great health care coverage, he said. But they learned that autism isn’t covered, and that has created a hardship for his family and other employees. He supported the change in coverage.

Michelle Schuett, right, spoke to county commissioner Felicia Brabec, far left, and Diane Heidt, the county’s human resources and labor relations director.

Michelle Schuett, who is married to Ryan Schuett, also spoke in support of the health care coverage to include treatment for autism. In the past year, her family paid for private insurance so that they could afford treatment for their daughter. She described how much of an improvement it made in her daughter’s ability to communicate. But they couldn’t continue to afford that insurance, she said, so they’re excited that the county board is considering coverage of it.

Health Care Coverage for Autism: Board Discussion

Conan Smith (D-District 9) said the county is learning more about autism and how many people are suffering from it. The county’s public policy hasn’t kept up with the needs for families. He thanked the Schuetts for putting a human face on an issue that the county can do something about. “It’s very courageous of you to stand up like that,” he said.

Felicia Brabec (D-District 4) noted that there’s a $10,000 difference between the estimated annual costs for treatment and the top amount that the state would reimburse. Who picks up that difference? she asked.

Colleen Allen of the Autism Alliance of Michigan explained that as a self-funded entity, the county could decide how much it offers as coverage – it could be more than the state reimbursement, or less. She also noted that if left untreated, costs will emerge in other ways later in life – if a child needs special education, for example, or can’t be employed.

Several commissioners expressed support for the coverage. Ronnie Peterson (D-District 6) felt the county should make a long-term commitment, and not rely on state reimbursement. He hoped the board could appoint a committee that would investigate the cost and sustainability of this type of coverage, and recommend a policy for funding coverage if the state reimbursement fund is exhausted.

Andy LaBarre (D-District 7) noted that his wife is a special education teacher, and the parents of the children she teaches are those who deal with this firsthand. He pointed out that the hours missed from work in dealing with a child who has ASD, not to mention the emotional toll, will affect productivity. The coverage will actually pay dividends in other ways in the future, he said. He volunteered to serve on the committee that Peterson suggested.

Conan Smith said he had initially thought the county had already offered this benefit. He reported that his wife, state Sen. Rebekah Warren, had asked him about it, and he then learned that it wasn’t coverage that the county offered. In terms of costs, he noted that applying national statistics to the number of county employees, it’s likely that only about 16 children of employees would be affected with some form of ASD. If each child needed the extra $10,000 per year in coverage – beyond what the state would reimburse – that would be a total of $160,000, he noted. He advocated for adopting the highest coverage, and he’d like to track how many employees actually access it.

Smith also supported offering the coverage as early as possible, rather than waiting until 2015.

Outcome: This was not a voting item.

Health Care Coverage for Autism: Committee

Later in the meeting, Yousef Rabhi (D-District 8) brought forward a resolution to appoint commissioners Felicia Brabec (D-District 4), Andy LaBarre (D-District 7) and Ronnie Peterson (D-District 6) to a committee related to the health care benefits for autism. 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 committee was asked to report back to the full board on Feb. 5.

Outcome: Commissioners voted to confirm the appointments to this new committee.

Health Care & Pension Benefits

Diane Heidt, the county’s human resources and labor relations director, prepared an update on the county’s overall health care and pension benefits. She provided a handout to commissioners, but did not make a formal presentation. [.pdf of health care and pension benefits presentation]

Alicia Ping (R-District 3) noted that some companies have required testing of new hires to make sure they’re nicotine-free. It wouldn’t apply to current employees, but Ping wondered if it’s something that the administration has considered for new hires. County administrator Verna McDaniel said it’s something they’d need to do more research on before bringing a recommendation to the board.

Conan Smith (D-District 9) asked Heidt if she could compile dollar amounts to show the county’s health care expenditures over the last decade, for both active employees and retirees.

Outcome: This was not a voting item.

PACE Program

Commissioners were asked to give initial approval to establish a countywide Property Assessed Clean Energy (PACE) program.

Andy Levin of Lean & Green Michigan.

The board had issued a notice of intent to create the program at its meeting on Jan. 8, 2014.

The goal of PACE is to help owners of commercial (not residential) properties pay for energy improvements by securing financing from commercial lenders and repaying the loan through voluntary special assessments.

The county’s proposal entails joining the Lean & Green Michigan coalition and contracting with Levin Energy Partners to manage the PACE program. Andy Levin, who’s spearheading the PACE program statewide through Lean & Green, had attended a Dec. 4, 2013 board meeting to answer questions. State Sen. Rebekah Warren also spoke briefly during public commentary on Dec. 4 to support the initiative. She was instrumental in passing the state enabling legislation to allow such programs in Michigan.

The law firm of Miller, Canfield, Paddock & Stone would act as legal counsel. Several other counties are part of Lean & Green, according to the group’s website. Other partners listed on the site include the Southeast Michigan Regional Energy Office, which was co-founded by county commissioner Conan Smith. Smith is married to Warren.

On Jan. 22, Levin again briefly addressed the board during public commentary, as did several business owners who supported the PACE initiative. The board also held a former public hearing on the proposal later in the evening, but Levin and others had left by that point and no one spoke during the formal hearing.

The county’s PACE program would differ from the one set up by the city of Ann Arbor, which created a loan loss pool to reduce interest rates for participating property owners by covering a portion of delinquent or defaulted payments. Washtenaw County does not plan to set up its own loan loss reserve, and no county funds would be used for the program, according to Levin.

However, a reserve fund is mentioned in documentation that describes the program:

8. Reserve Fund

In the event Washtenaw County decides to issue bonds to provide financing for a PACE Program, Washtenaw County can determine at that time to fund a bond reserve account from any legally available funds, including funds from the proceeds of bonds.

By participating in LAGM [Lean & Green Michigan], Washtenaw County assists its constituent property owners in taking advantage of any and all appropriate loan loss reserve and gap financing programs of the Michigan Economic Development Corporation (“MEDC”). Such financing mechanism can similarly be used to finance a reserve fund.

[.pdf of PACE program documentation] [.pdf of PACE cover memo] [.pdf PACE resolution]

PACE Program: Public Commentary

Six people addressed the board during public commentary about the PACE program. Kicking off the commentary was Andy Levin of Lean & Green Michigan. He told commissioners that some property owners and contractors had attended the meeting to speak about PACE and how the program affects their businesses. He thanked the board for moving the program forward.

Paul Brown introduced himself as an Ann Arbor and Washtenaw County citizen, who has spent his career working in finance. That includes some time spent working with Levin when Brown was vice president of capital markets at the Michigan Economic Development Corp. One of his tasks was to look at private capital markets, Brown said, especially those that didn’t work efficiently, and to try to “fill those gaps.” A lot of energy efficiency projects have a relatively long payout, he said, yet financing for that type of upgrade is of a relatively short duration. That results in a negative cash flow for the business. Brown described PACE as a revolutionary finance mechanism that allows a business owner to finance the project during its practical life, which makes it a cash-flow-positive scenario. When he was working for the state, Brown said, PACE was particularly attractive because it helped fill a financing gap.

From left: Commissioner Dan Smith (R-District 2) and corporation counsel Curt Hedger.

The state’s rule of thumb is if they can put in 10% capital and get a 10-to-1 leverage in economic activity, that’s a win, Brown said. PACE creates the economic activity with contractors and installation, but it also upgrades the infrastructure of buildings, which makes Michigan more competitive as a state, he said. One of the difficult things about Michigan is that its energy costs are relatively high, compared to other states. Combine that with a relatively old infrastructure, he added, and that’s a “double whammy,” making it difficult to become a competitive environment. PACE allows businesses in the state to help correct some of those inefficiencies and make them more competitive, Brown concluded.

The next speaker was Scott Ringlein, president and CEO of The Energy Alliance Group of Michigan, a partner of Lean & Green Michigan. He described a current project that they’re working on for McDonald’s in Washtenaw County – installing a geothermal system for about $85,000. With existing programs, like Michigan Saves, the business would only get financing for a 60-month period. But with PACE, that financing could be extended to 10-20 years, he said, which would result in immediate positive cash flow. A lot of technologies that are used for energy efficiency have a life of 20-30 years, Ringlein said. Another advantage is that the financing is tied to the property, not the business, he noted.

Alexis Blizman, policy director for the Ann Arbor-based Ecology Center, also supported the countywide PACE program. The economic benefits of the program and the ability for businesses to save money are really important, she said, but the program also benefits the environment. Investments in energy efficiency can significantly reduce greenhouse gases, she said, and help mitigate climate change. It’s the best way to reduce stress on the energy grid, to eliminate the need for new power generation, and to allow for time for the market to change so that the price of renewable energy decreases. She urged commissioners to support the program.

Mike Larson of Simon Property Group – developers of Briarwood Mall – also supported the PACE initiative, saying it allowed businesses to do projects that otherwise wouldn’t be possible. Briarwood Mall recently underwent a significant renovation, he noted. Upgrades included replacing all the lights with LED lighting – a costly but important change, he said. Larson concluded by urging commissioners to adopt the PACE program.

Zach Mathie of Patriot Solar Group in Albion, Michigan, expressed support for the county’s PACE program. It’s good for businesses, the community, and renewable energy, he said.

County treasurer Catherine McClary, speaking later in the meeting about the dog licensing agenda item, also addressed the board about the PACE program, saying there are compelling reasons to support it. From the perspective of the treasurer’s office, if a PACE project is delinquent, it would be no different than anyone else who might have a delinquent tax or special assessment, she said. Her office would initially advance money to the county to cover it, but if she couldn’t recover the delinquent taxes or assessment in a foreclosure or auction, then the county would have a charge-back and repay those funds.

The charge-back is one of two risks that McClary identified. The second risk is if an entity that’s exempt from special assessments – like a local government – purchases the property at a foreclosure auction. In that case, the stream of revenue from the special assessment would no longer be available. That risk can be mitigated if it’s clear that the financing entity, such as a bank, accepts the risk rather than the county. She said she’d be glad to work with whoever administers the program to ensure that the county taxpayers are protected.

The board also held a formal public hearing on the PACE program later in the evening. No one spoke during at that time.

PACE Program: Public Commentary – Board Response

Conan Smith (D-District 9) thanked the speakers who had supported PACE, noting that many of them had come from long distances. The county has supported this kind of environmental initiative and has enjoyed being on the forefront of innovation, he said. He hoped that by mid-February, there would be a PACE program that businesses could take advantage of in Washtenaw County.

Yousef Rabhi (D-District 8) also said he appreciated hearing from supporters of the PACE program, and he looked forward to acting on that.

There was no other discussion of this item before the board vote.

Outcome: Commissioners gave initial approval to establish a countywide Property Assessed Clean Energy (PACE) program. A final vote to establish the program is expected at the board’s Feb. 5 meeting.

Communications & Commentary

During the 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: Staff to Support Board’s Budget Priorities

Toward the end of the meeting, Ronnie Peterson (D-District 6) asked about an item that was on the Jan. 22 agenda, but not discussed. The item was listed as part of the county administrator’s report, and referred to direction that the board had given to county administrator Verna McDaniel at the board’s Nov. 20, 2013 meeting: To research and recommend staffing options that would support the board’s community investment priorities.

County commissioner Ronnie Peterson.

Peterson said he assumed that this directive emerged from a meeting of the board’s leadership. Addressing board chair Yousef Rabhi, Peterson said: “Give me some history … regarding this position, and where you’re going with it.”

Rabhi reminded Peterson that the board had discussed the need to continue the budget process beyond just a vote to approve it, which was taken at the end of 2013. McDaniel reported that she’s still gathering information in order to develop a recommendation. She planned to bring something to the board at a future meeting, and said she’s been working with Felicia Brabec (D-District 4) and other commissioners on a proposal. [Brabec is chair of the board's ways & means committee, on which all commissioners serve. She also led the board's budget process.]

Brabec added that with a four-year budget, the board also set up a new strategic model to help them determine where the county’s resources should go. To do that, the board needs some staff support, she said. The board set goals as well as outcomes that are intended to measure how those goals are being achieved. If the board doesn’t continue to move forward on these things, “there was really no point in doing that process,” she said.

Peterson said it sounded really vague to him. Brabec replied that they need to do a needs assessment and gap analysis – that’s the first step. Peterson contended that “somewhere, some major strategy is being laid” – he had read all of the budget documents, he said, and it wasn’t clear to him what was being proposed. He asked whether the proposal is simply a series of reports. He criticized commissioners for not paying attention to the agenda item that had mentioned the staffing recommendation.

Conan Smith (D-District 9) said his expectation was that the recommendation wouldn’t call for reports, but would be for staffing. He had hoped that McDaniel would hire a senior-level position, but she’d heard from other commissioners that such a position wasn’t broadly supported. “I think the reason you don’t have something in front of you today is that there’s tension about how we effectively staff the function that we’re describing,” Smith said. He expected McDaniel will now bring forward a job description or scope of work for a contracted position. He hoped the person would attend board meetings or working sessions to provide regular updates, and to work with the county’s senior staff and department heads as this process moves forward.

Peterson wondered how they arrived at this decision. It was important to discuss this as a board, he said. He criticized the board leadership, saying that part of their role is to communicate with other commissioners.

By way of background, the board – including Peterson – discussed this issue at length at its Nov. 20, 2013 meeting. From The Chronicle’s report of that session:

Regarding the “community outcomes” document and the revised budget document that now included a section on “community impact investing,” Peterson wondered if there was any indication about the amount of staff time and resources that would be required to implement this approach. He said he didn’t have a problem with the budget priorities themselves, but it wasn’t clear how those priorities would be carried out, or what line item in the budget was designated for this purpose. He said he’d like to see a timeframe for how the board could start addressing these priorities during the remainder of their term, which runs through 2014. Was any of this information in the budget document? he asked.

Felicia Brabec (D-District 4) replied, saying that the revisions added to the budget document on community impact investing had stemmed from the community outcomes resolution that was also on the Nov. 20 agenda. Other commissioners have raised similar questions about how these outcomes will be implemented, she said. The county administrator, Verna McDaniel, will be taking the lead on that. Brabec pointed to text in the revised budget document that outlined this approach: “The County Administrator will bring a planned recommendation to implement the Community Impacts process with appropriate staffing and budget at the first business meeting in 2014, January 22, for BOC approval.”

Where will the funding come from to implement this process? Peterson asked again. The county already has a lot of obligations, he noted.

Rabhi responded to Petersen, saying that in the previous two-year budget approach, the first year would be spent developing the budget, but the second year would be focused on other things. The intention of the proposed four-year budget and community outcomes approach is to help keep the board involved in the budget as a “living document,” Rabhi said, and to have an active role in managing the budget as circumstances change.

The Feb. 5 agenda now includes an item that would authorize the “creation of a contractual, qualified professional position to assist the BOC to develop strategies and provide oversight for the integration of the Board-defined community impacts and outcomes into organizational and departmental programs, policies and budget priorities.”

According to a staff memo, the position would report to the county administrator, and compensation would not exceed the scope of the administrator’s authority. [.pdf of staff memo and resolution on Feb. 5 agenda]

Communications & Commentary: Road Funding

Alicia Ping (R-District 3) reported that a subcommittee that’s exploring the future of the Washtenaw County road commission had met prior to the county board meeting that night. The subcommittee, which Ping chairs, had voted to ask the county board to pass a resolution urging Gov. Rick Snyder to allocate the state’s budget surplus for road repair, distributed to local entities using the current state formula for road allocations. [A resolution on this issue is now on the board's Feb. 5 agenda.]

Communications & Commentary: Mayoral Race

At the end of the Jan. 22 meeting, Yousef Rabhi (D-District 8) reiterated his statements from earlier in the month that he would not be running for the mayor of Ann Arbor this year. He restated his commitment to the county board.

The Chronicle queried another Ann Arbor commissioner, Democrat Conan Smith (D-District 9), about the possibility of a mayoral candidacy or a decision to run for re-election to the county board. Smith’s reply, via email on Jan. 23: “I haven’t made any decisions about 2014 at all at this point.”

Present: Felicia Brabec, Andy LaBarre, Kent Martinez-Kratz, Ronnie Peterson, Alicia Ping, Yousef Rabhi, Conan Smith, Dan Smith.

Absent: Rolland Sizemore Jr.

Next regular board meeting: Wednesday, Feb. 5, 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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County administrator Verna McDaniel and her finance staff had presented the budget on Oct. 2, 2013. The board gave initial approval to the budget on Nov. 6, with some amendments, on a 7-2 vote over the dissent of Dan Smith (R-District 2) and Ronnie Peterson (D-District 6).

The $103,005,127 million budget for 2014 – which represents a slight decrease from the 2013 expenditures of $103,218,903 – includes putting a net total of 8.47 full-time-equivalent jobs on “hold vacant” status, as well as the net reduction of a 0.3 FTE position. The recommended budgets for the following years are $103,977,306 in 2015, $105,052,579 in 2016, and $106,590,681 in 2017. The budgets are based on an estimated 1% annual increase in property tax revenues. [.pdf of draft budget summary]

Also on Nov. 6, the board scheduled a second public hearing to be held on Jan. 8, 2014 for a proposed ordinance that would allow the county to issue municipal civil infractions for owning an unlicensed dog. The proposal would also establish that the county treasurer’s office would be the bureau for administering these infractions, and would set new licensing fees. [.pdf of dog license ordinance] [.pdf of staff memo and resolution]

The first public hearing on this proposal, also held on Oct. 16 after midnight, did not draw any speakers.

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

The CSTS budget runs from Oct. 1 through Sept. 30, in sync with the state’s fiscal year. The county operates on a calendar year cycle.

The proposed $29,607,596 budget – an increase from the $26,838,557 budget approved for the current fiscal year – calls for eliminating 1 FTE as a result of reclassifying the job, and creating 2.7 new FTE positions. (Last year’s budget had a net loss of five FTEs, and an additional 19 FTE positions were reclassified.)

Though CSTS is a county department employing about 300 people, it receives 91.2% of its funding from the Washtenaw Community Health Organization, a partnership between the county and the University of Michigan Health System. The county provides another 1.2% of CSTS funding for services at the jail. The remaining revenue is generated by fee-for-service billing, according to a staff memo.

The WCHO is an entity that receives state and federal funding to provide services for people with serious mental illness, developmental disabilities and substance abuse disorders. At this point, WCHO “leases” its employees from the county, and contracts for services through CSTS.

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

Seven full-time-equivalent positions (a combination of part-time and full-time jobs) are being reclassified in the proposed budget. Last year, the department eliminated a net of nearly seven FTEs. The $10,998,870 budget includes a $3,553,575 allocation from the county’s general fund – unchanged from the previous year. Of that general fund allocation, $548,052 will be used to fund the county’s medical examiner program, according to a staff memo.

Unlike the county’s general fund budget, which is aligned to the calendar year, the public health budget runs from Oct. 1 through Sept. 30, in sync with the state’s fiscal year.

This coming year, the public health budget also includes two new vaccines that can be administered at the department’s clinics. Effective Jan. 1, 2013, meningococcal vaccines will be available at $120 per child and $125 per adult. HPV vaccines will be administered for $140 per child and $145 per adult. [.pdf of full fee schedule]

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

Sarah Pressprich Gryniewicz, left, talks with Washtenaw County commissioner Leah Gunn prior to the start of the Aug. 1, 2012 board of commissioners meeting. Gryniewicz is community outreach coordinator for the Ann Arbor Transportation Authority. (Photos by the writer.)

Because the articles were amended, they will need to be reconsidered by the other three parties in the agreement: the city councils of Ann Arbor and Ypsilanti, and the board of the Ann Arbor Transportation Authority, which is spearheading this effort. Those governing bodies are expected to take up the issue at meetings later this month. It will be on the Ann Arbor city council agenda for its Aug. 9 meeting.

Before the county board’s Aug. 1 vote, about a dozen people spoke during a public hearing on the issue, the majority of them in support of the agreement and of expanded public transit in general.

Although amendments had been considered and voted down at the board’s July 11 meeting, on Aug. 1 Rob Turner proposed a new amendment to the articles of incorporation. The original draft stipulated that a two-thirds majority of the new authority’s board would be required to amend the articles of incorporation. Turner’s amendment would have stipulated that a unanimous vote by the new authority’s board would be needed to make such changes. Leah Gunn offered a compromise – a four-fifths majority, or 12 of the new authority’s 15 board members. That amendment to Turner’s amendment passed on a 6-4 vote, with dissent from Turner, Conan Smith, Felicia Brabec and Wes Prater. The vote on the amended amendment itself – requiring the four-fifths majority – passed unanimously.

Turner felt his original amendment offered safeguards for smaller communities. It’s possible for communities to decide to join the new transit authority, only to have the articles of incorporation – the “rules of the game” – changed after they’ve joined, he said. If his amendment had been approved, Turner said he would have supported the four-party agreement and articles of incorporation. He said it no longer seemed like a countywide authority – it seemed like an Ann Arbor system that others could join. That saddened him, he said.

Joining Turner in his final vote against the overall agreement and articles of incorporation were Alicia Ping, Wes Prater and Dan Smith. Rolland Sizemore Jr. was absent.

A range of other items were on the Aug. 1 agenda. Commissioners suspended the county’s use of Construction Unity Board (CUB) agreements, responding to a change in state law. They also gave final approval to a change in the county’s accommodations ordinance, exempting bed & breakfasts, cottages and individuals who occasionally lease out rooms from the 5% accommodations tax. And addressing a need for veterans, the board authorized the county clerk to offer photo IDs that can be used to redeem discounts offered at local businesses.

On an 8-2 vote, commissioners also approved a brownfield financing plan for a $39 million residential development at 618 S. Main St. in Ann Arbor. Before the board’s vote, both Felicia Brabec and Yousef Rabhi praised the development, but said they were voting against it because of concerns about affordability. They did not feel that most young professionals would be able to afford living there, and stressed the importance of having more affordable housing in the downtown area.

The board also heard a report from the county treasurer, and got a second-quarter financial update from staff. Commissioners then approved a $1,263,994 mid-year adjustment to its 2012 general fund budget, bringing the 2012 general fund budget to $101,162,770.

In one of the least controversial items of the meeting, commissioners passed a resolution commending the Washtenaw Community Concert Band – formerly the Ypsilanti Community Band – on its 35th season. Dan Smith, who plays the trumpet, is a member of that group.

Countywide Transportation

Commissioners were asked to approve a four-party agreement and articles of incorporation for a new public transit entity tentatively called the Washtenaw Ride Transportation Authority.

The other parties in the agreement are the cities of Ann Arbor and Ypsilanti, which both would contribute existing millages to the new authority, and the Ann Arbor Transportation Authority, which would shift its assets to the new entity. The governing bodies of those three parties had previously approved the transit documents, after going through their own amendment process. [.pdf of pre-amended four-party agreement and articles of incorporation]

The county board had given initial approval at its July 11 meeting, after a lengthy debate and a split 7-4 vote with dissent by Alicia Ping, Wes Prater, Rob Turner and Dan Smith. At that meeting, several amendments proposed by commissioner Dan Smith were discussed, but none of the amendments secured enough votes to pass. Those amendments had been similar to proposed changes that Smith had put forward at a three hour working session on June 14.

The county would not be contributing assets or a millage to the new authority. Nor would the county board be asked to put a countywide millage request on the ballot. Rather, the county’s role would be for the county clerk to file articles of incorporation with the state – an action to create a transit authority under Michigan Act 196. When formed, the Act 196 board would have authority to put a funding proposal on the ballot for voters to consider. A financial advisory group that’s been working on this effort has suggested that revenues equivalent to a 0.5 mill tax would be needed to cover the cost of expanded services for the first five years. [.pdf of financial advisory group report]

For other general Chronicle coverage of transit issues, see: “AATA Board OKs Key Countywide Documents.”

Countywide Transportation: Public Commentary

Speakers addressed the board on the topic of countywide transit during general public commentary as well as during a public hearing specifically on the four-party agreement and articles of incorporation. Several other transit supporters attended the meeting but did not formally address the board. Joel Batterman of Partners for Transit, who had sent out an email urging people to attend the meeting, was on hand to pass out stickers that stated support for expanded public transportation.

Here’s a summary of remarks made during public commentary and the public hearing on Aug. 1.

Thomas Partridge told commissioners that he’s a Democratic candidate for state representative in District 53, and he supported the countywide transit agreement. The county’s most vulnerable residents, including senior citizens and the disabled, need better access to affordable public transit, he said.

Jim Mogensen reminded the board that although people talk about the Ann Arbor public transit system starting in the 1970s, in fact the first time a local public transit system was proposed happened in the late 1950s. At that time, however, voters didn’t support the formation of a system. An alternative approach was passed in the 1970s, including a millage to support the Ann Arbor Transportation Authority. He referred to the current effort at expansion as a Pandora’s box, and likened it to a previous effort to pass a millage for a county jail expansion. That was a very complicated process, but voters ultimately rejected the bond proposal for it, he said. The jail eventually did expand, but in a different way, he noted. Now, the same dynamics are happening with public transit. Mogensen urged commissioners to take a step back, listen to concerns, then take leadership to move the county forward in a constructive way.

Joel Levitt said he’s been a resident of Ann Arbor for 40 years, and now his daughter, her husband and one-year-old grandchild are also living here. The health of the county depends on the health of Ann Arbor, he said. The city is the center for industry, commerce, health services and culture. For that to continue, the city can’t have poor and overcrowded roads and inadequate parking. There must be a superior public transit system from the city to every corner of the county, and improved services within the city as well.

Charlie Nielsen told commissioners that he’s the former Scio Township supervisor. He remembers the day when his son used to take the bus – when AATA used to provide service to Scio Township. It was invaluable in helping his son attend classes at Washtenaw Community College, he said. But Scio Township later couldn’t pay for the service, so it stopped. Nielsen noted that he serves on the advisory committee for the current countywide transit effort, and supports serving the whole county. One of the reasons he’s proud to live in this county is because of the human services that are provided, and countywide transit is in that same spirit. He noted that he’s president of the homeowners association for Scio Farms Estates, where many of the residents are getting older and could benefit from a public transit system. He urged commissioners to support it.

Waleed Howrani said he’d been a resident of Ann Arbor for 37 years. He finds it hard to believe that people aren’t doing more to save the environment. Resources should be used wisely, not recklessly. The auto industry doesn’t care about how many natural resources are dug up to build their cars, or about emissions from those vehicles. Howrani said he’s proud of the AATA. He’s taken public transportation in over 30 states, and no other system as as clean, efficient, and friendly. Although he does use Amtrak, he feels helpless when he needs to travel to neighboring towns and states. He loves that he can read on the bus and leave the driving to others. He noted that every bus can eliminate 50 cars from the road, and saves many lives as well.

Tad Wysor said he’s passionate about community organizing and mass transit. He lives in Ypsilanti Township and works in Ann Arbor, and said he’s blessed to have dependable buses on both ends of his commute, with bike racks. But for most folks, it’s not that easy. With residents struggling because of the economy, now is a great time to pull together, focus on common values, he said, and greatly improve mass transit in the county and beyond. He said he’s involved in a new coalition on the east side of the county involving clergy, labor and other community leaders. They haven’t yet decided how they’ll focus their efforts, but expanding and improving mass transit is one possible area. It’s hard for him to imagine an issue that would be more effective in helping the economy, he said. It could help connect employers and employees, get people to medical appointments and places of worship, and keep senior citizens more engaged in the community. Now’s the time to pull together and make it happen.

David Sponseller said there’s probably no one in the room who did more to help launch AATA than he did. In 1969, he spoke up to urge government leaders to support the public transit system. He encouraged his son to help promote it and urge residents to vote in favor of the millage. But that was a huge mistake, he said. He had no idea that although the system would grow, it would fail to win people over to use it. Less than 5% of people in Ann Arbor ride the bus, he said. People still love the convenience of their cars. Public transit is successful in areas that have high density – places like Toronto, Chicago and New York. But that’s not the case in Ann Arbor. Sponseller wondered how they can expect people in less dense parts of the county to embrace public transit, when Ann Arbor residents haven’t been won over. He argued that more energy is spent on fueling buses that have only one or two riders, than on cars. For the sake of avoiding costs that his grandchildren would have to pay, he urged the board to not support the project.

Larry Krieg of Ypsilanti Township said he was there to speak in favor of the agreement. For anyone who thinks the buses are empty, he urged them to ride one – it’s not the case that they’re empty, he said. Krieg, a retired faculty member at Washtenaw Community College, said he observed that if a WCC student’s car fails, then that student is likely to fail. Education is important for the entire county, as well as for individuals. Reliance on auto transportation also locks people out of the economic system, because many jobs require that you have a car, he said.

Countywide public transit will give people who don’t live in Ann Arbor and Ypsilanti the chance to participate in the economic system, he continued. Krieg said he also supports expanded public transit because of his grandchildren. One of his children went to the east coast for a job, and another went to the west coast for the same reason, because the economy is more prosperous there. He’d prefer that his grandchildren wouldn’t have to make that choice, and could stay in Washtenaw County. The county needs a solid public transit system.

Nancy Kaplan talks with Joel Batterman of Partners in Transit before the start of the Aug. 1 county board of commissioners meeting. Kaplan, a member of the Ann Arbor District Library board, raised concerns about the proposed governance of a countywide transit authority.

Nancy Kaplan of Ann Arbor described expanded public transit as a great idea, but said she had several concerns about the proposed process. Some of those concerns relate to the board for the new authority. Board members aren’t required to be residents of the county, she noted, and there’s no real oversight of the board – it’s questionable representation without accountability, she said. Kaplan noted that several services outlined in the five-year transit plan have already been implemented by AATA, which shows that these services can be provided under the current system. The services include commuter bus from Ann Arbor to Chelsea and Canton, but she wondered why Ann Arbor pays for that, without contributions from the other two communities.

Why not test out interest in service levels by signing five-year point-of-service agreements with other communities? asked Kaplan. That would let people see if residents of those communities are willing to fund transit services, and if they’re satisfied with the service they get, she said. There are many other unknowns regarding process, scope and fare increases, Kaplan said. She asked commissioners to test it out for several years before committing to a new transit authority.

Jan Wright of Pittsfield Townshp supported the agreement. She lives two miles from the nearest bus line. She just turned 70 and is doing great, she said, but she knows that won’t always be the case. She’s not the only person in this situation. As the population ages, there are a lot of people who won’t want to be stuck in their homes or forced to move, she said. Wright also has strong concerns about climate change, especially after the strange weather we’ve been having over the past year. Public transit is a way to have sustainable transportation, she said. Gas prices will probably increase, and that’s another reason to support public transit.

Matthew Braman of Milan also supports expanded public transit. He grew up in this county, attended a state-funded public university here, but is continuing his professional career in New York City – in large part because he can’t continue to live in Milan and work in Ann Arbor. He described how his car broke down earlier this year, and he had to rent a car from a friend. He’s been working with the Michigan Prisoner ReEntry Initiative (MPRI), and noted that ex-prisoners on parole are trying to find work and the community needs to find ways to help them succeed. Public transit would open up job opportunities in other communities.

Sayan Bhattacharyya told the board that he’s a graduate student at the University of Michigan. No one in his family had ever owned a car, and coming to Ann Arbor was the first time he’d seen snow. He’s afraid to drive in the winter, and that’s one reason why public transit is important. There are a lot of people like him, he said. When he graduates next year, he’ll be looking for a job, and part of the decision will be based on transportation choices. Bhattacharyya also said that he loves Ann Arbor because of its cultural offerings, but it’s frustrating that he can’t go to cultural events in places like Chelsea or Dexter unless he rents a Zipcar. He noted that he’s not a U.S. citizen so he can’t vote for them – a comment that elicited laughter from commissioners. He said he’d never been to a public forum like this, and had previously only read about democracy in action.

Robert Klingler said that about 18 months ago, he slipped on black ice and tore the tendon off his knee. It’s been humiliating, and he’s had to depend on services offered by AATA, including RideConnect. He lives just outside the Ann Arbor city limits, and taking the bus to work can take 45 minutes one way. It would be nice to catch a bus to go downtown, to restaurants, to church. If public transit were expanded, more people would come to Ann Arbor, he said. Klingler concluded by noting that the city and county are praised as good places to retire, but we’re not ready to accommodate retirees.

Countywide Transportation: Board Discussion

Yousef Rabhi, a Democrat who represents District 11 in Ann Arbor, began by thanking everyone who spoke during public commentary. He’s very much in favor of countywide transit – it’s desperately needed, and should have been expanded a while ago. He wanted to respond to some of the comments made during the public hearing. The idea that just because people love cars means that the community should give up public transit is like saying that because people like nicotine, we should give up on trying to quit smoking. We shouldn’t give up on public transit, he said. We should work to make it better.

Regarding empty buses, Rabhi said he used to regularly ride the Route 2 bus and during the winter, buses would be so packed that they would have to pass by people who were waiting at bus stops. There was no room for additional passengers. That’s not the case on all lines, but it’s not true that buses are empty. He noted that ridership is up on Route 4, between Ann Arbor and Ypsilanti, after AATA increased the frequency of bus service.

This is not the perfect plan, Rabhi continued, but you can’t expect perfection. It’s the start of the process, and moves the county in the right direction. It will make an impact on greenhouse gas emissions. He noted that he shared some concerns raised by Nancy Kaplan – saying he agreed that the AATA shouldn’t be providing service to Chelsea and Canton unless those communities are willing to pay for it. This new transit proposal does give Chelsea residents the opportunity to pay, he said, and he’ll continue to lobby AATA and ask them not to serve areas that don’t pay. But that’s not what the four-party agreement and articles of incorporation are about.

Today, the board will be creating a new entity, he said, and that entity will choose whether to put a proposal on the ballot for voters to decide. “This is direct democracy, folks,” Rabhi said. If Ann Arbor voters reject a funding proposal, then the broader public transit won’t happen. He said he supported the resolution before the board, and thinks it should move forward.

Rob Turner also thanked the public speakers. He’s been hearing from people in his district who are both for and against the proposal. [Turner, a Republican, represents District 1, which covers a large portion of western Washtenaw County, including Chelsea and Dexter.] Public transportation is important – it will help the county grow and prosper, and help people who are struggling to find jobs, he said.

Countywide Transportation: Board Discussion – Amendment

But Turner said he did have a major concern, and that’s why he was proposing an amendment to the articles of incorporation. [A written text of the amendment had been circulated by Conan Smith before the meeting started.] The original draft stipulated that a two-thirds majority of the new authority’s board would be required to amend the articles of incorporation. Turner’s amendment struck the two-thirds majority, and stipulated that a unanimous vote by the new authority’s board would be needed to make such changes. The amendment was seconded by Alicia Ping (R-District 3).

Rob Turner, a Republican representing District 1 – covering the western part of Washtenaw County – was unable to convince a majority of his fellow commissioners to adopt an amendment he put forward for the articles of incorporation of a new transit authority.

Turner said that the directors of the new authority’s board could change the structure of the authority – so it could become something different than communities originally opted into, he said. His amendment would provide a safeguard against that, he said. Otherwise, he couldn’t support the articles of incorporation or four-party agreement.

Leah Gunn responded, saying the board has gone over and over these documents, and had given initial approval at their July meeting without amendments. The problem with amending it now is that it would then need to go back to the other three parties for re-approval, she said. Gunn also felt it was unfair to require unanimity. That’s a high bar, she noted, and it means that one jurisdiction could “destroy” everything. Ann Arbor is passing over a huge amount of assets to the new entity, she said, and Ann Arbor needs as much protection as other jurisdictions. [Gunn, a Democrat, represents District 9 in Ann Arbor.]

Gunn then proposed amending Turner’s amendment – striking “unanimous” and inserting “4/5 (12 out of 15) vote of the directors seated and serving.” Four-fifths is a very strong majority, she said. Her amendment was seconded by Rabhi.

Barbara Bergman said she agreed with Gunn. She also wondered if requiring unanimity was legal, and asked Curtis Hedger, the county’s corporation counsel, for his opinion. He said he hadn’t had the chance to look at the question, but in general, whatever the four parties agreed to would be legal – though unanimity might make it more cumbersome to get things done.

Bergman said that one person could be easily swayed by a contractor, for example, and unanimity would make board members of the new authority extremely vulnerable to that kind of pressure. She said it scared her to think of the amount of capital that had been paid for with her tax dollars riding on the whim of one person.

Rabhi also supported Gunn’s amendment. As a practical matter, not every jurisdiction will opt in to the Act 7 districts that form the basis for the new authority, he said. So in some cases, it might be only one township that represents a district. If a unanimous vote of the authority’s board is required, that means that action could be blocked by just one small township, he said. Certainly the bar to change the articles of incorporation should be high, Rabhi said. Two-thirds is high, and four-fifths is even higher. He encouraged commissioners to support Gunn’s amendment.

Ping said she’d support Gunn’s amendment, but she wouldn’t be supporting the overall agreement. [Ping had voted against it at the July 11 meeting.] But she thought the agreement would pass, and a four-fifths majority would be the best option for the entire county.

Turner said he didn’t understand why Gunn could argue against his original amendment, saying that it would have to go back to the other three parties. Her amendment would also require that action, he noted. He shared the concern that Rabhi had mentioned – that one township could block a vote. But in his part of the county, one of the Act 7 districts comprises eight townships. That means that eight townships would be represented by only one director on the new authority’s board.

Any amendment to the articles of incorporation would change the structure of the new authority, Turner said. He added that this is the only instance in which he’s pushing for unanimity, because it’s an important safeguard. It’s a safeguard that might make the difference between a local entity joining the authority or not.

Wes Prater weighed in, saying these articles of incorporation should last a long time. Everyone should be on board, or it shouldn’t be done. The need for a unanimous vote might never come into play, he noted, or it might be very rare. He wanted to reject Gunn’s amendment and keep Turner’s.

Ronnie Peterson, a Democrat who represents District 6 in Ypsilanti and a portion of Ypsilanti Township, said he wanted to see the out-county jurisdictions participate in the new authority. But he found it difficult to see how unanimity could work effectively. On the other hand, he could see the difficulty of having rules change in midstream. Overall, he just hoped they could get this bus rolling.

Conan Smith said that the articles of incorporation only include five articles that state the board “shall do” certain things. The rest of the articles are characterized as “may do.” So the “shall do” items cause the greatest concern, he said. The first relates to jurisdictional boundaries and of the districts within the new authority, he said. Two other items have impact on the board makeup: Board qualifications that require a director to be a Washtenaw County resident, which the commissioners previously debated, and the board members’ terms and compensation.

Directors will serve without compensation, and people want to protect that, Smith said. [Smith did not mention this, but the articles of incorporation allow the residency requirement to be waived – that was an element of debate at the board's July 11 meeting.]

Conan Smith, chair of the Washtenaw County board of commissioners.

The fourth “shall” is the right of employees to collective bargaining, Smith said, and the fifth one provides pension protections to AATA employees who move to the new transit authority. On balance, the rest of the articles say “may do” or “may not do,” Smith contended. So the “shall” items are just those that would be impacted by a vote of the new authority’s board to change the articles of incorporation, he said. Setting the bar to require unanimity seems fair and reasonable, he added. Smith noted that he has served on boards that operate on a consensus basis. In cases like this new transit authority, it’s not too much to ask to make it as inclusive as possible and make sure everyone in the county has a fair say.

Gunn responded, saying she had no idea what Smith was talking about – his speech obfuscated the whole issue. The amendment being considered doesn’t apply to any specific article of incorporation. It would apply to all of them. She also noted that the idea of fairness works both ways. It’s important to be fair to the smaller communities, but also to larger communities that have “paid and paid and paid” – that’s the community she represents, Gunn said. A four-fifths majority should work.

Responding to Turner’s comment, Gunn said of course she was concerned that her amendment will also require that the documents be reconsidered by the other three parties. But she was trying to compromise, she said, because unanimity won’t work.

Directing his comments to Gunn, Prater said it’s true that Ann Arbor has paid and is contributing its assets, but it’s been Ann Arbor residents who have primarily used the AATA over these years. The AATA has also received a lot of state and federal grants, and that’s partly his tax dollars, Prater said. [Prater, a Democrat from York Township, represents District 4 covering the southeast side of the county.] He again urged support for Turner’s original amendment.

Bergman then called the question on Gunn’s amendment, a parliamentary move that forces a vote.

Outcome on Leah Gunn’s amendment to Rob Turner’s amendment: It passed on a 6-4 vote, with dissent by Turner, Conan Smith, Felicia Brabec and Wes Prater.

Countywide Transportation: Board Discussion – Amended Documents

Peterson asked for clarification – the new authority’s board can amend the articles of incorporation at any time? That’s right, Hedger said. So the authority’s board could change any of this in the future? he asked. Yes, Hedger replied.

Felicia Brabec clarified with Hedger that the vote before them was to accept the amendment requiring a four-fifths majority to alter the articles of incorporation, or to keep the original two-thirds majority requirement, which has already been approved by the other three parties. She said she appreciated Gunn’s attempt to compromise, but she was struggling with it. She generally likes to compromise, but would have preferred Turner’s original amendment. She’d support the four-fifths compromise, because she didn’t agree at all with requiring just a two-thirds majority.

Turner said he’d support the amendment, because it will provide additional safeguards for the articles of incorporation, which he felt the board would ultimately approve. But he said he’d now be voting against the four-party agreement and articles of incorporation, when it came for a vote later in the meeting.

Outcome on vote to amend the articles of incorporation: Commissioners unanimously passed the amendment requiring a four-fifths majority to change the articles of incorporation.

Later in the meeting, the board considered the resolution to approve the four-party agreement and the amended articles of incorporation. Dan Smith said he had applauded the AATA for taking a leadership role in this effort. He noted that he has no problem with the notion of public transit – he used it when he lived in the Netherlands and in Germany. The role that the county board is being asked to play puts them in the middle of this process, he noted, and it’s largely a ministerial role. They are being asked to adopt articles of incorporation that will last a very long time. He didn’t see the board’s role as saying public transit is good or bad, or as lobbying for or against it, or as determining the services that a new entity might provide. Commissioners’ role is to put a new authority in place so that the authority’s board can make those decisions.

Smith said he wasn’t satisfied about the articles of incorporation for reasons that he had elaborated on at the July 11 meeting and the previous working session. For those reasons, he said, he’d be voting no.

From left: County commissioner Wes Prater and Charlie Nielsen, former Scio Township supervisor.

Wes Prater read a one-page statement about the process. He stated that as of today, the AATA was not in compliance with the section of the four-party agreement that requires the AATA to publish details about the new entity’s service and funding plan in local newspapers. Until that happens, he said, the board shouldn’t approve the four-party agreement and articles of incorporation. “Without the details,” he said, “it’s like buying a pig in a poke.”

He noted that the articles of incorporation don’t state a date for the new authority to become operative and for the articles of incorporation to take effect. Not setting that date is a violation of state statute, he contended. This information is critical for local governments to know as they decide whether to opt out or participate in the new authority. He also argued that the sections in the articles of incorporation that provide ways to dissolve the authority should be removed, because these methods of dissolving the authority have no standing under Act 196. He cited a December 1998 opinion issued by former attorney general Frank Kelly to support that fact.

All of these issues should be resolved before the county board adopts the four-party agreement or articles of incorporation, Prater said.

Rob Turner described it as a difficult situation. All he hears from Leah Gunn is how much Ann Arbor has contributed and how much Ann Arbor would be sacrificing. It doesn’t sound like a countywide authority, he said. It sounds like an Ann Arbor authority that’s allowing other local governments to join. He said he’d be voting no, and that it breaks his heart. He hopes that the new authority will be more inclusive in the future. He’ll now have to go to the governing entities in his district and make sure they know the dangers. People in his district had told him that it would be an Ann Arbor authority, and he had told them it would be countywide. Now that will be thrown in his face, Turner said. He thought his amendment would pass, but he now believes it will be an Ann Arbor authority – he’s afraid those people were right.

Barbara Bergman said she was sorry for Turner’s sad heart, but she’s been paying taxes in Ann Arbor for the last 32 years, and that’s been a fairly substantial amount. She’ll be paying even more, if voters approve an additional transit tax. But everyone has skin in the game, she said – this isn’t just an Ann Arbor system.

Conan Smith observed that a different governance model would have guaranteed other things, but they would have to trust that directors of the new authority will do what’s best.

Felicia Brabec said she’d been reassured by AATA leadership about concerns she’d raised regarding her district of Pittsfield Township. People in her district were excited about expanded transit. She hoped Turner’s concerns would be laid to rest as the process unfolds.

Prater said he wanted to get another two cents in. It doesn’t matter what the county board does, he said – as soon as the new authority’s board is in place, that board can do whatever it wants. ”We can wail about it all we want to, but they can.”

At that point, Yousef Rabhi called the question.

Outcome: On a 6-4 vote, commissioners gave final approval to the four-party agreement and amended articles of incorporation that set the foundation to form a new transit authority. Voting against the resolution were Alicia Ping, Wes Prater, Rob Turner and Dan Smith. The documents will now need to be reconsidered by the other three parties – the city councils of Ann Arbor and Ypsilanti, and the AATA board.

2nd Quarter Financial Update

Tina Gavalier, Washtenaw County’s finance analyst, gave a second-quarter financial update that showed an improved outlook from her first-quarter presentation to the board in mid-May. The county’s fiscal year is based on a calendar year – the update covered the first six months of 2012, through June. [.pdf of chart showing general fund projections]

As she did for the first-quarter update, county administrator Verna McDaniel again introduced the presentation by saying that the main message is still “stay the course.”

Second-Quarter Budget Update: General Fund Revenues

Revenues for the general fund are now projected to be about $2.085 million more than budgeted – due primarily to about $2.5 million more in property tax revenues than originally anticipated. Total revenues for the 2012 general fund are expected to reach $100.83 million. [The board had received the news about the higher property tax revenues at its April 18, 2012 meeting, when the county equalization report was presented.]

Gavalier reviewed some of the revenue variances for specific units. Revenues for the sheriff’s office are projected to be about $835,116 less than budgeted. Much of that amount is caused primarily by delayed implementation of the county’s dispatch consolidation with the city of Ann Arbor. [At its Dec. 5, 2011 meeting, the Ann Arbor city council approved a $759,089 annual contract with the county, which was supposed to start in March of 2012. Hiring is underway, but the consolidation hasn't yet happened.] Other items that contributed to the shortfall include no revenue so far for towing contract administration fees (contract amendments are in progress) and lower-than-projected concessions revenue for the corrections service center lobby coffee shop and other food venues.

Projected revenues for the Washtenaw County Trial Court also are falling short of budgeted amounts by about $208,000, primarily because of lower-than-budgeted court equity funds that are disbursed by the state. A projected shortfall of about $114,000 in the 14A District Court is due to lower court fees and fines, attributed to a declining trend in case filings.

Second-Quarter Budget Update: General Fund Expenditures

Gavalier reminded commissioners of amendments they made to the budget in late 2011 and early 2012. At their Dec. 7, 2011 meeting, commissioners voted to reinstate $128,538 in funds for human services nonprofits – administered via the coordinated funding model – that had previously been cut from the budget. On Jan. 18, 2012, the board voted to approve the consolidated dispatch between the county and city of Ann Arbor, and authorized the creation of 15 full-time positions. That vote increased the budget – on both the revenue and expenditure sides – by about $1.4 million. Also, at their Feb. 15, 2012 meeting, commissioners approved a $165,000 expenditure increase as part of a new contract with the Humane Society of Huron Valley, for animal control services through 2012.

Chart showing Washtenaw County general fund projection as of June 30, 2012.

Regarding overall expenditures, Gavalier reported that expenses are $808,251 more than budgeted for the general fund. That’s due in part to higher-than-expected costs in the sheriff’s office from greater use of part‐time temporary workers and overtime, operating supplies, and jail medical/food contracts.

General fund expenditure projections include an assumption that there would be a lump sum expense reduction of $2.481 million for the year – an amount that’s not specific to any particular department, but that would be gained from across the organization. So far, $1 million in reductions have been identified, due to the high number of retirements last year (118) with 97 of those coming in the last quarter of 2011. The savings come from several unfilled positions following those retirements, as well as from lower salary and fringe benefit costs for new employees replacing the retirees.

However, some of those savings have been offset by increases in part‐time temporary costs and increased fringe benefit costs. A high number of medical claims were made over the last five months of 2011, Gavalier reported. Since there’s typically a six-month processing delay for those claims, most are being paid in 2012. Changes in the county’s employee medical plan are expected to contribute to the lump sum reductions later this year, she said. Overall, only about $282,000 in net lump sum reductions have been realized so far this year – about the same amount as was reported in the first-quarter update. More reductions are anticipated to be recorded in the third quarter, she said.

The 2012 budget had anticipated a surplus of $1.889 million, but the administration is projecting a surplus of $1,277,318 – a significant increase from the $272,238 that had been projected in the first quarter. That surplus is intended to carry over into the 2013 fund balance. The county faces a $612,065 shortfall in the amount it had budgeted for the fund balance contribution.

Second-Quarter Budget Update: Non-General Fund Items

Gavalier also reviewed several county operations that are not supported by general fund revenues. Units that are projected to show a surplus include child care, facilities management, Friend of the Court (due to trial court consolidation and cost containment efforts), public/environmental health, building inspection, and risk management units. Units that are on budget include the office of community & economic development, the prosecuting attorney’s office, and the office of veteran’s relief.

One unit – programs supported by the Act 88 millage, related to economic development – is projecting a shortfall, but had budgeted to use its fund balance in 2012 to cover the overage, Gavalier said.

Second-Quarter Budget Update: Issues to Watch

Gavalier listed out several areas that the administration is monitoring closely, including some that she had highlighted in her first-quarter update. Medical costs are difficult to project, because the trend of claims is evolving under the new medical plans for employees. The budget was developed based in part on projected costs provided by Blue Cross Blue Shield, Gavalier noted. But because the county is self‐insured, it pays the actual costs of its employees’ medical claims. July was the first month that the county started to see how claims have adjusted under the new medical plans, so the third quarter of this year – from July through September – will show a better reflection of actual savings.

Another area to watch relates to state revenue-sharing and the state’s new economic vitality incentive program, intended as a replacement to revenue sharing. Gavalier reminded commissioners that the county’s revenue-sharing reserve fund will be depleted in 2013. The state’s adopted budget includes a partial allocation to Washtenaw County in 2013 of $1,177,601, if the county meets three specific areas of compliance incentives: (1) accountability and transparency; (2) consolidation of services; and (3) employee compensation with defined eligibility requirements outlined for each area.

Personal property tax (PPT) reform legislation is another uncertainty, Gavalier said. There will be an impact, but the magnitude is uncertain. Currently, PPT revenue for the county is $5.6 million. Current versions of bills to repeal the PPT  include reductions in tax revenue starting in 2013 of about $390,000 for industrial and commercial properties, with additional reductions phased in each year through 2022.

Gavalier also reported that the county’s annual actuarial valuations for its retirement plan (the Washtenaw Employees Retirement System, or WERS) and retiree health benefits (the Voluntary Employees Beneficiary Association, or VEBA) will be completed this summer. With 118 retirements in 2011, there will certainly be a cost impact to those plans, she said. The valuations might also increase the cost of fringe benefits for active employees too.

In addition, the county expects to complete a cost allocation plan (CAP) by this summer, Gavalier said, outlining how much each department will be accessed. CAP is an amount charged to each county department for things like the county attorney and administration. CAP amounts have been waived or frozen in recent years, but will be adjusted for the 2012-2013 budget cycle.

2nd Quarter Financial Update: Board Discussion

Barbara Bergman referred back to the budget adjustments that had been made earlier this year, and pointed out that the adjustment of an additional $165,000 for animal control services was higher than the additional $128,538 for human services. She wanted other commissioners to think about that. She noted that most public employees choose their jobs not because of large salaries, but because of the satisfaction it gives them to be public servants. Bergman expressed concern that people might no longer be able to afford that choice, if they’re asked for more labor concessions. She indicated that’s the context in which the board should consider its allocation for animal control services. [For recent background on that issue, see Chronicle coverage: "Revenue Options Eyed for Animal Control."]

In response to a question from Conan Smith, Gavalier reported that individual budget item adjustments of less than $100,000 were not reflected in her presentation. For amounts less than $100,000, county administrator Verna McDaniel has the authority to approve those adjustments.

Rob Turner told Gavalier that after her first-quarter update, he had been concerned about the county’s ability to reach the surplus they needed to carry over into 2013. Now, the projection is much better and he feels more comfortable that they can attain that amount, he said. Gavalier indicated that the finance staff feels better about it, too.

Leah Gunn thanked Gavalier for the clarity of her presentation. The increase in property values is good news, she said.

Alicia Ping asked about the shortfall for Act 88 programs. Conan Smith explained that there had been a budgeting error when the county allocated $15,000 to the Food System Economic Partnership. That’s now being handled by tapping the Act 88 fund balance to cover the $15,000 allocation. Ping didn’t feel that was a great answer – because only the revenues coming from the Act 88 millage should be expended.

Wes Prater clarified with Gavalier that although there’s currently a general fund surplus, the amount of that surplus is less than the county had budgeted to carry over into 2013.

Outcome: This was a presentation only – no board action was required.

Mid-Year Budget Adjustment

Commissioners were asked to approve a $1,263,994 mid-year adjustment to its 2012 general fund budget, bringing the 2012 general fund budget to $101,162,770.

The adjustment includes equal increases in revenues and expenditures. The additional revenues come primarily from higher-than-projected property tax revenues of $2,417,690. The main increase in expenditures comes from an increase in personnel costs over the budgeted amount for 2012. The original budget had anticipated labor savings of $2,481,008 – but the bulk of those reductions have not yet materialized. The county did realize more than $1 million in reduced labor costs due to 118 retirements in 2011. However, that savings has been offset by increased part-time temporary costs and increased fringe benefits costs related to medical claims made during the last six months of 2011, which are being paid in 2012.

Outcome: Commissioners unanimously approved the recommended mid-year budget adjustments.

Treasurer’s Report

Catherine McClary, Washtenaw County treasurer, presented an annual foreclosure report as well as a mid-year investment update.

She told commissioners that her major goal is to protect and safeguard public funds. Through June 30, 2012, her office has brought in $5.268 million in revenues. Sources include investment earnings ($415,309), delinquent taxes and fees ($3,307,004), accommodation tax ($1,497,340), dog licenses ($33,872) and tax searches ($14,656). She’s projecting revenues of about $10.5 million for the full year.

McClary said she manages about $154 million for the county, diversified by investment type, institution and maturity date. Cash and investments are allocated in the following way: CDs, CDARs, money market accounts ($59.833 million); commercial paper ($3 million); treasuries and agencies ($16.5 million); Michigan municipal bonds ($52.7 million); and bank accounts ($22.172 million).

McClary noted that in previous years, investments were laddered out over five to seven years. But with investment rates lower, she’d now taking a “barbell” approach, with shorter-term and longer-term investments. Although the average weighted yield of the county’s investment is below 1% – at 0.526% – she noted that it is well above the three-month Treasury benchmark of 0.09%.

Last year, McClary recalled, she had told the board that she expected interest rates to remain low, and that her strategy would be to increase safety and flexibility while reducing expenses. She noted that Congress authorized unlimited FDIC insurance on certain bank accounts through the end of 2012, so the county is taking advantage of that. By maintaining cash reserves in an insured account, the county is foregoing interest earnings in favor of an “earnings credit” that covers all of the county’s bank fees. This approach has saved the county’s general fund more than $80,000 annually, she said.

Conan Smith asked if McClary benchmarked Washtenaw County’s investment performance to other counties. McClary said that the county board’s investment policy had prioritized safety, and she didn’t know if that was true for other counties.

Treasurer’s Report: Foreclosures

McClary also gave her annual report on foreclosures, as required by state law. She noted that her office has been able to prevent many foreclosures through its tax and mortgage foreclosure prevention programs. Her report focused on tax foreclosures, because the county treasurer’s office is the governmental entity tasked with administering the tax foreclosure process.

The report shows a lag – because it reflects properties with unpaid taxes from 2007 that were auctioned in 2010, with excess proceeds reported as of May 31, 2012. This process is required by state law, to allow time for complete closure on the properties, McClary said.

For unpaid 2007 taxes, the process generally worked like this (the process is the same for any given year):

• 2007 taxes in any local jurisdiction in Washtenaw County that were unpaid by March 1, 2008, were declared delinquent. The county treasurer was then responsible for those taxes. A 4% administrative fee was added to the taxes, and interest started to accrue at 12% per year (1% per month). On Oct. 1, 2008 a $15 fee was added.
• On Nov. 1, 2008 the property was added to a preliminary forfeiture list. If taxes were still unpaid by Feb. 1, 2009, then mortgage lenders and banks could be notified.
• On March 1, 2009, a minimum of $205 in fees could be added to each property, and the properties were forfeited to the county treasurer. The interest rate was increased to 18% per year, retroactive to March 1, 2008.
• In June 2009, the treasurer filed foreclosure petitions in the 22nd Circuit Court.
• Between June 1, 2009 and Jan. 31, 2010, title research was conducted to identify owners and lienholders. In some cases, a personal visit was made to the forfeited property. Mortgage lenders, banks and other lienholders were notified.
• In early 2010, a show cause hearing was held. That led to a court hearing in February 2010 when the circuit court judge signed foreclosure orders. By March 31, 2010, redemption rights expire if taxes aren’t paid, and the property ownership transfers to the county treasurer.
• Property was sold at action in July 2010. The prior owner doesn’t receive any proceeds.

After two years of being unable to recover costs at tax foreclosure auctions, McClary reported net positive proceeds from 2010 of $102,746. That amount is available this year for transfer to the county’s general fund.

Interest on these properties goes into the county’s delinquent tax revolving fund. After delinquent tax notes are matured and paid off, any leftover funds are transferred to the county’s capital projects fund and used to pay the debt service of other bonds committed by the board of commissioners. In 2010 and 2011, a total of $11.2 million was transferred from the delinquent tax revolving funds to the capital projects fund. These amounts are counter-cyclical, McClary noted – they are higher when the economy is bad, and lower when the economy improves and fewer properties go into tax foreclosure.

McClary said the county is seeing better times, and appears to be pulling out of its economic trough. A leading indicator of that is delinquent taxes, which are down 20% this year, she said.

McClary also reported that the first tax foreclosure auction of 2012 went well, with 45% of the properties sold. About 80% of the buyers listed zip codes in Washtenaw County, she said, noting that it’s a positive for our neighborhoods when the buyers are local.

Treasurer’s Report: Foreclosures – Board Discussion

Dan Smith observed that the nearly $103,000 in net proceeds is a mixed bag. While it’s good for the county’s general fund, it still reflects the fact that some people lost their properties through foreclosure. McClary said that’s why she’s proud of her office’s tax foreclosure prevention program, which helps people avoid that end result.

Ronnie Peterson said he knew that McClary had prevented a lot of tax foreclosures in his district, but activity was still very high there. Over the past few years, hundreds of homes had been lost to foreclosure. [Peterson represents District 6, which covers primarily the city of Ypsilanti.] Houses sold at auction were extremely reasonable for the market, he said – some selling as low as a few thousand dollars. He wondered how the county might partner with another agency to secure some of these properties for housing families in need.

McClary said she’d like to pursue the idea of a revolving loan fund. She’d be willing to sit down with her staff and do an analysis of properties that have been sold at auction over the last few years. The city of Ypsilanti had approached her office and partnered to have open houses of the properties before auction, she reported. This year there were 10 open houses – it’s a way of encouraging local people to buy, she said. McClary noted that the county and city recently received an award for the project from the National Association of Counties.

Peterson observed that some of his business colleagues get concerned when the government gets involved in the housing market. But he noted that the government already is involved – by funding the homeless shelter. If families can be put in housing, it would help stabilize neighborhoods and bring prosperity to the community, he said.

CUB Agreements Suspended

For the second time in the past 12 months, commissioners were asked to suspend the county’s use of Construction Unity Board (CUB) agreements.

CUB agreements are a type of project labor agreements (PLA), negotiated between local trade unions and contractors. CUB agreements require that contractors who sign the agreement abide by terms of collective bargaining agreements for the duration of the construction project. In return, the trade unions agree that they will not strike, engage in work slow-downs, set up separate work entrances at the job site or take any other adverse action against the contractor.

The county board first suspended its CUB policy in September 2011, pending the outcome of litigation that’s challenging the validity of the state’s Public Act 98 of 2011. That law, which took effect on July 19, 2011, prohibited municipalities from including as a requirement in a construction contract anything that would either require or prohibit contractors from entering into agreements with collective bargaining organizations. The act also prohibited discrimination against contractors based on willingness or non-willingness to enter into such agreements.

The law was challenged in federal court by the Michigan Building and Construction Trades Council, AFL-CIO and the Genesee, Lapeer, Shiawassee Building and Construction Trades Council, AFL-CIO. They sought to rule the law invalid, contending that it was pre-empted by the supremacy clause of the U.S. Constitution and the National Labor Relations Act.

The county board’s September 2011 resolution suspending its CUB also also stated that if the state law was overturned by a state or federal Court, the county would automatically reinstate its CUB agreement policy. That happened in March of 2012, when the judge for the Federal District Court for the Eastern District of Michigan ruled that the state law was unenforceable. At that time, the county’s CUB immediately was reinstated, without additional action by the county board.

Instead of appealing that decision, the state legislature made revisions to the law, which took effect on June 29, 2012 as Public Act 238 of 2012. The new law revised several aspects of the previous version, but generally prohibits the use of CUB agreements.

According to a staff memo, the unions that filed the initial lawsuit seeking to invalidate the original version of the law are expected to file suit again to have the revised version invalidated. Meanwhile, the new law led the county board again to suspend its CUB agreement. The resolution on the Aug. 1 agenda was nearly identical to the one passed by the board in September of 2011. It suspends the county’s CUB requirement pending the outcome of any litigation challenging the validity of the new state law.

The city of Ann Arbor has taken similar action related to CUB agreements, most recently at the city council’s July 16, 2012 meeting.

CUB Agreements Suspended: Board Discussion

Dan Smith said he would reluctantly support the resolution. There were a couple of the resolved clauses that he didn’t like – Smith didn’t specify which ones – but based on the advice of the county’s corporation counsel [Curtis Hedger], he’d support it.

Rob Turner confirmed with Hedger that this resolution suspending the CUB agreements is similar to the previous one that the board discussed and passed in September 2011. Yes, Hedger replied, it’s almost identical – a temporary suspension until state or federal courts find the new law invalid.

Turner noted that suspending the agreements temporarily will prevent the county from legal entanglements. The building trades were planning to take the government to court on this, he said. Turner added that he liked the section of the board’s resolution that stated the county supports these labor agreements and will reinstate them if possible.

Yousef Rabhi agreed, saying he very much supported CUB agreements and he doesn’t agree with the state law. The only reason he could support this resolution was because it included a resolved clause similar to the one that he had proposed through an amendment at the September 2011 meeting. [That resolved clause states that "upon such time as it is permitted under State and/or Federal law or otherwise ruled legal by a State and/or Federal Court, it is understood that the County will immediately reinstate its CUB Agreement policy."]

Felicia Brabec said she echoed Rabhi’s sentiments. She asked Hedger what’s to stop the legislature from repeating this cycle? Hedger replied that the current legislature is determined to remove this type of agreement. He assumed the unions would sue again. It’s difficult for the county, Hedger said, because many projects are in the process of soliciting bids. The county must follow the law. “I don’t know if there’s an easy answer,” he said.

Wes Prater said he also believed the building trades would be challenging this law in court – as the new law is very similar to the one that was struck down in court, he noted. Probably the same process will happen again and again, until Gov. Rick Snyder gets tired of signing legislation that the courts rule is unconstitutional and “stops this silliness.”

Outcome: On an 8-2 vote, commissioners voted to suspend the county’s use of CUB agreements, with dissent from Alicia Ping and Ronnie Peterson. Neither stated their objection to the resolution. Rolland Sizemore Jr. was absent.

Change to Accommodations Ordinance

Commissioners were asked to give final approval to a change in the county’s accommodations ordinance, exempting bed & breakfasts and cottages from the 5% accommodations tax. In addition to exempting cottages and bed & breakfasts with less than 14 rooms, the change also exempts individuals who occasionally lease out rooms. These types of establishments account for less than 1% of the total tax collected in Washtenaw County, according to a staff memo accompanying the resolution.

According to the county treasurer’s report to the Washtenaw County accommodation ordinance commission, in 2011 the county collected $3.99 million in accommodation taxes. The money is primarily distributed to the county’s two convention & visitors bureaus (CVBs) – in Ann Arbor ($2.69 million in 2011) and Ypsilanti ($898,563). The county treasurer retains 10% of the tax to cover collection and enforcement expenses.

The ordinance changes received initial approval by the county board at their July 11, 2012 meeting, and several B&B owners spoke in support of the proposal.

The changes had been recommended for approval by the accommodation ordinance commission (AOC) in June. A staff memo states that the AOC had recently reviewed enforcement and administrative costs, and did not believe it was cost effective to enforce the ordinance with these smaller establishments. The staff memo also states that the local CVBs support this change, in part because the CVBs do not actively market these establishments.

No one spoke at a public hearing on the ordinance change. Mary Kerr, president of the Ann Arbor Convention & Visitors Bureau, attended the meeting but did not formally address to the board.

Outcome: Without discussion, commissioners unanimously gave final approval to the accommodations ordinance change. 

Photo IDs for Veterans

The county board was asked to approve a proposal from county clerk Larry Kestenbaum that allows the clerk’s office to issue veteran photo ID cards for a $10 fee.

County commissioner Barbara Bergman.

According to a staff memo, county clerks in Michigan are permitted to record military discharge certificates for veterans. Those certificates – called DD-214s – are bulky and can’t be carried around easily. A veteran’s ID card would serve the same purpose, allowing veterans to show more easily a proof of service – to take advantage of discounts for veterans offered by businesses. The memo notes that $10 photo IDs are currently offered in Livingston, Oakland and Macomb counties.

The $10 fee would cover the cost of printing the card, which would be handled by the clerk’s vital records division. Start-up costs are estimated at $100. The county clerk/register of deeds office is located at 200 N. Main in downtown Ann Arbor.

Photo IDs for Veterans: Board Discussion

Barbara Bergman recalled that in the past, the clerk’s office offered ID cards at little or no cost to people who needed the cards to get certain government benefits. She wondered if that program was extant – if it wasn’t, she hoped it could be re-instituted. County administrator Verna McDaniel said she’d check with the county clerk and report back to the board.

Yousef Rabhi asked whether veterans could use the photo IDs as voter identification. Michael Smith, director of veteran services for the county, replied that this ID primarily could be used for discounts at private businesses, but not as a voter ID. Companies like Lowe’s, Home Depot and restaurants often offered discounts to veterans, but require proof of service, he said. The U.S. Dept. of Veteran Affairs doesn’t offer an ID card of this type – discharge papers are used in order to obtain government benefits, but there’s nothing that can be used conveniently to show proof of service for other reasons.

There’s a need, Smith said, and this service fills that need, while also bringing in a little revenue to the county. He thanked the clerk’s office for taking the initiative on this.

Smith also said the board had been very brave in authorizing an 0.025-mill tax to pay for services for indigent veterans. If veterans were unable to afford the $10 fee for the photo ID, Smith said his office would be happy to cover that cost. He offered to work with the clerk to come up with a waiver, if needed.

Outcome: The board unanimously voted to allow the county clerk’s office to issue veteran photo ID cards.

618 S. Main Brownfield Plan

Commissioners were asked to approve a brownfield financing plan for a $39 million residential development at 618 S. Main St. in Ann Arbor. [.pdf of brownfield plan]

Previously approved by the Ann Arbor city council on June 18, the project’s brownfield tax increment finance (TIF) plan works in conjunction with a $650,000 TIF grant (paid over a period of four years) awarded by the Ann Arbor Downtown Development Authority board at its June 6, 2012.

Dan Ketelaar, developer of 618 S. Main, a proposed 7-story apartment complex in downtown Ann Arbor.

Both the brownfield TIF and the DDA grant work in a similar way – in that the developer must build the project and pay the new taxes on the project, in order to receive the financial benefit. The brownfield plan includes developer reimbursements of $3.7 million over 26 years. Also during that period, the plan includes $462,864 of tax capture for administrative fees to support the operation of the Washtenaw County Brownfield Redevelopment Authority. An additional $457,741 of tax increment proceeds will be contributed to the Local Site Remediation Revolving Fund.

Work covered by the brownfield plan includes: site investigations for characterization of soils and dewatering if water is encountered during excavation; disposal of soils; demolition of buildings and removal of existing site improvements; lead and asbestos abatement; infrastructure improvements like water, storm sewer and sanitary sewer upgrades, street repair and improvements to streets; and site preparation like staking, geotechnical engineering, clearing and grubbing.

According to a staff memo, the project will create 80-100 temporary construction jobs, and 4-5 full-time, and 6 or more part-time, permanent jobs. Taxes from the Washtenaw County annual millage will increase from about $2,028 to $69,614 after the tax increment financing period is completed.

The 7-story building will include 190 units – which will be marketed to young professionals – plus two levels of parking for 121 vehicles.

618 S. Main Brownfield Plan: Public Hearing

The only speaker at the public hearing was the project’s developer, Dan Ketelaar. He described various aspects of the project, noting that his team has been working on it since November of 2010. The Ann Arbor planning commission had approved the development in January of 2012, followed by city council approval in June. The market niche for young professionals isn’t being addressed in downtown Ann Arbor, Ketelaar said, and this project will satisfy that need. He described it as a gateway project, close to a highway yet walkable to downtown and the University of Michigan campus.

When the three minutes for his speaking turn ended, board chair Conan Smith asked if there were any objections to allowing Ketelaar to continue. There weren’t any, and Ketelaar spoke for a few more minutes.

Ketelaar told commissioners that he had met with several local groups, including the Old West Side Association and the city’s design review board. In response to neighbors’ concerns about parking, the project doubled the number of parking space on site, he said. The project and related streetscape improvements will improve the pedestrian experience in that part of town, Ketelaar said, and encourage redevelopment of other property. He urged the board to support the plan.

618 S. Main Brownfield Plan: Board Discussion

Felicia Brabec asked whether the development included any affordable housing. Brett Lenart, housing and infrastructure manager at the office of community & economic development, replied that there would be no subsidized or public housing – most of the units would be priced around the range that’s considered affordable for the area median income. [Median income for one person in metro Ann Arbor – a region covering all of Washtenaw County – is $60,500. For a two-person household, the area median income is $69,100.] Lenart noted that the city of Ann Arbor’s site plan approval for this project did not have an affordable housing requirement.

Brabec called it an amazing project, but was concerned that young professionals couldn’t live there because the rent would be too high. When she moved to this area 10 years ago, she would have loved to live in a development like this, but with student loans, it would not have been possible. She said she’s not alone in that.

Dan Smith said he’d support the plan, but he still had the same concerns that the board had discussed at previous meetings and working sessions regarding brownfields and downtown development authorities. [For background, see Chronicle coverage: "Packard Square Brownfield Project Debated."] He noted that county taxes would be diverted because of the brownfield TIF financing. And although the plan requires approval by the Ann Arbor city council and county board, Smith pointed out that other taxing entities – including the Washtenaw Community College, Ann Arbor District Library and Washtenaw Intermediate School District – would also see a portion of their taxes diverted, yet their governing bodies have no say in the matter. The same is true of public school districts, indirectly.

Yousef Rabhi thanked Ketelaar for his work, and praised the project’s outreach efforts, green amenities, and the fact that it was adding needed housing to the downtown area. He also thanked the Ann Arbor DDA, for contributing to public upgrades related to the project. He wished Ketelaar good luck and success, and he hoped the project would bring energy to the downtown. But his concern comes from his heart, Rabhi said – the issue of accessible, affordable housing. The issue “should have been thrown into the batter before the cake was in the oven,” he said. At this point, all he could do is voice his opinion in the form of a no vote.

Rabhi said he’d be working proactively with county staff on this type of project to ensure that the downtown is accessible to all income levels. He concluded by saying that his vote isn’t a no-confidence vote against the process, but rather a vote that reflected his other concerns.

Outcome: On an 8-2 vote, the board approved the brownfield plan for 618 S. Main in Ann Arbor, with dissent from Felicia Brabec and Yousef Rabhi. Rolland Sizemore Jr. was absent.

Weatherization Grant

On the Aug. 1 agenda was a resolution to accept $289,800 in additional federal funds for the county’s weatherization program. The funds will allow the county to weatherized 26 housing units for low-income residents.

The money is available through the 2009 American Recovery and Reinvestment Act (ARRA), also known as the federal stimulus program. It’s a redistribution of funding that had previously been awarded to other communities but was not used. In total since 2009, Washtenaw County has received $5,053,338 in ARRA funding for its weatherization program, and has served 721 housing units. The program is administered through the office of community and economic development, a joint county/city of Ann Arbor department.

According to a staff memo, weatherization services include “outreach and intake, pre-inspection of homes, air leakage testing, health and safety evaluations, furnace assessments, refrigerator efficiency testing, post-inspection of the completed work and consumer education on how to keep one’s home weatherized and energy efficient. Licensed and approved contractors provide procurement and installation of weatherization materials including attic and wall insulation, air sealing, window repairs, furnace tune-ups and high efficiency furnace installations.”

To be eligible for the program, residents must have an income at or below 200% of the federal poverty level, or 60% of the state median income (whichever is lower). That translates to annual incomes less than $22,911 for a single person or $44,700 for a family of four. Residents who receive federal Supplemental Security Income, state disability assistance or who are part of the Family Independence Program are automatically eligible for the weatherization program.

Weatherization Grant: Board Discussion

Felicia Brabec asked about indirect costs – the staff memo indicated that indirect costs for this grant were not included in the budget. Brett Lenart, housing and infrastructure manager at the office of community & economic development, told Brabec that because it will be part of a program that the county already runs, there would be no indirect costs to increase the program’s budget.

Wes Prater said he hoped the grant would fund weatherization in owner-occupied homes, rather than rental properties. Lenart indicated that the “vast majority” of the projects would occur in owner-occupied homes.

Outcome: The resolution related to weatherization funding passed unanimously.

Public Commentary

In addition to the public commentary and public hearings reported above, Joel Levitt of Ann Arbor spoke during general public commentary about the need for a graduated, progressive income tax that would replace excise taxes in Michigan. He noted that last year, the state Democratic convention adopted a resolution to work to change the state constitution so that such a tax could be instituted. Property taxes made sense long ago, when property was the basis for wealth, he said. But that’s not the case today. Excise taxes on products like gasoline make it even more difficult for struggling families. He urged commissioners to pass a resolution supporting an improved financing system for the state, and said he planned to ask the Ann Arbor city council to do the same.

Responding to his commentary, Barbara Bergman said she agreed with his premise, but that the county board isn’t the forum for this kind of resolution. They generally don’t take up “political” resolutions, she said, but that didn’t mean his comments had fallen on deaf ears. She said she personally supported it.

Present: Barbara Bergman, Felicia Brabec, Leah Gunn, Alicia Ping, Ronnie Peterson, Wes Prater, Yousef Rabhi, Rolland Sizemore Jr., Conan Smith, Dan Smith, Rob Turner.

Next regular board meeting: Wednesday, Sept. 5, 2012 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 adjustment includes equal increases in revenues and expenditures. The additional revenues come from higher-than-projected property tax revenues of $2,417,690. The main increase in expenditures comes from an increase in personnel costs over the budgeted amount for 2012. The original budget had anticipated labor savings of $2,481,008 – but the bulk of those reductions have not yet materialized. The county did realize more than $1 million in reduced labor costs due to 118 retirements in 2011. However, that savings has been offset by increased part-time temporary costs and increased fringe benefits costs related to medical claims made during the last six months of 2011, which are being paid in 2012.

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

From left: Jenna Bacolor of the county's public health department, Michaelle Rehmann, Farm to Table director for the Food System Economic Partnership (FSEP), and Al Connor of the Michigan Farmers Union. All are involved in helping create the Washtenaw Food Policy Council. (Photos by the writer.)

Two items touched directly on salary and compensation. The board gave final approval to an administrative restructuring that’s estimated to save $326,422 annually, and result in the net reduction of four full-time jobs, which are currently vacant. As he did for the initial vote on Feb. 15, commissioner Ronnie Peterson voted against the restructuring, objecting to a 4% increase that will be given to four top managers in a new cross-lateral team, as a result of their job reclassification. Though the county uniformly gives a 4% raise when any job is reclassified, Peterson argued that the county’s leadership should set an example and that the raises will make it more difficult to ask for concessions in future union negotiations in 2014-15.

Also related to upcoming budgets, commissioner Dan Smith presented a draft proposal that would cut compensation for commissioners in 2013-2014. Overall, the proposal would cut total compensation (salary and benefits) by 5.7% per commissioner – from the current $20,213 to a proposed $19,063. He plans to present a formal resolution at the April 4 meeting. The timing would allow the board to make a decision before the May 15 filing deadline for county board candidates.

Another budget-related item came from the public health department, which proposed fee increases to treat sexually transmitted diseases – one of the mandated services provided by the county. The changes, which were approved unanimously, are being made in response to federal funding cuts and an increase in charges for state services. Though he voted in favor of the increases, Peterson raised concerns about the impact on low-income residents. Dick Fleece, director of the public health department, assured the board that no one would be refused treatment because of the inability to pay.

Public health staff also presented an item with almost no budget impact: A proposal to create the Washtenaw Food Policy Council, with the goal of supporting and coordinating activities in the county’s food system. Partners who’ve been working on this initiative include the Y of Ann Arbor, Growing Hope, Food Gatherers, the Food System Economic Partnership (FSEP), Slow Food Huron Valley, Eat Local/Eat Natural, Michigan Farmers Union, and the Ypsilanti Food Coop. A final vote is expected on March 21.

The board also acted on items related to public safety. They voted to accept a $177,500 state grant from the state’s Economic Vitality Incentive program (EVIP), which provides incentives for local governments to collaborate and combine operations. The grant will help pay for work related to dispatch consolidation between the county sheriff’s office and the city of Ann Arbor.

And in a vote to clear up a procedural move, the board authorized a merger of its countywide 800 megahertz (MHz) emergency communications system with the Michigan Public Safety Communication System. The county’s 800 MHz system is paid for through a 10-year, 0.20-mill tax that Washtenaw County voters approved in May 2006. At the time, the plan called for eventually merging with the statewide system.

During the opportunity for commissioners to raise items of discussion, Wes Prater noted that at the Ann Arbor city council’s March 5 meeting, a four-party agreement to establish a framework for a possible countywide transit system was approved. Prater urged the board to begin discussing the issue, too. [In addition to Ann Arbor, the four parties include the city of Ypsilanti, Washtenaw County and the Ann Arbor Transportation Authority. Ann Arbor city council was the first entity to approve the accord, doing so after postponing action on it three times and deliberating for over 3.5 hours at Monday's meeting. See Chronicle coverage: "Ann Arbor Council OKs Transit Agreement"]

A working session for commissioners to address the four-party agreement has been set for Thursday, March 22.

Prater also wondered why the board hadn’t received any reports from the county treasurer recently. The treasurer, Catherine McClary, gave a 2010 annual treasurer’s report to commissioners early last year, at their Feb. 16, 2011 meeting, but has not yet submitted the 2011 annual report. Board chair Conan Smith asked county administrator Verna McDaniel to contact the treasurer’s office and request a report.

Administrative Restructuring

Commissioners were asked to sign off on a restructuring of support services in administration, finance, information technology and facilities management. The changes are estimated to save the county $326,422 annually, and result in the net reduction of four full-time jobs, which are currently vacant. Initial approval had been given at the county board’s Feb. 15 meeting.

The changes include creating a new “cross-lateral” team of four current senior managers: Kelly Belknap, director of finance; Greg Dill, infrastructure management director; Curtis Hedger, corporation counsel; and Diane Heidt, director of human services and labor relations. Their jobs are being reclassified, so the four positions are among those getting a 4% raise, capped at $126,099. Because of the cap, Heidt’s current salary of $126,098 will remain unchanged. The salaries of the other three managers will increase from $116,758 to $121,437.

The proposal also calls for putting two positions – including the job of deputy county administrator – on “hold vacant” status. Another 11 positions will be eliminated, while nine jobs will be created. A total of seven jobs will be reclassified, and will receive a salary increase. [.pdf of staff memo, resolution and job descriptions]

At the Feb. 15 meeting, commissioner Ronnie Peterson had voted against the restructuring, objecting to the 4% increase that will be given to the cross-lateral team as a result of their job reclassification.

The board had been briefed about this proposal by county administrator Verna McDaniel at its Feb. 2, 2012 working session. At that meeting, McDaniel also outlined plans to seek broader restructuring of the county operations, in the wake of more than 100 county employees retiring at the end of 2011.

Administrative Restructuring: Board Discussion

Felicia Brabec (D-District 7) said she had talked to some union employees and had gotten feedback that there are concerns about the 4% increases, given that unions had made concessions in the most recent round of contract negotiations. People think the cross-lateral team is a great idea, but are bothered by the compensation – Brabec said she could understand that reaction. She asked McDaniel to restate the policy.

As she had done at the board’s Feb. 15 meeting, McDaniel explained that a reclassification is not a promotion. Rather, she said, it reflects an increase of responsibilities within someone’s existing job. In accordance with board policy, she said, reclassifications are handled the same for both union and non-union employees. In both cases, a reclassification results in an automatic 4% salary increase.

Brabec said what she was hearing from McDaniel is that there’s parity between union and non-union employees. She clarified with McDaniel that McDaniel’s original proposal is no longer on the table. That’s correct, McDaniel replied. [Last fall, McDaniel had initially presented a plan that called for each cross-lateral team member to receive a $15,000 stipend. A resolution to that effect had appeared on the Sept. 21, 2011 draft agenda, but McDaniel withdrew it before that meeting after several commissioners objected to the stipend.]

County administrator Verna McDaniel talks with commissioner Rob Turner (R-District 1) before the start of the March 7, 2012 meeting.

Brabec asked what happens if an employee believes their job should be reclassified. McDaniel described a reclassification request form that an employee can fill out and turn in to their supervisor. After the supervisor reviews it, the request is passed along to the county’s human resources staff for another review. Communication occurs with the employee’s bargaining unit, and the request is negotiated. A similar process exists for non-union employees, she said, although no bargaining unit is involved.

Although requests can be made at any time, McDaniel said they try to handle reclassifications during contract negotiations as part of the budget process, or if there’s a broader departmental restructuring.

Wes Prater (D-District 4) said he felt it’s time to reconsider the policy of giving an automatic 4% increase for job reclassifications. It seems like something the board should chew on, he said. The county has asked employees to make sacrifices, and will likely need to do so again – it could be three or four years before the county gets “squared around,” he said.

Yousef Rabhi (D-District 11) emphasized that everyone in the organization made concessions, including the people whose jobs are being reclassified now. This is a policy, and the board needs to follow through on it. He said he did a quick calculation of other jobs changes in the administrator’s proposal, and two of the union positions are getting nearly 6% and 8% increases, respectively. He said he just wanted to put that information out there.

Ronnie Peterson (D-District 6) then spoke at length. He reminded other commissioners that he had voted against this proposal initially, and planned to do so again. He hadn’t intended on speaking about it, he said, because the people involved are highly professional and skilled, and he’s pleased they are staying with the organization. However, he had some concerns. Although everyone made concessions, employees at the lower end of the pay scale feel more pain.

Peterson wondered why employees who are now doing the jobs of two or three people aren’t getting reclassified. He wanted to look at the entire workforce, to see how many people’s jobs should be reclassified. When the administration asks employees to make more concessions in the 2014-15 budget cycle, he said, employees won’t likely be willing to make sacrifices again.

Peterson concluded by saying that the leaders of the organization and those who have the highest compensation should set an example and make greater sacrifices.

Outcome: The proposal was given final approval on a 10-1 vote, with dissent from Ronnie Peterson.

Commissioner Compensation

A draft proposal that would cut compensation and benefits for Washtenaw County commissioners in 2013 and 2014 was distributed by commissioner Dan Smith (R-District 2) at the county board’s March 7 meeting. [.pdf of Smith's proposal]

Currently, commissioners are paid an annual base salary of $15,500 plus $1,163 (7.5% of their salary) that the county contributes to their pension. [Officers of the board receive higher salaries: $18,500 for the board chair (Conan Smith, D-District 10), $16,000 for the board vice chair (Alicia Ping, R-District 3), $16,500 for the Ways & Means Committee chair (Rolland Sizemore Jr., D-District 5) and the working session chair (Yousef Rabhi, D-District 11).] In addition, each commissioner has a $3,550 “flex” account, which they can tap for mileage and per diem. [.pdf of 2011 flex account expenditures]

Dan Smith’s proposal calls for an increased base salary of $16,250 per commissioner, but the county’s pension contribution would be eliminated. Each commissioner would also receive $2,813 in optional benefits, including a county pension match of $813 (5% of their salary), $1,000 for education and training, and $1,000 for stipends to replace mileage and per diem payments.

Washtenaw County commissioner Dan Smith (R-District 2).

Overall, the proposal would cut total compensation by 5.7% per commissioner – from the current $20,213 to a proposed $19,063.

Due to redistricting, the number of board seats will shrink from the current 11 commissioners to 9 commissioners, as of Jan. 1, 2013. Combining the proposed compensation cuts with the reduced number of commissioners, Smith calculated that compensation for the entire board would drop from $222,338 to $171,583 – a 22.8% decrease. These calculations do not factor in the higher salaries for board officers.

Smith noted that county employees have been asked to pay a portion of their pension contributions, and that his proposal would do the same for commissioners. Also, having stipends instead of flex accounts would make the paperwork simpler, he said – stipends could be calculated annually, based on each commissioner’s committee assignments.

The goal is to bring forward a formal proposal at the April 4 meeting for discussion and an initial vote. Any changes would need to be approved by the board before the end of 2012, Smith noted, but his intent is for the board to make a decision before the May 15 filing deadline for county board candidates.

He said he hoped to get feedback on the proposal from commissioners between now and April 4. There were no comments made by other commissioners during the meeting.

Food Policy Council

Creation of a food policy council – with the goal of supporting and coordinating activities in the county’s local food system – was on the March 7 agenda for  initial approval. The board had been updated on this effort at a Feb. 16 working session, and is expected to take a final vote on March 21.

According to a staff memo, the Washtenaw Food Policy Council would support local “small and mid-sized farmers by fostering policies that encourage local food purchasing and production.” Among other activities, the council could also: recommend policy changes at the local, state and national levels; provide a forum for discussing food issues; encourage coordination among different sectors of the local food system; evaluate, educate, and influence policy; and launch or support programs and services that address local food needs.

Partners who have been working on this initiative include the Y of Ann Arbor, Growing Hope, Food Gatherers, the Food System Economic Partnership (FSEP), Slow Food Huron Valley, Eat Local/Eat Natural, Michigan Farmers Union, Ypsilanti Food Coop, and the Washtenaw County public health department.

The resolution calls for a 15-seat membership roster, with members drawn from the following sectors: agriculture, nutrition, education, emergency food system, health care, food services, food manufacturers and distributors, waste management, planning or transportation, retail/business or economic development, human services, faith-based organizations, local governments (board of commissioners), public health, and at large community member(s). The county public health department will be responsible for recruiting members. A draft set of bylaws also was provided to the board for review. [.pdf of of food policy council draft bylaws]

If final approval is given by the board, the council will convene its first meeting later this spring using grant funds from the Michigan Dept. of Community Health, passed through to the Washtenaw County public health department. The council eventually expects to secure financial support from private grants and philanthropic funds. The project will also seek significant in-kind and volunteer support, according to a staff memo.

This is not the county’s only effort related to the local food system. At its Nov. 2, 2011 meeting, the county board voted to create a task force that is developing a pilot training program for agribusiness jobs in Ypsilanti, including support for entrepreneurs in food-related businesses. The project – called ”Seeds for Change: Growing Prosperity in Ypsilanti” – is intended to provide job training and placement to unemployed workers interested in agricultural employment, and to offer shared commercial kitchen space and business support to local agri-business entrepreneurs.

And in 2010 the county board approved an ordinance change to allow the county parks and recreation department, through its natural areas preservation program (NAPP), to include farmland in its land preservation efforts. At the board’s Feb. 15, 2012 meeting, commissioner Yousef Rabhi – who also serves on the county’s agricultural lands preservation advisory committee (ALPAC) – reported that the committee is recommending the purchase of development rights on six parcels of farmland.

Food Policy Council: Board Discussion

Wes Prater (D-District 4) described the food policy council as one of the best initiatives he’s seen in a long time. It was great to see the effort involve the process from the farm to the table – “and I’m stopping there,” he joked.

Yousef Rabhi (D-District 11) also praised the proposal. As the county works to become self-sufficient and sustainable, the food system is an essential piece of that puzzle, he said. When a community is dependent on the global food economy, “we are a prisoner to that system.” Quality and dependability is much greater from local food sources, he said. Rabhi also cited the economic advantages of developing a local food system, rather than relying on multinational corporations in other countries to fulfill this basic need.

Rolland Sizemore Jr. (D-District 5) wondered why the initiative couldn’t be handled within the county’s public health department – why does a separate entity need to exist? Sharon Sheldon, a manager in the public health department who is administering this project, noted that there are many different food initiatives throughout the county. This council was envisioned as convening representatives from all of these projects and programs, improving communication and coordinating efforts when appropriate.

Organizers looked at similar councils nationwide, she said, and got advice that this structure was the best approach. Being created by an authority like the county board of commissioners gives the council some weight, she said.

Sizemore asked for more information about how the council would be funded. Sheldon replied that initially, funds will be used from a grant that the county received from the state Dept. of Community Health. She said the grant is expected to be renewed in September. [Sheldon later clarified for The Chronicle that $7,000 of the $25,000 state grant will be used for the food policy council.] Aside from that funding, the council is intended to be a volunteer organization, Sheldon said, and other food-related organizations have committed to providing some staff time to support it.

Sizemore said he didn’t like the fact that the council’s membership, as described in the bylaws, would include people who work in the county, but don’t necessarily live here. He said he doesn’t like the idea of people from outside the community telling the county what to do, but that he would support the effort.

Outcome: The board voted unanimously to give initial approval to the formation of the Washtenaw Food Policy Council. A final vote is expected on March 21.

Fees for Public Health Services

An increase in fees to treat sexually transmitted diseases – one of the mandated services provided by the county’s public health department – was on the agenda for initial approval. The changes are being made in response to federal funding cuts and an increase in charges for state services.

The board also was asked to approve changes at the medical examiner’s office, including fees for organ procurement services provided to the Michigan Gift of Life program, and a new late payment policy. According to a staff memo, about 10% of revenues are not realized because of non-payment. [.pdf of revised fee schedule]

Dick Fleece, director of the county's public health department, and Jennifer Brassow, the department's finance director.

By way of background, the adult clinic – which treats sexually transmitted diseases – is a mandated service that has relied on federal funding administered by the state. In mid-2011, the county was notified that federal funding for this program, which the state passed through to local health departments, would be cut by 33%. Since then, the Washtenaw County public health department has been notified that it will receive just half of its expected appropriation for this program. At the same time, the department was notified that the Michigan Dept. of Community Health (MDCH) would be increasing its testing fees for gonorrhea and chlamydia from $36 to $78 in January of 2012. It’s in this context that the fee increases are being proposed.

There will be a sliding fee scale for low-income residents, and a commitment that no one will be denied services, according to county staff. In order to verify income, as well as to handle the billing and collection process, the public health department will be buying ePrescribing software at a cost of $28,000. Most of that – $21,500 – will be covered by a federal incentive program.

Fees for Public Health Services: Board Discussion

Ronnie Peterson (D-District 6) asked for a more detailed explanation of these new fees, saying it would affect the county’s most vulnerable population. Often, these people can’t afford to go to a doctor, he said, and only come to the public health department when they’re in crisis. The county needs to be clear that these services won’t be discontinued, Peterson said. The changes should have been presented to the board a long time ago, he said.

Dick Fleece, director of the public health department, assured Peterson that no one would be refused treatment because of the inability to pay. Fleece reviewed the financial issues that are driving this decision, and noted that the fee changes relate specifically to tests for sexually transmitted diseases, including gonorrhea and chlamydia.

Jennifer Brassow, the public health department’s finance director, told commissioners that the sliding scale will be based on federal wage rates. The proposed fees are based on standard Medicaid rates, and the county intends to bill Medicaid for those charges. People who aren’t eligible for Medicaid and can’t pay, she added, won’t be charged.

Peterson again cautioned against limiting access, saying that for some people, the emergency room and the public health clinics are the only places they can get medical care. He said he’d hate to see a reduction in services.

Fleece replied that the reason his department is seeking approval for these fees is so that people who can afford to pay – either personally, or through Medicaid – actually do pay. That way, the department gets the resources it needs to provide services to those who can’t pay, he explained.

Peterson said he understood the need to find revenue, but he restated his concern for the county’s most vulnerable population. The problem of health care coverage is increasing, not decreasing, he said. He asked that the department’s staff return with a report on how they plan to address the need for more funding of health care for low-income residents. The community isn’t aware of this situation, Peterson said, and the board hadn’t been aware of it until that night.

Barbara Bergman (D-District 8), who also serves on the board of the Washtenaw Community Health Organization, reported that the WCHO’s chief of staff, Hazelette Robinson, has been coordinating with the sheriff’s office to do outreach and sign up as many county residents as possible for Medicaid. That relieves pressure on the general fund, she said, because the county is then reimbursed for the health care that those people receive.

She noted that the county’s public health department isn’t the only entity serving low-income residents. Packard Health Clinic, Hope Clinic and others are doing the similar work. ”You’re an important piece of the puzzle,” she told Fleece, “but you’re not the only piece of the puzzle.”

Bergman also reminded commissioners that the Washtenaw Health Initiative, which was launched last year, is also working on ways to serve the low-income population. [Earlier that day, the WHI issued a press release estimating that about 6,400 county residents are eligible for Medicaid, but are not enrolled in the federal program. WHI also estimates that as many as 25,000 residents could become newly eligible if the federal health care reform act remains in place. Since last year, the WHI has helped about 700 residents sign up for or retain Medicaid coverage, according to the release. (.pdf of full WHI press release)]

Bergman concluded her comments by saying that ”the situation is dire, but none of us here in the county are sitting on our hands.”

Outcome: Commissioners unanimously gave initial approval to the fee changes. A final vote is expected at the board’s March 21 meeting.

State Grant for Dispatch Operations

A resolution accepting a $177,500 state grant to help pay for work related to dispatch consolidation between the county sheriff’s office and the city of Ann Arbor was on the March 7 meeting agenda. The grant was significantly less than the $698,625 that had been requested. Part of the amount that was denied was a $500,000 request related to transition costs for the city of Ann Arbor. Responding to an emailed query from The Chronicle, city of Ann Arbor chief financial officer Tom Crawford confirmed that the $500,000 had not been assumed for budgeting purposes for the coming year.

The award came from the state’s Economic Vitality Incentive program (EVIP), which provides incentives for local governments to collaborate and combine operations. The county board had approved the dispatch consolidation at its Jan. 18, 2012 meeting. The proposal had previously been authorized by the Ann Arbor city council on Dec. 5, 2011. [For additional background, see Chronicle coverage: "Ann Arbor, Washtenaw: Joint 911 Dispatch?"]

Five requests had been made to the EVIP program related to this consolidation. The state denied a $500,000 request from the city of Ann Arbor for transition costs related to paying out leave banks, pension, VEBA and associated costs for terminated employees. Also denied was a $21,125 request from the sheriff’s office to cover 25% of the current dispatch manager’s annual salary and benefits, for time spent handling the transition.

The state did award three other requests from the sheriff’s office: (1) $65,000 for a metro dispatch project manager (an outside consultant); $37,500 to cover the cost of newly created dispatch coordinator jobs for three months, before the contract with Ann Arbor takes effect; and (3) $75,000 to pay for an instructional design consultant who is redesigning the sheriff’s Communications Training Officer (CTO) program for dispatch. That $75,000 will also cover a portion of employee wages for time spent cross-training.

The board’s resolution accepting the award also amended the previously approved county general fund budget for 2012. The line item for state revenue was amended from the original $4,810,249 to 4,987,749 – reflecting the additional $177,500 state grant. The total 2012 general fund budget is now $99,419,930.

State Grant for Dispatch Operations: Board Discussion

Conan Smith (D-District 10) noted that the EVIP grants were created by the state in lieu of revenue sharing with local communities, with the aim of recognizing outstanding collaboration efforts at the local level. Sheriff Jerry Clayton and his team deserve congratulations for pulling off a project that’s been discussed for more than two decades, Smith said.

He also proposed a friendly amendment – the signatory on the grant should be the county administrator, he said, not the board chair.

Outcome: Commissioners unanimously approved receipt of the EVIP grant.

Merger with State Communications System

To clear up a procedural move, the board was asked to authorize the merger of its countywide 800 megahertz (MHz) emergency communications system with the Michigan Public Safety Communication System (MPSCS).

The merger had been approved in August of 2011 by the county’s 800 MHz project oversight committee. However, the state attorney general’s office informed the county that authorization needed to be given by the county board. The authorization covered three areas: (1) an integration agreement, (2) a co-location license agreement, and (3) a memorandum of agreement.

The county’s 800 MHz system is paid for through a 10-year, 0.20-mill tax that Washtenaw County voters approved in May 2006. At the time, the plan called for eventually merging the county system with the MPSCS, in exchange for $5 million in state credits to be used for future maintenance costs.

Merger with State Communications System: Board Discussion

Two representatives of the Washtenaw County 800 MHz Consortium – Jack Ceo, former deputy police chief for the city of Saline, and Craig Swenson of the Pittsfield Township public safety department, who’s project manager for the MPSCS merger – were on hand to answer questions.

Felicia Brabec (D-District 7) asked for an explanation about how the system worked. Ceo said the merger allows the county’s emergency responders to communicate throughout the state, because the county’s 800 MHz system integrates with the state’s system. It’s also a “two-way handshake,” he added, because the local system must abide by the state’s regulations – specifying things like the amount of fuel that must be kept on hand for the system’s emergency generators, for example. The state also provides certain services to the county, including technical support.

Swenson noted that in the past, responders often had to use their cell phones to communicate with responders from other agencies, or when they traveled outside of their jurisdictions.

Barbara Bergman (D-District 8) observed that the new system also addressed the problem of dead zones – spots where cell phone coverage isn’t available. Swenson reported that the 800 MHz system uses seven towers throughout the county, and now there are rarely complaints about coverage.

By way of background, the locations of those towers were included in a 2010 working session presentation to the board. Those locations are:

• Jackson Avenue west of Baker Road, in Scio Township
• Sunset Road, at the city of Ann Arbor’s water treatment plant
• Dixboro Road south of Pontiac Trail, in Northfield Township
• WEMU radio station tower at the corner of LeForge and Clark, in Superior Township
• Bemis Road, east of the state Forensic Center in York Township
• Manchester Public Schools property, at the corner of Hibbard and Geiske
• Werkner Road north of Waterloo Road in Lyndon Township, at the Chelsea landfill

Rob Turner (R-District 1) asked about the costs to comply with the MPSCS regulations. Ceo replied that those requirements were factored in from the beginning, and were part of the local system’s upfront costs.

Turner also asked whether this project, which involves collaboration among multiple jurisdictions in the county, would be eligible for the state’s Economic Vitality Incentive program (EVIP). Probably not, Swenson replied, because many counties in the state are doing similar projects.

Alicia Ping (R-District 3), a former Saline city councilmember, thanked Ceo for his ongoing work on the project, even though he retired from the Saline police department last year. She noted that sheriff Jerry Clayton had told her that without Ceo’s help, the project would have taken much longer to complete.

Stefani Carter, the attorney who’s filling in while corporation counsel Curtis Hedger is on medical leave, told the board that the only reason they were being asked to pass this resolution is because the action was specifically required by the state attorney general’s office.

Outcome: Commissioners unanimously voted to approve merging the countywide 800 MHz emergency communications system with the Michigan Public Safety Communication System.

Communications and Public Commentary

During the March 7 meeting there were several opportunities for communications from commissioners as well as general public commentary.

Communications: Packard Health Clinic

At the start of the meeting, county administrator Verna McDaniel welcomed Nancy Allcroft, the new executive director for the Packard Health Clinic. Allcroft spoke briefly to commissioners, telling them that Packard Health is the biggest, best-kept secret in Washtenaw County. The clinic provides health services both to those who can pay, as well as those who otherwise couldn’t afford health care, she said. It’s a truly integrated organization, she said, with partners in the public and private sectors.

Communications: Four-Party Countywide Transit

Wes Prater (D-District 4) noted that at the Ann Arbor city council’s March 5 meeting, a four-party agreement related to a possible countywide transit system was approved. [In addition to Ann Arbor, the four parties include the city of Ypsilanti, Washtenaw County and the Ann Arbor Transportation Authority. The Ann Arbor city council was the first entity to approve the accord, doing so after postponing action on it three times and deliberating for over 3.5 hours at Monday's meeting. The agreement lays out a framework for a transition to a new transit governance structure provided under Act 196 of 1986 instead of the state statute under which the AATA is currently incorporated – Act 55 of 1963. See Chronicle coverage: "Ann Arbor Council OKs Transit Agreement"]

Prater wondered when the board would see a copy of the agreement. Board chair Conan Smith (D-District 10) said the agreement had been emailed out to commissioners on Tuesday, but that he’d make sure everyone had a paper copy, too.

Rebecca Head, former Washtenaw County director of public health, talks with county commissioner Conan Smith prior to the start of the March 7 board meeting. Head serves on the Ann Arbor District Library board, and attended the meeting with her daughter, a Skyline High School student who was completing a class assignment.

Prater said he had received the report from the financial advisory group that’s been working on recommendations for possible mechanisms to fund countywide transit. He hadn’t had the chance to fully digest it, he said, but it does raise some questions. The board needs to be discussing these documents, he said, as well as the articles of incorporation.

One concern Prater cited relates to the 15-member board for a new Act 196 authority. That board would have very little accountability, he said. It doesn’t report to any other entity, he noted, and that’s a concern.

Yousef Rabhi gave some background on the issue, saying that he’s been attending the meetings of the U196 board. [By way of background, the 11-member unincorporated Act 196 board (U196) started meeting in late 2011. Rabhi is not a member, but the meetings are open to the public. Assuming that the authority’s articles of incorporation are approved by the county board and that the four-party agreement is also approved by all parties, the U196 board will finish a report on a five-year transit improvement program, then request that the county clerk file articles of incorporation for a countywide transit authority.]

At the U196 board’s last meeting, Rabhi reported, former county administrator Bob Guenzel attended and briefed the board about the report of the financial advisory group, which Guenzel co-chairs. [.pdf of financial advisory group's draft report – see Chronicle coverage: "AATA Financial Group: Let's Continue"] Rabhi said the group initially identified a funding gap of about $60 million, between existing funding and what would be needed to fund the first five years of expanded services. Then, the group extracted services that have other funding sources, such as federal and state grants. That left a roughly $32 million funding gap for remaining services, he said. The group identified a possible millage amount to cover the gap, he said, but made no recommendations at this point.

Prater raised the issue of a possible regional transit authority (RTA) in southeast Michigan, and noted that Smith had participated in discussions. Smith replied that the meetings he was involved with ended several months ago, and state legislation that would enable formation of an RTA was introduced in January 2012. A state senate committee had held hearings on the legislation, Smith said, and action was expected on the package of bills next week.

Leah Gunn (D-District 9) noted that state Rep. Jeff Irwin – “who used to be one of us,” she said, referring to his former tenure on the county board – had attended Monday’s city council meeting. He had said that this community shouldn’t depend on the RTA, she reported, and should move ahead with the proposed five-year plan for countywide transit. Even if the RTA happens, she added, it would just be a regional overlay. “I’ll take his advice, and hopefully you will too,” she told her board colleagues.

Prater replied by saying that the co-chairs of the financial advisory group – Guenzel and McKinley CEO Albert Berriz – had recommended putting the project on hold until the state acts on the RTA legislation. Smith clarified that Guenzel and Berriz were referring to different legislation separate from the RTA. A bill is being considered that would allow counties to use a different funding mechanism for transit – a vehicle registration fee – rather than a millage. He said when the legislature acts on that bill, then the financial advisory group is expected to reconvene and make its recommendations.

Gunn observed there’s been so much information about the proposal that seems conflicting, and the board wouldn’t resolve those issues that night. Prater noted that they’ll have to talk about it at some point, and Rabhi – who chairs the board’s working sessions – indicated that he would schedule a session on that topic. The session has subsequently been set for March 22.

Communications: Treasurer’s Report

Prater also asked why the board hasn’t received a monthly report recently from the county treasurer, Catherine McClary – it’s required that such reports are submitted, he contended. When board chair Conan Smith replied that McClary does send the reports quarterly, via email, Gunn said she agreed with Prater – she hasn’t received a treasurer’s report in months.

Responding to a follow-up query from The Chronicle, Jason Brooks of the county administrator’s office said the county’s corporation counsel verified that the treasurer does not have a requirement under state statute to provide a monthly report. However, counsel noted that powers outlined in MCL 46.11(k) give the board the authority to compel the treasurer to make a regular report. That section states:

46.11 Powers of county board of commissioners.
Sec. 11. A county board of commissioners, at a lawfully held meeting, may do 1 or more of the following:
…
(k) Require a county officer whose salary or compensation is paid by the county to make a report under oath to the county board of commissioners on any subject connected with the duties of that office and require the officer to give a bond reasonable or necessary for the faithful performance of the duties of the office. An officer who neglects or refuses either to make a report or give a bond within a reasonable time after being required to do so may be removed from office by the board by a vote of 2/3 of the members elected or appointed, and the office declared vacant. The board may fill the vacancy for the unexpired portion of the term for which the officer was elected or appointed. If an election occurs before the expiration of the unexpired term, and if the office is elective, the vacancy shall be filled at that election. The board shall give reasonable notice of the election to fill the vacancy.

McClary gave a 2010 annual treasurer’s report to commissioners early last year, at their Feb. 16, 2011 meeting, but has not yet submitted the 2011 annual report. Annual reports from the treasurer for the years 2006 through 2010 are posted online. A page on the treasurer’s website – “Safeguarding the Public’s Money” – included a “Monthly Treasurer’s Report” link, but the link was no longer functioning. When this link was pointed out to McClary later in the week, she said she had been unaware that the link existed. She then directed her staff to remove it, because the treasurer’s office was not using it to post reports.

On Friday, McClary also sent The Chronicle two recent treasurer’s reports: (1) for the month ending Dec. 31, 2011, and (2) for the month ending Feb. 29, 2012. She indicated that the report from the end of 2011 will provide the basis for her annual treasurer’s report, and includes information on the amounts and yields of various investments, including certificates of deposit, municipal bonds and treasury notes.

At the March 7 meeting, Smith requested that county administrator Verna McDaniel communicate with the treasurer’s office and establish a schedule for regular reports.

Communications: Public Commentary

The only speaker during public commentary was Thomas Partridge, who spoke at both opportunities during the evening. He called on everyone to recognize the anniversary of the 1965 civil rights march in Selma, Alabama, and to renew the quest for civil rights. County residents need vital services such as affordable, accessible countywide transportation, he said, including transportation for senior citizens and the disabled. The county needs to help the homeless people living in “Camp Take No Notice,” he said. [The name of the enclave is Camp Take Notice.] People there need immediate help, he said.

Present: Barbara Bergman, Felicia Brabec, Leah Gunn, Ronnie Peterson, Alicia Ping, Wes Prater, Yousef Rabhi, Rolland Sizemore Jr., Conan Smith, Dan Smith, Rob Turner.

Next regular board meeting: Wednesday, March 21, 2012 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. [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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Washtenaw Head Start supporters filled the county boardroom on Oct. 20 at a working session of the board of commissioners. (Photo by the writer.)

Eighteen people spoke during public commentary, many of them staff or parents of children in Head Start – and many with their children in tow. They described how transformative the preschool program has been in their lives, and made passionate appeals for the county to keep administering it.

The county administration first made a formal proposal to the board at a July 21 working session, when county administrator Verna McDaniel and her staff laid out details of a transition. McDaniel noted that the county isn’t in the business of education, and that it made sense to consider moving the program to another grantee – especially in light of a projected $17.5 million general fund deficit that the county was facing in 2012-2013.

If approved by the board, the county would notify the federal Head Start program of its intent to relinquish its grantee status. County support would continue through 2012 – a line item of $528,000 for 2012 is in the proposed general fund budget, part of Head Start’s total $4.8 million budget. But the county would hand off the local Head Start to federal administrators at the start of 2013. Federal officials would then be responsible for selecting another agency to take over the program.

Pat Horne McGee – Washtenaw Head Start’s executive director – received a standing ovation from the audience at the start of her presentation to commissioners. She noted that October is national Head Start awareness month, and that usually she’s there to accept a board resolution of appreciation. Horne McGee then reviewed a 9-page document she had originally distributed to the board this summer, which highlighted the program’s achievements and economic impact, and which proposed alternatives that would allow the county to continue administering the program.

Several commissioners stated their support for Head Start, but noted that the county wasn’t best-suited to administer it. However, Ronnie Peterson protested bitterly over how the process was being handled, accusing others – but not naming anyone specifically – of holding backroom talks with Washtenaw Intermediate School District officials about taking over the program. [The county could have input on the choice, but would not be empowered to decide which agency is selected. The possibility of WISD being the next grantee was discussed at the July 21 working session – Peterson attended that meeting and expressed similar concerns.]

It’s likely that commissioners will continue to discuss the future of Head Start, as part of their ongoing budget deliberations. They have until the end of the year to approve the budget, but only three more regular meetings are scheduled before then.

The Oct. 20 working session also included a very brief presentation about the county’s contracts for outside professional services. This report focuses on the topic of Head Start.

Head Start: Brief Background

As part of an effort to balance the 2012-2013 budget and overcome a projected $17.5 million deficit, county administrator Verna McDaniel has proposed eliminating support for Washtenaw Head Start. At her initial presentation to commissioners at the July 21 working session, she said the board had directed her to review all the county programs and services to determine whether the county should continue to offer them, in light of current economic conditions. That was the context for her proposal regarding Head Start.

Head Start is a federal grant program that promotes school readiness for children from low-income families, between three to five years old. The program offers educational, nutritional, health, social and other services. The county has administered this program for 46 years – in federal parlance, the county is the “grantee” for the program in Washtenaw County. There are several sites throughout the county. The largest is in Ypsilanti, serving about 260 children and their families. About 300 other children are served at sites in Ann Arbor, Whitmore Lake and Willow Run.

The program employs about 35 full-time employees – mostly teachers, plus about six positions in administration. Most of the workers are represented by unions.

The program would likely continue under a different grantee. The process would work like this:

1. The county would notify the regional Head Start office that the county intended to relinquish its status as grantee.
2. A date would be set to end the county’s participation in the program.
3. The national Head Start office would issue a request for proposals (RFP) and select a new grantee. Entities that could qualify as a grantee include: (1) a public entity – like a school district, university, municipality or a new consortium; (2) a nonprofit or for-profit organization; or (3) a regional Head Start office.
4. If no new grantee is selected by the county’s end date, the national Head Start office would appoint the Community Development Institute (CDI) as the program’s interim manager. CDI is a federally funded entity specifically charged with providing this kind of interim service for Head Start programs. Current Head Start staff in Washtenaw County would have to re-apply for their positions.

Another factor is the $3 million Head Start building that the board of commissioners voted to build in 2002. The county owes $2.68 million on bond payments through 2022. It’s likely that the building would factor in to any agreement made with the next grantee. Currently, all of the “rent” paid to the county by Head Start goes directly to the bond payments. In addition, Head Start will make payments to the county through FY 2052-53 to repay the county for the full amount of the bond. The county would also need to determine what obligations it has for more than $748,000 it received in federal funds for the building.

For more details about the program and previous board discussion, see Chronicle coverage: “Options Weighed for Washtenaw Head Start.” In addition to the July 21 working session, several Head Start supporters also spoke during public commentary at the board’s Sept. 21 meeting, when the 2012-2013 budget was formally presented.

Head Start: Public Commentary

Most of the 18 people who spoke during public commentary were staff or parents with children in Head Start. Here’s a sampling of that commentary, which lasted about an hour and was frequently met with applause from others in the audience.

Marcia “Marti” Bombyk said she’s an Ann Arbor resident and taxpayer, and a professor of social work at Eastern Michigan University. She’s also coordinator of EMU’s graduate certificate in community building and a neighborhood organizer in Ypsilanti, focusing on neighborhoods south of Michigan Avenue where there’s a high concentration of families in poverty. Bombyk told commissioners she’d like to address the bigger picture, and she read a letter from a former student of Head Start who’s now an adult. In the letter, the student explained how without Head Start, she wouldn’t be where she is today. It’s an investment in the future, helping to break the cycle of poverty. Bombyk said the letter was written by Congresswoman Loretta Sanchez. [Sanchez is a Democrat representing California's District 47.] Bombyk urged the board to retain funding for Washtenaw Head Start.

John Franks said he’s a graduate of Ypsilanti High School and is getting a bachelor’s degree in business management. Head Start helped him be prepared for school, giving him that extra push and letting him know what to expect. If not for Head Start, he wouldn’t be talking to them today. Now, his three-year-old son is in Head Start too. His son has only been in the program for two months, but has already learned a lot, Franks said. He noted that Head Start had employed his mother, which helped out their whole family.

Franks’ fiancé, Jemma Wallace, described how their son – who she says is borderline ADHD – can now hold a pencil, and is eating fruits and vegetables. Wallace said she’d been struggling, and the Head Start teachers are giving her advice on how to be a better parent. Her son is now eager to go to school, she said. Wallace also gently chastised commissioners: “You all look kind of bored, but I want you to wake up!”

Jill Koeppe teaches at the Ypsilanti Head Start site, and said the teachers there are all dedicated. She worked hard to get her degree – the teachers have high credentials, she said. Koeppe drives 45 minutes to get to work and her student loan payments require a large part of her take-home pay, but she does it because she believes in the program. Everyone works extra hours so that they can help the Head Start families. It’s a wonderful program, she said.

Michelle Trummel of Ypsilanti described how she was taking Head Start families on a tour at Eastern Michigan University. On the tour, she asked EMU’s director of community relations to support their efforts to keep Head Start with the county, but he told her it was a done deal. This hurt her, Trummel said, but he was probably right – though she still hoped that he was wrong. The county is giving up on its most valuable asset – its children. Why are they selling out a program of excellence? There are over 40 staff at Head Start in Ypsilanti, including teachers, kitchen staff and others. All of them will be fired and have to reapply with whatever agency takes over Head Start, and they’ll lose county benefits. She might lose her house, Trummel said, and she knows of others who would face foreclosure. She said she’s known as the “Ypsitucky Queen,” and she’s a wealth of positive community relations – but now her fate lies with the board.

Melodie Tolbert walked up to the podium with a young boy, and said the boy was a former student of hers at Head Start, where she teaches. If the county doesn’t pay money at the start of these children’s lives, the county will pay much more at the end, if they get into trouble and are put in prison. Please don’t balance the budget on the backs of children, she said. Society is changing. Head Start provides a safe place for children to come, learn, and be fed nutritious meals. Tolbert held up a copy of the board’s budget principles, saying that commissioners are concerned about families and children – that’s what Head Start is all about, she said. They’ve worked hard to become a program of excellence, but they need the county’s continued support.

Shirley Beckley noted that she’s talked to the commissioners before. Her children, who attended Head Start, are now 48 and 49, and her grandchild now attends the program. She knows the county has to balance its budget, but even the governor of Michigan has decided to fund Head Start, so surely the county can, too.

Tiffany Gore said her 23-year-old son was enrolled in Head Start 18 years ago. The program fostered his love of school, helped him overcome learning disabilities and resulted in his becoming an honor student. He’s now studying at Michigan Tech, pursuing a degree in computer engineering. She also now has a three-year-old daughter who’s had some disabilities and is enrolled in Head Start – now her daughter is much calmer and pleasant to be around, and that’s given Gore peace of mind. She urged commissioners to retain the program.

Wadler Fleurina, who lives in Ypsilanti, has two kids at Head Start, and they always tell him what they’ve learned. Most countries that are poor don’t have decent education. Fleurina said he’s from Haiti, which has a very poor education system. Here, his children have opportunities because of Head Start. It will help them through high school and college, and let them reach new heights. He asked commissioners to find it in their hearts to keep Head Start going.

Jenita Holbrook noted that she lived in Romulus, but her second home is at 1661 Leforge Road in Ypsilanti – the Head Start site. She graduated from Head Start in the 1980s, growing up in a neighborhood that most commissioners probably only saw on TV. Their family would sometimes eat only beans and rice for weeks at a time, and their milk was powdered. She lived next to crack houses, and there were drive-by shootings. She lost two brothers to drive-by shootings, less than a year apart. But for her, Head Start has broken the cycle of poverty. If you don’t invest in children now, she said, they’ll end up being like the men who killed her brothers. Maybe Head Start could have prevented that.  “If you don’t keep it open, you’ll have a lot more on the streets,” she said.

Dwight Walls, senior pastor with the Greater Shiloh Church of God in Christ in Ypsilanti, described his past affiliation with the county and Head Start. He began working for Head Start in the late 1960s, first as kitchen staff, then as an assistant teacher, then working his way up to eventually serve as director for a short time. He was president of the employee union for 25 years, Walls said, and negotiated 20 contracts during that time. He said he was there to fight for the children because their lives are at stake. Head Start works, and will continue to work if they find money to keep it afloat. Walls noted that he’s worked on a lot of their campaigns to get commissioners elected. Let’s go back and relook at the budget, he said – together they can find the funding to make it work.

Caryette Fenner – president of AFSCME Local 2733, the largest union representing county employees – told commissioners that she was also a product of Head Start, but not in Washtenaw County. She didn’t remember the names of her teachers because she didn’t have a good experience. But her daughter attended Head Start here, and remembers her teachers because they had a positive impact on her life. Her daughter graduated from Michigan State and is working on a master’s degree – that’s all due to Head Start. Fenner said that when her daughter was in the program, one of the teachers encouraged Fenner to also go back to school, and she did. This is a program of excellence, she said. And whatever Pat Horne McGee tells her staff to do, they’ll do. Teachers have already made labor concessions, Fenner noted. The program brings value to Washtenaw County.

Flo Burke told commissioners to examine studies that have been done by the HighScope Educational Research Foundation in Ypsilanti and the National Institute for Early Education Research. Studies show that quality preschool programs can make a difference, she said. Head Start is a program they just can’t let go. The county’s funding is just a small part of the Head Start budget, she noted – most of the budget is provided by federal funding. But if the county drops its sponsorship, it’s not clear what would happen. There’s no guarantee that anyone would take it over, she said.

The final speaker, Sara Burg, tearfully spoke about being a single mother, and how she didn’t know where she’d be without this program. Two of her children have graduated from Head Start, and another one just started. Without Head Start, her children wouldn’t be doing as well as they are, and she wouldn’t be able to keep a job because she couldn’t afford daycare. She urged commissioners to continue funding the program.

In addition to public commentary at the working session, commissioners had received a raft of letters from Head Start children and parents, lobbying the board to retain the county’s administration of the program. [.pdf of letters]

Head Start: Presentation

After public commentary, board chair Conan Smith thanked everyone for coming, and said it was never the board’s intent to see Head Start disappear. They’re working on a strategy to maintain the organization’s full breadth of services, he said. Yet the county has to be cautious and not be arrogant in thinking it’s the best entity to provide this service, Smith added. If the county does vote to reduce its budget allocation to Head Start, Smith said it’s a vote he’ll make only if he’s confident that another provider can step in.

With that, Yousef Rabhi – who chairs the working sessions – introduced the executive director of Washtenaw Head Start, Pat Horne McGee, who received a standing ovation from the crowd of supporters in the audience.

Horne McGee noted that October is Head Start awareness month, and that usually she’s there to accept a resolution of appreciation from the board. She referred to a handout that she’d originally distributed to the board this summer. [.pdf of Head Start impact document] It was important to provide a framework for what Head Start has accomplished, she said, in order to make a decision about its future. She also pointed to the board’s budget decision principles, citing three that she felt related directly to Head Start:

• Support programs that address the basic needs of children and families.
• Support programs that increase economic opportunity for residents.
• Integrate efforts across agencies to meet strategic priorities.

Horne McGee asked people to stand up if they were parents of Head Start children and also worked for the program – several people in the audience stood. Head Start isn’t just a child development program, she said. It’s also a community development program that helps people acquire skills and emerge from poverty. Many of Head Start’s staff have matriculated or completed professional degrees with support of the program and the county, she said.

Horne McGee touched on a range of other points from the 9-page impact document. Among other things, the document (1) outlined ways that the program has made cuts over the years to address the worsening financial situation, and (2) proposed several alternatives that could lower the county’s general fund contribution to Head Start. The options specified under the second point included items such as requesting additional in-kind contributions from local partners, and tying staff raises to increases in federal grant support. She also referenced letters of support from the community that commissioners had received this summer regarding Head Start.

Alluding to the public commentary, Horne McGee said the best stories have already been told, adding that she’d be happy to answer questions from the board.

Head Start: Commissioner Discussion

Alicia Ping began the discussion by saying she’d be brief, because “I know commissioner Peterson has a lot to say.” She confirmed with Horne McGee that Head Start is free to those who enrolled. But is it open to people who could pay? she asked. Horne McGee explained that 10% of the families enrolled can be over the income level set by the federal Head Start program, but those are often families of children with disabilities, she said. The staff also uses that 10% for families whose income might be just a few dollars over the limit. Horne McGee said Washtenaw Head Start gets many request for families that want to pay to enroll, but they aren’t accepted, she said.

Ronnie Peterson then spoke at length, often receiving applause from the Head Start supporters. He described his own background, saying he started working when he was 10 and didn’t get any handouts. Head Start is an award-winning program and provides opportunities, he said, not handouts. He talked about his advocacy in fighting poverty, and recalled that commissioner Conan Smith’s grandfather, Al Wheeler, had led the county’s office of economic opportunity during its most progressive years.

Peterson said he’d advocate for Head Start all the way to the vote. When he was growing up, his parents didn’t eat until all their children had been fed, he recalled.  “We should not enjoy a budget adoption until the children are fed.”

Peterson characterized the county as planning to default on the Head Start program, in order for the Washtenaw Intermediate School District (WISD) to take over. He said he didn’t realize those discussions had been going on, and he wondered what process had been started and at what level these discussions had been taking place.

Yousef Rabhi said he didn’t know what conversations had occurred. Rabhi noted that if the county decides to give up its status as federal grantee of the program, then it would be out of their hands. Even if the WISD is interested in taking over the program, there’s no guarantee that WISD would be selected, he said.

Peterson said he was upset at being left out of the loop, and he asked whether Rabhi was confirming that discussions had taken place. Rabhi replied that he wasn’t sure – he hadn’t attended any meetings with WISD, but it seemed that there might have been discussions, since the WISD had been mentioned so many times.

Peterson said it seemed that everyone in charge was out of the room. [County administrator Verna McDaniel didn't attend the working session, and at the time of Peterson's comment, board chair Conan Smith and Kelly Belknap, deputy county administrator, were not in the boardroom.] Peterson said he was concerned that this was being handled in a backroom process, adding that he had confronted the WISD superintendent about it. He said he had never played politics with children, and he found this offensive.

Referring to the $15,000 annual stipends that McDaniel had proposed several weeks ago for her top staff, Peterson asked “Where did that come from?” The county’s financial challenge doesn’t seem that great if money can be found for that, he said. [The stipends – which Peterson characterized as bonuses – had been part of a proposed administrative restructuring that McDaniel withdrew from the board's Sept. 21, 2011 agenda. She had planned to eliminate the position of deputy administrator, which has been vacant for several months, and distribute responsibilities among four other managers, who would receive a $15,000 stipend in addition to their regular salaries.]

Parents in the room that night probably don’t have time to go to PTA meetings, Peterson said, yet they came to the working session. They weren’t asking for handouts, he said, but just wanted to have an education for their children. The room should have been packed with advocates for children and early-childhood education, he said. Discussions about the future of Head Start should have been public, he said.

Wes Prater said that the budget information about Head Start has been public, and noted that in addition to $528,000 in general fund dollars that support the program this year, the 2012 county budget calls for another $528,000 to fund Head Start.  [No funding is budgeted for Head Start in 2013 – the county plans to relinquish its administration of the program that year.]

Peterson said it was a weird meeting that night, and there will be a Part 2 to the discussion. He wasn’t sure why people “on the payroll” weren’t in the room. He asked if Horne McGee had been asked to propose an alternative budget. No, she said, adding that the program has consistently made budget cuts over the years. Peterson said he anticipated a follow-up meeting on this issue.

As he had at a board meeting the previous night, Prater pointed out that 16 departments showed increases in their expenditures compared to 2011, totaling more than $6 million. Conan Smith, who had returned to his seat by this time, explained – as he had the previous night – that the increases relate primarily to higher amounts for each department’s cost allocation plan (CAP).  [The CAP sets a charge that’s levied on each county unit and designed to cover general costs like administration, technology, building use, and insurance, among other things.]

Smith said he wished that Peterson had remained in the room to hear this explanation – Peterson had left the room soon after Smith started speaking. Departments are not being overfunded, Smith said, and county revenues are declining. “This is a tight budget with no fat in it,” Smith said.

The budget projects revenues of $97.714 million in 2012 and $96.937 million in 2013, down from $101.25 million this year.

Prater contested Smith’s interpretation, insisting that 16 county departments were increasing their expenses by a total of $6.8 million, and that CAP accounted for only a portion of that. He accused Smith of “playing with numbers.”

Rolland Sizemore Jr. spoke up, noting that he sat on the Head Start board and it’s an excellent program. He said there might be ways to find additional funds, and pointed to the fact that many county buildings aren’t fully used. County staff might be able to consolidate – at the Zeeb Road service center, for example – and sell some buildings. It comes down to money, he said – that’s the issue in making these budget decisions.

At this point Shirley Beckley, who had spoken during public commentary, stood up and began addressing the board. Rahbi interrupted, saying she’d have the opportunity to speak at the meeting’s final public commentary. “I’m 70 years old and I’ll say something right now,” she replied. She recalled that at the board’s working session in the summer, when the Head Start program had been initially discussed, some commissioners had said they weren’t in the business of educating children. If they decided to get rid of the program, they should at least be honest, she said. “We’re not stupid.” She told Conan Smith to stop talking to them as if they were.

Present: Barbara Levin Bergman, Felicia Brabec, Leah Gunn, Ronnie Peterson, Alicia Ping, Wes Prater, Yousef Rabhi, Rolland Sizemore Jr., Dan Smith, Conan Smith.

Absent: Rob Turner

Next regular board meeting: Wednesday, Nov. 2, 2011 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. [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.

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Supporters of the Humane Society of Huron Valley in front of the Washtenaw County administration building at Main and Catherine, prior to the Oct. 19 board of commissioners meeting. (Photos by the writer.)

Inside during their meeting, county commissioners heard from a stream of supporters for various nonprofits, all urging the board to maintain funding for services – from the care of animals to basic safety net services like housing and food. The proposed budget calls for $1.2 million in cuts to outside agencies, including many nonprofits. Funding levels would drop from about $3 million this year to $1.8 million in each of the next two years. The cuts are proposed to address a projected $17.5 million deficit over the next two years.

Much of the public commentary came from HSHV supporters, who argued that the county is already getting more services than it pays for under its contract with the nonprofit, even before cutting annual funding from $500,000 to $250,000. That contract expires at the end of 2011, and leaders from the county and HSHV will be meeting later this month to try to reach an agreement for providing services – including those mandated by the state.

The budget was the focus of much of Wednesday’s three-hour meeting, which started with the appointment of Felicia Brabec to fill the vacant District 7 seat. Commissioners expressed support for the nonprofits they fund, but several argued that cuts are necessary because of the county’s declining revenues. They also pointed to discussions at the state level of eliminating the personal property tax. A recent analysis prepared by county staff estimates that repeal of the PPT would cut county revenues by $5.559 million, and would eliminate a total of $42.961 million in revenues for all local governments in Washtenaw County. [.pdf of PPT report]

Some commissioners urged the public to contact state legislators and oppose the PPT repeal, while others asked that everyone dig into their own pockets and contribute to local nonprofits that face funding cuts. Several commissioners expressed support for putting a human services millage on the ballot as a way to raise money for these safety net services. It would not be possible to add it to the Nov. 8 ballot, but could be considered for 2012. Wes Prater also argued that not enough cuts have been made in the budget – he believes county departments can find additional ways to trim their expenses.

In the only formal action related to the proposed budget, a resolution proposed by Yousef Rabhi reallocated $26,230 in annual dues (or $52,460 over two years) paid to the Michigan Association of Counties, transferring those funds to the Delonis Center, a homeless shelter in Ann Arbor. The resolution was unanimously approved. It followed action at the Ann Arbor city council’s Oct. 17 meeting, when councilmembers appropriated $25,000 from the city’s general fund reserve to keep the Delonis Center’s warming center open this winter. At the council’s meeting, mayor John Hieftje noted that the Delonis Center is a partnership between the city and county, and he hoped the county would uphold its end.

Final decisions on the budget haven’t yet been settled. The board must pass a budget by Dec. 31, and has only three more regular meetings scheduled for the year. The budget must first be voted on by the Ways & Means Committee – a committee of the whole board – then voted on a final time at a regular board meeting.

Though much of the Oct. 19 meeting focused on 2012-2013 budget issues, the board gave final approval to several other items, including: (1) creating a study committee to explore a historic district in Salem Township; (2) renewing a two-year contract with Governmental Consultant Services Inc., a Lansing-based lobbying firm; and (3) authorizing a contract with Sylvan Township related to the township’s bond repayment schedule.

And in non-budget public commentary, Douglas Smith submitted an appeal to the board for a Freedom of Information Act request that had been denied by the county, related to an incident that he says involves a high-ranking member of the sheriff’s office. The board did not respond publicly to his request, other than to clarify with the county’s corporation counsel that appeals are handled by the county administrator.

District 7 Appointment

The bi-weekly meetings of the county board are actually two back-to-back meetings, beginning with a Ways & Means Committee meeting at 6:30 p.m., followed immediately by the regular board meeting. The board meeting is officially posted to begin at 6:45 p.m., but typically starts much later – most of the deliberations on agenda items occur during Ways & Means, which is a committee of the entire board.

On Wednesday, rather than begin with Ways & Means, commissioners waited until 6:45 p.m. and began the evening by convening the board meeting – for the sole purpose of making an appointment to the vacant District 7 seat. Former commissioner Kristin Judge resigned from the board mid-term – effective Oct. 9 – and two people applied to replace her until special elections are held next year.

County commissioners Wes Prater (D-District 3) and Felicia Brabec (D-District 7).

The board interviewed Felicia Brabec and Christopher Nielsen at a public meeting on Monday, Oct. 17. In response to a question during public commentary at that meeting, commissioners reported that Judge had encouraged Brabec to apply, and had arranged introductions with some members of the board.

At Wednesday’s meeting, Alicia Ping read the resolution appointing Brabec. The same resolution set the special election dates: a primary on Feb. 28, 2012, and a general election on Tuesday, May 8.

The filing deadline for candidates with political party affiliations to run for this office is Dec. 6 at 4 p.m. The filing deadline for independent candidates is Jan. 3 at 4 p.m. Republican Richard Conn has already filed.

There was no discussion on Wednesday prior to the board’s vote.

Outcome: Commissioners voted unanimously to appoint Felicia Brabec to serve as District 7 commissioner. Barbara Bergman was absent.

After receiving a round of applause, Brabec was immediately sworn in by county clerk Larry Kestenbaum. Board chair Conan Smith said it was a difficult decision, and that it’s the board’s misfortune that they couldn’t appoint both candidates. [Nielsen also attended Wednesday's meeting.] To Brabec, Smith quipped, “”We will work you to death.” Rolland Sizemore Jr. asked her to introduce her husband, David Brabec, who was in the audience. Sizemore told him that commissioners are the reason Brabec will come home from these meetings in a bad mood. He appeared to be joking.

Funding for Nonprofits

Since county administrator Verna McDaniel formally presented the 2012-2013 general fund budget to the board at its Sept. 21 meeting, commissioners have discussed various elements of it at board meetings and working sessions. They have until the end of 2011 to modify and approve it. After Wednesday’s meeting, only three more regular board meetings are scheduled: Nov. 2 and 16, and Dec. 7.

Funding for outside agencies – $1.8 million for each of the coming two years, down from $3 million this year – is a relatively small part of the $97.7 million budget. Yet it typically receives considerable attention from the board and the community. The category includes funding for a variety of nonprofits, as well as dues and special initiatives, including funding for economic development efforts. [.pdf list of all proposed 2012-2013 outside agency funding]

Outside agency funding includes line items for several nonprofit institutions, including the Humane Society of Huron Valley, the Delonis Center homeless shelter, SafeHouse Center (a shelter for victims of domestic violence and sexual assault) and many others. It also includes a line item for coordinated funding of human services – funds that are pooled with other money from the city of Ann Arbor, Washtenaw United Way and Washtenaw Urban County. Those pooled funds are allocated to nonprofits in a coordinated way, focusing on six priority areas: housing/homelessness, aging, school-aged youth, children from birth to six, health safety net, and food. [.pdf of coordinated funding allocations]

If the 2012-2013 budget is approved as proposed, money for coordinated funding will drop by $128,538 – from $1,015,000 to $886,462. Several supporters who spoke at Wednesday’s meeting advocated for nonprofits who get funding through this process, which is overseen by the joint county/city of Ann Arbor office of community development.

Responding to a follow-up query from The Chronicle after the Oct. 19 meeting, Mary Jo Callan – director of the office of community development – said the intent would be to spread the cuts across all funded agencies, so that every nonprofit takes a small cut. Otherwise, the agencies technically funded by Washtenaw County would have to absorb the entire amount cut by the county, she wrote:

This scenario would be especially unfortunate for those agencies, since it was an administrative decision to assign agencies to specific funders. In other words, no agency specifically applied for county funds, since one application was an application to every funder through coordinated funding. … However, in order to execute the scenario where cuts are spread out across all agencies funded, other coordinated funding partners must agree to that scenario.

The board spent part of its Oct. 13 working session discussing outside agency funding. It was also the main topic of public commentary at Wednesday’s meeting, as well as at the formal public hearing on the budget.

Nearly 30 people spoke about outside agency funding at public commentary, and four people addressed the board on that issue during the public hearing. This report summarizes those remarks thematically. Many others attended the meeting – spilling out of the boardroom into the lobby of the county administration building –  but did not address the board. There was frequent applause in support of speakers’ commentary.

Funding for Nonprofits: Public Commentary – Humane Society

Ten people – volunteers and staff – urged commissioners to restore proposed funding cuts for the Humane Society of Huron Valley. Many other HSHV supporters attended the meeting but did not address the board formally. The proposed budget would cut HSHV funding from $500,000 to $250,000 annually. HSHV is operating under a contract with the county to provide state-mandated services, as well as services that go beyond the state mandate – the contract runs through 2011.

Susan Karp read a letter from Debbie Schutt of the Michigan Pet Fund Alliance. Earlier this year, HSHV received the alliance’s Outstanding Large Shelter Award for 2009. It was recognized for a 75% save rate that year. It will receive the 2010 award as well, according to Schutt. The letter described several shelters that, unlike HSHV, are under fire for their practices – including the Michigan Humane Society and the shelter in Livingston County. Schutt urged the county to work with HSHV. Lisa Birchmeier read a letter from another supporter of HSHV, who characterized Washtenaw County as a community of animal lovers. The county gets a bargain for HSHV’s comprehensive, innovative services, which include support for families that are struggling financially – like the Bountiful Bowls pet food assistance.

Holding her dog Snickers, Deborah Noble tearfully told commissioners that her dog represented the faces of many others that are cared for at HSHV. She served on the Superior Township planning commission, which had to approve the new facility – it’s second-to-none, she said. A year ago, Noble was diagnosed with stage 4 breast cancer, and “there is no stage 5,” she said. Her doctors didn’t think she’d make it this long, but it’s because of Snickers and her other pets that she has survived, she said. Cutting HSHV funds doesn’t mean the animals get fewer treats – “we’re talking about killing these animals,” she said. Noble concluded by asking commissioners, on behalf of Snickers, not to cut HSHV funding.

Jessica Anderson said she’s been an HSHV volunteer for 17 years. She asked whether people would bring in strays to the shelter if they thought the animals would be killed. It’s not a pretty thought to think about animals running loose, as they did recently in Ohio, she said. [The reference is to the release of dozens of exotic, wild animals – including grizzly bears, lions and tigers – from a farm in Zanesville, Ohio. The owner killed himself after releasing the animals, and law enforcement officials killed many of the animals that couldn't be captured.] Anderson said the board’s decision-making process on funding should begin with an investigation of each organization. HSHV is run better than it’s ever been, she said. Clearly, budget cuts need to be made by the county, she said, but it’s not good to pit organizations against each other for funding.  “As we say in education, it’s not a race to the bottom.”

Karen Patterson, an HSHV educator, described how bonds between animals and humans often can’t be broken. Of all the people who refused to evacuate during Hurricane Katrina, she noted, 44% stayed because they didn’t want to leave their animals. Patterson recalled how a little girl she encountered was worried because the girl’s dog had run away. Patterson said she reassured the girl that the dog could be found and taken to the humane society. In the future, Patterson wondered what she’d be able to tell children like this. How can she tell them that every life is valuable, when the community leaders don’t believe it? She encouraged commissioners to find a way to fund HSHV.

Deb Kern, HSHV’s marketing director, said she didn’t envy the board’s position. She’d worked in Ann Arbor for 28 years and loved the city, and had taken a significant pay cut to leave a corporate job and work at HSHV. She’s proud of their work, and of being able to reunite owners with their pets. HSHV provides great customer service, and the staff have answered over 5,000 calls this year from people looking for their lost animals. People know to come to the humane society’s facility – it would be confusing if there were multiple places to look, she said, and it might result in animals being put down because their owners couldn’t reach the pets in time. It’s not cheap to do outreach and advertising, but HSHV does that. They have the highest return-to-owner rate in Michigan, she noted.

Kern recalled being at the meeting when former county administrator Bob Guenzel embraced the idea for a new facility, and she helped lead the $8.5 million capital campaign to fund it. It seems insane to her that after helping HSHV become an award-winning shelter, the county would now pull away from its contract. [.pdf of Kern's full remarks]

Elise Ramsey, an HSHV animal cruelty investigator, said they’ve investigated over 500 cases in the past year, including over 30 cases that have been handled by the prosecutor’s office – all were found guilty. Nearby counties have a lower population yet more animal control officers, she noted. HSHV’s investigators – whose work ranges from investigating dog fights to dealing with wild animals on public and private property – minimize the amount of time that law enforcement must spend on cases, and that saves the county money. The budget decisions aren’t about choosing sides, she said. It’s about creating a safer environment for the community.

Deb Ledford, an HSHV volunteer, told commissioners that people have a special relationship with their animals, and would be willing to pay more in taxes to support HSHV. She urged them to consider a millage to provide additional funding for the shelter.

Anne Alatalo, an HSHV volunteer who also had spoken at an Oct. 13 board working session, read a quote attributed to Gandhi: “The greatness of a nation can be judged by the way its animals are treated.”

Kelly Schwartz, HSHV’s director of volunteers and operational support, said she lives in Pittsfield Township “and I vote.” She criticized the county’s lack of due diligence before making cuts. She noted that the job description for the two animal control officers paid for by the county – at about $180,000 per officer – doesn’t match what those workers actually do. In many cases, they simply pick up dogs and drop them off at the shelter. Picking up 192 stray dogs over a year works out to the county paying about $1,000 per animal. Schwartz expressed frustration at HSHV’s efforts possibly to handle dog licensing that’s now done by the county treasurer. She said HSHV has been told it’s not their purview. Yet HSHV handles dog licensing for Ypsilanti Township, she noted.

Regarding the possibility that the county would issue a request for proposals (RFP) for another agency to provide the state-mandated services that HSHV now does, Schwartz said that HSHV is the only facility in the county that’s licensed by the Dept. of Agriculture. That license requires a set of conditions, such as having a veterinarian on site. It would be a shame if the county didn’t support HSHV’s economies of scale and facility, she concluded.

Funding for Nonprofits: Public Commentary – Housing, Food

Paul Saginaw, co-founder of Zingerman’s and of the nonprofit Food Gatherers, said he appreciated how profoundly difficult the board’s choices are. But the strength of a community is measured by how it cares for its most vulnerable members. Between 2006 to 2008, the number of people needing emergency food assistance increased 138% percent, and those numbers have grown. Since 2008, there’s been a 40% increase in local families needing food stamps. Yet Food Gatherers – which serves a network of food pantries across the county – has seen funding cuts, most recently a 40% reduction in the money it gets from the Federal Emergency Management Agency (FEMA).

Barbara Niess-May, executive director of SafeHouse Center, and Paul Saginaw, co-founder of Zingerman's and of the nonprofit Food Gatherers.

Saginaw noted that Food Gatherers already leverages private resources – from donors, volunteers and other partners – to provide public services that used to be handled by the government. They work creatively and efficiently to fight hunger, and are an excellent steward of their resources. He urged the board at a minimum to maintain the $166,000 annual funding for Food Gatherers, which represents 5% of the nonprofit’s annual operating budget.

Six people spoke in support of Ozone House, a shelter for homeless youth. [The coordinated funding budget approved in June allocated a total of $208,557 for Ozone House programs, including $97,625 from the county.] Lisa Jackson, vice president of the board, noted that the nonprofit is the only one that provides a shelter specifically for homeless youth, and it’s a national model. She pointed to the county board’s budget guidelines, noting that second one states that the county will “support programs that address the basic needs of children and families.” That’s what Ozone House does, she said. The county’s funding is a huge part of this community’s safety net, and she asked that they continue funding this critical need in the community.

Three teens – Eric,  Demoni and Tiffany – gave their perspectives on the need for Ozone House, saying they know youth who are homeless and that it’s hard to know what it would be like if Ozone House wasn’t around. Kids deserve a drug-free, alcohol-free, safe environment where they can study and know that they’re not alone. Colleen O’Brien, Ozone House director of youth development, told the board that these three youth represent thousands of others that Ozone House supports. These youth look up to leaders like the commissioners, she said, and if the board doesn’t prioritize basic needs and public safety, she’s not sure they’ll stay in this community when they become adults. Nicole Brown also supported Ozone House, saying it’s important to show youth that the community cares about them.

Paul Leighton, a SafeHouse Center board member, and SafeHouse executive director Barbara Niess-May both spoke in support of the center, which provides help for victims of domestic violence and sexual assault. [SafeHouse received $96,000 from the county this year, and is budgeted for $48,000 annually in 2012 and 2013.] Leighton, a criminology professor at Eastern Michigan University, described the impact on victims and the services that SafeHouse provides, including a helpline, crisis intervention, counseling and shelter.

Niess-May described SafeHouse as a “community jewel,” noting that the staff of 24 and 150 volunteers serve well over 4,000 women and children each year through the shelter and advocacy work. She reminded the county that SafeHouse took over sexual assault services from the county in 2003, which at the time had cost the county $200,000 each year. She said that law enforcement officers feel comfortable leaving the scene after an incident when they know representatives from SafeHouse are there. The county is a partner, and she thanked commissioners for their continued support.

Jim Wiseman is a volunteer with Interfaith Hospitality Network’s Alpha House, a family homeless shelter. [The coordinated funding provided $92,400 in funding for IHN.] Of the 4,700 people who were homeless in 2010, 1,500 of those were under the age of 18. He described the consequences of homelessness on youth, including hunger, truancy, poor mental and physical health, learning disabilities, depression and anxiety. Thousands of volunteers support Alpha House, but they need the continued support of the county as well. Wiseman noted that he has two dogs and has volunteered at the animal shelter too, but the basic need for helping the homeless population is greater.

Nicole Adelman, executive director of Interfaith Hospitality Network, said the county has been a true partner, and IHN still needs their support. Many agencies are working together to increase collaboration, she said, and they all have success stories. She urged commissioners to support nonprofits to the greatest extent possible, so the successes could continue.

Michael Appel of Avalon Housing.

Michael Appel, associate director of Avalon Housing, said he deeply appreciated the county’s support through coordinated funding. [Avalon is budgeted for $140,974 in coordinated funding.] Avalon’s Shelter Plus Care program illustrates how seriously they take the county’s charge to leverage funding and be responsible stewards of public money, he said. Every year, Avalon applies with other local agencies for federal funding through the U.S. Dept. of Housing and Urban Development (HUD) that helps move people off the streets and into permanent housing. HUD requires that its housing subsidy be matched with supportive services that Avalon provides – the county helps pay for those services, Appel said. He urged commissioners to continue their support.

Kristin Klevering of SOS Community Services thanked commissioners for their support. [SOS receives $90,859 from the county's portion of coordinated funding, plus $124,577 from other coordinated funding sources.] SOS recently has become the single point-of-entry for people seeking housing assistance in the county. [Its housing access phone number is 734-961-1999.] For its first week in this role, SOS fielded 203 calls for help with housing, including people facing eviction and homeless families seeking permanent housing. Klevering said their staff is booked steadily because of the great need. The single point-of-entry makes it much easier for people who need help, but the staff wouldn’t be able to do it without the county’s support.

Ellen Schulmeister, executive director of the Shelter Association of Washtenaw County, described the county as a partner through successful and difficult times – and this is one of the most difficult times they’ve faced. She urged commissioners to pass a resolution that articulates their commitment to human services and outside agencies. The resolution would commit to reinstating funds as soon as revenues permit, and would make that reinstatement of funds the highest priority when revenues recover. Schulmeister also asked commissioners to use their political positions to speak out on behalf of the most vulnerable citizens of the county, and to lobby their friends and professional networks to fundraise and make personal donations to local nonprofits.

Julie Steiner, executive director of the Washtenaw Housing Alliance, told commissioners she’d just been to the Michigan Homeless Summit in Lansing, where the head of the state’s Dept. of Human Services reported that Michigan’s income level used to be 14th nationwide, but is now 31st. Her organization can see the impact of that income loss throughout the county. Steiner reported some data from the first week of calls to the SOS housing hotline, and highlighted the fact that 31% of the 203 people who called had no income at all.

The question is how can those folks be helped, and the answer isn’t coming from Lansing or Washington, Steiner said. She noted that the state recently imposed an asset test for people receiving food stamps, requiring them to have less than $5,000 in assets – including their cars, which are the way most people get to their minimum-wage jobs, she observed. This came about two weeks after recipients had been told it wouldn’t happen. “The war on the poor is continuing,” Steiner said, adding that she deeply appreciated all that the county does to support human services.

Funding for Nonprofits: Public Commentary – Literacy

Three people urged continued support for the Family Learning Institute, which provides tutoring to elementary schools students in math and reading.

Dave Knight said he’s been a volunteer reading coach since 2005. “I know that what we do works,” he said. It’s a lifelong skill with a tangible return, and is worth the county’s support. Dave Morris, a math tutor for FLI, described his work with a fourth grader – a smart girl, the daughter of recent immigrants, who’s having trouble in school and is at a critical turning point in deciding that she’s not academic. When she realizes that she can understand, she’s more likely to choose a different path. Volunteers at FLI can make a difference in the lives of students like her, and it’a a value to the community, he said.

Jeff Harrold, FLI’s board chair and an academic standards advisor at the University of Michigan, told commissioners that he’s worked with some of the brightest students in the world, and he’s also seen some people who could have gone down that academic path, but who ended up in jail. The thing that connects them is literacy. FLI provides free supplemental tutoring in math and reading, and their work directly addresses the achievement gap, he said. They operate on a shoestring and can’t afford to lose funding. In a knowledge economy, you have to know how to read. FLI teaches students to read, he concluded, and ”we hope you’ll help us continue to do that.”

Funding for Nonprofits: Public Commentary – General Human Services

Alan Haber said he appreciated the incredible volunteerism that’s on display, and he hopes the county can support all of these organizations. There’s a reason why the county doesn’t have enough money, he said, citing the trillions of dollars that the federal government has spent on war in the last decade, and the $1.4 billion in federal taxes from Michigan that pay for nuclear weapons. Commissioners need to work to change priorities of the country, and to encourage innovative approaches like Camp Take Notice. Haber cited the Occupy Wall Street demonstrations of the “99% against the 1%,” and said there needs to be some kind of redistribution of wealth. Local is part of the global, he noted, and he hoped that commissioners would see the bigger picture. They really need to act on a political level, he said, and to raise their voices about keeping more money in Michigan.

Max Heinrich told commissioners that they have a choice. They can accept the budget cuts that are imposed and make decisions in the least painful way, or they can ask how to be creative and find funding to do the things they need to do. If they simply say there’s not enough money, “the county is going to go down,” he said. He called on the board to identify what matters to them, then find a way to fund it.

Saying that her heart hurts, Lily Au told the board that they need to see the bigger picture. She praised commissioner Ronnie Peterson for speaking out against the coordinated funding process. [Peterson has repeatedly raised concerns about the process, but voted along with all other commissioners to approve the approach at the board's Nov. 3, 2010 meeting, and subsequently voted to approve the recommended allocations at the board's June 1, 2011 meeting.] Au criticized the overhead costs at United Way, one of the coordinated funding partners. She said she wasn’t criticizing people, just the policy. People are suffering and need as much support as possible, she said.

Thomas Partridge called for support of affordable housing, transportation, health care and education for all.

Funding for Nonprofits:  Commissioner Discussion

Yousef Rabhi began by thanking everyone for coming, saying it’s refreshing to see people take an active part in the democratic process. He especially thanked Alan Haber and Max Heinrich for their words. Local government is being squeezed from all sides, he said, and now the state is talking about eliminating the ability of local governments to raise revenues via the personal property tax. Rabhi urged everyone to contact their state legislators and tell them that eliminating the PPT would place a significant burden on the local community. He said he’s especially concerned about the proposed $128,000 annual cut to coordinated funding. The process works well to distribute funds from the county, city of Ann Arbor and other groups, he said.

Regarding the humane society, Rabhi said he loves animals and knows that other commissioners do too. No one denies that the county has a mandate to provide certain services, but it’s not yet clear to him exactly what those mandated services are. The county needs to identify what services are mandated, how much it costs to provide those mandated services, and how much additional funding they can allocate to the humane society. He doesn’t think it will be at the same level in the past, but there are valuable programs at the humane society that are important to support.

Leah Gunn remembered when there was no decent homeless shelter, and the county took a proactive role in creating the Delonis Center, which is now a national model, she said. She remembered when Food Gatherers didn’t exist, and commended Paul Saginaw for the great work that he and others have done. She noted that SafeHouse Center is located in a county-owned building that’s paid for by a county millage.

The county has been extremely generous, Gunn said. But the county’s main revenues come from property taxes, and those revenues are decreasing. If the state eliminates the personal property tax, it would be devastating, she said – the county alone would lose $5 million in annual revenue, and all local governments in the county would lose a total of $43 million. State revenue sharing is also going to run out in 2013, she noted. Gunn urged people to dig into their pockets and donate to the nonprofits that do such good work.

From left: Commissioners Rolland Sizemore, Leah Gunn, and Conan Smith.

Conan Smith also thanked the people who attended the meeting, and those who had advocated for finding additional revenue. He believes in that, too. Much of the spending at higher levels of government is wrong, and would be better spent locally, he said.

Smith thanked Rabhi for contextualizing the humane society situation. He noted that the expenses related to animal cruelty investigations can be charged back to the offenders as restitution. [At that, some people in the audience called out that it's not possible – many offenders are unable to pay.] He agreed it was time to revisit the issue of dog licenses, which are currently collected by the county treasurer’s office. HSHV has previously proposed taking over that service.

Smith said there’s another month to find alternatives, and he noted that he and other county officials will be meeting with HSHV leaders next week. The letter that the county received from HSHV’s board president, Michael Walsh – which stated that HSHV can’t afford to offer the same services at a reduced rate – is what prompted some commissioners to talk about looking for other providers, Smith said. [.pdf of Walsh's letter]

In part, Walsh’s letter states:

Should the County be unable or unwilling to find the additional resources that will allow the HSHV to continue to provide these Animal Control Services, given our long-standing relationship, we are willing to work with you on a short-term basis to provide an orderly transition to either another service provider or to a County-run shelter. This could be accomplished through a limited-term extension of the existing contract at the 2011 funding level.

The mandate doesn’t go away, Smith noted, even if HSHV decides it can’t provide the services. But he hoped the county can work with HSHV to meet that mandated obligation.

The commissioners put a priority on protecting families and children – problems of homelessness and hunger are growing, Smith said. “We are in a dire situation.” He’s highly supportive of exploring a millage to fund human services, as other commissioners have proposed – he believes voters would support that too. Smith concluded by saying that the board will be discussing the budget for several more weeks, and he encouraged people to weigh in. “Your words are our community wisdom,” he said. “Know that everyone on the board will take those to heart.”

Rob Turner noted at the beginning of this year, the board was looking at a $20 million deficit for 2012-2013. In April, when the county equalization report showed that revenues didn’t drop as much as expected, that projected deficit was revised to $17.5 million. To deal with it, the board prioritized, Turner explained, and put an emphasis on safety net services. They also directed the administration to streamline and consolidate, he noted – that led to three departments merging into the office of community and economic development. [That consolidation will take effect in January 2012.]

The staff did a good job at restructuring, and found $8 million in savings, Turner said. Employees gave concessions totaling another $8 million. Yet even with all of this, the county will need to tap its general fund balance, he said, bringing the fund balance to 13% of the total general fund budget – at the low end of the recommended level.

Repealing the personal property tax would hit the county hard, Turner said, resulting in another 5-6% cut to the general fund budget and lowering the fund balance to about 8%. Everyone needs to tell their state legislators that the PPT can’t be cut without first identifying replacement revenues. Turner said he supported a human services millage, but he noted that voters had rejected a countywide schools millage just last year.

There are people who are unemployed now who’ve never been unemployed before, Turner said. No one on the board wants to cut the funding for nonprofits, but that’s the hand they’re forced to play. If revenues increase, commissioners would like to make the funding whole again, but right now, the money’s just not there, he said.

Wes Prater observed that the county has been very generous when times were good. If the personal property tax is eliminated, these organizations will face even deeper cuts, he said. There are no secrets about the budget situation, Prater said – all of the information is available online. He hoped the humane society understood that there would be cuts, and that the nonprofit needs to think about fundraising from its volunteers. It’ll take more revenues to support those services, he said. “I’m sorry to have to say those words, but they’re true.”

Ronnie Peterson noted that the board hasn’t yet adopted the budget, so it’s premature to state that certain items will be cut – the board hasn’t voted on that yet, he said. He told the audience that he appreciated their advocacy, regardless of whether he agreed with their positions. Personally, Peterson said he’s not interested in contracting with an alternative agency to the humane society, and he asked the board chair, Conan Smith, to clarify the status of HSHV.

Smith reviewed that county administrator Verna McDaniel had presented the budget to the board several weeks ago. It was developed based on the board’s direction to her, he said, and includes recommendations to cut outside agency funding. In the case of the humane society, the recommendation is for $250,000 per year, down from $500,000. They haven’t taken a vote on the budget, Smith said, and they are now deliberating it. But whatever decisions they make have to result in a balanced budget, he noted. They can make whatever adjustments they see fit, but the result must be bottom-line neutral.

Peterson asked whether the board was considering an alternative provider for animal control services, rather than HSHV. Smith replied that HSHV has indicated it can’t provide the services at the recommended funding level of $250,000 – that message was in the letter from HSHV board president Michael Walsh. Smith said he appreciated that communication, and HSHV’s offer to serve in a transitional role if the county needs to find another provider.

The county’s current contract with HSHV ends on Dec. 31, and there’s only a limited time to reach a solution, Smith said. No one anticipated that the county would end its relationship with HSHV, Smith said, and there’s wide misunderstanding about what services are mandated. Perhaps a new contract will eliminate non-mandated services, like care for cats, Smith said. There are also possible revenues strategies that can be explored, he said. “By all means, the door is open.”

Peterson then raised the issue of coordinated funding, which he has criticized in the past. Addressing poverty must be a discussion among policy-makers, he said, not relegated to a county department. [Coordinated funding is overseen by the joint county/city of Ann Arbor office of community development.] And it shouldn’t be limited to just county commissioners, he said – there are two major public universities in this area, as well as several private ones. Those institutions have resources, he said, and should be concerned about quality of life in this community. “We cannot do it by ourselves,” Peterson said, and it’s unfair that nonprofits should have to fight over funding.

As he has in the past, Rolland Sizemore Jr. called for a working session to discuss all potential new millages, including those for road repair and to fund human services. He recommended that the public attend those working sessions to give their views about the millages – he believes raising revenues is the only way out of the current budget situation. He also called for more information about the budget, including administrative salaries.

Funding for Nonprofits: More Funds for Homeless Shelter

Yousef Rabhi indicated that priorities for him in this budget are coordinated funding and the homeless shelter. Given the increased homelessness in this community, he thought the county should step up funding for the shelter. The county’s membership in the Michigan Association of Counties (MAC) has been useful in the past, he said, but it’s time to prioritize the homeless over that. He then moved to eliminate $26,230 in annual dues to the Michigan Association of Counties, and transfer those funds to the Delonis Center, the homeless shelter at 312 W. Huron. Over the two-year budget period, a total of $52,460 would be added to the Delonis Center funding.

Chuck Warpehoski of the Interfaith Council for Peace & Justice talks with Julie Steiner of the Washtenaw Housing Alliance.

Conan Smith supported the motion, saying that the county has ample representation in Lansing through its lobbyist, Governmental Consultant Services Inc. [Later in the meeting, the board voted to give final approval to a two-year contract with GCSI at at $54,250 per year. Kirk Profit is the primary GCSI lobbyist dealing with the county.]

Dan Smith said that as a new commissioner elected in November 2010, he had gone through a training session in December – MAC had been one of the organizers, and it had been a valuable experience. However, after he was sworn in the county staff have provided even more orientation, so he was comfortable dropping MAC membership at this time. He hoped that when the board reaffirms the 2013 budget in a year, they’ll revisit membership for MAC and the Southeast Michigan Council of Governments (SEMCOG), if the board decides to drop SEMCOG too. [The board will adopt a two-year budget for 2012 and 2013, but then at the end of 2012 they will make readjustments and vote to reaffirm the 2013 budget.]

Rolland Sizemore Jr. said he’d support Rabhi’s motion, but he wondered why they were voting on one item now, and not waiting until they’d made decisions about all changes.

Outcome: The board unanimously voted to amend the proposed budget by eliminating its membership in the Michigan Association of Counties, and shifting its $26,230 in annual dues for 2012 and 2013 to the Delonis Center homeless shelter. The budget itself will receive a vote later this year. 

2012-2013 Budget: Continued Discussion

Following the discussion on outside agency funding and a vote on shifting funds to the Delonis Center, the board discussed the 2012-2013 budget more broadly.

They initially discussed how to proceed with making changes to the budget, without handling it piecemeal. Rolland Sizemore Jr. noted that it’s getting to be “crunch time” – there are only three more regular board meetings scheduled before the end of the year, and if they want to give final approval at the Nov. 16 meeting, as planned, they’d need to take an initial vote at their next meeting, on Nov. 2. He suggested that commissioners email any changes they had to the administrator, who could then forward all proposed changes to the entire board.

Wes Prater noted that in the list of eight revenue categories for the general fund, only two categories – fees & services, and fines & forfeitures – show an increase from 2011 to 2012. He expressed frustration that 16 departments showed increases in their expenditures compared to 2011. The line item for information technology, for example, grows from $5.28 million in 2011 to $6.49 million in 2012. The budget for the board of commissioners also is increasing, he noted, rising from $496,587 this year to $505,664 in 2012. This can’t continue, he said – they need to get expenses under control. ”I think there’s some money there we can find [to cut], and I want to try to find it.”

County administrator Verna McDaniel responded, saying that the departments aren’t just being given money to go spend indiscriminately. The increases relate primarily to increased personnel costs, including health insurance, as well as to higher amounts for each department’s cost allocation plan (CAP).  [The CAP sets a charge that’s levied on each county unit and designed to cover general costs like administration, technology, building use, and insurance, among other things. It’s intended to reflect the county’s true cost of doing business.]

McDaniel said her staff would write up a report explaining these increases, and distribute it to commissioners.

It would be great to get that information, Prater replied, but the bottom line is that there are still cuts to be made.

Commissioner Dan Smith talks with Kelly Belknap, interim deputy county administrator.

Dan Smith recalled the process leading up to this point, beginning with board retreats early in the year, and continuing with extra working sessions in the summer devoted to the budget. There are mandated services that must be funded, and that leaves the county in a difficult situation. The board had a healthy debate in developing its budget priorities, Smith noted – all of this was conducted in public. It’s been a long process and these aren’t easy decisions, he said, but they must work with the money they have to produce a balanced budget. That’s the law.

In response to Prater’s concern about the board of commissioners budget, Smith said it’s a topic of an upcoming working session, and they can discuss it in more detail then.

Leah Gunn noted that the board has discussed this already. She referred to the budget “puzzle” that McDaniel had presented earlier this year, which sought to overcome a projected $17.5 million deficit with roughly $8 million in concessions from employees, $8 million in departmental restructuring and cuts, about $1 million in cuts to outside agencies, and another $1 million in additional revenues. But even though some items have been cut – like health care – that doesn’t mean the total expenses will decrease, she said. It just means the increases won’t be as high. The bottom line is that they have a balanced budget, she concluded, and an acceptable fund balance.

There was some discussion about whether to address some of these issues at an upcoming working session. Yousef Rabhi, who chairs the working sessions, noted that there’s not much time between now and the point of passing the budget – the goal is to take a final budget vote at the Nov. 16 meeting.

Ronnie Peterson responded that the board can take until Dec. 31 to pass the budget, and they should take as much time as necessary. The fact that they reallocated funds earlier in the meeting – from the Michigan Association of Counties to the homeless shelter – indicates that there’s flexibility in the budget, he said. He’s also interested in reconsidering the proposed elimination of SEMCOG membership. They can look at the entire budget to find funds, he said, and it’s their responsibility to do so. If a commissioner just wants to rubber stamp the budget, Peterson said, then they shouldn’t run for office. They should have been looking more closely at these decisions months ago, he said.

Gunn said she found it difficult to respond to Peterson. She’s spent a solid year on this budget, and it’s been gone over with a fine-tooth comb. McDaniel and her staff have done an excellent job in presenting a balanced budget, and Gunn said she has no major problems with it. Her main issue is that the county is spending millions of dollars to subsidize police services for the townships, Gunn said, but she’s not going to argue about that because she doesn’t have the votes to change it. She’d like to see the board pass this budget and move on.

Conan Smith noted that the board has had this budget for a long time. [McDaniel formally presented it at the board's Sept. 21 meeting.] They’ve delved into it at previous meetings and working sessions throughout the year, and it’s an excellent document with a tremendous amount of information, he said. Smith said you can read it, as he has, and understand it with enough clarity to be confident in your decisions. “It’s a boring read,” he conceded, but the information is there.

Using the IT department as an example, Smith noted that a detailed explanation in the budget for that department indicates that much of the increased expenses relate to the administration’s decision to “unleash the CAP.” That’s reflected in the line item for internal service charges, which jumps from $436,343 in 2011 to $1.586 million in 2012.

Smith agreed with Gunn in praising McDaniel and her staff for presenting a balanced budget. He urged the board not to dwell on smaller items – like the board’s own line item – but to look for larger structural reforms that could yield greater savings. He believes the board should pass the budget by mid-November, or by the first meeting in December at the latest.

Prater replied that he wasn’t saying it’s a bad budget, but simply that there’s room for more cuts. It’s possible for departments to cheat when reporting their projected expenses, he noted. Every expense should be absolutely necessary, and he’s not convinced that’s the case. If there are unnecessary expenses in the budget, he’ll vote against it.

Rolland Sizemore Jr. said there are a lot of questions for which he needs answers – including what services are actually mandated by the state for animal control. He also wants comparisons with budgets from other counties, noting that he’s repeatedly asked for this information in the past. There’s also the question about whether cutting ties with SEMCOG will jeopardize the county’s ability to secure certain types of federal grants. Until he sees answers, Sizemore said he won’t approve the budget.

Outcome: The board voted unanimously to move this budget discussion item to the agenda of their next meeting, on Nov. 2.

Other Business: Sylvan Bonds, Lobbyist, Salem Historic District

Aside from budget issues, the board voted on several items during the Oct. 19 meeting that were not discussed, but that had received initial votes at their Oct. 5 meeting. Here are the highlights.

Other Business: Lansing Lobbyist

Commissioners were asked to give final approval to renew a two-year contract with Governmental Consultant Services Inc., a Lansing-based lobbying firm. The contract would run from Nov. 1, 2011 through Oct. 31, 2013 at $54,250 per year. That’s the same rate that the county currently pays, and is already built into the proposed 2012-2013 budget. [.pdf of draft contract]

GCSI lobbyist Kirk Profit and his colleagues most recently gave a formal update to the board at their March 2, 2011 meeting. GCSI provides lobbying services at the state level for several local units of government, including the city of Ann Arbor.

Outcome: The board voted unanimously to approve the two-year contract with GCSI.

Other Business: Salem Township Historic District

Commissioners were asked to appoint a committee to study the creation of a historic district in Salem Township. The district would be at 7991 North Territorial Road, where the Jarvis Stone School and the Dickerson Barn are located.

Terry Cwik, president of the Salem Area Historical Society, had attended the board’s Oct. 5 meeting and spoke during public commentary, urging commissioners to approve the study committee. The one-room schoolhouse is owned by the historical society. It was built in 1857 and in continuous use until 1967. The historical society now uses the school as its headquarters. It would be the second historic district in Salem Township – the first one is Conant Farm on Napier Road.

Cwik is one of the members of the study committee appointed on Wednesday. Other members are: Jean Bemish, Sue DiMilia, Helen Gierman, Jane Griffith, Marie Turppa, and Marcia Van Fossen and Nancy Snyder. The appointments were recommended by the county Historic District Commission.

Outcome: Commissioners voted unanimously to create the study committee for an historic district at 7991 North Territorial Road in Salem Township.

Other Business: Sylvan Township Bond Deal

On the agenda was a resolution giving final approval to a contract with Sylvan Township related to the township’s bond repayment schedule. The township has been struggling to make payments on $12.5 million in bonds issued in 2001 to build a water and wastewater treatment plant intended to serve future development. The township expected that connection fees would cover the bond payments, but the development never materialized.

Now Sylvan Township – located west of Ann Arbor, near Chelsea – is facing default on its bond payment in May 2012, which the county will need to cover. The township board voted to put a proposal for a 4.75 mill, 20-year tax on the Nov. 8, 2011 ballot for township residents, with proceeds to repay the cost of the bond payments that would be made by the county.

The millage proceeds alone would not be sufficient to cover the entire cost of the bond payments, however, and the county would need to tap its capital reserves as well. After the bond is repaid, the millage proceeds would continue to be used to repay the county to cover the amount used from its capital reserves, as well as interest. The millage proceeds would also be used to repay the county treasurer’s office, which advanced about $1.2 million to the township in 2007 and 2008 related to this project.

The contract between the county and township is contingent on voters passing the 4.75 mill tax. If the millage fails and the township defaults, the county could file suit against the township for breach of contract in failing to meet its debt repayment obligation, according to a staff memo. The county would also need to make the bond payments, to avoid having its bond rating negatively affected.

Outcome: Commissioners voted unanimously to approve the bond deal with Sylvan Township.

Other Business: Drain Projects

Drain projects in Ann Arbor – including two related to the East Stadium bridge reconstruction project – were on the agenda for final approval at the board’s Oct. 19 meeting.

The county water resources commissioner’s office was asked by the city of Ann Arbor to design and build stormwater control measures for the bridges along Stadium Boulevard between Kipke and South Industrial, according to a staff memo. The Allen Creek East Stadium bridges drain project and the Malletts Creek East Stadium bridges drain project will require in total no more than $415,000 for bonds issued with the county’s full faith and credit. The bonds will be repaid through special assessments on property in the drain district for this project.

Separately, county commissioners gave initial approval to an Allen Creek drain project in Ann Arbor. The project involves installing an underground infiltration system on the west side of the Veterans Park Ice Arena and putting in a rain garden near the entrance of the ice arena on the east side of the building. Rain gardens will also be installed next to Fire Station #3 at 2130 Jackson Ave., and trees will be planted in the city right-of-way throughout neighborhoods on the city’s west side.

The Allen Creek project had been previously approved by the board at its July 2011 meeting, as one of several drain projects authorized at that time. The overall cost of the projects approved then is now expected to be $1.45 million less than originally estimated. However, the $330,000 approved for the Allen Creek project turned out to be an underestimate – that project is now expected to cost up to an additional $65,000. That $65,000 – covered by bonds issued with the county’s full faith and credit – was the amount commissioners were asked to approve at Wednesday’s meeting.

Outcome: The board unanimously approved the drain projects for Allen Creek and East Stadium bridges.

Misc. Commentary, Communications

During the meeting there were multiple opportunities for public commentary, and for communications from the administration and commissioners.

Misc. Comm/Comm: Public Commentary

Douglas Smith told commissioners he was submitting an appeal for a Freedom of Information Act request that had been denied by the county. He described an incident at Ypsilanti Township hall, where a court employee had reported that $20 was stolen out of her car in the parking lot. She had requested video surveillance footage, but instead of providing it to her, the building’s security officer had emailed the sheriff’s office, Smith said. That apparently prompted an internal investigation, he said, involving a high-ranking member of the sheriff’s office.

Several FOIA requests have since been made, Smith said, but all have been denied. One of the reasons given is that the matter is part of a personnel file. But there can be a balance test applied, Smith said. He indicated there’s a stronger public interest in ensuring there’s no coverup by law enforcement, which outweighs the interest of an employee’s privacy. He asked the board to reconsider his FOIA request and release the surveillance video.

In commissioner follow-up to public commentary, Wes Prater asked Curtis Hedger – the county’s corporation counsel – to explain how the appeal process is handled. Hedger noted that for FOIA appeals, there’s a shorter time to respond, and that’s why the law gives the option of having the head of a public body – in this case, the county administrator – to handle it. Otherwise, the board would need to call a special meeting each time there’s an appeal, he said. He noted that the county administrator doesn’t just rubber stamp the decision, adding that former county administrator Bob Guenzel had overturned decisions several times on appeal. [Guenzel, who retired in May of 2010, is an attorney who had served as the county's corporation counsel before becoming county administrator.]

In addition to the commentary reported above, Thomas Partridge spoke during three other opportunities for public commentary at Wednesday’s meeting. He criticized the commissioners for holding discussions that sounded like corporate insiders talking to each other, rather than talking to the public. The county should find more ways to raise revenue, such as increasing its grant-writing efforts. They shouldn’t neglect animals, but there are families, children and senior citizens who are also abused and neglected, and who need the county’s help. He also advocated for the recall of Republicans and Republican-acting Democrats, and urged the county to provide affordable housing, transportation, education and health care for all residents – and not to outsource those services.

Misc. Comm/Comm: Communications from Commissioners

Rob Turner gave a liaison report from the Washtenaw County road commission. Road commissioners are concerned that the county is considering dropping its membership in the Southeast Michigan Council of Governments (SEMCOG), and urged the board not to cut that funding, Turner said. The road commission benefits directly from SEMCOG, he said – most of the $1.355 million in benefits that were outlined in a memo to the board from SEMCOG relate to road commission work. [.pdf of SEMCOG memo] Turner reported that the road commission might be willing to pay part of the county’s $125,000 in annual membership dues, and road commissioners are interested in meeting with the county administration to discuss that possibility.

Turner also reported that the Literacy Coalition of Washtenaw County is in a funding crisis. [See Chronicle coverage: "Literacy Coalition Faces Uncertain Future"] The group is asking its member organizations – including the county – to pick up some of the coalition’s work, such as administrative tasks like answering emails and maintaining the coalition website. There was no further discussion about this among commissioners.

Present: Felicia Brabec, Leah Gunn, Ronnie Peterson, Alicia Ping, Wes Prater, Yousef Rabhi, Rolland Sizemore Jr., Conan Smith, Dan Smith, Rob Turner.

Absent: Barbara Bergman.

Next regular board meeting: Wednesday, Nov. 2, 2011 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. [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.

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Earlier in the meeting, more than two dozen people spoke during public commentary to advocate for a variety of nonprofits that are funded by the county. The 2012-2013 proposed budget calls for $1.2 million in cuts to outside agencies, including several nonprofit groups. [.pdf list of all proposed 2012-2013 outside agency funding] Many supporters spoke on behalf of the Humane Society of Huron Valley (HSHV), which faces a cut from $500,000 in 2011 to $250,000 in 2012-2013. Prior to the meeting, several HSHV supporters picketed in the rain in front of the county administration building, many of them with dogs. Advocates for HSHV had also turned out for an Oct. 13 working session, when commissioners discussed funding for outside agencies.

Final decisions about these and other items in the budget haven’t yet been settled. The board must pass a budget by the end of the year, but has only three more regular meetings scheduled for the year. The budget must first be voted on by the Ways & Means Committee – a committee of the whole board – then voted on a final time at a regular board meeting.

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