It’s a standard practice to help the local jurisdictions manage their cash flow. The estimated amount of delinquent taxes is lower than in recent years, possibly reflecting a recovering economy. Last year, the board authorized borrowing up to $40 million. [.pdf of delinquent tax resolution]

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

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

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

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

This year, the estimated amount of delinquent taxes is about $25 million, though McClary told commissioners on Feb. 6 that she expects the amount to be lower than that. The exact amount won’t be determined until the middle or end of March. The notes will likely be issued in April or May, she said. McClary also pointed out that the resolution limits the amount that can be borrowed to $40 million, down from a limit of $45 million last year.

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

From left: Greg Dill, Washtenaw County sheriff Jerry Clayton, and Washtenaw County treasurer Catherine McClary. (Photos by the writer.)

On a 6-1 vote – over dissent by Republican Dan Smith – the county board passed a resolution directing the administration to negotiate new four-year contracts “to protect and extend each bargaining unit’s union security provisions.” The resolution also directs negotiations for a separate letter of understanding to cover a 10-year period. The letter would relate to agency fees paid by non-union members based on the idea that they benefit from the union’s representation of their interests during collective bargaining.

Unions represent 85% of the 1,321 employees in Washtenaw County government.

The resolution was brought forward by Andy LaBarre (D-District 7), one of three Ann Arbor commissioners on the nine-member board. Two commissioners – Ronnie Peterson (D-District 6) and Alicia Ping (R-District 3) – were absent.

Deliberations were relatively brief. Dan Smith, who said he found some of the language in the resolution offensive, also pressed for estimates on possible legal expenses, if the county is sued over these new labor agreements. Curtis Hedger, the county’s corporation counsel, was reluctant to speculate, indicating there are still too many unknowns. Diane Heidt, the county’s human resources and labor relations director, told commissioners that the 10-year letter of understanding would have a strong indemnification clause. The union would indemnify the employer for any legal challenges relative to the right-to-work agency shop issue.

The lengthy closed session at the end of the meeting reflected some urgency in negotiations, which must be completed before the new law takes effect in March.

Also at the Feb. 6 meeting, commissioners gave initial authorization to county treasurer Catherine McClary to borrow up to $40 million against the amount of delinquent property taxes in all of the county’s 80 taxing jurisdictions. It’s a standard practice to help the local jurisdictions manage their cash flow. The estimated amount of delinquent taxes is lower than in recent years, possibly reflecting a recovering economy.

McClary also gave the board a year-end report for 2012. Her office brought in $9.96 million during the year from the following sources: delinquent taxes and fees ($5.046 million), accommodation tax ($4.067 million), investment earnings ($755,681), dog licenses ($59,748) and tax searches ($31,760). McClary reported that the county’s investment portfolio totaled $156.08 million at the end of 2012. The non-cash portion of that amount is $147.855 million, which brought in an average weighted yield of 0.456%.

In other action, the board voted to amend an interlocal agreement that will create the Southeast Michigan Regional Energy Office Community Alliance. The new alliance – affiliated with the Michigan Suburbs Alliance, led by county commissioner Conan Smith – is being formed to set up a Property Assessed Clean Energy (PACE) program. The community alliance includes six partners: Washtenaw County, and the cities of Lathrup Village (in Oakland County); Sterling Heights and Roseville (in Macomb County); and Lincoln Park and Southgate (in Wayne County). No other communities in Washtenaw County are part of this alliance. The city of Ann Arbor has already set up its own PACE program.

Also during the Feb. 6 meeting, Yousef Rabhi (D-District 8) reported that he was working with community members and human services providers to establish a Washtenaw County ID card. It would provide a way for residents who don’t have a driver’s license or other photo ID to access services that require such an identification card, such as opening a bank account.

Felicia Brabec reported from the Sustainable Revenue for Supportive Housing Services Task Force, on which she serves. The group is looking at the possibility of an endowment campaign. It’s estimated that about $17 million would be needed “so it’s a big undertaking for us,” she said. That amount would support an additional 116 units of supportive housing throughout the county.

Right-to-Work Response

Washtenaw County commissioners considered a resolution related to Michigan’s new right-to-work legislation – including direction to renegotiate union contracts. The resolution was brought forward by Andy LaBarre (D-District 7), one of three Ann Arbor commissioners on the nine-member board. [.pdf of LaBarre's resolution]

From left: Washtenaw County sheriff Jerry Clayton and county commissioner Andy LaBarre (D-District 7) of Ann Arbor.

In addition to condemning the right-to-work law and urging the state legislature to pass SB 95 and SB 96 – bills that would repeal the law – LaBarre’s resolution also “directs the county administrator and the director of human resources to engage in expedited negotiations, as requested by the unions, with the goal of reaching four (4) year agreements to protect and extend each bargaining unit’s union security provisions, as well as enter into a letter of understanding separate from the existing collective bargaining agreements for a period of ten (10) years.” The letter would relate to agency fees paid by non-union members based on the idea that they benefit from the union’s representation of their interests during collective bargaining.

This is the same approach recently authorized by the Ann Arbor Transportation Authority’s board at its Jan. 17, 2013 meeting. [.pdf of AATA's letter of understanding. Also see Chronicle coverage: "AATA OK's Labor, Agency Fee Accords"]

LaBarre, who took office in early January, had previously indicated his interest in bringing forward a resolution opposing the right-to-work law. As chair of the board’s working sessions, he led a meeting on Jan. 3 with a lengthy discussion of that issue. [Chronicle coverage: "County Board Weighs Right-to-Work Response"]

The controversial right-to-work law was passed late last year by the Republican-controlled House and Senate, and signed by Republican Gov. Rick Snyder. The law, which takes effect in March, will make it illegal to require employees to support unions financially as a condition of their employment. It’s viewed by Democrats as a way to undercut support for labor organizations that have historically backed the Democratic Party. On the Washtenaw County board of commissioners, seven of the nine commissioners are Democrats, including LaBarre.

Unions represent 85% of the 1,321 employees in Washtenaw County government.

At the Feb. 6 meeting, Dan Smith asked that this item be pulled out from the consent agenda for separate consideration.

Right-to-Work Response: Public Commentary

One person – George Lawrence of Whitmore Lake – addressed the board during public commentary about this issue. He said he had been a union member for a long time, and had been forced to pay dues that went to a political party that he didn’t agree with all the time. That was all he wanted to say, Lawrence told commissioners. He also pointed out that the board had forgotten to say the Pledge of Allegiance at the start of their meeting.

Yousef Rabhi, chair of the board, responded to Lawrence’s comment about the pledge, noting that it is made at the start of the regular board meeting, which is held immediately following the ways & means committee meeting. Lawrence had made his public commentary during the ways & means committee meeting.

Right-to-Work Response: Board Discussion

LaBarre began the discussion by saying the resolution was his best attempt to confront this issue “that’s been put upon us.” He felt it was worthy of discussion and debate, but hoped the board would pass it and find some tangible benefits from it.

Washtenaw County commissioner Dan Smith (R-District 2, standing) with Curtis Hedger, the county’s corporation counsel.

Dan Smith asked Curtis Hedger, the county’s corporation counsel, to comment on the legality of the 10-year letter of understanding.

“I won’t comment on that tonight,” Hedger replied. If the board as a whole wants him to, Hedger said he’d be happy to look at the issue. There are a lot of areas that will be scrutinized about the state’s right-to-work law, he said, but he didn’t have an opinion on the issue that Smith raised right now.

Smith then asked Hedger what the cost might be if the county’s actions are challenged in court. If the board passes this resolution, Smith wondered what would happen if someone finds the 10-year letter of understanding or the new four-year union agreement illegal and sues the county. What would it cost to defend that? Would it be in the range of $50,000 or $100,000 or $1 million?

That’s hard to say, Hedger replied, because it would depend on the tenor of the lawsuit or how aggressively someone decided to pursue the case. He didn’t feel comfortable hazarding a guess. In cases that are more of a legal question, each side briefs the issue and it goes right to court, he explained. If the case doesn’t get appealed, it could be fairly inexpensive, he said. But if it’s a more complicated case that goes all the way to the Supreme Court, that could cost significantly more.

Hedger noted that lawsuits have already been filed in connection with the right-to-work law, and that Gov. Rick Snyder has asked the Michigan Supreme Court to get involved. So there might be answers fairly quickly on a lot of these issues, he said.

Smith suggested looking at a worst case scenario, with a lawsuit going all the way to the Michigan Supreme Court, against which the county must defend itself. What might the cost be for that?

Hedger again said he couldn’t speculate. It might be only $10,000 if only briefs are filed. When Smith expressed surprise at that amount, Hedger said it’s less costly since there would be no discovery phase in this situation. “This is just a legal issue, so it’s going to be in the nature of a declaratory judgment, I believe.” A declaratory judgment would simply state whether the legislation is legal. The biggest expense in any litigation is during the discovery phase, Hedger said.

Hedger added that if the case went all the way to the state Supreme Court, then it would likely be more than $10,000 but probably less than $100,000. He restated his opinion that it was “almost impossible” to try to guess. Smith summarized Hedger’s position by saying that the county is looking at an “unknown cost” to defend this. Hedger agreed, saying it would be true of any litigation that was speculative.

Diane Heidt, the county’s human resources and labor relations director, told commissioners that the 10-year letter of understanding would have a strong indemnification clause. The union would indemnify the employer for any legal challenges relative to the right-to-work agency shop issue.

Moving to a different issue, Smith characterized the language in the resolution as “over the top” and said it contained offensive rhetoric. He told commissioners that he had crafted two alternative versions of the resolution – one that eliminated the offensive rhetoric [.pdf of Dan Smith's alternative resolution #1], and another that removed language that was extraneous to county policy [.pdf of Dan Smith's alternative resolution #2]. “I’ve been quite clear that we need to stick to the county’s business, and I’ve shown a way we can do that,” he said.

Smith did not formally offer the resolutions for consideration.

LaBarre defended his own resolution, saying he agreed with the importance of sticking to the county’s business. He argued that “this is the county’s business,” due to the effect it would have on the workforce and on their ability to continue to provide excellent customer service for taxpayers, unionized and non-unionized. It’s “entirely within the scope of rational thinking,” LaBarre said, for one unit of government to weigh in on something that another unit has done that will change the original unit’s operations or affect its workforce.

Caryette Fenner, president of AFSCME Local 2733, the largest union representing county employees.

LaBarre said he agreed with Smith’s general principle that the county board should not be overly eager to weigh in on issues at other levels of government. “But I think this is a special case,” he added, “and thus requires a response.”

Rolland Sizemore Jr. highlighted the resolution’s reference to reaching a new four-year agreement. Does that indicate that the county will be developing a four-year budget? County administrator Verna McDaniel replied that the county has had a five-year contract with its unions in the past, even though it “didn’t marry up with the budget.” So there is precedence for union contracts that don’t match the county’s two-year budget cycle, she said. The contracts can include clauses that will build in protections against any unforeseen budgetary changes, she said.

Outcome: On a 6-1 vote, commissioners passed the right-to-work resolution. Voting against the resolution was Dan Smith (R-District 2). Ronnie Peterson (D-District 6) and Alicia Ping (R-District 3) were absent.

The board later entered into a nearly three-hour closed session for the purpose of discussing labor negotiation strategy. They were joined by several senior staff members – including county administrator Verna McDaniel; finance director Kelly Belknap; and Diane Heidt, the county’s human resources and labor relations director. Also participating in the session was the county’s bond counsel, John Axe of Axe & Ecklund of Grosse Pointe Farms. The meeting adjourned at approximately 11:30 p.m., without additional action by the board.

Delinquent Tax Borrowing

Commissioners were asked to give initial authorization to the county treasurer to borrow up to $40 million against the amount of delinquent property taxes in all of the county’s 80 taxing jurisdictions. [.pdf of delinquent tax resolution]

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

County treasurer Catherine McClary told commissioners that although this process is conducted each year, “I don’t handle it just pro forma.” She reported that under the state’s General Property Tax Act, as county treasurer she is required to collect delinquent taxes. Section 87 of the act allows the county to set up a revolving fund – which was done several decades ago – so that the county can borrow the estimated amount of delinquent taxes, then pay in advance to all the taxing jurisdictions the amount that they would have collected if there had been no delinquent payments.

This year, the estimated amount of delinquent taxes is about $25 million, though McClary said she expects the amount to be lower than that. The exact amount won’t be determined until the middle or end of March. The notes will likely be issued in April or May, she said. “The earlier we can issue, the earlier we can advance” funds to the local units of government and the county’s general fund, she explained.

McClary also pointed out that the resolution limits the amount that can be borrowed to $40 million, down from a limit of $45 million last year.

Delinquent Tax Borrowing: Board Discussion

Dan Smith thanked McClary, saying the process really helped local municipalities with significantly smaller budgets to manage their cash flow. He noted that some municipalities actually purchase these delinquent tax bonds, citing Ann Arbor Township as an example. So these local entities are investing in the county, which is another reason to keep the county’s finances in order, he said, and to keep the county’s bond rating high. A higher bond rating means that the county can borrow at lower interest rates, he noted.

Smith also pointed out that interest rates on CDs are “abysmal” now and it looks like they’ll remain that way. He asked if there’s any way he could purchase a delinquent tax bond too, when they are issued?

McClary replied that in 1975, when she served as a county commissioner, she investigated whether delinquent tax bonds could be sold over-the-counter to the public. Bonds are traditionally issued in amounts of $5,000, she said, but at that time, the county was looking at issuing $1,000 bonds. Selling to the public proved to be an insurmountable problem, she explained, having to do with securities laws, regulations about broker-dealers, and the expense of splitting the bonds into smaller amounts.

When she became treasurer 16 years ago, McClary said, she looked at the county’s cash flow, and realized that the county could issue these delinquent tax bonds, advance the necessary amounts to the local units of government, then use the remaining cash on hand from the bonds to purchase the county’s own delinquent tax bonds through a broker-dealer and hold them in the county’s investment portfolio. It was a “win-win-win” for everyone, because the county was holding its own “very safe” securities. “Talk about buy local,” she joked.

In 2010 and 2011, the delinquent taxes were so high – because of the economic crisis – that she didn’t have the additional cash to buy back the securities. Last year, there was enough extra cash to purchase some but not all of the delinquent tax bonds. So she made an offer to the treasurers of other local units of government, as well as to some other county treasurers. The result was that Washtenaw County, Kalamazoo County and Ann Arbor Township split the purchase of Washtenaw County’s delinquent tax notes. “It was a fabulous way to go,” she said. This year, she’ll try to hold all the notes in Washtenaw County’s portfolio. “If I can’t, I’ve got some buyers.”

Smith said he was sorry he couldn’t buy any of the bonds himself. In his opinion, it would be one of the safest bonds he could purchase.

Outcome: Commissioners voted unanimously to give initial approval to the delinquent tax borrowing. A final vote is expected on Feb. 20.

Treasurer’s Report

During the Feb. 6 meeting, county treasurer Catherine McClary also gave the board a year-end report for 2012. [.pdf of 2012 treasurer's report]

She began with an overview of the importance of civic infrastructure, noting that it includes the elements of fiscal stability and the safety of public funds, as well as fair and equitable tax systems, honest elections, and the maintenance of accurate land and vital records. The equalization department, which reports to the board, as well as the elected positions of treasurer and clerk/register of deeds are responsible for these aspects of civic infrastructure, she explained.

These three units of county government are interlocking, McClary said. She gave an example from the housing sector. When someone buys or sells a home, the deed must be certified by the county treasurer’s office to attest that the taxes on that property are paid. The paperwork then goes to the register of deeds, where the deed gets recorded. If the treasurer’s office is behind on certifications, then the deed recording gets backed up. In another county in Michigan, she said, fraud occurred because deeds weren’t recorded quickly and the property was sold multiple times to different people.

After the deed is recorded, a copy is sent to the local assessors, who can then “uncap” the assessment, because the property has changed hands. The uncapping means that the taxable value can be raised to equal the assessed value. Determining the assessed value is part of the job of the county’s equalization department, McClary said. That assessment, in turn, is the basis on which each local treasurer levies taxes. Uncollected taxes come back to the county treasurer, “so it really is an interlocking cycle,” she said.

McClary also described in more detail the roles and responsibilities of the treasurer’s office, linking each area to the county’s guiding principles. Related to the principle of ensuring the county’s long-term fiscal stability, McClary pointed to the treasurer’s role of generating revenue by collecting taxes, noting that property taxes make up 61% of the county’s general fund. In addition to property taxes, the treasurer’s office handles other millages – for parks and natural areas, for example – and special assessments for drains, public works and road projects. All other revenue, from grants and other sources, flows through bank accounts that are managed and reconciled by the treasurer. In addition, the treasurer’s office invests surplus funds for the county.

The office also works to prevent foreclosures, McClary said – both mortgage foreclosures and tax foreclosures. These prevention programs have served as a model throughout the state, she said. In addition to an emphasis on prevention, the treasurer’s office will foreclose when necessary, she said, with the goal of returning the property to productive use, preserving neighborhoods, eradicating blight and enforcing local ordinances. She noted that the treasurer’s office and the city of Ypsilanti received a National Association of Counties (NACo) award for an open house project to market tax-foreclosed properties. She also pointed to the former Greek Orthodox church on Main Street in Ann Arbor, saying that the county made “nice excess proceeds” from selling that tax-foreclosed property.

McClary also noted that her office sometimes intervenes in bankruptcies. Although it’s is not mandated by state law, she said it’s a way to get the taxes paid for the public benefit. As an example, she cited a bankruptcy intervention last summer with a “well-known slum landlord” in Ypsilanti. McClary said her office was able to convince the bankruptcy judge and bankruptcy trustee to abandon 13 of the properties, and the county was able to recover over $400,000 in taxes. The properties were foreclosed and sold at public auction.

Delinquent taxes are an early indicator of foreclosures, she said. There was a time when the county averaged 12 foreclosures a year out of about 10,000 properties with delinquent taxes. But for the last four or five years, those numbers have been much higher, she said, although now delinquencies are decreasing.

Chart showing Washtenaw County investment allocations.

Turning to financial data, McClary noted that her office brought in $9.96 million during the year from the following sources: delinquent taxes and fees ($5.046 million), accommodation tax ($4.067 million), investment earnings ($755,681), dog licenses ($59,748) and tax searches ($31,760).

She said the investment earnings in recent years have distressed her. In 2006, total revenues for her office were $11 million – not much off the roughly $10 million that were brought in during 2012. But in 2006, investment earnings accounted for about $6 million of the total revenues from her office, she noted – much higher than the $755,681 in 2012. However, now other categories – including the accommodations tax and dog licenses, which her office administers – have increased since then. That reflects the counter-cyclical nature of revenues from the treasurer’s office, McClary said.

She highlighted the diversification of investments and maturity dates, which will put the county in a good position when interest rates rise – although she didn’t see that happening in the immediate future.

McClary also reported that the county’s investment portfolio totaled $156.08 million at the end of 2012. The non-cash portion of that amount is $147.855 million, which brought in an average weighted yield of 0.456%. Even though that’s low, she said, it performed well against the three-month Treasury benchmark, with a return of 0.05%.

McClary noted that at the end of 2012, a third of the county’s investment portfolio was in Michigan municipal bonds.

Treasurer’s Report: Board Discussion

Conan Smith thanked McClary for her attentiveness to both the rate of return as well as the need for financial security, saying it was hard to balance those two things, but he thought she did a great job of it. He was interested in knowing the relative difference in interest earnings, based on the maturity dates of the county’s holdings. He said he assumed she kept a blended portfolio.

McClary replied that although the county’s portfolio is blended, in general the county doesn’t get a better rate of return by holding longer-term investments. Rather, the different rates of return are more dependent on the different types of securities. In this market, municipal bonds deliver the highest rate of return, McClary said. She noted that in the current portfolio, CDs (certificates of deposit), CDARS (certificate of deposit account registry service), and commercial paper are making 1% or less. Federal agency investments vary, based on how long they’re held, she said – with returns ranging from 0.15% to 1.625%.

Dan Smith asked McClary to comment on the Wayne County airport bond, which was showing a 4% rate of return – the highest of the Michigan municipal bonds. He noted that the Washtenaw County tax notes, which mature on Dec. 1, 2013 – at the same time as the airport bond – have only an 0.85% return.

McClary replied that she had purchased the airport bond through a broker-dealer. In contrast, on the Washtenaw County tax notes she had entered into negotiated bidding. Because she was working with two other units of government on that deal – Kalamazoo County and Ann Arbor Township – “we needed to make sure everything was squeaky clean and fair in terms of setting the rate,” she said. They worked with an underwriter to come up with suggested rates, she explained, then she and the other two treasurers figured out “who wanted the long ones and who wanted the short ones” – a reference to maturity dates.

Andy LaBarre noted that he, McClary and others from the county had attended a recent community capital forum featuring economist Michael Shuman, sponsored by the county’s office of community & economic development. He asked McClary to speak about the secondary positive benefits of local investments, and why she’s taken that step of investing in Michigan municipal bonds.

McClary replied that everyone has likely thought about buying local on a personal level, whether it’s food or clothing or other items. Shuman had talked about three different areas, she said. One is whether the county might have a role in matching local businesses with capital. The second area would be making local investments from the county’s retirement fund. To do that, you’d need to look at the goal of the retirement fund and at what’s permissible under the law, she said. Shuman had also stressed that the investments wouldn’t be made in start-ups, she said, but rather in well-established firms that are looking to expand.

Another issue is how to define “local,” McClary said – is it Michigan, the Midwest or the U.S.? She said the county has had success in investing in Michigan municipal bonds, as long as they meet the criteria of safety and liquidity to meet the county’s cash needs.

McClary concluded her presentation by offering to answer any additional questions commissioners might have in the future regarding the treasurer’s office work.

Outcome: This was not a voting item.

Energy Alliance Accord

Commissioners were asked to approve amendments to an interlocal agreement to form the Southeast Michigan Regional Energy Office Community Alliance.

Washtenaw County commissioner Conan Smith (D-District 9).

The history of this partnership dates back to 2010. The county board voted initially to join the Southeast Michigan Regional Energy Office (SEMREO) – a separate entity from the SEMREO Community Alliance – at its March 17, 2010 meeting. At the time, SEMREO was a division of the Michigan Suburbs Alliance, a Ferndale-based nonprofit that’s led by county commissioner Conan Smith. Smith abstained from the March 17, 2010 vote, following conflict-of-interest concerns raised by other commissioners. SEMREO later split off from the Michigan Suburbs Alliance as a separate organization, but Smith serves on its board of directors and as its treasurer.

Washtenaw County became involved in the SEMREO Community Alliance in 2011. On Aug. 3, 2011, the county board voted to join the SEMREO Community Alliance and approved the original interlocal agreement. According to Sam Offen – SEMREO director and co-director of the SEMREO Community Alliance – the alliance is being created in order to pursue certain grant funding that’s not available to municipalities directly. It includes six partners: Washtenaw County, and the cities of Lathrup Village (in Oakland County); Sterling Heights and Roseville (in Macomb County); and Lincoln Park and Southgate (in Wayne County). [.pdf of original interlocal agreement] Smith was absent from the Aug. 3, 2011 meeting when the Washtenaw County board voted to join the alliance.

Specifically, the community alliance will be setting up a Property Assessed Clean Energy (PACE) program, which is enabled by state legislation – the Property Assessed Clean Energy Act 270 of 2010. The program allows property owners to take out loans to make energy improvements that would be repaid through regular installments as part of their taxes. The city of Ann Arbor has already set up its own PACE program, and the city council is expected to vote soon on authorizing up to $1 million in bonds that would help owners of commercial property make energy improvements.

The interlocal agreement requires the approval of Gov. Rick Snyder. The state attorney general had reviewed the original agreement and requested some changes.

According to a staff memo, the amended interlocal agreement includes 13 changes, summarized in the county board’s resolution. [.pdf of interlocal agreement resolution] Changes include: (1) clarifying local government appointment and removal powers; (2) allowing video conferencing for quorum and voting; (3) allowing teleconferencing for participation, but not voting or quorum; (4) adding forms and rules for additional parties to join the alliance; and (5) clarifying the entity that determines how costs and expenses are to be distributed. A full copy of the amended interlocal agreement was not provided in the board’s Feb. 6 meeting packet. Offen emailed it to The Chronicle following the meeting. [.pdf of amended interlocal agreement]

Washtenaw County was the last of the six partners to authorize the amendments. In an email sent to commissioners on Feb. 1, Smith expressed some frustration about the process. [.pdf of Smith's email] From the email:

The Regional Energy Office requested the BOC address this on December 11, 2012. Understandably, we were not able to take it up in December or at our first meeting in January. I had expected staff to bring it to our last meeting but that did not happen. At the Working Session, I requested this be included on the BOC agenda, but again staff did not expeditiously prepare the very brief cover memo that is necessary. I communicated directly with staff in person and by email about this, but the memo was not provided until yesterday. I learned today that it has been included on the Ways & Means agenda rather than the Board agenda, despite our agreement at Working Session to send it to the BOC and the fact that this is not, at least in my opinion, a change in County policy.

I am very frustrated by this process. I feel I have been patient and supportive, but not received prompt attention to what is a minor ministerial matter. At this point, all the other communities have approved the amendments and Washtenaw is holding up the process. I would very much appreciate it if we can complete action on this item next week.

Energy Alliance Accord: Board Discussion

On Feb. 6, Smith was absent for the initial vote to amend the SEMREO Community Alliance interlocal agreement, arriving at the meeting after the vote had been taken. However, he asked the board if he could record affirmative votes for all items that he had missed – which included the SEMREO Community Alliance item. None of the other commissioners objected.

The item was voted on at both the ways & means committee meeting, and the regular board meeting that immediately followed. It had been added as a supplemental agenda item for the regular board meeting. Typically, resolutions are voted on initially at ways & means, then two weeks later at the regular board meeting – rather than on the same night.

Before the final board vote, Smith introduced Sam Offen, SEMREO director and co-director of the SEMREO Community Alliance, saying that Offen had been shepherding the interlocal agreement through the process in the attorney general’s office and the governor’s office. Smith described the process as “onerous.”

Smith noted that Washtenaw County was the last government entity to vote on approval of the revised agreement. He asked Offen if the agreement then had to get the governor’s signature. Yes, Offen replied. All of the changes that the board was adopting that night had already been approved by the attorney general.

Outcome: Without further discussion and in separate votes, commissioners unanimously gave both initial and final approval to the amendments for the interlocal agreement.

After-School Program Grant

Washtenaw County commissioners were asked to give final authorization to apply for a $20,000 grant to fund expansion of an after-school program called “Telling It” in the West Willow and MacArthur Boulevard housing developments, low-income neighborhoods on the county’s east side. Initial approval was received on Jan. 15, 2013. [.pdf of grant application]

According to a staff memo, the Telling It program focuses on developing creative writing and literacy skills for at-risk youth. It would support an effort to fight gang-related activity – specifically, the dozen or so “cliques” in the Ypsilanti/Willow Run area. The memo defines cliques as gangs “without by-laws, or a code of ethics, ultimately heightening the threat. Criminal behavior is viewed as a rite of passage as youth longing to belong to something in some areas where they are being offered very little positive influence during the school year. The sheriff’s office has recognized the need to provide after-school enrichment programs that are not purely sports based.”

One of the main concerns in West Willow is an underground culture of “fight clubs,” according to the sheriff’s office – where teenage boys promote fighting between teenage girls, with the fights videotaped and uploaded to YouTube.

The grant application is unusual in that it’s the first time a county unit has sought funding through the coordinated funding pilot program, which was designed to support human services more effectively in this community. The coordinated funding is a partnership of the county, the city of Ann Arbor, the United Way of Washtenaw County, the Washtenaw Urban County, and the Ann Arbor Area Community Foundation.

The 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.

The grant application for Telling It would help pay for four program facilitators, a program director, and a psychotherapist to serve as a training consultant. It would fall under the coordinated funding category of capacity building.

Commissioner Conan Smith had previously raised concerns about using the coordinated funding program, which was designed to support local nonprofits, to pay for a county-sponsored initiative. He felt the county should find a way to pay for it without using money that’s meant for outside agencies. However, he raised no objection at the Feb. 6 meeting.

After-School Grant Program: Board Discussion

Board chair Yousef Rabhi told commissioners that he has asked Mary Jo Callan – who leads the county’s office of community & economic development, which administers the coordinated funding program – to develop a policy that addresses whether county programs can apply for funding from the coordinated funding program.

Outcome: Commissioners unanimously gave final approval to the grant application.

Changes to Board Rules & Regulations

On the Feb. 6 agenda was an item to change the board rules and regulations that commissioners adopted at their Dec. 5, 2012 meeting. The proposal was to amend the list of boards, committees and commissions that are eligible for stipend payments, adding the Detroit Region Aerotropolis board to the list and removing the Southeast Michigan Regional Transit Authority (RTA). The stipend for service on the aerotropolis would be $100.

Yousef Rabhi (D-District 8), chair of the Washtenaw County board of commissioners.

Commissioner Rolland Sizemore Jr. (D-District 5) had been appointed to serve on the aerotropolis at the county board’s Jan. 16, 2013 meeting. Sizemore’s appointment on Jan. 16 came in the context of the annual county commissioner appointments made at the start of each year. [.pdf of 2013 appointments listing]

The original list of eligible boards, committees and commissions for which stipends are paid was approved at the county board’s Dec. 5 meeting, but the aerotropolis had not been included in that list.

At that Dec. 5 meeting, commissioners had voted to alter their compensation to 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. In the past, commissioners had to request per diem payments for their work. Now, stipend payments will be made automatically, unless commissioners waive their stipends by giving written notice to the county clerk.

According to the county clerk’s office, Dan Smith (R-District 2) is the only commissioner who has waived all of his stipends. Felicia Brabec (D-District 4) waived the $150 stipend for the accommodations ordinance commission. She serves as an alternate for the AOC. Ronnie Peterson (D-District 6) does not receive any stipends because he was not appointed to any boards, committees or commissions.

Outcome: Without discussion, commissioners unanimously approved the change to the board’s rules & regulations.

Board Budget Calendar & Guidelines

On Jan. 16, the board had given initial approval to a timeline and guidelines for developing the county’s budgets through 2017, setting a goal for the county administrator to submit budget recommendations on Sept. 4, 2013 with final adoption by the board on Nov. 20, 2013. [.pdf of budget guidelines]

The item was up for final approval on Feb. 6. Dan Smith (R-District 2) moved to make a minor amendment related to policies and procedures [italics indicates added text, strikethrough indicates deletion]:

Department Heads are directed and Elected Officials are requested directed to review all programs for continuing relevance and priority as a County service, and discuss the possibility to delete or modify programs where possible with the County Administrator.

Outcome: Smith’s amendment passed unanimously, without discussion. The amended item was later passed as part of the board’s consent agenda.

Community & Economic Development Grants

Several items were on the agenda related to grants and programs administered by the county’s office of community & economic development (OCED). Those items included:

• the Michigan Works! system plan for 2013 [.pdf of 2013 MWSP]
• $20,000 in federal funding (Community Services Block Grant discretionary funds) to conduct a needs assessment of the New West Willow Neighborhood Association.
• $20,000 in federal funding (Community Services Block Grant discretionary funds) for tax preparation services to low-income customers, in partnership with Avalon Housing, Catholic Social Services of Washtenaw County, Housing Bureau for Seniors and Women’s Center of Southeastern Michigan.
• $299,821 in federal funding for the foster grandparent program, plus $104,208 in county matching funds. The program serves 80 limited-income individuals aged fifty-five and over, who’ll mentor children with special needs. The funds provide foster grandparents with a stipend, transportation, meals, uniforms, community involvement and training, and an annual physical exam.
• $46,900 in state funds to provide emergency heating deliverable fuels to about 45 households.
• $94,901 in state funds to help low-income families pay their home energy bills, and to provide emergency deliverable fuels to residents at or below 200% of the federal poverty limit.

Community & Economic Development Grants: Board Discussion

Dan Smith (R-District 2) pointed out that there were a number of agenda items related to OCED, and he wanted to thank OCED director Mary Jo Callan and her staff for all their work.

Felicia Brabec (D-District 4) asked about the needs assessment for the New West Willow Neighborhood Association and for the senior nutrition program – another item on the agenda for final approval on Feb. 6. She wondered if there would be funding available to implement the recommendations from the needs assessments.

Callan said the needs assessments are definitely planning activities. The point is to inform future investments, she noted. The staff can’t yet say if there will be money available to fund everything that needs funding, Callan added, but it’s useful to look at how their current funding is deployed and to make sure it’s doing the most good for the most people.

Regarding the New West Willow neighborhood assessment, there aren’t currently operating dollars to fund programs there, Callan said. But the county receives an annual allocation of federal Community Service Block Grant (CSBG) funding. The county is making sure they invest those dollars in the places that they know there’s need, she said.

Outcome: All items were approved unanimously by commissioners as part of the consent agenda.

Tech Agreement

County commissioners were asked to give initial approval to amend a three-way agreement with the Ann Arbor Transportation Authority and the city of Ann Arbor. The three-way accord – an interagency agreement for collaborative technology and services (IACTS) – is meant to provide a way to procure and maintain common technology platforms and services centrally.

The modification to the agreement allows for adding other entities into the agreement in a more streamlined way. It gives each founding member the ability to add new participants administratively, without modifying the agreement itself. The original IACTS was approved in May of 2011. [.pdf of IACTS amendment]

The Ann Arbor city council approved the amendment at its Feb. 4, 2013 meeting. According to city of Ann Arbor IT director Dan Rainey, responding to an emailed query, one of the entities interested in participating in the IACTS is the Washtenaw Intermediate School District. Also responding to an emailed query, Washtenaw County IT manager Andy Brush explained that certain IT services are already provided by Washtenaw County to various entities – like the city of Ypsilanti, Dexter’s fire department, and the 14B District Court – although they aren’t yet parties to the IACTS agreement.

Tech Agreement: Board Discussion

At the Feb. 6 meeting, Yousef Rabhi (D-District 8) highlighted this project as one of the county’s “shining stars” in terms of collaborative efforts. It’s an example of collaboration between the city and county, saving money and being “excellent stewards” of public dollars, he said, “and really making those public dollars go as far as possible.” He thanked the county’s infrastructure and IT staff for their work.

Outcome: Commissioners gave initial approval to the IACTS amendment. A final vote on this item is expected at the board’s Feb. 20 meeting.

Debt Refinancing for Township Sewers

Commissioners were asked to give initial approval to refinance debt for a sewer system in Lyndon and Sylvan townships, on the county’s west side. The action is intended to save about $110,000 in interest payments. [.pdf of bond resolution]

The resolution authorizes the sale of refunding bonds that would be used to pay the remaining principal on existing bonds that were sold in 2004. That year, the county sold $5.115 million in bonds to help the townships pay for the sewer. Of that amount, $2.225 million remains to be repaid. According to a staff memo, the project built sewers at Cavanaugh, Sugar Loaf, Cassidy, Crooked, and Cedar Lakes. It’s funded through special assessments on property around those lakes and payments by the Sugar Loaf Lake State Park and Cassidy Lake State Corrections Facility.

The staff memo also states that additional funds might be available from special assessment prepayments and connection fees paid by the state of Michigan. These funds might reduce the total refunding bond amount even more, and would increase the savings.

This sewer system is separate from a controversial water and wastewater treatment plant project in Sylvan Township. For more background on that project, see Chronicle coverage: “County Board OKs Sylvan Twp. Contract.”

Outcome: Without discussion, commissioners unanimously approved the debt refinancing. A final vote is expected on Feb. 20.

Miller Avenue Drain Project

Funding for a drain project along Miller Avenue in Ann Arbor – in the Allen Creek drainage district – was on the county board’s Feb. 6 agenda.

Evan Pratt, Washtenaw County water resources commissioner.

The request was to authorize the backing of up to $1.58 million in bonds for the project, which will repaid through a special assessment against the city of Ann Arbor.

The project is being handled by the office of the Washtenaw County water resources commissioner, led by Evan Pratt. It’s the first project brought forward by Pratt, who was elected in November 2012 and took office in January. Pratt attended the Feb. 6 meeting but did not formally address the board.

According to a staff memo, the funds will be used “to clean out, widen, deepen, straighten, tile, extend, or relocate along a highway, construct branches, relief drains, or connections to the Miller Avenue portion of the Allen Creek Drain to reduce downstream flooding and improve water quality to increase the public health benefit.”

There was no discussion on this item.

Outcome: Commissioners voted unanimously to give initial approval to the Miller Avenue Drain project. A final vote is expected on Feb. 20.

Communications & Commentary

During the evening there were multiple opportunities for communications from the administration and commissioners, as well as public commentary. Here are some highlights.

Communications & Commentary: County ID Card

Yousef Rabhi reported that he was working with community members and human services providers to develop a new program about a Washtenaw County ID card. The project is being overseen by a task force of the following members and entities:

• Yousef Rabhi, chair of the Washtenaw County board of commissioners
• Jerry Clayton, Washtenaw County sheriff
• Catherine McClary, Washtenaw County treasurer
• Larry Kestenbaum, Washtenaw County clerk
• Melody Cox, assistant to the county clerk/register of deeds
• Synod Community Services
• Washtenaw Interfaith Coalition for Immigrant Rights
• Shelter Association of Washtenaw County
• Casa Latina
• Law Enforcement Citizens Advisory Board
• Home of New Vision

It provides a way for residents who don’t have a driver’s license or other photo ID to access services that require such an identification card, Rabhi said. Actions and services that require a photo ID include renting an apartment, opening a bank account, and proving residency for things like library cards. People who are elderly, immigrants, ex-offenders, or homeless often face discrimination because they don’t have a photo ID, Rabhi said. It’s also important for law enforcement, he added, because sometimes immigrants don’t feel comfortable reporting crimes – they fear repercussions if police ask for their ID.

Funding this kind of program is a huge issue, Rahbi noted. It’s important to minimize the impact on the county, he said, but there are lots of opportunities for partnerships. People involved in this effort will be reaching out to local officials in the coming weeks, he said, and he hoped the program would move forward.

Communications & Commentary: Liaison Reports

Felicia Brabec reported from the Sustainable Revenue for Supportive Housing Services Task Force, on which she serves. The group is looking at the possibility of an endowment campaign. The nonprofit Washtenaw Housing Alliance is paying for  a consultant (Hammond and Associates) – to explore how such a campaign might fare. It’s estimated that about $17 million would be needed “so it’s a big undertaking for us,” she said. That amount would support an additional 116 units of supportive housing. An existing endowment has $2 million, Brabec reported – $1 million from the Ann Arbor Area Community Foundation, and $1 million from St. Joseph Mercy Health System, in honor of Sister Yvonne Gellise.

Brabec also reported that TCC Group, the consultant hired to evaluate the county’s coordinated funding pilot program, has finished its work. She, Yousef Rabhi and Andy LaBarre were briefed on the initial findings and “overall it looks good,” she said. TCC representatives indicated that they haven’t seen this kind of public/private model being done anywhere else. The full report will be shared with other commissioners, policymakers and the public when it’s completed, she said.

Brabec also updated commissioners on the status of the Washtenaw Community Health Organization (WCHO), a partnership between Washtenaw County and the University of Michigan Health System. The organization has completed its relocation into county office that it’s leasing on Zeeb Road, she said. She thanked Greg Dill, the county’s director of infrastructure management, for his help in making that transition.

Communications & Commentary: Introductions

Several other elected officials attended the Feb. 6 meeting, in addition to county commissioners.

Felicia Brabec, chair of the board’s ways & means committee, noted that sheriff Jerry Clayton, county treasurer Catherine McClary, and Evan Pratt – the county’s water resources commissioner – were attending the meeting. Also in the audience was Brian Mackie, the county prosecuting attorney.

Dan Smith introduced Oakland County commissioner Phil Weipert. [Weipert, a Republican, represents District 8 in Oakland County, which includes the cities of South Lyon and Wixom, the village of Wixom, and the townships of Lyon and Milford.]

Communications & Commentary: Public Commentary

Thomas Partridge spoke at both opportunities for public commentary during the evening. He told commissioners he was there to advance the cause of the most vulnerable, and called for them to add to the agenda a funding plan to provide housing to everyone who was outside on this cold night. He said the “right-wing” Republicans in the Michigan legislature and the U.S. Congress have the “Sword of Damocles” hanging over the nation as the deadline approaches at the end of February, when he said the economy will be hit by the impact of sequestration. Partridge also called for the county board to put forward a resolution calling for gun and ammunition control.

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

Absent: Ronnie Peterson, Alicia Ping.

Next regular board meeting: Wednesday, Feb. 20, 2013 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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After March 1, taxing jurisdictions – including cities, townships, schools systems and libraries, among others – turn their delinquent taxes over to the county, and are reimbursed for that amount. The county treasurer then assumes responsibility for collecting these delinquent taxes. This is a standard procedure that’s conducted annually at this time of year. The borrowed funds are used for cash flow purposes, to fund operations for the first half of the year.

County treasurer Catherine McClary projects needing to much borrow less than the $40 million authorized – likely about $25 million. [.pdf of delinquent tax resolution]

During the Feb. 6 meeting, McClary also gave the board a year-end report for 2012. Her office brought in $9.96 million during the year from the following sources: delinquent taxes and fees ($5.046 million), accommodation tax ($4.067 million), investment earnings ($755,681), dog licenses ($59,748) and tax searches ($31,760). McClary also reported that the county’s investment portfolio totaled $156.08 million at the end of 2012. The non-cash portion of that amount is $147.855 million, which brought in an average weighted yield of 0.456%.

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]

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

County treasurer Catherine McClary told the board that she projected needing to much borrow less than the $45 million authorized – likely about $26 million. Last year, the county borrowed about $32 million for this purpose.

McClary noted that delinquent taxes are a leading economic indicator, and in that respect the trend was positive. This year, there is a drop in delinquent taxes for the first time since 2005. All jurisdictions saw a decrease, she said.

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]

Washtenaw County treasurer Catherine McClary, right, talks with deputy county administrator Bill Reynolds before the start of the Feb. 16, 2011 board of commissioners meeting. McClary delivered her annual treasurer's report during the meeting. (Photos by the writer.)

Ronnie Peterson started that debate by advocating for holding the board’s budget retreats and administrative briefings at the boardroom table, where they can be televised. The meetings are open to the public, but are more informal and not available on Community Television Network or online webcasts. The ensuing discussion revealed different perspectives on what kind of environments are most conducive to deliberations. At one point, board chair Conan Smith – who opposed a change of venue – argued that deliberations aren’t subject to the state’s Open Meetings Act. The county’s attorney, Curtis Hedger, advised the board that, in fact, deliberations do need to occur in open meetings, with limited exceptions allowed in closed sessions.

After roughly 90 minutes of debate, the board voted – with Smith dissenting – to hold future budget retreats in the boardroom following their bi-weekly working sessions. The retreats will be televised. An effort to relocate and televise administrative briefings failed, however, with support only from Peterson, Kristin Judge and Wes Prater.

In other business, the board appointed three staff members to a review committee that’s part of a new coordinated effort for funding human services nonprofits in the county. During a presentation by Mary Jo Callan – head of the office of community development, which is overseeing this process – Peterson expressed concern that smaller, community-based nonprofits will be unable to compete in this new system. Callan assured him that she understood his concerns, but felt that this new model could actually be better for those nonprofits. She noted that the board would ultimately control funding decisions for county dollars.

Catherine McClary, the county treasurer, delivered her annual treasurer’s report, giving an update on the county’s investment portfolio, delinquent taxes and foreclosures. She reported that the amount of residential tax foreclosures appears to be stabilizing, but foreclosures of commercial property are on the rise, especially for parcels of vacant, undeveloped land. Separately, the board approved the treasurer’s annual request to borrow funds – up to $50 million this year – to temporarily cover delinquent taxes in the county’s 80 taxing jurisdictions. Last year, there was about $29 million in delinquent taxes, and McClary expects a small increase this year.

McClary also told commissioners that later this year she’ll be asking them to approve a civil infractions ordinance for dog licenses, as part of a stepped-up enforcement effort. Right now, not having a license is a criminal misdemeanor of 90 days in jail or a $500 fine.

During Wednesday’s meeting commissioners also delivered several liaison reports, including news that the Washtenaw County Parks & Recreation Commission had approved $600,000 for the Connecting Communities trail program. Part of those funds will support a project that will eventually link Saline and Ann Arbor through a non-motorized pathway. The commission also authorized $250,000 to build a boathouse and fishing dock at Ford Lake, in partnership with the state and Eastern Michigan University.

Coordinated Funding for Human Services

On the agenda was a resolution to appoint three representatives to a review committee that will help award human services funding to local nonprofits through a coordinated funding approach. The appointees are: Hazelette Robinson, community relations director for the Washtenaw Community Health Organization; Susan Sweet Scott of the county’s Employment Training & Community Services (ETCS); and Michael Smith of the county’s veteran affairs office.

The funding process coordinates the efforts of five major funders: the city of Ann Arbor, Washtenaw County, the Urban County, Washtenaw United Way and the Ann Arbor Area Community Foundation. It is being managed by the joint county/city of Ann Arbor office of community development, led by Mary Jo Callan, who gave a presentation to county commissioners at their meeting.

Coordinated Funding for Human Services: Public Commentary

Julie Steiner, executive director of the Washtenaw Housing Alliance, thanked commissioners for their support of safety-net services. Washtenaw County is a leader, she said, because it understands the importance of nonprofits in providing those services. She said the WHA has seen benefits from the coordinated funding approach that’s being managed by the office of community development.

The WHA has 27 member organizations all working on housing and homelessness-related issues. About two years ago, they came up with a list of shared outcomes, Steiner said, which help in their goal of being transparent to the community regarding how tax dollars supporting these organizations are spent. [.pdf of WHA outcomes] Saying she’d bring the board a more detailed report in the future, Steiner ticked through several outcomes identified by the group, including: (1) reduce the number of people who become homeless; (2) reduce the average length of stay in local shelters; (3) increase the number of homeless people who get permanent housing; (4) increase the percentage of people who stay in permanent housing for at least 12 months and 24 months; and (5) reduce the number of formerly homeless people who become homeless again. Steiner praised the staff of the office of community development, saying they were a great help in developing a database to track this information, and in training nonprofits in how to use it.

Joan Chesler introduced herself as coordinator for the Washtenaw Alliance for Children and Youth (WACY). The group was formed just a couple of years ago, she said, and is in a planning and coordination phase using the national model called Ready by 21. [See Chronicle coverage: "Alliance Focuses on School-Age Kids"] The intent is to do some big-picture thinking about what groups are serving these children, what problems exist and what resources can be used to address those problems. They’ve developed some shared outcomes as well, and are looking at ways to coordinate services. It’s a long-term effort, she noted.

Several commissioners had comments and questions for Chesler and Steiner. Barbara Bergman said she hadn’t heard of WACY and wanted more information – as did other commissioners. When Rob Turner told Chesler that he still didn’t really understand what WACY did, she responded that they were just getting started – she could share their goals and plans, but those hadn’t been realized yet. Kristin Judge assured them that addressing homelessness and supporting youth are priorities for the board, and that commissioners are also fans of the OCD and Callan.

Wes Prater said he was glad to see the WHA’s focus on performance outcomes, and asked that Steiner provide a report to the board when it’s available. Steiner said they’ve just formed a new data leadership team – they’ll seek input on crafting benchmark data, with regular reports annually.

Ronnie Peterson said it was good to see Chesler “back in action.” [She previously served as executive director of the Corner Health Center in Ypsilanti.] He hoped they could schedule a working session on the issue of services for youth in the near future, and said it was important that the county departments get behind these types of consortiums to support them.

Coordinated Funding for Human Services: Presentation

Mary Jo Callan, head of the office of community development (OCD), began her presentation by introducing three county employees who were nominated for appointments to a funding review committee. The committee, part of a new coordinated funding model, will evaluate proposals from local nonprofits seeking financial support from five major funders: the city of Ann Arbor, Washtenaw County, the Urban County, Washtenaw United Way and the Ann Arbor Area Community Foundation.

Susan Sweet Scott, left, talks with Mary Jo Callan, head of the Washtenaw County/city of Ann Arbor office of community development. Sweet is an administrator with the county's Employment Training & Community Services (ETCS).

Susan Sweet Scott of the county’s Employment Training & Community Services has been with the county 22 years, and leads the community services portion of Employment Training & Community Services (ETCS). Hazelette Robinson, community relations director for the Washtenaw Community Health Organization, is another long-time county staffer, with a 19-year tenure. The third appointee was Michael Smith, who leads the county’s veteran affairs office.

Not only do these three people bring their experience to the review process, Callan said, but they will also take away a better understanding of the programs and services available outside of county government.

She then gave a presentation she’s delivered many times over the past year – an explanation of how the coordinated funding model works. [The county board voted to join the partnership at their Nov. 3, 2010 meeting. Callan had briefed them on the project at an Oct. 7, 2010 working session. She has given similar presentations to the Ann Arbor city council and Urban County executive committee, in addition to other groups.]

Though Conan Smith jokingly asked whether she was tired of talking about it, Callan replied that it might be the commissioners themselves who were tired of the topic. However, she noted that four new commissioners had joined the board since she’d last spoken to them, and she hoped this overview would answer any questions they had.

The county has a strong safety net of social services, through local government programs and nonprofits, she said, but it’s been handled in a shattershot way. They haven’t gotten the most out of their investments, and this coordinated approach attempts to focus on community priorities in a coherent way. It involves entities that are already planning and coordinating efforts for specific areas – like the Washtenaw Housing Alliance and Success by Six – along with major funders and the programs that directly serve people in need. There’s also a piece for strengthening the nonprofits themselves, funding “capacity building” needs like staff training, financial software or paying for mergers between two nonprofits.

The funding model focuses on these key areas: housing/homelessness, seniors, school-aged youth, children from birth to six, and health/nutrition.

Most of the dollars will be used for programs and services, Callan said. For the funding cycle that begins July 1, 2011, they hope to have just over $5 million as a “baseline investment”: $2.7 million from the three government entities, $2.3 million from United Way and $300,000 from the community foundation. Obviously, a lot can change in terms of available funding, she noted – both the city of Ann Arbor and Washtenaw County are working to address budget deficits in their coming fiscal years, and the Urban County faces cuts from federal funding it receives. [Chronicle coverage of possible reductions in human services allocations by the city of Ann Arbor: "Ann Arbor 2012 Budget: Parks, Plan, People"]

The process will be streamlined, Callan said. Instead of five applications for funds, there’s one. The same is true for the review process and final recommendations – there will be one set. However, the governing boards of each funding entity will retain control over how their dollars are allocated. Callan noted that they’ll be making those decisions in the context of what all partners are doing, and her hope is that everyone will look in the same direction, with the same strategy to achieve the same measurable outcomes.

Benefits include leveraging the funders’ investment, Callan said – for every dollar that’s invested, local nonprofits bring in $10 from state, federal and private funders. The coordinated approach is also minimizing duplication of efforts for both nonprofits and funders, and maximizing the effectiveness of their investments. She said her office has already seen benefits from previous coordination of funding by government entities, in terms of saving roughly 600 hours of staff time – those benefits will be even greater, with additional partners.

After getting approval from the governing boards of all five funders last year, the application process for the next funding cycle has already begun. Nearly 60 nonprofits applied to the first phase of the application process, in which they were asked to supply basic financial and governance documents. Of that group, 51 were qualified to respond to a request for proposals (RFP) that was issued Jan. 28. The deadline for applying is March 4, with reviews conducted in March and early April, and recommendations presented to funders in April and May.

For the county, funds will be invested in programs that reflect the board’s priorities, Callan said: school-aged youth (37%), pre-school children (19%), “safety net” health (22%), housing/homelessness (15%), aging (4%) and hunger relief via Food Gatherers (3%).

The need is great, Callan said. Unemployment remains stubborn, poverty has increased – an estimated 10,000 children and 2,000 elderly live at poverty levels in Washtenaw County – and roughly 8% of county residents are uninsured.

Coordinated Funding for Human Services: Commissioner Comments

Ronnie Peterson began by asking whether the guidelines given to nonprofits who applied for funding were the same as those used by United Way – he said it would have been useful for the board to see those guidelines. Callan said she’d send the board a copy. They aren’t identical to the United Way guidelines, but were developed with input from that agency.

Peterson, whose district covers Ypsilanti and parts of Ypsilanti Township, then asked if funds from the city of Ann Arbor only served Ann Arbor residents. Callan replied that the city supports agencies that serve residents in Ann Arbor, Ypsilanti and Pittsfield Township.

Peterson expressed concern about the status of smaller nonprofits, those that he called “community-based.” Sometimes those only have a couple of volunteers running a clothing bank or giving some other kind of assistance, he said. Years ago, the county set aside funds for those kinds of nonprofits, but over the years the funds have been going to larger, more “institutionalized” nonprofits, he said. He wanted to make sure the smaller nonprofits could compete within this new funding model.

He also asked whether the Ann Arbor city council or the county board could reject funding recommendations that are brought to them after the review process. It’s “absolutely within your power” to reject the recommendations, Callan said. If that happens, her staff would need to go back to the other funding partners and possibly reallocate the remaining funds. She said the county board has not historically done that – the board has in the past accepted the recommendation of the office of community development (OCD), and she would anticipate that to continue.

Peterson said the board hasn’t rejected recommendations since Callan joined the OCD, but in the past that did happen. He clarified that it would be possible to take 5% from one agency and shift it to another, for example. Callan said it would be possible, though she’d advise against it. She also told Peterson that she was aware of his acute concerns for smaller nonprofits, and felt that this model would actually be better for those groups. With capacity-building grants available for small nonprofits that provide a priority service, they could be strengthened, she said. And there’s nothing to say that small or innovative programs can’t get funded, she added, though there are minimum requirements – like having a functioning board, and meeting basic financial standards. The idea is that taxpayer dollars are accounted for.

Of course there should be accountability, Peterson said. He just wanted to ensure that nonprofits aren’t disadvantaged because of their size, and that the board has some flexibility in allocating funds. He noted that it’s unclear how much funding will be available from the county in 2012 and 2013. [The county faces a projected $20.9 million over that two-year period.]

Barbara Bergman said she supported the coordinated funding approach. It’s one thing if a small nonprofit can meet the criteria, she said, but the county isn’t a research organization – they’re not there to fund the development of someone’s good idea. They need to fund groups that demonstrate best practices. She said she won’t vote against the OCD recommendations: “I’m not willing to put a pot (of money) over here for my bright ideas.” Bergman added that it saddens and scares her that holes in the safety net are growing, and that the county can’t meet all the needs of its residents. She would hope that in the future, other funders would join the coordinated funding initiative, too.

Yousef Rabhi, whose district covers part of Ann Arbor, praised the city for funding work that serves other communities as well – it reflects the fact that Ann Arbor’s fate is tied to the fate of the county, he said. Referring to the statement that every dollar invested yields $10 in other funding, he asked Callan how much of that leveraged $10 goes directly toward programs and services. She estimated $7-$8. Wes Prater then clarified that a $5 million investment by the five funders would bring $35-40 million to the community from other sources. When Callan confirmed that it would, Prater replied, “Well, get going!”

Outcome: Commissioners unanimously voted to appoint Hazelette Robinson, Susan Sweet Scott and Michael Smith as county representatives to a review committee for the coordinated funding of human services nonprofits.

Delinquent Tax Borrowing

On the board’s Feb. 16 agenda was a resolution permitting the county treasurer to borrow against the amount of delinquent property taxes in all 80 taxing jurisdictions throughout the county, including cities, townships, schools systems and libraries, among others.

The process works like this: After Feb. 28, these jurisdictions turn their delinquent taxes over to the county – the first step in a long tax foreclosure process. The taxing jurisdictions are reimbursed for that amount by the county, and the county treasurer assumes responsibility for collecting the delinquent taxes. It’s a standard practice that’s conducted annually at this time of year. The funds that the county borrows – an amount not to exceed $50 million – are used for cash flow purposes, to fund operations for the first half of the year. The delinquent tax collections are receivables on the bonds.

Delinquent Tax Borrowing: Commissioner Comments

County treasurer Catherine McClary did not give a formal presentation about this request, though later in the board meeting she presented her annual treasurer’s report. However, some commissioners had questions on the bond issue.

Dan Smith thanked McClary, saying that as someone who previously served on a township board, he appreciated the fact that the county made the township whole early in the year. [Smith was a former trustee for Northfield Township.]

Conan Smith noted that the county covers the potential risk to other jurisdictions, and asked McClary to comment on how economic conditions are affecting this process.

McClary reported that the amount of delinquent taxes turned over to her office for collection has more than doubled in the past seven years. For the last two years, the county was not able to self fund the delinquent taxes. Last year, there was about $29 million in delinquent taxes, and she expects a small increase this year. But the request is to borrow the same amount as last year – an amount not to exceed $50 million. She commented that the figure “takes my breath away.” One change is that interest rates on the bonds will be higher this year than last year, due to the tightening credit markets.

McClary explained that every year, the treasurer’s office sets up a separate delinquent tax revolving fund, where money is deposited as the delinquent taxes are collected. If the county is unable to collect the taxes by year’s end, they charge back that uncollected amount to the taxing jurisdiction, charging them the same interest that’s charged for the bonds – last year, interest was around 2%, McClary said.

McClary characterized delinquent taxes as a leading economic indicator. For residential properties, it’s starting to level off, she said, but there are increases in commercial properties, and especially in undeveloped vacant land.

Yousef Rabhi asked about the cost of administering this process. Is that money recovered, or is that simply a service the county provides? McClary explained that state law requires a county’s general fund to pay for the salaries of the treasurer’s office. They don’t charge taxing jurisdictions an extra agent’s fee for handling the delinquent taxes – the county could do that, she said, but when she tried to bring forward a resolution to that effect last year, she was asked not to do it. There is interest charged on the delinquent taxes, she said – 1% per month for the first year, and 1.5% per month for the second year, plus a 4% administrative fee. Those funds are also deposited into the delinquent tax revolving fund.

When the bonds are paid off, any remaining money in the revolving fund is transferred to the county’s capital projects fund, to be used as the board and administration sees fit, McClary said. Last year, $5.5 million was transferred – double the amount that had been budgeted.

Treasurer’s Report

Every year, the county treasurer gives a report to the board. This year, commissioners began by giving Catherine McClary a round of applause – her presentation was the last major agenda item, and it followed an unanticipated, lengthy discussion by the board about how they handled their budget retreats and administrative briefings. [See report below.] They thanked her for her patience.

McClary described how her office manages the investment portfolio for the entire county – at the end of 2010, cash and investments totaled $147.545 million. That figure is invested in the following ways: $56.509 million in certificates of deposit (CDs) and money market accounts; $45.815 million in commercial paper; $35.660 million in U.S. treasuries and agencies of the U.S. government; and $9.561 million in bank accounts, including deposits in the Ann Arbor State Bank, Bank of Ann Arbor, Chelsea State Bank and Michigan Commerce Bank, among others. [.pdf file of two-page treasurer's report]

She clarified that the $147 million includes more than just the investments made using general fund money, which had only about $30 million in its account at year’s end. In addition to general fund monies, the total includes funds from the Washtenaw County Road Commission, Washtenaw Parks & Recreation Commission, funds from the water resources commissioner’s office, and the Washtenaw Community Health Organization (WCHO).

She reported that 2010 revenue from her office totaled $10.6 million, from five main sources: $737,602 from investment earnings; $6.262 million from delinquent taxes and fees; $3.539 million from the accommodation tax; $37,922 from dog licenses; and $24,971 from fees for tax searches.

Michigan’s Public Act 20 governs the types of investments that her office can make, McClary said, and decisions also conform to the board’s investment policies. The 2010 average weighted yield was 0.559% – “that’s not the best part of the presentation tonight,” she said, adding that nonetheless it outperformed the three-month Treasury benchmark of 0.12%.

The treasurer’s office is charged with safeguarding public funds, and they do that through diversifying investments and implementing strong internal controls, McClary said. Their other duty is to collect delinquent property taxes. These services raise money so that the county can fund its mandated activities, as well as support other programs that are board priorities – like those discussed earlier in the meeting, she said, for children, veterans, or others in need.

They do this with a staff of 11.5 employees, McClary said. They take receipt of a half-billion dollars each year, though much of that is a pass-through. For example, the treasurer’s office collects the Michigan education tax, which it passes on to the state. However, she noted, for the two weeks that the county holds those funds before passing them on, they were able to earn $30,000 in interest income.

McClary had spoken briefly about delinquent tax collection earlier in the meeting – when commissioners authorized her office to borrow up to $50 million to temporarily cover the cost of 2010 delinquent taxes for the county’s 80 taxing jurisdictions. She elaborated on the issue, saying that in order to get a top credit rating, it’s important that the county demonstrates strong management. The credit markets are tightening and rating agencies are especially scrutinizing public funds, she said. McClary reported that she’s working with county administrator Verna McDaniel and Kelly Belknap, the county’s finance director, to meet with the some of the major rating agencies, with the goal of ensuring that the county retain a top rating.

Regarding interest income, McClary acknowledged that the rates are very low, but the county’s earned income was well above the benchmark rate. Interest income on all county funds was $737,602 for 2010. The interest income for the general fund was considerably lower, she noted, in part because the amount of general fund dollars that can earn interest is low. At the end of the year, there was $30 million in the general fund account – of that, $17.5 million had been transferred in from the county’s revenue-sharing reserve fund.

McClary also reported on revenues from dog licenses, which totaled $37,922 in 2010. She thanked the board for approving a change last year that allows her office to issue multi-year licenses – that’s been well received by the public, she said. What’s not been as well received is an increase in the license fee, which was raised for the first time since 1981. [For spayed/neutered dogs, the fee is $12 for per year. It costs $24 per year for dogs that aren't spayed or neutered.]

Her office also collects fees for dog park licenses, and is working with the city of Ann Arbor and Washtenaw County Parks & Recreation to step up enforcement, McClary said. This spring or summer, she’ll likely be bringing a resolution to the board to adopt a civil infractions ordinance for dog licenses. Right now, not having a license is a criminal misdemeanor of 90 days in jail or a $500 fine, which McClary indicated is excessive. For a civil infraction, you’d simply be issued a ticket. The treasurer’s office is coordinating with Kirk Tabbey, chief judge of the 14-A District Court, who is interested in having the court help with collections, McClary said.

After adopting a civil infractions ordinance, a final step would be to conduct a dog census, McClary said. There are many unlicensed dogs in the county, she said, but without an ordinance in place, it doesn’t make sense to do heavy enforcement. She said they anticipate dog licenses will be a future revenue stream. They’re also exploring having a fee to pay for sheriff’s deputies who do kennel inspections, and perhaps adding a fee for checks that are returned for insufficient funds.

Treasurer’s Report: Mortgage and Tax Foreclosure Prevention

In additon to the financial overview, McClary reported on two programs that her office oversees: Mortgage foreclosure prevention and tax foreclosure prevention.

Efforts at tax foreclosure prevention aren’t supported by the general fund, she noted – it’s paid out of fees attached to a parcel after it enters foreclosure. Still, she thanked the board for approving the jobs in her office that deal with the program – including two social workers, who were probably the first social workers in the country to be hired by a county treasurer’s office, she said.

Each year, her office handles about 11,000 parcels with delinquent taxes. Her office works with owners to try to help them pay off the taxes, but that doesn’t always happen. Since 1999 – when action was taken on properties that had delinquent taxes from 1997 – the county foreclosed on 539 parcels. Of that total, 391 foreclosures occurred last year.

The properties that the county has lost money on – those that were sold at auction for a lower price than the delinquent taxes that were owed – were on undeveloped vacant land, McClary said. Right now, there are 900 parcels in the foreclosure process, McClary said, including 550 parcels of vacant land. She or her staff have talked to the owners and lenders on each of those 550 parcels, and at this point expect to collect on only 150 of them.

Regarding mortgage foreclosure prevention, the treasurer’s office only handles that directly when tax foreclosure is also involved. Beyond that, they partner with other agencies, including the Michigan State University Extension program and the county office of veterans affairs.

McClary urged people to contact her office if they needed help: either via email at taxes@ewashtenaw.org or by phone at 734-222-9595. Even if the county can’t help directly, her staff can refer them to the right resources, she said.

McClary described three waves of the mortgage foreclosure crisis. The first wave they saw was caused by predatory loans, which were easy to modify because interest rates were too high and they primarily affected vulnerable populations. The next phase concerned middle-class homeowners who had prime credit, but who lost their jobs and could no longer afford their mortage. These are the hardest to deal with, McClary said, because the income just isn’t there. The final phase are walkaways – owners who just leave their property because they owe more than the value of the parcel. That kind of foreclosure is the most detrimental to neighborhoods, she said, because the properties are simply abandoned.

Foreclosure prevention isn’t a mandated service, McClary noted, but with the board’s support, she said her office has been able to provide a valuable community service.

Kristin Judge noted that SEMCOG – the Southeast Michigan Council of Govvernments – recently released foreclosure data for counties in this area. Percentage-wise, Washtenaw is doing well compared to other counties, and she thanked McClary for her work.

Veteran’s Affairs

Commissioners gave initial approval to create a new full-time position – a veterans relief program specialist – as part of a minor restructuring in the county’s veterans affairs department. The restructuring includes downgrading an administrative assistant position to office coordinator. The moves are expected to result in about $20,000 in structural savings for the department. The board will likely take a final vote at its March 2 meeting.

The new position is estimated to cost $75,000 and will be funded from the indigent veterans relief fund, which gets proceeds from a dedicated millage and has a fund balance of $250,000. The job will entail coordinating the county’s veterans relief efforts and doing public outreach activities.

At Wednesday’s meeting, several commissioners praised the department and its leader, Michael Smith. All four of the board’s new commissioners – Dan Smith, Rob Turner, Alicia Ping and Yousef Rabhi – had visited the department recently, as part of an orientation tour of county facilities. They all applauded the staff’s efforts to assist local veterans. Ping cited the ability to leverage local dollars for state and federal funds, while Turner said the department served as an example of what he’d like to see all county units do – provide great services efficiently.

Rabhi asked about the percentage of staff salaries that are paid from the general fund, versus the veterans relief fund. Smith clarified that the percentages wouldn’t change. The general fund pays for 90% of his salary, 60% of the salary for analyst and service officers, and 57% of the department’s assistant – the millage pays for the rest. The percentages are based on the amount of time each staff member spends on indigent veterans relief activity – the millage can only fund those activities, he explained.

There’s been an increased demand for veterans relief, Smith said – that’s why the new position will be paid exclusively from the millage proceeds.

Smith gave credit to county administrator Verna McDaniel and her leadership as being an inspiration to him. The state has 19th and 20th century laws to take care of 21st century warriors, he said. Reservists are coming home to their communities with a plethora of problems, he said. Some counties haven’t even levied the veterans relief millage – Wayne and Macomb counties were sued over the issue, and Macomb still hasn’t levied it. Without those millage funds, Smith said, his department wouldn’t have been able to access the other resources it is tapping. He told the board they’d been brave to comply with Public Act 214, which authorizes the county to levy the millage without voter approval. [The 1/40 mill is expected to raise an estimated $362,415 this year. It was first passed two years ago, and cost homeowners $2.50 for every $100,000 of a home’s taxable value.]

Smith also told the board that he planned to offer internships later this year to disabled veterans who are pursuing degrees at local universities. The U.S. Dept of Veterans Affairs pays for such internships, he said – it would help the interns, provide more services to the local veterans community, and not cost the county.

Rabhi told Smith that the veterans affairs department had been his inspiration at the recent board retreat, when he’d suggested that the county provide help desk services to residents – he’d seen that model in action at Smith’s department.

Trial Court Memorandum of Understanding

Without discussion, commissioners gave final approval to a memorandum of understanding with the Washtenaw Trial Court, outlining the rights and responsibilities of each unit of government. Initial approval was given at the board’s Jan. 19, 2011 meeting, which included a presentation by chief judge Donald Shelton. A previous MOU expired in December 2010.

As part of the agreement, the county will fund operations of the trial court in four “lump sums,” allocated separately to: (1) the 22nd Circuit Court (including circuit court administration, juvenile-general fund, friend of the court and community corrections); (2) Probate Court (estates & mental health); (3) 14-A District Court; and (4) the child care fund. The county will not have line-item budgeting authority, but the trial court has agreed to submit a bi-annual line-item budget, and provide quarterly financial projections. The amount of the lump sum payments has not yet been determined.

Later in the meeting, during the time for communiciations from commissioners, Rob Turner and Rolland Sizemore Jr. reported that they’d had recent meetings with Shelton and other staff of the court, regarding renovations to the downtown courthouse. They said Shelton has indicated that he hopes the renovations will be finished in April, but Sizemore said they told him there are no guarantees – “and I think he understands that,” Sizemore added. Bids are also being solicited for the demolition of the Platt Road courthouse, where the juvenile court is located. The juvenile court will be relocated to the downtown courthouse, after renovations there are completed.

Where Should Commissioners Conduct Business?

A seemingly routine item on Wednesday’s agenda led to an animated debate that revealed disagreements among commissioners about how they conduct their business.

The discussion began when Ronnie Peterson asked about a resolution to approve a timeline and guidelines for the 2012-2013 budget process. Where were the guidelines? he wondered – they hadn’t been included in the meeting’s board packet. [The document had been part of the board's Jan. 19, 2011 meeting packet, when they gave initial approval to the process. .pdf file of budget timeline/guidelines]

Peterson then asked whether the board retreats were part of that process. Conan Smith, the board chair who has led the two budget retreats this year, clarified that the retreats are part of the budget process. The outcome will be a formal resolution of guidelines and priorities that the board will post, get public input on, and vote to approve, ideally at a board meeting in March, Smith said. The next retreat – possibly the last one – had been scheduled to follow the board’s Feb. 23 administrative briefing. [See Chronicle coverage of the Jan. 29 and Feb. 9 budget retreats.]

Commissioner Ronnie Peterson.

Peterson said he wished that the retreat discussions would be more in the public eye, held at the boardroom table and televised. [The retreats, unlike the board meetings and working sessions, have not been televised on Community Television Network.]

Budget decisions will affect the more than 1,000 county employees as well as constituents who depend on the county for services, he said. This is the board’s main job, he said, and he didn’t understand why they weren’t doing it more publicly – at a working session, for example.

The county will be downsizing, and some departments may be eliminated or consolidated, he said. People want to know how their tax dollars are spent – it’s frustrating when the budget is delivered and people don’t have the opportunity to understand the complexity of the decision-making. People distrust government because they don’t have the opportunity to see how it works, Peterson said.

Media coverage isn’t sufficient, he continued – the press only covers what they think is hot at the time, but people want more. Especially as the county faces a deficit, the public “should see everything we do.”

Peterson then moved an amendment to the budget timeline/guidelines resolution: to hold the budget retreats and the administrative briefings in the boardroom – where both could be televised. [Briefings are currently held in a small conference room.] Kristin Judge quickly seconded the motion.

Barbara Bergman noted there would be a cost to televising the administrative briefings, though she didn’t know what that would be. She also described benefits to the current format, which she said is more informal and allows for interesting give-and-take – and there’s less risk of appearing ignorant if you have questions. The meetings are open to the public and attended by the press, she noted. [The Chronicle attends all administrative briefings; there are rarely any other media or members of the public in attendance.] Meeting in the more formal boardroom venue would stifle discussion, she said.

Judge pointed out that the city of Ann Arbor has been using the boardroom and county staff to televise their meetings while renovation work is done at city hall. The county hasn’t charged the city for that, she noted. If the county can do it for Ann Arbor, surely they can televise meetings for county residents, she said. And while she understands the desire not to feel ignorant, that can be handled in other ways – by asking staff for clarification privately, for example.

The briefings are open meetings and deliberations are done there, Judge said, though some of the newer commissioners might not have experienced it yet. But many people expect to see the deliberations at the televised meetings, which they can also watch online. She described herself as an advocate for the Freedom of Information Act and Open Meetings Act – saying this is one of the reasons she got involved in local government. The administrative briefings “should be in the public eye.”

Wes Prater also supported that view. It might be a bit inconvenient and require some adjustment, he said, but it’s the proper thing to do.

Rob Turner disagreed. He said he didn’t care if the meetings were televised, but he wanted to keep the more informal setting. They were able to get a lot done by working closer together, or in small groups. How would that be televised? Would they have to rebuild the boardroom to accomplish that? He said he planned to vote against the amendment.

Yousef Rabhi reiterated the statements of other commissioner who noted that the retreats and briefings are open and that the press attends. He offered a compromise – that future retreats be held immediately after the working sessions in the boardroom, so that they could be televised. [Rabhi chairs the working sessions.] As for the briefings, he suggested that they agree not to deliberate, and simply listen to Joanna Bidlack – the staff member who leads the meetings – as she reviews the agenda items. That would save the cost of televising.

Dan Smith felt that Rabhi’s suggestions addressed Peterson’s concerns. The staff does a good job of reviewing the agenda at the briefings, he said, but sometimes the discussion goes off topic. He noted that at a recent briefing, he had to steer the group back to the agenda item. [He was referring to the Feb. 9 briefing, when Judge proposed adding a resolution to the agenda that would allow the county to join a dental discount program being piloted by the National Association of Counties (NACo). The ensuing discussion focused on the merits of such a program – after several minutes, Smith noted that they were getting ahead of themselves and should focus on whether to put the resolution on the agenda. It was not added.]

Leah Gunn proposed amending Peterson’s amendment, to keep the briefings as they are and move the retreats to the working sessions. When Judge objected – noting that it would reverse the intent of the original amendment – corporation counsel Curtis Hedger agreed, and Gunn’s amendment was modified to say retreats would immediately follow working sessions.

Peterson recalled that he wouldn’t have been allowed to join a country club years ago – he will never find a backroom where it’s acceptable to conduct the public’s business. He said he worked hard to tear down those walls, and he was shocked and alarmed to hear people who called themselves progressives shutting others out of the process.

Outcome on Gunn’s amendment: The board passed the amendment to hold the budget retreats immediately following the board’s working sessions, and in the same venue, with dissent from Conan Smith.

Peterson’s amended amendment was then considered: To hold future retreats in conjunction with working sessions, and to hold administrative briefings in the boardroom, where they can be televised.

Both Judge and Prater argued that deliberations did occur during the briefings, and the meetings should be held in a more public venue. If there were no deliberations, Judge said, she’d have no problem with the meetings held where they are now. But “it has not been that way since I’ve been there,” she said. They’ve done a lot of the people’s business in that small conference room, and it’s made her very uncomfortable. Prater said the briefings are really unnecessary – Bidlack could simply review the agenda with the three board leaders: the chair of the board (Conan Smith), the chair of the ways & means committee (Rolland Sizemore Jr.), and the chair of the working sessions (Yousef Rabhi).

Conan Smith weighed in, saying he wasn’t supportive of Peterson’s amendment. Deliberations could and should happen in different contexts and environments. They have different kinds of conversations that don’t happen at the boardroom table – that’s important for good government, he said. The intent of the Open Meetings Act isn’t to situate people physically or require televised meetings, Smith said. It’s to ensure that when they make a decision, it’s done in public. “The process of deliberation isn’t subject to the Open Meetings Act,” he contended. When they face contentious topics – as they inevitably will, he said – they need a space to have that kind of dialogue, to arrive at a solution.

Prater asked Hedger to review Smith’s statement. Hedger, the county’s corporation counsel, clarified that deliberations are, in fact, subject to the Open Meetings Act. The exception is when the board holds an executive session, but that’s only limited to certain purposes, he said. But both deliberations and decision-making are subject to the OMA.

Saying she agreed that briefings shouldn’t be used for deliberations, Gunn then proposed setting a new rule to limit discussion at those meetings. Hedger advised dealing with this at the next ways & means committee meeting, since it would be setting board policy. [The board's ways & means committee, on which all commissioners serve, immediately precedes its regular board meetings. Resolutions are first reviewed and voted on at ways & means before being considered for a final vote at the regular board meeting.]

Saying he meant no disrepect to Peterson’s past experience, Turner said he agreed with Conan Smith. The backroom meetings of past years, to which Peterson referred, weren’t open to the public or the press. The board’s briefings are, he said. Good deliberations happen there, he said – deliberations that wouldn’t occur in the more formal boardroom setting.

Gunn then proposed separating out the two issues in Peterson’s amendment, and suggested voting on the budget retreat first – to hold future budget retreats during working sessions.

Peterson clarified that the retreats would be held after the regular working session, and expressed dismay that such an important issue – the budget – would come last.

Outcome: The amendment to hold future budget retreats during working sessions passed, with dissent from Alicia Ping, Conan Smith, Dan Smith and Rob Turner.

The discussion then focused on the administrative briefings. Peterson noted that he hadn’t attended one in years. [Since The Chronicle began covering the briefings when the publication launched in September 2008, Peterson has been the only commissioner who hasn't attended a single briefing.] He clarified that the briefing included an agenda, opportunity for public comment, and that minutes were taken. [The briefings are attended by deputy county clerk Jason Brooks, who records the minutes.]

Peterson said that until about eight months ago, he wasn’t aware that decisions were being made at these briefings – it didn’t used to be that way, he said. He’d found out that some of the things he advocated for – including the land bank – had been killed in the briefings. It’s a cop-out to say that the press is there, he added. They were elected to the board of commissioners, not the board of administrative briefings. He noted that the conference room where briefings are held is so small that there’s not enough room for the public to attend. “That’s not the way you do government business,” he said.

Regarding some commissioners who don’t feel comfortable having these informal briefings televised, Peterson said that those who make jokes about staff members “need to check yourself, because you need to stop.” Everyone should be respected, he said. And for those who are uncomfortable, they should get another job. “We’re not here for a comfort zone,” he said. “You find your loving at home.” The board isn’t a lovefest, he said, it’s a place to do the government’s business. He said he knows people are upset with him about raising these issues, but whatever he might say in private he’ll say in public, too.

Rabhi noted that he’d heard both his experience and his progressiveness called into question that night, and said he’d yield on the first issue. [Rabhi took office in January, and at age 22 is the board's youngest member.] What’s come out of this debate is the question of what an open meeting is, he said. Not everyone has a television or Internet connection – that’s not what makes a meeting open. He agreed that they should do the public’s business on television if it reaches more people, but he argued that they don’t do business at the briefings. He said he yielded on the question of his experience because perhaps deliberations have occurred in the past. He supported Gunn’s proposed rule change to limit discussion. He said he agreed strongly with Peterson about the importance of open government, but was approaching it a little differently.

Judge told Rabhi that lack of experience can be a positive thing – she didn’t intend it as a criticism. It brings new ideas and compromise, and she appreciated that. However, she said it saddened her to hear a public official say they can have better conversations when the cameras are off. She would hope they could have that dialogue at the boardroom table, noting that hundreds of employees are watching. She said she’d never be comfortable saying it’s better to do board business elsewhere. As for having dialogue, “if we all agree, then we’re probably not going our jobs.”

Turner told his colleagues that he doesn’t often get passionate, but that he was now. Pounding his fist on the table, he said the briefings aren’t “backroom” meetings – they’re open to the public. What’s more, he said, “I have never talked about anybody’s character or said anything derogatory about staff members.”

Peterson, who sits next to Turner, said that in his remarks he wasn’t referring to Turner.

Turner again said he didn’t care if any of the meeting are televised, but that it’s important to have the informal setting. He learns from the give-and-take, much more so than in formal sessions. He noted that having served on the Chelsea school board for nine years, he’s very familiar with the Open Meetings Act. He knows that their discussions at briefings are open, but values the informality. “Please don’t take that away from me.”

Bergman agreed with Turner. If the meetings are more formal, the discussions will be taken out of view of the public and press, she said – it’ll become “telephone buzz.” She also objected to Peterson’s comparison of these meetings to racial or religious discrimination. Bergman, who is Jewish, said she’s been the subject of discrimination, when a house wasn’t sold to her family. “It ain’t the same,” she said.

At this point, Gunn called the question – a parliamentary move that prompts action on the motion that’s on the table. The motion to call the question passed, and a roll call vote was taken on the amendment.

Outcome: The amendment to the budget timeline/guidelines – to hold the administrative briefings in the boardroom, where they can be televised – failed, with support only from Judge, Peterson and Prater. The resolution adopting the budget timeline/guidelines was later approved as part of the regular agenda.

Misc. Communications, Commentary

There were several communications from commissioners, and one speaker during the regular board meeting’s time for public commentary.

Public Commentary

Raymond Mullins introduced himself as co-founder of The Loyal Opposition to the Status Quo (LOSQ), a nonprofit group launched to address disparities between African-Americans and Caucasians, including the academic achievement gap, imprisonment and poverty. [Mullins, former president of the Ypsilanti/Willow Run chapter of the NAACP, spoke on the same subject at the January 2011 meeting of the University of Michigan board of regents.] He said he was there to plug the group’s Fourth Annual Celebration of African-American Life in Washtenaw County, on Feb. 26 from 10 a.m. to 4 p.m. at the Peace Neighborhood Center in Ann Arbor. They’re inviting the whole community, he said, not just African Americans. The free event will feature panel discussions and exhibits, and will highlight accomplishments of people from Washtenaw County who’ve distinguished themselves in ways that aren’t widely known. Mullins told the board that he hoped this was the start of a beautiful friendship.

Rob Turner said he’d met Mullins at the recent African American Writers Celebration at the Ypsilanti District Library, and he plans to attend the Feb. 26 event as well.

Rolland Sizemore Jr. suggested that Mullins contact the B.Side – an entrepreneurial program at Eastern Michigan University. He described the B.Side as an excellent program led by Jack Bidlack, the husband of Joanna Bidlack, who works in the county administration office.

Communications from Commissioners

Several commissioners gave liaison reports from the committees and commissions on which they serve, as well as other various communications. Highlights include:

• Conan Smith and Rolland Sizemore Jr. both serve on the Washtenaw County Parks & Recreation Commission. Smith reported that the commission recently approved $600,000 in grants for the Connecting Communities trail program. The projects include one in Pittsfield Township that will be part of a non-motorized path eventually connecting Saline to Ann Arbor. Sizemore noted that the commission also approved $250,000 for a project to build a boathouse, to be used by crew teams, and a fishing dock on Ford Lake. The project is in partnership with the state and Eastern Michigan University, he said. Kristin Judge noted that it will be the only boathouse in Michigan that’s ADA compliant, and she thanked Sabrina Gross of Pittsfield Township for her efforts on the project.
• Rob Turner, a liaison to the Washtenaw County Road Commission, said the road commission is hoping that the rest of the winter is a mild one, given their budget constraints. [.pdf of 2011 road commission budget] Two mechanics are retiring and the commission is replacing them – they’re down to six mechanics, he said, though the standards for their fleet size call for 11.
• Yousef Rabhi gave reports from two groups: the Western Washtenaw Recycling Authority is moving to single-stream recycling, which Ann Arbor adopted last year, and the Washtenaw Area Transportation Study (WATS) has changed a policy toward employees, becoming an at-will employer. He also reported that Gretchen Driskell, the mayor of Saline, is urging local officials to contact state and federal representatives to advocate for keeping the Community Development Block Grant program. Communities in the county receive several million dollars each year in federal CDBG funds, but the program is targeted for deep cuts in the proposed federal budget.
• Wes Prater, a liaison to the county’s public health advisory board, highlighted a letter from a resident of Lodi Township, Melissa Higgs, regarding the county-certified inspection of a water and sewage disposal. [.pdf of Higgs' correspondence] Prater said the letter, which is highly critical of the county operations, troubled him. He asked county administrator Verna McDaniel to make sure that someone followed up on it.

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

Next meeting: The board’s administrative briefing, to preview the March 2 agenda, will be held on Wednesday, Feb. 23 at 5:30 p.m. in the offices of the county administration building, 220 N. Main St. The board’s next regular meeting is on Wednesday, March 2, 2011 at 6:30 p.m. at the county administration building, 220 N. Main St. The Ways & Means Committee meets first, followed immediately by the regular board meeting. [confirm date] (Though the agenda states that the regular board meeting begins at 6:45 p.m., it usually starts much later – times vary depending on what’s on the agenda.) Public comment sessions are held at the beginning and end of each meeting.

In a cover memo accompanying the resolution, county treasurer Catherine McClary reported that the amount of delinquent taxes turned over to her office for collection has more than doubled in the past seven years. And for the last two years, the county was not able to self fund the delinquent taxes. McClary expects a small increase in delinquent taxes this year, but asked to borrow the same amount as last year – an amount not to exceed $50 million. However, she expects interest rates to be higher this year than last year, due to the tightening credit markets.

This brief was during the county board of commissioners meeting at the Washtenaw County administration building. A more detailed report will follow: [link]

The briefing, which previewed items on the March 3 board agenda, drew more than just commissioners and administrative staff. In addition to The Chronicle, two others attended Wednesday’s meeting: A candidate for the 11th District county board seat, currently held by Jeff Irwin; and the county treasurer, Catherine McClary.

McClary was there to answer questions related to two resolutions she had proposed – only one of them made it onto the March 3 agenda. In discussing the resolution that will be considered on Wednesday, McClary noted that delinquent taxes are on the rise, expected to reach around $40 million this year – more than double the amount just five years ago.

Refugee Health Program

Commissioners voiced several concerns over a new refugee health program, funded with $7,800 from the state Dept. of Community Health’s Office of Refugee Services. The program would pay for health screenings at the county health department’s clinic at 555 Towner St. in Ypsilanti.

In briefing the commissioners, Joanna Bidlack of the county administrator’s office reported that about 50-100 refugees settle in Washtenaw County each year, primarily in the Ypsilanti area. Currently they get health screenings from a clinic in Dearborn. The county was approached about this program by the state and the Jewish Family Services nonprofit, which serves as a refugee resettlement agency.

According to a cover memo on the resolution, the proposed medical screenings are designed to identify people with communicable diseases, or whose health conditions may impact resettlement – by affecting their ability to get a job or attend school, for example. The screenings would also identify conditions that might be grounds for exclusion (affecting their refugee status) or that would be significant enough to alert authorities at the relevant consulate.

The county health department currently provides some services to refugees – including tuberculosis screening and immunizations – without reimbursement.

In discussing the program, Wes Prater asked if these refugees are illegal immigrants. “I think we need to know if they’re illegals,” he said. Ken Schwartz said the status of “refugee” was a legal designation. His concern was whether they’d be bringing communicable diseases into the county.

Barbara Bergman raised another issue – if the screenings turned up a medical condition that needed treatment, then what? Who would pay for treatment?

Bidlack said she’d follow up, prior to their March 3 meeting, on the issues raised by commissioners.

Funding for Low-Income Families

A nearly $600,000 federal grant that requires $240,000 in county matching funds stirred discussion at Wednesday’s briefing. The board will be voting on a resolution to accept the funding at their March 3 meeting.

This community services block grant, administered by the county’s Employment Training & Community Services (ETCS) department, will help pay for a range of services for low-income families, including food assistance, job training and emergency emergency services.

The funds must be used for families at or below the 125% of the poverty level – for a family of four, they’d need to be making $27,000 or less to qualify, Joanna Bidlack told commissioners. Usually, eligibility is in the 200% or lower range.

“That’s an awfully mean grant,” Barbara Bergman said. Her objection was that the funding was too restrictive, and that perhaps the county’s share could be better used to serve a broader range of residents.

Wes Prater pointed out that the program is designed to help extremely low-income residents. “Other programs do exactly what you say, Barbara,” he added.

For Leah Gunn, the benefit was the matching funds. The county is leveraging its $240,000 into a total of $840,000, she said, and she’d hate to lose that additional funding.

Bergman conceded those points. “I’m really angry at miserly programs like this,” she said. “But half of something is better than all of nothing.”

Borrowing for Delinquent Taxes

Washtenaw County treasurer Catherine McClary attended Wednesday’s briefing – a resolution she’d proposed had been added to the board’s March 3 agenda. But commissioners decided not to add a second agenda item she had put forward.

The resolution that’s on the March 3 agenda permits the treasurer to borrow against the amount of delinquent property taxes in all 80 taxing jurisdictions throughout the county, including cities, townships, schools systems and libraries, among others. After March 1, these jurisdictions turn their delinquent taxes over to the county, and are reimbursed for that amount. The county treasurer then assumes responsibility for collecting these delinquent taxes.

In a cover memo to the board, McClary wrote that delinquent taxes have been increasing. Five years ago, the delinquent amount was $20 million – last year, that grew to $36 million. McClary expects it could reach as high as $40 million this year, and plans to borrow $50 million to hedge her bets. From the memo:

This bond issue is needed more urgently this year than in the past 13 years that I have served as County Treasurer. For the first time last year, we were not able to self fund our delinquent taxes. This year the County is facing cash flow issues more acute than in the past. The County ended 2009 with approximately $29 million dollars in cash in the General Fund of which $24 million represented a transfer in from the Revenue Sharing Reserve Fund. We will need the borrowed funds to operate the first half of this fiscal year.

This is a standard process, and commissioners treated it as such.

But they were not enthusiastic about a second resolution that McClary had put forward – one that corporation counsel Curtis Hedger did not add to the draft agenda for the March 3 meeting. Hedger told commissioners that McClary was requesting that the board appoint the treasurer as a special agent, which would give her certain powers. One of the powers it would give the treasurer is the ability to supplement her salary by up to 20%.

McClary objected to Hedger’s description, saying that the salary supplement isn’t in the resolution she proposed and that she’s made it clear in writing that she wouldn’t be increasing her salary. Hedger noted that the authority rests with the state statute that outlines the authorities of a special agent, not with the resolution granting her that status.

Hedger said the agency resolution is a regular request and that in the 16 years he’s been on the job, the board has never put it on the agenda. Commissioner Leah Gunn said that when it was discussed at a previous briefing, there’d been unanimous consent not to consider it.

Commissioner Jeff Irwin asked McClary what the advantage would be to passing the resolution. It would give the county’s budget office more flexibility, McClary said, to fund the treasurer’s office from the county’s general fund or from the delinquent tax fund.

Commissioners agreed not to put the special agent resolution on the agenda.

Bond Refunding in Sylvan Township

The board is being asked to approve a bond refunding for Sylvan Township, which would restructure the debt, lower the township’s bond payments and save an estimated $485,000 over the life of the bonds.

In 2001, the county issued $12.5 million in bonds for Sylvan Township, which has a contractual agreement with the county to make the bond payments. The township, located west of Chelsea, used the funds to build a water and wastewater treatment plant, intending to serve future development. The plan was to use revenue related to that development – from connection fees to the system – to cover the bond payments. Since then, however, the economy has soured and development hasn’t materialized.

The township hopes to take advantage of interest rates that are lower than they were at the time the bond was issued. In outlining the resolution, Joanna Bidlack of the county administrator’s office noted that timing is important, because a bond payment is coming due soon.

Some commissioners were concerned about whether the county would “get stuck with the bill.” Curtis Hedger, the county’s corporation counsel, said the county was the guarantor and would be required to pay, but they had several options. One of those would include going to court and getting a judgment levy – allowing the county to levy a court-ordered tax on residents to cover the bond payments. Such a tax would be exempt from Headlee rollbacks, he added.

Commissioner Wes Prater noted that this wasn’t the first time they’ve had an issue with Sylvan Township. Ken Schwartz recalled that a developer failed to pay a special assessment a few years ago, which caused problems for the township.

If the board does nothing, Hedger said, the situation will become much more difficult. Another factor: The township is hoping to sell the water and wastewater system, he said. Later, it was clarified that neighboring Chelsea might be the buyer.

Hedger also clarified that the current bond ended in 2023. In the refunding, the county would be putting out a new 20-year bond issuance of $10.4 million, starting this year.

Schwartz reported that the county’s board of public works, on which he serves, had held a special meeting on Monday – this kind of financing is “just one of the things the county does,” he said. Hopefully in four or five years, he added, the situation will right itself.

Internal Financial Controls

A resolution by Wes Prater to form a committee that would review the county’s internal financial controls was on the March 3 draft agenda. Prater had initially brought up the topic at the board’s Feb. 17, 2010 meeting, but it was tabled by commissioners.

At Wednesday’s briefing, Prater said he wanted to remove the resolution from the March 3 agenda and push it back until the county’s auditors had a chance to make a presentation to the board. County administrator Bob Guenzel had previously suggested scheduling a working session to bring in Mark Kettner of Rehmann Robson and county accounting manager Peter Collinson, to review with commissioners the existing internal controls.

Request for Proposals, Drug Discount Plan

Commissioner Jessica Ping brought up two items for consideration that weren’t on the March 3 agenda.

RFP on Spending Patterns

First, she suggested that the county issue a request for proposals (RFP), soliciting bids from vendors who analyze spending patterns and identify ways for the county to cut purchasing costs. At the board’s Nov. 19, 2009 working session, which Ping chairs, commissioners had heard a presentation about this kind of service from Fred Manuel of Alliance Cost Containment.

Barbara Bergman said she didn’t think the board had decided whether they needed this service. Ping said it was just an RFP, not a decision to proceed. Ping also noted the way the business model works doesn’t have a downside for the county. Alliance Cost Containment, for example, takes a percentage of whatever savings it identifies and implements. “It doesn’t cost us anything,” Ping said. “Why wouldn’t we do that?”

Wes Prater supported the RFP, saying that with this economy, they need to be looking at ways of doing business less expensively, “and this is one of them.”

The consensus was to direct staff to develop an RFP. Issuing an RFP does not require board approval.

CVS/Caremark Drug Discount Program

Ping also wanted to move forward on considering a drug discount program offered by CVS/Caremark. Commissioners discussed the program at their Sept. 2, 2009 board meeting. From Chronicle coverage:

Steve Rohm from CVS/Caremark told commissioners that 1,250 counties nationwide participate in the drug discount program. If Washtenaw County participates, cards would be offered to any resident not covered by insurance – there’s no enrollment, fee or registration required, no age limitations or limits on usage. Residents would take the card to participating pharmacies to get some type of discount on their prescription drugs. The discounts would be set by each pharmacy – Rohm said that consumers typically get around a 22% savings. Pet prescriptions are also covered, he said.

At Wednesday’s briefing, Ping said she knows several people who are out of work, who could use the help but who wouldn’t sign up for a county program because of pride. The CVS/Caremark plan is structured in a way that would be more likely for them to participate, she said.

Ping also noted that because the plan is offered to members of the National Association of Counties – Washtenaw County is a member – “we’re already paying for this.”

Kristin Judge, who was taking part in the briefing by phone, said the savings for county residents would be considerable. “I think it would be wrong of us not to do this,” she said. Ping added that the city of Saline is already participating in the program, and that residents have saved over $50,000 in the last six months.

Leah Gunn asked if it would be limited to CVS, or whether participants could use the plan to get discounts at other pharmacies. Ping clarified that many pharmacies offer discounts through the plan, including independents like Wenk’s.

Barbara Bergman objected to the program. She said it gave an unfair advantage to CVS, since that pharmacy’s name would be displayed on the cards given to participants. Ping said that it wouldn’t be prominent on the cards.

Bergman said it made more sense if pharmacies would just lower their prices in the first place. Ping pointed out that this was a larger issue over which the board had no control.

Curtis Hedger, attorney for the county, reported that CVS/Caremark agreed to grandfather in existing drug discount plans like the one offered by the Washtenaw Health Plan. [The WHP, designed for low-income residents, has reached capacity and is not accepting new participants.]

Other than that, the contract with CVS/Caremark stipulates that the county can’t use competing plans – that was a concern to some commissioners. Jeff Irwin suggested eliminating that item in the contract. He recalled that at the CVS/Caremark presentation in September, Rohm had indicated they wouldn’t enforce that part of the contract. Gunn noted that as long as it was written into the contract, CVS/Caremark could enforce it, if they wanted to.

Hedger wasn’t sure CVS/Caremark would agree to that change. He said he hadn’t reviewed the contract or talked to their representative since October, and that he needed to review it again. Commissioners agreed to put the item on the March 17 meeting agenda for further consideration.

Public Commentary

The bi-weekly briefings of the county board of commissioners, though informal, must conform to the requirements of Open Meetings Act. That means that a representative from the county clerk’s office – deputy clerk Jason Brooks – attends and takes minutes. There’s also opportunity for public commentary, though typically no one from the public attends.

On Wednesday, however, when Joanna Bidlack asked if anyone wanted to speak during public commentary, all eyes turned to Alice Ralph. Ralph noted the attention, but demurred – she said she’s running for the board’s 11th District seat, and was just there to observe. The 11th District is currently represented by Jeff Irwin, who is running for state representative this year.