Yousef Rabhi (D-District 8), chair of the Washtenaw County board of commissioners, talked with an advocate from the homeless community before the April 2 county board meeting. (Photos by the writer.)

The board ultimately voted to direct county administrator Verna McDaniel to work with community partners to address immediate needs of the homeless. In general, McDaniel has budgetary discretion to spend up to $50,000 on professional services contracts, and up to $100,000 for any proposed goods, services, new construction or renovation. Later in the week, she allocated $35,000 to the Delonis Center – which is run by the nonprofit Shelter Association of Washtenaw County – to keep its nighttime warming center open through April 30. The warming center had originally been slated to close for the season on April 6.

The resolution also directed the administration to develop a plan by May 7 for updating the county’s Blueprint to End Homelessness, which was adopted in 2004 but appears to be dormant. The process of updating that plan is to be completed by Oct. 1, 2014.

Conan Smith (D-District 9) had initially suggested allocating $40,000 to the shelter to keep the warming center open another month. Other commissioners had concerns about throwing money at the shelter without any input from shelter staff, and without knowing specifically how the money would be used. Because the item hadn’t been included on the agenda, representatives from the shelter staff didn’t attend the meeting.

Some commissioners thought there should be a strategic plan in place before any additional funding is given – and they seemed to assume that such a plan doesn’t already exist. Mary Jo Callan, director of the county’s office of community & economic development, noted that the city of Ann Arbor and several other entities are working on this issue, in partnership with the Shelter Association. The board had received a briefing from the association’s executive director, Ellen Schulmeister, at their Feb. 6, 2014 working session.

The vote on the resolution was 6-2, over dissent from Republicans Dan Smith (District 2) and Alicia Ping (District 3), who both objected to the process. Rolland Sizemore Jr. (D-District 5) was absent.

Dan Smith called it “completely and entirely inappropriate” to be making policy and budgetary decisions on the fly, in response to a few people who showed up to speak during public commentary. He supported updating the Blueprint to End Homelessness, but thought it was a discussion that should take place at a working session before taking action at a regular board meeting. Yousef Rabhi (D-District 8) responded by saying that commissioners are elected to work for the people. When people come to the board, it’s important to address their concerns in a serious manner, he said.

Because of the length of the meeting, some men who were staying at the shelter missed the 9:30 p.m. curfew. Typically, anyone showing up after that time isn’t allowed inside. Greg Dill, the county’s director of infrastructure management, contacted the shelter staff and made arrangements for the men to be accommodated.

In other action, commissioners gave initial approval to a two-year pricing proposal – for 2016 and 2017 – to provide police services to local municipalities through contracts with the county sheriff’s office. Some commissioners expressed concern about the financial sustainability of this approach to funding police services, and cited the need for new revenue sources for public safety. Sheriff Jerry Clayton was on hand to present the pricing proposal, and supported suggestions to seek a new funding source. As he’s done in the past, Clayton characterized the issue of public safety as one that encompasses economic development, human services and other aspects of the community.

Commissioners also gave initial approval to a new brownfield redevelopment plan for the Thompson Block in Ypsilanti’s Depot Town, and took final action to add autism coverage to the health care benefits for employees. They postponed action on a resolution related to the county road commission until May 7, following an April 17 working session that will focus on that issue. The board also was briefed on the 2013 audit and comprehensive annual financial report (CAFR), and received an award for financial reporting from the national Government Finance Officers Association.

During communications, Felicia Brabec (D-District 4) reported that the review of applications is underway for the current cycle of coordinated funding, a partnership to fund social service agencies that involves the county, city of Ann Arbor, and several other entities. For this cycle, 105 applications were received, representing $8.7 million in requests. The amount of available funding this year from all partners is $4.4 million. “So it’s a difficult, difficult process,” she said. Funding recommendations will be brought to the board in May.

On April 2, the board also honored five local businesses and institutions with “healthy workplace” awards, and recognized the Ann Arbor Community Center for 91 years of service.

Funds for Homeless Shelter

This year, the issue of homelessness has been highlighted during public commentary at several county board meetings. That was again true on April 2.

Washtenaw County owns the Delonis Center building at 312 W. Huron in Ann Arbor, but does not operate the shelter. Operations are handled by the nonprofit Shelter Association of Washtenaw County, led by executive director Ellen Schulmeister. Schulmeister had briefed commissioners about services for the homeless at their Feb. 6, 2014 working session. Her briefing had come in response to advocacy from several homeless advocates at the board’s Jan. 22, 2014 meeting, when commissioners had also discussed the need to do more.

The county budget included $51,230 for the Delonis Center in 2013 and that amount was increased to $160,000 this year as part of the regular budget approval process late last year. The county funding is set to increase again to $200,000 in 2015 and remain at that level through 2017. The Shelter Association’s annual budget is $2.583 million.

The Delonis Center was built to house 50 beds, but there have been 75 beds since 2009. In addition, the Delonis Center operates a warming center in its dining room, for a maximum of 65 people – although during the harshest weather, more are accommodated. The warming center is open from mid-November through April 6. There is no drug testing, but people are given a breathalyzer test and are not admitted into the shelter if their blood alcohol level is over .10 – above the legal intoxication level of .08.

Funds for Homeless Shelter: Public Commentary

Several people spoke to advocate for the homeless at the April 2 meeting. Diane Chapman noted that the warming center would be closing on April 6, and she wasn’t sure the weather was good enough for that to happen yet. She said she personally has had to rescue people to prevent them from freezing, so she was asking commissioners to help. It’s not a good thing to put people on the street right now.

Felicia Brabec (D-District 4) talks with advocates for the homeless during a break in the April 2 county board meeting.

Ray Gholston introduced himself as a resident of the Delonis warming center. He said he was outraged at the planned closing of the warming center on April 6. “This is a potential crisis,” he said, which would result in dozens of people put out onto the streets, and some could possibly die because of exposure to the elements. Basic shelter is not just a right for the privileged few, he said. It is a human right for everyone. Even prisoners of war get food, clothing and shelter, he noted – the United Nations mandates it. How much money does it take to roll out a cot and give a man a blanket? he asked. There are animal shelters, and if dogs and cats were on the street, there would be outrage and anger, he said. Some people on the streets are U.S. veterans who’ve served honorably, he said – look at how they’re being repaid.

Gholston told commissioners that he has a full-time job. “I’m not some bum. I work for a living,” he said, but he can’t afford to rent an apartment in Ann Arbor. How is he supposed to keep up his appearance and hygiene for his job, if he has to sleep on the streets? If the warming center is closed, people will be sleeping on private property, he said, and urinating and defecating in the streets. “This is a shame,” he said. America isn’t a third-world nation, but it could turn into one. He requested that the board do anything in its power to extend the availability of the warming center. He hoped they’d use their humanity to do the right thing.

Elizabeth Kurtz reminded commissioners that a group of people had approached the county board in January about issues related to the warming center. [She was referring to the Jan. 22, 2014 meeting.] As a result, she said, some people from the warming center met with commissioner and board chair Yousef Rabhi; county administrator Verna McDaniel; Mary Jo Callan, director of the county’s office of community & economic development; and Ellen Schulmeister, executive director of the Shelter Association of Washtenaw County. During the meeting, Kurtz said, everyone agreed that there would be continuing dialogue about improving the warming center and addressing homelessness issues. At no point, no human being should be forced to sleep outside in the elements, she said.

Kurtz felt that the board had ignored these issues and had not given them the attention they deserve. She said the homeless community won’t rest until they have access to the human rights they’re entitled to. She read a statement that urged the board to force the Delonis Center to keep the warming center open, or to make other accommodations for people who are using it, such as hotel rooms or temporary trailers. The statement also referred to Kurtz herself, stating that she was “kicked out of the warming center for a non-criminal offense” and asking that she be allowed to return.

Christopher Ellis said he didn’t want to cast aspersions on the shelter. The staff does a humane job, and without it he wouldn’t have survived the winter. But he questioned the morality of closing the warming center on April 6. It should be looked at, he said.

Funds for Homeless Shelter: Board Discussion

Responding to the public commentary, board chair Yousef Rabhi (D-District 8) thanked the advocates for the homeless, and said he felt he’d had a lot of opportunities to talk with them about these issues. He thought he’d been open and honest with them about the barriers. He agreed that the community needs to care for everyone, but it’s important to realize that this is part of a broader picture that includes affordable housing and resources to find jobs. He hoped that the tax base problems caused by the down economy would be turning around, but there haven’t been as many resources to address the issue because of that.

The Delonis Center is a great partner, Rabhi said, in leveraging county tax dollars with private funding and other sources. It’s a complex issue with many moving parts, he said, which includes wage disparity and access to economic opportunity.

Mary Jo Callan, director of the county’s office of community & economic development, and Conan Smith (D-District 9).

Conan Smith (D-District 9) asked to amend the April 2 agenda so that the board could formally discuss the issues that had been raised.

Because this issue had not originally been on the agenda, no one from the Delonis Center was on hand to answer questions. So later in the meeting, Mary Jo Callan – director of the county’s office of community & economic development – was asked to provide some context. Callan reminded commissioners that the former shelter, which was demolished several years ago, was an 80-bed facility. The current shelter was originally recommended to be 200 beds, but ultimately was built with 50 beds and opened in 2003. More beds were added later, bringing the total to about 75 beds.

The Shelter Association also has a rotating shelter of 25 beds that’s housed by local religious groups. There’s also a warming center, which began with just chairs set up in a room for about 50 people. In 2009, the Ann Arbor Downtown Development Authority purchased bedding for the center, so that clients could sleep in the floor, Callan said.

This winter, there’s been an increase in the number of people seeking services from the shelter – some nights, as many as 80 people. The warming center and the rotating shelter operate from November 18 through April 6, Callan said. The intent is that during the harshest winter months, people are provided with safety and warmth.

There are about 4,500 homeless people in Washtenaw County, Callan reported. There’s a growing lack of affordable housing, both locally and nationwide. She noted that the Urban Institute recently issued a report indicating that for every 100 people in Washtenaw County who are earning 30% or less than the area median income, there are 18 units of affordable housing.

Callan said Schulmeister wasn’t able to rush to the April 2 meeting when this issue arose, but she’s very interested in the board’s discussion. Although the Shelter Association tries to be as responsive as possible, Callan added, as a single nonprofit, it’s difficult to address homelessness in the entire community.

Noting that the cold weather isn’t over yet, Conan Smith said he didn’t want to wait two weeks to make funding available for what might be an emergency situation. “You know me – I’m not a throw-the-money-at-a-problem kind of person,” he said, adding that he wants to understand the root cause and what’s at play. But this is a situation that might need the county to throw money at the problem in the short term, Smith said.

The county doesn’t have the capacity for a year-round warming center, Smith added, but he hoped there was a way to address the next several weeks, until the weather warms up. He also wanted to know what resources are needed for longer-term solutions.

Yousef Rabhi (D-District 8).

Rabhi replied that the board needs to be respectful of the Shelter Association as an organization. It’s a separate nonprofit, and receives money from other sources, not just the county. So any solutions should be developed in conjunction with them, he said. For him, the closure of the warming center was a new issue, Rabhi added – he hadn’t realized until recently it was closing on April 6. There needs to be a long-term strategy, he said, because this would arise again in future years. But he acknowledged that there’s a spectrum of need, including short-term problems.

Felicia Brabec (D-District 4), who serves on the sustainable revenues for supportive housing services task force that was created in 2007, reported that the task force is looking at long-term solutions, including a potential millage and an endowment.

Conan Smith then put forward a proposal to allocate $40,000 as emergency funding to the shelter for an additional month. His rationale was based on his recollection that Schulmeister had said it cost about $10,000 a week to operate the warming center.

Andy LaBarre (D-District 7) said he hoped commissioners would keep this discussion in mind as the county moves forward with the disposition of the Platt Road property. As chair of the board’s working sessions, he reported that the issue of homelessness would be a topic for the first working session in May.

LaBarre clarified with Callan that from November 18 through April 6, a nighttime warming center was open. During the day, it opens up if temperatures are 10 degrees or colder. Responding to another query from LaBarre, Callan said the other major public funders for the shelter are the city of Ann Arbor and the Michigan State Housing Development Authority.

Callan told commissioners that the shelter staff are interested in being as flexible as possible. “I also want you all to know that the shelter staff has been working overtime literally for months,” she said. It’s a very complex, crowded, difficult place to be. So the feasibility of keeping it open would depend on whether it’s tenable from the staff’s perspective, she said. It’s been a very difficult season for everyone, Callan added – both the people who need services, and the people who provide those services.

Rabhi wondered if extending the warming center for a month would actually address the issues that have been raised. April 30 is an arbitrary end date, too, he noted. That’s a struggle for him.

Alicia Ping (R-District 3) asked what the $40,000 would be used for. Is it for operations? Conan Smith said he was responding to the request for keeping the warming center open past April 6. Ping responded, saying that this is a bigger issue than just the next few weeks. She pointed out that the 10-day forecast called for temperatures in the 50s. “I don’t know that this is the right use of our money to keep the warming shelter open when clearly it is warming up.”

Ping also noted that the county isn’t in charge of the shelter. The county could provide funding, but the shelter can do anything it wants with that. Smith pointed out that the county owns the Delonis Center building.

Brabec noted that even though highs are forecast in the 50s, the lows will still be in the 30s. It highlights the struggle of needing to address short-term needs while also looking for long-term solutions. The $40,000 might help address the short-term need for residents, she said. It can run on parallel tracks.

Ronnie Peterson (D-District 6) wouldn’t support spending money unless there was also a long-term strategy in place before then, involving other partners who should also make an investment. Callan replied that more communications and connections could be made, but there’s also a lot happening regarding emergency shelter, rapid re-housing, supportive housing, and affordable housing. She suggested scheduling another working session on these issues.

People in the shelter are being housed, Callan said, “but that is an uphill battle.” Social equity and a dearth of affordable housing are issues in this community, she said, as is a lack of living-wage employment. “The most basic social service is a job,” she said.

Conan Smith (D-District 9).

Rabhi agreed that the broader discussion needs to include the issue of a living wage. He noted that earlier in the day, President Barack Obama had talked about the need to raise the federal minimum wage to $10.10. Even at that, Rabhi noted, people wouldn’t necessarily be able to afford housing in Ann Arbor, but it’s a good step. He planned to bring a resolution to the April 16 meeting in support of raising the minimum wage.

Rabhi also talked about the need to include regional partners, including other county governments in southeast Michigan.

Conan Smith said he didn’t expect the conversation to end when the warming center closes, but he hoped to provide funding to give people the flexibility of addressing short-term needs. He didn’t want to be inactive, when people had asked for a response.

Brabec suggested directing the county administrator to work with regional partners and return to the board with a plan, including both emergency shelter and also a longer-term strategy. Smith cautioned against spending $40,000 so that people earning $70,000 or more could come up with a plan, saying he trusted the county administrator not to do that. He wanted the $40,000 to directly help people who are homeless.

Ping opposed allocating any dollar amount, but noted that county administrator Verna McDaniel already has discretion to allocate funding if she chose to – up to $100,000.

C. Smith then made a formal motion – a resolution directing the county administrator to work with regional partners to address short-term sheltering issues and to bring a plan back to the board for longer-term housing issues by no later than May 21. LaBarre proposed amending the motion to replace “housing” with “shelter.”

Rabhi noted that the board is asking staff to come up with a solution “to a problem that we have not been able to solve in the history of mankind.” He hoped that the goal for the proposed resolution is to tell commissioners what tools are available to move forward, and to put the issue in context. McDaniel replied that it wouldn’t be possible to find a solution, but it would be realistic to propose a strategy.

Noting that the county’s Blueprint to End Homelessness was created in 2004, Rabhi recommended that the board dedicate 2014 to updating that blueprint and making it relevant for today. It could be another 10-year plan with a strategy for moving forward. He suggested asking staff to develop that by the fall, while addressing short-term needs in the meantime.

Rabhi then proposed a substitute resolution:

Resolved that the Board of Commissioners directs the Administrator to work with the County’s Community Partners to address the short term needs of the homeless in Washtenaw County;

Be it Further Resolved that the Administrator develop a plan for the Board of Commissioners to engage in a comprehensive update to the Blueprint to End Homelessness;

Be it Further Resolved that this strategic plan be presented no later than May 7, 2014, the strategic plan shall include a context of the last decade’s investments in housing and homelessness in Washtenaw County, a current picture of where the county is at today and a strategy for updating the plan over the course of 2014;

Be it Further Resolved that the Board of Commissioners will conclude this process by October 1, 2014.

Conan Smith withdrew his resolution, and LaBarre withdrew his proposed amendment to Smith’s resolution.

Dan Smith (R-District 2) criticized the approach, calling it “totally inappropriate.” April 6 has been looming for months, and the county has been doing a lot of work on this issue for a long time, he noted. “To make public policy based on the number of people who show up and speak at the podium is entirely inappropriate.” There are other agenda items, and staff and members of the public had been waiting over three hours for the board to conduct its business, he observed. And yet, the board takes something that’s not on the agenda and spends 90 minutes discussing it, then coming up with a proposal “on the fly.”

D. Smith said he had no problem taking up this issue in the future, including updating the Blueprint to End Homelessness. It’s also an appropriate topic for a working session, he said. But Smith said he wouldn’t support this resolution.

Rabhi replied that the board works for the people of Washtenaw County, and when people come forward with a concern, it’s important to address it in a serious manner. “That’s what we owe to the citizens who elected us to serve on this board,” Rabhi said.

Outcome: The resolution passed on a 6-2 vote, over dissent from Dan Smith (R-District 2) and Alicia Ping (R-District 3). Rolland Sizemore Jr. (D-District 5) was absent.

Funds for Homeless Shelter: Coda

Later in the week, McDaniel allocated $35,000 to the Delonis Center, which has agreed to keep the warming center open through April 30. The funding will come from the county’s unearmarked reserves.

Road Commission

The April agenda included a resolution regarding the county road commission. The resolution, if passed, would leave the county road commission as an independent entity. The resolution also states that the county board does not support making the road commission’s board an elected body. [.pdf of board resolution]

The resolution is in line with recommendations of a board subcommittee that was appointed in October of 2013 to look at the future of the road commission. At its final meeting on March 1, 2014, the subcommittee voted to recommend that the road commission remain an independent operation, and not be absorbed into the county government.

Andy LaBarre (D-District 7).

That subcommittee vote came over dissent from Conan Smith of Ann Arbor (D-District 9), who argued that consolidating the road commission into the county would allow for more flexibility and accountability in oversight. Currently, the road commission is overseen by a board with three members appointed by the county board of commissioners to six-year terms. Smith thought that asking voters to approve a countywide road millage – when the revenues aren’t allocated by an elected body – would be a tough sell. It would be especially tough to sell to voters in the city of Ann Arbor, who already pay a millage for street maintenance within the city.

But others on the subcommittee were in line with the strong support from township officials for keeping the road commission independent. Most township boards in the county have passed resolutions supporting the current structure, citing their strong relationships with the road commission staff and board.

The subcommittee did not make any recommendations on whether to expand the road commission from three to five members. The three county commissioners who served on the subcommittee – Conan Smith, Dan Smith (R-District 2) and Alicia Ping (R-District 3) – had agreed that the question of expansion was primarily a political one, and should be taken up by the county board. Subcommittee members indicated that they’d be willing to discuss it further, if directed to do so by the county board.

Regarding the question of whether road commissioners should be elected positions, the subcommittee unanimously passed a resolution recommending not to pursue that option. The sense was that elections would be dominated by urban voters who are heavily Democratic, but who would be electing commissioners to oversee road projects in rural communities.

The three current road commissioners are Doug Fuller, Barbara Fuller, and Bill McFarlane, who was appointed by the county board at its March 19, 2014 meeting. At that time, board chair Yousef Rabhi (D-District 8) voiced support for expanding the road commission board to five members.

These issues come in the context of a state law that opened the door to possible consolidation of the road commission into the county. In 2012, the Michigan legislature enacted amendments to Section 46.11 of Public Act 156 of 1851, which allows for county boards of commissioners to transfer the powers of the road commission to the county board. There’s a sunset to that section of the law, however. Unless extended by the legislature, it will expire at the end of 2014.

At the April 2 meeting, Conan Smith (D-District 9) moved to postpone the item until the board’s May 7, 2014 meeting. It’s the first board meeting that follows an April 17 working session, when issues related to the road commission will be discussed.

Outcome: On a voice vote, commissioners voted to postpone the road commission item until May 7. Dissenting was Alicia Ping (R-District 3).

Thompson Block Brownfield Plan

A brownfield redevelopment plan for the Thompson Block in Ypsilanti’s Depot Town area was on the agenda for an initial vote. [.pdf of Thompson Block brownfield plan]

Fred Beal, president of JC Beal Construction Inc. and co-founder of Beal Properties LLC.

The plan covers 400-408 N. River St. and 107 E. Cross St., an historic property that has been declared ”functionally obsolete and blighted.” That qualifies the project as a brownfield under the state’s brownfield redevelopment financing act (Public Act 381), which allows the owner to receive reimbursements for eligible activities through tax increment financing (TIF). Approval also will allow the developer to apply for Michigan Business Tax Credits. The property is currently owned by Thompson Block Partners LLC, led by Stewart Beal of Beal Properties. Beal’s father, Fred Beal, attended the April 2 meeting but did not formally address the board.

Beal plans to create 16 “luxury lofts” in the structure’s second and third floors, and up to 14,000 square feet of commercial space in the remainder of the site. The project is estimated to cost about $7 million.

The resolution on the April 2 agenda also would end a previous brownfield plan for part of the same site, which was approved in 2008. A fire in 2009 delayed the project. The new plan now covers the 107 E. Cross, which was not part of the original plan, and includes public infrastructure improvements, such as streetscape enhancements along North River Street.

The Washtenaw County brownfield redevelopment authority approved this plan at its March 6 meeting. Subsequently, the plan was approved by the Ypsilanti city council on March 18. The city council’s action included approving an “Obsolete Properties Rehabilitation” certificate, which freezes local millages at the current, pre-development level for 12 years. Because of that, the project’s TIF capture will apply only to the state’s school taxes.

The project can get up to $271,578 in eligible cost reimbursed over a 12-year period, for activities including brownfield plan and work plan preparation, limited building demolition, selective interior demolition, site preparation and utility work, infrastructure improvements, architectural and engineering design costs, asbestos and lead abatement, and construction oversight.

The intent of the state’s brownfield redevelopment financing is to support the redevelopment of urban sites that will increase the municipality’s tax base. Tax increment financing allows an entity to capture the difference between the taxable value before a project is undertaken, and the value of the property after it’s developed.

A public hearing on this proposal was also held at the April 2 meeting. Only one person – Tyler Weston, a real estate agent representing Thompson Block Partners – spoke briefly, telling the board that the financing would help the project.

Thompson Block Brownfield Plan: Board Discussion

Yousef Rabhi (D-District 8) praised the project, saying it’s an example of Beal’s commitment to the community. It’s in the heart of Depot Town and has had a lot of challenges, he noted. Rabhi serves on the county’s brownfield redevelopment authority board, which had recommended approval of this proposal.

Responding to a query from Felicia Brabec (D-District 4), Nathan Voght of the county’s office of community & economic development explained that the brownfield is the only TIF legislation that doesn’t allow for an opt-out – every taxing entity participates equally. But in this case, because of the “Obsolete Properties Rehabilitation” certificate, local millages will be frozen for up to 12 years, so there won’t be any increment available for TIF financing – with the exception of the state’s school taxes.

Brabec also asked about the differences between this proposal and the one approved in 2008. Voght noted that the 2009 fire damaged the entire structure, so the need for demolition changed. The overall eligible costs decreased from about $307,000 to about $271,000.

Outcome: Commissioners gave initial approval to the brownfield plan. A final vote is expected on April 16.

Police Services Contract

A two-year pricing proposal for contracts to provide police services to local municipalities was on the April 2 agenda for initial authorization from the county board.

From left: Sheriff Jerry Clayton and Greg Dill, the county’s director of infrastructure management.

On July 6, 2011, commissioners had authorized the price that municipalities would pay for a contract sheriff’s deputy through 2015. The price in 2012 – $150,594 per “police services unit” – was unchanged from 2011, but has been rising in subsequent years by about 1% annually. The complex, politically-charged process of arriving at those figures in 2011 involved more than a year of discussion between the sheriff’s office, other county officials and leaders of local municipalities that contract for these services.

The board’s decision in 2011 was based on a recommendation from the police services steering committee. That same group is recommending the next pricing changes as well, based on the cost of a police services unit (PSU). The PSU price for 2014 is $153,621. For 2015, the PSU price will be $155,157. In the following two years, the PSU price is proposed to be $156,709 in 2016 and $158,276 in 2017.

Those figures are based on a 1% annual increase in direct costs to contracting municipalities. That rate of increase for PSUs is included in revenue projections for the county’s four-year budget, which the county board passed at its Nov. 20, 2013 meeting. The budget runs from 2014-2017, and includes revenue projections based on contracts for 79 PSUs.

According to a staff memo, there will be an addition to the 2016 and 2017 prices for in-car printer replacement, after the total cost of ownership is determined. The memo also notes that the pricing is based on salaries stipulated in current union contracts with the Police Officers Association of Michigan (POAM) and the Command Officers Association of Michigan (COAM). Those contracts run through 2014, and new contracts are currently being negotiated. The memo states that ”no assumptions were made for salaries or fringes change in this cost metric in anticipation of any union negotiations.” [.pdf of staff memo]

The county – through the sheriff’s office budget – pays for the difference between the price charged for each PSU, and the actual cost to provide those services. In 2011, that difference was $25,514.

In 2016, the cost per PSU is expected to be $195,104 – a difference of $38,395 compared to the price being charged to municipalities. In 2017, the cost per PSU is estimated at $199,188 – a difference of $40,912. [.pdf of cost estimates]

On April 2, sheriff Jerry Clayton described the cost model, explaining that it includes direct costs like salaries and benefits, which are paid by each contracting entity. It also includes indirect costs and overhead, which those entities partially pay. The county covers a portion of the indirect costs and overhead. The county also picks up the difference between the cost estimates and the actual cost, he said. In 2011, for example, the actual cost for delivering services was about $2,000 more than what was estimated per PSU. In 2012, the difference was about $4,500 more per PSU than estimated.

Because the sheriff’s office has about 400 positions – full time, part time and seasonal – there will always be openings, Clayton said. And because of that, his office has been able to offset those higher-than-expected costs by leaving some positions unfilled. But through budget cuts over the last few years, that flexibility becomes more challenging, he said.

Clayton said he supports the 1% increases in 2016 and 2017, but noted that it doesn’t account for possible changes to the POAM and COAM contracts. The result of those contract negotiations could have a big effect on the final price, because of the direct cost, he said.

He urged commissioners to think about how to find a sustainable revenue stream to support public safety countywide. Clayton noted that in the previous budget, the sheriff’s office came under its expenditure targets without compromising service, and also exceeded revenue. So the office has met its obligations as it relates to the overall county budget, he said. “But the ability to do that moving forward becomes a little more challenging.”

Police Services Contract: Board Discussion

Felicia Brabec (D-District 4) agreed that the county needs a sustainable revenue source for public safety. She asked if it was a trend that the difference between cost estimates and actual costs is increasing. SiRui Huang, finance manager for the sheriff’s office, said she thought 2013 would be close to the estimate, because there was a reduction in the fringe benefit rates.

Ronnie Peterson (D-District 6).

Ronnie Peterson (D-District 6) described the county as growing, which results in demand for services. He wondered when they would revisit the methodology used for policing the county, and the policy for contractual agreements with local municipalities.

Clayton replied that the financial architecture that’s in place to establish cost and price is sound. But the most recent analysis of recommended staffing levels for public safety in the county was done in 2000, he said. It established ideal staffing levels and minimum staffing levels. One of the recommendations from that report, which hasn’t been implemented, is to mandate the minimum staffing levels in some jurisdictions.

In theory, the county could mandate those minimal levels before it enters into a contract with the jurisdiction, he explained. If the jurisdiction indicates that it can’t afford the minimal level, then the county could decide not to enter into a contract to provide police services. Clayton said he didn’t recommend this approach, but it was an option that had been recommended.

When the study was done 14 years ago, the population of Washtenaw County was about 300,000, Clayton noted. Now, it’s closer to 350,000.

Peterson indicated that as the economy improves, he thought the county’s population would grow even more. The cost to the county’s general fund of providing public safety is increasing, but the county has to pay the price for the economic health of the community, Peterson said. There needs to be more discussion of this issue, he said.

Peterson said he’d like to see the “magic” of the current proposal work, but he didn’t see how it was a sustainable model.

Yousef Rabhi (D-District 8) asked about the cost difference again, wondering if it would be consistent with the previous difference of about $25,000. Huang noted that the difference is estimated to increase in 2016 and 2017, but she restated that it doesn’t take into account any possible reductions that might occur based on current union negotiations. So the cost might change, she said.

Rabhi told Clayton that he wasn’t going to challenge this proposal strongly, adding that Clayton has been a great sheriff for the whole county. Rabhi noted that the cost difference, paid by the general fund, is borne by all county taxpayers – including those who live in jurisdictions that also have their own police departments, like Ann Arbor. That’s another issue to discuss in the future, Rabhi said, in addition to the funding sustainability. Whether you live in Ann Arbor or Bridgewater Township, public safety is important, he said, “and we need to find a way to fund it in a fair way, countywide.”

As the sheriff’s office is asked to bear more of the financial burden, Rabhi said, that makes it more fragile as a governmental unit. It’s important to look for new potential funding sources for public safety, he concluded.

Conan Smith (D-District 9) said the board should be grappling more with the issue of funding for public safety, especially considering that public safety accounts for more than 60% of the general fund budget. [That amount includes funding for courts, the prosecutor's office and other criminal justice units – not just the sheriff's office.]

Kent Martinez-Kratz (D-District 1) and Stefani Carter, a local attorney who was filling in for corporation counsel Curt Hedger.

Smith noted that the proportion of cost that’s being paid for by the sheriff’s office is increasing faster than the proportion paid for by the contracting entities. He wondered why that’s the case.

Clayton reiterated his point that it’s not a sustainable situation. He pointed out that while it’s not sustainable for the sheriff’s office, it’s also a problem for the contracting jurisdictions, which can’t afford to take on additional expenses. For some jurisdictions, the contract for police services accounts for almost 70% of their general funds. So raising the price for those jurisdictions isn’t really an option.

Public safety is key to other issues in the county, including human services and economic development, Clayton said. The county has reached the point where they need to consider creating other funding sources to sustain police services countywide. He noted that the sheriff’s office also provides services to jurisdictions that already have their own police departments, like Ann Arbor and Pittsfield Township. The sheriff’s office provides a safety net, he said, but there’s a limit to what they’re capable of in terms of resources, “and I think we’re there.”

C. Smith praised Clayton for making giant strides in integrating the sheriff’s office with nearly all aspects of the county, and for framing the issue differently for the board and the public. “I don’t see this as a city versus township fight,” Smith said. “I see this as a common struggle to provide public safety and quality of life for all of us.” The conversation should focus on what outcome the county is trying to achieve, he added, and how they fund that outcome.

Smith said he’d like to consider a countywide police force approach, whether that’s supporting the existing police forces or expanding the services that the sheriff’s office provides.

Clayton stressed that if other jurisdictions want to keep their police departments, that’s what they should do. He joked that it will save a lot of headache if that’s clear – the sheriff’s office isn’t trying to take over anything. C. Smith said he understood that Clayton was sensitive to that, but he thought it was a conversation they needed to have. It doesn’t make sense to “hyperlocalize” services in a lot of cases, Smith said.

There can be a happy medium, Clayton replied, in terms of collaborating. So that’s another option, and one that the sheriff’s office has pursued.

Dan Smith (R-District 2) agreed that public safety is a countywide issue, and praised Clayton and his staff for their work.

Outcome: Commissioners unanimously gave initial approval the police services contract proposal. A final vote is expected on April 16.

2013 Audit

Two representatives from the accounting firm Rehmann, which conducts the county’s audit, attended the April 2 meeting: Nate Baldermann and Mark Kettner. They gave part of a presentation on the county’s 2013 audit and comprehensive annual financial report (CAFR). [.pdf of 2013 CAFR] [.pdf of 2013 audit summary]

From left: Mark Kettner and Nate Baldermann of the accounting firm Rehmann.

Baldermann, a principal at Rehmann and former board member of the Michigan Government Finance Officers Association, began by presenting the board with a certificate of achievement for excellence in financial reporting, for the county’s 2012 CAFR. The award is given by the national Government Finance Officers Association. Baldermann noted that this is the 23rd consecutive year that the county has received this award. Out of about 2,000 local governments in Michigan, only 102 are receiving this award.

Kelly Belknap, the county’s finance director, gave an overview of the staff process involved in developing the CAFR, which reflects thousands of individual financial transactions. She gave highlights from a 2013 year-end financial presentation that staff had made at the board’s March 19, 2014 meeting, showing that the county had ended 2013 with a $3.92 million surplus for its general fund.

The complete audit, which consists of multiple documents, totals over 400 pages, Belknap noted.

Pete Collinson, the county’s accounting manager, gave a summary of the CAFR, which is over 200 pages. Over the years, the requirements have grown in complexity, he noted, and that’s reflected in the amount of information that’s included in the CAFR. At the same time, the finance staff has been reduced, he said, so the auditors have been helping assemble it.

Collinson highlighted some upcoming changes, including GASB 67, which takes effect this year and will be reflected in the next CAFR, and GASB 68, which takes effect in 2015. In 2014, the main change will be more disclosures in notes to the financial statements, he said. But in 2015, the county’s unfunded actuarial accrued pension liability will be booked as a liability in the county’s statement of net position, which will be a significant change, he said. The county’s finance staff have been working closely with their auditors and actuaries to plan for that, Collinson said.

Mark Kettner of the accounting firm Rehmann also gave a few remarks, noting that the auditor’s letter is included in the CAFR. The new term is “unmodified,” he said, which means it’s a clean statement. It’s an opinion just on the financial statements, he said – it’s not an opinion on the county’s financial controls. And it’s not an opinion on the county’s financial position, Kettner said, “although your financial position is pretty good, all things considered – coming off the last five or six years we’ve gone through.”

Kettner referred to a meeting – an “exit conference” – that he held with county administrator Verna McDaniel, board chair Yousef Rabhi and financial staff. There were a few areas for improvement, he said, because it’s a large organization. But there was nothing that he felt he needed to tell the board that night, Kettner added. The county is doing great, he said.

2013 Audit: Board Discussion

Dan Smith (R-District 2) asked about a section of the auditor’s letter:

We did not audit the financial statements of the Washtenaw County Road Commission, which represents 77.4% of the assets and 90.5% of the revenues of the aggregate discretely presented component units. Those statements were audited by other auditors whose report was furnished to us, and our opinion, insofar as it relates to the amounts included for the Washtenaw County Road Commission, is based solely on the report of the other auditors.

He asked Kettner to explain what that means, and why the audit refers to the road commission at all.

Kettner replied that the county government is considered the primary government for purposes of the audit. But the audit also is required to include all of the “component units” of county government, which are shown on pages 66-67 of the CAFR. In addition to the road commission, those units are: the department of public works, the office of the water resources commissioner, the hazardous materials response authority, and the brownfield redevelopment authority. The financial notes describe these operations in more detail.

Component units are separate legal entities, with a majority of their governing boards appointed by the county board of commissioners, or with the county board taking some level of financial accountability. For example, the county board must authorize any debt that’s issued by these other component units.

Dan Smith (R-District 2) talks with auditors from the accounting firm Rehmann before the start of the April 2 meeting.

Kettner noted that some of these component units conduct separate audits – that’s the case with the road commission. If Rehmann, as the primary unit’s auditor, takes responsibility for these separate audits, then it’s not mentioned in the auditor’s letter, Kettner said. But if the firm is not taking responsibility – “and there’d be no reason that we’d want to,” he said – then it’s mentioned in the letter, along with a perspective in terms of the financial significance of that unit. That’s why the letter includes the percentages reflecting the road commission’s assets.

Smith pointed out that even though the county board is responsible for the road commission’s debt, county commissioners don’t see the road commission’s budget or approve it. The road commission’s funding comes from the state, through Act 51, he noted. He observed that the GASB accounting standards are national, and probably don’t recognize the rather unique place that Michigan’s road commissions hold compared to all other states.

Kettner replied that although Rehmann doesn’t review the road commission’s financial statements annually, there is a periodic evaluation. The CAFR includes a description of the road commission, he said. That description states: “The Road Commission may not issue debt or levy a tax without the approval of the County Board of Commissioners. The Road Commission deposits its receipts with and has investments through the County.”

Noting that it’s outside of Kettner’s purview, Smith pointed out that the road commission has been the topic of discussion by the county board in Washtenaw County as well as across the state, as the result of state legislation passed in 2012 that allows for the possibility of county governments to absorb road commission operations. [For background on that discussion, see Chronicle coverage: "No Major Change Likely for Road Commission."]

Referring to the auditor’s management letter, Smith highlighted a statement that Michigan state statutes require local governments shall not spend in excess of amounts appropriated in a budget. But in many cases, Smith noted, there isn’t much of a penalty for violating those statutes. What’s the mechanism for enforcing that?

Kettner replied that page 81 of the CAFR lists the instances in which county units spent money in excess of appropriations during 2013. For an entity the size of Washtenaw County, he said, it’s unrealistic to expect that there would never be an item that’s over budget. Sometimes these items don’t show up in the CAFR because the county board amended the budget after the fact. In 2013, many of the excess expenditures were relatively minor, Kettner said. The largest one – $1.75 million over a budgeted $3.27 million in the accommodations ordinance tax line item – reflects a decision by the county board to distribute additional funds from the accommodations tax. The board voted to do that, he explained, but they didn’t do the technical step of voting to amend the budget.

From left: Felicia Brabec (D-District 4), chair of the ways & means committee, and county administrator Verna McDaniel.

There were about a half dozen items that Kettner said were relatively significant, and “we don’t want to see those again.”

Smith noted that to him, the words “shall not” in the state statute seemed like pretty strong wording, but there’s nothing to enforce it. Kettner replied: “That’s how the state writes those laws, you know.” The auditing firm submits its report to the state, Kettner explained, and that includes an audit procedures report form. The form includes boxes that must be checked if there’s an issue, he said. That will result in a letter from the state, asking how the county plans to address it.

Smith then asked how the audit and CAFR will look when GASB 68 takes effect. Kettner referred to page 119 of the CAFR, which contains a table of the county’s pension system. One column lists the unfunded actuarial accrued liability for the system, which in 2012 was $126.28 million. In 2015, when GASB 68 is implemented, the county will have to add that liability as part of the county’s statement of net position – page 41 of the CAFR. That liability will result in a deficit for the county’s unrestricted net position. For the 2013 CAFR, the unrestricted net position shows a positive $32.826 million.

However, Kettner stressed that this change will not affect the general fund budget. “You’re going to continue making your contributions to fund those pensions as you always have,” he said. But the financial statements will be more meaningful by adding that liability to the statement of net position.

There were no questions from other commissioners.

County Jail Bonds

Commissioners were asked to give initial approval to authorize the re-funding of up to $16.5 million in outstanding capital improvement bonds, which were originally issued in 2006 to fund expansion of the county jail.

John Axe, the county’s bond counsel, brought reading material to the April 2 meeting.

According to a staff memo, $16.9 million in principal remains of the original $21.675 million bond sale. The county’s bond counsel, Axe & Ecklund, is advising the re-funding because of lower interest rates, and estimates a net savings of about $869,000 over the life of the bond issue. The new issue would be called “County of Washtenaw Capital Improvement Refunding Bonds, Series 2014.” [.pdf of refunding resolution]

Kent Martinez-Kratz (D-District 1) asked the county’s bond counsel, John Axe, about interest rates. Axe told the board that current interest rates on the bonds are between 4% and 4.3%. He estimated that the re-funding interest rates would be between 2.2% and 3.8%. The bonds would be sold in June.

Axe said he hoped the savings would be even higher than the estimated $869,000.

Outcome: Commissioners unanimously gave initial approval to the bond re-funding. A final vote is expected at the board’s April 16 meeting.

Autism Coverage

At the board’s March 19, 2014 meeting, commissioners had given initial approval to add an Autism Spectrum Disorder (ASD) rider to existing active employee and retiree benefits. It would allow the county to provide health insurance coverage for the treatment of autism, and was on the April 2 agenda for a final vote.

Adding the rider would cost the county an estimated $182,589 this year, according to staff – to be paid to Blue Cross Blue Shield of Michigan. To cover that cost, each county department will be charged on a per-employee basis. In addition, the county will pay for claims made by employees for this benefit, with the assumption that most if not all claims would be reimbursed by the state.

Ellen Rabinowitz, Washtenaw County’s interim public health officer. She is also executive director of the Washtenaw Health Plan.

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

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

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

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

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

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

Autism Coverage: Public Commentary

Ryan Schuett, a Washtenaw County employee whose daughter has been diagnosed with autism, thanked commissioners for acting quickly. He talked about the effect that the autism spectrum disorder has on employees. “Speaking humbly, I’m tired – very tired,” he said. In 2013, he worked over 1,000 hours of overtime to cover out-of-pocket costs associated with his daughter’s treatment. He averages between 64-72 hour workweeks, while also trying to be a good father and husband.

As an emergency dispatcher, he deals with other people’s problems while putting his own aside, Schuett said. He enjoys his work, and even more so when he knows he works for an institution that stands beside him. The treatments for his daughter are life-changing, he said. But because of the treatment costs, he has sometimes had to make the decision not to provide it. The board’s decision has made it possible for him not to seek employment elsewhere, Schuett said. Autism is affecting more people nationwide, and isn’t going away. He again thanked commissioners for helping the families of employees.

Autism Coverage: Board Discussion

Felicia Brabec (D-District 4) said she was pleased to see this move forward. It was very poignant that they’d be voting on it that day, she noted, because April 2 is World Autism Awareness Day. It’s a much-needed benefit, she said.

Dan Smith (R-District 2) pointed to numerous county liabilities that are laid out in the comprehensive annual financial report (CAFR), which the board had been presented earlier in the evening. Those are significant, he noted, and the unfunded liabilities will continue to hamstring the board’s ability to be nimble and responsive.

He said he wasn’t happy to see the autism coverage brought forward for a final vote at this time. He supports adding the coverage, but thought it should be part of the board’s regular budget reaffirmation process later in the year. “However, given that it is World Autism Day, I think it would be a little uncouth to vote against this at this point,” he said.

Outcome: Commissioners unanimously gave final approval to adding autism coverage.

First-Quarter Entitlement Grant Update

A report from the county’s office of community & economic development was included in the April 2 agenda, updating the board on the roughly 30 state and federal formula grants administered by the OCED. The grants are awarded based on state or federal allocation formulas. In 2014, those formula grants total about $9.6 million. [.pdf of entitlement grant update]

There was no presentation or discussion of this item.

Recognitions & Proclamations

Several resolutions honoring local individuals and businesses were on the April 2 agenda. Here are some highlights.

Recognitions & Proclamations: Public Health Week

The agenda included a resolution proclaiming April 7-13 as Public Health Week. Ellen Rabinowitz, the county’s interim public health officer, was on hand to present the Washtenaw Healthy Workplace Awards to five local businesses. Each institution has taken great strides to promote healthy behaviors in their work places, she said.

The awardees are:

• National Kidney Foundation of Michigan
• Ann Arbor Area Transportation Authority
• Manchester Community Schools
• Manpower Inc. of Southeast Michigan
• City of Ann Arbor

Recognitions & Proclamations: Ann Arbor Community Center

Reverend Yolanda Whiten, president and CEO of the Ann Arbor Community Center, was presented with a resolution honoring the center for 91 years of service. She has served in that position since 2007.

Reverend Yolanda Whiten, president and CEO of the Ann Arbor Community Center.

From the resolution: “Washtenaw County Board of Commissioners hereby honors and expresses its sincere appreciation and deepest respect to The Ann Arbor Community Center for continuing to achieve its mission: ‘Influenced by a rich African American heritage, the Ann Arbor Community Center is a catalyst for transformation within the city and its greater community. With a primary focus on youth, adults and families, the Ann Arbor Community Center provides programs and services that promote self-reliance, social and economic well-being, diversity and community involvement.’”

Several supporters of the community center attended the meeting and gave Whiten a round of applause.

Communications & Commentary

During the April 2 meeting there were multiple opportunities for communications from the administration and commissioners, as well as public commentary. In addition to issues reported earlier in this article, here are some other highlights.

Communications & Commentary: Same-Sex Marriage

During public commentary, Sandi Smith – president of the Jim Toy Community Center board – thanked the board for its help in opening the county clerk’s office for four hours on Saturday, March 22. “It was an amazing experience,” she said. Over 70 couples got married, including some who’d been waiting 20-30 years, she said. “Trust me – you’ll all be on the right side of history on this,” Smith said.

Federal judge Bernard Friedman had issued a ruling on Friday, March 21, 2014 in the case of Deboer v. Snyder. In that ruling, Friedman found that Article I, Section 25 of the Michigan Constitution – which limits the benefits of marriage to unions between one man and one woman – did not advance any legitimate state interest. So the ruling had the effect of making same-sex marriages legal in Michigan.

But the day following the decision, on March 22, the U.S. Court of Appeals for the Sixth Circuit issued a temporary stay on Friedman’s ruling. Michigan’s Gov. Rick Snyder and Attorney General Bill Schuette are appealing Friedman’s decision.

Smith noted that county clerk Larry Kestenbaum was obviously very instrumental in allowing same-sex marriages to take place on the morning of March 22. Smith also thanked county administrator Verna McDaniel, sheriff Jerry Clayton, the clerk’s office staff – including Ed Golembiewski – and the facilities staff, who had to clean up afterwards. She hoped that it would never have to be repeated again, because she hoped the right to marry would soon be open to everybody.

County administrator Verna McDaniel.

Responding to Smith’s commentary – and noting that Smith and her partner, Linda Lombardini, are his friends – Yousef Rabhi (D-District 8) said he was proud of what the county could do in moving this issue forward. It warmed his heart. He noted that during U.S. president Barack Obama’s speech at the University of Michigan earlier that day, Obama had told the audience not to jeer at things they don’t like, but to organize. In that context, Rabhi said Michigan needs a new attorney general – someone who’ll stand up for the people in Michigan and not waste taxpayer dollars in appealing a ruling that provides for marriage equality. Everyone who loves each other should be able to get married, he said. He thanked Smith and Lombardini for their activism.

Conan Smith (D-District 9) said Kestenbaum deserves the most credit. Kestenbaum had asked the board “to do something that was real easy,” Smith said. He noted that it was a tough vote that the board had debated, but it was Kestenbaum’s leadership that made it happen, he said.

By way of background, the county board – at its Feb. 19, 2014 meeting – had approved what’s essentially a fee waiver for the expedited processing of a marriage license, which ordinarily takes three days. The resolution passed by the board on Feb. 19 allows the county clerk, consulting with the county administrator, to establish a “fee holiday” on the day preceding a period during which the office’s vital records division would be closed for four or more days, or when an unusual number of marriage license applicants are expected to appear. During a “fee holiday,” the charge for immediately processing a marriage license is 1 cent.

Last year, Kestenbaum had publicly indicated that he intended to waive fees for same-sex marriages, in anticipation of a court ruling that would allow such marriages. Subsequently, however, his authority to waive fees was challenged, and he learned that the county board would be required to grant that authority.

On Feb. 19, Kestenbaum had told the board that he expected various legal challenges to same-sex marriage bans to wind their way through the federal court system without a specific ruling affecting Michigan, and that his office would be unlikely to see a sudden influx of requests for same-sex marriage licenses.

Communications & Commentary: Coordinated Funding

Felicia Brabec (D-District 4) reported that the process of reviewing applications for coordinated funding is underway.

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

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

During the current funding cycle, 105 applications were received, representing $8.7 million in requests. That compares with 76 in the previous funding cycle, Brabec noted, for requests of $6.6 million. The amount of available funding this year from all partners is $4.4 million. “So it’s a difficult, difficult process,” she said. Brabec is one of 18 volunteer reviewers, plus four staff.

The recommendations will be brought to the board in May.

Communications & Commentary: Misc.

During public commentary, Thomas Partridge referred to U.S. president Barack Obama’s speech at the University of Michigan campus earlier in the day, where Obama advocated for raising the federal minimum wage. Partridge called on lawmakers to provide adequate resources for affordable housing and public transportation. He called attention to the May 6 election, when voters in Ann Arbor, Ypsilanti and Ypsilanti Township will be voting on a new public transit tax for expanded services. He said all public bodies in Washtenaw County should work to weed out corruption. He criticized Gov. Rick Snyder and other Republicans, and urged voters to elect progressive Democrats this year.

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

Absent: Rolland Sizemore Jr.

Next regular board meeting: Wednesday, April 16, 2014 at 6:30 p.m. at the county administration building, 220 N. Main St. in Ann Arbor. The ways & means committee meets first, followed immediately by the regular board meeting. [Check Chronicle event listings to confirm date.] (Though the agenda states that the regular board meeting begins at 6:45 p.m., it usually starts much later – times vary depending on what’s on the agenda.) Public commentary is held at the beginning of each meeting, and no advance sign-up is required.

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

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

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

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

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

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

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

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

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

District 7 Appointment

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

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

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

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

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

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

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

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

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

Funding for Nonprofits

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

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

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

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

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

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

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

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

Funding for Nonprofits: Public Commentary – Humane Society

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

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

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

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

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

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

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

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

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

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

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

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

Funding for Nonprofits: Public Commentary – Housing, Food

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

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

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

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

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

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

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

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

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

Michael Appel of Avalon Housing.

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

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

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

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

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

Funding for Nonprofits: Public Commentary – Literacy

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

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

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

Funding for Nonprofits: Public Commentary – General Human Services

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

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

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

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

Funding for Nonprofits:  Commissioner Discussion

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

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

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

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

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

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

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

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

In part, Walsh’s letter states:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Funding for Nonprofits: More Funds for Homeless Shelter

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

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

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

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

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

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

2012-2013 Budget: Continued Discussion

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Other Business: Sylvan Bonds, Lobbyist, Salem Historic District

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

Other Business: Lansing Lobbyist

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

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

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

Other Business: Salem Township Historic District

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

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

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

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

Other Business: Sylvan Township Bond Deal

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

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

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

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

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

Other Business: Drain Projects

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

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

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

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

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

Misc. Commentary, Communications

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

Misc. Comm/Comm: Public Commentary

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

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

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

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

Misc. Comm/Comm: Communications from Commissioners

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

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

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

Absent: Barbara Bergman.

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

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

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

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

Three of the 11 commissioners also showed up for the briefing, which is held the week before a regular board meeting. It’s a venue for the county’s administration to review informally the upcoming agenda. The agenda will be full for the Nov. 18 meeting, one that includes an update on the 2009 budget – it’s now showing a surplus – and a likely vote on the 2010/2011 budget, which had been pulled from the Nov. 4 agenda.

The briefing also touched on a potentially controversial agenda item: A request from Sheriff Jerry Clayton to change the policy related to police services contracts with local municipalities. Other items on the agenda for Nov. 18 include funding to support the homeless, a change in allocation of the accommodation tax, and appointments to more than a dozen county committees and commissions. Details after the break.

Funding for Homeless Services

Earlier this month, both the Ann Arbor city council and the Ann Arbor Downtown Development Authority approved funding for the Shelter Association of Washtenaw County and Interfaith Hospitality Network. The $20,000 from the DDA and $159,500 from the city will help pay for beds and case management plus staff support for 25 additional beds at the Delonis Center, 25 additional beds in the rotating shelter program, and housing vouchers for eight families. [See Chronicle coverage: "Support for the Homeless Shelter" and "DDA Buys Shelter Beds"]

Other agencies – including the Ann Arbor Area Community Foundation, Washtenaw United Way, and the Washtenaw Community Health Organization – are contributing as well.

County commissioners will be asked to appropriate $250,000 from funding already set aside in the 2009 budget for supportive housing services. Of that, $175,000 will be used for an emergency response to increasing demand for service for the homeless during the winter months. At Tuesday’s briefing, county administrator Bob Guenzel said that the money would provide 10 additional housing vouchers for families.

A cover memo accompanying the resolution gave a breakdown of the number of people that were provided with shelter and housing over the past year, categorized by location (based on the zipcode from which they were coming). Countywide, 64% of the people who were provided shelter came from Ypsilanti and Ypsilanti Township.

• 48197 = 574 (35% of total served)
• 48198 = 458 (29%)
• 48103 = 247 (15%)
• 48108 = 114 (7%)
• 48104 = 101 (6%)
• 48105 = 44 (3%)
• 48111 = 24 (1%)
• 48176 = 18 (1%)
• 48189 = 17 (1%)
• 48130 = 15 (1%)
• 48190 = 9 (1%)
• 48118 = 7 (less than 1%)
• 48191 = 7 (less than 1%)
• 48137 = 3 (less than 1%)
• 48169 = 2 (less than 1%)
• 48170 = 2 (less than 1%)

2010/2011 Budget

At the board’s Nov. 18 meeting, county administrator Bob Guenzel plans to give an update on the 2009 budget, which now looks to be coming in with a $300,000 surplus, he said at Tuesday’s briefing. He credited the surplus to budget cuts that commissioners had approved earlier this year.

Guenzel also asked that commissioners give serious consideration to passing the 2010/2011 budget at both their Ways & Means Committee and their regular board meeting on Nov. 18. [All commissioners serve on the Ways & Means Committee, with that meeting immediately preceding the regular board meeting. Typically, resolutions are voted on at Ways & Means, then are considered at the regular board meeting two weeks later. Most of the discussion occurs at Ways & Means.]

The 2010/2011 budget was on the agenda for the Nov. 4 Ways & Means meeting. However, Conan Smith, who chairs that committee, pulled it from the agenda, saying that they needed to address a handful of issues. He did not elaborate. [See Chronicle coverage of the Nov. 4 meeting: "But First, What About the Budget?"]

On Tuesday, Guenzel said that he anticipated some amendments would be forthcoming. [.PDF file of 2010/2011 budget resolution]

Accommodation Tax

The board will be asked to approve a new five-year agreement with the Ann Arbor Convention & Visitors Bureau and the Ypsilanti Convention & Visitors Bureau, from 2010 through 2014. The agreement would increase the county’s share of the accommodation tax revenues from 5% to 10%.

Last year, the board approved increasing the amount of the tax that’s collected from local hotels, from 2% to 5%. That increase took effect in March of 2009.

At Tuesday’s briefing, commissioner Leah Gunn wanted clarification about how those additional revenues coming to the county’s coffers would be used. Curtis Hedger, the county’s corporation counsel, explained that those funds are used by the county treasurer, Catherine McClary, and that his understanding was that McClary wanted to use the increase to fund a part-time employee who would help administer and enforce the accommodations tax ordinance. But the board can indicate how it wants those funds to be used, he said.

Reponding to an email query from The Chronicle, McClary provided additional information:

The County has absorbed the tax collection and administration functions at the 5% rate for 35 years and are now recommending an increase to 10%. In the past the County’s portion has provided approximately $50,000 to $75,000 in revenue, depending on hotel occupancy and the economy. This year the County expects to receive somewhat more than $100,000 because of the increase in the excise tax promoted by the hotel association earlier this year.

While the Treasurer’s Office has sufficient staff to receipt voluntary collections, there is not sufficient staff to enforce collections when taxes are not paid timely or to conduct financial record inspections of establishments to ensure accurate reporting and proper compliance. Poor economic times have made it much more difficult to collect from establishments and has created a much larger delinquency problem than in the past. Enforcement of collections has proven to be time consuming and expensive and there are fewer remedies relative to collecting delinquent real property taxes.

It is anticipated that this increase for administration of the excise tax would be spent on staffing costs (that have not been compensated in the past as costs rose) to continue current collection, accounting, and administration functions and on additional accounting and legal services for enforcement. Should the resolution pass, there are plans to begin routine and periodic inspections of the books and records of establishments and to be more proactive by making collections calls in person, by withholding marketing support, or by filing lawsuits if unable to collect.

[.PDF chart of accommodation tax revenue from 1998 through September of 2009]

Appointments Caucus Canceled

At their Nov. 18 meeting, commissioners will be asked to vote on appointments to 17 different boards, committees and commissions. A caucus had been scheduled to immediately follow Tuesday’s administrative briefing, to discuss candidates for these appointments. However, Rolland Sizemore Jr. – who chairs the board of commissioners – was not able to attend Tuesday’s meeting. Guenzel reported that Sizemore would be contacting commissioners individually, to discuss their views of the candidates before next week’s board meeting and vote.

Police Services: Policy Change

Sheriff Jerry Clayton will be making a recommendation for a policy change related to how police services are provided to local municipalities by the sheriff’s department. Details about the proposal were not available at Tuesday’s briefing, but Guenzel said that Clayton would be contacting commissioners individually, to provide them with information about the proposal before the Nov. 18 meeting.

Guenzel also said that the topic would be discussed at a Nov. 13 meeting of the Police Services Steering Committee. That meeting was subsequently rescheduled for Monday, Nov. 16, from 2-4 p.m. at the county’s Western Service Center on Zeeb Road.

When told that the cover memo for Clayton’s recommendation wouldn’t be included in the board packet – the written material that commissioners receive on agenda items prior to their meeting – Leah Gunn responded, “I find that unacceptable.”

Rather than have their own police departments, several local municipalities contract with the sheriff’s department for patrols. The amount charged for those patrols has been a controversial issue for many years, resulting in a lawsuit that was appealed all the way to the state supreme court. [See Chronicle coverage: "State Supreme Court Ruling Favors County"]

DDA board chair John Splitt (left) and Michael Ortlieb (right) of Carl Walker – the design firm that's handling the new Fifth Avenue underground parking structure. (Photo by the writer.)

Downtown Development Authority board meeting (Nov. 4, 2009): Measured in raw dollars, the major news coming out of the DDA‘s regular Wednesday meeting was the selection of The Christman Company as the construction manager for the Fifth Avenue underground parking garage.

Because the firm had already been awarded the pre-construction services contract, with the construction management contract to be contingent on performance during pre-construction, Christman’s probable selection was well known. The  dollar amount of Christman’s guaranteed maximum price is now also known to an exact figure: $44,381,573.

In other significant business, the board passed a resolution authorizing support of an initiative to increase the number of shelter spots for the homeless in the face of the coming winter – $20,000 for additional beds, to be paid for out of the DDA’s housing fund.

The board also passed a resolution that might resuscitate the LINK – the downtown circulator bus that did not resume service this fall after its usual summer hiatus. The resolution calls for a partnership with the Ann Arbor Transportation Authority to sort out what that service should look like. Michael Ford, AATA’s CEO, had alluded to these efforts in a side-remark during his presentation to the AATA board last week.  This resolution reflected those efforts.

Shelter Beds

In a presentation to the city council at its Oct. 19, 2009 meeting, Mary Jo Callan, director of the city/county office of community development, had outlined a strategy for increasing the sheltering capacity for homeless people this season. That strategy includes adding 25 beds to the Delonis Center and increasing the number of beds in the rotating warming center from 25 to 50.

In the resolution before the DDA board on Wednesday, $20,000 was proposed to be given as a grant to the Shelter Association of Washtenaw County, which operates the Delonis Center.

Deliberations were brief, with board member John Mouat getting clarification on the total number of beds the money would purchase and how they were categorized: 25 of the beds would be heavy-duty “cots” for the Delonis Center itself; 25 of them would be the set of “bedding” materials used in the rotating warming shelter, which is located at local churches.

Mayor John Hieftje explained that the initiative had come from a working group including himself, councilmembers, city/county staff, and other community members, which had been meeting over the last several weeks.

In support of the same initiative, the Ann Arbor city council will be asked at its Nov. 5 meeting to authorize an expenditure of $159,000 from the city’s housing trust fund, which will provide case management support and vouchers for family housing.

Outcome: The board unanimously approved $20,000 for beds to be used at the Delonis Center and the rotating shelter.

The LINK: “Not Just a Cute Purple Bus”

At the Ann Arbor Transporation Authority’s special meeting held last week  at Weber’s Inn, as AATA CEO Michael Ford added the LINK to a PowerPoint slide, he mentioned that there were some people interested in bringing back the downtown circulator bus service. [Previous Chronicle coverage: "No Funding for LINK bus ... For Now" and "AATA to Arborland: We Could Pay You Rent"]

Earlier in the year, the DDA did not renew the grant support that would have allowed the resumption of the LINK service in the fall after its usual summer hiatus.

The resolution before the DDA board on Wednesday expressed support for a partnership with the AATA “to develop the elements of a successful downtown Ann Arbor circulator in partnership with the DDA.” In presenting the resolution to his fellow board members, John Mouat, chair of the DDA’s transportation committee, reported that the resolution had come as a result of further study of the LINK by the transportation committee.

Mouat reported that the work of the DDA’s intern, Amber Miller, in researching examples of successful downtown circulators in other small cities had been useful to the committee. It had convinced the committee, he said, that such a thing was possible. He was also encouraged that Michael Ford and AATA’s director of service development, Chris White, attended the transportation committee meeting.

Among the features to be considered for the re-invented LINK, said Mouat, included:

• Don’t include the University of Michigan’s Oxford Housing on the route
• Reduce number of stops (to speed up the service)
• Route should help patrons get to South University, State, Main, and Kerrytown
• Locate stops to foster connectivity
• Offer 7-day service
• Consider special event use
• Consider use of service for integrating the UM campus into downtown

Board member Keith Orr, in expressing his support for the resolution, stressed that there was no funding component. The expectation from the AATA, Orr said, was that the AATA board would respond with a similar resolution. This would give the AATA staff the necessary confidence that boards of both organizations were in support of the service, Orr explained. Previously, the LINK was perceived partly as a downtown marketing tool more so than a piece of the transportation system, and the idea was to put the LINK squarely in the realm of transportation.

Board member Jennifer Hall suggested an amendment to the resolution that added a “Whereas” clause to make clear why the LINK did not re-appear in the fall: The board had not considered and declined a grant to continue funding, but rather had not appropriated a grant in order to continue study of the issue. She would later echo Orr’s emphasis on the role that the AATA needed to play in developing the LINK system going forward, stressing that it was a part of the transportation system as opposed to a downtown marketing program: “The LINK is not just a cute purple bus.”

Hall’s suggested amendment passed unanimously.

Board member Russ Collins suggested that the additional language might have been added as a friendly amendment, instead of taking a vote on it – a point that board chair John Splitt would later use for humorful effect.

Collins also observed that while the language that the transportation committee had chosen to describe the types of businesses served by the LINK included retail and restaurants, but not “arts and entertainment.” This was met with a chorus of playful ooooooh’s from his fellow board members – Collins is executive director of the Michigan Theater. Collins also put the LINK in the historical context of his recollection of 30 out of the last 50 years of downtown – there’d been a lot of attempts to implement downtown circulators, but they’d all failed due to lack of ridership.

Collins noted that the majority of the riders on the LINK before it was discontinued were affiliates of the University of Michigan and that this raised the question of where the money to fund its operations should come from.

Collins then returned to a theme he’s consistently emphasized over the last year in discussions on the LINK: The DDA itself is not a transportation authority, and design of the service should rely primarily on the expertise of transportation planners, not community discussion that could become politically co-opted. [See, for example, Chronicle coverage of a 2008 DDA retreat: "Trick or Retreat: DDA Board Plans Year"] At Wednesday’s meeting, Collins suggested that the board “let professionals, not amateurs, tell us what’s going to work.”

Collins asked how the resolution addressed his concern that the AATA should be responsible for planning the service. In response, Orr and Mouat pointed to the specific mention of the AATA’s expertise in the resolved clauses, and the transportation committee’s conscious choice not to include specification of routes in the resolution.

Collins suggested that the DDA board needed to steel itself for the calls they might get from business owners who wanted to know why the LINK did not to run past their business or stop in front of it.

Board member Leah Gunn then “called the question” – a procedural move to end deliberations and vote. The board voted in favor of Gunn’s motion, and was ready to vote on the resolution. Then Splitt noticed that Mayor John Hieftje had wanted to address the question. Splitt deferred to the mayor, who noted that there was a fair question of whether this was the best use of transportation dollars. Splitt then quipped that this was the last time he’d make an exception for the mayor on the procedural issue and that during his time as chair the board there would also be no friendly amendments to resolutions.

Outcome: The resolution expressing support for a DDA-AATA partnership on the LINK downtown circulator passed unanimously.

Underground Parking Structure Construction Manager

The Christman Company had previously been selected as the manager of pre-construction services for the underground parking garage to be constructed along South Fifth Avenue at the city-owned lot next to the downtown library. Based on performance during the pre-construction phase, Christman was to be awarded the contract for construction manager of the project.

Board member Roger Hewitt indicated that Christman had performed up to expectations on the pre-construction phase. The guaranteed maximum construction price of $44,381,573, he explained, included the fixed fees for Christmas determined during pre-construction, with all other work to be competitively bid.

The price summary provided in the board packet shows that the single most expensive component of the project is for structural concrete – almost $20 million worth. [.PDF file of Nov. 4, 2009 board packet.] This explains why the companies that bid for the construction manager job, but did not win the contract, are still following the project. With their own in-house concrete teams, they’ll be bidding for that $20 million worth of concrete work in a closed bid process against Christman, which is managing the project.

Board member Leah Gunn expressed her agreement with Hewitt on Christman’s performance.

Outcome: The resolution to award the construction manager contract and accept a guaranteed maximum price for the underground parking structure of $44,381,573 was approved by the board with dissent from Jennifer S. Hall.

Construction Updates

John Splitt reported out from the capital improvements committee on the Fifth and Division streetscape improvement project, as well as the underground parking structure. Brick is being laid along Division Street, which has gone slower than anticipated, but is catching up. Water main work is taking place at the intersection of Division and Liberty, but is expected to be completed by the end of the week, Splitt reported.

DTE and AT&T were moving utilities for the underground parking garage. Some of the easements were still being worked out, but work was moving ahead, Splitt said.

The wayfinding sign project continues, as does tweaking of those signs, Splitt said. The first of the signs that needed approval by the Michigan Department of Transportation have been installed, reported Susan Pollay, executive director of the DDA. Those are located on Jackson Road near Westgate. “You are here” maps for the information stations will arrive shortly. Splitt said that the tweaking and corrections would be implemented when installation of all the signs was completed, so that it could be treated as one unified process.

Energy Grants

Board member Sandi Smith, who’s also on city council, reported out from the partnerships committee on the energy grant program. The program, now in its second year, provides support for property owners downtown to have their buildings audited and to implement improvements. Phase I is the audit, while Phase II is the implementation. This year, 50 applications for Phase I have been received, reported Smith, which included 692,000 square feet of space. Those applications were all approved.

Parking and Finances

Roger Hewitt, chair of the operations committee, reported nothing unusual from the first-quarter’s finances. He pointed out explanations for some apparent discrepancies, including direct parking expenses that were already at 44% of their budgeted amount. That’s because the DDA has already made the $2 million payment to the city as part of its agreement with the city to manage the parking system.

The DDA and the city face coming negotiations over that agreemeent, which has been the subject of considerable controversy. [Chronicle search results of articles on that subject.]. Smith reported that there was nothing to report from the committee charged with the task of negotiating that agreement – the “mutually beneficial committee.”

The parking system continues to show increased demand, reported Hewitt. Compared to the first quarter from last year, there was a 8.13% increase in revenues and a 23.08% increase in the number of hourly patrons. Mayor John Hieftje joked that the data should be sent to Lansing and Washington D.C. as a leading indicator showing signs of a recovery.

Board members Smith and Jennifer Hall asked for future parking data reports to include information on specific events and the number of spaces in each structure and lot, so that changes in the numbers could be more easily understood.Hewitt indicated that he’d see what he could come up with.

Russ Collins said that as the board’s new treasurer, he’d be looking at ways to condense the financial information that was presented at the whole board level in order to facilitate greater clarity. The details, he said, would still be available, or course, to any board member or member of the public, and attendance at the operations committee meetings was open as well.

Other Business

Board member Russ Collins, reporting out from the partnerships committee, said that two requests for grants had been put off for now, but not rejected. One was from the Near North affordable housing development in which Avalon Housing is a partner. The other was from the Arts Alliance, which is seeking support for development of a web portal. The idea of the web portal was pitched to the whole board at its October meeting by the alliance’s president, Tamara Real.

From the transportation committee, John Mouat presented a table reflecting the committee’s work of identifying high-impact, low-cost strategies for improving the quality of the pedestrian experience downtown. This was met with particular enthusiasm from Russ Collins. Among the items identified was “minimize sidewalk obstructions, including café tables/chairs, no bike riding on sidewalks.”

Public Comment

Ray Detter: Detter gave his monthly update from the meeting of the Downtown Area Citizens Advisory Council, touching on two main points: (i) the A2D2 rezoning effort, and (ii) the Downtown Ann Arbor Historic Street Exhibit Program. With respect to the first of these, Detter said that there were 14 representatives from 8 different downtown neighborhood associations that had been meeting every Monday focused on the design guidelines that would be proposed, and providing feedback to the city council as quickly as they could. They were advocating for a mandatory process with voluntary compliance initially, which could perhaps evolve to a mandatory compliance system.

Later in the meeting, DDA board member Roger Hewitt, who’s a member of the A2D2 steering committee, would indicate that city council action on A2D2 was anticipated at its Nov. 16 meeting. The steering committee would be meeting on Nov. 19 to discuss where they should go from here.

The street exhibit program, Detter said, had begun with a $50,000 grant from the DDA, and had grown to a $1 million project funded largely through private sources. It serves to activate downtown and give it a sense of identity, Detter said. He reported that 200 students from Skyline High School had been brought to downtown Ann Arbor and run through tours using the street exhibits, and that this represented 200 students who are now connected to the downtown.

Alan Haber: Haber introduced himself as an Ann Arbor resident who lived on Third Street who was involved with a group of people developing a proposal for the top of the underground parking garage. [The city of Ann Arbor has issued a request for proposals (RFP) for the lot.] He was there, he said, mostly to say hello and to encourage the DDA board to give his group’s proposal some thought. That proposal was not for dense development, but rather for a community gathering place – a “front porch” for Ann Arbor. He said the group’s focus was on development of community, not development of buildings.

Present: Gary Boren, Jennifer Hall, Roger Hewitt, John Hieftje, John Splitt, Sandi Smith, Leah Gunn, Russ Collins, Keith Orr, Joan Lowenstein, John Mouat.

Absent: Newcombe Clark.

Next board meeting: Noon on Wednesday, Dec. 2, at the DDA offices, 150 S. Fifth Ave., Suite 301. [confirm date]

Leigh Greden, who chaired the meeting as fourth in the line of mayoral succession, did not at any point abuse the temporary power by saying, "Everybody show me your hands!" Sabra Briere (Ward 1) and Stephen Rapundalo (Ward 2) are in fact sussing out which version of the Argo Dam resolution the city clerk had circulated. (Photo by the writer.)

Ann Arbor City Council meeting (Oct. 19, 2009): A city council whose ranks were reduced by four members – due to family medical issues and personal illness – tabled a resolution on Argo Dam that would have expressed the body’s intent to keep Argo Dam in place and to perform necessary repairs mandated by the Michigan Department of Environmental Quality.

The tabling came only after long deliberations, which included a recess, and focused mainly on the question of tabling versus postponing until a date certain.

Several people spoke during reserved public commentary time on the issue of Argo Dam. But the dam question was somewhat overshadowed for some in the audience by a presentation on homelessness at the beginning of the meeting from Mary Jo Callan, who’s director of the combined county-city office of community development. Said one speaker during public commentary: “After hearing the stats on homelessness, I’m ashamed to be standing here talking to you about Argo Dam.”

The presentation on sheltering the homeless – especially during the winter – included a specific call to action from Ellen Schulmeister, director of the Shelter Association of Washtenaw County. She asked community members to start conversations at their churches, synagogues, mosques or other community groups about how they might be able to provide volunteer support and space to expand the current rotating shelter program. Schulmeister asked that the conversations begin now, “So that when we ask, you’re ready to go.”

In other major business, the city council authorized the expenditure of $100,000 for removal of five failing beams on the East Stadium bridge over State Street – beams which run under a portion of the bridge currently closed to traffic. The work is scheduled for Sunday, Nov. 15 through Tuesday, Nov. 17 and will require the closing of State Street during the work.

The council also approved the next step in the creation of a Business Improvement Zone (BIZ) along Main Street between William and Huron streets.

“These people are not strangers. They are our neighbors.”

Background to the presentation on the homeless

Mary Jo Callan’s presentation to city council on the specific strategies that are under consideration to increase sheltering capacity short-term – as well as to increase the number of affordable housing units in the longer term – came in a context of recent heightened community awareness of the plight of the homeless population in and around Ann Arbor.

Slide from a presentation given at city council's Oct. 19 meeting showing the faces of the homeless.

That awareness has come in part from publicity surrounding a tent community, Camp Take Notice, which was evicted in September from its location behind Arborland, as well as from an area just north of the park-and-ride lot at Ann Arbor-Saline and I-94, where it had re-located. [Previous Chronicle coverage: "Laws of Physics: Homeless Camp Moves"]

The city council has also heard from advocates for the homeless at public commentary during some of its recent meetings. And a public demonstration in front of the Delonis Shelter last week called attention to the arraignment of a homeless camper on charges of trespassing. [Stopped.Watched. item: "Delonis Center on Huron"]

Callan’s presentation stemmed in part from a series of at least three meetings held in late September and early October among key community leaders and staff to explore alternatives to address the situation. The meetings included Sabra Briere (Ward 1), Sandi Smith (Ward 1), Ellen Schulmeister (director of the Shelter Association of Washtenaw County), Susan Pollay (executive director of the Downtown Development Authority), Jennifer L. Hall (housing program coordinator in community development), Andrea Plevek (human services analyst), Deb Pippins (program administrator for PORT), and Mayor John Hieftje.

Camp Take Notice, which hews to a principle of self-governance, has asked local churches to sponsor the camp in the form of land use. Discussion at the series of meetings reflected some of the obstacles to the support of encampments as part of a community strategy of sheltering those without homes. Besides concerns about the necessary sanitation infrastructure (chemical or composting toilets) and fire hazards arising from attempts to heat tents, there are worries about legal liability. Still, at least one congregation locally is exploring the possibility of responding to the camp’s request.

Callan’s presentation to council acknowledged the homeless camps in and around town, putting the total estimated numbers at anywhere from 30 to 80 people. The residents of such camps had a variety of histories, Callan said. Some people have been through the existing shelter system and are still homeless, while others are unwilling to follow program guidelines on sobriety, and still others do not want to participate in a shelter program at all.

The strategy that Callan presented was not centered around homeless camps. After sketching out a fairly grim statistical picture, Callan described some short-term expansions of the existing shelter system, plus longer-term affordable housing solutions. Total estimated cost of the short-term solutions could reach close to $200,000 for a full year of implementation.

Statistics on the growing crisis and existing capacity

Callan projected numbers on the wall showing the increased demand on area shelters: The number of single adults has increased 20% from 919 to 1,106; the number of chronically homeless adults has grown 33% from 179 to 238; and the number of families has risen 29% from 368 to 474, which reflects an increase in total family members from 1,162 to 1,359.

Those numbers have had an impact on organizations that provide shelter. The Interfaith Hospitality Network has received a 16% increase in calls for shelter, but perhaps more significantly, the group has seen a 52% increase in length of shelter stay. SOS Community Services has seen a 22% increase in requests for housing crisis services. The Salvation Army has served 11% more people at its shelter and seen a 30% increase in assistance requests for the newly unemployed. The Shelter Association of Washtenaw County has served 44% more people.

The current local shelter inventory presented by Callan includes 159 beds and 50 places for single adults in the winter only:

Shelter Association of Washtenaw County
     Delonis Center – 50 beds (individual adults)
     Delonis Center – 25 chairs serve as warming center
     Winter Rotating Shelter – 25 overnight spaces (individual adults)
Salvation Army: 35 beds (families and individual adults)
SOS: 6 family units/24 beds (families only)
Interfaith Hospitality Network (IHN):  6 family units/24 beds (families only)
Ozone House: 6 beds (youth only; ages 10 to 17)

-

Proposed short-term action

The proposed short-term actions, which Callan acknowledged are only temporary, have as a goal to keep more people safe during the approaching cold weather. As Ned Staebler put it later in the meeting, the effort is partly to make clear that “This is not the kind of place where we let people freeze to death on the streets.” [Staebler, who recently announced his candidacy for state representative in the 53rd District, chairs the Housing and Human Services Board.]

There are two components to the short-term strategy – one for individuals and one for families.

The first is to increase by 50 spaces the sheltering capacity for individual adults. This is proposed to be accomplished, Callan said, by (i) increasing the number of winter rotating shelter spaces from 25 to 50, and (ii) adding 25 beds to the Delonis Shelter. The increase in Delonis beds would be accomplished by moving the warming center to community kitchen space through the winter.

Cost for the single-individual component of the short-term strategy would be $25,000 for the winter, or $55,000 for the full year.

The second component of the short-term strategy is to provide housing vouchers (a rent subsidy) for 10 additional families. Callan explained the conceptual difference in the approach to families versus individuals by pointing out there is no equivalent to the Delonis Center for families. So there’s no existing family shelter facility where some additional space can be eked out. A temporary shelter-type response would entail creating a new group shelter space and support structure. [One possibility considered and rejected in the course of the three meetings of community leaders and staff was to remodel the Ann Arbor Community Center].

Instead of temporarily sheltering families for a short time all at one location, the idea of vouchers is to allow families to provide for the potential of longer-term stability in housing that could be permanent – at least through a complete school year, so that children would not need to switch schools. The cost of rent vouchers for 12 months would be similar in cost to a group shelter for 4 months, Callan said. She described the plan to work with the nonprofit Avalon Housing, the Ann Arbor Housing Commission, and private landlords to fill vacant rental units.

Cost of the family component of the short-term strategy would be $45,000-$55,000 for the winter, or $140,000-$155,000 for a full year.

In responding to Callan’s presentation, Stephen Rapundalo (Ward 2), who also serves on the Housing and Human Services Board, asked Callan to address the other increased costs that are incurred with increased numbers of homeless people. Callan said she could not offer a dollar amount, but that there were additional costs associated with public safety, incarceration, and mental illness interventions.

Leigh Greden (Ward 3) drew out for emphasis the part of Callan’s presentation where she discussed the longer-term measures that the city had undertaken: Since 2005 there had been 58 new units of supportive housing created, and 161 units maintained. Greden asked her to explain what “supportive housing” is. Callan clarified that while “affordable housing” meant that it was accessible to poor people, “supportive housing” was accessible to those who had more challenges related to housing stability than just financial issues. Supportive housing, she said, was for people who needed help through life skills training, case management services, or psychiatric services.

Sandi Smith (Ward 1), in addition to clarifying what the cost of the proposed short-term solutions would be, drew out the specific ways that community members can provide their assistance to meet the immediate short-term need. Ellen Schulmeister, director of the Shelter Association of Washtenaw County, identified the rotating shelter expansion as an area where community volunteer help would be needed. Currently, congregations at different churches take one-week shifts staffing temporary warming shelters at their churches. The Delonis Shelter checks in people before they’re transported to the churches.

Ned Staebler, who spoke to council in his capacity as chair of the Housing and Human Services Board, responded to Smith’s question of specific ways people could help by suggesting that they look to whatever nonprofit or community group they were members of. Staebler, in his previous remarks to the council, had characterized the homeless population this way: “These people are not strangers. They are our neighbors.”

A funding request for the short-term proposal could come before the city council at its Nov. 5 meeting.

Artist's conception of what the Huron River would look like if Argo Dam were removed. (Image links to higher resolution file.)

Argo Dam

Eight of the 10 speakers who signed up for reserved time to speak during public comment at the start of the council meeting addressed the issue of Argo Dam. [For preview Chronicle coverage, see "Finally a Dam Decision on Argo?" ] Notable among those who spoke in favor of keeping the dam in place was Bob Johnson, former Ward 1 representative to the city council. Laura Rubin, executive director of the Huron River Watershed Council, spoke in favor of the dam’s removal and for a formal public hearing by city council on the issue.

Rubin showed the council an artist’s rendering of the river with the dam removed. That prompted some commentary from speakers who weighed in for keeping the dam, who questioned whether the river would follow the same course downstream from the dam that it currently does.

For council’s part, their deliberations focused exclusively on the question of process, as opposed to the dam-in/dam-out question. At the beginning of the meeting, the dam resolution was moved forward on the agenda, to the slot just after the consent agenda, in consideration of the many attendees who were in council chambers for that item alone.

Stephen Rapundalo (Ward 2), one of the sponsors of the resolution, began by indicating he’d be moving to postpone it until the first council meeting in December. But before making the motion for postponement, he said he wanted to set the record straight with regard to some specific issues. On the question of adequate public input, he recalled how the subject has been talked about for nine years, and ticked through the various points of public process along the way, summarizing by saying that there’d been “quite a lot of dialogue.”

Sue McCormick, the city’s director of public services, had delivered an update to council at its Sept. 8 meeting. Rapundalo reported that after that update, Marcia Higgins (Ward 4), who was the lead sponsor of the resolution, had begun communications with himself and the mayor to try to be proactive about addressing infrastructure issues identified by the MDEQ – the toe drains in the earthen berm, which needed repair or replacement.

The desire to fix the basic infrastructure and to “clear the decks” with the MDEQ had been the only motivation behind the resolution, Rapundalo said. He expressed discomfort with the idea of going to court with MDEQ, saying that there were many higher priorities for the city to deal with, such as the approaching budget season. [At the budget and labor committee meeting immediately prior to the council meeting, councilmembers and Tom Crawford, CFO for the city, began calendaring the process, with the idea of slotting in certain elements slightly earlier than last year. For example, the council's budget retreat may be convened in December instead of January, as it was last year.]

Rapundalo also indicated that he wanted a public hearing attached to the meeting when the resolution would be considered.

There was mild confusion when Rapundalo expressed some frustration that the most recent version of the resolution was not reflected in the council’s packet, despite assurances from staff that it had been updated. Subsequent sleuthing at the table indicated that the version he’d sent via email 20 minutes earlier was accurately reflected in the online packet.

When it appeared that the updated text would not be read into the record, Christopher Taylor (Ward 3) weighed in to point out that the newly revised council rules on electronic communications required that the language be read aloud, and Rapundalo then did so.

Sandi Smith (Ward 1), who was a co-sponsor of the resolution, then addressed the issue of whether there should be a public hearing on it. She said that from her point of view, the expectation of a public hearing had always been attached to a resolution on the dam-in/dam-out question – which this resolution was not. This resolution, she contended, was not meant to decide the longer-term issue, but was meant to address the shorter-term maintenance issue.

Based on the original text of the resolution posted with Friday’s agenda addition – which meeting attendees may have had in mind – Smith’s contention could have been somewhat confusing. But given the revision that Rapundalo read aloud, her remarks make more sense. Here’s the revised version with some emphasis added:

Resolution Pertaining to Argo Dam [Revised]

WHEREAS, The City of Ann Arbor has for years owned and maintained several dams along the Huron River, and
WHEREAS, Studies of the Huron River have raised the question of the need to manage the river and each of the impoundments created by these dams, and
WHEREAS, The Argo Dam and Argo Pond have recently become the focal point for considerable discussion about the “pros and cons” of keeping the Argo Dam in place, and
WHEREAS, The Ann Arbor community enjoys many recreational opportunities and environmental attributes created by the existence of Argo Pond within the Huron River system, and
WHEREAS, The best interests of the Ann Arbor community will be served by preserving the Argo Dam at this time given its sound structural integrity, and
WHEREAS, The Argo Dam includes several associated structural features, including the “headrace embankment”, which has drawn the concern of the Michigan Department of Environmental Quality (MDEQ) for safety reasons related to the adequacy of toe-drains which are designed to drain seepage from the headrace, and
WHEREAS, Repairs to the headrace embankment could be completed for a small fraction of the cost of removing the entire dam, and therefore be it

RESOLVED, The Ann Arbor City Council declares its intent to maintain the Argo Dam and Argo Pond for the time being and allow staff to develop and implement specific strategies to mitigate any infrastructure deficiencies with the headrace embankment and thereby satisfy the MDEQ’s requirements, and
RESOLVED, The Ann Arbor City Council directs the City Administrator to take actions in support of this declared intent, including identifying a timetable and necessary funding sources to support the infrastructure improvements.

The original resolution differs mostly by ordering and the lack of temporal qualifiers:

Resolution Pertaining to Argo Dam [Original]

WHEREAS, The City of Ann Arbor has for years owned and maintained several dams along the Huron River;
WHEREAS, Studies of the Huron River have raised the question of the need to manage the river and each of the impoundments created by these dams;
WHEREAS, The Argo Dam and Argo Pond have recently become the focal point for considerable discussion about the “pros and cons” of keeping the Argo Dam in place;
WHEREAS, The Ann Arbor community enjoys many recreational opportunities and environmental attributes created by the existence of Argo Pond within the Huron River system;
WHEREAS, The Argo Dam includes several structural features, including the “headrace embankment”, which has drawn the concern of the Michigan Department of Environmental Quality (MDEQ) for safety reasons related to the adequacy of toe-drains which are designed to drain seepage from the headrace;
WHEREAS, Repairs to the headrace could be completed for a small fraction of the cost of removing the entire dam; and
WHEREAS, the best interests of the Ann Arbor community will be served by preserving the Argo Dam and all the amenities associated with the dam,

RESOLVED, The Ann Arbor City Council declares its intent to maintain the Argo Dam and Argo Pond and directs the City Administrator to develop specific strategies to mitigate any infrastructure deficiencies with the headrace embankment to satisfy the MDEQ’s requirements, and to take actions in support of this declared intent, including identifying a timetable and necessary funding sources to support the work.

Carsten Hohnke (Ward 5) asked for a recess in order to adequately assess the language of the resolution, pointing out that the most recent revision had been emailed only 20 minutes ago, and that even the original text of the resolution had come relatively late – on the previous Friday.

Hohnke’s request for a recess was granted by Leigh Greden, who chaired the meeting in the absence of Mayor John Hieftje, Marcia Higgins (Ward 4), and Margie Teall (Ward 4), who precede him in the line of mayoral succession.

On return from the recess, Christopher Taylor (Ward 3) weighed in against the idea of postponing, saying that tabling the resolution instead was the proper thing to do.  The resolution as it was written, Taylor contended, clouded the intended effect, which was to decouple the issue of the dam-in/dam-out question from the issue of needed repairs to the earthen berm. Instead of decoupling those two issues, Taylor said, the language of the resolution intertwined them.

Taylor was concerned that by postponing the resolution to the first meeting in December, there would not be an opportunity to alter the language so as to make clear to the public what the language would be for the resolution on which the public hearing would be held. He sketched out how the tabling would allow council to bring back the resolution at a subsequent meeting, revise the language in a way to clarify that the two issues of dam-in/dam-out versus the need to repair were decoupled, then postpone to a certain date with the attached public hearing – something he allowed was a “tortured process.” But, he concluded, “That’s what happens under circumstances such as these.”

In a  follow-up to an emailed query after the meeting, Taylor wrote to The Chronicle that what he had in mind was a single resolution for a future council meeting that would achieve alteration of the language in a way that would be transparent as to council’s intent concerning the fate of the original resolution: “I think there should be a single resolution to de-table [the original resolution], amend, postpone to a date certain and hold a related PH [public hearing] on that date. This resolution should appear in the initial packet [of meeting materials].”

Sabra Briere (Ward 1) echoed Taylor’s sentiments, saying that by postponing the resolution, the issue of whether to keep the dam in the longer term was coupled with the intent to repair the berm. She said she’d rather not see those issues coupled.

In light of Taylor’s comments, Smith then clarified with city attorney Stephen Postema that it was possible to amend the language of the resolution in the future, whether it was postponed or tabled. [Taylor's point, however, had seemed to be about the timing of the alteration of the language, not about the possibility of altering the language per se.] She then said she felt she’d rather vote down the postponement and vote down the resolution itself, and then bring back a different resolution with clearer language.

Carsten Hohnke (Ward 5) queried Smith about her preference: Did she want to decide the resolution tonight? Answer: Yes. Smith said she’d vote no on tabling, postponing and the resolution itself.

For his part, Hohnke said that his preference was to table the resolution, saying that the phrase “for the time being” was incredibly unclear for a resolution of this magnitude.

Rapundalo, arguing for the postponement instead of the tabling, suggested that to achieve the timing of the alteration of language that Taylor wanted in advance of a public hearing, a second postponement could be moved. Tabling it, Rapundalo contended, makes it “out of sight, out of mind. We want to keep it on the front burner … The greatest failure is that council hasn’t acted.”

City attorney Stephen Postema advised that to execute Rapundalo’s suggestion of two successive postponements – one to get the language right, and the second to postpone to the date when council planned the public hearing and its vote – it would be best to unlink the public hearing from the postponement that council was at that moment considering.

Rapundalo was able to unlink the hearing from the postponement, only because Briere moved to suspend the council rules to allow him to speak a third time. Typically, motions to suspend the rules apply generally to all councilmembers, but this one was specific to Rapundalo, which prompted him to quip, “I feel honored!”

Greden weighed in last saying he was against the postponement, adding that the council should either table it or vote on the resolution and vote it down. The roll call vote had only Rapundalo in support of postponing to December.

Smith then moved to table the resolution.

Outcome: The council voted unanimously to table the resolution on the Argo Dam.

Stadium Bridges

A recent report from a engineering consultant, who was asked to perform an extra inspection of the East Stadium bridges, recommended removal of five beams supporting the section of the bridge (the southern lanes) that has been closed to traffic. They are no longer performing their designed function, the report states, and leaving them in place poses the potential hazard of falling pieces of concrete to traffic traveling on State Street under the bridge. The winter freeze-thaw and the use of de-icing salts would tend to exacerbate that potential hazard.

Before council were two resolutions concerning the bridges. One was to authorize the city administrator to enter into a construction contract to remove the five beams (up to $100,000) and the second was for an agreement to relocate power lines near the bridge to be out of the way of construction cranes ($340,000).

Michael Nearing, a city engineer and senior project manager, explained to the council that the beam removal was out for bid with three different companies.

Homayoon Pirooz, project management manager with the city of Ann Arbor, apprised the council that the beam work was planned in a way to have a minimal impact on Stadium Boulevard traffic. Pirooz indicated that it was planned for a Sunday through Tuesday. [It's now planned specifically for Sunday, Nov. 15 through Tuesday, Nov. 17] After the work is done, the traffic pattern on the bridge will be the same as it is now. What will be different is that concrete barriers will prevent cars from driving off the new southern edge of the bridge, as opposed to the current orange barrels that provide a visual cue not to traverse the southern lanes.

At Mike Anglin’s (Ward 5) request, Pirooz reminded the council of the funding possibilities. The TIGER grant for which the city has applied could fund the entire $21 million cost, but there’s intense national competition for those grants. [TIGER stands for Transportation Investment Generating Economic Recovery, a federal program.] Notification on the outcome of the TIGER grant application will come no later than Feb. 17, 2010, but it could come sooner. There’s a  federal highway re-authorization bill that has support for earmarks from Ann Arbor’s Congressional delegation. And finally, the state’s Local Bridge Program offers a chance for as much as $2-3 million, Pirooz said. There’s a meeting on Nov. 5 of the Local Bridge Program administrators – Ann Arbor will make a presentation at that meeting, and funding will be determined then.

Leigh Greden (Ward 3) added that there are also various other alternative funding sources the city is exploring with the help of state Rep. Rebekah Warren.

Outcome: The council voted unanimously to approve both resolutions related to the Stadium bridges.

Ed Shaffran, who's one of the leaders of an effort to establish the BIZ on Main Street. (Photo by the writer.)

Business Improvement Zone

[See previous Chronicle coverage on the proposed BIZ between William and Huron streets on South Main, based on last week's city council work session: "Trains, Trash, and Taxes"]

Before the council was a resolution to support the creation of a business improvement zone by authorizing the city clerk to begin public notifications associated with the next phase in the process, which city administrator Roger Fraser described as “not one of the most swift,” saying that he admired the perseverance of the people involved.

Two people spoke during time reserved for public commentary at the beginning of the meeting. Bob Dascola, who owns a barbershop on State Street, said that his family had been in business in Ann Arbor for more than 70 years. In support of the BIZ he cited the example of Boulder, Colo., where a business improvement district, which is similar to a BIZ, had so well enhanced the downtown area that it had put a mall out of business on the edge of town.

Lee Adams introduced himself as a masters of urban planning student at the University of Michigan who had interned at a BID in Washington, D.C. He spoke in favor of the council’s initiation of the next step in the process for creating a BIZ on Main Street. He said the fact that Main Street was iconic – as evidenced by the recent American Planning Association designation as a Great Street – meant that it was worth continued investment. A BIZ would help business retention and growth, plus provide a unified voice for business owners, as well as economies of scale for services.

Leigh Greden (Ward 3) noted that supporters of the BIZ in the audience “looked content.” They were not asked to the podium to answer questions, nor did they wish to communicate additional information to the council.

Outcome: The council voted unanimously to authorize the next step in the creation of the BIZ on South Main.

Planned Unit Development (PUD) Proposals

The council considered two different PUD rezoning proposals. The first related to a Briarwood Circle location where two four-story hotels, consisting of 227 rooms and 227 parking spaces, are proposed.

The second, for Casa Dominick’s, concerned a consolidation of properties under one zoning classification on Monroe Street, and addresses existing zoning nonconformities. The expanded PUD district comprises four areas (A, B, C and D) for regulation purposes. Areas A and B will permit restaurant; residential; grocery, prepared food and beverage sales; classroom and educational instruction; beauty salon; general, medical and dental office uses. Area C will permit hotel and residential use. Area D will permit artists and craft studios with sales and residential use.

Public Commentary

Thomas Partridge: Partridge spoke at the public hearings on both PUD proposals. He asked the council not to approve any zoning changes until there were ordinance changes and amendment to the PUDs to assure access to public transportation to the sites and a requirement that developers pay into a fund to finance development of affordable housing on adjacent sites.

Earl Ophoff: Ophoff, of Midwestern Consulting, spoke in connection with the Briarwood Circle hotel project, essentially just to establish that he was present and available to answer questions when the council took up the matter for a vote.

John Barrie: Barrie spoke on behalf of the owner of Casa Dominick’s. He described the zoning revision as addressing the land’s transitional function between the University of Michigan campus, which surrounds it on three sides, and the residential neighborhood to the south. The rezoning, he said, would allow for slightly greater density and would consolidate all of the restaurant uses on one property.

Outcome: The council unanimously approved both PUD proposals.

Communications from Council

In his communications from council, Christopher Taylor (Ward 3) noted that council’s recent revisions to its rules didn’t constitute an ethics policy. He indicated that in the next couple of weeks, there would be a policy brought forward to fill that gap.

Mike Anglin (Ward 5) called attention to a fundraiser for Meals on Wheels to be held at the Big Boy on Plymouth Road on Nov. 5 from 5-9 p.m. The public can participate by going to the restaurant and eating during that time period, with tips going to the nonprofit.

Carsten Hohnke (Ward 5) reported that the Ann Arbor Skatepark Action Committee had held a workshop the previous day, which was facilitated by skatepark designer Wally Hollyday.

Public Commentary: End of Meeting

Often there are no members of the public who choose to address the council at the end of its meeting. At this meeting, however, five people made remarks to the council.

Thomas Partridge: Partridge noted that he’d called repeatedly for the last decade for the city to join with other municipalities to facilitate regional transportation, but had repeatedly been disappointed by the 7-member Ann Arbor Transportation Authority board. He alluded to the “AATA’s war against disabled people,” and said that the focus should not be on high-speed rail or service to the airport, but rather on basic bus service.

Tim Hull: Hull introduced himself as a graduate student in the school of information at the University of Michigan and expressed concern about the proposed changes in bus service as a result of the new Plymouth Road park-and-ride lot. He told council that while the AATA is proposing to continue weekend service on Route #2 on Green Road as far south as the park-and-ride lot, the weekend service on Route #2 on Green farther south and on Glazier Way and Earhart is proposed to be discontinued. He asked council to consider a focus by the AATA on residents as contrasted with commuters, and suggested that they look for future AATA board members who lived within the AATA service area.

Kathy Griswold: Griswold thanked councilmembers for the work they’d done so far on getting a crosswalk installed at the intersection of Waldenwood and Penberton drives, which would move it from its current mid-block location. She asked that action be taken within the next few weeks, while the concrete season lasts.

Jacob Djakovic: [spelling unconfirmed] He described an outdoor architectural tour beginning and ending at Liberty and Maynard streets, which he’d like to offer people for a fee. He was trying to make sure that in setting these tours, he did not violate any local laws. He’d heard some reaction that Nickels Arcade, for example, might not be a suitable location through which to lead a tour. He asked for any advice on relevant policies that might help him prepare.

Edward Vielmetti: Vielmetti told the council that on Oct. 6 he’d requested under the Freedom of Information Act all records related to sidewalk repair, including communications with the homeowner, for an address on Gott Street. He thanked the city staff, saying that the sidewalk had been repaired about 10 days after he’d made the request.

Present: Mike Anglin, Sabra Briere, Leigh Greden, Carsten Hohnke, Stephen Rapundalo, Sandi Smith, Christopher Taylor.

Absent: Tony Derezinski, John Hieftje, Marcia Higgins, Margie Teall.

Next council meeting: Thursday, Nov. 5, 2009 at 7 p.m. in council chambers, 2nd floor of the Guy C. Larcom, Jr. Municipal Building, 100 N. Fifth Ave. [confirm date]