Two other establishments – The Arena and Café Zola – had originally been on the list but had been removed by the time of the council meeting because they’d resolved their outstanding issues. They had all been on the list for potentially being recommended for non-renewal due to non-payment of personal property taxes.

The council’s Feb. 3 action also appointed Jane Lumm (Ward 2) as the hearing officer. Lumm serves on the council’s liquor license review committee, along with Mike Anglin (Ward 5) and Sumi Kailasapathy (Ward 1).

Lumm served as the hearing officer for this kind of proceeding in 2013 as well. Also on that occasion, Banfield’s Bar & Grill, Café Zola and The Arena were on the hearing list. However, by the time of the hearing, Café Zola had resolved its issue. And at the hearing itself, Banfield’s Bar & Grill made an arrangement to resolve its outstanding issue.

Only the hearing on The Arena ultimately resulted in a city council recommendation to the state liquor control commission not to renew a license. Subsequently, The Arena did pay its taxes, and the council withdrew its objection to a license renewal for The Arena.

This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron.

Ingrid Sheldon, a member of the Our New Downtown Library campaign committee, reviews her notes before speaking during public commentary at the Nov. 19 meeting of the Ann Arbor District Library board. (Photos by the writer.)

Two people spoke during public commentary, directly addressing the issue of the downtown building at 343 S. Fifth Ave. Ingrid Sheldon – representing the Our New Downtown Library committee, which had campaigned in support of the bond proposal – told the board that committee members were disappointed but willing to continue supporting the library however they can. Other committee members in attendance included Betsy Jackson and Donald Harrison.

Also addressing the board was Lyn Davidge, who had run for a seat on the library board but had not been elected. During her campaign she had advocated for renovation of the downtown building, not new construction. She volunteered to serve on any citizen advisory group that she hoped the board would form soon, to give input on the building’s future. Davidge also urged the board to add a public commentary slot at the end of their monthly meetings – because she felt it would encourage more participation.

There was scant discussion among board members about the Nov. 6 outcome or next steps for dealing with the downtown building. In a brief report to the board, Prue Rosenthal – chair of the board’s special facilities committee – indicated that the committee members hadn’t yet made any decisions or had any substantive discussions about what to do next. There was no discussion about the possibility of forming an advisory committee.

In other action, the Nov. 19 meeting included an audit report by the accounting firm Rehmann for AADL’s 2011-2012 fiscal year, which ended June 30. The audit was clean, and included a recommendation to start conducting periodic inventories of “moveable capital assets” – items like furniture and fixtures.

During her director’s report, Josie Parker highlighted a financial concern that is outside of AADL’s control: The possible elimination of the state’s personal property tax. PPT legislation will likely be handled in the state legislature’s lame duck session. If the PPT is eliminated and no replacement revenue is provided, the library would lose about $630,000 annually in revenues, Parker said. The library’s annual budget is roughly $12 million.

Parker also related positive news. Again this year, AADL has been ranked with five stars by the Library Journal – the highest ranking awarded by the journal for library use in a community. AADL is the only library system in Michigan that achieved that level. In its category – libraries with budgets between $10 million to $29.99 million – AADL ranked fourth nationwide. 

Public Commentary

Two people spoke during public commentary at the start of the meeting.

Ingrid Sheldon told the board that she was representing Ellie Serras and the rest of the Our New Downtown Library committee, which had campaigned in support of the $65 million bond proposal – she noted that some of the other committee members were attending the AADL meeting too. The committee worked hard and was very disappointed that they weren’t able to convince the majority of voters to invest in a new library, she said. However, they were excited that so many people started talking about this core community asset. No one had negative things to say about the library – everyone loves it, Sheldon said. The Ann Arbor library system has a national reputation, Sheldon observed, but perhaps the community takes that for granted.

She reported on a recent visit she’d made to the Traverwood branch, and the activities she saw there. People were tutoring, working on computers, reading – “someone was even Skyping to China,” she said. The campaign committee had not been able to convey that this kind of demand for services exists at the downtown library too, she said. The downtown library is the “trunk from which the branches draw their nutrients.”

The infrastructure needs for the building haven’t gone away, Sheldon continued, and now the board has heard community input. She wanted the board to know that the committee is ready to help make the library become more than it already is. She thanked them for their vision of making the library an institution to enhance learning for all.

Lyn Davidge, who had run in the Nov. 6 general election for a seat on the library board but was not elected, began by saying “Sorry, ladies!” [The one male board member, Ed Surovell, was absent.] She said she was sure they thought they would be rid of her after the election, but she was back. She observed that her campaign to get people to attend AADL board meetings appeared to be working. She felt she needed to set an example by speaking during public commentary.

Even though she won’t have the opportunity to join the board, Davidge said, she thought her campaign message had resonated with a lot of voters and that she had something to contribute to the ongoing discussion. [Davidge had supported renovating the downtown building rather than constructing a new library.] She wanted to be one of the first people to volunteer to serve on one of the citizen advisory committees that she hoped the board would create soon. She noted that she and board member Nancy Kaplan – and possibly others – had advocated for such committees. As the board selects people to serve in an advisory role, she hoped they would include people from the business community, academia, and others with talent and experience who can provide new options for possible renovation. A lot of details about possible renovation were missing in the pre-election conversation, Davidge said, and she hoped the board and staff would seek advice from knowledgeable engineers, architects and others in the coming months.

Davidge also urged the board to seek more input from the library staff – not just the department heads, but the staff who run the day-to-day operations. She believed that these employees could provide important insights. Davidge concluded by requesting that the board add another opportunity for public commentary at the end of its meetings, so that people could give feedback about board decisions and discussions that had occurred during the meeting. If people could provide immediate feedback to the board, that might encourage more people to attend board meetings. “You never know until you try and I hope you’ll consider trying it.”

Facilities Committee Report

In her report as chair of the board’s special facilities committee, Prue Rosenthal noted that their work will continue to move forward, although she added that they were obviously disappointed in the outcome of the Nov. 6 election, when voters rejected the library’s bond proposal. The committee members are Rosenthal, Nancy Kaplan and Ed Surovell.

Board president Margaret Leary noted that the board had previously voted to amend its charge to the special facilities committee. That change – made at the board’s July 16, 2012 meeting – extended the committee’s work through 2012, and included the charge of recommending “measures needed to maintain the existing building should a bond to replace the downtown facility fail to pass.” The committee had originally been formed in April of 2012.

On Nov. 19, Rosenthal said the committee would be meeting with the “appropriate professionals” and library staff to figure out how best to use the available funding to ensure that the library works as well as it possibly can. The committee hasn’t made any decisions or had any substantive discussions about what to do next, she said.

Kaplan added that board appreciates the community’s input, including ideas and suggestions for how to move forward. The board is listening, she said. Leary echoed those sentiments.

Financial Report

Ken Nieman – AADL associate director of finance, HR and operations – gave a brief financial update to the board. [.pdf of finance report] He described October as a “pretty normal month, as most of them are here.” Through the end of October, the library has received 94.7% of its budgeted tax receipts – or $10.617 million. AADL’s fund balance stood at $7.937 million as of Oct. 31.

Five items were over budget, he said, but are expected to come back in line with budgeted amounts by the end of the fiscal year. Those line items are purchased services (related to an annual payment for Brainfuse, an online tutoring service), communications, software, supplies, and a line item for “other operating expenses.”

Board members had no questions for Nieman about the financial report.

Audit Report: It’s Clean

In reporting from the board’s budget and finance committee, Barbara Murphy said the committee had met earlier in the month with Dave Fisher of the accounting firm Rehmann to review AADL’s audit results. She described it as a very positive meeting.

From left: AADL board members Margaret Leary, Barbara Murphy, and Rebecca Head. Barely visible behind Head is Prue Rosenthal.

Sherry Brubaker, an audit and assurance manager at Rehmann, gave the board an overview of the results later in the Nov. 19 meeting.

The audit gives a clean opinion of AADL’s financial statements for the fiscal year 2011-12, Brubaker said – the same as in recent prior years. The audit also looked at AADL’s internal controls for systems like payroll and cash receipts.

AADL’s fiscal year runs from July 1 through June 30. Total general fund revenues for the year were $11.94 million – about $300,000 less than the previous year. About 91% of revenues ($10.87 million) come from property taxes, Brubaker noted. Total general fund expenses for the year were $11.7 million, leaving a surplus of $236,793 for the year. Expenditures were under budget by about $373,000.

Out of the library’s $8.1 million in combined fund balances, $7.55 million is unassigned and available for spending at the library’s discretion. That amount equates to about 65% of general fund expenditures – representing several months of operating expenses.

The library has about $4.5 million in investments, Brubaker noted. Its cash is invested primarily in short-term certificates of deposit. AADL has no debt. Net assets total $30.96 million.

Brubaker said that during the audit, it was noted that a physical inventory of movable capital assets hadn’t been completed. The firm recommends that such an inventory be conducted every three or four years, she said. That recommendation was discussed with the finance committee, and Brubaker believed that the recommendation would be implemented.

Board president Margaret Leary asked for examples of moveable capital assets. Brubaker replied that it includes assets like furniture and fixtures – items that cost more than $1,000 with an expected life greater than two years.

Outcome: Without further discussion, the board unanimously voted to accept the 2011-12 audit.

Rehmann provided only print copies of its audit to AADL, which in turn provided print and scanned versions to The Chronicle. [.pdf of scanned audit] The Chronicle converted the document to a searchable text version using optical character recognition (OCR), though the process left the text with several scanos. [.pdf of OCR audit]

Director’s Report

AADL director Josie Parker reported that personal property tax (PPT) legislation is headed to the House Tax Policy Committee later this month and will likely be handled in the state legislature’s lame duck session. The Michigan Library Association will continue to lobby for a revenue replacement, she said.

If the PPT is eliminated, the library would lose about $630,000 annually in revenues, Parker said. Proposals to find replacement revenues currently would provide only a fraction of that amount, she added. [For more background on this issue, see Chronicle coverage: "Ann Arbor Library Board Briefed on Tax Issue."]

Parker also reported that the library recently had received a $40,000 donation from the Friends of the Ann Arbor District Library, a nonprofit that runs the bookstore in the downtown library’s lower level. Parker read aloud a letter from FAADL treasurer Mary Borkowski, praising the library for its work.

In the final item of her report, Parker announced that AADL had again been ranked with five stars by the Library Journal – for the fifth year. It’s the highest ranking awarded, and AADL is the only library system in Michigan that achieved that level. In its category – libraries with budgets between $10 million to $29.99 million – AADL ranked fourth nationwide.

Parker also congratulated other Michigan libraries that were ranked: Kent District Library in Comstock Park, Bloomfield Township Public Library, and Plymouth District Library. Those libraries received three-star rankings.

These rankings aren’t about how much money is spent or how many people the library employs, Parker said – it’s about how well the libraries are utilized in the community. Per-capita metrics include circulation, visits, program attendance, and public Internet terminal use.

Parker told the board that the public wouldn’t use the library as much as they do unless there were mechanisms in place to facilitate it. She pointed to a combination of facilities and their design, hours of operation, and the opportunity for the public to give feedback in a variety of ways about the kinds of services and programs they want, such as self-checkout, online renewal, and no limits on the amount of items that can be checked out. Unlike many libraries, Parker said, AADL’s philosophy is that it’s a sign of success when a lot of the collection is being used. The goal is to make the library as easy to use as possible, and there are policies to encourage that.

For the 220 people who work at AADL, these policies and procedures are normal and often goes unremarked, Parker said. But in fact it is remarkable, and she wanted to thank all of the employees for everything they did.

Her remarks were followed by applause from the board and others attending the meeting. Board president Margaret Leary noted that Parker’s motto is “Be generous,” and that’s exemplified by AADL’s policies, Leary said. Users of the library can affect those policies in very direct ways by telling the library staff what they want, she said.

“And they do tell you in Ann Arbor,” Parker quipped.

Present: Rebecca Head, Nancy Kaplan, Margaret Leary, Barbara Murphy, Jan Barney Newman, Prue Rosenthal. Also AADL director Josie Parker.

Absent: Ed Surovell.

Next meeting: Monday, Dec. 17, 2012 at 7 p.m. in the fourth-floor conference room of the downtown library, 343 S. Fifth Ave. [Check Chronicle event listing to confirm date]

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AATA controller Phil Webb included the item in his reaction to other findings in the audit – which he conveyed in a memo to AATA’s CEO Michael Ford. The memo was part of the AATA board’s information packet for its April 19, 2012 meeting. Other audit findings were discussed at the board’s March 15, 2012 meeting and included in The Chronicle’s report of that meeting.

Currently, the AATA receives around $9 million a year from a roughly 2 mill tax. The $9 million is about 31% of the AATA’s $29.4 million FY 2012 budgeted revenues. The elimination of the personal property tax would decrease the AATA’s total budget revenues by around 1.4%.

Victoria Powell, who spoke during public commentary to oppose oil and gas drilling using the technique called "fracking," talks with commissioner Leah Gunn at the April 4, 2012 Washtenaw County board of commissioners meeting. (Photos by the writer.)

Several residents spoke on the topic during public commentary, citing concerns over health, well contamination, property devaluation, and damaged roads caused by company tanker trucks, among other effects. They noted that state regulators aren’t providing adequate oversight or protection, and urged the board to take action.

Speakers included Mitch Rohde, CEO of Saline-based Quantum Signal and founder of “NoPaxton.com,” which has mobilized against drilling in this area by Paxton Resources, a company based in Gaylord, Mich. The company recently notified the county that it has filed an application with the Michigan Dept. of Environmental Quality for permission to drill an exploratory oil and natural gas well in Saline Township. [.pdf of notification letter]

Several commissioners thanked the speakers for coming and expressed their own intent to look into the issue, though it’s not clear what action can be taken at the county level. An April 19 working session will focus on the topic. That meeting begins at 6 p.m. at the county administration building, 220 N. Main St. in Ann Arbor.

In other items at the April 4 meeting, commissioners honored county dispatchers and got an update on cleanup from the March 15 tornado that touched down in the Dexter area. Marc Breckenridge, the county’s director of emergency management and homeland security, gave an estimate of $5 million in damages to private homes and property, and another $2 million in response costs – expenses incurred from the road commission, county workers, the sheriff’s office and others. The county intends to apply to the state for help in covering some of these costs.

Funding controlled by the state was key to another item on the April 4 agenda: A resolution urging state legislators not to eliminate the personal property tax, unless 100% replacement revenues are guaranteed. More than $40 million in PPT revenues are received by local units of government within Washtenaw County. Leah Gunn, who wrote the resolution, expressed skepticism that legislators would pay attention to the county’s concerns, but said it would at least send the message: ”Don’t mess with us.”

Two action items were related to the county’s criminal justice system. The board approved the appointment of Elisha V. Fink as magistrate of the 14A District Court. She’s filling a vacant part-time position previously held by Camille Horne, who left the job at the end of 2011. Commissioners also gave initial approval to hire Nimish Ganatra as an assistant prosecuting attorney at a salary of $81,690. The vacancy opened in December, following an employee retirement. The hire requires board approval because the salary is above the $69,038 midpoint of an authorized range. While several commissioners praised the hire and the office of county prosecuting attorney Brian Mackie, Wes Prater cast a dissenting vote. Citing ongoing budget challenges, he objected to hiring someone at an above-midpoint level.

Several other items were handled during the meeting, including: (1) final approval for the county to become a charter member of the Washtenaw Health Initiative, at an annual cost of $10,000; (2) initial approval to accept federal grants for the county’s weatherization program for low-income residents; and (3) acceptance of federal grants for local workforce development programs.

During public commentary, Douglas Smith talked about a lawsuit he’s filed against the county over a denial of his Freedom of Information Act request. The FOIA related to a surveillance video of an incident in Ypsilanti Township involving the theft of $20 from a court employee’s car – Smith alleges the money was taken by a high-level staffer with the sheriff’s office. Smith has spoken about this issue at previous board meetings, asking the board to intervene.

“Fracking” in Washtenaw County

Concerns about proposed oil and gas drilling in the Saline area using a technique known as “fracking” were raised by several speakers during public commentary at the April 4 meeting. Similar concerns had been voiced by commissioners at previous meetings, and the board plans to hold an April 19 working session on the topic.

“Fracking” in Washtenaw County: Public Commentary

Kurk Gleichman of Pittsfield Township told commissioners that a growing number of people have concerns about the practice of hydraulic fracturing, and are often discouraged by the influence that the oil and gas industry has on federal, state and sometimes local officials. Some communities have passed ordinances that ban the practice, he noted. Initially, local officials believed that they couldn’t pass laws that are stronger than state law, he said, but such laws can be instituted for the safety and security of residents. He reported that several groups in the community have formed, including NoPaxton.com and Ban Michigan Fracking. They support a ban on fracking, as well as a ban on waste generated from the practice, which is also a problem.

Victoria Powell, an Adrian resident, highlighted the impact of oil and gas drilling on the water supply. No one is addressing the issue of water depravation and contamination, she said, and it’s already a critical issue. She applauded the recent unanimous vote by the county road commission to reject drilling on property it owns in Saline Township.

Powell held up a map of Michigan that showed all the sites of existing underground storage tanks that are leaking. [The state Dept. of Environmental Quality provides an online searchable database to identify the location of leaking underground tanks. For example, a search for such sites in Ann Arbor yielded a list of 58 locations.] Last year, Jackson County – west of and adjacent to Washtenaw County – was the top crude oil-producing county in Michigan, Powell said. None of it is being used domestically, she contended. Many of the 42 wells in that county are near wetlands, but the DEQ says that drilling there is acceptable, Power reported.

Powell also spoke during a second opportunity for public commentary later in the meeting. She said the DEQ is thriving because it gets revenue from the hundreds of drilling permits it issues. Hal Fitch – chief of the DEQ’s office of oil, gas and minerals – is the single person to decide whether permits are issued, she said. Environmental impact studies must be done before drilling can occur, but those studies are done by the oil and gas companies, Powell said. There are currently about 18,000 wells in the state and less than three dozen inspectors who are supposed to inspect each well twice a year. Powell said she didn’t see how they could do that. There have been successful ordinances passed in cities like Pittsburgh and Buffalo that protect communities. She noted that if a property owner signs a contract with an oil or gas company allowing mineral exploration, they give away control of their property. Some lenders require notification of that, she said, and if you don’t provide it, you might be considered in default of your mortgage.

Powell concluded by noting that a meeting was being held in the Jackson County town of Brooklyn the next evening, featuring Chris Grobbel of Grobbel Environmental, who also teaches at Michigan State University. She suggested that commissioners might want to ask him to come to one of their meetings, too.

Brent Bartson of Lodi Township said he came to ask for help. As a property owner, he felt threatened by the risk that oil companies were posing to his health and the community’s health. Four wells had been drilled in Saline Township that use an acidizing technique. It’s not technically fracking, but it’s “fracking in sheep’s clothing,” he said. Bartson asked the board to adopt a resolution similar to one recently approved by the Wayne County commission, which called for a statewide and national ban on hydraulic fracturing for natural gas. It would send a strong message to the state and the rest of the community that Washtenaw County is environmentally conscientious and doesn’t want this kind of risk imposed on its citizens. He suggested that rights-based ordinances – like those enacted in New York and Pennsylvania – have withstood legal scrutiny in court, and that might be a good place to start, he said.

Mitch Rohde identified himself as CEO of Saline-based Quantum Signal, which he said has added more than 40 jobs over the past decade. He’s also founder of “NoPaxton.com,” which has mobilized against drilling in this area by Paxton Resources, a company based in Gaylord, Mich.

Rohde said he was approached in October about the possibility of licensing the mineral rights on his property. After looking into it, he said what he found was frightening: drilling that resulted in well contamination and property devaluation, and damaged roads caused by company tanker trucks, among other effects. He noted that there is insufficient state regulation and oversight of these activities – he has no confidence in the DEQ. He urged the board to take action not just symbolically, but to enact serious measures that have worked in other communities.

“Fracking” in Washtenaw County: Board Discussion

There was no agenda item related to this topic, but several commissioners responded to the public commentary.

Yousef Rabhi began by thanking the residents for coming and speaking out about their concerns. He called it one of the most important issues facing this community, and noted that there’s already been an example of industrial contamination – the 1,4 dioxane contamination of underground aquifers caused by the former Gelman Sciences manufacturing plant in Scio Township. Court-ordered cleanup of that contamination has been going on for years. It’s important to be aware of current threats to property rights and health, he said, but also to be aware of future threats – in some cases, the impact of contaminants might not be known for many years.

Commissioner Yousef Rabhi pointed out that the county has received a communication from Paxton Resources indicating its intent to drill in Saline Township.

Rabhi wanted the speakers to know that they have a lot of support among commissioners. It’s important to take a stand against these companies, he said, though it seems like the state is on the side of the industry, and is not protecting citizens. He said that he and others have met with county staff to talk about what can be done, and there are a lot of hurdles to action. The consensus is that at the county level, there’s nothing meaningful that can be done, he said.

Rabhi pointed out that Paxton Resources has notified the county that it has filed an application with the MDEQ to drill an exploratory oil and natural gas well in Saline Township. [.pdf of notification letter] Dialogue still needs to occur, he said, and he reported that the board plans to hold an April 19 working session on the issue. [Rabhi is chair of the working sessions.]

Barbara Bergman echoed Rabhi’s comments, and added that she’s concerned for her children and grandchildren. The nation’s willingness to harm others because of its insatiable energy needs doesn’t make sense, she said.

Conan Smith noted that Wes Prater has prepared a resolution similar to one passed last year by the Wayne County board of commissioners, which called for a statewide and national ban on hydraulic fracturing for natural gas. Smith said they could discuss the issue at the April 19 working session, then take up the resolution at a subsequent board meeting. The board will take whatever action it can, he added, and try to identify ways to make an actual impact.

Leah Gunn said that fresh water is one of the most precious resources, and when it’s polluted, “it’s over.”

Felicia Brabec noted that the speakers during public commentary are on the “front lines” of this issue, and have a better understanding than commissioners about what’s happening in their community related to fracking. She expressed interest in bringing some of the speakers back to the podium to answer questions, but Rolland Sizemore Jr. – who was chairing the meeting – didn’t take that suggestion. He pointed out that they’d be having more discussion at the April 19 working session, and asked that elected officials from other local units of government in the county be invited to attend.

Noting that the drilling was focused on her district, Alicia Ping said it seemed like any action the board took would have less impact than action at the city or township level, but commissioners need to continue looking into it.

Prater observed that state regulations for drilling are set out in a document that’s only three pages long. The board can pressure Lansing to make oil and gas companies step up and do inspections. The National Association of Counties (NACO) has started looking into the issue, he said, and the U.S. Environmental Protection Agency is doing a study that will be released in 2014. “Well, we can’t wait until 2014,” Prater said. At the very least, the county needs to ensure that inspections are happening, he concluded, even though ”they certainly don’t have much to enforce.”

Rabhi criticized the state’s office of oil, gas and minerals, which is responsible for issuing drilling permits. The office is funded based on how much oil and gas is extracted – why should you trust people who are funded this way? It’s very alarming and adds to the reasons why citizens must be vigilant, he said.

Conan Smith defended DEQ staff, saying that he knew several state regulators and they care about the environment. He said the agency is grossly underfunded. There’s no question that there’s a flaw in the funding mechanism, but he would hate to impugn their integrity as public servants for something that’s beyond their control.

Honoring County Dispatchers

At their March 21 meeting, commissioners had authorized up to $500,000 from capital reserves to fund disaster relief and assistance to residents impacted by the March 15 tornado in the Dexter area. At the April 4 meeting, a resolution was on the agenda tangentially related to that disaster, honoring Washtenaw County dispatchers and declaring the week of April 8-14 as National Public Safety Telecommunicator Week in Washtenaw County.

Sheriff Jerry Clayton, left, and Washtenaw County prosecuting attorney Brian Mackie talk with three dispatch employees – Sandy Petrimoulx, Rochelle Noonan and Sarah Taylor – who were on hand to receive a resolution honoring the work of dispatchers in the county.

Although the board passes a similar resolution annually at this time of year, the recent disaster response was highlighted during a presentation to the board by Marc Breckenridge, the county’s director of emergency management and homeland security. Commissioners asked Breckenridge to begin by giving an update on conditions in that part of the county.

The F3 tornado had destroyed 13 homes, seriously damaged several more, and caused minor damage to hundreds of homes and property, Breckenridge said. Crews from the county road commission and DTE were especially critical in getting the community back to normal, he said. Fire service and other emergency personnel had come together quickly and accounted for everyone – there were no serious injuries or deaths. The outdoor warning sirens and media coverage of the tornado were helpful in getting the word out to people so that they could take cover, he said.

Now, the focus has shifted to long-term recovery and assessing damage, Breckenridge said. He estimated that there are about $5 million in damages to private homes and property, and another $2 million in response costs – expenses incurred from the road commission, county workers, the sheriff’s office and others.

Yousef Rabhi asked where the funds would come from to pay for the $2 million in response costs. The county has committed up to $500,000 and the road commission is paying another $250,000, he noted. What are the other sources?

Initially, that state had indicated that no funds were available under Section 19 of the Michigan Emergency Management Act, Breckenridge said. However, state Rep. Mark Ouimet – whose district includes the Dexter area – had subsequently identified a line item of about $519,000 in state funds that had been set aside to help pay for emergency response at the local level. The funds are typically capped at $30,000 per unit of government, Breckenridge said.

Barbara Bergman noted that they might have identified that money, but wondered how it would be “wrested” out of Lansing. She observed that this is the reason people pay taxes – so that governments can respond to emergencies. She asked the people who opposed paying taxes to think about that.

The process has started to collect information and make a formal request for state funds, Breckenridge said. It’s a only little bit, he added, but they’ll take it. As an example, he noted that the Huron-Clinton Metroparks has submitted $350,000 for damage to its golf course.

County administrator Verna McDaniel reported that so far, only about $78,000 has been spent out of the $500,000 allocated last month by commissioners. She assured them that the staff will be very prudent and account for every dime that’s spent.

Bergman asked Breckenridge whether insurance companies are “ducking” their  obligations. He replied that he’s seen a lot of activity by insurance adjusters in the area, and insurance companies have engaged many of the construction crews that are working in the area.

Rolland Sizemore Jr. praised Breckenridge’s work, prompting Breckenridge to reply that it’s not a one-man effort. A lot of others did heavy lifting, he said. Sizemore also thanked sheriff Jerry Clayton, who attended the April 4 meeting in uniform. Sizemore alluded to Clayton’s work in consolidating dispatch operations between the county and the city of Ann Arbor. [The county board had approved the dispatch consolidation at its Jan. 18, 2012 meeting. The proposal had previously been authorized by the Ann Arbor city council on Dec. 5, 2011. For additional background, see Chronicle coverage: "Ann Arbor, Washtenaw: Joint 911 Dispatch?"]

Breckenridge then introduced three employees of the county’s dispatch operations: Sarah Taylor, dispatch operations coordinator; Rochelle Noonan, a new dispatch operations coordinator; and Sandy Petrimoulx, communications operator. Breckenridge noted that dispatchers on duty during the March 15 storm fielded 821 incoming calls between 5-9 p.m. One dispatcher handled about one per minute for a period, which Breckenridge described as a shocking number. It was outstanding performance from the crew, he said. “We’re very proud of them.”

Board chair Conan Smith read the resolution honoring the county’s dispatchers and declaring the week of April 8-14 as National Public Safety Telecommunicator Week in Washtenaw County. Commissioners gave the dispatchers a round of applause.

McDaniel stepped forward and read another resolution recognizing volunteers in the county, and declaring the week of April 15-21, 2012 as National Volunteer Week.

Message to Lansing: Don’t Cut Revenues

Commissioners considered a resolution at their April 4 meeting that asked state legislators to halt any bills that would eliminate the state’s personal property tax. More than $40 million in PPT revenues are received by local units of government within Washtenaw County.

The resolution calls the potential loss of PPT revenue “devastating,” and states that such a loss would ”severely reduce the level of services by the local governments, including but not limited to public safety, transportation, libraries, schools, and local infrastructure.” [.pdf of initial resolution]

Message to Lansing: Don’t Cut Revenues – Board Discussion

Alicia Ping began the discussion by proposing an amendment that would specify not eliminating the PPT unless there is 100% replacement of those PPT revenues. She said she didn’t object to eliminating the PPT per se, but wanted to ensure that the revenues were replaced if that tax were eliminated. It was considered a friendly amendment.

Yousef Rabhi said that the 100% revenue replacement shouldn’t rely on the whims of state legislators. Local units of government need to be give options to raise their own revenues, he said. They shouldn’t have to rely on decisions made in Lansing, like those related to revenue-sharing, which has been chronically uncertain.

Leah Gunn noted that there’s been talk in the past about pushing for options as Rabhi suggested – like getting the ability to tax football tickets, for example – but it never goes anywhere. She said their resolution should simply ask for 100% revenue replacement.

Rabhi then suggested adding the word “guarantee,” which was also taken as a friendly amendment.

Wes Prater wondered how the amount of revenue replacement would be determined. Gunn replied that it would be based on the PPT revenues currently received, but noted that the issue “probably isn’t going to go anywhere.” The resolution is simply saying to state legislators “Don’t mess with us,” she said.

Outcome: The resolution was approved as amended, with Dan Smith abstaining from the vote. Rob Turner was absent.

14A District Court Magistrate

A resolution to appoint Elisha V. Fink as magistrate of the 14A District Court was on the April 4 county board agenda. Fink is filling a vacant part-time position previously held by Camille Horne, who left the job at the end of 2011.

14A-2 District Court judge Kirk Tabbey and Elisha Fink, who was appointed magistrate for the 14A District Court by the county board.

The 14A District Court serves all of Washtenaw County, with the exception of Ann Arbor and Ypsilanti Township. (Ann Arbor is served by the 15th District Court. Ypsilanti Township cases are heard in the 14B District Court.)

Fink has served as managing attorney with Fink Law in Dexter. Her practice has focused on family law, but she also has experience in the areas of business law, criminal law, real estate law, and civil litigation in the local courts. She is a graduate of the Thomas M. Cooley Law School. [.pdf of Fink's resumé]

Both Fink and Kirk Tabbey, the judge who presides over the 14A-2 District Court in Ypsilanti, attended the April 4 meeting and were invited to the podium to address the board. Tabbey noted that Fink has been involved with the court for some time, and Fink said she was looking forward to the opportunity of working as magistrate.

Commissioner Rolland Sizemore Jr. asked whether Fink could keep the judges in line – he seemed to be joking. Conan Smith ventured that now Fink could fix his tickets, a comment which drew laughs from others in the room. Fink revealed that her son had come home the previous night with a ticket that will be dealt with in the 14A District Court, and she’d told him she wouldn’t even go with him to the courtroom – it was his responsibility.

Outcome: Elisha Fink was appointed as 14A District Court magistrate in a unanimous vote. Rob Turner was absent.

Washtenaw Health Initiative

A resolution giving final approval for the county to become a charter member of the Washtenaw Health Initiative (WHI) was on the April 4 agenda. The effort aims to expand health care coverage for the county’s low-income residents. The membership includes a $10,000 annual fee in both 2012 and 2013, which would be funded through the county’s office of community and economic development.

The board has been briefed on the initiative, most recently at a Feb. 16, 2012 working session. The plan is intended to help local health care providers handle an influx of an estimated 50,000 newly insured patients when federal health care reforms take effect in 2014. The goal is to develop a plan to provide better health care for the county’s low-income residents, the uninsured and people on Medicaid – prior to changes that will be mandated by the federal Patient Protection and Affordable Care Act.

The WHI is a collaboration co-chaired by former county administrator Bob Guenzel and retired University of Michigan treasurer Norman Herbert. The effort is jointly sponsored by the UM Health System and Saint Joseph Mercy Health System, and facilitated by Marianne Udow-Phillips, director of the Center for Healthcare Research & Transformation – a joint venture of UM and Blue Cross Blue Shield of Michigan.

Other partners involved in the project include the Washtenaw Health Plan, the Ann Arbor/Ypsilanti Regional Chamber of Commerce, Arbor Hospice, Catholic Social Services, Dawn Farm, Hope Clinic, Huron Valley Ambulance, Integrated Health Associates, Packard Health, Planned Parenthood of Mid and South Michigan, United Way of Washtenaw County, and the Women’s Center of Southeastern Michigan. A full list of partners is on the WHI’s website.

Organizers say they hope this initiative will become a model for other communities nationwide that are facing similar issues.

Washtenaw Health Initiative: Board Discussion

Alicia Ping had dissented on an initial vote taken at the board’s March 21 meeting, saying she preferred funds to go directly to services, not for administrative purposes. She again raised concerns before the final vote.

County commissioners Alicia Ping and Wes Prater.

Ping asked if other members would also be paying $10,000. County administrator Verna McDaniel replied that some of the other members are paying, and that she’d get that information for commissioners. Yousef Rabhi reported that the two hospitals – UM and St. Joe’s – are each putting in $30,000 annually.

Barbara Bergman said the WHI is working hard to prepare for the impact of the Affordable Care Act, assuming its provisions are upheld by the U.S. Supreme Court. There will be a major influx of new patients who are eligible for Medicaid, she noted.

Wes Prater asked what the funding will be used for. There seemed some uncertainty at this point. Representatives from WHI – including former county administrator Bob Guenzel and Ellen Rabinowitz, director of the Washtenaw Health Plan – had attended the March 21 meeting, as most board discussion on agenda items occurs at that time. But no one was on hand to field questions on April 4. Conan Smith ventured that the WHI is conducting research, and that’s likely where the money will be initially spent.

Prater then asked if the WHI had already been formed as a nonprofit. Bergman said it’s not set up as a charitable organization – it’s a collaborative. Leah Gunn then called the question, a procedural move to end discussion.

Peter Simms, deputy county clerk, began the roll call vote on the resolution by asking: “Commissioner Bergman, how do you feel about that?” The unusually informal query drew laughs from commissioners, with Bergman indicating that she felt supportive.

Outcome: On a 9-1 vote, the board gave final approval to become a charter WHI member, with dissent from Alicia Ping. Rob Turner was absent.

Workforce Development Funding

A resolution giving final approval to three items related to Washtenaw County’s administration of the Michigan Works workforce development program was on the April 4 agenda. The items received initial approval at the board’s March 21 meeting.

The board was asked to authorize acceptance of a $92,309 federal grant to operate a local Michigan Works service center. The primary location in Washtenaw County is the Career Transition Center at 301 W. Michigan Ave. (the KeyBank building) in Ypsilanti. Additional services are offered at the Harriet Street Service Center at 304 Harriet St. in Ypsilanti.

Another $16,000 federal grant would fund ongoing professional and partnership development of the local Michigan Works operation.

The third item asked commissioners to ratify a mandatory 2012 “system plan” for the local Michigan Works office. The plan provides annual documentation of local administrative policies and procedures for the employment and training programs, as well as for other documentation required in order to receive funding as a workforce development agency. [Link to .pdf of the complete system plan for 2012][Link to .pdf of required grievance procedure documentation]

There was no board discussion on these items.

Outcome: The board voted unanimously to give final approval to the workforce development items. Rob Turner was absent.

Assistant Prosecutor Hiring & Salary

Commissioners were asked to give initial approval to hiring an assistant prosecuting attorney at a salary of $81,690. The vacancy opened in December, following an employee retirement. The hire requires board approval because the salary is above the $69,038 midpoint of an authorized range ($68,074 to $96,565). Because of furlough days negotiated as part of the recent collective bargaining agreements, his salary will be adjusted down by 3.846% to $78,548.

Nimish Ganatra, standing, talks with Marc Breckenridge, the county's director of emergency management and homeland security. An agenda item related to Ganatra's hiring as assistant county prosecutor was on the April 4 agenda.

The candidate for the position is Nimish Ganatra, who currently serves as assistant prosecutor for Jackson County, and previously was an assistant prosecutor with the Washtenaw County prosecutor’s office from 2001-2009. He is a graduate of Ann Arbor Pioneer High School, the University of Michigan, and Wayne State University Law School. [.pdf of Ganatra's resumé]

Brian Mackie, the county’s prosecuting attorney, praised Ganatra, highlighting an award he’d won for prosecuting domestic violence cases as an assistant district attorney in Worchester County, Mass. Mackie also noted that his office had recently lost two long-time employees: Don Ray, who retired last year after more than 30 years with the county; and Joe Burke, who was appointed earlier this year by the governor to serve a judicial vacancy in the 15th District Court.

Mackie said it was fortunate that Ganatra was willing to return to Washtenaw County.

Ganatra spoke briefly, saying it had been a pleasure to work for the county for nine years and that he looked forward to coming back.

Assistant Prosecutor Hiring & Salary: Board Discussion

Wes Prater said he couldn’t support the hire because the salary was well above midpoint. The county’s budgets won’t get any easier, he said, and there’s still the need to tighten spending.

Prater also said he was disappointed that Mackie didn’t replace Burke with an internal promotion. But Mackie pointed out that Burke’s position was filled with the internal promotion of Steven Hiller. Mackie also told commissioners that because the office is currently under-filling a senior assistant prosecutor post, there is an overall savings of $12,983. Another hire is being made at a base salary rate.

Several commissioners expressed strong support for the hiring of Ganatra. Dan Smith said he was very supportive of this hire and of the work done by the county prosecutor’s office. It’s sobering to hear about the cases that the office handles, Smith said, and he thanked Mackie for that work to keep the people of Washtenaw County safe.

Yousef Rabhi called Ganatra’s resumé impressive, and said that since Ganatra had previously worked for the county for nine years, in some ways it did feel like an internal promotion. Rolland Sizemore Jr. said he shared some of Prater’s concerns, but appreciated that Ganatra would be living in Washtenaw County. [Sizemore frequently stresses his view that it's important for county employees to be residents here as well.]

Outcome: The initial approval passed on a 9-1, with dissent from Wes Prater. Rob Turner was absent. A final vote is expected at the board’s April 18 meeting.

Weatherization Grants

Two items related to federal funding for Washtenaw County’s weatherization program for low-income residents were on the April 4 agenda for initial approval.

Commissioners were asked to authorize acceptance of $185,326 in federal funds for the weatherization program. The federal program was cut by 65% compared to 2011, but the state of Michigan is reallocating the previous year’s unspent funds as “carry-forwards” for 2012. In 2011, the county received $241,863 for this program.

According to a staff memo, the funding is expected to provide air leakage testing, health and safety evaluations, furnace assessments, refrigerator efficiency testing, post-inspection of the completed work, and consumer education services to 25 units. To qualify for the program, residents must have an income at or below 200% of federal poverty, which is about $44,700 for a family of four.

In a separate item, commissioners were asked to authorize acceptance of an additional $103,600 in funds redistributed to the county through the American Recovery & Reinvestment Act (ARRA). According to a staff memo, this grant brings the total of ARRA weatherization funds received by the county to $4,867,138.

Weatherization Grants: Board Discussion

Wes Prater asked about the process for selecting recipients of the weatherization work. He said he hoped that priority was given to people who lived in the homes.

Aaron Kraft, who manages the program, said the applications are handled on a first come, first served basis. There’s a waiting list, and the grants being approved that night are already spoken for, he said. In response to another query, Kraft said that less than half of all contractors being used for the weatherization work of based in Washtenaw County.

In response to a follow-up question from a Chronicle reader (based on the Civic News Ticker report on this item), Kraft gave a more detailed breakdown of how the $185,326 will be allocated: Support and administrative costs covering client intake/assessment of need, project management ($63,136); energy audit inspections and quality assurance inspections ($8,820); labor and material costs to complete the recommended weatherization improvements ($106,196); and weatherization specific training funding ($7,174).

He said it’s likely that more than 25 homes will be weatherized using this funding.

Outcome: The two weatherization items received initial approval from commissioners. Rob Turner was absent. A final vote is expected on April 18.

Public Commentary

In addition to the anti-fracking public commentary reported above, two other people addressed the board.

Douglas Smith told commissioners that he had been forced to file a lawsuit against the county over a denial of his Freedom of Information Act request. The FOIA related to a surveillance video of an incident that he says involves Dieter Heren, police services commander with the sheriff’s office. Smith has spoken about this at three previous board meetings in 2011 – on Nov. 16, Nov. 2 and Oct. 19 – asking for the board to intervene.

By way of background, Smith had filed a FOIA request with the county in October of 2011 regarding a March 2011 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, according to Smith. Smith contends that the incident prompted an internal investigation. His FOIA request for the video footage was denied on appeal to the county administrator. Smith’s lawsuit alleges violation of the state’s FOIA and seeks to compel the county to release the complete video.

Smith told commissioners that in February, he was finally shown a version of the video, but it had been altered. It showed Heren driving into the parking lot, Smith said, then getting out of his car and walking around the court employee’s vehicle. While part of the video was a continuous recording, he was told the section showing Heren at the car was taken by motion capture – that was given as an explanation for why there are frames missing from the video. However, Smith contends that the surveillance camera isn’t a motion capture camera.

Smith urged commissioners to not waste taxpayer money in defending this lawsuit, and to urge the county’s administration to settle it.

Thomas Partridge spoke twice. He called on the board to adopt a progressive democratic agenda, fitting of all religious-minded residents during this Easter season. He said he’d spoken at the Ann Arbor city council meeting earlier in the week, and had asked them “What would Jesus advocate?” Jesus would advocate for access to affordable housing, health care, and transportation for the neediest among us, Partridge said, including many in the middle class who are now struggling.

Later in the meeting, Partridge questioned why there’s been no investigation into deaths of people living in homes under the care of county health providers. He said commissioners should find out why no law enforcement agency has investigated these deaths.

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

Absent: Rob Turner

Next regular board meeting: Wednesday, April 18, 2012 at 6:30 p.m. at the county administration building, 220 N. Main St. in Ann Arbor. The ways & means committee meets first, followed immediately by the regular board meeting. [confirm date] (Though the agenda states that the regular board meeting begins at 6:45 p.m., it usually starts much later – times vary depending on what’s on the agenda.) Public commentary is held at the beginning of each meeting, and no advance sign-up is required.

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The resolution calls the potential loss of PPT revenue “devastating,” and states that such a loss would ”severely reduce the level of services by the local governments, including but not limited to public safety, transportation, libraries, schools, and local infrastructure.”

Dan Smith abstained from the vote. Rob Turner was absent.

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

County commissioner Ronnie Peterson, right, talks with supporters of the Washtenaw Head Start program. (Photos by the writer.)

Although the budget calls for a net loss of 32.22 full-time-equivalent jobs, most of those positions are either already vacant or will be handled through retirements, McDaniel said. One significant retirement was recognized during the meeting: Donna Sabourin, executive director of the county’s community support & treatment services (CSTS) department, who’s worked for the county for 20 years. Commissioners awarded her a resolution of appreciation, and also gave final approval to the CSTS budget for the coming year.

But the meeting’s main focus was the proposed general fund budget, which was discussed at length and will be the topic of most board meetings and working sessions at least through November. The county budget is based on a calendar year, from Jan. 1 through Dec. 31, and is developed in two-year cycles.

Among the recommended cuts is a reduction of $1.2 million to local nonprofits and other agencies. For example, funding for the Humane Society of Huron Valley’s contract is proposed to drop from $500,000 in 2011 to $250,000 in 2012 and 2013. The Delonis Center homeless shelter’s funding could decline from $160,000 to $25,000.

The budget also calls for the county to relinquish its status as the federal “grantee” for the Head Start program in Washtenaw County, which would trigger a process to find a replacement entity. The county has administered the program for 46 years. About a dozen Head Start supporters showed up to Wednesday’s meeting, and urged commissioners to continue support for the program.

Though commissioners had several questions and comments about the 2012-2013 budget, several of them expressed even more concern for what’s on the horizon: Projected deficits of $11.6 million in 2014 and $14.7 million in 2015.

Board chair Conan Smith characterized the 2012-2013 budget as a recommendation that’s “ripe for public discussion at this point.” Everything is still on the table, he said. The board is expected to take up the topic again at its Oct. 5 meeting, and a public hearing on the budget is set for Oct. 19. The target date for approving the budget is Nov. 16.

There was no vote taken on the 2012-2013 budget directly, but the board took action on several other budget-related items. Among them, commissioners gave final approval to levy two taxes: for (1) services for indigent veterans; and (2) economic development and agriculture.

The board also passed a resolution in support of developing a regional transportation authority, after a failed attempt to postpone the vote. The resolution is a prelude to a Sept. 30 summit with Detroit and the counties of Wayne, Oakland, Macomb and St. Clair, which will focus on region transit issues.

Two issues of note did not come before the board as expected. A proposed reorganization of county administration was pulled from the agenda at the start of the meeting. It would have replaced the deputy administrator position by giving additional responsibilities to four managers, paying them annual stipends of $15,000 each. The stipends were a sticking point – during public commentary, AFSCME Local 2733 president Caryette Fenner objected to the timing of that pay, in light of recent labor concessions made by employees.

And not on the agenda was an anticipated proposal by the Washtenaw County Road Commission, which was discussed by the board at its Sept. 8 working session. The road commission is presenting a request for a countywide millage to help pay for road repair. It’s a tax that the county board could impose without seeking voter approval. The plan was subsequently submitted to the county clerk on Friday, and could be addressed at the board’s Oct. 5 meeting.

Admin Reorganization Postponed

One of the first actions of the meeting was to pull off the agenda a resolution regarding the reorganization of administrative positions proposed by Washtenaw County administrator Verna McDaniel. Details of the restructuring had been part of the board’s packet of meeting materials, including a proposal to pay annual stipends of $15,000 to each of four managers who would be taking on additional responsibilities.

The proposed changes, which could be introduced at a later date, were expected to save $120,962 and were part of a broader 2012-2013 budget proposal. The reorganization would have put the deputy county administrator’s position – which has been unfilled since the departure of Bill Reynolds earlier this year – on hold/vacant status. A new “cross lateral” team was proposed with four members: Kelly Belknap, director of finance; Greg Dill, infrastructure management director (a new position); Curtis Hedger, corporation counsel; and Diane Heidt, director of human resources and labor relations.

Greg Dill, director of administrative operations for the sheriff’s office, is likely to be appointed as the county’s infrastructure management director. He was working on his iPad before the meeting.

Dill is currently director of administrative operations for the sheriff’s office. A resolution for his new appointment – to the newly created job of infrastructure management director, with a salary of $116,75 – was also pulled from the agenda of Wednesday’s meeting. His new responsibilities would include those previously assigned to the county’s information & technology manager, a position that’s been eliminated following the departure of James McFarlane earlier this year.

According to a staff memo, the cross lateral team was intended to split the duties formerly handled by the deputy administrator. Department heads would be assigned to a team leader and report to that person for non-critical issues.

The proposal called for each team member to receive a $15,000 stipend in addition to their salaries, which would be capped at $125,000 unless a higher salary is authorized by the county board. If the combination of salary and stipend exceeded $125,000, the excess would be paid as a contribution into the employee’s deferred compensation retirement plan.

Other changes in the proposal included eliminating an administrative coordinator position, and creating a new management analyst job.

Admin Reorganization: Public Commentary

There was no discussion on the topic among commissioners, but during public commentary later in the meeting, AFSCME Local 2733 president Caryette Fenner objected to the $15,000 stipend that had been proposed. She noted that her membership and most employees had made concessions to address the projected two-year budget deficit. It wasn’t that these team leaders didn’t deserve the stipend, she said, but it wasn’t the right time for it.

2012-2013 Washtenaw County Budget

After discussing budget priorities and challenges for over a year, commissioners formally received a recommended budget for 2012-2013 at Wednesday’s meeting, which calls for a total net loss of 32.22 full-time-equivalent jobs and cuts to a range of programs and services. [.pdf of draft 2012-2013 budget]

County administrator Verna McDaniel and the county’s finance staff gave a presentation during the meeting, showing how the administration proposes to balance the budget. Previously, an estimated $17.5 million deficit had been projected for that two-year period.

The board is expected to take up the topic again at its Oct. 5 meeting, and a public hearing on the budget is set for the board’s Oct. 19 meeting.

Commissioners asked questions both at Wednesday’s meeting and during a working session the following day, on Sept. 22.

2012-2013 Washtenaw County Budget: Presentation

The proposed budget is based on a forecast in general fund revenues of $97,714,410 in 2012 and $96,937,530 in 2013 – down from $101,250,268 this year. The budget includes cutting 28.36 full-time-equivalent jobs, creating 5.5 FTEs, putting 11 FTE positions on hold/vacant status, and removing 1.64 FTEs out of hold/vacant. In addition to the 25.36 jobs that are already vacant, another 14 of the job cuts are expected to be handled mostly through retirements. Currently the county employs 1,369 people.

WEMU’s Andy Cluley interviews Washtenaw County administrator Verna McDaniel after the Sept. 21 board of commissioners meeting.

The biggest cuts are proposed to come from the sheriff’s office in positions represented by the Police Officers Association of Michigan (POAM), with a net loss of 12 jobs, and in positions represented by AFSCME 2733 Unit B, with a net loss of 10 positions.

Earlier this year, McDaniel told commissioners that she hoped to gain $8 million in labor concessions from employees. New labor contracts have now been finalized with 90% of the county’s employees, for a total of $4 million in savings both budget years from changes to compensation and benefits. The board had approved a new contract with its largest labor union – AFSCME Local 2733 – at a special meeting on Sept. 13.

The budget also reflects $4.1 million more in additional revenues from property taxes. Those tax revenues are now projected to be higher than previously estimated. The budget also identifies $8.2 million from organizational and structural changes.

The budget includes a total of $1,239,859 in cuts to funding for local nonprofits and other agencies. Examples of the most dramatic changes include funding for Humane Society of Huron Valley’s contract (from $500,000 in fiscal 2011 to $250,000 in fiscal 2012 and 2013), the Delonis Center homeless shelter (from $160,000 to $25,000), and the Safe House domestic violence shelter (from $96,000 to $48,000). [.pdf of six-page response to the proposed cuts by Tanya Hilgendorf, executive director of the Humane Society of Huron Valley. ]

Items proposed to be cut completely include $125,000 to the Southeast Michigan Council of Governments (SEMCOG), $200,000 for the county’s reserve for housing, and $110,000 for a housing contingency fund. Money for the county’s coordinated funding of human services will drop by $128,538 (from $1,015,000 to $886,462). [.pdf chart of nonprofit/agency allocations]

Looking beyond this two-year budget cycle, the report also projects deficits of $11.6 million in 2014 and $14.7 million in 2015.

During the presentation to commissioners at their Sept. 21 meeting, McDaniel, finance director Kelly Belknap and finance analyst Tina Gavalier summarized the proposed reductions and revenue sources for the coming two years. [.pdf of budget presentation highlights]

In addition to a working session on Sept. 22, other budget-related dates include:

• Oct. 6: Working session on a county building/space plan.
• Oct. 19: Public hearing on the 2012-2013 budget.
• Nov. 2: Budget update for the third quarter of 2011.
• Nov. 16: Target date for board vote on 2012-2013 budget.

2012-2013 Washtenaw County Budget:  Commissioner Discussion

Yousef Rabhi began by thanking county staff for their work in developing the budget, and thanking employees for the contract concessions they made. “People have given, and given a lot,” he said.

Leah Gunn described this budget as “the hardest budget I’ve ever worked on” during her 15-year tenure on the board, but noted that even more challenges are in the wings. If the state legislature eliminates the personal property tax, that will be another major hit to the revenues of local governments, she said. Gunn urged people to contact their legislators in Lansing and beg them not to repeal the tax, “or we lose government services.”

Wes Prater first asked for more details on the 80% in budget reductions that McDaniel had categorized as structural – she said she’d get that information to the board.

Prater then turned to the projections for 2014-2015, when deficits of $11.6 million and $14.7 million, respectively, are expected. Why are expenditures projected to increase? Revenue estimates are much lower, he noted – falling 8.21% in 2014 to $88.975 million, and staying flat the following year. Why aren’t expenditures in line with that? The staff needs to look at revenue realistically, he said, then prepare a budget that’s based on those realistic revenue estimates.

McDaniel said that as they get closer to those years, they’ll have a better handle on projections and will make revisions. She acknowledged that it was disheartening to see additional projected deficits, but said the staff would be remiss if they didn’t point it out. The county will work to bring expenditures in line with revenues for those years, she said – they are required to present a balanced budget.

Prater complained that originally, the administration had projected a $20 million deficit for 2012-2013. Then in the spring, that deficit had been revised to $17.5 million. But revenues are only down $1.7 million from 2011, he said.

Kelly Belknap, the county’s finance director, explained that the projected deficit was based on anticipated expenses and revenues. It wasn’t comparing 2012 to 2011, she said. McDaniel added that the county would “be in a pickle” if they made rosy projections. She assured Prater that the staff wasn’t playing games to make things look worse. It’s difficult to make projections, she said, and she acknowledged that revenues for the current year showed less of a decline than anticipated. But she indicated that it’s better to be prepared for a steeper decline than to suddenly be faced with a crisis, if projections turn out to be overly optimistic.

Prater replied that in the past couple of years, projections have missed the mark so much, that some people think county officials don’t know what they’re doing.

From left: Commissioners Rob Turner, Yousef Rabhi and Dan Smith.

Dan Smith observed that it seemed the county was jumping from one emergency now to another in 2014-2015. He asked the staff to explain why revenues are expected to decline, and where some of the expenditure increases are coming from. Expenses are projected to rise from $96.93 million in 2013 to $103.72 million in 2015.

Tina Gavalier, the county’s finance analyst, confirmed for Smith that most of the revenue declines reflect an anticipated drop in property tax revenues and a loss of state revenue sharing. Current union contracts run through 2013, she noted, so the projected expenses assume that concessions made for the coming two years will end. That means step increases, longevity pay and other aspects of the previous contract will resume, unless labor unions agree to additional concessions. Gavalier also noted that health care costs are projected to increase 12%.

Gavalier also pointed out that earlier this year, the staff had projected deficits of $27.7 million in 2014 and $34.3 million in 2015. Since then, based in part on updated estimates of property tax revenues, those deficits are now projected to be lower.

Conan Smith took issue with Prater’s characterization that previous revenue projections had been way off. In fact, Smith said, the projections were fairly accurate – off by less than 1% in 2010 and by about 1.5% this year. On the revenue side, the board needs to project worst-case scenarios, he said. For expenses, they assume the status quo from the previous budget cycle as a starting point. Of course expenditures will be adjusted, he said – the county is legally obligated to present a balanced budget.

Alicia Ping asked a series of questions also related to how the projections are made, wondering why the previously projected $17.5 million deficit was no longer reflected in the 2012-2013 budget. Belknap clarified for Ping that the deficits are based on projected expenses if the county takes no action. Conan Smith added that the budget that’s now presented to the board reflects adjustments they’ve made – including labor concessions, for example – that helped them overcome that deficit and align expenses with revenues. You don’t see the $17.5 million deficit because the county has taken action to address it, he said.

Barbara Bergman thanked the unions and other employees for their sacrifices, and said that at a later date the board needs to talk about making a sacrifice, too. She didn’t want to make commissioners’ salaries so low that people couldn’t afford to serve, she said, but they needed to talk about adjustments.

Rob Turner noted that the daunting task before them is the 2014-2015 budget, with a two-year $26 million deficit. Given that they’ve just made serious cuts in the current budget cycle, cutting another $26 million “is just a scary thought,” he said. Turner agreed with Bergman that they needed to look at the line items for commissioners too. They can’t just sit back and hope that property taxes will increase – they need to look ahead.

Ronnie Peterson observed that public employees are “taking it in the neck,” and that people often point to those employees as being responsible for the deficit. But employees are responsible for coming to work and doing their jobs, he said – it’s the responsibility of the board to manage the budget and protect the future of local government, so that employees can feel secure. He clarified with McDaniel that additional board meetings and working sessions will focus on specific aspects of the 2012-2013 budget.

Peterson said it felt like the county was just putting a finger in the dike. Some commissioners had courage, while others didn’t, he said. Commissioners should lead the way, but everyone needed to sacrifice – and he didn’t see that that was happening.

Rolland Sizemore Jr. said he wanted to look at the issue of part-time employees. He also noted that not all of the departments led by other elected officials were getting budget cuts. [Those elected officials are the prosecuting attorney Brian Mackie; water resources commissioner Janis Bobrin; county treasurer Catherine McClary; clerk/register of deeds Larry Kestenbaum; and sheriff Jerry Clayton.]

McDaniel replied that in developing the budget, finance and administrative staff looked at a variety of factors, including cuts taken by departments in previous years, and budgets in comparable departments. The budget didn’t make broad, across-the-board cuts, she said, but rather reflected strategic decisions.

Proposed general fund budgets for departments led by other elected officials are:

Office       2011      2012     2013

Pros Atty   $5.44M    $5.88M   $5.94M

Water Res   $2.59M    $2.46M   $2.54M

Treas       $1.31M    $1.51M   $1.55M

Clerk       $2.36M    $2.64M   $2.53M

Sheriff    $40.89M   $43.41M  $44.92M

-

The sheriff also oversees the budget for emergency services, which is budgeted for $2.77 million in 2011, $2.53 million in 2012, and $2.63 million in 2013.

Returning to the overall budget, Conan Smith elicited from McDaniel that budget increases for certain departments reflect higher cost allocation plan (CAP) payments that these departments are being asked to make. The CAP is an amount charged to each department for items like the county attorney and administration.

Yousef Rabhi clarified with McDaniel that nearly all of the positions being eliminated were already vacant or were planned retirements. McDaniel said there may be one “bump,” but that doesn’t mean the person will hit the streets. The administration is working hard to find another assignment for that person, she said.

Rob Turner noted that the county’s “rainy day” fund – its general fund reserves – would be decreasing in the coming years. It’s important to remember to maintain it in case the state does something drastic that would affect the budget, he said. At the same time, it’s important to note that the county isn’t keeping a fat balance, he said.

Mention of the state prompted Ping to comment on the personal property tax (PPT) issue. She noted that Gunn had mentioned it earlier in the meeting, adding that everyone is shocked that the proposal seems to have legs. Although it seems like the momentum is now behind reducing the tax, not eliminating it, there’s no revenue replacement plan being put forward, Ping said, and that’s wrong. “Again, Lansing needs to be minding their own business,” she said. Ping asked staff to provide information about how eliminating the PPT would affect the county’s revenues.

Prater returned to the issue of revenue projections, and noted that the county’s equalization staff “really missed the mark” in projecting the decline of property tax revenue for 2011. The 2011 budget had been built on the assumption of an 8.5% drop in property tax revenues, but in fact revenues fell only 2.85%. [See Chronicle coverage: "Washtenaw County's Taxable Value Falls"]

Gunn commented that for decades, property tax revenues did nothing but increase. Then revenues plunged, and the county has had to deal with it, she said. Predicting it is almost impossible, she added, and the equalization report for the year doesn’t get completed until April – four months into the fiscal year. Given those constraints, it’s always better to be conservative in projecting revenues, she concluded.

McDaniel noted that the board had agreed to build the budget based on worst-case scenarios. Otherwise, they might be faced with sudden, unanticipated cuts, she said.

Outcome: The board voted unanimously to move the budget agenda item to its Oct. 5 meeting. No initial vote was taken on the 2012-2013 budget itself .

After the vote, Peterson asked about a building space plan that McDaniel is preparing, which will be presented at the Oct. 6 working session and is likely to include recommendations about what to do with certain county facilities that might be sold. Was that plan factored into the budget? McDaniel responded that it’s not part of the budget, because commissioners would need to provide direction to staff about how to proceed. It’s more related to future planning than to the 2012-2013 budget, she said.

2012-2013 Washtenaw County Budget: Public Commentary – General

Caryette Fenner, president of AFSCME Local 2733, expressed concern that information about retirements had been made public before the union leadership was informed. She hadn’t heard about it previously.

Following up to her commentary, Yousef Rabhi said he’d like to see better communication between the unions and county administration. He hoped that the proposed cross lateral managers would help facilitate communication with union leaders and employees.

2012-2013 Washtenaw County Budget: Head Start

During public commentary after the budget discussion, Shirley Beckley told commissioners she is the parent and grandparent of children who had benefited from Washtenaw Head Start. She wondered what the status of the program was, in layman’s terms – had it been cut from the budget, or had the board reconsidered that decision?

Public commentary is typically a formal process, with speakers alloted a set amount of time – three minutes at Ways & Means Committee meetings, or five minutes at regular board meetings. After all public commenters have spoken, commissioners have the opportunity to respond, if they choose.

However, during this public commentary on Head Start there was considerable – and uncharacteristic – back-and-forth.

By way of additional background, the board held a working session on July 21, 2011 devoted to the future of Washtenaw Head Start. From that report:

The presentation stressed that Head Start – which serves over 500 preschool children of low-income families in the county – would not be eliminated. Rather, the county would relinquish its status as the program’s federal “grantee,” triggering a process to find a replacement entity. Federal Head Start officials would be responsible for selecting another agency to take over from the county.

The county currently spends about $900,000 each year in support of Head Start, which has a local budget of $4.8 million – the bulk of its funding comes from federal sources. In addition, the county owes $2.68 million in bond payments related to an Ypsilanti facility it built for Head Start in 2002-03.

Seven of the board’s 11 commissioners attended the working session, and several expressed support for exploring the transition. They praised the program, which has been recognized nationally for its performance, but noted that education isn’t part of the county’s core mission. Some suggested that an organization like the Washtenaw Intermediate School District would be a better fit to administer the program.

At Wednesday’s meeting, county administrator Verna McDaniel told Beckley that there’s still time to discuss budget decisions, and that meetings of the board are open to the public, with opportunities for public commentary. Beckley replied that she didn’t think the county understood the impact of its decision to cut funding for the program. She hoped that they could come to some kind of understanding with Head Start, rather than cutting it. She wondered if Head Start were cut from the county, would it get a new name?

McDaniel said she couldn’t answer that question. The federal government would take responsibility for finding a new agency to sponsor it, if the county decided not to host the program.

Beckley indicated that she was confused about the process. Commissioner Rolland Sizemore Jr. replied “sometimes we are, too.”

The next speaker was Caryette Fenner, president of AFSCME Local 2733. Among her budget-related concerns, Fenner said she thought that the executive director of Washtenaw Head Start – Pat Horne McGee – would be returning to the board to propose budget cuts that would still allow the county to retain the program. She hoped the board would take another look at Head Start and see if there was any way to help.

Sizemore characterized Head Start as a great program – a comment that elicited applause from supporters in the audience. He said the county has to look at all its options, and that there’s the possibility of another provider taking over the program.

Conan Smith noted that the board will hold a public hearing on the 2012-2013 budget at its Oct. 19 meeting. That’s a great opportunity to talk about it, he said. Public commentary also could be made at any of the board’s other meetings, he said, including upcoming working sessions devoted to the budget. Or people could talk to commissioners directly, he noted.

Everything is still on the table, Conan Smith said. The board has a budget that’s recommended by the county administration, he added, and ”that is ripe for public discussion at this point.”

Ronnie Peterson, who had spoken at length during the July working session about his support of Head Start, reiterated his support for the program. It seems to the public that the county has already decided to cut ties with Head Start, he said, but he hoped that commissioners hadn’t made up their minds. There are a lot of other things that the county subsidizes, he said, and he wanted to talk about those, too.

Peterson said he planned to work on the issue of Head Start, as well as funding for outside agencies. The board didn’t have to adopt the budget until the end of the year, he said, and commissioners need to have a proper discussion about it. He indicated his belief that Head Start should stay with the county – and received applause from the audience.

Act 88, Veterans Relief Millages

Several other items on the agenda also related to the 2012-2013 budget. Commissioners were asked to take a final vote to approve levying two taxes in December 2011: (1) 0.05 mills for support of economic development and agriculture; and (2) 0.025 mills to pay for services for indigent veterans. Because the Michigan statutes that authorize these millages predate the state’s Headlee Amendment, they can be approved by the board without a voter referendum. Initial approval and public hearings on these millages occurred at the board’s Sept. 7 meeting.

The indigent veterans millage will cost homeowners about $2.50 for every $100,000 of a home’s taxable value. It’s expected to raise $344,486 – about $11,000 less than in 2010, due to projected decreases of property values. The county first began levying this millage in 2008. Services are administered through the county’s department of veterans affairs.

Outcome: Commissioners approved the resolution to levy the millage for indigent veterans services, with dissent from Alicia Ping (R-District 3). Kristin Judge (D-District 7) was absent.

The millage for economic development and agriculture – authorized under the state’s Act 88 – will cost homeowners $5 for each $100,000 of their home’s taxable value. It was also given initial approval at the board’s Sept. 7 meeting, with dissent from Alicia Ping, Wes Prater and Dan Smith. Nine people spoke during public commentary at that meeting, all supportive of the tax – including several people from organizations that will be funded from it.

The anticipated $688,913 in millage proceeds will be allocated to several local entities: Ann Arbor SPARK ($230,000), SPARK East ($50,000), the county’s dept. of community & economic development ($131,149), Eastern Leaders Group ($100,000), promotion of heritage tourism ($65,264), Food System Economic Partnership (FSEP – $15,000), Washtenaw 4-H ($82,500) and Washtenaw County 4-H Youth Show ($15,000).

On Sept. 21, Dan Smith said he would again be voting against the Act 88 millage, as he had on the initial Sept. 7 vote. He read from the 1978 Headlee Amendment ballot language, which was passed by voters and amended the state constitution. The ballot language stated, in part, that the amendment would “prohibit local government from adding new or increasing existing taxes without voter approval.”

Act 88: Public Commentary

As she had at the board’s Sept. 7 meeting, on Sept. 21 Jennifer Fike – executive director of the Food System Economic Partnership (FSEP) – thanked commissioners for their past support of FSEP, and encouraged them to approve the millage again. FSEP leverages the funds it receives from the millage to attract and support food businesses in this region, she said, and she provided several examples of that.

After her commentary, board chair Conan Smith noted that Fike is also a member of the Michigan Commission of Agriculture and Rural Development.

Outcome: The Act 88 millage was approved on a 7-to-3 vote, with dissent from Alicia Ping (R-District 3), Wes Prater (D-District 4), and Dan Smith (R-District 2). Kristin Judge (D-District 7) was absent.

Support of Regional Transit

At the Sept. 7 meeting, board chair Conan Smith had indicated he would be bringing forward a resolution in support of a regional transportation authority for southeast Michigan. That resolution was on the Sept. 21 agenda.

The context for the resolution is a Sept. 30 southeast Michigan regional summit that Washtenaw County has been invited to participate in for the first time. In past years, the summit included Detroit and the counties of Wayne, Oakland and Macomb. This year, Washtenaw and St. Clair counties will be included, and the topics will focus on regional cooperation and transportation. Smith and Kristin Judge have been participating in the planning stages on Washtenaw County’s behalf.

The resolution cites the benefits and goals of regional transportation, including transit options along the Ann Arbor to Detroit corridor, and connections to Detroit Metro and Willow Run airports. It notes that state Sen. Rebekah Warren (D-Ann Arbor) – who is married to Conan Smith – has introduced legislation as part of a bipartisan package to create a regional transportation authority.

The main resolved clause of the Washtenaw County resolution states:

Be It Therefore Resolved that the Washtenaw County Board of Commissioners supports the creation of a new Regional Transportation Authority to enhance interconnectivity among the communities of the southeast Michigan region and urges the participants in the 2011 Southeast Michigan Regional Summit to aggressively pursue work that meets the above outlined goals.

Support of Regional Transit: Commissioner Discussion

Leah Gunn moved to table a vote on the resolution, saying she had a lot of questions about it and it needed a complete discussion. For one, she wanted to know what the Ann Arbor Transportation Authority thought about it. [AATA is leading an effort to develop a countywide transit authority.]

Outcome on motion to table: The motion failed on a 5-5 vote, with support from Leah Gunn (D-District 9), Barbara Bergman (D-District 8), Ronnie Peterson (D-District 6), Alicia Ping (R-District 3) and Wes Prater (D-District 4). Kristin Judge (D-District 7) was absent.

Ronnie Peterson asked Conan Smith to provide more details about the resolution. Smith reviewed that for the past decade, leaders of the counties of Wayne, Oakland and Macomb, and the city of Detroit had been meeting to discuss issues common to that region. This year, Washtenaw and St. Clair counties were also invited, he said, and the focus will be on regional transportation. Each county was asked to bring a resolution of support on that issue. This resolution acknowledges that Washtenaw County supports having a conversation about creating a regional transportation authority, he said.

Barbara Bergman noted that there wasn’t mention of a budget for this in the resolution. In the past, she said, some issues have ended up consuming considerable staff time, and she didn’t want that to be the case. Bergman said she’d consider supporting the resolution if it were amended to indicate there would be no money budgeted for the effort at this point.

C. Smith said he had no intention of spending money on it. He asked if anyone objected to adding Bergman’s suggestion as a friendly amendment – there were no objections.

Peterson clarified with C. Smith that they weren’t joining a consortium at this point, but rather simply supporting the idea of discussing it.

Rolland Sizemore Jr. said he was tired of reading articles in the Detroit papers that don’t mention Washtenaw County. He viewed this as an opportunity to advertise the county while working with other communities, something he said he keeps “harping about.”

Outcome: As part of the consent agenda, the resolution was approved unanimously.

Bonds for Western Washtenaw Recycling

Commissioners were asked to give final approval to authorize issuance of $2.7 million in bonds, backed by the county’s full faith and credit, to help pay for a $3.2 million facility operated by the Western Washtenaw Recycling Authority (WWRA).

The WWRA plans to use $500,000 from its reserves to fund part of the project. The $2.7 million in bonds would be repaid through special assessments on households in participating WWRA communities – the city of Chelsea, Dexter Township, Lima Township, Lyndon Township, and Manchester Township. Bridgewater Township is participating in the WWRA, but will not help fund the new facility. The village of Manchester and Sylvan Township have withdrawn from the WWRA.

County commissioners had been briefed on the proposal at their July 7, 2011 working session. Since then, the WWRA board has approved adding a county commissioner to their board. Rob Turner – a Republican representing District 1, which covers large portions of western Washtenaw – will serve in that role.

Outcome: Commissioners unanimously gave final approval to authorize bonds for the WWRA facility.

Accommodation Tax Contract Amended

A contract amendment regarding the distribution of the county’s accommodations tax was on the agenda for final approval by the board.

The county collects a 5% excise tax from hotels, motels, and bed & breakfasts, which is then distributed to the Ann Arbor and Ypsilanti convention & visitors bureaus and used to promote tourism and convention business. The contract calls for the county to retain 10% of that tax to defray the cost of collection and enforcement. (Until 2009, the county had only retained 5% for this purpose.) The remaining funds are split, with 75% going to the Ann Arbor Convention & Visitors Bureau, and 25% going to the Ypsilanti Convention & Visitors Bureau.

The contract amendment addresses the process for distributing excess funds that might accumulate from the county’s 10%, if that amount exceeds the expenses required to administer and enforce compliance with the tax. Beginning in May 2013, the county will continue to retain 10% of the tax proceeds, plus 10% of any remaining fund balance. If additional funds accumulate in the fund balance, they are to be returned proportionally to the two convention & visitors bureaus – 75% to Ann Arbor, and 25% to Ypsilanti.

Outcome: The board unanimously gave final approval to the accommodation tax contract amendment.

CUB Contracts Suspended

At their Sept. 21 meeting, commissioners were asked to give final approval to suspend the county’s use of Construction Unity Board (CUB) agreements, pending the outcome of litigation that’s challenging the validity of the state’s Public Act 98.

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

However, Act 98 of 2011 – which became effective July 19, 2011 – prohibits municipalities from including as a requirement in a construction contract anything that would either require or prohibit contractors from entering into agreements with collective bargaining organizations. The act also prohibits discrimination against contractors based on willingness or non-willingness to enter into such agreements.

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

At the board’s Sept. 7 meeting, when commissioners took initial action on this issue, Yousef Rabhi had proposed two amendments to the resolution: (1) to assert the effectiveness of CUB agreements in ensuring a fair and cooperative workplace; and (2) to affirm that the county would reinstate CUB agreements when it becomes possible to do so. Those amendments had been approved on an 8-2 vote, with dissent from Dan Smith and Alicia Ping.

On Sept. 21, Dan Smith said he still opposed the way that the resolution had been modified – he had objected to the second amendment, which he believed inappropriately commented on the value of CUB agreements. However, he said the No. 1 priority is to look out for taxpayer dollars and to prevent the county from being sued, so he would be supporting the resolution.

Outcome: Commissioners voted unanimously to suspend the county’s use of CUB agreements.

Public Health Budget

On the agenda was a resolution giving final approval to the county’s 2011-2012 public health budget, which includes elimination of a net of nearly seven full-time positions.

The $11,839,496 budget includes a $3,553,575 allocation from the county’s general fund – a net decrease of $583,597 from the previous year. Unlike the county’s general fund budget, which is aligned to the calendar year, the public health budget runs from Oct. 1 through Sept. 30, in sync with the state’s fiscal year.

Though a total of nearly 12 full-time-equivalent positions (a combination of part-time and full-time jobs) will be eliminated in the proposed budget, five positions will be created or reclassified, for a net loss of nearly seven FTEs.

The budget also calls for a raft of new fees and fee increases. Effective Jan. 1, 2012, new fees will be required for a change of restaurant ownership ($250), a temporary food license late fee ($60), a time-of-sale authorization extension fee ($50), and a pollution prevention late reporting fee ($25).

A sampling of the fee increases includes a septic tank only permit (from $52 to $100), a new-build well permit (from $187 to $250), and a swimming pool inspection (from $56 to $150). Cremation permit fees will be increased from $40 to $50.

Outcome: Without discussion, commissioners voted unanimously to give final approval to the county’s public health budget.

CSTS Budget, Director Retires

A resolution for final approval of the 2011-2012 budget for Washtenaw County’s community support & treatment services (CSTS) department was on the Sept. 21 agenda. The budget includes a net loss of five full-time-equivalent (FTE) positions.

The proposed $26,838,557 CSTS budget calls for eliminating seven FTEs and putting one position on hold/vacant status, but creating three new FTE positions, for a net loss of five FTEs. In addition, 19 FTE positions will be reclassified. Though CSTS is a county department employing about 300 people, it receives 98.8% of its funding from the Washtenaw Community Health Organization, a partnership between the county and the University of Michigan Health System. Commissioners were briefed on a reorganization of the WCHO at a July 7, 2011 working session. The changes are aimed at limiting the county’s financial liabilities.

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

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

Outcome: Without discussion, commissioners unanimously supported the resolution giving final approval to the CTST budget.

Donna Sabourin, executive director of the county’s community support & treatment services (CSTS) department, who’s retiring after working for the county for 20 years.

CSTS executive director Donna Sabourin, who is retiring after working for the county for 20 years, was acknowledged at the Sept. 21 meeting. She’s been executive director of CSTS since 2002. The board approved a resolution of appreciation in her honor. [.pdf of resolution of appreciation] Commissioner Barbara Bergman said it was a sad pleasure to present the resolution, noting that she and Sabourin had worked closely together for many years.

Sabourin spoke briefly, saying there’s never been a day when she hasn’t felt proud to be a county employee. She thanked the board for their continued commitment to the services provided by CSTS. Even the hardest decisions that commissioners had made were done with compassion and concern, she said. Sabourin also thanked CSTS employees, and wished them well as they meet the challenges of the coming years. She said she felt tremendous gratitude for her time with the county.

Sabourin told The Chronicle that after her retirement, she plans to work managing vendors at the Town Peddler Craft & Antique Mall in Livonia.

Insurance Providers Selected

Commissioners were asked to accept proposed quotes for insurance coverage in seven areas, totaling $1,021,275 in premiums.

The Arthur J. Gallagher Insurance Agency has proposed obtaining coverage from several providers for the areas of: (1) property coverage, including boiler and machinery – Chubb Insurance Co.; (2) general liability, law enforcement liability, public officials liability, and auto liability – Genesis Insurance Co.; (3) crime – Great American Insurance Co.; (4) fiduciary liability – Chubb Insurance Co.; (5) lawyers professional liability – Underwriters at Lloyd’s London; (6) judicial liability – Underwriters at Lloyd’s London; and (7) medical professional – Hudson Insurance Co.

Outcome: The board voted unanimously to accept the proposed insurance quotes.

Appointments

In an item added late to the agenda, board chair Conan Smith moved two sets of appointments:

• Republican Melody Gable and Democrat Ulla Roth to the county board of canvassers, both for four-year terms starting Nov. 1, 2011.
• Republican Barbara Johnson and Democrats Rachel Bendit and Rose Toth to the county jury board. Johnson’s term expires April 30, 2017. Terms for Bendit and Toth also expire April 30, but in 2014 and 2015, respectively.

Outcome: Without discussion, commissioners unanimously approved the appointments.

Misc. Public Commentary

In addition to the speakers reported above, Thomas Partridge spoke at three of the four opportunities for public commentary during the evening. Saying he advocated for those who were affected by decreased services, Partridge urged commissioners to develop a plan to raise revenues by seeking grants, working to expand the number of entertainment venues in the county, and asking the wealthiest individuals and businesses in the county – including football and basketball fans – to contribute. Eight of the board’s 11 commissioners are Democrats, he noted, but no one had put forward a plan to raise revenues. He called on the board to pass a resolution asking employers locally, in the state and nationwide to hire more workers here, rather than expanding in places like China and India.

Partridge also urged commissioners to fund co-ops that would providing living spaces and employment for people in need, and he argued that a countywide drug policy is needed to combat increased property crimes and robberies caused by people using illegal drugs, including marijuana. None of the law enforcement agencies are handling this, he said, not even the sheriff’s office.

Partridge also criticized Barbara Bergman and Leah Gunn – two of the four commissioners who represent Ann Arbor district – calling them puppets of mayor John Hieftje.

Both of the other two Ann Arbor commissioners responded, somewhat indirectly, to Partridge’s final comments. Yousef Rabhi said he’d recently been interviewed by the Ann Arbor Observer for an article that the publication is doing on Bergman and Gunn. Both have announced plans not to seek re-election in 2012. He said he’d been skeptical when he came on the board – Rabhi was first elected in November 2010 – but they are phenomenal commissioners and strong supporters of human services.

Conan Smith joked that Bergman and Gunn are more like the mayor’s marionettes.

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

Absent: Kristin Judge.

Next regular board meeting: Wednesday, Oct. 5, 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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Ann Arbor District Library trustees Ed Surovell and Rebecca Head. (Photo by the writer.)

Josie Parker briefed the board during her director’s report, saying she wanted trustees to be aware of the issue and of its potential impact on the library’s finances. Legislation has been introduced, but it’s not yet clear whether lawmakers will decided to eliminate the tax completely or simply reduce it. Also unclear is what – if any – options would be available to taxing authorities to replace that lost revenue. Parker noted that when Pfizer closed its Ann Arbor operation several years ago, the library also took a hit. Pfizer had been the city’s largest taxpayer.

Parker’s report also included news about a lawsuit brought by Herrick District Library against the Library of Michigan. The state library has decided not to appeal an August court of appeals decision, which ruled in favor of Herrick’s position. Herrick had challenged new rules that would have changed how public libraries qualify for state aid. The changes were seen as a threat to local control, by taking away certain decision-making authority from local libraries. AADL was the only individual library in the state to file an amicus curiae brief in support of Herrick.

There was no board discussion about a potential response to the Ann Arbor Downtown Development Authority’s excess tax capture decision. At issue is the interpretation of a city ordinance about tax increment finance (TIF) capture in the DDA’s downtown district. In July, the DDA board passed a resolution stating its opinion that the city’s ordinance does not require the DDA to return any money to taxing authorities in its TIF district – despite the fact that the DDA had already returned excess TIF revenue earlier this year.

The AADL is a taxing authority in the DDA’s TIF district and has been consulting with its legal counsel over the implications of that decision, as well as a possible response. Queried by The Chronicle after Monday’s meeting, Parker said the AADL has made no decision yet on the issue. [For background and analysis of the excess tax capture, see Chronicle columns: “Taxing Math Needs Another Look” and “TIF Capture is a Varsity Sport.”]

Director’s Report

AADL director Josie Parker told the board that it’s important to understand the implications of the possible elimination of the state’s personal property tax, which is being discussed by Gov. Rick Snyder’s administration and state legislators. The business tax is levied on non-permanent items like computers, industrial equipment and furniture. It contrasts with the state’s real property tax, which is levied on land and buildings.

The library has a dedicated millage, and would be among the taxing authorities affected by any reduction or elimination of the tax. The AADL is authorized to levy up to 1.92 mills. Its current budget includes a levy of 1.55 mills, unchanged from the previous year.

If the tax were eliminated, the library would lose an estimated $637,000 in revenue, Parker said.

It’s possible that the tax could be phased out over a period of several years, or that other revenue sources would be proposed by the state to replace it. But with an estimated $1.2 billion in tax revenue loss statewide, Parker said it’s slowly dawning on communities that if the personal property tax is eliminated, it would likely mean a loss of services too – ranging from police and fire services, to libraries. That’s especially true for municipalities and other taxing entities where the personal property tax makes up a large share of their total revenues, Parker said – in some cases, as much as 50%. Some libraries in the state have told the Michigan Library Association that they’d have to close completely, she said.

Earlier this month, David Zin, chief economist for the Michigan Senate Fiscal Agency, issued a memo summarizing an analysis of the legislation – Senate Bill 34 and Senate Bill 142. He writes: “Individual local units’ reliance on personal property taxes varies significantly, with smaller and more rural local units generally less reliant on personal property taxes than more developed urban areas.” [.pdf of Zin's memo]

It’s a complicated issue, Parker said, but one that the board needs to be aware of.

At Monday’s meeting, trustee Ed Surovell acknowledged that there are problems with the tax, though he indicated it is not onerous. He said his accountant complains that the depreciation schedules are difficult – requiring, for example, that computers be depreciated over 10 years, which is far longer than the computer’s life cycle. His business, Edward Surovell Realtors, pays about $16,000 to $18,000 in personal property taxes, he said. Large manufacturers like GM, with factories in which the equipment is far more valuable than the buildings, would pay significantly more.

As a private citizen, Surovell said, he’s concerned about how the tax might be replaced. However, he said he didn’t think legislators will repeal it because they’re not smart enough to figure out how to replace it. If you don’t want to tax businesses, he added, you’ll have to tax citizens. “I don’t think the current legislature will want to do that.”

Parker reported that lobbyists are being told that taxes would have to be raised locally, to replace the state personal property tax. This might be done by raising the current caps on the amount that local taxing authorities can levy. Parker said there seems to be no real recognition that the communities hit hardest will have the least ability to impose higher taxes on residents.

Parker said there are voices in Lansing that are clearly comfortable with saying that no matter how much pain it causes, these steps are necessary to achieve their goals. In Ann Arbor, those opinions aren’t often heard, she said, but it’s important to know what people in other parts of the state – including legislators – are saying.

Barbara Murphy wondered what the intent was behind repealing the tax. Rebecca Head said the rationale being used is that the personal property tax is not conducive to job growth. Surovell expressed skepticism: “That’s a great statement because it’s not arguable – it’s not grounded on anything.”

Several groups have mobilized on the issue. The Michigan Library Association (MLA) has joined a raft of other organizations in the Replace Don’t Erase Personal Property Tax Coalition. Other groups in the coalition include the Michigan Municipal League, Michigan Association of Counties, Michigan Association of School Administrators, Michigan Association of School Boards, Michigan Association of Chiefs of Police and the Michigan Professional Fire Fighters Union.

Parker is chair of the MLA’s legislative committee, which has made the issue its top priority, according to a statement on the association’s website.

On Sept. 20, the day after AADL’s board meeting, Governmental Consultant Services Inc. – the Lansing firm led by Kirk Profit that serves as a lobbyist for the MLA and other entities, including the city of Ann Arbor and Washtenaw County – issued a legislative briefing that addressed this issue. The document, authored by GCSI staff Erik Hingst and Nell Kuhnmuench, was sent to the MLA’s legislative committee. From that briefing:

As we have discussed, Senator Mike Nofs (R-Battle Creek) introduced Senate Bill 34 back in January that would eliminate the collection of Personal Property Taxes (PPT) in Michigan. Now that the Legislature has returned from the summer recess, the conversation regarding the outright repeal or phase out of PPT is beginning to escalate.

Clearly, the estimated $1 billion in projected revenue losses to local units of government would have a catastrophic impact on their operations and the state. While it would appear that the Administration is leaning toward replacing a portion of local revenues, an outright alternative dollar for dollar funding stream does not seem to be a priority for those advising the Governor.

The Michigan Municipal League, Michigan Townships Association and direct local units of government (through their respective Mayors and their elected and appointed officers) continue to call for a complete, constitutional replacement of any and all revenue. To date, neither the Senate nor the House has had any meaningful committee hearings on the issue. However, the likelihood of the legislature approving a replacement to be placed on the ballot would in our estimation be remote at this time.

The more likely scenario will be for the legislature to embrace the utilization of increased revenue the state estimates receiving from the replacement of the Michigan Business Tax with the new Corporate Income Tax and the elimination of a number of credits (advance manufacturing and the battery credits) that resulted from the adoption of the new corporate tax. The legislature could also establish a form of a local option for PPT through the expansion of local millage caps.

Regardless of the final product, the library community will have to be engaged in the conversation throughout the process. While the Association’s participation in the press conference calling for the replacement of revenue was an important first step, educating the members of the Senate and the House on the impact changes in this specific revenue stream will have on libraries will be critical! It will also be important for lawmakers to understand that District Libraries (and their specific, direct millages) will be in particular jeopardy.

We have begun our efforts on behalf of the Association with direct communication with Lieutenant Governor Brian Calley (the point person from the Administration on the issue) and his staff. Specifically, we have asked that they not forget District Libraries in particular when they draft their definition of “local units of government” so that they are equally eligible with other local units of government for whatever replacement revenue stream may be utilized.

We cannot stress enough the importance of the entire library community reaching out to their respective Senate and House members to emphasize the importance of replacing PPT revenue with a meaningful, reliable alternative!

Director’s Report: Herrick Lawsuit

Parker’s report also included news about a lawsuit brought by Herrick District Library against the Library of Michigan. The state librarian announced at a recent Library of Michigan board meeting that the state library won’t appeal a Court of Appeals decision, which was handed down in August and ruled in favor of Herrick. Rather than being appealed to the state Supreme Court, the lawsuit has ended, Parker said, and that’s good news. [.pdf of appeals court opinion]

By way of background, in 2008 the Library of Michigan announced new rules that would have changed how public libraries qualify for state aid. In 2009, Herrick District Library in Holland filed a lawsuit against the state library, challenging those new rules. Herrick argued that the state library has no authority to set these rules, and is taking away local control from district libraries.

From previous Chronicle coverage:

The lawsuit focused on rules requiring that a public library provide the same level of service to all areas it serves.

Libraries have the authority to contract with areas outside of its millage boundaries to provide varying levels of service. A contracting municipality, for example, could receive limited library services for its residents, and pay an amount lower than what’s levied by the library millage within the library district’s boundary. The new rules prohibit this approach – and if a library continued to provide contracted services at a lower level, it would not qualify for state aid.

Herrick’s lawsuit argues that the Library of Michigan and the state’s History, Arts and Library Department – which previously housed the state library but which has since been dissolved – lack statutory authority to set rules for determining how state aid is distributed to public libraries. The suit also argues that neither the state constitution nor the statutes that govern public libraries require that libraries deliver the same level of service to contracting jurisdictions. Finally, the lawsuit contends that because the new rules are vague and overly broad, they are unconstitutional.

At its December 2010 meeting, the AADL board voted to file an amicus curiae – or “friend of the court” – brief in support of the Herrick library’s position. Parker has provided previous updates on this lawsuit, including the board’s meetings in March 2011 and April 2011.

At Monday’s meeting, Parker noted that while four library cooperatives filed briefs in support of Herrick’s position, AADL was the only individual library to do so. She said she was proud that the board had stepped up and understood the issues. It’s clearly an historical decision with broad implications for other government agencies as well, she said.

Now, state aid will be distributed to libraries in compliance with the court of appeals ruling. More information about that method is expected to be communicated to libraries in October, Parker said.

Because of uncertainty associated with the status of state aid, AADL’s budgets for the past few years – including the budget for the current fiscal year, which the board approved in May – have not included any anticipated revenues from state aid. The library’s fiscal year runs from July 1 through June 30. [.pdf of 2011-12 budget] However, the library has continued to receive some state aid. In fiscal 2010-11, the library recorded $$67,562 in state aid, including $45,180 earmarked for the Washtenaw Library for the Blind and Physically Disabled, which AADL operates. That’s down from a total of $71,634 in FY 2009-10.

Finance Report

Ken Nieman – AADL’s associate director of finance, human resources and operations – gave a brief financial update during the meeting. Through the end of August, the library has received $7,060,073 in tax revenues, or about 63% of what’s budgeted for the fiscal year, which runs from July 1, 2011 through June 30, 2012.

The library’s unrestricted cash balance stands at $12,755,062.

Nieman noted that four line items are over budget: employee costs, purchased services, communications and postage. Those expenses are expected to come back in line with budgeted amounts by the end of the fiscal year. [.pdf of full finance report]

There were no comments or questions from board members about the report.

Board Meeting Date Change

The library board typically meets on the third Monday of each month. On the agenda for the Sept. 19 meeting was a resolution changing the meeting dates for October and November. In each case, the meetings were moved to the next day – Tuesday, Oct. 18 and Tuesday, Nov. 22.

Board members didn’t provide a reason for the change during the meeting. In a follow-up email to The Chronicle, board president Margaret Leary clarified that scheduling issues drove the decision – she would have been unable to attend the meetings on their regular dates, and asked that the meetings be shifted.

Outcome: The board voted unanimously to change the meeting dates in October and November.

Present: Rebecca Head, Nancy Kaplan, Margaret Leary, Barbara Murphy, Jan Barney Newman, Prue Rosenthal, Ed Surovell. Also AADL director Josie Parker.

Next meeting: Tuesday, Oct. 18, 2011 at 7 p.m. in the library’s fourth floor meeting room, 343 S. Fifth Ave. [confirm date]

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