Jeannine Palms, who served on a citizens advisory committee to make recommendations for the county-owned property at 2260-2270 Platt Road, talks with commissioner Andy LaBarre (D-District 7), who helped lead that effort. Palms spoke during public commentary to praise the process and urge commissioners to adopt the recommendations. (Photos by the writer.)

A citizens advisory committee made recommendations for the 13.5-acre site at 2260-2270 Platt Road, and included the desire to use a portion of the land for affordable housing. Inclusion of affordable housing is a condition for accepting a $100,000 planning grant from the state, and that condition worried some commissioners. Rolland Sizemore Jr. (D-District 5) was particularly vocal in disagreeing with this approach. He suggested selling the land instead, then using the proceeds to pay for repairs and renovations of existing houses in the county, including those for sale through tax foreclosure auctions.

The board voted to give initial approval to the Platt Road recommendations, over dissent from Sizemore. A final vote is expected on Feb. 19. If approved, the county would then launch a much broader community planning process to determine the future use of that site.

Also debated at length was a proposal to hire a contract worker who would support budget-related work for the county board and administration. Commissioners had also discussed this issue during the board’s Jan. 22, 2014 meeting, when Ronnie Peterson (D-District 6) questioned the process for hiring this kind of staff support. On Feb. 5, several commissioners expressed concern about spending money on this position and wanted more details about funding and duties. Those concerns led to a unanimous vote to postpone the item until March 5.

A proposal to create a dental clinic for low-income residents received initial approval on Feb. 5, over dissent from Dan Smith (R-District 2). The $1.5 million project includes partnering with the nonprofit Michigan Community Dental Clinics Inc. to run the clinic and with St. Joseph Mercy Health System, which would contribute space at its Haab Building in Ypsilanti at little to no cost. A final vote is expected on Feb. 19.

In other action, the board gave final approval to two items with no significant discussion: (1) creation of a new countywide program to help finance energy-efficiency projects for commercial properties – the Property Assessed Clean Energy (PACE) program; and (2) a new ordinance that allows the county to issue municipal civil infractions for owning an unlicensed dog. The county treasurer’s office – which is responsible for administering the dog licenses – expects to implement the changes in June or July, following an educational outreach effort.

Commissioners also passed a resolution urging Gov. Rick Snyder to use the state’s budget surplus in part for road repair, and approved a resolution honoring local attorney Jean Ledwith King for her service on the county’s historic district commission.

Commissioner Yousef Rabhi (D-District 8) gave an update on efforts to address services to the homeless community. Advocates for the homeless had attended the board’s previous meeting, on Jan. 22, 2014. The board received a more detailed update on this situation at its Feb. 6 working session. That session will be covered in a separate Chronicle report.

Platt Road Property

Recommendations from a citizens advisory group for Platt Road property owned by Washtenaw County were on the Feb. 5 agenda for initial approval.

The 13.5-acre site at 2260 and 2270 Platt Road formerly housed the juvenile center. The advisory committee, which was created by the board on Sept. 18, 2013 and met three times late last year, recommended that the county use a $100,000 grant from the Michigan State Housing Development Authority (MSHDA) to fund a community design process for the property.

The committee recommended that the county keep the property until a design process is completed, according to a committee report. Specifically:

The CAC identified through consensus a number of principles that could apply to the site including demonstration for green technologies and sustainable design, mixed use, mixed income including affordable and moderately priced housing, minimized parking spaces, alternative transit, varied types and forms of housing for people of different ages, an urban village, less impervious surface, lower auto footprint, integration with neighborhood, visionary design, draws people to the site, opportunities to grow businesses, and connections to County Farm Park. In order to fit into its surroundings, the final composition of this site should serve to transition from the commercial aspects of Washtenaw Ave., the residential aspects of the local neighborhoods and the natural aspects of the County Park facility. Finally, it should incorporate uses that reflect its value as a county property and bring the opportunity of use or value for all Washtenaw County residents.

One of the resolved clauses stated that the county would commit to using a portion of the property for affordable housing. That’s a condition of accepting the $100,000 planning grant from MSHDA. The grant is part of a $3 million federal grant awarded to the county in 2011 and administered by the county’s office of community & economic development (OCED).

The resolved clause states:

BE IT FURTHER RESOLVED that the Board of Commissioners directs the CAC to assist in hosting an intensive multi-day community design process to create a plan for the site, inclusive of affordable housing;

The resolution also directs the advisory committee to provide more detailed analysis and recommendations by Sept. 31, 2014.

Committee members are: Ron Emaus, Jeannine Palms, Vickie Wellman, Rob Burroughs, Amy Freundl, Pete Vincent, Christopher Taylor (Ann Arbor city councilmember), and Jennifer Hall (Ann Arbor housing commission director). Also serving on the committee were Washtenaw County staff members Meghan Bonfiglio of the county parks & recreation commission; Greg Dill, director of infrastructure management; and Mary Jo Callan, director of the office of community & economic development. County commissioners on the committee are Yousef Rabhi and Andy LaBarre, who both represent districts in Ann Arbor.

Platt Road Property: Board Discussion

Andy LaBarre (D-District 7) thanked members of the advisory committee for their work. Yousef Rabhi (D-District 8) described the work as a citizen-driven process, and reminded commissioners that they had discussed the need for citizen input when they created this committee last year. People had brought their ideas and values to the table, he said, and the committee was able to reach consensus so they hadn’t even needed to take a vote on the final report.

Rabhi said he didn’t think approval of these recommendations by the board was a vote about what to do with the property. It’s just a step, he said, and there will be additional, broader community engagement before anything is decided.

Ronnie Peterson (D-District 6). In the background is Andy LaBarre (D-District 7).

Ronnie Peterson (D-District 6) said he appreciated the citizens involvement and valued their input. He cautioned that voting on the recommendations meant that the board would be adopting them, which would lead to more limited flexibility – specifically related to affordable housing. He’d be more comfortable simply accepting the recommendations. This is a different process than the county typically uses to dispose of its property, he noted.

Peterson didn’t think the county should be in the housing business, but the recommendations indicate that the county would be committed to providing affordable housing on that Platt Road site. He noted that the value of the property is estimated at $2 million or more, and that could be used for the good of all Washtenaw County residents.

Conan Smith (D-District 9) said it was important for the board to approve the recommendations. He indicated that unless he was misreading the resolution, he thought it meant that the board is just committing to a community-based process, rather than the usual way that the county deals with property. He noted that there wasn’t a community-based process when the county expanded the jail, for example. He thought it was a good commitment to make to the neighborhood, though any final decision about what to do would be made by the board.

LaBarre described the resolution as having four central elements: (1) that the county doesn’t sell all of the property, (2) that the property includes some aspect of affordable housing, (3) that development on the property should match its surrounding environment, including the commercial corridor of Washtenaw Avenue, the residential neighborhoods, and County Farm Park, and (4) that the site should include an asset that the whole county can benefit from and use.

Approving the recommendations would allow the county to leverage MSHDA dollars for a “super process” of community engagement, LaBarre said. The specific recommendations from that broader process would be acted on by the board. “We are not committing ourselves to a design process,” he said, in terms of specific actions.

Mary Jo Callan, director of the county’s office of community & economic development, came to the podium. She said the committee is asking that the county not sell the property outright, but instead go through a community engagement process that is deliberative and visionary.

She clarified that the recommendations ask the county to retain at least a portion of the land, and to include at least some affordable housing.

Conan Smith (D-District 9).

Conan Smith wondered what would happen to the MSHDA funding if the process results in a decision not to include affordable housing on that site. “Do we owe that money back to MSHDA?” he asked.

Callan clarified that the second resolved clause of this resolution would commit the county to including affordable housing on some portion of the site. It might be mixed income, or at income levels to be determined by the board. But MSHDA would invest funding in a planning process only if some portion of the site is used for affordable housing, she said. At this point, Callan added, “that portion is undefined.”

Smith worried that the county would owe the funding back to MSHDA if the community engagement process results in a decision not to include affordable housing. Callan replied that the site “is a county asset, and it is to be disposed of by the county board.” Sometimes the board’s decisions involve overlaying values onto the process, she noted, as the board did when it supported the Delonis Center homeless shelter.

So by approving the resolution, the board would be committing to include affordable housing on that site. Callan said she could follow up with MSHDA to confirm the agency’s position, but her opinion based on previous experience with the agency is that they’d tell the county to fund its planning process some other way if there isn’t a commitment to affordable housing.

Conan Smith said he’d be willing to put county dollars into the planning process, but at the least the county should be aware of a financial risk involved.

Rabhi said he sensed the concern that was developing among commissioners. Any time you have a discussion, you have to set parameters for that, he said, and it’s OK to do that. The recommendations outline principles that the advisory committee would like the county to adhere to during its broader planning process, Rabhi said. “If we believe in that vision, then it’s OK for us to lead. That’s what we’re elected to do.” That’s what the board is voting on, he added – a commitment to lead. He supported the resolution. Even if it turns out that the county can’t use the MSHDA funding, he said, it would be good to invest in this kind of planning process.

Rolland Sizemore Jr. (D-District 5) said he’s asked many people what affordable housing is, and each person has a different answer. He didn’t support the resolution, and didn’t know why the board needed to approve anything at this point. He noted that a portion of the 13.5-acre site can’t be built on because of a small wetland area located there. “To me, if feels like I’m being set up in some way,” he said.

Peterson said he hadn’t planned for this to be a big discussion, but he again stressed the importance of involving citizens in the process. He indicated that he was troubled by other commissioners who had “challenged my intelligence about my ability to comprehend resolutions.” He said he supported affordable housing in Ann Arbor. “All affordable housing should not be on the eastern part of the county,” Peterson said. [District 6, which Peterson represents, includes Ypsilanti and portions of Ypsilanti Township, on the county's east side.]

To get the funding from MSHDA, Peterson noted, the board needs to approve the resolution that states a commitment to affordable housing on the Platt Road property. So they should be clear about what they’re voting on, he said.

LaBarre responded, saying he didn’t intend to challenge Peterson’s intelligence and that he took full responsibility for any miscommunication or lack of clarity. He hoped the board could move the resolution forward. The county isn’t getting into the housing business, he added, saying he needed to do better outreach with his colleagues on the board, and promising to do that in the coming weeks.

Conan Smith apologized to Peterson, saying that he could see how his remarks seemed combative. He said it turned out that Peterson had a much better understanding of the resolution than he had.

From left: Dan Smith (R-District 2) and Kent Martinez-Kratz (D-District 1).

Rabhi reported that in his conversations with city of Ann Arbor officials, they had expressed interest in partnering with the county on this project. He agreed with Peterson that the county shouldn’t get into the housing business, and they need partners to do affordable housing.

Dan Smith (R-District 2) noted that neither the staff memo nor the resolution were specific about defining affordable housing. He asked Callan to elaborate on that, and he wondered if it would be possible to define affordable housing based on a real estate market rather than income. For example, if a $100,000 condo is located on that site, would that count as affordable housing in the Ann Arbor market?

Yes, Callan replied – a $100,000 condo in Ann Arbor would count as affordable housing. To any individual, affordable housing is defined as anything costing less than 30% of gross income. So by that definition, “affordable” means different things to different people, she explained, based on income levels. But as defined for the purposes of federal or state funding, affordable housing means spending 30% or less for people earning 80% or less of the area median income (AMI). For the Ann Arbor market – which for federal purposes includes all of Washtenaw County – median income is about $50,000. So 80% of that is about $37,000, Callan said. Any household earning that amount or less would qualify for affordable housing as defined by the government.

Callan noted that affordable housing can target a range of income levels, starting at the poorest – those earning 30% or less of AMI, or about $14,000. For that income level, you could afford about $350 a month in housing costs, Callan said, which is generally available only with significant subsidies. At 80% AMI, you could afford about $1,000 a month for housing. “That’s the range we’re looking at,” she said.

Sizemore suggested selling the land, then using the proceeds to pay for repairs and renovations of existing homes in the county, including those that are for sale through tax foreclosure auctions. LaBarre replied that the advisory committee had discussed the option of an outright sale, but it hadn’t been supported. That’s why the option wasn’t presented in the resolution, he said.

Outcome: The board voted 7-1 to give initial approval to the recommendations. Dissenting was Rolland Sizemore Jr. (D-District 5). Alicia Ping (R-District 3) was absent. A final vote is expected on Feb. 19.

Platt Road Property: Public Commentary

Jeannine Palms, a member of the advisory committee, spoke during the second opportunity for public commentary, after the board took its initial vote on the recommendations. She began by reading a statement from another committee member, Vickie Wellman. Wellman wrote that she had been very disturbed because of the divisive politics and political fighting that’s become the norm. Many projects and tasks aren’t completed due to infighting. But the work on the Platt Road committee was the first time she’s been impressed by the sincerity, quality, professionalism, energy, and cohesion of the effort. Wellman wrote that she was especially impressed by the integrity and professionalism of the staff. Her past experiences working with this kind of group haven’t been so rewarding, she wrote. It had been a big task, and everyone worked together to come up with the recommendations. Wellman’s statement concluded by urging commissioners to support the recommendations.

Palms thanked the board for giving initial approval to the resolution, saying she agreed with the sentiments in Wellman’s letter. She said she’s a regular visitor to County Farm Park and has worked on projects there, and the parks in this community have been a major focus for her life. This advisory committee brought together a lot of people from different backgrounds to work in a way that was truly impressive, Palms said. It was collaborative and mutually respectful, looking for ways to grow community capital, social capital and cultural capital, to provide a model for sustainable living. The recommendations were unanimously agreed upon, she said, and it was an honor to be part of this process. She looked forward to the next steps.

Andy LaBarre (D-District 7) thanked Palms for her work, and thanked other committee members who had participated. It had been energizing for him as a new commissioner to work with them on this project. Yousef Rabhi (D-District 8) in turn thanked LaBarre for his work in putting the committee together, and he thanked the board for moving it forward. Rabhi also thanked Palms, noting that she’s very active in the community, especially in that neighborhood.

Staffing for Budget Work

Commissioners considered a proposal to hire a contract position that would support budget-related work for the county board and administration.

Board chair Yousef Rabhi (D-District 8) and county administrator Verna McDaniel.

At the board’s Nov. 20, 2013 meeting, commissioners had given direction to county administrator Verna McDaniel to research and recommend staffing options that would support the board’s community investment priorities. As part of adopting a four-year budget, the board set up a new strategic model to help them determine where the county’s resources should go. The board set goals as well as outcomes that are intended to measure how those goals are being achieved.

The priority areas for investment that were approved by the board in 2013 are: (1) ensure community safety net through health and human services, inclusive of public safety; (2) increase economic opportunity and workforce development; (3) ensure mobility and civic infrastructure for county residents; (4) reduce environmental impact; and (5) ensure internal labor force sustainability and effectiveness.

The dollar amount for this position wasn’t included in the resolution, which stated that “compensation shall not exceed the scope of the Administrator’s authority.” The administrator has discretion to spend up to $50,000 on professional services contracts, and up to $100,000 for any proposed goods, services, new construction or renovation. [.pdf of staff memo and resolution]

A four-page job description was also included in the board packet. The person would report to the county administrator in terms of daily operations. [.pdf of job description]

Commissioners had previously debated this issue at some length during the board’s Jan. 22, 2014 meeting, when Ronnie Peterson (D-District 6) questioned the process for hiring this kind of staff support.

Staffing for Budget Work: Board Discussion

In introducing this item on Feb. 5, Felicia Brabec (D-District 4) reported that this relates to the continuation of work that the board did when developing the four-year budget, as well as previous work in past years that looked at how best to invest county dollars. How did the programs and services of the county match with investments in community priorities that the board had approved? “The magnitude of that work is great,” she said, and that’s why a recommendation for a contract staff position is being made.

Brabec, who as chair of the board’s ways & means committee had taken the lead in the budget process, noted that she had emailed commissioners a job description. The “deliverable” from that person would include a report on how the outcomes of county programs and services match with budget allocations. The person would also provide a gap analysis, so that when the board makes its annual budget adjustments at the end of the year, they can make allocations based on this process.

Rolland Sizemore Jr. (D-District 5).

Rolland Sizemore Jr. (D-District 5) noted that there are about 1,300 employees in the county government. Rather than hiring someone, he said, “I would direct the county administrator to get [this work] done, and if she doesn’t get it done, then we need to figure out why it’s not getting done.”

Sizemore pointed out that there’s a “cross-lateral team” in the county administration that each get an extra 4% in their salary, plus retirement benefits based on that higher amount. [The cross-lateral team, which was created instead of filling a deputy administrator position, consists of four senior staff members: corporation counsel Curtis Hedger; finance director Kelly Belknap; Diane Heidt, the county’s human resources and labor relations director; and Greg Dill, infrastructure management director. The board had approved the restructuring and pay increase about two years ago at its March 7, 2012 meeting, with Ronnie Peterson (D-District 6) casting the only dissenting vote.]

Sizemore then objected to the fact that the resolution didn’t include a cost estimate for the contract position. He suggested taking the extra 4% pay from the cross-lateral team to pay for the work. He didn’t know where the money would come from to pay for this, and he didn’t understand why it couldn’t be done in-house.

Conan Smith (D-District 9) said he understood Sizemore’s concerns, but noted that the county has slashed the capacity of the administrator’s office over the past few years. Belknap is now overseeing the finance and budget operations, which used to be the work of two people, he said. There are empty desks in the administrative offices. “I think we’re honestly at the point where we can’t ask the folks in the cross-lateral team or administration … to also take this on without some additional capacity.”

Smith said he had originally wanted to create a new permanent position to do this work. The county administrator, Verna McDaniel, had convinced him not to do that just yet, and he thought that was wise. But even so, Smith believed that additional resources are needed in order to make this happen, given that it’s a brand new process.

He clarified with McDaniel that she anticipated finding the money to pay for this contract position within line items over which she has discretionary control.

Yousef Rabhi (D-District 8) said he appreciated Sizemore’s concerns. He noted that in developing the four-year budget, the board had received staff support from Mary Jo Callan, director of the office of community & economic development, as well as other staff members. But those staff members have other responsibilities – more than they’ve had in the past, he said. Commissioners don’t have sufficient time to invest either, he said, as their work on the board is part-time. Now, the board needs to make an investment to move this process forward.

Dan Smith (R-District 2) reminded commissioners that he spoke out last year every time the board was asked to authorize new hires, urging the board to be cautious. Many times there were extenuating circumstances related to the hires, like outside funding, Smith said. He went along with those hires, but this current request isn’t comparable, he said, and he wasn’t in favor of this hire.

Seated from left: Commissioner Felicia Brabec (D-District 4), who serves as chair of the board’s ways & means committee, and county administrator Verna McDaniel. Standing is Conan Smith (D-District 9).

Alluding to his own experience in business, Smith noted that employees are asked to do more, but also the company cuts back on products or has longer release cycles and fewer features on the products that are released. At the county, however, “we don’t seem to be too keen on doing less.” He pointed out that even at that night’s meeting, the board would be voting on a new program – creating a dental clinic. So he was not in favor of this staff position.

Ronnie Peterson (D-District 6) told commissioners that he appreciated the discussion, but “I take it that there’s not a vote tonight.” [Until this point, no one had publicly mentioned the intent to postpone this item.] He asked what the timeframe was for this work, and what the goals were for the individual that they’d be hiring. He also wanted to know what the expectations were for this person to collaborate, either internally within the county government, or with people in the community.

Peterson also cautioned that the board needs to be clear about who’s leading the organization. He wanted to make sure the position had a different title than “strategic program manager” – the title that was originally proposed. He suggested making the title “special assistant to the administrator for board support.” He said he didn’t want anyone to walk around with a cape thinking that they had more power than the county administrator.

Peterson supported the points made by Sizemore and Dan Smith. “The piggy bank was closed,” he said. If it’s been re-opened, he added, he wished someone would tell him, because he had a wish list of things he’d like to fund.

Kent Martinez-Kratz (D-District 1) agreed with Peterson, saying they had finalized the 2014-2017 budget in November of 2013, but since then several additional items have come to the board for approval that impact the budget. He hated to see a $50,000 or $100,000 request coming to the board every month. Martinez-Kratz said he felt it was the job of all commissioners to listen to constituents and gauge community impacts, and to orient their votes on the budget priorities based on that. He didn’t feel another employee was required for that.

Yousef Rabhi (D-District 8) addressed the references to a piggy bank, saying that the point of this new job is to help the county make investments more strategically. “This is spending a small amount to make sure we’re being more deliberate about the decisions we’re making,” he said. Rabhi also pointed out that this proposal had been part of the budget document that the full board had approved in November of 2013. The job is a contract position, he noted.

Rabhi voiced support for county administrator Verna McDaniel, saying that the board has asked more of her than previous boards have requested of previous administrators. They’re asking more of the administration, he said, while they’ve also taken away resources to do the work.

However, Rabhi felt it was appropriate to postpone action on the proposal, to address some of the issues that Peterson had raised.

Staffing for Budget Work: Board Discussion – Postponement

Rabhi made a motion to postpone until the March 5 meeting.

Dan Smith then said he’d like to postpone it until May 7 – after the board receives a first-quarter budget update from the administration. At that point, the board would have a better picture of the county’s finances. He moved to amend Rabhi’s original motion.

Conan Smith noted that the board had voted on this issue in November of 2013, when they approved the budget. The intent was to have this new position work with the new budget process, he said, and he didn’t want to wait until May to approve it. If they waited, it meant they wouldn’t issue a request for proposals (RFP) until June, and the position likely wouldn’t be filled until halfway through the fiscal year, at best. He was anxious to move the proposal forward as quickly as possible.

Outcome on amending the March 5 postponement to May 7: The motion failed, with support only from Dan Smith, Rolland Sizemore Jr., and Kent Martinez-Kratz.

There was no further discussion.

Outcome on postponing to March 5: The motion passed unanimously.

After the vote, Sizemore again expressed frustration about the proposal. He wondered why the county didn’t take advantage of resources from local universities. He also asked what would happen to the report that would be completed as part of this process – would it be “put on the shelf with the 10 other reports we’ve already got on the shelf?” He noted that the city of Ann Arbor has cut its staff “and they seem to be existing pretty well.”

Sizemore also mentioned the bond proposal that the administration had floated in 2013, to cover pension and retiree health care obligations. At that time, the administrator indicated that the county needed to issue bonds for $350 million, he noted, but “now we seem to have pots of money to spend on things that come up,” like this new position. He hoped McDaniel would come back to the board with more details about the cost. He wondered who would actually hire the person – McDaniel, or the board? He hoped the person would be a resident of Washtenaw County, adding that he hated spending county tax dollars on employees who don’t live here. “I have a lot of questions, and right now I’m pretty upset about this,” Sizemore concluded.

Dental Clinic

A proposal to create a dental clinic for low-income residents of Washtenaw County was on the Feb. 5 agenda for initial approval.

Ellen Rabinowitz, the county’s interim public health officer.

The project is estimated to cost $1.5 million, using funds from the public health Medicaid liability account ($814,786), the public health fund balance ($663,015) and Washtenaw Health Plan ($50,000). According to the county’s public health staff, 58,000 county residents either don’t have dental insurance or on Medicaid dental insurance. However, only a few private dentists accept Medicaid. When up and running, the dental clinic is expected to serve 6,000 patients annually, including residents with income at up to 200% of the poverty level.

It’s expected that federal matching funds would supplement Medicaid reimbursement rates to provide a sustainable long-term cash flow, according to a staff memo. [.pdf of staff memo]

The resolution authorizes contract negotiations with the nonprofit Michigan Community Dental Clinics Inc. to run the clinic and with St. Joseph Mercy Health System, which would contribute space at its Haab Building in Ypsilanti at little to no cost.

The board had been briefed previously on this proposal at two working sessions over the past year.

Discussion on Feb. 5 was brief. Ronnie Peterson (D-District 6) praised the public health staff for their work, saying it was appropriate for them to identify the need and take on the responsibility. It was especially important to provide dental care for children, he said. Several other commissioners also expressed support.

Ellen Rabinowitz, interim health officer and executive director of the Washtenaw Health Plan, noted that outreach will be needed to promote the new clinic. A press release is being drafted, she said, but they’ll wait to release it until after the board takes a final vote on the project at its Feb. 19 meeting.

Outcome: Initial approval for the dental clinic was given on a 7-1 vote, with dissent from Dan Smith (R-District 2). Alicia Ping (R-District 3) was absent. A final vote is expected on Feb. 19.

Dog Licensing

A new ordinance that allows the county to issue municipal civil infractions for owning an unlicensed dog was on the agenda for final approval.

Larry Murphy attended the Feb. 5 meeting of the county board. He has created a campaign committee to run for county commissioner in District 1. He is a Republican. The seat is currently held by Democrat Kent Martinez-Kratz.

The resolution also establishes that the county treasurer’s office would be the bureau for administering these infractions. It also sets new licensing fees. [.pdf of dog license ordinance]

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

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

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

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

Deliberations at the Jan. 22, 2014 meeting – when commissioners gave initial approval to this ordinance – included the importance of outreach to educate residents about the changes.

There was no discussion of this item on Feb. 5.

Outcome: Final approval to the dog licensing ordinance passed unanimously.

The ordinance could take effect 50 days after final approval, in late March. But the county treasurer’s office – which is responsible for administering the dog licenses – expects to implement the changes in June or July, following an educational outreach effort.

PACE Program

A resolution to create a new countywide program to help finance energy-efficiency projects for commercial properties was on the Feb. 5 agenda for final approval. Initial approval had been given at the board’s Jan. 22, 2014 meeting, which included public commentary from supporters of the initiative. [.pdf of PACE program documentation] [.pdf of PACE cover memo] [.pdf PACE resolution]

The countywide Property Assessed Clean Energy (PACE) program aims to help owners of commercial (not residential) properties pay for energy improvements by securing financing from commercial lenders and repaying the loan through voluntary special assessments.

The county is joining the Lean & Green Michigan coalition and contracting with Levin Energy Partners to manage the PACE program. Andy Levin, who’s spearheading the PACE program statewide through Lean & Green, had spoken briefly to the board on Jan. 22, 2014, and had previously answered questions about the program at the board’s Dec. 4, 2013 meeting. State Sen. Rebekah Warren also spoke briefly during public commentary on Dec. 4 to support the initiative. She was instrumental in passing the state enabling legislation to allow such programs in Michigan.

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

The county’s PACE program differs from the one set up by the city of Ann Arbor, which created a loan loss pool to reduce interest rates for participating property owners by covering a portion of delinquent or defaulted payments. Washtenaw County does not plan to set up its own loan loss reserve.

Discussion was minimal on Feb. 5. Yousef Rabhi (D-District 8) thanked Conan Smith (D-District 9) for his work on this initiative. Smith said he’s been talking with Levin about implementing the program, noting that bad weather had prevented Levin from attending the meeting that night.

Outcome: Final approval for the PACE program was given unanimously.

Road Repair Funding

Commissioners considered a resolution urging Michigan Gov. Rick Snyder to allocate the state’s estimated $1 billion budget surplus to road repair.

At the board’s Jan. 22, 2014 meeting, Alicia Ping (R-District 3) had indicated the likelihood of this resolution coming to the board. She reported that a subcommittee that’s exploring the future of the Washtenaw County road commission had met prior to the county board meeting on Jan. 22. The subcommittee, which Ping chairs, had voted to ask the county board to pass a resolution urging Gov. Rick Snyder to allocate the state’s budget surplus for road repair, distributed to local entities using the current state formula for road allocations.

The resolution’s one resolved clause initially stated:

NOW THEREFORE BE IT RESOLVED, such funds from state surplus should be used for roadway maintenance using the fair formula allocation as prescribed by Public Act 51 of 1951 ensure Washtenaw County benefits fairly from surplus use.

Ping did not attend the Feb. 5 meeting. Andy LaBarre (D-District 7) reported that Ping told him she’d be amenable to changing the resolved clause to reflect that the surplus doesn’t need to be spent entirely on roads, but should include roads. Yousef Rabhi (D-District 8) said he’d support the change, noting that there are other priorities that the surplus could be spent on, including state revenue-sharing with local governments.

The resolved clause was then unanimously amended to insert “in part”:

NOW THEREFORE BE IT RESOLVED, such funds from state surplus should be used in part for roadway maintenance using the fair formula allocation as prescribed by Public Act 51 of 1951 to ensure Washtenaw County benefits fairly from surplus use. [.pdf of resolution]

The phrase “in part” was also inserted into the title of the resolution.

The resolution states that the Washtenaw County road commission maintains about 1,654 miles of roads, including 770 miles of gravel roads. It also is responsible for 111 bridges and more than 2,000 culverts, and is contracted by the Michigan Dept. of Transportation to maintain about 580 lane miles of state trunkline roads. Road commissioners have indicated that there are several million dollars worth of needed repairs that are unfunded.

In a statement issued earlier in the day on Feb. 5, Snyder released some details for a fiscal 2015 budget proposal, including $254 million “to match federal aid and maintain Michigan’s roads and bridges, transit services and aeronautics projects across the state.”

Outcome: The resolution passed unanimously.

Communications & Commentary

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

Communications & Commentary: Services for the Homeless

Yousef Rabhi (D-District 8) said he wanted to follow-up on the discussion that the board had with members of the homeless community at the board’s Jan. 22, 2014 meeting. He had subsequently met with representatives from that group, along with county administrator Verna McDaniel, Mary Jo Callan, director of the county’s office of community& economic development, and Ellen Schulmeister, executive director of the Shelter Association of Washtenaw County. He noted that in order to address the list of demands for increased services at the Delonis Center shelter, which had been presented to the board on Jan. 22, the county needs to partner with other entities in the community.

The board received a more detailed update on this situation at its Feb. 6 working session. That session will be covered in a separate Chronicle report.

Communications & Commentary: Deportation

Rabhi also mentioned the possible deportation of Jose Luis Sanchez-Ronquillo. He noted that a few years ago, the county board had heard from advocates lobbying against another deportation threat – of Ann Arbor resident Lourdes Salazar Bautista. [Bautista and her supporters had attended the board's Dec. 7, 2011 meeting.] In a similar case, Rabhi said, Sanchez-Ronquillo and his wife have lived in Ann Arbor for about 16 years, and their children attend Bach Elementary School. Rabhi reported that he had attended a rally in support of Sanchez-Ronquillo, where it was announced that he’d been granted a one-year extension to stay in the country. While that’s good news, Rabhi noted that “this isn’t the first time it’s happened, and it won’t be the last.” It’s important to think about how to make this a welcoming and diverse community, he said.

Communications & Commentary: Autism Coverage

Diane Heidt, the county’s human resources and labor relations director, gave an update on a proposal that the county administration plans to make formally to the board at a future meeting: To begin offering health care coverage to county employees for the treatment of autism.

She noted that offering the coverage would result in an estimated $182,000 increase in the county’s annual health care premium. Because the county self-funds health care coverage for its employees, that amount will fluctuate based on actual claims, she said.

The main unknown is whether the state will continue to offer reimbursement for autism coverage, Heidt said. There’s been no indication that the state plans to set aside additional funds for fiscal 2014 or beyond. About $26 million that was set aside by the state in previous years could still be tapped for reimbursement. She said she’d continue to gather information and resources, and would meet with the board committee that had been established on Jan. 22, 2014 with commissioners Andy LaBarre, Felicia Brabec and Ronnie Peterson. She anticipated coming to the board with a recommendation on March 5.

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

Absent: Alicia Ping.

Next regular board meeting: Wednesday, Feb. 19, 2014 at 6:30 p.m. at the county administration building, 220 N. Main St. in Ann Arbor. The ways & means committee meets first, followed immediately by the regular board meeting. [Check Chronicle event listings to confirm date.] (Though the agenda states that the regular board meeting begins at 6:45 p.m., it usually starts much later – times vary depending on what’s on the agenda.) Public commentary is held at the beginning of each meeting, and no advance sign-up is required.

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The countywide Property Assessed Clean Energy (PACE) program aims to help owners of commercial (not residential) properties pay for energy improvements by securing financing from commercial lenders and repaying the loan through voluntary special assessments.

The county is joining the Lean & Green Michigan coalition and contracting with Levin Energy Partners to manage the PACE program. Andy Levin, who’s spearheading the PACE program statewide through Lean & Green, had spoken briefly to the board on Jan. 22, 2014, and had previously answered questions about the program at the board’s Dec. 4, 2013 meeting. State Sen. Rebekah Warren also spoke briefly during public commentary on Dec. 4 to support the initiative. She was instrumental in passing the state enabling legislation to allow such programs in Michigan.

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

The county’s PACE program differs from the one set up by the city of Ann Arbor, which created a loan loss pool to reduce interest rates for participating property owners by covering a portion of delinquent or defaulted payments. Washtenaw County does not plan to set up its own loan loss reserve.

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

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

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

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

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

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

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

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

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

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

Services for the Homeless

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Services for the Homeless: Board Response

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Appointments

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

Appointments: Regional Transit Authority

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

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

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

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

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

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

Appointments: Regional Transit Authority – Public Commentary

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

Jim Casha.

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

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

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

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

Appointments: Regional Transit Authority – Board Discussion

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

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

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

Appointments: Parks & Recreation Commission, Food Policy Council

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

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

Outcome: These nominations were confirmed unanimously by the board.

Appointments: Commissioner Appointments

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

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

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

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

For 2013, the following stipends were paid:

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

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

Outcome: All nominations were confirmed without discussion.

Coordinated Funding Policy

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

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

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

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

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

Coordinated Funding: Public Commentary

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

Coordinated Funding: Board Discussion

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

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

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

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

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

Dog Licenses

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

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

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

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

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

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

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

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

Dog Licenses: Board Discussion

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

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

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

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

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

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

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

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

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

Commissioner Andy LaBarre (D-District 7).

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

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

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

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

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

Health Care Coverage for Autism

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

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

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

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

The federal Mental Health Parity & Addiction Equity Act of 2008 mandates that any group plan with 50 or more members – like Washtenaw County government – must offer both medical and mental health benefits. Under more recent federal health care reform, there’s been an expansion of benefits, and mental health benefits are considered a mandatory part of basic health care, starting this year.

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

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

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

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

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

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

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

Health Care Coverage for Autism: Public Commentary

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

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

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

Health Care Coverage for Autism: Board Discussion

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

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

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

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

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

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

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

Outcome: This was not a voting item.

Health Care Coverage for Autism: Committee

Later in the meeting, Yousef Rabhi (D-District 8) brought forward a resolution to appoint commissioners Felicia Brabec (D-District 4), Andy LaBarre (D-District 7) and Ronnie Peterson (D-District 6) to a committee related to the health care benefits for autism. The committee’s charge was to (1) investigate the cost and sustainability of coverage of autism spectrum disorders; and (2) recommend a policy providing and funding coverage if the state reimbursement fund is exhausted.

The committee was asked to report back to the full board on Feb. 5.

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

Health Care & Pension Benefits

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

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

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

Outcome: This was not a voting item.

PACE Program

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

Andy Levin of Lean & Green Michigan.

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

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

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

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

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

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

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

8. Reserve Fund

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

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

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

PACE Program: Public Commentary

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

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

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

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

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

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

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

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

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

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

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

PACE Program: Public Commentary – Board Response

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

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

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

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

Communications & Commentary

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

Communications & Commentary: Staff to Support Board’s Budget Priorities

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

County commissioner Ronnie Peterson.

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

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

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

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

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

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

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

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

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

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

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

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

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

Communications & Commentary: Road Funding

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

Communications & Commentary: Mayoral Race

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

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

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

Absent: Rolland Sizemore Jr.

Next regular board meeting: Wednesday, Feb. 5, 2014 at 6:30 p.m. at the county administration building, 220 N. Main St. in Ann Arbor. The ways & means committee meets first, followed immediately by the regular board meeting. [Check Chronicle event listings to confirm date.] (Though the agenda states that the regular board meeting begins at 6:45 p.m., it usually starts much later – times vary depending on what’s on the agenda.) Public commentary is held at the beginning of each meeting, and no advance sign-up is required.

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

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

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

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

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

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

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

8. Reserve Fund

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

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

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

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

Yousef Rabhi was re-elected as chair of the Washtenaw County board of commissioners at the board’s Jan. 8, 2014 meeting. The following day, he publicly announced his intent not to run for mayor of Ann Arbor this year. (Photos by the writer.)

It’s the next step of several that are required before such a program can be created. The goal of PACE is to help owners of commercial (not residential) properties pay for energy improvements by securing financing from commercial lenders and repaying the loan through voluntary special assessments.

The county’s proposal entails joining the Lean & Green Michigan coalition and contracting with Levin Energy Partners to manage the PACE program.

A public hearing on this issue is set for the board’s meeting on Jan. 22. The board would also need to take another vote to actually create the PACE district. A date for that action has not been set.

Officer elections were also held on Jan. 8. As expected, the board officers who were first elected in January 2013 were re-elected. Yousef Rabhi (D-District 8) will continue to serve as board chair. Also re-elected were Alicia Ping (R-District 3) as vice chair, Felicia Brabec (D-District 4) as chair of the board’s ways & means committee, and Andy LaBarre (D-District 7) as chair of the working sessions. There were no competing nominations and all votes were unanimous, although Rolland Sizemore Jr. (D-District 5) was out of the room when the votes for Brabec and LaBarre were taken.

Regarding revisions to the board’s rules and regulations, corporation counsel Curtis Hedger made four recommended changes, including three that related to voting requirements. The fourth change inserted language to clarify that binding action may not be taken at a board working session.

The Jan. 8 meeting also included a public hearing on a proposed ordinance that would allow the county to issue municipal civil infractions for owning an unlicensed dog. The board had held a previous hearing at its meeting on Oct. 16, 2013, but it occurred after midnight and no one spoke. Some commissioners felt that a second hearing should be scheduled because the initial one was held so late in the evening. One person spoke on Jan. 8, urging the board to create a progressive scale of fees and to provide waivers for low-income families and individuals.

In other feedback from the public, Jim Casha spoke during public commentary to raise concerns over the southeast Michigan Regional Transit Authority (RTA). “It just seems to me that it’s just going to be another waste of time and taxpayers’ money, and just another level of bureaucracy,” he told commissioners. Board chair Yousef Rabhi will be appointing a new Washtenaw County representative to the RTA soon to replace Richard Murphy, who did not seek reappointment. The county’s other board member on the RTA is University of Michigan professor Liz Gerber, whose term runs through 2015.

The extended deadline for applying was Jan. 12, and Casha was one of only two applicants for the RTA opening. As a Canadian resident, he is ineligible to be appointed for the seat to represent Washtenaw County. The other applicant is Alma Wheeler Smith, a former state legislator and the mother of county commissioner Conan Smith (D-District 9).

Officer Elections

The first meeting of each year for the county board is initially chaired by the county clerk, until the board elects its officers for the year. As he has for the past several years, on Jan. 8 the meeting was brought to order by county clerk Larry Kestenbaum. After leading the initial portion of the meeting, Kestenbaum called for nominations for board chair.

Larry Kestenbaum, Washtenaw County clerk/register of deeds.

Conan Smith (D-District 9) nominated Yousef Rabhi (D-District 8) for re-election as chair. He began by joking that 2013 was “a miserable year. I mean, it had the number 13 in it, and we knew it was going to be bad from the very beginning. And the only way that we were going to get through a year with 13 in it was to have an outstanding, creative chair who brought his own luck with him.”

There were no other nominations.

Outcome: Yousef Rabhi was unanimously re-elected chair on a roll call vote.

After the vote, Smith jokingly complained that the minutes didn’t reflect his rhetoric: “The minutes for this are miserable. ‘C. Smith nominated commissioner Rabhi.’ That’s all it says!”

Kestenbaum then handed over the meeting to Rabhi. As his first act, Rabhi nominated Alicia Ping (R-District 3) for re-election as vice chair.

C. Smith moved a unanimous ballot – a parliamentary procedure to elect the nominee without a roll call vote when there are no competing nominations and no one is expected to vote against the nomination.

Outcome on unanimous ballot: The vote failed 8-1, over dissent from Rolland Sizemore Jr. (D-District 5).

Outcome on roll call vote: Ping was unanimously re-elected vice chair.

Later in the meeting, elections were held for the officers of the board’s standing committees: the ways & means committee, and working sessions.

Ping nominated Felicia Brabec (D-District 4) for re-election as chair of the ways & means committee, on which all commissioners serve. The meetings of this committee are held immediately prior to the regular board meetings, and initial votes are taken at the ways & means meetings.

There were no other nominations. C. Smith again moved a unanimous ballot.

Outcome on unanimous ballot to re-elect Brabec: It was approved on a voice vote. Rolland Sizemore Jr. was not in the room at the time.

Brabec nominated Andy LaBarre (D-District 7) for re-election as chair of the board’s working sessions. There were no other nominations. C. Smith moved a unanimous ballot.

Outcome on unanimous ballot to re-elect LaBarre: It was approved on a voice vote. Rolland Sizemore Jr. was not in the room at the time.

Officer Elections: Compensation

Based on compensation that was approved by the board’s Dec. 2, 2012 meeting, the three chairs – Rabhi, Brabec and LaBarre – will each make a base salary of $18,750. That’s $3,000 more than other commissioners. None of the positions are considered to be full-time jobs.

Curt Hedger, the county’s corporation counsel, talks with commissioner Alicia Ping (R-District 3) prior to the start of the Jan. 8, 2014 board meeting. Ping was re-elected vice chair of the board.

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

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

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

For 2013, the following stipends were paid [.pdf of chart indicating appointments and eligible stipends]:

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

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

The board appointments and stipends for 2014 haven’t yet been set. That will likely happen at an appointments caucus that is expected to be scheduled for later this month or early February.

Rules & Regulations

Revisions to the board’s rules and regulations, which are approved and updated annually, were recommended by corporation counsel Curtis Hedger. Three changes related to voting requirements. The fourth change inserted language to clarify that binding action may not be taken at a board working session. [.pdf of draft rules & regulations, with changes indicated in bold and strike-through] [.pdf of Hedger's staff memo]

At the Jan. 8 meeting, Hedger told commissioners that the most significant change related to taking a final vote on the same day that a resolution is initially introduced. [bold indicates added text, strike-through indicates deletion]:

III. CONDUCT
…
T. FINAL ACTION ON DAY OF INTRODUCTION:

No resolution or proceeding of the Board of Commissioners imposing taxes or assessments, or requiring the payment, expenditure or disposition of money or property, or creating a debt or liability therefore, shall be allowed on the same day as introduced, unless approved by a vote of two-thirds (2/3) a majority of the members elected and serving.

In the past, Hedger noted, the rules called for two-thirds of the board’s members to move a resolution for a final vote at a board meeting, if it was initially introduced at the ways & means committee meeting that same night. Even though the board’s two-thirds rule “had been there forever,” Hedger said, “it was brought to my attention that under Michigan law, we can’t do that.” Specifically, MCL 46.3 states:

(2) The county board of commissioners of a county shall act by the votes of a majority of the members present. However, the final passage or adoption of a measure or resolution or the allowance of a claim against the county shall be determined by a majority of the members elected and serving. …

Hedger reported that he had canvassed staff at other counties and they told him that the county boards follow that rule. So by passing this revision to the Washtenaw County board rules, it would bring them into compliance with Michigan law, he said.

The other suggested revisions are technical changes, Hedger said. One change is to clarify actions that require a “higher majority” vote in order to pass [added text in bold]:

O. VOTING:

Every member who shall be present, including the Chair, when a motion is last stated by the Chair, and no other, shall vote for or against the motion unless the member has a conflict of interest, in which case the member shall not vote.

…2. Votes Required:

Procedural and other questions arising at a meeting of the Commissioners, except for those decisions required by statute or by these rules (Specifically, Rule II F—Closing Debate in Committees and Rule III R—Suspension/ Amendment or Rescission of Board Rules) to have a higher majority, shall be decided by a majority of the members present. A majority of the members elected and serving, however, shall be required for the final passage or adoption of a motion, resolution or allowance of a claim.

Another proposed change was to standardize the phrase “elected and serving,” to be consistent with other references in the board rules [added text in bold]:

R. SUSPENSION:

No rule of the Board shall be suspended without the concurrence of two-thirds (2/3) of the members elected and serving. To amend or rescind a rule will require two-thirds (2/3) of members elected and serving unless specific notice was given at previous meeting, whereupon a majority of members elected and serving may amend or rescind.

The final proposed revision involved working sessions. Hedger said he changed the rules to make it more precise about what a working session is. It clarifies what the board already does, he said. [bold indicates added text, strike-through indicates deletion]:

XI. WORKING SESSION PROCEDURES

The purpose of the Working Session shall be to permit in-depth, informal discussion of Commissioner concerns, Board goals, significant programmatic and financial issues, and conceptual and informational presentations by the County Administrator. All matters involving major change in service delivery, staffing or funding, or any modification in Board of Commissioner policy shall originate at the Working Session. Status reports from advisory committees and departmental informational reports shall be presented at Working Session. The Working Sessions of the Board of Commissioners are not to be considered an official public meeting of the Board of Commissioners. The Working Sessions are noticed as a public meeting to comply with the Open Meetings Act because a quorum of the Board of Commissioners may be present at the meeting. It is intended that Formal votes indicating Commissioner support or opposition to agenda items shall not be taken at Working Session meetings. The Chair may take an informal poll of the board members present to assist in determining whether the Commissioners desire more information or discussion regarding an item or whether the Commissioners are prepared to take action on an item at a meeting of the Ways and Means Committee or at the regular session. Agendas shall be set in advance; however, Commissioners shall have the opportunity to introduce issues during the meeting for future Working Session consideration.

Rules & Regulations: Board Discussion

Conan Smith (D-District 9) asked whether MCL 46.3 actually requires a two-thirds majority vote for non-agenda items. Smith was referring to this section [emphasis added]:

(2) … The county board of commissioners may require in its bylaws that the votes of 2/3 of the members present or a majority of the members elected and serving, whichever is greater, are required on final passage or adoption of a nonagenda item. The voting requirements of this subsection do not apply if section 11 or any other provision of law imposes a higher voting requirement.

The short answer is no, Hedger replied. Smith said his concern is that there are often items that aren’t on the published agenda, but that are brought forward at the ways & means committee meeting. He clarified with Hedger that if items are moved as part of the agenda during the meeting, then those items are considered agenda items.

Hedger also pointed out that the law states the board “may require,” not “shall require.” So it’s at the board’s discretion.

Dan Smith (R-District 2) said he wasn’t particularly thrilled with the removal of the two-thirds majority rule, but added that he couldn’t argue with Hedger’s reasoning. He said he had reviewed all the changes in great detail, and had “kicked several of these things back and forth” with Hedger. Smith concluded that he was satisfied with the proposed changes.

Outcome: The revised rules and regulations were approved unanimously.

PACE Program

Commissioners were asked to give final approval to a notice of intent to form a Property Assessed Clean Energy (PACE) program.

Conan Smith (D-District 9).

An initial vote had been taken on Dec. 4, 2013, following about an hour of debate. There was no discussion on Jan. 8.

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

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

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

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

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

8. Reserve Fund

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

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

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

On Dec. 4, the board set a public hearing on this issue for the meeting on Jan. 22, 2014. The board would also need to take another vote to actually create the PACE district. A date for that action has not been set.

Outcome: A final vote to issue a notice of intent to create a PACE program was passed unanimously. Rolland Sizemore Jr. was out of the room when the vote was taken.

Dog Licensing Public Hearing

The board held a public hearing on a proposed ordinance that would allow the county to issue municipal civil infractions for owning an unlicensed dog.

County treasurer Catherine McClary.

The proposal would also establish that the county treasurer’s office would be the bureau for administering these infractions, and would set new licensing fees. [.pdf of proposed dog license ordinance]

One person, Thomas Partridge, spoke during the public hearing. He didn’t think the ordinance went far enough to protect all animals, especially during severe weather. He said that low-income families who want to have pets for their children will be challenged to pay license fees and the inoculations that would be required in order to get a license. He called for the board to create a progressive scale for fees and to provide waivers for low-income families and individuals.

The board had held a previous hearing at its meeting on Oct. 16, 2013, but it occurred after midnight and no one spoke. Some commissioners felt that there should be another opportunity for formal public input, so that’s why another public hearing was scheduled for Jan. 8.

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

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

However, the county board hasn’t yet taken the additional step of authorizing the issuance of a civil infractions for owning an unlicensed dog. There was no agenda item put forward for a vote on this issue at the Jan. 8 meeting, nor was there any resolution on the agenda regarding a new fee structure for dog licenses.

A draft resolution and staff memo had been prepared in November 2013 but never brought forward to the board for a vote. [.pdf of November 2013 staff memo and resolution] The county treasurer’s office is proposing to lower the current dog licensing fee from $12 to $6 per year for spayed or neutered dogs and from $24 to $12 per year for dogs that aren’t spayed or neutered. There would continue to be a discount for a three-year license. More information about current dog licenses is available on the county website.

In addition, the draft memo provided a list of fees for violating the dog license ordinance: $50 (first offense); $100 (second offense); and $500 (third and subsequent offenses).

County treasurer Catherine McClary attended the Jan. 8 meeting but did not formally address the board.

Outcome: This was not a voting item.

Communications & Commentary

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

Communications & Commentary: Regional Transit Authority

Jim Casha introduced himself as a resident of Ontario, Canada, who was born and raised in Detroit. He was there to ask for the board’s help with the southeast Michigan Regional Transit Authority (RTA).

Jim Casha spoke during public commentary about the southeast Michigan regional transit authority (RTA).

Casha told commissioners that he’d been a student at the University of Detroit and had worked at the Southeast Michigan Council of Governments (SEMOG). After that, he got out of planning and into the construction of transit systems, including subways.

He was concerned that the decisions of the RTA board aren’t in the best interest of building a regional transit system. “It just seems to me that it’s just going to be another waste of time and taxpayers’ money, and just another level of bureaucracy,” he said.

Casha said he’s made two suggestions to the board. The first was to acquire the 157-acre Michigan state fairgrounds property, as a way of generating revenue. It’s a logical place for a regional transportation hub, he said. The rail link from Chicago through Ann Arbor to Detroit already runs past the east side of the property, and it’s near 8 Mile and Woodward. It’s a very valuable piece of land, and the RTA could use it to generate millions of dollars through long-term leasing.

He noted that the state is planning to give away the land to private developers, but he argued that this is not the right time to do that. A group of citizens has been working on an alternative approach to create a truly public-private partnership that generates money for the public, he said, not just for private individuals. He said he’d made these comments to the RTA board, “but I really just don’t think they’re listening.”

Casha also objected to the selection of John Hertel over Larry Salci as the RTA’s CEO. Salci was the former director of the southeast Michigan transportation authority in the 1970s, he said, and had prepared a regional transportation plan with federal funding lined up at that time. Only one member of the current RTA board supported Salci, Casha noted, although the two RTA board representatives from Washtenaw County – Liz Gerber and Richard Murphy – had supported Salci initially.

The three-minute time limit for public commentary elapsed before Casha finished his remarks. He also provided written handouts to the board. [.pdf of Casha's commentary to RTA board in March 2013] [.pdf of Casha's commentary to RTA board in April 2013]

Commissioner Response to Public Commentary – RTA

Yousef Rabhi (D-District 8) thanked Casha for his commentary, saying that the point about finding a use for the state fairgrounds that helps the public over private interests really resonated with him. The land should be kept for public purposes, and he appreciated Casha’s advocacy on that.

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

The county board chair appoints both of Washtenaw County’s members to the RTA board. Those appointments were first made at the end of 2012 by Conan Smith (D-District 9), who was chair through the end of that year. Liz Gerber, a University of Michigan professor of public policy, was appointed to a three-year term. Richard Murphy, who works for Smith at the Michigan Suburbs Alliance, was appointed to a one-year term, and is not seeking reappointment.

The deadline to apply had been extended to Jan. 12, but only two applications were received – from Casha and former state legislator Alma Wheeler Smith, who is Conan Smith’s mother. The RTA state enabling legislation (Act 387 of 2012) mandates that board members must be residents of the county or city that they represent. So as a Canadian resident, Casha is ineligible for the appointment. [.pdf of application materials]

Communications & Commentary: Appointments

Later in the meeting, Yousef Rabhi noted that in addition to an opening for the southeast Michigan Regional Transit Authority (RTA), there are also openings for the Washtenaw County food policy council and the Washtenaw County parks & recreation commission.

The deadline to apply had been extended to Jan. 12. Rabhi noted that nominations will be made at the board’s next meeting on Jan. 22. Commissioners will receive applications for review before that.

Communications & Commentary: Shelter for the Homeless

During the time for public commentary, Tom Partridge called on the board to redouble efforts to help people in need, especially during the very dire weather conditions experienced recently. He asked them to shift funding and provide emergency relief to homeless residents, including food and transportation.

Washtenaw County administrator Verna McDaniel.

There’s also need on a continuing basis to eliminate homelessness, build affordable housing, and provide affordable public transportation and health care, Partridge said.

Yousef Rabhi (D-District 8) gave an update on the county’s response to providing shelter for the homeless during the recent winter storm and sub-zero temperatures. He said he knew that the Ann Arbor city council had some dialogue about it and heard from residents during the Jan. 6 council meeting. People are not being turned away from the Delonis Center, a homeless shelter, he said. The shelter has even relaxed some of its intoxication rules to allow people to stay there who might otherwise not be permitted, Rabhi noted.

There are some people who aren’t allowed to stay at the shelter because of previous incidents, Rabhi reported. The county’s PORT (the county’s project outreach team) has been reaching out to them, he said, to make sure they have accommodations or supplies like sleeping bags. There’s always more that could be done, Rabhi said, but there is collaboration among many entities, including the local governments, the Red Cross, and others.

Communications & Commentary: Food Policy Council

Yousef Rabhi described some of the initiatives that the Washtenaw County food policy council is working on, including a proposal for a county procurement policy that would be more environmentally responsible. In addition, the food policy council working in collaboration with the county’s office of community and economic development to emphasize using local sources in government procurement. Formal proposals will likely come to the board – possibly this spring, he said.

Communications & Commentary: Teens For Tomorrow Art Contest

During her report to the board, county administrator Verna McDaniel highlighted the recent Teens for Tomorrow art contest. She thanked Yousef Rabhi for attending, and thanked Rolland Sizemore Jr. for his advocacy of programs for county youth.

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

Next regular board meeting: Wednesday, Jan. 22, 2014 at 6:30 p.m. at the county administration building, 220 N. Main St. in Ann Arbor. The ways & means committee meets first, followed immediately by the regular board meeting. [Check Chronicle event listings to confirm date.] (Though the agenda states that the regular board meeting begins at 6:45 p.m., it usually starts much later – times vary depending on what’s on the agenda.) Public commentary is held at the beginning of each meeting, and no advance sign-up is required.

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The action took place at the board’s Jan. 8, 2014 meeting. An initial vote had been taken on Dec. 4, 2013, following about an hour of debate.

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

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

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

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

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

8. Reserve Fund

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

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

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

On Dec. 4, the board set a public hearing on this issue for the meeting on Jan. 22, 2014. The board would also need to take another vote to actually create the PACE district. A date for that action has not been set.

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

Andy Levin of Lean & Green Michigan talks with Washtenaw County commissioner Felicia Brabec before the county board’s Dec. 4, 2013 meeting. (Photos by the writer.)

They ultimately gave initial approval to a notice of intent to form a PACE program. If created, the program would allow commercial property owners in Washtenaw County to fund energy improvements by securing financing from lenders and repaying the loan through voluntary special assessments.

The county’s proposal entails joining the Lean & Green Michigan coalition and contracting with Levin Energy Partners to manage the PACE program. Andy Levin, who’s spearheading the PACE program statewide through Lean & Green, was on hand during the Dec. 4 meeting to field questions. Levin – son of U.S. Rep. Sandy Levin and nephew of U.S. Sen. Carl Levin – was head of the Michigan Dept. of Energy, Labor & Economic Growth (DELEG) during Gov. Jennifer Granholm’s administration, when the PACE legislation was enacted.

Also attending the Dec. 4 meeting was state Sen. Rebekah Warren (D-District 18), who spoke briefly during public commentary to support the county’s initiative. She was instrumental in passing the state enabling legislation to allow such programs in Michigan. Warren is married to county commissioner Conan Smith, a co-founder of the Southeast Michigan Regional Energy Office, which is a partner in Lean & Green Michigan.

A final vote on the notice of intent is now scheduled for the board’s first meeting next year – on Jan. 8, 2014. A public hearing on this issue has been set for the board’s Jan. 22 meeting. That’s because the board would need to take an additional vote to actually create the PACE district. No date for that vote to create the district has been set.

In other action, commissioners accepted a $150,000 state grant to establish the Washtenaw County Trial Court’s Peacemaking Court. Timothy Connors, a 22nd circuit court judge who’s leading this initiative, attended the Dec. 4 meeting and told the board that this project will explore and determine what, if any, tribal court philosophies or procedures might have applicability in Michigan’s courts. Participation in the peacemaking court will be voluntary.

The board also made a raft of appointments, including appointing the county’s water resources commissioner, Evan Pratt, as director of public works. That vote came over dissent from commissioner Rolland Sizemore Jr. The board of public works had raised a question about the appointment’s potential conflict-of-interest, given that Pratt holds an elected office as water resources commissioner. The county’s corporation counsel, Curtis Hedger, prepared a legal opinion on the issue, stating that the appointment would not be prohibited by the state’s Incompatible Public Offices Act.

No appointment was made to the southeast Michigan Regional Transit Authority (RTA). Richard Murphy – one of two RTA board members from Washtenaw County – is not seeking reappointment. During the Dec. 4 meeting, board chair Yousef Rabhi indicated that there’s some uncertainty about when Murphy’s one-year term actually ends, and he was sorting that out with state and RTA officials. Because RTA board members weren’t sworn in until April of 2013, some state and RTA officials believe the term extends until April – even though appointments for Washtenaw County’s two slots were made by the previous county board chair, Conan Smith, in late 2012.

The application process is still open for the RTA, with a new deadline of Jan. 12. That same deadline applies to openings on the county’s food policy council and parks & recreation commission. Applicants can submit material online, or get more information by contacting the county clerk’s office at 734-222-6655 or appointments@ewashtenaw.org.

Countywide PACE Program

On Dec. 4, commissioners were asked to take an initial step to create a countywide Property Assessed Clean Energy (PACE) program.

The goal of PACE is to help commercial property owners finance energy improvements by securing financing from lenders and repaying the loan through voluntary special assessments. In Michigan, the legislation that enables this approach (Public Act 210) was enacted in late 2010, at the end of Democratic Gov. Jennifer Granholm’s last term in office.

The proposal being considered by the county entails joining the Lean & Green Michigan coalition and contracting with Levin Energy Partners to manage the PACE program. Andy Levin, who’s spearheading the PACE program statewide through Lean & Green, was on hand during the Dec. 4 meeting to field questions. He described his role as “matchmaker,” helping the property owners find energy contractors and lenders.

The law firm of Miller, Canfield, Paddock & Stone is a partner in Lean & Green, and would act as legal counsel for any deal done through the county’s PACE program. Several other counties are part of Lean & Green, according to the group’s website. Other partners listed on the site include the Southeast Michigan Regional Energy Office, which was co-founded by county commissioner Conan Smith. Smith is married to State Sen. Rebekah Warren, who also spoke briefly during public commentary on Dec. 4 to support the initiative. She was instrumental in passing the state enabling legislation to allow such programs in Michigan.

The city of Ann Arbor was one of the first Michigan communities to establish a PACE program, which it did in 2011. The city used a federal grant that paid for the nonprofit Clean Energy Coalition to develop the city’s program. Its first projects moved forward earlier this year, when the city sold over $500,000 in PACE bonds through Ann Arbor State Bank, making it the first city in Michigan to complete a PACE bond sale. The financing funded projects at four locations: Arrowwood Hills Cooperative Housing, Big Boy Restaurant, the Goodyear Building, and Kerrytown Market & Shops.

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

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

8. Reserve Fund

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

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

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

Commissioners discussed the topic for about an hour, with most of that time centered on questions they asked of Levin.

The state statute requires a three-step process to create a PACE program. On Dec. 4, the board was being asked to take the first step – approving a resolution of intent to notify the public that the board intends to move forward with creating a PACE district. The statute lays out the information that the county must include in notifying the public – including different types of financing options.

The next step would be to hold a public hearing. The final step would be a resolution that actually creates the countywide PACE district. That last step would likely come before the board in late January or early February.

Countywide PACE Program: Public Commentary

Rebekah Warren, an Ann Arbor resident and state senator (D-District 18), spoke during public commentary. She said she was there to lend support to the resolution regarding PACE. She noted that she had introduced the bill when she served in the state House of Representatives, and helped shepherd it through in a bipartisan package of bills that passed the Democratic-controlled House and Republican-controlled Senate at the time. Jeff Irwin, who served on the Washtenaw County board of commissioners then, also helped advocate for the legislation, she said. [Irwin, also an Ann Arbor Democrat, was subsequently elected to the state House of Representatives, representing District 53.]

Rebekah Warren, an Ann Arbor resident and state senator representing District 18. She is married to county commissioner Conan Smith.

Warren described energy efficiency as a “little forgotten piece of our energy work.” It’s “not quite as sexy as some other things we do,” she said, “but the cheapest energy form out there is energy never used.” So why don’t more people invest in energy-efficiency improvements? It’s expensive on the front end, Warren noted, and sometimes the paybacks are long, so people need help with the financing.

Such improvements are great for the environment, Warren said. The more that people can rely on renewable energy sources, the better it is for the planet. It’s also great for property values, she argued – energy-efficiency upgrades to commercial or residential properties makes them more attractive for resale. It also helps the financial bottom line for homeowners and businesses. It’s a win-win for the community, for citizens, and for the planet, she said.

The PACE program in Michigan was born in Washtenaw County, Warren noted, and it would be fantastic to see the county board move forward on this policy to do the kind of work that needs to be done here. She said she’d be happy to make herself available as a resource, and to support the program as it moves forward.

In responding to Warren’s commentary, commissioner Conan Smith (D-District 9) – who is married to Warren – said he was excited that the board would be considering the first step in establishing a PACE program. He noted that the board wouldn’t be creating the program that night, but rather would be voting on a resolution of intent to tell the public that they were considering such a program. He said he would have preferred a faster process than what the legislation laid out.

Countywide PACE Program: Board Discussion – How It Works

Conan Smith (D-District 9) began the discussion by apologizing for not attending the board’s Nov. 7 working session that included a briefing on the PACE program. He hoped that everyone’s questions would get answered, and he hoped to get board approval at both the initial ways & means meeting and at the regular board meeting that same night. [Typically, a resolution is given initial approval at a ways & means meeting, then is moved to the board agenda two weeks later. In December, however, there was only one meeting scheduled.] He said that the resolution of intent doesn’t obligate the county to do anything. “It just starts the process,” he said.

Smith suggested setting a public hearing for a board meeting in January 2014. That would give the public ample opportunity to read through the program before giving feedback, he said. Then the board could take action to actually create the PACE program at its meeting in early February. It’s a long timeline to get the program going, Smith said. There’s some urgency, he added, because there’s a property owner in Washtenaw County who wants to do a substantial project that could cost millions of dollars and create up to 20 jobs. It’s a project that’s in his Ann Arbor district, Smith noted, and he hoped to get that kind of economic activity moving.

He again asked the board to pass both the initial and final approval for the resolution of intent that night, then get into the “meaty debate on public policy in January and February.”

Alicia Ping (R-District 3) said in concept it seemed like a good thing. But she questioned one of the resolved clauses:

3. The Board of Commissioners formally states its intention to provide a property owner based method of financing and funds for energy projects, including from the sale of bonds or notes which shall not be a general obligation of the County, amounts advanced by the County from any other source permitted by law, or from owner-arranged financing from a commercial lender, which funds and financing shall be secured and repaid by assessments on the property benefited, with the agreement of the record owners, such that no County moneys, general County taxes or County credit of any kind whatsoever shall be pledged, committed or used in connection with any project as required by and subject to Act 270.

It seemed to be stating that the county would help finance projects, she said, but also that no county money would be used to do that. If it’s such a great program, she asked, why would the county have to put up any money?

Conan Smith responded, explaining that the county doesn’t need to put up any money for this program, although it could. He noted that the city of Ann Arbor decided to use some taxpayer dollars for its program, but it’s not necessary for the county to do that.

By way of background, the Ann Arbor city council created a PACE program and established an energy financing district over two years ago, at its Oct. 3, 2011 meeting. Several months earlier – in March 2011 – the council had voted to set up a $432,800 loan loss reserve fund to support the program, using an Energy Efficiency and Conservation Block Grant (EECBG) awarded to the city by the U.S. Department of Energy.

Conan Smith (D-District 9).

C. Smith said that ideally, institutions like the county government can set up a program to be supportive of third-party financing – making sure that banks and credit unions are participating. He described how the program would work if he owned a business. He’d go to a bank to get financing for an energy efficiency project. Instead of refinancing his mortgage to do it, one option would be to go through the PACE program. It allows the business owner, the lender, and the county to enter into a contractual agreement. If the business owner pays the lender, the county isn’t involved. But if the business owner doesn’t pay, then the county starts its normal foreclosure process, C. Smith said. So it’s really just using the county’s foreclosure process to secure the business owner’s loan, he said, and no county dollars are involved.

In that case, Ping replied, why couldn’t the lender start the foreclosure process instead?

Andy Levin of Lean & Green Michigan explained that the language in the board’s resolution, which Ping had highlighted, mirrors exactly the language in the state enabling legislation – that’s why it’s included. But the mechanism that people are using is private lending, he said.

Energy efficiency improvements require an upfront investment that results in a payoff, he explained, but it typically takes several years to break even. Commercial loans are usually for a shorter period than the break-even point of such investments, Levin said, and that’s the problem that PACE sets out to solve.

The program draws on the special assessment power that each local unit of government holds. That way, the lender is the beneficiary of a property tax obligation. That’s different from a typical loan, in that it must be repaid before any other commercial loan. More significantly, he said, it runs with the land. So if the property is sold, the new owner is responsible for the PACE loan obligation. In turn, that means that the lenders are willing to make longer-term loans related to the useful life of the energy improvements – typically 10-20 years.

Levin pointed out that since 2008, PACE has been adopted by 31 states and the District of Columbia. And the states that are adopting this program aren’t just the stereotype “blue” states you might assume, he noted. The most recent state to adopt PACE was Texas, signed into law by Republican Gov. Rick Perry. “It’s totally apolitical – it just works for business,” Levin said.

A typical lender doesn’t have the risk profile or ability to make a loan like this for 20 years, Levin said, so a lot of lenders for energy improvements are private equity companies. There are three funds that exist for no other purpose than to make PACE loans, he said, and they’re all in Michigan.

Ping then asked about what happens when the property is sold, but the new owner isn’t a good credit risk. Does someone else have to approve the transfer of the PACE loan, given that it runs with the property? No, Levin replied – the PACE lender would not have any power over that sale.

The reason that lenders offer PACE loans is that it’s a long-term, secured, debt-based investment, Levin said. A lot of big organizations – like pension funds and insurance companies – need to have that kind of investment in their portfolios. And ultimately, the property is the collateral, he noted.

County commissioners Alicia Ping (R-District 3) and Andy LaBarre (D-District 7).

Andy LaBarre (D-District 7) thanked Levin and asked him to thank Levin’s dad for the work he does in D.C. [Levin's father is U.S. Rep. Sandy Levin and his uncle is U.S. Sen. Carl Levin.]

LaBarre wondered what would be the worst possible scenario for Washtenaw County, under the program. Levin described a scenario in which a PACE loan is made for a property, but then the property owner defaults and goes into foreclosure, and the property can’t be sold or is sold for less than the taxes owed. The PACE lien is equal to any other taxes owed on the property, Levin explained. That’s the only way any government entity could lose money, he said.

LaBarre wondered if Levin was seeing success with the program in Michigan. Were mainstream lenders participating, or just boutique investors? Levin described Michigan as an “infant” regarding PACE. So far, four counties and two cities had joined Lean & Green Michigan, he said. [The website lists the counties of Huron, Ingham, Macomb and Saginaw, and the cities of Rochester Hills and Southfield. The following day, on Dec. 5, the Wayne County commission voted to create a PACE program and join Lean & Green Michigan.]

Nationally, the PACE market has been roughly doubling every year, Levin said, and he projected that 2014 would be “the breakout year.” The biggest deal so far was for a Century City Hilton in Los Angeles, he said. In Michigan, a project in Southfield is getting consent for a PACE loan from Comerica, which holds the property’s mortgage, Levin said. He described it as a big step, because the lender who holds the mortgage on a property must give consent “or we cannot do the project.” That is a requirement of Michigan’s PACE legislation, which he said he fully supports.

Rolland Sizemore Jr. (D-District 5) wanted Levin to provide examples from other counties – “the good stuff and the bad stuff.” Levin replied that he couldn’t yet provide examples from Michigan, but he could bring examples from other states.

Felicia Brabec (D-District 4) pointed to the cover memo statement that indicated the contractor doing work on any PACE project of $250,000 or higher must guarantee the energy saving on that project. How is that possible? she asked. Levin replied that the state statute doesn’t specify how that’s done, but just states that it must be done. It was put into the legislation by large companies like Johnson Controls and Siemens because that’s a guarantee they can make, he added, and they thought it would give them a competitive advantage over smaller firms. The guarantee is usually based on an energy audit. If the energy company doing the work doesn’t have the wherewithal to guarantee the energy savings, it would have to get insurance to cover that, Levin said.

Responding to another question from Brabec, Levin said that legally, the county is creating a countywide PACE district. So a company based in Wayne County couldn’t use Washtenaw County’s PACE program. But by joining Lean & Green Michigan, all of the local governments participating in Lean & Green would be using the same processes and application, he said. So if a company has multiple properties throughout Michigan, the company would have just one process to follow if it worked through Lean & Green Michigan. That’s the advantage of local governments joining the Lean & Green coalition, he said.

Countywide PACE Program: Board Discussion – Ann Arbor’s PACE

Yousef Rabhi (D-District 8) asked how the city of Ann Arbor handles the administration of its PACE program. Levin called it an “open question.” The city had paid a private nonprofit to create and run its PACE program, Levin explained, but that contract ended in March of 2013. Levin contrasted that program with Lean & Green Michigan, saying that Lean & Green is a market model as opposed to a publicly-funded program.

Commissioner Yousef Rabhi (D-District 8).

Conan Smith further explained that the city had hired the nonprofit Clean Energy Coalition to create the PACE program, saying that no one else had done it in the state before that. It was anticipated that a lot of the CEC’s work – including legal documentation – would be leveraged by other communities across Michigan to build their own programs, he said. The city used federal grant funding to pay for CEC’s work, Smith added. He noted that CEC itself had been created by the city. It was previously called the city’s Clean Cities program before spinning off into a separate entity, he said, so there’s been a long relationship between CEC and the city.

By way of additional background, Matt Naud – the city’s environmental coordinator – told The Chronicle during a phone interview that the city doesn’t currently have the same level of staffing for its PACE program that it did during the CEC contract. However, Nate Geisler was recently hired as a full-time employee to staff the city’s energy program, and Naud indicated that Geisler would likely be working on PACE as part of that job.

So far, there has been one round of financing through the city’s PACE program. At its Feb. 19, 2013 meeting, the city council authorized issuing up to $1 million in PACE bonds, to be secured through special assessment revenues and the city’s reserve fund. The city ultimately sold $560,000 in PACE bonds through Ann Arbor State Bank and was the first city in Michigan to complete a PACE bond sale. The money funded projects at four locations: Arrowwood Hills Cooperative Housing, Big Boy Restaurant, the Goodyear Building, and Kerrytown Market & Shops. A fifth project – at the building on South State where Bivouac is located – was planned, but ultimately fell through, because the building’s owner would not sign off on the project, according to Naud. He reported that all the projects are completed except for the work at Arrowwood.

Some of the differences between the city’s approach and the one proposed by Levin relate to timing and interest rates. Naud noted that there are no administrative fees for the city, and interest rates are lower than what Lean & Green Michigan projects will likely secure on the commercial market. According to a press release issued by the city earlier this year, property owners involved in Ann Arbor’s first round of PACE financing have 10 years to repay PACE assessments at 4.75% interest.

Related to timing, Naud noted that because the city deals with smaller projects, it might take more time to line up enough projects to bundle into a bond offering.

Naud said he didn’t foresee that the city would end its PACE program unless a decision were made to not spend any staff time on it. He noted that there are strong economic development arguments to be made for energy-efficiency improvements that PACE supports, and that it also helps achieve goals in the city’s climate action plan, which calls for an 8% reduction in greenhouse gas emissions by 2015, compared to 2000 levels.

During the county board’s deliberations on Dec. 4, Brabec asked whether an Ann Arbor company would need to use the Ann Arbor PACE district or the county’s. Levin replied that it would be the company’s choice. Levin said that if a company’s project is over $350,000, it couldn’t go through Ann Arbor’s PACE program because the city can’t accommodate larger projects. He said he was totally supportive of Ann Arbor’s PACE program, and called the city a pioneer in the effort.

However, Levin said it’s impractical for every city and township to create its own PACE program. It makes more sense for the county to do it, he said.

Countywide PACE Program: Board Discussion – Other Administrators?

LaBarre said he’s spoken about this program with the county treasurer [Catherine McClary]. He said she seemed supportive, although she wanted to know more about it. He asked for Levin to describe the process for a business owner who was interested in the PACE program. Would they talk to the county, or to Levin’s organization, or a bank?

Levin explained that if the county decides to create a PACE program by joining Lean & Green Michigan, then Levin would become the county’s PACE administrator. Most local governments in Michigan don’t have the money to hire new staff to handle the administration, he noted. The only thing that the county does is to have a designated official who signs the special assessment agreements with property owners.

A property owner would come to Lean & Green Michigan, Levin said – there’s an application on its website. He noted that a mall owner in Ann Arbor who’s interested in PACE found out about it because an executive met Levin at a national PACE retreat. The company doesn’t want to use the city of Ann Arbor’s PACE program, he said, because the project is too big for the city and the company doesn’t want to use public funds. That property owner would have the ability to approach Lean & Green Michigan with everything in order, he said, including the energy audit and financing.

But smaller property owners might not have that ability. So part of his role is to “play matchmaker,” Levin said, helping the property owner find an energy contractor and a lender.

From left: Corporation counsel Curt Hedger and commissioner Kent Martinez-Kratz (D-District 1).

Kent Martinez-Kratz (D-District 1) asked about the administrative fees that Levin would be charging. Levin replied that the fees for Miller Canfield, the law firm that’s a partner in this venture, would vary depending on the deal. It could range from a few thousand dollars to tens of thousands, depending on the size of the project. The fees for his firm, Levin Energy Partners, are generally 2% of the deal upfront.

Yousef Rabhi followed up on that question, asking for more details about how Levin would get paid. Levin clarified that his fees could be paid by the contractor, or it could be part of the closing costs. He noted that other costs associated with the project include a mandatory energy audit. The statute also requires a plan for ongoing monitoring and verification of those energy improvements.

Levin explained that the point of setting up Lean & Green Michigan was as an alternative to each local government paying a substantial amount of money to create and run its own PACE program. Taxpayers shouldn’t pay anything, and the entire process can be market-driven, Levin said.

Rabhi asked whether the program that Levin is proposing for Washtenaw County means that anyone who wants to do a PACE project through the county must work with Levin’s firm. Yes, Levin said. The county would be naming Levin as the third-party administrator for its PACE program. Levin pointed out that the county could actually create multiple PACE programs, if it wanted to. The county board can also end the program at any time, he said.

Rabhi asked if there are other options for entities to administer the county’s PACE program. Not in Michigan, Levin said. He described himself as part of a “brother and sisterhood of PACE pioneers” – about 30-40 people nationwide. Levin noted that he was head of the Michigan Dept. of Energy, Labor & Economic Growth (DELEG) during Gov. Jennifer Granholm’s administration, when the PACE legislation was enacted.

When he left that position, he realized there was an issue with administering the program, because local governments don’t want to pay for administering their own PACE program or issue bonds that would be paid off through a special assessment. He also talked with representatives from large corporations, who told him that they weren’t interested in dealing with different rules and regulations that would be set up if each local government had its own PACE program.

That’s what led him to the idea of having one statewide PACE market, Levin said, and that’s why he created Lean & Green Michigan. Any county or city can join for free, he said, and after that, the local governments don’t have to do much. Every deal involves a property owner, an energy contractor and a lender. All three of those parties prefer the idea of one big Michigan market, instead of a lot of smaller programs, he said.

Indicating that he hoped Levin wouldn’t take offense, Rabhi said it was important to review all of the county’s options and ensure that they were proceeding in the right way.

County commissioners Alicia Ping (R-District 3), Andy LaBarre (D-District 7), and Ronnie Peterson (D-District 6).

Levin replied that “it’s a huge entrepreneurial risk on my part, I mean, to be honest.” He’s doing a lot of setup that could take years, Levin said, and until projects start coming in, there’s no funding. “Not many people are willing to do that.”

Conan Smith told Rabhi that the short answer to the question of whether there is some other provider besides Lean & Green is “No.” Essentially, Lean & Green Michigan is a sole source provider of this service in the state, he said. As evidence, he pointed to an RFP (request for proposals) process that Wayne County undertook for a PACE administrator. There was one response, he said – from Lean & Green Michigan. “No one else wants to do this work,” Smith said. Washtenaw County could go through that same RFP process, he added, but he didn’t think there was anyone else who would respond.

In response to another query from Rabhi, Levin said that Lean & Green Michigan is the name of a program that Levin Energy Partners administers. He considers the Miller Canfield law firm to be an important partner too. Rabhi asked if the county was locking itself into using Miller Canfield on the legal side, under this proposal. Yes, Levin replied, to the extent that any outside counsel is needed.

Levin said he’s not just looking to get some energy projects done. “I’m looking at how Michigan can be the most innovative state in driving down the costs of these projects for property owners.”

Ronnie Peterson said he’d be supporting this proposal. It’s similar to other partnerships the county has in order to provide services to citizens, he said, giving Ann Arbor SPARK as an example. [SPARK is a nonprofit entity that provides economic development services, and receives appropriations from the county to help support that work.] Peterson said it didn’t cost the county one dime, and it will help Washtenaw County businesses function in a changing climate. The county can opt out of its arrangement with Levin at any time, he noted.

Peterson said he knew Levin on a personal basis, and that as a Harvard Law School graduate, Levin had more options than taking on this program. Peterson said he was grateful that Levin is giving back to the state with his talents and relationships that he’s built over the years. “I trust Andy Levin, and that does make a difference to me,” Peterson said.

Countywide PACE Program: Board Discussion – Next Steps

Rolland Sizemore Jr. asked whether it would be a “done deal” if commissioners approved the proposal at their board meeting that night, following the ways & means meeting. If not, why were commissioners pushing it through to be voted on at the board meeting?

Curtis Hedger, the county’s corporation counsel, explained that the state statute requires a three-step process to create a PACE program. The board is being asked to take the first step – approving a resolution of intent. It notifies the public that the board intends to move forward with creating a PACE district. The statute lays out the information that the county must include in notifying the public – including different types of financing.

The next step would be to hold a public hearing. The last and most important step, Hedger explained, will be a resolution that actually creates the countywide PACE district. That would likely come before the board in late January or early February, he said.

Sizemore asked if there was a way to stipulate that labor for these projects would come from the county. Ronnie Peterson replied that Andy Levin is very respected in the labor community, and had been involved with the AFL-CIO on a national level. Sizemore said he didn’t need an answer that night, but it was an important issue that he wanted to address.

Conan Smith offered an amendment to the resolution, to set a public hearing on the proposal for Jan. 22.

Outcome on Smith’s amendment: On a voice vote, commissioners passed the amendment to set the public hearing date for Jan. 22. Rolland Sizemore Jr. dissented.

The board then discussed whether to take both an initial vote that night at its ways & means committee meeting, plus a final vote at the board meeting immediately following it that same night. [Typically, items receive initial approval at ways & means, then are brought to the regular board meeting two weeks later. However, there was only one board meeting in December – on Dec. 4.]

Yousef Rabhi wondered why the board couldn’t take a final vote at its first meeting in 2014, on Jan. 8. He noted that commissioners could still hold the public hearing on Jan. 22. Conan Smith noted that the first meeting of the year typically includes only organizational items, like officer elections, but he supported doing regular business then, too.

Ronnie Peterson didn’t have a problem giving the item final approval later that night, noting that the proposal doesn’t cost the county any money. Felicia Brabec pointed out that some commissioners had additional questions, and that it wouldn’t change the timeline to have a final vote for the notice of intent on Jan. 8, given that the hearing was already set for Jan. 22.

Outcome: Commissioners unanimously gave initial approval to a notice of intent to form a PACE district. A final vote on the notice of intent is expected on Jan. 8, with a public hearing on Jan. 22. A vote to establish the PACE district itself will come in late January or early February.

Peacemaking Court

At their Dec. 4 meeting, commissioners were asked to authorize acceptance of a $150,000 grant to establish the Washtenaw County Trial Court’s Peacemaking Court. The grant, awarded by the State Court Administrator’s Office, is for funding from Oct. 1, 2013 through Sept. 30, 2014.

The state grants are intended to support creative approaches in the court system. The Peacemaking Court is described in a staff memo:

Like tribal peacemaking programs and restorative justice programs, the Peacemaking Court will provide a great benefit to youth and the community in juvenile cases by reducing recidivism and giving youth a diversionary option to avoid a record that can preclude future educational and employment opportunities. Domestic relations and other family cases will benefit from more durable and tailored solutions that result from a clearer understanding of the different perspectives or “truths” of all those involved. This, in turn, will enable the healing of important relationships, in contrast to the harm and polarization that too often results for families through the adversarial process.

The Peacemaking Court will allow the parties and those most affected by the conflict to talk about the event, its impact on them, and to look at the whole conflict in a comprehensive context that leads to understanding and meaningful solutions that address the needs of all those involved. When participants are respected and the individuals responsible for causing the problem are part of the decision process and take responsibility for their actions in a meaningful way, the resolutions are more comprehensive and address the needs of everyone involved, as well as the issues that underlie the problem. An important difference between the traditional system and the peacemaking court process is that the resolution is determined WITH the court not BY the court.

Key members involved in this project are 22nd Circuit Court judge Timothy Connors, 14A District Court judge Cedric Simpson, project director Susan Butterwick, and Robert Carbeck, who is 22nd Circuit Court deputy court administrator and budget director. [.pdf of grant application]

Connors, who has spearheaded this initiative, was on hand at the Dec. 4 meeting to describe the project and answer questions. Carbeck also attended but did not formally address the board.

Peacemaking Court: Board Discussion

Ronnie Peterson (D-District 6) invited judge Timothy Connors to the podium to describe the grant.

Timothy Connors, 22nd circuit court judge.

Connors said he knew commissioners wanted to know about funding. He told them the program not only doesn’t cost anything for the county, but it’s money coming in from the state. The only role for the county would be in administering the funds, he said.

The grant is to explore and determine what, if any, tribal court philosophies or procedures might have applicability in Michigan’s courts, Connors explained. These are things that can be borrowed from the more than 500 tribal nations across the country, he noted, including some of the tribal courts in Michigan that are leaders in the country. He’s been working with these courts and came to the conclusion that there’s a lot to learn.

Peacemaking courts are being held overseas, most notably by two communities in England, Connors reported, saying he’s met with representatives from those communities. Their approach is borrowed from New Zealand’s indigenous culture.

Connors noted that a lot of this work is based on South Africa’s Truth and Reconciliation Commission hearings held during Nelson Mandela’s presidency. “So I can’t imagine anybody really being threatened by it,” he said. Only people who want to participate will use this approach, he explained – saying it’s not imposed on anyone. It’s designed to offer an alternative way to resolve differences. After 23 years on the bench, he said, he’s learned that the court system often addresses the symptom, but seldom talks about the disease.

Judge Cedric Simpson will be participating from the 14A District Court. Connors said the approach is already being offered in the domestic relations and family court, and there’s interest in it from business-related cases and in the probate court. “It is my commitment to spend the rest of my career with you working and trying to do the best I can in my final 11 years,” he said. [Judges are elected to six-year terms, and Connors' current term expires in January 2019. He was likely referring to the statutory age limit – judges must be under 70 years old at the time of their election.] Connors said he hoped the county took advantage of the grant, and that he’d keep the board informed of the educational sessions that will be held about the peacemaking court.

Conan Smith (D-District 9) thanked Connors for his work. He said he’s been involved in alternative dispute resolution with the court, and was a small claims mediator, so “I know the power that conversations can have.” Learning from what other cultures have done is a great idea, Smith said, and he’s proud of the county and grateful to Connors and the team that pulled this together.

Yousef Rabhi (D-District 8) echoed those sentiments, saying he was glad to have a small role in this project. Ronnie Peterson (D-District 6) also thanked Connors, and recalled a conversation they’d had recently about former judge Francis O’Brien. Peterson noted that O’Brien had been well-known across the state and country for advanced programs and treatment models for juveniles. He was pleased to see that Connors was making sure that the legacy of O’Brien continued.

Peterson also said he was pleased that the wall between the county board and the court is coming down. He hoped the dialogue would result in additional innovative programs, but he joked that the initiative had to come from the judges: “We dare not to mess with you in robes, because of the power that you possess,” Peterson quipped.

Connors responded, saying he didn’t see those walls and that such walls between the county administration and the court would be “ridiculous.” He said he intended to involve the county’s detention center in the decision-making, and indicated that the goal for everyone is to help the children.

Infrastructure Projects

Two infrastructure projects – in Dexter Township and Freedom Township – were on the board’s Dec. 4 agenda for approval.

The board was asked to authorize issuing up to $460,000 in bonds for the Copper Meadows drain project in Dexter Township, northwest of Ann Arbor. The drain is located in the Copper Meadows subdivision off of North Territorial Road, near the Dexter town hall. The bonds would be repaid with special assessments on Dexter Township, Washtenaw County, and property owners in the drainage district. The first assessment would be levied in December 2014. [.pdf of staff memo on Copper Meadows project]

The board also was asked to pass a resolution that directs the county’s board of public works to undertake a lake improvement project at Pleasant Lake in Freedom Township, located southwest of Ann Arbor. The township’s board of trustees has passed a resolution asking for the county’s assistance in implementing and financing of a project to control invasive and nuisance species at the lake. The proposed five-year project would require special assessments on property owners that would benefit from the work.

Outcome: Both infrastructure projects received unanimous final approval by the board.

Appointments

Over 30 appointments to various county boards, committees and commissions were on the Dec. 4 agenda for approval. [.pdf of appointments]

Washtenaw County water resources commissioner Evan Pratt was appointed as the county’s director of public works.

Board chair Yousef Rabhi (D-District 8) read aloud his list of nominations, making a few additional comments along the way. He noted that an application for an opening on the agricultural lands preservation advisory committee had been received after the deadline, so he’d be bringing a nomination forward in January for that.

There were several unfilled positions on the local emergency planning committee, he noted, for slots that require certain types of representation – to represent hospitals, agriculture, and several other specific areas, for example. In total, the county needed to fill 23 positions, but only nine nominations were brought forward on Dec. 4.

An opening on the Washtenaw County parks & recreation commission that resulted from the retirement this month of long-time commissioner Nelson Meade will not be immediately filled, to allow for the opening to be publicized.

Openings for most positions had been publicized in October and November. An appointments caucus was held on Nov. 21 to discuss the openings and applications. That caucus drew only two commissioners, however – Rabhi and Conan Smith (D-District 9), who both represent districts in Ann Arbor.

The deadline had been extended until Dec. 1 for openings on three entities: the southeast Michigan Regional Transit Authority (RTA); the Washtenaw County historic district commission; and the Washtenaw County food policy council. As a result of the extension, additional positions were filled on the HDC (Alec Jerome) and the food policy council (Markell Miller and Caitlin Joseph).

Also, no appointment was made to the RTA. Richard Murphy – one of two RTA board members from Washtenaw County – is not seeking reappointment. During the Dec. 4 meeting, board chair Yousef Rabhi indicated that there’s some uncertainty about when Murphy’s one-year term actually ends, and that needs to be sorted out with state and RTA officials. Because RTA board members weren’t sworn in until April of 2013, some state and RTA officials believe the term extends until April – even though appointments for Washtenaw County’s two slots were made by the previous county board chair, Conan Smith, in late 2012.

Rabhi said he planned to re-open the application process, with a new deadline to be determined, after these issues are clarified.

Outcome: Appointments were approved unanimously.

Later in the month, the application process was re-opened for the RTA, with a new deadline of Jan. 12. That same deadline applies to openings on the county’s food policy council and parks & recreation commission. Applicants can submit material online, or get more information by contacting Peter Simms of the county clerk’s office at 734-222-6655 or appointments@ewashtenaw.org.

Appointments: Director of Public Works

In addition to the other appointments, the board was asked to appoint Evan Pratt, the county’s water resources commissioner, as director of public works, effective Jan. 1, 2014. The current director of public works is Daniel R. Myers. According to a staff memo, the board of public works had raised a question about potential conflict-of-interest with this appointment. From the memo:

Since Evan is currently the elected Water Resources Commissioner for the County, the Board of Public Works wanted to assure themselves that it was not a conflict for the person serving as the Water Resources Commissioner to also be appointed the Director of Public Works. With the assistance of Corporation Counsel they researched this issue and it was determined that it would not be a conflict of interest. Additionally, the current organizational structure of Public Works places the Director under the management direction of the Water Resources Commissioner so there is already direct involvement in Director of Public Works activities. [.pdf of corporation counsel opinion]

Earlier this year, Dan Smith (R-District 2) had asked the corporation counsel, Curtis Hedger, to weigh in on a separate issue – about the constitutionality of levying taxes based on pre-Headlee state laws. During deliberations at the board’s Oct. 16, 2013 meeting, Hedger said he would never put a legal opinion in a cover memo unless he’s directed by the board to do so. The board is his client – not individual commissioners, he told them, adding that he writes legal opinions under the board’s direction.

In the case of the opinion produced for the appointment of Pratt, Hedger indicated that the board leadership had asked for the opinion, on behalf of the entire board, as did the county administrator and the outgoing public works director.

Outcome: The appointment was approved on an 8-1 vote, over dissent from Rolland Sizemore Jr. He did not publicly state his reason for voting against this appointment.

Recognitions

Commissioners voted on resolutions of appreciation at their Dec. 4 meeting to honor two men who have served the county for decades: Dick Fleece and Nelson Meade.

Outgoing county health officer Dick Fleece and Ellen Rabinowitz, interim health officer.

Fleece has worked for the county for 38 years in the field of public and environmental health, and is retiring at the end of 2013. He was appointed the county’s environmental health director in 1994, and has served as the health officer since 2009. [.pdf of resolution of appreciation for Fleece] Fleece received a standing ovation from commissioners and staff.

At the county board’s Nov. 6, 2013 meeting, commissioners had appointed Ellen Rabinowitz as interim health officer.

Also on Dec. 4, commissioners honored Nelson Meade, who is stepping down from the Washtenaw County parks & recreation commission after serving for over 40 years. [.pdf of resolution of appreciation for Meade] He was an administrator at the University of Michigan’s School of Public Health and had served in various roles in city government, including two terms on the Ann Arbor city council. His departure from WCPARC was announced at its Nov. 12, 2013 meeting.

Meade did not attend the Dec. 4 meeting, but was given the framed resolution at a reception later in the week. And at the Dec. 10 WCPARC meeting, it was announced that County Farm Park will be renamed in Meade’s honor, as the Nelson Meade County Farm Park. The 141-acre park is located on Ann Arbor’s east side, at the southwest corner of Washtenaw Avenue and Platt Road.

Outcome: Both resolutions passed unanimously.

Communications & Commentary

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

Communications & Commentary: Public Health

At the board’s Nov. 6, 2013 meeting, Ellen Rabinowitz was appointed as interim health officer for the county, because the county’s current health officer, Dick Fleece, was retiring. As they’d done in the past, at that meeting both Conan Smith (D-District 9) and Ronnie Peterson (D-District 6) advocated for the county to create a board of public health. From The Chronicle’s Nov. 6 meeting report:

Conan Smith (D-District 9) told Rabinowitz that he really wants to see a public health board created. He asked her to report back to the board about what a public health board would mean to the department, and the process required to set it up. Rabinowitz replied that it’s an important issue to explore. The possibility of pulling together a board of experts is something she’s interested in exploring. Peterson said it should be a goal to establish such a board by the end of 2013, because public health advocates who might serve on the board should be involved in selecting a permanent director.

…

Regarding a public health board, Fleece said he’s heard varying opinions. Some people say that such boards require a lot of care and feeding to the extent that the board becomes a burden on staff. In other cases, the board can be an advocate and serve as a good source of information. There will be decisions to make regarding how much authority to give a public health board, he noted.

Fleece also pointed out that the county’s public health department already seeks advice from many sources, including the University of Michigan School of Public Health. He said he’d do everything he can to help with this process.

At the board’s Nov. 20, 2013 meeting, Rabinowitz told commissioners that she’d been working with the county administrator to develop a document that she planned to present to the board on Dec. 4. The document would lay out all the issues that need to be explored in reestablishing the board of public health, she said, including budget impacts, potential composition, and how it would relate to other existing boards.

Washtenaw County administrator Verna McDaniel.

On Dec. 4, Rabinowitz told the board that she knew Peterson had wanted a resolution on this issue to come forward at that meeting. However, she said she wasn’t ready yet because she’s still doing the due diligence and gathering information that’s needed to reestablish a board of public health. She was meeting the next day with the director of local public health services at the Michigan Dept. of Community Health to sort out why such a board is optional and what authority it would have. She’s also pulling together information about all the different ways that the county’s public health department currently receives public input, “because clearly that is one key role for a board of health,” she said.

Rabinowitz reported that she’ll also be meeting in January with the dean of the University of Michigan School of Public Health and the associate dean for public health practice to get their input. Her intent is to bring forward a resolution in the first quarter of 2014.

Yousef Rabhi (D-District 8) thanked Rabinowitz, saying that he knew she wanted to do what’s best for the county, what’s legal under the state statute, and what’s best in terms of engaging citizens. He noted that the county public health department already works with about 10 different citizen boards and commissions that are working on specific areas, like environmental health. He wanted to look at elevating the voice of people who sometimes don’t have input, and he looked forward to the proposal she’d be bringing forward next year.

Peterson said his desire to have a board of public health would not go away. The county has a parks & recreation commission, a board of public works, a drain board and a road commission, he noted, and a board of public health is just as important. He expected an update from the county administrator in January regarding the status of such a board. He argued that the county board needs to appoint people to a public health board who could advocate on behalf of children and other vulnerable citizens.

Conan Smith said he also was committed to putting a board of public health in place to guide commissioners. However, he added, he also understands the need for time to figure it out and do it right. He didn’t want to delay it with the intention of killing it, but thought it was worthwhile to get it done right.

Rabhi said he didn’t see the additional time as a delaying tactic, and he appreciated the time that staff was putting into it.

On a different topic, Alicia Ping said she hoped Rabinowitz could serve as a resource. Ping had recently received an email from the Saline mayor, reporting that there had been another heroin overdose in that city. The mayor is coordinating a response with the Saline police department and school system, she said, and has asked Ping to reach out to the county to see what resources are available.

Communications & Commentary: Misc. Public Commentary

Thomas Partridge spoke during both opportunities for public commentary during the evening. He introduced himself as a recent candidate for Ann Arbor city council, as well as a previous candidate for other offices. He urged the board to do more for the community’s most disadvantaged residents, finding ways to provide better access to health care, housing, transportation and education. He asked commissioners to work during their vacation period to help those in need. He argued that Gov. Rick Snyder and the state legislature had neglected and bullied the most vulnerable citizens on Michigan, as well as middle-class residents.

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

Next regular board meeting: Wednesday, Jan. 8, 2014 at 6:30 p.m. at the county administration building, 220 N. Main St. in Ann Arbor. The ways & means committee meets first, followed immediately by the regular board meeting. [Check Chronicle event listings to confirm date.] (Though the agenda states that the regular board meeting begins at 6:45 p.m., it usually starts much later – times vary depending on what’s on the agenda.) Public commentary is held at the beginning of each meeting, and no advance sign-up is required.

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The goal of PACE is to help commercial property owners finance energy improvements by securing financing from commercial lenders and repaying the loan through voluntary special assessments. The proposal entails joining the Lean & Green Michigan coalition and contracting with Levin Energy Partners to manage the PACE program. Andy Levin, who’s spearheading the PACE program statewide through Lean & Green, was on hand to field questions. State Sen. Rebekah Warren also spoke briefly during public commentary to support the initiative. She was instrumental in passing the state enabling legislation to allow such programs in Michigan.

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

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

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

8. Reserve Fund

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

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

[.pdf of PACE program documentation]

A final vote on the notice of intent is scheduled for the board’s first meeting in January – on Jan. 8, 2014. Also on Dec. 4, the board set a public hearing on this issue for the meeting on Jan. 22, 2014. The board would also need to take another vote to actually create the PACE district. A date for that action has not been set.

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

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

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

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

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

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

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

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

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

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

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

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

Right-to-Work Response

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

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

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

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

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

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

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

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

Right-to-Work Response: Public Commentary

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

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

Right-to-Work Response: Board Discussion

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

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

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

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

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

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

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

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

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

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

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

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

Smith did not formally offer the resolutions for consideration.

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

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

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

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

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

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

Delinquent Tax Borrowing

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

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

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

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

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

Delinquent Tax Borrowing: Board Discussion

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

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

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

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

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

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

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

Treasurer’s Report

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

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

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

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

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

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

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

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

Chart showing Washtenaw County investment allocations.

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

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

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

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

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

Treasurer’s Report: Board Discussion

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

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

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

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

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

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

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

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

Outcome: This was not a voting item.

Energy Alliance Accord

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

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

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

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

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

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

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

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

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

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

Energy Alliance Accord: Board Discussion

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

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

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

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

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

After-School Program Grant

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

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

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

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

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

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

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

After-School Grant Program: Board Discussion

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

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

Changes to Board Rules & Regulations

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

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

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

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

At that Dec. 5 meeting, commissioners had voted to alter their compensation to receive stipend payments based on the number of meetings that a commissioner is likely to attend for a particular appointment. One or two meetings per year would pay $50, three or four meetings would pay $100, and the amounts increase based on the number of meetings. Each commissioner typically has several appointments. In the past, commissioners had to request per diem payments for their work. Now, stipend payments will be made automatically, unless commissioners waive their stipends by giving written notice to the county clerk.

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

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

Board Budget Calendar & Guidelines

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

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

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

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

Community & Economic Development Grants

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

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

Community & Economic Development Grants: Board Discussion

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

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

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

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

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

Tech Agreement

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

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

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

Tech Agreement: Board Discussion

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

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

Debt Refinancing for Township Sewers

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

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

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

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

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

Miller Avenue Drain Project

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

Evan Pratt, Washtenaw County water resources commissioner.

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

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

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

There was no discussion on this item.

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

Communications & Commentary

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

Communications & Commentary: County ID Card

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

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

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

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

Communications & Commentary: Liaison Reports

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

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

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

Communications & Commentary: Introductions

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

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

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

Communications & Commentary: Public Commentary

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

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

Absent: Ronnie Peterson, Alicia Ping.

Next regular board meeting: Wednesday, Feb. 20, 2013 at 6:30 p.m. at the county administration building, 220 N. Main St. in Ann Arbor. The ways & means committee meets first, followed immediately by the regular board meeting. [Check Chronicle event listings to confirm date.] (Though the agenda states that the regular board meeting begins at 6:45 p.m., it usually starts much later – times vary depending on what’s on the agenda.) Public commentary is held at the beginning of each meeting, and no advance sign-up is required.

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Current zoning of properties surrounding the parcel at 2081 E. Ellsworth Road – denoted with a “?” Owners are requesting the parcel to be zoned as R3 (townhouse dwelling district). (Map labeled by The Chronicle.)

Dependent on the R3 zoning is Summit Townhomes – a proposed project for the 2081 E. Ellsworth Road site, located in the southern part of the city just east of Stone School Road. The townhouse project’s site plan is expected to come before the council for approval later this month. The planning commission has already recommended that the Summit Townhomes project be approved, and previously recommended the R3 zoning. The council itself had already given the zoning its initial approval at a previous meeting.

But during the public hearing about the zoning on Feb. 4, the council heard from several people who spoke against the zoning and the project, reprising many of the same objections that had been raised more than seven months ago at the June 19, 2012 meeting of the planning commission. Concerns included overcrowding and congestion in the area, and a lack of adequate city services. Also weighing in with general support for zoning that fits with the desires of residents was Washtenaw County commissioner Andy LaBarre, who represents the county district where the site is located.

Another item related to future land use was council action to authorize the distribution of the draft South State Street corridor plan to neighboring jurisdictions and other stakeholders, such as the University of Michigan, the Ann Arbor Public Schools, and the Ann Arbor Transportation Authority. After a mandated comment period, the city planning commission will have the opportunity to make revisions to the plan, before the commission and the city council make a decision to adopt it.

A major infrastructure study, with a roughly $1 million budget, was also authorized by the council – to give the city a clearer understanding of how flows behave in the sanitary sewer system, especially during rainy periods. The study is prompted by a desire to measure the impact of a footing drain disconnection program that the city has implemented for over a decade. In the last year, the program has generated strong protest from the Glen Leven neighborhood. The footing drain disconnection program was created in part to remedy the backup of raw sewage in basements during heavy rains.

The city council also authorized revisions to two existing technology agreements. One was an agreement between the city of Ann Arbor, Washtenaw County and the Ann Arbor Transportation Authority to act as a purchasing consortium. The modification to the agreement will allow other participants to be added to the consortium in a streamlined way. The second agreement was the extension of a contract with the city of Chelsea to provide various IT services.

The council put off a decision on issuing bonds to support energy improvements for its property assessed clean energy (PACE) program. The item had been added late to the agenda, and several councilmembers had questions they wanted answered before voting on it.

Although the agenda itself was light, several significant communications were included, either as written attachments or conveyed verbally. The written reports attached to the agenda included a revised auditor’s letter and a report on how the street resurfacing millage money was spent during the 2012 season.

Conveyed verbally was a report from the council’s budget committee chair, Marcia Higgins (Ward 4), who alerted councilmembers that on Feb. 11 and Feb. 25 the council would hold budget work sessions starting at 6 p.m., with each meeting consisting of two 2-hour sessions with a break.

Stephen Kunselman (Ward 3), chair of the city’s taxicab board, called for enforcement of the city ordinance that is meant to prevent the operation of “rogue limousines” – in the context of a reported sexual assault of a University of Michigan student by the driver of either a taxicab or limousine.

Kunselman also called for a number of revisions to the city ordinance that establishes the Ann Arbor Downtown Development Authority, including stricter regulations on membership of the board, but more significantly a limitation on the way the DDA’s tax increment finance (TIF) capture is calculated.

Townhouse Zoning

The council considered a second and final approval of zoning for a recently-annexed city parcel as R3 (townhouse dwelling district). It’s a roughly 3-acre site, just east of Stone School Road, that was previously part of Pittsfield Township.

The city’s planning commission had voted to recommend the zoning at its Nov. 20, 2012 meeting and the city council gave initial approval at its Jan. 7, 2013 meeting.

Parcel (shaded yellow) is requested to be zoned as R3 (townhouse dwelling district). The blue line is the boundary between the Malletts Creek and the Swift Run watersheds.

When the council gave its initial approval, Christopher Taylor had indicated that while he was voting for the zoning on that occasion, he wanted to alert his council colleagues to the fact that he’d heard some concerns about the type of progress and development that the zoning represents. Taylor represents Ward 3, where the proposed project is located. So Taylor said the issue might be a point of discussion when the council was asked to give the zoning its final approval. That reflected concerns also expressed at the planning commission’s June 19, 2012 meeting from residents of the nearby Forest Hills Cooperative.

R3 zoning is consistent with the intended development of the site – to be called Summit Townhomes – for which the city’s planning commission recommended approval at its Jan. 3, 2013 meeting. The developer wants to build 24 attached residential units in four separate buildings, with each building between 80 to 160 feet in length. Each of the 24 units would have a floor area of about 1,300 square feet, and an attached one-car garage. The site plan includes two surface parking areas on the east and west sides of the site, each with 12 spaces.

Townhouse Zoning: Public Hearing

Andy LaBarre told councilmembers he was addressing them as a city resident and also as a Washtenaw County commissioner. The parcel is in the district he represents on the county board of commissioners – District 7. [LaBarre is serving his first term as a Washtenaw County commissioner, having been elected in November 2012.] In the course of the campaign and since then, LaBarre said, he’d had a chance to meet Claudia Myszke [managing agent of the Forest Hills Cooperative] and other leaders of neighborhood and homeowners associations in the area.

Left to right: Christopher Taylor (Ward 3) and Washtenaw County commissioner Andy LaBarre.

LaBarre believed that residents hoped to have as little dense development as possible. He allowed that city councilmembers have hard jobs with the number of constituents that they have to respond to, and they have different ideas amongst themselves on the council and “frankly, within your own heads at times.” So he wanted to offer any and all assistance that he could provide – in his capacity as a resident or as a single commissioner on the county board – to work to make sure there’s some level of future use of that land that fits with the desire of current residents there. LaBarre said he’d follow up later with Ward 3 councilmembers Christopher Taylor and Stephen Kunselman.

Aiji Pipho introduced herself as a resident and committee member of Forest Hills Cooperative. The project planned for the 3-acre parcel will be the fifth to be “shoe-horned” into a quarter mile, she said. The city’s goal is that everybody is supposed to be able to walk to a park that’s within a quarter mile of their home. The park that is walkable from her house, she said, is one where people get attacked. Her son got his jaw and nose broken in the park closest to their house. The city should be thinking about providing services to a poor community, she said – something that would create a separation from “gang members” who hang out in the parks and the “latch-key children” who come home from school and have to manage without their mom and dad being there. What’s shown itself to be a positive influence in other areas, she said, are good community services. So she wanted part of the land to be reserved for a community center – in this part of the city, where many poor people are concentrated.

Flo Hepola told the council she had concerns about the population density. She described the traffic on Ellsworth as horrible – saying it was bad to begin with, even without the new development. She asked for more infrastructure support for the growing and expanded population. She said it was difficult to find a decent park to take her granddaughter, so she’d wound up driving to a county park. There’s only one drinking fountain in the closest park – Southeast Area Park. The kids in the neighborhood liked to hang out at that park, she said, but there’d been incidents of kids having heat stroke while playing basketball. She wanted to see the land developed for use by the community. She thanked Christopher Taylor, Chuck Warpehoski and Andy LaBarre, who she said have been very helpful.

Claudia Myszke, managing agent of the Forest Hills Cooperative, told the council she was there representing her board of directors and the 306 limited-income families who live in Forest Hills. She was also there on behalf of the “sister cooperatives” – Colonial Square Cooperative and University Townhouse Cooperative – which have 427 and 630 limited-income families, respectively. She thanked Christopher Taylor, Chuck Warpehoski and Andy LaBarre for working with members of the Forest Hills community as they’ve tried to educate themselves. She also thanked Leonard Michaels, who represents the Summit Townhomes development.

Myszke told the council she was there to oppose zoning of the land as R3. She told the council that within a five-mile radius, there are over 2,400 units of multi-family housing. All of it is limited-income, affordable housing. She calculated that this translated to about 6,000 people. She had major concerns about the potential zoning to accommodate more people in an area that is already saturated.

Thomas Partridge told councilmembers he wanted them to take the zoning proposal back and make sure that it provided for some prospect of integrated affordable housing with retail or community services and affordable, accessible transportation for the most vulnerable residents.

Townhouse Zoning: Council Deliberations

Sabra Briere (Ward 1), who is the city council appointee to the city planning commission, briefed the council from her perspective serving on the planning commission since December 2012. When the planning commission had deliberated on the Summit Townhomes site plan in early January, planning commissioners had not heard from residents with the kind of objections that they’d expressed that evening to the city council, Briere said. [Later in deliberations, city planning manager Wendy Rampson pointed out that these issues had been raised at a meeting earlier in 2012, in the summer before Briere had been appointed to the planning commission.]

Planning commissioners had discussed transportation and congestion issues and whether there was a way for children to walk to school without having to walk along Ellsworth or Stone School roads, Briere reported. The planning commission had not discussed whether property should be acquired for a city park, she said.

Briere allowed that it’s a very congested area and the zoning is intentionally for multi-family use. Since she lived in the area 40 years ago, it’s been an “entry level” of housing for people with low incomes, she said. She noted that the Community Action Network (CAN) provides services in this neighborhood. [CAN runs the nearby Bryant Community Center, under contract with the city.] The requests from residents for more services and more thoughtful planning were reasonable, she said. But Briere also noted that the proposed project absolutely fits the zone and the master plan. She noted, however, that the council had options – including saying that it was the council’s desire to step back and think about it.

Councilmembers Margie Teall (Ward 4) and Christopher Taylor (Ward 3).

Christopher Taylor (Ward 3) allowed that the proposed zoning is probably consistent with the master plan because that’s generally what is in the area now. But it’s important to acknowledge the feelings of the residents who live there who’d expressed concerns about the livability of the area. He ventured that perhaps the implementation of the city’s master plan had “outstripped” the master plan itself.

Taylor asked city planning manager Wendy Rampson to address the rationale for the parcel’s R3 zoning. Rampson indicated that the project had been reviewed by the planning commission and staff several times before it had come before the city council. When the parcel was under Pittsfield Township’s jurisdiction, it had a single-family home. Upon annexation, the city must assign appropriate zoning, she explained. The city’s South Area Plan, which she allowed was somewhat dated, identified 20 acres at the corner of Ellsworth and Stone School as being appropriate for single-family attached and detached use. The R3 zoning designation, which was being requested, is single-family attached housing – which translates to a maximum density of about 10 units per acre, she said. The Summit Townhomes project is actually about 8 units per acre. The other alternatives would be single-family or duplex. At the planning commission, there hadn’t been a suggestion that either of those should be applied.

The report from the city traffic engineers, Rampson said, indicated that the impact from a single-family attached development is minor compared to a Tim Hortons at the corner of Ellsworth and South State. The Summit Townhomes development would add a small amount of traffic to what’s already there.

Taylor got clarification from Rampson that application of single-family or duplex zoning to the parcel, instead of townhouse zoning, would reduce the number of allowable units by half to a quarter. She note that there’s a slope on the land that makes it a challenging site to develop, so she ventured that a certain minimum number of units would be required in order to make it financially feasible.

Two-foot contour map for the area on Ellsworth Road that’s requested to be zoned R3 (townhouse dwelling district).

Responding to a question from Taylor about drainage, Rampson indicated that the parcel drains to the south and west side, so the drainage doesn’t affect Arbor Oaks to the north – because water from the parcel flows toward Ellsworth. Later in deliberations, Stephen Kunselman (Ward 3) questioned whether the parcel had a different drainage area from Arbor Oaks, saying that he believed that both were a part of the Mallets Creek watershed. Rampson agreed that both pieces of land were part of the Mallets Creek watershed, and that the drainage from the Summit Townhomes parcel went to Mallets Creek, but not through Arbor Oaks.

Public services area administrator Craig Hupy was not able to recall what the topographic maps for the area looked like to settle the question for Kunselman.

Kunselman also pointed to the parcel zoned R1C to the east, which would become isolated as an R1C area if the council approved the R3 zoning for the Summit Townhomes parcel. He asked Rampson if assigning R1C zoning to the parcel would stop the Summit Townhomes development. Yes, Rampson confirmed. Kunselman asked if there’d be any legal issues associated with a council decision to do that. Rampson declined to speculate, saying that the zoning decision is discretionary on the council’s part. She ventured that if the council was not inclined to support the R3 zoning, the item could be rescheduled or postponed. The zoning and the site plan could be considered together at the council’s Feb. 19 meeting.

Kunselman and Taylor both indicated a willingness to postpone the zoning question.

There was no opposition to postponement expressed by other councilmembers. The ensuing discussion centered around the nature of the direction to be given to the planning commission. The consensus coalesced around the idea that the planning commission should consider lower density zoning – without specific direction from the council to consider specific zoning options.

Leonard Michaels of CIW Engineering was present at the meeting on behalf of the developer and asked to comment.

Michaels described how the project began more than a year ago, noting that Taylor had been present for the required citizens participation meeting. The location of that meeting had been changed to accommodate as many people as possible. He noted that the report from Claudia Myszke, managing agent of the Forest Hills Cooperative, had been included in the developer’s report about the citizens participation meeting, without any omissions. He noted that the Summit Townhomes proposal adds less density than is allowed by R3. The drainage is still being designed, he said, but it will not increase the runoff into the Ellsworth ditch.

Michaels reported that he’s still “playing phone tag” with the Ann Arbor Public Schools, trying to understand where to put a pedestrian connection to the school.

Chuck Warpehoski (Ward 5) said he was comfortable with having the planning commission take another look at the zoning. He summarized the concerns as involving three issues: driving, drainage, and public services. He noted that the area is not in the ward he represents, but he knows people who live there.

Outcome: The council voted unanimously to refer the issue back to the planning commission. The commission’s next regular meeting is on Thursday, Feb. 21.

Distribution of South State Street Plan

The council considered a resolution to distribute a draft of Ann Arbor’s South State Street corridor plan to neighboring jurisdictions and other stakeholders, such as the University of Michigan, the Ann Arbor Public Schools, and the Ann Arbor Transportation Authority. The planning commission had voted to recommend the corridor plan’s distribution at its Jan. 3, 2013 meeting. [.pdf of draft South State corridor plan]

The plan includes more than 40 overall recommendations for the corridor, which stretches about 2 miles between Stimson Street at the north end down to Ellsworth in the south. Recommendations are organized into categories of the city’s sustainability framework: Land use and access, community, climate and energy, and resource management.

Among the recommendations are: (1) Evaluate use of vacant parcels for alternative energy generation; (2) Evaluate integration of public art along the corridor; (3) Evaluate use of open land for community gardens; (4) Assess and improve high crash areas along the corridor; (5) create boulevard on State Street between Eisenhower and I‐94 to enable safer automobile, bicycle, and pedestrian movement; (6) consider utilizing vacant parcels for athletic fields and recreation facilities; (7) develop a pedestrian and bicycle path along the Ann Arbor railroad that will connect the planned Allen Creek bikeway to Pittsfield Township through the corridor; and (8) resurface roads in the corridor.

Each recommendation includes several related action items. The plan also provides a section that organizes the recommendations into each of three distinct sections of the corridor: (1) from Stimson on the north to Eisenhower Parkway; (2) from Eisenhower south to the I-94 interchange; and (3) from I-94 to Ellsworth. In addition, there are nine site-specific recommendations for areas including Briarwood Mall, the complex of hotels near Victors Way and Broadway, and the research park development near the corridor’s south end.

The city planning commission and staff have been discussing this project for several years, but have accelerated work on it within the past 12-18 months. See Chronicle coverage: “South State Corridor Gets Closer Look,” “Sustainability Goals Shape Corridor Study,” and “Ideas Floated for South State Corridor.”

South State Street Plan: Council Deliberations

Marcia Higgins (Ward 4) clarified with planning manager Wendy Rampson that the plan to be distributed is a draft plan, and asked that the word “draft” be inserted in one instance where the plan was described in the resolution. Higgins also confirmed with Rampson that a comment period would follow the draft plan distribution, which would include possible comments from the public. Revisions to the draft could be undertaken, but the planning commission and the city council would then need to adopt the plan to make it final, following a public hearing.

Rampson noted that the planning commission and the city council would need to adopt the same plan. She noted that in the past, the city council hadn’t agreed with the planning commission’s version of a plan and had returned the plan to the commission. [She was referring to the downtown plan, which was most recently adopted in 2009.] Rampson said she’d prefer for that not to happen again, and for differences between the council and the commission to be sorted out before voting.

Outcome: The council voted unanimously to authorize distribution of the draft South State Street corridor plan.

Sanitary Sewer Flow Study

The council was asked to consider authorizing a study of Ann Arbor’s sanitary sewer flows – meant to assess the impact of a decade-long footing drain disconnection program. The study is to be conducted by Orchard, Hiltz & McCliment Inc. over the next year-and-a-half to two years.

The $968,348 contract with OHM is part of a project budget that includes a $192,000 contingency and $85,000 to account for city staff time. The money will come from the city’s sanitary sewer capital fund.

The city of Ann Arbor’s footing drain disconnect (FDD) program was implemented in 2001, prompted by repeated incidents of raw sewage backing up in residents’ basements and the discharge of only partially treated sewage into the Huron River.

The city of Ann Arbor has separate sanitary and stormwater conveyance systems. However, during construction of new developments before 1980, footing drains – permeable pipes buried around the perimeter of a foundation, roughly at the depth of a basement floor – were frequently connected directly to the sanitary sewer pipes. Those connections were convenient to make, because the footing drains and the sanitary sewers are buried at roughly the same depth.

However, during very heavy rains, that configuration leads to a volume of stormwater flow into the sanitary sewer system that it’s not designed to handle. That can cause two problems. First, near the point where the extra water is entering the sanitary system, it can cause raw sewage to back up through the floor drains of basements. Second, farther downstream at the wastewater treatment plant, the amount of water flowing into the plant can exceed the plant’s capacity. That can result in only partially-treated wastewater being discharged into the Huron River.

It was wastewater discharges into the river that led the city to agree to an administrative consent order with the Michigan Dept. of Environmental Quality (MDEQ) to establish a way to offset the impact of new connections to the sanitary system required by new developments. That program essentially requires developers who are building projects that place additional burdens on the sanitary sewer system to pay for a number of footing drain disconnections elsewhere in the city, according to a formula.

The footing drain disconnect program was targeted initially in five neighborhoods that accounted for about half of all reported basement sewage backups. Since implementation, 2,538 footing drains have been disconnected, including nearly all of the houses in three of the five areas. In the two other areas, between 55% and 60% of footing drains have been disconnected.

Cresson Slotten, engineer and unit manager in systems planning for the city of Ann Arbor.

In one of the remaining areas – the Glen Leven neighborhood – overland flooding during heavy rains in the spring of 2012 resulted in basement flooding in some houses that had been included in the disconnection program. The procedure includes the installation of a sump to collect water from the footing drains – which previously fed into the sanitary system – and a pump to move the water from the sump to the stormwater system.

Emphatic protest came from residents of that neighborhood, which has in recent weeks included rumblings of possible litigation. The litigation would be based on the legal theory that the city’s footing drain disconnection program has proceeded without valid contracts with homeowners, and that the installation of the wells and pumps constitutes an illegal “taking.” The city council decided on Sept. 17, 2012 to suspend temporarily the footing drain disconnection program.

It’s in that context that the city is now undertaking the study to be done by OHM – to determine if the footing drain disconnect program needs to continue and if so, where the efforts should be focused.

The scope of OHM’s work includes: (1) perform flow monitoring on the sanitary sewer in the five priority areas; (2) update, calibrate, and validate the existing sanitary sewer model; (3) evaluate the effectiveness of the current FDD program; (4) provide recommendations for reducing or eliminating wet weather flow impacts; and (5) do public engagement throughout the entire project, including a citizen advisory committee, a technical oversight committee, focus groups, and the general public.

Sanitary Sewer Flow Study: Council Deliberations

Cresson Slotten, an engineer and manager in the city’s systems planning unit, responded to questions about what the study would entail. The first part of the study, he explained, would include monitoring the sanitary system during heavy rains.

Margie Teall (Ward 4) drew out the fact that the city has also undertaken a study of the stormwater system – which is separate and distinct from the study of the sanitary sewer system. Teall encouraged members of the public to attend the public outreach meetings for the stormwater project.

Left to right: Ward 5 councilmembers Chuck Warpehoski and Mike Anglin.

Responding to a question from Marcia Higgins (Ward 4) city administrator Steve Powers indicated that the sanitary sewer project could be part of the council’s discussion of the capital improvements plan (CIP) at a working session on Feb. 11.

Mike Anglin (Ward 5) observed that when people live in a neighborhood, they expect that it’s not going to flood. He felt like the measurement study should have taken place earlier.

The Landsdowne neighborhood had paid for the fact that this study was only now taking place, he contended. Anglin asked Slotten why the city staff couldn’t undertake the study: Why did an outside contractor need to be hired? Slotten explained that the project is very intensive with respect to the equipment and staff resources.

A lot of human resources are required to gather all the data – to analyze and check for errors ,and to maintain the devices that are deployed out in the sanitary sewer system, Slotten said. The devices require a high level of expertise to operate, and a lot of expertise to take the data and analyze it with a computer model.

Slotten allowed that the city did have a computer modeler on staff – but his role is to maintain and utilize the existing model. The study is an effort to “advance” the city’s model of the system, to see how the system has evolved in the last 10 years – over the period when the footing drain disconnections have taken place. If the city’s one modeler were tasked with the study, it’d take a longer time and he wouldn’t be able to perform his usual duties.

Jane Lumm (Ward 2) concurred with Anglin, saying that for the homeowners who’d been impacted by it, this situation has been a nightmare. She allowed that $1 million is a lot of money, but said the city needs to do what it can to remedy the situation.

Outcome: The council unanimously approved the contract with OHM to conduct the study of flows in the sanitary sewer system.

Tech Agreements

Two technology agreements were before the Ann Arbor city council for consideration – a three-way agreement with the Ann Arbor Transportation Authority and Washtenaw County, and another two-party contract with the city of Chelsea. Both agreements existed previously.

The three-way accord had been approved by the council on May 2, 2011. This interagency agreement for collaborative technology and services (IACTS) is meant to provide a way to procure and maintain common technology platforms and services centrally.

The modification to the agreement, approved by the city council on Feb. 4, allows for adding other entities into the agreement in a more streamlined way, by “giving each founding member the ability to approve a process to enable an administrative individual to sign on behalf of that founding member for purposes of this adding new participants.” Other members could thus be added without modifying the agreement itself. With the amendment, Ann Arbor’s process for adding a new participant would include simply the approval of the city administrator on recommendation of the IT director and chief financial officer.

According to city of Ann Arbor IT director Dan Rainey, responding to an emailed query, one of the entities interested in participating in the IACTS is the Washtenaw Intermediate School District (WISD).

In May 2011 – when the Ann Arbor city council approved the IACTS with AATA and Washtenaw County – the council was also asked to consider the approval of an agreement with Washtenaw County for data storage services and for backup services. At the May 2011 council meeting, Rainey explained the nature of the shared storage and shared backup – there will be one machine at city hall and one at the city’s Wheeler Center.

The topic of backup and disaster data recovery issues was identified as one area of minor concern in the city’s most recent audit in late 2012. In chief financial officer Tom Crawford’s response to the auditor’s note on that topic, he outlines how the city uses a “separation of risks” approach and has always been able to backup and recover data in individual computing environments. Crawford’s written response also describes the city’s current work to improve its disaster recovery plan in terms of the IACTS: “Because of the nature of our interdependences, the information technology departments of the city of Ann Arbor, Washtenaw County and the AATA are collaborating on developing a common disaster recovery plan. The current state of the plan is that all parties know what is being backed up, where it is stored and that there is the ability to recover backed up data on a small number of servers.” [.pdf of revised auditor's letter] [.pdf of Crawford's Jan. 24, 2013 response]

Responding to an emailed query, Washtenaw County IT manager Andy Brush explained that certain IT services are already provided by Washtenaw County to various entities – like the city of Ypsilanti, Dexter’s fire department, and the 14B District Court – although they aren’t yet parties to the IACTS agreement.

The agreement between Ann Arbor and the city of Chelsea, which the council also considered on Feb. 4, dates back to 2011. Under the agreement, the city of Chelsea will pay the city of Ann Arbor up to $55,614 for the following services: helpdesk, management of the city’s website, server hosting, data backup and recovery, overseeing IT contractors, project management, and representing the city of Chelsea in regional technology efforts and meetings.

Tech Agreements: Council Deliberations

Jane Lumm (Ward 2) said she supported the concept of intergovernmental cooperation, and was supportive of this specific resolution. It’s nice to see other agencies joining in partnership with the city of Ann Arbor, so she ventured that the city’s approach to IT must be working.

But she noted that one of the aspects of the arrangement is that it’s a procurement cooperative. She wanted to know what other procurement cooperatives the city was part of, how the city decided to use them and when. She asked Dan Rainey, head of IT for the city, how can adding new members benefit the city?

Rainey explained that in the past there were occasionally opportunities to collaborate between the city and the county. The two entities would generate contracts and they’d done that one, two, three times. They’d then decided to come up with a platform to handle things in a more streamlined way. The benefit to the city is that the city’s expenses have been offset by investments the county has already made. In the other direction, other entitles have benefited from the investment the city has made in its data center. The council was being asked to consider a revision to the agreement that evening, because the existing partners are trying to get other entities to participate in the mindset of sharing. The idea is to not make other organizations feel like they’re being bullied into joining. They can join of their own accord, Rainey said.

Outcome: The agreement with Chelsea was on the consent agenda, which was approved unanimously. Separately, the council also unanimously approved the revision to the IACTS agreement.

Bonds for Clean Energy (PACE)

The Ann Arbor city council was asked to approve a step that would help owners of commercial property make improvements designed to help save energy under the city’s property assessed clean energy (PACE) program.

That step was to authorize the issuance and sale of up to $1 million in bonds in support of energy improvements to be undertaken by five property owners. In broad strokes, the PACE program is enabled by state legislation – the Property Assessed Clean Energy Act 270 of 2010. Property owners take out loans to make energy improvements to be repaid through regular installments as part of their taxes. Municipalities like the city of Ann Arbor administer the program. More than a year ago, on Jan. 9, 2012, the city council set the fees for participation in the program. Prior to that, on March 7, 2011, the city set up a loan loss fund with about $430,000 granted by the U.S. Department of Energy.

Properties for which owners have applied for improvements under Ann Arbor’s PACE program include: (1) Arrowwood (2566 Arrowwood Trail) for new HVAC equipment, insulation, occupancy sensors and lighting upgrade for the clubhouse; exterior lighting upgrade to LED; and solar shingles on one apartment building; (2) Big Boy (3611 Plymouth Road) for HVAC upgrade, lighting upgrade, cooking equipment replacement with energy efficient equipment, and controls; (3) Bivouac (330-336 S. State) for interior lighting upgrade; (4) Goodyear Building (118-124 S. Main) for HVAC replacement (boilers and A/C units), and lighting upgrade; and (5) Kerrytown Market & Shoppes (403 N. Fifth Ave.) for lighting upgrades in tenant areas and common areas.

Bonds for Clean Energy (PACE): Council Deliberations

The item was not added to the agenda until the day of the council meeting. Marcia Higgins (Ward 4) said she wanted to postpone the item, in light of the many questions she’d heard about the program. She reported that the city’s chief financial officer, Tom Crawford, had indicated that a two-week postponement wouldn’t present a problem.

Mayor John Hieftje, who’d co-sponsored the addition of the agenda item, said he didn’t know why it had been added late to the agenda. He said he thought it was to be added to the agenda that’s publicized on the Wednesday before the following Monday’s council meeting.

Hieftje said he had been working on the PACE program for years and would be “joyful” when it finally was implemented.

Outcome: The council voted unanimously to postpone the issuance of the PACE bonds.

Reports, Written Communications

Every council agenda includes a raft of written reports and communications. Here are two highlights from the Feb. 4 agenda.

Reports: Revised Auditor’s Note

A revised auditor’s letter to the city of Ann Arbor was attached to the city council’s Feb. 4, 2013 agenda, and has been formally received by the council as a written communication from the city administrator.

The original version of the letter had indicated three instances of an employee with a vehicle allowance also being reimbursed for mileage, and characterized those reimbursements as a “violation of city policy.” It was subsequently revealed that it was the mileage reimbursements of city attorney Stephen Postema that had caused the auditor to flag the issue.

But after further review – pushed by Postema and chief financial officer Tom Crawford – auditor Mark Kettner agreed that there was no written policy per se that disallowed the dual claims. Kettner is a principal at Rehmann, the city’s auditor, which is in the first year of a five-year contract.

But Kettner also noted that his original conclusion of inappropriateness was based on his view that the dual claims would be “illogical,” whether a policy existed or not. Kettner also indicated in reaching his conclusion of inappropriateness that he had not reviewed Postema’s employment contract, which Postema and Crawford contend would have permitted Postema to claim mileage reimbursements in addition to the vehicle allowance.

Postema’s contract was altered last year, chronologically after the contested mileage reimbursements, so that his vehicle allowance was eliminated.

The new wording of Kettner’s letter omits the characterization of the mileage claims as a “violation” but still calls attention to the issue, and adds language to highlight the problematic character of the reimbursements – that “… in each instance the expense report was not subject to independent review and approval.”

Postema’s contract stipulates that his reimbursements for travel are to be made according to standard city procedures. And one new procedure recommended by Crawford in his written response to the auditor’s report would address the lack of independent review. The recommendation is to require that reimbursements claimed by the city attorney or the city administrator – who are the city council’s two direct reports – be approved by the chair of the council’s administration committee.

[.pdf of original letter] [.pdf of revised letter] [.pdf of Crawford's Jan. 24, 2013 response]

Reports: 2012 Street Millage

The city of Ann Arbor’s street millage expenditure report for the 2012 construction season indicates that approximately 25 lane miles on 36 different streets were resurfaced or reconstructed this past season. Total construction cost was about $8.2 million, allocated between major streets (one-third) and local streets (two-thirds).

The street repair millage, renewed by voters in 2011, is levied at a rate of 2 mills, which generates about $9 million annually. The street millage expenditure report was attached to the city council’s Feb. 4, 2013 meeting agenda as a communication.

According to city project manager Nick Hutchinson, responding to an emailed query, the miles of streets resurfaced as reported in the city’s comprehensive annual financial report (CAFR) is a different measure – in two ways – from the lane miles reported in the 2012 millage report. First, the CAFR statistic (which has typically ranged between 4 and 7 miles over the last six years) reflects simply the length of the roadway. Second, the CAFR statistic is based on fiscal years (starting on July 1), whereas the millage report is a based on the activity in a calendar year.

Also approved by voters in 2011 was a new 1/8 mill sidewalk repair millage, which generated roughly $500,000 in revenues. According to the city’s report, about $561,000 worth of work was done under the sidewalk repair program, which included replacement of 1,475 slabs of sidewalk and the trimming of an additional 6,380 slabs.

Work also completed that was funded by the street millage program – not the sidewalk millage – were sidewalk ramps on 395 street corners, which are on a list to be replaced under a consent decree. The consent decree requires curb ramps to be installed on all street corners where the city resurfaced or reconstructed streets between 1992 and 2004. The Americans with Disabilities Act was enacted in 1990. [.pdf of street millage report] [.pdf of map showing streets resurfaced in 2012]

Communications and Comment

Every city council agenda contains multiple slots for city councilmembers and the city administrator to give updates or make announcements about important issues that are coming before the city council. And every meeting typically includes public commentary on subjects not necessarily on the agenda.

Comm/Comm: Downtown Parcels – Library Lot, Y Lot

During public commentary, Alan Haber ventured that the council had heard from the “fringe” pressing on issues with thoughts that the council didn’t particularly want to hear – concerns about the homeless and about Palestine and about an energy farm.

Haber referred to a written statement he’d circulated to councilmembers about the interim use of the top of the Library Lane underground parking garage. [.pdf of Haber's message to the council.] Haber’s remarks came in the context of a presentation by the Ann Arbor Downtown Development Authority to the city council on Jan. 14 about the Connecting William Street project. The presentation had included the DDA’s recommendations for the future use of five city-owned downtown parcels, which includes the top of the new Library Lane underground parking garage.

Haber called for allowing people to begin to have activities on top of the structure. If it were allowed to be open, he told councilmembers they’d be surprised by the creativity that Ann Arbor shows. He told them that Ann Arbor really needs a place for the community to come together, and asked councilmembers to take a look at his ideas – including a temporary skating rink with artificial ice.

Two days later, at the Feb. 6, 2013 meeting of the DDA board, Haber reprised his comments.

By way of additional background, at its Dec. 19, 2012 meeting, the DDA’s operations committee was provided with a draft of ideas for a policy on special events at the Library Lane mid-block cut-through and the top of the Library Lane parking garage.

The preamble to the draft includes the expectation that the site would eventually include a building with public open space, but indicates support in the interim for the kind of activity that Haber called for:

The structural component of the underground Library Lane structure was designed to anticipate the construction of a future building and a future public open space area. In the meanwhile, until such time as these elements are designed and constructed, the DDA is supportive of community groups using the Library Lane surface parking lot and the adjoining Library Lane for events, public gatherings and meetings.

In the draft, the main bureaucratic requirement is approval by the city of Ann Arbor for a special events permit, which currently costs $34.

During his communications time at the Feb. 4 council meeting, Stephen Kunselman (Ward 3) addressed a second parcel that’s part of the Connecting William Street project – the former Y lot at Fifth and William streets. Kunselman contended that it was pretty clear that “the DDA missed the boat on what to do with the Y lot.” Kunselman said the city needed to get that parcel listed for sale, so he’d be bringing forward a resolution directing the city administrator to solicit a real estate broker so that the Y lot can be offered for sale before the balloon mortgage payment on the property comes due at the end of this year. [The site is known as the Y lot because it was the former location of the YMCA. The property was sold to the city when the Y moved to its current location at 400 W. Washington.]

Comm/Comm: Budget Sessions

During communications time, Marcia Higgins (Ward 4) reported that the council’s budget committee had met and has mapped out the next few council work sessions.

City administrator Steve Powers and Marcia Higgins (Ward 4).

The Feb. 11 session will consist of two 2-hour sessions, starting at 6 p.m. The first session will cover affordable housing and the 15th District Court. The second session will cover the city’s capital improvements plan (CIP).

By way of additional background on pending proposed changes to the Ann Arbor housing commission’s housing stock, see: “Housing Commission Selects Co-Developer.”

For additional background on the 15th District Court, including an explanation of its responsibilities and funding sources, see coverage from the budget planning session two years ago: “Ann Arbor 2012 Budget: 15th District Court.”

For additional background on the status of the CIP as a planning document and the recent history of inclusion in the CIP of a proposed runway extension at the city’s municipal airport, see “Ann Arbor Budget Process Starts Up.” According to Craig Hupy, public services area administrator with the city, the fact that the runway extension is listed in the CIP for 2014 – with $2.135 million of funding – means that all other things being equal, $2.135 million will be spent on the runway extension in 2014 (i.e., it will be done in 2014), provided that funding is available. One factor that could change that would be for the city council to exercise its budgetary control and not to fund the project.

On Feb. 25, the work session will cover the specific budget impacts to individual service units and the council’s five key priority areas. The top three priority areas are: (1) city budget and fiscal discipline; (2) public safety; and (3) infrastructure. Two additional areas are: (4) economic development; and (5) affordable housing.

On March 11, Higgins continued, the council would talk about conflicting issues and would have a much larger discussion. That will give the city administrator time to finalize the budget. [Under the city charter, the city administrator must submit the budget for the next fiscal year, which begins on July 1, at the second regular council meeting in April. The council then must amend and adopt any changes by its second meeting in May.]

Higgins noted that the night of March 25 would be reserved for a possible additional working session, but she recognized that it’s the first night of Passover. She observed that no votes would be taken.

Comm/Comm: Ann Arbor Downtown Development Authority

During communications time, Stephen Kunselman (Ward 3) noted that for the previous meeting’s agenda, the council had received the Ann Arbor Downtown Development Authority’s annual report. [.pdf of FY 2012 DDA annual report]

That had reminded him that in August of 2011, he’d indicated to his colleagues that he’d wanted to make some amendments to the city ordinance establishing the DDA.

[That was on Aug. 4, 2011, two days after Kunselman won the Democratic primary election, on a campaign that was partly based on criticism of the DDA. That primary was a three-way race that included Marwan Issa and Ingrid Ault. Ault was subsequently appointed to the city's park advisory commission. The current chair of the city's park advisory commission, Julie Grand, could provide some competition for Kunselman in his re-election bid for 2013 – as she is now mulling a possible candidacy. Kunselman took out petitions on Nov. 3 to run for re-election to council for Ward 3.]

On Feb. 4, Kunselman highlighted the $2.1 million in the 2012 annual report from the DDA that was labeled “administration.” To have $2.1 million going toward administration seemed “a little outlandish,” Kunselman maintained.

By way of background, the line item labeled “administration” in the DDA’s annual report does not correspond just to those items typically associated with administrative overhead, like staff salaries and benefits. The amount includes, for example, about $0.5 million as a grant to the city for the police/courts building, as well as the subsidy of bus rides taken with the getDowntown’s go!pass. Responding to a request from The Chronicle, DDA executive director Susan Pollay provided the following breakdown of that amount:

Staff, office, professional services    $1,018,259
Grant to the city for the Municipal Ctr   $508,608
Other TIF grants and projects             $110,267
Grant for go!passes, other alt programs   $467,392
Total                                   $2,104,526

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Among the revisions to the DDA ordinance Kunselman described were changes to DDA governance, which would include term limits on board members, a prohibition against elected officials serving on the board, a requirement that any TIF (tax increment finance) expenditures outside the DDA district boundaries need the council’s approval, and a stipulation that TIF “rebates” for projects require city council approval.

Councilmembers Sumi Kailasapathy (Ward 1) and Stephen Kunselman (Ward 3).

But more significantly, Kunselman is proposing to change the way that the tax increment finance (TIF) capture by the DDA is calculated. The change to the way that TIF is calculated would be based on a different interpretation of the existing language in the ordinance, but would result in roughly $600,000 a year less in TIF capture by the DDA. It’s the same proposal Kunselman made on May 21, 2012 – as a proposed amendment to the city budget last year. On that occasion, his proposal received just three votes on the 11-member council; however, the current composition of the council includes three new councilmembers. For additional Chronicle reporting of the TIF calculations, see: “Column: TIF Capture Is a Varsity Sport.”

Kunselman’s view on the correct interpretation of the TIF calculation is one that was shared at least at one time by the Ann Arbor city attorney’s office. An apparently overlooked clause of the city’s ordinance on DDA TIF capture led the DDA board nearly two years ago, on May 2, 2011, to delay a vote on the new contract between the city and the DDA, under which the DDA administers the city’s public parking system. The Ann Arbor District Library, whose taxes in the district are subject to the DDA’s TIF, has also questioned the correct interpretation of the ordinance.

Kunselman concluded his Feb. 4 remarks on the DDA by saying that the ordinance needs some teeth to “rein in” the DDA board and the amount of TIF that is captured.

Comm/Comm: Taxicab Sexual Assault, “Rogue Limos”

During communications time, Stephen Kunselman (Ward 3) noted that he was chair of the city’s taxicab board and also the parent of two teenage daughters. He’d recently received a crime alert through the University of Michigan, reporting a sexual assault of a young woman, in either a limo or a taxi. Kunselman said the incident raises the issue that the taxicab board has been grappling with – the issue of “rogue limos.” He was describing limos that “impersonate taxis” with their marking and top lights, and pick up passengers as taxicabs do, but are not licensed as taxicabs under the city’s ordinance.

The city council had amended the taxicab ordinance [on Nov. 10, 2011] so that tickets could be written for limos that “impersonate” taxicabs by using top lights. If they’re not licensed, Kunselman said, the city doesn’t know who those drivers are. Kunselman thought it’s time the city do something about it. As chair of the taxicab board, he would ask for a monthly report of enforcement activities – how many limos are pulled over and how many have been ticketed. Kunselman identified two companies as having “rogue limos” – Yellow Car and Green Cab.

Responding to a question from mayor John Hieftje, Kunselman said there’s a state law that the city is trying to get strengthened and that he’d forwarded the crime alert to the city’s lobbyist, Kirk Profit. But Kunselman said he wasn’t sure it’s not possible to take action under existing laws and ordinances. At the most recent meeting of the city’s taxicab board, which took place before the reported sexual assault, the issue of limos impersonating taxis also arose.

Comm/Comm: Coleman Jewett, Public Art

During his communications time, mayor John Hieftje mentioned the memorial service for Coleman Jewett held the previous Saturday. Hieftje noted that Jewett had been a member of the Pioneer High School championship basketball team in the early 1950s. Hieftje passed along a suggestion that a bronze Adirondack chair be placed at the city farmers market as a remembrance to Jewett, who had sold Adirondack chairs and other furniture there for many years. Hieftje indicated that he hoped the public art commission would follow up on the idea.

Comm/Comm: Ending Homelessness, Cold Weather

Thomas Partridge introduced himself as a resident of Ann Arbor and a recent candidate for the state senate and house. He was there on a frigid night to urge the mayor and the city council to show immediate concern for the homeless in Washtenaw County. He expressed concern for people who show up on local news programs as causalities, hospitalized with frostbite or in the morgue frozen to death. He called on the council to empower the disenfranchised, and to give voice to continued union representation in contracts. He called on the city council immediately to end homelessness in Ann Arbor, Washtenaw County and Michigan. The Ann Arbor police department, fire department, Washtenaw County sheriff’s office and other organizations should be out looking for people who need shelter. He called for affordable transportation. Partridge observed that Feb. 4, 2013 was the 100th anniversary of the birthday of the most famous public transit rider in history – Rosa Parks.

During his communications time, mayor John Hieftje cited a report he’d received from Ellen Schulmeister, executive director of the Shelter Association of Washtenaw County, saying that no one has been turned away from the shelter system this winter. There’s outreach going on, done by a group that goes out and looks for people who might need shelter. But Hieftje said that some people won’t come in.

Comm/Comm: Energy Farm

Kermit Schlansker described again his concept of an energy farm as a showplace where many people could come together to work out ideas that would support a comfortable, sustainable society that could last 1,000 years. Beyond a multipurpose building, one of the first projects would be to construct a bunk house where people could stay while they are working on projects. The ultimate goal of the farm would be the construction of an energy efficient apartment building that could last 1,000 years, he said.

Comm/Comm: Israel, Palestine

Three people spoke on the issue of Israel and Palestine during public commentary at the council’s Feb. 4 meeting.

Henry Herskovitz told the council that Jewish Witnesses for Peace and Friends, a group he’s a part of, has been holding peaceful vigils for over nine years outside the Beth Israel congregation. The group is known for raising the issue of Palestinian sovereignty and what he described as Israeli war crimes. When a member of the city council lashes out with false accusations, he continued, he felt the need to “play a little defense.” He alluded to an Ann Arbor Chronicle article that reported comments from Chuck Warpehoski (Ward 5). From that report of the city council’s Jan. 7, 2013 meeting:

In Ann Arbor, Warpehoski said, we like to assume we’ve got everything all worked out, but when a Muslim woman driving home from her job at the university hospital had a gun pulled on her and was told to “go home,” that indicates that there’s work yet to be done. Another example he gave was the idea of putting a swastika over the Star of David, or circulating literature saying that Jewish religious observances turn boys and girls into “monsters.”

Herskovitz said that a website dedicated to ending his group’s demonstrations did not show any photographs of a swastika over a Star of David, and that if such a photograph existed, he was sure that it would be posted on that website.

Herskovitz then characterized the claim about religious observances turning boys and girls into monsters was out of context. Herskovitz indicated that the context should include Ovadia Yosef’s remarks as quoted in the Jerusalem Post: “Goyim were born only to serve us. Without that, they have no place in the world – only to serve the People of Israel.” Herskovitz noted that Yosef is former Sephardi Chief Rabbi of Israel and spiritual leader of the Shas political party in Israel.

Herskovitz pointed to another work by an Israeli rabbi, Yitzhak Shapira, who wrote “The Complete Guide to Killing Non-Jews.” Herskovitz quoted another former chief rabbi, Mordechai Eliyahu: “It is important to make one thing clear – the life of one yeshiva boy is worth more than the lives of 1,000 Arabs.”

Herskovitz concluded that those quotations were “monstrous” and ventured that those who’d said those words were probably indoctrinated into an ideology that makes such statements possible – likely at an early age. Herskovitz contended that Beth Israel rabbi Robert Dobrusin takes Jewish children on tours of Israel and poses them with armed soldiers. Dobrusin indoctrinates children into a Zionist ideology, Herskovitz contended.

[Based on the Anti-Defamation League's frequent condemnation of various remarks by Yosef (including those cited by Herskovitz), Shapira's book and remarks by Eliyahu, the views expressed by the men could fairly be considered to be inconsistent with the mainstream.]

Blaine Coleman began his remarks by saying that Warpehoski had made a promise not to vote for any resolution that criticized Israel – at a time when Israel is, Coleman contended, massacring Palestinians. Coleman described that as a “monstrous” promise to make, and hoped that Warpehoski would retract that promise. Coleman hoped that Warpehoski would support a resolution to boycott Israel, to divest from Israel or at least divest from companies that supply arms to the Israeli military. Coleman pointed out that Warpehoski’s own organization, the Interfaith Council for Peace and Justice, had approved a resolution to divest from Israel’s military, and he said that it’s Warpehoski’s responsibility to support that resolution as a city councilmember. Coleman described Israel as a “monstrously racist state” that could be compared to the racist ideology of Nazism.

Coleman showed the council a map of Palestine, which existed before Israel was established. One day, Coleman said, the Palestinian people would be free again to walk “in every inch of their land as free people.” That could only happen if “the racist state of Israel” were abolished, he said, in the same way that racist South Africa was abolished.

Coleman called on Warpehoski to lead the way by retracting his promise not to support a resolution critical of Israel. He closed by asking to whom Warpehoski had made the promise, and if someone had asked him to make such a promise.

Mozhgan Savabieasfahani called Israel a “racist state” and contended it could be compared to a Nazi state. What Israel is doing to the people of Palestine, she said, is nothing less than what Nazis did to Jews. She contended that people were being kicked out of their homes in East Jerusalem by the Israeli military, with the full support of the U.S. She said the U.S. contributes $5 billion a year to Israel so that Israel can kick “regular people” out of their homes. Addressing the several high school students who were attending the city council meeting as part of a class assignment, Savabieasfahani told them that thousands of Palestinians their age were in jail without any charges being pressed against them.

Among the councilmembers, one had said he’d be in favor of cutting funding to the “racist, Nazi state of Israel,” Savabieasfahani continued – Chuck Warpehoski. That’s to his credit, she said. Now she wanted to see him push forward and act on that, given that he now has a position where he can do that. Nothing has changed, since Warpehoski made that statement. She concluded with a call for a boycott of Israel.

During council communications time, Sabra Briere (Ward 1) responded to the commentary about Warpehoski. She said that in the five years she’s served on the council, one councilmember or another has been singled out for “less than positive feedback” during public commentary – something that always makes her “squirm.”

Left to right: Ward 1 councilmembers Sumi Kailasapathy and Sabra Briere.

She was told when she ran for the city council that no matter how liberal she might be as a person, to please try hard not to bring resolutions to the council that have nothing to do with local government. When she brought a resolution to the council about immigration reform, she heard from a lot of people who felt that was really none of the council’s business. She has brought other items like that in the last five years, because she thinks that they’re important when they have a “local connection.” But at the same time, she allowed that there were a lot of people in the community who think the council should be “focused on the business of doing business in Ann Arbor.”

Briere thanked Warpehoski for recognizing that there’s no city investment in Israel, and that there’s no money the city is sending to Israel. She thanked him for recognizing that without some kind of local connection – unlike the boycott of South Africa over apartheid – there is no “local hook.” The city’s ability to influence federal spending decisions is very limited, Briere contended. She said she had wanted to say something, because she’d been on the receiving end of occasional “interesting communication” with members of the public. [.pdf of city council resolution rescinding South Africa boycott]

Present: Jane Lumm, Mike Anglin, Margie Teall, Sabra Briere, Sumi Kailasapathy, Sally Petersen, Stephen Kunselman, Marcia Higgins, John Hieftje, Christopher Taylor, Chuck Warpehoski.

Next council meeting: Tuesday, Feb. 19, 2013 at 7 p.m. in the second-floor council chambers at city hall, 301 E. Huron. The meeting date is pushed back a day to accommodate the Presidents Day holiday on Feb. 18. [Check Chronicle event listings to confirm date]

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