Ford will depart the AAATA in mid-October to take the post as the first CEO of the southeast Michigan Regional Transit Authority (RTA). Ford formally tendered his resignation on Aug. 21, 2014.

The resolution approved by the board at its Aug. 21 meeting also approves $50,000 for consulting services to help with the search. At the Aug. 21 meeting, Griffith said the committee will consist of himself, Anya Dale, Gillian Ream Gainsley and Eric Mahler. Griffith said he hoped that a search could be completed within three months, but allowed that might not be achievable. He said he hoped an RFP (request for proposals) for a search firm could be sent out the next day. He felt that the search firm could help the board establish realistic expectations about a timeframe for a new hire.

Ford was picked for the job as CEO of the Regional Transit Authority three months ago, on May 21, 2014. The RTA board approved Ford’s contract on Aug. 20, 2014. Ford’s announcement as a finalist and his selection for the RTA job came amid the AAATA’s successful campaign for a new millage to fund additional transportation services in the geographic area of the member jurisdictions of the AAATA – the city of Ann Arbor, the city of Ypsilanti and Ypsilanti Township. That millage was approved by voters on May 6, 2014.

The four-county area of the RTA includes the counties of Washtenaw, Wayne, Macomb and Oakland as well as the city of Detroit. It was established by the Michigan legislature in late 2012.

The RTA’s hiring of a CEO has been frustrated by a lack of state funding. John Hertel, general manager of SMART (Suburban Mobility Authority for Regional Transportation), was appointed CEO by the RTA board last year, but he eventually left the post in early 2014 over issues of funding availability.

Ford was hired by the AAATA in 2009. He began the Aug. 21 meeting by thanking the board, his executive staff, the AAATA operators and mechanics, and the staff of the entire organization.

This brief was filed from the AAATA headquarters building at 2700 S. Industrial Highway, where the board held its Aug. 21 meeting – due to the closure of its regular meeting location at the downtown Ann Arbor District Library. The library building was closed to due to the repair of the public elevator.

The context of the salary increase includes Ford’s selection as the new CEO for the southeast Michigan Regional Transit Authority, but it’s not clear at this point whether Ford will take the job. At the June 10 meeting Ford said, “Right now, I’m still the CEO here…”

The increase for the period from October 2012 through September 2013 raised Ford’s base salary from $164,800 to $169,744. The 3% increase on that amount through the current fiscal year brings his salary to $174,836. The board’s June 10 action authorized a lump sum payment to cover the retroactive raises up to the present time, as well as a $20,000 payment into Ford’s 457 deferred compensation plan account, which reflects payments of $10,000 cash for the fiscal year 2013 and 2014. The lump sum retroactive salary adjustment works out to a little less than $11,900.

Before this most recent increase, Ford’s most recent previous revision to his compensation had come at the board’s Dec. 15, 2011 meeting, when his salary was increased by $4,800 to $164,800 annually. Ford’s contract also includes a car allowance that translates to roughly $10,000 a year. [.pdf of June 10, 2014 compensation letter][.pdf of Ford's contract]

This current raise was awarded to Ford based on a performance evaluation the board had completed at its May 15, 2014 board meeting, which came 11 days after a successful transit millage proposal on May 6, 2014. That performance evaluation also came in the context of Ford’s application for the CEO position with the southeast Michigan Regional Transit Authority. The day after his evaluation, Ford was named as one of three finalists for the RTA job, and was subsequently made an offer of the job, which is still pending. The RTA was established by the state legislature in late 2012, and includes Detroit and the four-county region of Washtenaw, Wayne, Macomb and Oakland.

Commenting on his current status at the AAATA board’s June 10 meeting, Ford said: “Right now I am still the CEO here and I’m not having any other discussions at this point with the RTA and that’s my status. I’ll leave it at that.” Board chair Charles Griffith added that Ford has not ruled out the RTA job, saying that the AAATA board would obviously prefer that Ford stay at the AAATA. But if Ford chose to go elsewhere, the board would support that decision. Ford had also assured Griffith that the AAATA would be in good hands and would have a stable transition if Ford were to leave.

Ford’s evaluation was expressed in the form of a board resolution approved on May 15:

Whereas the AAATA board’s evaluation of CEO Michael Ford’s performance reflects his leadership, work ethic, and ability to motivate staff to work at a high level of public service during a challenging period of transitioning the AAATA;

Whereas Michael’s outreach to community leaders in Ann Arbor and surrounding communities has laid the foundation for the expansion of the authority to include Ypsilanti and Ypsilanti Township and for the newly expanded organization to do an improved job of providing high-quality transit services;

Whereas Michael has led the organization to a number of significant accomplishments during the previous and current fiscal years, including: continued growth in overall ridership; growth in the vanpool program; growth in AirRide ridership and a decrease in the cost of the service; a new collective bargaining agreement ratified by the members of the TW Local 171 and approved by our Board of Directors; launch of a new AAATA website with improved rider information, navigation and tools; construction of a new Blake Transit Center; development of a new five-year urban core transportation improvement plan and a successful millage proposal;

Therefore be it resolved that the AAATA Board of Directors recognizes Michael Ford’s performance and accomplishments and desires to continue his employment as CEO, and the board looks forward to working with Michael on a new contract to continue his employment and also working with him to improve transit services in our community. Our intent is to complete this contract the time of our next meeting.

This brief was filed from the Holiday Inn Express at 600 Briarwood Circle, where the board held its special meeting.

AAATA CEO Michael Ford spoke with Carolyn Grawi, Ann Arbor Center for Independent Living director for advocacy and education, after the May 15, 2014 meeting of the AAATA board.

The four-county area of the RTA includes the counties of Washtenaw, Wayne, Macomb and Oakland as well as the city of Detroit. It was established by the Michigan legislature in late 2012.

The RTA’s hiring of a CEO has been frustrated by a lack of state funding. John Hertel, general manager of SMART (Suburban Mobility Authority for Regional Transportation), was appointed CEO by the RTA board last year, but he eventually left the post in early 2014 because no funding was available for his salary.

Crain’s Detroit Business reported the Friday, May 16 vote by the RTA’s executive and policy committee to recommend Ford as well as two other finalists for the job.

The two other finalists are:

• Albert Martin, former director of the Detroit Dept. of Transportation and the Southeast Michigan Transportation Authority (the forerunner to SMART) bus systems, and a former deputy commissioner of the Connecticut Dept. of Transportation.
• Brian Marshall, a transit consultant and former CEO of the Capital Area Transit System in Baton Rouge, La., who also spent 20 years with the Chicago Transit Authority.

Crain’s reports that the three candidates will be interviewed by the whole RTA board starting at noon on Wednesday, May 21. The interviews will be open to the public and held at the Southeast Michigan Council of Governments (SEMCOG) office at 1001 Woodward in Detroit. Washtenaw County’s two representatives on the RTA board are Liz Gerber, a University of Michigan professor of public policy, and former state legislator Alma Wheeler Smith.

In 2016, the RTA will likely be asking voters in the four-county area for approval of a property tax or a vehicle registration fee to support regional transportation services.

Ford’s selection as a finalist comes a little over a week after voters in Ann Arbor, Ypsilanti and Ypsilanti Township passed a new 0.7 mill tax for the AAATA with clear majority support.

His selection also comes the day after the AAATA board held a closed session to conduct his regular performance review, as part of the May 15 board meeting. The review should have been completed around the start of the fiscal year in October or November of 2013. Ford was invited into the closed session for roughly the final 20 minutes of the session. When the board emerged from its closed session, which lasted about an hour and ten minutes, AAATA board chair Charles Griffith apologized to Ford for the delay in conducting his performance evaluation.

After its closed session, the board also approved a resolution with a glowing performance evaluation of Ford, indicating that the board wanted Ford to continue as CEO and that it hoped to have a new contract in place by the board’s next regular monthly meeting.

Whereas the AAATA board’s evaluation of CEO Michael Ford’s performance reflects his leadership, work ethic, and ability to motivate staff to work at a high level of public service during a challenging period of transitioning the AAATA;

Whereas Michael’s outreach to community leaders in Ann Arbor and surrounding communities has laid the foundation for the expansion of the authority to include Ypsilanti and Ypsilanti Township and for the newly expanded organization to do an improved job of providing high-quality transit services;

Whereas Michael has led the organization to a number of significant accomplishments during the previous and current fiscal years, including: continued growth in overall ridership; growth in the vanpool program; growth in AirRide ridership and a decrease in the cost of the service; a new collective bargaining agreement ratified by the members of the TW Local 171 and approved by our Board of Directors; launch of a new AAATA website with improved rider information, navigation and tools; construction of a new Blake Transit Center; development of a new five-year urban core transportation improvement plan and a successful millage proposal;

Therefore be it resolved that the AAATA Board of Directors recognizes Michael Ford’s performance and accomplishments and desires to continue his employment as CEO, and the board looks forward to working with Michael on a new contract to continue his employment and also working with him to improve transit services in our community. Our intent is to complete this contract the time of our next meeting.

Reached by telephone on Friday afternoon, Ford told The Chronicle he’d just been notified of his selection as a finalist for the RTA job five minutes earlier. Responding to a question from The Chronicle, he said he’d apprised the board of his application for the RTA job and that was part of the closed session discussion. He stressed that he did not have the RTA job, that he enjoyed the work he was doing with the AAATA, and was very happy about what the AAATA had been able to accomplish. He noted that July 2014 will mark five years for him with the AAATA.

Before Ford was hired in 2009, one concern that some board members had was that his interview answers weren’t crisp. Asked by The Chronicle if he’d tried to become more “crisp” in the course of his time at the AAATA, Ford responded: “You have to be true to yourself,” adding that he felt there were times when being more direct was appropriate and that each situation needs to be navigated based on the particular setting.

Ford’s current contract with the AAATA calls for $160,000 in annual salary and a vehicle allowance that works out to just over $10,000 a year. [.pdf of Ford's employment contract] [Ford was awarded a raise subsequent to that contract at the board's Dec. 15, 2011 meeting, bringing his annual salary to $164,800.]

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Jim Casha shows Mary Jo Callan, director of Washtenaw County’s office of community & economic development, a map of the Michigan state fairgrounds. Casha is advocating for the southeast Michigan regional transit authority to develop the site as a regional transit hub. (Photos by the writer.)

However, in the previous week, a jury had awarded nearly $1.2 million to a former Washtenaw County employee, Ali Aboubaker, who had filed a discrimination lawsuit against the county in 2011. Responding to a query after the March 5 meeting, corporation counsel Curtis Hedger told The Chronicle that the county would be evaluating its options for appeal. The administration would also be meeting with the county’s insurance carrier to discuss the situation.

In other action, the board gave initial approval to hire a contract position that would support budget-related work for the board and administration. The item had been originally considered, but postponed, at the Feb. 5, 2014 meeting. The vote on March 5 was 7-1, over dissent from Dan Smith (R-District 2). Rolland Sizemore Jr. (D-District 5) was absent.

Commissioners also voted to accept a grant from the Michigan Council of Arts and Cultural Affairs for the Youth Arts Alliance (YAA). Washtenaw County is the fiduciary for this five-county collaborative, which provides creative arts workshops to youth in the juvenile justice system. The county also provides office space for YAA.

The grant will pay local artists to install public art at each of the five county juvenile facilities, made with help from the youth at those facilities. The youth will also work with local musicians to create an original album. The alliance’s director, Heather Wilson, told commissioners: “We are seeing huge transformations with the kids experiencing creative arts as an outlet.”

During his communications to the board, chair Yousef Rabhi (D-District 8) laid out the application process to fill the seat on the Washtenaw County road commission board left vacant by the recent death of long-time road commissioner Fred Veigel. The deadline for submitting applications is Sunday, March 16. Rabhi hopes to make a nomination at the board’s March 19 meeting. The appointment would be to fill the remainder of Veigel’s term, through Dec. 31, 2014. During the March 5 meeting, commissioners passed resolutions honoring Veigel as well as local activist Lois Mayfield, who died on Feb. 21.

Commissioners also scheduled a public hearing to give input for the Washtenaw Urban County 2014-15 action plan. The hearing will be held at the county boardroom in downtown Ann Arbor during the March 19 meeting, which begins at 6:30 p.m. It’s intended to solicit feedback about proposed projects and programs that the county intends to implement with federal funding – through community development block grant (CDBG), HOME and emergency shelter grant programs – from July 1, 2014 through June 30, 2015.

The March 5 meeting included an update from Diane Heidt, the county’s human resources and labor relations director, about a proposal to offer autism health care coverage for county employees. A formal resolution is expected to be on the March 19 agenda for the board’s consideration.

Public commentary included advocacy from Jim Casha, who has previously addressed the board regarding the southeast Michigan regional transit authority. Washtenaw County is a member of the RTA, and the county board appoints two representatives to the RTA board. Casha’s remarks focused on the benefits of using the former state fairgrounds as a regional transit hub, instead of private development.

Pending Litigation

During the March 5 meeting, the board went into closed session for about 45 minutes to discuss pending litigation. That topic is one of the exceptions allowed under Michigan’s Open Meetings Act.

Curtis Hedger, Washtenaw County’s corporation counsel.

The specific litigation was not mentioned during the meeting.

The most recent news regarding a lawsuit against Washtenaw County was a nearly $1.2 million jury award given to a former employee, Ali Aboubaker. The award in the discrimination lawsuit was handed down on Feb. 27 – less than a week before to the county board’s March 5 meeting. The lawsuit had been filed in U.S. District Court in Detroit on Aug. 29, 2011. [.pdf of Aboubaker's complaint] [.pdf of jury verdict]

According to the complaint, Aboubaker worked for the county from 1991 until he was fired in July of 2008. He was originally hired as a bus driver, and was a maintenance technician when he was fired. The complaint states that he ”faced severe harassment from his supervisors and co-workers on the basis of his race, religion and national origin.” The lawsuit alleges that Aboubaker was denied promotion, and was fired when he filed a complaint with the Equal Employment Opportunity Commission. The county denied the claims made in the complaint.

The award included $221,490 in wages and fringe benefits for the period starting in July 2008; $614,028 in future wages and fringe benefits that would have been earned until retirement; and $250,000 in other damages. The award also included $1 in punitive damages.

Responding to a query after the March 5 meeting, corporation counsel Curtis Hedger told The Chronicle that the county will be evaluating its options for appeal. The administration would also be meeting with the county’s insurance carrier to discuss the situation, he said.

If the award stands, it would be one of the largest ever imposed against the county. Hedger and county administrator Verna McDaniel couldn’t recall any other discrimination case of this nature.

Youth Arts Alliance

The March 5 agenda included a resolution to authorize accepting a $21,980 grant from the Michigan Council of Arts and Cultural Affairs for the Youth Arts Alliance (YAA).

Heather Wilson, Youth Arts Alliance director.

The YAA is a five-county partnership in southeast Michigan between the Washtenaw County children’s services department, the Monroe County youth center, the Lenawee County Maurice Spear campus, the Livingston County juvenile court, and the Jackson County youth center. It provides creative arts workshops to youth in the juvenile justice system.

Lisa Greco, director of the Washtenaw County children’s services department, said she was excited about the award to support the Youth Arts Alliance. Washtenaw County is acting as the fiduciary for the collaborative and the grant, she said. The county also houses the YAA office.

She introduced the team of people involved in the project who were attending the March 5 meeting: Kevin Mitchell, assistant director of the Washtenaw County youth center; management analyst Mike Langenright; Melissa Strong, director of the Monroe County youth center; Geremy Burns, director of the Jackson County youth center; and Heather Wilson, Youth Arts Alliance director.

Greco also thanked several others who couldn’t attend the meeting, including Jason Brooks from the county’s budget and finance department.

Greco noted that Wilson had been instrumental in getting this grant.

Wilson then addressed the board, describing the work of the YAA. It started in 2013 with four counties, she said, and more recently expanded to add Jackson County. During the YAA’s first year, over 1,400 workshops were provided to over 450 youth, with support from 48 community volunteers and a 20-person executive committee of juvenile justice professionals. The program operates in five of the 24 county juvenile facilities in the state, she said, “and we are seeing huge transformations with the kids experiencing creative arts as an outlet.” For any given workshop, 90% of the youth have never been exposed to the arts activity that’s presented, Wilson said. The workshops include visual arts, creative writing and theater.

Wilson joked that she didn’t know what was more impressive – the transformation of youth in YAA workshops, or the fact that five county governments were working together.

The grant from the Michigan Council of Arts and Cultural Affairs will pay local artists to go into each of the five county facilities and install public art – murals and mosaics that are made by the youth within that facility. The youth will also be working with local musicians to create an original album, Wilson said. YAA is planning a big event in September, she reported, saying she expected to see all of the commissioners there.

The county board can be proud of what’s happening, Wilson said. They should be proud of the visionary leadership in each juvenile facility to understand the creative needs of the kids in their care, “and how truly transformative and healing participating in the arts can be.”

Outcome: Commissioners unanimously authorized accepting the grant.

Road Commission Board

Applications are being accepted to fill the seat on the Washtenaw County road commission board left vacant by the recent death of long-time road commissioner Fred Veigel. The appointment process was announced by county board chair Yousef Rabhi during the March 5 meeting.

Conan Smith (D-District 9).

The deadline for submitting applications is Sunday, March 16. Rabhi hopes to make a nomination at the board’s March 19 meeting.

The appointment would be to fill the remainder of Veigel’s six-year term, through Dec. 31, 2014. Applications can be submitted to Peter Simms of the Washtenaw County clerk’s office at simmsp@ewashtenaw.org.

The road commission is overseen by a three-member board that’s appointed by the county board. The two current commissioners are Doug Fuller and Barb Fuller, who are not related. The organization manages the maintenance and repair of about 1,650 miles of roads in the county that are outside of cities and villages, including about 770 miles of gravel roads. The organization employs 115 full-time staff, down from 156 in 2004. [.pdf of 2013-2014 road commission budget] [.xls of all road commission projects 2014-2018] [.pdf list of unfunded projects 2014-2018]

The organization of the road commission has been the focus of a county board subcommittee that recently made a recommendation not to absorb the road commission’s operations into the county government. For more background, see Chronicle coverage: “No Major Change Likely for Road Commission.”

Veigel, who also served on the county parks & recreation commission as a representative of the road commission board, died on March 2.

At the March 5 county board meeting, commissioners passed a resolution honoring Veigel for his work. [.pdf of resolution honoring Veigel]

Outcome: This was not a voting item.

Staff for Budget Work

Commissioners were asked to give initial approval to a proposal to hire a contract position that would support budget-related work for the county board and administration. The item had been originally considered, but postponed, at the board’s meeting on Feb. 5, 2014.

Washtenaw County administrator Verna McDaniel.

This process started on Nov. 20, 2013 meeting, when commissioners gave 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 it 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 had been included in the Feb. 5 board packet. The person would report to the county administrator in terms of daily operations. [.pdf of job description] [.pdf of scope of services]

The issue was debated at some length during the board’s Jan. 22, 2014 meeting, when commissioner 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, which led to the postponement.

There was no discussion of this item on March 5.

Outcome: On a 7-1 vote, commissioners gave initial approval to a contract staff position for budget work, over dissent from Dan Smith (R-District 2). Rolland Sizemore Jr. (D-District 5) was absent. A final vote is expected on March 19.

Public Hearing for Urban County Plan

The March 5 agenda included a resolution to schedule a public hearing for March 19. The purpose is to get public input for the Washtenaw Urban County 2014-15 action plan. The hearing will be held at the county boardroom in downtown Ann Arbor, 220 N. Main St., during the March 19 meeting, which begins at 6:30 p.m.

The county is soliciting feedback about proposed projects and programs that would be implemented with federal funding – through community development block grant (CDBG), HOME and emergency shelter grant programs – from July 1, 2014 through June 30, 2015. [.pdf of action plan]

The Urban County is a consortium of Washtenaw County and 18 local municipalities that receive federal funding for low-income neighborhoods. Members include the cities of Ann Arbor, Ypsilanti and Saline, and 15 townships. “Urban County” is a designation of the U.S. Dept. of Housing and Urban Development (HUD), identifying a county with more than 200,000 people. With that designation, individual governments within the Urban County can become members, entitling them to an allotment of funding through a variety of HUD programs. The Urban County is supported by the staff of Washtenaw County’s office of community & economic development (OCED).

Two HUD programs – the Community Development Block Grant and HOME Investment Partnership – are the primary funding sources for Urban County projects.

Outcome: Commissioners set the public hearing for feedback on the Urban County master plan, to be held on March 19.

Health Care Coverage for Autism

During the March 5 meeting, Felicia Brabec (D-District 4) noted that a subcommittee of the board has been working with Diane Heidt, the county’s human resources and labor relations director, to develop an option for the board to consider on offering health care coverage to county employees for the treatment of autism. The subcommittee includes Brabec, Andy LaBarre (D-District 7) and Ronnie Peterson (D-District 6). The board previously had been briefed on this issue at its Jan. 22, 2014 meeting.

Yousef Rabhi (D-District 8).

On March 5, Heidt reported that they are continuing to gather information on what kind of coverage might be offered. All county employees are offered a core level of preferred provider organization (PPO) coverage, she explained, with the option to buy additional coverage levels. The employee premium-sharing for the core coverage is $75 per month. That’s what the county had negotiated with its bargaining units, Heidt said. The other levels of coverage have higher premiums for the same coverage, but the deductibles are lower.

If the county offered a rider for the autism spectrum disorder that’s provided by Blue Cross Blue Shield of Michigan, then the county would be able to seek reimbursement from the state of Michigan for any covered services related to autism. If the county offered some kind of coverage other than the BCBS rider, however, then it would be opening itself up to additional liability if a significant claim came in and the state decided not to reimburse it, Heidt said.

Heidt noted that Brabec and LaBarre are seeking additional information from clinicians in the field, regarding the kind of coverage that might be available.

LaBarre reported that he recently spoke with the parent of a student with autism who goes to school where his wife teaches. [LaBarre's wife is a special education teacher.] They talked about out-of-pocket costs, and the parent told him it cost about $30,000 annually. “It’s a significant, significant burden,” LaBarre said.

Brabec said that some of the information they’d be gathering relates to the cost of offering coverage for dependents aged 18-26, who aren’t eligible for reimbursement from the state.

Heidt reported that a resolution for the board has been drafted, and she hoped to bring it forward at the board’s March 19 meeting.

Conan Smith (D-District 9) asked whether it was within the purview of the county administrator to decide whether to offer the autism coverage to employees. He indicated that he didn’t think the board needed to vote on it. Heidt replied that the administration plans to seek board approval, because of the additional cost that offering the benefit would entail. [At the board's Jan. 22 meeting, Heidt had estimated that offering the coverage would result in up to a 5% increase in medical expenses, or up to $1 million annually. The county would expect to be fully reimbursed by the state of Michigan for the amounts that are allowed under the autism program.]

Dan Smith (R-District 2) wondered if Heidt knew what other companies are doing to cover autism treatment. Heidt replied that she’ll put that information in the memo that will accompany the resolution, based on information gathered from the Autism Alliance of Michigan and other sources. Many large corporations offer the coverage, she said, and several states mandate it.

Outcome: This was not a voting item.

Homeland Security Grant

Commissioners were asked to give initial approval to authorize the acceptance of $444,215 from the federal homeland security grant program, to fund projects and positions in the county sheriff’s office for a period from Sept. 1, 2013 through May 31, 2015.

According to a staff memo, each project was reviewed and recommended by Washtenaw County’s homeland security task force. Major allocations include $117,983 for the Washtenaw County Technical Rescue Team; $107,704 for Washtenaw County Sheriff Emergency Services; and $90,000 to continue funding an existing crime analyst position in the sheriff’s office. The position is dedicated to the Detroit/Southeast Michigan Fusion Center, which coordinates crime analysis efforts and regional information sharing. [.pdf of staff memo]

Outcome: Commissioners gave initial approval to authorize the grant acceptance. A final vote is expected on March 19.

“Prescription for Health” Grant

The March 5 agenda included a final vote to accept a two-year $226,357 ”Prescription for Health” grant from the Kresge Foundation. It will fund a part-time staff position and requires a $54,250 match from the county’s public health department. Commissioners had given initial approval to this item at their Feb. 19, 2014 meeting.

The county’s previous funding for this program was a two-year, $361,519 Kresge grant from Jan. 1, 2011 through Dec. 13, 2012. According to the program’s website, the purpose is ”to increase fruit and vegetable consumption among patients with low income, and to build capacity of clinics to expand the traditional medical model to include the food system.” The program also aims to strengthen relationships between clinics, farmers markets and the local food system. [.pdf of grant application]

According to a staff memo, analysis of feedback from 930 participants in 2011-2012 showed the following results:

Both years, the average daily consumption of fruits and vegetables increased by nearly one cup per day among patients who visited their local farmers market as measured by a pre- and post-program survey.

Participants overwhelmingly agreed that visiting the farmers market helped them and/or their family members eat more fruits and vegetables (96% Year 1; 94% Year 2).

Participants increased their awareness of other resources in the community. Both years, the number of participants who said they were aware that food stamps (Bridge/EBT cards) could be used at local farmers markets greatly increased from pre- to post-program (48% difference from pre to post Year 1; 43% difference Year 2).

Participants indicated that they were very likely to visit the farmers market again in the future at the conclusion of the program (98% Year 1; 97% Year 2).

The program had a positive economic impact on the local farmers markets, generating over $26,000 in new sales ($5,967 Year 1; $20,279 Year 2). Prescription for Health represented 9% of total sales at the Downtown Ypsilanti Market and accounted for 23% of the total sales at the Chelsea Bushel Basket Market.

Outcome: Commissioners unanimously voted to accept the Kresge grant.

Honoring Fred Veigel and Lois Mayfield

Commissioners passed resolutions honoring Fred Veigel and Lois Mayfield for their service to Ann Arbor and Washtenaw County. Mayfield died on Feb. 21. Veigel passed away on March 2.

Conan Smith (D-District 9) called both of them wonderful advocates and ardent supporters of the community. “I didn’t agree all the time with either one of them, but I really valued their passion,” he said. Yousef Rabhi (D-District 8) echoed Smith’s remarks, saying he’d attended Mayfield’s memorial service at St. Mary’s Student Parish. [Veigel's funeral was held the following week, on March 10.]

Mayfield’s resolution cited several examples of her work, including serving as executive director of the Welfare Advocacy Program in Ann Arbor, and vice chair for the Ann Arbor Democratic Party’s mature adult issues committee. The resolution stated that she “served as a mentor to countless leaders, stood tall among the powerful – and when necessary – kept them in line with the sheer force of her character.” [.pdf of resolution honoring Mayfield]

The resolution honoring Veigel cited his 23 years of services as a Washtenaw County road commissioner, and as a member of the Washtenaw County parks & recreation commissioner since 2000. He was the longest-serving president of the Huron Valley Central Labor Council of the AFL-CIO. [.pdf of resolution honoring Veigel]

Outcome: Both resolutions pass unanimously.

Communications & Commentary

During the March 5 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: Prisoner Re-Entry Program

Yousef Rabhi (D-District 8) announced that Joe Summers is organizing a forum on Saturday, March 29 to discuss the Washtenaw prisoner re-entry program. There’ve been some cuts in state funding, so a group of local citizens are trying to figure out how to sustain the initiative. No location had yet been determined, he said.

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

Ronnie Peterson (D-District 6) asked whether any county staff were involved in this program. Rabhi said he knew the sheriff’s office was involved to some degree.

Peterson told other commissioners that it was important to be aware of the program and its lack of support. The board should take an interest, because it’s an important program, he said. You can’t send people home, who’ve paid their debt to society, without a support system and without resources. Without sufficient state funding, Peterson noted, the responsibility falls on the local communities. It’s a statewide problem, and the system should be changed, he said. He hoped the board would have more discussion on this issue.

Conan Smith (D-District 9) told Peterson that county prosecutor Brian Mackie is active on the prisoner re-entry steering committee, as is Delphia Simpson from the county public defender’s office, Ellen Schulmeister of the Shelter Association of Washtenaw County, and several others. Smith noted that a little funding is provided through the local coordinated funding program, in which the county participates. It’s a big concern, Smith said. “In this down economy, we’ve seen a real decline in the strategic support for this issue.”

Washtenaw County has been a leader on prisoner re-entry in Michigan, Smith said, “and we should stay in that position, by all means.”

Andy LaBarre (D-District 7), who chairs the board’s working sessions, said he’d make a working session available for this issue to discuss it further.

Communications & Commentary: Regional Transit Authority (RTA)

Jim Casha addressed the board, saying he was there again to talk about the southeast Michigan regional transit authority (RTA) and the possible acquisition of the Michigan state fairgrounds. [He had previously spoken about this issue at at the board’s Jan. 8, 2014 and Jan. 22, 2014 meetings.]

Dan Smith (R-District 2).

He showed commissioners a map that indicated the locations of several buildings on the site that could be used for a temporary or permanent regional transportation hub at a very low cost. “You really can’t have a better location for a regional transportation center,” he said.

Casha questioned whether the transfer of the property is being handled legally, and whether the public should have had the opportunity to bid on it at a public auction. [The property had been transferred to the Michigan Land Bank in 2012. In the fall of 2013, the land bank's board voted to transfer the property to a development team that includes Magic Johnson.]

Casha hoped to convince the RTA board to at least try to delay the transfer of the land, so that it could be evaluated as a possible public transportation center. He said he’d attended the recent Detroit Policy Conference, where it was stressed that Detroit problems need to be addressed on a regional level. If there’s no effort to collaborate on a regional level, Detroit’s problems will never get solved. “What better way to solve a regional problem – especially a regional transportation problem – than by building an iconic regional transportation hub,” Casha said.

The RTA board seems to be stalling, Casha said. He argued that they’ve failed to pursue the fairgrounds, they’ve failed to hire a director, and now they’ve postponed putting a tax proposal on the ballot until 2016. They need to speed up the process, he said. He wanted the county commissioners to pass a resolution requesting that the RTA board ask the land bank to postpone transferring the fairgrounds until the RTA has evaluated it. He also wanted the county board to formally request that SEMCOG [the Southeast Michigan Council of Governments] cease meeting with private developers and instead start protecting the interests of the SEMCOG member communities.

Communications & Commentary: Thomas Partridge

Speaking during both opportunities for public commentary, Thomas Partridge called on commissioners to address the housing needs of county residents, especially during the cold winter. Residents also need access to affordable transportation, health care and education, he said. There should be no excuses from the county to take on these issues. The goal should be to eliminate homelessness in Washtenaw County by building affordable housing throughout the county, and by supporting viable public transportation.

Partridge also demanded that all meetings of all county boards and commissions be held in the boardroom of the county administration building in downtown Ann Arbor, and be taped for broadcast on Community Television Network and posted online. The county is too fragmented, he said. The Washtenaw Community Health Organization (WCHO) should have a representative attending the county board meetings. He contended that the WCHO is working with the legislature that’s “under the right wing leadership of the Snyder administration” to take away the rights of Washtenaw County residents to have considerate, friendly health care. The WCHO board holds its meetings at its Zeeb Road office, he said, out of public view. Too many other boards and commissioners are doing the same thing, Partridge said. That kind of thing lends itself to corruption, he said.

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, March 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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Yousef Rabhi, chair of the board, appointed 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. 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). Her term will be for three years, ending Dec. 31, 2016. She attended a portion of the Jan. 22 meeting but did not formally address the board. Conan Smith abstained from the vote, citing what he called a perceived conflict of interest. Because of that, he said, “I did my best to stay out of [the selection process], passionate though I am about the RTA and my mother.” Although the state statute authorizes the county board chair to make the RTA appointments, Rabhi put forward a resolution for all of his nominations – including the RTA – to be confirmed by the full 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.

In other appointments made on Jan. 22, Dan Ezekiel was appointed to fill a term that was recently vacated by long-time county parks & rec 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 & rec 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 appointed to the Washtenaw County food policy council, for terms ending Dec. 31, 2015.

The board also made its 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, 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. Members of that committee are Felicia Brabec (D-District 4), Ronnie Peterson (D-District 6), and Andy LaBarre (D-District 7). The board had received a staff presentation earlier in the evening about the possibility of offering coverage for autism.

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.

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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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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However, Murphy is not seeking re-appointment to the seat – a point that was included in CEO Michael Ford’s report to the board of the Ann Arbor Area Transportation Authority at its Nov. 21, 2013 meeting.

The RTA was established in a lame duck session of the Michigan legislature in late 2012, and 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. In Washtenaw County, the appointments are made by the chair of the county board of commissioners. Last year, outgoing board chair Conan Smith chose to exercise that privilege before the year was out, and appointed Murphy to the post on Dec. 31, 2012. Murphy is an employee of the Michigan Suburbs Alliance, a nonprofit for which Smith is the executive director.

The Washtenaw County board’s leadership has now changed, and it is Yousef Rabhi who will make the appointment to replace Murphy. Responding to an emailed query from The Chronicle, Rabhi indicated that the RTA board appointment will be made using the same process that’s used for all appointments made to various boards, committees and commissions. Those appointments are expected to be made at the board’s Dec. 4, 2013 meeting along with the appointment to the RTA board.

On Nov. 21 the county board held an appointments caucus, which The Chronicle attended, to discuss appointments for all openings. However, out of the nine commissioners, only Conan Smith and Yousef Rabhi attended. They did not discuss the RTA appointment, and no formal applications to the RTA were included in the 116-page packet of application materials from candidates for other boards, commissions and committees.

The original application deadline had been Oct. 31, but it was extended to allow more time for people to apply. Responding to an emailed query from The Chronicle, Murphy indicated that his decision not to seek reappointment was based on the arrival of new twins and the additional demands that placed on his time. However, he also indicated a willingness to continue to make himself available as a resource: “I’ve told Yousef and Liz [Gerber] that I’m happy to continue to be an advisory, ‘subject matter expert’ resource to them and my replacement, but life happenings jumped up and interfered with plans of the full-on board role.”

Liz Gerber, a professor at the University of Michigan Ford School of Public Policy, was the second appointment to the RTA board made last year. Her term was for three years. The RTA has spent its initial several months with the administrative and organizational issues associated with the establishment of a new entity.

In addition to the RTA, deadlines were extended until Dec. 1 for applications to two other county groups: the Washtenaw County historic district commission, and the Washtenaw County food policy council. More information about these positions is posted on the county’s website.

Sub-regions on the national (blue), state (red) and local (green) scales were highlighted at the Ann Arbor city council’s Oct. 14, 2013 work session on regional transportation.  (Image by The Chronicle.)

The projects all fit into the general rubric of regional transportation – relative to different scales of the concept of “region.” Eli Cooper, the city of Ann Arbor transportation program manager, led off the session with some introductory remarks that framed the session in those terms – regions defined on a national, state and more local scale.

Nationally, Amtrak provides rail service between major cities like Chicago and Detroit. And it’s to support that service that the city of Ann Arbor is currently planning for a new or reconstructed Amtrak station. A contract for a required planning study, 80% of which is funded with a federal grant, appears on the council’s Oct. 21 agenda. [Legistar file 13-1128]

On a smaller regional scale, SEMCOG (Southeast Michigan Council of Governments) is the lead organization for a possible new kind of future service on the same tracks as the Amtrak inter-city service: an Ann Arbor-Detroit commuter rail service. That would be at least two years out, partly because no operating funds for the service have yet been identified. Those funds could eventually come from the nascent southeast Michigan Regional Transit Authority (RTA), which could ask voters in a four-county region – Macomb, Oakland, Washtenaw and Wayne – to approve either a transit property tax or a vehicle registration fee dedicated to supporting transit.

On the smallest regional level, voters in member jurisdictions of the Ann Arbor Area Transportation Authority could be asked as soon as May 2014 to approve additional transportation funding. The AAATA currently includes the city of Ann Arbor, the city of Ypsilanti, and Ypsilanti Township – provided that the Ann Arbor city council approves the township’s membership at its Oct. 21 meeting. [Legistar file 13-1267]

As AAATA staff stressed at the Oct. 14 work session, the board of that organization has not yet made a decision to place a millage request in front of voters. If approved by voters, the additional funding – likely to be 0.7 mills – would be used to increase frequency and time of service in the local region.

Details about the service improvements are the subject of a series of public meetings, which is set to start this Thursday, Oct. 17 from 4-6 p.m. That first session takes place just before the AAATA board meeting at the Ann Arbor District Library’s downtown location.

National Scale: Midwestern Region

For regions on a national scale, Amtrak is the provider of rail transportation. And for Amtrak, Ann Arbor is part of the midwestern region, which includes the connection between Chicago and Detroit. Amtrak’s Charlie Monte Verde ticked through some highlights of Amtrak’s operation nationally for the city council. That included the transport of 31.6 million passengers in fiscal year 2013, which ended Sept. 30, 2013. That figure is a record, he said, continuing a trend that has seen record ridership in 10 out of the last 11 years. That’s translated to a decrease in federal operating subsidy to 12% of operating costs.

Amtrak ridership by month since 1994. (Chart by The Chronicle based on data from MDOT.)

In Michigan, Monte Verde told the council, Amtrak ridership has increased 63% since 2000, which has translated to a 98% increase in ticket revenue over that same period. He described Ann Arbor’s Amtrak station as the busiest in Michigan. The 2013 fiscal year had shown a 10% increase in ridership compared to FY 2012, he reported, with over 158,000 riders. That made it the busiest year in the Ann Arbor Amtrak station’s history, Monte Verde said.

Charlie Monte Verde of Amtrak.

Monte Verde also described seven different station projects that are either in the works or have been completed, including Ann Arbor’s potential project. He said that now is the “golden era” of station construction and rehabilitation. He called Amtrak an “eager and appreciative stakeholder” as Ann Arbor seeks to construct a new state-of-the-art multi-modal rail station.

Later in the city council’s work session, MDOT director of rail operations Tim Hoeffner described a station as “the gateway to your community.” He added: “That should be your face – that should be what you want to put forward. That shouldn’t be what we want to have come forward from Lansing.”

Hoeffner contrasted the stations and the rail infrastructure with the “equipment” – the “most sexy” part of the rail operation. “It’s that new-car smell,” he said, and that’s important because that’s where passengers spend most of their time. Right now, Amtrak is doing the best it can, but he compared it to driving a 1950s car every day, and trying to keep it in good repair: Where would you find parts? Right now, he said, they think in the following terms: “Do the bathrooms smell? If they don’t, that’s a good day.”

By 2016-17, he felt that issue would be solved. A $268 million multi-state grant from the federal government would allow the purchase of new cars and locomotives. The vendor has been selected, he reported: Nippon Sharyo.

Besides the Ann Arbor station project, other Michigan station projects include: Battle Creek (complete station rehabilitation finished in June 2012); Troy-Birmingham (groundbreaking for new intermodal facility in November 2012, with expected completion in fall 2013); Dearborn (construction of a new multi-modal Amtrak and transit facility began in April 2012, with completion expected in 2013); East Lansing/Lansing (new facility to be constructed in 2014); Grand Rapids (construction ongoing to add Amtrak to Central Station); and Jackson (over $1.2 million invested since 2008 to rehabilitate the historic station).

The question of station construction was of interest to the Ann Arbor city council because of the contract associated with the Ann Arbor Station project appears on the Oct. 21 meeting agenda.

Ownership of track within Michigan was one theme of Monte Verde’s remarks. The Chicago-Detroit corridor could be divided into sub-regions based on track ownership. Amtrak owns the 97-mile stretch extending from Porter, Ind., to Kalamazoo, Mich.

State Level: Amtrak Corridor

The track ownership theme was picked up by Tim Hoeffner, MDOT’s director of rail operations, later in the meeting. Hoeffner described to the council some barriers that have been overcome and some that remain with respect to the physical condition of track between Chicago’s Union Station and Detroit’s New Center Station.

Amtrak routes and track Improvements. Just east of Chicago, the blue-highlighted section – owned by Amtrak – has already been improved to support up to 110 mph operations. Further east, the green-highlighted section of track was recently acquired by MDOT from Norfolk Southern. That section is expected to have improvements made that will make it also capable of carrying speeds up to 110 mph. (Map from Amtrak. Part of council information packet.)

Hoeffner told the council he’d spent most of the day out in the field overseeing construction and infrastructure improvements. When MDOT closed on the purchase of the track between Kalamazoo and Dearborn, he said, MDOT started taking responsibility for the maintenance, using Amtrak as its contractor early this year.

That initial work focused on stabilization, but the biggest part of the construction activity started a few weeks ago, when Norfolk Southern brought in some of their construction “mega gangs” – for installing about 130,000 ties as well as sections of rail. The amount of work that will be done before Thanksgiving this year, he said, would ordinarily take two construction seasons. But Norfolk Southern had time in its construction schedule that allowed MDOT to contract with the former owner of the track to get a lot of this work done early.

Hoeffner allowed that the construction work had meant some at-grade crossings throughout Washtenaw County had to be closed for what he described as a short while. The track construction that’s happening now, he said, is not just stabilization work, but will allow the trains to attain speeds of up to 110 mph.

From Chicago, heading toward Detroit, the first 40 miles is some of the busiest section of railway in North America, Hoeffner said. But major projects are in the works that could alleviate congestion on that segment of track, he said. That came about due to MDOT taking the lead, he said, partnering with Illinois and Indiana for a feasibility study on a dedicated passenger rail route between Chicago’s Union Station and Porter, Ind. The study has progressed to the final set of alternatives in the environmental review.

On that first 40 miles of the route, near Union Station, Hoeffner also described a $130 million project to create railroad-to-railroad grade separation at the Englewood location – which is supposed to start construction in early 2016. There’s also $70 million of crossover work in Indiana, which is expected to begin after the government shutdown ends.

After that first 40 miles, Amtrak owns the next 97 miles. That 97-mile stretch extends from Porter, Ind., to Kalamazoo, Mich. Hoeffner reported that a collaborative effort between Amtrak and MDOT had already resulted in track improvements along the Porter-to-Kalamazoo 97-mile stretch that now allowed operations of up to 110 m.p.h. – making it the only significant stretch of rail with 110 m.p.h. operating capability outside of the northeast corridor of Boston, New York, and Washington D.C.

Michigan Dept. of Transportation director of rail Tim Hoeffner.

Continuing eastward, the next 135-mile stretch of track – from Kalamazoo through Ann Arbor to Dearborn – was acquired last year by MDOT from Norfolk Southern. Track improvements are required under the purchase agreement. That’s now taking place ahead of schedule, Hoeffner told the council, with two typical construction seasons’ worth of work anticipated to be completed between September and Thanksgiving of this year.

In West Detroit, where Contrail transitions to Canadian National, Hoeffner said, MDOT is bidding out a new bridge, to establish a direct connection. That would take 5-10 minutes off the Amtrak running time.

What’s the motivation for MDOT to partner with Amtrak to improve ridership? Section 209 of the Passenger Rail Investment and Improvement Act (PRIIA) of 2008 shifts much of the cost of supporting Amtrak services from the federal government to the state government – starting in FY 2014 (Oct. 1, 2013). The operating assistance to Amtrak from MDOT had thus increased from about $8 million annually to $25 million starting this year on Oct. 1. Partly as a result of that, Hoeffner said, MDOT was partnering with Amtrak to try to grow ridership and thus increase revenue. The key to that is improving on-time performance, he said.

Throughout his remarks, Hoeffner stressed that the goal is not increased speed per se, and he emphasized that the term MDOT uses is “accelerated rail” not “high-speed rail” – which refers to even higher speeds. The “accelerated rail,” he said, has goals of improving reliability (hitting scheduled arrival times), providing more flexibility for travelers and reducing overall trip time. Right now, he allowed, on-time performance isn’t very good, and that’s why they’re working to improve it. They’re also working on providing information about what the delay is. Hoeffner said that to be competitive with automobile travel on the interstate, travel time between Chicago and Detroit would need to be reduced to four hours.

As one measure of the initial success in improving the train service along the Chicago-Detroit corridor, Hoeffner offered a recent anecdote. Typically Amtrak offers a tour for state legislators, where they board the train in Lansing and take the train to Chicago to hear presentations and have discussions. MDOT director Kirk Steudle usually goes on those trips, Hoeffner continued, saying that due to Steudle’s busy schedule, he might not ride the whole way.

So Steudle would typically get on at Battle Creek or Kalamazoo and ride to New Buffalo and get off there. Generally, what Hoeffner would do is have one of his staff get off the train in Battle Creek or Kalamazoo and drive Steudle’s car to New Buffalo. Steudle asked Hoeffner to do that this year: “I had to tell him no. You get a real interesting look when you tell the boss ‘No,’” he said. The reason he said no was that Amtrak service is now competitive with the automobile on the highway in that corridor.

SE Michigan Level: Ann-Arbor Detroit Commuter Rail

Also positively affected specifically by the transfer in track ownership from Norfolk Southern to MDOT would be a possible new type of service in the easternmost sub-region of the Chicago-Detroit corridor – using the same tracks that Amtrak uses for the intercity Chicago-Detroit service.

That was a highlight of Carmine Palombo’s remarks to the council. Palombo is transportation programs director at the Southeast Michigan Council of Governments (SEMCOG), currently the lead organization on the Detroit-Ann Arbor commuter rail project. That service is envisioned to provide five round trips daily between Ann Arbor and Detroit. Intermediate stops would be located in Ypsilanti, Detroit Metropolitan Airport and Dearborn.

When Norfolk Southern owned the section of track on which the Ann Arbor-Detroit commuter service is planned to be offered, Palombo said, there was a considerable cost that would have been incurred for use of the track. Now that MDOT has purchased the track, he said, we have a “more benevolent owner.” “That’s going to do us well,” he added.

Palombo stressed that before passenger commuter rail could be operated, as part of the purchase agreement between Norfolk Southern and MDOT, certain track improvements have to be completed – for example, sidings that will allow for continued freight operations while adding commuter trips. Most of the money that MDOT needs to undertake those improvements has been received from the federal government, he said.

Palombo described the planned connection of the Ann Arbor-Detroit commuter rail to the M-1 streetcar project in Detroit. That’s a project that would stretch 3.3 miles along Detroit’s Woodward Avenue with 11 stops between Larned Street in Detroit’s Central Business District up to West Grand Boulevard at the North End. Palombo described that project as starting construction next year.

While double-decker railcars to provide an Ann Arbor-Detroit commuter service have been leased by MDOT and refurbished, it’s not yet clear how the operations for such a service might be funded, Palombo said. The cars have been safety tested by the Federal Railroad Administration and the Federal Transit Administration, and they’ve passed every test they’ve undergone. “They’re beautiful,” he said. Palombo mentioned the two displays of the new railcars that had been held over the summer and early fall – at the Ann Arbor Green Fair and Ypsilanti’s Heritage Festival.

But Palombo indicated that for the next two years, nothing more than perhaps some special-event trains might be possible as demonstrations. “We need some money to run this thing,” he said. Palombo indicated that SEMCOG and MDOT are “committed to moving forward on this project.” The entity that might be in a position to provide some operational and coordinating support for that project is the nascent Regional Transit Authority (RTA).

Up to now, however, the RTA has spent the majority of its effort since being established – during the lame-duck legislative session of December 2012 – completing various administrative tasks. That administrative work is nearly complete, Palombo indicated, so SEMCOG would be starting to talk to the RTA about Ann Arbor-Detroit commuter rail.

SE Michigan Level: Regional Transit Authority

Washtenaw County has two representatives on the board of the four-county authority, which includes Macomb, Oakland, Washtenaw and Wayne counties as well as the city of Detroit. One of those representatives, Liz Gerber, addressed the Ann Arbor city council at its Oct. 14 work session.

Liz Gerber, a Washtenaw County representative to the Regional Transit Authority (RTA) board. Gerber is also a professor at the University of Michigan Ford School of Public Policy. The second RTA board member from Washtenaw County is Richard Murphy.

She described a range of administrative tasks the board had been working on, to get the organization to a point where it could begin to complete its legislative mandate. That mandate includes coordinating transportation in the four-county region and operating service in four different corridors, one of which is the Detroit-Ann Arbor corridor.

However, the RTA’s enabling legislation is not mode-neutral, and makes it much easier for the RTA board to establish bus rapid transit (BRT) services than it does any rail-based service. Rail projects require a unanimous vote of the RTA board.

The RTA does not yet have any dedicated operating funds. The initial legislation passed in December 2012, combined with additional funding from MDOT, has provided an initial $650,000 to cover administrative expenses of the RTA. The RTA has also been awarded a $6 million planning grant, some of which could be applied toward a limited set of administrative costs.

One source of funds the RTA could use is MDOT’s local bus operating (LBO) funds. At the work session, Gerber stressed that under the terms of the operating agreement that the RTA had worked out with the transit providers in the RTA region, those LBO funds would be used by the RTA only as a last resort. The RTA has the ability to levy property taxes or collect vehicle registration fees – but only if approved by voters.

Local Region: Ann Arbor Area Transportation Authority

Voters in the smallest of the regions discussed at the council’s Oct. 14 work session could be asked as soon as May 2014 to approve additional transportation funding. That’s the region defined by the combined geographies of the member jurisdictions in the Ann Arbor Area Transportation Authority. That currently includes the city of Ann Arbor, the city of Ypsilanti and Ypsilanti Township – provided that the Ann Arbor city council approves the township’s membership at its Oct. 21 meeting.

Michael Ford, CEO of the Ann Arbor Area Transportation Authority.

The AAATA is following direction from the Ann Arbor city council in taking the approach of expanding governance by only adding member jurisdictions located geographically near Ann Arbor who request membership. That contrasts with the all-in-one-go attempt to form a viable countywide authority in 2012, which did not gain traction and is now demised. Both the city and the township of Ypsilanti have historically received some transportation services from the AAATA through purchase-of-service agreements.

The idea of expanding the geographic footprint to include more jurisdictions that are full-fledged members of the AAATA is to establish a more stable source of the funding for transportation services in that geographic region. The more stable funding source would take the form of a millage levied by the AAATA. The power to place a millage on the ballot is one the AAATA has had all along, but has never exercised.

As AAATA staff stressed at the Oct. 14 work session, the board of that organization has not yet made a decision to place a millage request in front of voters. But that could come as soon as May 2014. If approved by voters, the additional funding – likely to be requested at the level of 0.7 mills – would be used to increase frequency and time of service in the local region.

Details about the 5-year service improvements are the subject of a series of public meetings, which is set to start this Thursday, Oct. 17 from 4-6 p.m. That first session takes place just before the AAATA board meeting at the Ann Arbor District Library’s downtown location, 343 S. Fifth Ave.

Details on planned service improvements are available on the AAATA’s Moving You Forward website. In his remarks to the city councilmembers at their Oct. 14 work session, AAATA CEO Michael Ford was keen to emphasize that the five-year service plan improvements do not include the operation of any rail service.

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