From left: Mark Kettner of the accounting firm Rehmann; Carla Sledge, Wayne County’s chief financial officer; Kelly Belknap, Washtenaw County’s finance director; and Pete Collinson, accounting manager for Washtenaw County. (Photos by the writer.)

The county’s finance staff, along with the auditor, Mark Kettner of Rehmann, highlighted several points, including a relatively dramatic increase in the general fund balance over the last few years – from $9.7 million in 2009 to $16.8 million at the end of 2012. Kettner also explained upcoming accounting changes that will require unfunded liabilities from the county’s pension and retirement healthcare plans – now totaling nearly $250 million – to be recorded in a different way, with more disclosure.

The new accounting changes – required by the Governmental Accounting Standards Board (GASB) – won’t begin until 2015, but commissioner Dan Smith (R-District 2) wondered whether the county could implement the changes sooner. It might be possible, Kettner replied, but “I don’t know why you’d want to do it.” He suggested that the board hold a working session to go over the upcoming changes in more detail.

Kettner also pointed out that the changes will affect government entities in different ways. For example, it’s likely that there will be more impact on the city of Ann Arbor, because of how its many “enterprise” funds might be affected and the implications that would have on outstanding bonds. At minimum, the changes will mean more work for finance staff.

Also at the April 3 meeting, commissioners voted to add 39 new jobs in the community support and treatment service (CSTS) department, which provides mental health and substance abuse services to county residents. The work is primarily funded by the Washtenaw Community Health Organization, a partnership between the county and the University of Michigan Health System. Most of the new jobs are union positions. Dan Smith expressed concern about adding to the county’s payroll, but supported the resolution along with other commissioners in a unanimous vote.

The board also took an initial vote to dissolve The Washtenaw Ride. That Act 196 authority is a remnant of a failed attempt to create a countywide transit system last year. Efforts to expand the current reach of the Ann Arbor Transportation Authority are still underway, but don’t require the structure that was put in place under Act 196.

The topic of public transportation was raised later in the meeting as well, as Ronnie Peterson (D-District 6) asked about the county’s role in the southeast regional transit authority (RTA). The RTA was formed by the state legislature last year to coordinate regional transit in the city of Detroit and counties of Wayne, Macomb, Oakland and Washtenaw. There was not uniform support for Washtenaw County to be part of this effort, and it’s not yet clear what the impact will be on the AATA.

In other discussion, Yousef Rabhi (D-District 8) highlighted a proposal in front of the Ann Arbor city council regarding possible ordinance changes governing the Ann Arbor Downtown Development Authority. Depending on what the council decides, there might be implications for the county, he said, so he wanted to put it on the board’s radar. For background on this issue, see Chronicle coverage: “DDA Tax Capture Change Gets Initial OK” and “DDA Ramps Up PR after First Council Vote.”

Also briefly mentioned was a discussion that occurred at a late March county pension commission meeting, raising questions about the new labor contracts that the board approved on March 20, 2013. At issue is whether the county complied with a state law requiring supplemental actuarial analysis before pension benefit changes are adopted. The county administration subsequently conferred with outside legal counsel, and confirmed their view that no new actuarial analysis was necessary.

And although it wasn’t discussed at the April 3 board meeting, the recent labor contracts resulted in another issue related to compliance with state law: Elimination of the county’s healthcare benefits for domestic partners.

When the county’s previous labor contracts were opened for renegotiation, that triggered the need to comply with a state law passed in late 2011. PA 297 restricts public entities from offering domestic partner benefits. For the county, those benefits had been offered to “other eligible adults” who met certain criteria, like sharing the same residence. Nine county employees had been using those benefits, according to Diane Heidt, the county’s human resources and labor relations director. The benefits were eliminated as of April 1.

Heidt noted that even if the contracts hadn’t been renegotiated in March, the benefits would have eventually been eliminated when the previous contracts expired at the end of 2013. She said the administration was very disappointed about the change, and continues to explore other options that serve the employees while complying with state law.

2012 Finance, Audit Reports

The main action of the April 3 meeting related to the county’s financials, including a report from the auditor, Mark Kettner of the accounting firm Rehmann. Chronicle readers will likely recognize his name, as Kettner oversees audits for several local government entities, including the city of Ann Arbor.

Part of the financial presentation included an award to the county. As she has for the past several years, Carla Sledge – Wayne County’s chief financial officer and past president of the Government Finance Officers Association – presented the county with a certificate of achievement for excellence in financial reporting for its fiscal year ending December 2011. The award is based on the county’s timely completion of its state-mandated comprehensive annual financial report, or CAFR. This is the 22nd year that Washtenaw County has received a certificate of achievement.

Pete Collinson of the county’s finance department also gave a brief presentation with highlights from the current set of reports. The financial reports presented to the board are:

• Washtenaw County Comprehensive Annual Financial Report (CAFR) for the year ended Dec. 31, 2012.
• Washtenaw County single audit of federal awards for the year ended Dec. 31, 2012.
• Washtenaw County Building Authority financial statements for the year ended Dec. 31, 2012.
• Washtenaw County Department of Public Works projects financial statements for the year ended Dec. 31, 2012.
• Washtenaw County Water Resources Commissioner financial statements for the year ended Dec. 31, 2012.
• Washtenaw County Employees Retirement System (WCERS) financial statements for the years ended Dec. 31, 2011 and Dec. 31, 2012.
• Washtenaw County Money Purchase Pension Plan (MPPP) financial statements for the years ended Dec. 31, 2011 and Dec. 31, 2012.
• Washtenaw County Voluntary Employees Beneficiary Association (VEBA) financial statements for the years ended Dec. 31, 2011 and Dec. 31, 2012.
• Washtenaw County Community Support & Treatment Services (CSTS) financial statements for the year ended Sept. 30, 2012.
• Washtenaw County Employment Training and Community Services Fund (ETCS) financial statements for the year ended Dec. 31, 2012 (conducted by the accounting firm of Stewart, Beauvais & Whipple).
• Washtenaw County Employment Training and Community Services Fund (ETCS) single audit of federal awards for the year ended Dec. 31, 2012 (conducted by the accounting firm of Stewart, Beauvais & Whipple).

Collinson described the process of fiscal review leading up to the audit. Auditors arrive in January and stay for about five weeks, then work with county staff for an additional period to finalize the financial statements. The goal is to make a presentation to the board by the first meeting in April, he said. He joked that an audit “certainly isn’t something we’d choose to do” every year. An annual audit is mandated by the Michigan Uniform Budgeting and Accounting Act (PA 2 of 1968), which requires it for local units of government with a population of 4,000 or more residents.

There are two components to the audit, Collinson explained: (1) an audit of financial statements for all of the county’s funds, including assets, liabilities, revenues and expenditures; and (2) a “single audit” of all federal grants, to see if the county complied with federal requirements attached to those grants. Last year, he noted, the county received about $28 million in federal grants, “so it’s a significant part of our operation.”

The 206-page CAFR is the main document that’s produced as a result of the audit, Collinson said. He noted that the auditor has given the county a clean opinion.

He also highlighted the different sections of the CAFR. For example, a statistical section provides a range of trend data, including employee count, expenditures, revenues and other financial information. “It’s a helpful section to look at the trends over time,” he said. [.pdf of CAFR statistical section]

Collinson said he wouldn’t spend a lot of time on the general fund report, noting that the board had received a detailed update on 2012 year-end finances at its March 20, 2013 meeting. The general fund ended 2012 with a $2.3 million surplus, and a fund balance of $16.8 million – or 16.8% of annual general fund expenditures and appropriations. He characterized that position as very good, and in line with the minimum fund balance recommended by the Government Finance Officers Association (GFOA). It would be good to build on that, he added, but it was impressive to finally reach the minimum. “I didn’t think we’d get there in my years here,” he said.

From left: Commissioner Felicia Brabec (D-District 4) and county administrator Verna McDaniel.

Turning to the report on all of the county’s fund balances, Collinson noted that some funds are restricted and can only be spent for a limited range of purposes. All county fund balances totaled $102.275 million at the end of 2012. Of that, $31.989 million was unobligated. [.pdf of schedule of fund balances as of Dec. 31, 2012]

He also mentioned the CAFR’s schedule of long-term liabilities over the last five years. Primarily, those liabilities are debt – such as debt related to construction projects – and actuarial liabilities for the pension and retirement healthcare systems. [.pdf of long-term liabilities] The schedule of long-term liabilities shows that total liabilities have increased from $393.9 million at the end of 2008 to $446.6 million as of Dec. 31, 2012.

Collinson also highlighted the county’s state revenue-sharing reserve fund, which had a balance of $4 million at the end of 2012. That remaining amount will be spent in 2013, and the fund will “sunset,” he said. The state has reinstated revenue-sharing at a lower level, with the county getting about $2.8 million for the current year. That amount is expected to increase, he said.

New to the CAFR this year are changes that reflect the county’s implementation of Governmental Accounting Standards Board (GASB) statements 63 and 65. Certain items that were previously classified as assets are now called “deferred inflows.” And certain liabilities are now called “deferred outflows of resources.” In addition, the balance sheet (statement of net assets) is now called the statement of “net position.” Collinson joked that if he read the definition of these terms, it wouldn’t clarify things. He noted that the terms “assets” and “liabilities” have worked well for centuries, but GASB has decided to change the terminology. He characterized these changes as minor, though he noted that “bigger changes are coming down the pike.” [The reference was to implementation of GASB 67 and 68, which was discussed later in the meeting.]

Collinson reported that despite the economy, the county has maintained its AA+ bond rating with Standard & Poor’s, and an Aa2 rating with Moody’s. It’s the second-highest rating possible, he noted. The county administration hopes to secure the triple-A bond rating in the future.

Collinson concluded by introducing Mark Kettner from the accounting firm Rehmann, who reviewed the 2012 audit and answered questions from commissioners.

Kettner noted that the current report was “unmodified” – a new term that’s being used instead of the previous “unqualified.” Both mean that the audit was clean, which is the highest level of assurance for financial statements. He cautioned that “the auditor did not say that everything is OK.” That is, it’s not an opinion on internal controls or the county’s financial position. It’s an opinion that the financial statements are fairly presented in accordance with criteria that meet GASB principles, he said.

Kettner also highlighted some terminology changes that result from GASB’s new “clarity” standards. Like Collinson, he characterized the changes as subtle, adding that it created some “nuisance work” compared to previous statements.

Bigger changes are coming, however. About a month ago, Kettner said he met with county administration and board leadership to talk about the current report as well as upcoming GASB standards 67 and 68. It would take hours to explain, he said, but he summarized it as a very big change dealing with pension plans and retirement healthcare. It will require an extra actuarial report, more disclosure, and recording of liabilities in a different way.

He pointed to the current pension fund statement – on page 115 of the CAFR – and noted that the current unfunded actuarial liability of $101 million will be recorded in 2015 as a liability on the county’s governmental-wide financial statements. That won’t have as great an impact as it would if it were required to be booked as a general fund liability, he said. [.pdf of CAFR statement regarding pension fund] “It’s going to be a big pop into the financial statements,” he said.

Two years later, in 2017, the same thing will occur for retiree healthcare – the county’s Voluntary Employees’ Beneficiary Association (VEBA), a 501(c)9 trust established to pre‐fund retiree healthcare benefits. Kettner said the county will be booking that liability – now at about $148 million – on the governmental-wide financial statements. [.pdf of CAFR statement regarding VEBA]

There’s lots of lead time, Kettner said, but he suggested that the board hold a working session, and perhaps include the boards of VEBA and WCERS, to talk in more detail about what this transition will entail.

Kettner praised the county for completing its audit by the end of the first quarter, saying it’s as good as any publicly traded Fortune 100 or 500 company.

2012 Finance, Audit Reports: Board Discussion

Dan Smith (R-District 2) asked if there’s anything preventing the county from implementing GASB 67 and 68 standards sooner than required. There’s nothing to prevent that, Kettner replied, but “I don’t know why you’d want to do it.”

Smith said he’d like to do it in order to get a clearer understanding of the county’s financial picture, because the county will be forced to do it eventually. Kettner likened it to going to the dentist to get a root canal, and being offered the choice of doing it tomorrow or next week – you might want to put it off.

From left: Mark Kettner with the auditing firm Rehmann talks with Curt Hedger, the county’s corporation counsel.

The information about these liabilities is already provided in the CAFR, Kettner noted. The amount might change – either up or down – because different assumptions will be used under the new GASB reporting standards. The county will need to get a new actuarial report that uses a different set of assumptions. But he indicated that those changes likely won’t be dramatic. The main difference will be a greater amount of disclosures, and a booking of the liabilities under the governmental funds.

Kettner added that the county couldn’t implement the changes until it gets the necessary information from the Municipal Employees’ Retirement System of Michigan, a statewide system. Although only a small subset of county employees are enrolled in MERS, that pension system still must be included in the county’s audit. He described it as a “triple whammy” for Washtenaw County, because the county will be required to include information for all three systems: MERS, WCERS and VEBA.

For MERS, the county will have to include information related to the entire MERS system, not just for the small piece of it that relates to county employees. So under the new standards, the county’s financial statements will need to include a listing of all MERS investments and the rate of return for those investments. Then, the county’s financial staff will have to calculate the county’s “slice” of those investments as part of their report. “So it’s going to be rather complicated, and I don’t expect that you’ll have MERS ahead of time,” Kettner said.

Kettner also questioned whether the actuaries hired by the county are prepared to handle this additional workload yet. “I hear what you’re saying,” he told Smith regarding an early implementation, “but I would really advise against doing it.”

Smith noted that if the liabilities are currently on the county’s balance sheet – what’s now called its statement of net position – then the net position would be negative. It would make the statement look significantly different, he said.

That’s true, Kettner replied, but the rating agencies – Standard & Poor’s and Moody’s – are well aware of this information, and they know that actuarial information is based on an educated guess. In addition, it won’t be as big of a hit to the county as it will to the city of Ann Arbor, Kettner said. For a city that has a higher number of enterprise funds – like water, sewer and other utilities – the pension and retirement healthcare liabilities will have to be allocated to those funds. “All of a sudden those funds are going to get significant charges, and it could push them into a fund deficit,” Kettner explained.

The minor impact could be a requirement from the state to do a deficit elimination plan. But there’s potential for greater impact: If those enterprise funds have revenue bonds that are still being paid off, there might be covenants in those bonds stating that the funds can’t operate with a deficit. If that’s the case, Kettner said, then the city would need to figure out how to address it, which might entail rate increases. “That’s not going to go over very well,” he said.

The changes will hit governmental entities differently, he said. For the county, it will hit them in the governmental funds, “and to be honest with you, some people don’t even pay attention to those. Rating agencies are more concerned about your general fund, and any significant proprietary [enterprise] funds.”

Continuing his questions, Smith then highlighted a sentence from the CAFR, included in the notes on the pension system. He read it aloud, and asked Kettner to clarify. That sentence states: “However, for purposes of calculating the annual required contribution (ARC), the System uses the aggregate cost actuarial funding method, which does not identify or separately amortize unfunded actuarial liabilities.” Kettner explained that the county is using a different approach in its calculations to determine an annual required contribution to the pension plan, compared to what’s required as a GASB disclosure.

Smith indicated that he had other questions and comments, but he understood that Kettner’s scope was limited to the report of financial statements, not to the actual financial condition of the county.

Commissioner Kent Martinez-Kratz (D-District 1).

Andy LaBarre (D-District 7) asked Pete Collinson to elaborate on his remarks about the county’s fund balance.

Collinson noted that for many years, the fund balance was around $4 million, which would barely cover more than a couple of weeks of operating costs, he said. Former county administrator Bob Guenzel had tried to add to it every year, to build the fund balance slowly. In the last couple of years, the growth in the fund balance has been much greater, he said, from about $7 million to the current $16.8 million. [According to data provided in the CAFR, the general fund balance grew from $7.4 million in 2003 to $9.7 million in 2009, then jumped dramatically to $15.3 million in 2010.] Collinson called it a good surprise to reach that amount.

Yousef Rabhi (D-District 8) called the CAFR interesting, but noted that “the weeds can get tall pretty quick.” He was glad the county has a staff that’s “able to wade through those weeds” and provide answers to questions that commissioners might have. The work that the staff does is very valuable, he said.

Later in the meeting, Dan Smith made some additional comments on the CAFR, reflecting more on the county’s financial condition. He praised the staff, saying that even though many people were involved, the documents were unified with a consistent style that made it seem as though the same person wrote it.

Smith highlighted page 178 of the CAFR, with a chart comparing the county’s principle taxpayers in 2003 through 2012. [.pdf of Washtenaw County's top taxpayers] The county has a much broader tax base now than in 2003, he noted. Nine years ago, the top 16 taxpayers made up 9.89% of the county’s tax base. Now, that percentage is down to 6.88%. In 2003, several taxpayers represented more than 1% of the tax base. In 2012, no taxpayers are paying more than 1% of the county’s tax base. “I think that bodes well for the long-term future of the county,” Smith said.

The county’s top five taxpayers in 2003 were Pfizer, Visteon, General Motors, Detroit Edison and MichCon. By 2012, three of those – Pfizer, Visteon and General Motors – were not even in the top 16. The top five taxpayers in 2012 were Detroit Edison, McKinley Associates, Toyota, MichCon and Ford.

On pages 184-185, Smith pointed to a list showing the total debt across the entire county, including school districts, libraries, municipalities and other government entities. [.pdf of direct and overlapping debt table] The debt totals about $1.3 billion. If you divide that amount by the number of county residents, it works out to just $3,773 per person, Smith noted. If it was divided by parcels or taxpayers, that number would go significantly higher, he added. [Debt-per-capita is a factor weighed by bond rating agencies.]

Smith also highlighted page 23 of the audit for the office of the water resources commissioner. The office uses a straight-line amortization schedule of 50 years for its infrastructure. He noted that some of the county drains are well beyond that age, so there’s a building infrastructure deficit. It’s already clear that there are problems with roads, he said, and some of the county’s drains will likely start to collapse and fail as well. He pointed to a situation in Superior Township last year where a drain had not been maintained and it slowly sedimentized. The 50-year amortization schedule roughly equates to the lifespan of the county’s drainage infrastructure, Smith noted.

In wrapping up the discussion of financial reports, county administrator Verna McDaniel thanked the staff for their work. She thanked Dan Smith as well “for appreciating the CAFR to the extent that he does.” She joked that because she knew he would read the CAFR closely, “I read this darn thing front-to-cover myself.”

Outcome: This was not a voting item.

Jobs for Mental Health Services

A resolution was on the April 3 agenda to create 39 new jobs and reclassify 76 others for Washtenaw County’s community support and treatment service (CSTS) department.

CSTS is a county department employing about 300 people, but it receives most of its funding from the Washtenaw Community Health Organization, a partnership between the county and the University of Michigan Health System. The WCHO is an entity that receives state and federal funding to provide services for people with serious mental illness, developmental disabilities and substance abuse disorders. WCHO contracts for services through CSTS. Although staffing has remained fairly constant in the last five years, demand for services has increased by about 40%. These jobs are being created to provide the capacity to meet that demand.

The new jobs include client service managers, support coordinators, mental health professionals, mental health nurses, management analysts, administrators and a staff psychiatrist. All of the reclassified positions are client service managers. Of the 39 new positions, 30 of them are union jobs, represented by AFSCME.

According to a staff memo, the changes will add $14,255,535 to the CSTS 2012-2013 budget, bringing the budget total to $41,822,489. Of that, WCHO is providing $38,692,815, including revenues from grant pass-throughs. Other revenues include $165,190 from the Haarer bequest and $246,846 from a contract with the Washtenaw County sheriff’s office.

Jobs for Mental Health Services: Board Discussion

Yousef Rabhi (D-District 8) said he supported the move. There’s a lot of need that often goes unmet in other communities, but the county rises up to the challenge, he said. CSTS has been seeing more customers, even though its staffing level has been relatively flat, he said.

The need for more staff is crucial, Rabhi said, because it means better service for people in the community. It will also mean a net increase in union jobs, he noted, which he said he is very supportive of. He also praised the fact that some of the people who have been doing these jobs on a temporary basis will now have permanent, full-time positions. “And as a temporary employee, I can tell you that being a temporary employee is no fun.” [Rabhi works for the city of Ann Arbor's natural area preservation (NAP) program.]

From left: County commissioners Yousef Rabhi (D-District 8) and Andy LaBarre (D-District 7). Both represent districts in Ann Arbor.

Even in the face of shrinking government, Rabhi said, this proves that government is still relevant and necessary for this kind of service, because there is no private market to provide it. “We need to be there for those folks,” he said.

Felicia Brabec (D-District 4) said she wanted to echo Rabhi’s comments. It’s an important move for mental health stability in the community, for residents as well as workers. She asked for an explanation of where the money to fund these positions is coming from.

Tim Florence, CSTS medical director, reported that WCHO is the funder for these kinds of mental health services, and CSTS is the service provider. No county general fund dollars are being used.

Ronnie Peterson (D-District 6) wondered if the additional staff would be serving a specific geographical region. He said he’s interested in “providing services where services are needed.” Florence replied that WCHO/CSTS are responsible for providing all medically necessary services for county residents on Medicaid. Recently there has been a push to engage in more outreach, he said, especially in areas where there might be opportunities to expand services. Those areas include the 48197 and 48198 zip codes, he said. [That's a reference to the Ypsilanti area, which is part of Peterson's district.] But the services are provided to anyone in the county, he added, regardless of location.

Andy LaBarre (D-District 7) asked Florence to explain the restructuring that occurred in 2002, and wondered if there would be another restructuring locally as part of a broader statewide initiative. It was his understanding that Washtenaw County is being left untouched by a statewide restructuring, “and I think that speaks to our strength in terms of this service provision,” LaBarre said.

Florence explained that the WCHO is the community mental health service provider for this county, going back to the year 2000. The county board and University of Michigan formed this freestanding entity to provide mental health and substance abuse services to people with Medicaid, as well as to the uninsured. In 2002, there was a change made by the state Dept. of Community Health, which provides funding to WCHO. The state created PIHPs – pre-paid inpatient health plans – which basically set up a managed-care structure for these services, Florence said. The WCHO became the PIHP for Washtenaw County, as well as for other surrounding counties. The WCHO contracted with CSTS, which actually provided the services.

Now, the WCHO is trying to ensure that CSTS has the tools it needs – including administrative resources – to deliver these services, Florence said. There are some functions previously provided by WCHO that will move over to CSTS, he explained. Regarding the broader statewide restructuring, the number of PIHPs has decreased, he said, but Washtenaw County has been untouched by that change. He felt the county could help inform the state about ways to integrate mental and physical healthcare, which he called a wave of the future.

Florence noted that CSTS is serving about 40% more people today than it was 5 years ago, but staffing hasn’t increased.

Dan Smith (R-District 2) expressed concern about adding to the county’s employee base. The county isn’t close to being out of the woods financially, he said, and in the not-too-distant future there will be about $250 million impacting the county’s bottom line. [The reference was to an upcoming change in how pension and retirement healthcare liabilities will be accounted for on the county's financial statements.]

The current budget is based on continued declines in tax revenues, he noted. With the additional CSTS jobs, plus the two jobs added in information technology and water resources [on a vote taken at the same April 3 meeting], the total county headcount will reach about 1,375. That will be the highest headcount since 2008, he said. The county could be faced with the “unsavory” prospect of letting people go, he said, which no one wants. He also noted that the employees with union positions could have various bumping rights. [A “bump” is a union term referring to reassignment based on seniority.]

“I’ll be supporting this,” Smith concluded, “but I am still very, very cautious and leery about increasing the county’s headcount at this time.”

Peterson pointed out that the funding is revenue-driven, coming from dollars that are outside of the general fund. Public health services have avenues for resources that haven’t been available before, he said. These are long-term dollars from outside the general fund, Peterson added, and that’s why he’s supporting it.

However, Peterson also noted that he had in previous years raised concerns about the creation of the WCHO. He said he’s an advocate of mental health services, but he believes only one entity should be responsible for the delivery of services. The costs should be directly related to delivering services, not for administrative overhead, he said. “There are two separate entities here,” he said. “I won’t get into how much these two separate entities cost, because I don’t want to put somebody on the spot.”

Florence explained that all services provided by CSTS are those delegated to it by the WCHO. To date, there were a limited number of services that hadn’t been delegated, however, including “front door” services like intake and assessments, as well as crisis care and 24/7 phone access. Those services will now be transferred to CSTS, he said. Peterson replied that he was glad to hear it.

Outcome: Commissioners unanimously gave initial approval to the creation and reclassification of CSTS jobs. Commissioners Alicia Ping, Rolland Sizemore Jr. and Conan Smith were absent. A final vote is expected on April 17.

New Jobs in IT, Water Resources

Final authorization to create two new jobs – in IT support and water resources – was on the April 3 agenda. The items had received initial approval on March 20, 2013.

The water resource specialist will work in the county’s office of the water resources commissioner, Evan Pratt. The job is authorized at a salary range between $30,515 to $40,253. According to a staff memo, the position is needed due to heavy drain construction activity and an increase in soil erosion application inspections. The job is described as a revenue-generating position, bringing in an estimated additional $41,337 in each of the first three years, and a minimum of $15,000 annually after that. The staff memo indicates that the office has identified reductions within its budget to offset the increased cost of the position.

Pratt had attended the March 20 meeting and told commissioners that the construction activity is primarily in the city of Ann Arbor, which is paying for the work. He had described the change as “budget neutral,” saying this was the most cost-effective way to proceed, by shifting some responsibilities elsewhere within his office.

The IT system support technician was authorized at a salary range between $37,464 to $52,355. According to a staff memo, the new position is needed to provide back-up for the IT help desk and other staff support. It will be funded from IT contracts and a structural reduction of $32,647 in the tech plan appropriation.

Outcome: The creation of two jobs in IT and water resources won unanimous final approval, without discussion. Three commissioners – Alicia Ping, Rolland Sizemore Jr. and Conan Smith – were absent.

Public Transit: Dissolving The Washtenaw Ride

Taking a step officially to end an effort that stalled last year, commissioners were asked to give initial approval to dissolve a countywide public transit authority known as the Washtenaw Ride.

The Act 196 authority, created in mid-2012 and spearheaded by the Ann Arbor Transportation Authority, never gained traction and was for all practical purposes ended late last year when the Ann Arbor city council voted to opt out of the transit authority at its Nov. 8, 2012 meeting. Of the 28 municipalities in Washtenaw County, the city of Ypsilanti is the only one that hasn’t opted out.

Commissioner Dan Smith (R-District 2).

The April 3 resolution was similar to one that county commissioner Dan Smith (R-District 2) had considered bringing forward in November of 2012, though he decided not to pursue dissolution at that time. [See Chronicle coverage: "End of Road for County Transit Effort?"] The April 3 resolution would rescind the board resolutions that created the transit authority, and request that the state legislature also take action to dissolve the Washtenaw Ride, in accordance with Attorney General Opinion #7003. That AG opinion stated that “the dissolution of a transportation authority organized under the Public Transportation Authority Act requires an act of the Legislature and may not be accomplished by the unilateral action of the city in which it was established.” [.pdf of AG opinion 7003]

The county’s role in creating the transit entity had been laid out in a four-party agreement with Ann Arbor, Ypsilanti and the AATA, which commissioners approved on Aug. 1, 2012 in a 6-4 vote. Subsequent revisions involving the other entities resulted in the need for a re-vote by the county board, which occurred on Sept. 5, 2012.

There are two other transit efforts now under way. Washtenaw County is part of a southeast Michigan regional transit authority (RTA) created by the state legislature late last year. The RTA was formed to coordinate regional transit in the city of Detroit and counties of Wayne, Macomb, Oakland and Washtenaw.

Separate from the RTA effort, the AATA has been meeting with representatives of the county’s “urban core” communities to discuss possible expanded public transit within a limited area around Ann Arbor. It would be a smaller effort than the previous attempt at countywide service. The AATA hosted a meeting on March 28 to go over details about where improvements or expansion might occur, and how much it might cost. [See Chronicle advance coverage: "Costs, Services Floated for Urban Core Transit."]

Outcome: The initial vote to dissolve The Washtenaw Ride was approved unanimously, without discussion. Three commissioners – Alicia Ping, Rolland Sizemore Jr. and Conan Smith – were absent. A final vote is expected on April 17.

Public Transit: Regional Transit Authority (RTA)

The issue of public transit was also raised later in meeting, during one of the opportunities for communications from commissioners. Ronnie Peterson asked about the regional transit authority (RTA): When was the board going to discuss the county’s role in that effort, or in any alternative approaches to public transit?

Yousef Rabhi replied that he had attended the recent meeting of “urban core” communities, facilitated by the Ann Arbor Transportation Authority. The group – which included representatives from Ann Arbor, Ypsilanti, Ypsilanti Township, Pittsfield Township and other municipalities – talked about how to fund and govern expanded public transit. He noted that the Act 196 authority “did not work out the way most people had hoped, so we’re looking at new ways of funding it.”

Rabhi also hoped the RTA had a role to play, and said he was working with the county’s representatives on the RTA board – Richard Murphy and Liz Gerber – to make sure the opportunities for this county are fully explored under the new RTA structure.

Peterson asked whether the county board needed to take any action, or will there be any discussion about their involvement in the RTA or in any alternative to the RTA? Rabhi replied that the county’s involvement is governed by the state law that created the RTA. At this point, Washtenaw County is part of the RTA and the county board doesn’t need to take any action. The RTA board’s first official meeting is on April 10 in Detroit, he said, although the board met informally last month. Rabhi said he attended that meeting as well, and was the only elected official there from the four-county region and Detroit. Compared to other RTA board members, the Washtenaw County representatives have a lot of background and experience in transit, he said. “They bring a different voice to the table, which I think will be valuable.”

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

The effort is being staffed by SEMCOG and other partners, Rabhi said, and has about $6 million in federal funding. The RTA board is discussing how to build sustainability within the organization and move forward.

Peterson wondered what the impact was on the AATA. It’s debatable, Rabhi replied. “I think the full implications of the legislation have yet to be determined.” He said he was working with the county’s RTA representatives and state legislators “to ensure that AATA is fully protected so that we can continue to have a robust transit system here in Washtenaw County, and potentially expand that transit system to the urban core areas.” The RTA was created to connect regions, Rabhi noted – like how to get from Ann Arbor to Detroit, and from Detroit to Mount Clemens. “But getting from Ann Arbor to Ypsilanti, that’s our task,” he said.

Responding to another query from Peterson, Rabhi said the county’s only obligation to the RTA at this point is to appoint two board members, which happened in December of 2012. [The appointments were made by the county board chair at the time, Conan Smith, and did not require confirmation by the full board.] If the RTA board decides to put a tax proposal on the ballot, or to pursue a vehicle registration fee, then voters of Washtenaw County will have an opportunity to weigh in on that, Rabhi said.

Regarding a possible transit tax to support the RTA’s efforts, Dan Smith said he wanted everyone to be clear about how that would work. If the RTA board decides to put a tax proposal on the ballot, the entire RTA region votes on it as a whole. That area – covering four counties and Detroit – has a population of over 4 million, he noted, although he added that there are fewer registered voters than that. Even so, Washtenaw County is a relatively small piece of that, he said, with a population of about 348,000 residents. So Washtenaw County voters “probably won’t have a whole lot of say-so” in the outcome of a millage vote, he said.

Andy LaBarre noted that in order for the RTA board to put a tax proposal on the ballot, a super-majority of that board would need to approve it. There’s also the option for a single county veto, he said. For example, if both representatives from Washtenaw County voted against putting a tax proposal on the ballot, it wouldn’t move forward. LaBarre hoped all of this information could be clarified at a future working session.

LaBarre, who chairs the board’s working sessions, continued by telling Peterson that the topic of the RTA will be on the agenda for a working session in August or September. By that time, he hoped they would have more information about what the RTA intends to do, so that the county board can talk about more specific roles that Washtenaw County can play.

Peterson said he appreciated Rabhi’s involvement in support of regional transit, but felt it was important to have a discussion about this issue by the full board.

Public Hearing for Urban County Plan

Commissioners were asked to set a public hearing for April 17, 2013 to get input on the Washtenaw Urban County‘s five-year strategic plan through 2018 and its 2013-14 annual plan. The hearing will be held at the county board of commissioners meeting at 6:30 p.m., in the boardroom of the county administration building at 22o N. Main St. in Ann Arbor.

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: Authorization to set a public hearing on April 17 won unanimous approval, without discussion.

Communications & Commentary

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

Communications & Commentary: Retirement System

During the time set aside for liaision reports, Dan Smith (D-District 2) gave a brief update on the late March meeting of the Washtenaw County Employees Retirement System (WCERS) commission. He noted that the stock market is doing very well, and that has had a positive impact on the balances in the WCERS account. The commission is starting to begin the discussion about doing some explicit inflation hedges, he said. There’s a concern that in a few years, inflation might start to inch up a bit, and at this point there are no explicit hedges against that.

Smith also reported that there had been a discussion about possible PA 728 pension change requirements in the recently approved labor contract.

Smith was alluding to an issue related to the precedent-setting agreements reached in mid-March with 15 of Washtenaw County government’s 17 bargaining units. The new contracts, approved by the board on March 20, aimed to protect unions before Michigan’s right-to-work law took effect on March 28, and cut legacy costs for the county. All but one of the new agreements run for more than 10 years, through Dec. 31, 2023.

The issue raised at the WCERS meeting was whether the process of securing new contracts violated Public Act 728 of 2002. In relevant part, PA 728 states [emphasis added]:

A system shall provide a supplemental actuarial analysis before adoption of pension benefit changes. The supplemental actuarial analysis shall be provided by the system’s actuary and shall include an analysis of the long-term costs associated with any proposed pension benefit change. The supplemental actuarial analysis shall be provided to the board of the particular system and to the decision-making body that will approve the proposed pension benefit change at least 7 days before the proposed pension benefit change is adopted. For purposes of this subsection, “proposed pension benefit change” means a proposal to change the amount of pension benefits received by persons entitled to pension benefits under a system.

The county’s new labor contracts state that employees hired after Jan. 1, 2014 will participate in a defined contribution retirement plan, instead of the current defined benefit plan – the Washtenaw County Employees’ Retirement System (WCERS). In defined benefit plans, retirees receive a set amount per month during their retirement. In defined contribution plans, employers pay a set amount into the retirement plan while a person is employed. The most common defined contribution plan is the 401(k). Similar changes in retiree healthcare plans will also affect new employees.

Although current employees will keep their defined benefit plan, anyone hired before Jan. 1, 2014 – including current employees – will be offered a one-time opportunity to transfer their WCERS employee account to the newly created defined contribution system. That decision must be made within a window between Jan. 1, 2014 and Feb. 28, 2014.

The county did not conduct a supplemental actuarial analysis related to these new contracts. Dan Smith, who cast the lone vote against the contracts, had cited a lack of information about the impact of the changes as one reason why he didn’t feel comfortable supporting the agreements. From The Chronicle’s report of the March 20, 2013 meeting:

A 10-year contract “severely binds future boards and dramatically eliminates the flexibility that they have to respond to situations that may face them seven or eight years down the road.” There are some benefits to that as well, [Dan] Smith noted, but he’s not able to find enough data or information that would make him comfortable with that length of time. It would be different with a two-year contract, which gives the county the chance to respond to changing conditions, he noted. With a 10-years contract and the unknowns surrounding the costs and benefits of the various provisions, “I’m just not comfortable moving forward with that at this time.”

D. Smith also cited concerns about legal questions “that continue to nip away at this.” He wished the legislature would just leave this issue alone, but instead they continue to pick at it “week after week after week.” He didn’t know how it will play out, but “I do know that if we did this contract in the traditional way … we wouldn’thave a bull’s-eye on our back for that.”

Responding to a follow-up query from The Chronicle, county administrator Verna McDaniel stated via email that the county had sought outside legal counsel on the issue. She indicated that the county’s position is: There was no need for an actuarial analysis because no changes were made to the existing pension benefits, and the law does not require an analysis for the new defined contribution system that will be offered to employees hired after Jan. 1, 2014.

Communications & Commentary: Retreat Follow-up

Ronnie Peterson (D-District 6) asked about the follow-up to a board retreat held on March 7. [See Chronicle coverage: "County Board Priorities Emerge at Board Retreat."] He noted that the board has set a course for the next 10 years on one of the budget’s largest components – labor costs. The 10-year contracts are rare in the state, he noted, but now the other budget components must be put in place for the county’s long-term stability. [For background on those labor agreements, see: "New Labor Contracts Key to County Budget"]

Yousef Rabhi (D-District 8) said he has received a report from the retreat’s facilitator, Mary O’Hare, but he hasn’t had a chance to review it yet so he hasn’t sent it to other commissioners. He plans send it out and possibly schedule a presentation on it. Rabhi added that it’s essential to have another retreat and a more focused discussion. That will likely happen in May, he said.

Andy LaBarre (D-District 7), chair of the board’s working sessions, reported that he would send out a revised schedule of upcoming sessions, and asked commissioners to let him know if there were topics they’d like to discuss.

Peterson said he hoped there would be time at the retreat for commissioners to get to know each other and learn about their priorities. Rabhi replied that he’d gotten feedback from a few commissioners, who felt that the last retreat wasn’t focused enough on the board’s priorities. So the format for a second retreat will be different, he said, with more opportunity for commissioners to share their thoughts.

Communications & Commentary: Ann Arbor DDA

Yousef Rabhi (D-District 8), one of the commissioners representing Ann Arbor, told the board that he wanted to make everyone aware of discussions happening at the Ann Arbor city council regarding funding for the Ann Arbor Downtown Development Authority. The council’s action could have implications for the county, he said, so he wanted to put it on their radar.

Commissioner Kent Martinez-Kratz (D-District 1), whose district covers Chelsea and other parts of the county’s west side, asked Rabhi to elaborate. What might the implications be for the county?

Rabhi said his understanding of the proposal is that the funding mechanism would change so that the DDA would capture fewer tax revenues in its district, and more dollars would come back to the county. The downside, he added, is that there would be less money for the DDA to do their work in downtown Ann Arbor. It’s just something to be aware of, Rabhi said.

For Chronicle coverage related to the proposed Ann Arbor DDA ordinance changes, see: “Planning, DDA: City Council to Set Course?” “DDA Tax Capture Change Gets Initial OK” and “DDA Ramps Up PR after First Council Vote.”

Communications & Commentary: Land Bank

Ronnie Peterson reported that he had asked county administrator Verna McDaniel to be involved directly with the new land bank committee. He’s also asked that she extend an invitation to communities that have been greatly impacted by the economic downturn, with neighborhoods that have seen home values drop – including Ypsilanti, Ypsilanti Township and Superior Township. He has asked that the meetings of the land bank committee be public, so that anyone can attend.

By way of background, at its March 20, 2013 meeting, the board voted to form a committee that will explore the feasibility of creating a land bank. The resolution named three people to the committee: Peterson, county treasurer Catherine McClary, and Mary Jo Callan, director of the county’s office of community & economic development. The committee is directed to report back to the board by Aug. 7, 2013.

A land bank is a mechanism for the county to take temporary ownership of tax- or mortgage-foreclosed land while working to put it back into productive use. “Productive use” could mean several things – such as selling it to a nonprofit like Habitat for Humanity to rehab, or demolishing a blighted structure and turning the land into a community garden.

Communications & Commentary: Waste Knot Awards

Yousef Rabhi highlighted the upcoming annual Waste Knot awards, on Thursday, April 11 from 5-7 p.m. at Weber’s Inn. The Waste Knot program encourages businesses and organizations to increase waste reduction and recycling activities.

Responding to a follow-up query from The Chronicle, Jeff Krcmarik – the county’s environmental supervisor – reported that this year the county is also partnering with the Community Partners for Clean Streams and recognizing the 2012 Environmental Excellence Award winners. The event’s guest speaker will be Josh Bloom, a building contractor who specializes in LEED-certified buildings. Locally, Bloom designed and built the new LaFontaine auto dealership in Dexter.

Communications & Commentary: Thomas Partridge

The only speaker during public commentary was Thomas Partridge, who criticized commissioners for not adopting a comprehensive, people-oriented agenda that focuses on the most vulnerable people in the county, including the disabled, senior citizens, mothers with children, and everyone who suffers from the difficult economic climate. Yet meeting after meeting, commissioners bring county managers and outside contractors, like the auditors, to make presentations, he said, while not sending resolutions to the state legislature calling attention to the waste of requiring annual audits. There are many unmet needs, he said, including needs for affordable housing, and accessible public transportation to that housing.

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

Absent: Alicia Ping, Rolland Sizemore Jr., Conan Smith.

Next regular board meeting: Wednesday, April 17, 2013 at 6:30 p.m. at the county administration building, 220 N. Main St. in Ann Arbor. The ways & means committee meets first, followed immediately by the regular board meeting. [Check Chronicle event listings to confirm date.] (Though the agenda states that the regular board meeting begins at 6:45 p.m., it usually starts much later – times vary depending on what’s on the agenda.) Public commentary is held at the beginning of each meeting, and no advance sign-up is required.

The Chronicle could not survive without regular voluntary subscriptions to support our coverage of public bodies like the Washtenaw County board of commissioners. Click this link for details: Subscribe to The Chronicle. And if you’re already supporting us, please encourage your friends, neighbors and colleagues to help support The Chronicle, too!

The council took its vote at a special meeting held on March 25, 2013. The AFSCME union voted to approve the contract on March 21, according to Robyn Wilkerson, the city’s human resources director.

A staff memo accompanying the council’s resolution indicates the city’s intention by July 2014 to offer an alternative retirement plan to employees. It would be different from the current plan, which is essentially a defined benefit plan. New AFSCME hires would automatically be included in that alternative retirement plan.

The negotiated contract is effective immediately and runs through Dec. 31, 2017. The current contract, which the new contract replaces, had been set to expire on Dec. 31, 2013. Michigan’s right-to-work legislation – passed in the December 2012 lame duck session – takes effect on March 28, 2013, which is 91 days after the conclusion of the legislative session. [.pdf of enrolled House Bill 4003] The right-to-work legislation prohibits making financial support of a union a condition of employment. So some local entities – including the Ann Arbor Transportation Authority [on Jan. 13, 2013] and Washtenaw County [on March 20, 2013] – have come to new agreements that would preserve agency-fee type arrangements for the duration of the contract.

Comparatively, the city’s slightly less than five-year agreement with AFSCME is shorter than those ratified by the AATA and by Washtenaw County with several of its unions. The longer-term contracts for those organizations were for as long at 10 years.

According to the staff memo accompanying the resolution approved by the city council, the overall wage increase in the AFSCME city contract is 1% in January 2014, 0.5% in July 2014, 1.5% in January 2015, 1% in January 2016 and 1% in January 2017. This contract also includes a revised wage table with lower step increases for new hires effective Jan. 1, 2015.

The new city contract includes AFSCME’s acceptance of a change in pension board composition – which was approved by the voters in November 2011. Under the charter amendment approved by voters, the composition of the 9-member pension board is: (1) the city controller; (2) five citizens; (3) one from the general city employees; and (4) one each from police and fire. According to the agreement, the AFSCME bargaining unit will have the ability to provide candidates and input to the mayor on citizen representatives.

New hires would participate in any alternate retirement plan that might be approved by the council – an action that is planned for July 2014. AFSCME new hires would move to the alternate pension plan at the same time that non-union new hires move to such a plan. Wilkerson described a future plan at the council’s March 25 meeting as possibly a hybrid between a defined contribution and defined benefit plan.

An alternative retirement plan of some kind has been mooted publicly before. Most recently, on Nov. 8, 2012, the council had an item on its agenda, sponsored by Jane Lumm (Ward 2), that would have directed the city administrator to develop a defined contribution retirement plan to offer non-union employees hired after July 1, 2013. After a closed session held during that meeting, Lumm was persuaded to withdraw that resolution from the agenda.

At the council’s March 25 special meeting, Lumm called the AFSCME contract a significant step forward in that respect. She would not have supported this contract without a provision specifying the alternative pension plan, she said.

The contract approved by the council on March 25 also includes a decrease in personal time for employees on alternate shifts, and full participation in the city’s wellness incentive program.

The roughly 270 members of AFSCME make up about 40% of the total city work force. Members include front-line employees in utilities, solid waste, administrative support, forestry, inspection, streets, facility maintenance, snow plowing, signs and signals.

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

Caryette Fenner, president of AFSCME 2733, the county’s largest bargaining unit, at the Washtenaw County board’s March 7, 2013 budget retreat. Her union had reached a tentative agreement with administration earlier that day, which was ratified by union members on March 13 and approved by the county board on March 20.

The majority of contracts run through Dec. 31, 2023 and are the longest-term labor agreements ever authorized by the Washtenaw County government, which employs about 1,300 workers. One of the unions agreed to a shorter-term contract: The contract for AFSCME 3052 lasts five years, through Dec. 31, 2017.

Typically, such agreements last two to five years. About 85% of county workers belong to a union.

In broad strokes, the agreements provide for annual wage increases, a cap on employee healthcare contributions, and the elimination of “banked leave” days. Banked leave days have been used in recent years to help balance the budget by cutting labor costs. The days are unpaid, but don’t affect retirement calculations.

Some of the major changes relate to benefits for employees hired after Jan. 1, 2014. Those employees will participate in a defined contribution retirement plan, compared to the current defined benefit plan – the Washtenaw County Employees’ Retirement System (WCERS). In defined benefit plans, retirees receive a set amount per month during their retirement. In defined contribution plans, employers pay a set amount into the retirement plan while a person is employed. The most common of these defined contribution plans is the 401(k).

Many of the details in the contracts match the agreement reached with AFSCME 2733, the county’s largest bargaining unit, with about 650 members. Highlights from the AFSCME 2733 agreement include:

• Restoring 3.85% to an employee’s annual salary in 2014 by eliminating banked leave days. In addition, employees will receive a 2% non-structural salary increase.
• In 2015, there will be a 1% salary increase if county property tax revenues do not rise. However, if tax revenues do increase, employees will receive a salary increase of either 2% (if revenues increase by up to 4%) or 3% (if revenues increase by 5% or more).
• Employees will receive 2% salary increases in 2016 and 2017. The 2016 increase will be structural; the increase in 2017 will be non-structural.
• The remaining years through 2023 alternate in this same three-year pattern of (1) formula increases tied to tax revenues, followed by (2) a 2% structural increase and (3) a 2% non-structural increase.
• Current employees will remain in the county’s defined benefit retirement plan, unless they choose to transfer into a defined contribution plan.
• Employees hired after Jan. 1, 2014 will participate in a defined contribution retirement plan, with each employee providing 6% pre-tax contributions that are matched by 6% from the county. Contributions will increase to 7% in 2016 and 2017, and to 7.5% in 2018 through 2023. Vesting for employer contributions will occur over several years, with workers becoming fully vested after 10 years of employment.
• For current employees, contributions to the Washtenaw County Employees’ Retirement System (WCERS) – the defined benefit plan – will be capped at 10% in 2014 and 2015. That cap will be lowered to 9% in 2016 and 2017, 8.5% in 2018 and 2019, and 8% in 2020 through 2023.
• The county will adopt state-mandated “hard caps” on health care contributions by public employers. Current workers will pay $75 per month in medical premium-sharing.
• Workers hired after Jan. 1, 2014 will have negotiated health care benefits. Their retirement health care will be handled through retiree health reimbursement accounts (RHRAs), with staggered contributions by the county based on years of employment.

The March 20 vote by commissioners came after about 90 minutes in closed session near the start of the board’s ways & means committee meeting, for the purpose of discussing labor negotiations. The vote to go into closed session was 8-1, with dissent by Rolland Sizemore Jr. (D-District 5), who did not state any reason for his no vote.

It was the fourth consecutive meeting that included a lengthy closed session on this topic, as the administration has been conducting accelerated negotiations with its union to reach a new contract before March 28. That’s the date when Michigan’s right-to-work legislation – enacted late last year – takes effect. The law will make it illegal to require employees to support unions financially as a condition of their employment. Labor agreements in place prior to March 28 will not be affected by the law. Most of the previous contracts with the county’s labor unions were set to expire on Dec. 31, 2013.

At the board’s Feb. 20, 2013 meeting, commissioners had given final approval to a resolution opposing the legislation, with a clause that directed the county administration to renegotiate union contracts. The resolution stated a “goal of reaching four (4) year agreements to protect and extend each bargaining unit’s union security provisions, as well as enter into a letter of understanding separate from the existing collective bargaining agreements for a period of ten (10) years.”

That was an approach taken by other institutions statewide, including the Ann Arbor Transportation Authority. [See Chronicle coverage: "AATA OKs Labor, Agency Fee Accords"] However, the county administration and union leaders ultimately felt that the strategy of a separate letter of understanding would be more vulnerable to legal challenges. They opted instead for a longer-term labor agreement and no separate letter of understanding.

The administration and AFSCME Local 2733 reached a tentative agreement on March 7, which union members ratified on March 13. Other union bargaining units subsequently ratified similar agreements. However, the ratified agreements differed slightly from the version that had been shown to commissioners at their most recent closed session on March 6, so another closed session was held on March 20 to go over those changes.

Commissioner Ronnie Peterson (D-District 6) abstained on voting for two contracts – AFSCME Local 2733 and AFSCME Local 3052 – citing a relationship with the parent organization of these local units. The vote on those two contracts was 7-1, with Dan Smith (R-District 2) dissenting. The vote covering the other four union contracts was 8-1, also with dissent by Dan Smith.

The bargaining units that struck new deals are:

• AFSCME (American Federation of State, County and Municipal Employees) Local 2733 Units A, B, C, Juvenile Division, and Juvenile Detention. [.pdf of AFSCME 2733 contract summary]
• AFSCME Local 3052 General Supervisors and Juvenile Division Supervisors. [.pdf of AFSCME 3052 contract summary]
• Assistant Prosecutors Association Units I & II. [.pdf of APA contract summary]
• Public Defenders Association Units I & II. [.pdf of PDA contract summary]
• Michigan Nurses Association Units I & II. [.pdf of MNA contract summary]
• T-POAM (Technical, Professional and Officeworkers Association of Michigan) Units I & II – District Court employees. [.pdf of T-POAM contract summary]

A similar agreement was approved for the county’s non-union employees. [.pdf of non-union agreement] The vote on that agreement was unanimous. The two bargaining units that did not negotiate new contracts – the Police Officers Association of Michigan (POAM) and Command Officers Association of Michigan (COAM) – are exempt from the right-to-work law.

Several commissioners highlighted various aspects of the new contracts, most prominently the shift to a defined contribution system as a way to eliminate legacy costs for future employees. Conan Smith (D-District 9) said he supported the contracts, but expressed disappointment at the move to a defined contribution approach and the impact it would have on employees. Dan Smith objected to the length of the contract, saying it severely constrains future boards and their flexibility to deal with whatever events might occur down the road.

These new agreements will be a factor in the budget that’s being developed for 2014 and 2015. The county administration has projected a $24.64 million general fund deficit over a four-year period from 2014 through 2017. A much smaller general fund deficit of $3.93 million is projected for 2014, but county administrator Verna McDaniel hopes to identify $6.88 million in structural changes for that year – a combination of new revenues and cuts in expenditures – in order to eliminate the cumulative deficit going forward. When McDaniel briefed commissioners on budget preparations at their Jan. 16, 2013 meeting, she indicated a desire to find $2.62 million in reductions to employee compensation and benefits.

For background on the county’s unions, see Chronicle coverage: “County Board Briefed on Labor Issues.” Most of the current contracts were authorized in September of 2011.

This report was filed from the boardroom of the county administration building at 220 N. Main St. in Ann Arbor. More detailed coverage will follow.

The Chronicle relies on regular voluntary subscriptions to support our coverage of local government and civic affairs. Click this link for details: Subscribe to The Chronicle. And if you’re already supporting us, please encourage your friends, neighbors and colleagues to help support The Chronicle, too!

Washtenaw County commissioners Ronnie Peterson (D-District 6) and Yousef Rabhi (D-District 8), who serves as board chair, talk before the board’s March 6, 2013 meeting. (Photos by the writer.)

This was the third consecutive meeting that’s included a lengthy closed session on this topic, as the administration has been conducting accelerated negotiations with its union to reach a new contract before March 27. That’s the date when Michigan’s right-to-work legislation – enacted late last year – takes effect. At the board’s Feb. 20, 2013 meeting, commissioners gave final approval to a resolution opposing the legislation, with a clause that directed the county administration to renegotiate union contracts.

Several union leaders attended the March 6 meeting. However, they did not formally address the board, and left before commissioners ended the closed session.

The board took no action after emerging from the closed session. The new long-term agreements are expected to be brought forward for a vote at the board’s March 20 meeting, and would also need to be ratified by union membership.

A new union contract is likely to have a significant impact on the county’s budget, which will be the focus of a board retreat on Thursday, March 7. Board chair Yousef Rabhi briefed commissioners on the agenda for that retreat. The discussion will focus on six key areas: (1) labor force sustainability/internal equity; (2) environmental impact and mobility in Washtenaw County; (3) economic development; (4) human services/safety net; (5) mandated service provision/resources; and (6) long-term fiscal stability.

Also impacting county operations are automatic sequestration-related federal budget cuts that were activated on March 1. Rabhi read aloud a letter from the U.S. Dept. of Housing & Urban Development, which alerted the county to an anticipated 5% reduction in HUD funding during the current fiscal year for programs supporting low-income housing and emergency assistance to the homeless, among others. The full impact of federal cuts across all county departments – including public health and the office of community & economic development – is not yet known, according to the county’s finance director.

The light agenda on March 6 included three items related to public health: (1) a move toward setting a $75 fee for the county’s training course to certify drinking water operators; (2) giving initial approval to the county public health department’s plan of organization, as mandated by the state of Michigan; and (3) making two appointments to the Washtenaw Community Health Organization (WCHO) board.

Rabhi also reported that the county’s new food policy council, on which he serves, might make a funding request soon to hire a staff member, who would help carry out the council’s work. The council was formed in 2012 to support the local food economy.

Budget Retreat

Yousef Rabhi gave commissioners a brief overview of the agenda for their budget retreat. The session is scheduled for Thursday, March 7 starting at 6 p.m. at the county administration building, 220 N. Main in Ann Arbor. It is open to the public, but will not be recorded for broadcast.

Caryette Fenner, president of AFSCME Local 2733, attended the county board’s March 6 meeting. She leads the largest union representing county employees.

Rabhi said he has invited other county elected officials to attend. The “electeds” include sheriff Jerry Clayton; county prosecuting attorney Brian Mackie; water resources commissioner Evan Pratt; treasurer Catherine McClary; clerk/register of deeds Larry Kestenbaum; and judges of the Washtenaw County Trial Court, including chief judge Donald Shelton.

The retreat will include small group breakouts focused on six broad topics that commissioners had raised during budget preparation discussions earlier this year. Those topics are: (1) labor force sustainability/internal equity; (2) environmental impact and mobility in Washtenaw County; (3) economic development; (4) human services/safety net; (5) mandated service provision/resources; and (6) long-term fiscal stability.

The group will then reconvene to debrief about the breakout work, and identify issues that require more information-gathering. They’ll also begin to set priorities for allocating resources in the 2014-2015 budget, and discuss how to engage citizens in this budget process.

The retreat is expected to last about three hours.

Fees for Water Quality Training

Commissioners were asked to give initial approval to setting a $75 fee for the county’s training course to certify drinking water operators.

Entities with drinking water supplies or places that use certain water treatment processes – like factories or schools – are required by the state to have certified operators. Until the end of 2013, the Michigan Dept. of Environmental Quality (MDEQ) reimbursed local health departments that offered these training courses, paying $75 for each certified operator who attended. Those funds will no longer be provided. The Washtenaw County public health department plans to continue offering the courses, but now needs to charge for this service.

If given final approval, the new fee would take effect on April 1, 2013. A final vote is expected on March 20.

There was no discussion on this item. Dick Fleece, the county’s health officer, attended the meeting but did not formally address the board.

Outcome: Commissioners unanimously gave initial approval to the training fee.

Public Health Plan

On the agenda was a resolution giving initial approval to the county public health department’s plan of organization, as mandated by the state of Michigan. [.pdf plan of organization]

Washtenaw County health officer Dick Fleece and Jennifer Brassow, finance administrator for the public health department.

State law requires that the county submit a plan of organization every three years to the Michigan Department of Public Health. The 103-page document outlines the county health departments legal responsibilities and authority; the department’s organization, vision, mission and values statement; community partnerships; services, locations and hours of operation; reporting and evaluation procedures; and procedures for approving the county’s health officer and medical director. In Washtenaw County, the health officer Dick Fleece, who attended the March 6 meeting. Alice Penrose serves as medical director.

Approval of the health plan is part of the state’s accreditation process for public health departments, which was put in place in 2004.

There was no discussion on this item. A final vote is expected on March 20.

Outcome: Commissioners unanimously voted to give initial approval to the public health plan of organization.

WCHO Appointments

Dennis McDougal and Jeanette Spencer were nominated to serve on the Washtenaw Community Health Organization (WCHO) board for terms ending March 31, 2016.

The Washtenaw Community Health Organization (WCHO) is a partnership between Washtenaw County and the University of Michigan Health System. Each institution appoints six members to the board. The partnership focuses on providing services to children and adults with mental or emotional health disorders, substance abuse problems or developmental disabilities.

The organization is in transition following the sudden death of Patrick Barrie, the former WCHO executive director who died in late 2012. WCHO also recently relocated its offices to the county-owned 705 Zeeb Road building in Scio Township. The group’s offices were previously located at 555 Towner in Ypsilanti.

Yousef Rabhi, the county board’s chair, reported that these were the only two applicants for these positions. There was no other discussion on this item.

Outcome: Commissioners unanimously approved the two WCHO appointments.

Communications & Commentary

During the evening there were multiple opportunities for communications from the administration and commissioners, as well as public commentary. No one spoke during the two opportunities for public commentary. Several Skyline High School students attended the meeting as part of a class assignment, and were asked by commissioners to introduce themselves. They appeared to do so only somewhat reluctantly.

Communications & Commentary: Sequestration

Yousef Rabhi read aloud a letter he’d received this week from the U.S. Dept. of Housing & Urban Development (HUD) regarding the impact of automatic sequestration-related federal budget cuts that were activated on March 1. Based on HUD’s initial analysis, the letter stated that it’s likely the formula funding for HUD programs in fiscal 2013 will be lowered by 5%, “which may affect your workforce and planning for this year, possibly beyond.” Programs that are affected include the community development block grant (CDBG), HOME, housing assistance for persons with AIDS, and emergency grants for the homeless. More details about the cuts will be forthcoming.

Rabhi said that sequestration is obviously having a direct impact on this community. He noted that earlier in the day, he participated in a “welfare simulation” with the Interfaith Council for Peace & Justice, led by the Dispute Resolution Center. He calling it an extremely eye-opening experience, reminding participants how hard it is for people just to get the money they need for food and other basic necessities. Now, as the government is cutting back even more, Rabhi said, “it’s going to get even worse.” He asked commissioners to keep that in mind as they move forward.

Responding to a query from The Chronicle during a break in the meeting, Kelly Belknap – the county’s finance director – said the overall impact of sequestration cuts isn’t yet known. Many county programs receive federal grants, either directly or as pass-through funding from the state. Department heads continue to assess the impact, but haven’t yet received detailed information about the level of cuts. The county’s public health department and the office of community & economic development are among the units that run programs supported by federal funding.

Communications & Commentary: Food Policy Council

Yousef Rabhi gave an update on the county’s food policy council, which had met earlier in the day.

By way of background, the county board had created the council at its March 21, 2012 meeting. Most of its members – including Rabhi – were appointed on June 6, 2012, when the county board also approved the council’s bylaws. [.pdf of food policy council bylaws]

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

The food council aims to support local “small and mid-sized farmers by fostering policies that encourage local food purchasing and production,” according to a staff memo. Among other activities, the council could also: recommend policy changes at the local, state and national levels; provide a forum for discussing food issues; encourage coordination among different sectors of the local food system; evaluate, educate, and influence policy; and launch or support programs and services that address local food needs.

Other food council members are Bill Alt (faith-based organization); Amanda Edmonds (urban agriculture); Dena Jaffee (food service); Liz Dahl MacGregor (citizen); Nicole Miller (emergency food system); Lindsey Scalera (education); Dayle Wright (health care); Patti Smith (human services); Jenna Bacolor (Washtenaw County public health); Nicole Chardoul (Waste management); Gretchen Hofing (nutrition); Tim Redmond (food manufacturer and distributor); Michaelle Rehmann (economic development); and Kenny Siler (rural agriculture).

At the county board’s March 6 meeting, Rabhi reported that the council is talking about its purpose and vision, and at some point soon will be bringing a proposal to the board for funding to hire someone to support the effort.

Commissioner Ronnie Peterson expressed some concern, indicating that he’d like to discuss this proposal before it’s brought forward as a formal resolution. He wondered what amount would be requested.

Rabhi replied that the council is applying for a grant from the Ann Arbor Area Community Foundation, and the county would be asked to provide matching funds. He said the amount wasn’t yet determined. Peterson clarified with Rabhi that at this point, the county had not allocated any money for the council.

Saying he wasn’t necessarily against it, Peterson wanted to have a broader discussion – possibly at a working session – to develop a process for funding projects that other commissioners might want to bring forward. Rabhi supported that suggestion.

The March 6 county board agenda also included written minutes from the food policy council’s action team meeting on Feb. 12, 2013. [.pdf of food council minutes]

Communications & Commentary: Road Commission

Commissioner Dan Smith highlighted the recent meeting of the Washtenaw County road commission, noting that the meeting minutes were included as part of the March 6 agenda. [.pdf of minutes for Feb. 5, 2013 road commission meeting] He pointed out that the commission had passed an order of determination for the Leland Acres subdivision in Northfield Township, which Smith represents as part of District 2. Owners have petitioned the road commission to repair following roads in the subdivision: Leland Drive, Trudy Lane, Avon Lane, Avon Court, Tipperary Circle, and Glengarry Court.

Smith said the process started about two years ago, and he knew the road commission had already put in a lot of work on this. He thanked the commission, saying that residents were looking forward to getting their roads back in good shape.

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

The Chronicle could not survive without regular voluntary subscriptions to support our coverage of public bodies like the Washtenaw County board of commissioners. Click this link for details: Subscribe to The Chronicle. And if you’re already supporting us, please encourage your friends, neighbors and colleagues to help support The Chronicle, too!

Diane Heidt, the county’s human resources and labor relations director, talks with Greg Dill, director of infrastructure management. (Photos by the writer.)

The resolution taking a stance against the state law was approved on a 6-2 vote, with dissent from the board’s two Republican commissioners – Dan Smith (District 2) and Alicia Ping (District 3). Felicia Brabec (D-District 4) was absent. Though Smith had stated his objections on Feb. 6, when an initial vote had been taken, there was no discussion on the item at the Feb. 20 meeting.

The resolution directed the administration to negotiate new four-year contracts “to protect and extend each bargaining unit’s union security provisions.” Current contracts with most of the 17 unions representing county employees expire at the end of 2013. New contracts, if completed before the right-to-work law takes effect in March, would not be required to comply with the new law, which makes it illegal to require employees to support unions financially as a condition of their employment.

Negotiations with the unions began earlier this month.

In other action at the Feb. 20 meeting, the board appointed Dan Smith to the Washtenaw County parks & recreation commission – the third county commissioner to be appointed to that 10-member board. Ronnie Peterson (D-District 6) raised concerns about having too many commissioners serve on that entity, noting that Smith was filling a slot designated for the general public.

Yousef Rabhi, who as board chair made the nomination, responded to Peterson’s comments, saying that he and Smith had discussed this issue – because Smith had the same concerns as Peterson. Rabhi assured Peterson that the commission will continue to provide opportunities for citizens to serve, and that the slot filled by Smith would remain designated as one for the general public for future appointments. Five members of the general public currently serve on the parks & rec commission.

In communications to the board, Rabhi noted that he planned to form a task force to explore establishing a county land bank. A land bank is a mechanism for the county to take temporary ownership of tax- or mortgage-foreclosed land while working to put it back into productive use. The board had previously voted to establish a land bank at its Sept. 1, 2010 meeting, but never took the next step of funding it or getting approval from the state. Only three commissioners from that period – Ronnie Peterson, Rolland Sizemore Jr. and Conan Smith – still currently serve on the board.

Among the other items handled at the Feb. 20 meeting included: Resolutions of appreciation for two Chelsea organizations – Purple Rose Theatre and Chelsea Lanes; a final vote to authorize borrowing up to $40 million against the amount of delinquent property taxes in all Washtenaw County jurisdictions; and final approval to add the Detroit Region Aerotropolis board to the list of boards, committees and commissions that are eligible for commissioners to receive stipend payments.

The Feb. 20 meeting was attended by several students, including nursing students from the University of Michigan who were observing the proceedings as part of a psychiatric nursing course.

Right-To-Work Response

Commissioners were asked to give final approval to a resolution opposing Michigan’s new right-to-work legislation, with a clause that directs the county administration to renegotiate union contracts. Initial approval had been given on Feb. 6, with a 6-1 vote. The dissenting vote at that meeting cast by Dan Smith (R-District 2). Absent at that Feb. 6 meeting  were Ronnie Peterson (D-District 6) and Alicia Ping (R-District 3).

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

This same approach was authorized by the Ann Arbor Transportation Authority’s board at its Jan. 17, 2013 meeting. [See Chronicle coverage: "AATA OKs Labor, Agency Fee Accords"]

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

Unions represent 85% of the 1,321 employees in Washtenaw County government, through 17 different bargaining units. The largest of those units is AFSCME Local 2733.

Several commissioners have been vocal advocates in opposition to the new law. Those views were aired on Jan. 3 with a lengthy discussion of the right-to-work issue. [Chronicle coverage: "County Board Weighs Right-to-Work Response"]

On Feb. 20, Dan Smith (R-District 2) asked that the resolution be pulled out of the consent agenda to be considered separately. There was no discussion on the item, but a separate roll-call vote was taken on it.

Outcome: On a 6-2 vote, the resolution related to right-to-work issues was passed. Dissenting were Dan Smith (R-District 2) and Alicia Ping (R-District 3). Felicia Brabec (D-District 4) was absent.

At its Feb. 6 meeting, when the resolution received initial approval, the board held a closed session that lasted nearly three hours, for the purpose of discussing labor negotiation strategy. On Feb. 20, at the end of their meeting commissioners again met with staff for a closed session on collective bargaining, which lasted about 90 minutes.

Appointments

Appointments to the Washtenaw County parks & recreation commission and the Area Agency on Aging 1B were on the Feb. 20 agenda.

From left: County commissioner Ronnie Peterson (D-District 6) and Bob Tetens, director of Washtenaw County parks & recreation.

Dan Smith, a Republican county commissioner representing District 2, was nominated to the county parks & recreation commission for the remainder of a three-year term, ending Dec. 31, 2014. He had previously served two years on that commission, through Dec. 31, 2012.

He had not been reappointed in the initial round of appointments to WCPARC that were made earlier this year. Other commissioners appointed to WCPARC at the county board’s Jan. 16, 2013 meeting were Conan Smith of Ann Arbor (D-District 9) and Rolland Sizemore Jr. (D-District 5).

In a separate resolution on Feb. 20, Thomas Miree was nominated to the Area Agency on Aging 1B for a two-year term ending Dec. 31, 2014. The resolution noted that Miree had been the only applicant for this position.

Miree had previously been appointed to the AAA 1B in December of 2011, for a two-year term. Pete Simms of the county clerk’s office, who handles the application process for the county board appointments, clarified for The Chronicle that the AAA 1B board had changed its bylaws last year so that terms for its citizen representatives – one from each county in the agency’s geographic region – would have terms ending at the same time, on Dec. 31, 2014. So the agency asked the Washtenaw County board to reappoint Miree for a new two-year term, Simms explained.

Simms said that the position had been reposted as a formality, but that Miree was the only applicant. According to the agency’s website, Miree serves as the AAA 1B board’s vice chair.

Chronicle readers might recognize Miree from previous reports about the city of Ann Arbor’s intent to put a dog park in West Park, across from the New Hope Baptist Church. Miree, a trustee with the church, had spoken during public commentary earlier this year at the city’s park advisory commission as well as at city council, advocating against putting a dog park in that location. The city ultimately decided to look for another spot for a dog park.

Appointments: Board Discussion

The opening on WCPARC was designated for the general public. That concerned commissioner Ronnie Peterson (D-District 6), who spoke at length about the importance of involving citizens on the parks & recreation commission. Peterson said his comments were not a criticism of Dan Smith – characterizing their relationship as a good one. While it’s important to have a liaison between the county board and WCPARC, Peterson cautioned against having too many county commissioners serve on WCPARC. He wanted to ensure that the position remained designated for the general public, even though it would be filled at this point by a county commissioner.

By way of background, this was the membership of the 10-member parks & recreation commission, prior to Dan Smith’s appointment:

• Bob Marans, president (general public)
• Patricia Scribner, vice president (general public)
• Nelson Meade, secretary (general public)
• Jan Anschuetz (general public)
• Janis Bobrin (general public)
• Rolland Sizemore, Jr. (county commissioner)
• Conan Smith (county commissioner)
• Evan Pratt (county water resources commissioner – mandated)
• Fred Veigel (county road commissioner – mandated)
• Vacant (general public)

At the Feb. 20 meeting, Yousef Rabhi, who as board chair made the nomination, responded to Peterson’s comments. Rabhi said that he and Dan Smith had discussed this issue – because Smith had the same concerns as Peterson. Rabhi assured Peterson that the commission will continue to provide opportunities for citizens to serve, and that the slot filled by Smith would remain designated as one for the general public.

Outcome: Commissioners unanimously approved appointing Dan Smith to WCPARC and Thomas Miree to the Area Agency on Aging 1B board.

Changes to Stipend List

At their Feb. 20 meeting, commissioners were asked to give final approval to change the board rules and regulations that they had adopted on Dec. 5, 2012. The amendment, initially approved on Feb. 6, 2013, was to change the list of boards, committees and commissions that are eligible for stipend payments, adding the Detroit Region Aerotropolis board to the list and removing the Southeast Michigan Regional Transit Authority (RTA). The stipend for service on the aerotropolis will be $100.

From left: Curtis Hedger, the county’s corporation counsel, and county board chair Yousef Rabhi (D-District 8).

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

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

At that Dec. 5 meeting, commissioners had voted to alter their compensation to receive stipend payments based on the number of meetings that a commissioner is likely to attend for a particular appointment. One or two meetings per year would pay $50, three or four meetings would pay $100, and the amounts increase based on the number of meetings. Each commissioner typically has several appointments.

In the past, commissioners had to request per diem payments for their work. Now, stipend payments will be made automatically, unless commissioners waive their stipends by giving written notice to the county clerk. According to the county clerk’s office, Dan Smith (R-District 2) is the only commissioner who has waived all of his stipends. Ronnie Peterson (D-District 6) does not receive any stipends because he was not appointed to any boards, committees or commissions.

Outcome: Without discussion, commissioners unanimously voted to approve the change in the stipend list.

Delinquent Tax Borrowing

On the agenda was a final vote to authorize borrowing up to $40 million against the amount of delinquent property taxes in all of the county’s 80 taxing jurisdictions. [.pdf of delinquent tax resolution] Commissioners gave initial approval on Feb. 6, 2013, when county treasurer Catherine McClary had been on hand to make a presentation and answer questions.

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

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

McClary did not attend the Feb. 20 meeting, and there was no discussion on this item.

Outcome: Commissioners unanimously approved the delinquent tax borrowing resolution.

Allen Creek Drain Project

Commissioners were asked to authorize backing bonds for a drain project along Miller Avenue in Ann Arbor – in the Allen Creek drainage district – with the county’s full faith and credit. The board had given initial approval on Feb. 6, 2013.

The backing is for up to $1.58 million in bonds for the project, which will be repaid through a special assessment against the city of Ann Arbor. The project is being handled by the office of the Washtenaw County water resources commissioner, led by Evan Pratt. It’s the first project brought forward by Pratt, who took office in January.

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

Pratt had attended the Feb. 6 meeting, but was not on hand for the Feb. 20 session.

Outcome: The board unanimously approved the drain project, with no discussion.

Sewer Debt Refinancing

Final approval to refinance debt for a sewer system on the county’s west side was on the board’s Feb. 20 agenda. The refinancing, which is intended to save more than $280,000 in interest payments, got initial approval at the county board’s Feb. 6, 2013 meeting. [.pdf of Feb. 20 memo and resolution]

John Axe of Axe & Ecklund, a Grosse Pointe Farms firm, is the county’s bond counsel. He attended the Feb. 20 meeting but did not formally address the board during the public portion of its meeting.

The resolution authorizes the sale of refunding bonds that would be used to pay the remaining principal on existing bonds that were sold in 2004. That year, the county sold $5.115 million in bonds to help Lyndon and Sylvan townships pay for the sewer. Of that, $2.25 million remains to be paid.

However, the bond sale now is expected to be about $990,000 – an amount that’s lower than indicated in the original Feb. 6 resolution. According to a Feb. 20 memo from county water resources commissioner Evan Pratt and Daniel Myers, director of public works, Lyndon Township has decided to pay off all of its remaining debt and will therefore not participate in the new bond sale. In addition, Sylvan Township will pay $225,000 to reduce its part of the debt.

The resolution that commissioners considered on Feb. 20 for final approval had been changed from the Feb. 6 resolution, to reflect this updated information.

The project built sewers at Cavanaugh, Sugar Loaf, Cassidy, Crooked, and Cedar Lakes. It’s funded through special assessments on property around those lakes and payments by the Sugar Loaf Lake State Park and Cassidy Lake State Corrections Facility.

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

John Axe of Axe & Ecklund, a Grosse Pointe Farms firm, is the county’s bond counsel and attended the Feb. 20 meeting. However, he did not formally address the board during the public portion of its meeting.

Outcome: The board unanimously approved the sale of refunding bonds.

Recognizing Purple Rose, Chelsea Lanes

Two Chelsea organizations – Purple Rose Theatre and Chelsea Lanes – were recognized for their support of the community at the Feb. 20 meeting. Resolutions of appreciation were brought forward by Kent Martinez-Kratz (D-District 1), whose district includes the city of Chelsea.

The Purple Rose Theatre – founded by the actor Jeff Daniels, who lives in the area – is a nonprofit professional theater located in downtown Chelsea. The resolution of appreciation cites several contributions, including the theater’s weekly Wednesday matinee held for the community, and its partnerships with local businesses and entities like the Chelsea District Library. [.pdf Purple Rose Theatre resolution]

Chelsea Lanes, a bowling alley owned by Eddie Greenleaf III and located at 1180 S. Main, was commended for its support of the SRSLY community coalition, and for hosting many community events and fundraisers. [.pdf of Chelsea Lanes resolution]

The resolutions noted that Chelsea Lanes received the Chelsea Area Chamber of Commerce’s 2012 Small Business Award, while Purple Rose Theatre received the chamber’s 2012 Large Business Leadership Award.

No one from either organization attended the Feb. 20 meeting, and there was no discussion on these items.

Outcome: The board unanimously approved the resolutions of appreciation.

3-Way Tech Agreement

Washtenaw County commissioners were asked to give final approval to amend a three-way agreement with the Ann Arbor Transportation Authority and the city of Ann Arbor.

Andy Brush, the county’s IT manager.

The three-way accord – an interagency agreement for collaborative technology and services (IACTS) – is meant to provide a way to procure and maintain common technology platforms and services centrally. Commissioners had given initial approval to the changes on Feb. 6, 2013.

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

The Ann Arbor city council approved the amendment at its Feb. 4, 2013 meeting.

Washtenaw County already provides certain IT services to other local entities – like the city of Ypsilanti, Dexter’s fire department, and the 14B District Court – although they aren’t yet parties to the IACTS agreement. Another entity that might participate in the IACTS is the Washtenaw Intermediate School District.

Andy Brush, the county’s IT manager, attended the Feb. 20 meeting but did not formally address the board.

Outcome: Without discussion, the board unanimously approved amendments to the IACTS.

Grant Funding

Three items related to grants and programs administered by the county’s office of community & economic development (OCED) were on the Feb. 20 agenda for final approval.

The items are: (1) the Michigan Works! system plan for 2013 [.pdf of 2013 MWSP]; (2) $20,000 in federal funding (Community Services Block Grant discretionary funds) to conduct a needs assessment of the New West Willow Neighborhood Association, supplemented with $5,000 in county matching funds; and (3) $20,000 in federal funding (Community Services Block Grant discretionary funds) for tax preparation services to low-income customers, in partnership with Avalon Housing, Catholic Social Services of Washtenaw County, Housing Bureau for Seniors and Women’s Center of Southeastern Michigan.

These items had received the board’s initial approval at a meeting on Feb. 6, 2013.

Outcome: Without discussion, the board unanimously approved these OCED grant-related items.

Communications & Commentary

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

Communications & Commentary: Land Bank

Yousef Rabhi (D-District 8) announced that he planned to put together a task force to “take a serious look” at establishing a county land bank. He said he wanted to make sure that commissioner Ronnie Peterson (D-District 6), who represents the Ypsilanti area, is involved in that effort, along with the county treasurer’s office and the office of community & economic development. He invited any other commissioner who wanted to participate to let him know. He said he hoped they could move quickly, because a land bank could have a potentially big impact on local communities, including on the eastern side of the county.

Conan Smith (D-District 9) expressed support, noting that the board and staff had worked on this issue a couple of years ago. Even though the economy is starting to recover nationally and across Michigan, he said, there are still struggles related to foreclosure – particularly on the county’s east side, in the Ypsilanti and Ypsilanti Township area. Those issues would be well addressed by a land bank. The challenges of structure and funding still exist, Smith said, adding that “we never were able to resolve that.” So it’s good to have a task force that could develop a strategy that meets the board’s interest as well as the interests of the county treasurer, he said.

After consulting with corporation counsel Curtis Hedger about the process for creating a task force, Rabhi indicated he would bring a formal recommendation to the board in the near future to form the land bank task force.

By way of background, a land bank is a mechanism for the county to take temporary ownership of tax- or mortgage-foreclosed land while working to put it back into productive use. “Productive use” could mean several things – like selling it to a nonprofit like Habitat for Humanity to rehab, or demolishing a blighted structure and turning the land into a community garden.

The board has made attempts in the past to start a land bank. The board actually formed a land bank in the summer of 2009. But after commissioners were unable to resolve issues related to governance and funding, they voted to dissolve the land bank in March of 2010. Only three current commissioners were on the board at that time: Ronnie Peterson, Rolland Sizemore Jr. and Conan Smith.

At its Sept. 1, 2010 meeting, the board voted to revive the land bank. However, the board never took the next step of funding it or getting approval from the state.

Commissioner Kent Martinez-Kratz (D-District 1) greets students from the University of Michigan School of Nursing who attended the county board’s Feb. 20 meeting.

For additional background, see Chronicle coverage: “Banking on a Land Bank” (July 8, 2009 board meeting); and discussions during the county board meetings on March 17, 2010, July 7, 2010 and Aug. 4, 2010.

Communications & Commentary: Students

Several students attended the Feb. 20 meeting, and were asked by commissioner Rolland Sizemore Jr. (D-District 5) to introduce themselves. They were students from Skyline High School fulfilling a class assignment, and nursing students from the University of Michigan who were observing the proceedings as part of a psychiatric nursing course. This detail drew laughs from commissioners, who appeared to appreciate the implication.

Communications & Commentary: Thomas Partridge

There was only one speaker during the two citizens participation slots at the Feb. 20 meeting – Thomas Partridge – who spoke during both opportunities for public commentary.

He raised concerns about the local impact of possible sequestration at the federal level. He called on the board to pass resolutions to recall elected officials who are neglecting their responsibilities to the most disadvantaged and vulnerable residents, and to labor unions. Among those who should be recalled, Partridge said, are Gov. Rick Snyder, Ann Arbor mayor John Hieftje, and certain members of the county board, whom he did not identify by name.

Partridge also urged the board to get serious about addressing job creation, affordable housing and affordable transportation needs.

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

Absent: Felicia Brabec.

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

The Chronicle could not survive without regular voluntary subscriptions to support our coverage of public bodies like the Washtenaw County board of commissioners. Click this link for details: Subscribe to The Chronicle. And if you’re already supporting us, please encourage your friends, neighbors and colleagues to help support The Chronicle, too!

On Feb. 20, the final vote was 8 6-2, with dissent from the board’s two Republican commissioners – Dan Smith and Alicia Ping (District 3). Felicia Brabec (D-District 4) was absent.

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

This same approach was authorized by the Ann Arbor Transportation Authority’s board at its Jan. 17, 2013 meeting. [See Chronicle coverage: "AATA OK's Labor, Agency Fee Accords"]

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

Unions represent 85% of the 1,321 employees in Washtenaw County government. Several commissioners have been vocal advocates in opposition to the new law. Those views were aired on Jan. 3 with a lengthy discussion of the right-to-work issue. [Chronicle coverage: "County Board Weighs Right-to-Work Response"]

At their Feb. 6 meeting, when the resolution received initial approval, the board also held a closed session that lasted nearly three hours, for the purpose of discussing labor negotiation strategy. On Feb. 20, commissioners again met with staff for a closed session on collective bargaining, which lasted about 90 minutes.

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

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

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

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

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

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

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

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

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

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

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

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

Right-to-Work Response

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

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

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

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

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

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

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

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

Right-to-Work Response: Public Commentary

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

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

Right-to-Work Response: Board Discussion

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

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

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

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

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

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

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

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

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

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

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

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

Smith did not formally offer the resolutions for consideration.

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

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

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

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

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

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

Delinquent Tax Borrowing

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

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

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

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

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

Delinquent Tax Borrowing: Board Discussion

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

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

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

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

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

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

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

Treasurer’s Report

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

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

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

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

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

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

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

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

Chart showing Washtenaw County investment allocations.

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

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

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

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

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

Treasurer’s Report: Board Discussion

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

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

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

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

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

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

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

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

Outcome: This was not a voting item.

Energy Alliance Accord

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

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

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

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

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

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

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

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

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

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

Energy Alliance Accord: Board Discussion

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

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

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

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

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

After-School Program Grant

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

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

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

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

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

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

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

After-School Grant Program: Board Discussion

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

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

Changes to Board Rules & Regulations

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

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

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

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

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

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

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

Board Budget Calendar & Guidelines

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

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

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

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

Community & Economic Development Grants

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

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

Community & Economic Development Grants: Board Discussion

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

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

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

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

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

Tech Agreement

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

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

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

Tech Agreement: Board Discussion

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

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

Debt Refinancing for Township Sewers

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

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

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

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

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

Miller Avenue Drain Project

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

Evan Pratt, Washtenaw County water resources commissioner.

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

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

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

There was no discussion on this item.

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

Communications & Commentary

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

Communications & Commentary: County ID Card

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

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

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

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

Communications & Commentary: Liaison Reports

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

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

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

Communications & Commentary: Introductions

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

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

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

Communications & Commentary: Public Commentary

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

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

Absent: Ronnie Peterson, Alicia Ping.

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

The Chronicle could not survive without regular voluntary subscriptions to support our coverage of public bodies like the Washtenaw County board of commissioners. Click this link for details: Subscribe to The Chronicle. And if you’re already supporting us, please encourage your friends, neighbors and colleagues to help support The Chronicle, too!

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

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

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

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

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

At the Feb. 6 meeting, Dan Smith attempted to ascertain the cost to the county of entering into these new union agreements, if they are challenged in court. Curtis Hedger, the county’s corporation counsel, said he didn’t want to speculate about possible costs. He indicated that costs could vary widely, depending on how a case plays out in court and whether it is appealed.

Smith characterized the language in the resolution as “over the top” and said it contained offensive rhetoric. He told commissioners that he had crafted two alternative versions of the resolution – one that eliminated the offensive rhetoric [.pdf of Dan Smith's alternative resolution #1], and another that removed language that was extraneous to county policy [.pdf of Dan Smith's alternative resolution #2]. However, he did not formally offer the resolutions for consideration.

Before the vote, LaBarre defended his own resolution, saying it was important to show support for the workforce and that some form of action is warranted in this situation.

The board later entered into a nearly three-hour closed session for the purpose of discussing labor negotiation strategy. The meeting adjourned at approximately 11:30 p.m.

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