Chris Haslinger (second from right), director of training for the United Association (UA) of plumbers and pipefitters, received a proclamation from the county board of commissioners at the board’s Aug. 6 meeting. They were gathering for a photo to mark the event. From left: Conan Smith, Andy LaBarre, Alicia Ping, Yousef Rabhi, Chris Haslinger, and Verna McDaniel, the county administrator. (Photos by the writer.)

The county has determined that it’s authorized to collect up to 1/10th of a mill for support of indigent veterans, without seeking voter approval. That’s because the state legislation that enables the county to levy this type of tax – the Veterans Relief Fund Act, Public Act 214 of 1899 – predates the state’s Headlee Amendment. The county first began levying this millage in 2008, and collects the tax in December. The current proposal is to levy 1/27th of a mill in December 2014, which is expected to raise about $540,887 in revenues for use in 2015.

The county’s position is that Act 88 can also be levied without voter approval to fund economic development and agricultural activities. This year, the proposal is to levy 0.07 mills in December 2014 – the same rate that was levied in 2013. It’s expected to raise an estimated $1,022,276 in property tax revenues.

Final action on these tax levies is expected at the board’s Sept. 3 meeting.

Also related to Act 88, the board approved allocations of $87,760 in Act 88 revenues that were collected in 2013, to support six projects. Four of the projects are administrated by Ypsilanti-based Growing Hope, with the remaining two projects initiated by the Michigan State University Product Center.

During the Aug. 6 meeting, commissioners approved amendments to both the Act 88 projects resolution and the resolution to levy the tax this year. The amendments directed the county’s corporation counsel to provide a written opinion about how Act 88 revenues can lawfully be used, and how the tax can be lawfully levied without a vote of the people. The amendments were brought forward by Dan Smith (R-District 2).

In other action, the board received a second-quarter budget update, with projections showing a general fund surplus of $211,920 for the year. The board also made mid-year budget adjustments, which included allocating a $3.9 million surplus from 2013 into unearmarked reserves.

Commissioners approved a new policy to guide decisions on tax increment finance (TIF) proposals, and supported revised rules and guidelines from the water resources commissioner. Those revisions relate to procedures and design criteria for stormwater management systems.

A proclamation made during the Aug. 6 meeting honored Herb Ellis Sr., the first black man to be elected to the Washtenaw County board of commissioners. Ellis was elected in 1968 and served until 1982, representing Ann Arbor. During that time he also was the first black chair of the county board. He passed away on July 10, 2014 at the age of 98.

Another resolution recognized the contributions of United Association (UA), a union of plumbers, pipefitters, sprinkler fitters, welders, and heating, ventilation, air conditioning and refrigeration (HVACR) technicians. They’re in this area from Aug. 9-15 for their 61st annual training program, and have announced a new 15-year agreement to continue the program at the Washtenaw Community College.

The Aug. 6 meeting was held one day after the Aug. 5 primary elections. At the start of the meeting, board chair Yousef Rabhi congratulated all primary candidates, and said he looked forward to working with Ruth Ann Jamnick, the winner of the District 5 Democratic primary. He quickly added “pending the general election, but I think…” – a comment that drew laughs. District 5 – which covers August Township and parts of Ypsilanti Township – is heavily Democratic. Jamnick, who prevailed in the four-way Democratic primary, will face Republican Timothy King in the Nov. 4 general election. District 5 was the only race that was contested for the county board, with incumbent Rolland Sizemore Jr. not seeking re-election. Incumbents in all other districts of the nine-member board were unchallenged in the primary.

At the end of the meeting, the board voted to enter into a closed executive session for the purpose of reviewing attorney-client privileged communication. It is one of the exemptions allowed under the Michigan Open Meetings Act.

After about 30 minutes, three commissioners returned to the boardroom – Dan Smith (R-District 2), Alicia Ping (R-District 3) and Conan Smith (D-District 9). They indicated to The Chronicle that they thought the discussion in the closed session had strayed away from the limits imposed by the OMA, and they had left the session because of that. They did not state what the nature of the discussion had been, nor the topic of the session.

Soon after, the remainder of the board emerged from the closed session, and the meeting was adjourned.

Act 88 Grants, Levy

The Aug. 6 agenda included a resolution to approve allocations to six projects, using funds from an Act 88 millage that the county levies each year. Commissioners were also asked to give initial approval to levy that tax.

Tony VanDerworp, the county’s economic development officer.

The county’s position is that Act 88 of 1913 can be levied without voter approval to fund economic development and agricultural activities. This year, the proposal is to levy 0.07 mills in December 2014 – the same rate that was levied in 2013. It’s expected to raise an estimated $1,022,276 in property tax revenues.

In previous years, the resolution setting this millage has outlined how the revenues would be allocated. The largest allocations have gone to the county’s office of community & economic development, and to the nonprofit Ann Arbor SPARK.

However, at its Nov. 6, 2013 meeting, the board adopted a new policy for allocating Act 88 revenues, drafted by Conan Smith (D-District 9). [.pdf of Act 88 policy] The policy included creating an Act 88 advisory committee to make recommendations to the board and prepare an annual report that assesses how Act 88 expenditures have contributed toward progress of goals adopted by the board. The policy allows the committee to distribute up to 10% of annual Act 88 revenues without seeking board approval. The policy also allocates up to 30% of revenues to the county office of community & economic development, which administers Act 88 funding.

This year, the 10% amounts to $91,753. Of that, $3,993 remains unallocated and will stay in the Act 88 fund balance to support future projects. Beyond that, a total of $87,760 in funding was recommended for six projects initiated by two organizations – the Michigan State University Product Center, and Ypsilanti-based Growing Hope [.pdf of staff memo]:

• $10,060 to the MSU Product Center to study the potential for enhanced food processing in Washtenaw County.
• $12,700 to the MSU Product Center to develop “MarketMaker,” a food industry business network and database.
• $20,000 to Growing Hope/Reconsider to run community education events on the Michigan Invests Locally Exemption Act and to study the potential and processes for investing locally in Washtenaw County.
• $13,000 to Growing Hope/Revalue to provide two full-day educational events to assist investors in incorporating local investment offerings into their financial plans.
• $13,000 to Growing Hope to create a study on increasing food assistance sales at farmers markets in Washtenaw County.
• $19,000 to Growing Hope to support the development of an Ypsilanti “MarketPlace,” a year-round farmer’s market, and “MarketHub,” a food distribution center serving underserved communities.

These recommendations were made to the county board by the Act 88 advisory committee. Members are: County commissioners Ronnie Peterson (D-District 6), Alicia Ping (R-District 3) and Conan Smith (D-District 9); Todd Clark, president of United Bank & Trust; and Art Serafinski, chair of the Ypsilanti Convention & Visitors Bureau board. Staff support was provided by the county’s office of community & economic development (OCED), including economic development officer Tony VanDerworp, who attended the Aug. 6 meeting along with OCED director Mary Jo Callan.

Act 88 Grants: Board Discussion

Commissioner Dan Smith (R-District 2) began the discussion by noting that he’s had some long-standing concerns about the legality of how the county is using Act 88 funds. Rather than sorting those issues out that night, he said he’d rather work with the county’s corporation counsel and come to an understanding about it.

He then brought forward an amendment for the projects resolution, requesting that corporation counsel provide the board with a written opinion about the lawful use of the sums raised under Act 88. Smith’s original proposed amendment stated:

FURTHERMORE BE IT RESOLVED that the Washtenaw County Board of Commissioners directs Corporation Counsel to provide an exhaustive written opinion, by December 31, 2014, detailing the lawful uses of sums raised under Act 88 of 1913 (MCLA 46.161), and that this opinion address in similar manner other possible interpretations.

Smith’s motion did not receive support from any other commissioners to bring it forward for discussion, so Alicia Ping (R-District 3) declared it dead due to the lack of support.

Dan Smith (R-District 2).

Conan Smith (D-District 9) and Yousef Rabhi (D-District 8) had been out of the room during this part of the meeting, and returned to their seats just after the motion had been declared dead. Conan Smith said he’d be willing to support Dan Smith’s motion. Alicia Ping (R-District 3) – vice chair of the ways & means committee, who was chairing the meeting in the absence of Ways & Means chair Felicia Brabec (D-District 4) – allowed D. Smith to reintroduce the motion. It was then supported by C. Smith.

C. Smith said there’s been a lot of confusion about Act 88, “and we face it every year.” He and D. Smith had spent a lot of time on the phone talking about the meaning of the act, he said, so “it would be really helpful to have an interpretation that we can use as we go into our granting processes and the distribution of these funds.”

At the Act 88 committee meeting that was held earlier in the day, C. Smith said, they began talking about the grants process for next year, and about how to ensure that the allocations relate specifically to the purposes of the act – “just to make sure we’re on the straight and narrow.” One way to go about it is to leave it up to the committee to determine, though none of the committee members are lawyers, he noted. He thought it would be great to have a statement to rely on. Even if it’s not possible to be definitive – because the law itself is unclear – it would be useful to know what ways the law could be interpreted, he said. C. Smith concluded that he was comfortable with the amendment.

Andy LaBarre (D-District 7) asked Curtis Hedger, the county’s corporation counsel, about what legal effect Hedger’s legal opinion would have – “what would it get us on the hook for down the road, good or bad?”

Curtis Hedger, the county’s corporation counsel.

Hedger replied that like any opinion, it would simply be his advice to the board. As policymakers, ultimately it’s the county commissioners who decide what to do, he noted. If the amendment were approved, he’d give them his best interpretation of how the Act 88 revenues can be spent. Hedger said that asking him to come up with alternative interpretations, as directed by D. Smith’s draft amendment, was a little “touchy-feely.” He added: “That would just be me speculating.”

As far as putting the county on the hook one way or another, Hedger said he didn’t think that was an issue, because it would just be an opinion.

Yousef Rabhi (D-District 8) asked what D. Smith meant by the word “exhaustive.” D. Smith replied that Hedger has already provided the board with opinions on other topics that explain how phrases could be construed in different ways. That’s what D. Smith intended by “exhaustive.” The language in MCLA 46.161 is extremely convoluted, he added, so Hedger could explain how parsing the grammar in different ways would yield different interpretations. Then it’s up to the board to decide which interpretation to use, he said.

Rabhi said he thought an opinion was simply an opinion – not a description of other opinions. He wasn’t sure it was an appropriate approach to ask for alternative interpretations. Rabhi would support asking Hedger to give the board his interpretation of the law, but it wasn’t Hedger’s job to do more than that.

C. Smith said he’d asked D. Smith to include that language in the amendment. He noted that the very first sentence of Act 88 has a semicolon in it. That sentence states:

The boards of supervisors of the several counties may levy a special tax on the taxable property within their respective counties for the purpose of creating a fund; or appropriate out of the general fund an amount to be used for advertising agricultural or industrial advantages of the state or county or any part of the state, or for collecting, preparing or maintaining an exhibition of the products and industries of the county at any domestic or foreign exposition, for the purpose of encouraging immigration and increasing the trade in the products of Michigan, or advertising the state and any portion thereof for tourists and resorters.

As an English major, C. Smith said, his interpretation of a semicolon is to stop one thought, and append another thought to it – interrelated but separate. So for the Act 88 language, he said, there might be two legitimate interpretations of the function of that semicolon. It’s important for the board, which will be allocating the Act 88 dollars, “to have some degree of comfort that we’re doing it within the parameters of legality, even if those aren’t 100% clear,” he said.

Conan Smith (D-District 9).

The courts ultimately are responsible for interpreting the law, C. Smith said. If the board asked for a legal opinion and someone then sued the county over Act 88, the board would have a document that showed the legal underpinnings for their decision – and “I would feel more comfortable with the decisions that we are making.”

Act 88 is a mess, C. Smith continued – it’s “ancient” legislation that’s been amended over the decades, making it even more convoluted. “Just knowing that we’re walking down a path that is legal – even if we’re not sure that that is the absolute right path – I think would be helpful for us on the committee to make an allocation of the funds,” he said. “What I definitely don’t want to do is to walk down a path that’s not legal.”

D. Smith said he wants to make sure there’s a very full discussion of the law’s various nuances. At the end of the day, Hedger will provide his best interpretation of the law, he added. But as part of that guidance, it’s prudent to explore other ways that it could be interpreted. It should answer as many questions as can be answered, he said, “so that this issue is put to rest once and for all.”

Rabhi said it seemed like D. Smith was trying to do Hedger’s job. He thought they should ask the person that they hired to be the county’s attorney for his opinion. If the board wants a white paper on Act 88, they should ask for that – but maybe not from Hedger, he said. Rabhi asked Hedger what he thought.

Hedger replied that after this discussion, he had a better feel for what the amendment is asking for. He said D. Smith was right – when Hedger writes legal opinions for the board, he often describes other interpretations that he doesn’t necessarily agree with. He didn’t have a problem with this approach.

Alicia Ping (R-District 3) didn’t think the amendment accurately reflected what the board wanted from Hedger. C. Smith said he’d be comfortable striking the last clause: “…and that this opinion address in similar manner other possible interpretations.” D. Smith agreed to that change.

Rabhi thanked the Smiths, saying that striking the clause would allow him to support the amendment.

The revised amendment was as follows: [strike-through reflects a clause that was struck during deliberations]:

FURTHERMORE BE IT RESOLVED that the Washtenaw County Board of Commissioners directs Corporation Counsel to provide an exhaustive written opinion, by December 31, 2014, detailing the lawful uses of sums raised under Act 88 of 1913 (MCLA 46.161), and that this opinion address in similar manner other possible interpretations.

Outcome on the amendment, as revised: It passed unanimously on a voice vote.

Outcome on main resolution, as amended: The board unanimously passed the resolution allocating Act 88 funds, without additional discussion.

After the vote, Conan Smith commented that this was the first round of competitive Act 88 grants, and the projects are really interesting. “I think they’ll be very impactful on the community,” he said. He was especially excited about the grant to Growing Hope to study how to increase the use of food stamps at the Ypsilanti farmers market, so that people who use food stamps can get better access to fresh fruit and vegetables. He encouraged everyone in the community to take a close look at these projects.

Rolland Sizemore Jr. (D-District 5) expressed some frustration about the amount of money in general that’s being spent on studies, rather than directly on projects. He thought that the Ypsilanti farmers market project should be expanded to other parts of the county.

Act 88 Levy: Board Discussion

Later in the meeting, the board was asked to consider a separate resolution that would authorize the county to levy the Act 88 tax this year.

Dan Smith brought forward a similar amendment, aimed at getting a firm understanding of the Act 88 millage:

FURTHERMORE BE IT RESOLVED that the Washtenaw County Board of Commissioners directs Corporation Counsel to provide an exhaustive written opinion, by October 1, 2014, detailing the exact mechanism under which Act 88 of 1913 taxes may be levied in excess of Article IX, Section 6 constitutional limits without a vote of the people.

There was no discussion on the amendment.

Outcome on the amendment: It passed unanimously on a voice vote.

Outcome on the main resolution, as amended: It passed unanimously.

2nd Quarter Budget Update

The administration gave an update on the county’s second-quarter financial status, for the period from Jan. 1 through June 30, 2014. County administrator Verna McDaniel introduced the update by calling it “good news.” [.pdf of presentation]

Finance analyst Tina Gavalier.

Tina Gavalier of the county’s finance staff told commissioners that property tax revenue is showing a projected surplus of $720,000 compared to what was budgeted for 2014. In addition, the sheriff’s office is projecting a roughly $200,000 surplus due to federal, state and local reimbursements for prisoner boardings. In the category of general intergovernmental revenues, there’s now a projected surplus of $370,000 due to state liquor tax funds and local reimbursements for animal control.

Several other areas are showing a revenue shortfall, however, compared to the amount budgeted. Those units include the clerk/register of deeds ($350,000 shortfall), district court ($209,000 shortfall), trial court ($73,000 shortfall) and interest income ($71,000 shortfall).

Gavalier noted that the trial court is still determining the impact of a Michigan Supreme Court decision prohibiting the assessment of court costs on criminal cases. The court can collect on anything that was assessed prior to the court ruling, she explained, but if no legislative action is taken, courts could see a substantial decrease in future revenues.

Overall, the net projected revenues for the general fund show a revenue surplus of $656,991.

On the expenditure side, the sheriff’s office has a projected over-expenditure of $673,000 related to overtime costs, inmate food and medical services, and law enforcement operating supplies. Gavalier said the sheriff and his staff are actively working to reduce that over-expenditure by year’s end. All other departments are reporting a combined operating surplus of $135,000.

In other expenditure categories, the line item for tax appeals and refunds is projected to have a surplus of about $239,000. The line item of central charges has a projected surplus of $93,000 due to tax refund overpayments being less than budgeted – partially offset by projected over-expenditures from the homelessness initiative that the board approved earlier this year. Appropriations are assumed to be on budget at $16.2 million. The expenditure projections also took into account structural and non-structural budget adjustments that have been made so far in 2014, totaling $560,000.

The net projected over-expenditures for the general fund are $445,070. So the projected general fund surplus for 2014 is $211,920.

Washtenaw County general fund projections for 2014.

If that $211,920 is added to the fund balance at year’s end, Gavalier said, then the fund balance would be 20.3% of the general fund expenditures.

Most departments that aren’t part of the general fund are on budget or are projecting a surplus, Gavalier reported. Two areas – veterans relief and risk management – are using their fund balances as planned, she said.

Some revenue issues to monitor include: (1) state legislation that might repeal or reform Act 88, (2) revenues for the clerk/register of deeds office, (3) court revenues, (4) personal property tax reform, and (5) payments from state revenue-sharing. Expenditure items to monitor include rising costs in the child care fund due to increased caseloads and placements, the sheriff’s office costs, and union contract negotiations.

Gavalier noted that the board will receive a third-quarter update in November, with a budget reaffirmation process taking place this fall for the 2015-2017 budget.

2nd Quarter Budget Update: Board Discussion

Responding to a query from Yousef Rabhi (D-District 8), Tina Gavalier explained that the projected revenue shortfall of $350,000 in the clerk/register of deeds office was from lower-than-projected fees from document-processing – such as real estate transfers and marriage licenses. It’s lower than it’s been in the past several years. Rabhi quipped: “Buy houses and get married, everybody!”

County administrator Verna McDaniel.

Regarding the courts, Rabhi asked if there’s legislation pending to address the impact of the recent state Supreme Court ruling. He wondered if the county’s lobbyist needed to work on something in Lansing. [Washtenaw County and several other local municipalities pay Governmental Consultant Services Inc. to act as a lobbyist for their interests at the state level.]

County administrator Verna McDaniel said she hadn’t taken any action on this issue, but would be talking with the court administrators about it. She pointed out that the courts operate under a lump sum budget.

Rabhi said it might be worthwhile to see what other counties are facing, and to see if there’s potential to work across county lines. McDaniel said she’d get more information about that.

Dan Smith (R-District 2) wondered when the new GASB regulations take effect. He was concerned when the administration talks about a “surplus,” knowing that the county actually has about a huge amount of unfunded liability.

By way of background, Smith was referring to more than $200 million in unfunded liabilities from the retiree health care and pension funds. The new accounting changes – required by the Governmental Accounting Standards Board (GASB) – take effect in phases. In 2014, the main change will be more disclosures in notes to the financial statements, required by GASB 67. But in 2015, when GASB 68 is implemented, the county’s unfunded actuarial accrued pension liability will be booked as a liability in the county’s statement of net position, which will be a significant change, according to the county’s finance staff. New standards for health care liabilities will be addressed in the future by GASB, and the county’s accounting staff is working on that.

McDaniel replied that it’s an issue that staff will “continue to dialogue with this board about,” to get direction in terms of priorities and any additional actuarial payments that might be required.

Alicia Ping (R-District 3) asked about the shortfall for the courts, saying she was concerned about it. She wondered how that will impact the memorandum of understanding with the county, regarding the lump sum budget under which the courts operate. McDaniel noted that in the past, the courts have been able to work within their lump sum budget. But this year, the impact of the Supreme Court ruling will be substantial, she said. So the courts will have to come up with a plan about how they’ll handle it. The impact could be as much as a half million dollars, McDaniel said. “We’ll work with them, and we’ll have more information as this develops.”

Ping also asked for a breakdown in line-item costs that are contributing to the over-expenditures in the sheriff’s office budget. McDaniel said that the sheriff, Jerry Clayton, felt confident that expenses will even out over the remainder of 2014, based on actions that his office is taking.

Outcome: This was not a voting item.

2014 Budget Adjustments

Commissioners were asked to give final approval to mid-year budget adjustments, including allocating this year’s higher-than-expected property tax revenues and a $3.9 million surplus from 2013. Initial approval had been given at the board’s July 9 meeting.

The adjustments increased the general fund budget’s expenses and revenues by $720,486 for 2014, $733,233 for 2015, $745,980 for 2016 and $758,727 for 2017. The county operates on a four-year budget, with the fiscal year matching the calendar year.

The adjustments were recommended by county administrator Verna McDaniel, who requested setting aside the $3,920,818 surplus from 2013 in unearmarked reserves, rather than spending it. The projected year-end 2014 fund balance is $20,638,675. The county board had previously approved a goal of holding a fund balance equal to 20% of its general fund budget. For 2014, the general fund budget is $103,127,202. [.pdf of staff memo and mid-year budget resolution]

In addition, the following mid-year budget adjustments were made to the general fund:

• Structural adjustments resulting in a $494,677 increase in expenditures for: (1) providing employee health care coverage for autism; (2) a consultant to help with the board’s budget priority work, (3) a “local government initiatives” intern; (4) reinstatement of two full-time equivalent positions in the sheriff’s office; and (5) salary adjustments for non-union employees.
• Non-structural, one-time, adjustments that increased expenditures by $65,000 for homelessness initiatives.

The administration recommended that the remaining $160,809 be held as an undesignated allocation until budget projections improve as new information becomes available. Finance staff gave a second-quarter budget update on Aug. 6, projecting that the county will have a $211,920 general fund surplus at the end of 2014. [.pdf of budget presentation]

From left: County prosecuting attorney Brian Mackie and commissioner Dan Smith (R-District 2).

When an initial vote was taken on July 9, commissioners Dan Smith (R-District 2) and Conan Smith (D-District 9) had voted against it. On Aug. 6, both raised the same concerns they’ve voiced earlier.

Conan Smith said he hoped that when the county achieves its goal of a fund balance equal to 20% of the general fund budget, then any extra surplus would be “put to work in the community.” With its vote that night, the board will have achieved fiscal stability, he said, and he looked forward to achieving community stability as well.

Dan Smith stressed the importance of setting a budget and sticking to it, with adjustments coming only during the annual budget affirmation process – rather than throughout the year. There are other things to focus on, he said, including policy issues.

Yousef Rabhi (D-District 8) said he agreed with C. Smith. The board has done a lot to make sure the county’s financial security is in place. Looking forward, there are some investments that the county can make in the community. He thanked C. Smith for advocating on that issue.

Outcome: The budget adjustments passed unanimously.

Veterans Relief Tax

Commissioners were asked to give initial approval to levy a tax to support services for indigent veterans.

The county has determined that it is authorized to collect up to 1/10th of a mill without seeking voter approval. That’s because the state legislation that enables the county to levy this type of tax – the Veterans Relief Fund Act, Public Act 214 of 1899 – predates the state’s Headlee Amendment. The county first began levying this millage in 2008, and collects the tax in December. Services are administered through the county’s department of veterans affairs.

Since 2008, the county board has slightly increased the rate that it levies each year. In 2012, the rate was 0.0286 mills – or 1/35th of a mill. It was raised to a rate of 1/30th of a mill in December 2013, to fund services in 2014.

The current proposal is to levy 1/27th of a mill in December 2014, which is expected to raise about $540,887 in revenues for use in 2015.

There was no discussion of this item at the board’s Aug. 6 meeting.

Outcome: The board unanimously gave initial approval to levy this millage. A final vote is expected at the board’s Sept. 3 meeting.

New TIF Policy

Commissioners were asked to give initial approval a policy to guide the county’s participation in tax increment financing (TIF) authorities.

Commissioner Andy LaBarre (D-District 7) and county administrator Verna McDaniel.

At its Oct. 16, 2013 meeting, the board had passed a resolution directing county administrator Verna McDaniel to develop a policy for evaluating future TIF proposals. The resolution stated that the policy would be developed with input from staff of the office of community and economic development, the equalization department, and the brownfield redevelopment authority. The Oct. 16 resolution was passed over dissent by the board’s two Republican commissioners, Dan Smith (R-District 2) and Alicia Ping (R-District 3).

Subsequently, an advisory committee was formed to help develop the policy. Members were: county commissioner Andy LaBarre (D-District 7); county treasurer Catherine McClary; corporation counsel Curtis Hedger; and finance director Kelly Belknap.

The two-page policy brought forward by McDaniel lays out a process by which the board would consider any proposed or amended Corridor Improvement Authority (CIA) or Downtown Development Authority (DDA) where the capture of county tax revenues is requested. [.pdf of TIF policy]

New TIF Policy: Board Discussion

Dan Smith (R-District 2) referred to this section of the policy:

III. Tax Increment Financing Participation Process

Any local unit of government proposing a new or amended Corridor Improvement Authority or Downtown Development Authority, or other statutory entity empowered to capture, incremental County tax revenues are requested, shall adhere to the following review process, in addition to those specified by the appropriate state enabling legislation:

…

D. Any County participation in these Tax Increment Financing Districts shall be through the execution of a participation agreement. A participation agreement shall include, at a minimum, extent of County participation including estimated amount (consideration of dollar for dollar and percentage estimates), duration, and methods, if any, of termination and reporting requirements.

IV. County Opt Out Authorization

In the event a requesting entity fails to adhere to this process, the Washtenaw County Board of Commissioners authorize the County Administrator to take the appropriate steps to opt out of participation in the proposed tax increment financing plan.

It appeared to D. Smith that no additional board approval would be required, in order for the county administrator to begin opt-out proceedings if the requesting entity doesn’t follow the agreed-upon process. He didn’t object to that approach, but wanted to make certain that it’s what is intended.

Andy LaBarre (D-District 7) responded, saying that D. Smith’s interpretation was correct. Corporation counsel Curtis Hedger said the committee gave that authorization because of a potential timing issue. There are times when deadlines related to the TIF process would occur before the next board meeting, “so it gives the administrator some flexibility,” he said.

LaBarre said the policy is an attempt to give the board as broad a framework as possible. This is a tool the board could use, he said, but he also urged the board to look at each individual proposal in its set-up and its context. There are so many different types of tax-capture mechanisms for many different purposes, so he wanted to give that caveat. LaBarre praised the county staff for their work in developing this policy, saying “I simply went along for the ride.

Outcome: The TIF policy passed unanimously on an initial vote. A final vote is expected at the board’s next meeting, on Sept. 3.

Appointments

Yousef Rabhi (D-District 8), the board’s chair, made several nominations for appointments.

• Food Policy Council: Khadije Wallace to the slot for a citizen representative, for a term ending Dec. 31, 2014.
• River Raisin Watershed Council: Evan Pratt, the county’s water resources commissioner, as the Washtenaw County representative; and Harry Sheehan, environmental manager with the water resources commissioner’s office, as the county alternate. Those terms both end on Dec. 31, 2014.
• 2014 Remonumentation and Land Survey Peer Review Group: Thomas Sutherland, John Jekabson, Kevin Gingras, Patrick Hastings and Kenneth Coleman.

Outcome: All appointments were confirmed.

Water Resources: Revised Rules & Guidelines

The board’s Aug. 6 agenda included an item to support new rules and guidelines proposed by the county’s water resources commissioner, Evan Pratt. The changes relate to procedures and design criteria for stormwater management systems. [.pdf of revised rules and guidelines]

The previous rules and guidelines had been adopted in 2000. According to a staff memo, the new changes reflect updated requirements of the county’s National Pollutant Discharge Elimination System (NPDES) Phase II stormwater discharge permit, which is administered by the Michigan Department of Environmental Quality.

Pratt attended the Aug. 6 meeting, but there were no questions from commissioners and no discussion on this item.

Outcome: The resolution supporting the revised rules and guidelines was approved.

Communications & Commentary

During the Aug. 6 meeting there were multiple opportunities for communications from the administration and commissioners, as well as public commentary. In addition to issues reported earlier in this article, here are some other highlights.

Communications & Commentary: Proclamations – UA

At its July 9, 2014 meeting, the board had passed a proclamation welcoming the United Association (UA), a union of plumbers, pipefitters, sprinkler fitters, welders, and heating, ventilation, air conditioning and refrigeration (HVACR) technicians. They’ll be in this area from Aug. 9-15 for their 61st annual training program. For the past 25 years, that program has been held in Washtenaw County on the Washtenaw Community College campus, bringing about 2,400 participants to the county with an estimated economic impact of $5 million. [.pdf of UA proclamation]

Chris Haslinger, director of training for the United Association (UA) of plumbers and pipefitters.

At the Aug. 6 meeting, Chris Haslinger, director of training for the UA, was on hand to receive the proclamation. He thanked the board. He described the growth of the training program over the years, pointing out that this year there will be 450 first-time attendees. He noted that the community here welcomes the UA members, and that the union receives a great deal of assistance from the Ann Arbor and Ypsilanti convention and visitors bureaus. Both presidents of those bureaus – Mary Kerr and Debbie Locke Daniel – also attended the county board’s Aug. 6 meeting.

Halsinger reported that the UA had reached an agreement with WCC to extend the program here through 2028. There are eight people based in the Ann Arbor area who work year-round on UA training programs, he said. Eight people might not seem like a lot, he added, but it’s important that they live here and contribute to the community.

He described some other initiatives undertaken with WCC, and concluded by thanking the county, the city of Ann Arbor, Local 190 and Local 704. “We look forward to a future in the Ann Arbor community,” he said.

Board chair Yousef Rabhi (D-District 8) responded by thanking Halsinger and sharing an anecdote. He said he was on a conference call with U.S. vice president Joe Biden, discussing the future of the country’s talent and job resources. Rabhi said he asked Biden a question and mentioned the partnership between WCC, the county, the UA and other communities as an example of the direction that the country should be heading. He thanked Haslinger for UA’s investment in this community.

Communications & Commentary: Proclamations – Herb Ellis Sr.

Yousef Rabhi (D-District 8) read a proclamation honoring Herb Ellis Sr., the first black man to be elected to the Washtenaw County board of commissioners. Ellis was elected in 1968 and served until 1982, representing Ann Arbor. During that time he also was the first black chair of the county board. [.pdf of proclamation]

Jeff Ellis.

Ellis had passed away on July 10, 2014 at the age of 98.

Jeff Ellis, one of Ellis’ sons, was on hand to accept the proclamation. His father’s life was dedicated to serving others, either through education, civic organizations or as an elected official, he said. In particular, Ellis had been interested in public health issues, promoting educational opportunities for young people, and improving the lives of senior citizens.

Herb Ellis was a pioneer in the community, as one of the first black teachers in the Ann Arbor public school system, and the first person of color to be elected to the county board of commissioners. He was recognized as a consensus-builder, Jeff Ellis said. “He believed in leading by example, and did his best to be a positive role model in all aspects of his life. By most accounts, he was successful in that effort.”

Communications & Commentary: Proclamations – Donald Shelton

The board had a third proclamation – for 22nd circuit court judge Donald Shelton, who is retiring this year. [.pdf of proclamation for Shelton] Shelton was out of town and did not attend the Aug. 6 meeting. Yousef Rabhi reported that the proclamation would be given to Shelton at a retirement party later this year.

Communications & Commentary: Public Commentary

Thomas Partridge introduced himself as a recent candidate for political office in the state legislature and Ann Arbor city council. He called on the county to redouble its efforts after the Aug. 5 primary election to give priority to eliminating homelessness, generating adequate affordable housing, true countywide affordable and accessible public transportation, affordable health care and education. He supported Act 88 funding but didn’t think the grants reflected these priorities. Partridge advocated for support of Democrat Mark Schauer in his bid for governor, and for a progressive Democratic platform to address the needs of the most vulnerable residents. The state needs a balanced budget, but not one that’s balanced on the backs of those who are least able to fend for themselves in this economy.

Executive Session

At the end of the meeting, the board voted unanimously to go into executive session for the purpose of reviewing attorney-client privileged communication. It is one of the exemptions allowed under the Michigan Open Meetings Act. Commissioners retreated to a room in the administration’s offices, along with several staff members and others who had been invited into the closed session.

After about 30 minutes, three commissioners returned to the boardroom – Dan Smith (R-District 2), Alicia Ping (R-District 3) and Conan Smith (D-District 9). They indicated to The Chronicle that they thought the discussion in the closed session had strayed away from the limits imposed by the OMA, and they had left the session because of that. They did not state what the nature of the discussion had been, nor the topic of the session.

Soon after, the remainder of the board emerged from the closed session, and the meeting was adjourned.

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

Absent: Felicia Brabec, Ronnie Peterson.

Next regular board meeting: Wednesday, Sept. 3, 2014 at 6:30 p.m. at the county administration building, 220 N. Main St. in Ann Arbor. The ways & means committee meets first, followed immediately by the regular board meeting. [Check Chronicle event listings to confirm date.] (Though the agenda states that the regular board meeting begins at 6:45 p.m., it usually starts much later – times vary depending on what’s on the agenda.) Public commentary is held at the beginning of each meeting, and no advance sign-up is required.

The adjustments increased the general fund budget’s expenses and revenues by $720,486 for 2014, $733,233 for 2015, $745,980 for 2016 and $758,727 for 2017. The county operates on a four-year budget, with the fiscal year matching the calendar year.

The adjustments also followed the recommendation of county administrator Verna McDaniel, and set aside the $3,920,818 surplus from 2013 in unearmarked reserves, rather than spending it. The projected year-end 2014 fund balance is $20,638,675. The county board had previously approved a goal of holding a fund balance equal to 20% of its general fund budget. For 2014, the general fund budget is $103,127,202. [.pdf of staff memo and mid-year budget resolution]

In addition, the following mid-year budget adjustments were made to the general fund:

• Structural adjustments resulting in a $494,677 increase in expenditures for (1) providing employee health care coverage for autism; (2) a consultant to help with the board’s budget priority work, (3) a “local government initiatives” intern; (4) reinstatement of two full-time equivalent positions in the sheriff’s office; and (5) salary adjustments for non-union employees.
• Non-structural, one-time, adjustments that increased expenditures by $65,000 for homelessness initiatives.

The administration recommended that the remaining $160,809 be held as an undesignated allocation until budget projections improve as new information becomes available. Finance staff gave a second-quarter budget update on Aug. 6, projecting that the county will have a $211,920 general fund surplus at the end of 2014. [.pdf of budget presentation]

When an initial vote was taken on July 9, commissioners Dan Smith (R-District 2) and Conan Smith (D-District 9) had voted against it. Although they supported it on Aug. 6, both raised the same concerns they’ve voiced earlier. Conan Smith said he hoped that when the county achieves its goal of a fund balance equal to 20% of the general fund budget, then any extra surplus would be “put to work in the community.” Dan Smith stressed the importance of setting a budget and sticking to it, with adjustments coming only during the annual budget affirmation process – rather than throughout the year.

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

From left: former Congressman Wes Vivian talks with Washtenaw County board chair Yousef Rabhi (D-District 8) before the board’s July 9 meeting. Vivian is advocating for the board to put a proposal on the Nov. 4, 2014 ballot regarding the U.S. Supreme Court’s Citizens United ruling. (Photos by the writer.)

Linda Edwards-Brown, the county’s juvenile division administrator, told commissioners that there’s been an increase in young men “terrorizing” their communities. The sheriff’s office and court had started working together several months ago after they began observing an increase in gang-type activity, she said, including home invasions, firearm larceny, and assaulting police officers. They’d been hopeful that they could stem the tide of violence, she added, but it had escalated with a death in Ypsilanti earlier this summer.

So the sheriff’s office and court officials have reached consensus to remove some of these young men from the community and put them into residential facilities in other parts of the state, Edwards-Brown said. The juvenile division of the Washtenaw County trial court will place at least six youths in residential facilities this month, in addition to six youths who are currently in residential placements. According to a staff memo, residential placements are costly, with a typical length of stay at nine to twelve months.

At the July 9 meeting, commissioners and staff expressed the need to continue working on this issue as a community-wide effort.

In other action, commissioners were asked to pass a resolution making mid-year budget adjustments and allocating this year’s higher-than-expected property tax revenues, as well as putting the $3.9 million surplus from 2013 into unearmarked reserves.

The adjustments passed on a 6-2 vote, with Dan Smith (R-District 2) and Conan Smith (D-District 9) dissenting. Andy LaBarre (D-District 7) was absent. Dan Smith objected to spending more than was budgeted and making budget changes outside of the annual budget affirmation process, which takes place later this year. Conan Smith didn’t state his reason for voting against it on July 9, though in the past he has advocated for spending more of the surplus, rather than setting it aside in the fund balance.

Commissioners also authorized putting a proposal on the Nov. 4, 2014 ballot to renew a 10-year, 0.2353-mill countywide parks and recreation operations tax. They held public hearings related to other millages that the county plans to levy later this year: (1) for support of indigent veterans and their families; and (2) to fund economic development and agricultural activities, under Act 88. The hearings drew one speaker – Thomas Partridge.

Related to the health department, the board created a new board of health to help oversee public health services in the county. A state official was on hand to talk about the accreditation process that the Washtenaw County public health department completed earlier this year.

Commissioners voted to accept the recommendations of a task force that’s been working on a funding strategy to help end homelessness, and to sunset that task force. The board also made appointments to a new committee that’s charged with exploring funding options for road repair.

Several issues were raised during public commentary. Former Congressman Wes Vivian urged the county board to place a proposal on the Nov. 4, 2014 ballot enabling Washtenaw County voters to ask the state to support a constitutional amendment to overturn the Citizens United decision. That U.S. Supreme Court ruling has resulted in corporations “sloshing big money into our elections at all levels,” Vivian said.

Also during the meeting, commissioners honored Arthur Williams, who is retiring as principal of Huron High School in Ann Arbor after 19 years in that job. The board also passed proclamations welcoming the United Association (UA) of plumbers and pipefitters and the Ironworkers International. Both unions hold training programs in Washtenaw County each summer.

At the beginning of the meeting, Rabhi asked for a moment of silence in memory of Rowan David LaBarre, the newborn son of commissioner Andy LaBarre and his wife Megan LaBarre. Rowan David had passed away earlier in the week. “We all pray and hold Rowan in the light of our prayers and thoughts,” Rabhi said.

Funding to Address Juvenile Crime

The July 9 agenda included a resolution authorizing the use of $642,707 from the Child Care Fund balance to pay for a range of services overseen by the county’s dept. of human services. The use of $642,707 will drop the Child Care Fund balance from $1,041,882 to $399,175. [.pdf of staff memo]

Linda Edwards-Brown, the county’s juvenile division administrator.

The resolution authorized an amendment to the Child Care Fund (CCF) budget for the current fiscal year. The request came from the Washtenaw County Trial Court’s juvenile division and the county’s department of human services – the entities that oversee programs supported by the CCF.

According to a staff memo, the CCF is a collaboration between the state and county circuit courts to support programs that serve neglected, abused and delinquent youth in Michigan. The state reimburses counties for 50% of all eligible CCF expenses.

The specific request on July 9 was for an increase in the CCF budget from $1,872,928 to $2,500,000 for the 2014 county fiscal year, which runs from Jan. 1 through Dec. 31 – an increase of $642,707.

Expenditures for the children’s services department are expected to be $262,341 over the current budget during the county fiscal year. Those expenses relate to use of part-time temporary staff as well as overtime, according to the staff memo, “to ensure that Children’s Services remains in compliance with state licensing requirements for juvenile detention facilities.”

In addition, the Trial Court’s juvenile division planned to put at least six youths in out-of-home placements in July. Another six youths are already placed. The typical length of such placements is nine to twelve months at an average $260 per day, per youth. That cost can range from a low of $150 to a high of $522. The total cost for the remainder of the county fiscal year is projected to be $396,000.

In addition, detention beds in the county’s children’s services facility have been occupied at or near capacity for all of 2014, which has resulted in the need for part-time temporary staff as well as overtime pay.

Funding to Address Juvenile Crime: Board Discussion

Ronnie Peterson (D-District 6) asked about the timing of this request. Linda Edwards-Brown, the county’s juvenile division administrator, clarified that the request for funding is for the county’s fiscal year, through Dec. 31. However, the Child Care Fund (CCF) budget is aligned with the state’s fiscal year, from Oct. 1 through Sept. 30. Edwards-Brown noted that the budget amendment would run only through Dec. 31, 2014. “We’ll be back here in a few months to look at the 2014-2015 Child Care Fund budget,” she said.

Ronnie Peterson (D-District 6).

Peterson expressed interest in seeing long-term budget projections. It’s not about the money, he added, but it’s important to find out what’s happening in the juvenile justice system. The county needs to know what its financial obligations are to address some of the issues that are occurring in the community, which are causing youth to end up in detention facilities.

Edwards-Brown told commissioners that a group of young men are “terrorizing” their communities. They are carrying weapons, displaying weapons on social media, committing home invasions, and stealing guns.

Several months ago, the sheriff’s office and the court started working together as they saw the beginning of what seemed to be gang-type activity, Edwards-Brown said. “We were hopeful that we would be able, by working together, to stem this tide of violence that we’re seeing in the community. We were unable to do that.”

Last month, a young man was murdered in Ypsilanti, Edwards-Brown said. It’s a problem that the sheriff’s office had predicted, she added. Now, collectively, the court and sheriff’s staff have decided they need to remove the young men from the community, she said. “So that’s the answer as to why we’re here tonight asking for more money for residential placements.”

The trial court has made a concerted effort over the last several years to keep youth in the community and work with them in their homes, Edwards-Brown said. But at this point, public safety is an issue, as well as the safety of these young men, she said. They can’t be “safely maintained” in the community, and need to be taken outside their homes, she said.

Derrick Jackson, director of community engagement for the sheriff’s office, reported that last summer, deputies started to notice an increase in juvenile violence and an escalation in crimes that juveniles were committing. He noted that in the early 1990s, there was gang activity in the area and a lot of those gang members were taken off the streets for 10-15 years. The question since then has been how can the community change so that when those men got back out, “things won’t go back to the way they were,” he said.

Derrick Jackson, director of community engagement for the Washtenaw County sheriff’s office.

Fortunately, those men didn’t go back to criminal behavior, Jackson added, but some of their children, younger siblings and other relatives are now in their teens, and are starting to get involved in gang-type activity. The good thing about having a conversation now is that it’s at an early stage, he said, “and we’re hoping we can prevent some of this.”

They’re not saying that the answer is to lock up every kid who’s associated with these things, Jackson stressed. But this is one of the answers for a small percentage of kids who are very violent, carrying weapons, doing drugs and who ultimately committed homicide.

A large task force is coming together to talk about a “holistic, wrap-around response to what we’re seeing in the community,” Jackson said, because it’s such a significant issue. He noted that about 55 community leaders – including some county commissioners – had met recently to talk about the juvenile criminal justice system, and everyone had seen an increase in problems. When he talks to high school and middle school teachers in the eastern part of the county, they all say the same thing – they see a difference in how young people are acting.

Jackson said that when you see the train coming down the track, you can prepare to get run over or you can figure out a way to stop it. People in the county are working to stop the train, he said.

Lisa Greco, the county’s youth center director, noted that juvenile detention is where kids are placed when law enforcement removes them from the community. They’re held in secure custody until decisions can be made about what to do next. The juvenile detention center has seen more than a 25% increase in population and days of care, Greco said. Managing the dynamics in the community is challenging, she said, and managing those kids in the confined space of juvenile detention is also a challenge. “I think we’ve been up to it, and have taken good care of the kids,” she said.

Rolland Sizemore Jr. (D-District 5).

The community is at a crossroads, Greco added. There’s a need for an immediate response, as well as a call to action to re-examine the juvenile justice system in Washtenaw County in its entirety. “We need alternatives to juvenile detention,” she said. There needs to be early identification, intervention and assessment for kids who are struggling in the community.

Rolland Sizemore Jr. (D-District 5) expressed concern about the kids who’ll be sent to places outside of Washtenaw County. “What happens when they get done and come back here?”

Edwards-Brown replied that none of the young men will be sent out of state. They’ll be sent to Maxey Boys Training School in Whitmore Lake, Turning Point Youth Center in St. Johns, and other facilities within Michigan. “We want them to have the opportunity for their families to visit them and to participate in family therapy while they’re in these placements,” she said.

These young men will eventually be returning home in nine to 12 months, Edwards-Brown noted. So it’s important to bring change to their homes, so that they won’t be returning to the same situation, she said.

Sizemore advocated for having an individual or entity examine all the programs in the county that help youth. He thought there were duplicative services, and the services should be better coordinated. He also hoped the school districts would get involved, and that parents would be supported. He praised Jackson, sheriff Jerry Clayton and deputies for doing difficult work. But it’s time to stop studying the situation and to put some money directly into programs that will help youth, he said.

Alicia Ping (R-District 3) said she first heard about the Ypsilanti murder on Facebook, from a friend who lived in that neighborhood. She thought that by removing these young men, it will help the community as a whole. It will provide hope to the people living there, since they won’t be living in a place of fear. It’s important to let residents know that the community cares about what’s happening in those neighborhoods, Ping said, and that action is being taken to help.

Alicia Ping (R-District 3).

Edwards-Brown stressed that “this may not be the panacea.” Although the additional funding will help remove a certain number of young men, “there are brothers and sisters and nieces and nephews and cousins – so we have a bigger problem that we have yet to address,” she said. “We’re hoping to, quite frankly, save lives – the lives of these young men, and perhaps someone else in the community. But our work is far from done.”

Peterson said the problem isn’t just isolated to Ypsilanti – it’s something happening nationwide. He noted that the funding for this request is coming from the Child Care Fund reserves, but it’s unclear where funding will come from in the future. It could be a budget that inflates much higher, because the county has an obligation to provide services to all youth in need, he said.

Peterson suggested that the county administrator, Verna McDaniel, and the county board chair, Yousef Rabhi (D-District 8), work with staff to identify budget projections and future demand for services. If there’s a trend, the board should be aware of it well in advance, he said. “This is not going to be a gang haven,” he said. “The is not the Wild West.” Washtenaw County has the reputation as a great place to raise children, and they need to maintain that, Peterson added.

Jackson offered to make a presentation to the board with more details about the responses that are being planned. He said he’d spoken with three different mothers who had noticed that their sons were changing, but who couldn’t find help until the situation had escalated. That’s what needs to be addressed, he added – how to structure something in this community that will align the human services with the real issues that need attention.

Conan Smith (D-District 9) drew attention to the fact that fund balance is being used. The CCF fund balance will be depleted by two-thirds with just this one allocation, he noted. It’s an important allocation, and the kind of thing that fund balances are used for, he added. “But we’re doing it regularly now – dipping into departmental fund balances for programmatic expenditures.”

At the same time, Smith noted, the board is set to add money to the general fund reserves. He expected to see other proposals from departments later this year, also requesting to use their departmental fund balances. “This is a fiscal policy question that we really ought to be grappling with,” Smith said.

McDaniel pointed out that it’s actually a $1.3 million problem – the county’s $642,707, plus an equal amount that will be reimbursed by the state.

Outcome: Commissioners unanimously approved the Child Care Fund budget amendment.

Mid-Year Budget Adjustments

Commissioners were asked to pass a resolution making mid-year budget adjustments and allocating this year’s higher-than-expected property tax revenues, as well as a $3.9 million surplus from 2013.

County administrator Verna McDaniel.

The adjustments increased the general fund budget’s expenses and revenues by $720,486 for 2014, $733,233 for 2015, $745,980 for 2016 and $758,727 for 2017. The county operates on a four-year budget, with the fiscal year matching the calendar year.

The adjustments also followed the recommendation of county administrator Verna McDaniel, and set aside the $3,920,818 surplus from 2013 in unearmarked reserves, rather than spending it. The projected year-end 2014 fund balance is $20,638,675. The county board had previously approved a goal of holding a fund balance equal to 20% of its general fund budget. For 2014, the general fund budget is $103,127,202. [.pdf of staff memo and mid-year budget resolution]

In addition, the following mid-year budget adjustments were made to the general fund:

• Structural adjustments resulting in a $494,677 increase in expenditures for (1) providing employee health care coverage for autism; (2) a consultant to help with the board’s budget priority work, (3) a “local government initiatives” intern; (4) reinstatement of two full-time equivalent positions in the sheriff’s office; and (5) salary adjustments for non-union employees.
• Non-structural, one-time, adjustments that increased expenditures by $65,000 for homelessness initiatives.

The administration recommended that the remaining $160,809 be held as an undesignated allocation until budget projections improve as new information becomes available. The administration will present a second-quarter budget update at the board’s next meeting on Aug. 6, 2014.

Mid-Year Budget Adjustments: Board Discussion

Dan Smith (R-District 2) noted that it’s been less than three months since Raman Patel, the county’s equalization director, told the board about higher-than-expected tax revenues, which resulted in about $750,000 more revenue this year than had been budgeted for 2014.

Dan Smith (R-District 2).

Now, the board is already spending almost $600,000 of that surplus, which hadn’t been included in the original 2014 budget, Smith noted. There is no shortage of things to spend this money on, he continued, including over $234 million in unfunded liabilities “which we have no particular plan to pay for, other than amortizing payments over 26 years – something that our actuary is recommending against us doing.” The actuary would like to see that amount amortized over a much shorter period of 10 years.

Smith said he had no problem with making technical budget adjustments as they come along. But one of the reasons to have a four-year budget is to have a plan and then execute that plan, Smith said.

If the board wants to “be constantly in budget mode,” he said, then they could simply have a one-year budget. Unless there’s an emergency situation or deadlines that are outside of the county’s control, he thought it would be more appropriate to make these changes in the fall, during the board’s annual budget reaffirmation process.

There was no additional discussion on this item.

Outcome: The budget adjustments were passed on a 6-2 vote, over dissent by Dan Smith (R-District 2) and Conan Smith (D-District 9). Andy LaBarre (D-District 7) was absent.

County Parks & Rec Millage

The board was asked to pass a resolution that would authorize putting a proposal on the Nov. 4, 2014 ballot to renew a 10-year countywide parks and recreation operations millage.

Bob Tetens, director of Washtenaw County parks & recreation.

The resolution on July 9 was for an amended version, compared to a resolution given initial approval on May 21, 2014. That’s because some state-mandated information had inadvertently been left off the proposed ballot language in the original resolution, according to a staff memo. [.pdf of staff memo]

The operations millage was first authorized by voters in November 1976 at 0.25 mills for a 10-year period and has been renewed three times. Because of the state’s Headlee amendment, the rate that’s actually levied has been rolled back and is now 0.2352 mills. The current millage expires in December 2016.

If renewed again, it would generate an estimated $3.4 million annually – or about half of the parks & rec annual operating expenses. Other revenue sources are admission/gate/membership fees charged seasonally at facilities including the Meri Lou Murray recreation center, the water/spray parks, and the Pierce Lake golf course. Funding is also received from state and federal grants as well as private donations.

The county parks system receives most of its funding from two countywide millages. In addition to the operations millage, another millage pays for capital improvements and park development. It was also originally levied at 0.25 mills, but has been rolled back to 0.2367 mills.

In addition, a third millage – levied at 0.25 mills but rolled back to 0.2409 mills – funds natural areas preservation, bringing in about $3 million annually. It was first approved by voters in 2000, and renewed for another 10 years in 2010.

The county’s parks & recreation department is overseen by a separate entity – the parks & recreation commission – whose members are appointed by the county board. The county board has the authority to put a parks millage proposal on the ballot, but does not authorize expenditure of the funds. That responsibility rests with the parks & recreation commission. The group meets monthly at the parks & recreation office at County Farm Park, and its meetings are open to the public.

County Parks & Rec Millage: Board Discussion

Conan Smith (D-District 9) advocated for support of this millage in November. The county parks & recreation commission has done incredible things, he said. [Conan Smith serves on the commission, along with Dan Smith (R-District 2) and Rolland Sizemore Jr. (D-District 5).] There’s a park or preserve or recreation facility in nearly every community throughout Washtenaw County, and most of the county facilities are free to the public, he noted. The parks & rec commission also leverages funds from the state, Smith added, on projects like the Border to Border trail. It’s worthy of the continued support of county citizens, he concluded.

Yousef Rabhi (D-District 8) said he hears a lot from people around the state and nation about how unique the county parks & rec system is. He also supported the millage renewal.

Outcome: The board unanimously approved placing the millage renewal on the Nov. 4, 2014 ballot.

Appointments

There were two sets of appointments on the July 9 agenda – for a road funding committee, and the board of public works.

Appointments: Road Funding Committee

Commissioners were asked to approve appointments to a new committee that’s charged with exploring funding options for road repair.

The board had created the road funding committee on June 4, 2014, after debating whether to levy a countywide road millage or put a millage proposal on the Nov. 4, 2014 ballot to fund road repair. The final vote to create the committee had been 6-1 vote, over dissent from Conan Smith (D-District 9). Commissioners Yousef Rabhi (D-District 8) and Dan Smith (R-District 2) were absent.

In arguing against levying a tax at that time, some commissioners cited the need to study funding options – including a possible Act 283 levy, which doesn’t require voter approval – before making a decision.

On July 9, Rabhi proposed an amendment to his original resolution, adding two new slots – one for the director of the Washtenaw Area Transportation Study (WATS), and one for an additional county commissioner slot, to make it an odd-numbered roster.

Rolland Sizemore Jr. (D-District 5) wondered why nine members were needed. Rabhi said he wanted to add the WATS representation because that group has been doing a lot of work on the road funding issue, and would like to participate. “It’s less a matter of the number of people, and more a matter of who we have at the table,” Rabhi said.

Outcome on amendment: Commissioners approved the amendment on a voice vote.

The following members were nominated by Rabhi:

• Lew Kidder, representing the general public
• Bill McFarlane, representing the road commission
• Roy Townsend, managing director of the road commission
• Rolland Sizemore Jr., the county board of commissioners’ liaison to the road commission
• Dan Smith, county commissioner
• Kent Martinez-Kratz, county commissioner
• Rodrick Green, Superior Township trustee, representing townships
• Steve Powers, Ann Arbor city administrator, representing incorporated municipalities
• Ryan Buck, director of the Washtenaw Area Transportation Study (WATS)

The resolution directs the committee to meet within 60 days of this appointment to elect officers and draft bylaws. The committee is to report to the county board at its Sept. 17, 2014 meeting, and make quarterly updates after that with a final report due in December 2015.

The county administrator will help provide administrative support to the committee.

For additional Chronicle coverage on road-related issues, see: “County Board Continues Weighing Road Tax,” “County Board Debates Expanded Road Commission,” “County Board Sets Hearing on Road Tax,” “County Considers Road Funding Options,” “No Major Change Likely for Road Commission” and “Group Explores Road Commission’s Future.”

Outcome: Commissioners unanimously approved the appointments to the road funding committee.

Appointments: Board of Public Works

Yousef Rabhi nominated Steve Feinman to the county’s board of public works for the remainder of a three-year term ending Dec. 31, 2015.

According to the department of public works website, the board of public works “focuses on assisting local communities within Washtenaw County in addressing environmental and public health issues and development needs, including wastewater disposal and collection, water treatment and supply, lake management, and solid waste management.”

There was no discussion on this appointment.

Outcome: Feinman’s appointment was made on a unanimous vote.

Public Hearings: Act 88, Veterans Relief Millages

The board held two hearings on July 9 related to millages that the county plans to levy later this year: (1) for support of indigent veterans and their families; and (2) to fund economic development and agricultural activities.

Kent Martinez-Kratz (D-District 1).

For support of indigent veterans, the county’s position is that it is authorized to collect up to 1/10th of a mill without seeking voter approval. That’s because the state legislation that enables the county to levy this type of tax – the Veterans Relief Fund Act, Public Act 214 of 1899 – predates the state’s Headlee Amendment. The county first began levying this millage in 2008, and collects the tax in December. Services are administered through the county’s department of veterans affairs.

Since 2008, the county board has slightly increased the rate that it levies each year. In 2012, the rate was 0.0286 mills – or 1/35th of a mill. It was raised to a rate of 1/30th of a mill in December 2013, to fund services in 2014.

The current proposal is to levy 1/27th of a mill in December 2014, which is expected to raise about $540,887 in revenues for use in 2015.

No increase is proposed for the economic development millage, levied under Act 88 – another pre-Headlee law. The proposal is to levy 0.07 mills in December 2014, raising an estimated $1,022,276 in property tax revenues. In previous years, the resolution setting this millage has outlined how the revenues would be allocated. The largest allocations have gone to the county’s office of community & economic development, and to the nonprofit Ann Arbor SPARK.

However, at its Nov. 6, 2013 meeting, the board adopted a new policy for allocating Act 88 revenues, drafted by Conan Smith (D-District 9). [.pdf of Act 88 policy] The policy included creating an Act 88 advisory committee to make recommendations to the board and prepare an annual report that assesses how Act 88 expenditures have contributed toward progress of goals adopted by the board. The policy allows the committee to distribute up to 10% of annual Act 88 revenues without seeking board approval. The policy also allocates up to 30% of revenues to the county office of community & economic development, which administers Act 88 funding.

On July 9, only one person – Thomas Partridge – spoke at these public hearings. He endorsed the veterans relief millage, and questioned whether it would provide sufficient support for indigent veterans. He also questioned whether the amount levied under the Act 88 millage was sufficient for a county this size.

Outcome: This was not a voting item. A vote to levy these millages would be made at a future meeting.

Task Force on Homelessness

Commissioners were asked to accept the report and recommendations of a task force that’s been working on a funding strategy to help end homelessness. The resolution also sunsets that task force.

Felicia Brabec (D-District 4).

The leadership group for the Task Force on Sustainable Revenues for Supportive Housing Services to End Homelessness made a presentation at the board’s May 22, 2014 working session. Their recommendations include the goal of building a $50 million endowment over 20 years. Payouts from the endowment would fund supportive services – such as treatment for mental illness and substance abuse – with the intent of addressing the root causes of homelessness. The concept is called permanent supportive housing, and is part of the community’s broader Blueprint to End Homelessness, which was created in 2004 and is being updated.

A possible millage – recommended at 0.25 mills, for no more than 20 years – would help fund supportive services while the endowment is built. County commissioners are being asked to consider putting such a millage on the ballot, possibly in 2015.

Several steps have already been taken to achieve these goals. An endowment was established in 2011, with $2.1 million in commitments so far. That amount includes a $1 million gift from the St. Joseph Mercy Health System to create the endowment, which is called the Sister Yvonne Gellise Fund for Supportive Services for Housing. Gellise is the former CEO of St. Joe’s. She served on the task force and is a founding board member of the Washtenaw Housing Alliance. Another $1 million commitment comes from the Ann Arbor Area Community Foundation (AAACF), where the endowment is housed. AAACF CEO Cheryl Elliott is another task force member. In addition, an anonymous donor has contributed $100,000.

The first fund distribution – of $26,100 – will be made this fall in a competitive grant process. AAACF’s distribution committee – an all-volunteer group – will be responsible for making grant recommendations.

AAACF is also helping provide a three-year, part-time development job to support fundraising for this endowment. Funding for the position will come from the Washtenaw Housing Alliance ($25,000), the AAACF ($5,000) and an anonymous donor ($10,000).

The foundation posted the position earlier this summer, with the intent of making a hire as soon as possible. The position would be in place until at least mid-2017. The employee will report to AAACF’s vice president for development and donor services, and to the Sister Yvonne Gellise Fund development committee. Members of that committee are the same people who’ve served on the leadership team of the task force, Elliott said. In addition to herself, members include Bob Chapman, Sister Yvonne Gellise, Bob Guenzel, Norm Herbert and Dave Lutton.

There was no discussion on this item at the July 9 meeting.

Outcome: Commissioners unanimously voted to accept the report and sunset the task force.

Public Health Accreditation

Mark Miller, director of local health services with the Michigan Dept. of Community Health, attended the July 9 meeting to talk about the accreditation process that the Washtenaw County public health department completed earlier this year. [.pdf of letter from Dept. of Community Health director]

Washtenaw County health officer Ellen Rabinowitz and sheriff Jerry Clayton.

Miller thanked commissioners and staff, including county health officer Ellen Rabinowitz and retired health officer Dick Fleece, who both attended the July 9 meeting. Miller presented certificates of accreditation, and praised the achievement. It’s the fifth cycle that Washtenaw County has completed, passing stringent standards in the accreditation program, he said. The standards are hard to meet, Miller added, especially when budgets are tight.

Ten program areas were reviewed, and of 140 indicators, the Washtenaw County health department only missed one, Miller reported. “I don’t get to go to too many counties and get to say that – generally, [other counties] miss quite a few more.” Washtenaw County eventually achieved 100%, he noted.

Washtenaw County also passed an optional quality improvement supplement, which only about half of the health departments in Michigan have achieved, Miller reported. It means the county has a comprehensive program for improvement.

“This performance is no fluke,” Miller told commissioners. The Washtenaw County health department maintains many partnerships, which allow it to leverage resources and provide better services for residents. That’s admirable, he said.

Miller highlighted several comments included in the accreditation report, including praise for the health department’s website and for support from county commissioners for initiatives like breastfeeding-friendly policies. He called out Sharon Sheldon, the program administrator for health promotion and disease prevention, for her unit’s work. Special recognition is deserved for the HIV/STD program, the report noted, because client return rates for HIV test results have exceeded 96%. Programs in hearing and vision care were also commended, as was the food safety unit, overseen by Kristen Schweighoefer, and several other programs. Miller also noted that Washtenaw County is a pioneer in trying to manage requests for vaccine waivers.

Miller concluded by saying the state was very impressed by the county health department’s efficient and innovative programs. “You guys have a really terrific health department here,” he said.

Board of Health

A resolution to create a board of health was originally on the board’s June 4, 2014 agenda for final approval, but was postponed until the July 9 meeting. The entity would provide advice on public health issues for the county. Commissioners had given initial approval to the item at their May 21, 2014 meeting.

A description of the board’s duties is outlined in a staff memo that accompanied the resolution:

The purpose and role of a Washtenaw County Board of Health will be to identify public health problems and concerns in the community, establish health priorities, and advise the Board of Commissioners and the Health Department on issues and possible solutions. The Board of Health will serve as advocates and educators for public health services and policies. The Board of Health will provide oversight and guidance to the Health Department, and will recommend a program of basic health services to the Board of Commissioners.

The new Board of Health will have the authority to hear appeals and requests for variances from the local public health and environmental regulations established under the Public Health Code. The Board of Health will have the authority to hear appeals regarding the suspension or revocation of food service licenses.

The resolution creating the health board also dissolves an existing environmental health code appeals board and the hearing board for the Health Department Food Service Regulation. The duties of those boards would be absorbed by the new health board. [.pdf of staff memo]

The recommended size is 10 members, including one ex-officio representative from the county board of commissioners. According to the staff memo, appointments could represent “health service delivery (physicians, dentists, mental health practitioners, administrators); environmental health and conservation, land use planning, food service and nutrition, academia, K-12 education, philanthropy, social service delivery, legal services, and consumers of public health services.”

Members would be compensated for attending each meeting. The total cost for the health board, including in-kind staff support, is estimated at $19,000 annually. The board of health would be expected to convene for the first time in October 2014.

Ellen Rabinowitz, the county’s public health officer, attended the July 9 meeting but did not formally address the board.

Board of Health: Board Discussion

Conan Smith (D-District 9), who had moved to postpone the resolution last month without explanation, told commissioners on July 9 that he had distributed three amendments to the board via email. All of them are making additions to the resolution, he said.

Conan Smith (D-District 9).

Smith noted that commissioners have talked about a board of health taking a leadership role in the county, coordinating public health responses across many agencies. He thought it was important for the board of health to think actively about its role as a coordinator, so one of his amendments included that sentiment in a whereas clause.

Smith also proposed adding two resolved clauses. One clause clarified the roles and expectations of the board of health, to do three things: (1) develop and oversee the strategic plan for the department of health; (2) recommend the annual budget to the county administrator; and (3) work with the county administrator to evaluate the performance of the county public health officer.

The second additional resolved clause is to ensure that the bylaws that will be developed for the board of health will be brought to the county board of commissioners for review and approval. “That’s the document that’s truly going to delegate any authorities that we have from this board,” Smith said.

There was no discussion on these amendments.

Outcome: Smith’s amendments were approved on a voice vote.

There was no additional discussion.

Outcome: On a 7-1 vote, commissioners approved creation of a board of health, over dissent from Rolland Sizemore Jr. (D-District 5). Andy LaBarre (D-District 7) was absent.

Later in the meeting, Ronnie Peterson (D-District 6) said that establishing the board of health is a major step in improving the health for residents of this community, especially children.

Communications & Commentary

During the July 9 meeting there were multiple opportunities for communications from the administration and commissioners, as well as public commentary. In addition to issues reported earlier in this article, here are some other highlights.

Communications & Commentary: Budget Work

Felicia Brabec (D-District 4) reported that Susan McGraw has been hired as a consultant to work with the board on its budget priorities. That work will kick off later this month, she said.

Communications & Commentary: Taubman Fellowship

Yousef Rabhi (D-District 8) reported that he’d learned a lot earlier this summer at Harvard University’s Program for Senior Executives in State and Local Government at the John F. Kennedy School of Government. Ronnie Peterson (D-District 6) pointed out that Rabhi had received the Taubman Fellowship for Executive Excellence, which is given to selected officials and staff through the Southeast Michigan Council of Governments (SEMCOG). Peterson said that to be chosen for a fellowship is one of the highest recognitions that SEMCOG awards. “We should be honored to know that Washtenaw County and a Washtenaw County commissioner was selected,” Peterson said, joking “I just don’t know why they didn’t ask me.”

Arthur Williams, who retired as principle of Huron High School after 19 years in that position.

Communications & Commentary: Proclamations

Several proclamations were given during the July 9 meeting.

Communications & Commentary: Proclamations – Retirements

Board chair Yousef Rabhi (D-District 8) presented a proclamation honoring Arthur Williams, who is retiring as principal of Huron High School in Ann Arbor. [.pdf of Williams' proclamation]

Rabhi noted that he graduated from Huron High School “and Dr. Williams was my principal!” Williams was also a neighbor to Rabhi’s family as Rabhi grew up, so he knows Williams well. Williams has served as principal at Huron High since 1995.

Williams spoke briefly. As educators, he said, “we touch the future.” Many times they don’t know what the effects are of what they do in the schools, he added. Williams noted that Martin Luther King said everyone can be great, because everyone can serve. Williams said his goal has been to try to make this world a better place, by helping raise young people and families, and by trying to make an impact on lives.

He received a round of applause from commissioners and staff.

The board also made a proclamation to Mary Sue Coleman, who recently stepped down as president of the University of Michigan. Coleman did not attend the July 9 meeting.

Communications & Commentary: Proclamations – Ironworkers, UA

Mary Kerr, president of the Ann Arbor Visitors & Convention Bureau, was on hand to receive a proclamation welcoming the Ironworkers International annual instructor training program, which ran from July 12-18 this year. That program, held at Washtenaw Community College, brought in about 700 participants and an estimated economic impact of $2 million. It’s their fifth year holding the program in Washtenaw County. [.pdf of Ironworkers proclamation]

Mary Kerr, president of the Ann Arbor Visitors & Convention Bureau.

The board also gave a proclamation welcoming the United Association (UA) of plumbers and pipefitters for their 61st annual training program. For the past 25 years, that program has been held in Washtenaw County. [.pdf of UA proclamation]

This year, the program runs from Aug. 9-15, also on the WCC campus, bringing about 2,400 participants to the county with an estimated economic impact of $5 million.

Kerr noted that the county also hosts the training week for the National Joint Apprenticeship and Training Committee (NJATC) for the Electrical Industry. This year is a milestone for all three groups, she said. NJATC is in its 25th year and has been coming to Washtenaw County for six years. This year, the NJATC National Training Institute runs from July 26-Aug. 1 at the University of Michigan, and expects a 15% increase in participation compared to last year, Kerr reported.

Kerr said that a conservative economic impact estimate for all three programs is $12 million. “This is new spending in our community – spending that wouldn’t be here if these three training programs were not here,” she added. The spending is on hotels, restaurants, recreation, entertainment, shopping and transportation.

Her goal is to keep these events in Washtenaw County by providing a high level of service and making sure the unions know that they’re appreciated by the community. She thanked commissioners for their continued support.

Communications & Commentary: Proclamations – Gun Safety

The board passed a proclamation declaring July 20-26 as Gun Safety Week in Washtenaw County. [.pdf of gun safety resolution] The goal is to increase public safety “by raising awareness and educating residents of Washtenaw County about how to keep themselves and their families safe.”

During the week, local law enforcement agencies will be providing free gun locks and gun safety information. More information about the week is provided on the county’s website.

Communications & Commentary: Public Commentary

Speaking during public commentary, former Congressman Wes Vivian told commissioners that until four years ago, the U.S. had laws that prohibited or limited contributions by corporations to candidates for political office.

Former Congressman Wes Vivian.

But four years ago, the U.S. Supreme Court overturned those laws in the Citizens United decision, he said. Now, “corporations are sloshing big money into our elections at all levels,” Vivian said. Polls show that about 90% of U.S. citizens oppose that Supreme Court decision. Furthermore, almost 20 state governments have asked the U.S. government to enact a constitutional amendment to overturn the Citizens United decision. “To date, the state of Michigan has not done so, even though it’s been asked to,” Vivian noted.

The Ann Arbor and Ypsilanti city councils have asked Michigan’s government to take action on this issue, Vivian said. But so far, the state legislature has refused to bring it up for a vote, he added. He asked the county board to place a proposal on the Nov. 4, 2014 ballot enabling Washtenaw County voters to ask the state to support a constitutional amendment to overturn Citizens United. He didn’t have suggested wording for such a ballot proposal, but said he’d be glad to work on it.

Yousef Rabhi (D-District 8), the board’s chair, thanked Vivian and said he hoped the board would take action of some sort at a later date. It was an issue about the sustainability of this nation’s democracy, he said.

Conan Smith (D-District 9) also thanked Vivian for raising this issue. The idea of corporate personhood has raised many challenges, he said, “and the notion that just regular citizens are somehow second class in our decision-making process has got to be pre-empted.” It’s incumbent upon elected officials and the county board as a body of elected officials to take a stand, he said. Smith liked the idea of asking county residents to weigh in, saying it would send a great signal to people throughout the state and nation.

Ruth Ann Jamnick also addressed the board during public commentary. She pointed out that she’s one of the four candidates in the Aug. 5 Democratic primary election for the District 5 seat on the county board. She provided a handout with information about her experience and accomplishments.

Ruth Ann Jamnick.

Referring to the board’s discussion about juvenile crime earlier in the evening, Jamnick noted that she had been involved in addressing similar issues years ago in Ypsilanti Township. What makes it different now are the ages of the young people who are involved, she said. At that time, it was youth in their late teens – but now, the youth who are creating these problems are younger. It’s important to make some changes and address these issues. She also noted that the situation isn’t isolated to Ypsilanti Township.

Jamnick concluded by thanking Rolland Sizemore Jr., the district’s current commissioner, for his work.

Earlier this year, Sizemore announced that he did not intend to seek re-election. In addition to Jamnick, the three other Democratic candidates are Victor Dobrin, Wilma Gold-Jones, and Keith P. Jason. The winner of that primary will face Republican Timothy King in the Nov. 4 general election. King is unopposed in the primary.

Thomas Partridge introduced himself as a recent candidate for the state legislature. He urged the public to elect Democrat Mark Schauer as governor in November, and to address the critical needs of affordable housing, public transportation, human rights and health care in Washtenaw County. Too many residents are vulnerable and don’t have the services they need, he said. He criticized the county board’s agenda for not including items that address ending homelessness, providing affordable housing and access to countywide public transportation, and supporting better health care and education for adults. These should be priorities for the board, he said.

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

Absent: Andy LaBarre.

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

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The adjustments increased the general fund budget’s expenses and revenues by $720,486 for 2014, $733,233 for 2015, $745,980 for 2016 and $758,727 for 2017. The county operates on a four-year budget, with the fiscal year matching the calendar year.

The adjustments also followed the recommendation of county administrator Verna McDaniel, and set aside the $3,920,818 surplus from 2013 in unearmarked reserves, rather than spending it. The projected year-end 2014 fund balance is $20,638,675. The county board had previously approved a goal of holding a fund balance equal to 20% of its general fund budget. For 2014, the general fund budget is $103,127,202. [.pdf of staff memo and mid-year budget resolution]

In addition, the following mid-year budget adjustments were made to the general fund:

• Structural adjustments resulting in a $494,677 increase in expenditures for (1) providing employee health care coverage for autism; (2) a consultant to help with the board’s budget priority work, (3) a “local government initiatives” intern; (4) reinstatement of two full-time equivalent positions in the sheriff’s office; and (5) salary adjustments for non-union employees.
• Non-structural, one-time, adjustments that increased expenditures by $65,000 for homelessness initiatives.

The administration recommended that the remaining $160,809 be held as an undesignated allocation until budget projections improve as new information becomes available. The administration will present a second-quarter budget update on Aug. 6, 2014.

In explaining his dissent, Dan Smith noted that it’s been about three months since the board learned that there would be surplus revenue this year, and they’re already spending almost $600,000 of that surplus, which hadn’t been included in the original 2014 budget. There are no shortage of things to spend this money on, he said, including over $250 million in unfunded liabilities “which we have no particular plan to pay for, other than amortizing payments over 26 years – something that our actuary is recommending against us doing.”

One of the reasons to have a four-year budget is to have a plan and then execute that plan, Smith said. If the board wants to “constantly be in budget mode,” then they could simply have a one-year budget. He thought it would be more appropriate to make these changes in the fall, during the board’s annual budget reaffirmation process.

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

From left: Commissioner Kent Martinez-Kratz (D-District 1); Bob Tetens, director of parks & recreation; county prosecuting attorney Brian Mackie; and county treasurer Catherine McClary. (Photos by the writer.)

The board, comprised of elected officials representing nine districts, is responsible for budget decisions. The five positions that are elected by voters countywide – the sheriff, prosecuting attorney, treasurer, clerk/register of deeds and water resources commissioner – head up county departments but must have their budgets approved by the board.

The board is developing a process that will guide budget decisions regarding how to manage budget surpluses or shortfalls, including $3.9 million surplus from 2013 and about $600,000 in higher-than-budgeted property tax revenues in 2014. The county administrator, Verna McDaniel, is recommending that the $3.9 million be kept as general fund reserves. Some county commissioners would rather spend at least a portion of the surplus.

The recommendation from the electeds is to allocate a to-be-determined percentage of any surplus to these five areas: (1) unfunded liabilities for the pension fund; (2) unfunded liabilities for the retiree health care fund; (3) the county’s housing fund, which was eliminated in 2012; (4) the delinquent tax fund reserves, specifically for internal advances on county projects to save bonding costs; and (5) the capital reserve fund or unearmarked reserve fund.

Commissioners made no decision on these recommendations, other than to thank the electeds for their input.

In other budget-related action, the board gave final approval to put a 10-year parks & recreation millage renewal on the Nov. 4, 2014 ballot. Commissioners also set public hearings for two millages that are levied annually in December without voter approval – for support of indigent veterans and their families; and to fund economic development and agricultural activities. Those hearings, to solicit public input, will be held at the board’s July 9 meeting.

The board also gave final approval to set the county’s general operating millage rate at 4.5493 mills – unchanged from the current rate. This is an annual process that includes a public hearing, which was also held on June 4. One person spoke.

A final vote was also taken to create a new committee that will explore funding options for road repair. This follows the board’s rejection – at its meeting on May 21, 2014 – of a proposal to levy a countywide tax for this purpose. No committee members have been appointed yet.

The board was also briefed on work by the community corrections unit, which is part of the sheriff’s department. It provides services that include jail diversion and alternative sentencing options to the Washtenaw County Trial Court, pre-trial services, drug testing, and electronic monitoring. The use of electronic monitoring has increased dramatically, from an average number of cases between 25-30 at any given time in FY 2012-2013, to between 85-115 cases in FY 2013-14.

During public commentary, commissioners heard from David Schonberger, an Ann Arbor resident who thanked the board for passing a resolution last month to oppose oil exploration and drilling in the county. He urged them to use it as a starting point for more action. Specifically, he advocated that the board fund a robust public education campaign and establish an advisory committee to work with Scio Township and the city of Ann Arbor on this issue.

Budget Process

At its Nov. 20, 2013 meeting, the Washtenaw County board of commissioners approved a four-year general fund budget for 2014-2017. As part of that process, the board adopted a set of budget policies, which were revised at that meeting to address a process for allocating any revenue surpluses – beyond the amounts that are contributed to the county’s fund balance.

Here are the relevant policy sections:

11. The Board of Commissioners commits to long-term budget flexibility and sustainability, and an adequate level of cash flow with its attention to fund balance. A healthy fund balance is an essential ingredient and the following was considered to determine an appropriate level as a target: an appropriate level to fund at least 60 days of operations, to help offset negative cash flow (primarily from the seven month delay in property tax collections after incurred expenses), and to assist buffering any unexpected downturns. Therefore, the Board shall plan future budgets to meet the goal of a Reserve for Subsequent Years representing at least 20.0% of General Fund expenditures, net of indirect costs.

12. Any annual surplus or deficit will have options for use recommended by the County Administrator in alignment with the community outcomes and processes as outlined by the adopted Community Impact Resolution 13-TBD, presented to the Board of Commissioner for consideration and confirmed by Board action and authorization in July of each calendar year.

Felicia Brabec (D-District 4) has been leading the budget process for the board, as chair of its ways & means committee. On May 21, 2014, she presented a timeline for budget work in 2014. [.pdf of budget calendar resolution] Highlights are:

• July 24, 2013: Board approved budget priorities. (That document was subsequently amended on Aug. 7, 2013.)
• May 7, 2014: Board authorized county administrator to seek consultant for work on budget priorities. The review and selection process for that consultant is underway.
• June 5, 2014: Budget discussion on the board’s working session agenda, to discuss the status of any general fund surplus or shortfall.
• July 9, 2014: County administrator presents recommendation for using surplus or addressing shortfall, based on board priorities. Board to take initial vote on recommendation.
• Aug. 6, 2014: Final vote set for surplus/shortfall recommendation.

The county had a 2013 general fund surplus of $3.9 million. County administrator Verna McDaniel has recommended to keep that amount in the general fund’s unearmarked reserves, to meet the county’s goal of having reserves that total 20% of the general fund budget.

On May 21, Conan Smith (D-District 9) had expressed frustration at the approach, because the county administrator has already recommended to keep that amount in the general fund’s unearmarked reserves. He thought the process was “turning out to be little more than a rubber stamp of a decision that’s already been proposed by the administration.” Brabec stressed that commissioners will be discussing and making the final decision – which might differ from the administration’s recommendation.

Budget Process: Advice from “The Electeds”

On June 4, board vice chair Alicia Ping (R-District 3) was leading the board meeting in the absence of chair Yousef Rabhi (D-District 8). She noted that there were “special guests” at the meeting who would be making a presentation to the board – three of the five countywide elected officials: Sheriff Jerry Clayton, treasurer Catherine McClary, and prosecuting attorney Brian Mackie. Clerk/register of deeds Larry Kestenbaum and water resources commissioner Evan Pratt did not attend, but supported the written recommendation that was presented to the board. [.pdf of recommendation] These five positions are informally known as “the electeds.”

Alicia Ping (R-District 3) is vice chair of the county board.

Clayton referred to Ping’s introduction, joking that if they are viewed as guests then they should come to more meetings. He said the recommendation speaks for itself, but they wanted to frame it for the board. They understood that the board has the final authority and decision-making for the county budget, and for how revenues are spent. “We respect that,” Clayton said. But the five countywide-elected officials are part of the county leadership too, he added, and are responsible to all 340,000 residents that elected them into office. So they thought it was important to lend their perspective as the board undertakes its new budget process.

The countywide electeds are asking the board to factor in some set-asides for items that will continue to be a challenge, Clayton said. There are no recommendations regarding amounts or percentages, he noted – that determination is up to the board. “We plan on staying available and engaged in the process as you think about the budget,” he said. “We want to be seen as partners, as part of an overall collaborative effort – not as obstacles or as a group that’s trying to get in the way of the process, but quite frankly trying to enhance the process.”

McClary stressed that the recommendation is supported by all five countywide elected officials, and is presented in the spirit of partnership. She noted that several years ago, she had served on the county board, and for part of that time she served with Ronnie Peterson (D-District 6). One of the most important things for the board to assert was its ability to set policy through its budget. “That is your primary responsibility and authority as a board of commissioners,” she said.

The board had taken a momentous step last year when they adopted a four-year budget, McClary continued, “and we want to commend you for that.” But a four-year budget requires being very conservative about revenue estimates. For example, the budget had projected a 1% increase in revenues this year, but the actually increase is about 2% – or about $600,000 more in property tax revenues than budgeted.

In addition, the county recently refinanced some bonds, saving more than $2 million, McClary noted. That amount had previously been budgeted for debt service. [.pdf of press release about bond re-funding] [.pdf of May 28, 2014 bond prospectus]

So knowing that there will likely be unanticipated increases in tax revenues over the next four years, the five electeds are asking that the board consider developing and adopting a formula by which to allocate that money. For example, McClary said the county has “severe” unfunded liabilities for its pension fund – a defined benefit plan called the Washtenaw County Employees’ Retirement System (WCERS) – and for its Voluntary Employees Beneficiary Association (VEBA) retiree health care fund. The county is working on a 27-year amortization to achieve 100% funding, but any money that’s put into the funds today will be compounded over that 27-year period, she noted.

In addition to allocating a percentage of any surplus to unfunded WCERS and VEBA liabilities, other recommendations for allocating surplus revenues are:

• Adding to the county’s delinquent tax fund reserves, specifically for internal advances on county projects to save bonding costs.
• Restoring the county’s housing fund. (The fund had received about $110,000 annually, but was eliminated in 2012 as the county made cuts to prevent a budget deficit.)
• Increasing the budgeted amount for the capital reserve fund or unearmarked reserve fund.

By having a plan and assigning percentages to different priorities, McClary noted, the board can strategically allocate surplus funds. She pointed out that the Ann Arbor city council had done something similar at its June 2 meeting – by voting to set aside 50% of the net proceeds from the possible sale of development rights on the Library Lane lot, and put those proceeds into the city’s affordable housing trust fund.

McClary said she’d also been surprised by Ping’s description of the electeds as “guests,” calling it exceedingly polite. She again stressed that the five electeds hoped to be partners with the board, giving “on-the-ground information about what it’s like to run a department and to provide services to citizens in this county.”

Budget Process: Board Discussion

Conan Smith (D-District 9) responded to the presentation by quipping, “Thanks, roommates!” He asked McClary to explain the recommendation about adding to the delinquent tax fund reserves for internal advances.

Conan Smith (D-District 9).

McClary replied that it’s a topic somewhat separate from any decision to allocate surplus revenues to it. She said the issue can be explored in more detail at a July 10 working session, when she and Evan Pratt – the county’s water resources commissioner – will be making a presentation.

McClary then described the proposal, which she had also mentioned in a presentation to the board at its March 19, 2014 meeting. The idea is for the county to internally fund some of its projects – for drains, roads, public works, parks – instead of bonding. The amount for internal advances would be small – in the $400,000 range or less. She noted that when the county issues bonds, it has to pay a bond attorney and financial advisor, in addition to other costs associated with a bond issue. About half of the money goes toward fees and interest payments, not for the project itself. “We believe we can save the taxpayers quite a bit of money,” she said, by taking care of these financing needs internally, which she called “self-funding.”

When she first became treasurer, McClary noted, there was about $20 million in the delinquent tax revolving fund, and delinquent taxes were about $15 million. So it would have been possible to self-fund some projects then, but the county administration at that time didn’t take that approach. Rather, any excess money above $4 million was moved to the capital projects fund – that’s how the county has been paying debt service for various projects over the last 20 years, she said.

In the past, the county board had authorized keeping up to $4 million in the delinquent tax revolving fund as reserves. Now, McClary is recommending to increase that amount incrementally so that there will be more money for self-funding. She said she already self-funds a small amount of projects, including drain projects from the office of the water resources commissioner.

As another example, McClary said she has discussed using the fund to help the road commission purchase trucks – as the commission typically need about $1 million for five trucks each year. Right now, the road commission is financing those purchases at an interest rate over 3%. McClary said her investment portfolio is earning half a percent. If the road commission agreed to a 2% interest rate in a self-funding arrangement, they’d save money and the general fund would earn more. “That’s the type of thing we want to talk with you about,” she said.

McClary noted that the four-year budget included very conservative estimates on property tax revenues, so there will likely be excess revenues. She told the board that this particular group of commissioners has been very policy-oriented, and meticulous about planning. “We’re thinking this would be a great partnership,” she said.

County administrator Verna McDaniel.

Conan Smith agreed, saying the anticipated excess revenues provide a great opportunity to make strategic, systemic investments. It’s an opportunity that the county hasn’t had in many years, he said, and the advice from electeds is appreciated.

Other commissioners also thanked the group for these recommendations. Andy LaBarre (D-District 7) asked about the recommendation to put a percentage of excess revenues toward unfunded liabilities in the WCERS pension fund. The recommendation includes a statement that WCERS is “now less than 60% funded, a level defined as below acceptable norms.” He asked McClary to elaborate, saying that it drew a bit of a red flag for him.

McClary said she thought the recent bond rating prospectus had mentioned that the pension funding was low. But it had also mentioned the management of the county and the strategic role that the board of commissioners is playing, she said. Board chair Yousef Rabhi (D-District 8) had gone with the administration to meet with the Standard & Poor’s staff prior to the bond issue, McClary said. She noted that she had participated in that meeting via conference call, and reported that Rabhi had conveyed in a very emphatic way the strategic approach that the board is taking. She pointed out that the county was successful in securing a triple-A rating.

The Government Finance Officers Association is the premier organization for assessing standards, McClary noted. LaBarre’s question would be a good one to ask of the county’s actuaries when they present to the board in July, she added. “They have indicated that anything under 60% is getting into territory that becomes problematic,” she said.

LaBarre clarified with McClary that the term “below acceptable norms” didn’t come from an audit or official statement from the actuaries.

Budget Process: Working Session

Felicia Brabec (D-District 4) gave an update on the hiring of a consultant for helping the board on budget-related work. By way of background, at the board’s March 19, 2014 meeting, commissioners authorized county administrator Verna McDaniel to hire a contract employee who will support budget-related work this year for the county board and administration. As county administrator, McDaniel has discretion to spend up to $50,000 on professional services contracts.

Two candidates were selected for interviews, but one of them subsequently withdrew, Brabec said. The remaining candidate will be interviewed on June 5, she added.

Also on June 5, the board would be holding a budget discussion at its working session, including how to use the 2013 budget surplus. Responding to a query from Ronnie Peterson (D-District 6), Brabec said that no decisions would be made at the working session, “but we wanted to start to have that conversation.” At some point, the board will develop a document with guidelines that will direct their decisions about allocating any surplus.

Outcome: This was not a voting item.

Public Hearings for Millages

The board was asked to set public hearings for its July 9 meeting to get input on two millages that Washtenaw county levies without voter approval: (1) for support of indigent veterans and their families; and (2) to fund economic development and agricultural activities.

From left: Commissioners Rolland Sizemore Jr. (D-District 5) and Andy LaBarre (D-District 7), standing, talk with Greg Dill, the county’s director of infrastructure management.

No increase is proposed for the economic development millage, levied under Act 88. The proposal is to levy 0.07 mills in December 2014, raising an estimated $1,022,276 in property tax revenues. In previous years, the resolution setting this millage has outlined how the revenues would be allocated. The largest allocations have gone to the county’s office of community & economic development, and to the nonprofit Ann Arbor SPARK.

However, at its Nov. 6, 2013 meeting, the board adopted a new policy for allocating Act 88 revenues, drafted by Conan Smith (D-District 9). [.pdf of Act 88 policy] The policy included creating an Act 88 advisory committee to make recommendations to the board and prepare an annual report that assesses how Act 88 expenditures have contributed toward progress of goals adopted by the board. The policy allows the committee to distribute up to 10% of annual Act 88 revenues without seeking board approval. The policy also allocates up to 30% of revenues to the county office of community & economic development, which administers Act 88 funding.

For support of indigent veterans, the county is authorized to collect up to 1/10th of a mill without seeking voter approval. That’s because the state legislation that enables the county to levy this type of tax – the Veterans Relief Fund Act, Public Act 214 of 1899 – predates the state’s Headlee Amendment. The county first began levying this millage in 2008, and collects the tax in December. Services are administered through the county’s department of veterans affairs.

Since 2008, the county board has slightly increased the rate that it levies each year. In 2012, the rate was 0.0286 mills – or 1/35th of a mill. It was raised to a rate of 1/30th of a mill in December 2013, to fund services in 2014.

The current proposal is to levy 1/27th of a mill in December 2014, which is expected to raise about $540,887 in revenues for use in 2015.

In previous years, the board has taken action in the fall to levy these millages. When queried by The Chronicle about the earlier timeline this year, finance director Kelly Belknap said the required documentation for these millages must be submitted by Sept. 30. “Prior to submitting the required documentation the Commissioners must first approve the levy. So it is just about timing and getting the documents submitted within the required timeframe,” she said.

Outcome: Without discussion, the public hearings for these millages were set for July 9.

Parks & Recreation Millage

The agenda included a resolution giving final approval to put a 10-year parks & recreation operations millage renewal on the Nov. 4, 2014 ballot.

From left: Ronnie Peterson (D-District 6) and Rolland Sizemore Jr. (D-District 5). Sizemore also serves on the county parks & recreation commission.

The parks & recreation operations millage was first authorized by voters in November 1976 at 0.25 mills for a 10-year period and has been renewed three times. Because of the state’s Headlee amendment, the rate that’s actually levied has been rolled back and is now 0.2353 mills. The current millage expires in December 2016.

If renewed again, it would generate an estimated $3.2 million annually. That’s about half of the parks & recreation annual operating expenses of $6.7 million. Other revenue sources are admission/gate/membership fees charged seasonally at facilities including the Meri Lou Murray recreation center, the water/spray parks, and the Pierce Lake golf course. Funding is also received from state and federal grants as well as private donations. [.pdf of staff memo]

The county parks system receives most of its funding from two countywide millages. In addition to the operations millage, another millage pays for capital improvements and park development. It was also originally levied at 0.25 mills, but has been rolled back to 0.2367 mills.

In addition, a third millage – levied at 0.25 mills but rolled back to 0.2409 mills – funds natural areas preservation, bringing in about $3 million annually. It was first approved by voters in 2000, and renewed for another 10 years in 2010.

The county’s parks & recreation department is overseen by a separate entity – the parks & recreation commission – whose members are appointed by the county board. The county board has the authority to put a parks millage proposal on the ballot, but does not authorize expenditure of the funds. That responsibility rests with the parks & recreation commission. The group meets monthly at the parks & recreation office at County Farm Park, and its meetings are open to the public.

Outcome: Without discussion, the board gave final approval to put the parks & recreation operations millage renewal on the Nov. 4, 2014 ballot.

General Operating Millage

The June 4 meeting included a final vote to set the county’s 2014 general operating millage rate at 4.5493 mills – unchanged from the current rate. This is an annual process that includes a public hearing, which was also held on June 4. One person – Thomas Partridge – spoke, advocating for more resources to provide services for the county’s most vulnerable residents.

Several other county millages are levied separately: emergency communications (0.2000 mills), the Huron Clinton Metroparks Authority (0.2146 mills), two for county parks and recreation (for operations at 0.2353 mills and capital improvements at 0.2367 mills) and for the natural areas preservation program (0.2409 mills). That brings the total county millage rate levied in July to 5.6768 mills, a rate that’s also unchanged from 2013. [.pdf of staff memo]

This is a mandatory procedural action, not a vote to levy new taxes. With a few minor exceptions, the county board does not have authority to levy taxes independently. Millage increases, new millages or an action to reset a millage at its original rate (known as a Headlee override) would require voter approval.

The rates will be included on the July tax bills for property owners in Washtenaw County.

Outcome: The millage rate was set by a unanimous vote, without discussion.

Community Corrections

A request to approve the application for a $421,900 state community corrections grant appeared on the June 4 agenda.

Sheriff Jerry Clayton talks with Judy Foy, left, and Renee Wilson, director of community corrections. Foy serves on the community corrections advisory board.

The grant from the Michigan Dept. of Corrections is for the period from Oct. 1, 2014 through Sept. 30, 2015. This is part of a regular, annual grant process to fund services that include diversion and alternative sentencing options to the Washtenaw County Trial Court, pre-trial services, drug testing, electronic monitoring and “social education,” according to a staff memo. The total program of $1.18 million also includes $240,983 in county matching funds, $280,584 in estimated program revenue, and $239,554 in the use of fund balance. The community corrections program is part of the county sheriff’s office. [.pdf of staff memo] [.pdf of grant application]

This year’s program includes a new position – with a salary range between $31,912 and $43,674 – to help supervise a substantial increase in use of electronic monitoring by all Washtenaw County courts, for pretrial and sentenced offenders as an alternative to jail. According to the staff memo, the use of electronic monitoring increased 256% over the previous fiscal year. Average electronic monitoring cases for FY 2012-13 were between 25-30 at any given time, and increased to between 85-115 cases in FY 2013-14. Increased revenue from the electronic monitoring program and use of fund balance will be used to fund the increase in staffing.

The grant was submitted to the state in May.

Community Corrections: Board Discussion

Felicia Brabec (D-District 4) described community corrections as a “gem” that most residents aren’t aware of. She asked for more information about the increase in the number of people who are served through this program.

Renee Wilson, community corrections director, replied that there’s been a constant increase over the past two or three years, for a variety of reasons. Community corrections has established itself as a service for the courts and county prosecutor’s office that they have confidence in, she said, in terms of pre-trial supervision. Systemically, she added, the county is approaching the management of jail overcrowding better than in the past, diverting people who don’t need to be in jail during the pre-trial period by using community corrections.

Sheriff Jerry Clayton and commissioner Felicia Brabec (D-District 4).

There’s also been an increase in drug testing. “We’ve pretty much become the sole provider of drug-testing services to all of Washtenaw County,” Wilson said. In past years, there were some private entities that provided those services, but the courts have moved to looking at community corrections for that service, she said.

The case load for electronic monitoring is another area that’s increased, Wilson noted. One factor is the increase in specialty courts throughout the county, which each have different requirements for services, including electronic monitoring. Also, the 14-A District Court no longer runs its own tether program, she noted, so that’s coming to community corrections as well.

Courts are doing risk assessment for pre-trial offenders, Wilson explained. Court magistrates, prior to every arraignment, identify people who would be appropriate to release on bond, and determine what type of supervision would be appropriate for them. Some of those people are being referred to the electronic monitoring program, she said.

Brabec asked Wilson to talk about the number of jail beds saved by this approach. According to Wilson, from 2010 to 2013, the diversion efforts resulted in 91,375 jail bed days that weren’t used, saving the county $11,513,250. Wilson noted that these figures only included “successful completions” for all pre-trial and sentenced supervision programs. That is, the figures don’t include savings from people who were initially part of a program but who were then sent back to jail for whatever reason, she said.

Between 2012 and 2013 there was an increase in the estimated per-day cost of a jail bed per inmate. Prior to 2012, the cost was estimated at $85 per day, based on a study that the county had done in 2003. That figure was updated for 2013, based on internal cost studies done by the sheriff’s office. The current estimated per-day cost of a jail bed is $126.

Outcome: Commissioners unanimously approved the grant application.

Road Funding

Commissioners were asked to give final approval to create a new committee that will explore funding options for countywide road repair.

Lew Kidder of Scio Township has been active in road funding issues.

Commissioners had given initial approval to the idea at their May 21, 2014 meeting, after rejecting a proposal to levy a 0.4-mill countywide road tax in December. The tax would have been levied under Act 283 of 1909, which does not require voter approval.

In arguing against levying the tax at this time, some commissioners cited the need to study funding options – including a possible Act 283 levy – before making a decision. The committee will consist of seven members: (1) a road commissioner or designee; (2) the road commission managing director or designee; (3) the county board’s road commission liaison; (4) one additional county commissioner; (5) a position representing townships; (6) a position representing incorporated municipalities; and (7) a member of the general public. Members will be appointed at a later date.

The county administrator will help provide administrative support to the committee. The resolution also states that the county road commission could present a road funding plan at the board’s annual meeting in the fall “as Act 283 of 1909 provides.”

For additional Chronicle coverage on road-related issues, see: “County Board Continues Weighing Road Tax,” “County Board Debates Expanded Road Commission,” “County Board Sets Hearing on Road Tax,” “County Considers Road Funding Options,” “No Major Change Likely for Road Commission” and “Group Explores Road Commission’s Future.”

On June 4, there was no discussion on this item.

Outcome: The resolution passed on a 6-1 vote, over dissent from Conan Smith (D-District 9). Commissioners Yousef Rabhi (D-District 8) and Dan Smith (R-District 2) were absent.

Board of Health

The June 4 board agenda included a resolution to create a board of health, an entity that would prove advice on public health issues for the county. Commissioners had given initial approval to the item at their May 21, 2014 meeting.

A description of the board’s duties is outlined in a staff memo that accompanied the resolution:

The purpose and role of a Washtenaw County Board of Health will be to identify public health problems and concerns in the community, establish health priorities, and advise the Board of Commissioners and the Health Department on issues and possible solutions. The Board of Health will serve as advocates and educators for public health services and policies. The Board of Health will provide oversight and guidance to the Health Department, and will recommend a program of basic health services to the Board of Commissioners.

The new Board of Health will have the authority to hear appeals and requests for variances from the local public health and environmental regulations established under the Public Health Code. The Board of Health will have the authority to hear appeals regarding the suspension or revocation of food service licenses.

The resolution creating the health board also dissolves an existing environmental health code appeals board and the hearing board for the Health Department Food Service Regulation. The duties of those boards would be absorbed by the new health board. [.pdf of staff memo]

The recommended size is 10 members, including one ex-officio representative from the county board of commissioners. According to the staff memo, appointments could represent “health service delivery (physicians, dentists, mental health practitioners, administrators); environmental health and conservation, land use planning, food service and nutrition, academia, K-12 education, philanthropy, social service delivery, legal services, and consumers of public health services.”

Members would be compensated for attending each meeting. The total cost for the health board, including in-kind staff support, is estimated at $19,000 annually. The board of health would be expected to convene for the first time in October 2014.

Ellen Rabinowitz, the county’s public health officer, attended the June 4 meeting but left when she was told that the item would be postponed.

There was no discussion on this item, but Conan Smith (D-District 9) moved to postpone it until the board’s July 9 meeting. He did not give an explanation for the postponement.

Outcome: The item was postponed until the July 9 meeting.

Bonding for Malletts Creek Drain Project

The board was asked to authorize bonding for up to $650,000 to fund the Malletts Creek Springwater sub-drain project in Ann Arbor. Bond payments would be made through special assessments against the city of Ann Arbor. The project will include stormwater management improvements in the city’s Springwater subdivision. According to a staff memo, the financing will be made through the state revolving loan fund at 2.5% over 20 years. [.pdf of staff memo]

There was no discussion on this item.

Outcome: Commissioners granted initial approval for the bonding. A final vote is expected on July 9.

Proclamations

There were two resolutions of appreciation on the June 4 agenda.

Gloria Brooks, CEO of the nonprofit Arbor Hospice.

Alicia Ping (R-District 3) presented a resolution honoring Arbor Hospice on its 30th anniversary. It was founded in 1984 by Mary Lindquist, a registered nurse, to provide care for the terminally ill and their families.

The nonprofit’s CEO, Gloria Brooks, was on hand to accept a framed copy of the resolution. She thanked commissioners, saying it was “amazing to have a 30-year journey as we help families experience their end-of-life journey.” Arbor Hospice helps 50% of the residents of Washtenaw County, she said – it’s the largest provider in this county. She invited commissioners to a celebration on June 11.

Brooks received a round of applause from the board and staff.

Another resolution of appreciation honored Roy Wilbanks for his service to Washtenaw County and Eastern Michigan University. Wilbanks, a former EMU regent, did not attend the June 4 meeting.

Communications & Commentary

During the June 4 meeting there were multiple opportunities for communications from the administration and commissioners, as well as public commentary. In addition to issues reported earlier in this article, here are some other highlights.

Communications & Commentary: Oil Drilling

David Schonberger spoke during public commentary, introducing himself as a resident of Ann Arbor from the district represented by Andy LaBarre (D-District 7). He provided a handout to commissioners, in addition to his commentary. [.pdf of handout]

He thanked commissioners for passing a resolution at their May 21, 2014 meeting to oppose gas and oil drilling. He urged them to use it as a starting point for more action. Specifically, he advocated that the board fund a robust public education campaign and establish an advisory committee to work with Scio Township and the city of Ann Arbor on this issue. Schonberger noted that his research shows a gray area in relevant state laws, opening the door to “numerous creative ways to intervene and discourage that particular type of local economic development.”

From left: Corporation counsel Curtis Hedger and commissioners Conan Smith (D-District 9) and Felicia Brabec (D-District 4).

Schonberger cited a 1990 summary judgment upheld by the U.S. Federal Court of Appeals, 6th Circuit Court in the case of West Bay Exploration Co. v AIG et. al. [West Bay is seeking a permit for oil exploration in Scio Township.] “This citizen action is a statement about documented violations of state law, reckless irresponsibility, intentional corporate misconduct, and gross negligence at facilities located in Michigan,” he said. He added that NIMBY is particularly justified in this matter, and that the risks of such proposed activities in Washtenaw County vastly exceed any potential benefits.

Responding to his commentary, Conan Smith (D-District 9) agreed that the county could be doing more to help people restrain gas and oil exploration here. Educating residents is one of the key ways to do that, within the structure of the current state law, he added. The county “may or may not have regulatory authority that we can leverage, but we can certainly help people to organize, and to use their own property rights to protect their interests and the interests in the environment,” Smith said.

As an example, Smith stated that it takes a majority of property owners to agree to lease their land in order for the exploration to happen. There are also clauses regarding environmental protection that can be incorporated into lease agreements. He reported that the environmental health code board of appeals has been discussing these issues, “and I’ll make sure we continue the conversation at that level.”

Communications & Commentary: VEBA, WCERS Special Meeting

County administrator Verna McDaniel reported that there will be a special joint meeting of the boards of the Washtenaw County Employees’ Retirement System (WCERS) and the Voluntary Employees Beneficiary Association (VEBA) retiree health care fund. It will take place on Thursday, June 12 at 1 p.m. in the county administration building’s boardroom, 220 N. Main St. The actuarial reports will be presented for those two plans.

Communications & Commentary: Misc. Public Commentary

Thomas Partridge spoke during both opportunities for public commentary. He urged the board to keep focused on the priorities of ending homelessness, increasing affordable housing, expanding public transportation, and providing better access to health care and education. He also supported Democrat Mark Schauer for governor, so that these priorities can be addressed on a statewide level.

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

Absent: Dan Smith, Yousef Rabhi.

Next regular board meeting: Wednesday, July 9, 2014 at 6:30 p.m. at the county administration building, 220 N. Main St. in Ann Arbor. The ways & means committee meets first, followed immediately by the regular board meeting. [Check Chronicle event listings to confirm date.] (Though the agenda states that the regular board meeting begins at 6:45 p.m., it usually starts much later – times vary depending on what’s on the agenda.) Public commentary is held at the beginning of each meeting, and no advance sign-up is required.

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Former county commissioner Barbara Bergman, left, talks with Felicia Brabec (D-District 4) and Yousef Rabhi (D-District 8) before the board’s May 21, 2014 meeting. Bergman spoke during public commentary to oppose a possible road tax. (Photos by the writer.)

The vote on levying a millage was 2-6, with support only from Dan Smith (R-District 2) and Conan Smith (D-District 9). Alicia Ping (R-District 3) was absent. The tax would have been levied under Act 283 of 1909, which does not require voter approval.

Several commissioners spoke against levying this kind of tax at this time. Andy LaBarre (D-District 7) advocated for waiting to see whether the state provides more funding for roads. Ronnie Peterson (D-District 6) reported that the boards of Willow Run and Ypsilanti public schools are considering levying tax increases this summer of 2.8 mills and 1.2 mills, respectively. The state passed legislation that enables school districts to levy millages for debt retirement without voter approval. Noting that a new public transit millage had been approved by voters earlier this month – in Ypsilanti, Ypsilanti Township and Ann Arbor – Peterson said the communities that he represents would be hard-pressed to handle yet another tax increase.

Dan Smith argued that there are few funding options available to the county to pay for road repair, and that the need for additional revenues is critical because the roads are in such bad shape. He said he was well aware of the reasons why this was a bad plan – even a terrible one – but added that the only thing worse would be to do nothing. Conan Smith pointed out that because all of the board seats are up for election this year, residents will have a way to weigh in on this decision, albeit indirectly. “This is the most defensible moment that we have” to levy a tax that doesn’t require voter approval, he said.

The May 21 meeting also included a public hearing on the possible levy. And the board heard from people on the topic during general public commentary. In total, seven people spoke about the road funding issue. Former county commissioner Barbara Bergman, who is an Ann Arbor resident, argued against levying the tax, while former state Rep. Rick Olson of York Township urged commissioners to levy the full 1-mill amount allowed under Act 283. Another resident argued against any tax that isn’t approved by voters, calling it taxation without representation.

After the tax levy resolution was rejected, Yousef Rabhi (D-District 8) brought forward a resolution to create a seven-member road funding committee that would explore options – including Act 283, as well as other possible revenue sources like bonding or a voter-approved tax. The initial vote to form the committee passed on a 6-2 split, over dissent from Conan Smith and Dan Smith. A final vote is expected on June 4. If approved, members would be appointed at a later date, with the direction to provide a road funding plan to the board in the fall.

Commissioners also weighed in to oppose oil exploration and drilling in the county, prompted by a company’s permit application to the state to drill in Scio Township. The vote was 7-1, over dissent from Dan Smith. Two residents spoke during public commentary,urging the board to oppose oil drilling.

During deliberations, Dan Smith argued that the issue was outside of the county’s purview, because the county can’t regulate oil drilling. He noted that the easiest way to prevent oil drilling is for property owners not to sign leases with companies that seek to drill on their land. Other commissioners supported the resolution, citing environmental and public health concerns, including the proposed drilling location’s proximity to the Huron River.

In other action on May 21, commissioners took initial steps to: (1) put a 10-year countywide parks and recreation operations tax renewal on the Nov. 4 ballot, at 0.2353 mills; (2) create a board of health that would give advice on public health issues; and (3) approve an application for a $940,000 federal grant that the county would make on behalf of Ann Arbor SPARK, the local economic development agency. Funds would be used to help redevelop the former General Motors Willow Run Powertrain plant in Ypsilanti Township for use as a connected vehicle testing facility.

Given final approval on May 21 was this year’s allocation to local nonprofits through the coordinated funding process, in which the county participates.

The board also approved a process that will determine how the $3.9 million budget surplus from 2013 will be allocated. Conan Smith said he felt “personally let down” by the approach, because the county administrator has already recommended to keep that amount in the general fund’s unearmarked reserves. He thought it was “turning out to be little more than a rubber stamp of a decision that’s already been proposed by the administration.” Felicia Brabec (D-District 4), who’s leading this process, stressed that commissioners will be discussing and making the final decision – which might differ from the administration’s recommendation.

Road Tax

The May 21 agenda included a proposal to levy a 0.4-mill countywide road tax in December. The tax could be levied under Act 283 of 1909, which does not require voter approval. The board also held a public hearing on the issue, and heard from several people during public commentary.

Barb Fuller, one of three road commissioners, attended the May 21 meeting of the county board.

Prompted in part by what many view as a chronic underfunding of roads in Michigan – combined with a particularly harsh winter – county commissioners have been discussing for months how to generate more revenues to repair the county’s road network.

At the board’s May 7, 2014 meeting, Dan Smith (R-District 2) brought forward a resolution that would have authorized a 1-mill tax to be levied December 2014 – under Act 283. A 1-mill tax would generate $14.34 million “to repair 2013–14 winter damage to the roads, streets and paths in Washtenaw County.”

On May 7, the board debated the issue at length but ultimately voted to postpone the resolution until May 21 over dissent from Alicia Ping (R-District 3).

On May 21, Dan Smith brought forward a revised resolution that addressed some concerns raised by corporation counsel Curtis Hedger during the May 7 meeting. The new resolution proposed an 0.4-mill levy and included a list of specific projects that the tax revenues would fund. [.pdf of May 21 resolution]

The resolved clauses stated:

NOW THEREFORE, BE IT RESOLVED that pursuant to the authorization of Public Act 283 of 1909 (MCLA 224.20), the Washtenaw County Board of Commissioners approves a millage of 0.4 mills to be levied against all real property in the County, which will generate approximately $5,—,— to be collected in December, 2014, for use in calendar years 2014 and 2015 to keep existing Washtenaw County public roads, streets, paths, bridges and culverts in reasonable repair, and in condition reasonably safe and fit for public travel; and that this levy be exempt from capture by TIF Districts or TIFAs to the greatest extent allowed by law.

FURTHERMORE, BE IT RESOLVED that the Washtenaw County Board of Commissioners agrees with Washtenaw County Road Commission’s initial determination, as attached hereto and made a part hereof, and levies said millage for the purposes therein.

FURTHERMORE, BE IT RESOLVED that the Washtenaw County Board of Road Commissioners is invited to present a revised determination in accordance with Act 283 of 1909 to the Board of Commissioners at its annual meeting on September 17, 2014 for an additional levy not to exceed 0.6 mills.

FURTHERMORE, BE IT RESOLVED that Washtenaw County Corporation Counsel is directed to provide an exhaustive formal written opinion, by September 17, 2014, which clearly and convincingly details the exact mechanism under which Act 283 of 1909 taxes may be levied in excess of Article IX, Section 6 constitutional limits without a vote of the people; and that the Washtenaw County Board of Commissioners waives any attorney/client privilege concerning this opinion.

FURTHERMORE, BE IT RESOLVED that the Washtenaw County Board of Commissioners asks the county’s legislative delegation, State Senators Randy Richardville and Rebekah Warren and State Representatives Gretchen Driskell, Jeff Irwin, David Rutledge and Adam Zemke, to request an Attorney General opinion regarding the ability for counties to levy a tax under Act 283 of 1909 in excess of Article IX, Section 6 constitutional limits without a vote of the people.

For additional Chronicle coverage on road-related issues, see: “County Board Continues Weighing Road Tax,” “County Board Debates Expanded Road Commission,” “County Board Sets Hearing on Road Tax,” “County Considers Road Funding Options,” “No Major Change Likely for Road Commission” and “Group Explores Road Commission’s Future.”

Road Tax: Public Commentary

During the first opportunity for public commentary – at the board’s ways & means committee meeting – committee chair Felicia Brabec (D-District 4) announced that the device used to time the speaking turns was broken. Instead, time would be marked by holding up handwritten cards, she said.

Yousef Rabhi (D-District 8) kept time manually for public commentary, as the boardroom’s timing device was broken.

Former county commissioner Barbara Bergman – a Democrat from Ann Arbor – urged commissioners not to levy a tax for roads. If they do, they’re sending a message to Lansing “that we are rich enough to take care of ourselves,” she said, and that the state doesn’t need to help meet the needs of its vulnerable citizens. But this is patently untrue, she said. There are huge unmet needs in Washtenaw County – for food, shelter, services for children and for adults who are returning to the community after incarceration.

Beyond the ethical considerations, Bergman said, the county doesn’t need to do this because “roads have very loud voices.” Officials at the local and state levels want to be re-elected, she noted, and she bet that funds could be found to repair the roads to ensure that motorists are happy. One way is for state legislators to adopt an equitable, progressive tax code for Michigan, she said. If that doesn’t happen, then local millages should be used to support those who are often invisible, she said. Mental health funds are about to be cut 30%, she noted, which means that services for 240 customers of the county’s Community Support & Treatment Services (CSTS) will be cut. Affordable housing and health insurance are also needed, Bergman said. “A millage to meet human services needs could pass a test with ethics,” she said. “A millage for roads cannot.”

Thomas Partridge spoke generally about the need to support the county’s most vulnerable, including affordable housing, public transportation, education and health care. Everyone needs adequate roads, he added, and if it’s left to Lansing, “we are left with potholes.” He also supported a progressive tax to generate more funds for local governments.

Rick Olson introduced himself as a York Township resident and former state representative of District 55. In 2011 he became very interested in transportation, he said, and generated a report on how much money would need to be spent to repair Michigan’s roads and bridges – $1.4 billion at that time. That was a figure used by the governor’s workgroup on infrastructure, on which Olson served. It led to a series of bipartisan bills that were introduced in January 2012, with the idea that $1.2 billion would be raised at the state level, he said, and the remainder raised through an optional county vehicle registration fee. Unfortunately, Olson said, the legislation wasn’t enacted. He said the amount needed has now been updated to just under $2.4 billion. Even if the legislature comes up with additional funding for roads, it likely won’t be enough, he said. Olson told commissioners that the county needs to invest a considerable amount, in addition to whatever the legislature does. He fully supported an Act 283 millage at the full 1-mill level.

Former state representative Rick Olson and county commissioner Felicia Brabec (D-District 4).

A man who didn’t give his name said he opposed the road millage, especially if it were levied without a public vote. “Citing some law from 1909 doesn’t change the fact that this is taxation without representation,” he said. He told commissioners that 40% of county residents aren’t property owners, and wouldn’t pay the tax. “So once again, government is picking on a select group of people to pay for the benefit of all,” he said. “There is no word to describe this other than unfair.” Washtenaw County already has the highest average property tax in Michigan, he said. Prices are increasing, and people have to adjust their budgets accordingly. “We don’t have a golden pocket to reach into.” Yet government feels entitled to take more from its residents. He said he’s tired of his government telling him what they’re going to take, instead of listening to him tell them what they can have. “So I will organize, I will educate, I will motivate, and I will vote,” he said, so that government will be accountable for its budget and debts, just as the government holds him accountable.

Jim Bates of Ann Arbor Township asked if it would be possible for the county to assess a gas tax. He said he was just curious about that. [In Michigan, county governments don't have authority to levy a gas tax.]

Victor Dobrin said he’s been an Ypsilanti Township resident 23 years. [Dobrin is also a candidate for the District 5 seat on the county board.] The proposed road millage isn’t popular, he said. Government doesn’t always do what’s popular, but they look for the common good. He respected Olson’s opinion, however he thinks that solving any problem in society begins by defining the root cause. Government should take an engineering approach to problem solving. What is the root cause? Why are our roads crumbling? Is the proper work being done when roads are constructed or fixed? He noted that right now, you can see workers throwing shovels of asphalt into potholes, but that’s not going to solve the problem. It will result in wasting lots of money. The root cause is in the way that roads are engineered and built, he said.

Road Tax: Board Discussion

Andy LaBarre (D-District 7) responded to public commentary by thanking Barbara Bergman, noting that her comments reflect his own opinion. He also said the issue isn’t one of taxation without representation, as residents are represented by the county commissioners.

Rolland Sizemore Jr. (D-District 5).

Rolland Sizemore Jr. (D-District 5) said he wouldn’t support a road tax. About a year ago, he said, he and Ken Schwartz – who was then a road commissioner – tried to get a group together to work on this issue, but Sizemore didn’t think that had happened. So he didn’t think enough work went into the current proposal, and he’d like to take more time to work on it.

Dan Smith (R-District 2) told commissioners he had modified his original resolution to address concerns that the county’s corporation counsel, Curtis Hedger, had laid out in a confidential memo to the board. The proposed millage is now 0.4 mills, rather than the full 1 mill. The resolution includes a list of proposed projects, and notes that this process is starting earlier than the board’s annual meeting because of the harsh winter.

Smith then formally withdrew his earlier resolution from May 7, and moved the new modified resolution for consideration.

Yousef Rabhi (D-District 8) thanked Smith for his work on this proposal. LaBarre echoed that thanks, but said he wanted to wait a bit to see what the state legislature does regarding road funding. The process required by Act 283 gives the board some breathing room, he said, “and hopefully it’s a moot issue.”

Kent Martinez-Kratz (D-District 1) agreed with Sizemore that the issue needed to be studied further. More funding is expected from the state, and a community in his district – Scio Township – recently approved a special assessment for roads, he noted. If the county levies a road tax, it would be a bit hard on those taxpayers, he added.

Martinez-Kratz wondered if Hedger had time to review Smith’s new resolution, to see if there were any concerns. Based on the previous memo from Hedger, levying an Act 283 millage wasn’t legal, Martinez-Kratz said. [The memo from Hedger was not released to the public.]

Regarding the list of projects from the road commission, Martinez-Kratz said not all communities would get funding, so some of his constituents think that’s inequitable.

Dan Smith (R-District 2), standing, consults with corporation counsel Curtis Hedger while Pete Simms of the county clerk’s office looks on.

Sizemore said that as the board’s liaison to the road commission, he’d be happy to work with county commissioners and road commissioners to come up with a plan. He didn’t think they could count on the state.

Ronnie Peterson (D-District 6) reminded the public that this effort was driven by the road commission, not by the county board – though he noted that Dan Smith has been an advocate for road funding.

Peterson said all local communities have the ability to address these road issues, and he wanted to work with communities within the county to help address their needs. But it’s the road commission that has responsibility, he said.

There isn’t any urgency to levy a tax now, Peterson continued. The board needs to be patient and see what comes out of Lansing, he said.

Peterson also noted that Ypsilanti and Ypsilanti Township, which he represents, already have high taxes. What’s more, the boards of Willow Run and Ypsilanti public schools are considering levying tax increases this summer of 2.8 mills and 1.2 mills, respectively. The state passed legislation that enables school districts to levy millages for capital improvement debt retirement without voter approval – which Peterson called a ridiculous law.

In addition, Ypsilanti and Ypsilanti Township will have another new millage, along with Ann Arbor, that was passed by voters earlier in May for public transit. In total, it’s “a huge increase in new taxes,” Peterson said. “And believe me – I’m no rock star conservative on taxes. I believe you pay for what you get.” However, Peterson said the communities that he represents – Ypsilanti, Ypsilanti Township and Superior Township – would be hard-pressed to handle yet another tax increase for roads.

Ronnie Peterson (D-District 6).

Peterson indicated that he’d be interested in exploring the option of bonding to fund roads.

Dan Smith argued that there are few funding options available to the county to pay for road repair, and that the need for additional revenues is critical because the roads are in such bad shape. The proposed millage is only for 0.4 mills, he stressed – not the full 1 mill.

The easiest option is to do nothing, Smith said – to do more studies and plans, or wait for Lansing. “The reality is that the roads are terrible,” he said. Even if Lansing provides more funding – and he wasn’t hopeful about that – it won’t be enough for Washtenaw County. Smith pointed out that this would be an annual levy, and if there’s no need for it in 2015, the county wouldn’t levy it.

Smith also noted that the millage is tied to the road commission’s plan, which is similar to one that the road commission brought forward in the fall of 2013. There’s nothing surprising about it, he said.

Many communities don’t have the taxing ability to pay for maintenance of the county’s major roads that run through their jurisdiction, Smith said. The best example is the six miles of Austin Road in Bridgewater Township. It’s a major road in a township with the lowest taxable values in the county. So some communities just don’t have the capacity to deal with these major roads, he said.

Smith also didn’t think it was fair to require, for example, Northfield Township, Webster Township and Ann Arbor Township to take care of roads like Newport, North Territorial and Pontiac Trail – “roads that the much broader community uses,” he said. Some of these roads, like Newport, cross multiple jurisdictions. For these reasons, major roads should be taken care of by the county, Smith argued.

“This is a bad plan, for lots and lots of reasons,” Smith continued. “I would even say it might even be a terrible plan. The only thing that might be worse than this bad plan is to continue doing what we’ve been doing, which is absolutely nothing. The roads are crumbling underneath us.” There will not be a perfect plan, no matter how long they talk about it, he said.

Roy Townsend, managing director of the Washtenaw County road commission.

There are two problems with a voter-approved levy, Smith said. First, it wouldn’t be on the ballot until November. Second, it would likely be for a larger amount and a longer period – like a half-mill for four years or more. The other problem is one that Conan Smith had raised during the May 7 discussion, Dan Smith noted – competing interests for millages that might go on the ballot. He pointed out that the parks & recreation operations millage renewal will be on the November 2014 ballot. Former commissioner Barbara Bergman had mentioned other possibilities for millages, he noted, such as funding for human services.

An Act 283 millage would be at a lower rate for only one year, Smith said. Even though he didn’t like it, “it is the least-bad option I think we have right now.”

Sizemore expressed frustration at not doing anything, then proposed sitting down with road commissioners and managing director Roy Townsend to figure out what to do.

Martinez-Kratz replied to Smith’s comments, saying that if it’s a bad or even terrible plan, then “it’s not worth spending taxpayers’ money on.”

Peterson asked if communities would have the ability to opt-out of an Act 283 levy. Hedger replied that there is no opt-out option.

Peterson then asked if any other local leaders – from city councils or township boards – had contacted the county in support of an Act 283 millage. He felt that if other elected officials were supportive, they’d be there tonight. All of the communication he’d received was urging him not to support an Act 283 millage, Peterson said. It’s difficult for him, especially during an election year, to take responsibility for a road tax when other elected officials aren’t also supporting it.

Conan Smith (D-District 9) asked how short the road commission was in terms of funding related to winter road maintenance. Townsend replied that the county had received some additional funding from the state to cover some of the winter overages, like salt usage, diesel fuel and overtime costs. “But what they didn’t really give us money for is to fix the roads,” he said.

Road conditions have continued to decline, Townsend said. He pointed to a handout he’d provided to commissioners, showing that Michigan ranks last among all 50 states in state highway expenditures per capita. The data was from 2011, but since then the state hasn’t increased its funding, he noted. Most states are putting in at least double the amount of per-capita funding for roads. For example, Pennsylvania’s per-capita spending was $557 compared to $135 in Michigan.

County administrator Verna McDaniel.

Townsend said the county’s infrastructure was in poor condition prior to this harsh winter, with deep freezes and thaws that made things even worse. Generally, the road commission uses about 400 tons of cold patch. This year, the commission used 1,400 tons – enough to fill about 300,000 potholes. These are temporary fixes, Townsend said.

Some of the projects on the plan that the road commission has presented to the board this year have been on previous plans presented since 2011, Townsend said – like work on North Territorial and Scio Church roads, among others. The plan would improve 44 miles of road, used by over 100,000 people every day. “So I think 100,000 people would probably appreciate that you could fix those 44 miles of road,” he said. The tax for an average $200,000 home would be just $40, he noted.

Townsend said that any state legislative action likely wouldn’t result in funding until 2015, so the roads would go through another winter. “And god help us what it’s going to look like next spring,” he said. There’s a short window for construction, he noted.

Conan Smith (D-District 9) said the upshot is that the roads are terrible, and they won’t get better as the county waits for legislative action from Lansing or for voters to weigh in this November. There’s an opportunity now, he said, with only a modest hit to taxpayers and an immediate benefit to the community.

C. Smith also responded to the public commentary about taxation without representation. That phrase emerged in a different context, he said. The people are represented in this process, he noted. The elected county commissioners have a duty to represent the interests of their constituents, to listen carefully to their needs. “This is a representative process by design,” he said.

Regarding the road tax issue, both sides have been well-articulated, C. Smith said. If there’s any time to do something like this without a vote of the people, it’s now – just a short time before an election. Because all of the board seats are up for election this year, Smith said, residents will have a way to weigh in on this decision, albeit indirectly. “This is the most defensible moment that we have” to levy a tax that doesn’t require voter approval, he said.

Dan Smith (R-District 2).

Felicia Brabec (D-District 4) spoke next, noting that the levy couldn’t occur until December, so there’s time to figure out what their other options are. She wants to take that time.

C. Smith asked Townsend how the finances would work with an Act 283 tax. Townsend explained that the road commission would want some kind of contractual agreement with the county before it bid out work this summer. It would be similar to how townships contract with the road commission, and then later reimburse the road commission for the work. It’s a legal question to be determined if Act 283 funds can be used for reimbursement, Townsend noted.

Dan Smith made a distinction between “funding” and “financing.” The funding mechanism would be through Act 283. If the board passed the road tax resolution that night, it would be a commitment to provide that funding when the tax is levied in December.

At this point, Dan Smith distributed another resolution – dated Oct. 15, 2014. According to Hedger, the board’s official vote to levy an Act 283 tax must occur in the fall, Smith noted. The draft resolution he distributed would ratify the funding decision regarding the 0.4 mills. The draft resolution also would give the board the option of levying an additional 0.6 mills. [.pdf of Oct. 15, 2014 draft resolution]

These decisions about funding are separate from how the county actually handles the financing, D. Smith explained. Sometimes the county issues tax anticipation notes – that’s what this would be, he said. There might be other options, like using the general fund’s fund balance or short-term borrowing. But the funding would still come through the Act 283 levy in December.

D. Smith also addressed Peterson’s comments about the lack of any other local leaders at the May 21 meeting. He said that one reason is because townships have no authority or responsibility for roads. It’s the county board that has the tools for funding and fixing the roads countywide. He acknowledged that some townships have been very aggressive in their road programs, and some municipalities have vastly better roads as a result.

At this point, Rabhi called the question – a procedural move designed to end discussion and move toward a vote. Commissioners unanimously approved calling the question.

Outcome on main resolution to levy an 0.4-mill tax under Act 283: The resolution failed on a 2-6 vote, with support only from Dan Smith and Conan Smith. Alicia Ping was absent.

Road Tax: Roads Funding Committee

Yousef Rabhi then proposed a resolution to create a roads funding committee. He read aloud the resolution that he’d written by hand during the previous deliberations.

An excerpt from Yousef Rabhi’s handwritten resolution regarding a roads funding committee.

The committee would consist of seven members: (1) a road commissioner or designee; (2) the road commission managing director or designee; (3) the county board’s road commission liaison; (4) one additional county commissioner; (5) a position representing townships; (6) a position representing incorporated municipalities; and (7) a member of the general public.

The county administrator would help provide administrative support to the committee. The resolution also stated that the road commission could present a road funding plan at the board’s annual meeting in the fall “as Act 283 of 1909 provides.”

Conan Smith said he appreciated the sentiment, but wouldn’t support it. The board just received recommendations from a previous committee that had worked on road commission issues, he noted – that happened on May 7, 2014. He noted that leaders of local government “made it abundantly clear at that point that they don’t think the county board of commissioners had a role to play in their road funding situation.”

There was a specific opportunity this year to intervene in funding, C. Smith said, because of the harsh winter. But he didn’t believe that road maintenance should be a higher priority than other things, like public safety, human services, public health and environmental health.

The board had just voted not to get involved by not levying an Act 283 tax, he said. “I think that should be the end of the conversation.”

Ronnie Peterson asked for an explanation about what the board had just voted on, and what Rabhi had subsequently proposed. Felicia Brabec explained that the board had rejected a resolution to levy the Act 283 tax. Now they were considering a proposal to form a road funding committee. Peterson said he just wanted the public to be clear about what had happened.

Andy LaBarre (D-District 7).

Andy LaBarre said that to him, the Act 283 issue was one of timing. None of these options are good, he added: “We’re choosing to pursue bad or less bad.” He felt the state legislature had the potential to shock everyone and do something proactive. If that doesn’t happen, it would be possible to consider the Act 283 levy this fall, he noted. If they do eventually levy the millage, it would help but wouldn’t be a comprehensive solution, LaBarre said.

Dan Smith noted that there are few mechanisms available for road funding – either levy a property tax under Act 283, or take a bond or millage proposal to the voters. The county can’t institute a gas tax or vehicle registration fee, he said. The board can spend the next six months talking about their options, but “barring some extraordinary action from Lansing, our options in six months are going to be exactly what they are now,” D. Smith said. And levying Act 283 in the fall “isn’t going to be any nicer than it is right now.”

Clearly frustrated, D. Smith said that instead of acting, the board is doing what government always does – forming yet another committee to study it more. The issue has already been studied, he said. “Nobody wants to touch this hot potato.”

Conan Smith observed that the county could issue general obligation bonds, which wouldn’t require a voter referendum.

Peterson noted that levying Act 283 was difficult for him during an election cycle. He said he was progressive so he didn’t worry about winning over conservatives, but he was interested in saving people’s tax dollars. Citizens haven’t brought forward this proposal, he said, nor has the request come from local community leaders.

Outcome: The resolution creating a roads funding committee was given initial approval a 6-2 vote, over dissent from Dan Smith and Conan Smith. Alicia Ping was absent. A final vote is expected on June 4.

Road Tax: Public Hearing

Later in the evening – after the road tax resolution was defeated – the board held a public hearing on the issue, which had been set at the May 7 meeting. Two people spoke.

Thomas Partridge said it was important to find funding for road repair. No business wants to locate in a county that doesn’t maintain its roads. Voters need to be educated about the importance of this issue, as well as other concerns like affordable health care, public transportation, and affordable housing. The state legislature backs away from supporting these critical needs. Partridge supported Democrat Mark Schauer for governor, saying that Schauer would support these issues.

Sandra Carolan told commissioners that she pays the taxes for her parents’ property in Chelsea. She was thankful for the discussion, but she can’t ask her 91-year-old mother who’s on a fixed income to support an increased millage “for a solution that really is just a band-aid.” New technology needs to be used on the roads. She said if she goes to the store to buy a blouse and only finds bad blouses, she doesn’t buy one at all.

Parks Millage Renewal

Voters will be asked to renew a 10-year countywide parks and recreation operations millage in November. On May 21, commissioners were asked initial approval to put the request on the Nov. 4 ballot.

During the May 21 county board meeting, Bob Tetens – director of Washtenaw County parks & recreation – sat next to the daughter of county commissioner Felicia Brabec (D-District 4).

The operations millage was first authorized by voters in November 1976 at 0.25 mills for a 10-year period and has been renewed three times. Because of the state’s Headlee amendment, the rate that’s actually levied has been rolled back and is now 0.2353 mills. The current millage expires in December 2016.

If renewed again, it would generate an estimated $3.2 million annually. That’s about half of the parks & recreation annual operating expenses of $6.7 million. Other revenue sources are admission/gate/membership fees charged seasonally at facilities including the Meri Lou Murray recreation center, the water/spray parks, and the Pierce Lake golf course. Funding is also received from state and federal grants as well as private donations. [.pdf of staff memo]

The county parks system receives most of its funding from two countywide millages. In addition to the operations millage, another millage pays for capital improvements and park development. It was also originally levied at 0.25 mills, but has been rolled back to 0.2367 mills.

In addition, a third millage – levied at 0.25 mills but rolled back to 0.2409 mills – funds natural areas preservation, bringing in about $3 million annually. It was first approved by voters in 2000, and renewed for another 10 years in 2010.

The county’s parks & recreation department is overseen by a separate entity – the parks & recreation commission – whose members are appointed by the county board. The county board has the authority to put a parks millage proposal on the ballot, but does not authorize expenditure of the funds. That responsibility rests with the parks & recreation commission. The group meets monthly at the parks & recreation office at County Farm Park, and its meetings are open to the public.

Comments were brief before the May 21 vote. Yousef Rabhi (D-District 8) said the parks staff do wonderful work. He thanked everyone who serves on the parks & recreation commission.

Outcome: Commissioners unanimously gave initial approval to put the millage renewal on the November ballot. A final vote is expected on June 4.

Board of Health

On May 21, commissioners were asked to take an initial step to create a board of health, an entity that would prove advice on public health issues for the county.

A description of the board’s duties is outlined in a staff memo that accompanied the May 21 resolution:

The purpose and role of a Washtenaw County Board of Health will be to identify public health problems and concerns in the community, establish health priorities, and advise the Board of Commissioners and the Health Department on issues and possible solutions. The Board of Health will serve as advocates and educators for public health services and policies. The Board of Health will provide oversight and guidance to the Health Department, and will recommend a program of basic health services to the Board of Commissioners.

The new Board of Health will have the authority to hear appeals and requests for variances from the local public health and environmental regulations established under the Public Health Code. The Board of Health will have the authority to hear appeals regarding the suspension or revocation of food service licenses.

The resolution creating the health board also dissolves an existing existing environmental health code appeals board and the hearing board for the Health Department Food Service Regulation. The duties of those boards would be absorbed by the new health board. [.pdf of staff memo]

The recommended size is 10 members, including one ex-officio representative from the county board of commissioners. According to the staff memo, appointments could represent “health service delivery (physicians, dentists, mental health practitioners, administrators); environmental health and conservation, land use planning, food service and nutrition, academia, K-12 education, philanthropy, social service delivery, legal services, and consumers of public health services.”

Members would be compensated for attending each meeting. The total cost for the health board, including in-kind staff support, is estimated at $19,000 annually. The board of health would be expected to convene for the first time in October 2014.

Ellen Rabinowitz, the county’s public health officer, attended the May 21 meeting but did not formally address the board. There was no discussion on this item.

Outcome: Initial approval was given on a 7-1 vote, over dissent from Rolland Sizemore Jr. Alicia Ping was absent. A final vote is expected on June 4.

Oil Drilling

Commissioners considered a resolution to oppose oil exploration and drilling in the county. The resolution was brought forward by board chair Yousef Rabhi (D-District 8) of Ann Arbor, working with Kent Martinez-Kratz (D-District 1). Rabhi had alerted the board about his plans at the previous meeting on May 7. He said he’d met with residents from the west side of the county about the threat of oil extraction. West Bay Exploration has applied to the state for a drilling permit in Scio Township, and residents are afraid that the state will grant the permit.

The two resolved clauses state:

BE IT THEREFORE RESOLVED, that Washtenaw County, Michigan:

1. Opposes said oil exploration and drilling, and any future oil exploration and drilling in this area and other areas within the boundaries of Washtenaw County; and

2. Respectfully requests that the Michigan Supervisor of Wells, as part of the Michigan Department of Environmental Quality, deny the permit application to drill the Wing 1-15 well as proposed; and

3. Hereby requests that the State of Michigan and federal legislators move to enact legislation and improve regulations to reduce the risks to public health, safety, welfare and the environment posed by the oil and gas industry, and re-commit to promoting and protecting quality of life, our economic well-being, and our environment through less reliance on non-renewable energy resources.

BE IT FURTHER RESOLVED, a copy of this resolution shall be transmitted as the County’s official comment on said oil drilling permit and application by the Clerk, to each elected official representing Washtenaw County in Lansing, the Office of the Governor, and the Michigan Department of Environmental Quality.

At its May 19, 2014 meeting, the Ann Arbor city council approved a similar resolution opposing oil exploration in Scio Township.

Oil Drilling: Public Commentary

Two people spoke on the topic during public commentary. Gus Teschke from the advocacy group Citizens for Oil-Free Backyards thanked Yousef Rabhi and Kent Martinez-Kratz for their work on the resolution opposing oil exploration and drilling in Washtenaw County. Citizens for Oil-Free Backyards was formed because of a proposed well at Miller and West Delhi, he said. If the company finds oil, then there could be a lot of oil wells in that area. That could impact individual residential wells as well as the Huron River, which provides 85% of Ann Arbor’s drinking water. Accidents can happen, and people are concerned about that, he said. About 1,200 people live within a mile of the proposed oil well, and are concerned about their health, noise and other issues. He hoped commissioners would support the resolution.

Brian Herron, a Scio Township resident, spoke during public commentary to oppose drilling in the county.

During the final opportunity for public commentary, Brian Herron introduced himself as a business owner in Ann Arbor and resident of Scio Township. Residents there find it very concerning that there’s a proposal to drill so close to residential properties. The proposed drilling would be less than a mile from the Huron River, he noted. It seemed inappropriate to allow drilling in a residential area. It doesn’t make sense, and he urged commissioners to support the resolution that opposes drilling.

Oil Drilling: Board Discussion

Yousef Rabhi (D-District 8) said that for him, this is a fundamental issue of protecting the environment in Washtenaw County, making sure the air, water and soil stayed healthy for generations to come. It’s time to take a stand, even though the county doesn’t have the ability to stop it outright, he said.

Ronnie Peterson (D-District 6) said he normally supports economic development so that residents have opportunities for jobs. But he’s in total opposition to drilling in this county. He wondered if there were any supporters of drilling at that night’s meeting, or any company representatives to talk about how the county would benefit from drilling. [No one came forward.] It seemed like they’d want to present their case to the public, he said.

Kent Martinez-Kratz (D-District 1), who represents an area that includes Scio Township, said he had attended a public forum about the proposed drilling. Someone had suggested being proactive regarding oil rights, rather than waiting for oil companies to secure them. He liked the idea, which entails having a community group purchase the oil rights and hold them in trust.

Felicia Brabec (D-District 4) said she’d visited the Irish Hills area near Jackson, where there’s been an increase in oil exploration. So she’s seen firsthand the economic, health and environmental impacts on a community. It’s very harmful, she said, and people there were distraught. It’s also frustrating, she added, because communities have little recourse and authority over these issues.

Kent Martinez-Kratz (D-District 1).

Andy LaBarre (D-District 7) characterized it as “a total NIMBY issue.” The problem is that no one in Lansing will listen to this resolution, he said, but he supported it. They also need to find ways to communicate with the state legislature, which he said has robbed local communities of their ability to make decisions regarding oil drilling.

Rabhi agreed that the issue was one of local control – and not just for oil drilling, but also for natural gas extraction. That’s the campaign that needs to be waged, he said. “We need legislators who respect local control.” The state should set a baseline standard for environmental health, but each community should have the right to set even stricter standards for cleaner air, water and other aspects of the environment, he said.

Martinez-Kratz agreed that it might be a NIMBY issue, but he argued that almost anything could be called NIMBY – like zoning and noise ordinances. The drilling proposal to him is alarming because it’s within a mile of the tributary that leads to Ann Arbor’s drinking water supply. He pointed to the 2010 oil spill in the Kalamazoo River that’s still not completely cleaned up. Even though there’s very little that the county government can do about this proposal, the board needs to take a stand, he said.

Dan Smith (R-District 2) opposed the resolution, noting that it does nothing and addresses an issue that’s outside of the board’s purview. The law is extraordinarily clear, he noted – that a county can’t control or regulate drilling. They might all wish that it was within their purview, and the concerns about drilling are valid, he said. “I certainly don’t want an oil well in my backyard either.” Concerns over environmental impacts are legitimate too. “Unfortunately, the oil is where it is, and there’s nothing any of us can do to move where the oil is located,” he said.

Smith said the oil has been untouched for years, but has finally become economically feasible to extract. That’s unfortunate, but it’s not under the county’s control, he stressed. There’s a very simple way to shut down all the drilling in the county, Smith added. “The property owners can simply refuse to lease their land to the oil companies. Problem solved.” But these property owners have signed leases with oil companies, and are getting money for that, he noted. They can put that money toward paying for their house, or a college education, or buying things or going out to eat. So there’s an economic benefit to Washtenaw County in that way, Smith said.

Smith reported that he’s recently heard about a Michigan chapter of a national service organization that had received over $500,000 annually from oil revenues, which in turn support local programs. This is an extremely complicated issue, he said, with lots of pros and cons. If commissioners don’t like the current law, they can take their case to Lansing, Smith added. There are six state legislators representing Washtenaw County, he added, including some that are “extraordinary close to members of this body.” [That was a reference to state Sen. Rebekah Warren, who is married to commissioner Conan Smith.]

D. Smith said he didn’t vote against a similar resolution opposing a mineral mining proposal in Lyndon Township, because the county parks & recreation commission is interested purchasing that property – so there was an option that the county could pursue. [Smith stated "present" during that vote, which took place on March 19, 2014.]

But in this case, the resolution serves no purpose and wastes and extraordinary amount of time, D. Smith said. “I really wish we would stop campaigning from the board table,” he concluded, saying there are much more effective ways to advocate for change.

Andy LaBarre (D-District 7) noted that Smith had been remarkably consistent in his position regarding these kinds of resolutions, which don’t have the force of law. Given that track record, it would be great to have Smith on board with this resolution, LaBarre said. “I think it would add an extra amount of credence to this.” It’s an issue of significance that they can all find ways to dislike, he said, and to express their displeasure. He hoped Smith would consider bending on this.

Rabhi also thanked Smith for his consistency, noting that Smith’s opposition wasn’t about the content of the issue, but rather about the county’s purview. But Rabhi said he had no problem campaigning from the board table, adding that he was campaigning for public health, the environment, and the welfare of county residents. He thought the county did have a role to play, as local governments are allowed to submit comments through the MDEQ’s public process. “It’s not for political gain – it’s for the community,” Rabhi said.

Outcome: The resolution passed on a 6-1 vote, over dissent from Dan Smith. Alicia Ping was absent, and Rolland Sizemore Jr. was not in the room when the vote was taken.

2014 Budget Calendar

The board considered a resolution setting a timeline for budget work in 2014. [.pdf of budget calendar resolution] Highlights are:

• July 24, 2013: Board approved budget priorities. (That document was subsequently amended on Aug. 7, 2013.)
• May 7, 2014: Board authorized county administrator to seek consultant for work on budget priorities. The review and selection process for that consultant is underway.
• June 5, 2014: Budget discussion on the board’s working session agenda, to discuss the status of any general fund surplus or shortfall.
• July 9, 2014: County administrator presents recommendation for using surplus or addressing shortfall, based on board priorities. Board to take initial vote on recommendation.
• Aug. 6, 2014: Final vote set for surplus/shortfall recommendation.

The county had a 2013 general fund surplus of $3.9 million. County administrator Verna McDaniel has recommended to keep that amount in the general fund’s unearmarked reserves, to meet the county’s goal of having reserves that total 20% of the general fund budget.

Conan Smith (D-District 9).

Conan Smith (D-District 9) began the discussion by saying there were some foundational problems with this approach. One of those problems is that the county administrator has made a recommendation in advance of discussing this issue with the board, he said. The disposition of taxpayer dollars should be made by people elected to make those decisions, Smith said.

In fact, Smith added, since McDaniel has already made a recommendation, much of the work outlined in the timeline isn’t necessary. They should just discuss her recommendation at the board’s June meeting, and take a final vote in July.

Smith didn’t think the board had created an open and transparent process for the community or for county staff to give input on priorities and programs. The timeline also doesn’t give direction to the board about how commissioners can effectively engage in setting priorities for allocating surplus revenues. He expressed frustration that this process “is actually turning out to be little more than a rubber stamp of a decision that’s already been proposed by the administration.”

“I feel personally let down,” Smith continued. Part of his support for a four-year budget had been based on taking this process seriously, he said, and to “engage holistically” with the community in determining how to spend a budget surplus. “I feel personally frustrated because I was a huge part of developing the budgets that resulted in these surpluses,” Smith said. He added that he’d talked to department heads who were asked to make cuts, and had told them there would be discussion about how to get back some of that money if there were surpluses. But now it sounded like the decision has already been made, he said.

Felicia Brabec (D-District 4) – chair of the ways & means committee, who has been leading this process – replied that she sees things differently, and she was sorry that Smith was frustrated. She thought the process did take into account all of the things that Smith wanted to see. Hiring a consultant would help make that happen, she said, by engaging commissioners, staff and the community in moving the needle on their priorities.

Brabec said that McDaniel has shared her recommendation, and now it’s time for the board to discuss it in a very public way. It’s probably not happening as quickly as Smith would like, she noted, and she’d also like to move more quickly, but they’re doing it as quickly as they can.

Yousef Rabhi (D-District 8) said he agreed with some of Smith’s comments. He asked about a handout that Smith had provided to commissioners. [It had not been distributed to the public.] Smith replied that it was part of an email that he’d sent to commissioners in early May. [.pdf of Smith's email]

Smith asked if there was any expectation that the $3.9 million surplus would be used for any purpose other than the fund balance. Brabec said her expectation is that McDaniel’s recommendation will be discussed. “I don’t know what the fruits of that discussion will be,” she said.

Outcome: Earlier in the meeting – prior to this discussion – the resolution had been approved unanimously as part of the board’s consent agenda.

SPARK Grant

Commissioners were asked to approve an application for a $940,000 federal grant that the county would make on behalf of Ann Arbor SPARK, the local economic development agency. Funds would be used to help redevelop the former General Motors Willow Run Powertrain plant in Ypsilanti Township for use as a connected vehicle testing facility.

The Transportation Investment Generating Economic Recovery (TIGER) grant is available through the National Infrastructure Investments Program of the U.S. Department of Transportation. SPARK asked that the county’s office of community & economic development (OCED) act as the lead applicant and fiscal agent. OCED already submitted the grant application – on April 25, 2014. According to a staff memo, “due to the grant application deadline, it was not possible to bring the matter before the [board of commissioners] for approval prior to application submission.”

The project is a partnership with SPARK, the University of Michigan, the redevelopment firm Walbridge Aldinger and Ypsilanti Township, among others. According to a staff memo, the facility could lead to the creation of up to 7,800 new jobs in the skilled trades and research sectors. [.pdf of staff memo and resolution]

There was no discussion on this item.

Outcome: Initial approval for the grant application was approved unanimously. A final vote is expected on June 4.

Coordinated Funding

Commissioners were asked to give final approval to allocate funding to local nonprofits as part of a coordinated funding approach for human services, in partnership with several other local funders. Initial approval had been granted at the board’s May 7, 2014 meeting, when the board had heard from several nonprofit and community leaders on this topic.

The county is one of the original five partners in the coordinated funding approach. Other partners are city of Ann Arbor, United Way of Washtenaw County, Washtenaw Urban County, and the Ann Arbor Area Community Foundation. It began as a pilot program in 2010.

This year, 105 applications were submitted by 50 local organizations totaling $8,732,389 in requested funding, according to a staff memo. A review committee recommended that 57 programs receive a total of $4,321,494 in available funding. Of that amount, the county is providing $1.015 million. [.pdf of staff memo and list of funding allocations]

Among the organizations that are being funded in this cycle are Corner Health Center, Interfaith Hospitality Network of Washtenaw County, Child Care Network, Catholic Social Services of Washtenaw, Food Gatherers and Legal Services of South Central Michigan. Several nonprofit leaders spoke during public commentary in support of this process, as did Ann Arbor city administrator Steve Powers.

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

Funding for this cycle will start on July 1, 2014. In addition, the RNR Foundation will now be an additional funder in this process.

There was no discussion of this item.

Outcome: Final approval to the coordinated funding allocations was unanimous.

Appointments

The board took action on one appointment: Nicole Sandberg to the food policy council. Board chair Yousef Rabhi (D-District 8) brought the nomination forward. He reported that three applications had been received and reviewed by the council, who had recommended the selection of Sandberg.

The May 21 agenda originally included a slot to appoint someone to the board of public works, but Rabhi pulled the item, saying he wanted to solicit input from existing members of the board of public works.

Outcome: Nicole Sandberg was appointed to the food policy council.

Millage Rate

Washtenaw County commissioners were asked to take the first step in setting the county’s 2014 general operating millage rate at 4.5493 mills – unchanged from the current rate.

Several other county millages are levied separately: emergency communications (0.2000 mills), the Huron Clinton Metroparks Authority (0.2146 mills), two for county parks and recreation (for operations at 0.2353 mills and capital improvements at 0.2367 mills) and for the natural areas preservation program (0.2409 mills). That brings the total county millage rate levied in July to 5.6768 mills, a rate that’s also unchanged from 2013. [.pdf of staff memo]

This is an annual procedural action, not a vote to levy new taxes. With a few minor exceptions, the county board does not have authority to levy taxes independently. Millage increases, new millages or an action to reset a millage at its original rate (known as a Headlee override) would require voter approval.

The rates will be included on the July tax bills for property owners in Washtenaw County.

A public hearing on the millage rates is set for June 4.

Outcome: Commissioners took a unanimous initial vote to set the millage rate. A final vote is expected on June 4.

Proclamations

There were four resolutions honoring individuals or organizations: (1) a resolution of appreciation for Nancy Wheeler, the first African American woman to serve as a Washtenaw County trial court judge and who is retiring this year (she is the aunt of county commissioner Conan Smith); (2) a resolution of appreciation for Lynn Kneer, who is retiring after working as a judicial coordinator for judge Francis Wheeler; (3) a resolution proclaiming June 2014 as Relay for Life Month in Washtenaw County; and (4) a resolution honoring the 20th anniversary of the Interfaith Round Table of Washtenaw County.

Outcome: All resolutions were passed unanimously.

Communications & Commentary

During the May 21 meeting there were multiple opportunities for communications from the administration and commissioners, as well as public commentary. In addition to issues reported earlier in this article, here are some other highlights.

Communications & Commentary: Success by Six

Ypsilanti Township resident Shannon Novara, program manager at Washtenaw Success by Six Great Start Collaborative, thanked the board for its leadership in supporting the youngest members of the county. The nonprofit’s mission is to make sure every child in Washtenaw County enters kindergarten ready to succeed. She described the services that the nonprofit offers, and thanked its partners. Specifically, she thanked the county for its support of the annual Touch a Truck fundraiser that was held on May 10 at Ypsilanti Community High School. At least 1,250 children and their families participated, she said. She thanked commissioners and staff for their help, giving special recognition to Rolland Sizemore Jr. (D-District 5) for his work.

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

Absent: Alicia Ping.

Next regular board meeting: Wednesday, June 4, 2014 at 6:30 p.m. at the county administration building, 220 N. Main St. in Ann Arbor. The ways & means committee meets first, followed immediately by the regular board meeting. [Check Chronicle event listings to confirm date.] (Though the agenda states that the regular board meeting begins at 6:45 p.m., it usually starts much later – times vary depending on what’s on the agenda.) Public commentary is held at the beginning of each meeting, and no advance sign-up is required.

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From left: Washtenaw County corporation counsel Curtis Hedger and commissioner Dan Smith (R-District 2). (Photos by the writer.)

Following a lengthy discussion, commissioners voted to set a public hearing about a possible countywide road millage. The hearing will be held at their meeting on May 21 so that the public can give input on a proposal to levy up to 1 mill for roads in 2014. The tax would be levied under Act 283 of 1909.

No final decision is expected at the May 21 meeting about levying a tax – although a resolution to levy a 1-mill tax is on the May 21 agenda for initial consideration.

Commissioners all appeared to support finding a way to secure more road funding, but some voiced concern about process and timing – especially because a tax under Act 283 would be levied without voter approval.

The May 7 discussion began when Dan Smith (R-District 2) brought forward a resolution that would authorize levying a 1 mill tax – under Act 283 – in December 2014. It would generate $14.34 million “to repair 2013–14 winter damage to the roads, streets and paths in Washtenaw County.” The board ultimately voted to postpone the resolution until May 21 over dissent from Alicia Ping (R-District 3).

During the wide-ranging discussion, Ronnie Peterson (D-District 6) expressed concern that the public hadn’t yet been informed about the Act 283 proposal. At the request of board chair Yousef Rabhi (D-District 8), Roy Townsend – managing director of the county road commission – had prepared a list of road projects that could be funded by an Act 283 millage, which was distributed at the May 7 meeting. Townsend and two of the three road commissioners – Barb Fuller and Bill McFarlane – attended the May 7 meeting, and Townsend fielded questions from the board.

Corporation counsel Curtis Hedger cautioned that Act 283 lays out a specific process, which calls for a presentation of proposed road projects at a meeting in late September or October, prior to the December levy. Responding to those concerns, Dan Smith noted that options might include passing a resolution this month or in June to indicate the board’s intent to levy the tax, then possibly using money from the general fund’s fund balance to pay for road work this summer. The fund balance would be reimbursed when the tax revenues are collected in December. Hedger pointed out a risk in that approach: If someone sues the county and a court issues an injunction, then the county might be unable to levy the tax – after already spending general fund dollars.

Conan Smith (D-District 9) supported the Act 283 tax. “I’m almost of a mindset of ‘Let’s do it’ – and if someone wants to sue us over it, you know, then when they file a lawsuit we can reconsider,” he said. Smith preferred the Act 283 levy over a ballot initiative that voters would be asked to approve, saying there are other funding proposals he’d rather put on the ballot – for public safety and human services.

The board discussion on this issue will continue at the May 21 meeting.

In other road-related items on the May 7 agenda, the board voted to accept the recommendations of a subcommittee that was appointed last year to explore options enabled by state legislators. The subcommittee had recommended not to make the road commission part of county operations, and not to make the job of road commissioner an elected position.

The May 7 meeting also included an update about the community’s approach to addressing homelessness. The briefing was in response to a board directive given to staff on April 2, 2014 to develop a plan for updating the county’s Blueprint to End Homelessness. The blueprint was adopted in 2004. The process of updating that plan is to be completed by Oct. 1, 2014.

Responding to information that there’s been an increase in people from outside of Washtenaw County coming to the Delonis Center shelter in Ann Arbor, Conan Smith cautioned against making that kind of distinction, saying it “dehumanized” people who are seeking help, regardless of where they’re from.

Mary Jo Callan, director of the county’s office of community & economic development, told Smith that his point was well taken. But she noted that unless the state asks other communities to provide something close to the level of support that Washtenaw County provides, “then it’s an issue of volume. I’m sorry, but it’s not about dehumanizing.” Ellen Schulmeister, executive director of the Shelter Association of Washtenaw County, noted that 96% of the shelter’s budget comes from local public funding, and the shelter was built for people who became homeless in Washtenaw County. She said it was her job “to hold that line.”

During the May 7 meeting, commissioners also gave initial approval to allocate funding to local nonprofits as part of a coordinated funding approach for human services, in partnership with several other local funders. The county is one of the original five partners in the coordinated funding approach. Other partners are city of Ann Arbor, United Way of Washtenaw County, Washtenaw Urban County, and the Ann Arbor Area Community Foundation.

This year, 105 applications were submitted by 50 local organizations totaling $8,732,389 in requested funding, according to a staff memo. A review committee recommended that 57 programs receive a total of $4,321,494 in available funding. Of that amount, the county is providing $1.015 million. Among the organizations that are being funded in this cycle are Corner Health Center, Interfaith Hospitality Network of Washtenaw County, Child Care Network, Catholic Social Services of Washtenaw, Food Gatherers and Legal Services of South Central Michigan. Several nonprofit leaders spoke during public commentary in support of this process, as did Ann Arbor city administrator Steve Powers.

In other action, the board appointed Ellen Rabinowitz as health officer for the Washtenaw public health department; passed a resolution calling for an increase in Michigan’s minimum wage to $10.10 per hour; and received a first-quarter budget update from the county’s finance staff. First-quarter projections tend to be conservative, because they’re based on only three months of the year, with limited evidence of budget trends. At this point, the 2014 general fund is projected to have a $70,230 shortfall by year’s end – with total revenues of $103,404,537 and total expenditures of $103,474,767. There is no planned use of fund balance for this year’s budget.

Road Funding

The May 7 agenda included a discussion item for road funding options, but there was originally no resolution on the published agenda. At the end of the ways & means committee meeting, Dan Smith (R-District 2) noted that the board has discussed road commission issues for years. He said he continuously hears from residents that they’re sick of the terrible roads, and they’re tired of hearing explanations about why the roads are so bad. People seem willing to raise their taxes to do it, Smith said. He’d even heard support from “an old Dutchman” at his church, which Smith characterized as the strongest endorsement for increasing taxes that he’ll ever get.

Road commissioner Barb Fuller.

Smith thought the board needed to act on this issue, pointing to the impact that an unusually harsh winter has had on the roads. So he put forward a resolution to levy a 1-mill tax authorized under Act 283 of 1909.

Act 283 requires the road commission to submit a plan of recommended road repairs and the cost to undertake the projects. The law allows the county board to levy a millage to cover those costs, without voter approval. [.pdf of relevant section from Act 283, including summary by Lew Kidder of Scio Township.] Because the law is more than a century old and pre-dates the state’s Headlee amendment, there’s some uncertainty about the ability of county governments to use it.

Commissioners have previously held several discussions about the possibility of additional funding sources for road repair – most recently at a lengthy working session on April 17, 2014. In addition to a possible Act 283 levy, another option that’s been discussed is to put a countywide road millage on the Nov. 5, 2014 ballot for voter approval. A draft resolution circulated at the working session called for a four-year, 0.5 mill tax – from 2014-2017 – that would raise $7.15 million in its first year.

The resolution brought forward by Dan Smith on May 7 would authorize levying a 1 mill tax under Act 283 in December 2014. It would generate $14.34 million “to repair 2013–14 winter damage to the roads, streets and paths in Washtenaw County.” [.pdf of draft resolution]

Smith’s resolution would earmark 50% of the gross revenues to be used in the municipality in which the revenue was generated. Beyond that, 10% would be used for non-motorized transportation needs – like bike lanes and pedestrian paths – with the remainder to be allocated “based on use, need, and impact to the traveling public.”

The resolution also addresses concerns about the potential legal issues related to Act 283. From the draft resolution:

FURTHERMORE, BE IT RESOLVED that Washtenaw County Corporation Counsel is directed to provide an exhaustive formal written opinion, by September 30, 2014, which clearly and convincingly details the exact mechanism under which Act 283 of 1909 taxes may be levied in excess of Article IX, Section 6 constitutional limits without a vote of the people; and that the Washtenaw County Board of Commissioners waives any attorney/client privilege concerning this opinion.

FURTHERMORE, BE IT RESOLVED that the Washtenaw County Board of Commissioners asks the county’s legislative delegation, State Senators Randy Richardville and Rebekah Warren and State Representatives Gretchen Driskell, Jeff Irwin, David Rutledge and Adam Zemke, to request an Attorney General opinion regarding the ability for counties to levy a tax under Act 283 of 1909 in excess of Article IX, Section 6 constitutional limits without a vote of the people.

Road Funding: Board Discussion

Yousef Rabhi (D-District 8) reported that he’d met with the road commission earlier that week. He noted that the road commission had prepared a list of possible projects that could be funded under Act 283. The project list had been prepared based on levying 0.4 mills. [.xls spreadsheet of proposed road projects based on 0.4 mill tax] [.xls spreadsheet of possible amounts raised by jurisdiction] [.pdf map showing location of proposed projects]

Yousef Rabhi (D-District 8).

Rabhi said if the board decided to levy the full mill, there would be more projects that could be added to the list.

However, Rabhi said he’d spoken with the county’s corporation counsel, Curtis Hedger, and now had concerns that Act 283 might not be the right approach to get road projects done this year. It might work for next year, Rabhi noted, “but unless we find a creative way of financing this, I think it’s going to be difficult for us to put the dollars levied to road projects in 2014, just because of limitations in the law.”

Yousef asked Hedger when the county could collect the tax under Act 283. Hedger replied, saying he understood there’s some urgency to get money to fix roads. Hedger cautioned that Act 283 lays out a specific process, which calls for a presentation of proposed road projects at a meeting in late September or October, prior to the December levy. It’s meant to be an annual levy, with the road commission determining the projects that need to be done and how much it would cost to do the work. That project list is given to the county clerk, who passes it along to the county board for consideration at an “annual meeting of the board of supervisors.” Hedger noted that Act 283 defines the annual meeting as one that takes place after Sept. 14 and before Oct. 16. Three county board meetings are scheduled during that period this year, he noted.

However, Hedger thought it’s premature to look at levying a millage under Act 283 right now, because the process needs to be followed. The county can’t put the levy on the summer tax bills, he added. Right now, the county levies its general operating millage in July, and every other county tax in December. The state statute allows certain smaller levies to be put on the July tax bill, but not one as large as the Act 283 levy, he said.

Rabhi said he supports what Dan Smith is trying to do, and he knows the road commission is working hard to address the condition of the roads. But no effort, however well-meaning, can overcome the force of nature combined with the force of Lansing, he said, “or the unforce of Lansing.” The situation demands creative thinking, Rabhi said, and there are at least two options. One is levying a millage under Act 283, and the other is asking voters to approve a millage for roads.

Rabhi called the Act 283 levy a “stopgap, Band-aid approach.” If used properly, it can help, he added, but he didn’t know if it would be possible to use it in 2014.

Alicia Ping (R-District 3) chaired the board’s subcommittee on possible road commission restructuring.

Responding to those concerns, Dan Smith noted that options might include passing a resolution this month or in June to indicate the board’s intent to levy the Act 283 tax, then possibly using money from the general fund’s fund balance to pay for road work this summer. The fund balance would be reimbursed when the tax revenues are collected in December.

Rabhi asked Hedger if it would be possible to use general fund dollars for road work, then get reimbursed later from Act 283 revenues. Hedger replied that general fund dollars can be used for anything. The reimbursement aspect is trickier, he said, because the statute states that the Act 283 revenues must be used “exclusively for the purposes herein mentioned.” So if the money is fronted from the general fund, the Act 283 revenues wouldn’t technically be used for the purposes of road project – they’d be reimbursing the county.

The bigger issue, though, is if the county paid for the work out of the general fund, but then is sued later in the year and given an injunction that would prevent levying the Act 283 tax, Hedger said. “Then we would have spent the money, and you have no way to recoup it.” He noted that as the county’s attorney, he’s paid to be a pessimist and to explain the potential downsides.

Rabhi then asked if the road commission would be comfortable spending money this year with the understanding that a millage would be levied in December. Hedger noted that the same risks would be involved for the road commission.

Ronnie Peterson (D-District 6) asked whether an Act 283 millage would be subject to a voter referendum, if citizens decide to do a petition against it. Hedger said it’s not mentioned in the act, so he didn’t think it would be subject to a referendum.

Peterson wondered what would be wrong with putting a millage proposal on the ballot. Let the citizens decide, he said. Peterson complained that the board didn’t support his progressive agenda, and had cut programs like Head Start – yet he was expected to support a road millage. He said he wasn’t necessarily against the road tax, but thought residents should be allowed to weigh in.

Peterson also wondered why the road commission couldn’t issue bonds to cover the work. He said he’d support postponement until the May 21 meeting, so that these questions could be addressed, and so Hedger can put some of these things in writing.

Conan Smith (D-District 9) directed a series of questions to Roy Townsend, managing director of the road commission. He asked about the flexibility of funding that the road commission uses, including formula funding from Act 51. Are those funds discretionary? Townsend replied that the road commission receives Act 51 funding each month from the state, which varies between about $1.1 million to $1.8 million. Townsend indicated that there’s some flexibility in spending those funds. It depends on what priorities are for the townships, and how much township funding is available.

Conan Smith (D-District 9).

If the road commission gets direction in May or June, Townsend said, there’s still time to do more road work this season.

Conan Smith suggested working with the road commission on projects for 2015 that could be paid with an Act 283 levy in December of 2014. That approach might free up funds this year for other projects that can be funded with non-Act 283 revenues.

Townsend hoped there’d be a way to figure out how to make more revenues available. He reported getting a call from a resident who lived on Willis Road, who had collected pieces of the road in a wheel barrel – because the road was disintegrating – and wanted the road commission to pick it up.

Conan Smith noted that Act 283 isn’t the best vehicle for road funding, but it’s an option. “I’m almost of a mindset of ‘Let’s do it’ – and if someone wants to sue us over it, you know, then when they file a lawsuit we can reconsider. But know that if you file a lawsuit, there isn’t money for the project anymore.” There’s a sense of urgency that the county board needs to meet, he said.

Responding to Peterson’s question about putting a road tax before voters, C. Smith noted that the earliest the board could get to the ballot would be August – if they voted on it that night – and after that, it would be in November. And there’s no guarantee that voters would approve it, he noted.

The other issue, C. Smith said, is that he has other priorities that can only be funded by going to the ballot. The sheriff has repeatedly articulated challenges regarding public safety, Smith said, and the only mechanism for funding that is to put a millage proposal on the ballot. Human service needs are another area that could be funded with a ballot initiative. With roads, the county has the option of going to the ballot, but also has another means of funding – Act 283. “I’d like to use the other means [for road funding], and save the ballot for those issues that I really, really deeply care about,” Smith said.

C. Smith thanked Dan Smith for bringing forward this proposal, and for designating 10% of the funds raised through Act 283 to work on the non-motorized transportation network. “If you’re a biker or a walker, you know that network is as messed up as the road system is,” C. Smith said.

C. Smith said he was comfortable taking an initial vote on this resolution that night at the ways & means committee meeting, with a final vote on May 21. If everyone else wanted to postpone, that was fine with him too.

Andy LaBarre (D-District 7).

Andy LaBarre (D-District 7) said he’d been in Lansing the previous day, and had spoken to both of the state senators who represent parts of Washtenaw County. One of those was Sen. Randy Richardville (R-District 17), who is the senate majority leader. Richardville had indicated support for a plan that’s being worked on in Lansing, that might allocate up to $2 billion for a more comprehensive fix to repair roads in Michigan. LaBarre didn’t think it would hurt to wait a few weeks to see what the state legislature would do. “I have zero faith in them as an institution – that’s probably by this point a relatively bipartisan statement – but here’s the deal: They are the only ones, short of the feds, that can dedicate enough resources to actually do this in a way that’s comprehensive.”

LaBarre also wanted to wait so that the other issues raised during the May 7 discussion could be addressed. He wanted to be in a position to defend the board’s decision, if they levied Act 283, to show they did it in the most prudent, thought-out way.

Dan Smith said he was comfortable with the options discussed – postponement or initial approval. As far as seeing what state legislators might do, “I’m greatly tired of waiting for Lansing,” he said. State lawmakers have been talking about it a long time, he noted, and if the county board wants to do anything about its infrastructure, they need to do it themselves. If the state steps in later, “so much the better for transportation infrastructure in Washtenaw County.”

He stressed that an Act 283 levy would raise revenues for projects in cities as well as townships. He also supported putting a tax proposal before voters, but he understood the concerns that Conan Smith had raised.

Road Funding: Board Discussion – Postponement

Peterson moved to postpone the Act 283 resolution until the May 21 ways & means committee meeting, for an initial vote. He stressed the need for some kind of public process – particularly since it’s an election year. [All nine county commissioner seats are up for election in 2014.]

There was no additional discussion.

Outcome: On a 7-1 vote, commissioners postponed the resolution until May 21. Dissenting was Alicia Ping (R-District 3). Rolland Sizemore Jr. (D-District 5) was out of the room when the vote was taken.

Road Funding: Board Discussion – Public Hearing

Yousef Rabhi proposed scheduling a public hearing to get feedback on road funding proposals. Dan Smith moved to schedule a public hearing for the board’s May 21 meeting.

Ronnie Peterson (D-District 6).

Ronnie Peterson wondered what the voters would be responding to: Would the road commission have a plan prepared before then? He also wanted a document from corporation counsel Curtis Hedger, laying out the legal issues. He thought the public should have access to the same information that commissioners have.

Rabhi said the plan that was prepared by the road commission – based on an Act 283 levy of 0.4 mills – had been approved by the road commission board. Rabhi said he appreciated Peterson’s comments, because the resolution for funding proposes a 1-mill tax.

Dan Smith noted that a public hearing isn’t required, but he was in favor of having one anyway. He thought that by the time the May 21 agenda was posted, there would be sufficient information available to the public. He wasn’t too worried about the board eventually deciding to levy less than 1 mill – he didn’t think any citizens would object to a lower levy.

Felicia Brabec wanted time to talk with township officials in the district she presents.

Rabhi noted that the board already has a plan from the road commission for projects that could be funded with Act 283 revenues. But it was confusing, given the different amounts mentioned in the road commission’s plan and Dan Smith’s resolution, so he wouldn’t support scheduling a public hearing yet.

Alicia Ping pointed out that the allocations outlined in the resolution: Of the 1 mill levy, 50% of the revenues would go back to the individual jurisdictions – townships, villages and cities – and 10% would be designated for non-motorized transportation. That brings the amount close to the 0.4 mills mentioned in the road commission plan, she said.

Dan Smith pointed out that a public hearing would be a generic public hearing about levying 1 mill under Act 283. He thought there would be more than enough information in the board packet.

Hedger suggested that the wording of the public hearing notice could be for a levy of “up to 1 mill.” Conan Smith offered that wording as a friendly amendment.

Outcome: On a 5-3 vote, commissioners approved setting a public hearing for an Act 283 levy at the May 21 meeting. Dissenting were Felicia Brabec, Ronnie Peterson and Yousef Rabhi. Rolland Sizemore Jr. was out of the room when the vote was taken.

Road Funding: Public Commentary

During the evening’s second opportunity for public commentary, Jeff Hayner of Ann Arbor spoke to the board. He said he’d been watching the proceedings from home and thought he’d come to the meeting to say a few words. He’d been surprised to see a public hearing scheduled for May 21 on the Act 283 millage. He noted that a road millage had recently passed in Grand Rapids, and that the previous day, on May 6, a new transit tax had been passed by voters in Ann Arbor, Ypsilanti and Ypsilanti Township. “Now we’re paying more for buses than we pay for the roads they ride on,” Hayner said. “And it got me thinking, you know? The taxpayers’ corpse isn’t even cold yet, and you guys are reaching into their pockets for more.”

He didn’t think it was right that a tax proposal wouldn’t be put before voters for approval. He thought the state’s Headlee Amendment was put in place to give taxpayers a voice. He didn’t think it was right that taxes would be doubled. Hayner pointed out that advocates for a public transit millage had years to prepare, and even that didn’t seem like enough time for a decent conversation, he said. He urged commissioners to take more time so that they could hear from people about the possible road tax.

Road Funding: Subcommittee Recommendations

In another road-related item, the May 7 agenda included a resolution to accept the recommendations of a subcommittee that was appointed last year to explore options enabled by state legislators. The subcommittee had recommended not to make the road commission part of county operations, and not to make the job of road commissioner an elected position.

State legislation enacted in 2012 allowed for: (1) a county board of commissioners to exercise the powers and duties of a road commission; and (2) the functions of a road commission to be transferred to the county board. A sunset clause means that the laws expire on Jan. 1, 2015. That deadline prompted the county board to examine these options.

Outcome: The resolution passed, initially without dissent. Rolland Sizemore Jr. (D-District 5) was not in the room when the vote was taken. A few minutes after the vote, Conan Smith (D-District 9) spoke with Pete Simms, a member of the county clerk’s staff who takes minutes for the board. The communication was inaudible to the public, but board chair Yousef Rabhi subsequently announced that Smith had indicated his intention to vote against the resolution.

The following night, on May 8, the board’s working session included a discussion of another restructuring option: Expanding the road commission board. See Chronicle coverage: “County Debates Expanded Road Commission.”

Road Funding: Letter to State Legislature

Dan Smith (R-District 2) drafted a letter to be sent to the state House Transportation & Infrastructure Committee, urging passage of House Bills 5117 and 5118, which would remove the sunset clause from state legislation that had been enacted in 2012 regarding the possible restructuring of road commissions. [.pdf of letter]

From the letter:

Washtenaw County’s roads are a critical public asset; stewarding this infrastructure is the responsibility of an independent entity, with negligible input or funding from the elected Board of Commissioners. Eliminating the sunset would provide the board with more options for managing roads, including the possibility of additional locally-generated revenue. We urge passage of HB 5117 and HB 5118.

Yousef Rabhi, Alicia Ping and Kent Martinez-Kratz asked that their names not be included as signatories. After consulting with corporation counsel Curtis Hedger during the meeting, Rabhi told commissioners that if anyone else wanted their names removed from the letter, they should let Smith know.

Outcome: It was not a voting item.

Coordinated Funding

Commissioners were asked to give initial approval to allocate funding to local nonprofits as part of a coordinated funding approach for human services, in partnership with several other local funders.

Community activist Lefiest Galimore and Eileen Spring, president and CEO of the nonprofit Food Gatherers.

The county is one of the original five partners in the coordinated funding approach. Other partners are city of Ann Arbor, United Way of Washtenaw County, Washtenaw Urban County, and the Ann Arbor Area Community Foundation. It began as a pilot program in 2010.

This year, 105 applications were submitted by 50 local organizations totaling $8,732,389 in requested funding, according to a staff memo. A review committee recommended that 57 programs receive a total of $4,321,494 in available funding. Of that amount, the county is providing $1.015 million. [.pdf of staff memo and list of funding allocations]

Among the organizations that are being funded in this cycle are Corner Health Center, Interfaith Hospitality Network of Washtenaw County, Child Care Network, Catholic Social Services of Washtenaw, Food Gatherers and Legal Services of South Central Michigan. Several nonprofit leaders spoke during public commentary in support of this process, as did Ann Arbor city administrator Steve Powers.

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

In 2012, TCC Group – a consulting firm based in Philadelphia – was hired to evaluate the process. As a result of that review, several changes were recommended and later authorized as part of the county board’s overall coordinated funding resolution, passed on Nov. 6, 2013. The changes were described in a staff memo:

The County’s Human Services and Children’s Well-being funding will continue to focus on critical services for early childhood, aging, housing/homelessness, safety net health, school-aged children and youth, and food security/hunger relief. Under this proposal, this funding will not necessarily be allocated to these six priority areas in proportional amounts consistent with historic trends. Allocations to these six priority areas will be based on identified community-level outcomes, the strategies that align with them, and how each are prioritized.

Under this proposal, the application pre-screening process will be broadened to better accommodate smaller non-profit organizations. New types of financial documentation will allow smaller agencies to illustrate their viability in the absence of an independent audit. Capacity-building grants would be available to target smaller agencies that need to improve their governance or financial structure to be eligible for the application process, with the goal of expanding the opportunities for all agencies providing human services in the County in an equitable fashion.

Funding for this cycle will start on July 1, 2014. In addition, the RNR Foundation – a family foundation that funded TCC Group’s evaluation of the coordinated funding approach – will now be an additional funder in this process.

Coordinated Funding: Public Commentary

Six people spoke during public commentary about coordinated funding and the county’s support for nonprofits. Several others who are involved in coordinated funding – as board members or executive directors of the nonprofits that receive funding – attended the meeting but did not formally address the county board.

Lefiest Galimore noted that he had previously shared his concerns with the board about the coordinated funding approach. The process eliminates African-American organizations out of the funding process, he said. He’s heard that the issue is a nonprofit’s capacity, but “that’s no longer an acceptable excuse,” he said. This is a problem that needs to be dealt with. People are trying to do good things but they can’t get funded, he said, so they’re taking money out of their own pockets. Some organizations are getting hundreds of thousands of dollars, Galimore said, but there’s no accountability. African-Americans account for 16% of the county’s population, but over 50% of people incarcerated at the county jail are African-Americans, he said, and the situation isn’t getting better.

Steve Powers, Ann Arbor city administrator.

Ann Arbor city administrator Steve Powers told commissioners he wanted them to understand that the Ann Arbor city council is fully committed to the coordinated funding process. On Nov. 7, 2013, the council endorsed the coordinated funding model, and council would be considering the city’s over $1.2 million general fund allocation for coordinated funding at its May 19 meeting. The process is bringing together the community, the public and private sector, and nonprofits to focus on outcomes that matter, he said.

Nicole Adelman, executive director of Interfaith Hospitality Network-Alpha House, told commissioners that she lives in Washtenaw County, and is also a board member of the Washtenaw Housing Alliance and the HIV-AIDS Resource Center. She thanked the board for supporting local human service agencies, and for spending time later in the meeting to talk about homelessness in Washtenaw County. She reminded everyone of the children and families that experience homelessness, who often aren’t talked about. There are 8 parents and 13 kids at the Alpha House shelter that night, she said. Any discussion about homelessness should include not just individual adults, but also children and families.

Speaking next was Debbie Jackson, director of community impact for community impact for the United Way of Washtenaw County, one of the coordinated funding partners. She noted that together, the six partners leverage about $12.5 million for human services. On May 5, the United Way board had approved the recommendations that county commissioners were now considering. United Way’s commitment to the process this year is $1.8 million, she noted. She thanked commissioners and others in the community for their support.

Carole McCabe, executive director of Avalon Housing, thanked the board for their interest in homelessness, calling it an urgent priority for the community. She reminded them that Avalon’s work to provide permanent supportive housing is an effective solution to homelessness. They operate 260 apartments at 20 different sites around Ann Arbor, providing housing to 160 adults, about 100 families and 150 children. She described the range of services that Avalon provides, and noted that Avalon is a founding member of the Washtenaw Housing Alliance.

Chris Levleit, operations director for Michigan Ability Partners, described the work of that nonprofit in providing housing stability for veterans and others with disabilities. She encouraged commissioners to continue providing support to address homelessness.

Coordinated Funding: Board Discussion

Ronnie Peterson (D-District 6) said the board had passed a resolution to set up a committee to look at human services funding, and he wondered what the status was for that committee. He said the vote had occurred during the board’s budget discussions last year, at the same time that the board had voted to establish a committee to handle Act 88 allocations.

No one else on the board indicated that they recalled such a resolution, nor did county administrator Verna McDaniel. Peterson hoped someone could research that by the next board meeting. Yousef Rabhi (D-District 8), who serves as board chair, promised to follow up with Peterson.

Peterson spoke at length about the need for supporting human services nonprofits and the residents they serve – especially those struggling with homelessness. He noted that the eastern part of the county, including the Ypsilanti area that he represents, is one of the few places that has affordable housing. The county needs to be involved in addressing some of these unmet needs, he said, and in providing a better “front door” to the county’s own human service agencies.

Andy LaBarre (D-District 7) thanked the representatives from local nonprofits who were attending the meeting, saying he also interacted with many of them during his “day job.” [LaBarre is vice president for government relations at the Ann Arbor/Ypsilanti Regional Chamber.] He thanked them for their work in the community.

Rabhi also thanked the nonprofit leaders, noting that they help leverage public dollars for the public good.

Outcome: Felicia Brabec (D-District 4) recused herself from the funding allocation for Food Gatherers, noting that she serves on that nonprofit’s board. Otherwise, the coordinated funding allocations were endorsed unanimously. The board is expected to take a final vote to allocate funding on May 21.

Response to Homelessness

At their May 7 meeting, commissioners were briefed on possible responses to homelessness and a lack of affordable housing in this community. The briefing came in response to a board directive given to staff on April 2, 2014 to develop a plan for updating the county’s Blueprint to End Homelessness. The blueprint was adopted in 2004. The process of updating that plan is to be completed by Oct. 1, 2014.

Ellen Schulmeister, executive director of the Shelter Association of Washtenaw County.

The May 7 presentation was given by three different staff members: Mary Jo Callan, director of the county’s office of community and economic development; Ellen Schulmeister, executive director of the Shelter Association of Washtenaw County, which runs the Delonis Center homeless shelter; and Amanda Carlisle, director of the Washtenaw Housing Alliance. Several WHA board members also attended the May 7 meeting, including former county administrator Bob Guenzel, who serves as WHA board president, and attorney Dick Soble, the board’s secretary. [.pdf of presentation]

Schulmeister reviewed the contributing factors to homelessness, including untreated mental illness, increased poverty, a lack of affordable housing and more. She noted that 78% of the people who come to the shelter have income less than $500 per month, and 71% have no income.

The good news is that homelessness “just plain ends with housing,” she said, “and that’s an important phrase to remember.” The formula for success, she added, is permanent affordable housing plus supportive services. That includes “rapid rehousing,” where people who are homeless are quickly given housing with a short- to medium-term subsidy, coupled with supportive services.

This community has a long history of addressing the problem, including creation of the Blueprint to End Homelessness. That effort involved over 300 community members and organizations, including the private sector, sheriff’s office, University of Michigan and Eastern Michigan University. Carlisle reviewed the blueprint’s four main goals: prevention, housing with services, reforming the system of care, and engaging the community.

Carlisle also described some of the achievements since the blueprint was developed, and pointed commissioners to a more comprehensive report about these efforts that’s posted on WHA’s website. [.pdf of progress report] Highlights include work by Project Outreach Team (PORT) and the Justice Project Outreach Team (JPORT); the Housing Access for Washtenaw County (HAWC), which provides a single entry-point for people seeking services; creation of an endowment for permanent supporting housing; the FUSE (Frequent User Systems Engagement) project, a national pilot program that integrates services for high-risk adults; and creation of a street outreach court and rapid re-housing program, among several other initiatives.

A map showing the percentage of households on public assistance, by census tract: Dark orange (over 30%), light orange (20-30%), tan (10-20%) and cream (0-10%).

Callan noted that a lot has happened in the last 10 years, but it’s no surprise that they haven’t come close to ending homelessness. In 2013, 4,542 people were homeless in Washtenaw County – a 25% increase since 2011. On any given night, 510 people experience homelessness in Washtenaw County. Callan also pointed out that the Delonis Center has seen a 38% increase in people using the shelter from outside of Washtenaw County, from 2012 to 2014.

Several organizations provide a total of 299 emergency shelter beds, but demand far exceeds available resources. Callan noted that the goal isn’t to add more shelter beds, because the solution to homelessness is housing. Temporary shelters are also the most expensive way to address homelessness, she said.

Callan reviewed the spectrum of affordable housing options in Washtenaw County, from temporary shelters and transitional housing to market-rate apartments, public housing, cooperatives, group homes, vouchers, and other options. She noted that during the recession, it was easier to find affordable housing to rent and easier to find landlords who were willing to reduce their rents. Now that the economy is recovering, affordable units are getting more difficult to find, Callan said.

Callan also reviewed the many barriers to helping people find housing. This is the costliest housing market in Michigan. There are only 18 units of affordable, available housing for every 100 of the lowest-income families. The fair market rent for a two-bedroom apartment in Ann Arbor is $942, compared to the average $784 statewide. Callan noted that there’s a $106 difference in rent for a two-bedroom apartment in Ann Arbor compared to Ypsilanti – less than a mile away. “That disparity grows bigger as you go further east,” she said.

Dick Soble, a board member of the Washtenaw Housing Alliance.

To put the rent in context, Callan noted that you’d need to earn an hourly wage of $18.31 to afford a two-bedroom apartment renting at $942 a month. The living wage set by the county board is $13.65, while the federal minimum wage is $7.25. Residents who earn that federal minimum wage would have to work 100 hours a week to afford the two-bedroom apartment.

Callan noted that a growing number of residents are spending more than 30% of their income on housing costs, and there’s a growing income disparity.

Callan also highlighted the increased pressure on the county’s shelter system, with a 38% increase in the number of out-of-county people using the Delonis Center in Ann Arbor. It’s untenable for everyone to have Washtenaw County serve as the shelter for all of southeast Michigan, she said.

Schulmeister noted that the three-county region of Macomb, Oakland and Wayne have 14 shelters and a population of just over 4 million. Washtenaw County has 8 shelters for a population of 344,000. There are no shelters in Livingston County, and only two shelters in Jackson County, she noted. In the last year, 43% of the out-of-county people who used the Delonis Center came from Wayne County.

Callan laid out several options that the county and its partners have for addressing these issues:

• Restore funding for affordable housing projects, such as rapid rehousing, affordable housing development, and permanent supportive housing.
• Create and fund a mission-style shelter and/or a permanent warming center.
• Use county assets to advance affordable housing projects.
• Continue to stabilize existing providers, including PORT and local nonprofits.
• Provide funding for short-term motel/hotel stays to engage people in permanent housing programs.

As an example of costs, Callan explained that it would cost about $1.5 million annually to operate a “mission-style” shelter with a day center. That’s based on a 25,000-square-foot facility for overnight sleeping and daytime “warming” for 100 people. It assumes a staff of about 17 full-time employees but does not include capital costs or overhead like accounting.

By comparison, that same $1.5 million could provide rapid rehousing of about 200 people each year, or permanent supportive housing for 107 people. It could also pay for a new housing development with nine units, Callan noted. She again stressed that shelters are the most expensive option, and not a long-term solution. Schulmeister told commissioners that the goal is to turn over shelter beds by finding housing for people, not by kicking them out because they’ve “timed out” of the system.

Callan provided a list of advocacy options that the county board could pursue:

• Support waiver requests from HUD for an increase in the fair-market-rate allowance for Ann Arbor. The Ann Arbor housing commission has already started working on this issue.
• Advocate for a “local preference” option for individuals seeking shelter services. “Does it mean we’d turn away anyone who’s not from Washtenaw County? No, we have never done that,” Callan said. But Washtenaw County is doing more than its fair share, she said, so the state should either provide more funding or allow the county’s shelter services to prioritize working with people from Washtenaw County.
• Advocate for state enabling legislation to allow “voluntary inclusionary zoning.” This is more of a city or township issue, Callan said, that would allow jurisdictions to require a certain percentage of affordable housing units in any new development.
• Implement and support new source-of-income anti-discrimination policies at the county and state level. A lot of landlords automatically exclude any income that comes from a housing voucher, and there’s nothing to prevent that.

There are also several options for the county board to engage in working to overcome homelessness, Callan said. They could support the recommendations of a task force on sustainable revenue for supportive housing services, which will be making a presentation at the board’s May 22 working session. They could participate in the Continuum of Care, a broad-based community group that focuses on housing and homelessness. In September, there will be a bus tour of housing and homelessness providers, and later in the fall there will be a “community conversation” forum on these issues.

Response to Homelessness: Board Discussion

Yousef Rabhi (D-District 8) said he’d been hoping to see a specific timeline for how the Blueprint to End Homelessness will be updated. Amanda Carlisle of the Washtenaw Housing Alliance said the WHA board had been talking about that, and it’s something that will likely happen in the fall. Mary Jo Callan said the original blueprint was developed as a community-wide project, and the update would involve a broad community effort as well, led by the WHA.

Jason Morgan, director of government relations for Washtenaw Community College and a member of the county’s Community Action Board, and Mary Jo Callan, director of the county’s office of community & economic development.

Responding to another query from Rabhi, former county administrator Bob Guenzel – who serves as WHA’s board chair – said the county and the cities of Ann Arbor and Ypsilanti had authorized WHA to work on developing the blueprint 10 years ago. Then each of those three public bodies approved the blueprint. He said the WHA would appreciate that same kind of support for the update.

Rabhi hoped it would be possible to develop a more detailed timeline on how the update would occur, to ensure it would be done in 2014. Guenzel indicated that WHA has the same goal.

Conan Smith (D-District 9) said he was really disturbed by how homeless people are “dehumanized” if they come here from other communities. “They came here because we have high quality of life,” he said. He wanted to stop making that issue a part of the conversation regarding shelter services.

Ellen Schulmeister of the Shelter Association responded. She noted that 96% of the shelter’s budget comes from local public funding, and the shelter was built for people who became homeless in Washtenaw County. It was her job, as director, “to hold that line,” Schulmeister said. To do that, they established the location of a person’s last permanent residence as well as the reason for coming to this county. About 25% of the shelter’s spots were provided to out-of-county people. Anyone who was turned away who isn’t from Washtenaw County was given transportation to wherever they had connections, she said.

A lot of supportive services are funded based on the county’s boundaries, she noted. Many people had court cases in other counties, and didn’t have transportation to get there. There are many barriers to helping people who aren’t from this county, she said.

Conan Smith said he appreciated how Schulmeister framed the issue, calling it a “very hot-button thing” with some people objecting to their money being spent to support anyone who’s not from here. To him, that’s a poor attitude.

Schulmeister pointed out that the shelter is a limited resource. “So we have to make sure we’re taking care of the people in our community with the building that we have,” she said.

C. Smith replied that it’s a very difficult line to draw. What if someone works here but lives in Oakland County and becomes homeless there? Schulmeister said that if someone has a job in Washtenaw County, they’re considered a resident here. She told commissioners that other counties are shipping people to Washtenaw County for shelter services. “That’s not an appropriate way to treat people, either,” she said.

Felicia Brabec (D-District 4).

C. Smith told Schulmeister that she was taking the conversation too personally about the shelter. He was talking about a community attitude.

Mary Jo Callan told Smith that his point was well taken. But she noted that unless the state asks other communities to provide something close to the level of support that Washtenaw County provides, “then it’s an issue of volume. I’m sorry, but it’s not about dehumanizing.”

Smith responded: “What you’re saying is it’s a matter of triage. You’re saying a certain kind of person is a better kind of person to serve.”

“I’m not saying that,” Callan replied. “Your point is well taken, but I don’t think that’s what we’re saying.”

Smith acknowledged that it’s a huge challenge, and a comprehensive solution across the entire system is important. Regardless of where people come from, “homeless people have rights, and one of those rights to me is housing.” He hoped they wouldn’t get hung up on the distinction of where people came from. “I think we should just own the fact that we’re going to care for people because they need to be cared for.”

Smith said he thought an economic development strategy needs to be a key component of a solution to homelessness. People need an income in order to sustain their housing, he noted. He asked that Callan, Schulmeister and Carlisle give the same presentation to the county’s workforce development board. Smith said that the chamber of commerce and Ann Arbor SPARK need to understand their role in this effort, too.

Smith also wondered how many of the 4,500 homeless people would likely need supportive housing permanently. Carlisle said that an estimated 1,700 units of permanent supportive housing are needed. Callan added that an upcoming needs assessment will attempt to quantify the need.

Kent Martinez-Kratz (D-District 1).

Smith said the county wants to have a big role in addressing homelessness, because there are resources that the county can bring to bear on the issue – spanning everything from economic development to community corrections. “Please think holistically and reach out to all of our teams and engage them,” he said.

Felicia Brabec (D-District 4) indicated that she didn’t believe housing could end homelessness, because there are so many contributing factors to homelessness that also need to be addressed. If people don’t have the supportive services they need, they won’t be able to sustain their housing.

She pointed to the example of Utah, where officials decided it was more economical to providing housing to everyone who needs and wants it, as well as supportive services. She thought it was an inventive approach.

Andy LaBarre (D-District 7) invited Callan, Schulmeister and Carlisle to the board’s May 22 working session, to continue the discussion. He chairs the working sessions and sets the agenda.

Ronnie Peterson (D-District 6) wanted to talk more about partners who can help the county address this problem, including partnerships with surrounding counties.

Yousef Rabhi wrapped up the discussion by saying people should have a choice about where they live, but “if Washtenaw County is their only option, then we have failed them as a region.” The goal should be making sure that each individual can live in the community of their choice, for whatever reason, he said.

Outcome: This was not a voting item.

1st Quarter Budget Update

Tina Gavalier, the county’s finance analyst, delivered a financial report on the county’s general fund budget, for first three months of 2014 – from January through March. She noted that the first-quarter projections tend to be conservative, because they’re based on only three months of the year, with limited evidence of budget trends. [.pdf of Gavalier's presentation]

County administrator Verna McDaniel.

As the board had learned at its April 16, 2014 meeting, Gavalier reported that property tax revenues will be about $720,000 greater than originally projected. The budget had been adopted in late 2013 with an assumption that the tax base would increase by 1% in 2014. According to the equalization report delivered in April, the increase is higher – 2.02%.

Also showing a revenue surplus is the sheriff’s office, with a projected surplus of $111,000 primarily due to higher-than-expected local, state and federal reimbursements.

There are currently projected revenue shortfalls in several areas, including the clerk/register of deeds office ($403,000), district court ($89,000) and interest revenue ($71,000).

In total, there’s now a projected revenue surplus of $277,335 for the general fund, Gavalier said – with shortfalls being more than offset by the property tax surplus.

On the expense side, the sheriff’s office is about $564,000 over the amount budgeted for this year, due to higher-than-expected overtime costs, expenses for inmate food and medical expenses. For all other departments combined, so far expenses are projected to be about $54,000 over budget. Those amounts are partially offset by a projected surplus of about $239,000 in tax appeals and refunds – that is, it’s expected that those expenses will be less than budgeted. Gavalier noted that most of that tax appeal and refund activity will take place in the third quarter, so the amount of any surplus would be clearer then.

Gavalier noted that structural and non-structural adjustments made to the budget since it was passed in late 2013 total about $560,000 in increased expenses. Those include the addition of autism health care coverage, the board’s decision to hire a position for budget work, a “local government initiative” intern, a position in the sheriff’s office, and allocations to keep the homeless shelter’s warming center open in April.

In total, there are $347,565 in general fund over-expenditures as of March 31.

Based on the first-quarter report of revenues and expenses, the 2014 general fund is projected to have a $70,230 shortfall by year’s end – with total revenues of $103,404,537 and total expenditures of $103,474,767. There is no planned use of fund balance for this year’s budget.

Gavalier also reported on several items that will be monitored in the coming months:

• higher expenses in child care programs – for the trial court, children’s services detention, and the department of human services – due to increased caseloads and placements
• fringe benefits
• personal property tax reform
• Act 88 legislation repeal or reform
• annual actuarial valuations for pensions and retiree health care
• annual cost allocation plan
• state revenue-sharing

In the near future, Gavalier said, county administrator Verna McDaniel will present the board with recommendations for dealing with any projected deficits or surpluses. The next quarterly update will occur in August, with a budget affirmation process for 2015 through 2017 taking place this fall.

1st Quarter Budget Update: Board Discussion

Conan Smith (D-District 9) asked about the “local government initiative intern” line item. County administrator Verna McDaniel replied that it refers to a fellowship that’s being developed to help with budget-related work.

By way of background, at the board’s March 19, 2014 meeting, commissioners authorized McDaniel to hire a contract employee who will support budget-related work this year for the county board and administration. As county administrator, McDaniel has discretion to spend up to $50,000 on professional services contracts. She’s taking the approach of creating a fellowship, with the hopes of tapping students from institutions like the University of Michigan’s Ford School of Public Policy, for example.

Rolland Sizemore Jr. (D-District 5).

Smith then asked how the current first quarter compares to other years. Gavalier noted that one of the main differences this year is that the budget doesn’t include the use of fund balance. In recent years, the budget has used reserves to help balance the general fund budget.

Dan Smith (R-District 2) asked about the shortfall in the clerk/register of deeds office. It had been primarily related to a decrease in revenues from document-processing, so he wondered if there was a corresponding decrease in expenses. If so, was the $403,000 a net or gross amount? Gavalier replied that revenues and expenses are looked at separately, because most departments don’t have enough general fund revenue to cover their general fund expenditures. She noted that the budgeted revenues for the clerk/register of deeds in 2014 was $700,000 higher than 2013.

Dan Smith said that his expectation would be to see expenses decrease, if fewer documents are being processed. Gavalier said she’d follow up with him on that.

Yousef Rabhi (D-District 8) asked about the budget for veterans relief. It seems that the department of veterans affairs regularly shows a shortfall, he said. If the county isn’t levying at a high enough rate to take care of veterans in Washtenaw County, the board should look at increasing that levy, he said. Rabhi asked Gavalier to comment on that.

By way of background, the board voted to levy a 0.0333 mill tax for indigent veterans services on Oct. 16, 2014. The rate of 1/30th of a mill was levied in December 2013 to fund services in 2014. It was expected to generate $463,160 in revenues. The previous rate, levied in December 2012, was 0.0286 mills – or 1/35th of a mill. It generated $390,340 in 2013.

The county’s position is that it is authorized to collect up to 1/10th of a mill without seeking voter approval. That’s because the state legislation that enables the county to levy this type of tax – the Veterans Relief Fund Act, Public Act 214 of 1899 – predates the state’s Headlee Amendment. The county first began levying this millage in 2008. Services are administered through the county’s department of veterans affairs.

Gavalier noted that the board has increased the rate in the past two years. Rabhi replied that it still might not be enough. It’s a priority to take care of veterans who have sacrificed so much, he said. Gavalier indicated it would be possible to discuss options, based on looking at the last two years and the first quarter of 2014. Rabhi noted that the levy is relatively small, which is good from a taxpayers’ perspective, but there’s a need to provide services for indigent veterans.

Switching topics, Conan Smith said he’d like to consider creating a “budget stabilization fund,” like the state has. The state has a “rainy day” fund with money set aside in case something goes wrong, he said. The county’s approach is to leave money in its fund balance, he noted. The target is to have a fund balance that’s 20% of the county’s general fund budget. Smith noted that since November 2013, the board has tapped the fund balance for about $500,000 for various reasons. “When we spend money without identifying a source, that means it comes out of fund balance,” he said. So if they really want to be deliberate in building up a strategic reserve, he thought they should consider creating a separate budget stabilization fund. He hoped the board could talk about that as part of its budget discussions.

Dan Smith said he liked the idea. The board could then as a body make decisions on allocating the funds toward specific activities. Alicia Ping (R-District 3) also supported creating some kind of designated fund reserve.

On another note, Rolland Sizemore Jr. (D-District 5) observed that last year, the administration and board had been on a path to borrow $350 million to cover employee pension and retiree health care costs. He thought they needed to discuss that issue too.

Outcome: This was not a voting item.

Rabinowitz Appointment

Ellen Rabinowitz was nominated for appointment as health officer for the Washtenaw public health department, after serving in that position on an interim basis since late last year. The appointment is effective May 19.

Ellen Rabinowitz.

Rabinowitz will receive a salary of $126,098. That salary includes her role as executive director of the Washtenaw Health Plan, a job she’s held for 11 years.

A staff memo notes that the county will see a savings of $30,266 in personnel costs as a result of this appointment. The salary will be covered by the public health department (80%) and the Washtenaw Health Plan (20%). Fleece’s salary was covered in full by the public health department.

The county board appointed Rabinowitz as interim health officer on Nov. 6, 2013. The appointment was spurred by the retirement of former health officer Dick Fleece, effective Dec. 28, 2013.

The position is mandated by the state, and requires a graduate degree and 5 years of full-time public health administration. Responsibilities include overseeing the county’s public health department. [.pdf of Rabinowitz resume]

Outcome: The appointment was approved unanimously. Rabinowitz received a round of applause from commissioners and staff.

Support for Minimum Wage Increase

The May 7 agenda included a resolution calling for an increase in Michigan’s minimum wage to $10.10 per hour.

At the board’s April 2, 2014 meeting, board chair Yousef Rabhi (D-District 8) had indicated his intent to bring forward this resolution. Earlier that day, President Barack Obama had given a speech at the University of Michigan that focused on the need to raise the federal minimum wage to $10.10.

The resolution debated on May 7 includes a quote from Obama’s speech: “We believe our economy grows best not from the top down, but from the middle out, and from the bottom up paychecks and wages that allow you to support a family…Nobody who works full-time should be raising their family in poverty.” [.pdf of resolution]

The two resolved clauses state:

NOW THEREFORE BE IT RESOLVED that the Washtenaw County Board of Commissioners hereby voices support for the efforts of President Obama to increase the Federal Minimum Wage to $10.10 per hour.

BE IT FURTHER RESOLVED that the Washtenaw County Board of Commissioners supports the current efforts of legislators and citizen groups to increase Michigan’s minimum wage to $10.10 per hour.

There was no discussion on this item prior to the vote.

Outcome: The resolution passed, over dissent from Alicia Ping (R-District 3). Not voting yes was also Dan Smith (R-District 2), who stated “Present” for his vote. In the past, Smith has objected to the board weighing in on state-level issues. Rolland Sizemore Jr. (D-District 5) was not in the room when the vote was taken.

Resolutions of Appreciation

The May 7 meeting included three resolutions that showed appreciation in various ways:

• Declaring the week of May 11-17, 2014 as Police and Correction Officers Week, and designating May 15, 2014 as Peace Officers Memorial Day to honor all police and corrections officers who’ve lost their lives in the line of duty;
• Recognizing work of the county’s office of community & economic development as part of the 50th anniversary of the federal Economic Opportunity Act of 1964, when community action agencies were created, and declaring May 2014 as Community Action Month;
• Honoring Tyler Lukomski, a Chelsea resident, for achieving the rank of Eagle Scout.

Jason Morgan, director of government relations for Washtenaw Community College and a member of the county’s Community Action Board, accepted the resolution declaring May as Community Action Month. He thanked commissioners for including human services in their list of budget priorities, and for committing $1.15 million to coordinated funding.

Communications & Commentary

During the May 7 meeting there were multiple opportunities for communications from the administration and commissioners, as well as public commentary. In addition to issues reported earlier in this article, here are some other highlights.

Communications & Commentary: Environmental Issues

Yousef Rabhi (D-District 8) reported that he’d been in Lansing talking with Michigan Dept. of Environmental Quality staff about the Pall-Gelman 1,4 dioxane plume. He said it seems like there’s progress on that issue, although the timeline is much longer than he hoped. He said he’d continue to press on that.

Rabhi also said he’d met with residents from the west side of the county about the threat of oil extraction. A drilling permit has been applied for in Scio Township, and residents are afraid that the state will grant the permit. Residents might be coming to the county board to ask for support in delaying the permitting process, so that there could be more community input. He hoped to bring forward a resolution at the May 21 meeting.

Update: A resolution is now on the May 21 agenda. The two resolved clauses state:

BE IT THEREFORE RESOLVED, that Washtenaw County, Michigan:

1. Opposes said oil exploration and drilling, and any future oil exploration and drilling in this area and other areas within the boundaries of Washtenaw County; and

2. Respectfully requests that the Michigan Supervisor of Wells, as part of the Michigan Department of Environmental Quality, deny the permit application to drill the Wing 1-15 well as proposed; and

3. Hereby requests that the State of Michigan and federal legislators move to enact legislation and improve regulations to reduce the risks to public health, safety, welfare and the environment posed by the oil and gas industry, and re-commit to promoting and protecting quality of life, our economic well-being, and our environment through less reliance on non-renewable energy resources.

BE IT FURTHER RESOLVED, a copy of this resolution shall be transmitted as the County’s official comment on said oil drilling permit and application by the Clerk, to each elected official representing Washtenaw County in Lansing, the Office of the Governor, and the Michigan Department of Environmental Quality.

At its May 19, 2014 meeting, the Ann Arbor city council approved a similar resolution opposing oil exploration in Scio Township.

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

Next regular board meeting: Wednesday, May 21, 2014 at 6:30 p.m. at the county administration building, 220 N. Main St. in Ann Arbor. The ways & means committee meets first, followed immediately by the regular board meeting. [Check Chronicle event listings to confirm date.] (Though the agenda states that the regular board meeting begins at 6:45 p.m., it usually starts much later – times vary depending on what’s on the agenda.) Public commentary is held at the beginning of each meeting, and no advance sign-up is required.

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From left: Washtenaw County equalization director Raman Patel with commissioners Conan Smith (D-District 9) and Dan Smith (R-District 2) at the April 16, 2014 board of commissioners meeting. (Photos by the writer.

The report was presented by Raman Patel, the county’s long-time equalization director. “Washtenaw County is showing improvements in the market,” he told commissioners. “We are slowly regaining our county’s equalized base. It appears that the worst part of the decline in market value is behind us.”

For 2014, taxable value in the county increased 2.02% to $14.18 billion. That’s a greater increase than the 1.68% climb in 2013, and an improvement over declines seen in recent years. Patel cautioned that several factors are impacting revenue for local governments, including the phase-out of personal property taxes, a variety of exemptions, and tax capture from entities like downtown development authorities.

More of the tax burden is also being shifted to residential property owners, he noted, compared to other categories, like commercial property. The category of residential property accounts for 67.34% of total property value in the county. Five years ago, in 2009, it was 63%.

In other action on April 16, commissioners gave initial approval to distribute proceeds from a countywide tax on hotels and other accommodations. For 2013, $472,846 was available for distribution. If the resolution is given final approval, the county will keep 10% ($47,285) to pay for enforcement of the accommodation ordinance. The remainder will be divided between the Ann Arbor Convention & Visitors Bureau ($319,171) and the Ypsilanti Convention & Visitors Bureau ($106,390).

During public commentary, Mary Kerr, president of the Ann Arbor Convention & Visitors Bureau, and Jason Morgan, director of government relations for Washtenaw Community College, highlighted the union training programs that will be coming to the area this summer. The CVBs have been instrumental in recruiting these kinds of events to Washtenaw County.

Commissioners also gave initial approval to the annual Urban County action plan, which outlines proposed projects funded by the U.S. Dept. of Housing and Urban Development. 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.

Final authorization was given to a two-year pricing proposal – for 2016 and 2017 – to provide police services to local municipalities through contracts with the county sheriff’s office. And commissioners gave final approval to a new brownfield redevelopment plan for the Thompson Block in Ypsilanti’s Depot Town.

In other action, the board passed a resolution declaring April 13-19 as National Public Safety Telecommunicator Week in Washtenaw County. They also honored Dr. Eugene Glysson, who had served on the county’s board of public works (BPW) since 1986, and was its chair since 1996. He died on April 2.

Several issues were raised during public commentary, including concerns about emergency sirens installed by a pasture in Scio Township. The owner told commissioners that the sirens spook his horses, causing a dangerous situation if anyone is riding them or standing nearby. Other topics discussed by the public included the creation of a new group to help end homelessness, called Our 2020 Vision, and efforts by University of Michigan students to reduce the use of plastic bags by imposing a per-bag usage fee. They’re garnering support in part through a MoveOn.org petition.

Equalization Report

The 2014 equalization report was presented by Raman Patel, the county’s long-time equalization director. He began by noting that this was Washtenaw County’s 56th report, and he’s been involved in the process for 43 of those years. [.pdf 2014 equalization report] [.pdf chart of largest county taxpayers]

This year, Patel said, “Washtenaw County is showing improvements in the market. We are slowly regaining our county’s equalized base. It appears that the worst part of the decline in market value is behind us.”

Raman Patel, director of equalization for Washtenaw County.

Equalized (assessed) value is used to calculate taxable value, which determines tax revenues for the county as well as its various municipalities and other entities that rely on taxpayer dollars, including schools, libraries and the Ann Area Arbor Transportation Authority, among others. There are 72 units of government in Washtenaw County that rely on property tax revenues.

For 2014, taxable value in the county increased 2.02% to $14.18 billion. That’s a greater increase than the 1.68% climb in 2013, and an improvement over declines seen in recent years.

It’s also an improvement over projections made when the county administration prepared its 2014 budget. The general fund budget was approved with a projection of $63.79 million in tax revenues. But actual revenues, based on 2014 taxable value, are now estimated at $64.511 million – for an excess in 2014 general fund revenues of $720,486. Patel stressed that at this point, the taxable value is a recommendation and must be approved at the state level.

Patel also presented tentative taxable values for specific jurisdictions. The city of Ann Arbor shows a 2.68% increase in taxable value, while the city of Ypsilanti’s taxable value is an 0.87% increase over 2013. All but three municipalities showed an increase in taxable value. Those municipalities with decreases are the city of Saline (-1.41%), Ypsilanti Township (-0.37%), and the city of Milan (-0.85%).

Properties in the Ann Arbor Public Schools district – which includes the city of Ann Arbor and parts of surrounding townships – will see a 2.37% increase in taxable value. Properties taxed by the Ann Arbor District Library, covering a geographic area that in large part mirrors the AAPS district, increased in value by 2.36%.

Taxable value is determined by a state-mandated formula, and is the lower of two figures: (1) a parcel’s equalized (assessed) value; or (2) a capped value calculated by taking last year’s taxable value minus any losses (such as a building being torn down), multiplied by 5% or the rate of inflation (whichever is lower – this year inflation is 1.6%), plus the value of any additions or new construction.

In 2014, commercial property showed a 3.97% gain in equalized value. Residential property value – the largest classification of property in the county – showed an increase of 5.84%. That’s stronger than last year’s 2.37% increase, which had been the first climb in value since 2007.

Values for developmental property – a relatively small category that covers properties not yet developed – continue to struggle, registering a decrease of 9.54% in equalized value. Industrial property, which dropped 4.78% in equalized value last year, is essentially flat in 2014 at 0.1%. Over the past few years that category has lost significant value, falling from an equalized value of nearly $1 billion in 2007 to this year’s value of $422.146 million.

Some staff of the county’s equalization department.

Countywide, about $400 million is captured by entities like local downtown development authorities (DDAs), local district finance authorities (LDFAs), brownfield tax increment financing, and other entities that are allowed to capture funds from taxing jurisdictions. For taxes levied by Washtenaw County government alone, $2.472 million goes to these other tax-capturing entities that would otherwise be revenues for the county’s general fund. That’s an increase of $67,409 compared to last year.

Patel reported that in 2013, the county had seen new construction valued at $368.14 million. Of that, 30% of that taxable value is capture by DDAs within the county, he said. This year, new construction is valued at $334.18 million, with 26% of that captured by DDAs.

The category of residential property accounts for 67.34% of total property value in the county. Five years ago, in 2009, it was 63%. That means the tax burden is shifting onto residential property owners, Patel said. He noted that residential property values are increasing – from an average sales price of $154,015 in March 2009 to $231,541 this March.

This year, Patel noted that 1,709 appeals were made to the various boards of review – property owners who contested their assessments. That’s significantly lower than last year, when 2,793 appeals were made. Of this year’s appeals, 1,128 appeals were granted, decreasing the total assessed value of property countywide by $21.112 million. In addition, 134 poverty exemptions were granted and 73 parcels were given exemptions for disabled veterans.

Patel highlighted state legislation regarding personal property taxes (PPT) that would affect the overall growth of equalized and taxable value. This year, property valued at up to $40,000 is exempt from the PPT, affecting 5,137 parcels. It’s part of a gradual phase-out of the PPT over the next 10 years, he said. The county’s equalization department is responsible for tracking this process for each unit of local government in Washtenaw County. A referendum on the Aug. 5, 2014 ballot will ask voters to approve a replacement of PPT revenues, directing a portion of the state’s “use tax” to local governments.

In addition, Public Act 161 of 2013 extends the homestead property tax exemption for disabled military veterans to spouses of deceased veterans. These new exemptions and the resulting losses in tax revenues are reflected in the county’s equalized and taxable value, Patel said.

Patel noted that Washtenaw County’s gross tax revenue is further decreased from downtown development authorities (DDAs), local development finance authorities (LDFAs), tax increment finance authorities (TIFAs), brownfield redevelopment authorities, and obsolete property rehabilitation authorities (OPRAs). These are issues that commissioners should be aware of, Patel said.

Equalization Report: Board Discussion

Several commissioners thanked Patel and his staff for their work. Yousef Rabhi (D-District 8) asked how the number of appeals granted this year (1,128) compared to last year. Patel replied that last year, more appeals were granted than this year – but in 2013, more appeals were sought as well.

Felicia Brabec (D-District 4).

Dan Smith (R-District 2) noted that the report gives separate equalized and taxable values for Willow Run and Ypsilanti public school systems. He wondered when the consolidation that took effect last year would be reflected in the equalization report. Patel indicated that the report will continue to list the districts separately for two more years, in case they split up again.

Smith also asked Patel if he could provide more historical information about the shift toward residential property, as a greater percentage of the total property in the county. “I think we need to be more aware of that shift that may be taking place, because it affects a lot of different policies in various ways,” Smith said.

Regarding that percentage, Felicia Brabec (D-District 4) asked if there were an optimal balance to be struck, in Patel’s opinion. Patel replied that 72 units of government rely on the tax base. The only way to increase or decrease that base is through changes in market value, he said. Aside from market value, the base is decreased through legislative exemptions. “And when you reduce your tax base, somebody has to pick up the burden – that’s the bottom line for everybody,” Patel said.

In Washtenaw County, he said, there are 140,161 parcels. Of those, 4,509 parcels are tax-exempt, he noted. Every year, additional parcels go into this category. In 2014, 69 parcels were exempted, with a taxable value of $8.27 million. Those exemptions are issued by townships, cities, the county and other entities. Someone has to pick up the burden, Patel said, adding that “it’s not a small thing.” In addition, a portion of the taxes from certain properties are being captured by entities like DDAs, he noted. “It all adds up.”

Conan Smith (D-District 9) referred to information that Patel had provided showing how property tax revenue would have increased if the state’s Headlee Act and Proposal were not in place.

Corporation counsel Curtis Hedger and Alicia Ping (R-District 3).

By way of background, the Headlee Amendment was approved by a voter referendum in 1978 as an amendment to the state constitution (Article IX, Sections 24-34). It limits the growth of property tax revenue by controlling how the maximum authorized millage rate is calculated. The maximum authorized millage rate is “rolled back” when taxable growth is greater than inflation. That limits the increase in tax revenue to the rate of inflation.

In 1994, Michigan voters approved Proposal A, a constitutional amendment that affected Article IX, Sections 3, 5, and 8. Designed to slow the increase of property taxes on individual parcels, it limits the increase in taxable value of each property to either the rate of inflation or 5% annually, whichever is less – even if the state equalized value (SEV) grows at a greater rate. When property is sold or transferred, the taxable value is reset – or “uncapped” – to the SEV.

Smith noted that during a strong economy, Proposal A didn’t have much effect. But when the economy turned down, Smith said “you saw this pretty dramatic skewing of what our revenue could have been from what it is.” In order to keep local governments whole, he said, legislative fixes are needed.

Patel noted that when the market value increases, it doesn’t mean that local governments will see that same growth in tax revenues. He pointed out that this year, equalized value for properties countywide grew 4.7%, but the increase in taxable value is only about 2%.

If Proposal A weren’t in place, the estimated tax revenue in 2014 would be about $87 million for the county’s general fund, Patel reported. Instead, it’s about $65 million.

Outcome: Commissioners voted to approve the equalization report.

Police Services Contract

A two-year pricing proposal for contracts to provide police services to local municipalities was on the April 16 agenda for final authorization. Initial approval had been granted by the board on April 2, 2014.

Washtenaw County sheriff Jerry Clayton.

For 2016 and 2017, the police services unit (PSU) price will be $156,709 and $158,276, respectively. An initial vote had been taken on April 2, 2014.

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

The board’s decision in 2011 was based on a recommendation from the police services steering committee. That same group recommended the next pricing changes as well, based on the cost of a police services unit (PSU). The PSU price for 2014 is $153,621. For 2015, the PSU price will be $155,157. In the following two years, the PSU price was proposed to be $156,709 in 2016 and $158,276 in 2017. The pricing for those two years was authorized by the board in its April 16 action.

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

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

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

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

Discussion during the April 2 meeting included concerns by some commissioners about the financial sustainability of this approach to funding police services, and the need for new revenue sources for public safety. Sheriff Jerry Clayton had been on hand to present the pricing proposal, and supported suggestions to seek new funding for public safety. He characterized the issue of public safety as one that encompasses economic development, human services and other aspects of the community.

There was no discussion on this item during the April 16 meeting.

Outcome: Commissioners gave final approval to the police services contract price.

Thompson Block Brownfield

A resolution giving final approval to a brownfield redevelopment plan for the Thompson Block in Ypsilanti’s Depot Town area was on the April 16 agenda. [.pdf of Thompson Block brownfield plan] Commissioners had granted initial approval on April 2, 2014.

This photo of the Sept. 23, 2009 fire on the Thompson Block property was included in the brownfield redevelopment plan packet.

The plan covers 400-408 N. River St. and 107 E. Cross St., an historic property that has been declared ”functionally obsolete and blighted.” That qualifies the project as a brownfield under the state’s brownfield redevelopment financing act (Public Act 381), which allows the owner to receive reimbursements for eligible activities through tax increment financing (TIF). Approval also would allow the developer to apply for Michigan Business Tax Credits. The property is currently owned by Thompson Block Partners LLC, led by Stewart Beal of Beal Properties.

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

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

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

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

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

A public hearing on this proposal was held at the April 2 meeting, when the board also voted to give initial approval to the plan. Only one person – Tyler Weston, representing Thompson Block Partners – spoke, telling the board that it would help the project.

Weston attended the April 16 meeting, but did not formally address the board. There was no discussion on this item.

Outcome: Commissioners gave final approval to the Thompson Block brownfield redevelopment plan.

Accommodation Tax Distribution

A resolution to give initial approval to distribute proceeds from a countywide tax on hotels and other accommodations was on the April 16 agenda.

Mary Kerr, president of the Ann Arbor Convention & Visitors Bureau, and Jason Morgan, director of government relations for Washtenaw Community College.

For 2013, $472,846 was available for distribution. If the resolution is given final approval, the county will keep 10% ($47,285) to pay for enforcement of the accommodation ordinance. The remainder will be divided between the Ann Arbor Convention & Visitors Bureau ($319,171) and the Ypsilanti Convention & Visitors Bureau ($106,390).

A final vote on that distribution is expected on May 7.

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

In December 2009, the board approved five-year contracts with the CVBs, outlining the distribution arrangement and creating an accommodation ordinance commission to oversee the process. An amendment made in September 2011 addressed the process for distributing excess funds that might accumulate from the county’s 10%, if that amount exceeds the expenses required to administer and enforce compliance with the tax. Beginning in May 2013, the county retained 10% of the tax proceeds, plus 10% of any remaining fund balance. If additional funds accumulate in the fund balance, they are to be returned proportionally to the two convention & visitors bureaus – 75% to Ann Arbor, and 25% to Ypsilanti.

Subsequently an ordinance change was made in October 2012, when the board voted to shift responsibility for collecting and enforcing accommodation tax from the county treasurer to the county finance director. The ordinance amendment transferred a 0.7 full-time equivalent accounting job from the treasurer’s office to the county finance department, and amended the accommodation tax policy to clarify that the tax is only assessed against the actual price of a hotel, motel or other rental – not against other amenities that the business might charge its customers, such as Internet access or an extra cot in the room.

Accommodation Tax Distribution: Public Commentary

The specific resolution was not addressed directly during public commentary. But Jason Morgan, director of government relations for Washtenaw Community College, and Mary Kerr, president of the Ann Arbor Convention & Visitors Bureau, attended the meeting to highlight the union training programs that will be coming to the area this summer. The CVBs have been instrumental in recruiting these kinds of events to Washtenaw County.

The United Association (UA) is coming in August, marking the 25th year that UA training has been held at WCC, Morgan said. The ironworkers union will also be training at WCC for the fifth year. The National Joint Apprenticeship and Training Committee (NJATC) National Training Institute for electricians is coming in July.

Morgan said he and Kerr wanted to make sure that the unions know they are appreciated by Washtenaw County and by WCC.

Kerr noted that the NJATC is celebrating its 25th year as a training program, so that milestone – along with the UA anniversary – will be bringing hundreds of additional people to this area. Collectively, the economic impact from these union training programs is $12 million annually in Washtenaw County, she said. That amount includes money spent on hotels, restaurants, entertainment, retail and transportation. “They do have a significant economic impact on the community,” Kerr said. “Our goal is to keep them here. Our goal is to roll out the red carpet and make this not only an educational opportunity for them, but also an entertaining and relaxing one as well.”

Accommodation Tax Distribution: Board Discussion

Several commissioners thanked Morgan and Kerr, and said they supported the economic vitality that unions bring to this community. Commissioner Ronnie Peterson (D-District 6) praised the work of the AACVB, saying that the county had an excellent partnership with them. He requested that Kerr return in the future to talk about the full range of activities that the CVB does. He wanted people to know that sometimes the government works well with the private sector. [.pdf of 2013 AACVB annual report]

Outcome: Commissioners voted unanimously to give initial approval to the accommodation tax distribution. Commissioners Dan Smith (R-District 2) and Conan Smith (D-District 9) were out of the room when the vote was taken. A final vote is expected on May 7.

Urban County Action Plan

The 2014 Urban County action plan was on the April 16 agenda for initial approval. The plan covers the period from July 1, 2014 through June 30, 2015 and outlines how the Urban County consortium intends to spend federal funding received from the U.S. Dept. of Housing and Urban Development (HUD). [.pdf of draft action plan]

Map of Urban County participants.

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 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. Locally, 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 (CDBG) and HOME Investment Partnership – are the primary funding sources for Urban County projects. For the upcoming year, the Urban County will be receiving $2.914 million, including $1.832 million from CDBG and $925,308 from HOME. That represents a 5% decrease in CDBG compared to the current year, and a 2% increase in HOME funding.

The 2014 plan identifies six overarching goals: (1) increasing quality, affordable homeownership opportunities; (2) increasing quality, affordable rental housing; (3) improving public facilities and infrastructure; (4) promoting access to public services and resources; (5) supporting homelessness prevention and rapid re-housing services; and (6) enhancing economic development activities.

A public hearing on the 2014 plan was previously held on March 19, 2014. A final vote on the plan is expected on May 7.

Urban County Action Plan: Board Discussion

Discussion was brief. Felicia Brabec (D-District 4) noted that there was almost a $90,000 decrease in CDBG funding. She asked what that decrease means in terms of the county’s ability to provide services.

Mary Jo Callan, director of the county’s office of community & economic development, replied that the decrease is “better than we feared.” The staff had been anticipating more of a 7% cut, so a 5% decrease was good news. The $90,000 in cuts won’t affect just one program, she said. So it will result in either fewer projects or scaled-down projects.

Outcome: Commissioners voted unanimously to give initial approval to the Urban County action plan. Commissioners Dan Smith (R-District 2) and Conan Smith (D-District 9) were out of the room when the vote was taken. A final vote is expected on May 7.

Bond Re-Funding

Commissioners were asked to give final authorization to the re-funding of up to $16.5 million in outstanding capital improvement bonds, which were originally issued in 2006 to fund expansion of the county jail. Initial approval had been given at the board’s April 2, 2014 meeting.

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

At the board’s April 2 meeting, bond counsel John Axe had told the board that current interest rates are between 4% and 4.3%. He estimated that the re-funding interest rates would be between 2.2% and 3.8%.

Outcome: Without discussion, commissioners gave final approval to the bond re-funding proposal.

Honoring Eugene Glysson

Commissioners held a moment of silence for Dr. Eugene Glysson, who had served on the county’s board of public works (BPW) since 1986. He died on April 2. They later passed a resolution of appreciation for his service to Washtenaw County. [.pdf of resolution for Eugene Glysson]

Ned Glysson, son of Eugene Glysson.

Glysson had served as chair of the BPW since 1996, and was considered an expert in solid waste management and planning. He also was a professor emeritus of civil and environmental engineering at the University of Michigan.

The resolution noted several of Glysson’s accomplishments, including his leadership in reviewing and approving an agreement with Washtenaw County’s only active landfill “that has provided long term support for the County’s solid waste program including its household hazardous waste program that has removed tons of hazardous materials from the environment…”

Glysson’s son, Ned Glysson, was on hand to accept the resolution, saying it would have meant a lot to his father. He noted that his father refused to retire from the BPW, and about a month ago he had attended a meeting “and was incredibly rejuvenated by it.” It had given his father something to live for.

Evan Pratt, who as the county’s water resources commissioner also serves as director of public works, said Glysson had been a good chair. Commissioner Yousef Rabhi, who served on the BPW for almost four years, recalled that in the early days he’d been late to a few meetings, and Glysson hadn’t been happy about that. “He told me I wouldn’t be late anymore, and I wasn’t,” Rabhi quipped. Rabhi called Glysson a mentor to him and a great environmental leader.

Rabhi noted that a new member will need to be appointed to the BPW, so he’ll be seeking applicants for that.

Telecommunicator Week

The board passed a resolution declaring April 13-19 as National Public Safety Telecommunicator Week in Washtenaw County. [.pdf of board resolution]

From right: Marc Breckenridge, the county’s director of emergency services; commissioner Yousef Rabhi; and Dave Halteman, manager of the county’s dispatch operations.

Marc Breckenridge, the county’s director of emergency services, was on hand to receive the resolution. He noted that six or seven dispatchers were working that night just a few blocks away.

Breckenridge introduced Dave Halteman, saying he’s worked with the county for 22 years, starting as a 911 dispatcher. In the mid-1990s, Halteman was promoted to lead the countywide 911 effort. Most recently, Halteman was involved in co-locating and integrating dispatch operations in Washtenaw County.

This month, Halteman was promoted to be manager of the county’s dispatch operations, Breckenridge said.

Halteman thanked the board, saying that the job of dispatcher is very difficult and requires the ability to multi-task.

Communications & Commentary

During the April 16 meeting there were multiple opportunities for communications from the administration and commissioners, as well as public commentary. In addition to issues reported earlier in this article, here are some other highlights.

Communications & Commentary: Emergency Sirens

Speaking during public commentary, James Richardson of Scio Township told commissioners that there’s a potential life-threatening danger – a new emergency siren that was installed at the edge of his pasture.

James Richardson of Scio Township.

When the county approved the expansion of emergency sirens into the townships, he said, they probably viewed it as an improvement in public safety. But they might not have considered the resulting unintended danger. When he first learned that the siren would be installed, he expressed concern that it would bother his horses. He eventually spoke with Marc Breckenridge, the county’s director of emergency services, who assured him that studies show that livestock get used to these types of sounds. “I can assure you that these experts haven’t seen horses very near a siren,” Richardson said.

On Saturday, April 5 at noon, the sirens went off for the first time that he was aware of, Richardson said. He happened to be watching his horses, who reared and bolted, running wildly through the pasture. If someone had been riding a horse at that time or even standing near them, it could have caused serious injury and possibly death, he said. If the horses had been near the north end of the pasture, they might have bolted through the fence and onto Liberty Road.

Richardson said he was appealing to the board to have the siren removed from this location. He doubted that his horses would get used to the sound, especially since the sirens are only tested once a month for 1-2 minutes. “I’m notifying you of this danger, and also notifying you that if you fail to act, the board and the county will assume full responsibility for all and any of the resulting damage or injury to my horses, to my property, or any personal injury resulting from the dangerous situation that the emergency siren creates.”

Commissioner Conan Smith (D-District 9) urged Breckenridge to explore how the county can protect the interests of landowners as well as public safety. Sometimes those things come into conflict, he added, but it’s worth having a conversation to explore the options. Commissioner Ronnie Peterson (D-District 6) said he’d like to ensure that someone in the county administration follow up on this issue.

Communications & Commentary: Budget

Responding to a query from Ronnie Peterson (D-District 6), Felicia Brabec (D-District 4) described the process for this year’s budget affirmation. Although the board passed a four-year budget in late 2013 – for the period of 2014 through 2017 – they also need to vote each year to reaffirm the next year’s budget, with any changes they might make.

Commissioner Andy LaBarre (D-District 7) talks with Greg Dill, the county’s director of infrastructure management.

As a first step, Brabec said, commissioners authorized the county administrator to hire a contract employee who will support budget-related work this year for the county board and administration. That authorization took place at the board’s March 19, 2014 meeting. That person will help the board work on aligning the budget to support community outcomes that commissioners had identified.

By way of additional background, as part of adopting a four-year budget, the board set up a new strategic model to help it determine where the county’s resources should go. The board set goals as well as outcomes that are intended to measure how those goals are being achieved. The priority areas for investment that were approved by the board in 2013 are: (1) ensure community safety net through health and human services, inclusive of public safety; (2) increase economic opportunity and workforce development; (3) ensure mobility and civic infrastructure for county residents; (4) reduce environmental impact; and (5) ensure internal labor force sustainability and effectiveness.

On April 16, Peterson asked whether there could be a working session to review the goals and outcomes, saying that some things might have changed since those goals were adopted. Brabec replied that those kinds of discussions are being planned. Because of frequent low attendance at working sessions, she wondered whether it might be better for the discussion to occur at a ways & means committee meeting. “The discussion will happen,” she said. “We just need to find the best way for those discussions to happen.”

Communications & Commentary: MPRI

Ronnie Peterson (D-District 6) spoke at length about the need to support the Michigan Prisoner Re-Entry Initiative (MPRI), calling it an unfunded mandate from the state. Yousef Rabhi (D-District 8) agreed that it was an issue the board needs to tackle. Rabhi noted that he serves on the board of the Religious Action for Affordable Housing (RAAH), which has made the Washtenaw County prisoner re-entry program one of its three top priorities. He thought the county should prioritize it too.

Peterson said he wanted a working session on the topic, including a discussion about how the county allocates its dollars for human services programs in relationship to the coordinated funding approach. “It’s not about stopping coordinated funding,” he said. “It’s about how we address the unmet needs of this community.”

Andy LaBarre (D-District 7), who chairs the board’s working sessions, said he’d be glad to schedule a session on this topic. He noted that this year, the working sessions had not yet achieved 100% attendance. So he hoped commissioners would attend.

The following week, on April 22, LaBarre emailed commissioners an updated schedule of the next six working sessions:

• May 8: MSU Extension update; and follow-up on road commission expansion
• May 22: Community Health Improvement Plan report; and report on homelessness in Washtenaw County task force
• June 5: Report on Virtual Business Advisor initiative
• July 10: Dog licensing public awareness campaign; and Mental Health Court update
• August 7: ID task force report
• September 4: Prisoner reentry (MPRI)

Communications & Commentary: Smoking

During the time on the agenda to bring up items for current or future discussion, Alicia Ping (R-District 3) pointed out that earlier this year, she’d raised the issue of possibly requiring that new hires be tested to make sure they’re nicotine-free. It’s a policy that’s trending in the private sector, Ping noted, and she’d like to have a broader discussion about it. “It’s an expensive liability to take on people who are purposefully are not contributing to their good health,” Ping said.

County administrator Verna McDaniel replied that staff are looking at a range of wellness issues, including that one.

Communications & Commentary: Homelessness

Elizabeth Kurtz spoke about the Delonis Center homeless shelter’s warming center. She thanked the board for funding an extension of the warming center until April 30. If it had closed on April 6 as previously planned, she said, a lot of people would have been outside during cold weather. She told commissioners that she’s lived on the streets for over a year, and based on the needs that she sees, she’s been working with others to end homelessness.

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

They’ve formed an organization called “Our 2020 Vision,” and are seeking support from local governments and private entities to help end homelessness by the end of this decade. The urgency of this issue will no longer allow it to be placed on the back burner, Kurtz said. Specifically, she called on commissioner Ronnie Peterson (D-District 6) to help acquire the vacant East Middle School in Ypsilanti for use in this effort, and asked other commissioners to help as well.

Ray Gholston also thanked commissioners for helping extend the warming center through April. The county had provided $35,000 to keep it open, he noted, but he questioned why it would cost so much “just to throw a few mats on the lunchroom floor, say goodnight and turn off the lights.” He said he still has a job and is still trying to figure out where he’ll sleep after this month. He’s part of the Our 2020 Vision effort, calling it a human rights organization that’s focused on the homeless population. The group is requesting a meeting with some or all commissioners, to help deal with the crisis.

Commissioner Yousef Rabhi (D-District 8) thanked advocates for the homeless for coming to the meeting, and said he looked forward to the board’s May 7 meeting when a timeline would be presented for addressing an update to the Blueprint to End Homelessness. [At its April 2, 2014 meeting, commissioners had directed county administrator Verna McDaniel to bring forward a plan by May 7 for updating the county’s Blueprint to End Homelessness, which was originally adopted in 2004. The process of updating that plan is to be completed by Oct. 1, 2014. For board discussion on this issue, see Chronicle coverage: "Homeless Issues Emerge on County Agenda."]

Communications & Commentary: US-23

Yousef Rabhi noted that an environmental assessment is being conducted for MDOT’s proposed expansion of US-23 near Ann Arbor. MDOT is seeking public input, and Rabhi said he intended to express his opposition to the project because of environmental concerns. It would be expanded from M-14 to just north of 8 Mile Road near Whitmore Lake. He encouraged others to provide input as well.

Communications & Commentary: Misc. Public Commentary

Several University of Michigan students spoke during public commentary. As a class project, they’re working on an initiative to reduce the use of plastic bags in Washtenaw County.

University of Michigan students spoke during public commentary.

Their proposal is based on a model used in Washington D.C. that includes imposing a small usage fee on single-use plastic bags. The goal is to nudge consumers to be more aware of their consumption choices. They’ve spoken with commissioner Yousef Rabhi to explore their options. To gauge possible support, they’ve started a petition on MoveOn.org and have reached out to community groups like Recycle Ann Arbor and the Huron River Watershed Council, as well as student groups at UM, Eastern Michigan University and Washtenaw Community College.

Lefiest Galimore touched on several issues during public commentary. As he has in the past, Galimore argued that the coordinated funding approach tends to prevent African-American organizations from getting funded. If his small organization is given $1,500 and a larger organization is given $35,000, then that larger organization will have more capacity to do its work, he said. So the county needs to look at that. Galimore also said that people with mental illness who get involved in the criminal justice system get labeled as criminals, and it’s then impossible for them to get productive jobs. “We need to look at that as a community.”

Thomas Partridge told commissioners that the agenda needed to give more attention to greater priorities, including efforts to eliminate homelessness by providing true affordable housing and countywide public transportation. He supported the transit tax that’s on the May 6 ballot in Ann Arbor, Ypsilanti and Ypsilanti Township.

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, May 7, 2014 at 6:30 p.m. at the county administration building, 220 N. Main St. in Ann Arbor. The ways & means committee meets first, followed immediately by the regular board meeting. [Check Chronicle event listings to confirm date.] (Though the agenda states that the regular board meeting begins at 6:45 p.m., it usually starts much later – times vary depending on what’s on the agenda.) Public commentary is held at the beginning of each meeting, and no advance sign-up is required.

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

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

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

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

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

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

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

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

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

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

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

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

Funds for Homeless Shelter

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

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

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

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

Funds for Homeless Shelter: Public Commentary

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

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

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

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

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

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

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

Funds for Homeless Shelter: Board Discussion

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

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

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

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

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

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

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

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

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

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

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

Yousef Rabhi (D-District 8).

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

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

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

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

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

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

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

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

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

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

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

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

Conan Smith (D-District 9).

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

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

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

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

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

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

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

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

Rabhi then proposed a substitute resolution:

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

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

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

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

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

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

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

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

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

Funds for Homeless Shelter: Coda

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

Road Commission

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

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

Andy LaBarre (D-District 7).

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

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

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

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

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

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

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

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

Thompson Block Brownfield Plan

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

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

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

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

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

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

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

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

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

Thompson Block Brownfield Plan: Board Discussion

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

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

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

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

Police Services Contract

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

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

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

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

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

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

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

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

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

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

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

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

Police Services Contract: Board Discussion

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

Ronnie Peterson (D-District 6).

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2013 Audit

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

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

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

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

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

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

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

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

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

2013 Audit: Board Discussion

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

There were no questions from other commissioners.

County Jail Bonds

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

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

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

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

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

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

Autism Coverage

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

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

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

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

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

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

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

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

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

Autism Coverage: Public Commentary

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

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

Autism Coverage: Board Discussion

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

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

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

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

First-Quarter Entitlement Grant Update

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

There was no presentation or discussion of this item.

Recognitions & Proclamations

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

Recognitions & Proclamations: Public Health Week

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

The awardees are:

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

Recognitions & Proclamations: Ann Arbor Community Center

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

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

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

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

Communications & Commentary

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

Communications & Commentary: Same-Sex Marriage

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

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

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

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

County administrator Verna McDaniel.

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

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

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

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

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

Communications & Commentary: Coordinated Funding

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

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

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

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

The recommendations will be brought to the board in May.

Communications & Commentary: Misc.

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

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

Absent: Rolland Sizemore Jr.

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

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Pat Kelly, former Dexter Township supervisor, talks with county commissioner Conan Smith and finance director Kelly Belknap before the March 19, 2014 county board meeting. The board passed a resolution of appreciation for Pat Kelly during the meeting. (Photos by the writer.)

The board also heard from county treasurer Catherine McClary, who reported that foreclosures are decreasing, as are delinquent taxes. Delinquent taxes are a leading economic indicator for both mortgage foreclosures and tax foreclosures, she noted, so the decreases are good news. Commissioners gave initial authorization to the treasurer’s office to borrow up to $30 million against the amount of delinquent property taxes in all of the county’s 80 taxing jurisdictions, an annual process.

Commissioners also authorized the county administrator to hire a contract employee who will support budget-related work this year for the county board and administration. The vote came over dissent from Rolland Sizemore Jr., who felt the work could be absorbed by existing staff.

The budget was also the focus of an update from lobbyist Kirk Profit and his colleague Gary Owen at Lansing-based Governmental Consultant Services Inc., who talked about how action in the state government might impact Washtenaw County. GCSI is the lobbyist for the county and several other local governments, including the city of Ann Arbor. Their updates included the fact that legislation has been introduced to repeal Act 88, which the county uses to levy taxes for economic development and agriculture. This year, the county has budgeted $973,000 in revenues from an Act 88 levy.

In other action, the board appointed former Superior Township supervisor Bill McFarlane to the county road commission board, to fill the seat left vacant by the recent death of long-time road commissioner Fred Veigel. The remainder of that six-year term runs through Dec. 31, 2014.

Commissioners supported McFarlane, but also discussed the possibility of changing the process so that interviews with applicants would be held at a public meeting. Yousef Rabhi (D-District 8), who as board chair makes these nominations, described the process of nominating a new road commissioner as a difficult one, and highlighted the need for a five-member road commission. Currently the road commission board consists of three members. It’s an issue that Rabhi plans to bring up at an April 17 working session.

The board also took a step toward allowing employees to get health insurance coverage for the treatment of autism. Commissioners gave initial approval that would authorize adding an Autism Spectrum Disorder (ASD) rider to existing active employee and retiree benefits.

And a resolution to oppose a mineral mining operation in Lyndon Township drew criticism from Dan Smith (R-District 2), who objected to the county board weighing in on an issue that’s not within its purview. Other commissioners felt the county had a vested interest in formally voicing an opinion, both because of broader economic and environmental impacts that would affect residents, and because the county parks & recreation commission owns property in the township. Smith’s decision to state “present” – rather than casting a yes or no vote – resulted in brief discussion about board rules.

Lyndon Township Mineral Mining

A resolution opposing a mineral mining proposal in Lyndon Township appeared on the March 19 agenda.

The resolution stated that the county board “formally opposes the establishment of the proposed McCoig Materials mining operation in Lyndon Township on the basis of the very serious negative consequences to the surrounding communities.” The company is proposing a sand and gravel mine on 189 acres north of Chelsea on M-52. The rural site is located near several parks and nature areas, including Waterloo State Recreation Area, the Pinckney State Recreation Area, Park Lyndon, the Green Lake Camping area, and the Waterloo-Pinckney Hiking Trail. Over 31,000 acres of protected land is located in that area.

McCoig is asking Lyndon Township for special land use zoning and has submitted an application for a mineral mining operation. Public hearings on the issue have drawn heavy opposition. On its website, the township has noted that its authority is limited:

Michigan State Legislators have greatly reduced township control by passing Act 110 of 2006 (125.3205). Under that law, the township must not “prevent the extraction, by mining, of valuable natural resources from any property unless very serious consequences would result from the extraction of those natural resources. Natural resources are considered valuable for the purposes of this section if a person, by extracting the natural resources, can receive revenue and reasonably expect to operate at a profit.” The township’s authority is limited to “reasonable regulation of hours of operation, blasting hours, noise levels, dust control measures, and traffic that are not preempted by part 632 of the Michigan environmental laws,” 1994 PA 451, MCL 324.63201 to 324.63223.

The county board’s resolution addresses these issues, stating in its “whereas” clauses that “the noise, dust, air pollution, and additional heavy traffic generated by the operation of the mine and the transportation of the minerals will likely have serious negative consequences for the natural environment and wildlife …” [.pdf of full resolution]

The issue was also raised during the March 11, 2014 meeting of the Washtenaw County parks & recreation commission. WCPARC director Bob Tetens subsequently sent a letter to Lyndon Township supervisor Mark Keezer outlining several concerns with the project. [.pdf of Tetens letter] The letter indicates that WCPARC is willing to purchase the property.

Lyndon Township Mineral Mining: Public Commentary

A resident of Lyndon Township spoke during public commentary, saying he’s not anti-mining. “But my mama taught me there’s a right place for everything, and in the heart of the largest state recreation area in the lower Peninsula is not the right place.” He strongly encouraged commissioners to pass the resolution and to do everything in their powers to support the citizenry, “who I can tell you is very strongly against this.”

Larry Murphy, a Scio Township resident, told commissioners that he’s a candidate for the county board. [Murphy, a Republican, has filed to run for the Aug. 5 primary in District 1. The seat is currently held by Democrat Kent Martinez-Kratz, who is running for re-election.] Murphy said he attended the public meeting earlier in the month about this proposal, which was held by the Lyndon Township planning commission. He said he was shocked that about 500 people attended. It’s really a disaster in terms of the environment and the effect on recreation, Murphy said. It’s also a disaster in terms of transportation, because of the trucks that would be going through downtown Chelsea. He encouraged the board to oppose this project. He wanted people to know that opposition to this is bi-partisan. “This mining company, McCoig, has no support, no friends in Washtenaw County,” Murphy concluded.

Lyndon Township Mineral Mining: Board Discussion

Kent Martinez-Kratz (D-District 1) – who represents the county district that includes Lyndon Township – described the situation, noting that the mining would directly affect a county park. Park Lyndon shares a lake with the proposed sand mine, he noted, and the company plans to use water from the lake as part of its mining operation. He pointed to the letter by Bob Tetens, director of the county parks & recreation commission, as giving a good explanation of the objections. Martinez-Kratz also noted that about 700 people had attended two public meetings in the township, overwhelmingly opposed to this proposal. He thought the community would appreciate the county’s opposition.

From left: Yousef Rabhi (D-District 8) and Dan Smith (R-District 2).

Dan Smith (R-District 2) spoke about process and the county board’s role. “It seems that this board simply can’t mind its own business. Here we are, yet again, sticking our nose in someone else’s business.” This is a matter for Lyndon Township to decide what’s best for them, he said. The planning commission is holding public hearings and getting lots of public comment. The planning commission will review that public comment, as well as the advice from their attorneys, and make a decision. The township board will subsequently weigh in as well. If voters are unhappy about that, they have a right of referendum, Smith noted. Residents can circulate petitions and perhaps overturn whatever decision is made. If a lawsuit occurs, it will be the taxpayers of Lyndon Township who’ll be paying for it, he noted.

It’s not the job of the county board to sort out these issues, Smith said. This isn’t under the county’s control, he added, “and I wish you would stop having things in front of us that are not under our purview.” [In general, Smith has consistently objected to resolutions weighing in on issues – usually at the state level – that are outside the purview of the county board.]

Conan Smith (D-District 9) said he appreciated Dan Smith’s position that the township board will be making the decision. But Washtenaw County is a significant landowner in Lyndon Township, he noted, with properties including Park Lyndon and West Lake Preserve. The resolution that the board is considering plainly articulates the impacts on natural resources as being the main driver of the county’s concern, C. Smith said. The township is gathering public opinion, and the county as a landowner has an interest in that land and the possible impacts of the mining facility. “It’s right for us to articulate our concerns,” he said. The resolution doesn’t carry any more weight than other landholders, he said, and he supported it.

Rolland Sizemore Jr. (D-District 5) asked whether the Lyndon Township board supported or opposed the mining proposal. Yousef Rabhi (D-District 8) didn’t think the township board had made a determination – that’s why they’re soliciting public comment. Sizemore wondered what the county board’s resolution would do. Rabhi replied that it expresses the board’s opposition to the mining operation.

Sizemore said Dan Smith had a point about it being the township’s business. But Sizemore noted that he served on the county parks & recreation commission, which has a lot of land there, so he’d support the resolution. [Dan Smith and Conan Smith also serve on the parks & recreation commission.]

Kent Martinez-Kratz (D-District 1) talks with former Dexter Township supervisor Pat Kelly.

Rabhi thanked Martinez-Kratz for advocating on this issue. Rabhi noted that his own personal interest in it stems from his background in environmental studies. He’s heard from people at the University of Michigan that they also have concerns about this project. Rabhi called Tetens’ letter well-stated, outlining many concerns that people share. It’s a community-wide issue, he said, not just isolated to the township. Lyndon Township is within Washtenaw County, and the county has a duty to take a stance on this – because the environment in the county is a countywide asset to all citizens. “We are doing the right thing by passing this resolution in opposition of the mining operations in Lyndon Township,” Rabhi said. It should be a concern for all of Washtenaw County.

Dan Smith countered that if the state wanted the county board to have control over land use, then the legislature could amend the zoning enabling act. In some states, land use is a county matter, he said. If that were the case, then the question of this mining operation would rightfully be before the county board, and it would make the determination.

The proper response, D. Smith continued, is in Tetens’ letter, where Tetens indicated the willingness of the parks & recreation commission to buy the property. It makes perfect sense for natural areas preservation, he said.

Martinez-Kratz thought the state would want the county board to advocate on issues that are important to the county. This issue is important for economic and environmental reasons, he said. It won’t be resolved quickly, and he thought that township officials would look for guidance from the county as well as from the township residents.

Outcome: The resolution passed. Alicia Ping (R-District 3) was absent, and Dan Smith (R-District 2) stated “present.”

Lyndon Township Mineral Mining: The Vote – Coda

Kent Martinez-Kratz asked corporation counsel Curtis Hedger for clarification about how Dan Smith’s vote would be recorded. The board rules state that a commissioner must vote yes or no unless there’s a conflict of interest, but Hedger noted that there’s no mechanism to enforce the rule.

Hedger said he did some research, because Smith had indicated that he would be making the “present” statement. It will be recorded that Smith stated “present,” Hedger said. But because it takes an affirmative vote to approve a resolution, then anything else is considered a “soft no.” Yousef Rabhi recommended making a note next to the vote, indicating that it’s not in keeping with the board rules.

Specifically, the board rules – as adopted unanimously by commissioners at their Jan. 8, 2014 meeting – state:

O.
 VOTING:

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

1.
 Roll
 Call
 Vote:

Roll
 call
 vote
 shall 
be 
taken
 when 
called 
for 
by 
any
 member 
of 
the 
Board, 
and
 on 
board actions 
to 
adopt 
ordinances, 
resolutions
 and 
the
 appointment 
or 
election 
of 
officers.

2.
 Votes 
Required:

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

Ronnie Peterson noted that commissioners are individually elected, and they can choose to vote or not vote. Every commissioner stands by their individual commitments to vote, he said. The resolution passed with majority support, he noted. The board establishes its practices and norms by example, Peterson said. Whatever the board finds acceptable is how it will function, regardless of what the official rules state, he added. “I don’t like that, but we’ve established that in the past.”

Appointments

At the board’s March 19 meeting, Yousef Rabhi (D-District 8) made nominations to six county committees, commissions and boards. [.pdf of application packet] Nominations are made by the board chair, with confirmation of the appointments made by a vote of the full board.

Appointments: Road Commission Board

Yousef Rabhi nominated former Superior Township supervisor Bill McFarlane to the Washtenaw County road commission board, to fill the seat left vacant by the recent death of long-time road commissioner Fred Veigel. The remainder of that six-year term runs through Dec. 31, 2014. Unlike most other county-appointed boards, road commissioners receive annual compensation of $10,500.

Superior Township supervisor Ken Schwartz, a former road commissioner.

McFarlane was among 10 applicants for the position. Others who applied included former county commissioner Rob Turner; Mike Henry, chair of the Ann Arbor Democratic Party; and University Bank CEO Stephen Ranzini.

During the evening’s first opportunity for public commentary, Ken Schwartz – a former county commissioner, former road commissioner and current supervisor of Superior Township – spoke briefly in support of McFarlane’s appointment. He noted that McFarlane was very experienced in local government. McFarlane had served as Superior Township’s supervisor for 22 years and before that worked for the sheriff’s department. “Bill is more than qualified to step in,” Schwartz said. McFarlane has worked with municipal budgets, and understands the difference between primary roads and local roads. He’d be an excellent choice, Schwartz concluded.

Conan Smith (D-District 9) said he was glad that McFarlane would be back working for the county. He described McFarlane as very bright and “super genial,” and as someone who is trusted by the communities that are impacted by decisions of the road commission.

Ronnie Peterson (D-District 6) described McFarlane as a personal friend, and said there was no question about his integrity. He was pleased that McFarlane was willing to serve, and he supported the nomination.

However, Peterson said he was concerned about following proper procedures, and that the board hadn’t always done that. In the past, they’d gotten rid of a 24-year veteran on the road commission, Peterson said, “through a process that was very questionable.” [Peterson didn't mention any names, but was possibly referring to Steve Puuri, who retired as managing director of the road commission in 2011 after nearly 25 years.]

Following the rules and procedures is the only way that people know that something is being done in a fair, consistent way, he said. Peterson questioned why there hadn’t been public interviews of potential candidates to the road commission board.

Peterson also said he hadn’t yet heard about the recommendations regarding the future of the road commission, which a board subcommittee had undertaken. He wanted to have some discussion about that. If the nomination were anyone else besides McFarlane, Peterson said he might not vote for that person, because he didn’t think the process had been fair, clear or consistent.

Conan Smith responded, saying that candidates for the road commission in the past had been interviewed, but that hadn’t happened for at least seven years. The more recent appointments to the road commission hadn’t been made that way, he noted, and perhaps the board should return to its past practice. He said he knew how rough it was for the board chair to have to make the decision.

C. Smith noted that since the current appointment runs only through the end of 2014, there would be a chance soon to implement an interview process when the county board makes an appointment for the term that begins on Jan. 1, 2015. He thought it would be very valuable for the public to have input.

Rolland Sizemore Jr. (D-District 5) said he supported McFarlane. He disagreed with Peterson and C. Smith, saying that citizens elected the county commissioners so that the commissioners would make decisions. It’s the board’s job to make these appointments, he said, not to set up an advisory committee to make recommendations. He thought the board was letting go of its authority, and letting residents decide “when they don’t know a third of the story.”

Andy LaBarre (D-District 7) noted that the road commission would be the topic of an April 17 working session, which he chairs. He suggested continuing discussion of the issue at that time. The working session will also include a report from the subcommittee that is making recommendations on the future of the road commission. [For additional background, see Chronicle coverage: “No Major Change Likely for Road Commission.”]

Rabhi described the process of nominating a new road commissioner as a difficult one. He appreciated the diversity of backgrounds among the applicants. He said he called all 10 applicants for 15-30 minutes or more, to talk about their interests and qualifications. “It was a very hard and stressful process for me.” McFarlane has the qualifications necessary to fill this vacancy, Rabhi said, and he was happy to put his name forward.

Rabhi said it would be great to find a way to engage all the applicants, who are passionate about roads and road funding. Perhaps there’s a way to do that in an ongoing basis, he said.

Yousef Rabhi (D-District 8), chair of the county board.

Noting that this might be extremely controversial, Rabhi then said the county needs a five-member road commission. Currently the road commission board consists of three members. “This process highlighted that need” to expand, he said. With five members, the road commission would have more representation from more backgrounds and more parts of the community. That would result in a more productive dialogue than three commissioners can have, Rabhi said, especially given the restrictions of the state’s Open Meetings Act.

It’s an issue that Rabhi plans to bring up at the April 17 working session.

Rabhi said he’d love to hear about how the public interview process has worked in the past, noting that he wasn’t on the board when those kind of interviews occurred. He’d like to review that process, as long as it’s not taking away the decision-making from the board.

In this case, given the vacancy and the need for a full road commission board, a new commissioner needed to be appointed quickly, Rabhi said. He again stressed that he’d spent a lot of time talking to applicants as well as to fellow county commissioners, to get their input. He hoped the board would support McFarlane.

Sizemore wanted to know when the county board could change the pay of the road commissioners. Corporation counsel Curtis Hedger said it can’t be done during a road commissioner’s current term. It would have to be done and take effect at the beginning of the new term. Sizemore said that if the road commission board is expanded to five members, perhaps the salary should be reduced to $6,000 each. Hedger pointed out that there would be varying salaries for a period, because the terms for the road commissioners are staggered.

Peterson said he didn’t know where the idea of having a citizens advisory committee had come from, and emphasized that the appointments are made by the board. Whatever process is put in place should also be decided by the board, he said.

Outcome: Commissioners unanimously appointed Bill McFarlane to the Washtenaw County road commission.

Later in the meeting, Ronnie Peterson asked whether expanding the road commission to five members would actually mean dissolving the existing road commission and establishing a new one. He asked corporation counsel Curtis Hedger to research that question. He said he wasn’t advocating for it, and joked that he hoped people wouldn’t call him about it.

Yousef Rabhi also suggested that the board might consider designating positions on the road commission board based on specific skills – like community outreach, or technical expertise – so that there’s more diversity of background, especially if the road commission board is expanded to five members. It might even include geographic designations, he said. That might be something else that Hedger could explore.

In general, Rabhi said he wanted to move road commission appointments away from being political and more toward being policy-driven.

Appointments: Other Commissions & Committees

Yousef Rabhi made several other nominations on March 19:

• Accommodations ordinance commission, for a term ending Dec. 31, 2014: Andy LaBarre (D-District 7).
• Agricultural lands preservation advisory committee, for a term ending Dec. 31, 2014: Erica Bloom (environmental/conservation group/natural resources professional).
• Workforce development board, for terms ending Dec. 31, 2016: John Haberthy (private sector) and Matthew Sandstrom (private sector).

In addition, five nominations were made to the Act 88 advisory committee, for terms ending Dec. 31, 2014. Three county commissioners – Conan Smith (D-District 9), Alicia Ping (R-District 3) and Ronnie Peterson (D-District 6) – were appointed, along with citizens Todd Clark and Art Serafinski.

Action on appointing the Act 88 advisory committee had been originally considered at the board’s Feb. 19, 2014 meeting. The item was postponed after Ronnie Peterson (D-District 6) raised concerns over the policy governing the committee’s role. The committee had been created at the board’s Nov. 6, 2013 meeting, as part of a broader policy to help the board allocate revenues levied under Act 88 of 1913. No appointments had been made at that time, however. The county levies the tax to fund economic development and agricultural activities, including Ann Arbor SPARK. [.pdf of March 19 staff memo on Act 88]

Outcome: All appointments were approved by the board.

Staff for Budget Work

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

County administrator Verna McDaniel.

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

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

The dollar amount for this position wasn’t included in the resolution, which stated that “compensation shall not exceed the scope of the Administrator’s authority.” The administrator has discretion to spend up to $50,000 on professional services contracts, and up to $100,000 for any proposed goods, services, new construction or renovation. [.pdf of staff memo and resolution] A four-page job description had been included in the Feb. 5 board packet. The person would report to the county administrator in terms of daily operations. [.pdf of job description] [.pdf of scope of services]

The issue was debated at some length during the board’s Jan. 22, 2014 meeting, when commissioner Ronnie Peterson (D-District 6) questioned the process for hiring this kind of staff support. On Feb. 5, several commissioners expressed concern about spending money on this position and wanted more details about funding and duties, which led to the postponement. There was no discussion about the item on March 5, when it was given initial approval on a 7-1 vote, over dissent from Dan Smith (R-District 2). Rolland Sizemore Jr. (D-District 5) had been absent.

Staff for Budget Work: Board Discussion

On March 19, Ronnie Peterson asked for the item to be pulled out for a separate vote. He said he supported the staff position, but wanted to clarify some things. He joked that the chair, Yousef Rabhi, “took me to the back room, to make sure I did not waver.”

Peterson referred to the following “whereas” clause, highlighting a reference to the board leadership:

WHEREAS, upon approval, the Administrator is directed to work with Board Leadership to contractually engage a qualified professional to assist the BOC to develop strategies and provide oversight for the integration of Board-defined community impacts and outcomes into organizational and departmental programs, policies and budget priorities and;

Peterson said he wasn’t part of the board leadership, and he wanted to know how they perceived the role of this new employee. [The leadership includes board chair Yousef Rabhi; vice chair Alicia Ping; Felicia Brabec, chair of the ways & means committee; and Andy LaBarre, chair of the working sessions.] How would the communication flow from the leadership to the rest of the board? Peterson asked. He noted that the new staff person would be under the supervision of the county administrator, but would report to the board.

Felicia Brabec said that the “whereas” clause relates to hiring the person, and she encouraged all commissioners to be involved in that process. She was open to changing “board leadership” to simply “the board.”

Regarding the flow of information, Brabec said the person would regularly come to board meetings to update commissioners about the work. That way, commissioners would be on the same page when they needed to make decisions for the budget reaffirmation later this year, she said.

Rabhi supported an amendment to strike the phrase “to work with Board Leadership.” But Conan Smith said he thought the board should be involved in the hiring. Peterson agreed, saying the board should be very open about this hiring, and should let other employees know what this person will be doing. The role should be clearly defined, he said. Peterson agreed that the entire board should be involved, not just the leadership.

The proposed amendment changed the “whereas” clause to state [emphasis added]:

WHEREAS, upon approval, the Administrator is directed to work with the Board to contractually engage a qualified professional to assist the BOC to develop strategies and provide oversight for the integration of Board-defined community impacts and outcomes into organizational and departmental programs, policies and budget priorities and;

Outcome on amendment: On a voice vote, commissioners approved the amended “whereas” clause.

Rolland Sizemore Jr. (D-District 5).

Rolland Sizemore Jr. wondered whether in the future he should contact county administrator Verna McDaniel, or the new staff person that would be hired. He was skeptical about the need to hire someone new. “We’ve already got 1,300 employees, but you guys feel we need to hire somebody else to do Verna’s job, and Verna’s job is to tell somebody on her staff to get some work done.”

Sizemore also asked why there were no dollar amounts specified in the resolution for this new hire, or a timeframe for this work. Finally, he asked whether the county would also need to hire someone to implement the recommendations made by the new employee. He didn’t support the hire, saying that the county already had staff who could do this work.

Brabec and McDaniel clarified that the contract would likely be between $50,000 to $75,000, and would not exceed the amount that the county administrator is allowed to spend without board approval – a $100,000 limit. In terms of a timeframe, McDaniel said it would likely be a contract at least through 2014. The board would need to decide whether the work would continue beyond that, she said.

Sizemore noted that not long ago, the county was poised to borrow up to $350 million “because we were in such desperate straits,” but now there’s money to hire someone new. He would not support the resolution. [Sizemore was referring to a bond proposal that had been floated in early 2013 to cover unfunded pension and retiree healthcare obligations. McDaniel had initially said the bond was crucial to the county's financial health, but the proposal was dropped in July of 2013 amid concerns over cost and process, as well as uncertainty related to the state approval process that was required for this type of bonding.]

Outcome: The resolution on hiring a contract employee for budget work passed on a 6-1 vote, over dissent from Rolland Sizemore Jr. Dan Smith was out of the room when the vote was taken, and Alicia Ping was absent.

Autism Coverage

Andy LaBarre (D-District 7) brought forward a resolution from the floor, authorizing the county to provide health insurance coverage for the treatment of autism. The resolution would authorize adding an Autism Spectrum Disorder (ASD) rider to existing active employee and retiree benefits. [.pdf of staff memo and resolution]

Adding the rider would cost the county an estimated $182,589 this year, according to staff – to be paid to Blue Cross Blue Shield of Michigan. To cover that cost, each county department will be charged on a per-employee basis. In addition, the county will pay for claims made by employees for this benefit, with the assumption that most if not all claims would be reimbursed by the state. LaBarre described the amount of claims that the county might be required to pay as a “moving target, but one I think we can meet.” He said the policy is needed for employee recruitment and retention, as well as for the “basic moral argument” that coverage should be provided.

Andy LaBarre (D-District 7).

The board has been discussing this possibility for several months. LaBarre noted that Conan Smith (D-District 9) had brought up the issue last fall, pointing out that the county didn’t provide full mental health parity. That was because of budgetary constraints, LaBarre said.

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

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

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

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

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

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

The resolution given initial approval on March 19 included two resolved clauses:

NOW THEREFORE BE IT RESOLVED that the Washtenaw County Board of Commissioners authorizes the implementation of the Autism Spectrum Disorder (ADS) rider to existing active and retiree as soon as feasibly possible through Blue Cross/Blue Shield of Michigan, providing mental health and physical health parity.

BE IT FURTHER RESOLVED that Washtenaw County commits to a review of claims paid and/or reimbursed on an annual basis as our individual experience is not yet known. Such review would occur prior to the annual review process with Blue Cross/Blue Shield to determine if such benefit (rider) would be continued in the next year of benefits.

Autism Coverage: Board Discussion

Yousef Rabhi (D-District 8) thanked the committee and staff for their work. He asked Diane Heidt, the county’s human resources and labor relations director, what percentage of costs the county could be expected to bear for this coverage.

Heidt described the annual payment to Blue Cross Blue Shield – of about $182,000 – as a kind of “permission slip” that would allow the county to offer the coverage. That amount will be pre-funded from the county’s medical fund reserves, and it will then be charged out to each county department based on the number of employees in each department – both general fund employees and non-general fund employees.

Employees that take advantage of the coverage would pay if there’s a deductible on their current insurance plan, or if there’s co-insurance, Heidt explained. The majority of employees pay 10% as co-insurance. She reminded the board that the administration is still negotiating with unions that represent about 300 employees at the sheriff’s office, so the benefits for those employees are different at this point.

Felicia Brabec (D-District 4).

The remainder of the claim would be paid by the county, with the expectation that the county would be reimbursed from the state, based on the age of the child that’s receiving treatment. The annual state reimbursement levels are $50,000 through age 6, $40,000 from ages 7-12, and $30,000 from ages 13-18.

Rabhi noted that Lansing is “a very dynamic place,” and he wondered what the impact would be if the state reimbursement program is eliminated. Heidt replied that currently about $25 million is available in the state reimbursement fund. The committee recommends that the county review the benefits and claims annually, to determine if the coverage would continue to be offered in the following year, Heidt said.

Rabhi noted that once the county offers a benefit, it’s hard to take that benefit away. If for some unforeseen reason there’s suddenly no money available from the state, he said, the county would need to evaluate if it’s a benefit that they can continue to pay for. But it’s hard to see the county removing that benefit, he said. Heidt stressed the importance of annually evaluating the county’s expenses, because at this point it’s unclear how many employees will take advantage of the coverage.

Rabhi supported offering coverage, but wanted to make it clear that it wasn’t a guarantee every year. He was concerned about what might happen if state funding disappeared, and what impact that would have on employees as well as on the county budget. He also noted that a lot of the county’s departments that get funding primarily from non-general fund sources are short on cash. What kind of burden will this coverage place on those departments? Heidt replied that of the $182,000 total, about $102,000 of that will be charged to non-general fund departments, based on the number of employees in each of those departments.

But this year, that $182,000 total would be pro-rated based on when the coverage begins, she noted – so that total amount will likely be only about $75,000 this year, since the coverage won’t be started until well into the year.

Rabhi said he wanted to be clear that the families who access this benefit aren’t a burden – that’s not what he meant. He was simply trying to understand the dollars that the county will be spending.

Conan Smith (D-District 9) asked about the $182,589 payment to Blue Cross Blue Shield, noting that it effectively doubles the cost of providing the coverage. He wondered what BCBS was doing with that money. Heidt replied that BCBS is charging that amount in anticipation of the claims that might be made. Based on whatever the county’s actual experience is with autism claims, that annual payment to BCBS might be less in the following year, she said. Smith asked what the dollars are used for within the insurance company. County administrator Verna McDaniel said that the basic understanding is that the money goes into an insurance pool, but beyond that, it’s not clear how it is allocated.

Smith said the issue of autism coverage didn’t arise because there’s state funding available for reimbursement. It came up because of the desire for mental health parity, and because many commissioners thought the county already provided autism coverage and were surprised when that wasn’t the case. Every other mental health issue is covered. Heidt noted that autism is the only mental health issue that doesn’t have coverage mandated by the state. Smith wondered how it’s possible that this relatively minor coverage is costing the equivalent of $15 per employee per month to add to the county’s health care costs. Heidt said it’s probably because there are so many unknowns.

Ronnie Peterson (D-District 6).

Smith asked how the cost of the autism rider compares to other riders that the county has with BCBS. Heidt said it’s been a long time since the county added a new rider, so she didn’t have those costs broken out. Smith replied that he “loved the Blues” and has been covered by that entity his entire life. But he wanted some sort of explanation about how BCBS calculates the autism rider. Heidt said she’d talk to the county’s BCBS agent to get more information.

LaBarre agreed with Rabhi about the county needing to go into this with “our eyes wide open.” The county can leverage state funds now, but it’s not a given in the future. LaBarre noted that some commissioners wonder why this isn’t being done as part of the budget reaffirmation later this year. It’s not without risk in terms of cost, he said, but the merits of doing it as soon as possible make it worth supporting.

Ronnie Peterson (D-District 6) said he hoped the county never takes back the benefits offered to employees. They should figure out how to finance this benefit, regardless of state aid. It’s about making a commitment to employees who have made previous sacrifices, he said.

Dan Smith (R-District 2) said he was happy to move this item forward for an initial vote. But because of the budgetary impacts it has, and the fact that the county is barely three months into a four-year budget, he hoped that it would come back to the board for final approval not on April 2 but rather as part of the board’s budget reaffirmation process later in the year. At that time, they’d have a better handle on the county’s finances for the year and how the county could fund this benefit, he said.

Felicia Brabec (D-District 4) thanked the staff for working on this issue, saying it was important to “right this wrong.” She agreed that it was important to figure out how to pay for the benefit if the state fund is eliminated, but it’s important to move this forward so that families who need this benefit can access it.

Brabec noted that Heidt is working on how families can get coverage for older children, from ages 18-26, who aren’t eligible for reimbursement from the state.

Outcome: Commissioners unanimously gave initial approval to offering autism coverage.

2013 Year-End Financial Update

County administrator Verna McDaniel introduced the year-end financial update by telling commissioners that “I think you’ll be pleased.” [.pdf of financial update]

Tina Gavalier, the county’s finance analyst, delivered the report. She noted that the audit is still in progress so these are preliminary results. It’s unlikely that anything will change drastically, she added.

From left: Washtenaw County finance director Kelly Belknap and finance analyst Tina Gavalier.

The county had a projected general fund revenue surplus of $2.356 million for the year. Surpluses in several areas contributed to that result, including intergovernmental revenue ($1.3 million, primarily due to payments in state revenue-sharing), fees and service revenue from the county clerk/register of deeds office ($591,000), and the sheriff’s office ($495,000).

On the expenditure side, the county spent $1.564 million less than budgeted. The bulk of that comes from $1.338 million in personnel savings from attrition, position vacancies, and planned reductions. Over $1 million of that was in the sheriff’s office, Gavalier reported, where there are 25 vacancies.

The total year-end surplus for the general fund was $3.92 million. Total revenues were $105.797 million, with total expenses of $101.876 million.

Looking ahead, Gavalier noted that there are several areas to monitor, including child care fund expenditures that are rising due to caseload and placements. [The child care fund is a joint effort between state and county governments to fund programs that serve neglected, abused and delinquent youth in Michigan. Fifty percent of the fund comes from state dollars.]

Other issues to watch that could have a financial impact include fringe benefit projections and trends, personal property tax reform, the possible legislative repeal of Act 88, and state revenue-sharing/county incentive program payments. Regarding Act 88, Gavalier noted that the county has budgeted $973,000 in revenues from an Act 88 levy in 2014, to fund economic development and agricultural-related programs. “So if that’s repealed, there are some decisions that will need to be made,” she said.

Gavalier outlined the next steps for budget-related action that involves the board. The 2014 equalization report will be presented in April, along with a year‐end audit and financial statement. Quarterly budget updates for 2014 will occur in May, August and November. And this fall, the board will make a budget affirmation, with possible amendments to the remaining years of the four-year budget that was adopted in late 2013, for the period from 2014 through 2017.

McDaniel told the board that the county was recently notified that it’s receiving a national Alliance for Innovation award for its four-year budget. [Former Washtenaw County administrator Bob Guenzel previously served on the board of that group, which is based in Phoenix.]

2013 Year-End Financial Update: Board Discussion

Conan Smith (D-District 9) asked Tina Gavalier for more details about the intergovernmental revenue line item. She replied that the surplus of about $1.3 million comes from combining federal, state and local government revenues going into the general fund. Most of that came from a $1.495 million surplus in state revenue-sharing. The county received $9,602,028 in state-revenue sharing in 2013, compared to the budgeted amount of $7,665,098. The $1.495 million surplus in state-revenue sharing was offset by a $238,046 shortfall in local government revenue.

The $1.495 million in state revenue-sharing reflects the first two payments for 2014 that were actually made in October and December of 2013. There will be six payments in total for 2014, including those two, she said, but the payments that were made in 2013 had to be recorded in that year. She described it as a “one-time windfall.”

Kelly Belknap, the county’s finance director, pointed out that the state and county are on different fiscal years. The state’s fiscal year runs from Oct. 1 through Sept. 30. The county uses a calendar year as its fiscal year. That difference resulted in the timing of the payments, she explained, and the way in which they are accounted for in the county’s budget.

Gavalier also noted that the state Dept. of Treasury issued a guidance letter (No. 2013-1) stating that revenue-sharing is no longer based on statewide sales tax revenue, but instead will be a state appropriation.

C. Smith asked that the upcoming steps in the budget schedule reflect a supplemental budget update in the May-June timeframe, to reflect the updated revenue projections that will be coming in the equalization report. The board would be looking to adjust the budget at that time, based on any revenue shortfall or surplus. When Gavalier replied that it would be part of the budget update in August, Smith stressed that it should happen earlier – in May or June.

Outcome: This was not a voting item.

Delinquent Tax Borrowing

In an annual action to help the cash flow of local governments in Washtenaw County, the county board was asked to give initial authorization to county treasurer Catherine McClary to borrow up to $30 million against the amount of delinquent property taxes in all of the county’s 80 taxing jurisdictions. [.pdf of delinquent tax resolution]

Washtenaw County treasurer Catherine McClary.

The estimated amount of delinquent taxes is lower than in recent years, possibly reflecting a recovering economy. Last year, the board authorized borrowing up to $40 million, and the treasurer’s office ended up actually borrowing much less.

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.

Under the state’s General Property Tax Act, the county treasurer 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.

Dan Smith (R-District 2) thanked McClary for making this happen, saying this was very helpful to the townships and other municipalities that can get all their taxes upfront and then settle up after properties are foreclosed.

McClary noted that foreclosures are going down, “which is very, very good news.” It also appears that there will be a slight drop in delinquent taxes, she said. Delinquent taxes are a leading economic indicator for both mortgage foreclosures and tax foreclosures, so that’s also good news, McClary said. There’s also been a definitive drop in forfeitures, which is the step immediately preceding a foreclosure.

Last year, the county had authorized the treasurer’s office to borrow up to $40 million, but there ended up being only $21 million in delinquent taxes, McClary said. And only $16 million was borrowed, because there was a small reserve in the county’s tax revolving fund – about $4 million. So a small amount of self-funding is possible, she said, which saves the county money. Approximately 4% of what the treasurer’s office borrows represents either interest or fees. “So any time we can reduce the amount of delinquent tax borrowing, we’re doing a favor for the taxpayers,” McClary said.

She noted that the $4 million in the tax revolving fund is the result of a county board decision. Commissioners could decide to put that money into a capital projects fund or the county’s general fund, she said, but they’ve chosen to keep it as reserves. That helps the county when credit rating agencies make their evaluations, she said. It would help more if there were more money in those reserves, she added.

McClary noted that the county board recently approved a new way to pay off debt incurred from bonding, typically for public works projects in local municipalities. [At its Oct. 2, 2013 meeting, the board authorized the change to allow local units of government to repay bonds early via the county’s delinquent tax revolving fund. The intent is to reduce interest rate payments while posing no financial risk to the county. At the same meeting, the board approved restructuring debt held by Bridgewater Township, which owed $585,000 on $1.095 million in bonds issued in 2004 to fund a sewer system.]

The treasurer’s office agreed to loan Bridgewater Township money to pay off the bonds, with the township repaying the treasurer’s office at a lower interest rate than it was paying for the bond debt, which was averaging 4.1%. The interest rate that is being used to repay the treasurer’s office is slightly above the average weighted yield that the county was getting on its portfolio, McClary reported, “so it’s a very good deal for the county coffers as well.”

McClary also told the board that she’s been working with Evan Pratt, the county’s water resources commissioner. That office has a lot of small bond issues for drain projects, in the range of $200,000 to $400,000. Depending on the size of the issue, they might be spending as much as half of any issue on fees and interest. If the $4 million in the delinquent tax revolving fund could be raised, she said, the county would gain more stability from the credit rating agencies and would be in a position to do more internal loans. She said she hasn’t yet made a formal proposal about that, but that’s where she’s headed.

Outcome: Commissioners gave initial approval to the authorization, with a final vote expected on April 2.

Treasurer’s Report

County treasurer Catherine McClary gave a report on investments in 2013. [.pdf of 2013 treasurer's report] [.pdf of 2012 treasurer's report]

Investment earnings were $637,866 for the year. That compares with $755,681 in 2012. Fees and interest on delinquent taxes totaled $3.72 million in 2013, compared to $5.046 million in 2012. Fees for dog licenses were $62,718 last year, up from $59,748 in 2012. And income from tax searches was $23,052 compared to $31,760 in 2012.

Chart showing three-year historical comparison of Washtenaw County investments.

Total cash and investments reported as of December 2013 was $145.226 million, down from $156.081 million at the end of 2012. The 2012 figure included $4.67 million in funds related to the county accommodations tax, which at that time was administered by the treasurer’s office. In October 2012, the board approved an ordinance change that shifted control over administering and enforcing Washtenaw County’s accommodation tax from the county treasurer to the county finance director.

McClary noted that the average weighted yield of the county’s investments was 0.476% in 2013, compared to the three-month Treasury benchmark of 0.07%.

McClary highlighted three other items during her remarks to the board. The social workers in her office – who work with residents with delinquent taxes – have been certified by the state Dept. of Human Services to do intakes for residents in a range of programs, including Medicaid and food stamps. Her office is also participating in the Step Forward Michigan program, which uses federal mortgage prevention funds to also prevent tax foreclosure. It’s the only state in the country to do that, she said.

Finally, McClary reported that property assessments are increasing. She told commissioners that she had prepared a brochure for residents about how to appeal their assessments.

Resolution of Appreciation for Pat Kelly

The March 19 agenda included a resolution of appreciation for former Dexter Township supervisor Pat Kelly. [.pdf of resolution]

Pat Kelly, former Dexter Township supervisor.

Board chair Yousef Rabhi (D-District8) began by wishing Kelly a happy birthday.

Rabhi noted that Kelly had stepped down from her role as Dexter Township supervisor, after serving in that role for 12 years. He said he had served on many boards and committees with her, and knows that she’s someone who cares about all residents of Washtenaw County. He read aloud the resolution, which highlighted Kelly’s work on the Washtenaw Area Transportation Study, the Washtenaw County Transit Master Plan, Washtenaw County Police Services Steering Committee, and several other public entities.

The resolution also noted that Kelly “led Dexter Township’s response to a devastating tornado in 2012 and worked tirelessly and diligently to establish communication channels with affected residents, safely coordinate volunteer efforts to aid in the massive clean-up, and, with significant and important assistance from the County and Road Commission, supported and led township efforts to remove debris and fallen trees from private property at little or no cost to residents…”

Kelly was visibly emotional when she responded, saying she was touched by the recognition. Almost two years ago, she said, she’d stood at the same podium and thanked commissioners for helping her community after the 2012 tornado. “It’s been a good partnership,” she said.

Conan Smith (D-District 9) praised Kelly’s negotiating skills in representing her township as well as the entire county. When he first was elected, Smith said, the tension between the county and townships over police service contracts, provided through the sheriff’s office, seemed insurmountable. “It seemed like we were going to be at war for a generation,” he said. At one of his most frustrating moments during his first term, Smith recalled, Kelly called him and “very gently explained the interests that your colleagues in the townships had and concerns in a way that just opened my eyes to the possibility of a real partnership.” The county could not have reached a resolution without Kelly’s leadership on that issue, he said. “You’ve been a calming force in huge turmoil, and a passionate deliverer of messages without creating conflict in that process.”

Smith said he knew the county would find some way to keep her deeply engaged with policy work and community leadership.

Outcome: The board unanimously passed a resolution of appreciation for Pat Kelly.

Report from Lansing Lobbyist

Lobbyist Kirk Profit and his colleague Gary Owen at Lansing-based Governmental Consultant Services Inc. gave a presentation to the board about action in the state government that might impact Washtenaw County. GCSI is the lobbyist for the county and several other local governments, including the city of Ann Arbor.

The state budget is actually in good shape, Profit said, with about $52 billion in expenditures and a surplus of about $970 million. He commended the state legislators who represent districts in Washtenaw County, saying that they represent the local interests very well, even though they’re in the minority, as Democrats. He said it was great to have the state Senate majority leader representing part of Washtenaw County as well. [Sen. Randy Richardville, a Republican, represents District 17, which includes six southern and central townships in the county, and the city of Saline.]

Kirk Profit, a paid state lobbyist for Washtenaw County, and commissioner Felicia Brabec (D-District 4).

Revenue sharing is moving in the right direction, Profit said. This year the county will get about $5.5 million, and he expected the county would get about $6.9 million in 2015. The state doesn’t have a good track record in terms of the county’s ability to count on state revenue-sharing, he said. It’s good to understand that going forward.

He noted that the personal property tax referendum will be on the ballot in August of 2014. [The tax is being phased out starting in 2014 through 2022. As part of that change, a statewide voter referendum is slated for Aug. 5, 2014 to ask voters to authorize replacement funds from other state revenue sources.]

Eliminating the PPT removes about $576 million statewide, which primarily are revenues that fund local municipalities. The voter referendum would authorize a use tax to be collected by a new Michigan Metropolitan Areas Metropolitan Authority, which would distribute the funding by statute.

Profit noted that TIF (tax increment finance) capture is “hot” in Lansing right now. State Rep. Eileen Kowall has drafted legislation that addresses several issues related to TIF, including the ability to opt out, resetting the base for TIF capture, and sunset clauses. “It’s going to receive a lot of attention and a lot of dialogue,” Profit said, but it wasn’t clear whether it will pass.

While noting that the state budget is in great shape, Profit said there are also some areas that have holes, including health care funding, education and roads. Some legislators would prefer to give the entire surplus back to taxpayers as refunds, he noted. Profit said he wasn’t sure how these issues will be resolved, but the legislature will be addressing these matters over the next 60-90 days.

The legislature recently approved about $215 million in supplemental funding for roads, which will bring about $1 million to Washtenaw County, Profit said. The city of Ann Arbor will get about $450,000. Other cities and villages will get much less, he said. Profit praised Gov. Rick Snyder, saying that Snyder is “right there on roads” and had demanded that the legislature produce funding for roads.

The southeast Michigan regional transit authority (RTA), which includes Washtenaw County, received close to $2 million for operating expenses to fund it until an anticipated millage vote in 2016, Profit said.

Profit told the board that Act 88 is under some attack, with legislation introduced that would repeal it. [The county’s position is that it is authorized to collect up to 0.5 mills under Act 88 without seeking voter approval. That’s because the state legislation that enables the county to levy this type of tax was enacted in 1913, which predates the state’s Headlee Amendment. The county currently levies 0.07 mills under Act 88.]

Profit said that GCSI’s Gary Owen was working aggressively to make sure legislators understand the significance of Act 88 funding for Washtenaw County. Profit said the target of the repeal legislation is Gratiot County.

The state’s supplemental budget included $750,000 for indigent defense, and Profit credited Washtenaw County public defender Lloyd Powell for successfully advocating for that funding.

Collective bargaining continues to draw a lot of attention in Lansing, Profit said. He also noted that GCSI is working with judge Donald Shelton and Dan Dwyer, court administrator of the Washtenaw Trial Court, on implementing e-filing statewide.

Breastfeeding in public is another issue that GCSI is following, Profit said. He noted that state Sen. Rebekah Warren introduced legislation that was passed in the Senate to guarantee a woman’s right to breastfeed in public places.

Profit also mentioned interest at the state level regarding the Freedom of Information Act and Open Meetings Act. Pending legislation “would dramatically limit your ability recoup costs that you might incur for FOIA responses, and also perhaps to dramatically limit your ability to have certain protected conversations from open meetings requirements.” Profit said GCSI would work closely with corporation counsel Curtis Hedger on that.

Corporation counsel Curtis Hedger and Felicia Brabec (D-District 4).

Profit highlighted an increase in state arts funding from $2 million to $10 million, which translates into about $590,000 coming to Washtenaw County for a variety of arts organizations.

Gary Owen of GCSI said he’d been working with Evan Pratt, the county’s water resources commissioner, regarding action at the Michigan Dept. of Environmental Quality (MDEQ) that will affect the Pall-Gelman 1,4 dioxane cleanup in Washtenaw County. The MDEQ is updating its cleanup standards, and Mike Gebhard has been participating in that process and is on the MDEQ’s toxicity committee. Gebhard is a former environmental analyst/hydrogeologist with Washtenaw County who now works for the county’s information technology department.

The MDEQ will make a recommendation to the state’s Office of Regulatory Reinvention in July, which will include the new standards, Owen said, but those recommendations will be known before then. “It will most likely be a drastic difference than what it is today, but the process will determine that,” he said.

Regarding the Michigan Dept. of Natural Resources trust fund, Owen cited the county’s success in getting grants in the past few years. He credited Bob Tetens, director of the Washtenaw County parks & recreation commission, with that success, which Owen said is probably unparalleled across the state. Owen cited several grants, including $300,000 for the Rutherford Pool in Ypsilanti, $300,000 for the Ann Arbor skatepark, and over $1 million for the acquisition of 54 acres near Domino’s Farms.

Regarding the possible repeal of Act 88, Owen said GCSI is working to make sure that Washtenaw County’s interests are addressed.

Report from Lansing Lobbyist: Board Discussion

Dan Smith (R-District 2) said the comments regarding Act 88 are “misplaced.” It’s not about what the money is spent on in Washtenaw County, he said. “It’s about how the money is collected, and what the law says that money can be spent on.” In his opinion, Smith said, the Washtenaw County board hasn’t done its proper due diligence, “despite my repeated requests.”

Regarding roads, D. Smith noted that legislation has been introduced to repeal the sunset clause on the ability of a county board of commissioners to absorb the duties and responsibilities of a road commission. He asked for a prognosis of that bill. Kirk Profit replied that the outcome is hard to read. GCSI will continue to watch it, but Profit didn’t think legislators had made up their mind yet.

Conan Smith (D-District 9).

D. Smith noted that a subcommittee of the board had recently finished a process regarding what the county would do, but the recommendation hadn’t yet been brought forward to the full board. A working session on that is scheduled for April 17. But Smith’s take on the bill is that it would provide the board with a lot of tools, while forcing the board to dramatically alter things right now. It would be productive to have a longer time to discuss how to best manage this critical transportation infrastructure, he said, noting that it’s not something that can quickly be decided. People are very resistant to change, Smith said, and need more time to work on it. He hoped the legislature would repeal the sunset clause.

Conan Smith (D-District 9) agreed with Dan Smith on the road commission issue. Removing the sunset wouldn’t mean that the county would get rid of the road commission, he said. Statewide, not many counties have taken advantage of the current ability to do that. But he hoped that option would be made available for a longer period.

Regarding Act 88, C. Smith said he had a different perspective from Dan Smith. But he thought they might agree on the fact that Act 88 is just one response that the county has to a “broken municipal finance system.” The state took millions of dollars of state revenue-sharing away from the county over the past several years. If that hadn’t happened, he said, perhaps the county wouldn’t be scraping to find other revenue sources.

C. Smith said he understood why some people want to repeal Act 88, but they should be beating the bigger drum of fixing the system. Lots of cities are on the cusp of financial insolvency, he noted, so he’d advocate not to mess with Act 88 until this bigger problem is fixed.

Yousef Rabhi (D-District 8) echoed C. Smith’s sentiments on Act 88. The county needs tools to address the needs of citizens, Rabhi said, “and right now the state is just tying our hands.” Personal property tax repeal is another example, he said. Rabhi said that Act 88 funding works and benefits the community, and he didn’t think legislators understood that.

Urban County Plan Public Hearing

The March 19 meeting included a public hearing to give input for the Washtenaw Urban County 2014-15 action plan. The hearing was set to solicit feedback about proposed projects and programs that the county intends to implement with federal funding – through community development block grant (CDBG), HOME and emergency shelter grant programs – from July 1, 2014 through June 30, 2015. [.pdf of action plan]

Computer screen: Notes being taken by Brett Lenart of the county’s office of community & economic development during a public hearing on the Urban County action plan.

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

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

One person – Thomas Partridge – spoke during the public hearing. He said the Urban County organization is isolated, like many county organizations. Meetings are held at locations outside of Ann Arbor and aren’t televised on the Community Television Network, he said. The body should be very prominent, Partridge said, because it gets funding for affordable housing. But that funding is under attack, he noted, and more financing from the private sector is needed. Homelessness can’t be eliminated without more attention to this issue.

Thompson Block Brownfield Public Hearing

The board agenda included a resolution to set a public hearing for input on the brownfield development plan of the Thompson Block redevelopment in Ypsilanti. The street addresses for the block are 400-408 N. River St. and 107 E. Cross St. The hearing will be held at the county boardroom in downtown Ann Arbor, 220 N. Main, during the April 2 meeting, which begins at 6:30 p.m. [.pdf of staff memo]

Outcome: Commissioners voted to set the public hearing, over dissent from Dan Smith (R-District 2).

Communications & Commentary

During the March 19 meeting there were multiple opportunities for communications from the administration and commissioners, as well as public commentary. In addition to issues reported earlier in this article, here are some other highlights.

Communications & Commentary: Regional Transit Authority

Jim Casha spoke about the southeast Michigan regional transit authority (RTA). He lives in Canada, and noted that Ann Arbor reminds him of Canada – “except for the roads.”

He’d attended the recent Michigan senate transportation committee hearings in Lansing, and listened to the RTA board chair, Paul Hillegonds, ask for more money for that organization. He also attended the transportation appropriations committee meeting and heard Amtrak’s presentation about service between Chicago and Detroit, through Ann Arbor.

From left: Jim Casha and county commissioner Ronnie Peterson.

Casha said he’s still confused about why the RTA board isn’t making a fight for the 163-acre state fairgrounds. He’d just attended the RTA board meeting, and he thought that RTA board members are confused as well. One of the big supporters of the state legislation that created the RTA, state Sen. John Pappageorge, is a “military guy,” Casha said. “He understands that it’s always cheaper to hold what you have than to retake what you’ve lost – and there’s no reason to give up the fairgrounds.” Even if the fairgrounds turns out not to be a great property to own, though Casha said he thought it was, there’s no reason to give it up now. “We should retain it and evaluate it,” he said.

The situation is rather perilous, Casha said. He reported that Hillegonds had been surprised by the lack of knowledge that state legislators had regarding the RTA. Casha found that the same thing was true with the state fairgrounds. They pass legislation in Lansing, but then don’t keep up with its impact, he said.

Casha asked commissioners to talk with the state legislators and with Washtenaw County’s representatives on the RTA board to keep people informed about what’s happening. [The two RTA representatives from Washtenaw County, who were appointed by the county board, are Liz Gerber and Alma Wheeler Smith, the mother of county commissioner Conan Smith.] Legislators are making some serious mistakes that could seriously impact the ability to have a regional transportation system, Casha said.

Later in the meeting Casha spoke again. At the recent transportation appropriations committee meeting, the RTA presented documentation showing that state legislation allows for the RTA to generate revenue from the sale, exchange, mortgage, lease or other disposition of property acquired by the authority, he said. So his question was: Why doesn’t the RTA take advantage of it? One reason is that the RTA has been misled by people in the governor’s office, Casha contended. There was misinformation, he said, and the state fairgrounds was transferred to private individuals. “It’s definitely not a done deal yet,” Casha said. There are ways out of any legal contract, he added.

Casha noted that the Michigan Land Bank has a new director, “and maybe she has a different opinion of what the land bank’s done so far with this land.” The state owes it to the people in the four-county RTA district to look after their interests in this matter.

Communications & Commentary: Roads in Manchester

Allison Tucker of Manchester, who had spoken to the board at its Feb. 19, 2014 meeting about the GED (general education diploma), began by reporting that the Washtenaw Community College’s adult transitions program recently secured $3,000 in funding. It reinstated her faith that one person can make a difference. But she was there that night to talk about the condition of roads in Manchester. She had hoped to address commissioner Alicia Ping (R-District 3), whose district includes Manchester, but noted that Ping was absent. There are a lot of potholes, and many of them are deep, Tucker said. The situation could kill someone, she said. For smaller communities, it’s difficult to have funding for plowing and salting the roads, she noted. Tucker hoped that the county could help, so that someone like her who travels to class wouldn’t face that problem.

Communications & Commentary: Thomas Partridge

Thomas Partridge addressed the board during both opportunities for public commentary. He urged commissioners to come up with a fundamentally sustainable agenda for county government, with top priorities of eliminating homelessness, funding affordable housing and countywide public transportation, and supporting human rights. He said Washtenaw County has a programmed way of doing business that leaves out a substantial number of residents in making decisions about these issues.

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

Absent: Alicia Ping

Next regular board meeting: Wednesday, April 2, 2014 at 6:30 p.m. at the county administration building, 220 N. Main St. in Ann Arbor. The ways & means committee meets first, followed immediately by the regular board meeting. [Check Chronicle event listings to confirm date.] (Though the agenda states that the regular board meeting begins at 6:45 p.m., it usually starts much later – times vary depending on what’s on the agenda.) Public commentary is held at the beginning of each meeting, and no advance sign-up is required.

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