BAD AXE - The Huron County Board of Commissioners passed a resolution Tuesday to send a letter to Huron Behavioral Health that threatens to evict the organization if it does not pay rent.

The commissioners don't want to leave the organization homeless, but the state might force their hand.

"They're providing a valuable service, and if there is a way we can work this out, we will," Commissioner John Horny said.

Commissioner Ron Wruble, finance committee chair, said the issue is bureaucrats at the Michigan Department of Community Heath are attempting to take away the funding that allows Huron Behavioral Health to pay rent for the county-owned building.

The problem has been ongoing. The MDCH, in 2008, conducted a retrospective audit and claimed rent Huron Behavioral Health paid to the county was disallowed because Huron Behavioral Health and the county were "less than arms-length," so under federal law, rent could not be paid. This decision was based on the fact that the board of directors of Huron Behavioral Health is appointed by the commissioners, and the state contended that authority could compel the board of directors to rent from the county. Also, a certain number of commissioners could be appointed to sit on the Huron Behavioral Health Board of Directors, but that number would not constitute a quorum, Wruble said.

Therefore, the state demanded reimbursement for all rent paid to the county from 1999 through 2006.

The county appealed that decision in Huron County Circuit Court, which held that the county and Huron Behavioral Health are separate entities, and therefore can legally enter into a landlordtenant contract.

The state appealed that decision, and the Court of Appeals found in favor of Huron Behavioral Health.

Rather than taking the case to the Michigan Supreme Court, MDCH officials decided to attempt to withhold funding from Huron Behavioral Health and is now seeking reimbursement for rent paid over the past three years.

"The department continues a very strong stand and they're not wavering at all. They're saying these kind of rental arrangements with the county are not appropriate," Wruble said.

Commissioner Clark Elftman added: "They are changing the law to what they want, and they've already lost in two courts. ... We cannot back down."

Huron County Corporate Council Steve Allen said it's the commissioners’ duty to protect land owned by Huron County residents.

"We feel (the state's) current action is backing us into a corner where we might have to take legal action to evict Huron Behavioral Health from the building," Allen said. "If they're put into a position where they can't pay rent, then we're going to have to put them on notice that we will have to take legal action."

Allen said the bottom line is the state is saying the county has a duty to deed the building over the Huron Behavioral Health, and "legally, that is not so."

"It's a valuable piece of property that belongs to the citizens of Huron County, and we should treat it as such," he said.

Suzanne Prich, executive director of Huron Behavioral Health, said her board understands that if Huron Behavioral Health cannot pay rent, the county must take legal action.

In a related issue, the commissioners passed a resolution directing the Huron County Treasurer's Office to treat any additional requests from the MDCH for records pertaining to costs associated with the building leased by Huron Behavioral Health as a Freedom of Information Request and to bill MDCH accordingly.

When MDCH audited the county's financial records related to rent paid by Huron Behavioral Health in 2008, two county employees spent about two weeks gathering the information requested. The Freedom of Information Act allows the county to bill for that time and for the cost of duplicating the records.

In other business, the commissioners:

• Passed a motion to authorize the CIS Department to proceed with repair of the county's security system at a cost not to exceed $2,500.

• Passed a resolution to require vendors doing business with the county to carry commercial general liability insurance not less than $1 million per occurrence, $2 million general aggregate, $1 million products and completed operations and $5,000 per person medical expenses. In addition, the resolution states vendors must carry workers compensation insurance as required by the state and commercial auto insurance of $1 million per occurrence. Also, Huron County must be named as an additional insured on the contractor's liability insurance.

• Discussed the possible construction of a new ice arena. That issue was on the agenda for Tuesday's meeting, but was moved to the next meeting, 9 a.m. Feb. 21.

• Paid bills in the amount of $1,945,576.

• Passed a motion authorizing the county clerk to advertise for vacancies on the following boards: Mental Health Services Board (four member, three-year term), Health Board (one member, five-year term), Zoning Board of Appeals (two members, three-year term) and Planning Commission (three members, three-year term).