Merreen E. Kelly, the highly respected former Baltimore County administrative officer, was appointed yesterday as a special assistant to oversee labor negotiations for County Executive James T. Smith Jr.

The position takes on added importance this year because of a charter amendment approved by voters last month giving the police and firefighters unions the right to binding arbitration if they cannot come an agreement with the county.

Kelly, 67, who was the Baltimore County Public Schools' chief negotiator for part of his 34 years in the system, said he is hopeful that arbitration won't be necessary. "My goal whenever I was negotiating was to try to get to yes, rather than dig my heels in," Kelly said.

He was administrative officer from 1991 to 1997, serving during County Executive Roger B. Hayden's term and part of C.A. Dutch Ruppersberger's first term as executive.

County labor leaders took the appointment as a good sign. Municipal unions had various grumbles with Ruppersberger, Smith's predecessor, but they said Kelly has a sterling reputation as a fair negotiator.

"Merreen Kelly has certainly a significant history with dealing with both the public needs and the private sector needs," said Cole B. Weston, president of the Baltimore County Lodge of the Fraternal Order of Police.

Thomas B. Kelleher, senior council representative of the American Federation of State, County and Municipal Employees Council 67, which represents county office workers, said he has worked with Kelly for 20 years and can't say enough good about him.

"Everybody likes and respects him, there's just no two ways about it," Kelleher said. "You never hear anything wrong. He's always top-shelf and a real gentleman."