Archive for December, 2012

The New York Times profiled Sidney Gilman, the University of Michigan Medical School professor who’s at the heart of a massive insider trading scandal involving SAC Capital. ”Colleagues now say Dr. Gilman’s story is a reminder of the corrupting influence of money. The University of Michigan, where he was a professor for decades, has erased any trace of him on its Web sites, and is now reviewing its consulting policy for employees, a spokesman said. The case also turns the spotlight back onto the finance world’s expert networks, which match sources in academia and at publicly traded companies — like Dr. Gilman — with traders at hedge funds and financial firms.” Gilman is cooperating with authorities to avoid being charged, according … [Full Story]

This report begins with some sound bites from a recent Ann Arbor city council planning session.

“That long-term commitment seems to be something that appears in the Midwest.” “There is nothing easy about democracy.” “A couple years back, my brain exploded.” “I sold Girl Scout cookies.” “The UM will never leave town, never shutter the factory…” “I also believe that the customer is usually right.” “We really need to listen harder to people who disagree with us.” “I had ancestors who fought in the Revolutionary War.” “I believe that we rarely hear from those who think that we are on the right track and making the right decisions.” “I am the son of hippies.” “I look at Ann Arbor right now that is a more exciting place to be than it ever was before.”

Each of those snippets is taken from a different Ann Arbor city councilmember’s response to a homework assignment, given by facilitator Julia Novak a few days before the council planning session took place on Dec. 10, 2012. Councilmembers had been alerted by Novak to prepare a 3-5 minute talk, modeled on the “This I Believe” 1950s radio program hosted by Edward R. Murrow.

Councilmembers were asked to speak to the issue of what they believed about the future of the city – focusing on the statement of a core belief, sharing a story that illustrates how their beliefs were shaped, and emphasizing what they believe in, as opposed to things they don’t believe in. At the planning session, Novak stressed that the idea was to share “not what you’re against, not what you ran to stop, but what you believe.”

Councilmembers took different approaches to the assignment – some preparing remarks in advance and reading them aloud, others speaking from notes, while some spoke off the cuff.

In this report, councilmember remarks are presented after an introduction that summarizes some of their similarities and tensions.  [Full Story]

Washtenaw County parks & recreation commission meeting (Dec. 11, 2012): At their December meeting, commissioners took action on properties for the county’s natural areas preservation program. They gave final approval to spend $500,000 for 65 acres on Berry Road in Superior Township, in an area that’s known as the Superior Greenway.

In a separate vote, WCPARC authorized staff to undertake due diligence toward a sales offer on 473 acres on the border of Jackson and Washtenaw counties. This deal – for the Trolz property in Manchester Township – is a project that could result in a new state recreation area that includes the southwest corner of Washtenaw County. [See Chronicle coverage: "County Pursues Major New Parks & Rec Deal"]

Commissioners also bid adieu to Jimmie Maggard, who has served on WCPARC for over 30 years, and to outgoing county commissioner Barbara Bergman. Janis Bobrin, who has served on WCPARC for more than two decades by right of her position as Washtenaw County water resources commissioner, did not run for re-election but will continue on WCPARC as a public member. [She was appointed by the county board at their Dec. 5 meeting.] Evan Pratt, who was elected water resources commissioner on Nov. 6, will join WCPARC in January – he attended the Dec. 11 meeting.

In the hour before the meeting started, commissioners and WCPARC staff held their annual holiday party. The highlight was a first viewing of a 30-minute video history of WCPARC, created by county staff over the past several months. The video will be available to the public soon, according to WCPARC deputy director Coy Vaughn. It will run on monitors at the Meri Lou Murray Recreation Center, on cable television, and in smaller segments on the WCPARC website.

Also at the Dec. 11 meeting, the commission approved spending $33,375 to buy grooming equipment for cross-country skiing trails at Independence Lake and Rolling Hills parks. Staff provided reports on finances, highlighted by expenditures to maintain and improve Rolling Hills Water Park and Independence Lake Park; reported on recent projects, including the proposed East County Recreation Center in Ypsilanti; and reviewed WCPARC’s accomplishments in 2012.

An item not on the Dec. 11 agenda will likely receive attention in early 2013: An application from the city of Ann Arbor for up to $300,000 in Connecting Communities funds. If awarded, the grant would be used as matching funds for additional state support to improve the city-owned 721 N. Main property. Applications for WCPARC’s Connecting Communities must be received by year’s end, and the Ann Arbor city council is expected to authorize the application at its Dec. 17 meeting. [See Chronicle coverage: "Grant Applications Recommended for 721 N. Main."] [Full Story]

The Detroit Free Press reports that athletic director David Brandon is the highest-paid University of Michigan employee, with a base salary of $800,000, up 33% from last year. UM has released its annual salary report, which also shows Ora Pescovitz, CEO of the UM Health System, earning $753,805 and Doug Strong, CEO of UM’s Hospitals and Health Centers, making $625,770. President Mary Sue Coleman has a base salary of $603,357. [Source]

Washtenaw County issued a press release on Friday, Dec. 14 announcing the intent of Conan Smith, chair of the county board of commissioners, to appoint two representatives to a new 10-member regional transit authority (RTA) board. State legislation creating the RTA was passed earlier this month in a flurry of activity during the lame duck session, but has not yet been signed into law by Gov. Rick Snyder. That action is anticipated to happen next week.

The authority would cover the city of Detroit and counties of Wayne, Macomb, Oakland and Washtenaw. The governing board would consist of two appointees from each county, one appointee from Detroit, and one non-voting member appointed by the governor. The move to engage in an … [Full Story]

Ann Arbor Downtown Development Authority board meeting (Dec. 5, 2012): The board had no voting items for its final meeting of the calendar year, but received several reports. Among the reports was a draft recommendation to be presented to the city council early next year about the use of five city-owned pieces of downtown land, which are currently used for parking – the Connecting William Street project. That presentation, discussion by the board, and public commentary on the topic will be covered in future Chronicle reporting.

The DDA manages the city’s public parking system, and a report presented to the board for October 2012 – the most recent month for which data is available – showed $1.675 million in revenue, which amounts to an increase in revenue compared to October 2011 of about 15.5%. The increase is at least partly a function of rate increases, changes to the billing method, and an increase in the parking system inventory. The recently completed Library Lane underground parking garage offers more than 700 spaces, which were not available a year ago. The use of the parking system as measured by hourly patrons showed only a 1.8% increase.

At the meeting, DDA board member Roger Hewitt announced that future monthly reports would begin including more detailed information on the length of time patrons park in the system. Currently the board uses revenue levels as a kind of imperfect proxy for system usage.

Also related to the parking system, the stats for November will include the fact that the parking system maxed out – with all spaces in the entire system filled – on the night of the Midnight Madness holiday shopping promotion. That’s an event sponsored by the Main Street Area Association (MSAA), which took place on Nov. 30. Maura Thomson, executive director of the MSAA, relayed her appreciation to the board during public commentary for the DDA’s financial support of the holiday lights strung on trees downtown.

Again related to parking were brief remarks made to the board by local attorney Scott Munzel, who spoke on behalf of the developer of the proposed new residential project at 624 Church St. The DDA board had given its support for around 40 parking spaces to be provided for that 14-story, 81-unit apartment building through the city’s contribution-in-lieu program. Munzel alerted the board that the project was anticipated to be on the city planning commission’s Jan. 15, 2013 agenda. Munzel was hoping the location of the parking spaces in the public parking system could be determined by then.

Ray Detter, speaking for the downtown citizens advisory council, updated the board on another major development – 413 E. Huron. The northeast corner of Huron and Division is the location of a planned residential and retail development with 213 apartments – which does not need any variances in the D1 zoning district. Detter reported the developer’s intention to proceed with the development even through it was strongly criticized by the city’s design review board.

Addressing the board on a non-parking topic was Jim Balmer, president of Dawn Farm, a nonprofit offering both residential and out-patient services supporting recovery for alcoholics and drug addicts. Dawn Farm’s Chapin Street facility has been supported in the past by the DDA, and Balmer addressed the board to thank them for that support and to highlight a future funding request – $150,000 to pay down debt. The grant is intended to help Dawn Farm achieve a target of 200 beds for its residential facilities, up from the current 159 beds.

The board received news that the preliminary draft audit report indicates that the fiscal year 2012, which ended June 30, 2012, will be unqualified – that is, “clean.” The unrestricted net assets held by the DDA at the end of the fiscal year totaled about $8.65 million. [Full Story]

This week, the University of Michigan announced an increase in the cost of “seat licenses” for football season ticket holders.

Before I dive into what all this means, let me explain what a “seat license” is, because, if you’re a normal person, it won’t make much sense.

A “seat license” is a fee that teams make their fans pay just to reserve the right to buy the actual tickets. They call it a donation – which is a stretch, since every fan apparently decided to donate exactly the same amount, or lose our tickets. But that allows us to claim it as a gift to a state university, and a tax deduction.

It’s hard to call that honest. Thanks to the latest hike, it’s hard to call it cheap, either.

In fairness, Michigan was the last of the top 20 programs, ranked by attendance, to adopt a seat license program, in 2005 – even though Michigan always finishes first in attendance. And the seat licenses started gradually: $250 for the best seats the first year, then $500 the second. They were nice enough to spare the folks in the endzone.

But this week Michigan pushed the seat license for the top ticket up to $600 each, and even the folks in the endzone will have to pay $150 per ticket, just for the right to buy them. In the past decade, the total cost of my two tickets on the ten-yard line has more than tripled, to over $1,700. But my seats are no better, and the schedule keeps getting worse.

It makes you wonder how we got here. [Full Story]

Two outgoing University of Michigan regents – Martin Taylor and Libby Maynard – were recognized at the board’s Dec. 13, 2012 meeting, the last one of their 16-year tenure. The two Democrats did not seek reelection this year. They will be replaced by Democrats Mark Bernstein of Ann Arbor and Shauna Ryder Diggs of Detroit, who is Taylor’s daughter-in-law. Bernstein and Diggs were the top two vote-getters in a statewide election for the regents’ seats on Nov. 6.

Regent Julia Darlow read a resolution of appreciation for Maynard, a Flint-area resident and alumna of the School of Social Work. The resolution cited Maynard’s “strong support for the University’s affirmative action efforts, women’s and gender equity issues, and initiatives to increase the … [Full Story]

Three key reappointments were highlighted during the Dec. 13, 2012 meeting of the University of Michigan board of regents. They were among several personnel actions approved by regents in one vote. [.pdf of all personnel actions]

Jerry May, UM’s vice president for development, was reappointed to a third five-year term from Feb. 1, 2013 through Jan. 31, 2018. At the Dec. 13 meeting, president Mary Sue Coleman praised May’s work, saying he has met or exceeded expectations for every single task. In her letter of support for his reappointment, Coleman cited his leadership of the most successful capital campaign in UM’s history. Called the “Michigan Difference,” the campaign surpassed $3 billion in donations. UM is gearing up for another major … [Full Story]

At the Dec. 13, 2012 meeting of the University of Michigan board of regents, provost Phil Hanlon briefed regents on the university’s annual letter to the state budget director, outlining the fiscal 2014 budget needs of the Ann Arbor campus. [link to .pdf of budget development letter] The 10-page letter, officially from UM president Mary Sue Coleman, makes the case that UM needs state support, and provides details of UM’s cost containment efforts, affordability, and impact on the regional economy.

The university also responds to the state’s request for suggestions for “formula funding” – a mechanism to standardize appropriations for higher education. The letter argues that this formula approach to funding for higher education, which has resulted in one-time allocations, … [Full Story]

In the latest step toward building a new parking structure on Wall Street, University of Michigan regents authorized staff to issue bids for the $34 million project and award construction contracts. The action came at the board’s Dec. 13, 2012 meeting.

In July of 2012, regents had approved a schematic design for the six-story, 720-space parking structure on Wall Street, near the Kellogg Eye Center and the UM medical campus. The overall project had been authorized in April 2012. [schematic of structure – view from Maiden Lane] [... [Full Story]

Four items disclosed under the state’s conflict-of-interest statute were authorized by the University of Michigan board of regents at their Dec. 13, 2012 meeting. The law requires that regents vote on potential conflict-of-interest disclosures related to university staff, faculty or students.

The items often involve technology licensing agreements or leases. This month, all items were approved unanimously and without discussion. They related to the following businesses and organizations: JV Biolabs LLC (sub-lease agreement at 2900 Huron Parkway); Avicenna Medical Systems (contract to license Avicenna’s chronic disease management software, called Avitracks); Echo360 Inc. (contract to license UM technology); and Vortex Hydro Energy LLC (master agreement for collaboration between UM and the startup business).

As an example of these items, disclosure of the contract with … [Full Story]

In separate votes, University of Michigan regents approved three infrastructure projects on Ann Arbor’s central campus totaling $16.55 million. The approvals came during the board’s Dec. 13, 2012 meeting.

The largest project is $8.5 million for a new chiller plant, to be located in the lower basement of the South Quad residence hall at 600 E. Madison. The chilling system would serve three buildings: South Quad, West Quad, and the Michigan Union. The project will be funded by UM’s housing unit and coordinated with the $60 million overhaul of South Quad, which regents approved at their September 2012 meeting.

Also approved was a $5.75 million project to upgrade the feed water system at UM’s central power plant, located at … [Full Story]

A $4.375 million renovation project for the University of Michigan Electron Microbeam Analysis Laboratory was authorized by regents at their Dec. 13, 2012 meeting. The renovation will take place in UM’s North Campus Research Complex (NCRC), the former Pfizer facility on Plymouth Road.

Specifically, the lab will be located in 8,900 square feet on the ground floor and first floor of Building 22. Currently the lab is housed in the Space Research Building and the Carl A. Gerstacker Building on UM’s north campus.

Renovation is expected to be finished in the winter of 2014 and will support about 10 construction jobs during the work, according to a staff memo. The project will be funded with resources from UM’s College of … [Full Story]

A $4.4 million renovation of Mason Hall – focused on upgrades to the Angell Hall Courtyard computing site and three computing classrooms – was approved by the University of Michigan regents at their Dec. 13, 2012 meeting.

Mason Hall, located at 419 S. State, is connected to Angell Hall. The renovation will cover 32,000 square feet and include expansion of the computing site, improved accessibility, and infrastructure upgrades. The project will be funded through investment proceeds and the provost’s office. The work is expected to be finished by the fall of 2013 and will provide about 14 construction jobs.

Regent Andrea Fischer Newman asked whether the changes would affect the “Fishbowl” – a reference to the glass-walled computing center. Tim Slottow, … [Full Story]

A major renovation to the entrance of Schembechler Hall at 1200 S. State moved forward, with University of Michigan regents authorizing staff to issue bids and award construction contracts on the $9 million project. That action occurred at the board’s Dec. 13, 2012 meeting. Regents had previously approved a schematic design at their July 2012 meeting, and had signed off on the overall project in January.

The building was constructed in 1990 for UM’s football program. It contains locker rooms, meeting rooms, medical treatment rooms, training areas, weight rooms, and administrative offices. The project will add about 7,000 square feet to the building, renovate an additional 7,000 square feet, and integrate the Margaret Dow Towsley Sports Museum area. The main entrance will … [Full Story]

Several real estate deals – including one involving the building that houses Blimpy Burger on South Division – were authorized by University of Michigan regents at their Dec. 13, 2012 board meeting.

The university is buying three properties on the east side of South Division Street, north of Packard – at 545, 549 and 551 S. Division – for a total cost of $1.5 million.

The two properties at 549 and 551 S. Division are being purchased for $1.075 million. Krazy Jim’s Blimpy Burger, which has been in business since 1953, leases the building at 551 S. Division. The deal is expected to close on Dec. 31, but the lease to Blimpy Burger will run through Aug. 31, 2013. Tenants will … [Full Story]

The University of Michigan leases space at six locations that each cover more than 50,000 square feet. Most of the spaces are used by various University of Michigan Health System (UMHS) units. The item of information was presented at the Dec. 13, 2012 UM board of regents meeting.

The largest amount is 240,920 square feet at the Domino’s Farms complex in Ann Arbor, used for several different UMHS departments, including sports medicine, plastic surgery, preventive cardiology, and some Medical School groups, including internal medicine.

Other leased space in Ann Arbor includes: (1) 125,815 square feet at the KMS Building at 3621 S. State Street, which is leased from State 94 Properties LLC for hospital clinical billing and other UMHS groups; (2) 70,754 … [Full Story]

Ann Arbor city council special meeting (Dec. 10, 2012): On a unanimous vote, the council passed a resolution objecting to the inclusion of Washtenaw County in a regional transit authority (RTA), created with a bill passed by the state legislature on Dec. 6.

The language of the resolution was changed at the meeting to eliminate a request that Gov. Rick Snyder veto the legislation. Instead, the council substituted a request that the RTA legislation be amended to exclude Washtenaw County, where Ann Arbor is located.

However, the resolution retained other parts of its strong wording, including a reference to a provision about rail transportation – which calls the bill’s requirements for implementation of rail-based transportation “onerous and offensive.” It’s a clause in the legislation that requires a unanimous vote of the 9-member RTA board to “acquire, construct, operate, or maintain any form of rail passenger service within a public transit region.”

The RTA legislation specifically mentions “rolling rapid transit” – a system based on buses, not trains – as a possibility for four major new regional corridors: along Woodward, along Gratiot, from Pontiac to Mt. Clemens, and from Detroit to Ann Arbor. Supporters of the RTA with Washtenaw County’s current inclusion have claimed that a rail-based east-west commuter line between Ann Arbor and Detroit is still achievable, or even likely, despite the requirement of unanimous board support.

The council’s resolution reflected the fact that an east-west rail connection has been an aspiration of Ann Arbor mayor John Hieftje and other local officials for several years – demonstrated in a current study being done with federal funds to determine a locally preferred alternative for the location of a new Amtrak station. But the “onerous and offensive” clause in the resolution was subjected to debate, as some councilmembers supported its removal for completely different reasons.

Councilmembers who’ve opposed Ann Arbor’s continued study of a new rail station seemed to perceive the clause to be an implicit endorsement of continued investments in that direction. But Chuck Warpehoski (Ward 5), who could reasonably be described as the council’s strongest advocate for transit, argued also against the “onerous and offensive” clause. His argument was based on a belief that the legislation had a mechanism to allow the newly created RTA to implement rail-based services by creating yet another transit authority – thus circumventing the unanimous voting requirement. Ultimately, there were not sufficient votes on council to remove that clause.

Besides concern about the future of commuter rail, the council’s resolution indicates concern that the inclusion of Washtenaw County in the RTA would potentially risk the Ann Arbor Transportation Authority’s ability to continue its role to serve effectively as a transportation provider for Ann Arbor.

In the days leading up to the meeting, staffers with the Michigan Suburbs Alliance lobbied the council not to pass its resolution, in an effort that included a claim that the Ann Arbor city council’s resolution reflected a desire to determine unilaterally the county’s transportation future. In fact, the council’s action echoes the sentiments of a recent resolution approved by the Washtenaw County board. And a resolution of the Ann Arbor Transportation Authority board, approved in February 2012, supported the concept of an RTA, but conditioned that support on the coordination of new funding so that existing levels of transportation services provided by the AATA are maintained.

As of noon on Dec. 12, Snyder had not yet signed the legislation – it had not yet been presented to him for his signature, according to the governor’s office.

In this report, the council deliberations at its Dec. 10 special meeting are presented in detail. [Full Story]

Washtenaw County board of commissioners meeting (Dec. 5, 2012): More than 20 veterans attended the county board’s final meeting of 2012, hoping to sway commissioners on three appointments to the county’s dept. of veterans affairs committee.

The board ultimately voted to appoint Gregg Weaver, Robert Fletcher and Ira Brownridge. Weaver and Fletcher are reappointments. Brownridge – who was appointed to a vacancy following the death of World War II veteran Eddie Steele – is the first veteran from the conflict in Iraq to be appointed to the committee. The majority of commissioners supported the continuity of reappointments, and the chance to appoint someone to represent the next generation of veterans.

The vote on these appointments was 9-2, with dissent from Dan Smith (R-District 2) and Wes Prater (D-District 4). Prater and Smith wanted the board to respect the recommendations from the veterans posts in the county, which had supported the appointments of three different men: John Kinzinger, David “Doc” Martinez, and Elmer White – all veterans of the Vietnam war, and active in the Washtenaw County chapter of the Vietnam Veterans of America. Kinzinger, White and other veterans spoke during public commentary, urging the board to appoint the most qualified applicants and those who have long been involved in helping veterans in this community. They also addressed what some referred to as a dysfunctional department, and felt that it needed more oversight.

In other action at the meeting, the board gave a one-time salary adjustment to 940 of the county’s 1,321 employees – people who had taken unpaid “banked leave” days in 2012. The payment will equal 1.5% of their salaries, or an average of about $800. Several commissioners praised employees for making sacrifices in the past to help balance the county’s budget. The vote on the pay adjustment was 10-1, with dissent from Dan Smith (R-District 2).

The commissioners also gave themselves a pay increase, bumping up their base pay from $15,500 to $15,750 annually and replacing per diem payments with stipends, effective Jan. 1, 2013. In addition, four officers of the board will be getting compensation beyond their base pay. Dan Smith was the only commissioner to vote against these increases.

Commissioners gave final approval to the 2013 general fund budget of $102.84 million, with a net increase of one full-time position. [.pdf of 2013 Washtenaw County budget] The largest expenditures relate to personnel, which accounts for 66% of general fund expenses. The 2013 budget shows a $4.7 million increase in that category, compared to the original 2013 budget that commissioners approved in late 2011.

The Dec. 5 meeting also included farewells to four outgoing commissioners – Barbara Bergman, Leah Gunn, Wes Prater and Rob Turner – as well as to Janis Bobrin, the county’s water resources commissioner, who did not seek re-election. Commissioners and staff also had a moment of silence to honor Patrick Barrie, executive director of the Washtenaw Community Health Organization, died suddenly this month. Bergman, a long-time WCHO board member, called his death is a great loss for people who use WCHO services. “They have lost a champion,” she said, “and I have lost the dearest of friends.” [Full Story]

Editor’s note: Nelson’s “In it for the Money” opinion column appears regularly in The Chronicle, roughly around the third Wednesday of the month. Sometimes, like this month, he’ll deviate from that schedule and write two columns in one month. FYI, Nelson has a story in the latest issue of “Asimov’s” (which hits newsstands this week). It’s your basic crappy-jobs/labor-relations/time-travel tale – possibly of interest to speculative Chronicle readers.

Last week I insisted you write some letters.

This week I’m urging you to once again take to the keyboard but, after that, I promise: You’ll be free of my nagging until 2013 – at which time we’ll all be sailing together over the “fiscal cliff,” which is sort of an economic Doomsday Device that will automatically cut federal spending and bump up taxes on Jan. 1, 2013 unless Congress pulls together a workable budget.

According to the President, if Congress does nothing, then middle class families will see a tax bump of as much as $2,200. He’s encouraging folks to drop him a line explaining what $2,000 means in your household budget.

Many folks have taken to tweeting brief glosses of these letters using the hashtag “#My2K” – which has also become a tag for carping about the fiscal cliff generally.

Below the fold is what I wrote to the President (and forwarded to my congressfolk). [Full Story]

Adam Zemke was one of two newly elected state representatives who were interviewed by Detroit’s ABC affiliate 7 Action News regarding Michigan’s right-to-work legislation, which was signed into law on Tuesday. Zemke, a Democrat, was elected to represent District 55, which covers northern Ann Arbor, part of the city of Milan, and the townships of Ann Arbor, Pittsfield, York and Augusta. [Source]