Archive for August, 2013

The Wall Street Journal has published an excerpt of “Fourth and Long: The Fight for the Soul of College Football,” a new book by Ann Arbor author and sports columnist John U. Bacon. The online version includes a video of WSJ’s Rachel Bachman interviewing Bacon about his experience following four college football teams: Michigan, Penn State, Ohio State and Northwestern. [Source]

Washtenaw County board of commissioners working session (Aug. 8, 2013): A range of ways to bring in additional revenues – including increases to existing taxes, or new millages requiring voter approval – are being explored by county commissioners. They’re working to overcome a nearly $4 million budget deficit in 2014 without further cuts to programs and services.

A memo prepared by Conan Smith (D-District 9) outlined six options for generating more tax revenue. Three of those options would not require voter approval, because the Michigan statutes that authorize the millages predate the state’s Headlee Amendment. The board already levies two of these types of taxes – for indigent veterans services, and agriculture/economic development – but doesn’t yet levy the full amount allowed by law. The third tax in this category, which the county doesn’t levy now, would pay for road repair.

Other approaches would need voter approval. A Headlee override – allowing the board to raise its operating millage to the cap of 5.5 mills, from the current rate of 4.5493 mills – would result in an additional $13.5 million in tax revenues next year. The rate of 5.5 mills has been rolled back over the years by the Headlee Amendment, which was designed to prevent property tax revenues from increasing faster than the rate of inflation.

Commissioners also discussed the possibility of putting a millage proposal on the ballot for specific purposes, like public safety. Sheriff Jerry Clayton attended the working session and stressed the importance of funding for public safety.

A targeted millage could also pay for annual contributions toward the county’s unfunded pension and retiree healthcare obligations. But that strategy would not eliminate the entire amount of unfunded liabilities, estimated at nearly $300 million. A controversial bond proposal intended to eliminate those obligations was halted in early July. [See Chronicle coverage: "County to Push Back Vote on Bond Proposal."] However, on Aug. 8 some commissioners indicated that bonding was not off the table, and could still be considered. Michigan’s Public Act 329 of 2012, which enables municipalities to issue bonds for these kinds of obligations, has a sunset of Dec. 31, 2014.

In other possible revenue strategies, Conan Smith also advocated to use some of the general fund’s roughly $16 million fund balance, to support one-time investments like capital expenditures or to replenish fund balances in specific departments. He had made a similar proposal at the board’s Aug. 7, 2013 meeting, but did not win support for it from the majority of commissioners.

At their working session, several commissioners expressed general support for seeking some kind of voter-approved tax, either a Headlee override or a targeted millage. There seemed to be less support for tapping the general fund’s fund balance. Yousef Rabhi (D-District 8) described the fund balance approach as “a short-term energy pill. It’ll get us a couple feet down the road, but it won’t give us the miles that we need.”

It’s unlikely that a millage proposal would be put on the November ballot. To do so, the board would need to take action this month, which would require calling a special meeting. The board’s next scheduled meeting is Sept. 4.

The Aug. 8 working session also included a presentation by Mary Jo Callan, director of the county’s office of community and economic development, about current and proposed initiatives related to economic development. The session was attended by Ann Arbor SPARK executives, including CEO Paul Krutko.

This report focuses on the board’s budget discussion. [Full Story]

The Ann Arbor Area Transportation Authority’s work plan for the coming fiscal year has been approved by the AAATA board. It’s organized under five broad categories: (1) transportation services; (2) research and development initiatives; (3) programs, partnerships, and external relations; (4) capital projects; and (5) management responsibilities and initiatives. [.pdf of AAATA work plan]

The AAATA’s fiscal year starts in October. So staff are working to finalize an FY 2014 budget to support that work plan. That budget will be presented to the board at its Sept. 26, 2013 meeting.

The budget picture for the coming year will be eased somewhat compared to last year, when the AAATA had to scramble to reduce its planned budget based on roughly $800,000 less … [Full Story]

For the next five years, the Ann Arbor Area Transportation Authority will be purchasing printing services from possibly three different printers: Dollar Bill, Green Light Graphics and Print-Tech Inc.

Authorization to use those printing shops was given by the AAATA board at its Aug. 15, 2013 meeting. Even though resolution giving the authorization mentioned smaller print jobs of $3,000 or less, board approval was needed because the total cost was expected to exceed $100,000 for the five-year period. The threshold for required board approval is $100,000.

The Ride Guide, which contains all the routes and schedules, is printed under a separate contract from those authorized under the Aug. 15, 2013 resolution.

This brief was filed from the downtown location of the Ann Arbor … [Full Story]

Final paperwork for a name change of Ann Arbor’s local transit agency – from the “Ann Arbor Transportation Authority” to the “Ann Arbor Area Transportation Authority” – is now complete.

As of Aug. 15, 2013 the transportation authority will begin using the new name on all official communications and transactions. That’s the date when the filings with the state became official, as well as the date on which the board of the AAATA passed a resolution giving formal notification of the name change. The resolution was passed at the board’s regular monthly meeting.

The board’s Aug. 15 resolution indicates that the organization will continue to use “TheRide” in its marketing and branding. That’s partly a response to the increased challenge of pronouncing … [Full Story]

The University of Michigan student Mixed Use Party, which is fielding candidates in the Nov. 5, 2013, Ann Arbor city council elections, has landed on the radar of Slate Magazine’s business and economics correspondent Matthew Yglesias. In an Aug. 14, 2013 column, Yglesias offers a positive assessment of the kind of limited zoning plan put forward by the MUP: “… these kind of codes are a big improvement on the idea that town planners need to micromanage where people can and can’t put an office or a store.” [Source]

Ann Arbor planning commission meeting (Aug. 7, 2013): A light agenda for the planning commission led to two straightforward decisions on rezoning requests for parcels outside the downtown, well away from the area that has generated ongoing controversy. The decisions were both unanimous, with opposite outcomes.

The planning commission heard a request to rezone 3325 Packard from R1C (single-family dwelling) to R2A (two-family dwelling) – and voted unanimously to deny that request. A house had burned on the lot, which sits at the corner of Fernwood and Packard. The economics of rebuilding a single-family house and trying to sell or rent it out weren’t realistic, owner Steve Weaver told the commission.

A duplex, Weaver argued, could help stem the commercial creep coming from the west at Packard and Platt, and provide a “thumb in the dike” to preserve the residential character of that stretch.

But planning commissioner Bonnie Bona reflected the view of commissioners and planning staff that the decision was a “no-brainer” in the context of the city’s master plan, which clearly designates the area for single-family houses. They were reluctant to engage in “spot zoning.”

In voting unanimously to deny the rezoning request, commissioners encouraged Weaver to work with neighboring property owners with the idea of bringing forward a request to rezone an entire blockface.

Weaver has said he will exercise his option to make his rezoning request directly to the city council, even without the planning commission’s support.

The other rezoning request on the commission’s Aug. 7 agenda was to designate some city-owned property on 3875 E. Huron River Drive as PL (public land). The move was characterized as a housekeeping step for the planning commission. During the public hearing on the question, one person addressed the commission indicating support, but with some concern about the range of activities that would be promoted there.

One idea mentioned at the meeting was the possibility that the parcel – sold to the city in 2010 by former U.S. Congressman Wes Vivian – could become the headquarters for the city’s natural area preservation program (NAP). Commissioners encouraged nearby residents to work with the park advisory commission (PAC) as that group helps decide the parcel’s eventual use within the park system.

The commission also heard remarks from the representative of a neighbor opposed to a requested land division on Traver Street. But the decision on that item will be made by planning staff, not the planning commission or the city council. [Full Story]

National Public Radio reports on the debut album of the Dominican Sisters of Mary, Mother of the Eucharist, a community of nuns who live north of Ann Arbor. The album, titled Mater Eucharistiae, was released on Aug. 13. The report quotes Sister Maria Suso: “Usually when we’re singing, it’s just us and God. But with the CD, we were able to bring other people into that space of prayer when we’re singing. And that’s something that is humbling and makes us a little vulnerable. These are our special songs.” [Source]

A photo by Thomas Nighswander – featuring Krazy Jim’s Blimpy Burger owner Rich Magner and several employees – is posted on “The Last Supper” website, which provides details of an Aug. 17 fundraiser and final event at the current Blimpy location at Division and Packard. The event, which costs $100 per person, is described on the website as “a very personalized experience and a chance to meet others as Krazy about Blimpy as you are.” Blimpy’s will be open to the general public through Wednesday, Aug. 14. [Source]

Washtenaw County board of commissioners meeting (Aug. 7, 2013): A packed agenda and lengthy debate on several items led to a meeting lasting over five hours, with some issues postponed until September.

Following an unexpected proposal from the floor and considerable discussion, commissioners gave initial approval to authorize a $654,670 increase in 2013 general fund revenues and expenses, bringing the total general fund budget to 103,218,903. [.pdf of 2013 budget adjustment chart]

Despite the better-than-anticipated revenue picture, the administration is still projecting a deficit of $3.9 million for next year’s 2014 budget.

Generally, mid-year budget adjustments are recommended by staff and are typically dispatched with minimal discussion. However, a proposed amendment by Conan Smith of Ann Arbor (D-District 9) would have transferred money from the general fund’s unearmarked reserves to restore over $1 million in funding to programs that had been previously cut. He argued that restoring this funding was possible in light of $2.3 million in higher-than-expected property tax revenues this year.

Several commissioners expressed general support for Smith’s intent, but cautioned against acting quickly and not giving sufficient strategic thought to these allocations. They had seen the proposal for the first time that night. Smith argued that he had asked for the budget adjustment resolution to be pulled from the agenda prior to the meeting, because he had wanted more time for discussion. Chastising other commissioners for not taking action to spend the unanticipated revenues, Smith noted that the board had identified human services as a priority, but was instead funding things like software and facilities. He told commissioners it was “one of the worst nights I’ve ever had on this board.”

The board voted down his proposal, but then postponed a final vote on the overall budget adjustments until its Sept. 4 meeting. Several commissioners indicated an interest in working with Smith to address some of his concerns before then.

The 2013 budget was also a highlight during a second-quarter update by the county’s financial staff, who reported that they’re now expecting a $245,814 general fund surplus for the year. In addition, the 2013 general fund budget is not expected to need a previously planned use of $2.8 million from the fund balance. [.pdf of 2Q budget presentation]

In other business, commissioners held a lengthy debate over a resolution for a new case management software system for the Washtenaw County Trial Court that’s estimated to cost $2.3 million. An original resolution had outlined funding sources for the project. However, prior to the meeting some commissioners expressed concern about the use of capital reserves to help fund the purchase, so an alternative resolution was brought forward at the meeting that did not include the references to funding sources.

However, Dan Smith (R-District 2) objected to passing a resolution that approved the purchase but did not include a funding plan. Alicia Ping (R-District 3) was concerned that there had been no clear source of funding identified for the system’s annual licensing fee, estimated at $188,933.

An amendment to that alternative resolution – made after considerable discussion and procedural maneuverings – stated that the board approved the selection of this software system, and directed the county administrator to develop a maintenance and implementation plan, and to identify funding sources by the time of the board’s Sept. 4 meeting. That amendment was not enough to win support from D. Smith and Ping, however.

The resolution received initial approval on Aug. 7, but did not garner sufficient votes for final approval. It will be considered again on Sept. 4.

The board also debated – and ultimately approved – two long-term leases: (1) the 10-year lease of a county-owned Head Start building at 1661 Leforge Ave. in Ypsilanti to the Washtenaw Intermediate School District; and (2) a 9-year lease with Dahlmann Apartments Ltd. for space in the City Center Building at 220 E. Huron in Ann Arbor.

Other action included approval to back up to $3.3 million in bonds to pay for five drain-related and “green infrastructure” projects in Ann Arbor, and authorization to amend a contract between Washtenaw County, Lyndon Township and Sylvan Township related to a sewer system in those townships.

Several grants were accepted during the meeting: (1) about $2.5 million in federal workforce development funding; (2) a $665,704 federal grant to pay for two outreach workers with the Washtenaw Health Plan (WHP), who will focus on increasing children’s participation in federal Medicaid and the Children’s Health Insurance Program (CHIP), known as children’s Medicaid; and (3) a $20,000 capacity-building grant from the Ann Arbor Area Community Foundation for work on the Washtenaw food policy council.

Mary Kerr, president of the Ann Arbor Area Convention & Visitors Bureau, was on hand with several representatives of the United Association (UA) Union of Plumbers, Pipefitters, Sprinkler Fitters, Steamfitters, and Service Technicians. The UA is holding its 60th annual training program in Washtenaw County from Aug. 10-16. It’s the 24th year that UA has held its training program here. More than 2,500 participants will generate an estimated $5 million into the local economy, Kerr said: “The UA leaves this community in much better condition than when they came at the beginning of the week.” [Full Story]

Ann Arbor city council meeting (Aug. 8, 2013): Counting all public hearings and public commentary, members of the public accounted for just 20 minutes of the council’s meeting. Still, councilmembers stretched a relatively light agenda to about four hours.

An hour of the meeting was taken up with a discussion of street closures around Michigan Stadium on football game days. The street closures are part of an effort to increase safety by creating a vehicle-free zone around the stadium. It involves a cooperative effort with the University of Michigan, U.S. Department of Homeland Security and the city of Ann Arbor police department.

Those deliberations ultimately resulted in a modification of the original plan, so that the southbound lane of Main Street would not be closed until an hour before the start of the game.

Other parts of the plan were approved as originally proposed, starting three hours before kickoff: E. Keech Street between S. Main and Greene streets will be closed, and access to Greene Street from E. Hoover to E. Keech streets will be limited to parking permit holders; the westbound lane on E. Stadium Blvd. turning right onto S. Main Street (just south of the Michigan Stadium) will be closed; and S. Main Street except for the southbound lanes will be closed from Stadium Boulevard to Pauline.

The council also amended the plan to require a report by its Oct. 7 meeting on how well the procedures are working. Even with the modification to the plan and the requirement to brief the council on Oct. 7, the proposal to close streets on football Saturdays was approved on just a 7-4 vote, with dissent from Sabra Briere (Ward 1), Sumi Kailasapathy (Ward 1), Margie Teall (Ward 4) and Marcia Higgins (Ward 4). That neighborhood is located in Ward 4.

Also during the meeting, the council denied a requested street closure for a non-university event on South University Avenue. The requested closing was for “Beats, Eats, and Cleats,” sponsored by The Landmark apartment building. It was planned for the evening before a football game between the University of Michigan and the University of Notre Dame. Councilmembers expressed concerns about the probability of alcohol consumption.

Another 40 minutes of the meeting was taken up with discussion of a bike share program, which did have a direct connection to the University of Michigan. The council was asked to contribute $150,000 from the city’s alternative transportation fund. That money provided a 20% local match on a $600,000 Federal Highway Administration Congestion Mitigation Air Quality (CMAQ) grant that the Clean Energy Coalition (CEC) has received. The CMAQ funds have to be spent on capital, such as bikes and stations. Operations will be supported in the first three years of the program by UM at a level of $200,000 annually for a total of $600,000. The program will be operated by the CEC using B-Cycle as a vendor. The council’s vote on the bike share program was 9-2, with dissent from Sally Petersen (Ward 2) and Marcia Higgins (Ward 4).

Higgins also dissented on a council resolution that called upon the state legislature to repeal Michigan’s version of a “stand your ground” law, as well as to repeal legislation that prevents local municipalities from regulating the sale, transfer, transportation, or possession of firearms and ammunition. That resolution came after public commentary on the verdict in the Trayvon Martin case at the council’s previous meeting. Higgins agreed with the sentiments in the resolution, but said she thought it would have a greater impact if people spoke as individuals. Other councilmembers expressed some skepticism that the resolution would have much impact, but it received their support.

The Kerrytown Place project – an 18-unit townhouse development planned for the location of the former Orthodox Greek church on North Main Street – was subjected to only brief remarks. The council unanimously approved its requested rezoning and site plans.

In other business, the council approved a $10,000 design budget for a sidewalk on Waldenwood near King Elementary School. Construction of the sidewalk would allow a mid-block crosswalk to be moved to a four-way stop intersection.

The council also agreed to accept $202,370 from the Federal Farm and Ranch Land Protection Program (FRPP) to help the city purchase development rights on land in Lodi Township, southwest of the city.

Over dissent from Jane Lumm (Ward 2) and Sumi Kailasapathy (Ward 1), the council approved $18,500 to pay for public art administrator Aaron Seagraves’ contract through the end of 2013.

Among the nominations to boards and commissions announced at the meeting, two were significant: Rishi Narayan, founder and managing member of Underground Printing, to the board of the Ann Arbor Downtown Development Authority; and Jack Bernard, chair of the University of Michigan’s council for disability concerns, to the board of the Ann Arbor Area Transportation Authority. [Full Story]

A Bloomberg Businessweek report about the impact of Detroit’s bankruptcy on bonding in Michigan quotes Erik Gordon, who teaches at the University of Michigan Ross School of Business: “Investors can’t price a bond in Saginaw or Genesee or Battle Creek if they don’t know what a general-obligation bond means. When somebody changes the rules of the game, there’s not much you can do about it, and you don’t want to play again.” [Source]

Earlier this week, the American Civil Liberties Union of Michigan – along with two plaintiffs – filed suit against the Ann Arbor Public Schools for the school district’s plan to charge students who want to take a seventh class in a semester.

The lawsuit argues that the Michigan Constitution requires a free public education for all Michigan students, and that charging for a seventh hour is unconstitutional. Kary Moss, ACLU of Michigan executive director, outlined the position in an ACLU press release: “Allowing this model to continue will open the floodgates for any district in the state to charge for every conceivable part of their students’ education creating a two-tiered system in which students who have money get ahead, while those who do not fall behind.”

In early June, I wrote my first column for The Chronicle, about three aspects of the AAPS budget proposal. ["Column: Disparate Impact of AAPS Cuts?"] One of the areas I wrote about was seventh hour, a term that refers to the option of taking a seventh class during a semester, rather than the more standard six classes.

I was concerned about issues of equity – about Skyline students being able to acquire 7.5 credits in a year without paying, while Pioneer and Huron students could only earn 6 credits in a year for free. I was concerned about students losing access to the arts. I was concerned about disparate impacts.

I assumed that – as with many other proposals – this idea was poorly conceived, but legal.

A couple of days after my column was published in The Chronicle, I talked with the ACLU’s Kary Moss. (Full disclosure: Kary is a friend of mine, and we frequently discuss education issues. And that first Ann Arbor Chronicle column ended up as “Exhibit 4” in the ACLU complaint.)

Kary suggested to me that she was concerned about seventh hour, too – because she believed the move to charge tuition was unconstitutional.

Unconstitutional?! That thought had not even occurred to me. [Full Story]