June 16, 2014: Council Live Updates

Agenda dominated by physical infrastructure, downtown issues; also, funding for Ann Arbor SPARK, recycling, specialized court services

Editor’s note: This “Live Updates” coverage of the Ann Arbor city council’s June 16, 2014 meeting includes all the material from an earlier preview article published last week. The intent is to facilitate easier navigation from the live updates section to background material already in this file. Outcomes of council votes are also available in the Civic News Ticker.

The city council’s last meeting of the 2014 fiscal year, on June 16, 2014, features an agenda packed with items related to the city’s physical infrastructure like bridges (including art), the sanitary sewer system and the stormwater system, as well as several resolutions related to construction of new sidewalks.

The sign on the door to the Ann Arbor city council chamber, installed in the summer of 2013, includes Braille.

The sign on the door to the Ann Arbor city council chamber includes Braille.

Related to new sidewalk construction is a resolution that would authorize a $75,000 contract with the Greenway Collaborative, to support the work of a pedestrian safety and access task force established by the city council in late 2013. Part of the task force’s responsibility is to create a tool for setting priorities for funding and filling sidewalk gaps in the city.

The $75,000 cost for the pedestrian safety task force consultant is the same amount the council will be asked to allocate to support the work of Ann Arbor SPARK, a local economic development agency. The contract with SPARK is renewed annually, as is another contract on the June 16 agenda – for lobbying services from Governmental Consultant Services Inc. The GCSI contract is for $48,000.

Also on the council’s June 16 agenda are three items with a connection to the Ann Arbor Downtown Development Authority. One is the approval of an end-of-year budget adjustment that was already approved at the DDA board’s June 4, 2014 meeting. Another is approval of a $37,500 expenditure from the city’s affordable housing trust fund to help pay for an affordable housing needs assessment. At its June 4 meeting, the DDA board authorized a $37,500 grant for the same study.

In the final item with a DDA connection, the council will be asked to authorize $69,555 for the conversion of 223 mercury-vapor cobrahead streetlights to LED technology. This project would convert streetlights that are all outside the DDA district. The project is on the city council’s agenda because the DDA board recently declined to fund a similar LED conversion project – for streetlights inside the DDA tax capture district.

Several other June 16 agenda items relate to the downtown area, even if they don’t have an explicit DDA connection. Two of them involve changes to downtown zoning ordinances that have been recommended by the planning commission. The zoning question to be given initial consideration by the council is whether to downzone the southeast corner of William and Main streets from D1 to D2, but with a 100-foot height limit.

Other downtown items on the council’s June 16 agenda include site plan approvals for First Martin’s hotel project at Ashley and Huron, and the Bank of Ann Arbor expansion at Fifth Avenue and Washington Street.

A resolution to improve Liberty Plaza, a downtown park at the southwest corner of Division and Liberty streets, also appears on the agenda – sponsored by mayor John Hieftje and Christopher Taylor (Ward 3). Added as sponsors since its initial appearance on the agenda are Sabra Briere (Ward 1) and Margie Teall (Ward 4).

The council will be asked to approve four items related to supportive services for the criminal justice system: (1) a $76,242 contract with Washtenaw County Community Support & Treatment Services for mental health treatment services for the 15th District Court’s sobriety and mental health courts; (2) a $44,200 contract with the Washtenaw County sheriff’s office to provide drug abuse screening and monitoring services for the mental health court; (3) a $108,174 contract with Dawn Farm for drug abuse counseling and rehabilitative services; and (4) a $40,000 contract with Reiser and Frushour PLLC to provide legal representation as court-appointed counsel to indigent defendants.

Recycling is the final topic with multiple items on the June 16 agenda. The council will be asked to approve funds for a $95,694 contract with Recycle Ann Arbor to create a multi-family recycling incentive pilot program. The council will also be asked to approve $39,480 to reimburse the city’s operator of its materials recovery facility for repair of a conveyor that feeds the baler. And finally, the council will be asked to approve $35,000 for Recycle Ann Arbor to provide solid waste services associated with student move-out activity.

The June 16 council meeting will also feature the annual historic district commission awards and the introduction of one of the Ann Arbor police department’s K-9 units, who won highest honors at a recent national certification trials event. This article includes a more detailed preview of many of these agenda items.

More details on other agenda items are available on the city’s online Legistar system. The meeting proceedings can be followed Monday evening live on Channel 16, streamed online by Community Television Network starting at 7 p.m.

The Chronicle will be filing live updates from city council chambers during the meeting, published in this article below the preview material. Click here to skip the preview section and go directly to the live updates. The meeting is scheduled to start at 7 p.m.

Physical Infrastructure

The council’s June 16 agenda is heavy with items related to the city’s physical infrastructure.

Physical Infrastructure: Fuller Road Bridges

The council will be asked to approve a $187,184 contract with Northwest Consultants Inc. for the Fuller Road, Maiden Lane, and East Medical Center Drive bridges rehabilitation project. According to the staff memo accompanying the resolution, the project includes “re-painting of each bridge, repairing corroded structural steel, bridge abutment and pier (substructure) repairs, expansion joint removal and replacement, bridge deck patching, placing an overlay on the existing bridge decks, bridge railing repairs, guard rail upgrades, brush trimming and removal around the perimeter of the bridge structures, and other related work.”

Money for the design work is available in the approved FY 2014 public services area street millage capital budget. The state of Michigan’s local bridge program pays for 95% of eligible construction expenses up to $790,000. The project will also receive $1,373,440 in federal surface transportation funding, administered through the Michigan Dept. of Transportation. The federal program pays for 81.85% of eligible construction expenses. But neither the state nor the federal sources will pay for the design work that the council’s action will fund.

Physical Infrastructure: Stadium Bridges Art

The council will be asked to approve a contract with Widgery Studio LLC to fabricate and install public art at the East Stadium Boulevard bridges. The city had already contracted with Widgery on May 20, 2014 for $8,248 to finalize the structural design of the artwork with an engineer.

This amendment to the contract on the June 16 council agenda adds art fabrication and installation services to the existing agreement, bringing the total compensation to $353,552 for all services. This was one of the projects for which the city council left funding in place, when it voted on March 3, 2014 to transfer most of the unspent money from the now defunct Percent for Art funding program back to the funds from which the money was originally drawn.

By way of additional background, in early August of 2013, Catherine Widgery of Cambridge, Mass. was recommended as the artist for this public art project. She was picked by a selection panel from four finalists who had submitted proposals for the project, which has a $400,000 total budget. [.pdf of Widgery's original proposal] The selection panel provided feedback to Widgery and asked that she revise her proposal before it was presented to the Ann Arbor public art commission and then later to the city council for approval.

Members of the panel were Wiltrud Simbuerger, Bob Miller, Nancy Leff, David Huntoon and Joss Kiely. [.pdf of panel feedback] The public art commission recommended the project’s approval at its April 23, 2014 meeting.

Ann Arbor public art commision, The Ann Arbor Chronicle

An image by artist Catherine Widgery for artwork on the East Stadium bridge. This night view shows how the structures would be lit from below, illuminating the images of trees that are etched into louvered glass panels.

Catherine Widgery, Ann Arbor public art commission, The Ann Arbor Chronicle

An image of proposed artwork by Catherine Widgery along East Stadium bridge.

Catherine Widgery, Ann Arbor public art commission, The Ann Arbor Chronicle

An image of proposed artwork by Catherine Widgery along the north side of East Stadium bridge.

Catherine Widgery, Ann Arbor public art commission, The Ann Arbor Chronicle

An image of proposed artwork by Catherine Widgery along East Stadium bridge.

Catherine Widgery, Ann Arbor public art commission, The Ann Arbor Chronicle

An image of proposed artwork by Catherine Widgery below East Stadium bridge, along South State Street.

Catherine Widgery, Ann Arbor public art commission, The Ann Arbor Chronicle

An image of proposed artwork by Catherine Widgery below East Stadium bridge, along South State Street.

Catherine Widgery, Ann Arbor public art commission, The Ann Arbor Chronicle

A detail of the louvers designed by Catherine Widgery. The etched glass panels will be attached to a metal frame.

Physical Infrastructure: Sewer Lining

The council will be asked to approve the award of a $1,566,121 construction contract with Lanzo Lining Services for the 2014 sewer lining project. According to the staff memo accompanying this item, the project includes the lining of about 18,028 lineal feet of sanitary sewer and 2,942 lineal feet of storm sewer at 16 locations throughout the city. The memo describes sewer lining as a “trenchless technology which enables the pipe to be repaired without disturbing the surface above.”

Physical Infrastructure: Manholes

As part of its consent agenda, the council will be asked to award a $47,193 contract to Fonson Inc. for the Eighth Street sanitary sewer manhole replacement project. The manholes in question are described in the staff memo accompanying the project as “101 years old, composed of brick and … disintegrating.”

The deterioration of the manholes is attributed to corrosion from sewer gases, vibration from traffic, decades of freeze/thaw cycles and variations in hydrostatic soil pressures. The deteriorated condition includes spalling, weakened mortar, missing bricks and excessive groundwater infiltration, according to the memo.

Physical Infrastructure: Water Main

The council will be asked to award a $1,324,357 construction contract to Douglas N. Higgins Inc. for the Arbor Oaks Phase II water main replacement project. This project will replace the older water mains in the Bryant neighborhood. The water mains in the neighborhood are described in a staff memo as experiencing frequent breaks and in generally poor condition.

The project will install 1,100 feet of 12-inch water main and 2,360 feet of 8-inch water main along Santa Rosa Drive, Jay Lee Court, Lucerne Court, Burlingame Court, Blain Court, Hardyke Court, and Bryant Elementary School property. Included in the project is the resurfacing of the street, replacement of some curb and gutter, and reconstruction of some storm sewer structures.

Physical Infrastructure: Fire Station Restrooms

The council will be asked to approve a $149,500 contract with Emergency Restoration Company for the renovation of restrooms and locker rooms in Fire Stations #3 and #4. The staff memo accompanying the item indicates that the project will renovate the existing restroom facilities to create two unisex restrooms and showers at each station. Facilities and ventilation in the locker room and restroom areas will be improved.

Fire Station #3 is located on the city’s west side, on Jackson Road. Fire Station #4 is located on the city’s southeast side, on Huron Parkway. [Google Map of all five fire station locations]

Physical Infrastructure: Stormwater

The council will be asked to authorize transfer up to $157,264 in funds from the park maintenance and capital improvements millage fund to the stormwater fund – to authorize state revolving fund (SRF) debt payment and loan forgiveness for the stormwater and rain garden components of the skatepark project, located at Veterans Memorial Park.

According to the staff memo accompanying the resolution, a state revolving fund loan is being used to fund the rain garden installation at the skatepark and to reimburse the city’s stormwater fund. Additional stormwater components were approved by the state for 50% loan forgiveness. The transfer of funds that the council is being asked to approve is necessary for the total debt payment of $118,632.00 plus 2% interest over 20 years. The skatepark is scheduled to have a grand opening on June 21 from 10 a.m. to 6 p.m.

Physical Infrastructure: Wastewater Study

As part of its consent agenda, the council will be asked to approve a $62,800 contract with Black & Veatch Ltd. for a water & wastewater system capital cost recovery study. Background to this contract is June 3, 2013 city council action to change the calculation of the water and sanitary improvement charges for properties connecting to city water mains or sanitary sewers – but only for a two-year period, from July 1, 2013, through June 30, 2015.

The effect of the council’s action was to reduce the connection charges considerably. It was understood at the time that the two-year period would allow for the hiring of a consultant to review the city’s fees and charges for connections to the water and sanitary sewer systems and make recommendations for revision. That’s why the Black & Veatch item appears on the council’s June 16 agenda. The principles at stake are described in the staff memo accompanying the item as follows:

When making future changes to improvement charges and connection fees, it is important that various competing elements are satisfied. The fees must be easy to explain and easy to understand to be accepted by the users. The fees must recover costs equitably. The fees must not result in either an undue burden on existing rate payers of the systems or an undue burden on new customers connecting to the systems. The fees must be easily understood and neither over recover costs nor under recover costs. Any under-recovery of costs would place undue and inequitable financial burdens on current rate payers. To meet these goals and gain the experiences of other utilities, it is desirable to contract with a consulting firm that has nationwide experience in this area.

Physical Infrastructure: Stormwater Services

As part of its consent agenda, the council will be asked to approve the amendment of a purchase order for stormwater services with the Washtenaw County water resources commissioner. The request of the council is to increase the amount of the existing contract with the water resources commissioner by $30,000. The existing contract was approved for FY 2011 for $69,215 with a 3% annual increase, which would have put the amount for FY 2014 and FY 2015 at $75,633 and $77,902, respectively. The council is being asked to approve funding at $105,633 and $107,902, for FY 2014 and FY 2015, respectively.

Informational Infrastructure: HR and Payroll Software

The council will be asked to approve a $570,900 contract with NuView Inc. to replace the city’s human resource and payroll system. The staff memo accompanying the item explains why the existing software, acquired in 2007, is being replaced:

In 2007, the City installed a Human Resource and Payroll system called Ultipro, by Ultimate Software. The Ultipro system included modules for Recruiting, Benefits Administration, Human Resource Administration and Payroll. The City has experienced a variety of issues related to the underlying database architecture utilized by Ultimate Software. In addition, due to changes such as new legislative requirements, the increase in recruiting volume and the increase in manual data entry involved in benefits administration, the City has found the Ultipro system unable to meet its Human Resource needs.

Sidewalk/Pedestrians

The council’s agenda features several items related to special-assessed sidewalk construction projects, as well as funding for a pedestrian safety and access task force. Four different special-assessed sidewalk construction projects are on the agenda – two public hearings to be held at the June 16 meeting (for Scio Church and Barton Drive) and two resolutions to set public hearings for future meetings (for Pontiac Trail and Stone School Road).

Sidewalk/Pedestrians: Pontiac Trail Sidewalk

Two resolutions appear on the agenda in connection with construction of a new sidewalk on Pontiac Trail – one to direct the assessor to prepare an assessment roll, and another to set a public hearing on the special assessment for July 21. The assessable cost is $72,218. According to the staff memo accompanying the resolution, sidewalk construction would be done as part of the reconstruction of Pontiac Trail beginning just north of Skydale Drive to just south of the bridge over M-14.

The project will also be adding on-street bike lanes and constructing a new sidewalk along the east side of Pontiac Trail to fill in existing sidewalk gaps and to provide pedestrian access to Olson Park and Dhu Varren Road. That’s a part of the city’s Complete Streets program. In addition to the sidewalk, approximately 1,960 feet of curb and gutter is being added north of Skydale along Pontiac Trail to protect existing wetland areas. [.pdf of Pontiac Trail sidewalk special assessment area]

Sidewalk/Pedestrians: Stone School Sidewalk

The council has previously directed the preparation of a special assessment roll for a new sidewalk along the west side of Stone School Road. This work will be done in conjunction with the Stone School Road reconstruction project from I-94 to Ellsworth Road. The total sidewalk project cost is roughly $128,500, of which about $55,000 will be special assessed. So the requested action of the council on June 16 will be to set a public hearing on the special assessment for July 7.

Sidewalk/Pedestrians: Barton Drive Sidewalk – Public Hearing

The sidewalk on Barton Drive would extend eastward from Bandemer Park at Longshore Drive. The cost of the Barton Drive sidewalk has been calculated to be $80,606. Of that, about $36,000 will be paid from federal surface transportation funds. Of the remaining $44,606, the city’s general fund would pay $42,626, leaving just $1,980 to be paid through the special assessment. The city council had voted at its May 19, 2014 meeting to set the assessment roll and to schedule the public hearing for June 16.

Sidewalk/Pedestrians: Scio Church Sidewalk – Public Hearing

Another public hearing based on previous council action at its May 19 meeting will be held at the June 16 meeting – on the special assessment to fund construction of a sidewalk on Scio Church Road. For the Scio Church sidewalk project, the total cost is expected to be $365,100. Of that, about $164,000 will be paid from a federal surface transportation grant. The remaining $201,100 will be paid out of the city’s general fund and by the special assessment of just $1,626.

Sidewalk/Pedestrians: Larchmont Traffic Calming

The council will be asked to approve a traffic calming project on Larchmont Drive at a cost of $55,000 $8,800.

Larchmont traffic calming proposal: Three speed humps.

Larchmont traffic calming proposal: Three speed humps.

The action includes an appropriation for five other traffic calming projects, totaling $55,000.

The approval of this project comes in the context of the council’s budget deliberations last month, when an amendment was offered but rejected by the council that would have cut the FY 2015 budget allocation for art administration from $80,000 to $40,000 and put the $40,000 is savings toward traffic calming projects. The amendment got support only from Sumi Kailasapathy (Ward 1), Jane Lumm (Ward 2), Jack Eaton (Ward 4), and Mike Anglin (Ward 5).

Traffic calming projects must undergo a neighborhood engagement process in which at least 60% of households support the designed project. In the case of the Larchmont project, 13 out of 15 households supported the project.

Sidewalk/Pedestrians: Pedestrian Task Force Consultant

The council will be asked to approve a $75,000 contract with The Greenway Collaborative Inc. to support the work of the pedestrian safety and access task force as a facilitator. The task force was established through a council resolution passed on Nov. 18, 2013. Confirmed as members of the task force on Jan. 21, 2014 were: Vivienne Armentrout, Neal Elyakin, Linda Diane Feldt, Jim Rees, Anthony Pinnell, Sarah Pressprich Gryniewicz, Kenneth Clark, Scott Campbell, and Owen Jansson.

The group has begun to meet and has elected Feldt to chair the task force. The resolution on the council’s June 16 meeting agenda comes after the council voted down a resolution at on April 7, 2014 that included a $77,400 contract with Project Innovations for the facilitation work. Project Innovations had been identified by staff as a contractor uniquely qualified to do the facilitation work. Project Innovations was familiar to city staff as the facilitator for a sanitary sewer wet weather evaluation study the city is currently conducting.

But subsequently the city issued an RFP (requests for proposals) for the facilitation work. [.pdf of RFP No. 893] Task force members participated in the selection process from among three respondents to the RFP. Besides Project Innovations and the Greenway Collaborative, ENP & Associates responded to the RFP. ENP is the consultant the city used for the recent review of downtown zoning.

Business Services

On the council’s agenda are two contracts that are approved annually – one for business development services and one for lobbying services.

Business Services: Ann Arbor SPARK

As part of its consent agenda, the council will be asked to approve a $75,000 contract with Ann Arbor SPARK for economic development services. This is an annual contract. At its May 19, 2014 meeting, the council spent roughly five hours of deliberations on amendments to the FY 2015 budget, and just under 30% of that time was spent on two amendments involving SPARK – neither of which were approved by the council.

Ann Arbor City Council Budget Deliberations FY 2015: 4 Hrs 45 Min by Amendment Topic

Ann Arbor city council budget deliberations FY 2015: 4 hours 45 minutes by amendment topic.

SPARK is also the entity with which the local development finance authority (LDFA) contracts for business accelerator services. One of the proposed amendments to the FY 2015 budget would have decreased the amount of funding to SPARK from the LDFA, resulting in an increase to the amount the LDFA would have reserved for future infrastructure projects. The second budget amendment debated on May 19 would have eliminated the $75,000 in the FY 2015 budget for the contract the council will be asked to approve as part of its June 16 agenda.

Ann Arbor SPARK also receives money from other governmental units in Washtenaw County. In 2013, the $75,000 paid by the city of Ann Arbor to SPARK accounted for more than half of the $132,888 total contributed by all governmental units besides Washtenaw County. The county levies a tax under Act 88, and out of that levy, last year the county contributed $200,000, according to the information provided to the city by SPARK. [.pdf of 2013 "return on investment" from Ann Arbor SPARK] [.pdf of 2013 Ann Arbor SPARK projects]

Business Services: GCSI Lobbying

As a part of its consent agenda, the council will be asked to approve a $48,000 contract with Governmental Consultant Services Inc. for lobbying services. According to the memo accompanying the item, GCSI has contributed to Ann Arbor’s efforts to increase state funding for fire protection, land-use planning, and parks and recreation projects.

GCSI is also supposed to monitor issues currently pending before the legislature and advocate for the city’s specific interests. GCSI has done this kind of work for the city of Arbor since 2001. GCSI also provides lobbying services for Washtenaw County, as well as other local municipalities. The city’s main liaison with GSCI is Kirk Profit, an Ann Arbor resident and former Michigan state legislator.

Downtown

The council will be handling several items on its June 16 agenda that relate to the Ann Arbor Downtown Development Authority specifically, or the downtown area generally.

Downtown: DDA Budget Amendment

The council will be asked to approve a routine fiscal-year-end budget adjustment for the Ann Arbor DDA. The DDA board approved the adjustment at its June 4, 2014 meeting. The main part of the adjustment is a $1.6 million payment made for the First & Washington parking garage, which is part of the City Apartments project. The amount was budgeted by the DDA for last year, but not paid until this year.

The rest of the adjustment is attributable to expenditures out of the DDA’s housing fund – $500,000 of it to support Ann Arbor Housing Commission projects. The remaining $37,500 went to support a countywide housing needs assessment – an amount that was approved by the board at the same June 4 meeting in a separate vote. The DDA will end the fiscal year with $6,167,757 in fund balance. The breakdown of that total is: TIF ($619,571); Housing ($160,154); Parking ($2,161,676) and Parking Maintenance ($3,226,356).

Downtown: Affordable Housing Needs Assessment

The council will be asked to authorize $37,500 from the affordable housing trust fund to support the Washtenaw County housing needs assessment. The Ann Arbor DDA had approved the same amount at its meeting on June 4, 2014. Money from the city and DDA is being considered as “up to” amounts. Mary Jo Callan, director of the county’s office of economic and community development (OCED), told the DDA board at its June 4 meeting that $75,000 from a HUD Sustainable Communities grant would be the first money spent toward the assessment.

The firm selected by the OCED to do the needs assessment is czb LLC out of Virginia. [.pdf of RFP for the needs assessment] The current needs assessment will update a report done in 2007. According to a memo from OCED staff to the DDA, the final report will “provide a clear, easy to understand assessment of the local housing market, identify current and future housing needs, and provide specific and implementable policy recommendations to advance affordable housing.

The goal for this update is to include an analysis that links transportation cost and accessibility, as well as other environmental and quality of life issues to the location of affordable housing.” The RFP for the needs study describes the timeline for the work as including a draft for review due at the end of October 2014, with a final presentation due in mid-December.

(Not) Downtown: Streetlight LED Conversion

As part of its consent agenda, the council will be asked to approve a purchase agreement with DTE to convert 223 mercury-vapor cobrahead streetlights to LED technology. The up-front cost of the conversion will be $69,555 – but that amount will be reduced to $55,060 after rebates. The annual electric bill from DTE for the 223 streetlights is currently $45,128. After conversion, the projected annual cost will be $30,910. The savings would result in about a 3.1-year payback period on the net cost of $55,060.

None of the streetlights to be converted are in the DDA district. Streetlights in the DDA district were part of a similar proposal considered by the DDA board at its May 7, 2014 meeting, but postponed by the board at that meeting until June 4. By the time of the June 4 meeting, however, a decision had already been made that the DDA would not be funding an LED conversion this year. [DTE's program has an annual cycle, but is not necessarily offered every year.] If the DDA board had approved funding for converting lights in the DDA district, it would have affected 212 non-LED streetlights.

Streetlight locations are mapped in the joint Washtenaw County and city of Ann Arbor GIS system. Data available by clicking on icons includes ownership as well as the lighting technology used. This one is a high pressure sodium light operating at 400 watts.

Streetlight locations are mapped in the joint Washtenaw County and city of Ann Arbor GIS system. Data available by clicking on icons includes ownership as well as the lighting technology used. This one is a high pressure sodium light operating at 400 watts.

The project the DDA declined to fund this year would have included converting 100 watt MV (mercury vapor), 175 watt MV and 100 watt HPS (high pressure sodium) lights to 65 watt LED (light emitting diode). Further, 400 watt MV and 250 watt HPS lights would have been converted to 135 watt LED. Finally, 1000 watt MV and 400 watt HPS lights would have been converted to 280 watt LED. Currently, the city pays DTE $72,585 a year for the energy used by the 212 downtown streetlights. After conversion, the annual cost for the 212 lights would be expected to drop to $51,895, for an annual savings of $20,690.

In deliberations at the DDA board’s May 7 meeting, DDA board member Roger Hewitt opposed the grant, because the savings that would be realized accrues to the city of Ann Arbor, which pays the energy bills for the lights. Hewitt noted that the relationship between the city and the DDA includes a number of fund transfers to the city. Even though the amount is not huge, Hewitt said, the expenditure of several small amounts could eventually impair the DDA’s ability to pay for major infrastructure improvements.

Other board members joined Hewitt in their concerns, questioning what projects might be sacrificed if the DDA paid for the LED conversion. Concern was also expressed over the possibility that the result of a streetscape framework planning effort could result in a decision to replace all cobrahead lights in the downtown area with pedestrian-scale lampposts. And that would mean that the new LED fixtures would be used for only a short while.

Downtown: Zoning, Character District

The council will be asked to give initial approval to changes in two parts of the zoning code affecting the parcel at 425 S. Main, on the southeast corner of Main and William streets. Because these would be changes to the zoning code, which is expressed in city ordinances, any council action that might be taken would need a second and final vote at a future meeting, in order to be enacted.

425 South Main, Ann Arbor planning commission, The Ann Arbor Chronicle

Aerial view of 425 S. Main – outlined in green – between William and Packard. An alley separates the site from a residential neighborhood along South Fourth Avenue.

Currently, a two-story 63,150-square-foot office building – where DTE offices are located – stands on the southern part of that site, with a surface parking lot on the north portion. [.pdf of staff memo on 425 S. Main rezoning]

To be considered separately by the city council are votes that would: (1) change the zoning of the parcel from D1 (downtown core base district) to D2 (downtown interface base district); and (2) change the character overlay district, of which the parcel is a part, to increase the D2 height limit from 60 feet to 100 feet. Assuming the zoning change is made for the parcel at 425 S. Main, it would be the only D2 parcel in the character district. The changes to the character overlay district also include upper story setbacks from any residential property. [.pdf of staff memo on overlay district]

The planning commission recommended both the changes at its May 6, 2014 meeting. The planning commission’s vote on the basic zoning change was unanimous – 9-0. But the vote on the 100-foot height limit was only 6-3, with dissent coming from Sabra Briere, Ken Clein and Jeremy Peters. Briere also serves on city council, representing Ward 1. Both recommendations had been brought forward by the commission’s ordinance revisions committee (ORC). Members are Bonnie Bona, Diane Giannola, Kirk Westphal and Wendy Woods.

The planning commission’s recommendations came in response to a city council directive given at its Jan. 21, 2014 meeting, which had been based on previous work the planning commission had done. The commission had studied and developed a broader set of eight recommendations for zoning changes in specific parts of the downtown. The overall intent was in large part to buffer near-downtown residential neighborhoods. The commission had unanimously approved those original recommendations at its Dec. 3, 2013 meeting.

Those initial Dec. 3, 2013 recommendations from the planning commission had come in response to a previous direction from the city council, given at the council’s April 1, 2013 meeting. The council’s action in early 2013 came in response to the controversial 413 E. Huron development.

The items on the council’s June 16, 2014 agenda are just the first of what are expected to be several other changes recommended by the planning commission. That set of initial recommendations from the planning commission to the city council – which the council then accepted and for which the council asked the planning commission to draft ordinance language – included a proposal to rezone 425 S. Main to D2. However, those original recommendations had also called for a maximum height of 60 feet for D2 zoning in the Main Street character overlay district – lower than the 100 feet put forward at the commission’s May 6 meeting.

The site’s current zoning allows for a maximum height of 180 feet. The previous zoning, prior to 2009, set no limits on height. At this time, no new development has been proposed for this site.

Downtown: Hotel Site Plan

The city council will be asked to approve the site plan for First Martin’s proposed extended-stay hotel at 116-120 West Huron Street. The planning commission gave a recommendation of approval at its May 20, 2014 meeting.

First Martin Corp., Ann Arbor planning commission, The Ann Arbor Chronicle

Rendering of proposed hotel at the northeast corner of West Huron and Ashley. The One North Main building is visible to the east.

The proposal calls for a six-floor, 88,570-square-foot building with a ground-floor restaurant or retail space and an extended-stay hotel on the upper five levels. The hotel will be operated by Marriott.

The current site at 116-120 W. Huron includes a Greyhound bus depot and a one-story building that houses the Ann Arbor Convention & Visitors Bureau. Both of those buildings will be demolished. The bus depot facade will remain in place as part of the new building’s design. [.pdf of staff report]

The main hotel entrance is proposed for the building’s west side, facing North Ashley, while the main entrance for the restaurant or retail space is proposed to face West Huron, on the building’s south side. The site is zoned D1, which allows for the highest density development in the downtown. According to the staff memo, five off-street parking spaces are required.

First Martin has secured a letter of commitment from Zipcar, a car-sharing service, for two vehicles. Parking spaces for those cars are proposed at the northeast corner of the site. For purposes of the city’s parking requirement, the two Zipcars would count as eight off-street parking spaces, and would satisfy the requirement. The two existing curbcuts – on North Ashley and West Huron – will be closed, and access to the two parking spaces, loading dock and trash/recycling would be from the mid-block alley to the north. The alley is currently one-way, and will be converted to a two-way alley and repaved.

116-120 W. Huron, First Martin Corp., Ann Arbor planning commission, The Ann Arbor Chronicle

The current site at 116-120 W. Huron, looking north. One North Main is the building on the right. The city’s Ann Ashley parking structure is visible in the background.

Streetscape changes will include curb bump-outs on North Ashley, on the north and south ends of the site for passenger drop-off. Nine bicycle parking spaces are required for the project, and would include two bike hoops in the North Ashley right-of-way and two in the West Huron right-of-way, for a total of eight bike spaces. Three more hoops are proposed for the Ann Ashley parking structure, with First Martin paying for labor and materials. The city of Ann Arbor and Downtown Development Authority would assume responsibility for maintenance of those hoops.

Construction is estimated to cost $13 million. In giving the staff report to the planning commission, city planner Alexis DiLeo noted that the Greyhound bus depot has been at that location since 1940, and the site has been a transportation hub since 1898.

Downtown: Bank of Ann Arbor Site Plan

The city council will be asked to approve the site plan for an addition to the Bank of Ann Arbor headquarters at 125 South Fifth Avenue. The planning commission recommended approval of the project at its May 20, 2014 meeting.

The site plan involves reorienting the main entrance – moving it from the center of its South Fifth Avenue side to the southeast corner of South Fifth and East Washington. Existing doors will be replaced with windows. A 9,179-square-foot third-floor addition would be constructed over the rear of the building’s east side. In total, the building would be 32,651 square feet after construction. The project is estimated to cost $4.2 million. [.pdf of staff memo]

Bank of Ann Arbor, Ann Arbor planning commission, The Ann Arbor Chronicle

Bank of Ann Arbor building at the northeast corner of South Fifth and East Washington. The proposed renovations will create a “tower” entrance into the building at this corner.

According to the staff memo, the design “seeks to transform the current style from contemporary to traditional by replacing the yellow brick façade with brown and red-colored bricks and limestone-colored stone accents and trim and creating a brick and glass tower at the street corner to create a prominent entry.”

The original two-story building was constructed in 1965, which included the drive-thru window. An addition was completed in 1999. The project was evaluated by the city’s design review board on Jan. 14. The board suggested making the entry structure taller and more closely aligning the bank’s design features with those of the adjacent Ameritech building to the east.

The site is zoned D1, which allows for the highest level of density in the downtown area. D1 zoning requires a special exception use for drive-thrus, which the planning commission considered on May 20 in a separate vote. Because the project is going through a site plan approval process, the requirement for a special exception use was triggered. Special exception uses do not require additional city council approval.

The bank has an existing drive-thru teller window on its north side. No changes are planned to that configuration, however. In giving the staff report to the planning commission, city planner Alexis DiLeo said if the drive-thru were used more frequently, staff might suggest additional design features, like a more clearly marked crossing or differentiated surface materials. But because there are only 20-25 transactions per day at the drive-thru, and given the “successful history” of the existing drive-thru, staff was comfortable with it remaining as is, DiLeo said.

Modifications to drive-thru regulations are in the works, but not yet enacted. The planning commission approved new drive-thru regulations earlier this year. Amendments to Ann Arbor’s zoning ordinance related to drive-thrus received initial approval at the council’s May 5, 2014 meeting, and received final approval at the council’s June 2, 2014 meeting.

Downtown: Liberty Plaza

Mayor John Hieftje and Christopher Taylor (Ward 3), joined by Margie Teall (Ward 4) and Sabra Briere (Ward 1), are sponsoring a resolution that would direct the city administrator to “work collaboratively with the property owners adjacent to and near Liberty Plaza, the general public, PAC [park advisory commission], the Ann Arbor District Library, and the DDA to develop a conceptual design for an improved Liberty Plaza…”

Funding for the collaborative work in the amount of $23,577 would come from the parks and recreation budget. In addition to a concept for a “re-imagined Liberty Plaza,” the effort is supposed to result in options for funding construction, to be provided by city staff. A report is to be provided to the park advisory commission by December 2014 and to the city council a month later in January 2015.

This resolution comes in the context of a push by some Ann Arbor residents to establish public park space on top of the underground Library Lane parking garage, which is southwest of Liberty Plaza separated from that park by a surface parking lot owned by First Martin Corp. Related to that, the council voted at its April 7, 2014 meeting – as part of reconsidering a vote it had taken at its previous meeting on March 17 – to designate a 12,000-square-foot portion of the Library Lane surface to be reserved as an urban park.

The result of the reconsidered resolution on April 7 undid the council’s earlier decision to establish a square foot range for the urban plaza – from 6,500-12,000 square feet. That April 7 council decision was made on a 7-4 vote, with dissent from Taylor, Hieftje, Teall and Chuck Warpehoski (Ward 5).

Courts Human Services

On the council’s June 16 agenda are several items related to the criminal justice system, specifically for some of the specialty courts operated by the 15th District Court. As part of its consent agenda, the council will be asked to approve an amendment to a $76,242 contract with Washtenaw County Community Support & Treatment Services – for mental health treatment services to people who are participating in the sobriety court and the mental health court.

Also on the consent agenda, the council will be asked to approve a $44,200 amendment to a contract with the Washtenaw County sheriff’s office to provide drug abuse screening and monitoring services for the mental health court. The council will be asked to approve a $108,174 amendment to a contract with the nonprofit Dawn Farm for drug abuse counseling and rehabilitative services.

And finally, the consent agenda includes a resolution for a $40,000 amendment to a contract with Reiser and Frushour PLLC to provide legal representation as court-appointed counsel to indigent defendants.

Recycling

The council’s June 16 agenda includes three items related to recycling.

Recycling: RAA Multifamily Pilot

The council will be asked to approve a two-year $95,694 contract with Recycle Ann Arbor for a recycling incentive program for multi-family residential units. This item is based on the city’s solid waste plan, which the city council adopted at its Oct. 7, 2013 meeting.

The plan includes evaluating methods to increase recycling participation through pilot programs. Among those methods is the introduction of a recycling incentive program for multi‐family housing units. According to the staff memo accompanying this item, a manual sort of waste conducted in the fall of 2012 found that only 12% of the trash that single-family residents threw away was recyclable, compared to 26% of the trash that multi-family residents threw away. The completion of the pilot program is expected in December 2016. According to the memo, Recycle Ann Arbor’s proposal includes:

  1. Gather information on best multi-family recycling practices in North America.
  2. Survey and/or interview key multi-family constituencies in Ann Arbor to better understand the challenges and opportunities for recycling in this sector. Based on feedback received, develop 3 to 5 methodologies for further testing and analysis.
  3. Identify pilot parameters and measurement protocols.
  4. Identify pilot communities to involve in the pilot programs (ultimately targeting approximately 1,000 units) and ramp up pilot start-up.
  5. Implement pilot programs.
  6. Analyze results of pilot programs.
  7. Provide detailed recommendations to the City on best practices and report results to participating multi-family communities.

Methodologies that will be tested as part of the pilot will include the following:

  • Recycling rewards program: Evaluate if a recycling rewards program would be effective in improving recycling participation rates in multi-family locations
  • Indoor collection bins: Most multi-family locations share outdoor recycling bins. Determine if the provision of indoor recycling bins would help increase recycling rates.
  • Multi-family recycling leader program: Determine if the use of recycling leaders at individual locations would help increase recycling rates.
  • 300-gallon recycling cart: Determine if the use of 300-gallon carts instead of the standard 96-gallon cart would help increase recycling.

Recycling: Baler Infeed Conveyor Repair

The council will be asked to approve a $39,480 reimbursement to Resource Recovery Systems – the city’s contracted operator of its materials recovery facility (MRF) – for repair of the baler infeed conveyor belt. According to a staff memo accompanying the item, the belt was last replaced in 2007, and has worn out. Such conveyors are described in the memo as lasting five to seven years.

Recycling: RAA Student Move-out Services

As part of its consent agenda, the council will be asked to approve a $35,000 annual contract with Recycle Ann Arbor for services associated with the move-out of University of Michigan students.

According to the staff memo on the item, RAA’s proposal includes a staffed drop-off location at the corner of Tappan and Oakland streets during student fall and spring move-out periods. The site is also used to collect reusable items (through organizations such as the Salvation Army, Kiwanis, or the Reuse Center), bulky metal items, and recyclable materials.

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4:10 p.m. Staff responses to councilmember questions about agenda items. [.pdf of staff responses to June 16, 2014 agenda questions]

6:14 p.m. Paul Fulton of the city’s IT department is setting up the laptop with the Historic District Commission awards presentation. Thomas Partridge has already arrived.

6:48 p.m. Eppie Potts, who’s receiving the Preservationist of the Year Award tonight from the Historic District Commission, has arrived. She quips: “Usually I’m here to yell at them!”

7:08 p.m. The only councilmember not yet arrived is Chuck Warpehoski (Ward 5). Mayor John Hieftje is here, but he seems to have stepped away for a bit. We’re basically ready to go.

7:09 p.m. Warpehoski is now here.

7:10 p.m. Call to order, moment of silence, pledge of allegiance. And we’re off.

7:10 p.m. Approval of agenda. All are present and correct.

7:11 p.m. Approval of agenda. Jane Lumm (Ward 2) wants to note that there will be a resolution added on the settlement on the Goldstone case. City attorney Stephen Postema says it can go at the end.

7:11 p.m. Outcome: The council has voted to approve the agenda.

7:13 p.m. Communications from the city administrator. Steve Powers is thanking Chief John Seto for the Ann Arbor police department and Ann Arbor fire department event on Saturday, recognizing public safety officers for their bravery and service. He thanked Seto for the open house, where equipment was demonstrated. He’s announcing the grand opening of the skatepark on June 21. He’s thanking residents for their patience as the city rolls out its street reconstruction projects for the season.

7:14 p.m. INT-1 Introduction of Ann Arbor Police K-9 Murray and Officer Pat Maguire. Murray, the dog, is named after Vada Murray, an Ann Arbor Police Department officer who passed away a few years ago. His wife and children are in attendance.

7:15 p.m. Chief Seto is introducing Officer Maguire and K-9 Murray. The pair earned distinction in a recent trials competition.

7:16 p.m. INT-2 Presentation of Historic District Commission annual awards. This is the 30th annual presentation of the awards.

7:18 p.m. Tom Stullberg, chair of the HDC, is giving the presentation.

7:18 p.m. Rehabilitation Awards are presented in recognition of substantial work that returned a property to a state of utility through repair or alteration, facilitating contemporary needs but respecting the features of the property that are significant to its historic and architectural values.

7:18 p.m. University of Michigan For East Quad. Details: Built in 1940; $116 million renovation; replaced slate roof, restored leaded glass, replaced window glazing, restored exterior walls; repaired wood paneling and fireplaces in main floor lounges.

7:19 p.m. University of Michigan for Munger Residences, formerly called the Lawyers Club. Details: Built between 1923 and 1933; $39 million renovation; upgraded infrastructure, replaced slate roof (reusing many original pieces), repaired exterior masonry; added two elevators without compromising historical integrity.

7:19 p.m. Jim Kosteva, UM director of community relations, is on hand to accept the awards on behalf of UM.

7:20 p.m. Preservation Awards are presented in recognition of superior maintenance of a significant property to preserve its essential historical, cultural or architectural value for a period of 10 years or more.

7:20 p.m. Susan and Martin Hurwitz for 1520 Cambridge 1520 Cambridge. Details: Built in 1913 for Max and Clemence Winkler; Colonial Revival; round topped windows, classical surround of pilasters and broken pediment, prominent modillions; owned and maintained by Susan and Martin Hurwitz since 1991.

7:20 p.m. Kappa Alpha Theta (Eta Chapter): 1414 Washtenaw. Details: Built in 1867 for Dr. Silas Pratt; Colonial Revival; remodeled by Louis H. Boynton when purchased by Kappa Alpha Theta in 1916; one of the first Greek letter organizations to locate on Washtenaw; received State of Michigan Historic Designation in 1983.

7:21 p.m. First Presbyterian Church for 1432 Washtenaw. Details: Built in 1938; Gothic Revival in the English Country style; renovations in 1956 and 1998; Lancet windows with stained glass, buttresses, steep slate roof; stand of mature trees leading to main entry are remnants of the “picnic grove” that surrounded home at the previously occupying site.

7:21 p.m. Ann Arbor City Club for 1830 Washtenaw. Details: Built in 1888 by Evart Scott as farmhouse; remodeled into Colonial Revival home by Louis H. Boynton when purchased in 1917 for Dr. R. Bishop Canfield; purchased by Ann Arbor Women’s City Club in 1951 and remodeled into clubhouse; 1962 addition designed by Ralph Hammett.

7:22 p.m. Ken Wisniski and Linda Dintenfass for 13 Regent Drive. Details: Designed by local architect David Osler in 1964 for William and Margaret Mundus; Mid-Century Modern; five levels, mostly hidden from public view; renovation by Stan Monroe in 2012 to change third level into master bedroom and rebuild five decks; owned and maintained by Ken Wisniski and Linda Dintenfass since 1999.

7:23 p.m. Howard Shapiro for 7 Regent Drive. Details: Designed by Alden Dow in 1964 for Joe Morris; three levels, views the Arb; flat roof with flared edges on the west, resembles three boxes with a hidden entry; influenced by Frank Lloyd Wright (Dow studied at Taliesin in the 1920s); owned and maintained by Dr. Howard Shapiro since 2002.

7:23 p.m. Margaret Bignall and Paul Hossler for 1448 Broadway. Details: Built in 1852 by John Lennon; Greek Revival; typical early 19th century settler house; 950 square feet, 1½ story, side gable; small, historic barn behind house; owned and maintained by Margaret Bignall and Paul Hossler since 1980.

7:24 p.m. Carol and Robert Mull for 1111 Fair Oaks. Details: Designed in 1916 by Fiske Kimball for James N. and Clara Petrie; inspired by Monticello and the White House; irregular floor plan: round rooms in center and rectangular rooms on sides; Ives Woods/Burns Park neighborhood; owned and maintained by Carol and Robert Mull since 1979.

7:25 p.m. Stone School Cooperative Nursery for 2811 Stone School. Details: Built in 1911 as a rural schoolhouse; incorporated materials from 1853 schoolhouse previously on site; original foundation stone and school bell and belfry; purchased and restored in 1995 by the Stone School Cooperative; listed on National Register of Historic Places in 1995.

7:25 p.m. John Hollowell for 844 W. Huron. Details: Built in 1872 by William H. Mallory; Gothic Revival; two porches, two bay windows, eared trim with elaborate scroll details; 1890s Victorian lamp posts from Belle Isle; Old West Side; owned and maintained by John Hollowell since 1970s.

7:26 p.m. Steve Sivak for 1158 Pomona. Details: Built in 1955 for Joseph and Emma Albano; Mid-Century Modern; long, low lines, prominent carport, exposed rafters, vertical cedar siding, flat roofs; large expanses of window glass on the sides, blank façade offering privacy from the street; owned and maintained by Steve Sivak since 1995.

7:27 p.m. Akhavan Rayhaneh for 2022 Delafield. Details: Built in 1958 by James P. Wong for Richard Hadden; “Bonnet house”; Mid-Century Modern; steeply pitched gable in front, floor to ceiling windows form part of façade, overhang has exposed rafters; owned and maintained by Akhavan Rayhaneh since 1989.

7:27 p.m. Special Merit Awards are presented in recognition of exceptional people, projects, landscapes or other unique preservation projects.

7:28 p.m. Susan Wineberg and Patrick McCauley: Authors of “Historic Ann Arbor: An Architectural Guide”; describes over 350 Ann Arbor buildings; includes 40 University of Michigan buildings; four years researching, documenting, photographing, and writing; valuable resource to anyone interested in architecture or history of Ann Arbor.

7:28 p.m. Preservationist of the Year is presented to an individual who has provided the city of Ann Arbor with exemplary services in the pursuit of historic preservation, incentives, and/or education.

7:28 p.m. Ethel K. Potts is the 2014 Preservationist of the Year. Details: attended the University of Michigan; served on city’s zoning board of appeals and the planning commission; advocate for historic preservation; mentor to future preservationists; “This city means a lot to me, its buildings and history must be maintained for generations to come.”

7:30 p.m. Potts is getting an enthusiastic ovation from the audience and councilmembers.

7:30 p.m. Recess. We’re in a short recess so that the awardees can exit.

7:37 p.m. We’re back.

7:37 p.m. Public Commentary reserved time. This portion of the meeting offers 10 three-minute slots that can be reserved in advance. Preference is given to speakers who want to address the council on an agenda item. [Public commentary general time, with no sign-up required in advance, is offered at the end of the meeting.]

Two people are signed up to talk about the $75,000 contract with The Greenway Collaborative to support the work of the pedestrian safety and access task force, both of them members of the task force: Vivienne Armentrout and Linda Diane Feldt. Three people are signed up to talk about the $75,000 contract with Ann Arbor SPARK: Kai Petainen, Jeff Hayner and Dave DeVarti. Hayner’s second topic is the East Stadium bridges art installation. Thomas Partridge is signed up to talk about improved affordable housing and economic development.

7:40 p.m. Vivienne Armentrout is a member of the pedestrian safety and access task force. She’s asking the council to approve the contract with The Greenway Collaborative. It’s already in the FY 2014 budget, so it’s “not new money,” she says. She says the task force is “itching” to take on its task. The task force needs the council’s support now, to continue its work – the task force has met three times so far. Armentrout is reviewing the responsibility the council gave the task force. She’s describing how some members of the task force participated in the selection of the facilitator, from the three who responded to the city’s RFP. [.pdf of Armentrout's remarks]

7:41 p.m. Kai Petainen is reading the following statement aloud: [Petainen public comment] [Ann Arbor SPARK 2013 annual report] and [21st Century Jobs Trust Fund 2013 Annual Report]

7:46 p.m. Linda Diane Feldt is a member of the pedestrian safety and access task force – and she was elected chair of the group. She’s thanking the council for appointing her to the task force. She’s asking for the council’s support – in the form of approving the $75,000 contract with The Greenway Collaborative. She’d participated in the selection process of the consultant, she says. The process that will unfold will involve thousands of volunteer hours, she notes. The value of the work will far exceed the value of the contract, she says. The task force has already dived into its work. She’s noting that The Greenway Collaborative is a local firm with excellent qualifications.

7:49 p.m. Jeff Hayner says that the spirit of economic development is alive and well. There are many partners in this effort, including the UM Tech Transfer Office. He’s criticizing Ann Arbor SPARK for high salaries, but says they’re not using income for terrorist activities. He says that SPARK has misrepresented its results. He suggests revising the resolution to reduce the $75,000 to just 10% of that figure.

7:51 p.m. David DeVarti is a former city councilmember and former member of the Ann Arbor Downtown Development Authority board. He’s speaking against the funding for SPARK, asking the council to deny it or table it. He allows that as a DDA member he had voted for money for SPARK. He’d been disappointed by what SPARK had produced, but he’d gone along to get along with mayor John Hieftje and with Bob Guenzel. He points out that $75,000 could go a long way for a human services agency. He asks that the council hold Ann Arbor SPARK to the same kind of standards as it does the human services agencies it has contracts with. That would create a real sense for the council for what SPARK is failing to provide in terms of documentation.

7:54 p.m. Thomas Partridge introduces himself as a resident of Ward 5 as well as recent candidate for various public offices. He calls for improved funding for affordable housing and economic development. He wants the council to take direct responsibility for funding the elimination of homelessness and measurably increasing the amount of funding available for affordable housing.

7:59 p.m. Communications from council. This is the first of two slots on the agenda for council communications. It’s a time when councilmembers can report out from boards, commissions and task forces on which they serve. They can also alert their colleagues to proposals they might be bringing forward in the near future.

7:59 p.m. Sally Petersen says that the LDFA board will be discussing an independent audit of the SmartZone at its meeting tomorrow at 8:30 a.m. She also notes that the LDFA board has heard the council’s interest in seeing investments in infrastructure.

7:59 p.m. Kunselman is talking about the activity of the nuisance committee, of which he’s the only member. He’s also explaining his research on the DDA terms. Attached to the agenda are old DDA records Stephen Kunselman (Ward 3) retrieved from the University of Michigan Bentley Library. [link]

8:03 p.m. Kunselman is now talking about the issue of TIF refunds that were made by the DDA in the early 1980s. He’s now talking about the DDA’s development plan and the requirements for that plan in the statute. He’s calling for the council to work with the DDA to work on a new development plan. He’s pointing out that the city administrator is the city’s representative on the DDA board. He said he’s told city administrator Steve Powers that he expects the DDA will be following the law.

8:04 p.m. Sumi Kailasapathy (Ward 1) is alerting people to the removal of some stop signs on Nixon Road near Green and Dhu Varren. This is a temporary measure related to nearby construction. She asks people to be careful. Jane Lumm (Ward 2) is now talking about the same stop sign removal issue. There will be additional police enforcement, she says.

8:05 p.m. Margie Teall (Ward 4) announces that the Michigan Theater has agreed to purchase the State Theater.

8:07 p.m. Mike Anglin (Ward 5) is announcing that the environmental commission had three vacancies. There were 10 applicants. He says that tonight Allison Skinner, Benjamin Muth and Mark Clevey are being presented as candidates to serve on the city’s environmental commission. The vote on their appointments will be at the council’s July 7, 2014 meeting.

8:08 p.m. MC-1 Confirmation of June 2, 2014 nominations. Nominated at the council’s June 2, 2014 meeting for reappointment to the city planning commission were Wendy Woods and Eleanore Adenekan. Nominated at that meeting for reappointment to the commission on disability issues were Linda Evans and Larry Keeler. Those confirmations are being voted on tonight.

8:08 p.m. Outcome: The council has voted to confirm the appointments.

8:08 p.m. MC-2 Nominations. Audrey Wojtkowiak is being nominated to the board of the Ann Arbor Housing Commission to fill the vacancy left by Christopher Geer. The vote on her confirmation will come at the council’s next meeting.

8:10 p.m. Mayor John Hieftje is reviewing the awards to firefighters and police officers that were made last Saturday.

8:12 p.m. Hieftje is reviewing the last winter and the work that human service agencies did. He’s worried about the capacity for that work if the winter is as back next year.

8:08 p.m. MC-1 Confirmation of June 2, 2014 nominations. Nominated at the council’s June 2, 2014 meeting for reappointment to the city planning commission were Wendy Woods and Eleanore Adenekan. Nominated at that meeting for reappointment to the commission on disability issues were Linda Evans and Larry Keeler. Those confirmations are being voted on tonight.

8:08 p.m. Outcome: The council has voted to confirm the appointments.

8:08 p.m. MC-2 Nominations. Audrey Wojtkowiak is being nominated to the board of the Ann Arbor Housing Commission to fill the vacancy left by Christopher Geer. The vote on her confirmation will come at the council’s next meeting.

8:10 p.m. Mayor John Hieftje is reviewing the awards to firefighters and police officers that were made last Saturday.

8:12 p.m. Hieftje is reviewing the last winter and the work that human service agencies did. He’s worried about the capacity for that work if the winter is as bad next year.

8:14 p.m. Public Hearings. All the public hearings are grouped together during this section of the meeting. Action on the related items comes later in the meeting. On tonight’s agenda are five hearings:

8:15 p.m. PH-1 Anderson-Pebbles annexation. Thomas Partridge says that the property should be required to have access to public transportation.

8:16 p.m. That’s it for this public hearing.

8:19 p.m. PH-2 Bank of Ann Arbor addition. Ray Detter is expressing support for this project. It takes a building that has been criticized as being “suburban” and making it an asset, instead of building something that is 180 feet tall, even though the site’s zoning would allow for that.

8:20 p.m. Thomas Patridge is advocating for a requirement that access for public transportation be provided at the site. The bank should be a good corporate citizen and give priority to considerations like that.

8:21 p.m. Edward Vielmetti is pointing out that the current site has Juneberry trees that are just now becoming ripe, and they are delicious. He hopes that the site after renovation will also have good landscaping.

8:22 p.m. PH-3 116-120 West Huron site plan. Ray Detter is expressing support for the project. He notes that a part of the project will preserve the facade of the bus depot.

8:22 p.m. PH-4 Scio Church sidewalk assessment. No one speaks during this public hearing.

8:26 p.m. PH-5 Barton Drive sidewalk assessment. Jeff Hayner says this is his neighborhood. He thanks everyone in the room and in the neighborhood who came together to get this done. It’s been at least 12 years in the works, he says. He encourages the pedestrian task force to take a look at the area. He’s questioning the cost for the project, however. It would have a long-term positive impact, he said. No offense to the public art commission, he says, but the council will be voting on $350,000 for decorative elements on the East Stadium bridges, when the approach to the bridge is in terrible shape.

8:26 p.m. Council minutes. Outcome: The council has voted to approve the minutes of the previous meeting.

8:26 p.m. Consent Agenda. This is a group of items that are deemed to be routine and are voted on “all in one go.” Contracts for less than $100,000 can be placed on the consent agenda. This meeting’s consent agenda includes:

  • CA-1 Approve DTE LED Conversions ($69,555/$55,060 after rebates). [For additional background, see (Not) Downtown: Streetlight LED Conversion above.]
  • CA-2 Approve contract with Black & Veatch Ltd. ($62,800).
  • CA-3 Approve purchase of hydrofluorosilicic acid for water treatment from PVS Nolwood Chemicals (estimated $34,000/yr).
  • CA-4 Amend service purchase order for stormwater services with the Washtenaw County water resources commissioner (increase of $30,000 for FY 2014 & FY 2015).
  • CA-5 Approve contract with Recycle Ann Arbor for solid waste student move-out services ($35,000/yr). [For additional background, see Recycling: RAA Student Move-out Services above.]
  • CA-6 Award contract for 8th Street sanitary sewer manhole replacement to Fonson Inc. ($47,193). [For additional background, see Physical Infrastructure: Manholes above.]
  • CA-7 Approve a contract with Ann Arbor SPARK for economic development services ($75,000). [For additional background, see Business Services: Ann Arbor SPARK above.]
  • CA-8 Approve amendment to contract with the Washtenaw County Sheriff’s Office to provide drug abuse screening and monitoring services for mental health court ($44,200).
  • CA-9 Approve amendment to contract with Washtenaw County Community Support & Treatment Services for mental health treatment services to sobriety court and mental health court participants ($76,242).
  • CA-10 Approve amendment to contract with Reiser and Frushour PLLC to provide legal representation as court appointed counsel to indigent defendants ($40,000).
  • CA-11 Street closings for the Firecracker 5K (Friday, July 4, 2014).
  • CA-12 Street closings for Sonic Lunch (Thursday, July 10, 2014 and Thursday, July 31, 2014).
  • CA-13 Street closing for the 2014 Washtenaw Indie Awards, Saturday (June 28, 2014).
  • CA-14 Approve contract with Governmental Consultant Services Inc. for Lobbying Services ($48,000). [For additional background, see Business Services: GCSI Lobbying above.]
  • CA-15 Approve May 22, 2014 recommendations of the Board of Insurance Administration ($66,142).

8:27 p.m. Outcome: The council approved the consent agenda except for items CA-1, CA-7 and CA-10.

8:30 p.m. CA-1 Approve DTE LED conversions ($69,555/$55,060 after rebates). Kunselman says he’s happy this is coming along. He has a question about why the DDA is not funding the project for conversion of lights inside the DDA district. Public services area administrator Craig Hupy says that the general fund pays for streetlights.

Nate Geisler, the city’s energy programs analyst, is explaining that the DDA is undertaking a streetscape framework planning effort and that gave rise to hesitancy by DDA board members to pay for converting those lights at this time.

8:32 p.m. Kunselman questions whether the DDA will be able to implement its streetscape framework plan without council approval, because they are city streets. Kunselman points out that there are cobrahead lights that are out on Division Street. “Point taken,” Hupy says.

8:34 p.m. Hieftje says that DTE owns the lights, but the city pays the electric bill. The DDA had historically paid for conversion of the LED lights. Briere recalls taking a series of tours with downtown merchants to look at the lights and how the lights work. She asks if Hupy can provide information by the next council meeting about which lights in the downtown have been decommissioned and not removed, or are otherwise not working.

8:35 p.m. Lumm is talking about doing LED conversion when a repair is needed.

8:36 p.m. Outcome: The council has voted to approve CA-1 on the consent agenda.

8:37 p.m. CA-7 Approve a contract with Ann Arbor SPARK for economic development services ($75,000). Kailasapathy notes that she’d requested some information about SPARK when the council had debated the FY 2015 budget. She has concerns about the job creation numbers. She’s not talking about LDFA money, just the $75,000 from the general fund. She’s now reviewing the contributions of other municipalities, compared to the $75,000 that the city of Ann Arbor contributes.

8:39 p.m. Relative contributions that she’s discussing are here: [link]

8:42 p.m. Kailasapathy is reviewing the tax rebate given to Mahendra. She says she will not support the SPARK contract.

8:44 p.m. Petersen says that the concerns about the presentation of metrics are valid, but these are the metrics that were chosen. SPARK doesn’t tell companies where to locate, she says. She compares SPARK to the Welcome Wagon. Large floor-plate office space doesn’t exist in Ann Arbor, she says, but it does in Pittsfield Township. SPARK is agnostic about there companies locate, and she allows that Pittsfield is getting a better deal than Ann Arbor. SPARK isn’t taking sole credit for job creation, she says. She’ll support this, because SPARK is the only economic development agency we have.

8:45 p.m. Eaton moves to table, and points out that such motions don’t allow debate.

8:47 p.m. Outcome: The council has voted 6-5 to table this resolution. Voting to table were Kunselman, Kailsapathy, Eaton, Anglin, Briere, and Lumm.

8:48 p.m. CA-10 Approve amendment to contract with Reiser and Frushour PLLC to provide legal representation as court appointed counsel to indigent defendants ($40,000). Taylor, an attorney with Hooper Hathaway, provides legal services to this firm and asks the council to vote to allow him not to participate in the vote. They take that vote. He takes a seat in the audience.

8:48 p.m. Outcome: The council has voted to approve CA-10 on the consent agenda.

8:48 p.m. C-1 425 S. Main Street rezoning of 1.1 Acres from D1 (Downtown Core Base District) to D2 (Downtown Interface Base District). The council is being asked to give initial approval to changes in two parts of the zoning code affecting the parcel at 425 S. Main, on the southeast corner of Main and William streets. Because these would be changes to the zoning code, which is expressed in city ordinances, any council action that might be taken would need a second and final vote at a future meeting, in order to be enacted. First up is the zoning. The next item will involve the character district overlay. [For additional background, see Downtown: Zoning, Character District above.]

8:49 p.m. Sabra Briere (Ward 1), the council’s representative to the planning commission, is reviewing the resolution. She encourages her colleagues to move it forward to a second reading.

8:51 p.m. Anglin is raising the question of heights in D2 – and ventures that D2 zoning is supposed to be 60 feet. Planning manager Wendy Rampson is now at the podium. She’s explaining the notion of “base zoning” – that’s D1 or D2 – and the character overlay districts. The height restrictions are not part of the base zoning, but rather the character overlay districts.

8:54 p.m. Kunselman elicits the fact that the Ashley Mews development, across the street, is a planned unit development (PUD) and is 110 feet tall.

8:55 p.m. Chuck Warpehoski (Ward 5) is glad to see this come forward, but he’ll have some questions about the character district resolution. He notes that the focus had been on the Huron Street corridor, but he’d asked that this parcel be included in the review of the downtown zoning. He says that D2 is the appropriate zoning, and he’s grateful that the parcel was included in the scope of the review as he’d requested.

8:55 p.m. Outcome: The council has voted to give initial approval to the rezoning of 425 S. Main from D1 to D2.

8:56 p.m. Recess. We’re in recess.

9:05 p.m. We’re back.

9:05 p.m. C-2 Main Street Downtown character overlay zoning districts building massing standards. This is the second of two downtown zoning items. The focus of the deliberations will likely be the 100-foot height limit the planning commission has recommended for the D-2 zoned area of the Main Street character area. All other D-2 areas of the downtown have a 60-foot height limit. [For additional background, see Downtown: Zoning, Character District above.]

9:07 p.m. Briere is reviewing the planning commission discussion on this item. She says the commission had heard from many members of the community on this issue. The commission had split on this 6-3. [Briere voted as one of the three dissenters.] She’s explaining the rationale for those in the majority – that it would be suitable to terrace a 100-foot building away from the neighborhood.

9:09 p.m. But Briere points out that the city council’s resolution stated D2 at 60 feet. The basic premise of the majority was that even in winter there would be available sunlight, but Briere didn’t think that was the main issue.

9:10 p.m. Lumm complains that there’s no minutes available from the planning commission’s deliberations on the 6-3 vote. [Deliberations are reported in detail in The Chronicle's report of the planning commission's May 6, 2014 meeting.] Lumm asks planning manager Wendy Rampson to explain why the planning commission changed the height from 60 feet to 100 feet.

9:13 p.m. Rampson is reviewing basis of the planning commission’s decision. The commission felt that a 100-foot height would provide some flexibility so that someone would not try to build out the site to 60 feet everywhere on the parcel as one massive building. Rampson says the minutes will be ready by the council’s next meeting, noting that the commission’s meeting was very long.

9:17 p.m. Anglin says this is a unique site. His fear is that the council will be asked to approve the change on a second reading at its next meeting. Now is the chance for the council to set the zoning correctly. He doesn’t want to start the ball rolling toward a second reading on a time schedule. He doesn’t want to approve this tonight.

9:18 p.m. Kunselman asks Rampson what the zoning was before the A2D2 process. It was C2-A or C2-AR, she thinks. There were no height limits. Kunselman notes that this would be the only D2 with a height limit of 100 feet. Why not just leave it D1 and reduce the allowable height from 180 feet to 100 feet?

9:21 p.m. Rampson tells Kunselman that the point of A2D2 was to provide certainty for a property owner about what could be built. He ventures that that never works, and that’s why he’d voted against the A2D2 zoning. He agrees with Anglin that he wouldn’t support moving it forward tonight. Warpehoski says he’s also concerned, but says that moving it to second reading would allow the setting of a public hearing, which would provide a chance for people to weigh in.

9:23 p.m. Petersen asks Anglin if he’s making a motion to postpone. Anglin is reiterating his point that it’s important to set the zoning the way the council wants. Briere says she’s reviewed The Chronicle’s report of the planning commission meeting. Those who spoke at the public hearing were not the adjacent neighbors, she says. She really wants to return it to the planning commission. She moves to refer it to the planning commission for reconsideration.

9:25 p.m. Hieftje says this would accomplish Anglin’s objective. Kunselman says he’ll support this. Lumm says she’ll support Briere’s motion. Lumm was surprised to see the recommendation from the planning commission, as it was different from the council’s direction.

9:26 p.m. Taylor says that moving something from first to second reading is a well-established way to solicit additional input, and he’d oppose the motion to refer it back to the planning commission as an unnecessary step.

9:28 p.m. Briere says Taylor is right about the procedure being well-established, but she appeals to an argument that Leigh Greden had made when he was on the council: He knew that he’d be voting against it at second reading, so it was a waste of time to vote to move it to second reading. Petersen is saying she supports referring it back to planning commission.

9:30 p.m. Hieftje asks Briere if there were people on the planning commission who were on the fence: Would she expect a different outcome from the planning commission? Briere says she thinks there were some people on the fence. She stresses that zoning is the council’s purview. She says there’s no harm and no foul in saying to the commission: This is not quite what we want.

9:32 p.m. Outcome: The council has voted to refer back to the planning commission the the Main Street character district overlay for D2, after amending the height limit recommended by the planning commission – from 100 feet to 60 feet.

9:32 p.m. City attorney Stephen Postema whispers something in Hieftje’s ear. Hieftje points out that the zoning change to which the council had given initial approval is impacted by the council’s decision to refer the character district question back to the planning commission.

9:35 p.m. The council reconsiders item C-1.

9:35 p.m. Outcome: The council has voted to table C-1.

9:38 p.m. The council is now reconsidering item C-2. Warpehoski is arguing for moving it along, based on the fact that the parcel is currently zoned D1 where a structure that’s 180 feet tall can be built. Taking a step toward rezoning it to D2 is a step forward. Kunselman suggests replacing the references to 100 feet to 60 feet.

9:39 p.m. Kunselman says if the public wants a height limit greater than 60 feet, the council will hear that.

9:40 p.m. Briere says that this seems simple, but there’s all kinds of other language in the character district that refers to stepped back construction. She says this is about by-right development, so it’s important that the council get it right.

9:43 p.m. Eaton is suggesting that the First Street character overlay language be swapped in. Rampson points out that the First Street character was designed for the industrial buildings abutting the Allen Creek corridor.

9:44 p.m. Warpehoski asks if council and planning commission need to be in concurrence on this. No, Rampson says. That’s just for the master plan.

9:45 p.m. Kunselman asks if the council approves the change to 60 feet, would the planning staff can clean up the other language before the second reading?

9:48 p.m. Based on Rampson’s response, Kunselman thinks the planning staff can deal with the other language, and describes not voting on a final change until October or November. Anglin is complaining about Stalinist architecture and how developers threaten to build those kinds of buildings.

9:50 p.m. Outcome: Kunselman’s amendment is approved over dissent from Taylor.

9:51 p.m. Outcome: The council has given initial approval to C-2 as amended.

9:51 p.m. C-1 The council now takes up C-1 off the table.

9:52 p.m. Outcome: The council has voted to give initial approval to C-1.

9:52 p.m. Recess. We’re now in recess.

9:58 p.m. We’re back.

9:58 p.m. DC-1 Improve Liberty Plaza. This resolution would direct the city administrator to “work collaboratively with the property owners adjacent to and near Liberty Plaza, the general public, PAC [park advisory commission], the Ann Arbor District Library, and the DDA to develop a conceptual design for an improved Liberty Plaza…” Funding for the collaborative work in the amount of $23,577 would come from the parks and recreation budget. [For additional background, see Downtown: Liberty Plaza above.]

9:59 p.m. Taylor is explaining the background to the resolution. He says there’s been a good deal of discussion about people’s aspirations for downtown parks not at Liberty Plaza. But Liberty Plaza is already there, even though it does not meet our “collective aspirations,” he says. Ann Arbor needs a downtown park that is vibrant and has green space.

10:02 p.m. Petersen says she’d originally had a concern that the resolution didn’t incorporate Library Lane. She feels strongly that the entire block should be considered as a whole. Petersen moves to refer the issue to the park advisory commission. Hieftje suggests to Petersen that the council can talk about it a bit. He says that he sees this resolution as a reaction to work that PAC has already done in making recommendations on downtown parks.

10:06 p.m. Kunselman questions the funding allocation. He says that the city has just one park planner – Amy Kuras. So he was not sure he wanted to place that responsibility on her. He wondered why direction had to be given to staff and PAC, saying that PAC doesn’t need direction to act in this manner. He suggests that the University of Michigan landscape architecture students could be a partner on the design. He notes that Mike Martin is attending the meeting, but wouldn’t call him to the podium. [Martin is attending because of a resolution related to a hotel project by First Martin Corp., which comes later on the agenda.]

Kunselman has heard rumors that First Martin is planning to demolish the Michigan Square building (west of Liberty Plaza) in the next year, and he wants to know if that’s true before redesigning the park.

10:08 p.m. Kunselman said that the problem of people hanging out at Liberty Plaza wouldn’t be solved through redesign. But the UM had solved its problem with people hanging out at State and North University by doing the only thing that works – removing the seating. He says that it’s important to have downtown beat cops. He says he’ll support Petersen’s motion to refer it back to PAC.

10:10 p.m. Hieftje asks Powers to comment. Powers says the amount was the amount included in the “parks fairness” budget resolution. He doesn’t know if it’s enough money. Sumedh Bahl, community services area administrator, comes to the podium.

10:13 p.m. Briere is reflecting on her perceptions of Liberty Plaza. She was happy to see it on the agenda, and had added her name as a sponsor. She didn’t know if this was enough money. She supports it but doesn’t object to referring it to PAC.

10:15 p.m. Kunselman asks if this means that Liberty Plaza would jump ahead of developing a master plan for the Allen Creek Greenway. Hieftje says that if Kunselman can be a bit patient, there will be a master plan proposed soon.

10:18 p.m. Hieftje says that an Allen Creek Greenway master plan might be prepared before the end of the budget year. Kunselman asks if there’d been any council direction to start any of the activity that Hieftje has described. Yes, Hieftje says, there was a resolution involving 415 W. Washington. Kunselman reiterates the fact that staff has not been directed specifically to develop a greenway master plan. He’s reiterating the lack of resources for park planning. There are 157 parks in the city and he wonders why Liberty Plaza has become the most important one. Kunselman will support the referral to PAC.

10:21 p.m. Lumm says she’s going to propose some amendments to this resolution. She’s adding language about an “integrated plan for the Library Block.” She’s ticking through a number of amendments to various resolved clauses.

10:21 p.m. Taylor says that Lumm’s amendments are not “friendly,” so the council will need to vote on the amendments.

10:23 p.m. Hieftje says he’s been told by experts that without the newsstand downstairs and the restaurant adjacent to it, Liberty Plaza can’t succeed because it doesn’t have “eyes on the park.”

10:26 p.m. Hieftje is contrasting Liberty Plaza with Sculpture Plaza, at Fourth and Catherine. He says Liberty Plaza needs to be redesigned. He doesn’t mind postponing this, but wanted the council to talk about this tonight. He describes the resolution as providing seed money. Liberty Plaza has been “festering” there for quite some time. Petersen says there’s a shining light in Liberty Plaza, which is the sensory garden, and she hopes that if Liberty Plaza is redesigned, an alternate place can be found.

10:28 p.m. Teall says that Library Lane and Liberty Plaza are not connected. It’s asking too much of the resolution to expect it to connect the whole block.

10:29 p.m. Teall says that many people have responded to the Library Green Conservancy by saying that we should focus on improving Liberty Plaza, but no one has done that. This resolution would do that.

10:30 p.m. Warpehoski is sizing up how he sees the issue.

10:30 p.m. Lumm has now sent her amendments around via email.

10:35 p.m. Petersen reiterates the desirability of connecting Liberty Plaza and Library Lane, even if they are not currently connected. Taylor allows that integrated planning on a large scale does on occasion make sense. But he feels that a park that is already here and that has design challenges can be addressed. “These parks will not be connected,” he says, because there is private land between them.

10:36 p.m. Eaton is arguing for considering Liberty Plaza and the Library Lane lot at the same time, as they have many common traits.

10:37 p.m. Eaton will support Lumm’s amendments as well as Petersen’s motion to refer it to PAC.

10:39 p.m. Powers clarifies that the money in the resolution is in the FY 2015 budget. Anglin feels that it’s a budget amendment and might need 8 votes. Powers explains that it’s not a budget amendment, because the money is already there, so it doesn’t need 8 votes.

10:39 p.m. Briere says she’ll support the amendments.

10:41 p.m. Kunselman ventures that there’s an easement that connects the Liberty Plaza and Library Lane, and a gate that First Martin uses to periodically block off access so that there’s no opportunity for adverse possession.

10:42 p.m. Kunselman wonders if First Martin is interested in working with the city. Putting up a retaining wall, blocking the stair and back filling the area is essentially the basic option, Kunselman.

10:43 p.m. Hieftje says that there’s no easement, as Kunselman had contended. Mike Martin, from the audience, tells Hieftje that he’s right.

10:44 p.m. Hieftje says that if this resolution is attached to the Library Lane project, it will take years to accomplish anything, he cautions.

10:48 p.m. Here are Lumm’s amendments: [.pdf of Lumm's amendments]

10:49 p.m. Warpehoski is citing parliamentary procedure: a motion to refer takes precedence over a motion to amend. So he’s moving to refer the unamended resolution to PAC.

10:51 p.m. Lumm doesn’t want to refer the resolution without her amendments.

10:54 p.m. Kunselman asks Taylor why this was not brought up to PAC before bringing it to council. Taylor says it’s not necessary, as it’s the council’s prerogative to set policy. If passed as drafted, it would have established Liberty Plaza as a priority of the council. Hieftje notes that the referral is now the question before the council.

10:54 p.m. Outcome: The council has voted to refer to PAC the unamended resolution allocating funds to move forward a process for the redesign of Liberty Plaza.

10:56 p.m. Closed Session. A vote to go into closed session fails. So the council votes instead to suspend the rule on a unanimous vote required for going into closed session after 11 p.m.

10:56 p.m. They’re still in open session.

10:56 p.m. DC-2 Approve 2014 Ann Arbor Jaycees Carnival. The event will take place at Pioneer High School June 25 to June 29, 2014.

10:57 p.m. Outcome: The council has voted to approve the Jaycees Carnival.

10:57 p.m. DC-3 Kids Day This resolution was added to the agenda just today, so it’s not a part of the consent agenda with other street closing resolutions. This would close State Street between William and Washington for Kids Day on Saturday, June 28, 2014 from 10 a.m. until 3 p.m.

10:57 p.m. Outcome: The council has voted to approve the street closing for Kids Day.

10:57 p.m. DB-1 Approve the Anderson-Pebbles annexation 0.22 Acre, 375 Glenwood Street. This is a standard annexation, from Scio Township.

10:57 p.m. Outcome: The council has voted to approve the Anderson-Pebbles annexation.

10:57 p.m. DB-2 Approve Bank of Ann Arbor headquarters addition. The council is being asked to approve the site plan for an addition to the Bank of Ann Arbor headquarters at 125 South Fifth Avenue. The site plan involves reorienting the main entrance – moving it from the center of its South Fifth Avenue side to the southeast corner of South Fifth and East Washington. Existing doors will be replaced with windows. A 9,179-square-foot third-floor addition would be constructed over the rear of the building’s east side. [For additional background, see Downtown: Bank of Ann Arbor Site Plan above.]

10:57 p.m. Outcome: The council has voted to approve the site plan for the Bank of Ann Arbor addition.

10:57 p.m. DB-3 Approve 116-120 West Huron Street Site Plan and Development Agreement (First Martin hotel). The council is being asked to approve the site plan for First Martin’s proposed extended-stay hotel at 116-120 West Huron Street. The proposal calls for a six-floor, 88,570-square-foot building with a ground-floor restaurant or retail space and an extended-stay hotel on the upper five levels. The hotel will be operated by Marriott. [For additional background, see Downtown: Hotel Site Plan above.]

10:57 p.m. Outcome: The council has voted to approve the First Martin hotel project.

10:57 p.m. DB-4 Approve Amendment to contract with Widgery Studio, LLC to fabricate and install public art at the Stadium Boulevard Bridges ($353,552). The council is being asked to approve a contract with Widgery Studio LLC to fabricate and install public art at the East Stadium Boulevard bridges. The city had already contracted with Widgery on May 20, 2014 for $8,248 to finalize the structural design of the artwork with an engineer. This amendment to the contract on tonight’s council agenda adds art fabrication and installation services to the existing agreement, bringing the total compensation to $353,552 for all services. [For additional background, see Physical Infrastructure: Art above.]

10:59 p.m. Lumm is reviewing the discussions the council has had in the past on the public art program and the return of much of the money to the funds of origin. She remains unconvinced that this is the optimal investment the city could make with the money. She’s thanking members of the art commission for their effort. “It is a nice project,” she says.

11:00 p.m. Teall is inviting John Kotarski and Bob Miller to the podium to give a presentation on the bridges art. They are vice chair and chair, respectively, of the Ann Arbor public art commission.

11:08 p.m. Lumm is asking about the approach to the bridge to the west. Bob Miller notes that the art is located at Rose White Park. At that location looking west, he doesn’t think it’s going to conflict. Kunselman is asking about the durability of the glass panels. Is it replaceable? Yes, explains Miller, they can be replaced one louver at a time.

11:08 p.m. Outcome: The council has voted to approve the funding for fabrication and installation of public art at East Stadium Boulevard bridges.

11:11 p.m. DB-5 Approve $37,500 for affordable housing needs assessment. Kailasapathy expresses concern that the trust fund should be used for capital construction. It’s a small amount, but the small amounts can chip away at the balance, she says. Briere reads aloud the policy, which allows money in the affordable housing trust fund to be used for analysis, which this is.

11:14 p.m. Lumm says she’ll support this. She allows that perhaps the policy on allocation could use some updating.

11:16 p.m. Mary Jo Callan, director of the office of community & economic development, has been asked to the podium to explain how the assessment will start. The policy on allocation of funds does need to be updated, Callan says. The housing & human services advisory board (HHSAB) is interested in working on that with the city, she says.

11:20 p.m. Kunselman asks CFO Tom Crawford to the podium. Kunselman ventures that there is no affordable housing trust fund, but rather just an account where the city keeps track. Crawford explains that for the city’s audit, the fund is folded into the general fund. It’s noted as a restricted line item. Kunselman is proposing to change the allocation from the affordable housing trust fund to the general fund. This is just a study, he says, and he doesn’t think the city should be using the affordable housing fund for that.

11:22 p.m. Lumm prefers to use the affordable housing fund. Hieftje agrees with Lumm. The needs assessment will guide the construction of affordable housing, he says.

11:24 p.m. Briere says that the existing policy does not specify only capital investment, so she wants to pay for it out of the affordable housing fund.

11:25 p.m. Outcome: Kunselman’s amendment fails, with support only from Kunsleman, Eaton, Warpehoski, Angin, and Kailasapathy.

11:26 p.m. Outcome: The council has voted to approve the $37,500 from the affordable housing trust fund to pay for the housing needs assessment.

11:26 p.m. DS-1 Approve a Contract with NuView, Inc. to replace the city’s human resource and payroll system ($570,900). The staff memo accompanying the item explains why the existing software, acquired in 2007, is being replaced:

In 2007, the City installed a Human Resource and Payroll system called Ultipro, by Ultimate Software. The Ultipro system included modules for Recruiting, Benefits Administration, Human Resource Administration and Payroll. The City has experienced a variety of issues related to the underlying database architecture utilized by Ultimate Software. In addition, due to changes such as new legislative requirements, the increase in recruiting volume and the increase in manual data entry involved in benefits administration, the City has found the Ultipro system unable to meet its Human Resource needs.

11:26 p.m. Lumm has asked a staff member from HR to explain this in detail.

11:27 p.m. The topic is recruitment of veterans. The goal is to make the “onboarding” of candidates paperless.

11:28 p.m. Not all the data will be migrated to the new system. The systems will run parallel for a month or more as a safety check.

11:29 p.m. Kailasapathy is pleased to see the five-year cumulative savings that was provided by the staff analysis.

11:30 p.m. Outcome: The council has voted to approve the contract with NuView for the human resources and payroll system.

11:30 p.m. DS-2 Transfer funds to authorize State Revolving Fund (SRF) debt payment and loan forgiveness for stormwater and rain garden components of the skatepark project (Not To Exceed $157,264). [For additional background, see Physical Infrastructure: Stormwater above.]

11:31 p.m. Outcome: The council has voted to approve the the transfer of funds in connection with the skatepark rain garden.

11:31 p.m. DS-3 Approve contract with Dawn Farm for drug abuse counseling and rehabilitative services ($108,174). [For additional background, see Courts Human Services above.]

11:31 p.m. Outcome: The council has voted to approve the contract with Dawn Farm.

11:31 p.m. DS-4 Set assessment roll for Pontiac Trail Sidewalk ($72,218) [For additional background, see Sidewalk/Pedestrians: Pontiac Trail Sidewalk above.]

11:31 p.m. Outcome: The council has voted to set the assessment roll for the Pontiac Trail sidewalk.

11:31 p.m. DS-5 Set public hearing for the Pontiac Trail sidewalk special assessment project. [For additional background, see Sidewalk/Pedestrians: Pontiac Trail Sidewalk above.]

11:32 p.m. Outcome: The council has voted to set the public hearing on the Pontiac Trail sidewalk special assessment project – for July 21.

11:32 p.m. DS-6 Set public Hearing for the Stone School Road sidewalk project. [For additional background, see Sidewalk/Pedestrians: Stone School Sidewalk above.]

11:32 p.m. Outcome: The council has voted to set the public hearing on the Stone School Road sidewalk special assessment project – for July 7.

11:32 p.m. DS-8 Approve a contract with Emergency Restoration Company for the renovation of restrooms and locker Rooms in Fire Stations #3 and #4 ($149,500). [For additional background, see Physical Infrastructure: Fire Station Restrooms above.]

11:32 p.m. Outcome: The council has voted to approve the contract with ERC for fire station restroom renovation.

11:33 p.m. DS-9 Approve award of a construction contract to Lanzo Lining Services Inc. Michigan for the 2014 sewer lining project ($1,566,121). [For additional background, see Physical Infrastructure: Sewer Lining above.]

11:34 p.m. Lumm is asking what all is included. The answer from staff is that there could be additional locations where work could be done.

11:34 p.m. Outcome: The council has voted to approve the contract with Lanzo Lining Services.

11:34 p.m. DS-10 Award a construction contract with Douglas N. Higgins Inc. for the Arbor Oaks water main replacement project ($1,324,357). [For additional background, see Physical Infrastructure: Water Main above.]

11:34 p.m. Outcome: The council has voted to award the construction contract with Douglas N. Higgins Inc.

11:34 p.m. DS-11 Approve installation of traffic calming devices on Larchmont Drive ($55,000). The project would install three speedhumps. [For additional background, see Sidewalk/Pedestrians: Larchmont Traffic Calming above.]

11:35 p.m. Lumm says that the neighborhood is so excited – as the application went in five years ago. She’s thanking staff who worked on this.

11:38 p.m. Eaton notes that $60,000 had been budgeted for the whole year. Is this $55,000 taking up most of the whole year’s budget? Nick Hutchinson is explaining that the $55,000 that’s being brought forward is from FY 2014. The actual cost of this particular project is just $8,800, Hutchinson explains.

11:38 p.m. Outcome: The council has voted to approve the installation of traffic calming devices on Larchmont.

11:39 p.m. DS-12 Approve a contrast with Northwest Consultants Inc. for the Fuller Road, Maiden Lane, E. Medical Center Drive bridges rehabilitation project ($187,184) According to the staff memo accompanying the resolution, the project includes “re-painting of each bridge, repairing corroded structural steel, bridge abutment and pier (substructure) repairs, expansion joint removal and replacement, bridge deck patching, placing an overlay on the existing bridge decks, bridge railing repairs, guard rail upgrades, brush trimming and removal around the perimeter of the bridge structures, and other related work.” [For additional background, see Physical Infrastructure: Fuller Road Bridges above.]

11:41 p.m. Briere wants to know if the amenities that would complete the Border-to-Border Trail are included in this work. Hupy explains that this resolution is for maintenance of existing bridge structures. Kunselman says it’s his understanding that there’s a lot of “human activity” near the location. He wants to know if assistance will be provided to those people who are living in tents. Hupy says there will be plenty of notice given before construction starts.

11:41 p.m. Outcome: The council has voted to approve the contract with Northwest Consultants Inc. for the bridges rehabilitation project.

11:42 p.m. DS-13 Approve a contract with The Greenway Collaborative Inc. to support the pedestrian safety and access task force ($75,000). This is a contract that had originally been recommended by staff to be awarded to a different vendor, but without issuing an RFP. After issuing an RFP, The Greenway collaborative was selected. The task force was established through a council resolution passed on Nov. 18, 2013. Confirmed as members of the task force on Jan. 21, 2014 were: Vivienne Armentrout, Neal Elyakin, Linda Diane Feldt, Jim Rees, Anthony Pinnell, Sarah Pressprich Gryniewicz, Kenneth Clark, Scott Campbell, and Owen Jansson. [For additional background, see Sidewalk/Pedestrians: Pedestrian Task Force Consultant above.]

11:42 p.m. Lumm thanks Powers and staff for listening to the concerns of council on this project.

11:43 p.m. Lumm is concerned that this effort could be expanded in its scope and could require additional funding.

11:43 p.m. Outcome: The council has voted to approve the contract with The Greenway Collaborative Inc. to support the pedestrian safety task force.

11:43 p.m. DS-14 Approve contract with Recycle Ann Arbor for multi-family recycling incentive pilot program ($95,694). This resolution is based on recommendations in the city’s solid waste plan. [For additional background, see Recycling: RAA Multifamily Pilot above.]

11:46 p.m. Kunselman asks RAA staff to come to the podium. Kunselman says that he’s heard it might be the last opportunity he has to ask Tom McMurtrie a question. “As a city employee,” that’s correct, McMurtrie says. Kunselman gets clarification that it’s city employees who do trash collection. He asks what kind of outcomes could be expected.

11:48 p.m. The RAA staff member says the point of the study is to understand the nuances of recycling in multi-family units: transience, language barriers, a willingness to go down from the third floor to put recyclables in container. They want to figure out what makes multi-family units tick. It’s a nut that no one nationally has cracked, he says.

11:50 p.m. Lumm is talking about Palo Alto and Seattle as benchmarks. She asks how much improvement McMurtrie thinks is possible. Based on the percentage of recyclables in the waste stream, McMurtrie thinks there’s potential for improvement.

11:53 p.m. Lumm asks why the work needs to be contracted out. Hupy indicates to Lumm that in him and McMurtrie she’s looking at the staff. Taylor says he thinks this is great – as it’s an area where improvement is needed. Hieftje ventures there’s a “gold mine” out there as far as how much additional material can be recycled in multi-familiy housing units.

11:53 p.m. Outcome: The council has voted to approve the contract with Recycle Ann Arbor for a multi-family recycling incentives pilot program.

11:53 p.m. DS-15 Reimburse Resource Recovery Systems for repair of baler infeed conveyor at the Material Recovery Facility ($39,480). RSS operates the city’s material recovery facility under a contract. The typical pattern is for RSS to handle the replacement of equipment with reimbursement from the city. [For additional background, see Recycling: Baler Infeed Conveyor Repair above.]

11:55 p.m. Teall invites McMurtrie to the podium to congratulate him on his retirement. Solid waste has changed so much in the time that Teall has been on the council. McMurtrie notes that it’s been almost 24 years and he finds it rewarding to do work that touches on every single resident.

11:55 p.m. Teall invites McMurtrie to the podium to congratulate him on his retirement. Solid waste has changed so much in the time that Teall has been on the council. McMurtrie notes that it’s been almost 24 years and he finds it rewarding to do work that touches on every single resident.

11:56 p.m. Hupy says that there’s a new staff member who’ll be taking over for McMurtrie. McMurtrie’s retirement party will be held on July 1 from 3-5 p.m.

11:56 p.m. Outcome: The council has voted to approve the reimbursement to RSS for repair of the MRF baler infeed conveyor.

11:56 p.m. DS-16 Amend Ann Arbor Downtown Development Authority budget for fiscal year 2014. This is a routine type of adjustment, which has been approved by the DDA board. [For additional background, see Downtown: DDA Budget Amendment above.]

11:58 p.m. Outcome: The council has voted to approve the amendment of the DDA budget.

11:59 p.m. DS-17 Goldstone vs. Warner settlement.

11:59 p.m. Outcome: The council has voted to approve a $35,000 settlement.

12:01 a.m. Briere to planning commission. As a result of the background work by the city attorney’s office on terms of appointments to boards and commissions, it was determined that Briere needed to be reappointed in order to continue to serve beyond the end of June.

12:02 a.m. Outcome: The council has voted to approve Briere’s appointment to the planning commission until Nov. 17, 2014.

12:02 a.m. Communications from council. Briere has now invited Ann Arbor SPARK CEO Paul Krutko to the podium because he had not had an opportunity to answer questions on the SPARK funding item, which was tabled earlier in the meeting. Krutko says that SPARK is a complicated organization. Krutko says that two reports that had been questioned by a member of the public were about two different activities – work for the state compared to work for Ann Arbor. There’s a variety of reports that SPARK has to provide. He’s sorry that it’s confusing, he says.

12:07 a.m. Krutko is now responding to more questions from Briere.

12:15 a.m. Lumm is telling Krutko that she shares the concerns about SPARK’s reporting. She doesn’t have a problem with the $75,000. She’s saying that more councilmembers wanted to table instead of postpone. She’s reviewing the importance of being good stewards of public funds. Now there’s back and forth between Lumm and Krutko. Lumm says that once a reconciliation of the numbers is achieved, then everyone will be comfortable.

12:16 a.m. Kunselman is now talking about the complexity of economic development. Kunselman asks if layoffs are computed as a part of the jobs numbers.

12:18 a.m. Krutko says there are 22 SPARK staff members. Responding to the lower unemployment figures in this area, Kunselman quips: Thank god for you!

12:21 a.m. Taylor expresses his concern about the tabling and calls it a “self-inflicted wound.” Ann Arbor had a reputation previously for being against growth, he says. That had changed. But now this was a step backward, Taylor says. He indicates that the council had not made a responsible, professional and temperate decision.

12:23 a.m. Warpehoski expresses his dismay that the council had tabled the SPARK resolution (without debate). Kunselman is now taking a turn, defending the tabling action as opposed to postponing.

12:24 a.m. Kailasapathy says she looks at it as a question of how much Ann Arbor taxpayers give – through Act 88 money, which is levied countywide.

12:25 a.m. Kailasapathy says that the council has not said that it won’t pay the $75,000. It’s a matter of getting the information and getting the numbers reconciled, she says.

12:27 a.m. Petersen regrets she used the term, “Welcome Wagon” to describe SPARK’s work – because SPARK is more complex than that. She says that when councilmembers had questions in advance of the FY 2015 debate, they’d had some additional questions and they were given answers within a week.

12:28 a.m. Petersen says that some of the questions have been asked only very recently and many of the questions about SPARK have been answered.

12:31 a.m. Lumm says she would have preferred to postpone instead of tabling, but she knew it would be taken up back up off the table. Briere says she plans to bring this back on July 1 [but the council's next meeting is not until July 7].

12:33 a.m. Teall says she is angry not just that the SPARK resolution was tabled but that there was a rush to table. She reiterates that she’s angry about the fact that the council has departed from the style of interaction that they’d agreed to at their planning retreat.

12:34 a.m. Hieftje is ticking through standard talking points in support of SPARK and economic development.

12:34 a.m. Hieftje says that the tabling was “over the top.”

12:35 a.m. Clerk’s Report. Outcome: The council has voted to accept the clerk’s report.

12:35 a.m. Public Comment. There’s no requirement to sign up in advance for this slot for public commentary.

12:37 a.m. Kai Petainen says that the difference in the jobs numbers reported by Ann Arbor SPARK and the state stems from how the numbers are reported. He’s reading aloud a note about intent to hire as being recorded as a success, but in the other report there are actual jobs reported.

12:39 a.m. Edward Vielmetti is now addressing the council. He said he thought they tabled something earlier in the meeting, but had they then discussed it at length later. They can discuss whatever they like, but he calls it “not a stunning display of council effectiveness.”

12:40 a.m. Closed Session. The council has voted to go into closed session to discuss pending litigation.

1:05 a.m. We’re back.

1:05 a.m. Adjournment. We are now adjourned. That’s all from the hard benches.

Ann Arbor city council, The Ann Arbor Chronicle

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23 Comments

  1. June 17, 2014 at 8:32 pm | permalink

    Last night at city council we got more proof that SPARK is inflating job numbers and now we know how they do it. The proof comes from a document that they gave to council that was trying to highlight the jobs – the document had names of business and phone numbers. But, at the bottom of the document, it stated this:

    “The Ann Arbor SPARK Business Development team records a project success when a company publicly declares its intent to create jobs or make capital investments over a period of time. “Announced jobs and investment” are recorded as a one time success.”

    In otherwords, SPARK takes the promised number of jobs and banks that into its data for job creation. It doesn’t take actual jobs created but promised jobs created. Thereby, yes, they are inflating the number of jobs created as they are not taking actual data. This is especially troubling as they are a non-profit that uses tax-payer money, and they are reportedly a ‘high-tech’ type of firm. It’s troubling to see a non-profit using inflated, promised numbers instead of real numbers as it asks for public money.

    When city council asked SPARK for an explanation of why the numbers don’t match, SPARK should have noted that one set is from promised numbers and the other comes from real numbers. If SPARK does not explain this to council members or the public, then I feel misled.

    What metric should SPARK tell city council and the public? It’s very simple. They should tell the number of jobs promised; the number of jobs that are actually created and then the % success rate of those two numbers. It’s simple. Then once that number is given to the public, city council can vote and I’ll respect the vote (yes or no) as at least the public will know the truth.

    And to be clear, I am not against economic development. When non-profits ask for tax-payer money, their data must be solid and not based on estimates and promised numbers.

  2. By Fred Zimmerman
    June 18, 2014 at 8:35 pm | permalink

    Why is this so troubling? The data’s fuzzy … companies, situations change rapidly in a way that is not easy for third parties to measure.

    From my point of view as a fledgling entrepreneur, SPARK is doing a great job, and the City Council has picked a strange battle here.

  3. By Jack Eaton
    June 19, 2014 at 11:15 am | permalink

    Re (2) This is not a battle. LDFA exists because the City approved its creation. Council will soon be asked to extend LDFA’s operation for an additional 15 years. Each year LDFA receives about $1.8 million in public funds. It passes most of those fund through to SPARK. SPARK seeks additional funding from governmental units such as the City ($75,000) and the County ($200,000).

    Much of the general fund money SPARK receives is used for marketing themselves. Much of that marketing involves claims about their success in job creation.

    Some Council members, including me, believe that entities such as SPARK and LDFA, that receive public funds, owe the public a duty of transparency and accountability.

    With regard to transparency, the LDFA refused, until recently, to disclose their audited financial reports to the public. An entity that receives millions of public dollars should be willing to disclose its financial reports.

    Both LDFA and SPARK claim that their success is demonstrated by the number of jobs their efforts have created and retained. When pressed to verify the claimed number of jobs created, they explain that the numbers are fuzzy. Verifiable numbers of jobs created is a simple request that they account for their claims.

    Accountability and transparency are fundamental to public trust. If it appears that there is a battle here, it may be due to the reluctance of LDFA and SPARK to cooperate with such basic request to disclose and verify.

  4. By Tom Whitaker
    June 19, 2014 at 11:46 am | permalink

    Elected officials create economic development funds which create governmental and quasi-governmental agencies who hire elected officials after they leave office. They then hire friends and relatives (or friends and relatives of elected officials) from the private sector who are “between jobs,” giving everyone large salaries and allowing them to operate like a private corporation. Those who don’t get hired by the agencies directly go to work for, or create their own “non-profit” economic development associations that eagerly receive grants from those governmental and quasi-governmental agencies. Of course, these associations also pay large salaries and advocate tirelessly for more governmental economic development programs and money. Everyone in the food chain is expected to constantly work to get themselves appointed to committees and commissions that influence how government economic development funds are spent, or better yet, run for office.

    The most successful economic development in Michigan has been the development of the economic development industry, financed courtesy of our public schools.

  5. June 19, 2014 at 1:33 pm | permalink

    Re (4) Though some will think this sounds very negative and cynical, I believe that it is correct, and can think of several examples.

  6. By Fred Zimmerman
    June 19, 2014 at 5:07 pm | permalink

    I see a lot of pontificating about accountability and metrics here but I don’t see much understanding of the fundamental point, which is that SPARK actually does a good job. I have been a peripheral consumer of SPARK services since moving back to Ann Arbor in 2002 (originally moved here in 1964 …) and have always been impressed by their professionalism. They have the right people involved, they hold good events, they offer useful services. Superficially, without knowing the inside story, they seem to be on the right track.

    I don’t place much stock in the job creation metrics as in my view it’s not just that SPARK claims the data is fuzzy, it’s that the data actually *is* fuzzy. Maybe SPARK should spend less time trumpeting success metrics and City Council should spend less time questioning them.

    I’d be much more interested in having an evaluation done by people with a national and international perspective who know a lot about creating and stimulating economic growth. Founders, federal agency funders, venture capitalists. *That* would provide some value to the people of Ann Arbor.

  7. By Libby Hunter
    June 19, 2014 at 5:22 pm | permalink

    Great comments here, and great coverage by Dave as per usual.

    From conversations I’ve had during the past few years, I believe there is a growing awareness in Ann Arbor that taxes we pay are not supporting excellent municipal services. Services have decreased by a lot over the past decade.

    While we continuously divert funds away from services towards corporate welfare (in the recently coined name of Public Private Partnership), ordinary citizens who depend on public services are short changed in the process.

    SPARK is based on ‘Trickle Down’ which has been proven to only increase the wealth gap, but this convoluted economic theory keeps being promoted by the small group who benefit from it. How does our community benefit from Trickle Down and SPARK – in a way that’s makes it worth contributing taxes to? I’d appreciate knowing if there is another economically proven theory which SPARK is based on.

  8. By Fred Zimmerman
    June 19, 2014 at 5:49 pm | permalink

    Libby, I’d turn it around. Services for entrepreneurs are vital public services. Corporate welfare for large existing companies (“economic development”) is a very different thing. If I had my way there would be a micro-entrepreneurship micro-SPARK in every elementary school neighborhood. In a way, that’s what the Uber “sharing” revolution, or as I like to call it, the “scrounging revolution” is all about. Making it easier for people to put together the pieces for prosperity. SPARK is doing a good job at that.

  9. By Jeff Hayner
    June 20, 2014 at 12:10 pm | permalink

    As I have said in public comments before city council, SPARK and LDFA simply take taxpayer money and decide who to give it too. Economic development represents a geographic redistribution of wealth. A great deal of the public funds distributed by these programs- nearing a million dollars a year, is given to themselves, in wages. Does the CEO of a local economic development agent need a higher salary than our City Administrator? More is given to landlords as rent. Some is spent for marketing themselves and their services. The rest is given to a narrow field of tech and bio-tech related enterprises, some of which have connections to the very people who run the economic development programs, in the form of board members, advisors, etc.

    At no point has there been any ndication that this is the best way to spend this money, the local share of which has been asked to be extended for 15 years, in excess of 40 million dollars. It is not too much to ask that the recipients of these public monies report the uses and outcomes o the money they are given, in the same way that the City Administrator presents a budget, or Housing and Human Services presents a plan and a yearly accounting record. Any organization that receives public funds must disclose fully where and how that money is spent. The reporting requirements are even more strict for a non-profit, which SPARK claims to be. If the return on investment cannot be qualified, or is found to be less than promised, year after year, it is only right that the governing bodies ultimately held accountable for distributing our tax revenue, question or adjust the amount given accordingly. There are many needs in the city, enriching a few CEO’s so they can pick winners and losers in a narrow tech segment in search of “growth” is perhaps fading as a priority as our streets crumble, our services diminish, our schools feel the squeeze of diminished state funding, and the people ask- where is all our money going?

  10. By Jeff Hayner
    June 20, 2014 at 12:11 pm | permalink

    Sorry – one too many “o”‘s in that first “too”.

  11. By Fred Zimmerman
    June 22, 2014 at 3:40 pm | permalink

    Many of the comments against SPARK seem to rely on specious burden of proof and transparency arguments that remind me of climate change deniers. “We’re against it so we demand infinite proof.” Applying these same standards to critics’ favorite programs would result in equally frustrating results. Has it been shown that providing homeless services or parks and rec are “the best uses” for taxpayer money?

    While I would agree that there is waste and cronyism in economic development activities almost everywhere, these programs do exist for valid reasons, and, to repeat, my experience as an actual entreprenurial client of and observer SPARK is that it is doing a good job at facilitating entrepreneurship at a micro level that provides a much broader level of public service than “enriching CEOs” or “picking winners and losers.” The tone of the current debate seems to be oblivious to that important reality.

  12. By Tom Whitaker
    June 23, 2014 at 10:46 am | permalink

    @11: I don’t find your individual anecdotal experience with SPARK to be convincing at all. Of course those who benefit from this kind of service are going to support it continuing.

    Trying to smear SPARK/MEDC critics by lumping them into the category of climate change deniers is absurd and not unlike recent criticisms of local politicians who’ve dared to take on SPARK or the DDA who have been falsely labeled “Teapublicans.” Ironically, preserving public funds for truly public uses is a far more leftist ideal than diverting them to developers, corporations, and other private sector entities; or to their overly-paid friends in public agencies and “non-profit” economic development organizations.

    The truth is, many of us are simply tired of the privatization of public funds at the expense of the fundamental things that government should be providing for all, like quality schools and universities, well-kept parks, environmental regulation and enforcement, social safety nets, etc. These kinds of things benefit society as a whole and actually make our state more attractive to private investors, tourists and newcomers, not less.

  13. By Libby Hunter
    June 23, 2014 at 2:08 pm | permalink

    Sumi mentioned the TIF capture of $1.8million going to SPARK. I don’t see that in this report, but could have missed it.

  14. By Jeff Hayner
    June 23, 2014 at 3:09 pm | permalink

    @11-
    Anyone is free to contact me directly for a first-hand story of how SPARK failed an established tech company in SPARK’s early days (2001), if they would like a counter to the handful of success stories that have come before council. I encourage interested readers to watch the entirety of my remarks, this Chronicle report only captures a small part of what I said.

    I liked Mr. Davarti’s suggestion that SPARK and LDFA be held merely to the same standards of accountability that social service agencies are held to, since they are both non-profits receiving taxpayer dollars, they should be held to similar levels of accountability, which they currently are not. No one is asking for “infinite proof”- just the standard yearly reports. SPARK has been held to a much lower standard of accountability than social service agencies until recently; furthurmore, they have ignored repeted requests for standard tax forms to be made public. That is why I considered sending in a complaint form to the IRS, failure to provide 990′s upon request is an offense which qualifies a non-profit for IRS investigation. As for enriching CEO’s, I guess that depends on one’s perspective. Two salaries in excess of $250,000/ year for a non-profit seems excessive to this taxpayer.

  15. By Jeff Hayner
    June 23, 2014 at 3:20 pm | permalink

    @11 –

    On the face of it, Parks & Rec is a more equitable, though not necessarily “the best use” (whatever that metric is) of taxpayer money, as everyone can enjoy a park who chooses to go there, but not everyone can enjoy SPARKs assistance with their business, only tech and bio-tech companies who pay to play. Where is the economic assistance for small business outside of the tech sector that is the focus of SPARK? If it exists, you can bet their executive directors are not pulling down $250K+ /year. Check out GuideStar to see some comparative non-profit salaries.

  16. June 23, 2014 at 8:06 pm | permalink

    according to Krutko at the city council meeting, SPARK itself has 22 employees….

  17. By Fred Zimmerman
    June 23, 2014 at 11:14 pm | permalink

    I knew the comment about climate change deniers would infuriate a few people, but no intention of smearing anyone. I simply observed that the “call for proof” tactic is a familiar one. My 14-year-old, whom I dearly love, also relies on it heavily. “Prove it!” he often says in response to the most commonplace observation.

    Of course my observation is anecdotal, and no more dispositive than any other anecdotal observation. I simply offer an alternate perspective that doesn’t seem to be well represented here. Given the Council vote and the comments by Hiefte et al. reported here, I am not the only person who sees this as a sort of self-righteous kerfuffle.

    One theme that does seem to run through all these comments is that people would prefer more social service agencies and less support for tech companies. My preference is precisely the opposite, I would like to see Ann Arbor do less to provide social services and do more to provide support for entrepreneurs — though I hasten to add, the more micro the better. Perhaps we can find common ground on that point.

  18. By Jeff Hayner
    June 24, 2014 at 9:27 am | permalink

    @17-

    Using social services as an example of accountability is not meant (in my case at least) as a call for increased funding for such, or even as an endorsement of such. It simply represents one of the many categories of spending- outside of what I consider a city’s core service mission- that Ann Arbor has gotten itself into. Mr. Davarti’s suggestion that all recipients of city funds be treated equally is the right one- the accountability bar should be set the same height for all external organizations that ask for and receive taxpayer dollars.

  19. June 24, 2014 at 10:28 am | permalink

    That’s Dave DeVarti, not Davarti.

    I heard his statement (which is also reported accurately here) and he did not have time to explain his point fully. I would guess that he is referring to the outcome-based metrics that are increasingly being used to judge social service non-profits. Rather than simply awarding an agency a sum of money to continue their work, they are obligated to say how many were served or saved, or whatever. Here, for example, is the report from the County OCED on entitlement funding (thanks to the Chronicle’s excellent archives). [link]

    “In 2013, human service nonprofits supported by the Washtenaw Coordinated Funders served thousands of individuals across six priority areas: 3,968 individuals in Aging priority area programs; 447 individuals in Early Childhood priority area programs, 6,268
    individuals in Housing & Homelessness priority area programs, 28,544 individuals in Hunger Relief priority area programs, 10,773 individuals in Safety Net Health & Nutrition priority area programs, and 2,580 individuals in School-Aged Youth priority area programs.”

    To the point: since nonprofit agencies providing a variety of services (not just human services) are held to a strict standard of accountability, it is reasonable to expect that SPARK should be similarly accountable, not just say “trust us to do a lot of good stuff”. This is especially true given the high compensation levels of the staff.

    I was heartened that Council chose to table the item. Good things can happen!

  20. By Fred Zimmerman
    June 24, 2014 at 12:45 pm | permalink

    This is meant as an open-minded remark for curiosity’s sake rather than an attempt to persuade, since the implications cut both ways, but economic development funding is different from social service funding at least one major respect, which is that economic development is an “arms race” that to some extent pits communities against one another. Opting out entirely is unrealistic and holding oneself to higher standards than competitors might be self-defeating. The question is how to be smart about economic development, and I think that means having a focus on entrepreneurship and enablers rather than subsidies and incentives. It should be a battle of wits rather than a battle of dollars. I would find the calls for better data and more equitable spending more convincing if they were coupled with a more visible commitment to enabling entrepreneurship.

  21. By Tom Whitaker
    June 24, 2014 at 2:50 pm | permalink

    Communities need not join the arms race to the bottom by depleting schools and other vital government services in order to fund private enterprise. Ask any CEO with vision beyond 3 years what attracts them to a community and they will tell you its the quality of life for their workers and the availability of talent. Talent comes from quality schools and universities. Quality of life comes from good government stewardship of public assets and high quality services. That is how you enable, not only entrepreneurs, but everyone to thrive. Build it and they will come and stay. Throw money at them and they will use you and move on.

  22. By Fred Zimmerman
    June 24, 2014 at 6:41 pm | permalink

    @21 – nothing inconsistent about our views, but SPARK is one of the public assets that needs to be stewarded, not bashed — and there’s a lot of bashing in the atmospherics.

  23. By Tom Whitaker
    June 25, 2014 at 9:41 am | permalink

    It’s not a public asset, it’s a private non-profit.