AAPS board member Christine Stead. Across the table from Stead (and Deb Mexicotte, who's seated to Stead's right out of the frame) are board members Glenn Nelson and Susan Baskett. (Photos by the writer.)

Contending that any increases would do little to rectify the compounding losses of funding since the passage of Proposal A, trustee Andy Thomas summarized the state’s budget plan as: “One hand giveth and the other hand taketh away.”

Trustees also agreed to move to a paperless system of board documents. In other business, the board agreed to change the district’s liability insurance carrier, and joined an emerging advocacy group – the Washtenaw Alliance for Education.

Also at the meeting, the board heard from two sets of students, after making a conscious effort recently to increase student engagement at the board level.

The board also engaged in an uncommon back-and-forth with members of the audience, which stemmed from public commentary about a Thurston Elementary School teacher who’s been placed on administrative leave. 

Budget Update

AAPS superintendent Patricia Green introduced deputy superintendent of operations Robert Allen to discuss the potential for state funding increases, as well as possible changes to transportation services that would impact the budget. AAPS is in the process of crafting its 2012-13 budget, which is estimated to require another $14 million in budget reductions. The district has already cut nearly $50 million out of its budget over the past five years.

Budget Update: State Budget

At the Feb. 8 meeting, Allen reported that that Gov. Rick Snyder’s proposed state budget for FY 2012-13 was anticipated to include an increase in funding to K-12 schools. Allen said he would welcome any increase in the per-pupil foundation allowance, and noted there might also be a state effort to mitigate the rising retirement costs faced by school districts across Michigan.

Trustees expressed concern that a slight increase in state education funding would do little to rectify the fact that schools are being funded at 2001 levels, even before adjusting for inflation. “Calling it an increase is disingenuous,” said trustee Christine Stead. She cited increased testing requirements, tenure reform, and all-day kindergarten as examples of new, unfunded state mandates. Those unfunded mandates, she argued, should counter any perception of a higher foundation allowance as an increase. Andy Thomas summarized his view of the state’s funding of K-12 education: “One hand giveth and the other hand taketh away.”

On Feb. 9, the governor did reveal his proposed budget to the state legislature. In general, it does not call for an increase in districts’ foundation allowances – the per-pupil amount that public schools receive from the state. Instead, the governor’s proposal would offer extra funding to districts that meet at least five of six best practices: (1) having a “dashboard” of statistics on their website; (2) being the policyholder for health insurance; (3) opening up seats in the district through “schools of choice”; (4) monitoring student growth in each subject at least twice a year; (5) offering dual enrollment (concurrent enrollment in high school and college) options; and (6) offering online or blended learning. A small amount of additional funding would also be available to defray pension costs faced by districts, as well as to reward districts that show student academic growth and/or are making efforts to consolidate services.

Budget Update: RFP for Transportation?

Allen reported that he had followed up on a board request to look into joining Ypsilanti and Willow Run schools in issuing an RFP (request for proposals) for transportation services. Ypsilanti and Willow Run currently participate in a transportation consortium with AAPS, which is managed by the Washtenaw Intermediate School District. Allen said he found no opposition to AAPS joining in the RFP process.

Trustee Simone Lightfoot pointed out that joining the RFP process with Ypsilanti and Willow Run was only one of five suggestions the board had given administration to explore in terms of providing transportation services, and she confirmed that Allen was continuing to explore all options, including partnering with the Ann Arbor Transportation Authority (AATA). Allen said all options are still being considered, and noted that participating in the joint RFP process might also yield data about how much it might cost AAPS to privatize transportation services on its own.

Stead added that AAPS should move efficiently to identify areas in the budget that are highly likely to be impacted by budget reductions. That way, the district will have as much time as possible to plan for the implementation of any reductions with the AAPS community and families. She also requested that Allen include an estimate of how much fund equity must be maintained so that the district will not have to borrow money to make payroll.

Beyond Lightfoot’s brief mention, the possibility of collaborating with the AATA to serve the school system’s transportation needs was hardly discussed at the board’s Feb. 8 meeting. The board had discussed the possibility of collaborating with the AATA in more detail at its committee-of-the-whole meeting on Jan. 25.

Since then, conversations between AAPS and the AATA have started. In his monthly written report for the upcoming Feb. 16 AATA board meeting, AATA CEO Michael Ford wrote to the AATA board:

Ron Copeland [operations manager], Phil Webb [controller], Chris White [manager of service development] and I [Ford] met with the AAPS Superintendent, Assistant Superintendent, and Director of Communications last week. This was our second meeting to explore how AATA service could assist in their efforts to reduce transportation costs. Since the first meeting, we have developed some opportunities for the 2012‐13 school year that would replace 2‐5 AAPS high school bus routes with students using existing AATA service. AATA and AAPS staff will be working in the next few weeks to develop the details.

The Superintendent expressed her pleasure with how this effort is proceeding. Later last week I met with AAPS Board Trustees Simone Lightfoot and Susan Baskett. I shared the details of our meeting with AAPS representatives and our coordination efforts. We also discussed opportunities to provide enhanced communication to parents regarding potential changes that could better help with their understanding of what public transit is, what it can do, and the ease of use.

We agreed to meet again and look at some longer term solutions such as identifying grant opportunities, raising local awareness and gathering data to pinpoint the needs of where high school student are in need of public transit, but don’t have a voice nor access to navigate public transit services to school.

During the agenda planning portion of the Feb. 8 meeting, trustees Irene Patalan and Simone Lightfoot each requested that a date be assigned to review the transportation options, including the WISD report of operational statistics. Board president Deb Mexicotte suggested that the board should bundle the WISD review with a discussion about the RFPs and conversations with AATA.

BoardDocs: Electronic Document Management

The board has been considering a move to paperless document management system for at least six months. BoardDocs, a paperless board documents system, was first introduced to the board at its July 2011 board retreat. The issue was on the Feb. 8 agenda for a second briefing and a board vote.

Board Docs: Description and Cost Information

Board secretary Amy Osinski made a brief presentation to the board highlighting the pros and cons of moving to BoardDocs. She also outlined the related cost information.

As benefits, Osinski noted ease of use, ease of access, and greater transparency. She explained how the public would be able to follow along with the agenda online, and how complete videos of each meeting would be uploaded to BoardDocs within a day of the meeting. The video capture would be done by Community Television Network, she said, which will also continue its livestreaming and replaying of the meetings on community access television. The video capture for BoardDocs would be uploaded as a YouTube video, and could have each section of the meeting tagged according to the agenda.

In addition, Osinski continued, using BoardDocs would allow all previous meeting documents to be scanned and searched by the public, from one central place. All documents would be formatted consistently, and agenda changes would be automatically e-mailed to everyone.

BoardDocs does allow for personal notes to be taken by board members during public meetings, and though they are only accessible through each trustee’s login, Dave Comsa – AAPS deputy superintendent for human resources and general counsel – pointed out that if notes are taken as part of a deliberative process, they could be made to be shared. He also counseled board members not to e-mail or text each other during a meeting.

Board president Deb Mexicotte responded, “It is not our intention to ever text or e-mail from the board table.” Trustees around the table nodded in agreement.

Osinski wrapped up the “pros” by noting efficiency and cost savings in staff time, ease of policy management, a “metasearch” capability that allows users to search board documents of other BoardDocs’ client-districts, the lack of need to maintain and pay for physical storage space, and BoardDocs “outstanding customer service.”

She then acknowledged that there are a few drawbacks to making the switch to a paperless system.

There would be a learning curve in terms of getting accustomed to everything being electronic, she said. Osinski also noted that access to a computer and the Internet would be required to access board documents, which could pose a limitation for some families. She also pointed out that the board might be limited in terms of meeting locations. However, she said she could mitigate constraints on location by creating a “hot spot” in her computer that could be used by all trustees to access the Internet during meetings. Finally, Osinski noted that confidentiality is not 100% guaranteed, though trustees countered that the same is true with paper documents.

Andy Thomas asked what would happen if Osinski’s computer was supposed to be the “hot spot” for Internet access, but she was not able to attend the meeting. Osinski replied that there would be redundancy training and that the district would have others who could sit in for her. She also noted that she has only missed three board meetings in eight years.

The annual cost for BoardDocs would be $9,000, a nearly $2,200 increase per year compared to creating paper board packets, Osinski said. The cost for the first year includes $1,000 in training and implementation costs. The product can be fully customized, comes with 24-hour tech support 365 days a year, allows the district to archive up to 10 years of data, and includes all upgrades. Also, the district maintains all ownership of its data.

Osinski presented a set of references to the board and opened the floor to discussion.

BoardDocs: Board Discussion

Christine Stead pointed out that BoardDocs would not save money – although it would significantly lighten Osinski’s workload, the district was not planning to decrease her position.

Trustees expressed gratitude to Osinski for her presentation and asked a few clarifying questions about hardware requirements, system capabilities, and confidentiality.

Osinski reiterated that using BoardDocs is as safe or safer than using paper. She noted that in 11 years of business, BoardDocs has never had a security breach, adding, “… but you can never say never.”

Deb Mexicotte told Osinski, “I think it is the right thing to do and we will all get used to it. But one of the most compelling things is how excited you are about it.” Simone Lightfoot agreed that Osinski had made a good case for the switch to BoardDocs, and had allowed it to grow on trustees who had been more reluctant.

Susan Baskett asked about the timing of implementation and training, and Osinski said it would be a six-week implementation, or until everyone is comfortable with it. Glenn Nelson suggested a target of having BoardDocs fully implemented at the board’s April 11 meeting.

Outcome: Trustees unanimously approved moving to BoardDocs, a paperless document management system, as part of the consent agenda.

Liability Insurance Renewal

Superintendent Patricia Green introduced deputy superintendent of operations Robert Allen to explain the shift in the district’s insurance premium costs. The district’s liability insurance is renewed annually on Feb. 1.

Allen explained that the bids that came back from the district’s insurance agent, the Hylant Group, were significantly higher than last year. That led Allen to request that Hylant re-bid the district’s coverage with other insurance carriers. After examining a set of new bids, Allen said, he recommends switching insurance carriers from Zurich to Affiliated FM – not to lower the cost of insurance premiums, but in order to lower the amount of increase.

Allen also explained that it’s reasonable to have expected an increase in premium costs, given the district’s claim history over the past two years. As examples of claims made under the district’s coverage, Allen noted an increase in computer theft, a lightning strike at Northside Elementary, a flood in the boiler room at Forsythe Middle School, a transformer failure at Pioneer High School, and an exhaust fan fire at Ann Arbor Open.

Trustees asked if the coverage from the new carrier is equivalent. Allen explained that it’s actually a bit more extensive in terms of flood coverage and crime risk mitigation, but that everything else is pretty much consistent.

Simone Lightfoot asked if Affiliated FM is a known company, and Allen answered that yes, they are one of the biggest companies in school liability. Susan Baskett asked if the company was local, or was a historically-underutilized business (HUB). Allen said he would get back to the board about the firm’s location, and that he did not believe is was a HUB.

Outcome: Trustees approved the shift in liability insurance carriers as part of the consent agenda, which also included three sets of minutes approvals.

Washtenaw Alliance for Education

Deb Mexicotte asked Glenn Nelson to review a resolution he wrote for AAPS to join the Washtenaw Alliance for Education (WAE), a consortium of school districts in Washtenaw County focusing on legislative issues.

Nelson summarized the proposed resolution as having four themes: (1) closer coordination among the Washtenaw County school districts; (2) improved communication between board members and superintendents; (3) continued, more intense work on coordination and collaboration of service provision within the county, such as transportation and human resources; and (4) being a vehicle for advocacy on state legislation.

Christine Stead suggested that because the board had already discussed the WAE extensively during its organizational meeting on Jan. 18, the board should consider their Feb. 8 discussion as a second briefing. She also noted that approving the resolution to join WAE at the Feb. 8 meeting would allow AAPS to share the news at the legislative breakfast on Feb. 13. Trustees agreed to move the item to the consent agenda, but it was later pulled out for a full reading of the resolution.

Andy Thomas asked for clarification on who would be part of the WAE. Nelson explained that each district will have three seats on the WAE board – two district board members and the superintendent. For AAPS, Nelson, Stead, and Green would sit on the WAE as AAPS representatives. Thomas also asked Nelson to explain that this would not have any impact on taxpayers.

Nelson responded that there would be no increase in trustee salary for sitting on the WAE. “This will decrease our school board wages from 25 cents an hour to about 20 cents an hour,” he quipped. Mexicotte noted that 25 cents an hour is “not too far off,” and pointed out that trustees are paid $130 a month in total for their service.

Trustee Irene Patalan said this was “the exact right step,” and expressed her hopes that “better things will happen for our students with this kind of alliance.”

Nelson noted that the school districts in Washtenaw County are diverse, and that when the WAE takes a position on a piece of legislation, it would need to be with a consensus of the districts present. This means, he said, if the WAE finds ways to make things better for students in these diverse districts – representing rural, urban, small town, affluent, and distressed areas – it could be a model for the state.

Green added that she worked with a similar alliance in her previous position in Pennsylvania. She said that if a WAE were in place, it could provide a venue to discuss transportation and other regional issues. She also noted that as AAPS is embarking on professional development for social and emotional learning, the WAE could offer revenue enhancement opportunities. “That’s part of the richness this model can provide,” Green said.

Outcome: The resolution to join WAE was approved unanimously after being moved to the consent agenda, and then pulled out for a full reading of the associated resolution.

Length of Board Terms

Deb Mexicotte reviewed that new state legislation now requires the district to hold board elections every even-numbered November, which had caused the board to consider switching from four-year to six-year terms in order to prevent the possibility of a majority of the board turning over in one election. As it now stands, every other election will allow four seats to potentially turn over on the seven-member board.

However, Mexicotte continued, based on the board’s discussion at the previous meeting on Jan. 18, it seems that trustees feel that sticking with four-year terms is in the best interest of the district. She noted that in the past, large swings of the board membership have not been the norm, even when they have been possible.

Trustees expressed general agreement for four-year terms.

Christine Stead added that the amount of legislation passed on K-12 education last year, such as this law requiring even-numbered year elections, was “ridiculous… Who does this serve?” she asked.

Andy Thomas noted that moving to hold board elections in even-numbered years will make the cost of campaigning significantly higher, and moving to six-year terms could limit the candidate field even more by increasing the time of the required commitment.

Mexicotte agreed. “This is the right level of commitment. I don’t want to make the bar any higher than it already is.” She noted that by not approving a resolution to follow the new law, “We did what we could to register our displeasure.” At best, she said, this new election mandate does nothing to improve the education of students, and at worst, has made it more difficult for citizens to serve on the board.

Outcome: The board took no action, leaving their board terms at four years.

Student Engagement

The board often invites segments of the student population to perform at the beginning of board meetings. At the Feb. 8 meeting, board members heard from Riot Youth, a group for LGBTQ (lesbian, gay, bisexual, transgender, and questioning) students and their allies. In addition, the board has broadened its invited associations to include regular reports from a wider group of students. The Feb. 8 meeting saw the first installment of high-school-specific student reports, from Pioneer High School.

Student Engagement: Riot Youth “Gayrilla Theater Project” Presentation

Riot Youth, a group for LGBTQ students and their allies, explained that social support and social justice were the goals of their group. They reported that they had conducted a climate survey concerning sexual identification, race, appearance, and other items, covering 1,200 students in four schools. They explained that they had taken the survey results, along with personal stories, and woven them into the “Gayrilla Theater Project,” inspired by the name of the Guerilla Girls theater project.

Riot Youth representatives then noted that the state of Michigan has just passed an anti-bullying law that requires all districts to have an anti-bullying policy. Saying that they would be back the following week to talk to the board specifically about their suggestions of ways to add to the AAPS anti-bullying policy, they then performed a brief skit for the board.

The skit focused on the marginalization of queer youth in AAPS, and noted that 10.5% of students surveyed identified themselves as gay, lesbian, bisexual, transgender, or questioning. These students face a lack of queer sexual health information in health classes, regular verbal abuse, higher risks of physical harassment and suicide, and ongoing isolation, they said. According to the skit, only 62% of queer students feel safe in AAPS, and teachers, counselors and staff members rarely intervene when LGBTQ youth are harassed.

We tell our stories because we are good students not realizing our potential, they said. “We are an at-risk population.”

Deb Mexicotte and Glenn Nelson thanked the Riot Youth for performing and said they would be pleased to continue the conversation. “We really think we can make things better for you,” Mexicotte said.

Student Engagement: Report from Pioneer Students

Four students from Pioneer High School – Charlie Geronimus, Aidan Geronimus, Javon Williams, and Chelsea Racelis – gave a report to the board. The students began by explaining a new schoolwide communication system, which allows for greater student feedback to student council and administration. They noted that lunch time has been going well, and has brought the school together as a whole. They also reviewed a school-wide student council goal of sending Pioneer’s special education students to the Special Olympics. They said the whole student body has really backed the goal, which will require $6,000, but said that they hoped the board would choose to allocate money for Special Olympics in the future.

Pioneer High School student Charlie Geronimus addressed the board.

In terms of the budget, the Pioneer students noted that the arts programs in the district are incredibly rich, and noted that Pioneer students will be playing at Carnegie Hall later this year. “We have an incredible amount of talent in the music department, but we are faced with threats of our budgets being cut. We would like to ask when the budget cuts come around that you could keep in mind the excellence this district has had in the arts,” the students said.

The Pioneer representatives also praised their principal, Michael White. They said he is doing an amazing job, but that some kids still don’t care. “Classrooms are being run as if everyone is in the 10% [of students who don’t care]. The 90% that know what they’re doing – they don’t need to be disciplined so much.”

There is a level of respect that students are expected to give, they said, but they don’t feel like they are getting back the respect from some teachers that they deserve. Citing teachers who have no lesson plans, use tests printed off the Internet, or otherwise slack off, the representatives requested a mechanism, such as a drop box, where they could give direct input into teacher evaluations. “Teachers need to do their homework,” the Pioneer representatives said, “We would appreciate the ability to more easily bring it up to tell you when teachers are not doing their jobs.”

Multiple board members thanked the Pioneer students for their presentation, and for sharing their voices. Simone Lightfoot and Susan Baskett each noted appreciation for their attire – all four students were dressed in formal business clothes. “Image is important,” Lightfoot said, “and your bold diplomacy is great. I look forward to you holding us accountable.”

Baskett asked if they had had input into the school climate survey recently done at Pioneer. Student council president Charlie Geronimus answered that he believes the climate at Pioneer has improved since White was made principal. “I can’t speak to things like what Riot Youth was talking about,” he said. “But just because I haven’t seen it, doesn’t mean it’s not going on.”

Superintendent Patricia Green added that the board will be given a report on last year’s climate surveys at the next committee-of-the-whole meeting.

Administrative Leave for Thurston Teacher

Sherry Murphy, a teacher at Thurston Elementary School, was placed on administrative leave on Nov. 28, 2011. It prompted public commentary at the Feb. 8, 2012 board meeting.

Administrative Leave for Thurston Teacher: Public Commentary

Three parents spoke to the board about the placement of a Thurston 4th grade teacher on administrative leave, with no explanation given to parents or students.

Charlie Adams, mother of a 4th grader with dyslexia who was specifically placed in Murphy’s class due to her 30 years of experience, said that her child has been “thrown to the gallows” with the long-term substitute the class was given. Adams also pointed out that her daughter had numerous substitutes in her first two years at Haisley Elementary, and that she was finally stable academically. Adams said she has requested that her daughter be moved to another class to no avail, and said the current situation is unacceptable. Adams said the students miss Murphy desperately, and called her disappearance from the classroom “mysterious.”

Kristen Mogbo added that her 4th grader has the “math version of dyslexia,” and had also been placed in Murphy’s room specifically because of Murphy’s experience and skill set. Most troubling, Mogbo said, is the absolute lack of communication. She said she is not looking for personal details, and respects the need for confidentiality, but is requesting a timeline of when the situation might be resolved. “I don’t understand why administrative issues are being worked out in the midst of a school year,” Mogbo said. “I keep being assured that Dr. Murphy has done nothing wrong… I am extraordinarily distressed with the secrecy of the whole thing. Is there any form of response possible?”

Ben Colmery argued that his expectations have been crushed, after finally getting his daughter’s dyslexia addressed, to have Murphy removed from her classroom. He noted that he and his wife have their daughter tutored twice a week, and are doing their part to help, but he said that Murphy was critical to his daughter’s academic success. Colmery noted that Murphy was placed on administrative leave with 10 minutes’ notice, and was told not to discuss anything with anyone. But in this town, Colmery said, “There are no secrets.”

Before Colmery could continue, board president Deb Mexicotte interjected. She apologized for interrupting, but said she wanted to be sure that Colmery was “protected,” and warned, “If you make allegations, there are opportunities for people to allege illegality.”

Colmery asked, “Are you telling me I’m a risk for libel?” Mexicotte answered that the board was interested in what Colmery had to say on a macro level.

Colmery paused briefly, and then continued with his statement, saying that it appears to him that the district’s decision to remove Murphy was an economic consideration, not any other. “The thing you need to understand,” he said, “is my daughter is not a car on an assembly line … She is my daughter. I am her advocate.”

Administrative Leave for Thurston Teacher: Comment from AAPS

AAPS superintendent Patricia Green asked Dave Comsa, AAPS assistant superintendent for human resources and legal services, to address the public commentary about Murphy. Comsa said he could not get into specifics regarding personnel matters, but said that there is a certified, highly qualified substitute teacher in the classroom. He continued by saying that the reason for Murphy’s absence had nothing to do with economics, and that the district was working as fast as possible to resolve the situation. Mexicotte noted that the confidentiality rules are in place to protect not only the district, but also the employees.

A member of the audience then addressed the board, saying that Murphy had asked for the “gag rule” to be removed­­­­­­­.

The board does not typically respond to comments that are made from the audience. However, Mexicotte acknowledged the audience member’s comment, noting that the district is bound by legal and contractual circumstances.

Green invited Dawn Linden, AAPS assistant superintendent of elementary education, to comment. Linden said that although she understands parents’ frustration, the district “does not know about a return date [for Murphy]” and cannot share any additional information. Linden also reiterated Comsa’s statement that the long-term substitute in place is highly qualified.

A member of the audience again spoke, saying that Murphy’s substitute was not “highly qualified,” and again Mexicotte acknowledged the comment, saying that the term “highly qualified” is being used in the same sense as the state of Michigan uses it.

Mexicotte then asked Green to speak to one parent’s contention during public commentary that his daughter had experienced an excessive number of substitutes. Green answered that “the ripple effect of making the changes requested have been pondered, and there are implications that would create another situation if the requests are honored.”

An audience member again asked if the board could at least offer a timeline for resolution of the situation, and argued that if the children are not getting Murphy back as a teacher, they should be told so they can mourn that, and say goodbye. Mexicotte answered that she appreciated the speaker’s frustration, and directed administration to work through the process as efficiently as possible.

Trustee Christine Stead added that she would like to know if the families involved at Thurston could be walked through the process more, while still protecting confidentiality, saying “that might be helpful in this case.”

An audience member again said she was disappointed, and said that her requests to have her daughter moved were not unreasonable at all. Mexicotte then ended the somewhat rare discussion between the board and audience members, saying that the board appreciated her comments and had directed administration to respond as they are able. But Mexicotte concluded that the board needed to move on with the meeting.

Mexicotte then stood and gestured to the parents who had spoken about Murphy. Mexicotte and the parents left the board meeting room together. Mexicotte returned to the board table roughly five minutes later.

All-Day Kindergarten, Test Scores

AAPS is currently weighing the possibility of moving to an all-day kindergarten program district-wide instead of the combination of half-day, all-day, and extended-day options it currently offers. The impetus for possibly moving to all-day kindergarten is the apparent intention of the Michigan legislature to cut kindergarten per-pupil funding by half for all students enrolled in a half-day kindergarten program.

All-Day Kindergarten: Public Comment

Tina Richmond, parent of a first grader at Haisley Elementary School, addressed the board on a range of issues, saying she believed the district was operating at a bit of a “trust deficit.” She said she was dismayed to learn that the district has been accepting the full foundation allowance for kindergarten students, but not offering all-day kindergarten at all schools. Her options at Haisley, she said, had been to drive her daughter to another district school [one with all-day kindergarten] for six years, or to pay $4,000 for an all-day kindergarten option at Haisley. Richmond also noted that her daughter’s kindergarten class had 27 students, and that parents had had to beg for an aide.

Richmond also noted that she was pleased that the new MEAP (Michigan Educational Assessment Program) cut scores would more accurately reflect student achievement. But she was “disappointed that a district with such credentials would give such low achievement scores.” She urged administrators to be realistic in their communication with parents about the MEAP cut score changes. “I’m not a parent who is out there thinking we’re great,” she said. “What we’re doing is coming up to the national standards.”

“Cut scores” are defined in a FAQ posted on the Michigan Dept. of Education website: ”Scores for all state assessments are reported in ranges called performance levels. Both MEAP and MME [Michigan Merit Examination] use four performance levels: Advanced, Proficient, Partially Proficient, and Not Proficient. A cut score is the point on the scale that separates one performance level from the next. Cut scores were approved by the State Board of Education.”

All-Day Kindergarten: AAPS Discussion

Later in the meeting during agenda planning, Simone Lightfoot said she wanted to clarify some of Richmond’s comments on all-day kindergarten, saying “the sooner we can get [information on all-day kindergarten] out, the better.” Deb Mexicotte added that the way kindergarten funding has been used in the district was a “traditional structure that had been in place for a very long period of time.”

Superintendent Patricia Green asked deputy superintendent Alesia Flye to speak briefly about the communication being done with parents regarding the change in MEAP cut scores. Flye said communication has been sent at the building level and district-wide, and that all districts in the state of Michigan are being aligned.

Also during the agenda planning portion of the meeting, Glenn Nelson suggested that the board address the question of whether to move to all-day kindergarten as soon as possible. “I know that the administration has been working and I realize that work needs to get to a certain place, but let’s be conscious that that is an important issue that can be brought as soon as it’s ready,” he said. Green said a report on all-day kindergarten would be coming to the board “very shortly.”

Association Reports

At its January organizational meeting, the board named five associations to make regular reports to the board, and instituted a rotational system of student presentations. The board associations are: The Black Parents Student Support Group (BPSSG), the Ann Arbor Parent Advisory Committee for Special Education (AAPAC), the Parent Teacher Organization Council (PTOC), the Ann Arbor Administrators Association (AAAA), and the Ann Arbor Education Association (AAEA). The BPSSG, AAPAC, and PTOC addressed the board at the Feb. 8 meeting. A presentation from Pioneer students is described above, in the “student engagement” section of this report.

Association Reports: Black Parents Student Support Group

Leslie McGraw reported for the BPSSG, saying that the group did not meet in January, but did collect dates and locations of various Martin Luther King Jr. Day events. She noted that many BPSSG members also attended “Beyond the Bricks,” an event sponsored by the Ann Arbor Links Inc. group.

McGraw shared the URL of the group’s new website – www.dwbpssg.org – and said the group will be working to share suspension data with the community and discuss how to improve the statistics. She noted that Bryan Johnson of the BPSSG was one of a group of advisors working with superintendent Patricia Green on addressing discipline disparities.

Finally, McGraw reported on the Huron High School Rising Scholars Saturday school, which served more than 300 students over two weekends, and was open to all schools. Upcoming next steps for the BPSSG include the possibility of establishing a 501(c)3, and programming for National African-American Parent Involvement Day.

Association Reports: Ann Arbor Parent Advisory Committee for Special Education

Scott Zeleznik addressed the board for the AAPAC, beginning with comments on the recent alleged sexual assault of a special education student by another special education student at Eberwhite Elementary.

He suggested first that AAPAC is concerned that special needs students will be “vilified and further isolated by this incident.” He urged everyone to remember that bullying and abuse issues affect all children, and that special needs children are more likely to be victims than perpetrators – because of their inability to effectively speak for themselves in many cases.

Secondly, Zeleznik said the incident has prompted many parents to question whether to trust AAPS to protect their children and to inform parents of what is really taking place in the classroom, as they are legally required to do. He argued that abusive behaviors among students need to be identified and prevented from recurring, and suggested to administration that the district hold forums with parents to discuss the issue and how it relates to their specific school environment. He also noted that change needs to come from the administration in terms of securing student safety and well-being over the protection of colleagues.

The AAPAC has continued to hold Disability Awareness Workshops, Zeleznik continued, and he invited trustees to attend.

Association Reports: Parent Teacher Organization Council

Amy Pachera reported for the PTOC, noting that PTO officer training took place on Feb 8. The training is given by the NEW Center, she said, and reviews the fiduciary and other legal responsibilities of PTOs.

Pachera noted that the PTOC is in full support of the district’s upcoming technology bond, and looks forward to educating the PTOs about the bond. She also noted that the PTOC will be reviewing the district’s budget in overview at its next meeting, and will look at how the state budget and taxes affect the local budget.

Awards and Accolades

The board unanimously supported two proclamations: National School Counseling Week from Feb 6-12, and Principals Week from Feb. 13-17.

As a part of her superintendent’s report, Patricia Green recognized a number of students who received awards from the Presidential Scholars program, as well as Knowledge Masters Open winners, forensics competition winners, and various student groups who have raised money for certain local causes. She also praised the district’s music and humanities programs. Finally, Green invited everyone to attend the district’s upcoming Orchestra Night on Feb. 16 at Hill Auditorium, a free performance by all AAPS middle and high school orchestras.

Agenda Planning

Several trustees proposed items that they’d like to see on the agenda for future meetings.

Susan Baskett requested an update on the Rising Scholars program.

Simone Lightfoot asked if the board could look into what supports the district has in place for math, particularly the algebra strand, as she has heard many concerns about good students having difficulty with math.

Christine Stead added she would appreciate hearing about classroom-specific “key investments” the district could make to address math, MEAP cut scores, or other things. Deb Mexicotte clarified that the board was interested in considering adjustments to support for classrooms that may have been cut in the past, in order to better meet the district’s academic goals, and superintendent Patricia Green said that administration was looking at that.

Stead said she read an article in a Michigan Association of School Boards publication about how Birmingham schools are charging tuition to out-of-district students instead of participating in Schools of Choice. She noted that it was interesting that they were able to do that, and she wanted to be sure AAPS was aware of that. Schools of Choice students are actually a loss for AAPS in terms of the foundation allowance, because students bring their foundation allowance from their home district to AAPS, and Ann Arbor’s foundation allowance is higher than that of other surrounding districts.

Lightfoot also noted the possibility of charging foreign students tuition as part of an exchange student program. Green responded that she had a breakfast meeting last week with the new president of Washtenaw Community College – Rose Bellanca – and that the potential for such an exchange student program had been briefly discussed.

Items from the Board

Christine Stead noted that the Forsythe Science Fair was coming up on Sunday, Feb. 12, and encouraged people to come by. Also, she reminded her fellow trustees, “You’re just making it harder on yourselves if you have not started training for the Ann Arbor marathon.” She added that she was happy to help do what she could in terms of supporting them through training.

Simone Lightfoot said she had spent time this week with the Rising Scholars program and looked forward to assessing how the district can continue to support and expand that program. She said the program’s success shows her that kids will take any assistance they can get, including a balanced calendar. [A balanced calendar  could feature a shorter summer break and optional "intersessions" – one or two-week long academic or enrichment activities held during breaks in regular instruction, for example.]

Glenn Nelson said he had been happy to see a number of groups in the community coming together to address issues of student discipline, and noted his involvement in a community panel for Skyline High School’s accreditation review.

Susan Baskett thanked the ACLU and Student Advocacy Center for their recent event, and noted that she and Nelson had participated in a meeting of the district’s minority hiring committee.

Present: President Deb Mexicotte, vice president Christine Stead, secretary Andy Thomas, treasurer Irene Patalan, and trustees Susan Baskett, Simone Lightfoot, and Glenn Nelson.

Next regular meeting: Wednesday, March 7, 2012, at 7 p.m. at the fourth-floor boardroom of the Ann Arbor District Library’s downtown branch, 343 S. Fifth Ave. [confirm date]

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Amtrak train pulling away (despite appearances) from the Ann Arbor station on Jan. 25, 2012. Later that same day, Ann Arbor Transportation Authority buses converging on downtown Ann Arbor's Blake Transit Center. (Photos by the writer.)

The Chronicle is taking the pause between council meetings as an opportunity to offer readers a look at Ann Arbor’s current bus system ridership numbers over the last several years.

Part of a 30-year transit vision developed by the AATA includes the relocation of the Amtrak station – from Depot Street to a spot in the city’s Fuller Park. The proposed city/University of Michigan collaboration on the Fuller Road Station includes a large parking structure for the UM medical complex as its first phase. So we’re also taking a look at current ridership data on the Amtrak line through Ann Arbor.

Ann Arbor’s regular fixed route bus system provided 5.95 million rides for fiscal year 2011, which ended Sept. 30, 2011. That’s slightly better than the previous year, but was slightly off the record high year of 6.02 million rides delivered in FY 2009. The first three months of the 2012 fiscal year – October, November and December 2011 – show slight increases over the monthly numbers for FY 2011.

Of those 5.95 million rides provided by AATA in FY 2011, 2.43 million of them (41%) were provided through the University of Michigan MRide program – which allows faculty, students and staff of the university to board AATA buses without paying a fare. The cost for the service is paid by UM to the AATA. It was a record-setting year for the MRide program.

Also making up a portion of those 5.95 million rides were trips taken by holders of the getDowntown go!pass program, which allows downtown Ann Arbor employers to provide free bus passes for their employees for a nominal cost – the cost of the rides is funded through a grant from the Ann Arbor Downtown Development Authority.

In FY 2011, 634,000 rides were provided under the go!pass program – a 23% increase over FY 2010, adding to the trend of monotonically increasing numbers of go!pass rides over the last decade. The first three months of FY 2012 don’t show the same kind of double-digit increases for go!pass use as FY 2011 – they’re tracking roughly the same as last year.

The number of riders getting on and off the Amtrak trains that passed through Ann Arbor during the 2011 calendar year was 141,522. That figure tracked close to the same level of activity the station has seen since 2006 – from 140,000 to 145,000 riders. Through May 2011, Amtrak was on pace to eclipse the record number of riders in 2010 (145,040). But starting in July 2011, ridership was lower in every month (compared to 2010) through the end of the year.

Charts and graphs by The Chronicle – as well as more detailed breakdowns – are provided after the break.

Overall Ridership on AATA Buses

AATA operates on a fiscal year that runs from Oct. 1 through Sept. 30. The data provided by the AATA to The Chronicle is organized based on that time period.

Figure 1. Total AATA Fixed Route Ridership by Year (Image links to larger file)

Figure 2. Ridership on AATA Fixed Route by Month 2004-2011 (Image links to larger file)

Fiscal year 2006 was the first year that AATA ridership crossed the 5 million-ride threshold on its regular fixed route service. By 2008, ridership was just under 6 million and actually nudged past 6 million in 2009. Ridership has remained relatively level over the four years from 2008 to 2011. In 2010, there was a dip of about a quarter million rides, but in FY 2011, the most recent full fiscal year, the number was again just shy of 6 million at 5,954,569. [See Figure 1.]

Figure 2 includes the ridership trend through the first three months of FY 2012 – October through December of 2011. Comparing the dark red line (FY 2012) with the heavy black line (FY 2011) shows an increase in each month of about 30,000 rides.

UM Ridership on AATA Buses

About 40% of rides on the AATA regular bus system are taken by University of Michigan students, faculty and staff under the MRide program. The program is commonly described as one that allows UM affiliates to “ride for free,” which is a chafing point for AATA public relations staff. The program does allow UM affiliates to board AATA buses without paying a fare. But the cost of the rides is intended to be compensated through payments UM makes to the AATA under the MRide contract.

The first MRide agreement was for a five-year period from Aug. 1, 2004 to July 31, 2009. When negotiations between UM and the AATA did not produce a new five-year agreement by July 31, 2009, the two organizations agreed to a one‐year extension of the original agreement for the period from Aug. 1, 2009 to July 31, 2010. Under that arrangement, UM paid AATA a total $1,987,642 to cover the cost of UM affiliate rides.

Then at its Sept. 16, 2011 meeting, the AATA board ratified a new five-year deal from 2010-2015. One difference between the previous agreement and the one that the board considered and approved at the Sept. 16 meeting is that the new arrangement makes explicit a per-boarding amount to be paid by UM. In the previous arrangement, UM agreed to pay a lump sum for the boardings, with additional money contributed through a federal grant for which UM is eligible.

While the federal grant is still a component of the new MRide arrangement, the boarding payment is now explicitly tied to the number of rides taken by UM riders. The current agreement is for UM to pay AATA $1 per ride. The regular fare for AATA buses is $1.50. The MRide rate is based on the cost per ride paid by holders of a 30-day pass, which costs $58. The previous arrangement had worked out to around $0.80 per ride, though it was not defined that way in the contract.

Although early in the MRide negotiations there was some consideration given to UM charging a partial cost of rides directly to its riders through the new swipeable fare box technology recently installed in AATA buses, that possibility was quickly taken off the table.

The count of UM riders is achieved by UM riders swiping their MCards through the AATA fareboxes. However, the usage data is provided to UM, and AATA does not have access to statistics on who is riding the buses – faculty, staff, or students. That information can be analyzed by UM, however.

Figure 3. UM Ridership on AATA Buses by Year (Image links to larger file)

Figure 4. UM Ridership on AATA Buses by Month (Image links to larger file)

By 2008, ridership in the MRide program had more or less stabilized at around 2.3 million rides per year. In the most recent year – FY 2011 – the program had 2.4 million rides [see Figure 3]. The monthly trend for the first three months of FY 2012 shows an increase in MRide program ridership in each month, compared to FY 2011 [see Figure 4]. In December 2011, that increase was only about 10,000 rides, compared to almost 20,000 more rides in January and February. December is a typical trough for MRide ridership numbers, which show seasonal variation tied to the academic calendar.

go!pass Ridership on AATA Buses

Another bus pass program accounts for about 10% of AATA regular bus ridership – getDowntown’s go!pass program. Under the program, downtown Ann Arbor employers can purchase bus passes for their employees at $10 apiece. Participating employers must purchase passes for all their employees. The passes are good for unlimited rides on AATA buses.

The cost of the rides has historically been carried by payments from the Ann Arbor Downtown Development Authority out of its parking fund. At its June 2, 2010 meeting, the DDA board authorized a three-year grant to fund the go!pass program – $445,672 for FY 2011; $488,054 for FY 2012; and $540,060 for FY 2013.

In the past, the AATA has adjusted the charge to match actual ridership – which means that the amount of the DDA grants would likely need to increase as well, if that policy continued. However, a financial crunch at the DDA led the AATA to modify the amount it charges for rides taken under the go!pass program. At its Aug. 24, 2011 meeting, the AATA board voted to set the charges at the same amount for which the DDA had provided grants.

Figure 5. go!pass Ridership on AATA Buses by Year (Image links to larger file)

Figure 6. go!pass Ridership on AATA Buses by Month (Image links to larger file)

Figure 5 shows that the number of rides taken with the go!pass has increased steadily since 2004. That’s partly due to the steadily increasing number of go!passes in circulation. From FY 2010 to FY 2011, the number of passes sold jumped about 10% – from 6,537 to 7,226.

Ridership was up 23% in FY 2011 compared to FY 2010. It’s conceivable that some of the increase could be attributable to a change in the way go!pass ridership data is collected. It’s now collected with swipeable cards that pass holders run through the fare box, instead of depending on a driver’s manual button press. That change started on Nov. 1, 2010.

On the theory that fewer undercounting errors might be associated with a swipeable card system, some increase in the number of rides might be expected due purely to the change in data collection. However, in FY 2008, the program also had a ridership increase that outpaced the increase in passes sold – a 20% increase in ridership with a 5% increase in go!pass circulation. There was no change in data collection method at that time. In addition, there does not seem to be a similar bump in MRide ridership associated with the same change in data collection method, implemented in 2009.

Through the first three months of FY 2012, ridership on the go!pass program is tracking fairly close to FY 2011 [see Figure 6].

Ann Arbor Amtrak Ridership

Ann Arbor is one of the stations on Amtrak’s Wolverine Line, which runs from Pontiac through Detroit to Chicago. Amtrak ridership data is provided online by the Michigan Dept. of Transportation. Service is three times a day in each direction, for a total of six train stops a day. The schedule, westbound and eastbound is: 7:48 a.m. WB, 12:29 p.m. WB, 1:04 p.m. EB, 5:45 p.m. EB, 7:17 p.m. WB, 11:32 p.m. EB.

Figure 7. Ann Arbor Amtrak Ridership by Year (Image links to larger file)

Figure 8. Ann Arbor Amtrak Ridership by Month (Image links to larger file)

In the early part of the 2000s, ridership through the Ann Arbor station climbed steadily to reach 140,000 riders in 2006. [That counts passengers either getting on or getting off the train in Ann Arbor.] Since then, ridership has remained in the range of 140,000-145,000 except for 2009, when there was a clear dip – to about 126,000. That off year could be explained by the economic downturn in the fall of 2008, and by the the fact that average Ann Arbor area gas prices fell from over $4 per gallon in July 2008 to under $2 per gallon by January 2009 [see Figure 7].

Ann Arbor’s Amtrak ridership started off 2011 on a record-setting pace through April, which continued a bit less dramatically through May and June. By July, however, ridership numbers fell below the 2011 figures for every month through the end of 2011. That could be explained in part by decreases in the quality of on-time performance associated with speed restrictions placed on the track by its owner Norfolk-Southern in June 2011. The speed restrictions stem from the need to upgrade the track. Rather than undertake the track work necessary to allow for regular speeds, Norfolk-Southern elected to impose the speed limits. [As an example, the 5:45 p.m. scheduled arrival on Jan. 24, 2012 was 68 minutes late.] And in May 2011, the Detroit News published a column extolling the virtues of the car trip between Detroit and Chicago.

In October 2011, MDOT struck a deal with Norfolk-Southern to purchase the 135 miles of track between Kalamazoo and Dearborn. Track improvements, funded by federal stimulus money, are expected to allow the speed restrictions to be lifted.

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Outgoing AATA board member Sue McCormick receives the traditional token of appreciation from the AATA – a mailbox marked up to resemble an AATA bus. (Photos by the writer.)

Background for the meeting included a proposed four-party agreement between the AATA, Ann Arbor, Ypsilanti and Washtenaw County that would set a stage to allow voters countywide to transition AATA into a countywide-funded transit authority. On Dec. 7, 2011, Ford presented the four-party agreement to the Washtenaw County board of commissioners. The Ann Arbor city council also received a presentation on the proposed four-way agreement at a Dec. 12, 2011 working session.

The four-way agreement is in large part an if-then statement: If an adequate funding source can be identified for a countywide authority (likely through a voter-approved tax) then the assets of the AATA would be transfered to the new authority, along with the existing transit tax the cities of Ann Arbor and Ypsilanti currently levy. The county would file the articles of incorporation, but would not incur any liability.

Also in December, a subcommittee of the advisory group that is reviewing financial aspects of the countywide transit master plan (TMP) met to continue its work analyzing the proposed elements of expanded service. The intended early January finish date for the group’s white paper to be delivered to the AATA has slipped somewhat, because of legislation that may start moving through Michigan’s House of Representatives in January 2012.

Current AATA initiatives mentioned at the Dec. 15 board meeting include ongoing contract negotiations with Michigan Flyer to provide public transit service from Ann Arbor to Detroit Metro airport, the reconstruction of the downtown Ann Arbor Blake Transit Center, and the development of a new website.

Other highlights from the board’s meeting included a discussion of the two-grocery-bag limit for AATA’s para-transit service, and public commentary on a pending lawsuit against the AATA over its decision to reject an advertisement for the sides of its buses that calls for a boycott of Israel.

Internal Organizational Review by Consultant

The board considered a resolution that would have authorized signing a contract with two consulting firms to review and make recommendations on the internal organization of the AATA.

The two consultants are Generator Group LLC and D. Kerry Laycock. After responding to an RFP (request for proposals) issued by the AATA for the work, the two were identified as the top firms among the 10 that responded, and were asked by the AATA to partner on a proposal. The partnership was meant to use the different strengths of the two firms. Generator Group, out of Portland, Oregon, has transit experience, while Laycock taps local talent.

Laycock has been previously hired by the city of Ann Arbor in various reorganizational efforts, including its recent approval of the outsourcing of police dispatching to the Washtenaw County sheriff’s office.

The AATA’s approved FY 2012 operating budget allocates up to $250,000 for such a project. The contract with Generator Group and Laycock would have amounted to $247,000, but no amount was explicitly stated in the resolution the board was asked to approve – a source of concern eventually expressed during deliberations.

Sue McCormick led off the board discussion by noting that the planning and development committee minutes reflected a staff-estimated cost for the contract of $250,000. [Resolutions come to the full board after being vetted by the relevant board committee.] McCormick also noted that the meeting minutes reflected an objection from board member David Nacht, who said he didn’t want to commit more than $100,000. She wondered what the dollar amount was for the contract the board was being asked to approve – no dollar value was indicated in the resolution.

Board chair Jesse Bernstein told McCormick he’d talked with Nacht and with staff, and what they decided was that the staff had heard Nacht’s concern loud and clear. Monthly reports on the consultants’ work would be provided, so that the board would have an “audit procedure.” Coming back to the issue of the dollar figure, McCormick asked if there would be a dollar value when the contract was executed. AATA CEO Michael Ford indicated that the year’s budget called for $250,000 and the contract would be for $247,000. McCormick told Ford that if it’s a $247,000 contract, the resolution should specifically state that amount.

Left to right: AATA board members David Nacht, Anya Dale and Rich Robben.

Nacht then declared that he was going to vote no. He allowed that he did believe it’s important to get feedback on the AATA as an organization. He also had no problem with the process of the vendor selection. However, he did have a problem with how much was planned to be spent. He noted that the dilemma involves the fact that the AATA is undergoing significant changes as it prepares to make a possible transition to a countywide transit authority.

Nacht called it a “chicken and egg” question. An argument for having a broader consulting contract now to analyze the organization is that if the currently unincorporated U196 board becomes a fully-incorporated board with a funding mechanism, then that new board for a countywide authority would benefit from the consultant’s analysis, and that would help the new board to understand how the organization works. However, funding for the countywide authority does not yet exist. And if the countywide authority doesn’t come into being at all, or not at the level that might be anticipated, he would rather see the money spent on direct transit services.

Bernstein wondered if it might be a reasonable option to table the resolution. Responding to Bernstein, Ford noted that he and the board had talked about this consultant analysis through the process of its retreats. Ford said it’s important to make sure that internally the organization can withstand the stresses of a transition – whether that’s to a countywide or “countywide-lite,” authority. [Ford was alluding to the possibility that some municipalities throughout the county might opt out of participating in a new countywide authority.]

There are many factors the AATA is grappling with, Ford said. He noted that the union is very supportive of having the organizational analysis done. Ford characterized the analysis as “overdue.” With resources that he’s requesting, Ford said, he felt he could get the job done.

McCormick wanted to know what the time frame was: Is it a six-month effort or something longer? Ford indicated that it was a 12-month effort. The first phase is an assessment of the organization. From that point, it would be possible to focus on specific areas. McCormick wanted to know the cost for the first phase. Rich Robben, who chairs the committee that had reviewed the resolution, responded to McCormick by saying he’d reviewed the proposal with its various tasks and phases, and found it to be fairly comprehensive and broken down into a good level of detail. There was a good list of deliverables and hours for each consultant. The rates seemed reasonable to him – under $100 per hour. Robben concluded that it was a well thought-out game plan.

Responding to a request from McCormick, Robben said that in the first two months of 2012, the cost – for 180 hours of consultant time – was $14,680, which works out to $81.55/hour.

McCormick told Ford a lot of value could be gained from consultant work under the $100,000 cap for contracts that could be executed without board approval. She ventured that he could work within that cap.

Ford responded by saying that there are checks and balances built into the arrangement. To sign the contract, he said, it had to be for a specific dollar amount. He ventured that it might be possible to proceed with the understanding that he would not enter into the second phase of the organizational analysis without concurrence from the board.

Bernstein suggested that Ford could spend up to $100,000 and as he came close to that amount, he could come back to the board. Ford asked for clarification about whether the contract he’d execute would be for $100,000 or $240,000?Robben suggested that it would be done in multiple phases.

Nacht noted that it’s true that the money is budgeted, and stressed that Ford had not done anything incorrect. He was not questioning Ford’s judgement. But he wondered how much time a bright person needs to read some history, interview a bunch of people, and review previous work. When he did the rough math, Nacht said, it didn’t come close to $247,000.

Bernstein suggested that procedurally, the motion could be withdrawn, with the understanding that the board supports the first two phases, and that the expectation for the third phase is that the board would be inclined to look favorably on it.

Outcome: The resolution to authorize the execution of the consultant contract was withdrawn.

CEO Performance Review, Salary

Board member David Nacht introduced the motion on CEO Michael Ford’s salary and compensation. Board chair Jesse Bernstein asked Nacht to elucidate on the motion and what it contained. Nacht described a letter addressed to Ford, signed by the board chair and board member Sue McCormick in her capacity as treasurer.

The highlights of the provisions, said Nacht, include a base salary of $164,800 annually. [That's an increase of $4,800 from his previous base salary.] Other highlights were one $10,000 lump-sum payment into a 457 deferred compensation plan, and vesting in the AATA employee pension plan effective Oct. 1, 2011.

By way of background, Ford did not receive a raise last year, but was given a one-time additional payment equal to 4% of his annual salary. At the board’s May 19, 2011 meeting, the AATA board had approved a new employment contract with Ford, who was hired in the summer of 2009. [For a Chronicle report on Ford's April 2009 final interview, see: "AATA, CEO Candidate Start Talks"]

Ford’s personnel evaluation took place at a special meeting held Dec. 5, 2011 at the AATA headquarters, and was conducted in a closed session in accordance with Michigan’s Open Meetings Act. Closed sessions are permitted for a variety of reasons, including the regular performance review of personnel, if the employee requests a closed session. When asked by the board at the Dec. 5 meeting if he did request a closed session, Ford confirmed he did, making plain that the OMA requirement for closed sessions was met. The session lasted well over an hour, some of which was conducted with Ford present.

At the Dec. 15 meeting, board chair Jesse Bernstein praised Ford’s work as one of the best experiences Bernstein had ever had in hiring someone. He said he’d been involved in many hirings over the years, both in his own companies and in the course of his service on other boards. Ford has done a great deal of good for the AATA and the community. Right now, Bernstein said, Ford is effectively running two boards – the AATA and the U196 organization that could be a precursor to a fully incorporated Act 196 transit authority. When you talk about herding cats, it’s two herds of cats, said Bernstein.

Outcome: The board voted unanimously to approve the compensation for Ford outlined in the letter.

Countywide Transportation Master Plan (TMP)

For its Dec. 15 meeting, the AATA had no items on its agenda that dealt explicitly with the countywide transportation master plan (TMP), which has been under development for nearly two years. However, the TMP and a possible transition of the AATA to a countywide transportation authority found its way into the board’s meeting in the form of the regular briefings that staff give the board, as well as during public commentary.

During public commentary at the Dec. 15 meeting, Vivienne Armentrout told the board she’d been attending quite a few of the transportation master plan (TMP) meetings. She’s attended those of the financial advisory group, as well as meetings of the unincorporated U196 board. Armentrout thanked Michael Ford for making the meetings open, accessible and for providing information to the audience.

Armentrout said it appears that a new theme has emerged, namely: Maybe a countywide millage will not be necessary. She allowed that Gov. Rick Snyder had floated the idea of a vehicle registration fee that could be used to fund public transportation, but she’d called her state representative’s office and learned that there’s currently no bill in process to establish such a fee. [For additional background, see "Washtenaw Transit Talk in Flux"]

Armentrout felt there was only a remote possibility that such a proposal would be enacted in time to affect local decision-making. She reported that the federal TIGER III funding grants have been announced and the north-south WALLY commuter rail line is not on the list. She told the board she’s waiting to hear if the AATA’s transit master plan will be adjusted to acknowledge that.

TMP: Four-Party Agreement – Ann Arbor City Council Reaction

During his verbal report to the board on Dec. 15, Ford highlighted his presentations to the Washtenaw County board of commissioners and the Ann Arbor city council, which he’d made earlier in the month. He told the board he will be circling back in the next month to ask those two bodies to sign off on the “four-party agreement.” [The Ann Arbor city council is expected to have the item on its Jan. 9, 2012 agenda. It's expected to be on the agenda for one of the county board's meetings in January as well.]

The four-party agreement – between the AATA, Washtenaw County, the city of Ypsilanti and the city of Ann Arbor – is a key stage-setting step for any decision that might be made to transition AATA to a countywide transportation authority. Highlights of the four-party agreement as currently drafted include the role of Washtenaw County – it would approve, sign and file the articles of incorporation for the new transit authority, under Act 196 of 1986. AATA currently operates under Act 55 of 1963.

Under the draft four-party agreement, the cities of Ann Arbor and Ypsilanti would pledge their existing transit taxes to the new Act 196 authority, instead of to the AATA. For Ann Arbor, that’s currently just over 2 mills. [At the Ann Arbor city council working session when Ford made a presentation, Jane Lumm (Ward 2) stressed that the charter millage is actually for 2.5 mills, but has dropped due to the Headlee amendment. ]

The Ann Arbor city council's Dec. 12, 2011 working session included a presentation about the local development finance authority (LDFA). From right to left: Paul Krutko (CEO of Ann Arbor Spark, which has a contract with the LDFA to operate a business accelerator), Skip Simms (vice president, entrepreneurial business development, at Ann Arbor SPARK), and councilmember Sabra Briere (Ward 1). Krutko is serving on the financial advisory group that is assessing funding options for the AATA's planned expansion of services countywide.

For Ypsilanti, which uses the proceeds of its tax (approved in November 2010) to fund a purchase-of-service agreement with the AATA, the levy is just under 1 mill. [One mill is $1 for each $1,000 of a property's taxable value.] The city millage proceeds would only go to the new transit authority after a dedicated countywide funding source for that authority is identified.

Also under the terms of the draft four-party agreement, AATA’s assets (land, buses, facilities, etc.) would be turned over to the new Act 196 authority, but only after a countywide funding source is identified. The draft four-party accord specifies a voter-approved funding source, to be passed no later than Dec. 31, 2014, as a contingency for the transfer of assets to the new Act 196 authority.

Under scenarios currently being discussed, if voters countywide are asked to support a millage, Ann Arbor’s existing transit tax would also remain in place. The time frame specified in the draft four-party agreement means that there are three opportunities in a general election to ask voters to support countywide transit by agreeing to a tax: in 2012, 2013 and 2014.

Recent discussions at the state level have explored the idea of creating enabling legislation for a regional transit authority that could be funded in part by vehicle registration fees. Depending on how that legislation is crafted, local units might be able to impose vehicle registration fees to fund transit without a voter referendum. If that is the scenario that unfolds – i.e., no voter referendum is held, but a countywide funding source is identified – it’s not clear whether the conditions of the draft four-party agreement would be met. [link to annotated .pdf file of four-way draft agreement]

At the Ann Arbor city council’s working session on Dec. 12, 2011, Stephen Kunselman (Ward 3), Jane Lumm (Ward 2) and Marcia Higgins (Ward 4) questioned how the transit service benefits to Ann Arbor taxpayers would be guaranteed. They wanted to ensure that the burden on Ann Arbor taxpayers would be equitably shared with Washtenaw County taxpayers outside of the city.

At that working session, Christopher Taylor (Ward 3) asked that the four-party agreement stipulate that Ann Arbor’s transit tax only be transferred to the new Act 196 authority if a new countywide millage were to gain a plurality of votes within the city of Ann Arbor. That stipulation would guard against the possibility that a countywide millage failed among Ann Arbor voters, but was approved by a wide enough plurality in other jurisdictions that the countywide millage passed.

TMP: Financial Advisory Group – Politics of a Millage

Compared to the scenario that Taylor is concerned about, most observers see the opposite scenario as far more likely: a countywide millage would likely fail among voters outside of Ann Arbor, but the plurality that the proposal might win inside the city would give it enough votes to pass countywide. That’s the view that state representative Mark Ouimet (R-District 52) expressed at a Dec. 16 meeting of the TMP financial advisory committee.

The group that met on Dec. 16 is a committee of a larger group that is reviewing the financial viability of the expanded services outlined in the AATA’s TMP. Their starting point was a two-volume document on funding options. [.pdf of Part 1 of Vol. 3 Transit Master Plan Funding Options] [.pdf of Part 2 of Vol. 3 Transit Master Plan Funding Options].

The plan itself is laid out in two other volumes. [.pdf of draft "Volume 1: A Transit Vision for Washtenaw County"] [.pdf of draft "Volume 2: Transit Master Plan Implementation Strategy"]

State Rep. Rick Olson (R-District 55) sat in the audience of a Dec. 16 meeting of a financial advisory committee that is looking at funding options for the AATA's planned expansion of services in and outside of Ann Arbor.

The Act 196 legislation – under which the countywide transportation authority would be incorporated – provides an opportunity for an individual municipality to opt out of the authority. In a municipality that opts out, no millage would be levied, and correspondingly no transit service would be offered.

At a Dec. 7 meeting of that same financial advisory committee, Paul Krutko – who’s CEO of Ann Arbor SPARK – ventured that one way to attract Ann Arbor votes for a countywide millage would be to at least incrementally reduce the transit tax that Ann Arbor residents already pay. Terri Blackmore, executive director of the Washtenaw Area Transportation Study (WATS), responded to Krutko by saying she felt that if Ann Arbor’s tax were reduced, such a move would reduce support outside the city for a countywide millage.

Jonathan Levine, professor of urban and regional planning at the University of Michigan, commented on the research he’d done to try to discover which voter attitudes lead to positive votes on transit millages. While some people talked about the need to pitch transit millages to drivers, on the idea that they would get a benefit from reduced traffic on the roads they use, he said that’s not what correlates most strongly with yes votes on a millage.

Instead, he said, the strongest predictor for yes votes on a transit millage was being generally supportive of other government services like libraries and schools. If you basically support the government as a provider of services, then you are also inclined to support transit, he said. Outside of Ann Arbor there are more “small government” types, he said, while inside of Ann Arbor, there are more “big government” types.

Jonathan Levine, professor of urban and regional planning at the University of Michigan, during the Dec. 7, 2011 meeting of a financial advisory committee. In the background are Jim Kosteva, director of community relations for UM, and Ric Devore, regional president of PNC Financial Services Group Inc.

Levine said that if he voted for the countywide millage, as a “softhearted, bleeding-heart liberal” his working assumption would be that there’s a cross-subsidy for areas outside of Ann Arbor. That is, Ann Arborites will get more service than they do now, if they vote for an additional millage, but that additional service may not match exactly the extra they’ll pay in a countywide tax. He said he felt as a voter, he’d need to give non-city residents slightly more service than what they were paying for, because those residents fundamentally might not perceive the benefit of public transit.

Part of the audience at the Dec. 16 meeting of the financial advisory committee was state representative Rick Olson (R-District 55), who was there to help educate himself further on transportation issues. He told The Chronicle that sometime in January or February 2012, he thought that enabling legislation for a regional transit authority and for the ability of local jurisdictions to assess vehicle registration fees might start moving through the House. If it turns out that vehicle registration fees can be tapped as an alternative funding source, it might not be necessary to ask voters in Washtenaw County to approve a new transit millage.

TMP: Airport Service

One of the themes that has emerged in many of the financial advisory group’s discussions is the idea of public-private partnerships. Not everyone in the group supports every possible such partnership. As the committee worked its way through the list of expanded services planned by the AATA, some members questioned the idea that the AATA would provide transportation service between Ann Arbor and Detroit Metro airport.

For example, Paul Krutko has expressed a reluctance to have the AATA compete with existing private companies that currently provide the service. [At the city council's Dec. 12 working session, Jane Lumm (Ward 2) expressed a similar concern, contending that airport transportation is an already well-developed market.] Countering Krutko was Jonathan Levine, who argued that the existence of a service provided by the private sector did not necessarily mean that the service is adequate.

The AATA continues to move ahead with its plans to offer airport service through a private contractor. At the AATA board’s Dec. 15 meeting, CEO Michael Ford reported that the AATA is still working with Michigan Flyer, continuing to negotiate the Ann Arbor-to-Detroit Metro airport service contract, working out different aspects of the deal – including parking, fares, and the connection to other regional transit.

Ford reported he had received conflicting information about airport vehicle entrance fees. He had previously reported there would not be a fee charged to Michigan Flyer to enter the airport, operating as AATA’s contractor, therefore qualifying as public transit. Ford had specifically been told that wouldn’t be an issue, he said, but he had just found out that it might actually be an issue after all.

Blake Transit Center: DDA Partnerships Committee

As part of his report to the board at the AATA’s Dec. 15 meeting, CEO Michael Ford included the fact that AATA’s manager of maintenance, Terry Black, had presented the latest concepts for the Blake Transit Center to the partnerships committee of the Ann Arbor Downtown Development Authority. That committee held its regular monthly meeting the previous day, on Dec. 14.

At the DDA’s committee meeting, Black began his presentation by saying the AATA is excited about the project and that it’s long overdue. The existing center is inadequate for the AATA’s current operation, he said, let alone the kind of expansion of service that the AATA is contemplating. The design has been under development for over a year, he said, and a lot of community involvement has been included. There will be additional community involvement as well, he said.

Black didn’t have exact numbers, but said thousands of riders come in and out of the BTC every day. Some routes are in and out in five minutes, so it’s an active center currently, he said. Responding to a question from Susan Pollay, executive director of the DDA, Black said the center operates seven days a week. On weekdays, the first bus arrives just before 6 a.m. and the last bus out leaves around 10:30 p.m. at night.

Black ticked through who’s doing the work: the architect is DLZ and the construction manager is Spence Brothers. The design should be finalized soon. It’s expected to be a LEED-certified building. The anticipated construction start date is April or May of 2012.

The design of the floor plan is 95% complete, Black reported. It had helped the project for AATA to acquire an additional 6-foot-wide strip of land to the south of the AATA’s midblock parcel from the city of Ann Arbor. [This was a land sale authorized by the Ann Arbor city council at its Sept. 19, 2011 meeting]. The AATA is now working with representatives from the adjacent Federal Building to obtain a 10-foot easement of land to the north of the center. This would create a mid-block green space walkway that connects Fourth and Fifth avenues, running between the new BTC and the Federal Building, Black said.

This AATA-owned parcel, where Blake Transit Center is located, sits in the middle of the block bounded by Fourth and Fifth avenues on the west and east, and by Liberty and William streets on the north and south. The 6-foot-wide strip that runs along the southern edge of the parcel's western half was sold to the AATA from the city of Ann Arbor. (Image links to higher resolution view. Parcel map and aerial photo from Washtenaw County's website: gisweb.ewashtenaw.org/website/mapwashtenaw/)

Black described how the AATA had hosted stakeholder advisor committee meetings, and held design committee meetings within the AATA. The AATA had gone before Ann Arbor’s design review board to talk about the process, Black said. The AATA had also done rider surveys before starting the project, asking riders what they’d like to see in a new transit center. In January 2012, the AATA will go back with design drawings and proposed signage to check that what they’ve done is consistent with what riders wanted. The week of Jan. 9 is scheduled for those follow-up surveys. Black mentioned that the AATA is looking to get some credits from DTE for using more efficient HVAC equipment in the new building.

Black said there were two reasons for locating the new building on the other end of the block, instead of building it on BTC’s current footprint. First, this approach will allow for continuous operation of the current BTC during construction. Second, by locating the BTC on the south side of the parcel instead of the north, depending on how the former YMCA lot is developed, the immediately-adjacent location of the new BTC will provide an opportunity for some kind of transit mall. [The site of the former YMCA – located on the north side of William, between Fourth and Fifth avenues – is owned by the city and now used as a surface parking lot.]

Speaking to BTC’s new floor plan, Black described three entry points. He pointed out the bathrooms for the drivers and the ticket lobby. There will be space for three customer reps, as well as for the equipment needed for making photo ids for various kinds of ticketing. Currently, the photo ID service is offered only at the AATA headquarters at 2700 S. Industrial Highway.

At the AATA headquarters on South Industrial Highway, the carpet is marked with the exact location where people should stand to get their photo IDs taken for various kinds of fare media. The planned new Blake Transit Center downtown will have similar facilities. The current BTC does not offer that service.

The layout of the seating in the waiting lobby is currently being finalized. Part of that includes decisions on how to display real-time sign information about bus arrivals and departures. The total square footage, with the first and second stories, is 7,500 square feet. Black characterized it as “not that big.” The AATA is building it to the maximum footprint for the site it has, he said.

The second story will include a remote dispatch area and the AATA’s emergency operation – the agency is required to have a contingency for its headquarters on South Industrial Highway, in case that facility goes down. Also on the second floor will be a supervisor’s office, an IT room, bathrooms, and a driver break room. Black explained that only some drivers pull out of the station with their bus and do an 8-hour shift. Others will drive a four-hour shift, have two or four hours off, then go back and drive four more hours. The second floor would also include a small meeting room, an employee training area, and an office for the getDowntown program.

Pollay noted that the flow of bus traffic will change when the new BTC is constructed – buses will come into the BTC from Fourth Avenue and exit onto Fifth Avenue. She said one of the benefits is that buses will not need to make a left turn across traffic, as they do now. [Fifth Avenue is one-way southbound, the direction of the turn that buses will make.] DDA board member Sandi Smith noted that with an entrance to the new underground parking garage located just upstream from the BTC entrance onto Fifth Avenue, that lane is likely not to have traffic.

DDA board member John Mouat asked Black about the implications of the AATA’s planned countywide service expansion for the role of Ann Arbor’s downtown transit center. Is there enough space? Black said it would be nice to have some space to the south as well. Zipcars, for example, could be stationed there, as well as other types of service. The current plan for BTC addresses the AATA’s needs today and in the future to a certain extent. The adequacy of the new center will depend in part on how the countywide program grows and develops, Black said.

Chair of the AATA board, Jesse Bernstein – who also attended the DDA’s committee meeting – noted that adding more frequent service on Route #4 between Ann Arbor and Ypsilanti – which will start in January 2012 – will already have some impact. The facility will have its limitations at some point, he said. The north-south rail connector, WALLY, may also have an impact, Bernstein said, if it is eventually funded. If 500 people arrive on a train at one time, that’s 10 buses that need to take them somewhere. From his standpoint, Bernstein said, BTC will always be needed. Black supported Bernstein’s comments by noting that in response to a survey, over 50% of riders indicated that for them BTC is a destination.

The DDA committee also discussed the fact that the design plans for the new BTC include footings that would support a taller structure, if there was interest in building something on top of the planned two stories. Black and Bernstein indicated that the design of the structure would accommodate future development to the south on the former YMCA lot as well. For example, although there is not an entry point from the south, there’s a southern wall that’s designed as not load-bearing, so that the new BTC could be opened up from that side sometime in the future.

This view is from the southwest to the northeast, and shows how AATA's new transit center will sit on the Fifth Avenue side of the block. In the foreground is the former YMCA lot, now used for surface parking.

This view is looking from the northwest to the southeast (across Fourth Avenue and the parking lot of the federal building). The reddish building shown behind the new BTC is the Ann Arbor District Library.

Communications, Committees, CEO, Commentary

At its Dec. 15 meeting, the board entertained various communications, including its usual reports from the performance monitoring and external relations committee, the planning and development committee, as well as from CEO Michael Ford. The board also heard commentary from the public. Here are some highlights.

Comm/Comm: A-Ride – Safety, Two-Bag Policy

During his verbal report to the board, Ford responded to continued criticism from resident Thomas Partridge, made during public commentary at several board meetings, that the SelectRide vehicles are unsafe. SelectRide is the contractor for AATA’s A-Ride paratransit service. Previously, Ford had conducted an investigation of the maintenance procedures and found that there was not a problem. Now, he reported, he will personally ride some of the higher-milage vehicles used by SelectRide to check out the situation for himself.

Ford also reported that he is looking into obligations under the Americans with Disabilities Act with respect to bags that riders of the AATA’s A-Ride paratransit service can bring with them. He reported that he’d spoken with the AATA’s contractor, SelectRide, about the issue. Ford noted that it’s a “shared ride,” so there’s a limit of two bags to make sure there’s enough room for other passengers.

Ford’s remarks came in the context of public commentary from the board’s Nov. 17, 2011 meeting.

Speaking during public commentary at that meeting, Christopher Harris described his experience riding the AATA’s paratransit service, A-Ride, on Nov. 3. On that day, he was doing his grocery shopping, which he does once a month at Kroger. He told the board that his eight-year-old daughter, who accompanied Harris to the board meeting, is his PCA (personal care attendant). He told the board he has Stargardt disease – he’s legally blind.

Harris described being denied a ride because of the number of grocery bags he had – he allowed that in the past he had been told that might happen. At that board meeting, board chair Jesse Bernstein told Harris that he wanted to follow up with him after the meeting to see what the AATA could do. [The A-Ride paratransit service offered by the AATA is a shared-ride transportation service for those who are not able to ride AATA's fixed route service. There's a limit of "one armload or the equivalent to two (2) grocery bags, or two (2) pieces of luggage." .pdf of A-Ride policy]

During question time at the Dec. 15 meeting, board member Charles Griffith asked for more information on the two-bag limit and wondered whether that’s appropriate. The rider who addressed the board at its Nov. 17 board meeting had a concern that seemed reasonable, Griffith said. So Griffith wanted to know if the two-bag limit is reasonable.

Ford responded by saying he would need to check on the size of the vehicle. From AATA staff seated in the audience, the clarification came that the vehicle in question was a sedan. Ford told Griffith that it’s a shared ride. SelectRide had made exceptions on a periodic basis, but indicated that apparently on the day the rider complained about, no exception was made. Ford said he was willing to take another look at it. The AATA is trying to maintain a consistent policy, and two bags, he thinks, is reasonable.

Griffith told Ford he was glad Ford is going to take a ride in the SelectRide vehicles himself. Griffith felt that most sedan trunks can handle the number of bags that the rider had described. He noted that people on limited incomes can only take so many trips. The two-bag limit seemed arbitrary to him.

Rich Robben expressed some surprise that the limit was on two grocery bags.

David Nacht then spoke at length, saying he would like to express that when the AATA provides services for the disabled, it’s critically important the riders don’t feel like they’re second-class citizens. Nacht said there was something incredibly compelling about a visually-impaired person leaving his house with his young child, to get groceries for that child who was helping him. “The idea that our agency would allow our contractor to effectively deprive that person of dignity in the name of enforcing a policy, I think, goes against our values,” Nacht said.

Ford responded to Nacht by saying that the AATA does not want to make anyone feel like a second-class citizen. He would take another look at the issue. Sue McCormick inquired whether the passenger was attempting to carry bags in the trunk or in the passenger area – AATA staff in the audience indicated that it was within the vehicle.

Dawn Gabay, deputy director of the AATA, noted that the trunk area also needs to be available for folding wheelchairs. She noted that the two-bag policy is a long-standing policy. McCormick wanted to know if the two-bag policy is consistent with other transit agencies. Ford replied that he had not looked at that, but could. Gabay added that the two-bag policy has been reviewed by the local advisory council (LAC), which advises AATA on policies related to its service to disabled and senior riders.

Comm/Comm: Bus Advertisement Lawsuit

By way of background, the AATA currently faces a lawsuit over its rejection of a proposed advertisement that included the text, “Boycott ‘Israel’ Boycott Apartheid.” [For a detailed account, see Chronicle coverage: "Bus Ad Rejection Affirmed"]

Before approaching the podium, Henry Herskovitz asked if it was appropriate to speak to the lawsuit that had been filed against the AATA about the rejection of a bus advertisement. Herskovitz noted that public speaking at the start of the meeting is intended to be limited to agenda items, and while the lawsuit was not an agenda item, it was included as part of the meeting minutes that were in the board’s information packet for that evening’s meeting. Board chair Jesse Bernstein told Herskovitz it was fine for him to speak on that topic.

Herskovitz introduced himself as a taxpaying supporter of AATA and a frequent rider. Three board members had conflicts of interest, he contended, in making a decision to reject the advertisement. He emphasized that he supported the right of anyone to join any group they like. However, he said it merits pointing out that Bernstein is a board member of Michigan Israel Business Bridge. MIBB is a nonprofit created “to facilitate business and investment opportunities between Michigan and Israel for their mutual economic benefit.”

Herskovitz contended that a second conflict was the fact that Jerry Lax is legal counsel for the AATA and also a member of the Jewish Federation of Ann Arbor. Board member David Nacht is member and supporter of the Anti-Defamation League, he said. [Nacht's profile on Linked In also lists membership in the American Civil Liberties Union, the group that is providing legal counsel for the plaintiff in the lawsuit against the AATA over the bus advertisement.]

The three men, Herskovitz said, support the State of Israel – they’re free to do that. But they had a conflict of interest when polled for their vote on the ad – an ad that was critical of the state of Israel, which they support, he said.

Comm/Comm: New AATA Website

Mary Stasiak, AATA’s manager of community relations, updated the board on progress in designing the new AATA website. They’re looking at the graphic design, making sure it includes everything it’s supposed to, she said. Surveys have been completed at the Ypsilanti Transit Center, the Blake Transit Center in downtown Ann Arbor and at Busch’s grocery store. Internal staff at the AATA have been asked for input.

A survey was also done at a meeting of LA2M, which is described on its website as ” a non-profit educational organization dedicated to teaching about all things marketing – especially topics related to new media, digital marketing, social media, and web design.” Requests to complete an online survey were sent to the Ann Arbor Center for Independent Living email list, all AATA Twitter followers, Facebook fans, and MyRide subscribers.

Stasiak said one thing she’s happy about is that the AATA has a final design contract. That means that by the end of January, the AATA should be able to begin content integration. In response to a question from board chair Jesse Bernstein, Stasiak clarified that the “usability study” phase would not come until there is a “live site” that people can test out.

Comm/Comm: Sue McCormick’s Departure

Through Dec. 16, Sue McCormick was public services area administrator for the city of Ann Arbor. She left that position to take a job as head of the Detroit water and sewerage department. She also resigned her position on the AATA board.

AATA's CEO Michael Ford and board chair Jesse Bernstein work as a team to prep Sue McCormick's parting token of appreciation on the occasion of her last board meeting.

In acknowledging McCormick’s service to the board, David Nacht said he’d learned a tremendous amount from her. He’d become a better public servant because of her membership on the board, he said.

Rich Robben said he was doubly sad because he would not be working with McCormick any longer in two separate venues. As the city’s public services area administrator, McCormick interacted with Robben in his capacity as executive director for plant operations at the University of Michigan. He allowed that sometimes they banged heads, but said she’d be missed in both venues. Board chair Jesse Bernstein wished McCormick the best of luck and said the AATA would miss her.

On the occasion of McCormick’s last meeting as an AATA board member, she was presented with a parting gift that has become a traditional token of appreciation from the AATA to outgoing board members – a mailbox adorned with AATA markings to resemble a bus.

The Ann Arbor city council voted on Dec. 19 to confirm the nomination of the city’s transportation program manager, Eli Cooper, to replace McCormick on the board. Two councilmembers voted against the confirmation, based on Cooper’s employment with the city. Cooper served previously on the AATA board, from 2005 to 2008. When asked by The Chronicle if he’d received a traditional mailbox for his previous stint on the board, Cooper said he’d not received one.

At the conclusion of the AATA’s Dec. 15 meeting, board chair Bernstein gave McCormick the privilege of making the motion for adjournment.

Comm/Comm: Thomas Partridge

During the first opportunity for public comment at the meeting, Thomas Partridge introduced himself as a resident of Ann Arbor and Washtenaw County and recent candidate for state senate. He advocated for expansion of the AATA’s service countywide, but called for all townships to be a part of the system. He opposes the ability to opt out of the system.

Partridge also spoke at the second opportunity for commentary, toward the end of the meeting. He said he was an advocate for all of those who deserve and need AATA’s services in Washenaw County. He called for an end to the glitz and glamor of PowerPoint presentations and full-color printouts of plans that might end up being “pie in the sky.”

Present: Charles Griffith, David Nacht, Jesse Bernstein, Sue McCormick, Rich Robben, Anya Dale.

Absent: Roger Kerson.

Next regular meeting: Thursday, Jan. 19, 2012 at 6:30 p.m. at the Ann Arbor District Library, 343 S. Fifth Ave., Ann Arbor [confirm date]

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Many of the people attending the Dec. 7 meeting of the Washtenaw County board of commissioners were supporters of Lourdes Salazar Bautista, an Ann Arbor resident who faces deportation. She is standing against the wall in the upper right corner of this photo. (Photos by the writer.)

Public commentary focused on two issues: (1) people lobbying against the imminent deportation of Ann Arbor resident Lourdes Salazar Bautista, and asking commissioners to intervene; (2) nonprofit leaders thanking the board for increasing the budget for coordinated funding, which supports human services agencies. The two-year budget for 2012-2013 approved by commissioners on Nov. 16 had included $128,538 in cuts each year to coordinated funding, but a vote on Dec. 7 restored that amount.

Another budget amendment approved by the board at the meeting relates to the unresolved status of mandated animal control services. County officials are still negotiating with the Humane Society of Huron Valley, which has a $500,000 annual contract for that work. The contract expires Dec. 31, and contingency plans are being made for the case that an agreement can’t be reached. Commissioners approved a budget amendment that requires board approval for any contract for animal control services extending more than 60 days.

Two presentations were made during the Dec. 7 meeting. Michael Ford, CEO of the Ann Arbor Transportation Authority, briefed commissioners about efforts to create a countywide transit system. The board will be asked to approve a four-party agreement between the county, AATA and the cities of Ann Arbor and Ypsilanti that would set a framework for incorporating a countywide transit authority. Voters may eventually be asked to approve a millage for the system – if a dedicated funding sources is not secured by the end of 2014, the effort in its current form would demise.

And in a presentation aimed at priority setting for 2012 and beyond, board chair Conan Smith proposed focusing county efforts on shoring up the county’s east side, an area that’s facing a “perfect storm of despair,” he said, including high unemployment, low graduation rates and poor health. Characterizing his proposal as the start of a board discussion, Smith laid out a variety of options that the county could pursue, including a possible Headlee override or new millage to pay for services. Feedback from commissioners indicated support for developing a strategy to tackle these problems, but a reluctance to limit the focus to only the east side – primarily Ypsilanti and Ypsilanti Township. Several commissioners pointed out that poverty exists throughout the county.

Commissioners also took a range of other actions, including: (1) rejection of a proposal from the Washtenaw County road commission for a possible millage to fund road improvements; (2) a resolution of support for same-sex benefits; (3) an extension of a deadline related to compliance with the state’s 80/20 rule for health care costs; (4) approval of a brownfield plan for Ford Motor Co.’s Rawsonville plant; (5) creation of a board subcommittee on energy policy; and (6) appointments to a variety of boards, commissions and committees.

More Money for Coordinated Funding

The two-year budget approved by commissioners on Nov. 16 had included $128,538 in cuts each year to coordinated human services funding. However, at that meeting several commissioners expressed the desire to find additional funding for coordinated funding. A resolution on the Dec. 7 agenda restored the amount that had been cut, returning the line item for coordinated funding to $1.015 million annually in 2012 and 2013, the same amount that was budgeted for 2011.

Coordinated funds are distributed to a range of nonprofits through a process administered by the joint county/city of Ann Arbor office of community development, partnering with the city of Ann Arbor, the Washtenaw Urban County, Washtenaw United Way, and the Ann Arbor Area Community Foundation. The process gives priority for funding those nonprofits that serve six targeted areas: housing/homelessness, aging, school-aged youth, children from birth to six, health and food. [For background on coordinated funding, see Chronicle coverage: "Despite Concerns, Coordinated Funding OK'd"]

The issue had received some discussion at a Nov. 29 administrative briefing, when commissioners previewed the Dec. 7 agenda. County administrator Verna McDaniel told commissioners that when she initially presented the proposed 2012-2013 budget at the board’s Sept. 21 meeting, more than three months remained in the current fiscal year, which ends Dec. 31. She indicated that there had still been uncertainty about the county’s financial needs for the remainder of this year.

Also, she said, the county received a repayment of captured taxes from the Ann Arbor Downtown Development Authority, and from a settlement with the townships of Ypsilanti and Augusta over a police services lawsuit. [The county received about $242,000 from the DDA, in a payment related to excess capture in the DDA's tax increment financing (TIF) district. That news had been announced in May 2011. The board voted in July 2011 to accept a $749,427 settlement related to the police services lawsuit. The county was paid in August.]

At the Nov. 29 administrative briefing, to explain the reason for the budget amendment assigning the additional funding, board chair Conan Smith noted that there’s increased need for basic human services, like food and housing. He also cited changes in the office of community development (OCD), which was recently awarded a $3 million grant. [The federal grant, administered by OCD, was awarded to the Washtenaw County Sustainable Community project. It's for a project focusing on the Washtenaw Avenue corridor, spanning Ann Arbor, Ypsilanti, Pittsfield Township and Ypsilanti Township.]

Coordinated Funding: Public Commentary

Six people spoke during public commentary at the start of the Dec. 7 meeting to urge commissioners to restore money in the budget for coordinated funding, and to thank them for their support. Some of the speakers had previously lobbied for funding, before the Nov. 16 budget vote.

Paul Saginaw, co-founder and board member of Food Gatherers, with the nonprofit's board chair, Margie Hagene. Both spoke during public commentary in support of coordinated funding.

Margie Hagene, board chair for the nonprofit Food Gatherers, and board member Paul Saginaw – who co-founded Zingerman’s and Food Gatherers – both spoke in support of restoring funding. Food Gatherers is one of the nonprofits that receives money through the coordinated funding process. Saginaw thanked the board for reinvesting in human services and promoting the human potential that surrounds us, rather than discarding it.

Cheryl Elliott, president of the Ann Arbor Area Community Foundation, thanked commissioners for their support of coordinated funding. The foundation is one of the partners in this approach, she said, and is fully committed to it. It’s the right approach at a time of great need, she said, allowing public funds to leverage private dollars. That way, each dollar has a greater impact than it would if invested alone. Other communities are interested in emulating this model, she said. She looked forward to a continued partnership.

Pam Smith, executive director of the Child Care Network, also thanked commissioners. She described two recent volunteer experiences of she’d had, helping a mother shop for children’s clothing through the Warm the Children program, and wrapping gifts that people brought in for needy families at Saline Area Social Services. She’s seen the spectrum – from those in great need, to those who are answering that need. Commissioners have a difficult job, she said, but the community is behind them.

Dick Soble, a board member of both the Washtenaw Housing Alliance and Food Gatherers, and WHA board member Jean Carlberg each spoke in support of reallocating money to coordinated funding. Soble noted that the county helped found WHA, which now involves 26 organizations working to address issues of homelessness. Carlberg said the county has provided a model for public/private partnerships, and she hoped commissioners would continue their support.

Coordinated Funding: Commissioner Discussion

Several commissioners thanked the people who came to speak in support of coordinated funding. Yousef Rabhi said he was proud that the county could restore the funding. Rob Turner noted that the board had made human services a budget priority, and they were cementing that decision by restoring funding.

Leah Gunn said she supported the resolution to restore funding, and she thanked Alicia Ping for Ping’s suggestion to spread the funding over two years. [The original proposal had added $250,000 to the coordinated funding line item in 2012. At the Nov. 29 agenda briefing, Ping had argued that the amount was better allocated over two years. Otherwise, coordinated funding would see a significant increase in 2012, then a sharp dropoff in 2013 if the county couldn’t find money for it at that level, she said.]

At the Dec. 7 meeting, Dan Smith said he wouldn’t support the increase. He noted that the board had just approved the budget at its last meeting, and it was premature to increase funding at this point, especially since the county asked its employees to make sacrifices to balance the budget. He also pointed to the projected $14 million deficit in 2014, which will require additional cuts, saying that the county is in dire financial straits.

Outcome: On a 10-1 vote, the board approved additional money for coordinated funding in 2012-2013. Dissenting was Dan Smith (R-District 2).

After the vote, Ronnie Peterson said he wanted to clarify that contrary to some media reports, he had previously voted against cuts to coordinated funding, the Humane Society of Huron Valley, and Head Start. From The Chronicle’s report of that budget vote:

The final budget vote was unanimous, though three commissioners voted no on specific line items. (Rolland Sizemore Jr. was absent.) Ronnie Peterson, Felicia Brabec and Alicia Ping voted no to cuts for animal control services. Peterson and Brabec also voted no to cuts for Head Start and the coordinated funding of human services. Conan Smith voted no to the line item for the board of commissioners, referring to it only by the line item number. He later said he’d been joking. [.pdf of 2012-2013 general fund budget]

Peterson said it was amazing that they now could come up with more money for coordinated funding, but not for Head Start. [The 2012 budget includes $528,048 in funding for Head Start, but eliminates county support in 2013. The county plans to turn over the program to federal officials by 2013. For additional background, see Chronicle coverage: "Head Start Advocates Make Emotional Plea"]

Peterson wanted to make sure the county honors its Head Start employees, and that the county administration provides appropriate documents to indicate that the decision to relinquish the program was not because of problems with its quality.

Humane Society Update

Ronnie Peterson, who has opposed cuts to the county’s funding of state-mandated animal control services provided under contract with the Humane Society of Huron Valley, asked for an update on negotiations for a new contract. HSHV’s current contract, for $500,000 annually, ends on Dec. 31. The county has budgeted a total of $430,000 annually for 2012 and 2013, which HSHV has indicated is insufficient for the work required by the county. [See Chronicle coverage: "Animal Control Mandate Unresolved" and "Washtenaw County Budget Set for 2012-2013"]

Board chair Conan Smith reported that HSHV board chair Mike Walsh had been sent a draft RFP, including a “scope of work” for animal control services that the county believes are mandated by the state. [.pdf of draft RFP] Representatives from the county and HSHV are planning to meet soon to continue negotiations, Smith said, and he hoped to move quickly to find common ground for a new contract. The negotiating team for the county includes Smith, sheriff Jerry Clayton, and county administrator Verna McDaniel. HSHV is represented by Walsh, Mark Heusel, and HSHV executive director Tanya Hilgendorf.

Peterson pressed for information about what might happen after Jan. 1 if a new agreement isn’t reached. Smith replied by recounting that in October, the county had received a letter from Walsh indicating that HSHV likely wouldn’t be able to continue providing services at the reduced amount, but offering to handle some kind of transitional service until the county sought another provider. Smith said McDaniel has been investigating other options in case the county needs to bid out the work. There is at least one entity, possibly more, that could handle animal control services for the county starting Jan. 1, Smith said, if negotiations with HSHV break down. McDaniel added that she didn’t want to name those other entities, but the county does have options.

The county has budgeted roughly $25,000 a month for animal control services, Smith said. For contracts under $25,000, the county administrator has the discretion to authorize those agreements. Such a contract would be temporary, Smith said, while negotiations with HSHV continue. He said he didn’t view Jan. 1 as a deadline for negotiating.

Regardless of the entity that eventually enters into a long-term contract with the county, Smith said, it’s important that a detailed billing of services be provided to the county. [One criticism of the current HSHV contract is that there's no itemized billing in the monthly invoice sent to the county.] Smith said the bill should list details such as boarding fees per animal and veterinarian services, so that it’s clear what’s being paid for on behalf of the county’s taxpayers.

Some commissioners wanted to ensure that a new long-term contract with HSHV – or perhaps another provider – would be brought to the board for approval. Rob Turner noted that the funding for animal control services is part of the sheriff’s budget now, and that the sheriff has authority to enter into such contracts. The board didn’t approve food service or laundry contracts with the jail, for example, so why should this be different? This had been a concern of his when they originally voted to shift the funding from the “outside agencies” category to the sheriff’s office, Turner said. He felt it had indicated a severing of the board’s relationship with HSHV.

Peterson said he didn’t feel that shifting the funds to the sheriff’s office meant the board had relinquished control. He assumed any contract for animal control services would be coming back to the board.

Smith conceded that this was a gray area. Other funds in the sheriff’s office budget are controlled by the sheriff. Clayton and McDaniel had both indicated that they understood the board intended to remain involved in decisions about animal control services, Smith said.

To clarify the issue, Smith proposed a resolution amending the 2012 budget line item for animal control services, stating “No contract for animal control services that extends beyond 60 days shall be entered into without approval by the board of commissioners.”

Barbara Bergman indicated that she believed the sheriff should make decisions about how to handle animal control services, now that the funds are in his budget.

Outcome: The budget amendment passed on a 10-1 vote, with dissent from Barbara Bergman.

Peterson also brought up the issue of the investment that the county has made in HSHV’s facility. By way of background, in mid-2007 the county board approved the issuance of $6.5 million in bonds for the construction of HSHV’s new animal shelter, plus a $1 million contribution to the HSHV construction fund from its capital reserves. That bond was to be repaid on a seven-year schedule by the county – using funds supplied by HSHV. The bonds were sold in August 2008, with the final payment due in 2015.

To issue to bonds, the county needed to have an ownership stake in the project. So currently, and through the end of the scheduled bond payments, the county owns the animal shelter, and leases the facility back to HSHV. That arrangement is possible through a ground lease agreement in which the county leases from HSHV the property on which the animal shelter is built. HSHV owns part of that land, and leases the other part from the University of Michigan in an arrangement approved by UM on July 17, 2008. The UM lease to HSHV is for $8,000 for the first 30 years of the 65-year lease, with the amount after 30 years reduced to $1 per year.

At the county board’s Dec. 7 meeting, Peterson described the situation as a liability on the county’s books, and said there’s no obligation for HSHV to make payments on the bonds. The taxpayers’ investment in that facility should be protected, he said – that’s an argument in favor of reaching an agreement with HSHV for a new contract.

Turner replied that even if the county’s contract isn’t continued with HSHV, the nonprofit wouldn’t consider leaving its new facility. He also said that losing the county’s contract won’t make or break HSHV financially.

Road Commission Proposal

On the Dec. 7 agenda was a resolution to reject a proposal from the Washtenaw County road commission that included a variety of road improvement projects, and the possibility of a countywide millage (that would not require voter approval) to pay for them.

Road Commission Proposal: Public Commentary

Christine Jones of Ann Arbor said it would be completely unfair for voters not to have a say in raising taxes for road repair. People didn’t elect the county commissioners with the understanding that commissioners would raise taxes, she said. Jones said she wanted to make sure the road tax didn’t pass and that the board heard from taxpayers about it.

Road Commission Proposal: Commissioner Discussion

By way of background, the proposal had been discussed at length by the board in October, when commissioners ultimately decided to defer action until the Dec. 7 meeting.

The board had initially discussed this issue at its Sept. 8 working session, and it was expected to be on the agenda for the Sept. 20 meeting. But it wasn’t until Sept. 23 that the road commission formally submitted its plan to the county clerk’s office outlining a set of possible road projects throughout the county, costing about $8.7 million. [.pdf of projects list and .pdf of map showing the location of the proposed projects]

A truck parked at the Zeeb Road facility of the Washtenaw County road commission.

The plan was then brought forward as an item of discussion at the board’s Oct. 5 meeting. However, no resolution related to the topic was proposed, and no member of the road commission attended that meeting. The following night, at an Oct. 6 working session, the issue was tackled yet again as the board met with Ken Schwartz, a former county commissioner who’s now one of three road commissioners, and Roy Townsend, the road commission’s director of engineering. Schwartz was instrumental in identifying a 1909 state law that would allow the county board to levy a millage for road repair without voter approval.

The item was discussed at some length during a Nov. 29 administrative briefing, held to preview the Dec. 7 agenda items. That meeting was attended by all but two commissioners: Ronnie Peterson and Dan Smith. [See Chronicle coverage: "County Board Poised to Reject Road Millage"]

At the briefing, there was no enthusiasm for acting on the road commission’s plan. In addition to concerns about levying a millage, commissioners pointed to uncertainty related to pending state legislation that would, if passed, allow the county to take over operation of the road commission. [On Thursday, Dec. 1, the state House of Representatives passed bills that would allow county road commissions to be eliminated or restructured, and folded into operations of the county government. Currently, road commissions operate independently, with separate budgets and staff. The bills await action in the state Senate. The state senator representing Ann Arbor's District 18, Rebekah Warren, is married to county board chair Conan Smith. She attended a portion of the Dec. 7 board meeting.]

The discussion at the Nov. 29 briefing also touched on the leadership change at the road commission. Long-time managing director Steve Puuri is retiring at the end of 2011.

None of these issues were raised when the item came before the board on Dec. 7, and there was only limited discussion. Noting that there are major roads in his district that need repair, Ronnie Peterson expressed frustration that it didn’t appear the issue would be discussed by the board before the vote. He said he thought the road commissioners and staff would make a presentation, but that wasn’t the case. [Schwartz was the only representative from the road commission at the Dec. 7 meeting, but he did not formally address the board.]

Curtis Hedger, the county’s corporation counsel, reviewed the process that had taken place to this point, including the decision by the board on Oct. 5 to defer the item until Dec. 7, and the discussion at the board’s Oct. 6 working session.

Outcome: As part of the board’s consent agenda, commissioners voted unanimously to reject the road commission proposal.

Countywide Public Transit Update

Michael Ford, CEO of the Ann Arbor Transportation Authority, gave a presentation to commissioners about efforts to create a countywide transit system. [For background on a variety of transportation issues, including the countywide plan, see recent Chronicle coverage: "Washtenaw Transit Talk in Flux"] Also attending the Dec. 7 meeting was AATA board chair Jesse Bernstein, and Sarah Pressprich Gryniewicz, AATA’s community outreach coordinator.

Michael Ford, right, CEO of the Ann Arbor Transportation Authority, talks with county commissioner Wes Prater.

Ford began by outlining three major steps being taken to create a countywide transit system: (1) developing a governance structure for regional service, (2) planning service improvements, and (3) figuring out funding at the local, state and national levels. The first step has been taken this year, he said, with the creation of the unincorporated 196 board (U196).

Act 196 of 1986 is a state enabling statute that explicitly provides for the formation of a transit authority at the county level. The AATA is formed under Act 55 of 1963.

Membership in the 11-member unincorporated board (U196) is as follows: Pittsfield District – Mandy Grewal (supervisor, Pittsfield Township); Northeast District – David Phillips (clerk, Superior Township); North Middle District – David Read (trustee, Scio Township) with alternate Jim Carson (councilmember, Village of Dexter); Southeast District – (1) Karen Lovejoy Roe (clerk, Ypsilanti Township) and (2) John McGehee (director of human resources, Lincoln Consolidated Schools); West District – Bob Mester (trustee, Lyndon Township) with alternate Ann Feeney (councilmember, city of Chelsea); Ypsilanti District – Paul Schreiber (mayor of Ypsilanti) with alternate: Peter Murdock (councilmember, city of Ypsilanti); South Middle District – Bill Lavery (resident, York Township); Ann Arbor District: (1) Jesse Bernstein (AATA board), (2) Charles Griffith (AATA board) and (3) Rich Robben (AATA board).

Ford said that next steps for governance include: (1) securing a 4-party agreement with AATA, the county, and the cities of Ann Arbor and Ypsilanti; (2) writing up the articles of incorporation; and (3) developing bylaws. On the funding side, Ford noted that a report on funding options was released in the fall, and a task force of local financial experts – chaired by former Washtenaw County administrator Bob Guenzel and McKinley CEO Albert Berriz – has met three times so far. A report with both short- and long-term funding recommendations will be ready in early 2012.

A 30-year plan for service improvements has already been developed, Ford said. The U196 board has been discussing it, with the goal of developing a five-year transit improvement program that will be presented to municipalities in the county before incorporating as a countywide transit authority. The program, to be completed in 2012, will include service recommendations, a funding plan, and recommended fare structures and policy.

What’s needed from the county, Ford said, is help in developing a clear and transparent process that’s fair to citizens, uses public resources in an efficient way, and maintains local control while allowing municipalities to work together. More specifically, a four-party agreement between the county, AATA and the cities of Ann Arbor and Ypsilanti is being developed that will set a framework for incorporating a countywide transit authority. [.pdf draft of four-party agreement]

Among other things, the agreement would enable the transfer of dedicated transit millages in Ypsilanti and Ann Arbor to the new authority, and establish a process for opting-out of the authority.

Ford described the process that would lead to the establishment of a new countywide authority, assuming the county approves the authority’s articles of incorporation and that the four-party agreement is also approved. In 2012, the U196 board will finish a report on a five-year transit improvement program, then request that the county clerk – Larry Kestenbaum – file articles of incorporation for a countywide transit authority.

The articles of incorporation would establish the authority with boundaries of Washtenaw County. Certified letters, required by law, would be sent to each municipality announcing incorporation of the authority. Any municipality could opt-out, and those communities would not be taxed or receive transit service. The county would not take on liabilities, Ford said, nor provide its full faith and credit to the authority. The county could appoint a liaison to attend transit authority meetings.

The county would not be expected to make any request for funding, such as a levy on taxpayers. A chart provided by Ford indicated that a funding request would be made directly to voters. If voters rejected it, the request would be put on the ballot again, once a year. If voters do not approve a millage by the end of 2014, the incorporated 196 board would be dissolved.

Ford said that if and when countywide funding is set, the cities of Ann Arbor and Ypsilanti then would transfer their current dedicated transit millages to the new authority. AATA would transfer its assets, obligations and operations to the new authority, too, and the authority would begin implementing the countywide five-year transit plan.

The county board will be asked to vote on the articles of incorporation and four-party agreement in January, Ford said. He again stressed that the county would not be taking on liabilities or debt. Nor would the board be asked to request funding from voters, he said. Local governments will have the opportunity to opt-out when the authority is formed. The municipalities that participate will have input into planning countywide transportation, he said.

“I really could use your support in moving this thing forward,” Ford concluded, alluding to the catch-phrase used to promote the countywide initiative at MovingYouForward.org. He noted that AATA board chair Jesse Bernstein was in the audience, and that either of them would be happy to answer questions.

Countywide Public Transit Update: Commissioner Discussion

Rolland Sizemore Jr. thanked Ford for coming, and praised AATA staff for their help in Sizemore’s district putting in bus stops along Holmes Road and in the Willow Run neighborhood. Ronnie Peterson thanked both Ford and Gryniewicz, saying that they’d done a tremendous job in explaining the possible expansion. It was difficult to do during these challenging economic times, Peterson said, but it’s a vision that he’s been advocating for a long time. He asked Ford what’s needed from the county board at this point.

Ford replied that the board’s approval of the four-party agreement in January would be appreciated. Any outreach and support that commissioners can do would also be welcome, he said, noting that AATA can’t do it alone.

Peterson said there’s no millage that the county board is being asked to levy, and no administrative costs that the county would incur. He clarified with Ford that although the county board would allow for the formation of this new entity to take place, the responsibility for it would rest with the local communities. Nor would the county need to bond or incur any kind of debt. In that case, Peterson said, he fully supported the initiative.

Peterson commended Ann Arbor officials for allowing AATA to move in this direction, noting that in general “I don’t commend them too much.” The project had moved more quickly than any other government initiative he could recall, and there’s no question it had his support.

Wes Prater asked when the articles of incorporation would be ready for review. In January, Ford replied. Prater then clarified with Ford that local communities could opt out of the 196 organization if they wanted to – they didn’t have to participate.

Prater noted that the five-year plan doesn’t indicate any capital improvements that will be needed. Ford said that piece of it is still being developed, and they’re looking at potential funding needed for both operations and capital. That information will be provided to the board in the future, he said.

Yousef Rabhi described this project as one of utmost importance. He doesn’t own a car, and said he would love to be able to get where he needed to go throughout the county via public transportation. He said he’s attended two of the three U196 meetings so far, but he’s not an official liaison for the county board. Anyone can go to the U196 meetings.

Leah Gunn indicated support for appointing Rabhi as a liaison. She said when she first met Ford, she knew he could pull off this initiative.

Dan Smith said he had some doubts that all of the local communities would participate, and it appears that’s the case. He said he expected more would pull out eventually. Smith added that he’s glad the financing piece is coming together, and he thanked Ford for the outreach and updates, and for soliciting public opinion on this effort.

Barbara Bergman joked that she now knows how to get a free lunch – an allusion to several lunch meetings that AATA hosted for community leaders to brief them about this project. She thanked Ford for tutoring her on the effort.

Setting the Stage for 2012

Typically the report from the board chair is a relatively brief agenda item. But at the Dec. 7 meeting, Conan Smith used the time to make a presentation outlining a framework for setting priorities in 2012. With the county’s two-year budget now approved for 2012-2013, the board has the luxury of using 2012 as a planning year, he said, putting in place policy changes that will guide the county in the future.

Smith identified two main issues facing the county: (1) institutional financial stability, and (2) a crisis facing the east side of the county.

He addressed the county’s financial stability first, noting that the county has a structural deficit with long-term implications. Though the administration has done yeoman’s work in making structural reforms, Smith said, it’s not sufficient, given other challenges at the federal, state and local levels. Among those challenges, he said, are declining property values leading to lower tax revenues, a reduction or elimination of state revenue-sharing, changes to federal programs that affect revenue, and the possible elimination of the personal property tax. On the expenditure side, the county is challenged by increasing labor costs, particularly related to health care and to retiree health care liabilities.

There’s also “complexity” regarding the cost of police services, Smith said. The county’s contribution to police services is escalating, he noted, and if other communities want to opt in and contract with the sheriff for police services, how can the county afford it?

Looking ahead, the county faces a sizeable gap between projected revenues and expenditures, he said. The projections anticipate deficits of $11.6 million in 2014 and $14.7 million in 2015. At the community level, there are several threats, he said, including dramatic disparities in child poverty rates, high unemployment rates, declining per-capita income levels, and disparate graduation rates. Related to that last issue, Smith noted that the Chelsea school district has the county’s highest graduation rate, and he hoped the board could look to commissioner Rob Turner – who served on the Chelsea school board for nine years – for guidance.

Turning to issues facing the county’s east side, Smith said that area is facing what someone else characterized as the “perfect storm of despair.” The unemployment rate in the city of Ypsilanti is nearly 12%, compared to 8% countywide. Between 1999 and 2008, per-capita income in Ypsilanti Township fell to 19% to $24,038. Per-capita income in Ypsilanti Township and Ypsilanti, at $21,014, is below the amount that would be generated from the county’s living wage ordinance of $12.50 an hour, he noted. The situation ought to be untenable and unacceptable, he said.

Chart showing rates of free or reduced school lunches. (Links to larger image)

Other measures that reflect the disparity between the east side and the rest of the county include the percentage of students enrolled in the free or reduced school lunch program, the percentage of residents reporting they experience poor mental health days, and lower graduation rates.

Smith said that while you can find pockets of poverty, hunger and homelessness throughout the county, there’s a layering of challenges on the east side that make it especially dire, and difficult for residents to break out of the cycle of poverty. He said he was grateful that two Ypsilanti city councilmembers – Pete Murdock and Brian Robb – were attending that night’s board meeting. He noted that despite being one of the state’s best-managed cities, Ypsilanti is facing a financial crisis that could lead to bankruptcy. Ypsilanti has the highest tax rate in the county, yet because of declining property values, its property tax revenue is falling. That creates an environment in which it’s difficult to attract businesses or residents, Smith said.

It’s a cross-jurisdictional challenge, Smith argued, and the county needs to work hand-in-glove with Ypsilanti and Ypsilanti Township to address these problems. He maintained that east side issues are county issues. For one thing, a decline in property values affects the amount of revenues in the county budget. From 2007 to 2011, the county’s general fund has lost $3.75 million in revenues because of falling property values in Ypsilanti and Ypsilanti Township. In addition, he noted that the board has made human services and public safety a priority – those issues are particularly a concern on the east side.

Smith then outlined options for addressing these challenges, saying that the county’s financial stability and the problems facing the east side are interconnected. Regarding the county’s financial stability, Smith looked at three options: (1) cut costs and services; (2) raise the tax rate; and (3) improve the tax base. The first option is not sustainable, he argued. It has an immediate impact, but a declining effect. It would entail workforce reductions, which would in turn mean cuts to direct services for residents. And some would argue that the county has already cut to the bone, he said.

The second option – raising the tax rate – would also have a near-term impact and declining long-term effect. It might be an effective strategy to address specific issues, he said. Potential targets might include a Headlee override, or a millage for specific county services such as housing, police services or community health. The strategy could also be used to fund outside agencies, such as the nonprofit sector – the possibility of a human services millage has been floated in the past.

2012 ballot deadlines.

Smith said that Yousef Rabhi, who chairs the board’s working sessions, has pledged to schedule a discussion on this topic in early 2012. Passing a millage or Headlee override, which would reset the millage rate to its original value, would be an uphill battle, Smith said, and something the board would need to tackle quickly. Regarding the Headlee override, the county would gain about 9/10ths of a mill, he said – equating to around $13 million to $14 million annually.

With respect to levying an additional millage, Smith said he had used 0.5 mill as an example, and had calculated how much residents across the county would pay if such a millage passed. [.pdf of chart showing millage calculations] Ann Arbor residents, for example, would pay on average $55.25 annually. On the low end, residents in the village of Manchester would pay $25.54, based on the average taxable value of property there. A half-mill would raise about $7-8 million for the county, Smith said.

The third option is to improve the county’s tax base, which is the most sustainable, but hardest and longest approach, Smith said. It would focus on improving economic opportunity and quality of life, but would require a coordinated investment from both the public and private sectors, he noted – the county couldn’t do it alone.

Smith proposed that the board explore this third option. The board needs to look strategically at whether to put a millage on the ballot, and to develop a policy framework for the county’s investments – how it spends its revenues. Those investments are already being made in the county’s hardest-hit areas, he said, but there are better, more strategic ways to do that.

A policy framework would identify the outcomes that are desired, such as improved jobs, health or public safety. A policy framework would also provide better clarity and coherence in decision-making across all county agencies, as well as for voters and community partners. Developing this kind of framework would be a long process, he said, and would require leadership from the board.

Within this context, Smith identified five goals to work toward:

• Stabilize or increase property values.
• Create opportunities for living-wage jobs.
• Provide access to lifeline resources for physical and emotional health and well-being.
• Ensure safety and security for all residents.
• Build an engaged, empowered citizenry.

Smith said he hoped to hold working sessions focused on each of these goals in early 2012. He also wanted to take the first several months of the year to talk about a possible millage, but set a longer timeline for the policy discussions. The outcome of their work would be (1) a decision on whether to put a millage on the ballot, and (2) a policy framework for dealing with issues on the county’s east side.

Regarding a possible millage proposal, Smith laid out the following timeline:

• January 2012: Hold a working session to explore the focus of a millage, rates and logistical considerations.
• February/March 2012: Craft a proposal for the board to review, approve or reject.
• March through May, August or November 2012 (depending on when a millage would be put on the ballot): Support a campaign for the millage.

For developing a policy framework, Smith proposed starting with a half-day retreat in January that would include other county elected officials. Working sessions could be held in February through May with staff and others focused on the five goals. From May through August a policy framework would be drafted, reviewed, amended and adopted, he said, followed by implementation starting in September.

Smith concluded his presentation by saying he looked forward to discussing these issues as the board moves into a very challenging 2012.

Setting the State for 2012: Commissioner Discussion

The board spent about 45 minutes discussing Smith’s proposal. Yousef Rabhi began by describing the goals as phenomenal. It was great to have those goals for the east side, he added, but everyone in the county should have access to living-wage jobs, or a home that’s not at risk of foreclosure. The need is everywhere, he said, though the rates of poverty are higher on the east side. He noted that the county is already spending about 70% of its resources on the east side. It’s good to have a discussion about how to make those resources more effective, but Rabhi also wanted to have that same discussion include other parts of the county.

Barbara Bergman told Smith that if other commissioners had been involved in developing his proposal, it would have included all of the county, not just the east side. [Bergman represents District 8, which covers the northeast portion of Ann Arbor. Smith's District 10 also is in Ann Arbor, on the west side.] It would be difficult to pass a millage unless the revenues it generated would be spent countywide, she said. There is poverty all over the county, she added, and unless that’s considered, she wouldn’t support this approach.

Bergman said she’s long been a supporter of Ypsilanti, but this plan doesn’t take into consideration other parts of the county and it would be difficult to ask her constituents to support a millage for it. She said she hoped he would take this into consideration “as you plan agendas with us, Mr. Smith.”

Felicia Brabec asked Smith what the process would be, now that he has presented his proposal. Smith characterized it as similar to the budget process this year, when he presented some issues and a framework for board discussion. He noted that he didn’t present solutions, only options. Part of his role as chair is to make sure the board’s agendas are driving forward their priorities. He said he has background and experience in fostering these kinds of conversations, and if the outcome doesn’t go his way, “that’s not new.” Responding to Bergman’s comments, Smith said the board will make decisions on how to proceed – his job is just to kick off the conversation.

Brabec said her thought is that these goals would fit a lot of communities, but she was struck by how difficult it would be to identify objectives for these goals. That alone could take a year or two, she said.

Smith said if it were up to him, they’d talk about it for five years – he and Tony VanDerworp, one of the county’s managers who’s responsible for energy and economic development programs, would be “drunk on process,” Smith joked. But there are ways to tackle these goals more quickly. For one, the board can rely on staff leadership – many county workers have been dealing with these challenges for decades, he noted. The other thing is simply to attune people to the outcomes that the board is seeking, and focus efforts across county government – including the sheriff, treasurer and other elected leaders – on getting greater impact from their investments. How can they all work together better, for a greater impact?

Wes Prater said he was impressed by Smith’s “white paper,” adding that it will make commissioners think about these issues. He noted that they can use census data to drill down and determine specific areas of poverty to target the county’s resources, but agreed with others who said the effort needs to look countywide. There are tough decisions to be made, he said, “but I guess that’s our job.”

Rolland Sizemore Jr. said he agreed with Prater. There are duplication of services that he’d like to address, especially related to services for youth. Sizemore said he was organizing a countywide summit for youth, and he planned to work hard on these goals.

Saying he’d been concerned about the challenges coming up in the 2014-2015 budget, Rob Turner praised Smith for focusing the board on these issues. These are great ideas, but the biggest thing that will help improve the county financially is to make people more productive, he said. Turner also expressed concern about focusing mainly on the east side – everyone needs to buy into it, he said. [Turner represents District 1, covering the west and northwest part of the county.]

Turner told commissioners that his niece is a teacher in the Willow Run school district on the county’s east side, and that kids there aren’t prepared for school because of their socioeconomic situation – it puts them at a terrible disadvantage. The financial viability of an area depends on the education of its residents, he said. It’s an interconnected issue that needs to be addressed.

Related to a millage proposal, Turner said he’d been involved in two proposals recently: a countywide school enhancement millage, and a special education millage renewal. The enhancement millage failed because “Ann Arbor voters stayed home,” Turner said, and it wasn’t supported in the out-county areas. Ann Arbor voters again stayed home for the special education millage – some precincts recorded less than 2% turnout – but turnout was greater in other parts of the county, and it passed. Ann Arbor residents must be passionate about any effort that the county puts forward, in order for it to succeed, Turner said. He looked forward to continuing this discussion, and to the board’s retreat in January. The year 2014 will be here before they know it, he said.

Ronnie Peterson praised Smith’s presentation, then said the millage proposal should be separate from the policy framework discussion. That’s correct, Smith replied. Any millage would be countywide and support countywide issues. The other discussion would help the county focus its current investments on the east side more strategically.

Peterson – who represents District 6, which covers much of Ypsilanti – argued that the rest of the county would benefit from helping the east side. “You can’t be half sick,” he said, and Ypsilanti needs healing. He described Smith’s proposal as one of the best initiatives he’d ever seen in county government, and said the needs are great for education, poverty and public safety.

Peterson took issue with the implication that it was somehow unfair for the east side to be getting 70% of the county’s resources. Much of that is federal funding that’s based on data regarding income and other measures, he noted – and he’d be willing to share his district’s poverty, if others wanted those federal resources. He told other commissioners not to compare the few census tracts of poverty in their districts with the situation on the county’s east side. “We will all rise together,” he said.

Rabhi clarified that he hadn’t meant the county should reduce that 70% in spending on the east side, but rather that they should ensure it’s spent more wisely.

80/20 Rule

Commissioners were asked to give final approval to a resolution stating that the county will comply with Section 4 of the state’s Public Act 152 of 2011, also known as the “80/20″ rule regarding health care costs. Initial approval was given at the board’s Nov. 16 meeting.

On Jan. 1, 2012, public employers like Washtenaw County will be prohibited from paying more than $5,500 for health benefits annually for a single employee, $11,000 for an employee plus spouse, or $15,000 for family coverage. However, the law allows a public employer, by a majority vote of its governing body, to choose another option: to pay not more than 80% of the total annual costs of all the medical benefits plans it contributes to or offers its employees and elected public officials.

When the board initially passed this resolution on Nov. 16, it stated that collective bargaining agreements entered into by the county on or after Sept. 15, 2011 must comply with the 80/20 rule. Five of the county’s 17 bargaining units, representing about 95 employees, do not yet have agreements with the county for 2012-2013. Those employees would be subject to the 80/20 rule, which will place more responsibility on employees for the cost of health care.

The units that haven’t accepted concessions are those representing the prosecuting attorneys, the prosecuting attorney supervisors, attorneys in the public defenders office, supervisors of attorneys in the public defenders office, and AFSCME Local 3052 representing general supervisors.

However, on Dec. 7 an amendment was proposed to change the Sept. 15 date, which the board had initially approved, to Jan. 1, 2012.

Alicia Ping spoke out against the date change. She said that 90% of the employee had come to the table in good faith to meet the Sept. 15 deadline, and it sends the wrong message to them if the board now extends that date. Dan Smith said he’d be voting against the amendment for similar reasons. He noted that the board had held a special meeting in September for the sole purpose of approving labor agreements before the Sept. 15 deadline.

Ronnie Peterson asked why the date change to Jan. 1 is needed. County administrator Verna McDaniel said the change simply gives the administration more flexibility in trying to reach agreements with the unions before the end of this year.

Wes Prater and Yousef Rabhi indicated support, though Rabhi also expressed concern this wasn’t treating the different bargaining units equally. Diane Heidt, the county’s human resources and labor relations director, came to the podium and said that the change has no impact on the other bargaining units. For the remaining five units, members will either be subject to the 80/20 rule or the hard cap, she said – in either case, they’ll be paying more for their benefits than the other bargaining units.

Outcome: On a 9-2 vote, commissioners approved the date change related to the 80/20 rule deadline for bargaining units. Dissenting were Alicia Ping (R-District 3) and Dan Smith (R-District 2).

During public commentary at the end of Wednesday’s meeting, county prosecuting attorney Brian Mackie spoke to the board, saying that it wasn’t appropriate for some commissioners to imply that the five remaining bargaining units are negotiating in bad faith. He said there is nothing wrong with the way that they’re negotiating, and noted that two years ago, the prosecuting attorneys had been the first of the county’s bargaining units to agree to pay for a portion of their medical insurance. [As an elected official, Mackie is not represented by any of the bargaining units.]

2011 Apportionment Report

In a process mandated by the state, commissioners were asked to accept the county’s 2011 apportionment report, which gives details of the 2011 taxable valuations for property in the county, by municipality. The report also includes the amount of millages levied and the dollar amounts collected in taxes. December tax bills have already been mailed out to property owners, based on these calculations.

Every April, the county’s equalization department produces an annual report describing Washtenaw County’s total equalized (assessed) value of property. The report – part of the state-mandated equalization process – gives an indication of how much revenue the county will receive from property taxes in the coming year. [See Chronicle coverage: "Washtenaw County's Taxable Value Falls"]

In November, the equalization and property description department presents an apportionment report, which gives details of the taxable valuations for property in the county, by municipality. The report also includes the amount of millages levied and the dollar amounts collected in taxes. [.pdf file of 2011 apportionment report] Like the equalization report, the board is required by state law to vote on adopting the apportionment report.

This year, all the taxing entities in Washtenaw County will be levying in total about $622 million in property taxes – a drop from $639 million in 2010. The county alone will levy about $81 million this year, compared to $83 million in 2010.

Raman Patel, the county’s equalization director, spoke briefly to commissioners, saying that the equalization process is underway in preparation for the annual report in April. He noted that the next equalization report will be calculated based on a CPI of 2.7%, compared to 1.7% for the previous report. [The consumer price index (CPI) is an indicator of inflation.) He said it appears that the market is stabilizing, and that taxable value won’t be declining as much as it did last year.

Conan Smith expressed some surprise and gently teased Patel, noting that this was the first time that he could recall Patel ever hinting at the outcome of an equalization report in advance of its completion. Smith also thanked Patel for his professionalism and guidance over the past few decades for the county during these difficult economic times. Though Smith's remarks implied that Patel would be retiring, after the meeting Patel told The Chronicle that he hadn't announced that decision yet.

Outcome: Commissioners voted unanimously to accept the apportionment report.

Support for Same-Sex Benefits

A resolution brought forward by Washtenaw County commissioner Yousef Rabhi urged state lawmakers to reject HB 4770, HB 4771 and “any legislation that codifies discrimination.”  [.pdf of resolution] The state legislation removes the ability to extend benefits to same-sex partners. As of the Dec. 7 meeting, it had been passed by both the House and Senate. It now awaits Gov. Rick Snyder’s signature before becoming law. A Dec. 9 article in the Detroit Free Press quoted Snyder’s spokeswoman, who indicated that the governor intends to sign the bill pending a final review.

Currently, Washtenaw County offers its employees the option of benefits in an “other eligible adult” category, which includes benefits to same-sex partners as well as opposite-sex partners. There are nine people enrolled in this category of benefits, according to Diane Heidt, the county’s human resources and labor relations director.

Support for Same-Sex Benefits: Public Commentary

Sandi Smith said she was there as a private citizen, even though she serves on the Ann Arbor city council. The council had voted unanimously at its Dec. 5 meeting to support equality, she said, and she hoped the county commissioners would do the same. She noted that the legislation had been passed in the Senate earlier that day, and would go to the governor for his signature imminently. It’s a question of equality, she said. People should be compensated equally, Smith said, and Michigan can’t afford to be viewed as an unfriendly place to be.

Andy LaBarre introduced himself as vice president of of government relations at the Ann Arbor/Ypsilanti Regional Chamber of Commerce. In November, the chamber had announced its opposition to the legislation, he said, because of its detrimental effect on the business community. [.pdf of chamber statement on HB 4770 and HB4771] LaBarre said he was there to applaud the board for its resolution.

After LaBarre’s commentary, Rabhi pointed out that in addition to his work at the chamber, LaBarre is a candidate for the county board. [LaBarre, a Democrat and former aide to Congressman John Dingell, has announced his intent to run in 2012 for the newly redistricted seat in Ann Arbor's District 7.] Wes Prater kidded Rabhi about how much LaBarre had paid him to mention that.

Support for Same-Sex Benefits: Commissioner Discussion

In an email to The Chronicle prior to the Dec. 7 meeting, Rabhi described the situation as an issue of fairness and equality – the county should be able to treat all of its employees, regardless of sexual orientation, with the same level of care. He also argued that eliminating the county’s ability to extend benefits would hamper its hiring ability. That’s of particular concern because the county is expected to fill about 100 positions in the coming year, in the wake of a high number of retirements at the end of 2011.

At the Dec. 7 meeting, Rob Turner asked to pull the resolution out of the consent agenda so that it could be considered separately. He said he had appreciated that during his year on the board, commissioners haven’t proposed resolutions on state issues. These kinds of votes don’t promote cohesiveness, he said – they are divisive. Because the resolution sets a bad precedent that the board might later regret, he asked that it be withdrawn so that there aren’t hard feelings among commissioners. He said that this kind of resolution has no influence on state legislation.

Leah Gunn countered that this is a message the board needs to send. There are some county employees whose families depend on health insurance and other benefits provided through the “other eligible adult” category, she noted. Gunn said she felt strongly that this is one instance in which the county would be directly affected by the state legislation, and she supported Rabhi’s resolution.

Washtenaw County prosecuting attorney Brian Mackie and Ann Arbor city councilmember Sandi Smith. Both spoke during public commentary at the county board meeting, on different topics.

Barbara Bergman agreed with Gunn, saying that the quality of life for county employees is the board’s responsibility, and this legislation affects their quality of life. Generally she agreed with Turner that the board should stay away from state issues, but this is a moral obligation to employees, who are doing “yeoman’s work” for the county, she said.

Dan Smith supported Turner’s view opposing the resolution. They could spend lots of time debating issues at the state and national level – or even issues at the United Nations. The board needs to stay focused on Washtenaw County issues, he said.

Rabhi acknowledged the concerns raised by Turner and D. Smith, and said he respected their opinion. He hoped this wouldn’t be divisive, and he didn’t think it would be – the commissioners work together “phenomenally,” he said. But Rabhi added that he wouldn’t withdraw the resolution, saying he firmly believed they needed to take a stand on this, and that it’s important to staff.

Felicia Brabec also supported the resolution. It’s an issue of fairness and equality, she said, and it affects everyone – not just those who receive benefits. Alicia Ping pointed out that there are around 50,000 people in the county who don’t have health insurance, and any legislation that affects people’s access to health insurance is a bad thing, even if it’s just nine people.

Turner said there have been other times when issues at the state level would have affected staff. He cited a time when AFSCME leaders approached commissioners about an issue. In that case, the approach was for individual commissioners to write letters to state legislators. That was a good way to handle it, Turner said.

Conan Smith said he agreed with Turner in terms of process – the board faces challenges, and needs unity. He said they know their legislators extraordinarily well, and it was easy to get in touch. [This remark elicited laughs, as Smith is married to state Sen. Rebekah Warren (D-District 18), who attended part of the Dec. 7 meeting.]

In general, C. Smith hoped the board would stay far away from issues that don’t impact the county, and he hoped to minimize the times that they would weigh in on state issues.

Gunn added that anyone can vote the way they want, and it won’t be held against them.

Ronnie Peterson said the resolution had his vote “even without the phone call” – an allusion to Rabhi’s communication with individual commissioners prior to the meeting. The benefits came as part of the condition of employment at the county, he said, and no one should be able to take them away. “Any form of discrimination is wrong,” he said.

Outcome: On a 9-2 vote, commissioners passed the resolution urging state lawmakers to reject HB 4770 and HB 4771. Dissenting were Rob Turner (R-District 1) and Dan Smith (R-District 2).

Brownfield Plans for Ford, Arbor Hills Crossing

Two brownfield plans were on the agenda for the Dec. 7 meeting: for Ford Motor Co.’s Rawsonville plant, and Arbor Hills Crossing, a proposed retail and office complex at Platt and Washtenaw. Projects at locations within municipalities that are part of the county brownfield redevelopment authority – including Ann Arbor and Ypsilanti Township – must have brownfield plans approved by the county board.

Brownfield Plan: Arbor Hills Crossing

Commissioners were asked to give initial approval to a brownfield plan for Arbor Hills Crossing, a proposed retail and office complex at Platt and Washtenaw. The project involves tearing down three vacant commercial structures and putting up four one- and two-story buildings throughout the 7.45-acre site – a total of 90,700-square-feet of space for retail stores and offices. Three of the buildings would face Washtenaw Avenue, across the street from the retail complex where Whole Foods grocery is located. The site would include 310 parking spaces. The brownfield plan includes $6.7 million in tax increment financing (TIF) to be paid back over a 19-year period.

The Ann Arbor city council approved the brownfield plan at its Nov. 21, 2011 meeting.

Dan Smith asked staff to tell him how much of the TIF capture would otherwise be coming to the county’s general fund. Brett Lenart, who has provided staff support for the county’s brownfield program, said that the project is expected to bring an annual increase of $432,000 in property taxes for all taxing jurisdictions. Of that, the county’s portion would be $58,913 compared to the current $16,254. These higher amounts would occur after the end of the 19-year period of the brownfield plan.

Smith said he would support this plan reluctantly. The board still hasn’t had a broader discussion about brownfield plans that require TIF capture, he noted. There are tradeoffs, but commissioners haven’t discussed those tradeoffs.

Yousef Rabhi, who chairs the working sessions of the board, said he’d schedule the topic for an upcoming session. [The board had debated the issue of brownfield projects in May of this year, in the context of a request from developers of Packard Square in Ann Arbor.] Rabhi noted that the increase eventually coming to the county is money is money it doesn’t currently have.

Outcome: Commissioners unanimously voted to give initial approval to the Arbor Hills Crossing brownfield plan. A final vote will likely occur at the board’s Jan. 18, 2012 meeting, when a public hearing is set. 

Brownfield Plan: Ford’s Rawsonville Plant

The board held a public hearing and was asked to give final approval to a brownfield plan for Ford Motor Co.’s Rawsonville plant. The plan would allow Ford to apply for $625,000 in Michigan Business Tax credits. According to a staff memo, the plan – with the potential tax credits – would allow the company to retain 260 jobs by bringing back work that’s currently done in China and Mexico. Investment in 2012 would be about $20 million, with total jobs stabilized at about 700 workers.

Two people spoke during the public hearing. Thomas Partridge criticized the hearing for being held so late in the meeting, when the public would have a difficult time being there. He also said these kinds of hearings should be better publicized. Partridge urged the company to reconsider its request and to lower the amount of tax credits and shorten the time it would receive this assistance. The project was taking away vital resources from schools and other taxing entities, he said.

Jeff Donofrio, with Ford Motor Co.’s government affairs office, said this request is all about keeping the Rawsonville plant competitive within the Ford system, so that it can receive additional investment and retain jobs. The request is part of a package of incentives to bring in new investments for Ford’s hybrid-electric and plug-in electric vehicles. He urged commissioners to support the plan.

During the brief discussion of this item, Rolland Sizemore Jr. asked whether there might be job-shadowing opportunities at the Rawsonville plant for local youth. Donofrio indicated that Ford would be willing to explore that idea.

Ronnie Peterson recalled when the plant had employed more than 5,000 workers, including his father and brother. He was pleased to see jobs coming back, and said the board should be advocates for Ford to continue investing in the county.

As a general commentary on the brownfield program, Wes Prater said the county gives more than $2 million in tax breaks to companies each year, and the board needs a better policy to guide decision-making in this area.

Outcome: The board unanimously approved the brownfield plan for Ford Motor Co.’s Rawsonville plant.

Western Washtenaw Recycling

Commissioners were asked to give final approval to issue up to $2.7 million in bonds – backed by the county’s full faith and credit – to help pay for a $3.2 million facility operated by the Western Washtenaw Recycling Authority (WWRA). The board had approved a contract for this project at its Sept. 21, 2011 meeting, and taken an initial vote on the bonds at its Nov. 16 meeting.

The WWRA plans to use $500,000 from its reserves to fund part of the project. The $2.7 million in bonds will be repaid through special assessments on households in participating WWRA communities: the city of Chelsea, Dexter Township, Lima Township, Lyndon Township, and Manchester Township. Bridgewater Township is participating in the WWRA, but will not help fund the new facility. The village of Manchester and Sylvan Township have withdrawn from the WWRA.

Drop-off recycling bins will be located in the township, where residents will be assessed $24 per household per year. In Chelsea, where residents will receive curbside recycling service, the assessments will be $56 per household per year. The first of the 15-year assessments, established through the county’s board of public works, will be on the December 2011 tax bills for these areas.

Outcome: The board voted unanimously to approve the WWRA bonds.

Energy Subcommittee Formed

On the Dec. 7 agenda was a resolution to create an energy policy subcommittee. The subcommittee’s purpose is to help develop a county energy policy. Such a policy is required in order to receive federal Energy Efficiency and Conservation Block Grants.

By way of background related to energy issues, at its Aug. 3, 2011 meeting, the board had held a public hearing and subsequently approved an interlocal agreement with the Southeast Michigan Energy Office Community Alliance (SEMRO). The Ferndale-based nonprofit (SEMRO) provides technical services to the county in identifying and implementing federal Energy Efficiency and Conservation Block Grant projects. [.pdf of interlocal agreement]

The energy office is a division of the Michigan Suburbs Alliance. County commissioner and board chair Conan Smith is CEO of the alliance. The board voted initially to join the energy office at its March 17, 2010 meeting. Smith abstained from that vote. Smith was absent from the Aug. 3 meeting.

At the Dec. 7 meeting, Ronnie Peterson complained about a lack of information regarding the resolution. He asked how far-reaching the subcommittee’s scope would be. Tony VanDerworp, who leads the county’s energy initiatives, told commissioners that having an energy policy is a requirement for receiving federal block grants. But the subcommittee’s charge can be whatever the board wants it to be, he said. The subcommittee’s focus was intended to form a policy for internal purposes, he added – looking at county-owned buildings, its vehicle fleet, and overall energy conservation efforts. But it could be farther-reaching.

In response to a query about who would be appointed, Conan Smith said the members would be commissioners Rob Turner, Alicia Ping, Wes Prater and Yousef Rabhi. However, he added, others could join if they were interested.

Barbara Bergman noted that any policies or actions proposed by the subcommittee would come before the board for approval. That is, she said, the subcommittee wouldn’t be “czaristic.”

Outcome: Commissioners voted unanimously to create an energy policy subcommittee.

York Twp. Drain Project

Commissioners were asked to authorize the county’s full faith and credit to back the payment of bonds used to repair sinkholes and replace broken tile in a drain along Saline-Milan Road in York Township. [.pdf of map showing project area]

The amount of the bonds is not to exceed $235,000, and will be retired in part through special assessments against the property owners in that area’s drainage district. Money from assessments will account for 69.16% of the project cost, with remaining project costs prepaid by York Township (20%), and Washtenaw County (10.84%). The Wasthenaw County road commission will pay half of the county’s portion of this project, which is being managed by the county office of the water resources commissioner.

Outcome: The board voted unanimously to authorize bonds for the York Township drain project.

Appointments

Immediately prior to the board’s Dec. 7, commissioners held an appointments caucus to review applications to 15 county-appointed boards, commissioners and committees – a bi-annual process.

The start of the Washtenaw County appointments caucus. Other commissioners arrived later in the meeting. From left: Alicia Ping, deputy county clerk Peter Simms, Wes Prater, Rolland Sizemore Jr., Leah Gunn, Rob Turner.

Many of the applicants already serve on these groups and were seeking reappointments. Most of the board, commissions and committees require certain categories of people to serve. For example, the brownfield redevelopment authority board required the appointment of someone from a development company (Douglas McClure), a nonprofit (Anna Sandhu), and a municipality (Todd Campbell). There were no other applicants for those slots, and all were reappointed.

In some cases, there were insufficient applicants to fill all the available seats. The local emergency planning committee, for example, has 12 seats to fill, but only one person – Leon Moore – applied.

Some of the other appointments include:

• Washtenaw County Historic District Commission: Paul Darling (general public), Nancy Snyder (general public) and Alice Ralph (architect) were reappointed to terms ending Dec. 31, 2014.
• Washtenaw County Parks & Recreation Commission: Jimmie Maggard, Janice Anschuetz and Robert Marans were all reappointed in the category of general public to terms expiring Dec. 31, 2014. A fourth position was left open, also in the category of general public, although two other people applied. Conan Smith, the county board chair who also serves on the parks & rec commission, said there’s some concern about the aging membership of the commission – about two-thirds of the group is 70 or old, he said, and younger commissioners are needed. He wanted to keep the fourth position open to take time to find someone who loves the work and “will be able to stick around.”
• Environmental Health Code Appeals Board/Public Health Advisory Committee: Jim Carty (general public).
• Community Action Board: Much of the caucus discussion focused on this board, which had nine openings and 16 applicants. Ultimately only six appointments were made: Mary Smith (consumer/Head Start), Joe Dulin (private sector), Deloisteen Brown (private sector), Howard Edelson (private sector), Faye Askew-King (private sector) and Greg Pordon (public sector/Dept. of Human Services). Several other current members did not respond to queries about whether they wanted to be reappointed, and the plan was to attempt to contact them again before making a decision on the remaining appointments. The length of these terms varies.
• Workforce Development Board: Nine positions were open and 12 people applied, but the board only appointed seven people on Dec. 7, with remaining appointments to be made at a later date. The appointees are: Paul Ganz (private sector), Charles Penner (private sector/economic development), Les Alexander (private sector), Howard Edelson (private sector), Steven Gulick (organized labor) and Wes Prater (organized labor). The length of these terms varies.
• Natural Areas Technical Advisory Committee: Two reappointments were made to this group, which oversees the county’s natural areas preservation program: Rane Curl (land trust/conservation) and David Lutton (professional real estate or development practice). The terms end Dec. 31, 2013. A third reappointment request – for John Russell (environmental education) – was denied. In explaining the decision to commissioners at the appointments caucus, Conan Smith described Russell as passionate, but not a constructive committee member. Smith said the position will be reposted, and noted that other applications came in after the deadline. Barbara Bergman urged Smith to send a letter of thanks to Russell for his service.

Outcome: At the board’s regular meeting, appointments were approved unanimously. [.pdf of all appointments]

Communications/Public Commentary

There are various opportunities for communications from commissioners as well as general public commentary.

Communications: Parks & Recreation Grants

Conan Smith, who also serves on the county parks & recreation commission, asked parks & rec director Bob Tetens to come forward and report on state grants that were recently awarded to projects in the county. Tetens reported that earlier in the day he’d been notified by Kirk Profit – a Lansing-based lobbyist for the county – that the Michigan Natural Resources Trust Fund had awarded grants to four local projects: (1) a skatepark  to be built at Ann Arbor’s Veterans Memorial Park, (2) improvements at the Gallup Park canoe livery, (3) improvements at Rutherford Pool in Ypsilanti, and (4) a Michigan Ave. (US-12) Border-to-Border bridge project.

In addition, Tetens said the county had been awarded $2.2 million toward the purchase of a 54-acre parcel near Domino’s Farms in Ann Arbor Township, through the county’s natural areas preservation program. In total, about $3.5 million were awarded to projects within the county, Tetens said. “We were happy.”

Rolland Sizemore Jr., another commissioner serving on the parks & recreation commission, thanked state Sen. Rebekah Warren for her help in securing the funds.

Ronnie Peterson also praised Warren, especially for pointing out this possible funding source for the Rutherford pool, which is located in Peterson’s district. He also thanked Profit and others for working on these projects.

Communications: Pearl Harbor Day, Armistice Day

Rolland Sizemore Jr. noted that Dec. 7 was Pearl Harbor Day, saying that he wanted people to keep that in mind.

Dan Smith said he’d recently come across some relevant state legislation:

MCL 46.11a Armistice day celebration; appropriation by board of supervisors. [The board of supervisors is a predecessor to the current board of commissioners.]

The board of supervisors is hereby authorized to appropriate such sum as they deem fit for the purpose of a public celebration on Armistice day. The board shall provide for the expenditure of this money in any way they see fit.

He noted that Armistice Day is now called Veterans Day, celebrated in September. He said his father served in the navy from September 1945 through August 1946, and was always proud of that naval service.

Public Commentary: Lourdes Salazar Bautista

In addition to the public commentary reported above, six people spoke regarding the imminent deportation of Ann Arbor resident Lourdes Salazar Bautista. Many others were in the audience carrying signs of support and applauding those who addressed the board. Some of the speakers had also attended the Dec. 5 Ann Arbor city council meeting and spoken during public commentary there as well.

Speaking Spanish that was translated by an interpreter, Lourdes Salazar Bautista described how she’d lived in Ann Arbor for 14 years, fulfilling a dream of hers to come here. Her father had often come to America to work in the fields, and had spoken highly of the country. Her three children – ages 7, 9 and 13 – were all born here. Everything was going well until agents of the federal Immigration, Customs and Enforcement (ICE) office had detained her in front of her oldest daughter last year. They deported her husband, but told her that everything else was fine. Then in September of this year, they told her that she would be deported too – her deportation date is set for Dec. 27. She tearfully asked commissioners to do whatever was in their power to help.

Laura Sanders of the Washtenaw Interfaith Coalition for Immigrant Rights (WICIR) said that Bautista’s case is not isolated. Washtenaw County is a target because of its proximity to the border with Canada, and the need for federal immigration official to meet deportation quotas. Thousands of residents are affected, she said. Sanders urged commissioners to sign a letter of support for Bautista, that would be sent to ICE director John Morton and Janet Napolitano, director of homeland security. [.pdf of WICIR's cover letter to commissioners] [.pdf of proposed letter to Morton and Napolitano] Sanders praised county sheriff Jerry Clayton, saying he had been accessible to WICIR on this issue.

Diana Carolina, a PhD student at the University of Michigan, said she was the daughter of an immigrant who was a domestic worker, often coming home with her hands smelling like cleaning products. ICE is tearing families apart, she said, including families with children who, like her, have assimilated to the U.S. She noted the irony of the U.S. government promoting policies that destroyed economies in South America, while at the same time deporting people who were forced to come to America to find jobs.

Carlos Zalval identified himself as a member of WICIR and of the St. Mary Student Parish, where Bautista is also a member. He’s known Bautista for years, and described her as a role model for families, working with children even under this adverse situation. She is a positive influence, and the U.S. would gain a productive and caring person if she stayed. She’s a hard worker and pays taxes, he said. Immigrants move this country forward, and he urged commissioners to help stop her deportation.

Linda Kurtz is a neighbor of Bautista, living across the street from her for more than 10 years. Bautista is a good neighbor and a good friend, Kurtz said, and their children played together for many years. She’s hard-working, quiet, respectful and caring, and turned a run-down house on the block into a nice home. Of the nine houses on the block, two had been foreclosed on and one of those is still vacant. The block doesn’t need another empty house, she said. Bautista pays her bills on time, and is an asset to the community – an embodiment of the American dream, Kurtz said, and it would be devastating in she was deported.

Priscila Martinez read a letter from David DeYoung, the principal of Wines Elementary, where Bautista’s two youngest children attend school. In the letter, DeYoung described the children as model students, and said that Bautista is an active member in the school community. Pulling them out of school would have a devastating affect on their future. Martinez also told commissioners that other letters were being written in support of Bautista by leaders of the Catholic church and by Congressman John Dingell and Sen. Carl Levin.

Three commissioners – Felicia Brabec, Leah Gunn, and Yousef Rabhi – responded to the public commentary, thanking people for coming and indicating their support. Gunn noted that all the commissioners had signed a copy of the letter to Morton and Napolitano – it had been passed around the board table earlier in the meeting.

Public Commentary: Thomas Partridge

In addition to the public hearing on Ford’s brownfield plan, Thomas Partridge spoke during the four other opportunities for public commentary during the Dec. 7 meeting. He reiterated themes he frequently touches on during commentary at various public meetings, advocating for action to bring more affordable housing, transportation, education and health care to the county’s most vulnerable residents. He urged commissioners to enact protections for the vulnerable, and impose penalties for those who bully the disadvantaged. He asked the board to reverse course and find a way to fully fund programs like Head Start.

Partridge also called on commissioners to oppose the deportation of Lourdes Salazar Bautista, saying that the county’s corporation counsel should go to court to seek an injunction against such an action.

Present: Barbara Bergman, Felicia Brabec, Leah Gunn, Ronnie Peterson, Alicia Ping, Wes Prater, Yousef Rabhi, Rolland Sizemore Jr., Conan Smith, Dan Smith, Rob Turner.

Next regular board meeting: Wednesday, Jan. 4, 2012 at 6:30 p.m. at the county administration building, 220 N. Main St. in Ann Arbor. The Ways & Means Committee meets first, followed immediately by the regular board meeting. [confirm date] (Though the agenda states that the regular board meeting begins at 6:45 p.m., it usually starts much later – times vary depending on what’s on the agenda.) Public comment sessions are held at the beginning and end of each meeting.

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The AVL snow plow tracking system is supposed to provide residents with real-time information on the status of plowing activity, through GPS devices mounted on the trucks. The devices monitor not only a vehicle’s location, but also whether the plow is deployed, along with other vehicle performance information. The city’s snow plow status page currently requires manual updates and has not always been a top priority to keep updated during snowstorms. The city council authorized the $88,000 purchase last year at its Nov. 4, 2010 meeting. The system was then hoped to be deployed sometime during the winter of 2010-11. The software purchase was justified not based on the ability to track snow plows, but rather on the ability to monitor all of a vehicle’s various engine codes remotely, which is anticipated to save the city on maintenance costs in the longer term.

The local development finance authority is funded through a tax increment finance (TIF) mechanism for the same geographic district as the Ann Arbor and Ypsilanti downtown development authorities. The LDFA currently receives no revenue from the Ypsilanti portion of its district. The taxes on which the increment is captured are local school taxes. The impact of the LDFA tax capture is spread across school districts statewide, due to the way that local school taxes are pooled by the state of Michigan and redistributed to local districts. Based on data available through A2OpenBook, in fiscal year 2011, the LDFA generated $1.475 million in tax capture. The LDFA contracts with Ann Arbor SPARK to operate a business accelerator.

The presentation by the AATA is likely to focus on a four-party agreement that the city will shortly be asked to sign with AATA, Washtenaw County, and the city of Ypsilanti. The agreement would be a step towards establishing a countywide transit authority under Michigan’s Act 196 of 1986, because it would provide part of the mechanism for a transition from the AATA’s governance (under Act 55 of 1963) to a new countywide transit authority based on Act 196. The agreement would establish an arrangement for Washtenaw County to incorporate a new transit authority under Act 196 and for the two cities (Ann Arbor and Ypsilanti) to pledge their transit tax funds levied currently for use by the AATA to the new Act 196 organization, once its governance and basis for its funding is clear. [For background on the state of transportation initiatives, see recent Chronicle coverage: "Washtenaw Transit Talk in Flux"] [.pdf (annotated) of draft four-party agreement]

At its Nov. 10, 2011 meeting, the council gave initial approval to a further tweak to the city’s pedestrian safety law. The language given initial approval reads: “When traffic-control signals are not in place or are not in operation, the driver of a vehicle shall stop before entering a crosswalk and yield the right-of-way to a pedestrian stopped at the curb or ramp leading to a crosswalk and to every pedestrian within a crosswalk, without regard to which portion of the roadway the pedestrian is using.” The council had agreed to hold a working session on the topic before taking a final vote.

The city council work session officially begins at 7 p.m., but sometimes are 10-15 minutes late in starting. The sessions are broadcast live on CTN Channel 16, and streamed online live.

The previous day, on Nov. 28, the ACLU filed a lawsuit on behalf of activist Blaine Coleman, who had sought to purchase an advertisement for the sides of AATA buses. The AATA refused to run the ad. The proposed ad includes the text, “Boycott ‘Israel’ Boycott Apartheid,” and an image depicting a scorpion-like creature with a skull for a head. [.pdf of image and text of proposed ad] The image appears to stem from an original by Mexican artist José Guadalupe Posada.

The ACLU’s position, as put forth in the Nov. 29 motion, is that the controlling authority for deciding the issue is a 1998 case involving a labor union that had proposed an advertisement on a regional transit authority’s vehicles. The union ad had been rejected on the grounds that it was “too controversial and not aesthetically pleasing.” The case was argued and won by the union in the U.S. Court of Appeals Sixth Circuit. [.pdf of United Food & Commercial Workers Union, Local 1099, v. Southwest Ohio Regional Transit Authority]

The standard of review for the preliminary injunction, now sought by the ACLU, includes: (1) the likelihood that the party seeking the preliminary injunction will succeed on the merits of the claim; (2) whether the party seeking the injunction will suffer irreparable harm without the grant of the extraordinary relief; (3) the probability that granting the injunction will cause substantial harm to others; and (4) whether the public interest is advanced by the issuance of the injunction.

In the motion for a preliminary injunction, the ACLU’s argument is laid out in greater detail than in the initial lawsuit [.pdf of Nov. 28, 2011 lawsuit]. Among the issues raised by the suit is whether the AATA has created a public forum through its advertising program. The ACLU contends that the AATA has, in fact, created a public forum, but does not rely exclusively on that conclusion in arguing that Coleman’s constitutional rights were violated. In addition to the First Amendment claims (free speech), the suit alleges Fourteenth Amendment violations (due process).

In a similar case in Seattle, the ACLU has now filed a notice of appeal after the federal district court ruled in October 2011 in favor of the transit authority – over an ad with the text, “Israeli War Crimes: Your Tax Dollars at Work,” and featuring a picture of children next to a bomb-damaged building. [.pdf of the Seattle Mideast Awareness Campaign (SeaMAC) v. King County ruling]

In contrast to the AATA case, the transit authority in Seattle at first accepted the SeaMAC ad. Then, when advance publicity about the prospects of the ad’s future appearance resulted in proposed counter-ads, possible demonstrations, and the specter of violence, the transit authority decided not to allow the ad to appear.

The AATA case evolved after Coleman tried unsuccessfully to place the ad, and the ACLU sent a letter to the AATA in August 2011 supporting Coleman’s position. [.pdf of ACLU Aug. 12, 2011 letter] [.pdf of AATA advertising policy]

At its Nov. 17 meeting, the AATA board affirmed the decision to reject the proposed ad in its current form, and passed a resolution to that effect, inviting Coleman and the ACLU to discuss the advertising policy. [.pdf of AATA board resolution rejecting advertisement] According to ACLU staff attorney Dan Korobkin, communication took place between the ACLU and the AATA’s legal counsel after the board’s resolution was passed. However, that communication did not avert the filing of the lawsuit.

[Coverage of AATA board meeting when action was taken regarding the ad: "Bus Ad Rejection Affirmed"]

The ad features the text “Boycott Israel” and “Boycott Apartheid,” with an image depicting a scorpion-like creature with a skull for a head. At its Nov. 17 meeting, the AATA board voted to affirm the rejection of the ad, inviting Blaine Coleman – whom the ACLU is representing in the case – and the ACLU to discuss the advertising policy. The board’s vote had come in response to a letter the board had received in August 2011 asking the AATA to reverse the decision to reject the ad. [Chronicle coverage of the board's decision, the legal issues and some other similar cases are included in a report of that meeting: "Bus Ad Rejection Affirmed"]

According to Korobkin, after the AATA board’s resolution was passed, there was some communication between the ACLU and the AATA before the suit was filed.

The complaint now filed in U.S. District Court for the Eastern District of Michigan (Southern Division) includes two counts alleging violation of the First Amendment (free speech) and two violating the Fourteenth Amendment (due process) for a total of four counts.

The ACLU is contending that the application of the AATA ad policy to Coleman’s ad, and the AATA’s rejection of the ad under that policy, is a violation of the First Amendment’s guarantee of freedom of speech (count 1). The ACLU further contends that the AATA’s advertising policy generally violates the First Amendment on its face – because it is overly broad (count 2).

The Fourteenth Amendment counts can be similarly paired, and are based on vagueness. One count alleges that the way in which Coleman’s specific ad was rejected was vague (count 3). The other Fourteenth Amendment count alleges that the AATA’s ad policy on its face is vague (count 4) and it’s generally not the case that “a person of ordinary intelligence can readily identify the applicable standard for inclusion or exclusion.”

AATA's CEO Michael Ford presents an overview of the transit master plan to members of a financial group that will be making recommendations on funding options for countywide transportation. (Photos by the writer.)

The AATA fiscal year runs from Oct. 1 through Sept. 30. The budget approved by the board calls for expenses of $30,410,616 against only $29,418,995 in revenues, for a deficit in the coming year of $991,621. At the meeting, members stressed that the nearly $1 million deficit was due to one-time expenses associated with the planned transition to a countywide service. They also stressed that even by using unrestricted reserves over the next year to cover the planned deficit, the AATA would still be left with more than three months’ worth of operating expenses in its reserve.

Incurring a deficit this year was characterized as a way to “catapult” the organization forward, allowing it to pursue an aggressive work plan for the coming year, which was also approved at the meeting. Highlights of that work plan include reconstruction of the Blake Transit Center in downtown Ann Arbor. Design for the station is expected to be complete by the end of the year, with construction to start in spring 2012.

In terms of increased service, next year’s work plan includes a focus on: establishing the AATA as a vanpool service provider; establishing service to the Detroit Metro Airport; improving work-transportation connections between Ann Arbor and Ypsilanti; and continuing work on commuter rail. Also related to enhanced services, the AATA is also holding rider forums in October to get feedback on proposed increased service on Route #4, between Ann Arbor and Ypsilanti.

Related specifically to commuter rail, the board received an update at the meeting on the Washtenaw Livingston Line (WALLY) project, a proposed north-south commuter rail connection between Howell and Ann Arbor. The board expressed some caution about the project by passing a resolution that requires the board’s explicit approval for the expenditure of the $50,000 in next year’s budget allocated for station designs.

In other business, the board approved the selection of Plante & Moran as its new auditor. A new auditor rotation policy put in place by the board earlier this year made the previous auditor, Rehmann Robson, ineligible for the contract. The AATA board also approved a contract with an outside vendor to begin offering vanpool service.

In business that could be described as housekeeping, the board opted to keep its same slate of officers for the coming year and to keep the same meeting schedule – the third Thursday of the month. Jesse Bernstein was elected chair last year, and will continue in that role.

Also at the meeting, other members of the financial review group were announced. That group will be analyzing funding options for an expansion to countywide service. Previously, it had been announced that McKinley CEO Albert Berriz and former Washtenaw County administrator Bob Guenzel would co-chair the group. Their first meeting was Friday, Sept. 16, the day after the AATA board met. Berriz stated at that first meeting that the group will meet three more times, and will produce a white paper by the end of this year.

Related to that countywide effort, the initial board for an unincorporated transit authority – a precursor to an eventual formal authority – could be seated by Oct. 20, the date of the AATA board’s next meeting. It would include representatives from Ann Arbor, Ypsilanti, and other districts throughout the county.

AATA Work Plan

Highlights of the 10-page work plan for fiscal 2012 include reconstruction of the Blake Transit Center (BTC) in downtown Ann Arbor. During his report to board members, CEO Michael Ford said the acquisition of a six-foot-wide piece of land on the southwest border of AATA’s BTC parcel would be on the city council’s agenda for Sept. 19. (At that meeting, the council approved the AATA’s purchase of the land for $90,000, which will facilitate reconstruction of the BTC starting in the spring of 2012.)

In terms of increased service, the work plan includes a focus on: establishing the AATA as a vanpool service provider; establishing service to the Detroit Metro Airport; improving work-transportation connections between Ann Arbor and Ypsilanti; and continuing work on commuter rail.

Related to Detroit Metro service, Ford told the board that work on getting airport service in place had continued and that in the last three weeks he’d worked with Wayne County Economic Development Growth Engine (EDGE) on the issue. He said follow-up work was being done on the definition of public transportation as it relates to airport service. [Detroit Metro Airport charges access fees to private transportation operators.] Ford said the AATA would try to select a private-public partnership soon – in November.

Related to improvement of work-transportation service between Ypsilanti and Ann Arbor, on Dec. 1, 2010, the Ann Arbor Downtown Development Authority offered a challenge grant of $14,417 to support that kind of service improvement. A description of the grant from The Chronicle’s meeting report:

Before the DDA board was a resolution that would offer a $14,417 challenge grant to fund service improvements for the Ann Arbor Transportation Authority Route #4 bus, which runs between Ypsilanti and Ann Arbor. The dollar figure for the grant is based on a total estimated price tag for the improvements of $180,000 and a Washtenaw Area Transportation Study (WATS) computer model, which estimates about 8% of riders on the #4 bus have destinations west of State Street in the DDA district.

Before the Sept. 15 board meeting, the AATA held a rider forum on the proposed service enhancements to the Route #4 bus service. It was attended by around a dozen people. Additional drop-in sessions with AATA staff on Route #4 service improvements include:

• Thursday, Oct. 6, 5-7 p.m. at Glencoe Hills Apartments clubhouse, 2201 Glencoe Hills Drive, Pittsfield Township.
• Tuesday, Oct. 11, 9-11 a.m. at University Hospital, 1500 East Medical Center Drive, Ann Arbor. Classroom #2C108, across from the gift shop and cashier’s office.
• Tuesday, Oct. 11, 1-3 p.m. at Michigan Union, 530 S. State St., Wolverine Room AB, Ann Arbor.
• Wednesday, Oct. 12, 9:30-11:30 a.m. at Dom Bakeries, 1305 Washtenaw Ave., Ypsilanti.
• Tuesday, Oct. 18, 5-7 p.m. at Ann Arbor District Library, 343 S. Fifth Ave., Ann Arbor.

More information about the proposed changes is available online, along with details about how to give input.

The 2012 work plan also calls for continued work on AATA’s information technology, including its website as a communication tool, and improved point-of-sale systems to allow people to pay for their fares. [.pdf of work AATA 2012 work plan]

2012 Work Plan: Board Deliberations

As part of his report from the planning and development committee, Rich Robben reviewed next year’s work plan, calling it “very aggressive.” He described how it includes development of countywide networks and improvements to current service.

Service improvements highlighted by Robben included: adding service between Ann Arbor and the Detroit Metro airport; adding vanpool services; improving service between Ann Arbor and Ypsilanti; upgrading the AATA website; expanding the bus storage facility at the South Industrial headquarters; expanding night ride service to Ypsilanti; and reconstruction of the Blake Transit Center.

During deliberations, Anya Dale characterized the work plan as challenging, but said she thought the AATA can accomplish it. Roger Kerson gave credit to AATA staff for being able to accomplish the goals in this year’s work plan.

Board chair Jessie Bernstein called it an active, committed, dedicated past year on the part of the AATA, saying that there’s another active plan for next year.

Outcome: The board voted unanimously to approve its FY 2012 work plan.

AATA 2012 Budget

The board considered a resolution to approve its operating budget for the 2012 fiscal year, which runs from Oct. 1 through Sept. 30.

The budget calls for expenses of $30,410,616 against only $29,418,995 in revenues, for a deficit in the coming year of $991,621. That shortfall will be made up by drawing on the fund balance. According to the budget resolution, the AATA’s fund balance policy requires it to maintain reserves equal to at least three months’ worth of operating expenses. And the AATA expects to have $1.2 million more in its fund reserve to start the year than the minimum fund balance policy requires.

So the projected deficit – which the budget resolution attributes partly to one-time expenses associated with the transit master plan – is within the $1.2 million excess beyond the minimum three-month reserve, which the AATA holds in its fund balance. [.pdf of AATA 2012 operating budget]

In the most significant categories, the AATA’s revenues break down percentage-wise as follows: 31.4% local transit tax; 29.4% state operating assistance; 18.6% passenger fares; 12.8% federal operating assistance. The AATA also receives some revenue from surrounding municipalities that get transit service through purchase of service (POS) agreements. [2012 AATA revenue pie chart]

In the most significant expense categories, the AATA’s expenses break down percentage-wise as follows: 54.7% employee compensation; 18.2% purchased transportation from other providers; 9.3% other purchased services; 5.7% diesel fuel and gasoline. [2012 AATA expenses pie chart]

2012 Operating Budget: Board Deliberations

Reporting out from the planning and development committee earlier in the meeting, Rich Robben ticked through the figures from the 2012 operating budget. He said the budget will maintain and improve service, and will support the work plan and the transit master plan (TMP).

He acknowledged the roughly $1 million deficit, and described it as stemming from some one-time costs with development of the TMP, such as an improvement program for each district of the county, plus the governance structure. The deficit would be funded from unrestricted net assets, he explained. Even though unrestricted assets will be used, the AATA will still have 3.1 months of operating expenses in reserve after those assets are used in the course of the year, he said. By board policy, the AATA must maintain a reserve of at least 3 months of operating reserves.

Robben led off deliberations by saying it’s not a sustainable budget. But he said it would catapult the AATA towards a transition to countywide service. It’s aggressive, he said, but not taken lightly that the AATA would operate at a deficit. It’s also not AATA’s responsibility to build bank accounts, he said, so it’s appropriate to use the funds for this type of purpose.

CEO Michael Ford (right) talks with AATA board members Rich Robben and Anya Dale after the Sept. 15 meeting.

Anya Dale noted that many of the expenses that are causing the deficit are one-time costs. Now is the time, she said.

Roger Kerson said the budget reveals AATA’s next challenges. Planning was for this past year, he said, and next year is the financing challenge. It’s the right thing to do, he said, and he was looking forward to feedback from the financial review group that will be making funding option recommendations.

Board chair Jesse Bernstein said he was seriously concerned that the deficit year be a one-time commitment. He picked up on Kerson’s mention of the financial group, and noted that McKinley CEO Albert Berriz and former Washtenaw County administrator Bob Guenzel were co-chairing that group. It’s composed of people who understand financing and the politics of funding public activities, he said.

Bernstein called the AATA’s efforts at a transition to countywide service not an empty transition, but a real transition. The budget deficit, he said, should be recognized as unusual and unique, for one year only.

Outcome: The board unanimously approved AATA’s fiscal 2012 budget.

WALLY Commuter Rail

On the agenda was a resolution that expressed general support for continuing to work with surrounding communities on the Washtenaw and Livingston Line (WALLY) project. WALLY would provide commuter rail service on a 26-mile route between Ann Arbor and Howell. Relevant entities identified in the resolution include the state of Michigan, Livingston County, the city of Howell and the Ann Arbor Railroad.

However, the one “resolved” clause requires that funds allocated for WALLY in the 2012 budget – $50,000 – cannot be spent, except with the explicit consent of the AATA board.

WALLY: Background

At the Sept. 15 meeting, the board received a status report on the WALLY project from Michael Benham, a special assistant for strategic planning at AATA. Benham was hired in 2009 to handle the WALLY project. Since then, he’s become responsible for directing the development of the countywide transit master plan (TMP), which the AATA has developed over the last year.

Highlights from Benham’s report included the fact that starting in 2008, AATA has spent a total of $102,853 on the WALLY project, while other partners have spent a total of $225,000. That money has been spent primarily on a study and public education efforts. As part of the AATA FY 2012 budget, the AATA has included another $50,000 for the project. That money would be put towards station design.

Benham’s report identifies $16 million already invested by the Michigan Dept. of Transportation in track improvements, with $19 million worth of work still needed. Another $6 million in optional capital improvements is also identified.

Benham’s report projects that after the necessary capital improvements are completed to operate the commuter service, annual operating costs would amount to $5.4 million. Fares would be expected to cover $2.1 million of that, with another $1.4 million coming from the state’s Comprehensive Transportation Fund. That would leave another $1.9 million of local funding still to be identified.

Benham pointed board members to an appendix in the report with comparative data on WALLY. He characterized WALLY as “right in the ballpark” with other similar projects – at the low end of the range for capital costs. For similar commuter rail connections already in place, he said, the average time from idea to actual service was 10.5 years. So if people ask why WALLY is taking so long, it’s not actually taking so long, he concluded.

[.pdf of WALLY status report (to reduce file size, does not include scans of letters of support)]

WALLY: Board Deliberations

Rich Robben said he wanted to make the observation that the board had some concerns about the viability of the WALLY project. That’s why the presentation had been requested from Michael Benham – to make a reassessment of financial issues and to look at the prospects of closing remaining gaps in funding.

Roger Kerson also noted that board member David Nacht (who did not attend the board meeting) had raised some concerns at a committee meeting. Kerson characterized WALLY as a challenging project, but said, “We’re up to the challenge.” Kerson said the AATA was changing the eco-system by making transit a priority. Traffic is real, and congestion is real, he said. Having an alternative to US-23 will be welcome. He said he was glad to be going ahead in a measured way. Board chair Jesse Bernstein said he couldn’t imagine a clearer statement of moving forward in a careful way.

Outcome: The board voted unanimously to approve the resolution requiring board approval for any expenditures associated with WALLY.

Auditor Rotation

The board considered a resolution authorizing a one-year contract with Plante & Moran for auditing services.

A policy adopted by the AATA board on June 16, 2011 limits contracting with any one auditing firm to a total of eight years. That meant that the auditing firm the AATA had previously used, Rehmann Robson, was not eligible to provide auditing services.

The request for proposals (RFP) was sent to 19 public accounting firms. Plante & Moran’s proposal was judged to be the best of the three proposals received by the AATA.

Auditor Rotation: Board Deliberations

Roger Kerson reported from the performance monitoring and external relations committee that the AATA had received three bids from the 19 solicitations they’d sent out. The AATA evaluation team had ranked Plante & Moran as the best of the three bids, and the committee supported that recommendation.

When the board deliberated on the issue, AATA controller Phil Webb described how the RFP was sent to 19 CPA firms. The 19 were picked from a list of firms in southeast Michigan that did similar work. Technical abilities were 60% of the evaluation score, he said. The cost part of the bids were opened later and counted for 40% of the evaluation. The evaluators were Webb, board treasurer Sue McCormick, CEO Michael Ford.

Outcome: The board voted unanimously to approve selection of Plante & Moran as the AATA auditor.

Vanpools

A resolution on the agenda called for authorizing a contract with VPSI Inc. for vanpool services that is not to exceed $6,600 per year for each AATA owned/managed van. Vanpools are arrangements in which a vehicle is provided through the service, but is driven by one of the members of the pool. Riders pay for operational costs. Currently, the MichiVan program, operated by VPSI, provides such a service in the Ann Arbor area.

However, through fiscal year 2012 MichiVan will only continue to provide vanpool service for existing vanpools in the Ann Arbor area. It’s AATA’s intention to provide service for any additional vanpools that people might wish to create.

Vanpools: Board Deliberations

Reporting out from the planning and development committee, Rich Robben described how in a vanpool, the monthly cost is paid by riders. The capital cost will be paid by a federal grant.

Chris White, AATA manager of service development, told the board that AATA had been working on the project for a while now. [It was one of the service initiatives discussed at an Aug. 10, 2010 board retreat.] MichiVan will continue to operate (with about 100 vanpools) but there’s no ability to expand that number of vanpools. So AATA is looking to be a provider for expansion pools. It allows AATA a chance to get some experience before taking on a larger volume. The eventual goal, White said, is to assume operation of all of the vanpools in the county. This is an opportunity to do that gradually, he said.

Outcome: The board voted unanimously to authorize a contract with VSPI Inc. for vanpool service.

AATA Housekeeping

The board handled a number of housekeeping items.

Housekeeping: Board Officers

The board elects new officers every year. This year, board chair Jesse Bernstein said at the Sept. 15 meeting that the current officers have agreed to continue. As the organization contemplates a transition to a countywide focus, it was felt that it would be good to have some continuity, he said.

AATA board officers are: Jesse Bernstein (chair); Charles Griffith (secretary); and Sue McCormick (treasurer).

The committee chairs are: Rich Robben (planning and development committee), and Charles Griffith (performance monitoring and external relations).

Outcome: The board voted unanimously to maintain the same slate of board officers.

Housekeeping: Board Meeting Schedule

Also on the agenda was the approval of the full board’s meeting schedule, as well as the schedule for its committee meetings. Board meetings fall on the third Thursday of the month. [.pdf of board and committee meeting dates] AATA board meeting information packets are generally available before the meetings on the AATA website.

During deliberations, Anya Dale asked if there was an opportunity to talk about holding meetings earlier in the day. CEO Michael Ford told Dale that there had not been a discussion about that, and he said that staff can be open to changes or modifications. Board chair Jesse Bernstein said he’d be very open to discussing times, once dates are firmed up.

Outcome: The board voted unanimously to approve its meeting schedule.

Housekeeping: Local Advisory Council Appointments

Reporting out from the AATA’s local advisory council (LAC), a co-chair of that group, Jody Slowins, reported that terms were coming to an end, and that members would need to be reappointed. The LAC is a body that provides advocacy for seniors and disabled people.

Gloria Kolb had submitted an application, Slowins said, and the LAC welcomed her graciously.

Slowins said she’d been involved with the LAC for the last 12 years, and she’d never seen such a good group. The AATA’s paratransit coordinator, Brian Clouse, is strongly supportive of the LAC, she said.

Recommended for appointment to the LAC were: Gloria Kolb, Cheryl Weber, Clark Charnetski, Mary Wells, John Kuchinski, Lena Ricks, Eleanor Chang, and Stephen McNutt.

Outcome: The board unanimously approved the appointments to the LAC.

Countywide Transit Finance Group

At the board’s August 2011 meeting, Ford had announced that McKinley Inc. CEO Albert Berriz and Bob Guenzel, retired Washtenaw County administrator, will be co-chairing a panel of financial and funding experts. They are tasked with reviewing a report on funding options and making recommendations that will form the basis of a governance proposal for countywide transit.

That governance proposal is expected to come from an as-yet-unincorporated board of an Act 196 transit authority (U196) to establish a countywide transit authority under that state statute. [Michigan's Act 196 of 1986 provides a mechanism for establishing a transit authority that includes a larger range of entities than just cities. In contrast, the AATA is formed under Act 55 of 1963]

The funding report to be reviewed and analyzed by the group is the third volume of the transit master plan (TMP). [.pdf of Part 1 of Vol. 3 Transit Master Plan Funding Options] [.pdf of Part 2 of Vol. 3 Transit Master Plan Funding Options].

CEO Michael Ford’s written report to the AATA board for its Sept. 15 meeting included a partial list of members in the group tapped to review the funding options report for the countywide transit master plan. At the meeting, an updated list was circulated.

Besides Berriz and Guenzel, members of the group include the following: Patrick Doyle (CEO, Domino’s Pizza); Ric DeVore (regional president, PNC Financial Services Group Inc.); Mary Jo Callan (director, office of community development, Washtenaw County); Mark Perry (director of real estate services, Masco Corp.); Andy LaBarre (vice president of government affairs, A2YChamber); Tim Marshall (president and CEO, Bank of Ann Arbor); Norm Herbert (retired treasurer, University of Michigan); Adiele Nwankwo (senior vice president, PB Americas Inc.); Mike Cicchella (financial planner, Cicchella and Associates, and former Northfield Township supervisor); Leigh Greden (executive director of governmental and community relations, Eastern Michigan University); Conan Smith (executive director, Suburbs Alliance and chair, Washtenaw County board of commissioners); Jonathan Levine (professor, University of Michigan college of architecture and urban planning); Jason Lindauer (wealth management advisor, Merrill Lynch, and mayor of Chelsea); Mark Ouimet (state representative, District 52); John Thorhauer (president and CEO, United Methodist Retirement Communities); Jon Newpol (executive vice president, Thomson Reuters); Dennis Schornack (special advisor on transportation, Governor’s Office); Jim Kosteva, (director of government relations, University of Michigan); Paul Dimond (attorney, Miller Canfield).

The first meeting of the group was Friday, Sept. 16 – the day after the AATA board met. Most of the members were able to attend. The group received a presentation of some of the material they’d already been given in written form. They also asked for specific additional information and analysis, including: the specific economic impact of transit investments in communities of comparable size to Ann Arbor; and a measure of the costs that could be avoided through increased investment in transit.

While the amount and timing of a possible countywide transit millage received scant mention, a robust theme of the initial conversation was the potential for creative private-public partnerships in funding improved transit. Berriz called his and Guenzel’s selection as co-chairs of the group symbolic of the potential for private-public partnerships.

Berriz told members of the group at the Sept. 16 meeting that they will meet three more times, and will produce a white paper by the end of the year.

In his public commentary at the AATA board’s meeting the day before, on Sept. 15, Larry Krieg, with Wake Up, Washtenaw!, congratulated the AATA for the people it had assembled for the financial review. It’s an impressive list, he said. He asked that “out-of-the-box thinking” be tried.

Krieg hoped that among the funding mechanisms the group could identify would be original, significant public-private participation.

Communications, Committees, CEO, Commentary

At its Sept. 15 meeting, the AATA board entertained various communications, including its usual reports from the performance monitoring and external relations committee, the planning and development committee, as well as from CEO Michael Ford. The board also heard commentary from the public. Here are some highlights.

Comm/Comm: Governance, U196 Board

During his report to board members, CEO Michael Ford gave a brief update on progress with future governance issues connected with the entity that would eventually administer countywide transportation.

WEMU's Andrew Cluley interviews AATA board chair Jesse Bernstein after the Sept. 15 meeting.

By way of background, the basic approach the AATA is taking to expanding countywide transit is to transition to an authority formed under Act 196 of 1986. The AATA has been working towards encouraging townships in the county to strike inter-governmental agreements [under Act 7 of 1967] to have joint representation to the board of any Act 196 organization. It’s conceived as a 15-member board, with seven seats from Ann Arbor, two seats from the southeast sector (Ypsilanti Township and Augusta Township), and one seat each for the city of Ypsilanti, Pittsfield Township, and multi-jurisdictional districts in the northeast, north middle, west and south middle parts of the county.

As a precursor to the Act 196 authority, the AATA hopes to seat an unincorporated authority (U196) by Oct. 20, the date of the board’s next meeting.

Ford reported at the Sept. 15 board meeting that he’d met with AATA board chair Jesse Bernstein and Ann Arbor mayor John Hieftje about an inter-local agreement between Ann Arbor, Ypsilanti, Washtenaw County and the AATA.

Comm/Comm: Chelsea Express

Roger Kerson reported out from the performance monitoring and external relations committee that the Chelsea Express – a commuter service between Ann Arbor and Chelsea – is now near capacity. The AATA is now at the point of deciding what to do if the route meets capacity.

Comm/Comm: Website Development

Mary Stasiak, AATA director of community relations, said that one concern the staff is focusing on is to make sure the AATA “owns” everything that’s being developed for the site, given that some of it is being custom developed. The AATA has sent the initial designs back to the contractor for revision, because “we want to make it the best that we can,” she said.

Comm/Comm: Complaints

Thomas Partridge introduced himself as an Ann Arbor and Washtenaw County Democrat, an advocate for seniors and the disabled, and those needing and deserving of public services during this trying time in American history. He called for the election of a new chair of the board of the AATA to champion service that is friendly and caring in safe and ride-worthy vehicles. He questioned whether that’s been the case under current board leadership.

SelectRide should not receive the bid for the AATA’s A-Ride paratransit service, Partridge said. He called the vehicles that SelectRide puts on the road “jalopies” that have accumulated more than 200,000 miles before they are purchased by SelectRide.

Partridge also spoke at the second public commentary slot at the end of the meeting. He called himself an advocate for those who can’t attend the meeting. He said he had led the effort to get the board to meet in an accessible place. [Last year, the AATA moved its meetings to the boardroom of the Ann Arbor District Library from its headquarters on South Industrial Highway.] Despite those efforts, Partridge said, the board went ahead with their vote on the budget with three of its seven members absent. The budget items should have been deferred until the entire board could attend, he said.

He complained that AATA staff members got people to come to board meetings to salute their incompetence. The public is being cheated by publicly funding vehicles that should never be on the road, he said. SelectRide, the company that holds the para-transit contract with AATA, perpetuates discrimination against everyone, Partridge said, even their own employees.

His complaints have been whitewashed, Partridge contended, and he called on the board to elect new leadership.

Comm/Comm: Compliments

Carolyn Grawi spoke on behalf of the Ann Arbor Center for Independent Living. She said she came to support the new local advisory council appointments. She also congratulated AATA for its work associated with the non-motorized Washtenaw Avenue walkway and the accessible crosswalk – AATA was among the many players on that project, she said. She also congratulated Mary Stasiak’s department for receiving an APTA AdWheel award, recognizing its billboard ads.

Present: Jesse Bernstein, Rich Robben, Roger Kerson, Anya Dale

Absent: Charles Griffith, David Nacht, Sue McCormick

Next regular meeting: Thursday, Oct. 20, 2011 at 6:30 p.m. at the Ann Arbor District Library, 343 S. Fifth Ave., Ann Arbor [confirm date]

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AATA board member Roger Kerson at the board's Aug. 24, 2011 meeting. (Photos by the writer.)

At the board meeting, CEO Michael Ford announced that McKinley Inc. CEO Albert Berriz and Bob Guenzel, retired Washtenaw County administrator, will be co-chairing a panel of financial and funding experts who will review various funding options for a possible expanded, countywide transportation system.

The board voted to release a funding report to the panel – the third volume of its transit master plan (TMP). [.pdf of Part 1 of Vol. 3 Transit Master Plan Funding Options] [.pdf of Part 2 of Vol. 3 Transit Master Plan Funding Options]. The first two volumes were released previously.

The report describes a range of funding options, which would likely be used in some combination of strategies: fare revenues, advertising, property taxes, sales taxes, payroll taxes, parking taxes, stakeholder contributions, fuel taxes and vehicle license fees.

In anticipation that the panel could recommend funding options that would require voter approval, the board also approved the selection of CJI Research Corp. as the vendor for survey work over the next three years. That survey work can include on-board surveys of bus riders as well as telephone surveys of Washtenaw County voters.

At the Aug. 24 meeting, the board also approved implementation of a new website, which will provide greater flexibility for AATA staff who aren’t computer programmers to push information to the public. The new site is also intended to make it easier for the public to track the real-time locations of their bus.

The board also changed its pricing policy for the go!pass, a bus pass offered to downtown Ann Arbor employees that allows them to board AATA buses on an unlimited basis without paying a fare. The cost of the fares has historically been paid by the Ann Arbor Downtown Development Authority using public parking system revenues, plus a nominal fee per card paid by downtown employers. The revised policy breaks with AATA’s past practice of charging costs for go!pass rides based on its cheapest full-fare alternative. Those costs per ride will now be lower, based on the DDA’s ability to pay and the AATA’s estimate of what employers would be willing to pay.

In other business, the board approved a revision to its contract with the Select Ride company, which provides AATA’s on-demand paratransit service (A-Ride) for those who are not able to ride the fixed-route regularly-scheduled bus system. The upward adjustment was driven by a recent increase in maximum taxicab fares implemented by the city of Ann Arbor.

The board also approved a master agreement that will apply to all of its contracts with the Michigan Dept. of Transportation, and adjusted its capital plan to accommodate changes in three projects: the Blake Transit Center, the bus storage facility, and the bus maintenance facility.

Transit Master Plan Funding Report

The board was asked to authorize the release of “Volume 3: Funding Options Report” of its transit master plan (TMP). The TMP is part of the AATA’s effort to fulfill a countywide transportation mission.

The resolution specified that Volume 3 of the TMP was authorized for release to “a panel of financial and public funding experts to review, refine, and adjust the document.” The first two volumes were released to the public earlier this year. [.pdf of draft "Volume 1: A Transit Vision for Washtenaw County"] [.pdf of draft "Volume 2: Transit Master Plan Implementation Strategy"]

During the Aug. 24 meeting, CEO Michael Ford announced that co-chairing the panel will be Albert Berriz, CEO of McKinley Inc., and Bob Guenzel, retired Washtenaw County administrator.

Funding recommendations made by the panel of experts are to be forwarded to a fully constituted but unincorporated Act 196 board (U196) for further consideration and action. The transition of transportation service from the AATA to an authority formed under Act 196 of 1986 is the most likely scenario under which transit funding would be established on a countywide basis.

At its July 19, 2011 meeting, the board authorized the board chair to appoint three of its members to the U196 board, and authorized the AATA’s CEO to use AATA resources in support of the U196.

Immediately following the Aug. 24 meeting, the AATA made the funding report available in digital form: [.pdf of Part 1 of the Vol. 3 Funding Report] [.pdf of Part 2 of the Vol. 3 Funding Report]

In reporting out from the AATA planning and development committee’s regular monthly meeting, Rich Robben – the committee’s chair – said the committee had expected to vote on the release of the TMP funding report, but it was not finalized at the time of the meeting. Committee members had received it by email and recommended via email that the report come forward to the full board.

During board comment on the funding report, board chair Jesse Bernstein said the third volume of the TMP was the most difficult section to write. He said the AATA staff had made a heroic effort. The report would be helpful in understanding where the AATA is and where it wants to go, he said.

The report describes funding options, he continued, which will need to be developed in conjunction with a service delivery model. He described the collection of people on the funding task force, which will study the report and make recommendations based on it, as an “excellent group of folks.”

Among the funding options described in the report are: fare revenues, advertising, property taxes, sales taxes, payroll taxes, parking taxes, stakeholder contributions, fuel taxes and vehicle license fees.

Charles Griffith called the report valuable, because it lays out how transit funding works generally. He allowed that at certain points, his eyes glazed over trying to get through it, but he did find it illuminating for at least thinking about how to fund different elements of the transit master plan. He said he looked forward to the feedback the board received on the report.

Outcome: The board unanimously approved the release of the funding report.

Voter/Rider Survey Vendor

Before the board for its consideration was authorization of a three-year contract with CJI Research Corp. to conduct survey research. The contract has two additional one-year options.

Of the three respondents to the AATA’s request for proposals (RFP), the one from CJI was the top-rated proposal with respect to the criteria: price, experience, and technical approach. CJI was the firm that conducted the AATA’s most recent on-board and telephone surveys in 2009.

CJI has experience with polling for ballot initiatives. That experience is significant, because at some point it’s expected that a proposal will be put before voters across Washtenaw County that would levy a transit tax, if approved. The draft fiscal year 2012 budget for AATA includes $75,000 for an on-board survey of riders and a telephone survey of Washtenaw County voters.

Outcome: The board unanimously approved the selection of CJI as the vendor for the survey work.

New Website

A resolution on the agenda called for approving the use of $140,000 in federal funds to implement the redesign of AATA’s website. The bid for the redesign had already been awarded to the Michigan firm Artemis Solutions Group Inc.

Among the improvements desired by the AATA is a way for staff – who do not have programming skills – to update the website. AATA also wants its new website to be a tool that staff can use to broadcast information to AATA riders via email, text-messaging, Facebook, Twitter, etc. Among the enhanced information the AATA wants available on its website is real-time bus location information that includes a way for third-party developers to create and distribute smart phone applications using AATA’s real-time data.

AATA board member Anya Dale had some questions about the new website.

The new website will also allow the AATA to provide a “performance scorecard” to display metrics that include finances, operations, ridership, environmental impact, maintenance and safety performance. The website is supposed to allow AATA to comply with section 508 ADA (Americans with Disabilities Act) standards, and provide translation into multiple languages.

During board deliberations, Anya Dale asked if anything would be changed to the way that routes and schedules are looked up. She noted that when she first started riding the bus, she found some parts difficult to navigate. Board chair Jesse Bernstein asked John Gilkey of Artemis Solutions if he could provide a presentation and if so, how long that might last. Gilkey said his last presentation had lasted 45 minutes. Bernstein wondered if it might not be possible to get a five-minute version.

After some back and forth, board members seemed content not to receive a presentation at the board meeting, but they wanted to see a demonstration of some of the working functionality before the new website goes live. Roger Kerson, in particular, was keen to establish that some kind of usability testing would be done before launch. He asked specifically if the budget included a usability study. Gilkey said it was not planned – Artemis had done data collection and collected input in advance of design.

John Gilkey, of Artemis Solutions, was prepared to give a presentation on the AATA's new website that his company will implement. The board blanched at the 45-minute estimated time it would take, and decided to forgo the presentation for that meeting.

Kerson responded to Gilkey saying that he felt strongly that usability testing should be included and that it needn’t be expensive. Gilkey then said that Artemis does a lot of usability testing and would be testing out the implementation with users – he’d understood Kerson’s original question to be whether Artemis would be undertaking a full-blown scientific study, using something like Michigan State University’s usability lab.

Kerson noted that users “always find stuff we don’t find.” Kerson stressed that he’d like to see what’s included in the new website, before AATA rolls it out, so that they can find what the bugs are. Bernstein asked Mary Stasiak, AATA’s community relations manager, to keep the board posted as progress is made on the implementation.

Outcome: The board unanimously approved the implementation of the new website.

Go!pass Rides

The board was asked to vote on a change to the price AATA charges for rides taken under the go!pass program. The go!pass can be purchased by downtown Ann Arbor employers for their employees at a cost of $5 per pass annually.

AATA board member Rich Robben. In the background is Nancy Shore, director of the getDowntown program.

The change authorized by the board might go unnoticed for holders of the passes, who do not pay fares to board the bus. But the change will include an increase from $5 to $10 for the annual fee paid by employers per pass. That’s an increase that will be implemented by the getDowntown program, which administers the go!pass. However, in the action the board was asked to approve on Aug. 24, the AATA was actually in effect lowering the price per go!pass ride.

Here’s why. Holders of the go!pass card can board the bus without paying a fare, and there are no limits on the number of rides that can be taken with the card. The number of those rides is counted as they’re swiped at the fare box. [Before the fare boxes were converted to swipe-able technology, drivers recorded such rides with a button press].

The cost of such rides is funded in small part by the $5/card fee paid by employers, but in largest part by revenues from the city’s public parking system provided through the Ann Arbor Downtown Development Authority. At its June 2, 2010 meeting, the DDA authorized three years worth of funding for the go!pass program. For the second two fiscal years of that funding, approval amounted to $438,565 (FY 2012) and $475,571 (FY 2013).

The number of rides taken using the go!pass has increased each year for the last decade, but has jumped significantly during the last year. In the past, the AATA has priced go!pass rides in a way that matches the revenue per go!pass ride to the amount that bus riders would pay if they paid the full fare under a regular 30-day pass – the cheapest full-fare option. So, as go!pass ridership has increased, the total amount charged to getDowntown by the AATA for the rides has also increased.

In the past, the DDA has increased its level of support to match what the AATA has charged. As the DDA is under increasing financial pressure due to the new public parking system management contract recently signed with the city of Ann Arbor, as well as a possible need to return excess tax increment finance (TIF) revenues that have been collected, it’s not anticipated that the DDA will be able to increase the amount it contributes to the go!pass program.

Given the levels of funding now pledged by the DDA, the price that employers would need to be charged per go!pass per year would be $26 – if the same policy is maintained of charging for go!pass rides so that their cost matches what the cheapest full-fare option would be.

In recent presentations to the DDA, Nancy Shore, director of the getDowntown program, has recommended an increase from $5 to $10, not to $26. The advisory board of getDowntown has approved the increase to $10.

The action the AATA board was asked to take on Aug. 24 essentially sets the charge for go!pass rides at a flat rate – equal to the DDA’s current level of pledged support, plus an estimate that the total employer contribution (at $10/pass/year) would be $71,000 per year, based on the roughly 7,100 go!passes sold to employers so far this year. That is, the price charged for go!pass rides for the next two fiscal years will be $509,565 and $546,571, respectively – independently of the number of rides taken by go!pass holders.

The board’s action translates to a decision to accept a $16/pass/year shortfall in revenues from go!pass rides, compared to what the previous pricing policy has been, or a shortfall of roughly $113,600 (16*7,100).

In introducing the background of the go!pass issue for board members, Chris White, manager of service development for AATA, described how the proposed pricing change was really only an interim solution, for the next two years. Three years from now, he said, the DDA may not have funds to support the program at all.

Shore, who attended the board meeting, noted that in the last 10 years, fares have gone up, gas prices have gone up, and an increase from $5 to $10 per year per pass for the employer contribution seemed feasible. She noted that it’s a “universal pass,” which means that employers must purchase the passes for all their employees, whether employees use the passes or not. It’s not an option to purchase passes for just a subset of employees.

Shore said that very few employers she’d talked with had much of a problem with the increased $10 cost. She compared it to a health care benefit – some employees would use it more and some would use it less. She noted that there’s been a huge uptick in use of the pass and it was important to maintain that benefit to everyone.

Go!pass rides by month, charted year by year. (Links to higher resolution image.)

Charles Griffith wondered if the resolution was worded properly – was the board being asked to approve the increase from $5 to $10? White clarified that the board was being asked to approve the cost for the go!pass program as a whole. That would then be conveyed to the getDowntown advisory board, which sets the cost for employers. White described the situation as one where the AATA essentially sells the go!passes to the getDowntown program.

The proposal before the board would establish a fixed cost for each pass instead of linking the cost to the number of rides that are taken, White explained. White allowed that it’s a bit of a strange relationship, because the getDowntown program is currently part of the AATA – its two staff members are compensated as employees of the AATA. [Discussions are currently taking place about the future of the program, and whether the getDowntown program will become part of the DDA. For recent coverage, see "DDA Board Mulls Absorbing getDowntown Staff into DDA"]

Rich Robben noted that when board members had questioned the issue at the planning and development committee meeting, from the AATA’s perspective, if there’s a dramatic increase in ridership, then the AATA recovers less per ride. Historically, Robben said, the go!pass program has panned out nicely for the AATA.

Outcome: The board unanimously approved the change in price structure for the go!pass.

Amendment to Capital Plan

Before the board for its consideration was approval of a revision to AATA’s capital and categorical grant program to accommodate three projects: the Blake Transit Center (BTC) reconstruction in downtown Ann Arbor, the bus storage facility expansion, and the bus maintenance facility upgrade.

The scope of the BTC project has expanded, with a total estimated cost of $5.5 million. The estimate is based on a schematic design that is not yet complete. Already secured is $4.195 million in grant funds, which leaves a balance of $1.044 million.

At the Aug. 24 meeting, CEO Michael Ford said that AATA is looking to finalize design of a newly reconstructed Blake Transit Center in the next month. The AATA is still working with the city to obtain the use of a six-foot strip of land on the southwest edge of the AATA parcel, between Fourth and Fifth avenues. The AATA is planning to issue construction bids in October or November 2011 with the hope that construction work can start in the spring of 2012.

The bus storage expansion was AATA’s final project approved for federal stimulus funds – $1.01 million in stimulus funds were allocated to the project. With a current cost estimate of $2.404 million, there is a balance of $1.394 million.

The bus maintenance facility upgrade includes the addition of a urea filling station. Already approved in grants for that work is $0.598 million. The total cost will be $1.244 million, leaving a balance of $0.647 million.

The board’s action on Aug. 24 revised the AATA’s capital and categorical grant program to provide a total of $2,676,678 for the three projects from the AATA’s federal formula funds.

Outcome: The board unanimously approved the adjustment of its capital plan.

A-Ride Deal

The board was asked to consider an increase in AATA’s contract with Select Ride, to provide service for the AATA’s A-Ride – an on-demand program offered to those with disabilities preventing them from riding the regularly scheduled AATA fixed-route service. The increase in the contract authorized by the board is 2.9% – from $2,793,481 to $2,873,481.

The increase reflects the recent increases in taxicab rates, authorized by the Ann Arbor city council at its May 16, 2011 meeting. The increase authorized by the council was from $2.25/mile to $2.50/mile, which had been requested by several taxicab companies in light of rising fuel prices.

The contract with Select Ride is structured so that the company is paid based upon the distance that passengers are transported, together with the fare structure for the taxicab rides. The contract increase reflects a compromise under which the AATA is shouldering only part of the increased cost due to the taxicab fare increase.

Outcome: The board unanimously approved the change in the A-Ride deal.

MDOT Master Agreement

A resolution on the agenda called for authorizing standard terms and conditions for a five-year master agreement with the Michigan Dept. of Transportation. The master agreement will facilitate future contracts with MDOT for state funding, as well as to pass through federal funding to the AATA. The standard terms and conditions are established as part of a master agreement so that they don’t have to be spelled out in every future contract individually.

The current five-year master agreement expires on Sept. 30, 2011. The board’s action authorized a new agreement that reflected only minor changes from the current one: third-party contracting procedures are updated, and reference to a regional program was eliminated because it no longer exists.

Outcome: The board unanimously approved the five-year master agreement.

Commuter Rail Communications: WALLY

During his communications to the board, CEO Michael Ford noted that the last planning and development committee meeting had included discussion of the Washtenaw and Livingston Line (WALLY) project. AATA continues to look at the project and evaluate it, Ford said. He’d come back to the board in September on the issue, Ford told the board, but there would be additional discussion by the planning and development committee to focus on the status of the project, the money that’s been spent so far, investments in the WALLY corridor, and a description of the project’s major issues.

Ford said an “analysis paper” would be created to describe the WALLY project’s status and an action plan going forward, which would clarify the role of the state (via MDOT). Work would include talking to Livingston County and other community partners, as well at to Ann Arbor Railroad.

In reporting out from the planning and development committee, Rich Robben, chair of that committee, characterized the committee’s conversation about WALLY as “quite a discussion.”

In relevant part, the minutes of the planning and development committee meeting read as follows:

David Nacht stated that he was opposed to any further spending of funds at this time on architectural services for WALLY noting that these funds have been provided by AATA’s WALLY partners, and suggesting that at this point it is very unlikely that the project will go forward. He suggested that an offer be extended to the WALLY partners to return the funds, or ask for permission to spend the funds on other projects that will benefit transit. Michael Benham explained that the completion of station design would aid with qualifying for additional federal grant funds and added that the WALLY project was rated the top project by the State of Michigan to receive funding to improve signals and ongoing development of the project.

Committee members and staff engaged in a lengthy discussion regarding WALLY. It was suggested that absent the political will in Washtenaw and Livingston County, it is unlikely that trains will run. In contrast, it was noted that even if WALLY does not go forward, the tracks (which have already been improved) can still be used by freight cars.

Michael Ford was requested to contact the Governor’s office and the head of the Michigan Department ofTransportation (MDOT) to ascertain whether the project is a priority of the current administration, and if so, will that support lead to the needed capital and operating support for WALLY. Michael Ford indicated that he recently met with Kirk Steudle (the Director of MDOT). They discussed the idea of identifying more incentives to develop and urge collaboration between communities.

Rich Robben suggested tabling the WALLY discussion with a caveat that the funding not be spent without specific authorization from the board. Mr. Robben requested the opportunity for more discussion on operating funds. Michael Ford requested confirmation (which he received) that the funds for WALLY will remain in the draft budget, but will not be spent without specific action from the Board.

Communications, Committees, CEO, Commentary

At its Aug. 24, 2011 meeting, the board entertained other various communications, including its usual reports from the performance monitoring and external relations committee, the planning and development committee, as well as from CEO Michael Ford. The board also heard commentary from the public. Here are some highlights.

Comm/Comm: Shorter-Term Service Improvements

In addition to the work on the transit master plan (TMP) and the governing body that would be the countywide authority, CEO Michael Ford mentioned shorter-term initiatives that the AATA is working on to enhance service: Ypsi-to-Ann Arbor service, van pool service, extension of A-Ride (paratransit) service to the East Ann Arbor Health Center, and airport service.

Ford reported that because the AATA had received more than one response to the request for proposals (RFP) it had issued for the airport service contract, the project would be delayed by six to eight weeks, but the AATA was still moving forward with that, he said. AATA is collaborating on funding issues with private and public partners, which includes talks with the University of Michigan and the Ann Arbor Convention and Visitors Bureau. He reported that AATA would be meeting with the Wayne County Airport Authority, as well as with Wayne County EDGE to discuss how the AATA might operate out of the airport.

The A-Ride service was extended on July 1 to the East Ann Arbor Health Center. Ford reported that training was held for employees on the details of the new service.

An RFP was issued for van pool service in late June, Ford reported, and a recommendation could be ready for the planning and development committee to review at its meeting in September.

In the area of improving the Ann Arbor-to-Ypsilanti workforce transportation service, Ford said that Night Ride would be expanded to Ypsilanti in the fall. AATA is also looking at doubling the number of weekday trips on Route #4, which would begin in January 2012. That’s already included in the 2012 budget, Ford said.

The AATA continues to work with community partners to support service, Ford said

Comm/Comm: Landscaping

Ford reported on the in-progress landscaping project at the AATA headquarters facility.

Landscaping work underway at the AATA headquarters facility on South Industrial Highway.

He noted that the ivy, dead trees and rocks were gone and they’d be replaced with low-maintenance plants. Accessible concrete ramps are also being installed.

Comm/Comm: CTN Viewership

Reporting out from the performance monitoring and external relations committee, Charles Griffith told his board colleagues that board meeting online viewership on Community Television Nework was included in the board information packet. Counts reflect the number of views, not necessarily the number of unique IP addresses, and do not include views of the regular cable broadcast, which CTN does not track.

Sep. 16, 2010: 27
Oct. 21, 2010: 44
Nov. 18, 2010:  2
Dec. 16, 2010: 50
Jan. 20, 2011:  9
Mar. 17, 2011: 23
Apr. 21, 2011: 21
May  19, 2011: 12
Jun. 16, 2011:  9

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Comm/Comm: Performance Update

Charles Griffith, chair of the board’s performance monitoring and external relations committee, characterized the financial operating data as “in good shape.” He allowed that expenses have started to go up on a per-service-hour basis, but are still under the target amount. The AATA continues to see an uptick in ridership.

Ridership numbers on fixed-route service through July 2011. (Links to higher resolution image.)

It’s now possible to compare on an apples-to-apples basis, he said, because it’s been over a year since the last fare increase was implemented. Ridership in July 2011 was up 6.2%, he said, adding that they can only speculate why.

Griffith said it might be possible for the October 2011 on-board survey to help shed some light on that. He noted that ridership for the demand response component of the AATA’s service is down 3.5%, which is a continuation of the downward trend since the fare increase.

Comm/Comm: Information on Intermediate Stops

During public commentary at the conclusion of the meeting, Vivienne Armentrout told the board that she had a suggestion for a service improvement: The stops that are intermediate to those listed in the schedule are not listed anywhere that she could find.

That had caused her some confusion at times, Armentrout said, though overall she was delighted with her Route #13 service. The drivers are considerate and courteous, she reported. But sometimes she thinks there’s going to be a stop and then there’s not. She ventured that one reason it might not be possible to put those intermediate stops into the schedule is that it would take away some flexibility. But she wished for a list or some way that information could be accessed.

Comm/Comm: Wake Up, Washtenaw!

Larry Krieg spoke during both times available for public commentary. He called the board’s attention to several recent developments indicating the role of transit in growing the economies in the regions it serves. He noted that the American Society of Civil Engineers had released a study recently concluding that by 2021, the average American household will lose $7,000 in spending power, unless additional funds are spent on roads, bridges and transit.

He noted that the Michigan State Police had released a report stating that the direct cost of car crashes in 2009 was $4.9 billion, with indirect costs in pain and suffering of $4.0 billion. And Orlando, Florida has begun work on SunRail, a 39-mile commuter line, using existing rail right of way, despite initial objections from Florida Gov. Rick Scott. There’s no doubt that operation costs for SunRail will be fully covered by public and private sources in addition to farebox revenue, he said.

Larry Krieg of Wake Up, Washtenaw! addressed the board.

Transit has an important role to play in the economic development of the community, Krieg said. Now is no time to hang back. In the time allotted for public commentary at the end of the meeting, Krieg returned to the podium to describe some steps that his group – Wake Up, Washtenaw! – is taking to promote economic development through transit.

Krieg said he felt that opposition to investment in transit is generally based on a lack of information. There needs to be a strong voice for each transit project. So Wake Up, Washtenaw! proposes to continue support for Partners for Transit, a citizen group promoting the transit master plan. The group will also engage civic and business leaders in Washtenaw County and surrounding counties. He also suggested convening a roundtable discussion of transportation funding alternatives, that would involve business leaders, transit officials and the University of Michigan’s Transportation Research Institute (UMTRI). He suggested that the discussion should include alternative legal and financial structures that could bring public transit closer to being self-sustaining. Krieg concluded by inviting people to email him at wakeupwashtenaw at gmail dot com.

Comm/Comm: Paratransit, Human Rights

Thomas Partridge complained about the time for public commentary at AATA board meetings, which is limited to two minutes (at the start and the end of the meeting), calling it undemocratic censorship. He called on the board to give priority to monitoring the AATA’s paratransit service performance. He contended that he’d be victimized, even though he’d taken a limited number of taxi rides through the service. He contended that some of the taxicabs have more than 250,000 miles on them and don’t ride well or drive well and have non-functioning air conditioning. Partridge contended that the AATA board members are not performing their functions well, because they don’t take ride themselves and inspect buses themselves. They don’t know what’s going on in the streets, he said.

Partridge also spoke at the conclusion of the meeting during public commentary. He lamented the fact that public meetings have become “routine” for participants and for board members and employees. What the public needs to understand, he said, is that public transit is a primary human rights and civil rights issue. Support for transit should be garnered on this basis, he said. Partridge contended that transportation services are being rationed out on a discriminatory basis. Drivers and other personnel are stressed, and service is strained too far, he contended. Vehicles are assigned to drivers in a racist and discriminatory manner, he claimed.

Present: Charles Griffith, David Nacht, Jesse Bernstein,  Rich Robben, Roger Kerson, Anya Dale

Absent: David Nacht, Sue McCormick

Next regular meeting: Thursday, Sept. 15, 2011 at 6:30 p.m. at the Ann Arbor District Library, 343 S. Fifth Ave., Ann Arbor [confirm date]

This AATA-owned parcel, where Blake Transit Center is located, sits in the middle of the block bounded by Fourth and Fifth avenues on the west and east, and by Liberty and William streets on the north and south. Among the outstanding issues in a project to rebuild BTC is discussions with the city of Ann Arbor over a city-owned 6-foot-wide strip that runs along the southern edge of the parcel's western half. (Image links to higher resolution view. Parcel map and aerial photo from Washtenaw County's website: gisweb.ewashtenaw.org/website/mapwashtenaw/)

The contract with Ford renews annually on Oct. 1 unless terminated by Ford or the AATA. Ford will earn the same salary as he did previously – $160,000 – but will receive a lump sum payment equal to 4% of his salary dating from July 20, 2009, when he was first hired. Board members uniformly praised Ford’s work for the AATA since he was hired in the summer of 2009.

Approval of the construction manager contract for the downtown Blake Transit Center sets up the reconstruction project possibly to begin in earnest later this year. AATA has so far declined to release any schematics or drawings of the proposed new transit center to the public, citing as-yet-unfinalized details, including issues related to a city-owned 6-foot-wide strip on the southern edge of the parcel’s western half.

The new transit center will be built on the same AATA-owned parcel where BTC is currently located, between Fourth and Fifth avenues, north of William Street and a city-owned surface parking lot. The current building sits at the northwest corner of the parcel, long Fourth Avenue – buses enter from Fifth Avenue and exit onto Fourth Avenue. The planned design calls for a new building to be constructed kitty-corner on the parcel from the existing building, which would be demolished. The new transit center would sit at the southeast corner of the parcel – buses would enter from Fourth Avenue and exit onto Fifth Avenue.

At its meeting, the board also heard its usual range of reports and commentary. Among those reports, Ford told the board that two local governments – Ann Arbor Township and Superior Township – have voted to sign an Act 7 agreement. That’s a step that will allow their joint participation and representation in a countywide transit authority.

Construction Manager for Blake

The board was asked to consider a contract with Spence Brothers for up to a total of $384,000 to oversee two major construction projects for AATA: (1) demolition and reconstruction of the Blake Transit Center on Fourth Avenue in downtown Ann Arbor [$253,000]; and (2) expansion of the bus storage facility at the AATA headquarters located at 2700 S. Industrial [$131,000].

The need for a construction manager was identified by representatives of the Federal Transit Administration after reviewing AATA projects that are being funded with federal dollars.

At its May 12, 2010 meeting, the AATA board had approved a $343,439 contract with DLZ Michigan Inc. for architectural and engineering services to reconstruct the transit center.

At this month’s board meeting, CEO Michael Ford asked Terry Black, AATA’s manager of maintenance, to give an update on the Blake Transit Center reconstruction project. They’re still working on design and aesthetics, Black reported.

Remaining issues include working on a 10-foot-wide green strip as a border with the federal building property on the north side of the site. The AATA and the city of Ann Arbor are also still working out an agreement on a city-owned 6-foot-wide strip along the southern part of the parcel’s western half. The construction manager contract, on which the board would be voting, Black said, would provide a check and balance on the design firm. From there, the project could start rolling, he said.

In reporting out from the planning and development committee, AATA board member Rich Robben noted that in the resolution on the Blake Transit Center construction manager contract, the fees could be as high as $384,000 – but might turn out to be less because it’s negotiated under the Brooks Act.

The federal Brooks Act requires that the selection of contractors be based on qualifications, not price. The AATA received proposals from the following firms for the construction manager work:

• Braun Construction Group, Farmington Hills, MI
• The Christman Company, Livonia, MI
• DeMaria Building Company, Detroit, MI
• Irish Construction, Howell, MI
• T. H. Marsh Construction Company, Ann Arbor, MI
• O’Neal Construction, Ann Arbor, MI
• Owen-Ames-Kimball Co., Grand Rapids, MI
• Park Avenue Consultants Inc., Ann Arbor, MI
• Phoenix Contractors, Ypsilanti, MI
• White Construction Co. Inc., Detroit, MI
• Spence Brothers, Ann Arbor, MI

The breakdown for the Blake Transit Center work and the bus storage expansion to be awarded to Spence Brothers is (1) $253,000 for BTC, and (2) $131,00 for the bus storage. In a staff memo, the Spence Brothers’ proposal is evaluated as being in line with industry standards when expressed as a percentage of total construction costs: 5-6%. That translates to $4.2-5.0 million for the project. Funding sources for the transit center reconstruction, based on previous Chronicle reporting – from December 2009 and October 2010:

• $1.6 million federal grant
• $0.4 million state match (25% of $1.6 million)
• $0.735 million federal grant
• $0.183 million state match
• $1.0 million federal state-of-good-repair match

Outcome: The construction manager contract was unanimously approved by the board.

CEO’s New Contract

Before the board for approval was a new employment contract with its chief executive officer, Michael Ford, who was hired in the summer of 2009. [For a report on Ford's April 2009 final interview: "AATA, CEO Candidate Start Talks"]

The contract, which is renewable each year on Oct. 1, pays Ford $160,000 a year – the same compensation he received last year. Ford is not receiving a raise this year, but will receive a one-time additional payment equal to 4% of his annual salary – his base salary will not change.

Board members at the meeting praised Ford’s work over the last year in leading the AATA’s countywide transit master planning effort.

Roger Kerson led off board commentary by saying that Ford’s efforts on the transit master plan (TMP) have been extraordinary. Sue McCormick added that she wanted to say how pleased the board is to move forward with another contract. Board chair Jesse Bernstein said he was especially pleased that they have a clear process for evaluating the CEO, which ties performance to the budget. David Nacht said he appreciated the leadership of Bernstein and McCormick for providing to the board a timeline on the budget process and CEO evaluation process in a simple, laid out presentation.

Nacht said he’d appreciated the work of the committee – Bernstein and McCormick – who had negotiated the new contract with Ford. He noted that it’s difficult to negotiate a contract with a serious professional in the current economic climate, when there’s a need by the community to watch every nickel spent. At the same time, Nacht continued, the AATA has to respect the level of performance it’s getting. The community should feel comfortable. Bernstein said he is thrilled with the job Ford has done. The board and the AATA have accomplished a great deal over the last couple of years, and could not have done it without Ford’s leadership, Bernstein said.

Anya Dale added that through her work with Washtenaw County as a planner, she talks to representatives from other communities. And they report how wonderful it’s been talking to representatives of the AATA – she felt it was the first time the AATA has been a real leader.

Charles Griffith reported that he’s heard sentiments similar to those Dale had reported. He said he’s glad Ford has decided to stick with the AATA and to sign up for another year. Hopefully, Griffith said, he’ll sign on for many more.

Outcome: The board voted unanimously to approve the new contract.

Board: Communications, Committees, CEO, Commentary

At its May meeting, the board entertained various communications, including its usual reports from the performance monitoring and external relations committee, the planning and development committee, as well as from the CEO, Michael Ford. The board also heard commentary from the public. Here are some highlights not included elsewhere in the report.

Comm/Comm: Board Reappointments

In his report to the board, CEO Michel Ford acknowledged the reappointment of Charles Griffith and Rich Robben to the AATA board through May 2016. Their nominations were confirmed by the city council at its May 2 meeting. He thanked Griffith and Robben and other board members for their support and help in moving the AATA forward.

Comm/Comm: Rail Transit Funding

Ford reported the recent news that some funding for rail transit had come through the Michigan Dept. of Transportation from the Federal Rail Administration – the city of Ann Arbor had been awarded $2.8 million for the Fuller Road Station project. [Recent Chronicle coverage: "PAC Gets Update on Fuller Road Station"]. Ford called it “exciting news,” and said it gets the city closer to an intermodal facility. He pointed out that the station is included as a part of the AATA’s transit master plan (TMP).

Comm/Comm: Connector Study

Ford reported that the Plymouth-State connector study project continues to move forward. URS, which is the consultant on the project, had given a presentation to the board a couple of months ago, Ford reminded board members, and will give a presentation to the city probably sometime in the fall. The next steps would include a preliminary engineering and environmental assessment, Ford said. [Coverage of the URS presentation to the AATA board: "AATA: Transit Study, Planning Updates"]

Comm/Comm: Transit Master Plan, Governance

Ford said the leadership team for the transit master plan had met, moderated by board chair Jesse Bernstein. Community outreach meetings continue to take place. [A Chronicle column that includes reporting from one of those meetings, which took place in Ypsilanti: "Column: Chevy Volt – Private Transit Choices"]

Discussions on the governance of a countywide authority continue, said Ford. He’s continuing to meet with representatives of various municipalities. He reported that Ann Arbor Township and Superior Township will sign an Act 7 agreement – that will allow their joint participation and representation in a countywide transit authority. By way of background, Act 7 is the Urban Cooperation Act of 1967. [.pdf of Act 7] It’s not specific to transit issues, but rather provides a framework for different units of local government to form agreements with each other. [Previous Chronicle coverage on countywide transit authority governance: "Concerns Aired Over Transit Governance"]

Board member Roger Kerson asked Ford for more details on governance discussions. He asked what Ford was imagining as far as sequencing and timing.

Ford said he’d met with Ann Arbor Township and Superior Township officials, and that they had actually voted on an Act 7 accord. Ford said he’d also talked to other local units, but no others had yet voted. He hoped everything would be in place by fall – that is, that each group of governmental units in the sections of the county that had been identified would get to determine their participation in a countywide transportation authority, based on Act 7 agreements. Ford said that the AATA has a lot of work ahead of it in the next several months. By fall, he said, an “unincorporated group” should be able to start forming.

Comm/Comm: Living Wage

Reporting out from the planning and development committee, Rich Robben spoke about a living wage policy that the AATA has been considering at the committee level. AATA staff had provided some information to the committee, Robben said, and had followed calculations by the city of Ann Arbor. Staff will make updates based on committee suggestions, and it will likely come back before the committee for its June meeting. The committee may recommend that it come before the full board.

By way of background, the board had passed a resolution at its Dec. 16, 2010 meeting to explore some kind of living wage standard for its contractors. The city of Ann Arbor’s ordinance for its contractors is tied to federal poverty guidelines and was earlier this month increased by a percent. [Chronicle coverage: "Ann Arbor Law Nudges Living Wage Upwards"]

Comm/Comm: Ridership, Fuel Prices

Reporting out from the performance monitoring and external relations committee, Charles Griffith said they went over AATA’s financial and performance reports as usual, and found the agency is in pretty good shape financially – it’s doing well on its performance metrics, he said.

The ridership on the express routes – from Chelsea to Ann Arbor, and from Canton to Ann Arbor – have shown some increase in ridership, Griffith said. That’s probably due to efforts on the part of staff and the University of Michigan to send email alerts, as well as a promotional 10-ride ticket sold at a discounted rate to try to get people into the program, he said. Performance on those routes will continue to be monitored, Griffith said.

Jesse Bernstein followed up a few minutes later by asking if there was any data about the impact of fuel prices, or if that would not be apparent until next month. Phil Webb, AATA’s controller, told Bernstein that ridership has increased, but it’s difficult to say how much is attributable to fuel costs. As far as the AATA’s own fuel costs, Webb said, the organization is actually under budget, because the AATA buys fuel futures contracts.

Comm/Comm: On-Time, Website, Rotating Auditor

Continuing his update from the performance monitoring and external relations committee, Griffith said the committee had received a report on on-time performance. In a report they’d heard a few months ago, they had focused on very late buses. More recently, they’d looked at each time point – a bus might arrive at its route end at the Blake Transit Center on time, but be late at time points along the way.

The committee had also received a presentation on website development and information architecture, Griffith said. “It’s not exactly fun reading,” he allowed, but it gives an idea of what the architecture of the AATA website is. The committee had provided a little bit of input for the wording on the top buttons on the site, and would receive more updates as the website redesign progresses.

The committee had started discussion about an auditor rotation policy, but had not gone into detail, because committee members wanted to have board member Sue McCormick at a meeting before they proceeded. She had been the one originally to raise the issue. [McCormick had raised the issue at the board's Sept. 16, 2010 meeting, when board members approved a contract with Rehman as its auditor, but only for one year.]

The issue needs to come before the board at its next meeting so that there will be time to issue a request for proposals in time for next year’s audit, Griffith said.

Comm/Comm: Local Advisory Council – Driver Appreciation

Jody Slowins reported out from the AATA’s local advisory council, beginning by saying that she’d been involved with the LAC for more than 12 years. In that time, she said, the whole tenor has changed a lot. People initially wanted to be on the council and just wanted to complain. It’s evolved into a more involved council, she said. The LAC has been working on a new driver appreciation program. She extended compliments to the staff liaison to the LAC, Brian Clouse – he’s been a wonderful connection between AATA and the council, she said. The driver recognition program program would recognize people for positive behavior. She hoped drivers would try to aspire to be recognized. The program would be about rewarding people, instead of cutting them down in a punitive way.

Comm/Comm: Accessible, Affordable Transportation

Thomas Partridge spoke during both opportunities for the public to address the board. He introduced himself as a Washtenaw County and city of Ann Arbor resident, and advocate of county residents who need and deserve public transportation the most in the current economic climate: middle-income families, students, seniors and disabled people. At the most recent Ann Arbor city council meeting, he reported, the increase of taxicab rates “sailed through” council’s approval. Even though the council consists all of Democrats, they didn’t even discuss the issue he’d brought forth during the public hearing, he said – namely, the general negative impact on those who need AATA’s service.

Partridge asked that the AATA board continue to make accessible, affordable transportation and para-transit its top priorities and to keep rates affordable and expand the service countywide. The board should find subsidies to reduce rates for seniors and disabled people. He noted that one reason Michael Ford was hired as AATA’s CEO was to institute an affordable, accessible countywide transportation system.

During his second turn at the podium, Partridge said the county needs transit on a more open, accessible and friendly basis than it’s currently being provided. He criticized the board for discussing issues in skeleton terms, with a predetermined agenda, and decisions already made. Agenda items are mentioned in passing and then given unanimous approval, he said. Discussions need to be more full and open.

Partridge said he’s critical of the board chair, the AATA’s CEO, the mayor and the city council for not making greater efforts to unite governmental units in county. Partridge said he attends Ann Arbor city council meetings as much as possible, and the sense he gets is that there’s not enough person-to-person contact between the AATA appearing in public in front of the city council and the Washtenaw County board of commissioners. Both of those organizations want to be in on the decision-making of this body, Partridge concluded. [The last occasion on which a representative of the AATA appeared at the city council was the Ann Arbor city council's Jan. 20, 2009 meeting. Then-board chair David Nacht appeared before the body to give councilmembers an update.]

Present: Charles Griffith, David Nacht, Jesse Bernstein, Sue McCormick, Rich Robben, Roger Kerson, Anya Dale

Next regular meeting: Thursday, June 16, 2011 at 6:30 p.m. at the Ann Arbor District Library, 343 S. Fifth Ave., Ann Arbor [confirm date]