The council approved a $729,879 transfer from the affordable housing trust fund to the AAHC to support the “West Arbor” portion of the AAHC’s renovation plan. And the council also took two actions in specific support of the West Arbor portion of the plan. The council gave initial support to a zoning revision for a project at 3451 Platt Road, which will entail demolishing four 5-bedroom units – because of their current placement in the floodplain – and constructing 32 townhomes and a community center. A third council action on Sept. 2 was approval of a site plan for North Maple Estates, which currently offers 19 units. All those units will be demolished and replaced with 42 townhomes.

The $729,879 transfer from the affordable housing trust fund would leave a $850,920 balance in the trust fund. The trust fund’s current balance stems largely from the council’s decision late last year – on Dec. 16, 2013 – to deposit the net proceeds of the sale of the former Y lot into the trust fund.

By way of background, in 2012 the city was accepted into a new rental assistance demonstration program, known as RAD, offered by the U.S. Dept. of Housing and Urban Development (HUD). The program allows residents in selected housing units to receive rental assistance through long-term Section 8 subsidy vouchers that are tied to the buildings, rather than individuals. The RAD program also enables entities like the AAHC to partner with private-sector developers on housing projects – something the AAHC couldn’t previously do. The Ann Arbor city council gave necessary approvals in connection with the RAD program at its June 3, 2013 meeting. Financing for the RAD program is primarily through low-income housing tax credits (LIHTC).

According to the memo accompanying this item, out of the $16,564,370 project budget for West Arbor, low-income housing tax credits and permanent debt are expected to cover $14,091,491. That leaves a gap of $1,472,879. The AAHC has secured $50,000 from the Michigan State Housing Development Authority (MSHDA) and $293,000 from a Community Challenge Planning Grant. So the AAHC has requested up to $729,879 in capital funding support from the Ann Arbor housing trust fund for the West Arbor portion of the RAD conversion.

The initial approval given by the council for the Lower Platt project is from R1C (single-family dwelling district) and R2A (two-family dwelling district) to R4B (multi-family dwelling district). Final approval of the zoning, as well as the site plan approval, will come before the council at a subsequent meeting, probably in October.

The planning commission had sent the rezoning request for the 3451 Platt Road property to the city council with a recommendation of approval – in a vote taken at its Aug. 6, 2014 meeting. However, commissioners postponed consideration of the site plan for the five-building, 32-unit project, amid concerns about the site’s location in the floodplain and stormwater management. The postponement was supposed to allow time to address staff concerns regarding the impact on natural features.

Zoning and site plan approval must ultimately be given by the city council. However, the zoning approval will require two votes by the council at two separate meetings – because changes to the zoning code are actually changes to a city ordinance. So the site plan’s delay would not necessarily delay the project, as long as the site plan is put in front of the council for consideration by the time the council takes a second vote on the rezoning.

The site includes a property currently owned by AAHC, as well as an adjacent parcel that’s being purchased by the city on behalf of AAHC.

The project calls for demolishing four single-family homes and one two-family building, and constructing a 32-unit apartment complex with five buildings, 61 parking spaces, a playground, and a community building. The new apartments will include: 8 one-bedroom units; 12 two-bedroom units; 6 three-bedroom units; 2 four-bedroom units; and 4 five-bedroom units.

Two of the proposed buildings would be in the floodplain, which raised concerns from city staff. The AAHC is working to address those concerns – possibly by eliminating or reducing the number of buildings in the floodplain. It had been expected that the AAHC could address the issues raised by city staff so that the site plan could return to the planning commission at its Aug. 19 meeting – but that didn’t happen. Nor is it on the planning commission’s Sept. 3 agenda. [.pdf of planning staff report] [.pdf of June 28, 2014 citizen participation meeting report]

The AAHC Platt Road project is different from a Washtenaw County-owned property at 2260 and 2270 Platt Road, the former location of the county’s juvenile center. That site is also being considered for affordable housing.

Other AAHC-related action by the council on Sept. 2 included site plan approval for North Maple Estates. It calls for demolishing 20 existing single-family homes at the public housing complex on North Maple and constructing an eight-building, 42-unit apartment complex with a total of 138 bedrooms.

Aerial view of North Maple Estates site, outlined in green.

The rezoning of the 4.8-acre site at 701 N. Maple Road already has been given final approval by the city council at its Aug. 18, 2014 meeting. The zoning was changed from R1C (single-family dwelling district) to R4B (multi-family dwelling district).

The Ann Arbor planning commission had recommended the zoning and site plan for approval at its meeting on June 17, 2014. The council gave initial approval of the rezoning at its July 7, 2014 meeting.

The site is on the west side of North Maple, between Dexter Avenue and Hollywood Drive. [.pdf of staff report]

The units in the eight-building, 42-unit apartment complex are proposed to have a total of 138 bedrooms. The units range in size from one bedroom to five bedrooms.

The project will include a playground, community building and 73 parking spaces. According to a staff memo, the buildings will be located along a T-shaped driveway that connects to North Maple Road and Dexter Avenue. The drive extends northward toward Vine Court but does not connect with that street. There would be a new connection to Dexter Avenue through the remaining, undeveloped length of Seybold Drive.

This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron.

The council’s first regular meeting in September was shifted from Monday to Tuesday in order to accommodate the Labor Day holiday.

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

The Sept. 2 agenda is relatively light and is dominated by land use and development issues, several of them related to the Ann Arbor housing commission’s (AAHC) extensive plan to renovate many of its existing properties.

In other significant business, the council will consider giving direction to the city administrator to negotiate operating agreements with transportation networking companies like Uber and Lyft.

And the council will consider authorizing up to a 15-year extension of the local development finance authority (LDFA), based on collaborating with a satellite arrangement in Adrian and Tecumseh.

Separate from site plan and zoning issues associated with the AAHC’s renovations, the council will also consider transferring $729,879 from the affordable housing trust fund to the Ann Arbor housing commission. The fund transfer would support the “West Arbor” portion of the renovation plan. That would leave a $850,920 balance in the trust fund. The trust fund’s current balance stems largely from the council’s decision late last year – on Dec. 16, 2013 – to deposit into the trust fund the net proceeds of the sale of the former Y lot.

Two projects associated with the West Arbor part of the AAHC plan appear on the council’s Sept. 2 agenda. First, the council will consider initial approval of rezoning for the 3451 Platt Road property – from R1C (single-family dwelling district) and R2A (two-family dwelling district) to R4B (multi-family dwelling district). That was forwarded to the council with a recommendation of approval from the planning commission. However, commissioners postponed consideration of the site plan for the five-building, 32-unit project, amid concerns about the site’s location in the floodplain and stormwater management. The site plan may be able to “catch up” to the zoning approval – because the council will need to give the rezoning a second and final approval at a meeting following the Sept. 2 session.

Second, the North Maple Estates site plan, which requires just one council vote, will be considered on Sept. 2. The rezoning required for the AAHC project – a 4.8-acre site at 701 N. Maple Road – has already been given final approval by the city council, at its Aug. 18, 2014 meeting. The zoning was changed from R1C (single-family dwelling district) to R4B (multi-family dwelling district). The site plan, which was shifted to the Sept. 2 agenda, calls for demolishing 20 existing single-family homes – the public housing complex known as North Maple Estates – and constructing an eight-building, 42-unit apartment complex with a total of 138 bedrooms.

A non-AAHC land development item on the council’s Sept. 2 agenda is final approval of the rezoning of property necessary for an expansion of the Gift of Life Michigan facility on Research Park Drive. The rezoning would change 6.55 acres from O (office district) and RE (research district) to ORL (office/research/limited industrial district). The site plan, which also appears on the Sept. 2 agenda, calls for building a three-story, 40,786-square-foot addition to connect two existing buildings at 3161 and 3169 Research Park Drive, which are owned and occupied by the nonprofit.

Even though the council rejected one proposed change to its taxicab ordinance at its Aug. 18 meeting – which would have regulated all drivers for hire in the city – initial approval was given to another change in the part of the ordinance that regulates rates. So the council will be giving final consideration to that change on Sept 2. The change would establish certain parameters to mitigate possible negative consequences to the setting of a very high maximum allowable taxicab rate, under which taxicab companies might eventually compete. Those parameters include a requirement that a taxicab company commit to a single rate annually and that the rate be advertised in a vehicle with signage in letters one-inch tall.

As an alternative to requiring all drivers for hire to be registered with the city and to affix commercial plates to their vehicles, the council will consider whether to establish operating agreements with companies like Uber and Lyft. The council’s Sept. 2 agenda includes a resolution that would direct the city administrator to negotiate operating agreements with transportation network companies (TNCs) in lieu of developing a local law. The resolution does not define in specific terms what a TNC is.

In other business on Sept. 2, the council will consider a large contract with Ultimate Software Group, worth $250,000 for payroll software to cover the period as the city transitions to NuView, a different software system. Another large contract to be considered by the council on Sept. 2 is with Northwest Consultants Inc. for $930,822 – to do design work for the Stadium Boulevard reconstruction project from Kipke Drive to Hutchins.

A smaller contract to be considered by the council, as part of the consent agenda, is with Hinshon Environmental Consulting Inc. for additional facilitation services for the technical oversight and advisory group (TOAG). That group is overseeing and coordinating multiple wet weather-related projects in the city. The $10,000 contract amendment would bring the total contract value to $35,000.

The council will also consider the confirmation of several nominations to boards and commissions, including a reappointment of John Splitt to the board of the Ann Arbor Downtown Development Authority. It would be Splitt’s third four-year term on the board.

This article includes more detailed information about many of these agenda items. More details on other agenda items are available on the city’s online Legistar system. The meeting proceedings can be followed Tuesday evening live on Channel 16, streamed online by Community Television Network starting at 7 p.m.

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

Affordable Housing Fund Transfer

The council will be considering a $729,879 transfer from the affordable housing trust fund to the Ann Arbor housing commission to support the “West Arbor” portion of the AAHC’s renovation plan. That would leave a $850,920 balance in the trust fund. The trust fund’s current balance stems largely from the council’s decision late last year – on Dec. 16, 2013 – to deposit the net proceeds of the sale of the former Y lot into the trust fund.

By way of background, in 2012 the city was accepted into a new rental assistance demonstration program, known as RAD, offered by the U.S. Dept. of Housing and Urban Development (HUD). The program allows residents in selected housing units to receive rental assistance through long-term Section 8 subsidy vouchers that are tied to the buildings, rather than individuals. The RAD program also enables entities like the AAHC to partner with private-sector developers on housing projects – something the AAHC couldn’t previously do. The Ann Arbor city council gave necessary approvals in connection with the RAD program at its June 3, 2013 meeting. Financing for the RAD program is primarily through low-income housing tax credits (LIHTC).

According to the memo accompanying this item, out of the $16,564,370 project budget for West Arbor, low-income housing tax credits and permanent debt are expected to cover $14,091,491. That leaves a gap of $1,472,879. The AAHC has secured $50,000 from Michigan State Housing Development Authority (MSHDA) and $293,000 from a Community Challenge Planning Grant. So the AAHC has requested up to $729,879 in capital funding support from the Ann Arbor housing trust fund for the West Arbor portion of the RAD conversion.

A project included in West Arbor is the Lower Platt Road project, which will entail demolishing four 5-bedroom units – because of their current placement in the floodplain – and constructing 32 townhomes and a community center. A second project included in West Arbor is North Maple Estates, which currently offers 19 units. All those units would be demolished and replaced with 42 townhomes.

The final component of West Arbor is the renovation of the four 3-bedroom units known as the North Maple Duplexes.

AAHC: 3451 Platt Road Rezoning

The council will give initial consideration to the rezoning that’s necessary for the Lower Platt portion of West Arbor: from R1C (single-family dwelling district) and R2A (two-family dwelling district) to R4B (multi-family dwelling district).

The planning commission sent the rezoning request for the 3451 Platt Road property to the city council with a recommendation of approval – in a vote taken at its Aug. 6, 2014 meeting. However, commissioners postponed consideration of the site plan for the five-building, 32-unit project, amid concerns about the site’s location in the floodplain and stormwater management. The postponement is supposed to allow time to address staff concerns regarding the impact on natural features.

Zoning and site plan approval must ultimately be given by the city council. However, the zoning approval will require two votes by the council at two separate meetings – because changes to the zoning code are actually changes to a city ordinance. So the site plan’s delay would not necessarily delay the project, as long as the site plan is put in front of the council for consideration by the time the council takes a second vote on the rezoning.

The site includes a property currently owned by AAHC, as well as an adjacent parcel that’s being purchased by the city on behalf of AAHC.

The project calls for demolishing four single-family homes and one two-family building, and constructing a 32-unit apartment complex with five buildings, 61 parking spaces, a playground, and a community building. The new apartments will include: 8 one-bedroom units; 12 two-bedroom units; 6 three-bedroom units; 2 four-bedroom units; and 4 five-bedroom units.

Two of the proposed buildings would be in the floodplain, which raised concerns from city staff. The AAHC is working to address those concerns – possibly by eliminating or reducing the number of buildings in the floodplain. It had been expected that the AAHC could address the issues raised by city staff so that the site plan could return to the planning commission at its Aug. 19 meeting – but that didn’t happen. Nor is it on the planning commission’s Sept. 3 agenda. [.pdf of planning staff report] [.pdf of June 28, 2014 citizen participation meeting report]

This project is part of major renovations and improvements the AAHC is making to its low-income housing inventory. For background on the AAHC process of renovating its properties, see Chronicle coverage: “Public Housing Conversion Takes Next Step.”

The AAHC Platt Road project is different from a Washtenaw County-owned property at 2260 and 2270 Platt Road, the former location of the county’s juvenile center. That site is also being considered for affordable housing.

North Maple Estates

The council will consider the site plan for North Maple Estates on Sept. 2. This Ann Arbor housing commission project calls for demolishing 20 existing single-family homes – the public housing complex known as North Maple Estates – and constructing an eight-building, 42-unit apartment complex with a total of 138 bedrooms.

Aerial view of North Maple Estates site, outlined in green.

The rezoning of the 4.8-acre site at 701 N. Maple Road already has been given final approval by the city council at its Aug. 18, 2014 meeting. The zoning was changed from R1C (single-family dwelling district) to R4B (multi-family dwelling district).

The Ann Arbor planning commission had recommended the zoning and site plan for approval at its meeting on June 17, 2014. The council gave initial approval of the rezoning at its July 7, 2014 meeting.

The project is another part of the major renovation effort being undertaken by AAHC on several of its properties. The site is on the west side of North Maple, between Dexter Avenue and Hollywood Drive. [.pdf of staff report]

The units in the eight-building, 42-unit apartment complex are proposed to have a total of 138 bedrooms. The units range in size from one bedroom to five bedrooms.

The project will include a playground, community building and 73 parking spaces. According to a staff memo, the buildings will be located along a T-shaped driveway that connects to North Maple Road and Dexter Avenue. The drive extends northward toward Vine Court but does not connect with that street. There would be a new connection to Dexter Avenue through the remaining, undeveloped length of Seybold Drive.

Gift of Life Expansion

At its Sept. 2 meeting, the council will consider giving final approval to the rezoning of property necessary for an expansion of the Gift of Life Michigan facility on Research Park Drive. The rezoning would change 6.55 acres from O (office district) and RE (research district) to ORL (office/research/limited industrial district). At the same meeting, the council will also consider the site plan for the project.

Aerial view of Gift of Life Michigan site.

The proposal calls for building a three-story, 40,786-square-foot addition to connect two existing buildings at 3161 and 3169 Research Park Drive, which are owned and occupied by the nonprofit. According to a staff report, the additional space will accommodate offices, a special events auditorium and “organ procurement suites.” The nonprofit’s website states that the Gift of Life is Michigan’s only federally designated organ and tissue recovery program. Cost of the expansion project will be $10.5 million.

The city planning commission recommended approval of the rezoning at its July 1, 2014 meeting. City council action to give initial approval of the site plan came at its meeting on Aug. 7.

The project would reduce the four existing curb cuts to Research Park Drive to three, connecting one of the loop driveways to an existing driveway at the east end of the site. A parking lot at the back of the site will be expanded by 38 parking spaces. Two alternate vehicle fueling stations are proposed in parking spaces near the main entry, with the driveway at the center of the site providing access for ambulances. A new shipping and receiving facility will be located on the northeast corner of the site.

Taxicab Meter Rates

Even though the council rejected one proposed change to its taxicab ordinance at its Aug. 18, 2014 meeting – which would have regulated all drivers for hire in the city – initial approval was given to another change in the part of the ordinance that regulates rates. So the council will be giving final consideration to that change on Sept 2.

The change would establish certain parameters to mitigate possible negative consequences to the setting of a very high maximum allowable taxicab rate, under which taxicab companies might eventually compete. Those parameters include a requirement that a taxicab company commit to a single rate annually and that the rate be advertised in a vehicle with signage in letters one-inch tall.

The vote by the taxicab board to recommend the ordinance change came at its July 24, 2014 meeting.

These issues were also discussed at three monthly meetings of the taxicab board prior to that, on April 23, 2014, May 22, 2014 and June 26, 2014. Representatives of the taxicab industry at those meetings advocated for the establishment of a very high maximum – not tied to gas and insurance prices. They feel it’s one mechanism that would allow them to compete with ride-sharing services like Uber and Lyft.

The proposal to regulate all drivers for hire, which the council rejected, was also intended in part to allow taxicab companies to compete with Uber and Lyft on an even playing field. Taxicab drivers are already regulated by the city.

Regarding fare regulation, the city’s current structure already allows for establishing a maximum rate to be adopted by the city council. Currently the maximum rate in Ann Arbor is $3 to get in, $2.50 per mile, and 40 cents per minute waiting time. Those maximum rates were last adjusted upwards three years ago, on May 16, 2011, in response to gas prices that had nudged past $4 per gallon. At that time, the taxicab board indicated it did not anticipate considering another rate change until the gas prices were over $5 for at least two consecutive months.

So the taxicab board’s thinking is not being driven by gas prices, which are currently between $3.75 and $4 in the Ann Arbor area. Instead, a possible increase in allowable fares is based on concern that the taxicab industry in Ann Arbor might not be able to survive unless taxis are allowed to charge more.

At its Aug. 28, 2014 meeting, taxicab board members recommended the following maximum rate schedule for eventual consideration by the council, which could appear on the council’s agenda as soon as Sept. 15: $10 to get in, $5 per mile and 40 cents per minute waiting time. In addition, a $1 surcharge could be applied for each passenger over three passengers.

At the council’s Aug. 18 meeting, Stephen Kunselman (Ward 3) – who also serves as the city council’s representative to the taxicab board – asked rhetorically if the taxicab board should be disbanded. At its Aug. 28 meeting, taxicab board chair Michael Benson announced that he’d received an email from board member Eric Sturgis, who indicated that he would be resigning from the board – because he’s moving to Jackson, Mich. It has historically been difficult to find residents willing to serve on the taxicab board.

Drivers for Hire: Uber/Lyft Operating Agreement

The ordinance change rejected by the council on Aug. 18, 2014 would have required all drivers for hire to be registered with the city, to have commercial plates on their vehicles, and to maintain insurance commensurate with commercial plates. And the absence of commercial plates on a vehicle that’s observed being used for picking up or dropping off passengers would have provided a reason for a traffic stop by Ann Arbor police. At the taxicab board meetings over the last few months, representatives of the taxicab industry argued that the state statute regulating limousines already gives the city the ability to enforce against Uber and Lyft drivers.

At the taxicab board’s Aug. 28 meeting, representatives of the taxicab industry lamented the fact that they had not attended the council’s Aug. 18 meeting to advocate for regulating all drivers for hire through a city ordinance. Representatives of Uber and Lyft numbered over 50 people at the council meeting, some of whom addressed the council during public commentary time.

Ward 3 city councilmember and taxicab board member Stephen Kunselman indicated at the board’s Aug. 28 meeting that there might be a possibility that one of the five councilmembers who voted against the ordinance at first reading on Aug. 18 might bring it back for reconsideration.

The 5-5 vote totaling 10 on the 11-member body stemmed from the absence of Margie Teall (Ward 4). Voting for the regulation of all drivers for hire were Kunselman, Sumi Kailasapathy (Ward 1), Jack Eaton (Ward 4), Chuck Warpehoski (Ward 5) and Mike Anglin (Ward 5). Voting against the change were mayor John Hieftje, Sabra Briere (Ward 1), Jane Lumm (Ward 2), Sally Petersen (Ward 2) and Christopher Taylor (Ward 3).

At the council’s Aug. 18 meeting, during deliberations on the rejected ordinance change, Briere indicated that she’d concluded as early as April of this year that an operating agreement – instead of a local ordinance – would be the right approach. Taylor indicated he had been working with Briere to come up with that kind of approach.

The resolution to be considered by the council on Sept. 2 would direct the city administrator to negotiate an operating agreement with established transportation network companies (TNCs) and to bring an agreement to the council for approval by the second council meeting in October, which is Oct. 20.

The elements to be included in the operating agreement are specified in an attachment to the resolution as follows:

Operating agreement principles include:

• Company will provide a minimum of $1M in liability insurance coverage for the driver, vehicle and passengers and any other injured parties, from the moment a driver is linked with a passenger to the moment the passenger releases the vehicle.
• Company will conduct the following at no cost to the city: background checks for each driver-applicant prior to allowing their participation. This background check will include a criminal background check, including a check for multiple relevant jurisdictions; a review of the applicant’s driving record; a mechanical inspection of the vehicle by a licensed inspector. The results of this data collection will be made available to the City for any driver / vehicle combination approved for participation in the company.
• Company will not allow participation by a driver / vehicle combination if the driver has any felony conviction; any conviction for DUI; more than 2 moving violations in any calendar year or more than 4 moving violations in a six-year period, with no more than 4 accumulated points in any calendar year.
• Company shall ensure that all driver vehicles pass an annual, mutually agreeable safety inspection conducted by a licensed mechanic.
• Prior to participation in the program, drivers shall go through a driver-education program that provides training in customer service and improves familiarity with local streets and local traffic conditions.
• Drivers shall not accept passengers except through the ride-sharing mechanism provided by the Company.
• Company will provide requested data to the City about accidents and incidents with passengers, as well as a report on customer satisfaction and safety ratings.

The resolution does not appear to define explicitly what a TNC is – and seems to allow for the possibility that an existing limo company could seek to operate under such an agreement without complying with the state statute on operation of limousines.

The resolution also leaves unspecified the intended term of the agreement – although deliberations at the council’s Aug. 18 meeting indicated that the intent of such operating agreements in other Michigan municipalities was to implement a temporary basis under which Uber and Lyft could operate, while the state legislature establishes a legislative framework under which such companies could operate.

The resolution does not direct the city administrator to provide for any explicit penalties that the city could impose on a TNC for failure to adhere to the operating agreement. The enforcement mechanism that the resolution seems to contemplate is for a TNC to provide certain kinds of data to the city upon request.

The resolution does not direct the city administrator to impose any requirements on the public accessibility of data provided by TNCs to the city. If a company were to come to an agreement with the city that data and information would be provided to the city, but only upon the condition that it not be disclosed to the public, then that data would be exempt from disclosure, even under a request made under Michigan’s Freedom of Information Act.

Extension of LDFA

The council will consider a resolution on Sept. 2 that would move ahead with a 15-year extension of the local development finance authority (LDFA). The LDFA – branded as one of about a dozen LDFA SmartZones statewide – is funded through capture of public school operating millages within the geographic areas of the Ann Arbor and Ypsilanti downtown development authority districts. In actual fact, however, no capture is made of the Ypsilanti school taxes.

The LDFA contracts with Ann Arbor SPARK to operate a business accelerator, which is meant to move start-up companies in the tech and biosciences sectors more quickly to a stage in their development when they are generating revenue from paying customers and adding jobs. Separate from the LDFA business acceleration contract with Ann Arbor SPARK, the city of Ann Arbor has historically engaged SPARK for business attraction and retention services. However, this year the $75,000 annual contract with SPARK was tabled by the council – in a vote taken at the council’s June 16, 2014 meeting. It’s expected at some point to be taken back up off the table for consideration. By council rule, it will be considered demised if it’s not considered before a lapse of six months.

The extension – which would still need approval from the Michigan Economic Development Corporation – depends on establishing a relationship between the Ann Arbor-Ypsilanti SmartZone and some other “satellite” LDFA. So the Sept. 2 resolution designates Adrian/Tecumseh as that satellite. The council’s resolution specifies the following as findings:

1. That the selection of the Adrian/Tecumseh LDFA as a satellite provides unique characteristics and specialties through its public and private resources including the location of Adrian College, Siena Heights University and Jackson College within its TIF District and the opportunities for research partnerships and student/young entrepreneur involvement. In addition partnership with another multi-jurisdictional LDFA provides opportunities for shared experiences.
2. That the selection of the Adrian/Tecumseh LDFA as a satellite provides regional cooperation and collaboration benefits to the LDFA and the Cities of Ann Arbor and Ypsilanti with joint focuses on technology (including expanding green technologies and agricultural technology) and entrepreneurial services.
3. That the selection of the Adrian/Tecumseh LDFA as a satellite provides value and support to the LDFA by strengthening existing collaboratives, making available a new/expanded technical assistance and support through its Innovation Center at Adrian College, and agricultural and manufacturing resources.

In connection with the extension, revisions to the Ann Arbor-Ypsilanti SmartZone TIF (tax increment financing) plan and development plan are being undertaken. Drafts of revisions are attached to the council’s Sept. 2 agenda item. Revisions appear to address concerns that have been raised about the current arrangement – to some extent by Ann Arbor city councilmembers.

Those concerns include the fact that TIF is not currently allowed to be spent outside the TIF district in the city of Ann Arbor; further, no TIF funds can be expended in Ypsilanti – inside or outside its TIF district – because no actual tax capture revenue is generated for the LDFA in that area. The revisions would allow TIF revenue to be expended anywhere in the entire cities of Ann Arbor or Ypsilanti.

In addition, the revisions specify in greater detail that TIF revenue can be used to pay for high-speed communications infrastructure. Specifically mentioned as eligible expenditures is the “installation of technology related infrastructure assets, i.e. fiber lines, nodes, or work spaces.”

The LDFA extension comes in the context of lingering questions about the impact on school funding of the LDFA tax capture. In FY 2013, the total amount captured by the Ann Arbor SmartZone LDFA was $1,546,577, and the current fiscal year forecast is for $2,017,835. About the same amount is forecast for FY 2015.

The LDFA captures Ann Arbor Public Schools (AAPS) operating millage, but those captured taxes don’t directly diminish the local school’s budget. That’s because in Michigan, local schools levy a millage, but the proceeds are not used directly by local districts. Rather, proceeds are first forwarded to the state of Michigan’s School Aid Fund, for redistribution among school districts statewide. That redistribution is based on a per-pupil formula as determined on a specified “count day.” And the state is supposed to “reimburse” the School Aid Fund for the taxes captured by some SmartZones in the state.

Questions raised in the last few months have centered around whether the School Aid Fund is “reimbursed” by the state’s general fund for the taxes that are captured to fund the Ann Arbor SmartZone LDFA – because the wording of the state statute is based on the term “reimburse.”

It turns out that the school taxes captured by the Ann Arbor SmartZone are not required to be “reimbursed” to the state School Aid Fund – which diminishes the amount of funding for public schools statewide. That’s a conclusion based on a reading of the LDFA statute and confirmed to The Chronicle by communications staff in the Dept. of Treasury and the MEDC. However, it’s not clear that “reimbursement” is even a useful way of framing the question – notwithstanding the wording of the state statute. That’s partly because tax capture from those LDFAs to which the state statute does apply are not “reimbursed” in the sense that the word implies – with a specific calculation done and a transfer of money (or an adjustment to the legislature’s appropriation) made based on that calculation. From an Aug. 7, 2014 staff memo: “… the reimbursement language really only served as language of intent.”

Based on subsequent inquires made by city of Ann Arbor financial staff with state officials, it appears that the setting of the statewide per-pupil allowance each year proceeds along a separate track from replenishing the School Aid Fund – which receives significant revenue from sources other than local school operating millages. It appears it’s not possible to establish a 1-to-1 relationship between local school operating taxes that are captured by LDFAs and money that flows into the School Aid Fund from various other sources that might be analyzed as “compensating” for the capture.

In any case, city staff have concluded that LDFA tax capture has not had a negative impact on Ann Arbor’s local school funding.

Appointments to Boards and Commissions

Appointments to the city of Ann Arbor’s boards and commissions are typically handled in a two-step process: (1) the mayor announces the nominations at a council meeting; and (2) the council votes on the confirmation at the next meeting of the council. The procedure is grounded in the city charter.

At the council’s Aug. 21 meeting, Anna Ercoli-Schnitzer was nominated to fill a vacancy on the commission on disability issues. Tamara Burns and Dick Mitchell were nominated to be reappointed to the design review board. Sofia Franciscus was nominated to fill the vacancy on the planning commission due to Paras Parekh’s resignation. And John Splitt was nominated for reappointment to the Downtown Development Authority board.

3:05 p.m. The staff responses to councilmembers’ questions about agenda items are now available. [Sept. 2, 2014 staff responses to questions]

4:29 p.m. Tonight only five people appear to be signed up to talk in the 10 slots for public commentary that are available at the start of the meeting. Kai Petainen is signed up to talk about the LDFA extension. Alan Haber is signed up to talk about the park advisory commission’s recommendation for redevelopment of Liberty Plaza, which is an attachment to the clerk’s report. And three people are signed up to talk about the direction to the city administrator to negotiate operating agreements with transportation network companies like Uber and Lyft: John Heed, a representative of SelectRide; and Michael Benson and LuAnne Bullington, who serve on the city’s taxicab board. (Benson is chair of that group.)

6:52 p.m. Jane Lumm (Ward 2), Jack Eaton (Ward 4), Sally Petersen (Ward 2) and mayor John Hieftje have arrived.

7:04 p.m. We’re still missing Christopher Taylor (Ward 3) and Margie Teall (Ward 4).

7:07 p.m. Call to order, moment of silence, pledge of allegiance.

7:07 p.m. Roll call of council. Margie Teall (Ward 4) and Christopher Taylor (Ward 3) are absent.

7:08 p.m. Approval of agenda.

7:09 p.m. Chuch Warpehoski (Ward 5) is adding an agenda item DS-4, which will take up the Ann Arbor SPARK contract off the table from a previous meeting. A separate vote will be taken at the time the council reaches that agenda point.

7:09 p.m. Outcome: The council has approved the evening’s agenda as amended.

7:10 p.m. Communications from the city administrator. City administrator Steve Powers reminds the council of the Sept. 8 work session with the DDA on parking issues, starting at 7 p.m.

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

7:13 p.m. Kai Petainen is speaking about the LDFA extension. He is focusing on the jobs claims that have been made by Ann Arbor SPARK. He says that SPARK and LDFA are not telling a consistent story. He asks if it’s worth spending $58 million on 700 jobs. He asks if many of the jobs that have been created would have been created even without the existence of SPARK and the LDFA. [.pdf of Petainen's remarks]

7:14 p.m. Alan Haber is talking about the World Day of Peace. He’s talking about the importance of gathering the community. He’s supporting a proclamation later on the agenda that would recognize World Peace Day. [Teall and Taylor have now arrived at the meeting.]

7:17 p.m. John Heed is speaking against negotiating an operating agreement with Uber and Lyft, arguing that they operate in violation of state law. He gives insurance requirements as an example of the competitive playing field not being level. The operating agreements would simply shift responsibility, he says. Having a new business model does not make anybody above the law, he says.

7:21 p.m. Michael Benson is chair of the taxicab board and a resident of Ward 2. He was in Beijing during the last council meeting and couldn’t attend. He characterizes the transportation industry as in a state of flux due to a variety of factors. He’s speaking against establishing operating agreements with TNCs, arguing that they fall under the state’s limo statute. He says that the proposal that the taxicab board had made would be broad enough to cover the market, however it evolved. He points out that the city had issued a cease-and-desist order, which means that the city’s view is that Uber and Lyft are operating in violation of the law. He asks that the council reconsider the ordinance they rejected, and allow a public hearing on the question by allowing it to go to a second reading. [.pdf of Benson's remarks]

7:24 p.m. LuAnne Bullington says she’s not speaking as a member of the taxicab board, but as a citizen who knows something about transportation. A limo is licensed by the state, and a taxi is licensed by a local municipality. It’s not possible to regulate taxicabs outside of the city, she says. She says that Uber is really a $17 billion taxicab company that the state and the city of Ann Arbor can’t regulate. She notes that a court in Frankfurt, Germany had issued an order against Uber that Uber is simply ignoring.

7:24 p.m. Communications from the council. This is the first of two slots on the agenda for council communications. It’s a time when councilmembers can report out from boards, commissions and task forces on which they serve. They can also alert their colleagues to proposals they might be bringing forward in the near future.

7:24 p.m. Jack Eaton says that a meeting on the Packard Square development has been canceled and will be scheduled for a later time.

7:28 p.m. Mike Anglin is talking about the Sept. 21 World Peace Day proclamation. He says that it was added late, but he wanted it to appear on this council’s agenda. He also points to the F-3 communication from the park advisory commission, which is attached to the agenda. Anglin says that voters had overwhelmingly said they wanted additional parks in the downtown. Because the council had voted to designate part of the top of the Library Lane parking structure as a public park/plaza, it was important to start holding events there. The World Peace Day event is something that there can’t be any equivocation about, he says – as everyone agrees there should be peace in the world. It should be made possible without establishing barriers. He’s referring to the requirement that an insurance policy be in place. [The DDA's policy on use of public parking facilities for events includes an insurance requirement.]

7:30 p.m. Sumi Kailasapathy says that as she was walking in, Ray Detter had told her that there was a light agenda. She said that although the agenda is light, she had a heavy heart because it is the last day of The Ann Arbor Chronicle. She’s now talking about the beheading of journalists in the Middle East and relates her own experience growing up in a civil war in Sri Lanka. She’s talking about the importance of documenting history. She’s sending her salutations and thanks to The Chronicle.

7:32 p.m. Sabra Briere is talking about the design charrette on the Platt Road site. It was hosted by Washtenaw County, which owns the land. The county board of commissioners was interested in how the public wanted to see the site developed if it included housing. The results of the charrette are now up on the website, Briere says. If the county determines that affordable housing is appropriate, she hopes the city will be able to cooperate in that effort. She encourages people to look into that and to communicate to the county.

7:35 p.m. Jane Lumm is announcing the year-end dog swim at the Buhr Park pool on Sept. 3-4. Educational efforts will be made at the event about the dog licensing requirements. She’s thanking Kailasapathy for her comments about The Chronicle and wishes us a happy 25th wedding anniversary. She’s describing The Chronicle as public servants who have helped improve the community with an emphasis on open and transparent governance. She’s extending her sincere thanks and says The Chronicle will be missed.

7:36 p.m. Hieftje says there are some spectacular athletes at the dog swim. He tells late-arriving councilmembers that the SPARK contract has been added to the agenda to be taken up off the table.

7:37 p.m. MC-1 Confirmations. At the council’s Aug. 21 meeting, Anna Ercoli-Schnitzer was nominated to fill a vacancy on the commission on disability issues. Tamara Burns and Dick Mitchell were nominated to be reappointed to the design review board. Sofia Franciscus was nominated to fill the vacancy on the planning commission due to Paras Parekh’s resignation. And John Splitt was nominated for reappointment to the Downtown Development Authority board.

7:37 p.m. Eaton is asking that John Splitt’s nomination to be separated out from the others.

7:38 p.m. The council has confirmed all the nominations except for that of Splitt, which is being considered separately.

7:39 p.m. Stephen Kunselman says he won’t support Splitt to a third term. Eaton also says he won’t support it, and he wants to explain why. He says that The Chronicle has consistently reported on various problems with the Open Meetings Act and a compliant development plan, and he thinks that those problems stem from confirming the same people over and over again.

7:40 p.m. Kailasapathy also says she won’t support Splitt’s confirmation. She wants people who will take TIF (tax increment finance) spending seriously, and not treat it like “Halloween candy.” New people will look at things with fresh eyes, she says. She says it’s not personal.

7:42 p.m. Petersen says she’ll support Splitt and says she knows him to be an independent thinker. When she traveled with the DDA to New York City, he’d made an extra effort to get to know her. She says that Splitt represents the State Street area of the downtown.

7:44 p.m. DDA board chair John Mouat is asked to the podium by Margie Teall (Ward 4). She asks him if the DDA board members are “slackers.” Mouat is saying there is a steep learning curve on the DDA. Teall asks if there is any review of the OMA on staff. He allows that it’s been brought up as a point of discussion. It’s probably something that the DDA should look at, he says.

7:48 p.m. Kunselman is asking Mouat about the raises that Susan Pollay received as executive director. Mouat says he doesn’t feel comfortable answering that question. Kunselman says he wasn’t planning to go into detail. He’s reviewing The Chronicle’s reporting about those raises. Kunselman is now talking about the requirements of the DDA statute. He says he’s looking for new DDA members who will each year work on the TIF plan. Mouat points to the joint working session on Sept. 8, which would be a better occasion for this discussion, he says.

7:49 p.m. Anglin is comparing the compensation of DDA staff to city staff. Anglin says he’s voting against Splitt’s reappointment because he wants to see the DDA step up and provide police in the downtown.

7:51 p.m. Kailasapathy responds to Mouat’s remarks about the learning curve. The DDA’s institutional memory is not as good as it should be, she says. Kailasapathy is talking about Kunselman and The Chronicle’s retrieval of some DDA records from the Bentley Library. She wondered why long-term members of the DDA had not remembered these things.

7:53 p.m. Lumm thanks those who have said they will vote against Splitt’s appointment. She says that city administrator Steve Powers had demonstrated a courageous vote when he voted against Susan Pollay’s raise this year. However, Splitt was entitled to another term, Lumm says. Splitt has worked hard, she adds, so she will support his appointment.

7:55 p.m. Hieftje says there are membership criteria for members of the DDA. Splitt is a downtown business owner and lives in the DDA district, he says. He gives a breakdown of the mix of the DDA board in terms of thirds, based on their length of service.

7:55 p.m. The council has confirmed the nominations of John Splitt to a third term on the DDA board on a 7-4 vote. Dissenting were Kailasapathy, Kunselman, Eaton and Anglin

7:55 p.m. MC-2 Nominations. Tonight Sam Callan is being nominated to the building board of appeals. The vote on his confirmation will come at the council’s next meeting.

7:55 p.m. Public Hearings. All the public hearings are grouped together during this section of the meeting. Action on the related items comes later in the meeting. Four public hearings are scheduled tonight: one on the Ann Arbor Housing Commission’s North Maple Estates site plan; two on the Gift of Life project (one for the rezoning and the other on the site plan); and one on the changes to the taxicab rate ordinance.

7:55 p.m. PH-1 AAHC North Maple Road site plan

7:57 p.m. Thomas Partridge is speaking in support of this item, with the proviso that it should have adequate handicapped parking.

7:59 p.m. Ed Vielmetti is speaking in support of the site plan. He’s objecting to the copyright notices that are included on the various maps. Because they are planning documents that people might want to review, it’s important that the city include copyright notices that are appropriate for archival distribution.

8:02 p.m. Scott Betzoldt with Midwestern Consulting, Jennifer Hall of the AAHC and architect John Mouat are at the podium. They represent the project. Betzoldt is going first. He says that all the underground utilities will be replaced, and stormwater detention will be provided. Mouat says that his firm has worked with AAHC for over 20 years. He stresses three points. The buildings have been designed to be simple to maximize floor area. The mix of bedrooms is 1-bedroom, 2-bedroom, 3-bedroom and 4-bedroom units. He also notes that the units will be barrier-free. The building will also be certified as environmental friendly, he says, including 4×6 stud construction, which will allow for additional insulation.

8:04 p.m. Hall says that this is the first site to which the AAHC has been able to add units in over 20 years. She’s talking about the relocation plan for the current tenants. They’ll be able to move back to the site when construction is complete.

8:04 p.m. That’s it for PH-1.

8:04 p.m. PH-2 Gift of Life rezoning

8:06 p.m. Thomas Partridge expresses concern that there should be a requirement that the property be made accessible to public transportation as well as paratransit. All similar rezoning should have such a requirement.

8:07 p.m. That’s it for PH-2.

8:07 p.m. PH-3 Gift of Life site plan

8:08 p.m. Thomas Partridge reiterates the importance of making site plan approval contingent on adequate access to handicapped parking and public transportation.

8:09 p.m. That’s it for PH-3.

8:09 p.m. PH-4 Taxicab ordinance

8:12 p.m. Mark LaSarge of SelectRide is addressing the council. He’s arguing against pricing restrictions generally. He’s ticking through the costs of the taxicab industry. The city doesn’t determine prices for milk, he notes, and should not determine prices for taxicabs. He’s also arguing against the direction to the city administrator to negotiate operating agreements that the council will consider tonight.

8:16 p.m. John Heed says this should be passed, even though it will not solve all the problems. It will help the taxicab industry absorb “price shocks,” he says.

8:16 p.m. A woman introduces herself as a taxicab driver. She disagrees with the taxicab owners on the fare issue. But she agrees with them on the question of operating agreements with Uber and Lyft. Hieftje encourages her to relate her remarks to the ordinance on the agenda. She invites councilmembers to do a ride-along with her as she drives her taxi.

8:18 p.m. LuAnne Bullington is reviewing how the price structure would work. She asks councilmembers to support this ordinance change, because it gives taxicab companies flexibility. The taxicabs would simply have to post the rates, she concludes.

8:20 p.m. Rick Clark, of Amazing Blue Taxi, tells the council that he’d received a sad phone call from a customer, who would no longer be using his cab service – because she’s moving to California. She thanked him for the service. “An app is not going to care about people,” he concludes.

8:22 p.m. Thomas Partridge wants the maximum rates extended to cab-like services like Uber and Lyft. He calls for keeping Ann Arbor an affordable city.

8:23 p.m. Michael White, general manager for Uber in Michigan, speaks in support of the “deregulation” of taxicab rates. He says that the council’s focus should be on providing choice and safety. Uber provides choice and safety, he says. He’s available, if councilmembers have questions, he says.

8:26 p.m. Michael Benson, chair of the taxicab board, says that this ordinance addresses two problems – variable insurance and gas rates. The cost of doing business has to be weighed against the cost to the public. The ordinance requires posting the rates and allows a taxicab company to change its rates once during the year. This does not mean the taxicab board is in favor of complete deregulation, he says. The taxicab industry is different from others in that it operates solely in the public right of way. He encourages the council to approve the ordinance.

8:27 p.m. That’s it for PH-4.

8:27 p.m. Council minutes.

8:27 p.m. Outcome: The council has approved the minutes of the previous meeting.

8:27 p.m. Consent agenda. This is a group of items that are deemed to be routine and are voted on “all in one go.” Contracts for less than $100,000 can be placed on the consent agenda. This meeting’s consent agenda includes:

• CA-1 Street Closing: Oktoberfest Oct. 3-4, 2014 (W. Washington) requested by Arbor Brewing Company.
• CA-2 Street Closing: Oktoberfest Oct. 3-4, 2014, (W. Washington) requested by Grizzly Peak Brewing Company and the Blue Tractor.
• CA-3 Street Closing: Reception for UM President Sept. 5, 2014 (E. Washington btw. Thayer and Fletcher).
• CA-4 Contract Amendment with Hinshon Environmental ($10,000).
• CA-5 Approve a purchase order with Staples FY 2015 ($92,499).
• CA-6 PILOT for Avalon Housing 1010-1030 Arbordale Street.
• CA-7 Amend contract with Green Vision Lawn and Landscaping ($2,556).
• CA-8 Authorize contract with OPUS International Consultants, Inc. ($58,724) for Nixon/Green/Dhu Varren Intersection Improvement Study.

8:28 p.m. Councilmembers can pull items off the consent agenda for separate consideration. Tonight Briere has asked CA-6 and CA-8 to be pulled out for separate consideration. Taylor wants CA-2 pulled out.

8:28 p.m. Outcome: The council has approved the consent agenda except for the three items to be considered separately

8:28 p.m. CA-2 Street Closing: Oktoberfest Oct. 3-4, 2014 (W. Washington) requested by Grizzly Peak Brewing Company and the Blue Tractor.

8:29 p.m. This was considered separately to allow for recusal of Taylor because his firm represents the requestor of the street closing.

8:29 p.m. Outcome: The council has now approved CA-2 on the consent agenda.

8:30 p.m. CA-6 PILOT for Avalon Housing 1010-1030 Arbordale Street. Briere makes some remarks in favor of this item.

8:31 p.m. Outcome: The council has now approved CA-6 on the consent agenda.

8:31 p.m. CA-8 Authorize contract with OPUS International Consultants Inc. ($58,724) for Nixon/Green/Dhu Varren Intersection Improvement Study. Briere says that Ward 1 and Ward 2 councilmembers are delighted to see this item. She reminds city administrator Steve Powers that she’s grateful for the public participation component of the contract. Kailasapathy says that residents will definitely have a lot to say.

8:33 p.m. Lumm says, “Hear, hear,” to the comments that Briere and Kailasapathy have made. The “intersection” is problematic, she says.

8:34 p.m. Outcome: The council has now approved CA-8 on the consent agenda.

8:34 p.m. B-1 Gift of Life Rezoning. This is final approval of the rezoning of property necessary for an expansion of the Gift of Life Michigan facility on Research Park Drive. The rezoning would change 6.55 acres from O (office district) and RE (research district) to ORL (office/research/limited industrial district). The site plan, which also appears on the Sept. 2 agenda, calls for building a three-story, 40,786-square-foot addition to connect two existing buildings at 3161 and 3169 Research Park Drive, which are owned and occupied by the nonprofit. [For additional background, see Gift of Life Expansion above.]

8:35 p.m. Outcome: The council has voted without discussion to give final approval to the Gift of Life rezoning.

8:35 p.m. B-2 Taxicab Rate Ordinance. The council gave initial approval at its Aug. 18 meeting to a change in the part of the taxicab ordinance that regulates rates. This is the final consideration of that change. The change would establish certain parameters to mitigate possible negative consequences to the setting of a very high maximum allowable taxicab rate, under which taxicab companies might eventually compete. Those parameters include a requirement that a taxicab company commit to a single rate annually and that the rate be advertised in a vehicle with signage in letters one-inch tall. [For additional background, see Taxicab Meter Rates above.]

8:37 p.m. Kunselman says that staff has asked him to add an amendment – to set the date of enactment to be Oct. 14. He says he won’t bore everyone by repeating the sentiments expressed during the public hearing. He reviews how the ordinance would work, saying that it allows for the setting of a very high maximum. It would allow taxicab companies to start to compete with companies like Uber and Lyft that are competing unfairly. Lumm indicates her support for the change to the ordinance.

8:41 p.m. Hieftje says that he served on the taxicab board from November 1999 to November 2000. At that time, nobody heard much from the taxicab board, he notes. Kunselman says that he very rarely uses livery services. He said that the camaraderie among the livery service community should be taken note of. They’ve been around for a long time, he says. He’s known a number of taxicab drivers and talks about the stories they tell. He jokes that someone else on the council might want to serve as the council’s representative starting in November, when the council reassigns its board and commission appointments.

8:41 p.m. Anglin echoes Kunselman’s appreciation of the taxicab industry.

8:42 p.m. Outcome: The council has voted to give final approval to the revision to the taxicab ordinance, regarding the setting of rates.

8:42 p.m. Recess. We’re now in recess.

8:53 p.m. We’re back.

8:53 p.m. C-1 AAHC Platt Road rezoning. This is the initial rezoning approval for the AAHC’s Lower Platt Road project, which will entail demolishing four 5-bedroom units – because of their current placement in the floodplain – and constructing 32 townhomes and a community center. The zoning change would be from R1C (single-family dwelling district) and R2A (two-family dwelling district) to R4B (multi-family dwelling district). [For additional background, see AAHC: 3451 Platt Road Rezoning above.]

8:54 p.m. Lumm asks if planning manager Wendy Rampson is available. She is. Lumm asks about the delay in the site plan at the planning commission. Rampson explains to Lumm that a reconfiguration is being sought for some of the buildings.

8:54 p.m. Outcome: The council has voted to give initial approval to the rezoning of 3451 Platt Road.

8:54 p.m. DC-1 SmartZone satellite agreement. This resolution would move ahead with a 15-year extension of the local development finance authority (LDFA). The LDFA  – branded as one of about a dozen LDFA SmartZones statewide –  is funded through capture of public school operating millages within the geographic areas of the Ann Arbor and Ypsilanti downtown development authority districts. The extension requires an agreement with a satellite LDFA, which the Ann Arbor-Ypsilanti SmartZone is making with Adrian/Tecumseh. [For additional background, see Extension of LDFA above.]

8:58 p.m. Petersen is reviewing the purpose of the resolution. [She's the council's representative to the LDFA board.] Petersen is reading aloud a statement in support of economic development generally. She’s addressing the possible objection that some councilmembers might have, given the mechanism for funding the LDFA – which is through tax increment financing. She’s inviting Eric Jacobsen, board treasurer of the LDFA, to the podium.

9:00 p.m. Jacobsen notes that the recruitment of a satellite LDFA is a state mandate as a condition of the extension. He’s reviewing the reasons for choosing Adrian/Tecumseh over Brighton/Howell. He says that no Ann Arbor tax dollars would be going to Adrian/Tecumseh.

9:03 p.m. Jacobsen notes that this is just the next step in a multi-step process. One of the next steps is to define a new TIF agreement. The LDFA is in the business of economic growth – helping start-up companies, not trying to get other companies to relocate here. It’s an ecosystem for entrepreneurs, he says. Ann Arbor can compete with Palo Alto and Austin, he says. He stresses that Ann Arbor SPARK is the LDFA’s contractor – and that SPARK executes on the directive that LDFA gives.

9:04 p.m. Jacobsen reports that the Ypsilanti city council has approved the agreement earlier tonight. Five other cities are applying for two possible extensions statewide, he says.

9:08 p.m. Kailasapathy notes that the revenue estimates for the 15-year period total about $58 million. She calls that a estimate conservative. She says her understanding is that something like $3-6 million will be spent in Ypsilanti, even though there is no TIF capture in Ypsilanti. CFO Tom Crawford says that there have been informal discussions with the MEDC, and there’s an interest by MEDC in seeing the money spent in Ypsilanti as well. Ann Arbor still comes out ahead, Crawford says. Kailasapathy says $58 million is a lot of money.

9:11 p.m. Kailasapathy is confronting the contention that the ecosystem will “wither away” without the extension. She notes the increase from $200,000 in the early years of the LDFA to $2 million now. She points out that the University of Michigan has a new entrepreneurial effort. Jacobsen says that he expects all the partners will work together.

9:12 p.m. Kailasapathy is now addressing the focus on job creation. How many jobs will be created in the next 15 years? she asks.

9:14 p.m. Crawford points to the draft amended TIF plan. After getting approval from the MEDC, the city would then need to enter into negotiations on the TIF plan with the MEDC. After it get passed, the city would be jumping into that feet first, he says. Kailasapathy calculates that it would be $80,000 per job created.

9:15 p.m. Jacobsen is saying for every job created in the tech field, another five jobs are created. So if it’s $80,000 per job, the return to the community is still very impressive, he says.

9:16 p.m. Lumm says she understands that the final TIF and development plans aren’t required until next year, but she’s happy the council has been provided with draft versions. Jacobsen reiterates that goals on job creation would come after the TIF and development plans are finalized.

9:19 p.m. Briere asks Jacobsen if he were to design the agreement, whether job creation would be a “decent” metric. Yes, he says. She asks him to explain how it’s a good metric. Stephen Rapundalo, an LDFA board member and former Ward 2 city councilmember, takes the podium. Growing businesses is the goal, Rapundalo says, and the jobs come as a result of that.

9:21 p.m. Briere says that it feels good to say that we’ll project a certain number of jobs created and then go back and check to see if that’s what happened. But that “recipe” makes her nervous, she says. How many dollars we spend to get how many jobs is not a good way to think about it, she adds. So she wonders what other metrics can be offered? Rapundalo says that the number of companies that are starting is one measure, as well as the amount of funding that they are receiving. Briere says she wishes the discussion was less focused on the specific number of jobs.

9:28 p.m. Eaton asks if we acknowledge that if the $58 million is captured, that the state does not reimburse the state’s School Aid Fund. Crawford explains that the foundation grant is determined by two components: the local millage funding and the state contribution. Local schools are not harmed through the tax capture, he says. Eaton asks if the state treasurer is making up the fact that the School Aid Fund is not reimbursed. Crawford explains the complexity of the School Aid Fund mechanism. Eaton is reiterating his concern about the impact on school funding. He also talks about the “fuzzy” job creation number. He wonders if the jobs that are created are really attributable to the activities of the LDFA. Crawford compares $4 million to $10 billion that the state contributes, so he says that tax capture has a negligible impact on school funding.

9:30 p.m. Kunselman wants to know what five cities are in the running for the two slots for the 15-year extension. Automation Alley, Grand Rapids and Kalamazoo are named. Kunselman wants to know how unemployment rates in the cities compare. Ann Arbor has the lowest unemployment in the state, Kunselman is told. Now Kunselman wants to know what the options are for a five-year extension, if Ann Arbor is not selected for the 15-year extension.

9:36 p.m. Kailasapathy wants to see some of the taxes eliminated from capture – the school operating millage, because that’s the amount that is distributed from the state treasurer directly back to the school districts. Lumm expresses skepticism that Kailasapathy has characterized that accurately. Crawford confirms that’s right.

9:40 p.m. Briere ventures that the foundation grant level is set, and after that the state looks for where the money comes from to fund that grant level. Crawford is explaining that there are numerous factors. He is arguing that there is some return on the investment of the captured taxes, which generates greater revenue to the state and the local communities.

9:42 p.m. Anglin is now asking about the possibility of imposing hold-harmless requirements.

9:45 p.m. Kunselman says he appreciates all the commentary. He says that the LDFA is showing a lot of care and consideration in its willingness to work with the council – something he can’t say about every authority the council deals with. He still has a problem with the fact that the money is taken from schools. When he hears about the other communities that are in the running, because they have real need for job creation. Ann Arbor already enjoys the benefits of the economic engine that the University of Michigan provides. He wants to see Detroit and Kalamazoo get this benefit. So he won’t support the 15-year extension. He calls this greedy on Ann Arbor’s part. “We are in this as a state,” he says. “If Detroit doesn’t get better, we don’t get better.”

9:46 p.m. Teall agrees with Kunselman that everyone needs this. But Ypsilanti and Adrian/Tecumseh need this too, she says. The stronger this local region is, the stronger the state can become, she says.

9:48 p.m. Petersen is asking for clarification about who is still in the running. Houghton/Marquette already have the extension, she ventures. That’s right, confirms Crawford.

9:50 p.m. Lumm is explaining her reasons for supporting this. She hopes that LDFA and SPARK will listen to the concerns about the need for greater transparency. She remarks on the funding of fiber networks in the next 15 years as a positive. She says she does not believe that the capture of the school taxes has a negative impact on school funding.

9:53 p.m. Anglin says the council has not talked about the five-year option. Why is the 15-year plan preferable? he asks. He points to the rationale for excluding the Washtenaw Intermediate School District’s tax from capture and wonders why that exemption doesn’t apply to the AAPS operating millage. Good schools lead to good jobs, he says. He’s saying that local officials need to tell the state that they need to do better in their overall approach to funding state education.

9:54 p.m. Anglin says he’d like to see a smaller step taken – a five-year extension.

9:59 p.m. Crawford clarifies that the WISD millage is not captured. Briere ventures that the rationale for not capturing WISD’s millage is that WISD doesn’t receive per-pupil reimbursements from the state. Briere also says that the reason the council is considering the 15-year extension first is that Ann Arbor is in competition with other cities – and if Ann Arbor does not win, then the five-year extension is the fall-back position.

9:59 p.m. Anglin says he will vote against this, because he wants the state legislature to do a better job funding schools.

10:00 p.m. Eaton is noting that the 15-year extension goes out 18 years from now, because there’s three years left on the current authorization. To date, the council has only seen “fuzzy” justification for the results, he says. Eaton would support a five-year extension but says that planning for 15 years in the future at this price tag is pretty speculative.

10:02 p.m. Petersen clarifies that the council is not voting on the 15-year extension – as that’s the purview of MEDC and the state treasurer – but rather on the inclusion of Adrian/Tecumseh in the application.

10:02 p.m. Lumm returns to the school funding question.

10:04 p.m. Kunselman is asking what the TIF capture would be in other cities that are competing for the 15-year extension.

10:06 p.m. Anglin is reading aloud the parts of the resolution that address the 15-year extension and asks: “Are we reading the same document?” Hieftje thanks Crawford for all the work he’s done and also the LDFA board. The LDFA has responded to questions from the council, he says. He’s convinced that local schools are not hurt by the LDFA – as the state will fund public schools the way it wants to.

10:08 p.m. Hieftje says that he disputes the idea that job creation would happen without the efforts of the LDFA. Ann Arbor might be the only city in the state of Michigan that can compete with Palo Alto, Hieftje says. So it’s important that Ann Arbor continue to do that. He says that it would be good for some of the LDFA money to be spent in Ypsilanti. This will “lift all boats,” he says.

10:10 p.m. Warpehoski is responding to the question Kunselman asked about the TIF capture of other cities, with data he Googled.

10:13 p.m. Warpehoski notes Pfizer’s departure and says that Ann Arbor’s economy is not bulletproof. He points to SPARK’s bootcamp and a resident who went through it, who has now started a business: 1000 Tools. Warpehoski is glad that kind of innovation is happening, he says. Even if after five years there are no jobs associated with that company, he thinks the impact is positive.

10:14 p.m. Taylor says it’s all pretty simple. There’s an opportunity to obtain a few million dollars for the benefit of Ann Arbor’s economy.

10:15 p.m. Taylor notes that 2,400 were lost when Pfizer left. That was not the only negative impact. Conversely, he says, adding jobs has additional positive impact beyond just those job numbers.

10:18 p.m. Briere says she likes to look at the resolution in front of her but she’d had to look at a lot more than that with this resolution. Briere says that the state does not attach as much importance to infrastructure and schools as it once did. But now it’s willing to invest in economic development, which might indirectly help revenues to fund infrastructure and schools.

10:19 p.m. Briere says there are three things that are important: (1) money will be spent in Ypsilanti; (2) it allows investment in Adrian/Tecumseh; and (3) spending on fiber networks.

10:20 p.m. Anti-Israel activists have arrived with signs. They attended the Ypsilanti city council meeting earlier.

10:20 p.m. Briere will support the resolution.

10:22 p.m. Outcome: The council has voted 7-4 to approve the agreements with Adrian/Tecumseh regarding the extension of the LDFA, over dissent from Kailasapathy, Kunselman, Eaton and Anglin.

10:22 p.m. DC-2 Transportation Network Companies (Uber/Lyft). Direct the city administrator to negotiate operating agreements. This resolution would direct the city administrator to negotiate operating agreements with transportation network companies like Uber and Lyft. This is being considered as an alternative to the ordinance considered, but rejected at the council’s Aug. 18, 2014 meeting, which would have required all drivers for hire to be registered with the city, to have commercial plates on their vehicles, and to maintain insurance commensurate with commercial plates. And the absence of commercial plates on a vehicle that is observed being used for picking up or dropping off passengers would have provided a reason for a traffic stop by Ann Arbor police.

10:24 p.m. Briere says that the resolution was the result of electronic collaboration among herself, Taylor and Petersen. The language had been run past city staff to make sure the principles in the resolution were principles from which the staff could negotiate. Public safety was one of the concerns she’d tried to address. This is an effort to regulate companies like Uber and Lyft, she says.

10:27 p.m. Kunselman wants to know if the insurance referred to is primary or secondary. Briere invites Kunselman to make an amendment to clarify. Kunselman declines, saying he plans to vote against this resolution.

10:30 p.m. Kunselman asks assistant city attorney Abigail Elias if the cease-and-desist order is still in effect. She states that she is not familiar with the order. Kunselman ventures that the direction to the city administrator undercuts the city attorney’s authority.

10:30 p.m. Kunselman reiterates that he won’t support this resolution.

10:32 p.m. Warpehoski asks what the goal is of having a company provide customer satisfaction data. Briere indicates that it’s kind of a proxy for safety data.

10:35 p.m. Warpehoski says his concern with this provision is twofold. Are we holding TNCs to an appropriate standard for public safety? Does that compromise proprietary information? he wonders. He asks that Powers interpret this flexibly so that private information is not compromised.

10:36 p.m. Petersen says that this is data that TNCs already collect. There should be a plan to use it, if the city is going to ask for it, she says. The operating agreement should include a plan to use the data once the city has it.

10:40 p.m. Petersen ventures that once an operating agreement is in place, the cease-and-desist orders would be rescinded. Hieftje appreciates the work that Briere, Taylor and Petersen have put into it and indicates he’ll support it. Warpehoski said that if the city hears complaints about racial profiling or access of helper dogs, that should be referred to relevant boards and commissions. He also says that a blanket ban on drivers with felony convictions is an overly broad requirement to place on TNCs. Someone who is convicted of embezzlement should not be precluded as a driver. So he wants to amend the principles to indicate that only relevant felony convictions would be considered.

10:40 p.m. Lumm wants to know what other cities are doing. Briere says it varies from community to community.

10:45 p.m. Lumm says she doesn’t have enough information to evaluate Warpehoski’s amendment. She wants the city attorney’s office to address these questions. Taylor says this issue can be evaluated when the council is presented with an actual operating agreement. Teall wants to know the difference between UberX and UberBlack. Kunselman is explaining the difference. UberX is the service where drivers use their personal vehicles, he says. Uber’s Michael White has again been invited to the podium. Limo companies offer rides through UberBlack to help fill their downtime, he explains. He is now explaining how UberX works.

10:46 p.m. White says that the insurance provided by Uber for UberX is for primary, commercial insurance.

10:49 p.m. Kunselman questions whether the cease-and-desist order can be rescinded unless the operating agreement results in compliance by UberX with the state limo act. He is worried about councilmembers’ liability for direction to rescind the cease-and-desist order. He says that he’ll vote against it.

10:50 p.m. The rest of the world is moving forward with regulation, Kunselman says. Those councilmembers who are going to “dance around the law, have at it, please!”

10:52 p.m. Lumm wants to know if there will be some kind of limit on the life of the operating agreement. Briere ventures that it will be limited in time.

10:54 p.m. Lumm asks for thoughts on the term of the agreement. Taylor says that he thinks something like two years, with a provision that material changes in state law could result in earlier termination.

10:55 p.m. Lumm asks for an amendment clarifying that inspection would be done by a state licensed mechanic.

10:57 p.m. Eaton is taking Kunselman’s question to heart about the potential conflict between the city attorney’s cease-and-desist order and this resolution. Eaton says that he thinks the city attorney should review this question. Assistant city attorney Abigail Elias notes that all contracts entered into by the city are reviewed by the city attorney’s office.

10:59 p.m. Elias explains to Kunselman her view that a request for a public opinion must be made by the council. Petersen wants to know what will happen to the cease-and-desist order. Hieftje indicates that will be decided in the future. Lumm quips that the cease-and-desist order is not causing Uber and Lyft to cease and desist.

11:01 p.m. Lumm is reading aloud her prepared statement in support of this direction to the city administrator to negotiate an operating agreement. She calls the principles robust and says they provide a good framework.

11:03 p.m. Warpehoski says that he’s forwarded the text of the city’s taxicab ordinance so that Lumm can compare the current resolution on felony convictions to requirements on taxicab drivers.

11:04 p.m. Outcome: The council has voted 8-3 to direct the city administrator to negotiate operating agreements with transportation network companies like Uber and Lyft, over dissent from Kailasapathy, Kunselman and Anglin

11:04 p.m. DC-3 Accept and allocate Michigan Supreme Court State Court Administrative Office Michigan Veterans Treatment Court Program Grant ($173,911). The grant would fund the veterans treatment court.

11:04 p.m. Outcome: The council has voted to accept the Supreme Court grant.

11:04 p.m. DC-4 Community Events Funding Disbursements. The bulk of the community events disbursements were made at the council’s previous meeting. This one is an add-on for Community Works Plus ($1,000) to cover city costs for the African-American Festival Event scheduled on June 6, 2015.

11:04 p.m. Outcome: The council has voted to approve the community events fund disbursements.

11:04 p.m. DC-5 Resolution in Support of World Peace day on Sept. 21, 2014.

11:05 p.m. Anglin says that the only objection he’s heard so far is about insurance, but he ventures that no one would object to the overall intent of the resolution.

11:07 p.m. Warpehoski says this is an important commemoration worldwide. There will also be an event on the Diag, he says, and a demonstration on climate action. He says that he doesn’t see the resolution as a promise that the insurance question will be solved. He’s concerned about the appearance of a precedent.

11:08 p.m. Petersen asks city administrator Steve Powers about how a July 2012 event was handled. Powers doesn’t recall. For two more recent events, the city has required insurance: Dancing in the Streets, and the Barracuda street closure. That’s an existing city requirement, he says.

11:09 p.m. Hieftje appreciates Warpehoski raising the question.

11:09 p.m. Kunselman asks if Pizza in the Park carries insurance. Powers indicates that he’d have to check into that. Hieftje ventures that this issue will be figured out.

11:10 p.m. Outcome: The council has voted unanimously to approve the resolution calling for celebration of World Peace Day on Sept. 21, 2014.

11:10 p.m. DB-1 AAHC North Maple Estates. This vote is on the North Maple Estates site plan, which requires just one council vote. The rezoning required for the AAHC project – a 4.8-acre site at 701 N. Maple Road – has already been given final approval by the city council, at its Aug. 18, 2014 meeting. The zoning was changed from R1C (single-family dwelling district) to R4B (multi-family dwelling district). The site plan calls for demolishing 20 existing single-family homes – the public housing complex known as North Maple Estates – and constructing an eight-building, 42-unit apartment complex with a total of 138 bedrooms. [For additional background, see North Maple Estates above.]

11:10 p.m. Outcome: The council has voted to approve the site plan for North Maple Estates.

11:10 p.m. DB-2 Gift of Life site plan. This is the site plan that required the council to approve rezoning, which was completed earlier in the meeting. [For additional background, see Gift of Life Expansion above.]

11:10 p.m. Outcome: The council has voted to approve the Gift of Life site plan.

11:10 p.m. DB-3 AAHC Funding Request ($729,879) from the affordable housing trust fund. This resolution would transfer $729,879 from the affordable housing trust fund to the Ann Arbor Housing Commission. The fund transfer would support the “West Arbor” portion of the AAHC’s renovation plan. That would leave a $850,920 balance in the trust fund. The trust fund’s current balance stems largely from the council’s decision late last year – on Dec. 16, 2013 – to deposit into the trust fund the net proceeds of the sale of the former Y lot. [For additional background, see Affordable Housing Fund Transfer above.]

11:11 p.m. Outcome: The council has voted to approve the transfer from the affordable housing trust fund to the AAHC.

11:11 p.m. DS-1 Approve purchase order for Ultimate Software Group ($250,000).  This is the city’s payroll software. The amount will cover a transition period as the city moves to NuView, a different software system.

11:11 p.m. Outcome: The council has voted to approve the purchase order with Ultimate Software Group.

11:11 p.m. DS-2 Approve a contract with Northwest Consultants Inc. for the Stadium Boulevard Reconstruction Project ($930,822). This is for the design work for the Stadium Boulevard reconstruction project from Kipke Drive to Hutchins.

11:14 p.m. Teall says this is really exciting. Councilmembers are reviewing the history of this project. Kunselman asks if the city is asking for an easement from the Ann Arbor Golf & Outing Club. Michael Nearing is explaining that there is a robust public participation component of the project. It will be discussed with the public and Ann Arbor Golf & Outing.

11:16 p.m. Nearing tells Lumm the staff will keep the council apprised of the project.

11:16 p.m. Outcome: The council has voted to approve the contract with Northwest Consultants for the Stadium Boulevard design work.

11:16 p.m. Recess. We’re now in recess.

11:28 p.m. We’re back.

11:28 p.m. DS-3 Accept easement for sidewalk at 3947 Research Park Drive from American Honda Motor Co. Inc. This is a standard easement.

11:28 p.m. Outcome: The council has voted to accept the easement.

11:28 p.m. DS-4 Ann Arbor SPARK contract ($75,000). This is the item that the council had tabled back on June 16, 2014 meeting. The first vote will be on the question of taking the item up off the table.

11:29 p.m. Outcome: The council has voted to take the item up off the table.

11:29 p.m. The question of the SPARK contract is now in front of the council.

11:31 p.m. Warpehoski proposes an amendment to include a clause on the scope of the contract to include additional metrics and direction for collaboration with Washtenaw County’s Act 88 committee. [.pdf of Warphehoski's amendment, as forwarded to the city clerk, who then forwarded it to media]

11:33 p.m. Warpehoski is now arguing for the contract.

11:33 p.m. Outcome: The council has approved amendment.

11:36 p.m. Kunselman proposes an amendment to adjust the amount down to $65,000. Teall asks why he’s proposing that number. Kunselman recalls the amount was $50,000 back in 2007. And other general fund needs have arisen, he says – like the need for a warming shelter. But he says that he’ll support the contract, even if the amendment doesn’t succeed.

11:37 p.m. Hieftje says that he wants to see the $10,000 stay in SPARK’s contract because that will make the “pie” bigger. Kunselman cites the Headlee Amendment as a reason that increased property values will not create the money that will be needed.

11:38 p.m. Kailasapathy recalls her question from earlier in the year about the contributions from other municipalities – less than Ann Arbor – so she’d be happy to see it reduced to $50,000.

11:40 p.m. Paul Krutko, CEO of Ann Arbor SPARK, indicates that this information is now available as a FAQ. The next-closest municipality in terms of contribution to SPARK is Pittsfield Township.

11:41 p.m. Kunselman ventures that when the county levies Act 88 money, it’s collecting Ann Arbor taxes, too. Krutko confirms that.

11:43 p.m. Eaton indicates that the county’s Act 88 collection provides $200,000 to SPARK. He asks how much of that is due to Ann Arbor taxpayers. Krutko said he’d have to get back to him about that.

11:43 p.m. Outcome on Kunselman’s amendment: The council has rejected the amendment reducing the amount to $65,000. It received support only from Kailasapathy, Kunselman, Eaton, and Anglin.

11:44 p.m. Lumm says the city of Ann Arbor is getting good return on its investment from the $75,000.

11:46 p.m. Outcome: The council has approved the $75,000 SPARK contract over dissent from Kailasapathy, Eaton, and Anglin

11:46 p.m. Communications from council. Presentation to The Ann Arbor Chronicle.

11:47 p.m. Public comment. There’s no requirement to sign up in advance for this slot for public commentary.

11:49 p.m. Kai Petainen is now addressing the council on SPARK. He says it was sneaky to add the item to the agenda late. He ventures that the state is playing favorites with Ann Arbor’s LDFA. He criticizes the fact that the assistant city attorney Abigail Elias had said she was not familiar with the cease-and-desist order.

11:52 p.m. Ed Vielmetti is addressing the council on several issues, including the topic of copyright notices that the city puts on maps. He says that Legistar makes it difficult to search for things. He says that given the fragile state of the press in this town, it would behoove the council to move toward closed captioning for meetings. The new website for the city is beautiful, he tells the council, but he notes that many of the links are now broken.

11:53 p.m. LuAnne Bullington expresses skepticism that the city administrator will be able to negotiate an operating agreement with Uber and Lyft in the short timeframe specified in the resolution.

11:57 p.m. Changming Fan says that thanks is not enough and action means the most. He is president of TiniLite, which he says is a small company based in Ann Arbor. He says that DDA board member John Splitt had spent two hours meeting with him, so Fan appreciated his support. “He is a good man,” even though he is older and is bald, he quips.

11:59 p.m. Alan Haber says he came back to give his appreciation. He hopes a creative approach can be found to deal with the insurance question for the World Peace Day event. He’s talking about a culture of peace and non-violence for the children of the world.

12:04 a.m. Michael Benson is addressing the councilmembers, thanking them for passing the taxicab ordinance on rates. He questions whether complaints about TNCs should be forwarded to the taxicab board – not the human rights commission or the commission on disability issues. He says he doesn’t appreciate the fact that the council killed the other ordinance proposal at first reading. The taxicab board had held off holding a public hearing, because it was felt that the council would be a better venue for that – which would have taken place at the second reading of the council.

12:04 a.m. Adjournment. We are now adjourned. That is all from the hard benches.

This is the corner spot on the hard benches in the city council chambers where The Chronicle typically sat. It’s somebody else’s seat now!

Rendering of 121 Kingsley West project, looking south from Kingsley. The existing building is in the left foreground.

The project calls for rezoning the site from a planned unit development (PUD) to D2 (downtown interface). The development would include renovating the existing two-story, 2,539-square-foot building, plus constructing two additional buildings: (1) a 3.5-story addition to the existing building; and (2) a 4.5-story structure at the southeast corner of West Kingsley and North Ashley. In total, the development would include 22 units and 40,689 square feet. The estimated cost is $6.5 million.

Council action on the initial approval came at its Aug. 18, 2014 meeting. The site plan will not come before the council until the rezoning is considered for a second and final vote. The Ann Arbor planning commission’s recommendation of approval for the site plan and the rezoning came at its July 15, 2014 meeting.

Developers are Tom Fitzsimmons, Peter Allen and Mark Berg. The architect is Marc Rueter.

There would be 29 parking spaces below the buildings – though only two spaces are required, based on residential premiums that the project is seeking. The premiums give the project additional floor area, compare to what’s allowed by right. An elevator for each building will be accessible from the parking level. The parking level of the east building will include a bike room with 14 spaces.

According to a staff report, the project’s development agreement will address “easements for encroachments onto the City right of way by the existing building, onsite stormwater management, verification of LEED points, six required footing drain disconnects, future façade alterations, and the contribution to Parks and Recreation Services.” [.pdf of staff report]

Planning commissioners unanimously recommended approval of the rezoning, site plan and development agreement. However, only five commissioners on the nine-member body were present, and the commission’s bylaws stipulate that approval requires six votes. So the project was forwarded to city council for consideration with a recommendation of denial from the commission. Wendy Woods, the commission’s chair, assured the developers that city council would be informed that the project secured unanimous support from all commissioners who were present.

The project is on the same site as a previously proposed project by Peter Allen called Kingsley Lane. That had been envisioned as a larger development with 46 units in a complex with two “towers” – at four and nine stories. According to a 2006 Ann Arbor News article, pre-sales of the units were slower than expected because of the struggling housing market, and ultimately financing fell through. At a July 9, 2013 planning commission work session, planning manager Wendy Rampson reported that the developers had lost the property to the bank, but subsequently secured the land and were expected to submit a new site plan.

This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron.

The 4.5-acre parcel will be rezoned from M1 (limited industrial district) to O (office district). It’s a $10 million project by Ann Arbor-based McKinley Inc. The plan calls for constructing two 4-story apartment buildings at the rear of the site, totaling 112,262 square feet, with 38 units each. Another 2,027 square foot building – for a leasing office with two apartments above it – will be built on the front of the parcel, on South State.

Aerial view of State Street Village site.

Final action came at the council’s Aug. 18, 2014 meeting. Action on the initial zoning approval came at the city council’s meeting on July 21. A recommendation for the rezoning was given at the June 17, 2014 meeting of the Ann Arbor planning commission.

At that meeting, commissioners recommended approval of the site plan, development agreement and rezoning for the project.

The front part of the site is currently a surface parking lot, and is zoned O (office). The rear parcel – 4.5 acres – is vacant, and zoned M1 (limited industrial). Residential developments are permitted in office-zoned areas. [.pdf of staff report]

The development will include 114 parking spaces in the rear of the site and 13 spaces for the front. Another 22 spaces in the surface parking lot will be shared by the existing office building just south of the site.

In addition, 44 covered bicycle spaces and 8 enclosed bicycle spaces will be provided near the entrances of the apartment buildings and 2 hoops will be placed near the entrance of the rental office building.

Instead of making a $48,360 requested donation to the city for parks, McKinley has proposed two 8×10-foot grilling patios with picnic tables and grills.

According to the staff memo, the footing drains of 18 homes, or flow equivalent to 71.91 gallons per minute, will need to be disconnected from the city’s sanitary sewer system to mitigate flow from this proposed development.

This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron.

Land use and development is set up to be a dominant theme of tonight’s meeting, as it frequently is for many of the council’s meetings. An additional highlight will be initial consideration of a change to the city’s taxicab ordinance – in response to the entry of services like Uber and Lyft into the Ann Arbor market.

A report from the city administrator on options for deer management has led to a resolution on the Aug. 18 agenda appropriating $20,000 for the development of a deer management program.

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

Among the land use items on the Aug. 18 agenda is one related to use of city-owned land – three parking lots at Fuller Park: (1) the parking lot south of Fuller Road, next to the railroad tracks; (2) the paved parking lot north of Fuller Road at Fuller Park; and (3) the unpaved parking lot north of Fuller Road at Fuller Park. The lots are used by the University of Michigan during restricted hours.

The council will be considering a two-year lease with one additional two-year option for renewal. Annual revenue from this lease will be $78,665, and will be included as part of the parks and recreation general fund budget. The item was forwarded to the city council from the park advisory commission with a recommendation of approval.

Private land development items on the Aug. 18 agenda include final approval of the rezoning of land for the State Street Village project at 2221-2223 S. State St. The 4.5-acre parcel is proposed to be rezoned from M1 (limited industrial district) to O (office district). Also on the council’s agenda is the site plan for the project that will be made possible by approval of the rezoning – a $10 million development by Ann Arbor-based McKinley Inc. The plan calls for constructing two 4-story apartment buildings at the rear of the site, totaling 112,262 square feet, with 38 units each. Another 2,027-square-foot building – for a leasing office with two apartments above it – would be built on the front of the parcel, on South State.

Also on the agenda for final approval is the rezoning required for an Ann Arbor Housing Commission project – a 4.8-acre site at 701 N. Maple Road. The zoning would change from R1C (single-family dwelling district) to R4B (multi-family dwelling district). The site plan, which is also on the council’s Aug. 18 agenda, calls for demolishing 20 existing single-family homes – the public housing complex known as North Maple Estates – and constructing an eight-building, 42-unit apartment complex with a total of 138 bedrooms. A related item on the agenda is the vacation of a portion of the city’s right-of-way for Seybold Drive.

Rezoning for 121 W. Kingsley Street for a private development is getting initial consideration by the council on Aug. 18. The project calls for rezoning the site from a planned unit development (PUD) to D2 (downtown interface). The development would include renovating the existing two-story, 2,539-square-foot building, plus constructing two additional buildings: (1) a 3.5-story addition to the existing building; and (2) a 4.5-story structure at the southeast corner of West Kingsley and North Ashley. In total, the development would include 22 units and 40,689 square feet. The estimated cost is $6.5 million.

Getting initial consideration by the council at its Aug. 18 meeting are changes to the city’s taxicab ordinance that have been recommended by the city’s taxicab board. The recommendations come in the context of the entry of Uber and Lyft into the Ann Arbor market. The companies offer the arrangement of rides through mobile networks with drivers who operate their own vehicles. Both companies have ignored cease-and-desist orders from the city.

Uber has sent its Ann Arbor customers an email asking them to sign an online petition supporting Uber’s continued ability to operate here.

One ordinance change would establish certain parameters to mitigate possible negative consequences to the setting of a very high maximum allowable taxicab rate, under which taxicab companies might eventually compete. Those parameters include a requirement that a taxicab company commit to a single rate annually and that the rate be advertised in a vehicle with signage in letters one-inch tall. The other ordinance would require that all drivers for hire – whether they are taxicab drivers or drivers who work for Uber or Lyft – register with the city, maintain proper insurance for their vehicles and acquire commercial plates.

The Aug. 18 agenda also includes an item to confirm the re-appointment of Bob Guenzel to the board of the Ann Arbor Downtown Development Authority.

This article includes a more detailed preview of many of these agenda items. More details on other agenda items are available on the city’s online Legistar system. The meeting proceedings can be followed Monday evening live on Channel 16, streamed online by Community Television Network starting at 7 p.m.

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

Fuller Park Parking Lease

The council will be considering a possible four-year extension on a University of Michigan lease of three parking lots at Fuller Park. The lease comes to the council with a recommendation of approval from the park advisory commission. The commission gave that recommendation at its July 15, 2014 meeting.

Map of parking lots at Fuller Park that are leased to the University of Michigan.

The existing lease expires on Aug. 31, 2014. The three lots are: (1) the parking lot south of Fuller Road, next to the railroad tracks (Lot A); (2) the paved parking lot north of Fuller Road at Fuller Park (Lot B); and (3) the unpaved parking lot north of Fuller Road at Fuller Park (Lot C). The lots are used by UM during restricted hours.

The city has leased Lot A to UM since 1993. Lots B and C have been leased since 2009.

The proposal, which requires city council approval, is for a two-year lease with one additional two-year option for renewal. Annual revenue of this lease will be $78,665, and will be included as part of the parks and recreation general fund budget. [.pdf of proposed lease agreement] [.pdf of staff report]

The hours that UM can use these lots are stipulated in the agreement:

• Lot A: 4 a.m. to 4 p.m. Monday through Friday.
• Lot B (paved lot): 6 a.m. to 5 p.m. Monday through Friday, beginning the day after Labor Day through the Friday before Memorial Day, excluding holidays.
• Lot C (unpaved lot): 6 a.m. to 5 p.m. Monday through Friday, excluding holidays.

At the PAC meeting when the lease was recommended, parks and recreation manager Colin Smith noted that the revenue from these three lots is significant for the parks and recreation operating budget. The current agreement – which was approved by the council in 2009 and extended by two administrative renewals – is essentially the same as the agreement that will expire, Smith told PAC.

The main purpose of the lots is for the parks, Smith explained. That’s reflected in the hours when UM can use the lots – on weekdays, prior to 4-5 p.m. The outdoor pool and soccer fields don’t need the quantity of parking during the winter or off-season. “It’s an asset within the parks department that we can either have sit there, or we can lease it for a significant amount of revenue that obviously helps us provide other programs,” he said. If the city doesn’t lease those parking lots, “I am absolutely certain that people will park in it anyway,” Smith added.

State Street Village

On Aug. 18, the council will consider final approval of the rezoning of land for the State Street Village project at 2221-2223 S. State St. The 4.5-acre parcel is proposed to be rezoned from M1 (limited industrial district) to O (office district). Also on the council’s agenda for approval is the site plan for the project that will be made possible by approval of the rezoning – a $10 million development by Ann Arbor-based McKinley Inc. The plan calls for constructing two 4-story apartment buildings at the rear of the site, totaling 112,262 square feet, with 38 units each. Another 2,027 square foot building – for a leasing office with two apartments above it – would be built on the front of the parcel, on South State.

Aerial view of State Street Village site.

Action on the initial approval came at the city council’s July 21, 2014 meeting. A recommendation for the rezoning was given at the June 17, 2014 meeting of the Ann Arbor planning commission.

At that meeting, commissioners recommended approval of the site plan, development agreement and rezoning for the project.

The front part of the site is currently a surface parking lot, and is zoned O (office). The rear parcel – 4.5 acres – is vacant, and zoned M1 (limited industrial). Residential developments are permitted in office-zoned areas. [.pdf of staff report]

The development will include 114 parking spaces in the rear of the site and 13 spaces for the front. Another 22 spaces in the surface parking lot will be shared by the existing office building just south of the site.

In addition, 44 covered bicycle spaces and 8 enclosed bicycle spaces will be provided near the entrances of the apartment buildings and 2 hoops will be placed near the entrance of the rental office building.

Instead of making a $48,360 requested donation to the city for parks, McKinley has proposed two 8×10-foot grilling patios with picnic tables and grills.

According to the staff memo, the footing drains of 18 homes, or flow equivalent to 71.91 gallons per minute, will need to be disconnected from the city’s sanitary sewer system to mitigate flow from this proposed development.

North Maple Estates

To be considered for final approval by the council at its Aug. 18 meeting is the rezoning required for an Ann Arbor Housing Commission project – a 4.8-acre site at 701 N. Maple Road. The zoning would change from R1C (single-family dwelling district) to R4B (multi-family dwelling district). The site plan, which has been shifted to the Sept. 2 agenda, calls for demolishing 20 existing single-family homes – the public housing complex known as North Maple Estates – and constructing an eight-building, 42-unit apartment complex with a total of 138 bedrooms. A related item on the agenda is the vacation of a portion of the city’s right-of-way for Seybold Drive.

The Ann Arbor planning commission recommended all three items for approval at its June 17, 2014 meeting. The council gave initial approval of the rezoning at its July 7, 2014 meeting.

Aerial view of North Maple Estates site, outlined in green.

The project is part of a major renovation effort by the Ann Arbor Housing Commission of several of its properties. The site is on the west side of North Maple, between Dexter Avenue and Hollywood Drive. [.pdf of staff report]

The units in the eight-building, 42-unit apartment complex are proposed to have a total of 138 bedrooms. The units range in size from one bedroom to five bedrooms.

The project would include a playground, community building and 73 parking spaces. According to a staff memo, the buildings would be located along a T-shaped driveway that connects to North Maple Road and Dexter Avenue. The drive extends northward toward Vine Court but does not connect with that street. There would be a new connection to Dexter Avenue through the remaining, undeveloped length of Seybold Drive.

The project also requires the city to vacate a portion of the right-of-way for Seybold Drive. The surrounding land is owned by the housing commission, so if the right-of-way vacation is approved, the land would become part of the housing commission property. In a separate vote, the planning commission also recommended approving that request.

When the project was in front of the planning commission, planning staff noted three issues that need to be resolved before the project gets approval from city council:

The parcel containing two duplex buildings also owned by the Ann Arbor Housing Commission in the northeast corner of the site must be combined with the subject site, forming a single parcel as a requirement for issuance of any permits.

The legal description and comparison chart data must be confirmed to include the duplex parcel.

The northern-most parking stall, nearest the connection to Vine Court, must be relocated outside of the minimum front setback area.

According to the staff memo, after June 3 the city’s traffic engineer reviewed the proposed new connection from Seybold Drive onto Dexter Avenue, and concluded that sight distances from all approaches are acceptable. He suggested that the pavement markings on Dexter should be refreshed.

The reconstruction of North Maple Estates is part of an ongoing effort by the housing commission to upgrade the city’s housing stock for low-income residents. At the planning commission’s May 6, 2014 meeting, AAHC executive director Jennifer Hall had made a presentation about the initiative, which includes seeking private investors through low-income housing tax credits.

121 Kingsley West

Rezoning for 121 W. Kingsley Street for a proposed new development is getting initial consideration by the council on Aug. 18. The project calls for rezoning the site from a planned unit development (PUD) to D2 (downtown interface). The development would include renovating the existing two-story, 2,539-square-foot building, plus constructing two additional buildings: (1) a 3.5-story addition to the existing building; and (2) a 4.5-story structure at the southeast corner of West Kingsley and North Ashley. In total, the development would include 22 units and 40,689 square feet. The estimated cost is $6.5 million.

The rezoning is on the council’s agenda, but the site plan will not come before the council until the zoning is considered for a second and final vote. The Ann Arbor planning commission’s recommendation of approval for the site plan and the rezoning came at its July 15, 2014 meeting.

Rendering of 121 Kingsley West project, looking south from Kingsley. The existing building is in the left foreground.

Developers are Tom Fitzsimmons, Peter Allen and Mark Berg. The architect is Marc Rueter.

There would be 29 parking spaces below the buildings – though only two spaces are required, based on residential premiums that the project is seeking. The premiums give the project additional floor area, compare to what’s allowed by right. An elevator for each building will be accessible from the parking level. The parking level of the east building will include a bike room with 14 spaces.

According to a staff report, the project’s development agreement will address “easements for encroachments onto the City right of way by the existing building, onsite stormwater management, verification of LEED points, six required footing drain disconnects, future façade alterations, and the contribution to Parks and Recreation Services.” [.pdf of staff report]

Planning commissioners unanimously recommended approval of the rezoning, site plan and development agreement. However, only five commissioners on the nine-member body were present, and the commission’s bylaws stipulate that approval requires six votes. So the project was forwarded to city council for consideration with a recommendation of denial from the commission. Wendy Woods, the commission’s chair, assured the developers that city council would be informed that the project secured unanimous support from all commissioners who were present.

The project is on the same site as a previously proposed project by Peter Allen called Kingsley Lane. That had been envisioned as a larger development with 46 units in a complex with two “towers” – at four and nine stories. According to a 2006 Ann Arbor News article, pre-sales of the units were slower than expected because of the struggling housing market, and ultimately financing fell through. At a July 9, 2013 planning commission work session, planning manager Wendy Rampson reported that the developers had lost the property to the bank, but subsequently secured the land and were expected to submit a new site plan.

Taxicab Ordinances

Getting initial consideration by the council on Aug. 18 are two changes to the city’s taxicab ordinance that have been recommended by the city’s taxicab board. The recommendations come in the context of the entry of Uber and Lyft into the Ann Arbor market. The companies offer the arrangement of rides through mobile networks with drivers who operate their own vehicles. Both companies have continued to operate in Ann Arbor, despite cease-and-desist orders from the city. [.pdf of cease-and-desist sent to Lyft] [.pdf of cease-and-desist sent to Uber]

The vote to recommend the ordinance changes came at the July 24, 2014 meeting of the taxicab board.

These issues were also discussed at three monthly meetings of the taxicab board prior to that, on April 23, 2014, May 22, 2014 and June 26, 2014.

One ordinance change would establish certain parameters to mitigate possible negative consequences to the setting of a very high maximum allowable taxicab rate, under which taxicab companies might eventually compete. Those parameters include a requirement that a taxicab company commit to a single rate annually and that the rate be advertised in a vehicle with signage in letters one-inch tall.

The current structure for fare regulation already allows for the adoption of a maximum rate to be adopted by the city council. Currently the maximum rate in Ann Arbor is $3 to get in, $2.50 per mile, and 40 cents per minute waiting time. Those maximum rates were last adjusted upwards three years ago, on May 16, 2011, in response to gas prices that had nudged past $4 per gallon. At that time, the taxicab board indicated it did not anticipate considering another rate change until the gas prices were over $5 for at least two consecutive months.

So the taxicab board’s thinking is not being driven by gas prices, which are currently between $3.75 and $4 in the Ann Arbor area. Instead, a possible increase in allowable fares is based on concern that the taxicab industry in Ann Arbor might not be able to survive unless taxis are allowed to charge more.

At its July 24 meeting, taxicab board members discussed the possibility of delaying their recommendation on the ordinance changes until the board could also make a specific recommendation on the price point for a very high maximum rate. But ultimately board members felt that a recommendation on a price point for a new maximum rate could come later – especially because ordinance changes require a first and second reading in front of the council. There would be a window of opportunity between those readings to make a recommendation on the higher maximum. The taxicab board’s next meeting is scheduled for Aug. 28 at 8:30 a.m. at city hall.

The other ordinance change to be given initial consideration would require that all drivers for hire – whether they are taxicab drivers or drivers who work for Uber or Lyft – register with the city, maintain proper insurance for their vehicles and acquire commercial plates. Commercial plates would require that the commensurate commercial insurance is carried.

And the absence of commercial plates on a vehicle that is observed to be used for picking up or dropping off passengers would provide a primary reason for a traffic stop by Ann Arbor police. At the taxicab board meetings over the last few months, representatives of the taxicab industry argued that the state statute regulating limousines already gives the city the ability to enforce against Uber and Lyft drivers.

Deer Management

Attached to the Aug. 18 city council agenda is a report from the city administrator outlining issues and options for management of the urban deer herd in Ann Arbor. Based on that report is a resolution, sponsored by Sabra Briere (Ward 1) and Jane Lumm (Ward 2), that would accept the report and appropriate $20,000 from the general fund for development of a “community endorsed deer management plan.” [.pdf of Aug. 14, 2014 deer management options report]

The council had directed the preparation of the report on various options in a resolution approved at its May 5, 2014 meeting. The report was to have been delivered to the council by July 31.

Fall 2015 is the earliest date identified in the report as a possible timeframe for a culling of the herd.

Before developing a specific plan – that could involve killing deer or not – input from Washtenaw County Parks and Recreation and the University of Michigan would be sought. And the Michigan Department of Natural Resources would need to approve any plan for deer management. The Aug. 14 report includes descriptions of deer management plans in other Michigan cities that range from ordinances prohibiting the feeding of deer to culling programs that shut down city parks and prescribe shooting lanes for archers.

City of Ann Arbor staff estimate that six months would be needed for public engagement. That public engagement could start within 45 days of city council approval to proceed.

Estimated staff time to develop the specific plan is 160 hours, according to the Aug. 14 report. Contractual public engagement and support to develop a management plan are estimated at $20,000.

Other facts included in the plan are the fact that neither city parks nor golf courses have had vegetation damage by deer. The cost to the city for disposing of deer carcasses in fiscal year 2014 was $5,850.

Estimated cost to kill 40-50 deer in the city of Ann Arbor is $25,000-$27,000 per year. That amount includes city staff administration cost in the amount of $14,000.

All deer-car accidents in Washtenaw County from 2004 through 2013 are plotted in the dynamic map below. Map is by The Chronicle with data from michigantrafficcrashfacts.org.

3:50 p.m. Agenda questions. Now available are the city staff’s written responses to questions about agenda items submitted by councilmembers. [.pdf of Aug. 18, 2014 agenda responses]

3:59 p.m. Public speaker lineup. Two speakers and one alternate are signed up to talk about the Fuller Park lease agreement: Rita Mitchell, George Gaston and Larry Baird (alternate). Two speakers and one alternate are signed up to talk about the taxicab ordinance changes: Anne Choike, Scott Sanders and Michael White (alternate). Five speakers are signed up to talk about deer management: Maurita Holland, Mary Avrakotos, Trocy Grogan, Judy Cohen and Nicholas Avrakotos. Thomas Partridge is signed up to talk about electing Mark Schauer and affordable housing.

6:33 p.m. Two large groups are congregating – one outside city hall by the Dreiseitl fountain and one inside the lobby. They’re drivers for Uber and Lyft, respectively.

6:36 p.m. Two people are here in chambers so far. Both are here because they’re interested in the new taxicab ordinance revisions. Sally Petersen (Ward 2) has already arrived and is sitting at the council table.

6:44 p.m. Color coding for the TV viewing audience: Pink T-shirts are for Lyft; blue is for Uber. About 40 people total so far. Two AAPD officers are also here. One of them talks with Mozhgan Savabieasfahani and Blaine Coleman about the seating.

6:53 p.m. City attorney Stephen Postema and city administrator Steve Powers are here. Jane Lumm (Ward 2) has arrived.

6:53 p.m. Chief of police John Seto and deputy chief Greg Bazick were in the hallway on the second floor, outside council chambers. Jack Eaton (Ward 4) arrived earlier.

6:57 p.m. One guy in the back row has both pink and blue T-shirts draped over his shoulders. He drives for both Uber and Lyft.

6:59 p.m. Savabieasfahani calls supporters of the “Boycott Israel” contingent to sit on the north side of the chambers. Thomas Partridge responds by saying, “This is a city council meeting, not a rally!”

7:01 p.m. Chants of “Boycott Israel” begin. The council meeting has not yet been convened.

7:01 p.m. And we’re off.

7:01 p.m. Call to order, moment of silence, pledge of allegiance.

7:02 p.m. Roll call of council. Sabra Briere (Ward 1), Margie Teall (Ward 4), and Chuck Warpehoski (Ward 5) are absent at the rollcall.

7:02 p.m. Approval of agenda.

7:03 p.m. Outcome: The council has approved the evening’s agenda without amendment.

7:05 p.m. Communications from the city administrator. City administrator Steve Powers is talking about the closing of the Ann Arbor senior center for safety reasons. It will be open again in early September. Applications for the city fire chief position will be accepted through Sept. 15. The city’s bond rating has been confirmed as AA+.

Powers doesn’t mention the deer management report that has been submitted to the council. It’s attached to the council’s agenda as a communication. [.pdf of Aug. 18, 2014 deer management options report]

7:05 p.m. Public commentary. This portion of the meeting offers 10 three-minute slots that can be reserved in advance. Preference is given to speakers who want to address the council on an agenda item. [Public commentary general time, with no sign-up required in advance, is offered at the end of the meeting.]

Two speakers and one alternate are signed up to talk about the Fuller Park lease agreement: Rita Mitchell, George Gaston and Larry Baird (alternate). Two speakers and one alternate are signed up to talk about the taxicab ordinance changes: Anne Choike, Scott Sanders and Michael White (alternate). Five speakers are signed up to talk about deer management: Maurita Holland, Mary Avrakotos, Trocy Grogan, Judy Cohen and Nicholas Avrakotos. Thomas Partridge is signed up to talk about electing Mark Schauer and affordable housing.

Mayor John Hieftje is reviewing the rules about how many people can speak at a time and where signs can be held.

7:05 p.m. Rita Mitchell tells Hieftje that she is electing not to speak.

7:08 p.m. George Gaston is addressing the council on the topic of the Fuller Park lot leases. In an email sent to council members over the weekend, he explained how he’s calculated revenue to the University of Michigan from the Yellow and Blue permits issued for the lots. Gaston’s calculations put the UM’s revenue at a total of $521,956 annually, compared to the $78,665 amount in the lease. [.pdf of Gaston's Aug. 15 and Aug. 17, 2014 emails]

He tells the council that he’d spoken to the park advisory commission [at its July 15, 2014 meeting]. He asks the council to delay approval of the lease until they’ve reviewed the figures. Lot A was supposed to be a temporary lot, 20 years ago, he says. The lots are Yellow and Blue lots in the UM parking system, he says. Yellow permits are much cheaper, he says. The council should insist on compensation from the UM based at least on the cost of Yellow Blue permits. Gaston is reciting the history of the leasing of the lots, which involved an interest in preserving bur oak trees. [Briere has now arrived at the table. So has Warpehoski.]

7:12 p.m. Anne Choike tells the council she recently moved to Ann Arbor to teach at the law school. She is speaking in her personal interest in support of Uber and Lyft. She’s arguing for the services based on an interest in less reliance on car ownership. She relies on the bus system, Uber and Lyft, and shared rides with friends. She recites reasons why taxicab service is inadequate. She describes how she is able to spend money on local businesses, instead of on car ownership.

7:16 p.m. Scott Sanders says he’s a homeowner, with two kids and the husband of a professor. Two kids means that it’s a challenge to find a way to earn extra money. Driving in a ride-sharing service is a way to do that. He describes this as an opportunity to grow the transportation business. Instead of fighting for a smaller piece of the pie, people should be thinking about growing the size of the pie: “Coopetition.” This makes transportation more efficient and more accessible, he says. Every time he picks up riders, they express the attitude that: What did we ever do before this? He asks the council not to use a heavy hand. His remarks conclude with applause from the audience, like the previous speaker did.

7:18 p.m. Maurita Holland is speaking for various plants that have been harmed by deer. She’s also speaking for the Washtenaw Citizens for Ecological Balance. She calls for immediate action because the problem is doubling every year, she contends. The deer population in Washtenaw County is 12.5 times the recommended density, she says. “We have to do something,” she says.

7:19 p.m. Mary Avrakotos is speaking as a homeowner on the problem of deer management. She calls deer an increasing menace. She wants the council to decide quickly on a deer management plan and to insist that the city administrator adhere to a timeline on implementation.

7:22 p.m. Tracy Grogan says that spending money on a deer management plan would be money well spent. He likes deer, but deer in urban areas are nervous and tentative, he says. The problem is complex and subject to debate. Ann Arborites are thoughtful, peaceful and caring, he says. But the deer situation is brutal and costly. He wants the discussion to be elevated aggressively. The resolution tonight is an important step forward, he says. He allows that the general fund balance is a precious resource, but we owe it to ourselves to develop a plan that reflects the values of the city. His remarks draw applause.

7:25 p.m. Judy Cohen is also here to talk about the deer issue. It’s not just a matter of whether the deer are eating lilies and decimating your garden. The dollar value of the damage is high, she says. She says that Matthaei Botanical Gardens has cages around the trees to protect them from the deer, but most people don’t want cages around their own trees. She’s describing her personal close calls with deer in her car and actual accidents in her car.

7:27 p.m. Nicholas Avrakotos tells the council that we do have a problem with deer. The most severe winter in many years has not diminished the deer population, he says. He’s describing overpopulation of rabbits on an island – which has become a refuge for rabbits. He says that’s what’s happening here with respect to deer. He wants the council to acknowledge there is a problem.

7:29 p.m. Thomas Partridge calls for the election of Mark Schauer as governor and Gary Peters as U.S. Senator. Hieftje tells Partridge that he had signed to talk about agenda item F-5 and wants him to do that. Peters would have a platform that would help eliminate homelessness and provide affordable housing, Partridge responds.

7:30 p.m. Hieftje disallows Baird as an alternate speaker, saying that Mitchell was here but chose not to speak.

7:30 p.m. Communications from council. This is the first of two slots on the agenda for council communications. It’s a time when councilmembers can report out from boards, commissions and task forces on which they serve. They can also alert their colleagues to proposals they might be bringing forward in the near future.

7:32 p.m. Taylor conveys regrets from Teall, who is caring for older family members. Eaton announces a neighborhood meeting for the Packard Square development on Sept. 4.

7:33 p.m. MC-1 Confirmations. The council is being asked tonight to confirm nominations made at the council’s Aug. 7, 2014 meeting: Bob Guenzel as a reappointment to the Ann Arbor Downtown Development Authority; Stephen Raiman to the energy commission to replace Dina Kurz; and Nora Lee Wright to a vacancy on the housing and human services advisory board.

7:33 p.m. Outcome: All nominations have been confirmed without discussion.

7:33 p.m. MC-2 Nominations. Anna Ercoli-Schnitzer is being nominated to fill a vacancy on the Commission on Disability Issues. Tamara Burns and Dick Mitchell are being nominated to be reappointed to the design review board. Sofia Franciscus is being nominated to fill the vacancy on the planning commission due to Paras Parekh’s resignation. And John Splitt is being nominated for reappointment to the Downtown Development Authority board. Votes on their confirmation will take place at the council’s next meeting.

7:35 p.m. Public hearings. All the public hearings are grouped together during this section of the meeting. Action on the related items comes later in the meeting. Four public hearings are scheduled tonight. Two of them relate to an Ann Arbor Housing Commission project on North Maple that involves demolishing some units and re-building them. [For additional background see North Maple Estates above] The other two public hearings relate to the McKinley project on State Street called State Street Village. [For additional background see State Street Village above]

Hieftje tells the Boycott Israel contingent to hold their signs over to the sides. They respond by exiting. In leaving some make statements: “You care more about deer than people.”

7:35 p.m. PH-1 Ann Arbor Housing Commission North Maple Road.

7:37 p.m. Thomas Partridge calls for more affordable housing.

7:37 p.m. PH-2 Seybold Drive street vacation.

7:38 p.m. No one speaks on this public hearing.

7:38 p.m. PH-3 State Street Village rezoning.

7:40 p.m. Thomas Partridge calls for more consideration of the most vulnerable.

7:40 p.m. PH-4 State Street Village site plan.

7:42 p.m. Thomas Partridge calls for public access by everyone, including seniors and the disabled.

7:42 p.m. Approval of minutes. Outcome: The minutes of the council’s previous meeting have been approved.

7:42 p.m. Consent agenda. This is a group of items that are deemed to be routine and are voted on “all in one go.” Contracts for less than $100,000 can be placed on the consent agenda. This meeting’s consent agenda includes:

• CA-1 Approve the member services agreement into the Keenan Pharmacy Purchasing Coalition ($60,000 for 2014 and $60,000 for 2015).
• CA-2 Approve July 24, 2014 recommendations of the Board of Insurance Administration.
• CA-3 Street Closure: Maynard Street on Wednesday, September 10, 2014 for the Barracuda Networks BBQ.
• CA-4 Approve agreement with the Washtenaw County Road Commission for the resurfacing of Newport Road (City Limits to Bird Road) ($90,000).

7:43 p.m. Councilmembers can pull out any item on the consent agenda for separate consideration. Briere pulls out CA-4.

7:43 p.m. Outcome: The consent agenda has been approved except for CA-4.

7:43 p.m. CA-4 Approve agreement with the Washtenaw County Road Commission for the resurfacing of Newport Road (City Limits to Bird Road) ($90,000).

7:44 p.m. Briere is thanking staff for working with the Washtenaw County Road Commission to make this happen.

7:44 p.m. Outcome: CA-4 has now been approved from the consent agenda.

7:44 p.m. B-1 Ann Arbor Housing Commission North Maple Road Rezoning. The council is considering for final approval the rezoning required for an Ann Arbor Housing Commission project – a 4.8-acre site at 701 N. Maple Road. The zoning would change from R1C (single-family dwelling district) to R4B (multi-family dwelling district). The site plan, which has been shifted to the Sept. 2 agenda, calls for demolishing 20 existing single-family homes – the public housing complex known as North Maple Estates – and constructing an eight-building, 42-unit apartment complex with a total of 138 bedrooms. A related item on the agenda is the vacation of a portion of the city’s right-of-way for Seybold Drive. [For additional background see North Maple Estates above]

7:45 p.m. Outcome: The council has voted to give final approval to the North Maple Estates rezoning.

7:45 p.m. B-2 State Street Village rezoning. The council is considering the rezoning of land for the State Street Village project at 2221-2223 S. State St. The 4.5-acre parcel is proposed to be rezoned from M1 (limited industrial district) to O (office district). Also on the council’s agenda for approval is the site plan for the project that will be made possible by approval of the rezoning – a $10 million development by Ann Arbor-based McKinley Inc. The plan calls for constructing two 4-story apartment buildings at the rear of the site, totaling 112,262 square feet, with 38 units each. Another 2,027 square foot building – for a leasing office with two apartments above it – would be built on the front of the parcel, on South State. [For additional background see State Street Village above]

7:45 p.m. Briere notes that office (O) zoning was the most flexible zoning for this site. She assures members of the public that every site plan is vetted for access to transit by all users.

7:46 p.m. Outcome: The council has voted to give final approval to the State Street Village rezoning.

7:46 p.m. C-1 121 Kingsley West rezoning. This is the initial consideration of the 121 W. Kingsley Street project. The project calls for rezoning the site from a planned unit development (PUD) to D2 (downtown interface). The development would include renovating the existing two-story, 2,539-square-foot building, plus constructing two additional buildings: (1) a 3.5-story addition to the existing building; and (2) a 4.5-story structure at the southeast corner of West Kingsley and North Ashley. In total, the development would include 22 units and 40,689 square feet. The estimated cost is $6.5 million. The rezoning is on the council’s agenda, but the site plan will not come before the council until the zoning is considered for a second and final vote. [For additional background see 121 Kingsley West above]

7:46 p.m. Outcome: Without discussion, the council has voted to give initial approval to the rezoning for 121 Kingsley West.

7:46 p.m. C-2 Taxicab ordinance amendment: Rates. Getting initial consideration tonight are two changes to the city’s taxicab ordinance that have been recommended by the city’s taxicab board. The recommendations come in the context of the entry of Uber and Lyft into the Ann Arbor market. This ordinance change would establish certain parameters to mitigate possible negative consequences to the setting of a very high maximum allowable taxicab rate, under which taxicab companies might eventually compete. Those parameters include a requirement that a taxicab company commit to a single rate annually and that the rate be advertised in a vehicle with signage in letters one-inch tall. [For additional background see Taxicab Ordinances above]

7:47 p.m. Outcome: Without discussion, the council has voted to give initial approval of the taxicab ordinance change on the maximum rate.

7:47 p.m. C-3 Taxicab ordinance amendment: Register drivers for hire. This is the second item recommended by the taxicab board. It would require the registration with the city by all drivers for hire, including those who work for Uber and Lyft. Key requirements are the affixing of commercial license plates to a vehicle and maintaining commensurate insurance. [For additional background see Taxicab Ordinances above]

7:50 p.m. Stephen Kunselman (Ward 3) is noting that he sits on the taxicab board. The board has been working to bring up the city’s laws up to date with the changes to the marketplace. The speakers tonight have not addressed the issue of public safety, he says. This ordinance will require insurance of vehicles as commercial vehicles, he notes. This will make all drivers comply with the same rules, Kunselman says. He notes that this is the first reading of the ordinance. Some items might need to be removed, but he would like that to happen at the second reading.

7:51 p.m. Kunselman compares the issue to Selma Cafe. Everyone thought it was great, and then came the annoyances from all the neighbors because of the parking in the neighborhood. Relying on personal insurance won’t work, Kunselman says, because that puts the consumer at risk.

7:52 p.m. Hieftje is reviewing the two-step process for changes to ordinances – first reading, followed by second reading with a public hearing at a later date. Lumm is thanking the city attorney’s staff for their work.

7:54 p.m. Lumm asks about the division of responsibility between the state and local municipalities with respect to taxicabs and limos. Assistant city attorney Kristen Larcom tells Lumm that her understanding of the state of Michigan’s position is that Uber and Lyft services meet the definition of a limo. There’s movement among legislators to make amendments to the state limo act, she thinks.

7:57 p.m. City CFO Tom Crawford, who serves on the taxicab board in an ex officio capacity, responds to a question from Lumm about mechanics and inspections.

7:59 p.m. Briere wants to know what the financial impact will be on drivers for Uber and Lyft. Crawford says that there’s a distinction between a limo company, the drivers and the vehicle. He says that the drivers for Uber and Lyft are 1099 workers. Briere says that this is not what she’s concerned about. She wants to know who bears the cost. How does the proposed change share responsibility? she asks.

8:03 p.m. Kailasapathy ventures that answering the cost question is challenging, and Crawford agrees. Petersen says that the real hurdle is the insurance, not the chauffeur’s license.

8:06 p.m. Anglin agrees that it’s important to understand the cost. Kunselman responds by saying the reason that Lyft and Uber can make a profit is that they are “cheating” the law. What about the companies that are complying with the law? Kunselman asks – like Ann Arbor’s taxicab companies. The reason Uber and Lyft can charge less because they aren’t carrying the associated cost of business, he says. About the use of a family car for a ride-sharing business, Kunselman says: “Lord help us all if that family vehicle gets in a wreck,” and the family goes into bankruptcy.

8:07 p.m. Anglin doesn’t want to jump into anything rapidly.

8:10 p.m. Taylor says that the solution proposed is for a problem that does not exist. Uber and Lyft provide safe service, he says. They allow Ann Arborites to maintain a carless lifestyle. These business models provide for full insurance, he contends. Drivers are taken care of by the insurance of Uber and Lyft when they’re driving. He’ll vote against this, he says. Instead he’ll be working with Briere to bring forward a resolution directing the city administrator to develop an operating agreement with Uber and Lyft. His remarks are met with applause. Hieftje says “Applause is not appropriate during the body of the meeting.”

8:13 p.m. Eaton asks a question of the city attorney’s office. He asks if there’s anything about the state limo act that prevents the city from asserting control over the same subject matter. Warpehoski gets clarification that Ann Arbor does not limit the number of taxicab licenses. He’s comparing Ann Arbor to New York, and its taxicab “cartel.” He says it’s a matter of threading the needle, balancing the right amount of regulation.

8:15 p.m. Warpehoski says he’ll vote for this at first reading, but if the text is the same by the time the ordinance comes back for second reading, he’ll vote against it at that time.

8:15 p.m. Petersen says she’ll take Warpehoski’s advice from a couple of meetings ago: If you’re going to vote against it at second reading, vote against it at first reading. She wants to support Taylor’s efforts to develop an operating agreement.

8:19 p.m. Kunselman notes that the Detroit operating agreement is for a short time, while the law is worked out. All this ordinance does is make everyone follow the same laws, he says. If councilmembers think that Uber and Lyft can self-regulate public safety, then they should vote this down and let it be a free-for-all, he says. They’re making money because they’re not paying the full cost of the business model. They’re using public streets to make a buck, he says. With Selma Cafe, everyone was having a great time going to breakfast at someone’s house, he says, but then it had to be shut down.

8:19 p.m. Kunselman says he doesn’t use Lyft and Uber because he doesn’t feel they’re safe.

8:21 p.m. Briere is describing how many cities are developing operating agreements while the state laws are sorted out. The operating agreements can address who pays for what, she says. The agreement being considered in Lansing would define an amount for which the company is responsible for insuring, she says.

8:23 p.m. Briere ventures that such operating agreements could eventually be extended to standard limo companies. She doesn’t imagine ever needing to know who every driver is, but thinks it’s rational to expect that a list be maintained – so it’s fine if Lyft and Uber maintain that list.

8:26 p.m. Lumm says the ship has left the dock and there’s no stopping it now. Even though there’s a cease-and-desist order, Uber and Lyft are continuing to do business, she says. It’s about ensuring safety for passengers, she adds. Detroit had left undefined who the “third party” is who can inspect vehicles. Lumm is talking about the fact that Uber and Lyft drivers are rated by customers, but she wonders what happens if there’s a series of bad ratings. Lumm asks that Taylor and Briere work with the taxicab board, if the ordinance revision doesn’t pass at first reading. She notes that the chair of the taxicab board [Michael Benson] had sent the council an email asking the council to support the changes.

8:29 p.m. Crawford describes himself as conflicted about the ordinance. He says that he doesn’t see Uber and Lyft as competing with taxicabs so much as with limos. The Uber and Lyft business models are designed for those who have smartphones, he notes. They have ways to rate passengers and drivers, he says, so if you have give drivers a bad experience, you might not be able to get a ride.

8:32 p.m. Kailasapathy is drawing an analogy to renting a house. If a landlord was skirting requirements on fire inspections, would the city opt to come up with operating agreements with them? Is the city council there to revise ordinance that apply to everybody, or when people break the rules, do we scramble to create operating agreements to fit their business models? For her it’s a governance issue.

8:35 p.m. Eaton says he’ll support the ordinance change. He notes that Kunselman has stated he’s willing to compromise on some of the language. Eaton says that he is sensitive to the idea that a company will self-regulate for safety. He says that the same offer of an operating agreement would need to be offered to taxicab companies. Eaton can’t imagine letting an entire industry arise under the guise of self-regulation.

8:36 p.m. Petersen says she’s not opposed to ordinance amendments, but she doesn’t think that these are the right set of amendments. She says that Kunselman should go back to the drawing board. Public safety, health and welfare is paramount, but she doesn’t think that these are insurmountable barriers.

8:39 p.m. Anglin is talking about the transportation that the AAATA’s shared taxi service provides. Briere moves to waive the council’s rules on speaking times, which the council agrees to.

8:40 p.m. Kunselman is going through the requirements in the ordinance change and asks other councilmembers if they have objections to each of them. “Does anybody have a problem with that?” is the question he poses for each requirement.

8:42 p.m. Kunselman comes to “the one that probably scares Uber and Lyft the most,” which is that they would have to comply with state limo act. He asks if councilmembers are willing to allow a company to operate in violation of state law. If so, then “have at it,” he says.

8:44 p.m. Briere calls Kailasapathy’s comparison to renting a house interesting. She extends that to the hotel industry and bed and breakfasts, and is now talking about Airbnb-type models.

8:47 p.m. Briere says she wants the company to bear the burden. The city would be adding an incredible burden to something that is a casual relationship. She thinks the city can be more creative in regulating this issue. Since April, she’s been convinced that an operating agreement is the way to go.

8:49 p.m. Lumm thinks that the requirements in the ordinance are really basic. She asks for the representative from Uber, Michael White, to explain which elements of the ordinance he objects to.

8:52 p.m. White says that there’s no need for commercial insurance on a vehicle that’s being used for three hours a week for this service, he says. Uber’s insurance covers those vehicles when they’re being used to drive for Uber, he says. If there were a safety issue, he says, it wouldn’t be just a national issue, it would be an international issue, he says.

8:54 p.m. Eaton asks which requirements White objects to. He objects to each driver having to complete the requirements.

8:55 p.m. Kailasapathy is asking about the insurance policy. It’s a liability policy, White explains.

8:57 p.m. Briere asks if White can share data about safety. Not today, he says. Briere asks if he can get it. Complaints come in as a stream, he says. Briere wants to know about percentages – out of 20 vehicles, how many complaints are there?

9:00 p.m. White says that their drivers have an average star rating of 4.6 stars out of 5.0. Briere says she’s not asking about satisfaction, but about safety. Petersen wants to know how that data is used by Uber. White is providing the standard Uber marketing message to the council.

9:01 p.m. Petersen asks if Uber can suspend a driver before they discover that people aren’t requesting rides from them. Based on White’s response, it’s not clear.

9:02 p.m. Lumm is following up with questions about the rating system.

9:05 p.m. White is taking the opportunity to explain the various advantages that Uber offers to riders.

9:07 p.m. Lumm is going back and forth with White about what he’d be willing to put in an operating agreement. He’d be willing to put a requirement in an Ann Arbor operating agreement that required the vehicle inspection to be done by a licensed mechanic.

9:12 p.m. Warpehoski has some back-and-forth with White.

9:12 p.m. Kunselman asks White if Uber would be willing to accept six points as a maximum. White says that they evaluate the nature of the violations. He’d be happy to discuss various issues. Kunselman says White has been vague. Kunselman asks if Uber would allow a felon to be a driver. No, White says. The city council had recently approved a policy on that, Kunselman notes. [Earlier this year, the city eliminated the requirement that job applicants disclose past criminal records – except for police and fire department applicants.]

White says that an English requirement would effectively arise from having to be able to go through the application system. And if they did manage to be activated as a driver, their ability to deliver quality service would be hampered by a lack of English. And that would show up in the feedback the driver would get.

9:14 p.m. Kunselman asks about possible discrimination against riders with disabilities and about red-lining. White says that studies have been done that show in Chicago, undesirable and underserved areas are much better served by Uber than by existing transportation options. Kunselman asks: Do you think that we should disband the taxicab industry in Ann Arbor?

9:20 p.m. Hieftje says there have been a lot of good comments. He mentions pipelines as a self-regulated industry, in some ways. It’s long been a goal of his to make it possible for people to live without owning a car, he says. The bike lane system has been expanded, he says. The bus system has been expanded. Ride-sharing apps are a way to expand ride-share options. So he won’t support the ordinance change tonight. He doesn’t think there’s any reason to think that Uber and Lyft aren’t concerned with safety.

9:24 p.m. Outcome: The council has rejected the ordinance at first reading on a 5-5 vote. Voting against it were Hieftje, Briere, Petersen, Lumm and Taylor.

9:24 p.m. Recess. We’re now in recess.

9:37 p.m. We’re back.

9:37 p.m. DC-1 Appropriate $20,000 to develop a community-endorsed deer management plan. This item is based on the Aug. 14 report from the city administrator on options for managing the deer population. Before developing a specific plan – that could involve killing deer or not – input from Washtenaw County Parks and Recreation and the University of Michigan would be sought. And the Michigan Department of Natural Resources would need to approve any plan for deer management.

The Aug. 14 report includes descriptions of deer management plans in other Michigan cities that range from ordinances prohibiting the feeding of deer to culling programs that shut down city parks and prescribe shooting lanes for archers. City of Ann Arbor staff estimate that six months would be needed for public engagement. That public engagement could start within 45 days of city council approval to proceed. Estimated staff time to develop the specific plan is 160 hours, according to the Aug. 14 report. Contractual public engagement and support to develop a management plan are estimated at $20,000. The report indicates that to cull 40-50 deer per year, the cost to the city would be about $25,000. According to Michigan Department of Natural Resources records 6,608 deer were taken by hunters in Washtenaw County. [For additional background see Deer Management above]

9:39 p.m. Lumm is thanking city administrator Steve Powers and community services administrator Sumedh Bahl. Lumm is reading aloud a written statement. The plan to be developed is supposed to include metrics for success, she says. The MDNR is the critical partner, she says.

9:42 p.m. Lumm allows that the problem might be concentrated in Ward 1 and Ward 2, but she hopes that the council will support it. Briere says that the problem is growing in Ward 5 as well. Briere says she doesn’t have an interest in seeing the deer slaughtered, but there are few ways to control the deer population. The problem might not be only the overpopulation of deer, she allows. She supports moving the process forward.

9:44 p.m. Hieftje says his central concern is that it be a comprehensive solution. He reports that he saw a buck walk past his front porch, even though there are no natural areas in the area.

9:47 p.m. Lumm asks Bahl to come to the podium. Powers responds first. He notes that the partners involved “aren’t quite there yet,” and the DNR has recommended that there be a community process. That comment comes in response to some public input to the effect that the city was not moving fast enough.

9:50 p.m. Lumm asks if there will be more data collected on environmental data. That will take some time, Bahl says.

9:51 p.m. Lumm is now reading aloud an email from a NAP volunteer. Young oak trees don’t survive unless the volunteer fences the trees, the email states.

9:52 p.m. Outcome: The council has voted unanimously to appropriate $20,000 to develop a deer management plan.

9:52 p.m. DC-2 Community Events Fund Disbursements. This item was added late to the agenda by Sabra Briere (Ward 1) and Chuck Warpehoski (Ward 5). The council rule on the subject reads as follows: “Council members may add items to the agenda at any time, but will use best efforts to do so prior to 5:00 p.m. on the Friday before the next Council meeting.” The two constitute the council committee for distribution of community events funding. They met at 10 a.m. today (Monday) for a meeting that was announced through the city’s notification system at 4:06 p.m. last Friday.

About half of the events to receive funding this year have already taken place. The disbursements are for a total of $55,000, including $10,000 for the Ann Arbor Street Art Fair and $25,000 for the Summer Festival.

9:54 p.m. Warpehoski apologizes for the late addition to the agenda. Some of the events that been allocated funding turned out not to be happening and so adjustments needed to be made late. The full amount is not being allocated, he says, so that late applications might be accommodated.

9:54 p.m. Outcome: The council has voted to approve the disbursements from the community events fund.

9:54 p.m. DB-1 Seybold Drive vacation. This item is related to the Ann Arbor Housing Commission’s North Maple Estates project the zoning for which the council voted on earlier in the meeting. [For additional background see North Maple Estates above]

9:54 p.m. Outcome: The council has voted to approve the vacation of Seybold Drive.

9:54 p.m. DB-2 State Street Village site plan. The council voted on the rezoning for the project earlier in the meeting. [For additional background see State Street Village above]

9:54 p.m. Outcome: The council has voted to approve the State Street Village site plan.

9:54 p.m. DS-1 Approve extended policy with EyeMed Vision Care ($305,828). The policy period is four years. The policy requires the city to pay a set monthly premium. The monthly premiums are $4.53 for single, $8.61 for two people, and $12.64 for a family from July 1, 2014 through Dec. 31, 2014. According to the staff memo accompanying the resolution, due to the fees imposed onto insurers under the Affordable Care Act (ACA), the premiums will be adjusted upward on January 1, 2015. The new monthly premiums will be $4.67 for single, $8.87, for two people, and $13.02 for a family from Jan. 1, 2015 through Dec. 31, 2018.

9:55 p.m. Outcome: The council has voted to approve the extension with EyeMed.

9:55 p.m. DS-2 Approve Fuller Lot lease with University of Michigan. This item would extend the lease by the city to the University of Michigan for three parking lots at Fuller Park: (1) the parking lot south of Fuller Road, next to the railroad tracks; (2) the paved parking lot north of Fuller Road at Fuller Park; and (3) the unpaved parking lot north of Fuller Road at Fuller Park. The lots are used by the University of Michigan during restricted hours. Annual revenue from this lease will be $78,665, and will be included as part of the parks and recreation general fund budget. The item was forwarded to the city council from the park advisory commission with a recommendation of approval. [For additional background see Fuller Park Parking Lease above.]

9:57 p.m. Hieftje says that he thinks it would be useful to postpone the question.

9:58 p.m. Eaton asks that if this is sent back to the park advisory commission (PAC), then he wants the commission to review the relevant planning documents.

10:00 p.m. Briere moves to postpone until October. Lumm asks what happens, given the expiration of the current lease. Hieftje ventures that this is coming to the council later than it should have.

10:01 p.m. Anglin is concerned about the inclusion of a mention of future uses of the property.

10:01 p.m. Outcome: The council has voted to postpone the Fuller Park lot lease with the University of Michigan until the first meeting in October.

10:01 p.m. DS-3 Appropriate emergency management performance ($42,582) This item will accept $42,582 in grant funding from the state for emergency management. It will pay for part of the salary for the city’s emergency manager.

10:01 p.m. Outcome: The council has voted to approve the acceptance of the emergency program grant funds.

10:02 p.m. Communications from the council.

10:05 p.m. Kailasapathy is pointing out that the council rule regarding public commentary is that if someone vacates their reserved time, it shall be assigned to the alternate speakers. Larry Baird was the alternate who was denied an opportunity to speak. Hieftje says that he will take a look at that. But he says that the rules are under a great deal of scrutiny to make sure that the rules are followed. “Maybe I was too careful.” He was concerned that someone might bring that up to the council. Kailasapathy reiterates the point of the rule. Hieftje says he’ll look into that. Warpehoski notes that everyone has a responsibility to note the error at the time it’s made.

10:06 p.m. Clerk’s Report. Warpehoski says he’s happy to see the inclusion of accessory dwelling units in the planning commission’s work plan, which is part of the clerk’s report of communications.

10:08 p.m. Warpehoski says that if the council wants to see things move forward, they need to make the necessary resources available.

10:08 p.m. Outcome: The council has now accepted the clerk’s report.

10:08 p.m. Public comment. There’s no requirement to sign up in advance for this slot for public commentary.

10:10 p.m. Thomas Partridge says that despite the council’s vote on the taxicab ordinance, the city still needs assurances that transportation will be safety. He says the city is not making the kind of progress it needs to on affordable housing.

10:13 p.m. Kai Petainen is addressing the council on the topic of Ann Arbor SPARK. Here’s a .pdf of his remarks: [.pdf of Petainen Aug. 18, 2014]

10:16 p.m. A Lyft driver is addressing the council. He says he’s been living here for 14 years. He says that the council makes the city better and better every day. He wants them to continue to make Ann Arbor’s transportation system better.

10:18 p.m. A second Lyft driver, who’s been working with that service since May 8, is now addressing the council. Ann Arbor deserves ride-sharing in the city, he says. About 80% of riders he picks up are college students. When he picks up students who are drunk, he knows that he is saving their lives. It takes 45 minutes to an hour for other services, he says. Lyft covers him with a $1 million policy, he says.

10:21 p.m. Ed Vielmetti is addressing the council. He’s a Ward 4 resident. Two years ago, The Chronicle’s Stopped.Watched feature recorded a vehicle in storage by the city of Ann Arbor – it’s a Washtenaw County APC with a battering ram. He alludes to events in Ferguson. He hopes and prays that if something happens in this city and county, their public officials will support them in cases where injustices have been done.

10:23 p.m. Rita Mitchell says that she is choosing to speak now, although she chose not to speak earlier. She appreciates the rule that calls for speakers to speak on agenda items at the start of the meeting. She thanks the council for their action to postpone the item on leasing Fuller Park lots to UM. She hopes that the parks can be funded without leasing parkland for non-park uses. She also objects to inclusion of language in the lease about possible future use of the area as a train station. She wants the city to check into the condition of the trees that were supposed to be saved through the lease so many years ago.

10:25 p.m. Jeff Hayner says he hopes the city can get a better deal from the University of Michigan. He delivers a theatrical reading with a deer skull.

10:26 p.m. An Uber driver is now addressing the council in support of Uber and other ride-sharing services.

10:27 p.m. Adjournment. We are now adjourned. That’s all from the hard benches.

A sign on the door to the Ann Arbor city council chambers gives instructions for post-meeting clean-up.

A report from the city administrator on options for deer management has led to a resolution on the Aug. 18 agenda appropriating $20,000 for the development of a deer management program.

Screenshot of Legistar – the city of Ann Arbor’s online agenda management system. Image links to the Aug. 18, 2014 meeting agenda.

Among the land use items on the Aug. 18 agenda is one related to use of city-owned land – three parking lots at Fuller Park: (1) the parking lot south of Fuller Road, next to the railroad tracks; (2) the paved parking lot north of Fuller Road at Fuller Park; and (3) the unpaved parking lot north of Fuller Road at Fuller Park. The lots are used by the University of Michigan during restricted hours.

The council will be considering a two-year lease with one additional two-year option for renewal. Annual revenue from this lease will be $78,665, and will be included as part of the parks and recreation general fund budget. The item was forwarded to the city council from the park advisory commission with a recommendation of approval.

Private land development items on the Aug. 18 agenda include final approval of the rezoning of land for the State Street Village project at 2221-2223 S. State St. The 4.5-acre parcel is proposed to be rezoned from M1 (limited industrial district) to O (office district). Also on the council’s agenda for approval is the site plan for the project that will be made possible by approval of the rezoning – a $10 million development by Ann Arbor-based McKinley Inc. The plan calls for constructing two 4-story apartment buildings at the rear of the site, totaling 112,262 square feet, with 38 units each. Another 2,027-square-foot building – for a leasing office with two apartments above it – would be built on the front of the parcel, on South State.

Also on the agenda for final approval is the rezoning required for an Ann Arbor Housing Commission project – a 4.8-acre site at 701 N. Maple Road. The zoning would change from R1C (single-family dwelling district) to R4B (multi-family dwelling district). The site plan, which is also on the council’s Aug. 18 agenda, calls for demolishing 20 existing single-family homes – the public housing complex known as North Maple Estates – and constructing an eight-building, 42-unit apartment complex with a total of 138 bedrooms. A related item on the agenda is the vacation of a portion of the city’s right-of-way for Seybold Drive.

Rezoning for 121 W. Kingsley Street for a private development is getting initial consideration by the council on Aug. 18. The project calls for rezoning the site from a planned unit development (PUD) to D2 (downtown interface). The development would include renovating the existing two-story, 2,539-square-foot building, plus constructing two additional buildings: (1) a 3.5-story addition to the existing building; and (2) a 4.5-story structure at the southeast corner of West Kingsley and North Ashley. In total, the development would include 22 units and 40,689 square feet. The estimated cost is $6.5 million.

Getting initial consideration by the council at its Aug. 18 meeting are changes to the city’s taxicab ordinance that have been recommended by the city’s taxicab board. The recommendations come in the context of the entry of Uber and Lyft into the Ann Arbor market. The companies offer the arrangement of rides through mobile networks with drivers who operate their own vehicles. Both companies have ignored cease-and-desist orders from the city.

Uber has sent its Ann Arbor customers an email asking them to sign an online petition supporting Uber’s continued ability to operate here.

One ordinance change would establish certain parameters to mitigate possible negative consequences to the setting of a very high maximum allowable taxicab rate, under which taxicab companies might eventually compete. Those parameters include a requirement that a taxicab company commit to a single rate annually and that the rate be advertised in a vehicle with signage in letters one-inch tall. The other ordinance would require that all drivers for hire – whether they are taxicab drivers or drivers who work for Uber or Lyft – register with the city, maintain proper insurance for their vehicles and acquire commercial plates.

In other significant business at its Aug. 18 meeting, the council will also be asked to confirm the re-appointment of Bob Guenzel to the board of the Ann Arbor Downtown Development Authority.

This article includes a more detailed preview of many of these agenda items. More details on other agenda items are available on the city’s online Legistar system. The meeting proceedings can be followed Monday evening live on Channel 16, streamed online by Community Television Network starting at 7 p.m.

Fuller Park Parking Lease

The council will be considering a possible four-year extension on a University of Michigan lease of three parking lots at Fuller Park. The lease comes to the council with a recommendation of approval from the park advisory commission. The commission gave that recommendation at its July 15, 2014 meeting.

Map of parking lots at Fuller Park that are leased to the University of Michigan.

The existing lease expires on Aug. 31, 2014. The three lots are: (1) the parking lot south of Fuller Road, next to the railroad tracks (Lot A); (2) the paved parking lot north of Fuller Road at Fuller Park (Lot B); and (3) the unpaved parking lot north of Fuller Road at Fuller Park (Lot C). The lots are used by UM during restricted hours.

The city has leased Lot A to UM since 1993. Lots B and C have been leased since 2009.

The proposal, which requires city council approval, is for a two-year lease with one additional two-year option for renewal. Annual revenue of this lease will be $78,665, and will be included as part of the parks and recreation general fund budget. [.pdf of proposed lease agreement] [.pdf of staff report]

The hours that UM can use these lots are stipulated in the agreement:

• Lot A: 4 a.m. to 4 p.m. Monday through Friday.
• Lot B (paved lot): 6 a.m. to 5 p.m. Monday through Friday, beginning the day after Labor Day through the Friday before Memorial Day, excluding holidays.
• Lot C (unpaved lot): 6 a.m. to 5 p.m. Monday through Friday, excluding holidays.

At the PAC meeting when the lease was recommended, parks and recreation manager Colin Smith noted that the revenue from these three lots is significant for the parks and recreation operating budget. The current agreement – which was approved by the council in 2009 and extended by two administrative renewals – is essentially the same as the agreement that will expire, Smith told PAC.

The main purpose of the lots is for the parks, Smith explained. That’s reflected in the hours when UM can use the lots – on weekdays, prior to 4-5 p.m. The outdoor pool and soccer fields don’t need the quantity of parking during the winter or off-season. “It’s an asset within the parks department that we can either have sit there, or we can lease it for a significant amount of revenue that obviously helps us provide other programs,” he said. If the city doesn’t lease those parking lots, “I am absolutely certain that people will park in it anyway,” Smith added.

State Street Village

On Aug. 18, the council will consider final approval of the rezoning of land for the State Street Village project at 2221-2223 S. State St. The 4.5-acre parcel is proposed to be rezoned from M1 (limited industrial district) to O (office district). Also on the council’s agenda for approval is the site plan for the project that will be made possible by approval of the rezoning – a $10 million development by Ann Arbor-based McKinley Inc. The plan calls for constructing two 4-story apartment buildings at the rear of the site, totaling 112,262 square feet, with 38 units each. Another 2,027 square foot building – for a leasing office with two apartments above it – would be built on the front of the parcel, on South State.

Aerial view of State Street Village site.

Action on the initial approval came at the city council’s July 21, 2014 meeting. A recommendation for the rezoning was given at the June 17, 2014 meeting of the Ann Arbor planning commission.

At that meeting, commissioners recommended approval of the site plan, development agreement and rezoning for the project.

The front part of the site is currently a surface parking lot, and is zoned O (office). The rear parcel – 4.5 acres – is vacant, and zoned M1 (limited industrial). Residential developments are permitted in office-zoned areas. [.pdf of staff report]

The development will include 114 parking spaces in the rear of the site and 13 spaces for the front. Another 22 spaces in the surface parking lot will be shared by the existing office building just south of the site.

In addition, 44 covered bicycle spaces and 8 enclosed bicycle spaces will be provided near the entrances of the apartment buildings and 2 hoops will be placed near the entrance of the rental office building.

Instead of making a $48,360 requested donation to the city for parks, McKinley has proposed two 8×10-foot grilling patios with picnic tables and grills.

According to the staff memo, the footing drains of 18 homes, or flow equivalent to 71.91 gallons per minute, will need to be disconnected from the city’s sanitary sewer system to mitigate flow from this proposed development.

North Maple Road

To be considered for final approval by the council at its Aug. 18 meeting is the rezoning required for an Ann Arbor Housing Commission project – a 4.8-acre site at 701 N. Maple Road. The zoning would change from R1C (single-family dwelling district) to R4B (multi-family dwelling district). The site plan, which is also on the council’s Aug. 18 has been shifted to the Sept. 2 agenda, calls for demolishing 20 existing single-family homes – the public housing complex known as North Maple Estates – and constructing an eight-building, 42-unit apartment complex with a total of 138 bedrooms. A related item on the agenda is the vacation of a portion of the city’s right-of-way for Seybold Drive.

The Ann Arbor planning commission recommended all three items for approval at its June 17, 2014 meeting. The council gave initial approval of the rezoning at its July 7, 2014 meeting.

Aerial view of North Maple Estates site, outlined in green.

The project is part of a major renovation effort by the Ann Arbor Housing Commission of several of its properties. The site is on the west side of North Maple, between Dexter Avenue and Hollywood Drive. [.pdf of staff report]

The units in the eight-building, 42-unit apartment complex are proposed to have a total of 138 bedrooms. The units range in size from one bedroom to five bedrooms.

The project would include a playground, community building and 73 parking spaces. According to a staff memo, the buildings would be located along a T-shaped driveway that connects to North Maple Road and Dexter Avenue. The drive extends northward toward Vine Court but does not connect with that street. There would be a new connection to Dexter Avenue through the remaining, undeveloped length of Seybold Drive.

The project also requires the city to vacate a portion of the right-of-way for Seybold Drive. The surrounding land is owned by the housing commission, so if the right-of-way vacation is approved, the land would become part of the housing commission property. In a separate vote, the planning commission also recommended approving that request.

When the project was in front of the planning commission, planning staff noted three issues that need to be resolved before the project gets approval from city council:

The parcel containing two duplex buildings also owned by the Ann Arbor Housing Commission in the northeast corner of the site must be combined with the subject site, forming a single parcel as a requirement for issuance of any permits.

The legal description and comparison chart data must be confirmed to include the duplex parcel.

The northern-most parking stall, nearest the connection to Vine Court, must be relocated outside of the minimum front setback area.

According to the staff memo, after June 3 the city’s traffic engineer reviewed the proposed new connection from Seybold Drive onto Dexter Avenue, and concluded that sight distances from all approaches are acceptable. He suggested that the pavement markings on Dexter should be refreshed.

The reconstruction of North Maple Estates is part of an ongoing effort by the housing commission to upgrade the city’s housing stock for low-income residents. At the planning commission’s May 6, 2014 meeting, AAHC executive director Jennifer Hall had made a presentation about the initiative, which includes seeking private investors through low-income housing tax credits.

121 Kingsley West

Rezoning for 121 W. Kingsley Street for a proposed new development is getting initial consideration by the council on Aug. 18. The project calls for rezoning the site from a planned unit development (PUD) to D2 (downtown interface). The development would include renovating the existing two-story, 2,539-square-foot building, plus constructing two additional buildings: (1) a 3.5-story addition to the existing building; and (2) a 4.5-story structure at the southeast corner of West Kingsley and North Ashley. In total, the development would include 22 units and 40,689 square feet. The estimated cost is $6.5 million.

The rezoning will be on the council’s agenda, but the site plan will not come before the council until the zoning is considered for a second and final vote. The Ann Arbor planning commission’s recommendation of approval for the site plan and the rezoning came at its July 15, 2014 meeting.

Rendering of 121 Kingsley West project, looking south from Kingsley. The existing building is in the left foreground.

Developers are Tom Fitzsimmons, Peter Allen and Mark Berg. The architect is Marc Rueter.

There would be 29 parking spaces below the buildings – though only two spaces are required, based on residential premiums that the project is seeking. The premiums give the project additional floor area, compare to what’s allowed by right. An elevator for each building will be accessible from the parking level. The parking level of the east building will include a bike room with 14 spaces.

According to a staff report, the project’s development agreement will address “easements for encroachments onto the City right of way by the existing building, onsite stormwater management, verification of LEED points, six required footing drain disconnects, future façade alterations, and the contribution to Parks and Recreation Services.” [.pdf of staff report]

Planning commissioners unanimously recommended approval of the rezoning, site plan and development agreement. However, only five commissioners on the nine-member body were present, and the commission’s bylaws stipulate that approval requires six votes. So the project was forwarded to city council for consideration with a recommendation of denial from the commission. Wendy Woods, the commission’s chair, assured the developers that city council would be informed that the project secured unanimous support from all commissioners who were present.

The project is on the same site as a previously proposed project by Peter Allen called Kingsley Lane. That had been envisioned as a larger development with 46 units in a complex with two “towers” – at four and nine stories. According to a 2006 Ann Arbor News article, pre-sales of the units were slower than expected because of the struggling housing market, and ultimately financing fell through. At a July 9, 2013 planning commission work session, planning manager Wendy Rampson reported that the developers had lost the property to the bank, but subsequently secured the land and were expected to submit a new site plan.

Taxicab Ordinances

Getting initial consideration by the council on Aug. 18 are two changes to the city’s taxicab ordinance that have been recommended by the city’s taxicab board. The recommendations come in the context of the entry of Uber and Lyft into the Ann Arbor market. The companies offer the arrangement of rides through mobile networks with drivers who operate their own vehicles. Both companies have continued to operate in Ann Arbor, despite cease-and-desist orders from the city. [.pdf of cease-and-desist sent to Lyft] [.pdf of cease-and-desist sent to Uber]

The vote to recommend the ordinance changes came at the July 24, 2014 meeting of the taxicab board.

These issues were also discussed at three monthly meetings of the taxicab board prior to that, on April 23, 2014, May 22, 2014 and June 26, 2014.

One ordinance change would establish certain parameters to mitigate possible negative consequences to the setting of a very high maximum allowable taxicab rate, under which taxicab companies might eventually compete. Those parameters include a requirement that a taxicab company commit to a single rate annually and that the rate be advertised in a vehicle with signage in letters one-inch tall.

The current structure for fare regulation already allows for the adoption of a maximum rate to be adopted by the city council. Currently the maximum rate in Ann Arbor is $3 to get in, $2.50 per mile, and 40 cents per minute waiting time. Those maximum rates were last adjusted upwards three years ago, on May 16, 2011, in response to gas prices that had nudged past $4 per gallon. At that time, the taxicab board indicated it did not anticipate considering another rate change until the gas prices were over $5 for at least two consecutive months.

So the taxicab board’s thinking is not being driven by gas prices, which are currently between $3.75 and $4 in the Ann Arbor area. Instead, a possible increase in allowable fares is based on concern that the taxicab industry in Ann Arbor might not be able to survive unless taxis are allowed to charge more.

At its July 24 meeting, taxicab board members discussed the possibility of delaying their recommendation on the ordinance changes until the board could also make a specific recommendation on the price point for a very high maximum rate. But ultimately board members felt that a recommendation on a price point for a new maximum rate could come later – especially because ordinance changes require a first and second reading in front of the council. There would be a window of opportunity between those readings to make a recommendation on the higher maximum. The taxicab board’s next meeting is scheduled for Aug. 28 at 8:30 a.m. at city hall.

The other ordinance change to be given initial consideration would require that all drivers for hire – whether they are taxicab drivers or drivers who work for Uber or Lyft – register with the city, maintain proper insurance for their vehicles and acquire commercial plates. Commercial plates would require that the commensurate commercial insurance is carried.

And the absence of commercial plates on a vehicle that is observed to be used for picking up or dropping off passengers would provide a primary reason for a traffic stop by Ann Arbor police. At the taxicab board meetings over the last few months, representatives of the taxicab industry argued that the state statute regulating limousines already gives the city the ability to enforce against Uber and Lyft drivers.

Deer Management

Attached to the Aug. 18 city council agenda is a report from the city administrator outlining issues and options for management of the urban deer herd in Ann Arbor. Based on that report is a resolution, sponsored by Sabra Briere (Ward 1) and Jane Lumm (Ward 2), that would accept the report and appropriate $20,000 from the general fund for development of a “community endorsed deer management plan.” [.pdf of Aug. 14, 2014 deer management options report]

The council had directed the preparation of the report on various options in a resolution approved at its May 5, 2014 meeting. The report was to have been delivered to the council by July 31.

Fall 2015 is the earliest date identified in the report as a possible timeframe for a culling of the herd.

Before developing a specific plan – that could involve killing deer or not – input from Washtenaw County Parks and Recreation and the University of Michigan would be sought. And the Michigan Department of Natural Resources would need to approve any plan for deer management. The Aug. 14 report includes descriptions of deer management plans in other Michigan cities that range from ordinances prohibiting the feeding of deer to culling programs that shut down city parks and prescribe shooting lanes for archers.

City of Ann Arbor staff estimate that six months would be needed for public engagement. That public engagement could start within 45 days of city council approval to proceed.

Estimated staff time to develop the specific plan is 160 hours, according to the Aug. 14 report. Contractual public engagement and support to develop a management plan are estimated at $20,000.

Other facts included in the plan are the fact that neither city parks nor golf courses have had vegetation damage by deer. The cost to the city for disposing of deer carcasses in fiscal year 2014 was $5,850.

Estimated cost to kill 40-50 deer in the city of Ann Arbor is $25,000-$27,000 per year. That amount includes city staff administration cost in the amount of $14,000.

All deer-car accidents in Washtenaw County from 2004 through 2013 are plotted in the dynamic map below. Map is by The Chronicle with data from michigantrafficcrashfacts.org

From left: Scott Betzoldt of Midwestern Consulting, Ann Arbor housing commission executive director Jennifer Hall, and John Mouat, project architect for AAHC’s proposed development at 3451 Platt Road.

They sent the rezoning request for the 3451 Platt Road property – R1C (single-family dwelling district) and R2A (two-family dwelling district) to R4B (multi-family dwelling district) – to the city council with a recommendation of approval. However, commissioners postponed consideration of the site plan for the five-building, 32-unit project, amid concerns about the site’s location in the floodplain and stormwater management.

Zoning and site plan approval must ultimately be given by the city council. However, the zoning approval will require two votes by the council at two separate meetings – because changes to the zoning code are actually changes to a city ordinance. So the delay on the approval of the site plan would not necessarily delay the project, as long at the site plan is put in front of the council for consideration by the time the council takes a second vote on the rezoning.

AAHC is hoping that the zoning and site plan approval can be obtained from the city council by sometime in mid-October, because that will help support a grant application.

Several residents who live near the proposed site spoke against the project during the public hearing on Aug. 6, while advocates for more affordable housing spoke in support of it. That public hearing will be continued when the site plan is next taken up by the commission.

The question of whether those speakers will be allowed to speak again at that same public hearing is the type of issue that was addressed in a different item handled by the commission at its Aug. 6 meeting. The commission approved revisions to its bylaws, including one stipulating that people who have already spoken at a public hearing can speak at a continuation of that public hearing only at the discretion of the planning commission chair – or if a proposal has changed in a material way between the initial portion of the hearing and the continued portion.

Revisions to the planning commission bylaws will be forwarded to the city council for approval.

AAHC Platt Road Project

At its Aug. 6 meeting, the Ann Arbor planning commission considered two actions related to an Ann Arbor housing commission project at 3451 Platt Road.

Aerial view of 3451 Platt.

The first was a rezoning proposal on 3.1 acres – from R1C (single-family dwelling district) and R2A (two-family dwelling district) to R4B (multi-family dwelling district). The site includes a property currently owned by AAHC, as well as an adjacent parcel that’s being purchased by the city on behalf of AAHC. The rezoning request needs approval from the city council, in a two-step process.

In a separate item, the commission considered a recommendation on a proposed site plan for the low-income housing development, to allow AAHC time to address staff concerns regarding the impact on natural features. The site plan will also need city council approval. AAHC hopes to have a decision on the zoning and the site plan from the city council by mid-October, to enhance a grant application.

The project calls for demolishing four single-family homes and one two-family building, and constructing a 32-unit apartment complex with five buildings, 61 parking spaces, a playground, and a community building. The new apartments will include: 8 one-bedroom units; 12 two-bedroom units; 6 three-bedroom units; 2 four-bedroom units; and 4 five-bedroom units.

Two of the proposed buildings would be in the floodplain, which raised concerns from city staff. The AAHC is working to address those concerns – possibly by eliminating or reducing the number of buildings in the floodplain. It’s expected that the AAHC can address the issues raised by city staff so that the site plan can return to the planning commission at its Aug. 19 meeting. [.pdf of planning staff report] [.pdf of June 28, 2014 citizen participation meeting report]

This project is part of major renovations and improvements the commission is making to its low-income housing inventory. For background on the AAHC process of renovating its properties, see Chronicle coverage: “Public Housing Conversion Takes Next Step.”

Alexis DiLeo of the city planning staff.

This project is not the same site as a county-owned property on Platt Road, which is also being considered for affordable housing.

City planner Alexis DiLeo gave the staff report on the project. She described how staff had considered how modifications might be made under a “planned project” designation – to allow a single mid-rise building 6-9 stories tall, or to allow decreased side setbacks and building spacing. But those decreased setbacks might not be desirable to neighbors, she said. DiLeo’s remarks on those “planned project” modifications were met with headshaking from some in the audience.

On the rezoning issue, DiLeo commented that the R4B zoning district allows for every type of dwelling unit and noted that the parcel is big enough to be zoned with its own zoning designation. The city staff from various departments are providing feedback on the site plan proposal, DiLeo said, and the systems planning department had just completed its comments – so the AAHC has not had time to examine those comments. The city’s floodplain coordinator [Jerry Hancock] does not support the existing design, she noted.

The staff were making a split recommendation – to recommend the rezoning, but to delay the site plan. Given the two-step approval process that the council must follow for changes to zoning regulations – with an initial and final vote taken at two separate meetings – the site plan should be able to catch up and could go to council for action at the same time the zoning is considered for final approval, DiLeo thought. That would be in mid-October, she said, “if all the stars align.”

Planning commission chair Wendy Woods indicated that Ron Woods, her husband, serves on the AAHC board. She had no financial interest in the project, but said that she could recuse herself at the pleasure of the commission. None of the other commissioners objected to Woods’ participation in the deliberations and vote on the project.

AAHC Platt Road Project: Public Hearing

The public hearing on this project drew 17 speakers.

Sarah McCallum told the commission she lives within 1,000 feet of the project. She’s been a homeowner for 10 years. She had several concerns, she said. One concern was that she’d attended a citizens participation meeting in February held at the Malletts Creek branch of the Ann Arbor District Library. The site plan presented at that meeting was drastically different from the one now being presented. The current plan has a scope that is exponentially larger, she said – up to 78 bedrooms. She also had concerns about the floodplain. The fact that the buildings won’t have basements means that if there were a storm or tornado, residents would have nowhere to seek shelter.

From left: Joan Doughty, executive director of the nonprofit Community Action Network (CAN), and housing commission executive director Jennifer Hall.

McCallum also told the commission that traffic in the morning is very congested – because the road had been reduced to two lanes and two bike lanes. The project would result in additional congestion, she said. Property values since she purchased her home started off nice, then decreased but have started to recover. She was concerned about the negative impact of the project on surrounding property values. She questioned why affordable housing projects were being “pushed on” that neighborhood? The neighborhood already had the Hikone project [also operated by AAHC].

She was not opposed to affordable housing – but the proposed project was too dense. She noted that 60% of students at the nearby Mitchell Elementary and Scarlett Middle School qualified for free or reduced lunches. She wondered if the neighborhood could afford additional affordable housing units. She reiterated that she was not opposed to affordable housing. She asked the commission to postpone action, saying that half the people who would have attended a July 28 public meeting weren’t in town.

Julie Steiner, former executive director of the Washtenaw Housing Alliance, spoke in support of the project. While previous speaker, Sarah McCallum, thought the project was dense, Steiner called the 32 units acceptable. A different developer could build more units than that, she pointed out. This project is a chance to put in more affordable housing – in a neighborhood with good schools and transportation. The project is recommended to be built to “green” standards, with the possibility that solar panels will be installed, Steiner said. AAHC is also thinking of adding a community center so services can be provided on-site and children have somewhere go and something to do. No matter where we try to put affordable housing, neighborhoods will object, Steiner ventured. But the city only has a limited amount of land.

Flo Burke told the commission that the Aug. 6 meeting was the third one she’d attended on this project. She contended that the notes about those meetings that the AACH had provided to the planning commission had not reflected a lot of the comments made at the meetings. There were a lot of people who’d attend the meetings who didn’t think the project was a good idea, she said – like Sarah McCallum, who’d led off the public hearing. Burke told the commission that she lived on Springbrook. Neighbors on Springbrook are not opposed to public housing or low-income housing, she said. And in fact many of them are low-income residents themselves. She noted that she’d received money from a community development block grant to renovate her house. She pointed out that public housing at Hikone is located not far from the proposed project. She asked the commission to pay attention to residents and not to affordable housing advocates.

Paul Zsenyuk told the commission that he lived across the street from the proposed project. He’d lived there for 27 years and paid taxes. He’d put money into his house fixing it up, he said. Things had reached a point where he had a hard time going to retrieve his mail from the mailbox on Platt Road because there is so much traffic. He told the commission that he was 61 and would be retiring. He didn’t want to sit on his porch and look at that development. He liked the peace and quiet of the property now, and he didn’t want that changed, concluding, “This is not acceptable to me at all.”

Tracy Williams introduced himself as a member of Camp Take Notice, MISSION and Camp Misfit. He understood that there’s a lot of need for affordable housing, he told the commission. Affordable housing should stay affordable and not go up, he said. About the development of the land, he said, this is Ann Arbor and we all knew it was going to grow.

Wendy Woods, chair of the planning commission.

Peg Ball addressed the commission from her wheelchair. She told the commission she was really excited about this development. She’d spoken with the architect before the meeting [John Mouat]. Many new developments are built with 8-10 or 20-step stairs. But this proposed development includes “visitability” – and that means that every unit will be enterable by people with disabilities. That’s something that’s needed, she said: People with disabilities want to be a part of the community and be able to visit neighbors, just like able-bodied people do.

Seth Best told the commission that he lived at the corner of Packard and Platt. As someone who needs affordable housing, he was very excited about the proposed project. The proposed design makes it looks like a residential community as opposed to an apartment complex, he said. As far as the concern that during a tornado, a house with no basement would have no place to offer shelter, Best told the commission that people down South live in houses built on slabs and they survive bad weather. The 78 bedrooms that would be built as a part of this project should be considered in the context of the 500 units that are needed, he said. Some people have to choose between sleeping on the street or visiting the shelter, he said. He relied on disability payments, which were $1,000 a month and he was paying $690 a month for a one-bedroom apartment. He thanked god he had a Section 8 voucher. He’d come to Ann Arbor because it was safe, and he was also staying because he expected it would stay that way. Best concluded his remarks by congratulating Sabra Briere on her run for mayor, saying he was sorry that it didn’t work out – but she’d run a wonderful campaign. [Briere is a city councilmember who also serves on the planning commission.]

Greg Pratt addressed the issue of the floodplain by telling the commission that Swift Run ran behind his house. His house is built on a slab, because that’s the way it needs to be built given that the Swift Run drain is that close. He’s a member of MISSION, and that group works with hundreds of people who have no place to go at night. He was in support of the AAHC project.

Tom Snoblen said he’s in favor of Section 8 housing. But he’d bought his house as an investment. And he really didn’t want to see a big building like that across the street from him. He wanted to see the zoning stay the same.

Abdul Al-Samadi told the commission that he and my family would be affected as they live at 3451 Platt, one of the houses that is proposed to be demolished.  They love their neighborhood and  they have a strong sense of community, he said. The proposal will construct a big building in a field, he said – where they enjoy playing soccer. He felt the project is not going to be feasible, because it’s going to be overcrowded. Platt Road is crowded as it is, he said.

Judy Shapiro told the commission she lived right across the street from the proposed project. She and her husband had bought the house they live in 13 years ago, and they knew that the AAHC property was located across the street from theirs. But they thought it would keep the same zoning. Right across the street the zoning is for single family. There is supposed to be a process for changing the zoning, she said. There were a lot of angry people at the citizens participation meeting – but she didn’t see that reflected in the AAHC’s report on that meeting.

Caleb Poirier told the commission that his nonprofit owns a property on Stone School Road about 1 mile from the location of the proposed AAHC project. He ventured that those who live near a property tend to “mentally lay ownership beyond their property lines.” If you want to maintain a low-density environment, then you move into a subdivision to secure that type of density, he said. The R4B zoning allows for 15 units per acres – so 45 units. But only 32 units are proposed to be built. He also wanted to draw the commission’s attention to the people who were not at the meeting that night – those who would be living in this project.

Tim Colenback, a member of the AAHC board.

Joan Doughty allowed that she lived nowhere near the project, but she works for Community Action Network (CAN), which is the service provider for Hikone. [Doughty is CAN's executive director.] She was there of her own volition. The AAHC Platt Road proposal is exactly the kind of proposal that would work, she said. Hikone has 29 units and Green Baxter has 23 units. At that size, there is a challenge achieving a critical mass for programs, she said. But 32 units is a perfect size. She also liked the variable sizes of the apartments that are proposed. Sometimes a family gets larger and smaller – so it’s awesome for kids if they don’t have to move to a different community as the family grows. AAHC is an excellent steward, she said. Doughty also highlighted the proposed community center as a benefit.

Tim Colenback, who serves on the AAHC board, told commissioners there are a lot of reasons to support this project. It is only a small development, he said, and it’ll be an improvement over what’s there now. The buildings will have high quality construction with green standards beyond what is required by the city.

But real reason he wanted to support the project is because of the people who will be served. The community has had a crisis for some time, he said. People who do the difficult jobs in the city can’t live here – those who clean our buildings and serve our food. Some of our low-income housing has been converted to market rate, he noted. His polling location for elections is at Arrowwood Hills Cooperative housing. It’s just a stone’s throw – because he lives near there, he said. He has many great friends who live at Arrowwood. He was very glad they didn’t go market rate because there is a large group of low- and moderate-income people there. He asked planning commissioners to please meet the needs of 32 families who need this kind of housing.

AAHC executive director  Jennifer Hall noted that the property had been owned by the city of Ann Arbor for over 40 years – and it was purchased to be affordable housing. It never went through the process of zoning, she said. She didn’t know why only four units were built there. About the citizen participation meeting, Hall allowed that there’d been a lot of yelling and anger. She characterized most of the opposition as being against developing the property on the west side of Platt, which was not part of site plan. The reason the proposal had been increased from 26 to 32 units was because the AAHC had been approached by the owner of the adjoining parcel with a duplex, so the project now comprises three parcels instead of two. The density of the three-parcel project, she explained, is actually less than the density was as a two-parcel project. It’s less density than Colonial Square, she noted.

Scott Betzoldt of Midwestern Consulting and John Mouat of Mitchell and Mouat Architects wrapped up the public hearing with a description of the site plan.

AAHC Platt Road Project: Commission Discussion – Rezoning

Diane Giannola asked for clarification about the staff preference to delay on the site plan, but to send the rezoning proposal to the city council with a recommendation of approval.

Planning commissioner Diane Giannola.

DiLeo explained that the city planning staff is doing the best it can to set the AAHC up for a possible city council approval by mid-October. AAHC is applying for a grant, and if the site plan and zoning approval is completed by mid-October, the AAHC gets additional points on its grant application. There’s “automatic dead time” between the first and the second readings of the zoning change in front of the city council, DiLeo explained.

Giannola expressed some concern that the site plan might be completely different by the time it reached the city council, and might not be compatible with the R4B zoning. DiLeo explained that R4B allows for a lot of flexibility and would likely be consistent with anything that AAHC might propose.

Eleanore Adenekan asked some questions about the proposed detention pond. It was proposed to be about four feet deep.

On the specific question of the rezoning, Jeremy Peters stated his support for the rezoning, saying that it would allow the development of additional affordable housing, which was a community goal – as reflected in the sustainability framework. He also said the rezoning would provide site improvements that would benefit the broader neighborhood.

Ken Clein asked DiLeo what criteria are used to evaluate whether the rezoning would have a negative impact on the area. DiLeo clarified that the claim in the report about a lack of any negative impact was the AAHC’s response on the application for rezoning, not the planning staff’s conclusion. But she gave a hypothetical example of a proposed rezoning to allow manufacturing. Her professional planning opinion would be that rezoning to manufacturing would have a negative impact on public welfare and property rights. Or if it were rezoned to commercial, which would allow a Target to be built there, then the traffic and intensity of land use would be impactful on the area.

Clein concluded that the proposed AAHC project was a little different from what the neighbors are accustomed to, allowing that it’s a little more dense than what it is now. Clein cautioned against thinking of this as “poor people housing.” Some back-and-forth between Clein and AAHC executive director Jennifer Hall clarified how residents of AAHC units are screened.

Sabra Briere asked for the maximum number of units could be built under the existing zoning. Hall indicated that Midwestern Consulting’s Scott Betzoldt had calculated that number to be 20. Briere concluded that it would be an increase in density. Briere asked about turf pavers that were mentioned in the site plan – which were explained to be there to allow fire trucks to have access. Briere said she continued to be hopeful that more open space could be provided on the site. She said that according to the description of R4B, it is supposed to be suitable for infill development for moderate density – which she concluded the AAHC project seemed to be.

Outcome: The planning commission voted unanimously to recommend rezoning of the parcel to R4B.

AAHC Platt Road Project: Commission Discussion – Site Plan

The discussion by planning commissioners about the site plan focused on the natural features and the floodplain.

Planning commissioner Ken Clein.

Giannola asked how anything could be built in the floodplain. DiLeo explained that buildings can be constructed in the floodplain, if they are elevated. She noted that the city’s floodplain coordinator does not support this project as proposed.

Briere was concerned about the amount of impervious surface and increased runoff. She also expressed some concerns on an aesthetic level – saying there was not enough distinction between one unit and another. In an allusion to her mayoral campaign, she said after spending a lot of time in the last few months walking through residential neighborhoods, she’d observed that there were always ways that people had made their homes their own. She encouraged the architects to look for opportunities to make the units more human and less consistent in pattern and design to the point that when they deteriorate they’ll all deteriorate the same. She also encouraged that AAHC heed the concern about soccer-playing families and that there be space to run around.

Clein questioned why 61 parking spaces are being proposed when only 48 spaces are required. Hall explained that there are complaints at other AAHC sites about the lack of parking, and pointed out that there is no on-street parking at the site.

After some additional discussion, the commission moved towards a vote to postpone. Peters wanted to be sure that the public hearing would be continued, whenever the site plan was back in front of the planning commission, noting that it was not certain when that might be.

Outcome: The commission voted unanimously to postpone consideration of the site plan.

Revision to Bylaws

At its Aug. 6 meeting, the Ann Arbor planning commission considered revisions to its bylaws related to public hearings.

Planning commissioner Jeremy Peters.

At the commission’s July 15, 2014 meeting, planning manager Wendy Rampson had introduced staff recommendations for changes to the bylaws, which had also been discussed at a July 8 working session. She noted that when revisions to bylaws are being considered, the commission must provide notice at a meeting before that potential action. That public notice happened on July 15.

Planning commissioners had originally adopted similar revisions to their bylaws at a Feb. 20, 2014 meeting. Such revisions require city council approval. However, the city attorney’s office did not forward the Feb. 20 changes to the council for consideration. There was no action until July, when assistant city attorney Kevin McDonald provided suggested revisions to the bylaws related to public hearings. Those were the changes that were presented to commissioners at their July 15 meeting, and considered on Aug. 6. [.pdf of revised bylaws regarding public hearings] [.pdf of bylaws staff memo]

The main changes considered on Aug. 6 are in Sections 3 and 5 of Article 5 – Public Hearings. In Section 3, the changes eliminate the ability of the commission’s chair to modify or waive the speaking time limitations. Instead, the changes stipulate that the entire commission would have to make that decision via a majority vote.

The changes for Section 5 relate to the continuation of a hearing, and are as follows [deletions in strike-thru, additions in bold]:

Section 5. At the discretion of the Chair, or by vote of a majority of the members present, public hearings may be continued to another date. meeting, but will not be deemed to be a new hearing but a continuation of the original. If a public hearing is continued, individuals who have not previously addressed the Commission during the public hearing may address the Commission following the requirements of Section 3. Individuals who have addressed the Commission previously during the public hearing may only address the Commission for additional time (as limited by Section 3) during the continued public hearing if the Chair, with the consultation of Planning and Development Services staff, determines that: 1) additional public feedback is necessary, or 2) a specific petition has materially changed since the date of the original public hearing date. Agendas for continued public hearings shall specify whether members of the public shall be granted additional time to speak.

There were no changes suggested for the revisions that were passed by planning commissioners on Feb. 20 related to interactions with city councilmembers. That revised section states:

Section 9. A member of the City Council shall not be heard before the Commission during the Councilmember’s term in office.

The revisions must be approved by the council before taking effect.

Revision to Bylaws: Commission Discussion

Planning manager Wendy Rampson noted that these changes had been presented to the commission at its July 15 meeting. The bylaws changes clarified how public speaking time at public hearings is regulated. The intent is to make sure the public and commissioners understand whether someone can speak again at a public hearing if it is continued from one meeting to the next.

Rampson explained the basic rule is that there’s an opportunity for a person to speak at a public hearing for three minutes – or five minutes if the person is speaking on behalf of a neighborhood group. The planning commission can waive the time limit through a majority vote, Rampson noted. The new section, as proposed, would clarify that if a public hearing is continued to the next planning commission meeting, a person who spoke at the initial meeting’s portion of the public hearing can’t speak at the continued hearing.

However, the chair of the commission can, in consultation with the staff, determine to allow someone to speak again – if there is some compelling reason, or material changes have been made in a proposal since the initial portion of the public hearing was held.

Jeremy Peters noted that he was the one who had originally proposed this change to the bylaws. The language in the proposal now more closely meets the intent of what he had originally proposed – so he was fully in support of it.

Planning commission chair Wendy Woods got clarification that changes to the planning commission’s bylaws are subject to city council review and approval. Until the council approves the changes, the commission will operate under the current rules.

Kirk Westphal thanked Peters and everyone who pushed it through. He noted there’d been a lot of back-and-forth with the city attorney’s office on the change to the bylaws.

Outcome: The planning commission unanimously approved the changes to its bylaws.

Minutes of Previous Meeting

The usually perfunctory approval of minutes from previous meetings received some detailed discussion. Kirk Westphal asked that the minutes from the May 20, 2014 meeting be corrected, to insert the word “no” in the following passage that reported what he’d said [insertion is denoted in bold]:

Martin said they are confident that it will be extremely active and with a hotel, there will be people coming into that building all the time so the use itself is built in activity. He said he would like to have the flexibility as there are still many unknowns but he believes restaurant or retail will be on the ground floor. He asked if Westphal wanted him to commit to office use.

Westphal clarified no office or financial institution uses.

By way of background, Westphal’s disfavorable view of financial institutional uses for ground-floor, street-facing contexts is well documented.

Planning commissioner Kirk Westphal.

In 2009, as the Ann Arbor Discovering Downtown (A2D2) rezoning legislation was moving through the approval process, he wrote a guest op-ed piece for the Ann Arbor News that argued for a requirement that street-facing, ground-level land uses in the downtown should be required to be “active.” Banks and offices are not considered to be active uses. The “active use” requirement was not adopted in the final rezoning of downtown.

Consideration of the June 3, 2014 meeting minutes was postponed by the commission. They had been completed just the previous day, planning manager Wendy Rampson told the commission. So staff was requesting postponement – so that the commission could have a chance to review them.

Outcome: The commission approved the May 20, 2014 minutes as amended, and postponed approval of the June 3, 2014 minutes.

Present: Eleanore Adenekan, Sabra Briere, Ken Clein, Diane Giannola, Kirk Westphal, Wendy Woods, Jeremy Peters. Also: City planning manager Wendy Rampson.

Absent: Bonnie Bona.

Next meeting: Tuesday, Aug. 19, 2014 at 7 p.m. in council chambers at city hall, 301 E. Huron. [Check Chronicle event listings to confirm date.]

The proposal from developer Alex de Parry is to demolish an existing car wash at 318 W. Liberty and build an 11,910-square-foot structure with seven residential condominiums – five two-bedroom and two three-bedroom units. Each condo will have its own two-car tandem garage for a total of 14 parking spaces, although no parking is required.

The plan received a unanimous recommendation of approval from planning commissioners at their July 1, 2014 meeting.

Rendering of Mark Condominium proposal, as viewed from West Liberty next to the former Moveable Feast building.

The lot, on the north side of Liberty, is east of the historic Peter Brehme house at 326 W. Liberty and located in the Old West Side historic district. The historic district commission issued a certificate of appropriateness for the project on March 13, 2014. It’s located in Ward 5 and is zoned D2 (downtown interface).

The project would require two footing drain disconnects or the equivalent mitigation, according to a planning staff report. [.pdf of staff report]

In May, De Parry was told that the existing six-inch water main in West Liberty Street would need to be upsized to a 12-inch water main. The city staff told him that the six-inch main wouldn’t have the capacity to handle the additional development, in particular the building’s fire-suppression system. That was the reason for postponement at the planning commission’s May 20, 2014 meeting.

At that time, De Parry told commissioners that the development team had just been informed about the issue, and they were analyzing the budget impact and alternatives that they might pursue.

The current agreement, recommended by commissioners on July 1, is for De Parry to pay for installation of an eight-inch water main, rather than the 12-inch water main.

This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron.

Action came at the council’s Aug. 7, 2014 meeting. The planning commission had voted to recommend approval of the site plan at its July 1, 2014 meeting.

The Delta Chi fraternity house at 1705 Hill St.

The fraternity plans to demolish the existing 4,990-square-foot house at 1705 Hill St. – at the northwest corner of Hill and Oxford – and replace it with a 12,760-square-foot structure on three levels, including a basement. The current occupancy of 23 residents would increase to 34 people, including a resident manager.

The house is now on the northwest corner of the site, and a curbcut for the driveway is located at the intersection of Hill and Oxford. The proposal calls for building the new house closer to the southeast corner of the lot, with a parking lot on the west side and a new curbcut onto Hill – away from the intersection. [.pdf of staff report]

The minimum parking requirement is for seven spaces, but the plan calls for 16 spaces on the parking lot. There will be a shed with spaces for 20 bikes, and another four bike spaces in the back yard.

The project is expected to cost $2.2 million.

The fraternity declined to make a recommended voluntary parks contribution of $3,100 to the city. A statement from the fraternity gives their rationale for that decision: “While we can see the merit of such a donation for a large, new development that may bring additional residents to the city, we feel that this is not fitting in our situation. The Delta Chi Building Association has owned this property continuously since 1947, and during that time has consistently paid our property taxes and special millage assessments designated for Parks and Recreation. During our 67 years of ownership, we believe that we have contributed much more than the contribution suggested to support the Ann Arbor Parks and Recreation system.”

In two separate votes at its July 1 meeting, the planning commission unanimously recommended approval of a site plan and granted a special exception use for the project. A special exception use is required because the property is zoned R2B (two-family dwelling district and student dwelling district). Fraternities are only allowed in R2B districts if granted special exception use by the planning commission. No additional city council approval is required for that.

Aerial view of 1705 Hill.

1705 Hill site plan.

This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron.

The council’s election-week meeting is held on Thursday instead of Monday.

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

The agenda is relatively light, with many of the items dealing with land-development and zoning matters – each of which have an associated public hearing. The consent agenda is packed with renewals of contracts for various software packages and computer maintenance.

In the category of land development and use, the council will consider a site plan that proposes to tear down the existing Delta Chi fraternity house at 1705 Hill Street and build a much larger structure in its place. Another site plan on the agenda is The Mark condominiums. That’s a proposal from developer Alex de Parry to demolish an existing car wash at 318 W. Liberty and build an 11,910-square-foot structure with seven residential condominiums – five two-bedroom and two three-bedroom units.

Also on the agenda is the initial approval of rezoning – from O (office district) and RE (research district) to ORL (office/research/limited industrial district) – that will be necessary for an expansion of the Gift of Life Michigan facility in Research Park. The proposal calls for building a three-story, 40,786-square-foot addition to connect two existing buildings at 3161 and 3169 Research Park Drive, which are owned and occupied by the nonprofit.

Also on Research Park Drive, a trio of items on the agenda relate to a future project that would construct six new buildings on six parcels, each with associated surface parking and storm water detention. One of the proposed buildings would be a tennis facility. The tennis facility would require an amendment to the ORL district, which currently does not allow outdoor recreation uses. The three associated items are: (1) an area plan; (2) rezoning of 16.6 acres from RE (research district) to ORL (office/research/limited industrial district); and (3) an amendment to the ORL zoning classification to allow the planning commission to grant special exception uses for recreational facilities.

The council will also consider a $200,000 contract with Reiser & Frushour P.L.L.C. to provide legal representation for indigent defendants. The city is required to provide such representation for those indigent defendants who might face incarceration if convicted.

A second large contract on the agenda is one with Carrier & Gable Inc. for the purchase of $480,000 worth of traffic signals. A third large contract is a three-year $727,545 agreement with Du All Cleaning Inc. for janitorial service at city hall, the Wheeler Service Center, the water treatment plant, senior center and other city-owned facilities.

Also to be considered by the council at its Aug. 7 meeting are a raft of items on the consent agenda covering various pieces of software used by the city in its regular operations. None of the contracts exceed $100,000, which means they can be voted on “all in one go” as part of the consent agenda.

Returning to the agenda on Aug. 7 is the Pontiac Trail sidewalk special assessment roll. That item had been postponed at the council’s July 21 meeting to allow additional time for residents to protest the assessment.

This article includes a more detailed preview of many of these agenda items. More details on other agenda items are available on the city’s online Legistar system. The meeting proceedings can be followed Thursday evening live on Channel 16, streamed online by Community Television Network starting at 7 p.m.

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

Site Plan: Delta Chi

On the council’s Aug. 7 agenda is a plan to tear down the existing Delta Chi fraternity house at 1705 Hill Street and build a much larger structure in its place. The planning commission voted to recommend approval of the site plan at its July 1, 2014 meeting.

The Delta Chi fraternity house at 1705 Hill St.

The fraternity plans to demolish the existing 4,990-square-foot house at 1705 Hill St. – at the northwest corner of Hill and Oxford – and replace it with a 12,760-square-foot structure on three levels, including a basement. The current occupancy of 23 residents would increase to 34 people, including a resident manager.

The house is now on the northwest corner of the site, and a curbcut for the driveway is located at the intersection of Hill and Oxford. The proposal calls for building the new house closer to the southeast corner of the lot, with a parking lot on the west side and a new curbcut onto Hill – away from the intersection. [.pdf of staff report]

The minimum parking requirement is for seven spaces, but the plan calls for 16 spaces on the parking lot. There will be a shed with spaces for 20 bikes, and another four bike spaces in the back yard.

The project is expected to cost $2.2 million.

The fraternity declined to make a recommended voluntary parks contribution of $3,100 to the city. A statement from the fraternity gives their rationale for that decision: “While we can see the merit of such a donation for a large, new development that may bring additional residents to the city, we feel that this is not fitting in our situation. The Delta Chi Building Association has owned this property continuously since 1947, and during that time has consistently paid our property taxes and special millage assessments designated for Parks and Recreation. During our 67 years of ownership, we believe that we have contributed much more than the contribution suggested to support the Ann Arbor Parks and Recreation system.”

In two separate votes at its July 1 meeting, the planning commission unanimously recommended approval of a site plan and granted a special exception use for the project. A special exception use is required because the property is zoned R2B (two-family dwelling district and student dwelling district). Fraternities are only allowed in R2B districts if granted special exception use by the planning commission. No additional city council approval is required for that.

The site plan does require city council approval, which is why it appears on the Aug. 7 agenda.

Aerial view of 1705 Hill.

1705 Hill site plan.

Site Plan: The Mark

On the council’s agenda is the site plan for The Mark condominiums just west of the railroad tracks on West Liberty Street.

The proposal from developer Alex de Parry is to demolish an existing car wash at 318 W. Liberty and build an 11,910-square-foot structure with seven residential condominiums – five two-bedroom and two three-bedroom units. Each condo would have its own two-car tandem garage for a total of 14 parking spaces, although no parking is required. The plan received a unanimous recommendation of approval from planning commissioners at their July 1, 2014 meeting.

Rendering of Mark Condominium proposal, as viewed from West Liberty next to the former Moveable Feast building.

The lot, on the north side of Liberty, is east of the historic Peter Brehme house at 326 W. Liberty and located in the Old West Side historic district. The historic district commission issued a certificate of appropriateness for the project on March 13, 2014. It’s located in Ward 5 and is zoned D2 (downtown interface).

The project would require two footing drain disconnects or the equivalent mitigation, according to a planning staff report. [.pdf of staff report]

In May, De Parry was told that the existing six-inch water main in West Liberty Street would need to be upsized to a 12-inch water main. The city staff told him that the six-inch main wouldn’t have the capacity to handle the additional development, in particular the building’s fire-suppression system. That was the reason for postponement at the planning commission’s May 20, 2014 meeting.

At that time, De Parry told commissioners that the development team had just been informed about the issue, and they were analyzing the budget impact and alternatives that they might pursue.

The current agreement, recommended by commissioners on July 1, is for De Parry to pay for installation of an eight-inch water main, rather than the 12-inch water main.

Rezoning: Gift of Life

The council will give initial consideration to the rezoning of property necessary for an expansion of the Gift of Life Michigan facility on Research Park Drive. The rezoning would change 6.55 acres from O (office district) and RE (research district) to ORL (office/research/limited Industrial district).

Aerial view of Gift of Life Michigan site.

The proposal calls for building a three-story, 40,786-square-foot addition to connect two existing buildings at 3161 and 3169 Research Park Drive, which are owned and occupied by the nonprofit. According to a staff report, the additional space will accommodate offices, a special events auditorium and “organ procurement suites.” The nonprofit’s website states that the Gift of Life is Michigan’s only federally designated organ and tissue recovery program. Cost of the expansion project will be $10.5 million

The city planning commission recommended approval of the rezoning at its July 1, 2014 meeting. Only the initial consideration of the rezoning is on the Aug. 7 city council agenda. Rezoning requires two council votes taken at separate meetings.

The changes would rezone the properties from office (O) and research (RE) to office/research/limited industrial (ORL). The parcel at 3161 Research Park Drive is currently zoned O. The parcel at 3169 Research Park is zoned RE. The plan is to combine those lots before the city issues building permits.

The project would reduce the four existing curb cuts to Research Park Drive to three, connecting one of the loop driveways to an existing driveway at the east end of the site. A parking lot at the back of the site will be expanded by 38 parking spaces. Two alternate vehicle fueling stations are proposed in parking spaces near the main entry, with the driveway at the center of the site providing access for ambulances. A new shipping and receiving facility will be located on the northeast corner of the site.

Rezoning, Area Plan, Special Exception: Research Park

A trio of items on the agenda relate to a future project at Research Park Drive that would construct six new buildings on six parcels, each with associated surface parking and storm water detention. One of the proposed buildings would be a tennis facility. The tennis facility would require an amendment to the ORL district, which currently does not allow outdoor recreation uses. The three associated items are: (1) an area plan; (2) rezoning of 16.6 acres comprising six parcels from RE (research district) to ORL (office/research/limited industrial district); and (3) an amendment to the ORL zoning classification to allow the planning commission to grant special exception uses for recreational facilities.

Recommendations of approval for these items came at the planning commission’s June 3, 2014 meeting. Initial approval was given by the city council for the rezoning items at its July 7, 2014 meeting. So a vote for approval at the council’s Aug. 7 meeting would be the final vote needed for enactment.

The six lots are undeveloped and total 16.6 acres. Four of the lots, on the southern end of the site, are owned by Qubit Corp. LLC; BMS Holdings LLC owns the northern two sites.

The proposed area plan – which is less detailed than a site plan – includes an indoor-outdoor tennis facility on one of the lots. It also includes five two-story buildings that could accommodate office, research, and limited industrial uses on the remaining lots, each with their own parking lot and access point to Research Park Drive.

Prior to construction, the project must go through the city’s site plan approval process, which might require a traffic impact study.

Aerial view showing Research Park Drive parcels.

Area plan for four sites in a proposed development on Research Park Drive. The image is oriented with east at the top.

Contracts

On the council’s agenda are three large contracts – one for indigent legal services, one for janitorial services and one for traffic signals.

Contracts: Legal Services

The council will consider a $200,000 contract with Reiser & Frushour P.L.L.C. to provide legal representation as court-appointed counsel to indigent defendants in the 15th District Court.

The court is required by law to appoint attorneys to represent indigent defendants when potential punishment if convicted includes the possibility of incarceration. According to the staff memo accompanying the item, Reiser & Frushour was selected from a pool of three firms that responded to a request for proposals (RFP). Besides Reiser & Frushour, the two other firms submitting proposals were: Washington, Friese & Graney; and Huron Valley Law Association. A selection committee consisting of the three 15th District Court judges reviewed the proposals and ranked the respondents. The contract covers the term of Sept. 1, 2014 through June 30, 2015.

Contracts: Traffic Signals

A second large contract on the agenda is one with Carrier & Gable Inc. for the purchase of $480,000 worth of traffic signals.

The list of signals covered in the contract includes:

• Varsity and Ellsworth pedestrian signal upgrade ($25,000)
• King George and Eisenhower pedestrian signal upgrades ($35,000)
• Maintenance operations, including wear-out and accident damage, and support of other city projects ($300,000)
• Addition of flashing yellow arrows for left turn movement at the following locations ($55,000): Fuller & Glenn; Barton & Plymouth; Plymouth & Broadway; Eisenhower & Stone School; Cedar Bend & Fuller; Fuller & Glazier Way; Fuller & Fuller Ct.; Fuller & Huron High
• Division and Catherine ($65,000)

The council is being asked to approve the contract with Carrier & Gable as a sole-source contract, because they are the only area distributor in Michigan and Indiana for the Eagle Signal Company. All of the city’s signalized intersections use equipment manufactured by Eagle. According to the staff memo accompanying the resolution, the advantages of sole-source supply for these materials include: reduced inventory requirements, as well as the need to train technicians in the repair of only one type of product.

Contracts: Janitorial Services

A third large contract on the agenda is a three-year $727,545 contract with Du All Cleaning Inc. for janitorial service at city hall, the Wheeler Service Center, the water treatment plant, senior center and other city-owned facilities.

The item had originally been scheduled to appear on the council’s July 21 meeting agenda. Responding to an emailed query from The Chronicle, city administrator Steve Powers explained that the item was delayed until the Aug. 7 meeting “to allow more time to evaluate the services of Du All during their probationary period.”

The locations and the cleaning schedule to be covered by the contract include:

• 911 Dispatch Center [Cleaned 7 days per week]
• Municipal Center [Cleaned 5 days per week]
• Wheeler Service Center [Cleaned 5 days per week]
• Water Treatment Plant [Cleaned 5 days per week]
• Veterans Memorial Park [Cleaned 5 days per week]
• Senior Center [Cleaned 4 days per week]
• Farmers Market [Cleaned 1-3 days per week depending on the season]

Sidewalk Special Assessment: Pontiac Trail

Appearing on the Aug. 7 agenda is the final vote on the special assessment for sidewalk construction on Pontiac Trail. It was postponed from the council’s July 21, 2014 meeting to allow additional time for one of the property owners to protest. The total cost that would be assessed to adjoining property owners is $72,218.

According to the staff memo accompanying the resolution, sidewalk construction would be done as part of the reconstruction of Pontiac Trail beginning just north of Skydale Drive to just south of the bridge over M-14. The project will also be adding on-street bike lanes and constructing a new sidewalk along the east side of Pontiac Trail to fill in existing sidewalk gaps and to provide pedestrian access to Olson Park and Dhu Varren Road. That’s part of the city’s Complete Streets program.

In addition to the sidewalk, approximately 1,960 feet of curb and gutter is being added north of Skydale along Pontiac Trail to protect existing wetland areas. [.pdf of Pontiac Trail sidewalk special assessment area]

Consent Agenda

The consent agenda is a collection of items grouped together on the agenda that are considered routine and may include contracts up to $100,000. The council votes on those items as a group, unless a councilmember asks that an item be pulled out of the consent agenda for separate consideration.

The Aug. 7 consent agenda is dominated with computer software items:

• Purchase order to Michigan Supreme Court State Court Administrative Office for Judicial Information System (JIS) in FY 2015 ($45,000). This covers the annual software licensing and hosting costs for the JIS case management software. JIS is provided by the State of Michigan Supreme Court State Court Administrative Office for the 15th District Court use in its day-to-day operations.
• Purchase order with Oakland County for CLEMIS (Courts and Law Enforcement Management Information System) Information Services for FY 2015 ($87,000). This gives the Ann Arbor police department access to shared information across multiple jurisdictions related to: computer aided dispatch (CAD), CAD Mobile, report management systems, fingerprinting and mug shots.
• Purchase order for annual maintenance and support of TRAKiT system and e-Markup annual license with CRW Systems Inc. for FY 2015 ($36,500). This system is used to track site plans and permits involved in land development – from initial concept through post occupancy compliance
• Purchase order with Azteca Systems for CityWorks enterprise license and annual maintenance and support agreement for FY 2015 ($60,000). This is a GIS-based asset management system used for maintenance activities. Service requests and work orders are based upon a customer request or an asset’s preventative maintenance schedule, and its location – which means that work can be managed by geographic location in addition to task type. If workers are already being sent to some area, they can do work that is due that is nearby as well.
• Purchase order to New World Systems for financial system annual software support and maintenance agreement for FY 2015 (not to exceed $70,000). The software provides monthly reporting and workflow routing for approvals of accounts payable invoices, accounts receivable, purchases, etc. The software allows city staff across departments to track the budget from the beginning of the budget planning process through the approval of the new budget.
• Purchase order with SEHI Computers for FY 2015 PC replacement program ($55,765). The staff memo accompanying this item notes that SEHI was selected as the lowest responsible bidder for pricing, technology, use of green technologies, power management technologies and ability to meet required bid specifications. But there’s not an indication of how many PCs are to be replaced under the program.
• Purchase order to BS&A Software for annual software maintenance and support agreement for FY 2015 ($26,000). This system is used for tax and assessment as well as the online hosting of tax and assessing data.

4:38 p.m. Staff responses to councilmember questions about items on the agenda are now available: [.pdf of Aug. 7, 2014 staff responses to agenda items]

4:40 p.m. Nine of 10 speakers signed up to speak during public commentary reserved time will address the topic of a boycott against Israel: Kamal Aggour, Mahamoud Habeel, Mohammad Aggour, Ayah Nimer, Mustafa Aggour, Aleddin Arukaff, Mozghan Savabieasfahani, Blaine Coleman and Jennifer Lewis. Thomas Partridge is signed up to talk about electing Mark Schauer as governor and improved access to public transportation. Two alternates are also signed up: Ossama Elayan, to talk about boycotting Israel; and Alan Haber to talk about World Peace Day.

6:25 p.m. Two stacks of yellow paper have been stacked at the public speaking podium – copies of tonight’s agenda. The sound of vacuuming is audible from elsewhere on the second floor of city hall. That kind of janitorial work is actually the subject of one of the items on tonight’s agenda – a 35-month contract with Du All Cleaning. [For additional background, see Contracts: Janitorial Services above.]

6:26 p.m. Thomas Partridge is first to arrive in the council chambers. He’ll be addressing the city council tonight on the topics of electing Mark Schauer as governor of Michigan and the need to increase public transportation services.

6:30 p.m. Partridge is listening to NPR on the radio. “After the break we’ll have the latest update from events in Gaza.” That will be the topic for nine of 10 speakers who have signed up for public commentary reserved time.

6:48 p.m. About a dozen people with white T-shirts with “Boycott Israel” printed on them are now here. Another dozen people have now joined them.

6:52 p.m. The back of the T-shirts read: “The people united, will never be defeated.”

6:54 p.m. The contingent of anti-Israel activists now numbers about 35 people or more.

6:59 p.m. Contingent of anti-Israel activists is now upwards of 50 people. They’re all moving to the center section of seating for maximum impact for the CTN cameras when members of their group address the council.

7:02 p.m. Only seven councilmembers are here so far. Missing are Margie Teall, Mike Anglin, Sabra Briere and Chuck Warpehoski.

7:02 p.m. AAPD has an officer standing in the rear off to the side.

7:04 p.m. Jane Lumm is congratulating Christopher Taylor on his primary election victory. Briere, Teall and Warpehoski have now arrived.

7:05 p.m. Anti-Israel contingent continues to add to their number.

7:06 p.m. AAPD actually has two officers here. One of them retrieves a agenda.

7:06 p.m. Call to order, moment of silence, pledge of allegiance.

7:07 p.m. Roll call of council. Anglin is not here.

7:07 p.m. Approval of agenda.

7:08 p.m. Outcome: The council has voted to approve tonight’s meeting agenda.

7:08 p.m. Communications from the city administrator. Steve Powers has no communications tonight.

7:08 p.m. Introductions. A proclamation is being given to Ann Arbor Teens for Kids to honor their volunteer contributions in the Ann Arbor parks – specifically for their efforts related to the skatepark grand opening and Huron River Day.

7:11 p.m. A representative of the group is introducing the roughly dozen students, most of them Pioneer High School students.

7:11 p.m. Public commentary. This portion of the meeting offers 10 three-minute slots that can be reserved in advance. Preference is given to speakers who want to address the council on an agenda item. [Public commentary general time, with no sign-up required in advance, is offered at the end of the meeting.]

Nine of 10 speakers signed up to speak during public commentary reserved time will address the topic of a boycott against Israel: Kamal Aggour, Mahamoud Habeel, Mohammad Aggour, Ayah Nimer, Mustafa Aggour, Aleddin Arukaff, Mozhgan Savabieasfahani, Blaine Coleman and Jennifer Lewis. Thomas Partridge is signed up to talk about electing Mark Schauer as Governor and improved access to public transportation. Two alternates are also signed up: Ossama Elayan, to talk about boycotting Israel; and Alan Haber to talk about World Peace Day.

At the July 7 and July 21 meetings of the council, speakers have addressed the council renewing their request – made at council meetings dating back more than a decade – that the council enact a policy boycotting city purchase of products from Israel. Speakers have asked that the council establish a public hearing on the topic. Most recently, mayor John Hieftje and Ward 4 councilmember Jack Eaton, in separate emails, have conveyed to anti-Israel activists that they would not support such a boycott or a move to establish a public hearing on the topic. [.pdf of Aug. 3, 2014 email from Hieftje to Mozhgan Savabieasfahani] [.pdf of July 30, 2014 email from Eaton to Mozhgan Savabieasfahani]

7:12 p.m. Hieftje stresses that only one person can speak at a time. He’s ticking through the set of rules – and says that signs need to be held toward the sides of the chambers so as not to block anyone’s view.

7:15 p.m. Thomas Partridge says he’s here to re-affirm the need to elect Democrat Mark Schauer as governor and Gary Peters as U.S. senator. They will bring about a more progressive environment. He calls for more public transportation, saying that the current system is too limited in scope. He calls for door-to-door service to all principle residential and government buildings. He calls for an expansion of the AAATA to a true countywide transportation system.

7:20 p.m. Kamal Aggour takes the podium to applause, with Blaine Coleman and Mozghan Savabieasfahani standing behind him. Aggour says that people don’t know what is going on the Middle East. He describes how one person he spoke to thought that the pyramids were in Israel. He’s showing the council a map of the area in 1948. He’s reviewing the Balfour Declaration of 1917. He describes how people’s houses have been taken from them. His remarks end with applause. Chants of “Boycott Israel” erupt. Hieftje gavels them down. He says that the next time that happens it will be taken off the speaker’s time. He says the council will move in a progressive fashion to conduct the meeting.

7:23 p.m. Mahamoud Habeel is reciting grim statistics about the deaths and injuries over the last several weeks in the violence in Gaza. One of them was his nephew. There were 20,000 buildings destroyed, he says, including his own family’s house. He’s paying taxes that are being used to destroy his own property and people, he says. Ten schools have been bombed, he says. A representative from the UN stood in front of the ruins of one of the schools and broke into tears, he says. He asks the council to divest from Israel. More chants of “Boycott Israel.”

7:26 p.m. Mohammad Aggour tells the council that the death toll in Gaza has doubled to 1,900 since the last time he addressed the council. He tells the mayor that he is not supporting the cause. He says that it’s time for Ann Arbor to become a leader. If someone were kidnapped here in Ann Arbor, people would go crazy, but there are thousands of people are dying and nobody is doing anything. He asks for a boycott of Israel – that’s something that is easy to do. He tells the council that they have the ability to call a public hearing, but they won’t do it. “We elected you guys to help us.” More chants of “Boycott Israel.”

7:29 p.m. Ayah Nimer is standing before the council as a voice for Palestinians. Americans have played a role in helping Israel, she says. The way to help our brothers and sisters in Gaza, she says, is to boycott Israel. There’s an app that will tell you which products to avoid, she says. She asks the council to imagine a resident of Gaza, who can’t get drinkable water. She describes how she keeps in touch with a 16-year-old girl in Gaza using Twitter. The girl is one of the thousands of people who have been silenced by Israel, she says, and that’s why she is speaking for her. Gaza is like an open-air prison, she says. More chants.

7:33 p.m. Mustafa Aggour says that hundreds and thousands of kids are being killed – with guns and tanks that we are paying for. Innocent women and children are being killed every day, he says, and we are supporting that. Israel has no right to take the Palestinian’s homeland and the U.S. has no right to support that. Americans stood up for Jews in Germany, he says, and they should stand up against this new Holocaust. They would come to attend council meetings in the future to call for a boycott. He says the council has the power to stop this, but they won’t. All they’re asking is for a boycott of Israel, he says. “Boycott Israel, that’s it,” he concludes. More chanting. Hieftje admonishes that only one person can speak at a time. The speaker invites the audience to recite in turn, which they attempt to do. Then the timer’s beep ends his speaking turn.

7:35 p.m. Aleddin Arukaff says he’s come to address the council not as a Muslim but as a human being. He’s just a kid, he says, who doesn’t want to see another kid die as a result of bullets and guns that they had helped pay for. More chants. He asks the council to imagine that someone comes to their house and just takes it. “I beg you guys, boycott Israel.” More chants.

7:39 p.m. Mozghan Savabieasfahani thanks the audience for coming. She’s turned away from the council to address the audience. She now turns back to the council. She asks Hieftje: “Is the life of an Arab child worth anything to you?” She tells the council that genocide is being funded by the U.S. She wants that to end. The way to do that is to schedule a public hearing on the boycott of Israel. “Who wants a public hearing?” “We do!” they reply. Thomas Partridge interjects a complaint that they are too loud. Savabieasfahani continues. Another woman interjects. Hieftje advises that only one person can talk at a time. Members of the audience point out that only one person is talking. The woman finishes her thought. More calls for a public hearing and applause finish out Savabieasfahani’s turn.

7:43 p.m. Blaine Coleman leads the audience in a chant of “Boycott Israel.” Coleman says that a resolution from the city council would have stopped Israel in its tracks. Hieftje reacts with a smile. The audience reacts negatively. Coleman shouts: “You racist dog!” The woman from the audience who spoke before tries again. This time Hieftje enforces the rule against ceding your time to another speaker. This provokes the audience to stand and chant. The council retreats to the work room.

7:46 p.m. AAPD officer advises the audience that they need to calm down. The council will come back, but when they do, the crowd needs to stay calm. If there’s another outburst like that, the council will go back to the work room and the officers will clear the room.

7:49 p.m. The AAPD officers have approached Coleman. They’re clearing the room. It’s not clear what specifically led to the decision to clear the room.

7:50 p.m. They’re now leaving. Lots of chanting, “Boycott Israel” as they leave. Chants have become quite loud.

7:51 p.m. Statements made include: “We are coming back with a thousand people.” “Cowards!”

7:53 p.m. Most of the activists are outside of the chambers, but still on the second floor. Chants of “Boycott Israel” are still audible from the hall. “People are angry. Their relatives are dead.”

7:54 p.m. It’s now quieted down. Councilmembers are returning to the table.

7:54 p.m. Hieftje has called the council to order again.

7:57 p.m. Jennifer Lewis is addressing the council about an experience she had at the zoning board of appeals (ZBA). She asks that the composition of the ZBA reflect the source of most of the appeals. She says that the people who spoke tonight don’t necessarily reflect the views of all the residents of Ann Arbor. She notes that the word “Hamas” had not been spoken tonight. When her family visited Israel, they had to sit in bomb shelters.

7:57 p.m. Communications from council. This is the first of two slots on the agenda for council communications. It’s a time when councilmembers can report out from boards, commissions and task forces on which they serve. They can also alert their colleagues to proposals they might be bringing forward in the near future.

8:03 p.m. Eaton relays regrets from Anglin.

8:03 p.m. Lumm notes that the campaigns had concluded on Tuesday [the day of the primary elections]. She says that the campaigns were positive and classy.

Briere is questioning whether one of the speaker’s statements was true – that the U.S. had supported Jews during the Holocaust. She says that the U.S. had not opened its doors. That doesn’t mean that any violence is justified – she wants only to correct the error of historical fact.

8:03 p.m. Kailasapathy says: “Every child’s life matters.” When human rights are violated, it affects all of us. In Sri Lanka on July 25, 1983, her house was burned along with those of others. She describes her experience in the civil war there: “I am the poster child of a civil war …They were killing all my friends,” she says. She’d seen people dying like those in the pictures that protesters were holding. Her voice is shaking, but she’s continuing to speak. She tells those remaining in the audience: “We do care, okay. Just because we go into that room [the council work room] doesn’t mean we’re running way.”

8:05 p.m. Warpehoski gives an update on the chicken ordinance. He’s also giving an update on greenway planning. His third update is on the Michigan Dept. of Transportation proposed widening of US-23. On Aug. 14 there will be a public meeting to discuss that proposal at the Northfield Township Hall, he says.

8:07 p.m. Warpehoski now questions the assertion of one of the speakers that the council had the power to stop the violence in Gaza. He is talking about the legal ability of local units of government to enact boycotts of foreign governments, citing a court decision. “The premise that we are somehow the locus of control is wrong,” he says.

8:09 p.m. Petersen reports that before the meeting she’d spoken with Ayah Nimer, who’d address the council. Petersen had completed a “Hands are not for hitting” program and had known her for several years. Petersen said that Nimer’s comments were balanced and had approached the council in peaceful manner; she could be a leader for others, she says.

8:09 p.m. Nominations. On tonight’s agenda are three nominations to city boards and commissions: Bob Guenzel as a reappointment to the Ann Arbor Downtown Development Authority; Stephen Raiman to the energy commission to replace Dina Kurz; and Nora Lee Wright to a vacancy on the housing and human services advisory board.

8:10 p.m. Hieftje says that he wants the activists to reflect on the image they are creating, of a raucous crowd shutting down a city council meeting. Some of the statements that Coleman had made were absurd, Hieftje says. There are limits to what the council and cannot do.

8:11 p.m. PH-1 Confirm Pontiac Trail sidewalk assessment roll. [For additional background, see Sidewalk Special Assessment: Pontiac Trail above.] No one speaks on this hearing.

8:12 p.m. PH-2 Rezoning of 16.6 Acres from RE (Research Dwelling District) to ORL (Office/Research/Limited Industrial Dwelling District). [For additional background, see Rezoning, Area Plan, Special Exception: Research Park above.] Thomas Partridge asks that this parcel be required to have accessible transportation.

8:12 p.m. PH-3 Approve the area plan for Research Park Lots 26-31. [For additional background, see Rezoning, Area Plan, Special Exception: Research Park above.] No one speaks on this public hearing.

8:13 p.m. PH-4 Amend zoning ordinance to allow outdoor places of recreation in the Office/Research/Limited Industrial (ORL) zoning district as a special exception use. [For additional background, see Rezoning, Area Plan, Special Exception: Research Park above.] No one speaks on this public hearing.

8:14 p.m. PH-5 The Mark Condominiums site plan. [For additional background, see Site Plan: The Mark above.] Thomas Partridge calls for a requirement of all site plans to have accessible transportation.

8:15 p.m. A representative from Perimeter Engineering is addressing the council. She’s reviewing flow capacity testing for the water main and she believes that the water main is already adequate to meet the needs of the project.

8:18 p.m. PH-6 Delta Chi site plan. [For additional background, see Site Plan: Delta Chi above.] Allen Lutes is representing the owner of the property, and providing background on their intent.

8:20 p.m. Thomas Partridge calls for a requirement that public transportation be made available at this site.

8:22 p.m. PH-7 Issuance of Bonds by the EDC for Glacier Hills Inc. The attorney for the Economic Development Corp. is addressing the council. He stresses that there are no new bricks-and-mortar projects associated with this bond issuance. It’s a refinancing of bonds issued in 1989, 2000 and 2010. There’s no risk to tax money, he says.

8:22 p.m. Approval of minutes.

8:22 p.m. Outcome: The council has voted to approve the minutes of its previous meeting.

8:22 p.m. Consent agenda. This is a group of items that are deemed to be routine and are voted on “all in one go.” Contracts for less than $100,000 can be placed on the consent agenda. Tonight’s consent agenda contains 11 items. [Some background on consent agenda items is included above.]

8:23 p.m. Councilmembers can opt to select out any items for separate consideration. No one does.

8:23 p.m. Outcome: The council has approved the consent agenda.

8:23 p.m. B-1 Rezoning of 16.6 Acres from RE (Research Dwelling District) to ORL (Office/Research/Limited Industrial Dwelling District). Also on Research Park Drive, a trio of items on the agenda relate to a future project that would construct six new buildings on six parcels, each with associated surface parking and storm water detention. One of the proposed buildings would be a tennis facility. The tennis facility would require an amendment to the ORL district, which currently does not allow outdoor recreation uses. The three associated items are: (1) an area plan; (2) rezoning of 16.6 acres from RE (research district) to ORL (office/research/limited industrial district); and (3) an amendment to the ORL zoning classification to allow the planning commission to grant special exception uses for recreational facilities. [For additional background, see Rezoning, Area Plan, Special Exception: Research Park above.]

8:23 p.m. Outcome: The council has voted without discussion to give final approval to the rezoning of the 16.6 acres in Research Park.

8:23 p.m. B-2 Amend zoning ordinance to allow outdoor places of recreation in the Office/Research/Limited Industrial (ORL) zoning district as a special exception use. This item is related to the previous one. [For additional background, see Rezoning, Area Plan, Special Exception: Research Park above.]

8:23 p.m. Outcome: The council has voted without discussion to give final approval of the amendment to the zoning code to allow outdoor recreation as a special exception use in the ORL district.

8:24 p.m. C-1 Gift of Life rezoning. This is the initial approval of rezoning – from O (office district) and RE (research district) to ORL (office/research/limited industrial district) – that will be necessary for an expansion of the Gift of Life Michigan facility in Research Park. The proposal calls for building a three-story, 40,786-square-foot addition to connect two existing buildings at 3161 and 3169 Research Park Drive, which are owned and occupied by the nonprofit.[For additional background, see Rezoning: Gift of Life above.]

8:24 p.m. Outcome: The council has voted without discussion to give initial approval of the rezoning for the Gift of Life property.

8:24 p.m. DC-1 Issuance of Bonds by the EDC for Glacier Hills Inc. This resolution approves issuance of bonds by the Economic Development Corporation for refinancing of existing bonds. According to the staff memo accompanying the resolution, this does not encumber the city in any way – because Glacier Hills will be solely and exclusively responsible for the repayment of the EDC bonds.

8:25 p.m. Lumm is reading aloud a description of the issuance. She recites how the council had previously voted to set the public hearing that was held tonight. Refinancing will save substantially on the bond repayment, she says. She reiterates that there is no risk to the city involved here.

8:26 p.m. Outcome: The council has voted to approve the issuance of bonds by the EDC for Glacier Hills Inc.

8:26 p.m. DC-2 Great Lakes Climate Assessment grant application. This resolution would support the city of Ann Arbor’s application for a 2014 GLISA Great Lakes Climate Assessment grant, sponsored by the University of Michigan Great Lakes Integrated Sciences and Assessment Center (GLISA). According to the staff memo accompanying the resolution, city staff are proposing a project to develop a set of training tools for city engineers that will: (1) highlight adaptive projects and designs that are known to be effective in the Great Lakes Region (e.g., white roofs, green streets); and (2) identify key research questions for infrastructure assets where adaptive measures are not well developed (e.g., heat island effects of asphalt vs. concrete for street reconstruction).

8:27 p.m. Briere says that this “is one of those relatively easy things.” It’s a grant competition that the University of Michigan has entered, and they need a civic sponsor. That’s the role the city will play.

8:27 p.m. Outcome: The council has approved the resolution of support for the grant application.

8:27 p.m. DB-1 Approve the area plan for Research Park Lots 26-31. This is related to two items above. [For additional background, see Rezoning, Area Plan, Special Exception: Research Park above.]

8:27 p.m. Outcome: The council has voted without discussion to approve the area plan for the lots on Research Park Drive.

8:27 p.m. DB-2 Site plan: The Mark. This is a proposal from developer Alex de Parry to demolish an existing car wash at 318 W. Liberty and build an 11,910-square-foot structure with seven residential condominiums – five two-bedroom and two three-bedroom units. [For additional background, see Site Plan: The Mark above.]

8:32 p.m. Kunselman says that what caught his attention was the information about the water main that was mentioned during the public hearing. Planning manager Wendy Rampson approaches the podium. The proposal requires more water service than the current use as a car wash, she explains. Kunselman says there is a different project at Ashley and Huron that is having some of the utilities work paid for through a rebate of TIF. Alex de Parry responds to Kunselman’s question about whether he has pursued that option with the DDA. De Parry indicates that there have been some discussions but it sounds like they didn’t result in interest in applying.

The conversation is now about the flow testing – measured at 3,400 gallons per minute. The contention is that 3,000 is the minimum requirement. Eaton asks the representative from Perimeter what she would like the council to do. She says that they’d prefer not to have to build the water main.

8:35 p.m. She estimates the cost of building the new water main at $250,000, which is significant for a small project. She says she’d like to be able to construct the building before constructing the water main. Eaton asks Rampson if that’s possible. Rampson says that typically the water main needs to be completed before construction of the building. Petersen asks about the age of the water main. Rampson says that size is the issue, not age. She ventures that if the development agreement was not acceptable to the developer, the issue could be postponed. Public services administrator Craig Hupy is asked to the podium by Hieftje to confirm that city staff believes the pipe needs to be bigger.

8:37 p.m. Briere is reviewing the history of the planning commission’s treatment of this application. Rampson says that if there is additional information about water, that could be incorporated – but she didn’t want to try to alter the development agreement tonight. Kunselman says that if de Parry wants to go forward, he’ll vote for it.

8:37 p.m. Outcome: The council has voted to approve the site plan for The Mark condominiums.

8:37 p.m. DB-3 Site plan: Delta Chi. This site plan proposes to tear down the existing Delta Chi fraternity house at 1705 Hill Street and build a much larger structure in its place. [For additional background, see Site Plan: Delta Chi above.]

8:40 p.m. Lumm is reviewing the public participation meeting. Briere is asking about placement of dumpsters.

8:40 p.m. Outcome: The council has voted to approve the Delta Chi site plan.

8:40 p.m. DS-1 Pontiac Trail sidewalk special assessment roll. That item had been postponed at the council’s July 21 meeting to allow additional time for residents to protest the assessment. [For additional background, see Sidewalk Special Assessment: Pontiac Trail above.]

8:40 p.m. Outcome: The council has voted without discussion to confirm the assessment roll for the Pontiac Trail sidewalk construction.

8:40 p.m. DS-2 Contract with Du All Cleaning, Inc. for janitorial services ($727,545). This is a roughly three-year (35 months) $727,545 contract with Du All Cleaning Inc. for janitorial service at city hall, the Wheeler Service Center, the water treatment plant, senior center and other city-owned facilities.[For additional background, see Contracts: Janitorial Services above.]

8:41 p.m. Outcome: The council has voted to approve the janitorial contract with Du All Cleaning Inc.

8:41 p.m. DS-3 Contract with Carrier & Gable for traffic signal materials ($480,000). The contract includes pedestrian signals and left-turn arrows for several locations. [For additional background, see Contracts: Traffic Signals above.]

8:43 p.m. Briere asks for public services area administrator Craig Hupy. She says that when the council established the pedestrian safety task force, the council wanted work on pedestrian safety to continue. She asks about the blinking left-turn area. She wonders if that creates a more hostile environment for pedestrians. How busy are these particular crosswalks, she asks.

8:44 p.m. Hupy asks Briere which intersections she’s talking about. She gives Fuller and Maiden Lane as an example. It’s a busy pedestrian intersection and a lot of cars go through there. This is the first he’s heard about a concern about left turn arrows with respect to pedestrians, he says. He will ask staff to look into it, he says.

8:45 p.m. Outcome: The council has voted to approve the contract with Carrier and Gable for the traffic signal materials.

8:45 p.m. DS-4 Contract with Reiser & Frushour P.L.L.C. to provide legal representation for indigent defendants. ($200,000) Reiser & Frushour was awarded the contract over two other respondents to the city’s RFP. The 15th District Court is required to provide representation for indigent persons if their punishment could include incarceration upon conviction. [For additional background, see Contracts: Legal Services above.]

8:46 p.m. Taylor reports that the contracting party is a client of his, so he asks for authorization to sit out the vote. The council votes to allow that.

8:46 p.m. Outcome: The council has voted to approve the contract with Reiser & Frushour P.L.L.C.

8:46 p.m. Communications from council.

8:50 p.m. Warpehoski says that “with all the fun at the beginning the meeting” he’d forgotten to mention some discussion about increased transparency and oversight of reporting for Ann Arbor SPARK – a discussion that’s been happening with the Washtenaw County board. When the council takes up the SPARK contract off the table to consider it, he would be adding two points: (1) a reporting requirement for metrics, and (2) a direction to work with the county board’s Act 88 committee. Petersen reports that she’s working with the LDFA (local development finance authority) on a similar effort. Warpehoski reminds everyone that those are separate efforts – general fund compared to LDFA. Still he appears in agreement with Petersen that there should be coordination between the city and other contracting agencies on this type of issue. Updated: After the meeting, the city clerk forwarded the media the text of the amendment at Warpehoski’s request: [.pdf of Warpehoski's amendment to the SPARK resolution]

8:51 p.m. Kailasapathy is confirming with Petersen the distinction between the general fund support that the city provides to SPARK compared to the LDFA, which is based on tax capture. Petersen says that job-creation reporting is to some extent self-reported. She wants to keep it clear, streamlined and simple.

8:52 p.m. Eaton says that the state treasurer’s department did an audit of MEDC job creation numbers. He suggests that the methodology used by the city could be similar to that used by the state treasurer.

8:54 p.m. Lumm says that the current contract with SPARK doesn’t require reporting. Councilmembers are now having a conversation on the topic of required reporting from SPARK.

8:56 p.m. Clerk’s report of communications, petitions and referrals.

Outcome: The council has accepted the clerk’s report.

8:56 p.m. Public comment.

8:58 p.m. Laurie Barnett is addressing the council as the Jewish Federation of Ann Arbor. She’s reading aloud a letter to the council. It expresses support for the council’s position that a public hearing on a boycott of Israel should not be held.

8:59 p.m. She responds to Petersen’s remarks earlier in the meeting by saying that even personal boycotts are not justified.

9:03 p.m. Another woman is addressing the council supporting their position on Israel. She says it’s a slippery slope to anti-Semitic and hate speech.

9:03 p.m. David Shtulman, executive director of the Jewish Federation, is thanking Hieftje for 14 years of service. He admires the council for what they have to sit through and what they will have to sit through in the coming weeks. He says that he does not hold the council responsible for deaths of children in Gaza. In a poll in Gaza, 72% don’t want hostilities, he says. Those who were here tonight saying, “Boycott Israel” would save more lives if they shouted, “Boycott Hamas,” he says.

9:05 p.m. Thomas Partridge calls on the council to maintain order at meetings. He was concerned for his personal safety tonight, he says. He was almost hit in the face with a placard, and had been told he should leave if he didn’t want his hearing harmed. He warns that things could evolve toward violence. He calls on the council to prioritize protection of the most vulnerable residents. He calls for advancement of the cause of public transportation.

9:08 p.m. Alan Haber had been an alternate during reserved time. He says that he’s been in France, “the land without a pothole.” He doesn’t know how they do it, but says the engineers for the city should go and see how they do it. He complains that he was on the phone at three minutes after 8 a.m. and there were already people signed up ahead of him. He proposes that a World Peace Day celebration be held on Sept. 21 on top of the Library Lane underground parking structure.

9:10 p.m. Closed session under the Michigan Open Meetings Act. The council has voted to go into closed session to discuss pending litigation.

9:20 p.m. Before going into closed session, Hieftje told The Chronicle that it was his decision to clear the room earlier, and it was not triggered by anything specific, but rather a general sense that the council was not going to be able to conduct its business.

9:28 p.m. Before going into closed session, assistant city attorney Abigail Elias said she hoped the closed session would be very brief. It appears that hope might not be realized.

9:37 p.m. The council has emerged from the council work room.

9:37 p.m. Adjournment. We are now adjourned. That’s all from the hard benches.

A sign on the door to the Ann Arbor city council chambers gives instructions for post-meeting clean-up.

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