Nancy Kaplan, the newest Ann Arbor District Library board member, is introducing a proposal to videotape library board meetings for public broadcast. The board is expected to consider a resolution on that issue at its May 16 meeting. (Photos by the writer.)

The deal – which is getting national attention from library professionals – gives patrons unlimited access to a downloadable catalog of about 12,000 tracks in a wide range of genres. Though it doesn’t include songs by popular artists on major record labels, AADL director Josie Parker told the board that the selection should appeal to a community like Ann Arbor, which values alternative music.

The library is looking for other ways to increase its digital offerings of audiobooks, films, music, and free or open eBooks. Possibilities include tapping collections like Project Gutenberg, which has about 50,000 titles, and working with local authors, musicians and filmmakers who might be interested in making their work accessible to library patrons.

Also at Monday’s meeting, board member Nancy Kaplan advocated for televising the board’s monthly meetings, and said she’d like to bring a formal proposal to the board for a vote on May 16. Other groups like the Ann Arbor Public Schools board and the Ann Arbor Transportation Authority currently hold their meetings in the same location as the AADL board – the fourth floor conference room of the AADL’s downtown building on South Fifth Avenue. AAPS and AATA meetings are televised by Community Television Network. Parker agreed that there are benefits to televising the meetings, but cited issues of quality and control as reasons why they haven’t decided to do that yet.

In other business, board members got a preview of the 2011-12 budget, for the fiscal year starting July 1, 2011. They plan to keep the millage level unchanged – AADL levies 1.55 mills, not its maximum allowable 1.92 mills. There will be no layoffs, but no pay increases. The board will take a formal vote to approve the final budget at their May 16 meeting, which will also include a public hearing on the issue.

And in a discussion about the nonprofit Friends of the Ann Arbor District Library, Parker asked the board to consider putting a direct link to that organization’s website on the front page of the AADL website. The move would be “a pretty public vote of confidence for them, and recognition for everything they’ve done,” she said. The AADL had distanced itself from the Friends several years ago in the wake of financial oversight issues that have since been resolved. The group operates a used bookstore in the lower level of AADL’s downtown branch, with proceeds – $100,000 this year alone – benefiting the library.

Videotaping AADL Board Meetings

As an item for discussion, Nancy Kaplan – the board’s newest member, who was first elected in November 2010 – brought forward a proposal to videotape the monthly AADL library board meetings. She cited a list of benefits, such as enhancing the library’s outreach efforts and providing another way for the public to get information about AADL, its staff and programs. As an example, she mentioned the report by director Josie Parker at last month’s board meeting regarding Parker’s work with the Digital Public Library of America, and the presentation on eBooks that was made at the April board meeting.

Viewers would also learn, along with the board, about the challenges and changes happening at the library, Kaplan said, especially as it shifts to providing more digital services. Those changes might include delivery of services, the physical structure of the library, and the changing financial environment, she said. Kaplan asked the board to consider televising their meetings, saying that she believed it would cost only $50 per month, if even that much.

[By way of background, Community Television Network (CTN) – a unit of the city of Ann Arbor – records and televises a wide variety of public meetings, including several that are held in the same boardroom as the library board meetings – on the fourth floor of the downtown AADL building. Meetings that are currently recorded by CTN in that room include the Ann Arbor Public Schools board, the Ann Arbor Transportation Authority board, and the Ann Arbor Public Market Commission.]

Parker told the board that she couldn’t argue about the benefits. But she asked Tim Grimes, the district’s community relations and marketing manager, to describe how the library allocates its resources, and why they’ve made the decision in the past not to videotape board meetings.

Grimes said his staff includes two part-time employees who videotape and provide technical support for AADL events. He said they did have an initial conversation with CTN, but were told that because the library board meetings fall on the same night as Ann Arbor city council meetings, the library board meetings could not be aired live – they’d have to be taped for broadcast at a later date.

He also said if the board did decide to videotape meetings, his staff would do it – because all of the video on the AADL’s website is done in-house.

In giving an overview of the work his department does, Grimes said they film about 6-8 library events each month to post on the AADL’s website. Talks by authors like journalist Cokie Roberts in 2008 and TV producer Chuck Barris in 2007 had been especially popular, he said. Grimes also highlighted talks held at AADL in partnership with groups like the University of Michigan Depression Center and University Musical Society, and which are available in the AADL’s video-on-demand collection. In addition to videotaping events, his staff also does podcasts and provides technical assistance for AADL events, Grimes said.

Grimes noted that they produce an annual report video, which he said includes much of the information that Kaplan described, and features interviews with staff and patrons.

Another thing to consider is that on some board meeting nights, the library has to schedule author events at the same time, Grimes said. He cited as an example the board’s next meeting on May 16, when Sebastian Junger – author of “A Perfect Storm” – will be speaking at the same time in the library’s multi-purpose room at an event they’ll be videotaping. It’s the only night that Junger was available, Grimes said, so they didn’t have any choice about scheduling.

Grimes concluded by noting that he’s worked at the library for 22 years, and has been in his current job for 18 years. Not once, he said, has a member of the public asked to have library board meetings filmed. “I have lots of requests for other things, including Chuck Barris, but never for this.”

Margaret Leary, the board’s chair, posed a hypothetical question: If the library were to produce a video about a topic that might be touched on at a board meeting – like Parker’s presentation last month on the Digital Public Library of America – would it be more in-depth than a 5-10 minute talk? Certainly, Grimes replied, saying that their films are very polished in terms of quality of picture, sound and content.

Leary then asked Parker if she had any additional comments regarding their strategic thinking on this issue. Parker said they hadn’t really considered making films about their own initiatives. They certainly could, she said, but it’s more likely they’d look for partnerships – for example, the University of Michigan’s Google books project might be a way to discuss issues related to digitization and libraries.

More generally, Parker said it wasn’t an issue of cost. Rather, with CTN, the library would have no control over quality or scheduling, she said – and the video wouldn’t be the AADL’s. It would belong to CTN.

Kaplan said it seemed to be the culture of this community to televise public meetings. She noted that more entities – like the Downtown Development Authority and AATA – are moving in that direction. She said she isn’t looking for something perfect, but that with so many changes coming for AADL, it’s important to bring the community along with them. Even though Parker’s presentation last month had been brief, she said, it was also enlightening and informative. Kaplan also thought it would be possible to request that CTN broadcast the meetings at certain times.

At any rate, Kaplan added, these are logistics that can be worked out. What they really need to decide is the concept – do they want to record their meetings for broadcast? If there are concerns, she said, perhaps they could do it on a trial basis.

Kaplan plans to bring a formal resolution on the issue to the board’s May 16 meeting.

Digital Media at the AADL

A discussion at the board’s March 21 meeting – which focused on how digital books are transforming the publishing industry and, in turn, public libraries – prompted AADL director Josie Parker to offer to give the board an overview of the library’s digital offerings at their April meeting. On Monday, Celeste Choate – associate director of services, collections and access – gave a detailed presentation on the range of digital services that AADL provides its patrons.

Digital Media: Overdrive

Choate began by describing some of the services that the library offers for eBooks and audio books – including one that’s been a frustration for both library officials as well as patrons.

Overdrive is a business that provides electronic books to public libraries – AADL accesses this service through its membership in the Midwest Collaborative for Library Services. Because Overdrive is an outside vendor, AADL doesn’t have control over its offerings, Choate told the board. The service also only allows for one user download at a time per item, so there are long waiting lists to check out the most popular material. A common complaint is that people want to get the books more quickly, she said. And once the period of use has expired, the material is automatically erased from your computer.

There are technical constraints as well, Choate said. Overdrive is only compatible with certain equipment, and requires users to first install software on their computer. Later in the meeting she walked the board through the steps required to use Overdrive – a fairly complicated process.

Celeste Choate, AADL's associate director of services, collections and access.

Recently, 700 animated Disney storybooks were added to the Overdrive collection – those allow for simultaneous use, but can only be downloaded to computers, not electronic readers. Overdrive offers about 5,000 eBooks and 4,000 audiobooks, which are compatible with Nook and Sony electronic readers. Users of Kindle will be able to access the service at some point soon, Choate said, although she added that when more patrons start to use the service because they can read the material on their Kindles, wait lists will likely grow even more.

Over the past 12 months, there have been about 16,000 checkouts of Overdrive material.

Parker later noted that AADL hasn’t publicized Overdrive because it’s not a great service. Even when it’s available via Kindle, that won’t change the problems that patrons face when using it, she said.

Digital Media: eBooks for the Blind, Physically Disabled

Working with the National Library Service, AADL offers over 21,000 books and 48 magazine titles via the Braille and Audio Reading Download service, or BARD. This service allows for unlimited, simultaneous downloads, Choate said, and unlike Overdrive material, users can keep permanently whatever they download.

To provide faster access for patrons, AADL has downloaded all 21,000 books and can distribute them quickly on flashdrives, whenever there’s a request. This is a service that’s just been launched, Choate said, and is being coordinated by Terry Soave, AADL’s outreach and neighborhood services manager.

AADL also offers access to a program called BookShare, which provides more than 90,000 books, textbooks, periodicals and other material.

All of these services require that the users be a patron of the Washtenaw Library for the Blind and Physically Disabled, which is managed by AADL.

Digital Media: Tumblebooks

Tumblebooks is designed for visually impaired children, and allows users to download animated storybooks, audio games and other games to their computers. The service offers unlimited access, and last year there were 75,000 book views by library patrons, Choate said. Based on what AADL pays for the service, it costs the library less than a penny per book view, she said.

Digital Media: Magnatune

One of the most promising new digital offerings is available through Magnatune, a digital music publisher. AADL recently negotiated a deal with the firm for about 12,000 songs – or the equivalent of about 1,200 albums, Choate said. The service offers unlimited, simultaneous downloads with no waiting. The Magnatune page on AADL’s website describes it this way, in what appears to be an oblique reference to Overdrive: “You shouldn’t have to jump through 17 flaming hoops in order to access digital content, so we’ve tried to make the process as simple as possible.”

Since launching about three weeks ago, over 11,000 tracks have been downloaded, Choate said.

Parker noted that these are independent artists – you won’t find music by the current hot performers – but there’s a wide variety of genres, from world music and blues to hip hop, classical and alt rock. She said the music is appealing in a community like Ann Arbor, where alternative music is valued.

The AADL doesn’t pay per download – rather, the library paid a $10,000 flat fee in a licensing agreement that runs through June 30, 2012. So the more times the service is used, the lower the cost is per use. It’s a very cost-effective service for the library to provide, Choate said.

Digital Media: Future Plans

The library is looking for ways to increase its digital offerings, Choate said – audiobooks, films, music, and free or open eBooks. One example, she said, is to look at what’s available from Project Gutenberg, which has been compiling a collection of free eBooks and has about 50,000 titles. [The books are free because their copyright has expired.] AADL also hopes to talk with local authors, musicians and filmmakers who might be interested in making their work accessible to library patrons.

AADL has the infrastructure in place to provide these digital services, Choate said. They’re pursuing deals like the one with Magnatune, with fixed costs, unlimited downloads and annual licenses. The library is interested in getting the most use out of its collections, she said, while containing costs – they don’t want to pay per download.

Responding to a board member’s query, Parker said there’s never enough exposure for what the library offers, but that when they launch something like the deal with Magnatune, there’s no shortage of information about it. Social media networks are playing a huge role in spreading the word about AADL’s deal with Magnatune, and earlier in the day, Parker said, they got a call from Library Journal, which is interested in doing an article about the agreement.

People who are only interested in mainstream music – like the kind licensed by Sony – might not be interested in what’s available via Magnatune, Parker said. But it’s not worth it for the library to strike a deal with Sony – it would cost them almost as much as retail.

Margaret Leary, chair of the board, expressed frustration at the relatively limited material available to the general public. Leary is director of the University of Michigan Law Library, and described how easy it is for her – as an academic librarian – to quickly access any of thousands of electronic books in their system, all at no cost to her as a user. She described how she was researching earthworms as an invasive species, and with only a simple search found two books on the subject – the full texts were available to her online, she said. Leary indicated that resources should be equally available for the general public.

Financial Reports: March Update, 2011-12 Budget

The board heard two financial reports on Monday from Ken Nieman, associate director of finance, human resources and operations. He first gave an update on March 2011 financials. The district’s unrestricted cash balance at the end of March was $10.124 million, down from $11 million in February. Its fund balance stood at $7.924 million as of March 31. The district has received 96% of this fiscal year’s tax receipts, or $10.923 million.

Three line items – employee benefits, legal expenses and library programming costs – are over budget, Nieman reported. As he’s noted at previous meetings, the extra expenses for employee benefits – related to increased health care costs – are not likely to come back in line with the budget by year’s end. Year to date, that line item is $50,543 over budget.

The district spent $21,126 in legal expenses during March, compared to a budgeted amount of $6,250. Those costs related to four issues: Research on tax increment financing (TIF) for both the Washtenaw Avenue corridor project and the Ann Arbor Downtown Development Authority, labor negotiations, and preparation of an amicus brief in a Herrick District Library lawsuit against the Library of Michigan. Year to date, legal expenses are $11,609 over budget.

Library programs, which was $6,107 over budget for March, is expected to come back in line with its budgeted amount by year’s end.

Nieman also pointed out that AADL received $30,264 in state aid during March. Because of uncertainties related to the state’s economy, the district had not included any state aid in its current fiscal year budget – that’s been the district’s practice for several years. The payment is the first installment – typically, the state makes two payments of 50% each, he said. Board member Prue Rosenthal asked whether receiving this first payment means they’ll likely get another $30,000 from the state. Nieman said he thinks so: “We’re as certain as we can be about that.” [.pdf file of March 2011 finance report]

Financial Reports: 2011-12 Budget

Later in the meeting, Nieman returned to the podium to give a briefing on the proposed 2011-12 budget, which the board will vote on at its May 16 meeting. Barbara Murphy, chair of the board’s finance committee, said the committee discussed the budget with staff earlier this month. “It’s another tight budget,” she said. [.pdf file of 2011-12 AADL draft budget]

Nieman began by noting that the budget had been built on the assumption that tax revenues would drop by 3%. However, on April 21, the county’s equalization department released its report on taxable values for jurisdictions in Washtenaw County. [See Chronicle coverage: "Washtenaw County's Taxable Value Falls"] At that point, they learned that AADL’s tax revenues would drop by only 1.7%. “That’s good news,” Nieman said. “We’d always like it to go up, but it’s better than we were predicting.”

In a follow-up phone conversation with The Chronicle, Nieman said the budget presented on May 16 will be revised to reflect those higher-than-expected revenues. Revenues for FY2011-12 are now expected to total $12.034 million, rather than the $11.887 million indicated in the draft budget. The bulk of revenues in the budget – $11.092 million – are from tax receipts.

On Monday, Nieman told the board there will be no layoffs, no pay cuts, and the library’s hours and service levels will remain unaffected – patrons won’t notice any changes. The draft budget shows a $186,000 deficit, he said, but given the change in anticipated tax revenues, that deficit is now closer to $40,o00.

Nieman later told The Chronicle that AADL hopes to shift its union employees over to a similar health insurance plan that non-union workers were shifted to last October, to cut costs. About 50 of the roughly 250 AADL workers are represented by unions. Several line item expenses are lower in the FY2011-12 budget, including custodial, purchased services, utilities, and grants and memorial expenses. The budget includes an $18,000 increase in the line item for repair and maintenance, to $283,000.

For some employees, the AADL will see an increase in the amount it must contribute to the Michigan Public School Employees Retirement System (MPSERS) – from 20.66% this year to 24.47%. Nieman noted that only 18 AADL employees are part of this state-mandated retirement program – they are people who were hired when the library was part of the Ann Arbor Public Schools system, before AADL was spun off as an independent entity in 1996. [For a primer on MPSERS funding, see Chronicle coverage of a February 2010 Ann Arbor Public Schools study session.]

On Monday, Nieman told the board that the administration will be working to present a balanced budget to the finance committee at its next meeting, and to the full board in May. He also pointed out that they’ll achieve the budget at the 1.55 mills that the district currently levies – they won’t be raising taxes.

Margaret Leary, the board chair, noted that they weren’t voting on the budget that evening, and that it would be modified before being brought to the board at their May meeting for approval. She clarified that although it’s possible for the AADL to levy up to 1.92 mills, they’ve chosen not to do that. “We have a track record of sticking to our budget and not overextending,” she said. “In this economy, there are not very many public organizations that are able to do that.”

Leary said that Nieman and AADL director Josie Parker deserve accolades – they set a great example for financial management and the provision of services.

Parker reminded the board that their May meeting will also include a public hearing on the budget.

Director’s Report

In addition to her written report, AADL director Josie Parker briefed the board on two other items. [.pdf file of AADL April director's report]

Josie Parker, Ann Arbor District Library director, at the board's April 25, 2011 meeting.

Parker reported that she had attended the oral arguments at the state court of appeals last week in the lawsuit brought by Herrick District Library lawsuit against the Library of Michigan.

[By way of background, new standards imposed by the Library of Michigan have changed how public libraries qualify for state aid. Those standards – originally proposed as rules – are the subject of a lawsuit against the state library, filed by the Herrick District Library in Holland. The AADL has filed an amicus curiae – or “friend of the court” – brief in support of the Herrick library’s position, which charges that the state library has no authority to set these rules, and is taking away local control from district libraries. Parker has discussed this lawsuit on previous occasions, including the board's March 21 meeting.]

Parker told the board that the three-judge panel had impressed her with their knowledge of the legal issues at stake, and that they were thorough in their questioning. It’s likely to take several months before they hand down a ruling, however. “For now, it’s a waiting game,” she said. In the meantime, she added, hopefully state aid will be dispersed.

Parker also reported that earlier that day, she’d been in Lansing for a meeting of the Michigan Library Association‘s legislative committee, on which she serves, to meet with the MLA’s lobbyist. In terms of state support for libraries, “it’s amazingly good news,” she said, relative to what they had anticipated. The state House proposed budget calls for cutting library funding from $7.25 million to $3.6 million, which she said is barely enough to fund the Library of Michigan and the Michigan eLibrary, known as MeL, for the year. There is no line item for MeL in the House version.

The Senate version holds library funding harmless – at the same levels as the current fiscal year – and includes a separate line item for MeL.

Parker said the House version at least doesn’t eliminate library funding entirely, and that the final budget will likely include funding somewhere between the House and Senate proposals. That’s “far more than we expected,” Parker said. She noted that legislators from the Ann Arbor area have been very responsive to these issues.

Director’s Evaluation

Margaret Leary, the board’s chair, is also chair of the director’s evaluation committee. She reported that all board members had participated in giving feedback about Josie Parker’s performance, and that they had discussed it in executive session earlier that evening. They’ll finish the formal evaluation document in the next month, and she’ll present a public letter regarding the evaluation at the May 16 board meeting. “It’s all good,” Leary said.

Friends of the AADL

Prue Rosenthal gave an update on the Friends of the Ann Arbor District Library (FAADL), a nonprofit that operates a used book shop in the lower level of the downtown AADL building to raise money for the library. They recently gave AADL a check for $20,000 – bringing this year’s total contributions to $100,000.

FAADL is planning a membership drive to coincide with the AADL’s summer reading program, Rosenthal said – she noted that the library is kicking off the summer reading program this year at the Ann Arbor Summer Festival.

Another thing that FAADL is discussing is whether to have a booth at the nonprofit part of the Ann Arbor Art Fairs. Parker had encouraged it, Rosenthal said, because this year it will be difficult to get access to the library from the art fairs. Fifth Avenue is closed between the library and East Liberty, where part of the art fairs are held, so it would be a good year to raise awareness about the bookstore, she said. They’ll need volunteers and $60 for the booth, Rosenthal reported, but it looks like they’ll go ahead with it.

March was down in sales – but overall for the year, the FAADL store is ahead of last year, Rosenthal said. They’ve raised $3,600 selling books online, via Ann Arbor-based Books by Chance and AbeBooks. “They are cooking on all burners,” she said.

Parker told the board that the space agreement between AADL and FAADL is up for renewal in May. At Leary’s request, Parker said she contacted FAADL president Pat McDonald to ask if there are any issues they need to address. McDonald indicated the agreement is fine as it stands, so Parker said she’ll likely ask the board to approve an extension to the agreement at their May 16 meeting.

As another item for the board to consider, Parker noted that several years ago, the library removed the FAADL from the library’s website when the nonprofit was struggling with some financial oversight issues. Now, the FAADL conducts annual audits and they’re clean, Parker said. She attends their meetings and is comfortable suggesting that the library place a link on their homepage to the FAADL website. Right now, the FAADL is only included on the library’s webpage that lists a variety of ways to contribute to AADL. Putting a link on the AADL front page would be “a pretty public vote of confidence for them, and recognition for everything they’ve done,” Parker said.

Rosenthal also noted that the FAADL is looking for board members, particularly people who have graphic design, marketing and public relations experience.

Auditors Approved

Added to the agenda at the beginning of Monday’s meeting was a resolution to approve the accounting firm Rehmann to conduct the AADL’s audit for fiscal years ending June 30, 2011 through June 30, 2014. [Rehmann – formerly Rehmann Robson – conducts audits for several local municipalities, including Washtenaw County. A representative from the accounting firm presented results of the county's audit at the April 20, 2011 county board of commissioners meeting.]

Barbara Murphy, chair of the finance committee, reported that Ken Nieman – associate director of finance, human resources and operations – had issued a request for proposals (RFP) and received four responses. Of those, two were chosen to interview: Rehmann, and Abraham & Gaffney. Murphy said that based on those interviews, it was clear that Rehmann best suited AADL’s needs.

Outcome: The board unanimously approved the selection of Rehmann to conduct the AADL’s audits through 2014.

Present: Rebecca Head, Nancy Kaplan, Margaret Leary, Barbara Murphy, Jan Barney Newman, Prue Rosenthal, Ed Surovell. Also AADL director Josie Parker.

Next meeting: Monday, May 16, 2011 at 7 p.m. in the library’s fourth floor meeting room, 343 S. Fifth Ave. [confirm date]

The storefront of Liberty Street Video at 119 E. Liberty in Ann Arbor.

When the economy soured last year, Dave Kozlowski still felt optimistic about the prospects for his business, Liberty Street Video. After buying the store in 2007 and investing in new inventory, sales were growing 10-15% each month, and he had finally stopped losing money.

But in January, he says business took a turn for the worse. Since then, sales at the East Liberty store have dropped around 5-8% each month, with no sign of improving. So with his lease up for renewal at the end of the year, Kozlowski has decided to close the last independent video store in Ann Arbor.

Sunday will be the last day of the store’s regular hours. It will be closed on Monday and Tuesday, then reopen on Wednesday with truncated hours: from 2-8 p.m. weekdays, and noon-8 p.m. on weekends. The goal is to sell off all inventory, including DVDs for $5 and $2 for VHS tapes. Kozlowski says he’s hoping to recoup some of his roughly $200,000 investment and pay down $40,000 in debt, including the $10,000 in back rent he owes the landlord, Ali Amiri.

“It’s been fun,” Kozlowski told The Chronicle. “I love it. I love the town.”

Liberty Street Video has been hanging on despite a dramatic shift in the industry. In fact, Kozlowski says the economy might have just expedited what was already inevitable. Netflix, the mail-order movie rental company, has hurt bricks-and-mortar businesses, as has its more recent rival, redbox. Amazon.com is offering an on-demand service that lets you download movies to watch on your computer. And in September, news emerged that YouTube – owned by Google – plans to offer its own video-on-demand service.

Even large chains have suffered – just last month, Blockbuster announced plans to close nearly 1,000 stores nationwide by the end of 2010, as it struggles to compete. Both Blockbuster and Hollywood Video have several stores in the Ann Arbor area, but local independents, like Campus Video and Panorama Video, have closed.

Another competitor is the Ann Arbor District Library, which has an extensive collection of DVDs and Blu-ray discs, free to anyone with a library card. Kozlowski hopes the library might be interested in buying some of his collection, including some of the rarer titles.

Liberty Street Video has been known for its eclectic collection. The store’s international section carries titles from 19 countries, and they have a wide selection of genres, including gay/lesbian, cult, silent movie, documentary and adult. Because of its inventory, students at the University of Michigan are frequent customers to rent movies for the courses they’re taking. Some film instructors give the store their syllabi, and Kozlowski says he makes sure they have several copies of each movie on hand.

But business from the university wasn’t enough to keep the store afloat. Kozlowski said he tried different promotional efforts, like $1 rentals and 2-for-1 deals, but there just wasn’t enough foot traffic for rentals anymore from the general public. He’s been subsidizing the business trying to make it through, and says that his landlord, Ali Amiri – who owns the Persian House of Imports at 325 E. Liberty – has been very patient and supportive.

Kozlowski told his five part-time employees about his decision last week. He’s uncertain about what he’ll do next, but says he plans to stay here – he lives in Howell.

Before buying the store from Laura Abraham, Kozlowski worked in the trucking industry. He was born and raised in this area, but had been living in Tennessee until returning here to take care of his elderly mother, who has since died.

When he bought the business, he saw it as an opportunity, one that could give him some flexibility to take care of his mother, who moved in with Kozlowski and his wife. Though the store was struggling when he bought it, back then he believed he could make it work – and for a while, he did: “I thought we’d make it.”

Liberty Street Video is located at 119 E. Liberty St., near the corner of Liberty and Fourth Avenue. Its phone number is 734-213-1944.

The DDA board heard from the public on the topic of snow removal downtown, including the person attached to this foot, whose holiday gifts included some pullover gadgets with non-slip metal coils.

Downtown Development Authority Board (Jan. 7, 2009) The Main Street Area Association had hoped for a year-long delay in the parking rate increases that were approved by the DDA board at its Nov. 5 meeting. But after discussing that possibility – and the borrowing of $3.65 million from the TIF fund that the year’s delay would require – the board left their original proposal intact. However, it will not be put before city council for final approval on Jan. 20, as originally planned.

Instead, the rate hike, which is part of the same packet of materials as the Fifth Avenue underground parking garage project, will be placed on the agenda for the second council meeting in February. The board settled on this delay when mayor of the city of Ann Arbor, John Hieftje (who serves on the DDA board in that capacity) announced that the council’s budget and finance committee had indicated a preference to see that packet delayed until February. Hieftje warned that if it were placed on the Jan. 20 agenda, it would simply be postponed by city council.

While the discussion of the parking rate increase and other parking-related matters took the majority of the board’s meeting time, the board dealt with other business as well, including the authorization to purchase recording equipment for broadcast of their meetings. They also heard from the public on the issue of snow removal, and were alerted to a workshop on commuter-related tax benefits to be given by getDowntown on Feb. 3 [confirm date]. This report is organized as follows:

• Parking: resolution to delay a rate increase to 2010 (postponed)
• Parking: resolution to direct proceeds of Fifth & William lot (former YMCA) to the housing fund (tabled)
• Parking: report on parking revenues
• Parking: report on AVI (automatic vehicle identification) card and onstreet pay by space
• Parking: report on status of underground parking garage
• Snow clearing: feedback from the public
• Video of meetings
• Transportation
• Downtown Area Citizens Advisory Council report and the 100 units of affordable housing

Parking: Resolution to Delay Rate Increase

At its November meeting, the DDA board had approved a parking rate increase with the expectation that it would go into effect on Feb. 1, 2009. For hourly parking in structures, the rate was planned to rise from its current 80 cents an hour to $1 this year, then to $1.10 in 2010 and $1.20 in 2011. The yearly progression of increases for standard monthly parking permits would be in $5 increments: from a current $125 to $130 in 2009, $135 in 2010, and $140 in 2011. Hourly parking rates in lots would rise from their current level of $1 to $1.10 in 2009, $1.30 in 2010, and $1.40 in 2011. Finally, on- and off-street parking meter rates would be raised from their current price of $1 to $1.20 in 2009, $1.40 in 2010 and 2011.

DDA board chair Jennifer Hall framed the issue by placing the parking rate increases in the context of the financing plan for the Fifth Avenue underground parking garage. She reported that the Main Street Area Association had made an impassioned plea to the DDA, in light of the overall economy, for a delay in implementation of the schedule of increases until 2010. The operations committee had looked at the possibility of delay, she said, and the committee thought that they could make the delay work. However, they would need to revise the financing plan for the Fifth Avenue parking garage. This revision would entail short-term borrowing of $3.65 million from the TIF (tax increment financing) fund, starting in 2012 and ending in 2014.

Hall said that although she sympathized with the MSAA, she couldn’t support a change in financing. One reason she was not in favor of delaying the rate change was that borrowing from the TIF fund amounts to a subsidy. If they were delaying the Fifth Avenue underground parking garage project, she said, a delay would make sense. But as that project moves forward, it would be financially imprudent to delay the rate hike, she said, adding, “It ties our hands.”

Elaborating on how the board’s hands would be tied, Hall said that the lack of fund balance in the TIF fund would have a negative impact on other kinds of projects that could otherwise be funded with the TIF fund. She then ticked off examples of TIF fund expenditures in the last year: rehab of Sculpture Plaza, alley improvements, fixing curb cuts for ADA compliance, tree installations, bike hoop installation, a grant to Think Local First, the wayfinding project, energy grants, sidewalk containers, demolition of the old YMCA building, grant for the police-courts construction. Hall said that she felt if the board adequately explained the possibility of reduced benefits in other areas, downtown merchants might not want the board to delay the rate increase.

Hall reported that she’d talked to 16 friends and neighbors – acknowledging that it was anecdotal information, not scientific. She said she hadn’t asked specifically about whether parking rates should be increased, but that no one had identified prevailing parking prices as an issue. Instead, they had come up with 30 different ideas about downtown issues unrelated to parking prices. She did acknowledge that two people suggested free parking on Saturday. Hall said that she did not feel that parking prices were a barrier to people visiting downtown, and concluded that she couldn’t support the delay

Board member Gary Boren said he probably couldn’t support the delay, either. He asked if there was information available on business revenue versus parking rates. Susan Pollay, the DDA’s executive director, said that based on sidewalk interviews the conclusion was that price sensitivity is not as important a factor as availability. Boren said that TIF fund expenditures go into efforts that makes downtown a draw. So even if raising rates had a negative impact on visitors, there are intangibles that go the other way, he said.

Ann Arbor mayor John Hieftje talked about perceived lack of parking from merchants: “We hear this over and over again.” He said that he did not think people make a decision to not come downtown based on parking rates. Hieftje asked how Ann Arbor’s rates compared to other communities. Pollay answered by characterizing Ann Arbor’s rates as higher in monthly permit costs, but that the city is well within the market range for hourly rates.

Board member Keith Orr said he didn’t feel a dime was going to be an issue. But it’s an emotional topic, he said, one that he could relate to as a downtown business owner. Board member Rene Greff asked for a clearer understanding of the financial difference between implementing the rate increase now versus later. She expressed skepticism that nine months at 10 cents less than planned would result in a shortfall of $3.65 million. The explanation was rooted in the fact that the shortfall accumulated over the entire period of scheduled increase, not just the initial year. This led Boren is briefly speculate on the possibility of delaying now but accelerating the increase when it’s implemented so that, in fact, it would be just one year’s impact.

January is a horrible time for retailers, Greff said, and if the rate increase happened in September, nobody would think twice. Pollay stressed that the projections were a best-guess scenario and emphasized that even though the TIF fund balance would be diminished, there would still be cash flow.

Board member Russ Collins asked if the board needed to act on the issue that day. Board member Roger Hewitt indicated that it would be going to city council for approval on Jan. 20. Hieftje then announced that the council’s budget committeee had indicated it would like another month before it comes to council. Board member John Mouat talked about the the psychological aspect of the issue that Greff had alluded to, and related the general mood of “holding tight” for a while to the overall economic climate and the fact that a new administration (Obama’s) would be taking over. The idea of announcing a rate increase, said Mouat, is maybe not what people need: it’s a matter of timing.

Collins’ take on the issue and the discussion to that point was that these are not rational decisions, they’re emotional ones. He said that merchant associations are emotional, but that Hall’s contention that everything else funded by TIF disappears if $3.65 million is borrowed from the fund was also emotional. Board member Joan Lowenstein warned that she did not want the board to adopt a Scarlett O’Hara frame of mind: I’ll think about that tomorrow. So she was interested to find out when “tomorrow” would come for this issue. Hieftje indicated it would be postponed until the second meeting in February if it’s on the agenda for Jan. 20. Lowenstein said that seeing it delayed for a month was a better alternative than some indefinite timeframe.

Hall said that the board could take the resolution (to delay the rate increase) off the table today and the board still had a packet ready to go to council for February – they didn’t need to pass some other resolution. The second issue, she said, is how they respond to MSAA, because the association had in effect said to the DDA, “We’re hurting. What can you do to help us?”

Responding to Hall, Collins said, “I must say that I think what you said about the downtown businesses is not true. They asked us to delay the rate increases. Don’t put meaning into something that they didn’t say with their rate request.” Hewitt expressed agreement with Joan, that a one-month delay is not a problem. He pointed out that the increase would go into effect 60 days after city council approved it, which would mean May 1, 2009 if it’s delayed until their second February meeting. Orr said that if rates were increase mid-summer after art fair time, without delays after that, they would be talking about much less than a $3.6 million shortfall. That would satisfy the financial aspects of the issue, and well as the emotional, which are, he said, real, too. For her part, Hall, was content that if the delay in the rate increase was lock-step with a delay in the underground parking garage project, then she didn’t see a problem. The problem, she said, would have arisen if the parking garage project is out ahead of the increase.

The board voted unanimously to postpone voting on the resolution.

Parking: Resolution to Direct Parking Proceeds to Housing

This resolution considered by the board called for allocating revenues generated from the Fifth & William surface parking lot (location of the old YMCA, which previously housed 100 single-resident-occupant rooms) to the DDA housing fund. Hewitt said he thought that it was a laudable idea, but that the board had just had a lengthy debate about keeping funds separate. Parking rates for the system are designed so that it supports itself, said Hewitt. He noted that $250,000 a year from TIF already goes to the housing fund. Moving funds around to make symbolic statements, he said, is not good practice.

Mouat agreed that keeping it “clean and neat” with respect to separation of funds is a good thing. But he noted that the lot in question is temporary, and wondered if it should really be considered a part of the “system.” He felt there was a reasonable justification for treating it separately.

Greff, responding to Mouat, said the lot really is a part of the system: there was equipment [payment kiosk, gates] that was necessary to convert the space to a parking lot and that it wasn’t free. She didn’t like the idea of “raiding that fund” but entertained the idea of matching with TIF funds the amount of revenue generated from that lot. Hieftje floated the idea of a sign in that parking lot that says proceeds from the lot help the DDA support affordable housing.

Boren characterized the revenue from that lot as “really gravy.” He thought that one way or another, whether they do it with an accounting trick or directly, the message would be: We don’t want to make money off this space, it’s temporary. Collins echoed Greff’s point that the DDA had already incurred costs, and pointed out that there are ongoing operational costs. In that light he wanted to clarify whether the amount to go into the housing fund would be net revenue or gross revenue and how much of the initial capital outlay would go into a calcualtion of net revenue. Pollay said she’d get net versus gross calculations if the board wanted to postpone the matter to the next DDA meeting. A postponement was passed. Only Keith Orr demurred.

Parking: Report on Parking Revenues

Hewitt gave a report on parking revenues for the month of November 2008. There were slight decreases in the numbers of hourly patrons compared to November 2007. Hewitt attributed this slight drop to the fact that there was one fewer business day in November 2008.

[Editor's note: In light of the discussion of possibly diverting parking revenues from the Fifth & William lot to the housing fund, it's worth noting that in November 2008 that lot took in $5,215 from 2,177 patrons.]

Parking: Report on AVI Card, Other Programs

Hewitt reported that there are now 10 AVI (automatic vehicle identification) cards in circulation as a part of a pilot program. He sketched out how the system works: a card on the windshield is scanned as it enters and exits a parking structure or lot. The user’s credit card is then billed monthly for actual parking usage. Boad member John Splitt is one of the pilot program participants, but reported that no charges have shown up on his credit card, yet. Hewitt noted that gates to parking facilities must be down all the time in order to scan in and out for AVI cards. This will have an impact on churches, whose congregations use the free parking in structures and lots on Sundays. He noted that they had no intention of instituting Sunday charges, but need the gates down to keep track. Communication with those churches about how they would be able to continue to use the free parking would be important, said Hewitt.

Hewitt also reported that parking validation stamps will be replaced with parking cards like those currently dispensed at parking facility gates. They will be set up with free time or reduced charge.

Hewitt reported on the valet service pilot program in place at the Maynard Street structure. The advantage is that you can put more cars in the same space compared with self-parking – 30-40% more, if everything was valet-parked. He promised monthly reporting on how it’s doing.

Forty locations for pay-by-space kiosks have been identified, said Hewitt, and staff have been directed to use their best judgment to get from 40 down to 25 for installation of units starting in March. Hewitt said that no rate changes were planned initially. After expansion, Hewitt said, demand-management features would be rolled out, which would adjust rates based on geography, time of day, and day of week.

Report on Fifth Avenue Underground Parking Garage

John Splitt gave an update on the project based on a meeting with the design team, which had provided images of the above-ground part, including Library Lane. Splitt said he thought it was very attractive. Issues discussed included environmental concerns (where does the dirt from the hole go?). The project was originally scheduled to go before council on Jan. 20, but now it will be the second meeting in February. Conversations continue with Tom Crawford, chief financial officer of the city of Ann Arbor. A fire hydrant placement problem has been solved, and discussions with DTE and AT&T will begin, because they can take a long time.

Some of the discussion on the design focused on the geothermal potential. A geothermal system might be used to ice-proof Library Lane, which is planned as a private street at this point.

[Editor's note: Ann Arbor does not currently have heated streets or sidewalks; snow and ice are cleared mechanically. Cf. next section.]

Public Comment: Snow Clearing

Ed Vielmetti: During the time afforded citizens to address the DDA board, Ed Vielmetti spoke, referencing last month’s meeting when he’d appeared to complain about bus schedules, and understood the board’s advice that his complaints should be directed to the Ann Arbor Transportation Authority (AATA). He’d made his own schedule, he said. He’d thought about talking about parking, having read Rob Goodspeed’s recent treatment of parking usage in downtown Ann Arbor, which indicated that the structures are “half-empty all the time.” Before Vielmetti could segue to his chosen topic, board member Rene Greff interjected, “They’re not half emply all the time!” Vielmetti clarified that there are about 15 minutes when the busiest structures are full, but other than that there’s a lot of empty spaces. Greff and Vielmetti agreed they might talk about it after the meeting.

The Chronicle found this example of a YakTrax footprint in the wild just outside its offices.

What Vielmetti was there to talk about was sidewalks, reasoning that the DDA had some actual responsibility for them. His observation that it sometimes snows in Ann Arbor earned a few chuckles from the board. When it snows, or we have an ice storm, Vielmetti said, the sidewalks get slippery and sometimes people can fall. And when they fall, he continued, they sometimes break the third metatarsal in their foot [an allusion to his own experience]. Vielmetti said that he thought the DDA could do a better job addressing downtown transportation options for pedestrians when it snows.

Vielmetti noted that it’s a complex issue because of the jurisdictional division: roads are the responsibility of one organization [the city], while the sidewalks are the responsibility of another organization [businesses or residents]. The big slush puddle that accumulates at the interface between the road and the sidewalk appears to be nobody’s responsibility, he said. It means that pedestrians – however they get downtown (by driving or riding the bus) – have to navigate through big slush puddles. Vielmetti said he didn’t have a specific suggestion, noting that he was not in the snow-clearing business. “But,” he said, “you guys are!” He showed the board his Christmas present from this year, YakTrax, which are rubber shoe pull-overs, with metal coils for traction.

Steve Bean: Bean said he was there to speak to the same topic as Vielmetti. We have a snow problem downtown, he declared, and referenced a comment thread on The Ann Arbor Chronicle. He sressed the importance of making the experience of being downtown as positive as possible for employees, residents and visitors. Bean said he notices the problem with snow removal walking around downtown, which he does almost daily. As his wife owns a business on Main Street, he said, he’s aware of the impact on retail. It’s a negative impact, Bean said, when parking spaces are unavailable because of snow extending into the street two weeks after the initial snow and there are puddles at intersections.

We have an opportunity to look at this and try to find a solution, he said, and he felt it was doable. He urged that it be thought of in terms of a strategy to get people to stay after graduating from the university. If they don’t have a good experience downtown in the winter, that could be the last straw against a decision to stay. Bean also pointed out that clear sidewalks were of particular importance to seniors and empty nesters, groups that had been identified as groups the downtown hoped to attract as residents.

Purchase of Video Equipment

The main highlight from the partnerships committee was a resolution to approve $43,800 to purchase and install cameras for broadcast of board meetings from the room where meetings are currently held. The resolution passed unanimously. Collins, who co-chairs the partnership committee, credited board chair Jennifer Hall with providing the impetus over the last six months to get to this point. Hieftje also expressed his appreciation, saying it’s overdue, and that he was impressed that the cost was not higher.

Hall thanked Collins for shepherding the issue even during meetings she had not been able to attend. One of the benefits to broadcasting from the existing space is that it’s configured so that the board and the audience are physically at the same level [as contrasted with city council chambers]. Collins indulged in one of the few remaining opportunities to kid around off camera by directing towards Hieftje a paraphrase of a line made famous by Bill Murray Dan Aykroyd on Saturday Night Live.

What they will buy: 4 cameras, 4 wall mount kits, 4 microphones, audio mixer, tricaster video system, toggle controller, cables, web archive interface, installation and labor.

Transportation

John Mouat, chair of the transportation committee, summarized the last meeting. The next guest to present to the transportation committee will be Sue Gott, a planner with the University of Michigan.

On the topic of the north-south connector, Hieftje confirmed sentiments that had been expressed at the committee meeting. He said that he’d met with Jim Kosteva (UM community relations director), Roger Fraser (city of Ann Arbor administrator), and Eli Cooper (transportation program manager with the city of Ann Arbor) and expressed to UM that they should not be considering the city and the DDA as separate entities.

The university, said Hieftje, will have to carry the freight if the project gets built, because most of the benefit accrue to UM. If they are unwilling to step up at this point, he wondered, then what will they do when it comes time to construct it? They will need to step up to the plate, he said: UM resources are much deeper.

Hieftje stressed, howver, that the city’s overall condition is strong: they had just received word that the city’s bond rating has been upgraded. But in the current economic climate, throwing $160,000 at a study could affect the ability to fund a police officer or two.

Downtown Area Citizens Advisory Council: Report on Meeting and the 100 Units of Affordable Housing

Ray Detter: Detter reported on the previous evening’s Downtown Area Citizens Advisory Council meeting. He said that the meetings were open to anyone who lived downtown and that this was really the only criterion. But, he said, two guys showed up who didn’t live downtown – they lived just outside the downtown. And it reminded him of an issue that has come up again and again recently in the context of planning documents that distinguish between the downtown defined by the DDA area, and the areas surrounding downtown. So the guys who showed up to the meeting were disappointed about not being able to be members, but Detter said they were invited to attend again and to participate as well, even though they wouldn’t be members.

Detter ticked through the substantive matters discussed by the advisory council, including the 415 W. Washington redevelopment process. That project has been returned to council for a revision of the RFP (request for proposal), in the hope that all proposers will consult and come up with a proposal that includes some housing. Detter said that the advisory council was committed to the Art Center’s proposal to turn the area in part into a cultural center. In a different part of the meeting (in his report from his participation on the 415 W. Washington review committee), John Mouat related that he’d begun to hear discussion of a performing arts component [cf. this caucus report]. Mouat also speculated that another possibility is the nearby YMCA on West Washington, which needs office space, and wondered if the YMCA could be the party who does the matchmaking.

Detter said that the advisory council had conveyed a list of their positions on the A2D2 rezoning initiative to the planning commission, which is reconsidering the matter, before it is eventually put before city council.

With respect to the recently introduced three possible sites to locate 100 units of supportive housing, Detter
said that the advisory council was still committed to a different site – namely, the first choice of the Housing and Human Services Advisory Board resolution. That resolution was to locate the housing on the old YMCA site, unless it was really clear that one of the other sites might be better. He said he felt that attention had turned away from that former YMCA lot as a possible site for location of the housing due to pressure from the Main Street Area Association and the Ann Arbor District Library.

He summarized the advisory council’s position on the siting of supportive housing by saying they’d support the proposal that had the best promise of working.

Mayor John Hieftje used time in the meeting alotted at the end to address the issue of where to site the housing that the YMCA previously offered. He stressed that what’s being proposed is much different from what existed at the YMCA, which was not a “front desk” model. Hieftje said that funding was in place to be able to do case management. The impact of residents on the surrounding area, Hieftje said, would be invisible. Responding to Detter’s earlier comments, he said that it was not a matter of resistance from Main Street merchants or the library that led the city to consider alternative sites, but rather economics: “It’d be free land.” Hieftje argued that the old YMCA site would throw off more money than the city had paid for it, and the profit could be put into supportive housing.

There is time at the end of the meeting to afford citizens additional time to participate, which Ray Detter took advantage of to briefly counter the mayor’s remarks. He pointed out that there was never any intention of using the old YMCA lot exclusively for supportive housing [Editor's note: William Street Station, a project that city council pulled the plug on, included market rate housing among other elements.]

Present: Gary Boren, Russ Collins, Rene Greff, Jennifer Hall, Roger Hewitt, John Hieftje, Joan Lowenstein, John Mouat, Keith Orr, John Splitt

Absent: Sandi Smith, Leah Gunn

Next meeting: noon on Wednesday, Feb. 4 at the DDA offices, 150 S. Fifth Ave., Suite 301. [confirm date]