Archive for April, 2013

Even in a smaller-sized city like Ann Arbor, governmental issues can be fairly complex. Still, our local issues are typically simple enough that they can be mastered even by an ordinary citizen who can read words on a page.

However, over the last several weeks, a significant issue has been brought forward for debate that’s been portrayed by some local officials as far more complex than that.

For now, let’s not even think about what the issue might be. It could be zoning. Or dog parks. Or parking rates. Or police staffing levels. Or public art. Or express bus service. Or outdoor signs. Or none of those. Call it Issue X.

As I’ve chronicled the workings of Ann Arbor’s local governance recently, I’ve watched as two local representatives – one elected and one appointed – have seemed to portray Issue X as too mathematically challenging to grasp. I chalk that up to politics: If the math can be set aside, then the conversation can more easily move to pure politics – the strong suit of elected and appointed officials.

To be clear, Issue X is fraught with politics. But I don’t think that focusing on the politics of Issue X serves the interests of Ann Arbor residents.

Issue X is also fraught with mathematical calculations. But not everyone is comfortable with equations.

So in this column I’ll sketch out an analogy that I think, on a purely conceptual level, accurately captures the essence of Issue X – in non-mathematical, non-political terms. [Full Story]

Ann Arbor city council meeting (April 1, 2013): The council’s first meeting in April featured some progress on items that have appeared repeatedly on its agenda in the last several weeks.

After two postponements, the council gave initial approval to a set of changes to the ordinance that establishes the Ann Arbor Downtown Development Authority (DDA). The changes can be divided into those that affect board composition and those that relate to the computation of the DDA’s tax increment finance (TIF) capture.

The tax calculations have implications of roughly $1 million a year for the DDA and the taxing jurisdictions whose taxes are captured by the DDA. Those taxing jurisdictions include the city of Ann Arbor, Washtenaw County, Washtenaw Community College and the Ann Arbor District Library. The vote was 7-3, as mayor John Hieftje, Margie Teall (Ward 4) and Chuck Warpehoski (Ward 5) voted no. Christopher Taylor (Ward 3) was absent. The final vote will likely come at the council’s April 15 meeting. Councilmembers are not obligated to vote the same way the second time around.

The council also wrapped up an issue that has appeared on its agenda for several meetings. At its March 18 meeting, the council had finally decided not to enact a moratorium on site plan applications in D1 (downtown core) zoning districts. Instead, the council had directed the planning commission to conduct a review of D1 zoning. But councilmembers had left open the question of the exact scope of work and the timeframe for its completion by planning commissioners. At the April 1 meeting, the council allowed the commission six months, until Oct. 1, to review the following: the appropriateness of D1 zoning on the north side of Huron Street between Division and South State and the south side of William Street between South Main and Fourth Avenue; the residential premiums; the zoning for the University of Michigan Credit Union parking lot.

Other business was further delayed by the council. At the developer’s request, the council postponed for a second time the 413 E. Huron project, a proposed 14-story, 216-apartment building at the northeast corner of Huron and Division streets. That project will come back before the council at its April 15 meeting. A new public hearing on the 413 E. Huron site plan application was started on April 1 and will continue on April 15.

The council also postponed a second and final vote on changes to the city’s sign ordinance. The changes would prohibit any new billboards, and allow only a limited range of digital signs. That won’t come back before the council until May 6. Several people addressed the council during the public hearing. All of them worked for Adams Outdoor Advertising, and spoke in opposition to the changes. Because of the postponement, the council extended a moratorium on digital sign applications, which has now been in place for a year.

The council also extended a moratorium on spending of monies that have been set aside under the city’s Percent for Art ordinance. A revision to that ordinance, which would likely eliminate the public art set-aside but still allow for aesthetic elements to be built into a project, is expected to be brought forward in the next few weeks. The public art ordinance revisions are being crafted by a council committee that was tasked with that responsibility in December of 2012.

At its April 1 meeting, the council also approved contracts for renovations at the Gallup Park canoe livery, and the Argo and Geddes dams. In addition, the council approved a lease for additional parking in connection with the Argo Cascades.

Other business at the meeting included council approval of the notice to issue bonds for the city’s drinking water system. The council also authorized contracts in connection with street reconstruction and sidewalk repair work for the 2013 season. [Full Story]

The Michigan Daily reports that a group of University of Michigan students is mulling the possibility of fielding candidates in Ann Arbor city council races this year. Calling themselves the Mixed Use Party, their platform includes zoning and land use issues, as well as TIF capture. [Source]

Changes to parking requirements, lot combinations, and creation of a possible new “group housing” zoning district are among the draft recommendations  that have been presented to Ann Arbor planning commissioners for the city’s R4c/R2A zoning districts. It’s a project that’s been years in the works. [.pdf of staff memo and proposed R4C/R2A draft recommendations]

An April 9, 2013 working session was a first chance for all commissioners to have a look at the recommendations, which will be formally presented at the commission’s April 16 regular meeting.

The commission’s ordinance revisions committee (ORC) has been working on draft recommendations since the summer of 2012. The committee’s work follows a report delivered in May 2012 by an R4C/R2A zoning district study advisory committee that had worked on the issue since December 2009. [.pdf of advisory committee report.

For more background on the issues leading up to this current study – which dates back several decades – see Chronicle coverage: "Planning Group Weighs R4C/R2A Report" and "Effort to Overhaul R4C Zoning Continues"] [Full Story]

A report on the March 20, 2013 meeting of the Washtenaw County board of commissioners incorrectly quoted commissioner Dan Smith (R-District 2). His statement at the meeting was: “I do know that if we did this contract in the traditional way … we wouldn’t have a bull’s-eye on our back for that.” We note the error here, and have corrected the original article.

Washtenaw County board of commissioners meeting (April 3, 2013): With a third of the board absent, commissioners were briefed on the county’s 2012 audit – with a look toward changes that will impact future financial statements. The audit was clean.

The county’s finance staff, along with the auditor, Mark Kettner of Rehmann, highlighted several points, including a relatively dramatic increase in the general fund balance over the last few years – from $9.7 million in 2009 to $16.8 million at the end of 2012. Kettner also explained upcoming accounting changes that will require unfunded liabilities from the county’s pension and retirement healthcare plans – now totaling nearly $250 million – to be recorded in a different way, with more disclosure.

The new accounting changes – required by the Governmental Accounting Standards Board (GASB) – won’t begin until 2015, but commissioner Dan Smith (R-District 2) wondered whether the county could implement the changes sooner. It might be possible, Kettner replied, but “I don’t know why you’d want to do it.” He suggested that the board hold a working session to go over the upcoming changes in more detail.

Kettner also pointed out that the changes will affect government entities in different ways. For example, it’s likely that there will be more impact on the city of Ann Arbor, because of how its many “enterprise” funds might be affected and the implications that would have on outstanding bonds. At minimum, the changes will mean more work for finance staff.

Also at the April 3 meeting, commissioners voted to add 39 new jobs in the community support and treatment service (CSTS) department, which provides mental health and substance abuse services to county residents. The work is primarily funded by the Washtenaw Community Health Organization, a partnership between the county and the University of Michigan Health System. Most of the new jobs are union positions. Dan Smith expressed concern about adding to the county’s payroll, but supported the resolution along with other commissioners in a unanimous vote.

The board also took an initial vote to dissolve The Washtenaw Ride. That Act 196 authority is a remnant of a failed attempt to create a countywide transit system last year. Efforts to expand the current reach of the Ann Arbor Transportation Authority are still underway, but don’t require the structure that was put in place under Act 196.

The topic of public transportation was raised later in the meeting as well, as Ronnie Peterson (D-District 6) asked about the county’s role in the southeast regional transit authority (RTA). The RTA was formed by the state legislature last year to coordinate regional transit in the city of Detroit and counties of Wayne, Macomb, Oakland and Washtenaw. There was not uniform support for Washtenaw County to be part of this effort, and it’s not yet clear what the impact will be on the AATA.

In other discussion, Yousef Rabhi (D-District 8) highlighted a proposal in front of the Ann Arbor city council regarding possible ordinance changes governing the Ann Arbor Downtown Development Authority. Depending on what the council decides, there might be implications for the county, he said, so he wanted to put it on the board’s radar. For background on this issue, see Chronicle coverage: “DDA Tax Capture Change Gets Initial OK” and “DDA Ramps Up PR after First Council Vote.”

Also briefly mentioned was a discussion that occurred at a late March county pension commission meeting, raising questions about the new labor contracts that the board approved on March 20, 2013. At issue is whether the county complied with a state law requiring supplemental actuarial analysis before pension benefit changes are adopted. The county administration subsequently conferred with outside legal counsel, and confirmed their view that no new actuarial analysis was necessary.

And although it wasn’t discussed at the April 3 board meeting, the recent labor contracts resulted in another issue related to compliance with state law: Elimination of the county’s healthcare benefits for domestic partners. [Full Story]

A column on BuzzFeed Sports tells the story of how David Barrett’s “One Shining Moment” – written 27 years ago – became the signature song for the NCAA basketball finals. “From the snare drum and piano that opens the segment to a few seconds later, when that familiar 11-note synth-trumpet kicks in, the interplay between words and harmony never veer from Barrett’s original architecture. In fact, despite all the iterations through the years, many of the same musical elements remain from that fall day in 1986, when a handful of men came together in an Ann Arbor studio to record the first song for the first time.” [Source]

As the University of Michigan prepares for the NCAA basketball championship game, New York Times columnist William Rhoden argues that it’s time for UM to reconcile with former Fab Five star Chris Webber: “… Michigan is the parent who took Webber and the Fab Five into the world of big-time college athletics. Indeed, [former UM basketball coach Bill] Frieder said he began recruiting Webber for Michigan when Webber was in seventh grade. The university owes Webber an apology as well.” [Source]

Photographer Myra Klarman has posted some gorgeous images taken at the April 5 FoolMoon festivities in downtown Ann Arbor, including luminaries that fit this year’s theme of “Foo[L]d” (Foolish Food) – a futomaki roll, Moon Pops, cupcakes, bananas, fish and more. As she writes, “a veritable smorgasbord of divine delectables.” [Source]

What if the city of Ann Arbor had a daily newspaper with a section dedicated to public safety? And what if city administrator Steve Powers were editor of the public safety section of the local paper? What would he want to read about in that section, if he were just a resident of the city, not its top official?

That hypothetical was part of an April 2 conversation between Powers, chief financial officer Tom Crawford, and Chronicle editor Dave Askins. The focus of the conversation was to confirm and clarify some of the ideas that have been expressed at the city council’s budget retreat and work sessions over the past few months.

Announced by Powers and Crawford at the most recent council work session, on March 25, is the fact that the budget proposal is now essentially “inside the box” – meaning that it falls within the parameters imposed on Crawford by the city council’s adopted fiscal discipline priority. [.pdf of general fund budget summary as of March 25]

The tentative summary of the general fund budget calls for recurring general fund expenditures in FY 2014 of roughly $80.8 million, with $83.6 million in expenditures the following year.

Until March 25, the draft two-year plan had called for expenditures that would have left the city’s general fund unrestricted balance at $13.1 million (16.1% of operating expenses) and $9.7 million (11.5%) for FY 2014 and FY 2015, respectively. In the second year of that plan, the 11.5% left the city well short of the 15-20% currently recommended by Crawford, even though it’s within the 8-12% mandated by city policy.

But on March 25, the revised budget proposal called for unrestricted fund balances of $13.8 million (17%) and $12.1 million (14.4%) for the respective years.

Also up to March 25, the budget proposal had called for a two-year deficit of $252,000 for a specific subset of line items – which included recurring revenues, recurring expenses, recurring new requests and one-time requests. That’s a number that Crawford wants to balance for the two-year plan, even if it doesn’t balance in any one year. On March 25, the new figure was positive at $699,000 – or almost $1 million better than the original proposal.

The conversation between Powers, Crawford and Askins is reported below in more detail.

Pulling out some highlights, the discussion confirmed that this year’s budget won’t include a significant re-thinking of service delivery. Greater efficiencies and improved service could result from taking advantage of opportunities as they arise, but the recent departure of IT director Dan Rainey is not seen as an immediate opportunity for that kind of efficiency  – say, through a further merging of the Washtenaw County and city IT operations. Rainey’s position will be filled. With respect to IT in general, the telecommunications component of the staff’s draft economic development work plan – referred to as “fiber optic to the premises” – is still so conceptual in nature that the question of funding hasn’t been explored in detail.

Communication to the public from the city – in the form of reliable, consistent information about police and fire incidents – is a key part of the council priority that Ann Arbor feel (and be) safe. Related to that priority, the city administrator appears receptive to the idea of a data feed produced by the city containing all the police and fire calls. He indicated that a survey of citizens on attitudes and experience with public safety, as well as a range of other topics, is likely to be included in the FY 2014 budget.

With regard to a tentative proposal to remove funding for re-use of the city-owned 415 W. Washington site, it appears that the change was purely a function of a desire to get the budget “into the box.” [Full Story]

[Full Story]

The Detroit Free Press reports on the annual Hash Bash, held Saturday on the University of Michigan Diag. The article quotes state Rep. Jeff Irwin, a Democrat from Ann Arbor: “… I believe we need to legalize marijuana. The amount of blood and treasure we’ve spilled in this drug war is an embarrassment to our country.” [Source]

Ann Arbor Downtown Development Authority board meeting (April 3, 2013): The board had no voting business on its agenda, but still dealt with serious business: the city council’s initial approval of changes to the DDA ordinance. The changes are meant to clarify the authority’s tax increment finance (TIF) capture, as well as place restrictions on board composition. [.pdf of Chapter 7 amendments]

The proposed amendments to Chapter 7 of the city code, given initial approval at the council’s April 1, 2013 meeting, would reduce the DDA’s TIF capture by roughly $931,000 for FY 2014 – compared to the amount the DDA would receive based on the DDA’s current interpretation of the ordinance. But in adopting its two-year budget recently, DDA did not factor in recent building projects in the downtown – which add to the increment on which the DDA can capture taxes, starting in FY 2014.

So compared to the amount of TIF revenue in the DDA’s adopted FY 2014 budget, the clarified calculations would result in only about $363,000 less TIF revenue for the DDA. And compared to the DDA’s adopted FY 2015 budget, the clarified calculations would result in about $74,000 less revenue than budgeted. The clarified calculations would result in TIF revenue to the DDA in FY 2014 and FY 2015 of $3.570 and $3.682 million, respectively.

A dispute on the clarity of the existing Chapter 7 language had emerged in May 2011 just as the DDA and the city were poised to sign a newly renegotiated agreement under which the DDA manages the public parking system. At that time, the city’s financial staff reportedly first noticed the implications of an existing Chapter 7 paragraph that appears to place a cap on the DDA’s TIF capture – a cap that’s calibrated to projections in the DDA’s TIF plan. The TIF cap rises each year based on forecast growth in the DDA’s TIF capture district.

Several board members weighed in on the issue during the April 3 meeting. The idea of any kind of cap – let alone one that’s based on estimates contained in the appendix of the DDA’s TIF plan – was sharply criticized by Joan Lowenstein, who characterized the approach as based on “a fallacy.” She also called the idea of a cap poor public policy. However, both the cap and its basis are already in the existing ordinance language that the city council’s ordinance amendment seeks to clarify.

Roger Hewitt took the board’s meeting as an opportunity to question whether the ordinance amendments actually clarify how the calculations are to be done, contending that he’d come up with different results than the city treasurer, starting from the same ordinance language. He cautioned that the DDA’s financial planning and the DDA’s budget would need to be re-evaluated – allowing for no “sacred cows” – if the council gave final approval to the ordinance changes.

Russ Collins contrasted the amount of net revenue received by the city from the geographic area of the DDA district before the DDA was established back in 1982, compared to today. The net proceeds from taxes and the public parking system (which lost about $250,000 a year during that era) came to about $1.25 million 30 years ago, according to Collins. Today, the city receives nearly $8 million annually – around $4 million in taxes, $3 million in parking revenue, and a grant to the city of roughly $0.5 million a year toward debt on the city’s new Justice Center building.

Bob Guenzel focused his remarks less on the financial side and more on the aspects of the ordinance change that would restrict future board membership. He saw no benefit to the proposed DDA term limits, noting that the city council has an opportunity to end a DDA board member’s service by deciding not to re-appoint someone to the board. John Mouat was critical of the proposed ordinance changes that would prevent elected officials of taxing jurisdictions from serving on the board, saying he’d found the participation of politically-connected people to be beneficial to the board.

The extended remarks by board members on the topic came in the context of a 7-3 vote by the city council on April 1, giving initial approval of the ordinance changes. [Christopher Taylor (Ward 3) was absent from the meeting of the 11-member council.] A second vote, expected at the council’s April 15 meeting, would be required to enact the changes. Based on their remarks made at the council table, two of the seven votes in support of the changes – by Marcia Higgins (Ward 4) and Sabra Briere (Ward 1) – were widely read as likely to change at the second vote. Ordinance changes require a six-vote majority.

In addition to discussion of the possible ordinance changes, the DDA heard its usual range of committee reports, including the monthly parking update. Public commentary related to a possible artificial ice-skating rink atop the Library Lane underground parking garage. [Full Story]

Ann Arbor greenbelt advisory commission meeting (April 4, 2013): An updated strategic plan for the city’s greenbelt program received unanimous approval at this month’s GAC meeting. The plan included only minor changes since the draft was reviewed in September of 2012.

The plan lays out a broad range of goals for the preservation of farmland and open space within the greenbelt boundaries. There are no significant changes from the last version approved in 2009, although the plan does include a new section on education and outreach.

The plan also includes the goal of establishing a greenbelt registry program, to formalize relationships with landowners who aren’t yet part of the greenbelt program, but who are committed to the program’s principles of land preservation. “It’s creating a pipeline of projects for the future,” said Dan Ezekiel, GAC’s chair. Three commissioners – Peter Allen, Shannon Brines and Archer Christian – agreed to work with Ginny Trocchio, who manages the greenbelt program, to develop a proposal for the full commission to consider.

Also at the April 4 meeting, Jennifer Fike – finance director for the Huron River Watershed Council – was introduced as a possible replacement on the commission for Laura Rubin. Rubin, who serves as HRWC’s executive director, fills a position on GAC that’s designated for an environmental organization. Her term ends on June 30. Because she is term-limited, she can’t be re-appointed.

Ezekiel noted that there are other vacancies as well, and that anyone who’s interested in applying should contact their city council representative. [.pdf of application form for city boards and commissions] Meetings for the commission are scheduled monthly, although the April meeting was only GAC’s second one in 2013. Both the January and March meetings were canceled. [Full Story]

Writing for Crain’s Detroit Business, Chris Gautz notes the coincidental timing of Ann Arbor-focused Pure Michigan ads running on cable TV at the same time as the University of Michigan men’s basketball team advances to the NCAA tournament’s Final Four. He quotes Michelle Begnoche, public relations manager for Travel Michigan: “This was planned before Michigan made the Final Four. But it’s a great story for us.” [Source]