Civic News Ticker

Employees of participating downtown Ann Arbor businesses will be able to use their go!passes to ride the bus for another year, without themselves paying a fare for any of their bus boardings.

Their fares will be paid by the Ann Arbor Downtown Development Authority – out of $674,264 that the DDA board has authorized to support the Ann Arbor Area Transportation Authority’s getDowntown program.

That amount includes operational and administrative overhead as well as reimbursements for fares. DDA board action came at its April 2, 2014 meeting. DDA board member Al McWilliams abstained from the vote, noting that getDowntown is a client of his marketing firm, Quack!Media.

The DDA has funded the program for more than a decade.

Under the rules of the program, a business or organization located within the DDA’s tax capture district can purchase bus passes for its employees for a nominal $10 apiece.

However, an “all-in” rule of the program requires that passes must be purchased for all employees, whether the passes will be used by every employee or not.

The DDA reimburses the AAATA based on the actual use of go!passes, which has shown steady increases over the last 10 years:

As a fraction of total rides taken on the AAATA, go!pass rides account for about 10%. The amount reimbursed by the DDA per go!pass use is $0.90. A “use” is a boarding of a bus, not a “connected trip.”

If a go!pass holder has a commute that involves a transfer from one bus route to another, then commuting both ways to work – which would count as just two connected trips – would generate a total of four boardings. The $0.90 go!pass cost per boarding is based on the number of boardings an average holder of the AAATA’s 30-day pass makes – divided into the cost for such a pass. A 30-day pass, with unlimited boardings, is available to anyone and costs $58. A holder of a 30-day pass who commutes both ways to work five days a week, using routes that require a transfer, would effectively be paying $0.64 per boarding [58/(22.667*4)]. Transfers don’t cost any extra on the AAATA system – so compared to the $1.50 full fare, such a rider would be paying $1.30 per trip.

A breakdown of the specific costs the DDA board agreed to fund in its April 2 action includes the following, which amounts to $674,264 for FY 2015, compared to $610,662 in FY 2014. The amounts allocated last year for each item are indicated in square brackets. Descriptions are summarized from getDowntown descriptions.

• getDowntown: [$40,488] $40,000. Support for programs, services, outreach and marketing to encourage downtown employers/employees to use transportation alternatives. 2015 Survey of Decision Makers and Employers.
• go!pass: [$479,000] $529,000. Transit incentive for employees. Cost increase due to estimated 5% increase in ridership over FY 2014. Reimbursement is $.90 per ride.
• NightRide improvements and go!pass discount: [$18,233] $20,500. For evening employees who depend on transit to get to work. Increase in amount reflects an increased demand for service and increase in ridership.
• Route #4 Washtenaw enhanced service: [$56,363] $57,772. Bus route with highest downtown employee ridership. The increase reflects a 2.5% cost of living increase due to increase in diesel fuel cost and operator wages.
• Route #5 Packard enhanced service: [$16,578] $16,992. Route used by significant numbers of downtown employees. The increase reflects a 2.5% cost of living increase due to increase in diesel fuel cost and operator wages.
• ExpressRide go!pass discount: [$0] $10,000. Service from Canton and Chelsea to Ann Arbor.

This brief was filed from the DDA offices at 150 S. Fifth Ave., where the DDA board holds its meetings. A more detailed report of the meeting will follow: [link]

The Ann Arbor Housing Commission has received a grant of $600,000 to put into capital improvements to two properties in or near the Ann Arbor Downtown Development Authority tax capture district: Baker Commons and Miller Manor.

Baker Commons is a 64-unit building located at the southeast corner of Packard and Main, within the DDA district. Miller Manor is a 103-unit building on Miller Avenue outside the DDA district, but within a quarter-mile of the district boundary. That conforms with the DDA’s policy on use of its tax increment finance (TIF) funds for housing.

The $600,000 – which is to be paid in three $200,000 annual installments starting this year – was approved at the DDA board’s April 2, 2014 meeting. The grant will support planned capital improvements at the two public housing facilities. [.pdf of Baker Commons plan] [.pdf of Miller Manor plan] DDA board member John Mouat abstained from the vote, noting that the AAHC is a longtime client of his business, Mitchell & Mouat Architects.

The $600,000 amount will push the total contribution by the DDA to AAHC – from 2012 through 2016 – to at least $1.16 million. The April 2 board action comes in addition to a $300,000 grant made by the DDA board to AAHC for Baker Commons a year ago at its March 6, 2013 meeting. That grant was for driveway and sidewalk replacement and repair; installation of energy-efficient lighting; insulation and air sealing; window replacement; adding a second entrance; door replacement; upgrade of fixtures appliances, flooring and cabinetry; replacement of heating and cooling units; generator replacement, elevator replacement, upgrade of common area furniture, and installation of additional security cameras. As part of the DDA board’s April 2 action, it extended the term of the $300,000 grant, as the AAHC has not yet used the funds.

Prior to that, at its Oct. 3, 2012 meeting, the DDA board had granted $260,000 to the AAHC for the replacement of the roof on Baker Commons.

For many DDA board members, the $600,000 grant to AAHC this year was contingent on action by the city council  to grant a similar $600,000 request made by AAHC of the city of Ann Arbor. At its March 3, 2014 meeting, the council directed the city administrator to develop a budget amendment that would allocate $600,000 from the city’s affordable housing trust fund to help the AAHC pay for capital improvements.

Approval of that amendment by the city council would be contingent on the upcoming closing of the sale of city-owned property at Fifth & William in downtown Ann Arbor – the former Y lot. Net proceeds of the sale, at around $1.4 million, are to be deposited in the affordable housing trust fund. The closing on the property was scheduled for April 2, 2014.

This brief was filed from the DDA offices at 150 S. Fifth Ave., where the DDA board holds its meetings. A more detailed report of the meeting will follow: [link]

The Ann Arbor planning commission has recommended approval of several amendments to the city’s zoning ordinance related to drive-thrus. The action took place at the commission’s April 1, 2014 meeting.

If approved by the city council, the amendments would add a definition of a “drive-thru facility” to Chapter 55 of the city code. Currently, the term used throughout the code is “drive-in,” which is not explicitly defined in the code.

In addition, the changes would require drive-thrus to obtain special exception use permits, which would be allowed only in the O (office), C2B (business service) and C3 (fringe commercial) zoning districts. Basic layout requirements would also be added to the ordinance. Currently, drive-thrus are allowed in C3 districts without a special exception use. They are allowed as special exception uses in the C2B district.

When considering whether to grant a special exception use – which does not require additional city council approval – the planning commission considers these issues:

1. Is the location, size and character of the proposed use compatible with the principal uses of the district and adjacent districts? Is it consistent with the Master Plan? Is it consistent with the surrounding area? Will it have any detrimental effects to the use or value of surrounding area, or the natural environment?

2. Is the location, size, character, layout, access and traffic generated by the use hazardous or inconvenient or conflicting with the normal traffic of the neighborhood? Is off-street parking safe for pedestrians? Do the necessary vehicular turning movements block normal traffic flow? Are any additional public services or facilities needed by the use, and will they be detrimental to the community?

3. Is the maximum density and minimum required open space at least equal to the standards normally required by the Zoning Ordinance for the district?

The changes will give planning commissioners more discretion in approving drive-thru businesses, including restaurants, banks, pharmacies and other types of drive-thrus. Commissioner Jeremy Peters noted that he preferred the approach of requiring a special exception use, rather than an outright prohibition of drive-thrus.

The proposed amendments were first reviewed by the commission’s ordinance revisions committee in 2007, but never moved forward to the full commission for consideration. The ORC most recently reviewed these changes in March of 2014. [.pdf of staff memo and proposed amendments]

This brief was filed from the second floor council chambers at city hall, 301 E. Huron. A more detailed report will follow: [link]

The Ann Arbor planning commission has recommended approval of the site plan for Ruth’s Chris Steak House. The action took place at the commission’s April 1, 2014 meeting.

The site plan calls for renovating the single-story building at 314 S. Fourth Ave. and putting up a 1,943-square-foot second-floor mezzanine addition over the front part of the existing building. The current structure is 8,024 square feet, and most recently housed the Dream Nite Club, which closed in 2012. The project is estimated to cost $2.2 million. [.pdf of staff report]

The recommendation of approval is contingent on addressing the following issues: (1) a discrepancy in the property legal description; (2) a license agreement for emergency egress across the front of the Fourth & William parking structure; and (3) construction of one bicycle parking space in the Fourth & William parking structure or payment to the Ann Arbor Downtown Development Authority to install the space.

Part of the planning commission’s discussion focused on whether there might be outdoor dining in front of the restaurant. The project’s architect indicated that at this point, outdoor seating wouldn’t be appropriate, in part because of bus traffic. The building is located near the Blake Transit Center, a hub for public transportation. The architect also indicated that the restaurant will be using valet parking, with valets positioned in front of the building.

This would be the first Ruth’s Chris Steak House in Ann Arbor. The chain is based in Florida, with locations nationwide.

This brief was filed from the second floor council chambers at city hall, 301 E. Huron. A more detailed report will follow: [link]

The Ann Arbor city council is expected to consider a resolution at its April 7, 2014 meeting that would direct the city administrator to allocate half the proceeds from a possible upcoming real estate sale to support affordable housing. The land in question is the surface of the Library Lane underground parking structure, which completed construction in the summer of 2012. [.pdf of draft resolution on Library Lot sale]

From the resolution: “Resolved, That City Council direct the City Administrator to allocate 50% of any and all proceeds, after fees and closing costs, from the sale of development rights at 319 S. Fifth Avenue [the Library Lane lot] to the affordable housing fund.” Use of money in the city’s affordable housing trust fund is subject to recommendations by the housing and human services advisory board (HHSAB).

Based on a ballpark estimated value for the property of $6-7 million dollars – given by Jim Chaconas of Colliers International at the council’s March 17, 2014 meeting – the resolution would translate to somewhere in the neighborhood of $3 million to support affordable housing, depending on fees and closing costs.

No specific deal appears to be in the offing to develop the top of the structure. But the council voted at its March 17, 2014 meeting to hire a brokerage service to list the development rights to the top of the underground parking garage for sale. At the same meeting, the council passed a separate resolution that reserved 6,500-12,000 square feet on the Library Lane site for a publicly owned urban park.

The resolution allocating 50% of proceeds of a Library Lane sale to support affordable housing is sponsored by four councilmembers: Sabra Briere (Ward 1), Christopher Taylor (Ward 3), Chuck Warpehoski (Ward 5) and mayor John Hieftje.

The strategy of channeling at least some of the proceeds of land sales to support affordable housing efforts has been a consistent part of city policy dating back several years. However, the council has not always agreed on the portion of a sale that should be allocated to support affordable housing. At the March 16 Sunday night caucus, Briere indicated one reason she might be reluctant at the following evening’s council meeting to support the hiring of a broker to list the Library Lane development rights for sale: She did not at this time want to take on the fight with other councilmembers about what to do with the proceeds. But Briere voted with seven of her colleagues on the 8-1 vote that saw only Sumi Kailasapathy (Ward 1) dissenting. Sally Petersen (Ward 2) and Margie Teall (Ward 4) were not present for that vote.

The pending sale of the former Y lot in downtown Ann Arbor – on William between Fourth and Fifth avenues, across the street from the Library Lane site – is expected to generate roughly $1.4 million in net proceeds from the $5.25 million purchase price. That sale to hotelier Dennis Dahlmann has a closing date on April 2, 2014. The council voted at its Dec. 16, 2013 meeting to allocate all of those net proceeds to the affordable housing trust fund. More recently, at its March 3, 2014 meeting, the council directed the city administrator to prepare a budget resolution that would – upon completion of the former Y lot sale – allocate $600,000 from the affordable housing trust fund to the Ann Arbor Housing Commission, to support major capital improvements to its properties.

More than a year ago, at its Oct. 15, 2012 meeting, the council adopted a general policy on proceeds of land sales that was based on a budget committee recommendation. Essentially the policy is to consider land sales on a case-by-case basis, considering all the needs of the city. A nod to affordable housing was included in an amendment added at the council meeting in the form of a statement that all needs of the city would be considered in deciding the use of land sale proceeds – but “especially the need for affordable housing.”

The draft resolution to be considered at the April 7, 2014 council meeting cites the budget committee’s recommendation, which was adopted in the Oct. 15, 2012 council resolution, that “no less than 10% of net proceeds of any sale will be allocated and distributed to the affordable housing trust fund …”

Two more candidates have filed to run for seats on the Washtenaw County board of commissioners in the Aug. 5, 2014 primary election.

Incumbent Democrat Ronnie Peterson paid a $100 fee on March 25 to appear on the ballot for District 6, which includes Ypsilanti and parts of Ypsilanti Township and Superior Township. And Wilma Gold-Jones, a Democrat from Ypsilanti Township, has filed the required number of signatures to be put on the ballot in District 5. She filed petitions on March 14, and the signatures she collected were subsequently validated by the county elections director. The incumbent in that seat, Rolland Sizemore Jr., previously had announced his intent not to seek re-election. District 5 covers southeast Washtenaw, including Augusta Township and much of Ypsilanti Township.

April 22 is the filing deadline for partisan candidates to be on the ballot for the Aug. 5 primary. For the office of county commissioner, candidates can file either 50 signatures from their district or pay a $100 fee to appear on the ballot.

The county board has nine seats. All commissioners serve two-year terms, and all seats are up for election in 2014. Commissioners elected in November will begin their new terms on Jan. 1, 2015.

Three other candidates had already filed the necessary paperwork to run for county commissioner in 2014, including two incumbents: Republican Dan Smith of District 2 and Democrat Kent Martinez-Kratz of District 1. Also on the ballot in District 1 is Republican Larry Murphy. District 1 covers west and northwest portions of the county, including Chelsea and Dexter. District 2 covers north and northeast portions of Washtenaw County, including a northern part of Ann Arbor.

The three incumbent Democrats representing Ann Arbor districts – Andy LaBarre (District 7), Yousef Rabhi (District 8) and Conan Smith (District 9) – have all indicated their intent to run for re-election, but have not yet filed with the clerk’s office. Conan Smith, who had been considering other options, announced his decision to seek re-election about a week ago, on March 22.

According to Ann Arbor city clerk Jackie Beaudry, the first batch of absentee ballots have been mailed out to those who’ve requested them for the May 6, 2014 election.

On May 6, voters in three jurisdictions – the city of Ann Arbor, the city of Ypsilanti and Ypsilanti Township – will be asked to approve a 0.7 mill tax to support improvements to transportation service. The board of the Ann Arbor Area Transportation Authority voted at its Feb. 20, 2014 meeting to place the question on the ballot.

In Ann Arbor, 1,529 absentee ballots were sent out in the first wave.

Of the 1,529 ballots, the initial distribution across Ann Arbor’s five wards appears to be skewed somewhat more heavily toward voters in Ward 2, with roughly 27% of the ballots requested from that ward. Based on requested ballots, the lightest participation so far is in Ward 1, with roughly 11% of the AV ballots requested from that ward. Precise figures are difficult to calculate, because some of the combined precincts for this election cross ward boundaries.

Registered voters can apply for an absentee ballot by mail until May 3. Registered voters can also apply for and vote an absentee ballot in-person at the city clerk’s office at city hall on the day before the election. The absentee ballot application form can be mailed or hand delivered to the city clerk at 301 E. Huron St., Ann Arbor, MI 48104. It can also be scanned and emailed to cityclerk@a2gov.org.

Two new potential candidates for Ann Arbor city council – Nancy Kaplan in Ward 2 and Leon Bryson in Ward 5 – have taken steps toward running in the Aug. 5, 2014 Democratic primary. And in Ward 3, Bob Dascola has filed petitions, though he’s been told by the city clerk’s office that he’s not eligible to run.

In Ward 2, Nancy Kaplan – who serves on the board of the Ann Arbor District Library – took out petitions on Wednesday, March 26 to run for the city council seat. Kaplan’s term on the AADL board runs through 2016. Another potential candidate in Ward 2, Kirk Westphal, took out petitions on Jan. 15 but has not yet filed signatures. Westphal currently serves as chair of the city’s planning commission.

The Ward 2 incumbent, Sally Petersen, is not running for re-election to that seat. She’s one of four sitting councilmembers who are running for mayor instead.

In Ward 5, Leon Bryson took out petitions on Tuesday, March 25 to run against incumbent Chuck Warpehoski, who took out petitions on Nov. 7, 2013.

In Ward 3, Dascola filed petitions on March 26 to run for city council. However, the city clerk’s office has informed him that he’s not eligible to run because he doesn’t meet the city’s one-year residency and voter registration requirement. [Updated March 28: The city clerk's office has now verified 103 signatures for Dascola, but the question about his eligibility remains.] The other candidate who has taken out petitions for that race is Julie Grand. She competed in the August 2013 primary against Stephen Kunselman, who received more votes in that race. The seat is open this year because incumbent Christopher Taylor is running for mayor.

April 22 is the deadline to file petitions for the Ann Arbor city council and mayor in the Aug. 5 partisan primary. So far, only two candidates who’ve been declared eligible have filed the number of signatures required to appear on the ballot – 250 for mayor (50 from each of the city’s five wards) and 100 for council. Ward 3 councilmember Stephen Kunselman filed signatures on March 17, and 286 signatures were verified by the city clerk’s office on March 18 – so he’ll appear on the mayoral ballot for the Aug. 5 Democratic primary.  Other councilmembers who have taken out petitions for mayor are Sabra Briere (Ward 1), Sally Petersen (Ward 2) and Christopher Taylor (Ward 3).

Ward 1 incumbent Sumi Kailasapathy filed petitions on March 19, and 102 signatures were verified by the clerk’s office on March 20. The only other person shown in city clerk records to have taken out petitions for Ward 1 is Eric Sturgis. But an asterisk recorded next to his name includes a note that says Sturgis has indicated to the clerk’s office that he does not intend to file signatures to become a candidate. Sturgis contested the Ward 1 Democratic primary in 2012, which was won by Kailasapathy.

The only candidate to take out petitions in Ward 4 is Graydon Krapohl, who currently serves as vice chair of the city’s park advisory commission. The incumbent, Margie Teall, has stated that she does not intend to run for re-election.

All candidates who have taken out petitions so far are Democrats.

At its April 7, 2014 meeting, the Ann Arbor city council is expected to consider a resolution asking that Michigan state officials stop opposing a recent court ruling that allows same-sex marriages. [.pdf of draft resolution on same-sex marriage]

The ruling in question was issued by federal judge Bernard Friedman on Friday, March 21, 2014 in the case of Deboer v. Snyder. In that ruling, Friedman found that Article I, Section 25 of the Michigan Constitution – which limits the benefits of marriage to unions between one man and one woman – did not advance any legitimate state interest. So the ruling had the effect of making same-sex marriages legal in Michigan.

But the day following the decision, on March 22, the U.S. Court of Appeals for the Sixth Circuit issued a temporary stay on Friedman’s ruling. Michigan’s Gov. Rick Snyder and Attorney General Bill Schuette are appealing Friedman’s decision.

The council’s resolution reads in part:

RESOLVED, That the Ann Arbor City Council urges Governor Snyder and Attorney General Schuette to immediately suspend all efforts to appeal or otherwise contest Judge Friedman’s Ruling…

Before the stay on Friedman’s ruling took effect, Washtenaw County clerk Larry Kestenbaum opened his office for business on Saturday, March 22, and issued 74 marriage licenses for same-sex couples in Washtenaw County. The county board had already set the stage for those couples to receive what practically amounts to a fee waiver for the expedited processing of a license, which ordinarily takes three days. The “fee” approved by the board at its Feb. 19, 2014 meeting reduced the usual fee from $50 to 1 cent.

The resolution passed by the board on Feb. 19 allows the county clerk, consulting with the county administrator, to establish a “fee holiday” on the day preceding a period during which the office’s vital records division would be closed for four or more days, or when an unusual number of marriage license applicants are expected to appear. During a “fee holiday,” the charge for immediately processing a marriage license is 1 cent.

The resolution expected to be considered by the Ann Arbor city council at its April 7 meeting currently has four sponsors: Christopher Taylor (Ward 3), Margie Teall (Ward 4), Sabra Briere (Ward 1) and Chuck Warpehoski (Ward 5).

Democrat Conan Smith has announced his intent to seek re-election to the Washtenaw County board of commissioners, representing District 9 in Ann Arbor.

He emailed The Chronicle about his decision on Saturday, March 22, 2014 and posted a comment on his Facebook page the following day, on March 23.

Smith was elected to his first two-year term on the county board in 2004. He served as board chair in 2011 and 2012. He is executive director of the Michigan Suburbs Alliance, a nonprofit based in Ferndale.

Smith is married to Rebekah Warren, a state senator representing District 18. Earlier this month, Smith told The Chronicle that his decision on seeking re-election hinged in part on whether Warren would decide to run for Congress. She had formed a Congressional exploratory committee for the 12th District seat held by Rep. John Dingell, who is not seeking re-election. But on March 7, Warren announced her decision not to run for that office, and to instead seek re-election to the state Senate.

It was also speculated that Smith might run for mayor of Ann Arbor. He’s the grandson of Ann Arbor’s first black mayor, Al Wheeler. So far, four current city councilmembers have announced their intent to run for that position: Sabra Briere, Stephen Kunselman, Sally Petersen, and Christopher Taylor. All are Democrats.

In his Facebook post, Smith cited several things he’d like to accomplish during another term on the Washtenaw County board:

There are a lot of big things on the horizon at the County that I’d love to see come to term. I wrote a Regional Prosperity Initiative grant that is going to help us restructure our workforce development programs and create new ways to deliver adult education. Verna J. McDaniel’s first four-year budget just won an award from the Alliance for Innovation, and I’m eager to expand on the success there integrating impacts and outcomes into our fiscal strategy. Robert Tetens and Rolland Sizemore are so close to building a new Rec Center in Ypsi on Water Street, which could be a strong anchor for a number of physical and programmatic investments on the east side of the County to help restore prosperity to hard hit communities.

April 22 is the filing deadline for partisan candidates  to be on the ballot for the Aug. 5 primary. For the office of county commissioner, candidates can file either 50 signatures from their district or pay a $100 fee to appear on the ballot.

The county board has nine seats. All commissioners serve two-year terms, and all seats are up for election in 2014. Commissioners elected in November will begin their new terms on Jan. 1, 2015.

So far, three candidates have filed petitions with the Washtenaw County clerk’s office to run for county commissioner in 2014, including two incumbents: Republican Dan Smith of District 2 and Democrat Kent Martinez-Kratz of District 1. Also running in District 1 is the third candidate to file – Republican Larry Murphy.

Rolland Sizemore Jr., a Democrat from Ypsilanti Township representing District 5, has announced that he does not intend to seek re-election. Sizemore and Ronnie Peterson (D-District 6) are the longest-serving current commissioners. Both were initially elected in November 2000, with their first terms beginning in January of 2001. Peterson’s district includes the city of Ypsilanti and small sections of Ypsilanti and Superior townships. Most other current commissioners were first elected in 2010 or 2012, with the exception of Conan Smith, who was elected in November 2004.

Other candidates have indicated plans to run for county commissioner, including incumbents Democrats Andy LaBarre (D-District 7) and Yousef Rabhi (D-District 8), both of Ann Arbor.

Michigan Flyer will provide transportation between downtown Ann Arbor and Detroit Metro Airport for a third year, in a service called AirRide. Action by the Ann Arbor Area Transportation Authority board on a contract that pays Michigan Flyer an amount not to exceed $170,000 came at the board’s March 20, 2014 meeting.

Two years ago, the board had authorized Michigan Flyer’s two-year contract, with the possibility of three one-year extensions, at its Feb. 16, 2012 board meeting.

The first year of the contract specified an amount not to exceed $700,000 per year. The first year’s cost proved to be less than half that ($326,600) due to higher-than-projected ridership. The anticipated cost for the second year of the agreement was expected to be $216,522.

Based on additional negotiations, the cost of service for the third year is not expected to be more than $170,000. That cost will include AAATA’s share of an AirRide/Michigan Flyer staff position – who will help passengers board and load luggage. The drop in cost to the AAATA is in part attributable to Michigan Flyer’s receipt of a federal Transportation, Community, and System Preservation (TCSP) grant award. The third year of service includes adjustments that eliminate the stop on the University of Michigan central campus transit center, but add a 13th trip between Ann Arbor and Detroit Metro Airport.

This brief was filed from the boardroom at the downtown Ann Arbor District Library at 343 S. Fifth Ave., where the AAATA board holds its meetings. A more detailed report of the meeting will follow: [link]

After the Ann Arbor city council voted on March 17, 2014 to waive attorney-client privilege on a memo written by outside bond counsel, the city of Ann Arbor has provided the document to The Chronicle in response to a request made under Michigan’s Freedom of Information Act.  [.pdf of Aug. 9, 2012 Dykema memo]

The Chronicle has not yet reviewed the memo, which deals with private-use tests as applied to the Library Lane underground parking structure. The private-use limitations stem from the fact that the structure was financed with Build America Bonds. For additional background, see: “Column: Rocking Back on the Library Lot.”

At its March 19, 2014 meeting, the Washtenaw County board of commissioners made appointments to six county committees, commissions and boards. [.pdf of application packet]

The appointments included naming former Superior Township supervisor Bill McFarlane to the Washtenaw County road commission board, to fill the seat left vacant by the recent death of long-time road commissioner Fred Veigel. The remainder of that six-year term runs through Dec. 31, 2014. Unlike most other county appointed boards, road commissioners receive annual compensation of $10,500.

McFarlane was among 10 applicants for the position. Others who applied included former county commissioner Rob Turner; Mike Henry, chair of the Ann Arbor Democratic Party; and University Bank CEO Stephen Ranzini.

Nominations are made by the board chair. The current board chair is Yousef Rabhi (D-District 8). Before the vote on the road commission appointment, there was discussion about changing the process so that interviews with applicants would be held at a public meeting.

Andy LaBarre (D-District 7) noted that the road commission would be the topic of a April 17 working session, which he chairs. He suggested continuing discussion of the issue at that time. The working session will also include a report from the subcommittee that is making recommendations on the future of the road commission. For additional background, see Chronicle coverage: “No Major Change Likely for Road Commission.”

Rabhi described the process of nominating a new road commissioner as a difficult one, and highlighted the need for a five-member road commission. Currently the road commission board consists of three members. It’s an issue that Rabhi plans to bring up at the April 17 working session.

Several other appointments were made on March 19 in a separate vote:

• Accommodations ordinance commission, for a term ending Dec. 31, 2014: Andy LaBarre (D-District 7).
• Agricultural lands preservation advisory committee, for a term ending Dec. 31, 2014: Erica Bloom (environmental/conservation group/natural resources professional).
• Workforce development board, for terms ending Dec. 31, 2016: John Haberthy (private sector) and Matthew Sandstrom (private sector).

In addition, five appointments were made to the Act 88 advisory committee, for terms ending Dec. 31, 2014. Three county commissioners – Conan Smith (D-District 9), Alicia Ping (R-District 3) and Ronnie Peterson (D-District 6) – were appointed, along with citizens Todd Clark and Art Serafinski.

Action on appointing the Act 88 advisory committee had been originally considered at the board’s Feb. 19, 2014 meeting. The item was postponed after Ronnie Peterson (D-District 6) raised concerns over the policy governing the committee’s role. The committee had been created at the board’s Nov. 6, 2013 meeting, as part of a broader policy to help the board allocate revenues levied under Act 88 of 1913. No appointments had been made at that time, however. The county levies the tax to fund economic development and agricultural activities, including Ann Arbor SPARK. [.pdf of March 19 staff memo on Act 88]

This brief was filed from the boardroom of the county administration building at 220 N. Main St. in Ann Arbor. A more detailed report will follow: [link]

A mineral mining proposal in Lyndon Township received formal opposition from the Washtenaw County board of commissioners at its March 19, 2014 meeting.

On a majority vote, the board passed a resolution that “formally opposes the establishment of the proposed McCoig Materials mining operation in Lyndon Township on the basis of the very serious negative consequences to the surrounding communities.” The company is proposing a sand and gravel mine on 189 acres north of Chelsea on M-52. The rural site is located near several parks and nature areas, including  Waterloo State Recreation Area, the Pinckney State Recreation Area, Park Lyndon, the Green Lake Camping area, and the Waterloo-Pinckney Hiking Trail.

McCoig is asking Lyndon Township for special land use zoning and has submitted an application for a mineral mining operation. Public hearings on the issue have drawn heavy opposition. On its website, the township has noted that its authority is limited:

Michigan State Legislators have greatly reduced township control by passing Act 110 of 2006 (125.3205). Under that law, the township must not “prevent the extraction, by mining, of valuable natural resources from any property unless very serious consequences would result from the extraction of those natural resources. Natural resources are considered valuable for the purposes of this section if a person, by extracting the natural resources, can receive revenue and reasonably expect to operate at a profit.” The township’s authority is limited to “reasonable regulation of hours of operation, blasting hours, noise levels, dust control measures, and traffic that are not preempted by part 632 of the Michigan environmental laws,” 1994 PA 451, MCL 324.63201 to 324.63223.

The county board’s resolution addresses these issues, stating in its whereas clauses that “the noise, dust, air pollution, and additional heavy traffic generated by the operation of the mine and the transportation of the minerals will likely have serious negative consequences for the natural environment and wildlife …” [.pdf of full resolution]

The issue was also raised during the March 11, 2014 meeting of the Washtenaw County parks & recreation commission. WCPARC director Bob Tetens subsequently sent a letter to Lyndon Township supervisor Mark Keezer outlining several concerns with the project. [.pdf of Tetens letter] The letter indicates that WCPARC is willing to purchase the property.

During deliberations on March 19, Dan Smith (R-District 2) objected to the county board weighing in on an issue that’s not within its purview. Conan Smith (D-District 9) argued that because the county owns land in that township, it has a vested interest. Yousef Rabhi (D-District 8) said it was a broader community issue that should be a concern for all residents. Kent Martinez-Kratz (D-District 1) – who represents a district that includes Lyndon Township – described it as an economic and environmental issue.

When called on to vote, Dan Smith (R-District 2) did not vote yes or no, but instead stated “present.” Martinez-Kratz asked corporation counsel Curtis Hedger for clarification about how Smith’s vote would be recorded. The board rules state that a commissioner must vote yes or no unless there’s a conflict of interest, but Hedger noted that there’s no mechanism to enforce it. He characterized Smith’s vote as a “soft no.” It will be recorded that Smith stated “present,” Hedger said, with a note about the board rules.

Alicia Ping (R-District 3) was absent from the meeting.

This brief was filed from the boardroom of the county administration building at 220 N. Main St. in Ann Arbor. A more detailed report will follow: [link]

In an annual action to help the cash flow of local governments in Washtenaw County, the county board of commissioners gave initial authorization to county treasurer Catherine McClary to borrow up to $30 million against the amount of delinquent property taxes in all of the county’s 80 taxing jurisdictions. The action took place at the board’s March 19, 2014 meeting, with a final vote expected on April 2.

It’s a standard practice to help the local jurisdictions manage their cash flow. The estimated amount of delinquent taxes is lower than in recent years, possibly reflecting a recovering economy. Last year, the board authorized borrowing up to $40 million. [.pdf of delinquent tax resolution]

After March 1, taxing jurisdictions – including cities, townships, schools systems and libraries, among others – turn their delinquent taxes over to the county, and are reimbursed for that amount. The county treasurer then assumes responsibility for collecting these delinquent taxes. This is a standard procedure that’s conducted annually at this time of year. The borrowed funds are used for cash flow purposes, to fund operations for the first half of the year.

Under the state’s General Property Tax Act, the county treasurer is required to collect delinquent taxes. Section 87 of the act allows the county to set up a revolving fund – which was done several decades ago – so that the county can borrow the estimated amount of delinquent taxes, then pay in advance to all the taxing jurisdictions the amount that they would have collected if there had been no delinquent payments.

This brief was filed from the boardroom of the county administration building at 220 N. Main St. in Ann Arbor. A more detailed report will follow: [link]

Washtenaw County employees will soon be able to get health insurance coverage for the treatment of autism, following action at the county board’s March 19, 2014 meeting. In a unanimous vote, the board gave initial approval that would authorize adding a Autism Spectrum Disorder (ASD) rider to existing active employee and retiree benefits. [.pdf of staff memo and resolution]

Adding the rider would cost the county an estimated $182,589 this year, according to staff – to be paid to Blue Cross Blue Shield of Michigan. To cover that cost, each county department will be charged on a per-employee basis. In addition, the county will pay for claims made by employees for this benefit, with the assumption that most if not all claims would be reimbursed by the state.

The board has been discussing this possibility for several months. At its Jan. 22, 2014 meeting, the board received a staff presentation about the possibility of offering such coverage. Colleen Allen, CEO of the Autism Alliance of Michigan, attended that meeting to answer questions and advocate for coverage. The board created a committee to explore the cost to the county for providing employee health insurance coverage for autism. Committee members were Felicia Brabec (D-District 4), Andy LaBarre (D-District 7) and Ronnie Peterson (D-District 6). The committee’s charge was to (1) investigate the cost and sustainability of coverage of autism spectrum disorders; and (2) recommend a policy providing and funding coverage if the state reimbursement fund is exhausted.

The federal Mental Health Parity & Addiction Equity Act of 2008 mandates that any group plan with 50 or more members – like Washtenaw County government – must offer both medical and mental health benefits. Under more recent federal health care reform, there’s been an expansion of benefits, and mental health benefits are considered a mandatory part of basic health care, starting this year. However, autism isn’t included as part of that mental health mandate.

On the state level, in October 2012 a state of Michigan mandate took effect stating that all fully insured plans must provide coverage for the diagnosis and treatment of autism spectrum disorders (ASD). The county is not a fully insured plan, however. Because the county is self-funded, it was exempt from this state mandate.

The costs of treatment are estimated to be about $60,000 a year to cover a child with autism. The state of Michigan has made coverage a priority, and has started setting aside funds to reimburse organizations that provide coverage. In fiscal year 2012-13, $15 million was made available, with an additional $11  million in fiscal 2013-14. Of that, only about $500,000 has been expended on reimbursements. The program is handled by the Michigan Dept. of Insurance and Financial Services.

The state program provides for reimbursement of up to $50,000 per year per child between the ages of 0 to 6, up to $40,000 per year from ages 7-12, and up to $30,000 per year for ages 13-18.

County staff have estimated that offering the coverage would result in up to a 5% increase in medical expenses, or up to $1 million annually. This year, medical expenses are budgeted at about $20 million. The county is expected to be fully reimbursed by the state of Michigan for the amounts that are allowed under the autism program.

The resolution given initial approval on March 19 included two resolved clauses:

NOW THEREFORE BE IT RESOLVED that the Washtenaw County Board of Commissioners authorizes the implementation of the Autism Spectrum Disorder (ADS) rider to existing active and retiree as soon as feasibly possible through Blue Cross/Blue Shield of Michigan, providing mental health and physical health parity.

BE IT FURTHER RESOLVED that Washtenaw County commits to a review of claims paid and/or reimbursed on an annual basis as our individual experience is not yet known. Such review would occur prior to the annual review process with Blue Cross/Blue Shield to determine if such benefit (rider) would be continued in the next year of benefits.

This brief was filed from the boardroom of the county administration building at 220 N. Main St. in Ann Arbor. A more detailed report will follow: [link]

Candidates for local Ann Arbor office have started filing petitions for the upcoming August primaries.

First to file the minimum 250 signatures (50 per ward) for a mayoral candidate was Stephen Kunselman. The Ward 3 city councilmember turned in his signatures on March 17, 2014 and by the following day, the city clerk’s staff had verified 286 of them, according to records from the clerk’s office.

First to file signatures for city council was Sumi Kailasapathy, the incumbent Ward 1 candidate. She turned in more than the required 100 signatures on March 19, 2014, but as of late afternoon that day the clerk’s staff had not completed the verification process. [Updated: On Friday, March 21 the clerk's office verified that 102 signatures had been verified for Kailasapathy.]

Both Kunselman and Kailasapathy are running in the Aug. 5, 2014 Democratic primary.

Other candidates for mayor who have taken out petitions but not yet filed are city councilmembers Sabra Briere, Sally Petersen and Christopher Taylor. Other city council candidates who have taken out petitions and intend to file include Kirk Westphal in Ward 2, Julie Grand and Bob Dascola in Ward 3, and Graydon Krapohl in Ward 4. None of those four currently serve on the council. Westphal would be competing for the council seat left open by Petersen’s mayoral candidacy. Grand and Dascola would be competing for the council seat left open by Taylor’s mayoral candidacy.

However, Dascola may not be able to run, because the city has determined that he does not meet one-year city charter eligibility requirements. Ann Arbor’s city charter requires one year of voter registration and residency in the ward that the city councilmember seeks to represent, before being elected to office.

Krapohl would be competing for the Ward 4 seat currently held by Margie Teall, who has announced she will not seek re-election.

Ward 5 incumbent Chuck Warpehoski took out petitions last year but has not yet filed them.

All candidates who have taken out petitions so far are Democrats. The deadline to file petitions to run for Ann Arbor mayor and city council in the Aug. 5 partisan primary is April 22.

The city of Ann Arbor has moved into federal court a lawsuit filed over its footing drain disconnection ordinance. The case was originally filed in the 22nd circuit court in Washtenaw County.

The ordinance that’s being challenged was enacted in 2001. It establishes a program under which property owners can be required to disconnect their footing drains from the city’s sanitary sewer system. Its intent is to diminish the risk of sanitary overflows into the Huron River and of sanitary sewage backups in homeowners’ basements.

The lawsuit claims the city’s FDD ordinance violates: (1) the Michigan state law setting forth the requirements for a government to take private property for public use; (2) the Michigan state constitutional prohibition against taking private property for public use without just compensation; (3) the corresponding U.S. constitutional prohibition against taking private property, which is a Fifth Amendment claim; and (4) the prohibition against violating the federally protected rights of others, which is a claim under 42 U.S.C. Section 1983.

In moving the case to the federal court’s Eastern District of Michigan, the city is exercising its right under 28 USC §1441, which states in part:

Except as otherwise expressly provided by Act of Congress, any civil action brought in a State court of which the district courts of the United States have original jurisdiction, may be removed by the defendant or the defendants, to the district court of the United States for the district and division embracing the place where such action is pending.

The procedure for removing a case to the federal district court requires that the defendant, the city of Ann Arbor, file with the district court within 30 days of being served the lawsuit and to include a “a short and plain statement of the grounds for removal, together with a copy of all process, pleadings, and orders served upon such defendant or defendants in such action.” Among the statements covering the city’s grounds for removing the case to federal court is the following:

Plaintiffs’ state law claims arise from the same common nucleus of operative facts and are so intertwined with and related to Plaintiffs’ federal claims that they form part of the same case or controversy as those federal claims, over which this Court has original jurisdiction.

The city filed with the federal court on March 17, 2014, which was 10 days after being served the lawsuit, on March 7. [.pdf of March 17, 2014 federal court filing]

The circuit court case had been assigned to judge Donald Shelton. The federal case is assigned to judge Avern Cohn.

 

One day after the Ann Arbor city council took action related to the city-owned Library Lane site, Ann Arbor planning commissioners weighed in with advice to the council about how to develop that South Fifth Avenue property. Planning commissioners passed a resolution on the item at their March 18, 2014 meeting.

On March 17, the council had passed a resolution directing the city administrator to hire a brokerage service to sell development rights to the Library Lane surface, where an underground parking structure is located. The council also engaged in a lengthy debate – two and a half hours of sometimes heated commentary – over a proposal reserving part of the surface for a publicly owned urban park. That resolution also passed, over dissent from mayor John Hieftje, Christopher Taylor (Ward 3) and Margie Teall (Ward 4).

The planning commission resolution gives advice to the council about how to handle the sale of development rights. [.pdf of Library Lane advice resolution, as amended during March 18 meeting] The two resolved clauses are:

Resolved, that the City Planning Commission recommends to City Council that if the development rights over the “Library Lot” underground parking structure are sold, an RFQ/RFP process be utilized that conditions the sale of the property in order to obtain a long-term, ongoing and growing economic benefit for the residents of the city;

Resolved, that the City Planning Commission recommends to City Council that if the development rights over the “Library Lot” underground parking structure are sold, an RFP contain all of the following conditions:

• A building that generates foot traffic, provides a human scale at the ground floor and creates visual appeal and contains active uses on all first floor street frontage and open space;
• A requirement for an entry plaza or open space appropriately scaled and located to be properly activated by adjacent building uses and to be maintained by the developer;
• A “mixed use” development with a density at around 700% FAR that takes advantage of the investment in footings and the mid-block location with active uses that have a high level of transparency fronting the plaza and at least 60% of Fifth Avenue and Library Lane frontages, while encouraging large floor plate office or lodging as a primary use, residential as a secondary use, and incorporating a cultural venue.
• A requirement for the entry plaza or open space to incorporate generous landscaping;
• A requirement that discourages surface parking, limits vehicular access for service areas to be located in alleys where available and prohibits service areas from being located on Fifth Avenue
• To seek a design for this site that is meant to be visible on all four sides and that creates an iconic addition to the skyline;
• A requirement for high quality construction; and
• A request for a third party environmental certification (e.g., LEED Gold or Platinum)

The resolution was brought forward by planning commissioners Diane Giannola and Bonnie Bona. It’s similar in intent to the recommendations that the commission gave to council regarding the use of the former Y lot, at the commission’s Aug. 20, 2013 meeting.

In introducing the resolution on March 18, Bona noted that it’s similar to the resolution regarding the former Y lot. One major difference is the recommendation to seek an “iconic design” for the Library Lane site, because it is more centrally located.

Wendy Woods wondered about the recommendation to use an RFP/RFQ process, pointing out that the council has already given direction to use a brokerage service – as the city did with the former Y lot. Commissioners thought that their efforts to influence the outcome of land use would be similar in either instance – the RFP/RFQ process or seeking proposals via a broker.

No one spoke during a public hearing on this item.

In separate action on March 18, commissioners also passed a resolution with recommendations on uses for the Edwards Brothers site on South State Street, which the University of Michigan is acquiring. [.pdf of Edwards Brothers resolution]

This brief was filed from the second-floor council chambers at city hall, 301 E. Huron. A more detailed report will follow: [link]

Ann Arbor planning commissioners have passed a resolution recommending that the University of Michigan collaborate with the city of Ann Arbor regarding the future development of the former Edwards Brothers property at 2500-2550 South State Street, immediately adjacent to existing UM athletic facilities. The university is purchasing the 16.7-acre property, following the Ann Arbor city council’s decision on Feb. 24, 2014 not to exercise its right of first refusal to buy the site.

In introducing the resolution, planning manager Wendy Rampson said she drafted the resolution based on previous discussions at planning commission and city council. The intent is for this resolution to be jointly passed by both entities. [.pdf of resolution as amended at March 18 planning commission meeting]

The one resolved clause states:

RESOLVED, That the Ann Arbor City Council and Ann Arbor City Planning Commission request that The Regents of The University of Michigan and President authorize University staff to meet with City representatives to collaborate on issues related to future development of the South Athletic Campus area, including, but not limited to:

• Exploring the creation of one or more parcels fronting South State Street to be developed, preferably privately, for complementary uses adjacent to the South Athletic Campus that also follow the South State Street plan recommendations;
• Discussing options for the relocation of park-and-ride facilities as the South Athletic Campus develops; and
• Discussing the opportunities for a future pedestrian and vehicular connection between South Main Street and South State Street via the planned Oakbrook Drive extension through the South Athletic Campus site.

Rampson said she’s already shared a draft of resolution with UM planner Sue Gott and Jim Kosteva, the university’s director of community relations. The resolution will be forwarded to the city council, with the understanding that changes made to the resolution by the council will be supported by the planning commission without further review.

This brief was filed from the second-floor council chambers at city hall, 301 E. Huron. A more detailed report will follow: [link]

An overhaul of a Shell station and a new drive-thru restaurant at 2991 S. State will be moving head, following action at the March 18, 2014 meeting of the Ann Arbor planning commission. The site is located at the northeast corner of the East Eisenhower Parkway and South State Street.

Commissioners recommended approval of a site plan and modifications to the city’s landscaping requirements. The plan calls for demolishing the current one-story convenience store and car wash on this site, which total 2,435 square feet. In its place, the owner – Joseph Kafi of JAK Cubed LLC – would put up a single building with a 1,250-square-foot drive-thru restaurant and 3,000-square-foot convenience store. The existing gas pump island canopy will remain in place, and two pumps will be relocated to spots under the canopy.

According to a staff memo, a single lane drive-thru would be primarily accessed from the existing East Eisenhower Parkway curb cut. Vehicles would move in an east-to-north direction before exiting onto either South State or East Eisenhower. The drive-thru lane provides stacking for up to nine vehicles and would be screened to the west by the proposed new building. A total of 22 parking spaces are proposed for the site, including eight that are located at the four gas pump islands.

Approval is needed to modify landscaping requirements in Chapter 62 of the city code – the landscape and screening ordinance. A minimum 10-foot right-of-way buffer is required. The owner is asking that the width of the buffer be reduced to the existing 4-foot wide right-of-way landscape buffer fronting South State Street, which contains a 30-inch-high screening wall and landscaping. That would allow for continued use of the two gas pump islands on the western portion of this site. Other landscaping would be added along South State Street and East Eisenhower Parkway to screen the vehicular use area.

The project, located in Ward 4, is estimated to cost $800,000. The business is expected to remain open during construction. The existing convenience store will then be demolished after the new building is finished. The specific restaurant to be located there is still being negotiated.

Planning staff recommended approval of the plan. [.pdf of staff report]

This brief was filed from the second-floor council chambers at city hall, 301 E. Huron. A more detailed report will follow: [link]

A proposal to expand an office building at 278-280 Collingwood received a recommendation of approval from the Ann Arbor planning commission at its March 18, 2014 meeting.

The site plan calls for removing the existing second floor on the east side of the office building and constructing a 2,451-square-foot second floor over the entire building for office use. A new staircase will be added at the southwest corner of the building. The second floor will overhang the first floor along the front of the building and along part of the north side. An existing curbcut on the north side of the property will be removed. The current 22 parking spaces on the site will be reduced to 17.

Planning commissioners approved modifications to the city’s landscaping requirements for this site.

Total construction cost for this project is estimated at $300,000. The office building is located in Ward 4. Collingwood Drive is a street off of West Stadium Boulevard, just south of West Stadium’s convergence with South Maple Road. [.pdf of staff memo]

Planning staff had recommended approval of the site plan. It will be forwarded to the city council for consideration.

This brief was filed from the second-floor council chambers at city hall, 301 E. Huron. A more detailed report will follow: [link]

An easement related to a new Belle Tire at 590 W. Ellsworth received a recommendation for approval at the Ann Arbor planning commission’s March 18, 2014 meeting.

The commission had recommended site plan approval at its Aug. 20, 2013 meeting, and the project subsequently received city council approval on Oct. 7, 2013. The site is located in Ward 4.

A 50-foot-wide right-of-way easement on the front this site was recorded by the city as part of a previously approved land division for this parcel. That easement reduced the front setback of the Belle Tire building from 10 feet to roughly 3 feet. The minimum front setback for this site is 10 feet.

So the property owner, who also owns the adjacent site at 3975 S. State, has proposed that the city vacate the northern 7 feet of its right-of-way easement. In exchange, the property owner has offered to convey a non-motorized use easement over the same 7 feet. Such an easement would allow for this strip to be used by the public for future non-motorized transportation facilities, according to a staff memo. And as a non-motorized use easement, the 7-foot strip would be considered part of the required 10-foot front building setback.

The planning staff recommended approval of this proposal. It will be forwarded to the city council for consideration.

This brief was filed from the second-floor council chambers at city hall, 301 E. Huron. A more detailed report will follow: [link]

The Ann Arbor park advisory commission has recommended that the city apply for a grant to help renovate the Gallup Park pathway, which is part of the countywide Border-to-Border trail. The grant application is to the federal transportation alternatives program (TAP), which is administered in this region by the Southeast Michigan Council of Governments (SEMCOG) and statewide by the Michigan Dept. of Transportation (MDOT).

Funds would be used to renovate the path from the Geddes Dam at the east end of the Gallup Park pathway, to the parking lot east of Huron Parkway. The project also entails renovations to the large loop that encircles that portion of the park, totaling about 2 miles of trail. The application amount hasn’t yet been determined, but will likely be for $400,000 to $500,000. The entire project budget is in the $600,000 range, with likely about $200,000 in matching funds to come from the city’s parks and recreation maintenance and capital improvements millage.

In describing the project, park planner Amy Kuras told commissioners that it’s being undertaken in conjunction with a major “universal access” playground that’s being developed at Gallup, using a $250,000 contribution from the Rotary Club of Ann Arbor. For background on that effort, see Chronicle coverage: “Rotary to Fund Universal Access Playground.”

PAC voted to recommend applying for the TAP grant at its March 18, 2014 meeting. The application will next be considered by the city council. The deadline to apply for the current round of funding is April 21.

This brief was filed from the second-floor council chambers at city hall, 301 E. Huron. A more detailed report will follow.

The question of how the top of the Library Lane underground parking structure in downtown Ann Arbor will eventually be used has taken some steps toward getting answered. The city council acted on two key related resolutions at its March 17, 2014 meeting.

The council’s meeting actually featured three items related to the future of the Library Lane deck surface: (1) a resolution reserving part of the surface for a publicly owned urban park; (2) a resolution that moved toward hiring a brokerage service for selling development rights to the surface; and (3) a resolution that waived attorney-client privilege on a memo from the city’s outside bond counsel.

On the third item, the council voted to approve the waiver of an attorney-client privileged memo on the use of Build America Bonds that financed the parking deck.

The council vote on the urban park resolution was ultimately 7-3 with mayor John Hieftje, Christopher Taylor (Ward 3) and Margie Teall (Ward 4) dissenting. Sally Petersen (Ward 2) was absent. That came after a significant amendment to the resolution that gave flexibility to the square footage to be reserved instead of fixing it at 12,000 square feet. The key resolved clause, as adopted by the council, read:

Resolved, That City Council approve the reservation of the site for an urban public park of between approximately 6,500 and 12,000 square feet on the surface of the Library Lane Structure bounded by the Fifth Avenue sidewalk on the west, the Library Lane Street curb to the south, the western entry to the central elevator to the east, with the northern boundary to be determined at a future date;

The council’s vote came after public commentary from several speakers in support of the resolution. In addition, Ann Arbor District Library director Josie Parker was asked to the podium to comment and she read aloud a resolution that the library board had passed earlier that evening, opposing the council’s resolution.

A report on council deliberations, which lasted over 2.5 hours, is included in The Chronicle’s live updates from city hall during the March 17 meeting.

The resolution on reserving a portion of the surface of the Library Lane parking structure for a publicly-owned urban park had been postponed from the council’s March 3, 2014 meeting.

The proposal had been presented to the city’s park advisory commission, the week before the March 3 council meeting. For a detailed report of the PAC meeting of Feb. 25, 2014, see Chronicle coverage: “Concerns Voiced over Urban Park Proposal.”

One of the central points of friction over how to proceed is the question of who will own the area on which the publicly accessible space – a park or plaza – is placed.

The original resolution contemplated a publicly-owned facility that is designated as a park in the city’s park planning documents. That would have made it subject to a charter requirement on its sale – which would require a public referendum. The resolution as amended did not include that stipulation in its “resolved” clauses.

Councilmembers who are open to the possibility that the publicly accessible facility could be privately owned are concerned about the cost of maintenance of a publicly-owned facility. The city’s costs for maintaining Liberty Plaza – an urban park located northeast of the proposed Library Lane public park – are about $13,000 a year. That doesn’t include the amount that First Martin Corp. expends for trash removal and other upkeep of Liberty Plaza. [urban park cost estimates]

Revisions to the resolution were undertaken between the council’s March 3 and March 17 meetings. The version considered on March 17 indicated that the area designated as a park would be 12,000 square feet, compared to 10,000 square feet in the original resolution. That square footage reflects the actual dimensions of the proposed boundaries, according to a staff memo. That square footage was then revised at the meeting to “between approximately 6,500 and 12,000 square feet.” The revised resolution also eliminated an October 2014 deadline for making design recommendations to the council, and deleted any reference to PAC. [.pdf of revised resolution considered March 17 council meeting]

An additional point of friction involves how much of the site would be left for development if the northwest corner of the site were devoted to a public plaza/park. Related to that issue is whether the existing northern border of the site – which currently features the sides and backs of buildings – can adequately support a public plaza/park. The fact that the site does not currently enjoy other surrounding buildings that turn toward it is part of the reason advocates for a park are now asking that the Ann Arbor District Library, located to the south of the site, relocate its entrance from Fifth Avenue to the north side of its building. However, at the library board’s March 17 meeting, trustees on the board’s facilities committee reiterated reasons why they were not recommending to relocate the entrance.

In terms of the color-shaded map produced by city staff, the focus of controversy is the light orange area, which was designed to support “medium density building.” Based on staff responses to councilmember questions, the density imagined for that orange rectangle could be transferred to the planned high-density (red) portion of the site. The maximum height in the D1 zoning area is 180 feet, and the parking structure was designed to accommodate the structural load of an 18-story building.

Related to the urban park item was a  resolution also approved at the March 17 meeting – to obtain brokerage services and to list the surface of the Library Lane deck for sale. It was brought forward by Stephen Kunselman (Ward 3).

The approach being taken would be similar to the path that the city council took to sell the former Y lot. For that parcel, the council directed the city administrator to move toward hiring a real estate broker to test the market for development rights. The council took the initial step with that property, located on William between Fourth and Fifth avenues in downtown Ann Arbor, close to a year ago at its March 4, 2013 meeting.

A rider agreement – to ensure against non-development and to sketch out the amount of open space and density – was part of the approach the city took to the former Y lot deal with hotelier Dennis Dahlmann.

The issue of open space figures prominently in Kunselman’s resolution. At the March 17 meeting, the council amended out the phrase “highest and best use” from the resolution. A key “whereas” clause and two of the “resolved” clauses read as follows:

Whereas, Developing the public space at the same time the site is developed will provide for increased activity, safety, and security; limit nuisance behavior at this public space; provide potential funding for public space features and programming; and have a responsible private entity for ongoing maintenance and
…
Resolved, That the City will seek, as conditions for development rights at a minimum, public open space, private maintenance of the public space, and pedestrian access to the public space as features of any private development;

Resolved, That implementation of the conditions for development rights will be determined by City Council through selection of the purchase offer that best responds to mixed-use, density, integration with surrounding uses, and public space and through the City’s established site plan procedures and policies;

The phrase “public space” sometimes is meant to include publicly-accessible, but privately-owned space. Kunselman responded to an emailed query about his intended interpretation of “public space” by writing: “It’s meant to give the broadest interpretation so as to solicit the widest range of interest by prospective purchasers.”

Also related to the council’s brokerage service resolution, the Ann Arbor planning commission agenda for March 18, 2014 includes a resolution giving advice to the council about how to handle the sale the parking deck surface. The two resolved clauses are:

Resolved, that the City Planning Commission recommends to City Council that if the development rights over the “Library Lot” underground parking structure are sold, an RFQ/RFP process be utilized that conditions the sale of the property in order to obtain a long-term, ongoing and growing economic benefit for the residents of the city;

Resolved, that the City Planning Commission recommends to City Council that if the development rights over the “Library Lot” underground parking structure are sold, an RFP contain some or all of the following conditions:

• A building that generates foot traffic, provides a human scale at the ground floor and creates visual appeal and contains active uses on all first floor street frontage and open space;
• A requirement for an entry plaza or open space appropriately scaled and located to be properly activated by adjacent building uses and to be maintained by the developer;
• A “mixed use” development with a density at around 700% FAR that takes advantage of the investment in footings and the mid-block location with active uses that have a high level of transparency fronting the plaza and at least 60% of Fifth Avenue and Library Lane frontages, while encouraging large floor plate office or lodging as a primary use, residential as a secondary use, and incorporating a cultural venue.
• A requirement for the entry plaza or open space to incorporate generous landscaping;
• A requirement that discourages surface parking, limits vehicular access for service areas to be located in alleys where available and prohibits service areas from being located on Fifth Avenue
• To seek an iconic design for this site that is visible on all four sides and that creates an iconic addition to the skyline;
• A requirement for high quality construction; and
• A request for a third party environmental certification (e.g., LEED Gold or Platinum)

The planning commission resolution is being brought forward by commissioners Diane Giannola and Bonnie Bona. It’s similar in intent to the recommendation that the commission gave to council regarding the sale of the former Y lot.

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

About three hours before the Ann Arbor city council took action on the issue of a park at the Library Lane site, the Ann Arbor District Library board passed a resolution on that topic. The board asked the council to reject designating a portion of that city-owned site – which is adjacent to the downtown library – as a public park or plaza at this time. The vote taken at the AADL board’s March 17, 2014 meeting was 6-1, with dissent from Nancy Kaplan.

The resolved clause states:

That the AADL Board asks the Council to reject the Resolution until the entire site at 319 South Fifth Avenue receives a complete review by experts in zoning, land use, economic development, and others who can determine the highest and best use of the property; ensure the safety and security of AADL patrons; and consult with the owners and occupants of surrounding properties, downtown business owners, and other stakeholders Council may identify.

In introducing the resolution, Rebecca Head – who chairs the board’s communications committee – reported that the committee had met with some city councilmembers and the mayor to discuss this issue. The committee, which includes Margaret Leary and Prue Rosenthal, then drafted a resolution about the Library Lane site that she was bringing forward.

Head noted that the library hasn’t objected to the concept of open space at the Library Lane site, as part of overall development of that city-owned property. But the AADL board resolution states that the council resolution “does not allocate the City resources needed to create a successful park, such as physical maintenance, programming, and monitoring unsafe behavior; and…the City has not been able to allocate resources for those purposes to the nearby Liberty Plaza park, Wheeler park, Sculpture plaza on North 4th Ave., or the Kerrytown plaza….”

Several trustees weighed in to support the AADL board resolution. Barbara Murphy said she was conflicted, because she supports having a park or plaza on the Library Lane site at some point. But the council resolution seemed to be putting the cart before the horse, she said. She pointed out that the AADL board resolution is not advocating for tall buildings.

In dissenting, Kaplan described the long history of efforts to put some kind of a public park or plaza on the Library Lane site. She didn’t want to cut off that process. Kaplan also raised the point that the library board would be asking the council to reject a resolution without knowing the exact content of the resolution – because the council could amend the resolution during its deliberations.

In fact, the council did amend its resolution during a lengthy and sometimes heated debate. [.pdf of resolution at the start of the March 17 council meeting] Sabra Briere (Ward 1) brought forward an amendment to the first resolved clause, describing the site as a public space, publicly owned, of at least 6,500 square feet, with the northern boundary to be determined at a future time. The original resolution, developed by Jack Eaton (Ward 4) had designated 12,000 square feet as the size, running across the entire western edge of the Library Lane site, along South Fifth Avenue.

The council’s discussion included remarks by AADL director Josie Parker, who attended the council meeting and was called upon by mayor and other councilmembers to comment. She cited security concerns, and pointed out that the police are already called to the downtown library every three days or so. “We manage it, and you don’t know about it, and that makes it successful,” Parker told the council. Stephen Kunselman (Ward 3) characterized the AADL board’s position as “fear mongering.”

After about 2.5 hours of discussion, the council voted 7-3 to pass the resolution as amended. Dissenting were mayor John Hieftje, Christopher Taylor (Ward 3) and Margie Teall (Ward 4). Sally Petersen (Ward 2) was absent.

A report on deliberations at the council meeting is included in The Chronicle’s live updates from city hall during the March 17 meeting.

This brief was filed from the fourth-floor boardroom of the downtown library at 343 S. Fifth. A more detailed report will follow: [link]

Two energy policy items on the Ann Arbor city council’s March 17, 2014 agenda received action at the council’s meeting.

First, the council directed the city’s energy office to draft a commercial building energy benchmarking and disclosure ordinance. It’s an effort to help achieve goals in the city’s climate action plan. That succeeded on a 7-3 vote. Dissenting were Jane Lumm (Ward 2), Jack Eaton (Ward 4) and Mike Anglin (Ward 5). Sally Petersen (Ward 2) was absent.

Second, the council directed the city administrator to “report back to council by May 5, 2014 with a plan to make significant progress on creating and implementing additional community energy efficiency, conservation, and renewable energy programs that further the Climate Action Plan’s adopted targets, reduce our community GHG emissions, provide economic benefit to our community and help to preserve our quality of life.”

The original resolution would have given explicit direction to hire an additional staff member for the city’s energy office, bringing the total back to two people, according to the resolution. The energy office staffer would “create and implement additional community energy efficiency, conservation, and renewable energy programs that further the Climate Action Plan’s adopted targets.” Among the specific efforts cited in the resolution are the city’s property assessed clean energy (PACE) program.

However, the resolution was amended at the meeting so that the city administrator would only be directed to provide a report back to the council on how the goals of the city’s sustainability framework could be realized. The resolution succeeded on a 6-4 vote. Dissenting were Sumi Kailasapathy (Ward 1), Jane Lumm (Ward 2), Jack Eaton (Ward 4) and Mike Anglin (Ward 5).

At its March 4, 2014 meeting, the city’s planning commission passed a resolution in support of the hiring. Planning commissioners were briefed on the issue by Wayne Appleyard, chair of the energy commission. Appleyard attended the March 17 council meeting, but was not asked to address the council. Resolutions of support were also passed by the city’s energy and environmental commissions.

The resolution on the energy disclosure ordinance directs the city’s energy commission and staff to convene a stakeholder work group, with the support of the city attorney’s office, to draft a commercial building energy benchmarking and disclosure ordinance. Such an ordinance would require owners of commercial buildings to disclose data on energy consumption by their buildings. It’s an effort to help achieve goals in the city’s climate action plan, which was approved by the city council at its Dec. 17, 2012 meeting. Ann Arbor’s climate action plan calls for a reduction in greenhouse gas emissions of 8% by 2015, 25% by 2025, and 90% by 2050. Baseline for the reductions are 2000 levels.

The energy disclosure resolution on the council’s March 17 agenda originated with the city’s energy commission. The staff memo compares the idea of a disclosure requirement for energy usage by commercial buildings to a miles-per-gallon rating for vehicles or nutritional facts labeling for food products. According to the memo, awareness of energy consumption has been shown to encourage building owners to have energy audits done on their buildings. Those audits can then lead to energy efficiency upgrades that result in cost savings to the building owners and reduced emissions.

An estimate for the potential energy cost savings that would result from an energy benchmarking ordinance in Ann Arbor – prepared by the Institute for Market Transformation (IMT) – is between $2 million and $2.5 million, annually. According to the staff memo, similar ordinances in place in other cities typically employed a phased approach, often with municipal buildings as well as the largest private buildings (by square footage) complying in the initial year(s), and medium-sized and/or smaller buildings participating in later years.

The energy commission is recommending that an ordinance be developed with a phased approach, with the phases based on building categories and sizes. One possibility is to start with all qualifying municipal buildings in the first six months, commercial buildings over 100,000 square feet in 12 to 18 months, multifamily and commercial buildings over 50,000 square feet in 24 to 36 months, and all commercial buildings over 10,000 square feet in 36 to 48 months. The goal would be to have reported energy consumption information for 80% of the commercial square feet in the city within five years of adoption.

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

A memo prepared by Dykema Gossett, the city of Ann Arbor’s outside bond counsel, will now be made public as a result of city council action taken on March 17, 2014.

The council voted over dissent from Christopher Taylor (Ward 3) – who is himself an attorney – to waive attorney-client privilege on the document, dated August 9, 2012. The memo apparently provides an analysis of the implications for use of the Library Lane parking structure, based on the Build America Bonds used to finance its construction. Facilities financed by such bonds carry with them private-use limitations.

The Chronicle has not yet been provided with a copy of the memo.

Taylor made a bid to amend the resolution so that it directed the city attorney to write a memo that included the information in the bond counsel’s memo. That was subsequently modified to direct the bond counsel to rewrite the memo for public consumption. But the amendment failed. It got support only from Taylor, mayor John Hieftje, Sabra Briere (Ward 1) and Margie Teall (Ward 4).

The idea of giving direction to rewrite an existing memo had proven to be a successful strategy on a resolution passed earlier in the March 17 meeting. That original resolution would have waived privilege on a Feb. 25, 2014 city attorney memo that described how property assessment appeals work. Instead, the council amended that resolution to direct the city attorney to prepare a new memo for public consumption.

In broad strokes, the American Recovery and Reinvestment Act (ARRA) of 2009 – also known as the stimulus act – created the Build America Bonds program. BAB authorized state and local governments to issue taxable bonds to finance any capital expenditures for which they otherwise could issue tax-exempt governmental bonds. The bonds have a limitation related to how the facilities financed through such bonds can be used. Glossing over details, only up to 10% of a facility financed through BAB can be dedicated to private use.

Related to the private use question are monthly parking permits. All other things being equal, the Ann Arbor Downtown Development Authority – which manages Ann Arbor’s public parking system under an arrangement with the city – does not contract with businesses for monthly parking permits in public parking structures. Instead, the DDA contracts with individuals on a first-come-first-serve basis.

For the Library Lane structure, the DDA offered introductory pricing of its monthly permits to encourage the structure’s initial use. Construction was completed in the summer of 2012.

The nature of that introductory pricing scheme could prompt questions about whether some of those permits might properly count as “private use” of the structure. A $95 introductory rate (which reflects a $50 savings over most other structures) was offered to employees of “new to downtown businesses” and to permit holders in the Maynard or Liberty Square parking structures who were willing to transfer their permit to Library Lane. The pricing is good through August 2014.

Two years ago, Barracuda Networks was moving to downtown Ann Arbor, and therefore qualified as a “new to downtown” business. So its employees thus qualified for the discounted monthly parking permits.

In a July 13, 2012 email to Ward 2 councilmember Jane Lumm, DDA executive director Susan Pollay wrote in part:

I met with the two key individuals directing the Ann Arbor Barracuda office and told them point blank, that that there will be parking for Barracuda employees now when they move to downtown, and as they grow their employee ranks over the next few years.

To the extent that Barracuda employees (or employees of other downtown businesses) have privileged access or enjoy an economic advantage (like reduced rates), then it’s possible the private use test could be met for those spaces.

Four years ago, Wayne State University professor of law Noah Hall, writing on behalf of the Great Lakes Environmental Law Center (GLELC), sent the city of Ann Arbor a letter on the BAB private-use issue. [For more detail, see his letter: April 14, 2010 letter from Noah Hall] GLELC was a party to a lawsuit filed over the Library Lane parking structure, which eventually was settled.

The document for which the council voted to waive attorney-client privilege on March 17 appears to be one of the items denied in a response to a request made by The Chronicle under Michigan’s Freedom of Information Act. The item not provided to The Chronicle was a file attached to an email sent by CFO Tom Crawford on August 13, 2012 to councilmembers – named “BHO 1-# 1607254-v8-Ann_Arbor _ -_Memo_re_Permitted_Parking_Arrangements.docx” The request for that document was denied based on the statutory exemption allowed for items protected under attorney-client privilege.

The resolution waiving attorney-client privilege on the Dykema memo was put forward by the city council’s audit committee. Members of that committee are Sumi Kailasapathy (Ward 1), Jane Lumm (Ward 2), Sally Petersen (Ward 2), Stephen Kunselman (Ward 3), and Jack Eaton (Ward 4). [For additional background, see: "Column: Rocking Back on the Library Lot."]

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

A $160,000 weapons screening contract with the Washtenaw County sheriff’s office has been approved for the 15th District Court in Ann Arbor. City council approval came at its March 17, 2014 meeting.

At the same meeting, the council was introduced to the new 15th District Court administrator, Shryl Samborn.

The 15th District Court is housed at Ann Arbor’s Justice Center – the police/courts facility immediately adjoining the Larcom city hall building at the northeast corner of Huron and Fifth. Aside from salaries for judges, which are reimbursed by the state of Michigan, funding for the court is the responsibility of the city of Ann Arbor.

The total amount of the weapons screening contract reflects an amount of $26.24 per hour per court security officer. According to the staff memo accompanying the resolution, it’s estimated that three officers would be assigned on a given day with hours staggered to match the ebb and flow of court business through a typical day.

Samborn was introduced as the new court administrator, who’ll start work in that position in a couple of weeks. She is currently deputy administrator. Current administrator Keith Zeisloft is retiring. His last day of work for the court is March 28.

Samborn has worked in public service since 1998, starting with the Washtenaw County Clerk/Register of Deeds, then moving to the 15th District Court in 2002. She began her work in the 15th District Court as secretary to judge Julie Creal, and becoming secretary for court administrator Keith Zeisloft in 2004. She became deputy court administrator in 2007. Her undergraduate degree is from Eastern Michigan University. She’ll be enrolling in the fall of 2014 as a graduate student in Michigan State University’s school of criminal justice judicial administration masters program.

In the state of Michigan, district courts handle all civil claims up to $25,000, including small claims, landlord-tenant disputes, land contract disputes, and civil infractions. Washtenaw County has three district courts – 15th District Court for the city of Ann Arbor, 14B District Court for Ypsilanti Township, and the 14A District Court (with four physical venues) for the rest of Washtenaw County. Ann Arbor’s 15th District Court also handles preliminary exams for felony cases.

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

In three separate resolutions, the purchase of two forklifts, a Chevrolet Impala for use by police detectives, and a lease for golf carts have been approved by the Ann Arbor city council.

The council’s action, on March 17, 2014 came after approving 18 replacement vehicles on March 3 and several pieces of basic equipment on Feb. 18.

The two Clark C30 forklifts will be used at the city’s materials recovery facility (MRF) and cost a total of $55,268. The forklifts will replace two that are currently being rented at a cost of $12,000 a year. The city is calculating that the purchase cost will be covered by savings in rental costs in 2.3 years.

The police detective vehicle – a Chevrolet Impala – will be purchased from Berger Chevrolet in Oakland County for $26,750. The car will replace a vehicle that in the next year will have reached an 80,000-mile limit specified in the city’s labor contract.

The resolution approving a two-year golf cart lease with Pifer Inc. had been recommended by the city’s park advisory commission recommended the action on golf carts at its Feb. 25, 2014 meeting. The agreement increases the original number of 65 leased carts by 34 carts, for a total of 99 carts. The city leases golf carts from Pifer for the Huron Hills and Leslie Park golf courses.

The lease amendment is two years, for an amount not to exceed $50,340 over the length of the lease amendment term. Funding for FY 2014 will come from the parks and recreation services general fund and will be in the proposed budget for FY 2015, according to a staff memo. In FY 2013, the city generated about $225,000 in revenue from golf cart rentals.

The council’s resolution on golf carts also approved the sale of 32 city-owned golf carts to Pifer for $50,340.

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