Govt. Section

Ann Arbor public art commission meeting (March 27, 2013): Public art commissioners hope to involve more students in their work – but no formal mechanism is yet in place to make that happen.

At AAPAC’s most recent meeting, John Kotarski proposed adding three students to the nine-member commission as voting members. He suggested that the student commissioners be selected by: (1) the Ann Arbor Public Schools board of education; (2) the dean of the University of Michigan School of Art & Design; and (3) the Arts at Michigan program. Deb Mexicotte, president of the AAPS board, is also program coordinator for Arts at Michigan.

Ultimately, commissioners passed a resolution on a 5-1 vote asking that the city council consider adding students to the commission. Marsha Chamberlin dissented, saying she supported the concept of student involvement but didn’t like this approach. She’d rather handle it informally, perhaps by including students in the task forces that are set up for each project.

Chamberlin also noted that any change in AAPAC’s composition would require a revision to the city’s public art ordinance.

The city council committee that’s currently undertaking dramatic revisions to the public art ordinance has nearly completed its work, with plans to present recommendations to the full council on May 6. The recommendations include eliminating the Percent for Art funding mechanism and the concept of “pooled” funds from capital projects. Instead, the city council will designate specific capital projects to be “enhanced” with extra funding allocated for public art or architectural features, based on recommendations by AAPAC. [.pdf of draft ordinance revisions] [.pdf of most recent memo to city council regarding draft recommendations]

This Chronicle report includes a summary of the council committee’s April 18 meeting, which is probably the last one prior to presenting the recommendations – likely on May 6. The committee is suggesting that the council take a final vote on June 3, after soliciting public input through A2 Open City Hall.

In other action during the March 27 meeting, AAPAC approved its annual art plan. This year, because of uncertainty regarding the program’s future and a current moratorium on spending, the plan sets general goals rather than proposing new projects. Those goals are: (1) the creation of public art in more areas of the city and a commitment to balance the number of artworks throughout the city and its neighborhoods; (2) a focus on high use and visibility as locations for public art; and (3) an emphasis on putting public art in underserved neighborhoods.

AAPAC also selected Josh Wiener, an artist from Denver, to work with landscapers and incorporate public art into a new rain garden at the corner of Kingsley and First. The $27,000 project was one of several for which funding had already been approved, prior to the council’s decision to temporarily halt spending on public art.

Commissioners discussed a range of other ongoing projects, including public art at the East Stadium bridge, Argo Cascades and the Justice Center lobby. A project that doesn’t include city funding is the Detroit Institute of Arts’ Inside|Out program. Installation of that artwork in Ann Arbor took place two days after AAPAC’s March 27 meeting. Framed replicas of paintings from the DIA collection were mounted at several locations in the downtown area, and free docent walking tours will be offered on Saturdays and Sundays, starting on April 27. The tours will leave from the Ann Arbor Hands-On Museum every half-hour between noon and 3 p.m.

Looking ahead, Chamberlin reminded commissioners that it’s time to solicit nominations for the annual Golden Paintbrush awards, which recognize local contributions to public art. The award winners are selected by AAPAC, with a presentation at an Ann Arbor city council meeting in June.

March 27 was the first meeting for AAPAC’s two new commissioners, Ashlee Arder and Nick Zagar. Arder, who works for ArtServe Michigan, took action during the meeting to set up a Twitter account for the commission: @AAPublicArt. [Full Story]

Ann Arbor Transportation Authority board meeting (April 18, 2013): Board member David Nacht’s final regular meeting after 10 years of service included action on a significant project he’d worked on during that time: bus service between downtown Ann Arbor and Detroit Metropolitan Airport.

To provide the AirRide service, which was launched a year ago, the AATA is currently in negotiations with Michigan Flyer to revise terms of the second year of the contract. While the first year called for the AATA to pay Michigan Flyer an amount not to exceed $700,000 for the hourly service, the ridership – given the structure of the revenue-sharing deal – has resulted in a far lower cost.

So the board passed a resolution at its April 18 meeting reflecting the current status of negotiations, which are pointing toward a not-to-exceed amount of $300,000 for the contract’s second year. The board’s action rescinded a resolution it had passed at the previous month’s meeting, in favor of one that reflected the current status of negotiations between AATA and Michigan Flyer.

Besides the resolution on AirRide, the only other item requiring a vote was one honoring David Nacht’s decade of service on the board – which covered two full five-year terms. During his brief remarks, Nacht thanked the riders of the AATA’s service, the bus drivers and the mechanics. He also thanked his family – his two sons attended the meeting. In addition, Nacht thanked the Ann Arbor mayor and city council, which make the appointments to the AATA board. At the council’s April 15 meeting, mayor John Hieftje had announced the nomination of Eric Mahler, currently a city planning commissioner, to replace Nacht.

Discussion on non-voting items included the future of public transportation in the broader region – in two significant ways.

First, board members lamented the fact that no U.S. company, and more specifically no Michigan company, had bid on the AATA’s request for proposals to replace battery kits for its hybrid electric buses. But board sentiment was that a larger purchasing consortium for such kits might eventually be achieved through the newly-created southeast Michigan regional transit authority (RTA) – which includes the transit agencies in Washtenaw, Wayne, Macomb and Oakland Counties. And that larger consortium might make it worth the while of a Michigan company that’s a part of the state’s nascent battery industry to invest in the capability to produce bus battery kits.

Second, the board was paid a visit by Ypsilanti city councilmember Pete Murdock, who alerted the board to the likelihood that the city of Ypsilanti would make a formal request to join the AATA. The request would need approval from the AATA board and almost certainly the Ann Arbor city council, and could have implications for board membership. The goal of such a move would be to provide a more stable financial foundation for Ypsilanti bus service.

The city of Ypsilanti itself already levies its constitutional cap of 20 mills of property tax. If the AATA were to ask voters of member jurisdictions to approve a millage – an authority the AATA does not currently exercise – that additional amount would not count against Ypsilanti’s constitutional cap. [Full Story]

Ann Arbor District Library board meeting (April 15, 2013): Two main topics were discussed at the April AADL board meeting: The draft budget for fiscal 2013-14, and a proposal for an ice-skating rink on the city-owned Library Lane parking lot, adjacent to the downtown library on South Fifth Avenue.

The $12.475 million proposed budget calls for levying the AADL’s tax at a rate of 1.575-mill – a small increase from the current 1.55-mill rate, but still below the amount that AADL is authorized to levy. [.pdf of draft 2013-14 budget]

Ken Nieman – AADL’s associate director of finance, HR and operations – told the board that the budget includes a 3% increase in the merit raise pool for full-time employees and an increase in hourly base rates for part-time workers. The administration wanted to make sure that the library’s lower-paying jobs start at more than $9 per hour. “It will help us attract people and hopefully also keep people as we compete against other businesses out there,” he said.

The board is expected to vote on the budget and set the millage rate on May 6, but several trustees made comments about the draft budget during the April 15 meeting. Ed Surovell argued strongly against even a small tax increase, and said he wouldn’t be voting for a budget that includes any increase to the millage. It’s estimated that the additional 0.025 mills would increase the amount of the library tax for homeowners by $2.50 per year, for a home that has a taxable value of $100,000. The increase is estimated to result in an additional $185,000 in tax revenues, compared to a 1.55-mill rate.

The April 15 meeting also included a presentation by Stewart Gordon and Alan Haber, who are advocating to put a temporary, artificial ice-skating rink at the northwest corner of the Library Lane parking lot. They asked the board to designate a liaison from the library, to facilitate communications as the project unfolds – they hope to construct and open it by Oct. 15. Several commissioners board members expressed skepticism about the proposal, stressing concerns over financing and security issues.

The board also heard from five people during public commentary. Topics included concerns over the hiring of Allerton-Hill Consulting, and thanks for support the library’s support of the ArborWiki and Old News projects. [Full Story]

Washtenaw County parks and recreation commission meeting (April 9, 2013): The April meeting, which director Bob Tetens forecast would be “the long-promised very short meeting between our busy seasons,” saw WCPARC take the first step to acquire more properties in two locations for the county’s natural areas preservation program (NAPP). The group also heard a report from the Legacy Land Conservancy about a second round of farmland preservation through a NAPP program that the conservancy helps administer.

The first proposed acquisition for NAPP was the four-acre Jarskey property in Scio Township, which would become part of the Fox Science Preserve. That preserve lies east of Peters Road and north of Miller. Tom Freeman, retired deputy director of WCPARC and consultant on NAPP matters, briefed commissioners on the proposal. He highlighted two ponds on the property, and the popularity of the former gravel pit for educational purposes. Commissioners ultimately authorized preparation of a purchase offer at $14,285 an acre – or a total of $57,140.

The other NAPP proposal was for four wooded parcels totaling about 18 acres in Pittsfield Township, on the north side of Michigan Avenue roughly across from the Pittsfield Township offices. The value of this property, according to Freeman, is in the quality of the woods and the adjacency to the 535-acre Pittsfield Preserve. Commissioners authorized preparation of purchase offers of $390,000 for two of the properties, and $150,000 for the two other parcels – a total of $540,000.

Also at the April 9 meeting, Robin Burke – land protection coordinator for the Legacy Land Conservancy – briefed commissioners on the process used by the agricultural lands preservation advisory committee (ALPAC) to prioritize possible farmland preservation through the purchase of development rights. There were 72 applications for consideration, totaling 6,500 acres. This is the second round of potential deals that the county is weighing. The initial round was closed in March of 2013, protecting a total of 206 areas of farmland in the Bailo Family Partnership and Trust.

The commission also received reports on its finances, use of its facilities, and ongoing maintenance and improvement of WCPARC buildings and land. [Full Story]

At its April 15, 2013 meeting, the Ann Arbor city council likely will take a final vote on changes to the local ordinance governing the Ann Arbor Downtown Development Authority. On April 1, by a 7-3 vote, the council gave initial approval to the changes.

In the interim, the city council has undoubtedly received communications lobbying for and against these changes. Among those communications was a letter sent on April 12 – with signatures from representatives of eight different entities that have significant specific interests in downtown Ann Arbor: “We write to oppose the proposed ordinance amendment … [P]aramount is the proposed change to the current ordinance procedure for calculating potential rebates of higher than anticipated TIF revenues back to taxing units …”

One of the eight signatories is unique – for two reasons.

First, the Ann Arbor/Ypsilanti Regional Chamber is the only one of which The Ann Arbor Chronicle is a member.

Second, the chamber is unique among the eight because it’s the one that has the legal and public policy resources to arrive at a position based on the legal and public policy merits of the issue. But in this case, the chamber has chosen a view that seems only half-informed by legal and public policy analysis.

With access to legal talent like Doug McClure, a recent candidate for 22nd Circuit Court judge who is chair of the chamber’s public policy committee, I’d expect this regional chamber to support the kind of clear, solid, forward-looking legal foundation that the proposed ordinance amendments would provide for us as a regional community. That’s especially true given that so many people – for and against the ordinance changes – agree that the current ordinance language lacks clarity.

And the idea that the chamber would support whatever interpretation the DDA chooses to give the ordinance – in the DDA’s sole judgment, with millions of regional tax dollars at stake – is bizarre from a public policy point of view. It’s especially bizarre given that this purportedly regional chamber has access to regional public policy talent like Andy LaBarre. He’s the chamber’s vice president of government relations who’s a former staffer for Congressman John Dingell. LaBarre is also an elected representative serving on a regional governing body that has tax dollars at stake in this debate – the Washtenaw County board of commissioners.

But the chamber chose to glance past the legal and public policy issues, opting instead to allow personal, petty mayoral politics to cloud its collective thinking.

What’s even more incredible is that the chamber has chosen wording for its letter – which it then recruited the other entities to sign – that would actually point an alert reader to the relevant legal and public policy issues. If the chamber itself had taken the words in its own letter more seriously, perhaps that would have guided the organization to take a position in favor of the ordinance changes.

In this column, I’ll lay out an analysis of the wording that the chamber has chosen – “… which the DDA calculates using its judgment within the standards set by the ordinance” – and explain why those words point the way to supporting the ordinance changes. [Full Story]

The city of Ann Arbor has sent a notice of zoning violation to the popular Selma Cafe, a weekly home-based breakfast gathering that raises money for local farmers and farming activities.

The group has also received notice that the nonprofit Food System Economic Partnership (FSEP) has decided to end its fiscal sponsorship of Selma Cafe, citing “significant violations” of the terms in a memorandum of understanding between the two entities. The FSEP board voted to make the move in late March.

But it’s the zoning violations that could force a dramatic change in Selma Cafe, which often draws more than 200 people to the home of co-founder Lisa Gottlieb, located near Eberwhite Elementary School. The letter, dated April 3 from city planning manager Wendy Rampson, notes that home occupations are allowed in residential areas, but with certain restrictions. The letter states that Selma Cafe violates those restrictions in three ways: (1) more people are involved in the operation than are allowed under city code; (2) more than the permitted 10 vehicle trips per day are generated; and (3) the need for parking is not being met.

Reached by phone on Friday, Gottlieb said she plans to hand-deliver a response to the city on Monday. She believes the parking, traffic and congestion issues are resolved, and she is actively pursuing two other locations as possible venues for the weekly breakfasts. She disagrees with the city’s interpretation of the code, noting that Selma Cafe is not a business and the people who work there are volunteers, not employees. Although she hopes to continue holding the breakfasts, she said at this point it’s unclear how things will play out and whether that will be possible.

Gottlieb noted that one neighbor had criticized Selma Cafe for bringing thousands of people to the neighborhood since they started in 2009. Although the neighbor had cited that as a negative thing, Gottlieb said to her it seemed “pretty incredible” that the effort had been able to engage so many people in raising money for the local foodshed, keeping money in the community and helping local farmers.

Regarding the issues raised by FSEP, Gottlieb explained that she had withdrawn funds from the FSEP-managed bank account to transfer into a new account created as Selma Cafe transitions to become an independent 501(c)3 nonprofit. She had not first informed FSEP of the withdrawal, as required under terms of the memorandum of understanding. Even if that had not occurred, she added, “the fact is they wanted to be done with us.”

Obtaining the nonprofit status is taking longer than anticipated, so Selma Cafe is seeking another fiscal sponsor. Until that happens, the funds for Selma that remain in the FSEP-managed account – which total about $40,000 – are frozen. If no new fiscal sponsor is found and Selma does not obtain its 501(c)3 designation by May 31, FSEP could take the Selma assets permanently, under terms of the MOU. If that happened, FSEP would need to allocate those funds “in any manner consistent with applicable tax and charitable trust laws and other obligations.” [Full Story]

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]

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]

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]

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]

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]

Ann Arbor planning commission meeting (April 2, 2013): A new retail project – with plans for a Jimmy John’s restaurant – will now move to the city council for approval, following a recommendation from planning commissioners this week.

Called the State Street Center, the project will be located on a thin strip of land off of South State, just north of Ellsworth and adjacent to a relatively new Tim Hortons. Commissioners recommended approval of the site plan and for rezoning the parcel to C3 (fringe commercial). The Jimmy John’s will face South State. A separate one-story retail building will be located behind the restaurant.

Some commissioners expressed concern that the businesses in the retail building won’t be very visible from South State. Jim Cernuto, the owner’s project manager, noted that the State and Ellsworth corridor is “coming alive” after the opening of Costco, and that there’s strong interest from potential tenants. The proposed C3 zoning is the most inclusive type of non-residential zoning, allowing for a wide range of businesses, including convenience stores, dry cleaners, wholesalers and warehousing.

Also during the meeting, several commissioners brought up items for future discussion. Bonnie Bona noted that the city’s energy commission plans to develop recommendations for the city council regarding future development of the former YMCA site, on William between Fourth and Fifth avenues. She suggested that planning commissioners should discuss whether they also want to make recommendations, laying out what councilmembers should consider in deciding the site’s future. At its March 4, 2013 meeting, the council voted to direct the city administrator to prepare an RFP (request for proposals) for brokerage services to sell the lot.

Sabra Briere raised the issue of a whether the city should develop a “solar blocking” policy. If someone puts solar panels on the roof of their house, she noted, there is no ordinance to protect the home from other buildings that might be constructed nearby and block the sun – even though the city is encouraging this kind of solar energy use. Although she didn’t explicitly mention it, the issue of shading has been an argument against the proposed development at 413 E. Huron. In that case the issue has concerned the impact of building shade on trees, not solar panels. Briere also serves on the city council representing Ward 1. Councilmembers voted on April 1 to postpone action on that project.

Related to the 413 E. Huron project is a recent council directive to the planning commission to review the city’s downtown core (D1) zoning. Also on April 1, councilmembers provided specific guidance for that review, along with an Oct. 1 deadline for the completion of the work. Briere communicated the council’s direction to commissioners at their April 2 meeting, but there was no further discussion about it.

The commission’s regular meeting on April 2 was relatively brief, lasting about an hour. It was followed by a working session, where commissioners got an update from Nathan Voght, project manager for Reimagine Washtenaw. The effort is aimed at improving the Washtenaw Avenue corridor between Ann Arbor and Ypsilanti. Voght works for Washtenaw County’s office of community & economic development, which is overseeing the project. [Full Story]

Ann Arbor park advisory commission meeting (March 19, 2013): A packed agenda for this month’s PAC meeting included several items related to downtown parks and the Huron River.

Commissioners discussed a proposal to build an ice-skating rink atop a portion of the city-owned Library Lane underground parking structure. They took no action on the item, but were briefed on the proposal by two advocates of the effort: Alan Haber and Stewart Gordon. The two men also attended a subsequent March 26 meeting of a PAC downtown park subcommittee. This report includes a summary of that session as well.

River-related items on PAC’s March 19 agenda included a resolution to recommend awarding a $295,530 contract to Gerace Construction Co. for repair work and repainting at Argo and Geddes dams, as well as site improvements around Argo Dam. Brian Steglitz, an engineer with the city, told commissioners that the work is being done in response to the most recent inspection by state regulators.

Commissioners also recommended awarding a $512,180 contract for improvements at the Gallup Park canoe livery to Construction Solutions Inc., which will be funded in part by a $300,000 state grant. Cheryl Saam, facility supervisor for the Argo and Gallup canoe liveries, gave commissioners a presentation on those operations, in preparation for budget recommendations that PAC is expected to consider at its April 16 meeting.

As part of her report, Saam noted that the city plans to issue another request for proposals (RFP) to design a whitewater section along the Huron River, downstream from the Argo Dam near the Argo Cascades. Parks and recreation manager Colin Smith reminded commissioners that the first attempt at this project wasn’t successful. The Michigan Dept. of Environmental Quality did not approve the initial design, and would not issue the necessary permit for the project. The staff is working with the state to address MDEQ’s concerns, he said. Smith also reported that DTE Energy still intends to pay for the project, which is located adjacent to property that the utility company is cleaning up.

DTE representatives were on hand at the meeting because of a different project: To request an easement on city-owned land in Riverside Park, where utility poles are located. The easement is needed as part of an $8 million new electrical substation that DTE is building on land adjacent to the park. Commissioners unanimously recommended that the city council approve the easement.

In another presentation to set the stage for next month’s budget discussion, PAC heard from Doug Kelly, the city’s director of golf, and Andrew Walton, recreational facility supervisor at Huron Hills. They reviewed the status of the city’s two golf courses – at Huron Hills and Leslie Park – and noted that both courses have seen significant revenue gains over the past five years.

The issue that drew the most public commentary during the meeting wasn’t on the March 19 agenda: a possible dog park on a knoll in West Park. Residents in that area aren’t happy about the prospect of barking dogs in their neighborhood. [Full Story]

Ann Arbor District Library board meeting (March 18, 2013): Several items during the AADL board’s most recent meeting related to the issue of communications.

Nancy Kaplan, chair of the board’s new communications committee, announced that AADL will hire Allerton-Hill Consulting to do a communications audit and plan for the library, to be completed this year. The decision was made in consultation with AADL director Josie Parker, Kaplan said. It didn’t require a board vote because the amount of the contract is the maximum for not triggering board approval: $28,000. Contracts for purchases over that amount must be authorized by the board.

Board president Prue Rosental, in supporting the decision, noted that during the campaign to pass a bond for a new downtown library – which voters rejected on Nov. 6, 2012 – library advocates learned that “people in the community didn’t know what we do and how well we do it.”

Some of those “what we do” activities were highlighted during two presentations at the meeting: (1) an overview of AADL podcasts produced by staff and patrons; and (2) a report from Eli Neiburger, AADL’s associate director of IT and production, about his recent trip to Germany as a guest of the U.S. State Department and Zukunftswerkstatt (“Future Workshop”), visiting libraries in several cities. The head of the Zukunftswerkstatt was interested in using AADL’s efforts as a model to get German libraries more involved with younger communities, using gaming and other activities. As a result of the partnership with AADL, a dozen libraries in Germany have started running events through the GT System, which AADL staff developed. A league tournament is being held, and three winners will come to Ann Arbor for the May 19 German-American Gaming League Championships, held at the AADL.

Communications was also a topic during public commentary. Libby Hunter, a member of the Protect Our Libraries political action committee, urged the board to be more open and transparent, asking them to allow the public to attend committee meetings, to videotape their meetings for broadcast on Community Television Network, and to explain their use of closed sessions in relation to the Michigan Open Meetings Act. And Don Salberg asked for more information related to the condition of the downtown library, and for details on the board’s rationale for wanting a larger building on that same site.

Also during public commentary, Stewart Gordon spoke briefly about an effort to put a skating rink on the city-owned Library Lane site, adjacent to the downtown library on South Fifth Avenue. He hoped the topic could be put on the board’s agenda at some point.

The one resolution that was on the board’s agenda was unanimously approved: A one-year contract extension with Pace Mechanical Services for $83,865. The contract, which will run through June 30, 2014, covers HVAC equipment and maintenance.

The board also talked briefly about its budget preparations for fiscal 2013-14, which begins July 1. The budget and finance committee will bring a draft budget to the board’s April 15 meeting, with a vote on the budget scheduled for May 20. For the current fiscal year, the AADL has a budget of about $12 million, with a millage rate set at 1.55 mills. [Full Story]

Ann Arbor city council meeting (March 18, 2013) Part 2: In a session that lasted until nearly 2 a.m., lengthy public commentary and council deliberations focused on two related items at the council’s last regular meeting: (1) a possible moratorium on D1 (downtown core) site plans; and (2) the site plan for 413 E. Huron, located in a D1 district. Both items resulted in some unfinished business that will need to be addressed at the council’s April 1 meeting.

The council decided to conduct a review of D1 zoning, without imposing a moratorium. But councilmembers left some work on that issue until April 1, when the review’s clear scope of work and timeline are expected to be set.

The lack of any moratorium cleared the way to consider the 413 E. Huron project. Even though councilmembers deliberated in a fair amount of detail on the project, they still had a number of questions they wanted to pursue with the developer. So the council decided to postpone the item until April 1.

The council’s discussion of the 413 E. Huron project included a fine-grained examination of the project’s compliance with zoning code regarding the disturbance of natural features – trees in particular. It was punctuated by a resident shouting “You lie!” as the developer’s representative – Conor McNally of Atlanta-based Carter – responded to questions from councilmembers.

According to a letter sent by the developer to the council on March 29, councilmembers continued to submit additional questions in writing through March 28. That led to a request from the developer to remove the item from the April 1 agenda in favor of April 15, to allow for time to respond to questions. The developer is also hoping to revise 3D renderings to show changes in the building that have been made since March 18.

The developer’s request to pull the item from the agenda can’t be accommodated – because the council voted to postpone until a date certain, which means the item will need to appear on that April 1 agenda. To remove it would require a decision of the council, and that can’t be done administratively at the direction of the planning staff or on the initiative of the city clerk.

So the item will appear on the agenda, although the council may be inclined to make their deliberations brief, if their intent is to postpone it until April 15 – which would be consistent with the developer’s expressed preference. The public hearing on the site plan appears on the April 1 agenda as well, although it was declared closed by mayor John Hieftje on March 18.

This report includes a summary of public commentary and council deliberations on the moratorium and the 413 E. Huron site plan from March 18. A write-up of other agenda items is included in Part 1 of the March 18, 2013 meeting report. [Full Story]

Washtenaw County board of commissioners meeting (March 20, 2013): In its main action, the county board approved new long-term contracts with 15 of Washtenaw County government’s 17 bargaining units – including annual wage increases, a cap on employee healthcare contributions, and the elimination of “banked leave” days. The precedent-setting move aimed to protect unions before Michigan’s right-to-work law takes effect on March 28, and cut legacy costs for the county.

About 85% of the nearly 1,300 county workers belong to a union. The board also approved similar wage and benefit changes for the county’s non-union employees.

The right-to-work law will make it illegal to require employees to support unions financially as a condition of their employment, but labor agreements in place prior to March 28 will not be affected until they expire. Most of the previous contracts with the county’s labor unions were set to expire on Dec. 31, 2013. All but one of the new deals will run for more than 10 years – through Dec. 31, 2023.

Dan Smith (R-District 2) cited the length of those contracts as a reason for casting his no vote – he was the only commissioner to vote against the union contracts, though he supported the agreement for non-union employees. The duration eliminates the flexibility to deal with different conditions that might face the county in the future, he said. There is no “re-opener” clause that would allow either side to renegotiate before 2023.

Despite his no vote, Smith praised the most significant changes that will impact employees hired after Jan. 1, 2014. Those employees will participate in a defined contribution retirement plan, instead of the current defined benefit plan – the Washtenaw County Employees’ Retirement System (WCERS). In defined benefit plans, retirees receive a set amount per month during their retirement. In defined contribution plans, employers pay a set amount into the retirement plan while a person is employed. The most common defined contribution plan is the 401(k). Similar changes in retiree healthcare plans will also affect new employees.

The shift in the county’s approach to retirement plans and retiree healthcare was a major concern for several other commissioners. While acknowledging the benefits of eliminating the county’s legacy costs, Conan Smith (D-District 9) cautioned that retirees could be put at risk without the predictable stability of a defined benefit plan. However, he also noted that the board can’t continue to put the institution at risk by “guaranteeing something that we don’t know we’re going to be able to afford in the long run.”

Those legacy costs were a factor alluded to during the March 20 discussion, linking to another major decision that is expected to come before the board: bonding to cover the county’s unfunded liabilities for employee pensions and retiree healthcare. The issue hasn’t been discussed directly at any of the board’s regular meetings, but commissioners have been informed that a proposal likely will be brought forward by administration.

Based on actuarial valuations at the end of 2011, the county had $101.27 million in unfunded liabilities for its defined benefit pension, and $148.46 million in unfunded liabilities for its retiree healthcare. Those amounts will be higher when the 2012 actuarial valuations are completed later this year. The new accounting standards of GASB 68 require that unfunded liabilities must be included in an organization’s financial statements for fiscal years beginning after June 15, 2014.

Commissioners also got a year-end 2012 financial update during the March 20 meeting – the final 2012 audit will be brought to the board in April. Total revenues exceeded total expenditures by $2.26 million. The county had planned for a surplus of $1.889 million to carry into 2013 – so the year ended with an excess of $327,607 above that targeted amount.

In other action items, the board voted to form a committee that will explore the feasibility of creating a land bank, and appointed three people to the committee: Commissioner Ronnie Peterson (D-District 6), county treasurer Catherine McClary, and Mary Jo Callan, director of the county’s office of community & economic development. The committee is directed to report back to the board by Aug. 7, 2013.

During communications from the board, Conan Smith reported that the southeast Michigan Regional Transit Authority board has now been fully appointed, and will convene on March 28 for an orientation meeting. He suggested that the two Washtenaw County representatives – Richard “Murph” Murphy and Liz Gerber – come talk to commissioners about what the county’s interests and priorities are. “The earlier we weigh in, the more systemic the impact of our comments are going to be,” he said. “If we don’t talk to them until they’ve already made decisions, then it’s going to be too late.” [Full Story]

Ann Arbor city council meeting (March 18, 2013) Part 1: The two main events of the council’s meeting centered around planning in the downtown area: (1) consideration of a possible moratorium on D1 (downtown core) site plans; and (2) consideration of the site plan for 413 E. Huron, located in a D1 district.

The council decided to conduct a review of D1 zoning, without imposing a moratorium. That cleared the way to consider the 413 E. Huron project, which the council eventually voted to postpone – at roughly 1:30 a.m. Because of the amount of time spent on just those items, they’ll be included in a separate Chronicle report.

Apart from those two items, the council’s agenda still included a planning and land use focus, as well as a downtown theme. An additional theme was the city council’s relationship to two other public bodies – the city planning commission and the board of the Ann Arbor Downtown Development Authority.

In the case of the planning commission, the council for a second time balked at the commission’s recommendation of R3 (townhouse) zoning for a recently annexed parcel on Ellsworth near Stone School Road – planned as the site of Summit Townhomes, which would be a 24-unit development. The council postponed consideration of the Summit Townhomes site plan and the zoning, having previously postponed the zoning. The council also had previously referred the zoning recommendation back to the planning commission for re-review. The council’s second postponement on March 18 came after the commission’s re-affirmation of its original recommended R3 zoning. The council sent no explicit communication to the planning commission requesting action, beyond the implicit message of postponing the vote.

In the case of the DDA board, the council is weighing changes to the city ordinance governing the composition of that body, but postponed those changes for a second time at its March 18 meeting. The more significant of the ordinance changes involves clarifying how the Ann Arbor DDA’s tax increment finance capture is calculated, which has implications for millions of dollars for the DDA, the city of Ann Arbor, Washtenaw County, Washtenaw Community College and the Ann Arbor District Library.

Also related to the DDA, early in the council’s meeting an oral report was given on a session of the council’s audit committee – held the previous week to review the DDA’s FY 2012 audit. In the middle portion of the council meeting, councilmembers postponed the ordinance changes. And in the early morning hours of March 19, after the voting agenda was concluded, a member of the audit committee – Sally Petersen (Ward 2) – announced her intention to propose a task force on the DDA.

Related to other boards and commissions, the council confirmed the appointment of a chair for the zoning board of appeals (ZBA): Alex Milshteyn. He replaces Carol Kuhnke, who resigned in December 2012 after being elected judge of the 22nd Circuit Court.

In other business, the council gave approval for the zoning and site plan of The Shoppes at 3600, a proposed retail development on Plymouth Road.

The council also voted to object to the renewal of a liquor license for The Arena, a downtown bar located at Division and Washington streets. The basis for the objection – which will be forwarded to the Michigan Liquor Control Commission for final action – was non-payment of taxes.

The council also gave initial approval to a revision to the city’s sign ordinance. It would essentially maintain current conditions, but provide for certain limited digital signs with a restricted range of changeable elements.

Council communications included a briefing on upcoming changes the council will be asked to consider for the city’s public art ordinance. In other communications, the council will be giving a fire station reconfiguration plan some additional explicit discussion at a future working session – although it appears that the idea has insufficient traction to move forward.

Public commentary at the meeting covered a range of topics, including a call for the council to waive privilege on legal advice that councilmembers had received on the D1 moratorium issue – because they’ve now voted not to enact the moratorium. [Full Story]

Ann Arbor planning commission meeting (March 19, 2013): Planning commissioners reviewed two projects at their most recent meeting: a commercial project near South State and Ellsworth; and a residential development off Traver Road near the Leslie Park golf course.

The commission discussed, but then postponed action on a proposed site plan for State Street Center, just north of Ellsworth near the new Tim Hortons. The project calls for a drive-thru restaurant and separate retail building, with an entrance off of South State.

The planning staff had recommended postponement after discovering that the city’s official zoning map had been incorrectly labeled. It showed the site as zoned C3 (fringe commercial), and the developer had made plans based on that erroneous labeling. But during background research for this proposal, planning staff discovered that the site actually had been zoned as O (office) in 2003. The postponement is intended to allow the developer to submit a rezoning request.

A project that had previously been postponed by commissioners – called Hideaway Lane – was discussed and ultimately recommended for approval on March 19. The proposal is a residential development of 19 single-family houses on a 4.6-acre site off Traver Road, near the city’s Leslie Park golf course and on the edge of Traver Creek. Much of the discussion focused on issues related to the project’s impact on natural features, and how the developer plans to mitigate that impact.

The commission also authorized the reimbursement of expenses for Kirk Westphal – the commission’s chair – to attend the American Planning Association’s National Planning Conference in Chicago from April 13-17. He’ll appear on a panel with city staff to talk about Ann Arbor’s recently adopted sustainability framework. Westphal, a Democrat, recently announced his intent to run for Ann Arbor city council in Ward 2, for the seat currently held by Jane Lumm. [Full Story]

Ann Arbor Transportation Authority board meeting (March 21, 2013): The board’s main business of the evening was a presentation from the audit firm Plante Moran on the result of AATA’s fiscal year 2012 audit.

About the audit report, Plante Moran’s David Helisek told the board: “Hopefully, you found it somewhat boring.” By that he meant there were no material weaknesses or significant deficiencies to report. And his firm had struggled even to find suggestions for improvement in controls and processes. In the category of a suggestion was a recommendation to formalize a policy on user access to IT systems. And one question was left over from the previous year’s audit – on the legal basis of the AATA’s investment in heating oil futures as a hedge against possible price increases in diesel fuel. The AATA has inquired with the state of Michigan on that issue, but has not received an answer.

At the meeting, the board also rescinded a $119,980 contract it had authorized with PM Environmental – because of a failure on the AATA’s side to go through the standard procedure for bidding out the contract. The contract is for remediation of contaminated soil at the AATA’s headwaters on 2700 S. Industrial Highway. That contract will now be re-bid, and PM Environmental will have an opportunity to participate in that process.

In a final voting item on its agenda, the board authorized a four-month extension to the current pricing agreement the AATA has with Michigan Flyer – to provide AirRide service between downtown Ann Arbor and Detroit Metro airport. The extension will allow negotiations to take place on a new arrangement, which is being considered in the context of at least two factors. Ridership on the service, launched last year in April, has exceeded projections. And Michigan Flyer may be eligible for a federal grant that could increase the number of trips per day. The current service is hourly.

The board also heard a range of updates from its committees and CEO Michael Ford. Among the most significant was about a meeting scheduled for March 28 among representatives of Washtenaw County’s “urban core” communities that have, for the last few months, been engaged in discussions with AATA about expanded transit in a much smaller geographic footprint than the entire county. [Full Story]

Groundbreaking contracts with 15 of Washtenaw County’s 17 bargaining units were authorized by the county board of commissioners at its March 20, 2013 meeting. The deals, which take effect March 21, come a week before Michigan’s right-to-work law takes effect, and guarantee that employees will not be subject to the law until the contracts expire. The board also voted to approve comparable compensation and benefits for its non-union workers.

The majority of contracts run through Dec. 31, 2023 and are the longest-term labor agreements ever authorized by the Washtenaw County government, which employs about 1,300 workers. One of the unions agreed to a shorter-term contract: The contract for AFSCME 3052 lasts five years, through Dec. 31, 2017.

Typically, such agreements last two to five years. About 85% of county workers belong to a union.

In broad strokes, the agreements provide for annual wage increases, a cap on employee healthcare contributions, and the elimination of “banked leave” days. Banked leave days have been used in recent years to help balance the budget by cutting labor costs. The days are unpaid, but don’t affect retirement calculations.

Some of the major changes relate to benefits for employees hired after Jan. 1, 2014. Those employees will participate in a defined contribution retirement plan, compared to the current defined benefit plan – the Washtenaw County Employees’ Retirement System (WCERS). In defined benefit plans, retirees receive a set amount per month during their retirement. In defined contribution plans, employers pay a set amount into the retirement plan while a person is employed. The most common of these defined contribution plans is the 401(k). [Full Story]

A meeting last week at Lawton Elementary School, in southwest Ann Arbor, fell the day before the one-year anniversary of significant overland flooding in the neighborhood. The flooding resulted from heavy rains last year on March 15, 2012. Last week’s meeting followed an earlier one held on Jan. 29, 2013.

The meetings are part of a study of the Upper Malletts Creek watershed, being conducted by the office of the Washtenaw County water resources commissioner under an agreement with the city of Ann Arbor. The year-long study is supposed to culminate in a final report due to the Ann Arbor city council in February 2014. Water resources commissioner Evan Pratt was on hand at the meeting, along with other members of the project team.

In response to direction from a citizens advisory group that’s been formed for the project, the team used the March 14 meeting to introduce residents to the basic toolkit for stormwater management techniques. The general stormwater management practices described at the meeting – without trying to analyze which solutions might be appropriate for specific locations in the area – ranged from increasing the number of catch basins in streets to the construction of underground detention facilities.

At least 60 residents attended the meeting, and seemed generally receptive to the idea that some money might actually be spent on infrastructure projects to reduce flooding in their neighborhood: “If you want me to sign up for you breaking up my street and putting [stormwater management infrastructure] in there, just give me a consent form and I will sign it tonight!”

The project team is also still in a phase of gathering information about specific experiences that residents have had with past flooding problems. And the same technology platform – an online mapping tool – can be used by residents for logging future flooding events. For help in using a smart-phone app, one attendee volunteered her grandson “for rent” to other residents. Members of the project team also indicated they welcomed information submitted in any format – including letters, face-to-face conversation and phone calls.

But it was a missing follow-up phone call – expected from one resident who’d attended the first meeting on Jan. 29 – that indicated some continuing frustration about the city’s footing drain disconnection (FDD) program. The frustrated resident’s experience had been that after an FDD program sump pump was installed in his basement, he’d started having problems with a wet basement – problems he hadn’t experienced before. Project manager Harry Sheehan, with the county water resources commissioner’s office, extended an apology for the missed communication and an offer to arrange a site visit.

The FDD program removes a building’s footing drain connection to the sanitary sewer system and redirects that stormwater flow to the system designed to handle it – the stormwater system. The FDD program, which has been somewhat controversial, is not the focus of the Upper Malletts Creek study. But residents got an assurance that the additional volume of rainwater that goes into the stormwater system – as a result of the FDD program – would be accounted for in all the modeling that’s done as part of this study. [Full Story]

Washtenaw County parks and recreation commission meeting (March 12, 2013): Several actions at WCPARC’s most recent meeting related to grants and partnerships – including the allocation of $600,000 in Connecting Communities funding.

Four communities received grants from WCPARC under that trail-building program: the village of Dexter ($225,000); Ypsilanti Township ($75,000); Pittsfield Township ($150,000); and the city of Ann Arbor ($150,000). Funding for Ann Arbor – only half of the $300,000 that the city had applied for – is to fund a trail at 721 N. Main, a city-owned site that’s being redeveloped. The award is contingent on the city receiving a matching grant from the Michigan Dept. of Natural Resources Trust Fund (MDNRTF).

WCPARC is also applying for an MDNRTF grant, hoping to get $300,000 to help develop a master plan for the Staebler Farm County Park. The 98-acre property, which straddles Plymouth Road in Superior Township, had been a family farm for nearly a century. The commission held a public hearing on this issue, and heard from four nearby property owners who raised concerns about trespassing. The proposal calls for WCPARC to contribute $450,000 in county funds to the project.

Moving forward on another major project, commissioners approved three actions related to the proposed recreation center on Ypsilanti’s Water Street redevelopment site, located along Michigan Avenue. WCPARC agreed to share equally with the Ann Arbor YMCA in a $28,000 market study to help determine whether there’s enough community interest to support the proposed center. Commissioners also authorized staff to move forward with the acquisition, for $31,500, of an easement from the Huron Fischer Honda Leasing Co. for a section of the Border-to-Border (B2B) trail that would connect Riverside Park to the Water Street site. The third action was a resolution acknowledging a partnership between WCPARC and the city of Ypsilanti to design, build and operate the rec center.

And WCPARC also authorized staff to apply for $1.4 million from the federal Transportation Alternative Program (TAP) to extend the B2B River Terrace Trail from Dexter-Huron Metropark east 1.1 miles to Zeeb Road. TAP is administered through SEMCOG (Southeast Michigan Council of Governments). The application would be in partnership with Scio Township and the Washtenaw County Road Commission. [Full Story]

Ann Arbor public art commission special meeting (March 7, 2013): Because attendance was low at AAPAC’s regular meeting in late February, commissioners held a special meeting the following week to wrap up items that hadn’t been addressed.

Commissioners voted to accept a memorial for Coleman Jewett as an official AAPAC project and to approve Sarah Gay as a volunteer project manager. Her duties would be to lead efforts for city council approval, donor relations and fundraising. John Kotarski advocated for less involvement from AAPAC, saying he hoped to streamline the project.

However, other commissioners felt it should be handled like other projects, with oversight by AAPAC. The proposal is for a bronze Adirondack chair at the Ann Arbor farmers market. The city’s market manager, Sarah DeWitt, attended the March 7 meeting and will help coordinate the project.

Commissioners also voted to increase the honorariums for artists who have been selected as finalists for a $400,000 project at the East Stadium bridge. The overall project amount remains unchanged, but honorariums were raised from $2,000 to $3,000 for each of the four finalists: Volkan Alkanoglu, based in Atlanta, Georgia; Sheila Klein of Bow, Washington; Rebar Group of San Francisco; and Catherine Widgery of Cambridge, Mass. They will be in town on April 1 for a site visit and public open house.

Another effort that’s in the early phases got a vote of support from commissioners, but no financial commitment at this point. The project will use old aluminum canoes from the city of Ann Arbor’s Argo canoe livery, which artists and community groups will turn into artwork that will be displayed throughout the downtown in 2014. Partners in the project include the Ann Arbor Area Convention & Visitors Bureau (CVB), the Main Street Area Association (MSAA), the Arts Alliance, and the Huron River Watershed Council. AAPAC is involved only in a supportive role, to help with public engagement.

The role of public engagement was part of a discussion regarding AAPAC’s annual public art plan, which is due to the city council on April 1. Some commissioners expressed frustration at the process, given the uncertainty of the public art program’s future. Ultimately, they gave guidance to Aaron Seagraves, the city’s public art administrator, to draft a plan that includes projects in highly-visible, highly-used locations, currently underserved in terms of public art.

The March 7 meeting also included the election of officers. Bob Miller was elected the new chair, replacing Marsha Chamberlin. Kotarski abstained from voting. He noted that the commission will soon be at only 40% capacity – a reference to the fact that there are three vacancies on the nine-member commission, with an additional resignation expected by Wiltrud Simbuerger in the near future.

Two of those vacancies will likely be filled shortly. Nominations are on the city council’s March 18 agenda for confirmation: Nick Zagar, an artist and commercial real estate agent who serves on the Ann Arbor Art Center board; and Ashlee Arder, programs coordinator at ArtServe Michigan.

All of these actions come in the context of the city council’s ongoing review of the city’s public art program, which began in early December of 2012. This article begins with a report on the most recent meeting of the council’s public art committee on Friday, March 15. An update of their work will be attached to the council’s March 18 agenda as an item of communication. Their next committee meeting is scheduled for March 28. [Full Story]

Over the last month, the Ann Arbor city council has been using a series of working sessions to deliberate toward a final budget decision in late May. That’s when the council will need to adopt the city administrator’s proposed fiscal year 2014 budget, or make adjustments and adopt an amended budget. The city administrator’s proposed budget is due by April 15 – the council’s second meeting in April.

The most recent of those work sessions took place on March 11, 2013. The agenda focused on the city council’s top priorities, as identified at its planning retreat late last year: (1) city budget and fiscal discipline; (2) public safety; and (3) infrastructure. Two additional areas were drawn from a raft of other possible issues as those to which the council wanted to devote time and energy over the next two years: (4) economic development; and (5) affordable housing. The retreat had resulted in a consensus on “problem” and “success” statements in these areas – answering the questions: (1) What is the problem we are solving? and (2) What does success look like?

The priority-focused March 11 work session followed one held on Feb. 25, which mapped out the financial picture for the next two years fund-by-fund – not just the general fund, but also the various utility funds (water, sanitary sewer, stormwater, and streets) and internal service funds (fleet, and IT). But on March 11, the council’s focus was primarily on the general fund – as deliberations centered on the first two priority items: fiscal discipline and public safety.

The Feb. 25 session had provided the council with a sketch of the basic general fund picture for the next two years, which is better than it has been for the last several years. Based on current levels for all services, recurring revenues for the two years are projected to exceed recurring expenses by a total of $1.44 million in a general fund budget of about $82 million each year.

That doesn’t factor in requests from various departments that would result in additional recurring expenses, totaling $1.17 million for the two years – which would leave a surplus of just $265,000. When further requests from departments are considered that would result in one-time expenses, that two-year surplus would flip to a deficit of about $252,00. And if all as-yet-unfunded capital improvement expenses are added in for the two years, the city would be looking at a two-year general fund deficit of $4.41 million.

The general fund’s uncommitted balance could cover that deficit – but it would leave the uncommitted balance at $9.69 million at the end of FY 2015, or 11.5% of operating expenses. Under city policy, the uncommitted general fund balance should be between 8% and 12%. However, Tom Crawford, the city’s chief financial officer, has recommended that the city strive for 15-20%.

None of those numbers factor in any additional resources that could be required to achieve success measured in terms of the city council’s priority goals.

At the March 11 session, discussion by councilmembers of the first two priority items – fiscal discipline and public safety – revealed some unsurprising philosophical differences in approach. The majority of councilmembers seemed to accept city administrator Steve Powers’ inclination to take FY 2014 as a “breather” year, not asking departments to meet reduction targets this year, after several years of cuts. But Jane Lumm (Ward 2) – who previously served as a Republican on the council in the mid 1990s, and was elected as an independent in 2011 – expressed disappointed with this approach. She wants reduction targets every year.

And Sumi Kailasapathy (Ward 1), who was elected in November 2012, challenged the idea that it’s only new councilmembers who need to learn during the budget process. She pointed out that city staff members also have a learning curve – as they shift the organization’s priorities to the new council’s priorities.

For public safety, a consensus seemed to emerge that the council’s planning retreat success statements about policing might need further refinement – in light of the current department’s configuration. Police chief John Seto characterized that configuration as set up to be reactive, not proactive. Current staffing levels don’t allow for a proactive configuration, he indicated.

But the council did not appear to have a complete consensus about the importance of that proactive capability – unless that capability could be linked to success in making the community be safe and feel safe. Measuring perceptions of safety through the National Citizens Survey – for the first time since 2008 – was an idea that seemed to have some traction on the council. Some sentiment was expressed that the number of police officers should be increased – whether or not that increase could be tied to better safety as defined in adopted city council goals.

For the fire protection side of public safety, councilmembers effectively made a decision – without voting – to give clear direction to fire chief Chuck Hubbard that they didn’t want to see his three-station plan implemented. He had first presented the plan about a year ago. The proposal would close three stations but re-open one, for a net reduction from five to three stations.

Some dissent was offered, but mayor John Hieftje indicated that in his view the three-station plan was dead. Still, councilmembers seemed unenthusiastic about an alternative – which would entail hiring an additional 23 firefighters to staff existing stations. They seemed more inclined toward incremental improvements in fire safety. Those improvements might be gained through community education. Another possibility is deployment of some light rescue vehicles, which would require a crew of just two, instead of water-carrying trucks that need a crew of three.

This report focuses exclusively on the top council priorities of budget discipline and public safety. Also discussed at the working session, but not included in this report, were draft work plans for the other three priority areas: infrastructure, economic development and affordable housing.

The council may schedule an additional work session on March 25 to give city administrator Steve Powers more direction as he shapes the final budget that he’ll submit to the council in April. [Full Story]

Washtenaw County board of commissioners budget retreat (March 7, 2013): County commissioners continued their work to lay a foundation for the 2014-2015 budget, in a three-hour retreat that covered a wide range of issues – including the possibility of a new millage, bonding or other revenue sources.

The retreat comes in the context of a projected $24.64 million general fund deficit over a four-year period from 2014 through 2017. A much smaller general fund deficit of $3.93 million is projected for 2014, but county administrator Verna McDaniel hopes to identify $6.88 million in structural changes for that year – a combination of new revenues and cuts in expenditures. If that happens, the larger projected deficit would be addressed, because those cuts and revenue increases would compound and carry over into future years.

The retreat didn’t aim to identify dollar amounts or even specific programs to be cut or supported. Rather, the conversation – which included small-group work – was designed to elicit broader priorities of the board. Commissioners did not explicitly reference priorities that had been developed for the previous 2012-2013 budget cycle, though some common themes emerged. [.pdf of 2012-2013 budget priorities]

Several commissioners stressed the importance of strategic investment to create an environment that supports the local economy. Transportation, education, and housing – particularly on the county’s east side, in the Ypsilanti area – were all cited as critical to economic development efforts. Funding strategies were floated, including the possibility of a human services millage, road tax, or “social impact” bond. Also discussed was the possibility of absorbing the road commission into county government operations.

The retreat follows a budget briefing that McDaniel and her financial staff had given to commissioners at their Jan. 16, 2013 meeting. The board has also discussed the budget process at two working sessions earlier in the year, and will follow up the retreat with a working session in April. McDaniel is expected to deliver a budget proposal to the board in September. The board must adopt the budget by the end of 2013. [Full Story]

Ann Arbor planning commission meeting (March 5, 2013): Despite protests by members of the Library Green Conservancy and hesitation by some commissioners, the city planning commission voted unanimously to add the Connecting William Street plan to its list of resource documents that support the city’s master plan. After the vote, Wendy Woods tried to reopen the item for reconsideration, but she was unsuccessful in garnering support from the majority of commissioners, so the initial decision stands.

The Connecting William Street project was undertaken by the Ann Arbor Downtown Development Authority at the behest of the city council. It focuses on recommendations for coordinated development of five city-own sites in the William Street area, on the south side of downtown. By becoming a resource document, the CWS plan carries less weight than it would if it were part of the city’s master plan.

Amber Miller of the DDA gave a presentation during the March 5 commission meeting, similar to those previously given to the council and the DDA board.

Much of the discussion among commissioners focused on the issue of open space. Miller noted that recommendations on that issue have been deferred to a committee of the city’s park advisory commission. That downtown parks committee is in the early stages of its work – it was scheduled to meet earlier in the day on March 5, but that meeting was canceled.

Commentary during a public hearing on the CWS plan also focused on open space, with several members of the Library Green Conservancy advocating for a centrally located park atop the Library Lane underground parking structure. They criticized the DDA’s process for developing the plan, and felt the planning commission had not adequately publicized the fact that a public hearing on Connecting William Street would be held that evening.

Additional public commentary came after the commission’s vote. Woods said her decision to ask for reconsideration of the item was prompted by concerns raised during this final public commentary. She felt it wouldn’t hurt to wait two weeks until the commission’s next meeting, so that more people could have the chance to weigh in, if they wanted.

Sabra Briere, who had expressed strong reservations before casting her original yes vote, said she supported Woods in her effort to reconsider the item, suggesting that postponement would be appropriate. She expressed concern that the commission was deciding to use the CWS plan as a future planning document – which would be referenced when the planning staff and commission make their recommendations to the city council on site plans and other planning and development actions. Given that importance, Briere – who also serves on city council – wanted to be absolutely certain before accepting it.

Other commissioners disagreed. Kirk Westphal, the planning commission’s chair, also served on a DDA leadership outreach committee (LOC) that helped craft the Connecting William Street plan. He said he felt extremely comfortable with the public process that had led to these recommendations. Eric Mahler also argued against reopening the item for another vote, saying the commission needed to bring closure to this long process. He was satisfied that sufficient public notice had been provided.

It’s unclear whether the city council will take any action on the Connecting William Street plan. As to what happens next, Susan Pollay, the DDA’s executive director, told planning commissioners that the DDA will be following the council’s guidance. Councilmembers have already taken a first step related to one of the five parcels – the former YMCA lot. At their meeting on March 4, 2013, councilmembers voted to direct the city administrator to prepare an RFP (request for proposals) for brokerage services to sell the lot. A $3.5 million balloon payment on the property is due at the end of 2013. [Full Story]

Ann Arbor city council meeting (March 4, 2013): The council had five items on its agenda related geographically to downtown Ann Arbor – but delayed voting on two of them.

On one of those items, the council voted to postpone its initial consideration of changes to Chapter 7 of the city code, which governs the way the tax increment finance (TIF) capture is calculated for Ann Arbor’s downtown development authority. The revisions to Chapter 7 would also affect the composition of the DDA board, excluding elected officials from service.

The council also postponed until its next meeting, on March 18, a possible moratorium on site plan review for projects in the downtown. The possible moratorium previously had been postponed from the council’s Feb. 19 meeting. After hearing extensive public commentary on the topic on March 4 – from residents and representatives of the developer of a proposed 14-story residential project at 413 E. Huron – the council went into closed session.

On emerging from the closed session, the council voted, without deliberation, to postpone the item. The wording in the resolution provides an exemption from the moratorium for site plans that already have a recommendation for approval from the city planning commission. If enacted, the moratorium as worded would still apply to the 413 E. Huron project, because the planning commission’s 5-3 vote for approval fell short of the six it needed for a positive recommendation. The 413 E. Huron site plan is now expected to be on the same March 18 meeting agenda when the moratorium will be re-visited.

Eluding the impact of the proposed moratorium’s wording was another downtown project, which appeared on the March 4 meeting agenda. The site plan for a 14-story apartment building at 624 Church St. was approved at the council’s meeting – but that project would not have been impacted by the moratorium as it’s currently proposed. That’s because it had received a recommendation of approval from the city planning commission.

The council also voted to reconstitute a task force to re-evaluate the downtown design guidelines, which supplement the city’s zoning regulations.

In the final downtown-related item, the council voted to direct the city administrator to issue a request for proposals for brokerage services to possibly sell the city-owned parcel at Fifth and William streets – the location of the former Y building. It’s currently used as a surface parking lot in the city’s public parking system.

While the city is contemplating the sale of that site, which it purchased for $3.5 million, the council voted to buy a much less expensive parcel outside the downtown, near the Bluffs Nature Area. The council approved a purchase price of $115,000 for the parcel, which is located off Orkney Street.

The council also approved two other site plans for projects not in the downtown – although the four-unit project at 515 N. Fifth is near the downtown. The council also approved the Blue Heron Pond development, a 64-unit project on the western side of town, located at Liberty and Maple.

In other business, the council approved receipt of a federal grant to demolish two of the buildings on the city-owned property at 721 N. Main. The buildings are in the floodway. A third building, in the flood fringe, is being studied by the city for possible reuse.

The property at 721 N. Main is a former maintenance yard. So none of the 44 vehicles authorized for purchase by the council at the March 4 meeting will be maintained there. Total cost of the vehicles was $928,499.

None of the vehicles authorized for purchase was a plug-in electric vehicle. However, the council passed a resolution in support of preparing city infrastructure for plug-in vehicles. Two-other energy-related agenda items included one supporting the city’s participation in Earth Hour, and another one supporting use of the city’s energy fund for energy improvements in connection with community projects.

An item that drew considerable discussion before approval related to street closings associated with the June 9, 2013 Ann Arbor marathon. [Full Story]

National Sunshine Week started yesterday. That’s not a celebration of daylight saving time, which started the same day. But the two could be connected. Yesterday’s annual conversion to daylight saving time is supposed to give everyone some extra literal sunshine toward the end of the day. Sunshine Week is an occasion to remind ourselves of the extra figurative sunshine in our governance – ensured in many states through legislation enacted in the 1970s.

Sunshine Week is an occasion to remind ourselves that open government is good government.

Michigan has two laws that are key to open government: the Open Meetings Act (OMA) and the Freedom of Information Act (FOIA). Both of these laws rely crucially on good faith. For example, the FOIA allows a public body to deny access to certain public records – like those that are protected by the attorney-client privilege.

If a record is requested and then denied based on the attorney-client privilege, a requester has no way of judging whether the assertion of privilege is appropriate. A requester relies on the good faith of government officials that privilege is not inappropriately extended to records that are not in fact protected by privilege. A requester can resort to a lawsuit, which under Michigan case law can result in the review of the records by a judge to confirm – or refute – the public body’s assertion of privilege. But few requesters have the wherewithal to file a lawsuit over a FOIA denial.

Here at The Ann Arbor Chronicle, we’re celebrating Sunshine Week by laying out a recent occasion when we requested records under the FOIA, were denied the records, appealed to the city administrator, were denied under the appeal, but then were able to obtain some of the records by other means. The record in question is an email written by Ann Arbor city attorney Stephen Postema. This provides an opportunity to evaluate independently, without filing a lawsuit, whether the city inappropriately asserted attorney-client privilege in denying access to a record.

We consulted on the matter with an attorney, Marcia Proctor, who agreed to analyze the relevant factors in a hypothetical scenario. Proctor is former general counsel of the Michigan Bar Association, a specialist in legal ethics, whose practice specializes in professional responsibility for lawyers and judges.

We first present the hypothetical scenario, followed by a brief discussion of the relevant factors in the scenario identified by Proctor. We then present the text of the email and apply the various tests outlined by Proctor. We reach the conclusion that the city inappropriately asserted attorney-privilege to the document.

We then evaluate whether a different exemption provided by the FOIA might apply. That exemption allows a public body to withhold communications internal to the body – to the extent that they are non-factual and preliminary to a final decision by the body. In the balancing test prescribed by the state statute, we reach a different conclusion than the city did: We think the public interest in disclosure outweighed any interest the city had in shielding this frank internal communication from public view.

Finally, we urge the city council to weigh in on the city’s administrative policy on FOIA response, which is currently being revised. It’s important for councilmembers to set the overarching principle that guides the city’s FOIA responses. And we think that guidance should be biased in favor of disclosure. [Full Story]