Stories indexed with the term ‘Act 196 of 1986’

Transit Withdrawal Before Council Transition

Ann Arbor city council meeting (Nov. 8, 2012): The post-election meeting of the council – moved from its usual Monday slot to Thursday – featured one high-profile piece of business watched by many throughout the county. That was a vote on withdrawal by the city of Ann Arbor from a new transit authority – called The Washtenaw Ride – which was incorporated on Oct. 3, 2012. The vote to opt out was 10-0. Sandi Smith (Ward 1) was absent.

Margie Teall

Margie Teall (Ward 4) raises her hand asking to be recognized so she can speak at the Ann Arbor city council’s Nov. 8 meeting. (Photos by the writer.)

Smith had said her farewell from the council at the previous meeting, on Oct. 15. She had decided not to seek re-election to her seat. At the Nov. 8 meeting, two other councilmembers attended their final meeting – Carsten Hohnke (Ward 5) who, like Smith, did not seek re-election, and Tony Derezinski (Ward 2) who did not prevail in his August Democratic primary. New councilmembers – Sumi Kailasapathy (Ward 1), Sally Petersen (Ward 2) and Chuck Warpehoski (Ward 5) – will be ceremonially sworn in at the start of the council’s next meeting on Nov. 19.

A transitional theme emerged, as discussion of some agenda items straddled the Nov. 8 and Nov. 19 meetings – including the transit authority opt-out vote. Stephen Kunselman (Ward 3) had been planning to bring a similar item forward on Nov. 19, when he felt he’d have a six-vote majority on the question. But that move was preempted by the Nov. 8 item, which included the sponsorship of Sabra Briere (Ward 1), Christopher Taylor (Ward 3) and mayor John Hieftje – who had previously been key figures in supporting the city’s role in the planned authority.

Discussion of a living wage waiver for the nonprofit Community Action Network (CAN) also included mention of the Nov. 19 meeting. That’s when a proposal will be brought forward that would change the living wage ordinance itself. The preference of Hieftje and Hohnke to wait and consider the ordinance revision for all nonprofits – instead of granting a waiver to CAN – was strong enough that they voted against the waiver. But the eight votes it received were enough to ensure that for the next three years, CAN does not need to abide by the living wage ordinance – which would otherwise require it to pay all its workers $13.57/hour.

A resolution that transferred $90,000 from the general fund reserve to the affordable housing trust fund was part of the transitional theme – because it had Sandi Smith’s name attached as a sponsor, even though she could not attend the meeting. The dollar amount was keyed to the price of a strip of land belonging to the former YMCA lot, which the Ann Arbor Transportation Authority recently purchased from the city. The transfer of funds was made in the spirit, if not the letter, of a policy enacted by the council at Smith’s urging at her final council meeting. That policy called for net proceeds of the sale of the Y lot to be deposited in the affordable housing trust fund.

The council’s agenda for Nov. 19 was partially previewed when both Briere and Jane Lumm (Ward 2) announced they’d be bringing forward proposals to revise the city’s Percent for Art ordinance – in the wake of a failed public art millage proposal at the polls on Nov. 6. Briere’s proposal would alter the definition of projects that qualify, while Lumm’s would eliminate the program. The Percent for Art ordinance requires that 1% of the budgets for all capital projects be set aside for public art.

And although he’ll be leaving the council, Derezinski will serve out the remainder of Evan Pratt’s term on the city planning commission. Pratt is leaving that role after being elected Washtenaw County water resources commissioner. At the Nov. 8 meeting, council confirmed Derezinski’s planning commission nomination, which had come at the council’s previous meeting. The council also decided to expand a task force on planning for the North Main corridor to make room for outgoing councilmember Sandi Smith, and appointed her to that group as a citizen member. She’s been serving as the council’s representative.

In other business, a resolution that would have moved toward converting the city’s retirement system to a defined contribution plan – instead of a defined benefit plan – was withdrawn. The council also approved increasing the staffing level of the fire department from 85 to 86 firefighters. And the city’s sign board of appeals (SBA) was dissolved by the council, with responsibilities transferred to the zoning board of appeals (ZBA). The council also voted to give city attorney Stephen Postema a 2.4% raise, his first in five years. [Full Story]

Ann Arbor Mayor: Need Transit Board Members

Ann Arbor mayor John Hieftje has made a public call for volunteers to serve on the new 15-member transit authority board, recently incorporated under Act 196 of 1986. He made the formal announcement at the city council’s Oct. 15, 2012 meeting.

Also added to the meeting’s agenda were two of the seven needed nominations to the new Act 196 transit board: Susan Baskett, who currently serves as a trustee on the Ann Arbor Public Schools board; and Tony Derezinski, who currently serves on the city council. Derezinski will be leaving the council in mid-November, because he did not prevail in his August Democratic primary race. His last city council meeting will be Nov. 8.

While it had been previously assumed that the … [Full Story]

AATA Keeps Rolling Toward Countywide

Ann Arbor Transportation Authority special board meeting (Oct. 2, 2012): As expected, the AATA board voted unanimously, with all seven members present, to request that the Washtenaw County clerk file articles of incorporation for a new transit authority, established under Act 196 of 1986 and called The Washtenaw Ride.

From left: Jesse Bernstein, AATA CEO Michael Ford, Charles Griffith and Roger Kerson.

From left: Jesse Bernstein, AATA CEO Michael Ford, Charles Griffith and Roger Kerson. Bernstein, Griffith and Kerson are AATA board members. (Photos by the writer.)

Based on discussion at the board’s Sept. 27 meeting, it was the AATA’s expectation that the articles would be filed as soon as Oct. 3, and the wording of the AATA’s resolution indicated that the filing should take place “immediately.”

And according to Washtenaw County clerk staff, that’s what happened. Representatives of the AATA were authorized as couriers by the clerk, and they conveyed the physical documents to Lansing.

Letters that included a notice of intent to file had been sent on Sept. 27 to every jurisdiction, and to every elected official in the county.

At the Oct. 2 meeting, board chair Charles Griffith and former chair Jesse Bernstein expressed thanks to staff and community members who’ve worked over the last two years to get the process to this point. The basic theme of most of the remarks was in the spirit of the long journey ahead.

The long journey begins with the entity that’s created by the filing – which will initially have no assets, staff, or ability to operate transportation service in the county. A 15-member board composition for the new authority is already reflected in the membership of the board of the pre-incorporated board (called the U196 board), which has been meeting already for a year. Some of those board members attended the Oct. 2 meeting – David Read (North Middle District), Bob Mester (West District), Bill Lavery (South Middle District) and David Phillips (Northeast District).

Districts that include multiple jurisdictions appoint their representatives under inter-local agreements made under Act 7. In the case of the city of Ann Arbor, the appointments to the new transit authority need to be made through the city council’s confirmation of mayoral nominations.

To make the transition from the AATA to The Washtenaw Ride, under terms of a four-party agreement, voters would need to approve a funding source adequate to pay for the proposed expanded service plan. The four-party agreement is between the AATA, the cities of Ann Arbor and Ypsilanti, and Washtenaw County.

The five-year service plan for expanded service includes: (1) countywide demand-responsive services and feeder services; (2) express bus services and local transit hub services; (3) local community connectors and local community circulators; (4) park-and-ride intercept lots; and (5) urban bus network enhancements. For Ann Arbor, the program includes increased bus frequencies on key corridors, increased operating hours, and more services on weekends. According to a Sept. 5 press release from the AATA, Ann Arbor and Ypsilanti will get a 56% increase in service hours compared to current levels.

The AATA has indicated that a possible funding scenario is to ask voters in Washtenaw County to fund the new transit authority with a property tax of 0.584 mills – in an election that could come as early as May 2013. For a house worth $200,000, with a state-equalized value of $100,000, an 0.584 mill transit tax would cost that property owner about $58 per year. For an Ann Arbor resident with a $200,000 house, adding the 0.584 mill tax to the existing city transit tax of roughly 2 mills works out to a transportation tax burden of about $258 a year.

Also under the four-party agreement, the two cities’ transit taxes would become part of The Washtenaw Ride’s funding.

The transition would potentially not take place at all, if a majority of voters don’t approve it. Under the terms of the four-party agreement, a voter-approved funding source for the expanded services must be identified by the end of 2014.

Washtenaw County’s role is limited to the filing of the articles of incorporation for the new transit authority. The act of incorporation will include by default all jurisdictions in Washtenaw County. However, filing of the articles opens a 30-day window for jurisdictions to opt out of the arrangement. That can be accomplished through a vote of a jurisdiction’s governing body.

Michael Ford, AATA’s CEO, said at the Oct. 2 meeting that he hoped to schedule the first meeting of The Washtenaw Ride’s board for Oct. 11.  Although it’s a fair assumption that the current AATA board members will be nominated by mayor John Hieftje to serve as Ann Arbor’s representatives to the new transit authority, there’s no council meeting scheduled between now and Oct. 11 when the council could vote to make those appointments official.  [Full Story]

AATA to County: Make New Transit Authority

At a special meeting held on Oct. 2, 2012, the board of the Ann Arbor Transportation Authority unanimously passed a resolution requesting that the Washtenaw County clerk file articles of incorporation for a new countywide transit authority to be called The Washtenaw Ride. The articles will be filed under Act 196 of 1986.

The creation of the new authority will be made official when the Washtenaw County clerk files the paperwork with the state, likely on Oct. 3. [Added shortly after initial publication: Although the Oct. 3 date was the expectation expressed at the AATA board's Sept. 27 meeting, the wording of a Washtenaw County board of commissioners resolution on the topic indicates that a step of alerting jurisdictions of the ... [Full Story]

U196 Board Convenes First Meeting

The unincorporated version of a possible future Act 196 countywide authority in Washtenaw County met for the first time on Oct. 20, 2011. Act 196 of 1986 is a state enabling statute that explicitly provides for the formation of a transit authority at the county level. The Ann Arbor Transportation Authority is formed under Act 55 of 1963.

The meeting comes in the context of the culmination of the AATA’s transportation master planning effort and the review of various financing options now taking place by a group of more than 20 financial experts from the private and public sectors. The financial group is led by former Washtenaw County administrator Bob Guenzel and McKinley Inc. CEO Albert Berriz.

Membership in … [Full Story]

AATA To Use One-Time Deficit as Catapult

Ann Arbor Transportation Authority board meeting (Sept. 15, 2011): With four of its seven members in attendance, the AATA board had just enough members present to transact two major pieces of business for the coming year. The board approved its 2012 fiscal year work plan and the budget that will support that plan.

Michael Ford CEO AATA

AATA's CEO Michael Ford presents an overview of the transit master plan to members of a financial group that will be making recommendations on funding options for countywide transportation. (Photos by the writer.)

The AATA fiscal year runs from Oct. 1 through Sept. 30. The budget approved by the board calls for expenses of $30,410,616 against only $29,418,995 in revenues, for a deficit in the coming year of $991,621. At the meeting, members stressed that the nearly $1 million deficit was due to one-time expenses associated with the planned transition to a countywide service. They also stressed that even by using unrestricted reserves over the next year to cover the planned deficit, the AATA would still be left with more than three months’ worth of operating expenses in its reserve.

Incurring a deficit this year was characterized as a way to “catapult” the organization forward, allowing it to pursue an aggressive work plan for the coming year, which was also approved at the meeting. Highlights of that work plan include reconstruction of the Blake Transit Center in downtown Ann Arbor. Design for the station is expected to be complete by the end of the year, with construction to start in spring 2012.

In terms of increased service, next year’s work plan includes a focus on: establishing the AATA as a vanpool service provider; establishing service to the Detroit Metro Airport; improving work-transportation connections between Ann Arbor and Ypsilanti; and continuing work on commuter rail. Also related to enhanced services, the AATA is also holding rider forums in October to get feedback on proposed increased service on Route #4, between Ann Arbor and Ypsilanti.

Related specifically to commuter rail, the board received an update at the meeting on the Washtenaw Livingston Line (WALLY) project, a proposed north-south commuter rail connection between Howell and Ann Arbor. The board expressed some caution about the project by passing a resolution that requires the board’s explicit approval for the expenditure of the $50,000 in next year’s budget allocated for station designs.

In other business, the board approved the selection of Plante & Moran as its new auditor. A new auditor rotation policy put in place by the board earlier this year made the previous auditor, Rehmann Robson, ineligible for the contract. The AATA board also approved a contract with an outside vendor to begin offering vanpool service.

In business that could be described as housekeeping, the board opted to keep its same slate of officers for the coming year and to keep the same meeting schedule – the third Thursday of the month. Jesse Bernstein was elected chair last year, and will continue in that role.

Also at the meeting, other members of the financial review group were announced. That group will be analyzing funding options for an expansion to countywide service. Previously, it had been announced that McKinley CEO Albert Berriz and former Washtenaw County administrator Bob Guenzel would co-chair the group. Their first meeting was Friday, Sept. 16, the day after the AATA board met. Berriz stated at that first meeting that the group will meet three more times, and will produce a white paper by the end of this year.

Related to that countywide effort, the initial board for an unincorporated transit authority – a precursor to an eventual formal authority – could be seated by Oct. 20, the date of the AATA board’s next meeting. It would include representatives from Ann Arbor, Ypsilanti, and other districts throughout the county. [Full Story]

AATA OKs Release of Funding Report

At its Aug. 24, 2011 meeting, the Ann Arbor Transportation Authority board authorized release of the ”Volume 3: Funding Options Report” of its transit master plan (TMP). The TMP is part of the AATA’s effort to fulfill a countywide transportation mission.

Volume 3 of the TMP was authorized for release to “a panel of financial and public funding experts to review, refine, and adjust the document.” The first two volumes were released to the public earlier this year. [.pdf of draft "Volume 1: A Transit Vision for Washtenaw County"] [.pdf of draft "Volume 2: Transit Master Plan Implementation Strategy"]

Co-chairing the panel will be Albert Berriz, CEO of McKinley Inc., and Bob Guenzel, retired Washtenaw County administrator.

Funding recommendations made by the panel of experts are to be forwarded to the constituted unincorporated Act 196 board (U196) for further consideration and action. The transition of transportation service from the AATA to an authority formed under Act 196 of 1986 is the most likely scenario under which transit funding would be established on a countywide basis.

At its July 19, 2011 meeting, the board authorized the board chair to appoint three of its members to the U196 board and authorized the AATA’s CEO to use AATA resources in support of the U196. Update: The AATA has now made the report available in digital form: [.pdf of Part 1 of the Vol. 3 Funding Report] [.pdf of Part 2 of the Vol. 3 Funding Report]

This brief was filed from the downtown location of the Ann Arbor District Library, where the AATA board holds its meetings. A more detailed report will follow: [link] [Full Story]