Stories indexed with the term ‘Ann Arbor City Council’

Column: What Do We Pay Ann Arbor’s Mayor?

Ann Arbor mayor John Hieftje announced on Oct. 11, 2013 that he would not seek re-election to an eighth two-year term. That prompted Ann Arbor residents to begin speculating about who might seek election to that position in 2014. It’s a position that I think might just as well be called “chief pothole filler.” More on that in a bit.

History of Ann Arbor city councilmember and mayor salaries as determined and accepted/rejected by the Ann Arbor city council.

History of Ann Arbor city councilmember and mayor salaries as determined by a process involving the LOCC and the Ann Arbor city council.

One of the questions surely weighed by any potential candidate for Ann Arbor mayor is purely practical: What does the Ann Arbor mayor get paid? The $42,436 mayoral salary would, for some of us, represent a significant increase in annual income. For others, it would reflect a dramatic pay cut. A councilmember’s salary, at $15,913, is considerably less than the mayor’s.

My point in writing today is not to explore the policy question of mayoral or councilmember salaries. That’s a question ultimately determined by a public body called the local officers compensation commission (LOCC). The seven-member LOCC is supposed to meet every odd-numbered year and make a salary determination for the next two years. That determination takes effect unless rejected by the city council. If it’s rejected, then the salaries remain the same as they were.

A check of the calendar shows that this year is odd-numbered. And it turns out that as far as the LOCC is concerned, it is also an odd year. One odd thing is that the LOCC has not yet convened a meeting, with just about two weeks left in 2013. However, a notice came through from the city clerk’s office this week that a meeting of the LOCC is now scheduled for Dec. 16, 2013 at 2:30 p.m. in the third floor conference room of the Ann Arbor city hall – located at 301 E. Huron St. in downtown Ann Arbor.

The other odd thing is that if you attend that meeting, you will not see a seven-member public body convened around a conference room table deliberating toward a salary determination. Instead you’ll likely see just two commissioners – Eunice Burns and Roger Hewitt. The city’s online Legistar system shows them as the only members of the LOCC who have current appointments. Burns is a former city councilmember and a former member of the Ann Arbor Downtown Development Authority (DDA) board. Hewitt currently serves on the DDA board. The DDA connection is coincidental.

So my point in writing is to reflect on this question: Why does anyone think it’s reasonable, let alone legal, that the seven-member body responsible for determining mayor and council salaries could convene a meeting – with only two members who are appointed and serving?  [Full Story]

DDA Tackles Street Lights, Land Sale Issue

Ann Arbor Downtown Development Authority board meeting (Dec. 4, 2013): At its last regular meeting of the year, the board approved the final funding necessary to replace 81 light poles on Main Street, passed a resolution waiving a claim to reimbursement for the DDA’s costs associated with the former Y lot, and formally accepted its audit report for the fiscal year that ended on June 30, 2013 (FY 2013).

On Dec. 4, 2013, city administrator Steve Powers attended his first DDA board meeting as a member.

On Dec. 4, 2013, city administrator Steve Powers attended his first DDA board meeting as a member. (Photos by the writer.)

The board also considered a resolution added to the agenda on the day of the meeting, related to the contribution-in-lieu (CIL) parking agreement for the 624 Church St. project – but ultimately decided to table that resolution pending further review at the committee level.

The DDA’s Dec. 4 resolution allocating $280,000 for the Main Street light pole replacement ended the political wrangling over who should pay for those downtown Ann Arbor light poles. Replacement of the deteriorating poles was identified by the city as a need in the first half of 2012. The source of an estimated $600,000 required for the project was specified in the city’s CIP (capital improvements plan) that year as coming from the DDA – though the funds were at that time not authorized by the board.

In the spring of 2013, the city council weighed how it might clarify the city’s ordinance that restricts the DDA TIF (tax increment finance) capture. In that context, DDA executive director Susan Pollay told the council that the DDA might not be able to afford to pay for the Main Street light pole project – if the council changed the ordinance language to clarify the calculations in a way that did not favor the DDA. The question of the DDA’s TIF capture was not ultimately settled until the council’s Nov. 18, 2013 meeting.

In the interim, the city council voted at its May 20, 2013 meeting to request that the DDA allocate at least $300,000 for the $580,000 light pole project. After the council then declined at its Oct. 21, 2013 meeting to approve a budget allocation for the remaining $280,000 that was needed for the project, the DDA board passed its Dec. 4 resolution, citing the urgency of replacing at least 36 of the poles as the reason for its decision.

According to the DDA’s resolution, staff will use the DDA funding to begin now with replacement of those poles most in need of being removed, with the remainder replaced in the summer of 2014.

Also at its Dec. 4 meeting – in connection with the city’s pending sale to Dennis Dahlmann of the former Y lot, at William Street and Fifth Avenue – the DDA board passed a resolution that waived claim to $1,439,959 in reimbursements from the sale that the DDA has calculated it might be owed. The city council adopted a policy on Oct. 15, 2012 that included depositing net proceeds (after reimbursements) from the former Y lot sale into the city’s affordable housing trust fund.

So the DDA board’s action is an attempt to increase the amount that will be deposited into the affordable housing trust fund. The resolution passed by the DDA board also calls on the city council to waive the city’s claim to reimbursements. The city purchased the property in 2003 for $3.5 million and has made interest-only payments for the last 10 years on a loan for that amount. The agreed-upon sale price to Dahlmann is $5.25 million.

In another formal action taken on Dec. 4, the DDA board accepted the audit report from the most recently concluded fiscal year – FY 2013, which ended June 30, 2013. The auditor issued an “unmodified” or clean opinion.

The board also considered a request, which was ultimately tabled, from the developer of the 624 Church St. project. The developer is asking for an extension of the contractual agreement under which parking permits could be purchased using the city’s contribution-in-lieu (CIL) program. The program allows a developer to satisfy certain zoning requirements that parking spaces be provided for a project – by purchasing monthly permits in the public parking system at a premium rate, instead of building the spaces on site. The developer of the 624 Church St. project wants the ability to extend the 15-year minimum to cover a 30-year financing period – based on feedback from firms that would be providing the financing. The DDA board ultimately voted to table the question pending further review by the board’s operations committee.

The board’s newest members introduced themselves at the meeting: city administrator Steve Powers and Main Street retailer Cyndi Clark.

Also at its Dec. 4 meeting, the board heard a range of updates on various projects and public commentary. Highlights included a report from the Main Street BIZ (business improvement zone), which has enough money in its fund balance to handle sidewalk snow removal for the coming winter, without collecting the winter tax assessment to which it is entitled. In a separate update, there’s a possibility that downtown ambassadors could be hired by the DDA as soon as the summer of 2014.

Other topics covered in updates included the effort to save the State Theater, the NHL’s Winter Classic on New Year’s Day, and The Puck Drops Here festivities on New Year’s Eve. [Full Story]

Ped Safety Task Force: Deadline Now Dec. 16

The deadline to apply for an appointment to an Ann Arbor pedestrian safety task force has been extended until Dec. 16, 2013. Appointments are now scheduled to take place at the council’s Jan. 6, 2014 meeting. [.pdf of standard city board and commission task force application]

Action to extend the deadline took place at a special meeting of the city council at 4 p.m. on Monday, Dec. 9. The initial purpose of the special meeting was to hold a closed session on written attorney-client privileged communication and land acquisition. The item extending the task force deadline was added later.

The council voted to establish the pedestrian safety task force on Nov. 18, 2013. The pedestrian safety task force would … [Full Story]

Column: Ann Arbor’s Brand of Participation

An Ann Arbor city council budget planning session is scheduled to take place on Monday, Dec. 9, starting sometime around 4 p.m.

CAnn Arbor Brand

Illustration by The Chronicle, based on bar chart in a preliminary draft report of a fall 2013 National Citizens Survey conducted among Ann Arbor residents.

Councilmembers have been asked to prepare for the session by thinking about Ann Arbor’s “brand.” Specifically, they’ve been asked to reflect on what “differentiates Ann Arbor from other communities in Michigan” and what “makes Ann Arbor a truly special community to live, work and play.”

Councilmembers will be asked to spend about five minutes each at the start of the session talking about how they see the Ann Arbor “brand.”

The facilitator for the session is Julia Novak of the Novak Consulting Group. In advance of last year’s session, she asked councilmembers to prepare by formulating thoughts that could be summarized as “What I Believe.

Last year’s homework assignment was, I think, easy compared to this year’s. And I do not envy councilmembers this chore. It sounds hard. I wouldn’t know where to begin. Anytime somebody starts talking about “brands” – especially a brand for a city – my first thought is: “Why, you sound like a charlatan standing there talking to me; why don’t you go off and make something useful, then come back and tell me all about that very useful thing you made instead of blathering on about brands.”

And so, because I am human, and every bit as lazy and ill-tempered as the rest of you, I will not get down to the business of completing the chore … before bitterly lamenting the nature of the chore itself (with all due respect to Julia Novak). I do hereby bitterly lament the branding chore. But I’ll take a shot.

That shot includes quoting a five-year-old interview.

But before delving into the dusty archives, I want to have a look at the preliminary results of a survey that was conducted recently among residents. I think it shows that our self-image as a community valuing public participation is not especially well-founded. So that’s not our brand. Not right now, anyway. [Full Story]

Deja Vu: Special Meeting, Planning Session

The annual budget planning session of the Ann Arbor city council will start sometime after 4 p.m. on Monday, Dec. 9 in the jury assembly room of the Justice Center adjoining city hall. The uncertain actual start time of the planning session is due to a special meeting of the council that has now been called to start at 4 p.m. in city council chambers.

City administrator Steve Powers, Jane Lumm (Ward 2)

City administrator Steve Powers and Jane Lumm (Ward 2) just before the Nov. 18, 2013 council meeting started – a conversation Lumm wrote about after the meeting in an email thread to other councilmembers.

The special meeting will include a closed session – based on written attorney-client privileged communication and land acquisition. The land acquisition likely relates to the pending sale of the Edwards Brothers property on South State Street to the University of Michigan for $12.8 million, which was announced in a Nov. 27 press release. The business had signaled its intent to put the property on the market in late July.

A right of first refusal on the property is held by the city of Ann Arbor as a condition of a tax abatement granted by the city council almost three years ago, on Jan. 18, 2011. Purchase by the university would remove the property from the tax rolls. Washtenaw County records show the taxable value of the property at just over $3 million.

The closed session to be held on Dec. 9 follows some friction among councilmembers about the way information was shared with the council about the sale. That friction resulted from comments overheard by Jane Lumm (Ward 2) just before the council’s Nov. 18 meeting started, which prompted her to email her council colleagues expressing her dissatisfaction that not all councilmembers had been kept in the loop.

The email thread, provided to The Chronicle in response to a Freedom of Information Act request, goes on to include a query by Lumm to UM director of community relations Jim Kosteva for information about the status of the Edwards Brothers property, followed by an admonishment to Lumm from Christopher Taylor (Ward 3) that there were scenarios under which Lumm’s inquiry could potentially be detrimental to the city’s interest. The thread includes a note from Chuck Warpehoski (Ward 5) that indicates concern that the issue should appropriately be discussed in a closed session under the state’s Open Meetings Act, not in an email thread among all councilmembers.

The email thread includes a clarificational inquiry to Taylor from Jack Eaton (Ward 4), as well as a note from Sabra Briere (Ward 1) about news coverage of the Edwards Brothers property sale. Eaton, Briere and Lumm signed the call to the Dec. 9 special meeting, which any three councilmembers can do under the city charter.

After the special meeting and its closed session, the council will move to the jury assembly room at the adjoining Justice Center for its annual budget planning session. That session could include an airing out of the issue of shared information – under an agenda item labeled “Articulating Mutual Expectations.” More specifically, the item indicates that the council will “identify and discuss mutual expectations for governing together” with the following desired outcome: “Articulate and agree on mutual expectations for members of the governing body.”

The background materials that have been provided to the council in preparation for the planning session include draft copies of reports with results from the National Citizens Survey that was conducted in the fall of 2013 by mailing a questionnaire to a random sample of 3,000 city residents, 778 of whom completed surveys. [.pdf of draft Ann Arbor National Citizens Survey report] [.pdf of responses, benchmarks, methodology and questionnaire]

The survey covered a broad range of topics. For example, 55% of survey respondents indicated that they rely at least somewhat for their news and information on online newspapers and media. That compares to 37% who said they rely some for news on printed newspapers. More respondents than that said they rely on news from the city website specifically (44%) or on radio stations (41%).

But questions about public safety – one of the top three priorities identified at last year’s planning session – will likely be of greater interest for councilmembers who will be weighing budget decisions at this year’s session. In general, under the community characteristics portion of the survey, 89% of Ann Arbor survey respondents rated their overall feeling of safety as good or excellent, with ratings for neighborhood safety at 97% and for downtown/commercial area safety at 92%. Those numbers are similar to the set of benchmarked communities that participated in the survey. The council’s measure of success for public safety includes the idea that residents should perceive the community as safe.

For the open-ended response survey item, which asked respondents to identify the city leaders’ top three priorities to maximize the quality of life in Ann Arbor, public safety was one of the top three items, with 19% of the open-ended responses identifying safety, crime and police as a concern. Also cited in 19% of responses were government, taxes and communication. However, the dominant concern in the open-ended responses was mobility issues – as 57% of responses were coded as related to roads, transportation, traffic, traffic enforcement, bikes and pedestrians.

That survey result mirrors the wide participation by the community in the recent debate about the repeal of the city’s crosswalk law. That debate ended in a city council vote on Dec. 2, 2013 to modify significantly the existing ordinance. But mayor John Hieftje announced immediately following the vote that he intended to exercise his power of veto.

The priority placed on the topic by the public and by councilmembers will also be reflected in two anticipated agenda items for the council’s Dec. 16 meeting. Christopher Taylor (Ward 3) is expected to bring forward a resolution directing the city administrator to present a plan for funding elements of the recently adopted update to the city’s non-motorized transportation plan. And Stephen Kunselman (Ward 3) has told The Chronicle he expects to bring forward a resolution on Dec. 16 that would allocate $500,000 from the general fund reserve this year to pay for police overtime to conduct traffic enforcement.

How police officers use their time while on duty is part of a report the council has been provided in preparation for the Dec. 9 budget planning session. Initial results from a newly implemented (Jan. 1, 2013) electronic timesheet logging system appear to indicate that police officers have at least 40% of their time that’s either unassigned or dedicated to proactive policing and community engagement. At last year’s planning session, the council had defined a success statement for public safety that included a goal of 25-30% time available for proactive policing.

The sequence of a special city council meeting followed by the budget planning session was also played out last year in mid-December. That’s when the council convened a special meeting to take a vote protesting the establishment of the southeast Michigan Regional Transit Authority. Like last year, the council’s budget planning session will be led by Julia Novak of the Novak Consulting Group.

Material presented in this article includes an annotated email thread about the Edwards Brothers property sale – which started in the Nov. 19 early morning hours, after the council meeting ended. [Full Story]

City Council Special Meeting: Dec. 9, 2013

A special meeting of the Ann Arbor city council will be held starting at 4 p.m. on Monday, Dec. 9, 2013 in the council chambers at city hall, 301 E. Huron St. The special meeting is being called for the purpose of holding a closed session under Michigan’s Open Meetings Act. In the call for a special meeting, two exceptions to the OMA are cited as the purposes for holding the closed session: discussion of attorney-client privileged communication, and discussion of land acquisition issues.

The land acquisition component of the closed session likely relates to the pending sale of the Edwards Brothers property on South State Street to the University of Michigan for $12.8 million, which was announced in a press release … [Full Story]

A2 Crosswalk Repeal: To Be Vetoed

After  a lengthy public hearing and considerable debate, the city of Ann Arbor crosswalk law was modified on a 6-4 vote by the Ann Arbor city council at its Dec. 2, 2013 meeting. But immediately after the vote, mayor John Hieftje indicated that he would be exercising his power of veto on the change. The veto would leave in place a crosswalk law that requires motorists to stop, not just yield to pedestrians. And it further requires that motorists extend the right-of-way not just to pedestrians within a crosswalk, but also to those waiting at the curb or curb line of a ramp leading to a crosswalk.

The council had given initial approval to a complete repeal of the ordinance at … [Full Story]

New Member of Ann Arbor DDA Board: Steve Powers

As a result of Ann Arbor city council action taken at its Dec. 2, 2013 meeting, city administrator Steve Powers has been appointed to serve for the next year on the board of the Ann Arbor Downtown Development Authority.

The state enabling statute allows for either the mayor or the city administrator to serve on the board of a DDA. Mayor John Hieftje has served that role for his 13-year tenure as mayor.

However, discussion had occurred throughout the council’s recent consideration of the city’s DDA ordinance about the possibility of appointing the city administrator instead of Hieftje to serve in the statutory slot on the DDA board. Hieftje has announced that he’s not seeking re-election as mayor in 2014.

Even though … [Full Story]

$45K On-Street Parking Cost Delayed

Developers who want to remove an on-street parking space in downtown Ann Arbor may need to pay the Ann Arbor Downtown Development Authority $45,000 per space, but not yet. The council postponed approval of the policy at its Dec. 2, 2013 meeting – because of a desire first to hold a public hearing on the matter. The Ann Arbor DDA manages the public parking system under a contract with the city.

In this matter, the council would be acting on a four-year-old recommendation approved by the Ann Arbor DDA in 2009:
Thus it is recommended that when developments lead to the removal of on-street parking meter spaces, a cost of $45,000/parking meter space (with annual CPI increases) be assessed and provided to the … [Full Story]

Ann Arbor OKs UM Parking Ticket Accord

The Ann Arbor city council has approved the renewal of an agreement with the University of Michigan under which the city processes tickets and hears appeals for the parking tickets issued by the university. Action was taken by the council at its Dec. 2, 2013 meeting.

The current agreement expires on Dec. 31, 2013. The new contract would extend through Dec. 31, 2018, with an option for a three-year extension. Terms of the contract include reimbursement by the university to the city for the cost of a parking referee to hear appeals, as well as other administrative costs, which will amount to $20,373 monthly in 2014 and escalate thereafter. The city will also receive $1.92 per University of Michigan ticket issued as … [Full Story]

Running Fit Addition Gets Council OK

The site plan for a three-story addition to the Running Fit store at the northwest corner of Fourth Avenue and Liberty Street in downtown Ann Arbor has received approval from the Ann Arbor city council. Action came at the council’s Dec. 2, 2013 meeting.

Running Fit, Ann Arbor planning commission, The Ann Arbor Chronicle

Aerial view of the Running Fit building, at the northwest corner of East Liberty and South Fourth.

The first floor will be retained as retail space, but six residential units will be built on the upper three floors – … [Full Story]

Traverwood Apts: Initial Zoning OK, Land Donation

A First Martin Corp. project, which would construct a complex of 16 two-story buildings on the west side of Traverwood Drive, north of Plymouth Road, has received initial approval for a required rezoning. The development is called Traverwood Apartments. A donation of 2.2 acres, just north of the project site, by Bill Martin to the city, has also been accepted.

Action came at the city council’s Dec. 2, 2013 meeting. The donated acreage is next to the Stapp Nature Area and the Leslie Park golf course.

[Full Story]

Council OKs Rules, Calendar, Committees

The Ann Arbor city council has completed its internal housekeeping tasks for the upcoming year, having delayed some of them at the first meeting of the newly-seated, post-election council on Nov. 18. At its Dec. 2, 2103 meeting, the council formally adopted its rules, confirmed its committees, and adopting the council rules.

Based on a less than 10-minute meeting of the council’s rules committee on Nov. 29, no changes to the rules were planned to be put forward at this time. The council’s rules committee – established by last year’s council – consisted of Sabra Briere (Ward 1), Stephen Kunselman (Ward 3), Christopher Taylor (Ward 3) and mayor John Hieftje. Marcia Higgins had also served on that committee, but left the … [Full Story]

Dec. 2, 2013 Ann Arbor Council: Live

Editor’s note: This “Live Updates” coverage of the Ann Arbor city council’s Dec. 2, 2013 meeting includes all the material from an earlier preview article. We think that will facilitate easier navigation from live-update material to background material already in the file.

The Ann Arbor city council’s Dec. 2, 2013 agenda is comparatively light, but might not lead to an especially short meeting.

New sign on door to Ann Arbor city council chamber

The sign on the door to the Ann Arbor city council chamber, installed in the summer of 2013, includes Braille.

Items that could result in considerable council discussion include final approval of a repeal of the city’s crosswalk ordinance. A scheduled public hearing on that issue could also draw a number of speakers. The council gave initial approval to the repeal at its Nov. 18, 2013 meeting – on a 9-2 vote.

The tally could be closer for the final vote, as mayor John Hieftje, Sabra Briere (Ward 1) and Chuck Warpehoski (Ward 5) could join Christopher Taylor (Ward 3) and Margie Teall (Ward 4), who had dissented on the initial approval. Also a possibility is that a compromise approach could be worked out. The possible compromise would leave intact the language about motorists stopping, but still limit the right-of-way to just pedestrians within a crosswalk – that is, it would not afford the right-of-way to those standing at the curb.

Some of the public’s perspective and council discussion on the crosswalk issue was aired out during the council’s Sunday caucus, held in council chambers at city hall. This week the caucus was rescheduled for 1 p.m. instead of its usual evening start time, to accommodate more discussion of the local crosswalk law. The caucus drew six councilmembers and a dozen members of the public, and lasted three hours.

Another topic that could extend the Dec. 2 meeting is related to the pending sale of the Edwards Brothers property on South State Street to the University of Michigan for $12.8 million, which was announced in a press release last week. A right of first refusal on the property is held by the city of Ann Arbor as a condition of a tax abatement granted by the city council almost three years ago, on Jan. 18, 2011.

There’s some interest on the council in holding a closed session on Dec. 2 to review the options and the impact of those options. Any interest on the council in acquiring the land, which seems somewhat scant, would be based on a desire eventually to put the land back on the tax rolls. The topic of land acquisition is one of the legal exceptions to the Michigan Open Meetings Act, which requires all deliberations of a public body to be open to the public. If the council holds a closed session on that topic, it could extend the Dec. 2 meeting.

One reason the council may have little appetite for acquiring the Edwards Brothers property is that the city has just now managed to sell a downtown property the city acquired 10 years ago – the old Y lot on William Street, between Fourth and Fifth avenues. Approval of the $5.25 million sale to Dennis Dahlmann came at the council’s Nov. 18 meeting. But it’s possible that not all the due diligence will be completed before Dec. 16, when the city owes the $3.5 million principal it used to purchase the property. As a hedge against that possibility, the council will be asked on Dec. 2 to approve a six-month extension on the installment purchase agreement with Bank of Ann Arbor for the $3.5 million.

In the meantime, the minutes of the Ann Arbor Downtown Development Authority’s most recent operations committee meeting reflect the DDA’s expectation that all of the equipment used to operate the public surface parking facility at the old Y lot will need to be removed by Dec. 31, 2013.

The city’s right of first refusal on the Edwards Brothers property is linked to a tax abatement. And on the council’s Dec. 2 agenda is an item that would establish an industrial development district (IDD) for a different property, at 1901 E. Ellsworth, where Extang Corp. and GSG Fasteners are located. Creating an IDD is a step in the process for granting a tax abatement.

Land control and use is a predominant theme among other Dec. 2 agenda items as well.

The council will be asked to give initial approval to a rezoning request for the Traverwood Apartments project – from ORL (office, research and light industrial district) to R4D (multiple-family district). The First Martin Corp. project would include 16 two-story buildings for a total of 216 one- and two-bedroom units – or 280 total bedrooms. The site plan and final rezoning approval would come before the city council at a future meeting. The Dec. 2 meeting will also include council’s consideration of a donation of 2.2 acres to the city from Bill Martin just north of the Traverwood Apartments project site. The acreage to be donated is next to the city’s Stapp Nature Area and the Leslie Park golf course.

At its Dec. 2 meeting, the council will also be asked to approve the site plan for a three-story addition to the Running Fit store at the northwest corner of Fourth Avenue and Liberty Street in downtown Ann Arbor. The first floor will be retained as retail space, but six residential units would be built on the upper three floors – one two-bedroom and five one-bedroom units.

The city council will also be asked to place a value on land currently used as on-street parking spaces – $45,000 per space. By formally adopting that figure, any future development that causes the removal of on-street parking could be charged that amount. It would be paid to the Ann Arbor DDA, which manages the city’s public parking system. In this matter, the council would be acting on a four-year-old recommendation, approved by the Ann Arbor DDA in 2009.

In non-land issues, the council will be introduced to newly hired firefighters at its Dec. 2 meeting. The budgeted staffing level for the fire department is 85. However, the statistical section from the city’s most recent comprehensive annual financial report (CAFR) shows 82 AAFD staff in fiscal year 2013. That’s because the council approved the hiring of additional firefighters after the fiscal year began, bringing the total to 85.

The CAFR itself is indirectly included in the council’s agenda – as part of a presentation that will be given by chief financial officer Tom Crawford on the result of this year’s audit. It was a clean audit that showed the general fund doing about $2.4 million better than budgeted.

Among the other myriad statistics in the CAFR are the number of parking violations recorded by the city – which are again down in the range of 90,000, as they’ve been for the last three years. That’s about half what they were in 2006 and 2007. Those numbers in the CAFR don’t include University of Michigan parking tickets – although the city and the UM have an agreement under which the city processes tickets and hears appeals for the university. A renewal of that agreement is on the council’s agenda for Dec. 2.

On Dec. 2 the council also has a fair amount of its own internal business to wrap up, associated with the seating of the new council, which took place on Nov. 18. That includes adoption of the council rules. Based on a less than 10-minute meeting of the council’s rules committee on Nov. 29, no changes to the rules would be put forward at this time. Based on that meeting, it appears that Sally Petersen (Ward 2) will replace Stephen Kunselman (Ward 3) on that council committee. The rest of the new council committee assignments are also supposed to be made at the Dec. 2 meeting.

The council’s calendar of regular meetings and work sessions will also be adopted at the Dec. 2 meeting. The basic pattern is first and third Mondays for regular meetings, except when there’s a holiday or an election during the week of the meeting.

This article includes a more detailed look of many of these agenda items. More details on other meeting agenda items are available on the city’s online Legistar system. Readers can also follow the live meeting proceedings Monday evening on Channel 16, streamed online by Community Television Network.

The Chronicle will be filing live updates from city council chambers during the Dec. 2 meeting, published in this article below the preview material. Click here to skip the preview section and go directly to the live updates. The meeting is scheduled to start at 7 p.m. Updates might begin somewhat sooner. [Full Story]

Dec. 2, 2013 Ann Arbor City Council: Preview

The Ann Arbor city council’s Dec. 2, 2013 agenda is comparatively light, but might not lead to an especially short meeting.

Screenshot of Legistar – the city of Ann Arbor online agenda management system. Image links to the next meeting agenda.

Screenshot of Legistar – the city of Ann Arbor’s online agenda management system. Image links to the Dec. 2 meeting agenda.

Items that could result in considerable council discussion include final approval of a repeal of the city’s crosswalk ordinance. A scheduled public hearing on that issue could also draw a number of speakers. The council gave initial approval to the repeal at its Nov. 18, 2013 meeting – on a 9-2 vote.

The tally could be closer for the final vote, as mayor John Hieftje, Sabra Briere (Ward 1) and Chuck Warpehoski (Ward 5) could join Christopher Taylor (Ward 3) and Margie Teall (Ward 4), who had dissented on the initial approval. Also a possibility is that a compromise approach could be worked out. The possible compromise would leave intact the language about motorists stopping, but still limit the right-of-way to just pedestrians within a crosswalk – that is, it would not afford the right-of-way to those standing at the curb.

Some of the public’s perspective and council discussion on the crosswalk issue might be aired out during the council’s Sunday caucus, held in council chambers at city hall. This week the caucus has been rescheduled for 1 p.m. instead of its usual evening start time, in part to accommodate more discussion of the local crosswalk law.

Another topic that could extend the meeting is related to the pending sale of the Edwards Brothers property on South State Street to the University of Michigan for $12.8 million, which was announced in a press release last week. A right of first refusal on the property is held by the city of Ann Arbor as a condition of a tax abatement granted by the city council almost three years ago, on Jan. 18, 2011.

There’s some interest on the council in holding a closed session on Dec. 2 to review the options and the impact of those options. Any interest on the council in acquiring the land, which seems somewhat scant, would be based on a desire eventually to put the land back on the tax rolls. The topic of land acquisition is one of the legal exceptions to the Michigan Open Meetings Act, which requires all deliberations of a public body to be open to the public. If the council holds a closed session on that topic, it could extend the Dec. 2 meeting.

One reason the council may have little appetite for acquiring the Edwards Brothers property is that the city has just now managed to sell a downtown property the city acquired 10 years ago – the old Y lot on William Street, between Fourth and Fifth avenues. Approval of the $5.25 million sale to Dennis Dahlmann came at the council’s Nov. 18 meeting. But it’s possible that not all the due diligence will be completed before Dec. 16, when the city owes the $3.5 million principal it used to purchase the property. As a hedge against that possibility, the council will be asked on Dec. 2 to approve a six-month extension on the installment purchase agreement with Bank of Ann Arbor for the $3.5 million.

In the meantime, the minutes of the Ann Arbor Downtown Development Authority’s most recent operations committee meeting reflect the DDA’s expectation that all of the equipment used to operate the public surface parking facility at the old Y lot will need to be removed by Dec. 31, 2013.

The city’s right of first refusal on the Edwards Brothers property is linked to a tax abatement. And on the council’s Dec. 2 agenda is an item that would establish an industrial development district (IDD) for a different property, at 1901 E. Ellsworth, where Extang Corp. and GSG Fasteners are located. Creating an IDD is a step in the process for granting a tax abatement.

Land control and use is a predominant theme among other Dec. 2 agenda items as well.

The council will be asked to give initial approval to a rezoning request for the Traverwood Apartments project – from ORL (office, research and light industrial district) to R4D (multiple-family district). The First Martin Corp. project would include 16 two-story buildings for a total of 216 one- and two-bedroom units – or 280 total bedrooms. The site plan and final rezoning approval would come before the city council at a future meeting. The Dec. 2 meeting will also include council’s consideration of a donation of 2.2 acres to the city from Bill Martin just north of the Traverwood Apartments project site. The acreage to be donated is next to the city’s Stapp Nature Area and the Leslie Park golf course.

At its Dec. 2 meeting, the council will also be asked to approve the site plan for a three-story addition to the Running Fit store at the corner of Fourth Avenue and Liberty Street in downtown Ann Arbor. The first floor will be retained as retail space, but six residential units would be built on the upper three floors – one two-bedroom and five one-bedroom units.

The city council will also be asked to place a value on land currently used as on-street parking spaces – $45,000 per space. By formally adopting that figure, any future development that causes the removal of on-street parking could be charged that amount. It would be paid to the Ann Arbor DDA, which manages the city’s public parking system. In this matter, the council would be acting on a four-year-old recommendation, approved by the Ann Arbor DDA in 2009.

In non-land issues, the council will be introduced to newly hired firefighters at its Dec. 2 meeting. The budgeted staffing level for the fire department is 85. However, the statistical section from the most recent comprehensive annual financial report (CAFR) for the city shows 82 AAFD staff in fiscal year 2013. That’s because the council approved the hiring of additional firefighters after the fiscal year began, bringing the total to 85.

The CAFR itself is indirectly included in the council’s agenda – as part of a presentation that will be given by chief financial officer Tom Crawford on the result of this year’s audit. It was a clean audit that showed the general fund doing about $2.4 million better than budgeted.

Among the other myriad statistics in the CAFR are the number of parking violations recorded by the city – which are again down in the range of 90,000, as they’ve been for the last three years. That’s about half what they were in 2006 and 2007. Those numbers in the CAFR don’t include University of Michigan parking tickets –  although the city and the UM have an agreement under which the city processes tickets and hears appeals for the university. A renewal of that agreement is on the council’s agenda for Dec. 2.

On Dec. 2 council also has a fair amount of its own internal business to wrap up, associated with the seating of the new council, which took place at the council’s Nov. 18 meeting. That includes adoption of the council rules. Based on a less than 10-minute meeting of the council’s rules committee on Nov. 29, no changes to the rules will be put forward at this time. Based on that meeting, it appears that Sally Petersen (Ward 2) will replace Stephen Kunselman (Ward 3) on that council committee. The rest of the new council committee assignments are also supposed to be made at the Dec. 2 meeting.

The council’s calendar of regular meetings and work sessions will also be adopted at the Dec. 2 meeting. The basic pattern is first and third Mondays for regular meetings, except when there’s a holiday or an election during the week of the meeting.

This article includes a more detailed preview of many of these agenda items. More details on other agenda items are available on the city’s online Legistar system. The meeting proceedings can be followed Monday evening live on Channel 16, streamed online by Community Television Network. [Full Story]

Ypsi Township on Bus, DDA TIF Settled

Ann Arbor city council meeting (Nov. 18, 2013): The first meeting of the post-election council stretched 6 hours and 45 minutes past its scheduled start time of 7 p.m. It was not until after 1 a.m. that the council considered an agreement to sell a city-owned property north of William Street between Fourth and Fifth avenues in downtown Ann Arbor – to hotelier Dennis Dahlmann for $5.25 million. The council deliberated for about 10 minutes on that issue before taking a unanimous vote to sell.

Swearing in of the councilmembers who won election on Nov. 5, 2013. From left to right: Mike Anglin (Ward 5), Jack Eaton (Ward 4), Sabra Briere (Ward 1), Jane Lumm (Ward 2) and Stephen Kunselman (Ward 3). Administering the oath was city clerk Jackie Beaudry.

Swearing in of the councilmembers who won election on Nov. 5, 2013. From left: Mike Anglin (Ward 5), Jack Eaton (Ward 4), Sabra Briere (Ward 1), Jane Lumm (Ward 2) and Stephen Kunselman (Ward 3). Administering the oath was city clerk Jackie Beaudry. (Photos by the writer.)

Earlier in the evening, an hour-long chunk of the meeting was taken up by deliberations on the admission of Ypsilanti Township as a member of the Ann Arbor Area Transportation Authority. After an hour of discussion and questioning, the council voted unanimously to approve the addition of the township as a member of the AAATA. The council’s action brought the number of AAATA member jurisdictions to three: the city of Ann Arbor, the city of Ypsilanti, and Ypsilanti Township.

The council also deliberated for almost an hour before giving initial approval to a repeal of the city’s crosswalk law – so that vehicles would have the option of slowing (in addition to stopping) to yield to pedestrians. The repeal also eliminates the explicit need for motorists to yield to pedestrians who are standing at the curb – making motorists responsible for yielding only to those pedestrians who are “within a crosswalk.” The repeal passed on a 9-2 vote, but will need a second vote at a future meeting to be enacted. Back-channel discussion of some kind of compromise approach has unfolded since the meeting, but it’s not clear what, if any, impact that might have.

On an issue related to the crosswalk ordinance change, 40 minutes was spent on council discussion on a pedestrian safety task force – which had been postponed from its Nov. 7 meeting. Ultimately the council voted to establish a nine-person pedestrian safety task force with a charge of delivering a report with recommendations by February 2015. Applications from interested citizens should be turned in to the mayor’s office by Dec. 2, 2013, with the task force members to be appointed on Dec. 16. [.pdf of standard city board and commission task force application]

The council also spent about a half hour deliberating on final approval to a change to the ordinance that regulates the tax increment finance (TIF) capture of the Ann Arbor Downtown Development Authority. The change replaced the restriction in the ordinance originally enacted in 1982 with one that in the next few years will result in about $2 million in additional TIF revenue annually, compared to the amount the DDA would have received under strict enforcement of the 1982 language. Dissenting on that vote were Christopher Taylor (Ward 3) and Margie Teall (Ward 4).

Near the start of the meeting, Teall was selected as mayor pro tem, on a 6-5 vote. The council left its other organizational business – adoption of rules and assignment to committees – until Dec. 2.

The members of the rules committee will have a fresh assignment based on other action of the council on Nov. 18. The council passed a resolution that in part directs the rules committee to develop a set of standards for the conduct of councilmembers, based on “applicable statutes, regulations, existing city policies, and best practices such as Section and 2a of Public Act 196 of 1973 and the Ethics Handbook for Michigan Municipalities.”

Other business handled by the council included the final approval of a revision to the city’s ordinance on park use fees – to allow for a waiver for groups using a public park for the charitable distribution of goods to address basic human needs. Council chambers were filled with supporters of that resolution.

The council also formally adopted an update to the city’s non-motorized transportation plan, after having postponed the item on Nov. 7. And as a part of its consent agenda, the council approved various street closings associated with New Year’s festivities – The Puck Drops Here in downtown Ann Arbor and the National Hockey League’s Winter Classic at Michigan Stadium. [Full Story]

Local Dems Pull 2014 Council Primary Petitions

According to city clerk records, two sitting Ann Arbor city councilmembers have now pulled petitions to seek re-election in 2014 – Sumi Kailasapathy (Ward 1) and Chuck Warpehoski (Ward 5). They are both Democrats, first elected to the council in 2012.

Ann Arbor city councilmembers serve two-year terms on the 11-member body, which includes the mayor and two representatives from each of five wards.

Kailasapathy responded to a Chronicle query by saying she planned to file signatures by the end of the month. Candidates must submit at least 100 valid signatures to qualify for the ballot. She took out the petitions today (Nov. 21, 2013).

The Chronicle asked Warpehoski if his action to take out petitions on Nov. 7 reflected a deliberate decision … [Full Story]

Ann Arbor DDA TIF: Capped

A change to Ann Arbor’s ordinance (Chapter 7) regulating the Ann Arbor Downtown Development Authority’s tax increment finance capture and its board governance has been given final approval by the city council. The action came at the council’s Nov. 18, 2013 meeting on a 9-2 vote. Dissent came from Christopher Taylor (Ward 3) and Margie Teall (Ward 4).

The version of the Chapter 7 ordinance change given final approval by the council would allow for several million dollars in additional TIF capture by the DDA, compared to a different version that had been tabled. The version in front of the council on Nov. 18 set a cap on DDA TIF revenue that will not apply at all until FY 2017 and … [Full Story]

Former Y Lot: Sold to Dahlmann for $5.25M

The Ann Arbor city council has approved the sale of city-owned property downtown – a parcel north of William Street between Fourth and Fifth avenues – to Dennis Dahlmann for $5.25 million. Council action approving the sale came at its Nov. 18, 2013 meeting at about 1:20 a.m.

Old Y Lot from the northwest corner of William and Fifth Avenue in downtown Ann Arbor. Former Y lot from the northwest corner of William and Fifth Avenue in downtown Ann Arbor, looking northwest. In the background, the new Blake Transit Center is … [Full Story]

Ann Arbor to Get Pedestrian Safety Task Force

A nine-person pedestrian safety task force has been established by the Ann Arbor city council, with a charge of delivering a report with recommendations by February 2015. Action came at the council’s Nov. 18, 2013 meeting with a unanimous vote that occurred after 1 a.m.

The item had been postponed from the council’s Nov. 7 meeting amid concerns about the funding needed to support the task force’s work. Public services area administrator Craig Hupy had described the staff and other support for the task force as costing on the order of $100,000, depending on the level of support and activities required. [.pdf of Nov. 7 memo on pedestrian safety]

At the Nov. 18 meeting, a substitute resolution was put forward by … [Full Story]

Ann Arbor Council OKs Ethics Education

An educational effort for local officials on conflict-of-interest and ethics issues has been given unanimous approval by the Ann Arbor city council. Action on the topic came at the council’s Nov. 18, 2013 meeting.

The resolution directs an educational effort on Public Act 317 of 1968, which is the state’s conflict-of-interest statute.

A final “resolved” clause directs the council’s rules committee to draft standards of conduct for local officials based on Public Act 196 of 1973, which applies to state employees of the executive branch and appointees of the governor. The final resolved clause – if the council adopts a standard that’s recommended by the council rules committee and it’s strictly followed – would end any unauthorized leaks of information … [Full Story]

Ann Arbor OKs Update to Non-Motorized Plan

An update to the city of Ann Arbor’s non-motorized transportation plan has been adopted by the city council in action taken at its Nov. 18, 2013 meeting. The vote was unanimous.

Map identifying geographic areas for improvements for pedestrians and bicyclists, as noted in the 2013 non-motorized transportation plan update. Map identifying geographic areas for improvements for pedestrians and bicyclists, as noted in the 2013 non-motorized transportation plan … [Full Story]

Crosswalk Ordinance Repeal Gets Initial OK

A repeal of the city’s crosswalk ordinance has been given initial approval by the Ann Arbor city council. Action came at the council’s Nov. 18, 2013 meeting on an 8-3 vote. Dissenting were Christopher Taylor (Ward 3), Margie Teall (Ward 4) and mayor John Hieftje. The council will need to vote at a subsequent meeting to give the change final approval.

The city’s ordinance, enacted in 2010 and then revised in 2011, differs from the state’s Uniform Traffic Code (UTC) in two respects: (1) requiring motorists to stop for pedestrians, not just to slow as to yield; and (2) requiring motorists explicitly to take action to accommodate pedestrians standing at the curb at a crosswalk, not just those pedestrians who have … [Full Story]

Ypsilanti Township in AAATA on 11-0 Vote

Ypsilanti Township is now a member of Ann Arbor Area Transportation Authority, as a result of Ann Arbor city council action taken on Nov. 18, 2013. The change to the articles of incorporation of the AAATA increases the board membership from 9 to 10 members so that the township can appoint a member. The council had postponed the decision at its Oct. 21, 2013 meeting.

Ypsilanti Township is now a member of the Ann Arbor Transportation Authority, pending consideration by the Ann Arbor and Ypsilanti city councils. Ypsilanti Township is now a member of … [Full Story]

Ann Arbor OKs Possible Park Use Fee Waiver

Charitable distribution of goods for basic human needs can now be conducted in Ann Arbor city parks without incurring a fee for park use. The proposal is not restricted to downtown parks, but the idea originated from an issue that emerged in connection with Liberty Plaza, a downtown park.

Final approval for the ordinance change to allow this fee waiver came during the Ann Arbor city council’s Nov. 18, 2013 meeting. The council had given initial approval to the ordinance change on Nov. 7. The final vote followed a public hearing on the issue that drew about a dozen people speaking in support of the waiver, including several associated with Camp Take Notice. Several dozen others attended the meeting to … [Full Story]

Ann Arbor Mayor Pro Tem: Margie Teall

Margie Teall (Ward 4) was selected mayor pro tem by the majority of her Ann Arbor city council colleagues at their Nov. 18, 2013 meeting. That was the first meeting of the council with its post-election composition, when it’s required to select a mayor pro tem and an order of succession.

The order of succession to mayor John Hieftje, after Teall, is first by seniority, then alphabetically: Mike Anglin (Ward 5), Sabra Briere (Ward 1), Christopher Taylor (Ward 3), Stephen Kunselman (Ward 3), Jane Lumm (Ward 2), Sally (Hart) Petersen (Ward 2), Sumi Kailasapathy (Ward 1), Chuck Warpehoski (Ward 5) and Jack Eaton (Ward 4).

Teall’s selection as mayor pro tem came over dissent from Kailasapathy, Lumm, Kunselman, Eaton and Anglin. Those … [Full Story]

Ann Arbor Preps for New Year’s Hockey

Two events scheduled for New Year’s have received approval for their associated street closings from the Ann Arbor city council: The Puck Drops Here and the National Hockey League’s Winter Classic Game. Council action came at its Nov. 18, 2013 meeting.

In connection with the NHL Winter Classic Game to be played on New Year’s Day, the Ann Arbor Area Convention and Visitors Bureau is hosting a New Year’s Eve event called The Puck Drops Here, which will mimic the dropping of the lighted ball in Times Square, but with a 6-foot diameter lighted “puck” that is being fabricated by METAL.

[Full Story]

Nov. 18, 2013 Ann Arbor Council: Live

Editor’s note: This “Live Updates” coverage of the Ann Arbor city council’s Nov. 18, 2013 meeting includes all the material from an earlier preview article. We think that will facilitate easier navigation from live-update material to background material already in the file.

The Nov. 18, 2013 meeting of the Ann Arbor city council is the first one with the new post-election composition of the 11-member council. The one new member of the council is Jack Eaton (Ward 4), who prevailed in the August Democratic primary contested with Marcia Higgins. She concluded 14 years of council service at her final meeting on Nov. 7.

New sign on door to Ann Arbor city council chamber

The sign on the door to the Ann Arbor city council chamber, installed in the summer of 2013, includes Braille.

The Nov. 18 meeting will include ceremonial swearing in of all councilmembers who won election on Nov. 5 – including Eaton, Sabra Briere (Ward 1), Jane Lumm (Ward 2), Stephen Kunselman (Ward 3) and Mike Anglin (Ward 5).

Three other items internal to the council organizational configuration appear on the agenda: approval of the 2014 city council rules; appointment of the 2014 city council committees; and election of mayor pro tem, as well as establishing the order of succession for acting mayor.

In recent years, the rules and the committee appointments have been put off until the first meeting in December, with only the election of mayor pro tem taking place at the second meeting in November. Higgins had served as mayor pro tem since 2008.

Speculation among some council sources indicate that Lumm could have sufficient support on the council to win election as mayor pro tem. Mayor pro tem fulfills the duties of mayor when the mayor is out of town or unable to perform those duties. The mayor pro tem’s salary is the same as other councilmembers, which is $15,913. Customarily, the order of mayoral succession has followed seniority on the council, with councilmembers who were elected in the same year sorted alphabetically.

A substantial portion of the council’s Nov. 18 agenda consists of items the council has seen at least once before – some through postponement and others by the nature of the standard approval process. In the standard-process category, the council will be asked to confirm a handful of appointments to boards and commissions that were nominated on Nov. 7.

The council will also consider giving final approval to two ordinance revisions that received initial approval at the council’s Nov. 7 meeting. One of those ordinance revisions involves changing the permitting requirements for use of public parks – so that fees would be waived for organizations that use parks to distribute goods to meet basic human needs.

A second ordinance revision that will be up for final approval on Nov. 18 is a change to the ordinance regulating the Ann Arbor Downtown Development Authority’s tax increment finance capture and board governance.

Although it’s not yet on the online agenda, the council would expect to see a sales agreement for the former Y lot presented for consideration. The council had directed the city administrator to negotiate with Dennis Dahlmann for the sale of the land, based on his $5.25 million offer, and to present a sales agreement for approval on Nov. 18. [See 4:17 p.m. update below]

Several items on the Nov. 18 agenda were postponed from previous meetings. One of those was first seen on Nov. 7 – a resolution sponsored by Sally Petersen (Ward 2), which would direct an educational effort for local officials and the public on conflict of interest and ethics issues.

Several other items postponed from previous meetings are tied together by a transportation theme. The city council will be considering for a second time a revision to the articles of incorporation of the Ann Arbor Area Transportation Authority to admit Ypsilanti Township as a member and to increase the board membership from 9 to 10 members so that the township can appoint a member.

Postponed at the Nov. 7 meeting was the adoption of an update to the city’s non-motorized transportation plan, so the council will have a second look at that plan on Nov. 18.

Also postponed at the Nov. 7 meeting was a resolution to establish a pedestrian safety task force. It’s unclear if that task force will have sufficient traction to be appointed – because it was postponed amid concerns about the budget needed to support the task force’s work. The task force sponsors, Chuck Warpehoski (Ward 5) and Sabra Briere (Ward 1), have indicated their intent is not to make the task force an alternative to repealing the city’s mid-block crosswalk ordinance. [See 3:45 p.m. update below]

The repeal of language in the crosswalk ordinance will get its first reading at the council’s Nov. 18  meeting. The ordinance could be altered so that slowing (not necessarily stopping) would be a legal way to yield to pedestrians within crosswalks. The ordinance would be further changed so that only pedestrians within crosswalks (not those standing at the curb) would need to be accommodated by motorists.

Also related to streets are two resolutions authorizing the closing of streets in connection with New Year’s celebrations – on New Year’s Eve for the Puck Drops Here in downtown Ann Arbor, and on New Year’s Day for the NHL’s Winter Classic hockey game at Michigan Stadium.

The agenda features a few separate resolutions on standard easements and some rezoning requests. One of those rezoning requests is not standard – and was recommended by the planning commission for denial. That’s a request for rezoning a parcel on Packard Road from single-family to two-family.

The council will also be asked to authorize the city’s participation in the Michigan Economic Development Corporation’s Redevelopment Ready Communities Certification Program.

This article includes a more detailed preview of many of these agenda items. More details on other meeting agenda items are available on the city’s online Legistar system. Readers can also follow the live meeting proceedings Monday evening on Channel 16, streamed online by Community Television Network.

The Chronicle will be filing live updates from city council chambers during the meeting, published in this article below the preview material. Click here to skip the preview section and go directly to the live updates. The meeting is scheduled to start at 7 p.m. [Full Story]

Council Agenda: Transportation Governance

On the Ann Arbor city council’s Nov. 18, 2013 agenda is an item that first appeared on Oct. 21 – approval of a change to the governance of the Ann Arbor Area Transportation Authority. How would the AAATA’s governance change? And why did the Ann Arbor city council delay its vote?

Ypsilanti Township is now a member of the Ann Arbor Transportation Authority, pending consideration by the Ann Arbor and Ypsilanti city councils.

Ypsilanti Township would become a member of the AAATA, if the Ann Arbor city council approves a change to the AAATA’s articles of incorporation at its Nov. 18, 2013 meeting.

The governance change would grant a request from Ypsilanti Township to be admitted as a member of the authority, joining the cities of Ann Arbor and Ypsilanti. The city of Ypsilanti requested membership in the AAATA just this summer, and that request was granted.

Some of the recent community conversation about the topic has included the idea that the governance changes were long overdue. That’s based on the fact that some transportation service to the two Ypsilanti jurisdictions – the city and the township – has been provided by the AAATA through year-to-year purchase of service agreements (POSAs) since at least the early 1980s.

As a result of action earlier this summer, the AAATA board has already expanded from seven to nine members, with one of the additional seats appointed by the city of Ypsilanti. The now-pending governance change, to add Ypsilanti Township as a member, would bring the total number of board seats to 10. [Amendment 3 of the AAATA articles of incorporation]

But the Ypsilanti jurisdictions asked for membership in the AAATA not just because they wanted a seat at the table. They also want to use that membership to help generate additional revenue in the AAATA geographic area – to pay for additional transportation services in all three jurisdictions. Those additional services are described in a five-year service improvement plan the AAATA has developed. The additional services – which include extended hours of operation, greater frequency, and some newly configured routes – were the topic of a series of 13 public meetings that were scheduled from Oct. 17 through Nov. 14.

For the city of Ann Arbor, the five-year plan would mean 33% more service, according to the AAATA. It’s the additional services, and the revenue needed to pay for them, that gave some Ann Arbor city councilmembers pause on Oct. 21, 2013, when the item first appeared on the agenda.

This article reviews some additional context, including the taxing powers of the AAATA, the issue of equity among jurisdictions, the AAATA’s performance as a transit authority, and a couple of vignettes from the series of public meetings held over the last month by the AAATA. [Full Story]

Ann Arbor FY 2013 Audit: Clean Report

An Oct. 24, 2013 meeting of the Ann Arbor city council’s audit committee featured just one item – a review of the draft audit report prepared by auditor Mark Kettner of Rehmann Robson, working with city staff. And overall the report on the fiscal year concluding on June 30, 2013 provided $2.4 million of good news for the city’s general fund.

Oct. 24, 2013 Ann Arbor city council audit committee meeting. From left: auditor Mark Kettner, Margie Teall (Ward 4), city chief financial officer Tom Crawford, Sumi Kailasapathy, Sally Petersen (Ward 2) and Stephen Kunselman (Ward 3). Arriving after this photo was taken was Chuck Warpehoski (Ward 5).

Oct. 24, 2013 Ann Arbor city council audit committee meeting. From left: auditor Mark Kettner (Rehmann Robson), Margie Teall (Ward 4), city chief financial officer Tom Crawford, Sumi Kailasapathy (Ward 1), Sally Petersen (Ward 2) and Stephen Kunselman (Ward 3). Arriving after this photo was taken was Chuck Warpehoski (Ward 5).

Highlights from that draft FY 2013 report, which has now been issued in final form to the city, include an increase to the general fund balance from about $15.4 million to about $16.2 million. The $800,000 increase contrasts to the planned use of roughly $1.6 million from the general fund balance in the FY 2013 budget. About $200,000 of the increase was in the “unassigned” fund balance. The rest of it fell into restricted categories, CFO Tom Crawford explained at the meeting.

The result of the audit, in the new GASB terminology, was an “unmodified” opinion – which corresponds to the older “unqualified” opinion. In sum, that means it was a “clean” audit. The concerns identified last year had been addressed to the auditor’s satisfaction.

Members of the audit committee were enthusiastic about the $2.4 million better-than-budget performance for the city’s general fund, which had expenditures budgeted for $74,548,522 in FY 2013.

However, Crawford cautioned that he is “not crazy about the versus-budget comparison” because actual expenses will generally be less than budget anyway. He also pointed out during the meeting that just $1.3 million of the $2.4 million better performance are recurring items – things that he would expect to continue going forward.

While the year-end audit provided some good news, Crawford said he recommended that the city try to have about $1 million to $1.5 million of “good news” each year, because the city needs fund balance to pay for non-recurring items.

Crawford and Rehmann auditor Mark Kettner walked the committee through some of the highlights that still, on balance, had led to the good news. Revenue for services was almost $400,000 less than budgeted, due in part to lower-than-budgeted fire inspection fee revenue. Fines and forfeitures – including parking tickets – were $300,000 less than budgeted. And investment income was off by $400,000. But state shared revenue came in at $500,000 better than budgeted. [These figures come from page 36 of the final audit report.]

“The general fund had pretty much a year like you’d hope it would,” Crawford said. The year ended with an unassigned fund balance of roughly $14 million, or about 18% of expenditures – and 18-20% of expenditures is where the fund balance should be, he said. “So we’re really in a good spot.”

Challenges facing the city this coming year include the implementation of the new GASB 68 accounting standard starting in FY 2015, which begins July 1, 2014. That standard requires that most changes to the net pension liability will be included immediately on the balance sheet – instead of being amortized over a long time period. The GASB 68 standard must be implemented for an organization’s financial statements for fiscal years beginning after June 15, 2014.

Crawford prepped the committee to see a probable drop in the pension plans funded ratio – from about 82% to 80% – because of the five-year window used to book losses. The last of the losses in 2008-09 will be on the books this year, but after that the city would expect to see improvement every year, Crawford said. This most recent year, the pension fund had an 11% return, which is four points better than the 7% return the fund assumes for planning purposes.

Two of the city’s funds were highlighted by Crawford at the Oct. 24 meeting as having potential difficulties associated with the GASB 68 standard – solid waste and the public market (farmers market). For the public market fund, Crawford floated the idea to the audit committee that it could be folded back into the city’s general fund, on analogy with the golf fund. Starting this year (FY 2014) the golf fund has been returned to general fund accounting.

The consensus on the audit committee was that the full city council should receive a brief presentation on the audit report – either at an upcoming working session or a regular meeting. [.pdf of final audit report released on Nov. 15, 2013]

Prior to new committee assignments to be made by the post-election composition of the city council, the audit committee consists of: Margie Teall (Ward 4), Sumi Kailasapathy (Ward 1), Sally Petersen (Ward 2), Stephen Kunselman (Ward 3), and Chuck Warpehoski (Ward 5).

This report includes additional description of the Oct. 24, 2013 city council audit committee meeting. [Full Story]