The extension – which would still need approval from the Michigan Economic Development Corporation – depends on establishing a relationship between the Ann Arbor-Ypsilanti SmartZone and some other “satellite” LDFA. So the Sept. 2 resolution designates Adrian/Tecumseh as that satellite and approves an agreement with Adrian/Tecumseh.

The council’s vote was 7-4 over dissent from Sumi Kailasapathy (Ward 1), Stephen Kunselman (Ward 3), Jack Eaton (Ward 4) and Mike Anglin (Ward 5). It followed a discussion that lasted over an hour, with questions from councilmembers fielded by city CFO Tom Crawford and LDFA board members Eric Jacobsen and Stephen Rapundalo, a former city councilmember.

The Ann Arbor-Ypsilanti LDFA – branded as one of about a dozen LDFA SmartZones statewide – is funded through capture of public school operating millages within the geographic areas of the Ann Arbor and Ypsilanti downtown development authority districts. However, no capture is made of the Ypsilanti school taxes.

The LDFA contracts with Ann Arbor SPARK to operate a business accelerator, which is meant to move start-up companies in the tech and biosciences sectors more quickly to a stage in their development when they are generating revenue from paying customers and adding jobs.

The city contracts separately with Ann Arbor SPARK for general business attraction and retention services. Also at its Sept. 2 meeting, the council voted to take SPARK’s $75,000 annual contract up off the table and consider it again, having tabled it three months ago. That contract won approval from the council.

The council’s Sept. 2 resolution on the LDFA extension specified the following as findings:

1. That the selection of the Adrian/Tecumseh LDFA as a satellite provides unique characteristics and specialties through its public and private resources including the location of Adrian College, Siena Heights University and Jackson College within its TIF District and the opportunities for research partnerships and student/young entrepreneur involvement. In addition partnership with another multi-jurisdictional LDFA provides opportunities for shared experiences.
2. That the selection of the Adrian/Tecumseh LDFA as a satellite provides regional cooperation and collaboration benefits to the LDFA and the Cities of Ann Arbor and Ypsilanti with joint focuses on technology (including expanding green technologies and agricultural technology) and entrepreneurial services.
3. That the selection of the Adrian/Tecumseh LDFA as a satellite provides value and support to the LDFA by strengthening existing collaboratives, making available a new/expanded technical assistance and support through its Innovation Center at Adrian College, and agricultural and manufacturing resources.

In connection with the extension, revisions to the Ann Arbor-Ypsilanti SmartZone TIF (tax increment financing) plan and development plan are being undertaken. Drafts of revisions are attached to the council’s Sept. 2 agenda item. Revisions appear to address concerns that have been raised about the current arrangement – to some extent by Ann Arbor city councilmembers.

Those concerns include the fact that TIF is not currently allowed to be spent outside the TIF district in the city of Ann Arbor; further, no TIF funds can currently be expended in Ypsilanti – inside or outside its TIF district – because no actual tax capture revenue is generated for the LDFA in that area. The revisions would allow TIF revenue to be expended anywhere in the entire cities of Ann Arbor or Ypsilanti.

In addition, the revisions specify in greater detail that TIF revenue can be used to pay for high-speed communications infrastructure. Specifically mentioned as eligible expenditures is the “installation of technology related infrastructure assets, i.e. fiber lines, nodes, or work spaces.”

The LDFA extension comes in the context of lingering questions about the impact on school funding of the LDFA tax capture. In FY 2013, the total amount captured by the Ann Arbor SmartZone LDFA was $1,546,577, and the current fiscal year forecast is for $2,017,835. About the same amount is forecast for FY 2015. The majority of councilmembers were convinced that the mechanism by which the state of Michigan funds public education means that the LDFA tax capture has no negative impact on  local schools funding.

Separate from the LDFA business acceleration contract with Ann Arbor SPARK, the city of Ann Arbor has historically engaged SPARK for business attraction and retention services. However, this year the $75,000 annual contract with SPARK was tabled by the council – in a vote taken at the council’s June 16, 2014 meeting.

It was taken back up off the table for consideration at the Sept. 2, 2014 meeting and approved on a 9-2 vote over dissent from Sumi Kailasapathy (Ward 1), Jack Eaton (Ward 4) and Mike Anglin (Ward 5)

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

Update: The board failed to reach a quorum, but received reports. The update on the jobs audit is that the audit firm Abraham & Gaffney will be planning to audit jobs figures in the Ann Arbor SPARK Salesforce database. The board also received an update on the formation of LDFA satellites in Adrian and Brighton. One of those satellites will be selected as a partner for the Ann Arbor/Ypsilanti SmartZone as it seeks a 15-year extension past its current 2018 end date. A city council work session on the topic of the LDFA expansion is currently planned for Sept. 8. A vote is is planned by the council in October. 

On the agenda is a year-end report from Ann Arbor SPARK, the LDFA’s vendor for entrepreneurial support services. The fiscal year ended June 30, 2014. Also on the agenda is an update on the effort to extend the term of the LDFA past its current end date in 2018.

The LDFA’s last meeting, on June 17, 2014, included discussion of the LDFA’s capture of the local school operating millage and whether those captured taxes are reimbursed to the state’s School Aid Fund. After that meeting, The Chronicle reported that communications staff at the state treasury and the Michigan Economic Development Corporation had confirmed that under the LDFA statute, that reimbursement is not required for the Ann Arbor/Ypsilanti SmartZone.

Listen live to the audio broadcast using the embedded live stream player below. The two text boxes are identical in content. They are used to provide notes to the listener during the live broadcast. The first box forces the view to the bottom of the file. The second one can be manually scrolled.

[.mp3 of July 15, 2014 LDFA board meeting]

The abbreviated discussion was the result of the fact that a motion to table – as contrasted to a motion to postpone to a date certain – is not debatable. So once the motion was made, the council immediately voted. The motion to table was made by Eaton, who said it could be taken up off the table at a future meeting when SPARK’s job retention, attraction and creation numbers could be reconciled.

Paul Krutko, CEO of Ann Arbor SPARK, stayed at the meeting until the rest of the council’s business was finished, which was around midnight. He was then invited to the podium to answer questions, and the ensuing debated by councilmembers lasted about 30 minutes. They did not reconsider their earlier vote to table the funding, however.

At its May 19, 2014 meeting, the council spent roughly five hours of deliberations on amendments to the FY 2015 budget, and just under 30% of that time was spent on two amendments involving SPARK – neither of which were approved by the council.

Ann Arbor city council budget deliberations FY 2015: 4 hours 45 minutes by amendment topic.

SPARK is also the entity with which the local development finance authority (LDFA) contracts for business accelerator services. One of the proposed amendments to the FY 2015 budget would have decreased the amount of funding to SPARK from the LDFA, resulting in an increase to the amount the LDFA would have reserved for future infrastructure projects. The second budget amendment debated on May 19 would have eliminated $75,000 in the FY 2015 budget for the contract that the council was asked to approve on June 16.

Ann Arbor SPARK also receives money from other governmental units in Washtenaw County. In 2013, the $75,000 paid by the city of Ann Arbor to SPARK accounted for more than half of the $132,888 total contributed by all governmental units besides Washtenaw County. The county levies a tax under Act 88, and out of that levy, last year the county contributed $200,000, according to the information provided to the city by SPARK. [.pdf of 2013 "return on investment" from Ann Arbor SPARK] [.pdf of 2013 Ann Arbor SPARK projects] [Ann Arbor SPARK 2013 annual report] [21st Century Jobs Trust Fund 2013 Annual Report]

During public commentary on June 16, three people spoke about the SPARK contract. Kai Petainen read a statement about apparent discrepancies in two reports that provide jobs figures. [Petainen public comment] [Ann Arbor SPARK 2013 annual report] and [21st Century Jobs Trust Fund 2013 Annual Report] Jeff Hayner said that SPARK has misrepresented its results, and he suggested revising the resolution to reduce the $75,000 to just 10% of that figure. And Dave DeVarti, a former councilmember, asked the council to deny or table the funding. He pointed out that $75,000 could go a long way for a human services agency. He asked that the council hold Ann Arbor SPARK to the same kind of standards as it does the human services agencies it has contracts with.

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

The city council’s last meeting of the 2014 fiscal year, on June 16, 2014, features an agenda packed with items related to the city’s physical infrastructure like bridges (including art), the sanitary sewer system and the stormwater system, as well as several resolutions related to construction of new sidewalks.

The sign on the door to the Ann Arbor city council chamber includes Braille.

Related to new sidewalk construction is a resolution that would authorize a $75,000 contract with the Greenway Collaborative, to support the work of a pedestrian safety and access task force established by the city council in late 2013. Part of the task force’s responsibility is to create a tool for setting priorities for funding and filling sidewalk gaps in the city.

The $75,000 cost for the pedestrian safety task force consultant is the same amount the council will be asked to allocate to support the work of Ann Arbor SPARK, a local economic development agency. The contract with SPARK is renewed annually, as is another contract on the June 16 agenda – for lobbying services from Governmental Consultant Services Inc. The GCSI contract is for $48,000.

Also on the council’s June 16 agenda are three items with a connection to the Ann Arbor Downtown Development Authority. One is the approval of an end-of-year budget adjustment that was already approved at the DDA board’s June 4, 2014 meeting. Another is approval of a $37,500 expenditure from the city’s affordable housing trust fund to help pay for an affordable housing needs assessment. At its June 4 meeting, the DDA board authorized a $37,500 grant for the same study.

In the final item with a DDA connection, the council will be asked to authorize $69,555 for the conversion of 223 mercury-vapor cobrahead streetlights to LED technology. This project would convert streetlights that are all outside the DDA district. The project is on the city council’s agenda because the DDA board recently declined to fund a similar LED conversion project – for streetlights inside the DDA tax capture district.

Several other June 16 agenda items relate to the downtown area, even if they don’t have an explicit DDA connection. Two of them involve changes to downtown zoning ordinances that have been recommended by the planning commission. The zoning question to be given initial consideration by the council is whether to downzone the southeast corner of William and Main streets from D1 to D2, but with a 100-foot height limit.

Other downtown items on the council’s June 16 agenda include site plan approvals for First Martin’s hotel project at Ashley and Huron, and the Bank of Ann Arbor expansion at Fifth Avenue and Washington Street.

A resolution to improve Liberty Plaza, a downtown park at the southwest corner of Division and Liberty streets, also appears on the agenda – sponsored by mayor John Hieftje and Christopher Taylor (Ward 3). Added as sponsors since its initial appearance on the agenda are Sabra Briere (Ward 1) and Margie Teall (Ward 4).

The council will be asked to approve four items related to supportive services for the criminal justice system: (1) a $76,242 contract with Washtenaw County Community Support & Treatment Services for mental health treatment services for the 15th District Court’s sobriety and mental health courts; (2) a $44,200 contract with the Washtenaw County sheriff’s office to provide drug abuse screening and monitoring services for the mental health court; (3) a $108,174 contract with Dawn Farm for drug abuse counseling and rehabilitative services; and (4) a $40,000 contract with Reiser and Frushour PLLC to provide legal representation as court-appointed counsel to indigent defendants.

Recycling is the final topic with multiple items on the June 16 agenda. The council will be asked to approve funds for a $95,694 contract with Recycle Ann Arbor to create a multi-family recycling incentive pilot program. The council will also be asked to approve $39,480 to reimburse the city’s operator of its materials recovery facility for repair of a conveyor that feeds the baler. And finally, the council will be asked to approve $35,000 for Recycle Ann Arbor to provide solid waste services associated with student move-out activity.

The June 16 council meeting will also feature the annual historic district commission awards and the introduction of one of the Ann Arbor police department’s K-9 units, who won highest honors at a recent national certification trials event. 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 starting at 7 p.m.

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.

Physical Infrastructure

The council’s June 16 agenda is heavy with items related to the city’s physical infrastructure.

Physical Infrastructure: Fuller Road Bridges

The council will be asked to approve a $187,184 contract with Northwest Consultants Inc. for the Fuller Road, Maiden Lane, and East Medical Center Drive bridges rehabilitation project. According to the staff memo accompanying the resolution, the project includes “re-painting of each bridge, repairing corroded structural steel, bridge abutment and pier (substructure) repairs, expansion joint removal and replacement, bridge deck patching, placing an overlay on the existing bridge decks, bridge railing repairs, guard rail upgrades, brush trimming and removal around the perimeter of the bridge structures, and other related work.”

Money for the design work is available in the approved FY 2014 public services area street millage capital budget. The state of Michigan’s local bridge program pays for 95% of eligible construction expenses up to $790,000. The project will also receive $1,373,440 in federal surface transportation funding, administered through the Michigan Dept. of Transportation. The federal program pays for 81.85% of eligible construction expenses. But neither the state nor the federal sources will pay for the design work that the council’s action will fund.

Physical Infrastructure: Stadium Bridges Art

The council will be asked to approve a contract with Widgery Studio LLC to fabricate and install public art at the East Stadium Boulevard bridges. The city had already contracted with Widgery on May 20, 2014 for $8,248 to finalize the structural design of the artwork with an engineer.

This amendment to the contract on the June 16 council agenda adds art fabrication and installation services to the existing agreement, bringing the total compensation to $353,552 for all services. This was one of the projects for which the city council left funding in place, when it voted on March 3, 2014 to transfer most of the unspent money from the now defunct Percent for Art funding program back to the funds from which the money was originally drawn.

By way of additional background, in early August of 2013, Catherine Widgery of Cambridge, Mass. was recommended as the artist for this public art project. She was picked by a selection panel from four finalists who had submitted proposals for the project, which has a $400,000 total budget. [.pdf of Widgery's original proposal] The selection panel provided feedback to Widgery and asked that she revise her proposal before it was presented to the Ann Arbor public art commission and then later to the city council for approval.

Members of the panel were Wiltrud Simbuerger, Bob Miller, Nancy Leff, David Huntoon and Joss Kiely. [.pdf of panel feedback] The public art commission recommended the project’s approval at its April 23, 2014 meeting.

An image by artist Catherine Widgery for artwork on the East Stadium bridge. This night view shows how the structures would be lit from below, illuminating the images of trees that are etched into louvered glass panels.

An image of proposed artwork by Catherine Widgery along East Stadium bridge.

An image of proposed artwork by Catherine Widgery along the north side of East Stadium bridge.

An image of proposed artwork by Catherine Widgery along East Stadium bridge.

An image of proposed artwork by Catherine Widgery below East Stadium bridge, along South State Street.

An image of proposed artwork by Catherine Widgery below East Stadium bridge, along South State Street.

A detail of the louvers designed by Catherine Widgery. The etched glass panels will be attached to a metal frame.

Physical Infrastructure: Sewer Lining

The council will be asked to approve the award of a $1,566,121 construction contract with Lanzo Lining Services for the 2014 sewer lining project. According to the staff memo accompanying this item, the project includes the lining of about 18,028 lineal feet of sanitary sewer and 2,942 lineal feet of storm sewer at 16 locations throughout the city. The memo describes sewer lining as a “trenchless technology which enables the pipe to be repaired without disturbing the surface above.”

Physical Infrastructure: Manholes

As part of its consent agenda, the council will be asked to award a $47,193 contract to Fonson Inc. for the Eighth Street sanitary sewer manhole replacement project. The manholes in question are described in the staff memo accompanying the project as “101 years old, composed of brick and … disintegrating.”

The deterioration of the manholes is attributed to corrosion from sewer gases, vibration from traffic, decades of freeze/thaw cycles and variations in hydrostatic soil pressures. The deteriorated condition includes spalling, weakened mortar, missing bricks and excessive groundwater infiltration, according to the memo.

Physical Infrastructure: Water Main

The council will be asked to award a $1,324,357 construction contract to Douglas N. Higgins Inc. for the Arbor Oaks Phase II water main replacement project. This project will replace the older water mains in the Bryant neighborhood. The water mains in the neighborhood are described in a staff memo as experiencing frequent breaks and in generally poor condition.

The project will install 1,100 feet of 12-inch water main and 2,360 feet of 8-inch water main along Santa Rosa Drive, Jay Lee Court, Lucerne Court, Burlingame Court, Blain Court, Hardyke Court, and Bryant Elementary School property. Included in the project is the resurfacing of the street, replacement of some curb and gutter, and reconstruction of some storm sewer structures.

Physical Infrastructure: Fire Station Restrooms

The council will be asked to approve a $149,500 contract with Emergency Restoration Company for the renovation of restrooms and locker rooms in Fire Stations #3 and #4. The staff memo accompanying the item indicates that the project will renovate the existing restroom facilities to create two unisex restrooms and showers at each station. Facilities and ventilation in the locker room and restroom areas will be improved.

Fire Station #3 is located on the city’s west side, on Jackson Road. Fire Station #4 is located on the city’s southeast side, on Huron Parkway. [Google Map of all five fire station locations]

Physical Infrastructure: Stormwater

The council will be asked to authorize transfer up to $157,264 in funds from the park maintenance and capital improvements millage fund to the stormwater fund – to authorize state revolving fund (SRF) debt payment and loan forgiveness for the stormwater and rain garden components of the skatepark project, located at Veterans Memorial Park.

According to the staff memo accompanying the resolution, a state revolving fund loan is being used to fund the rain garden installation at the skatepark and to reimburse the city’s stormwater fund. Additional stormwater components were approved by the state for 50% loan forgiveness. The transfer of funds that the council is being asked to approve is necessary for the total debt payment of $118,632.00 plus 2% interest over 20 years. The skatepark is scheduled to have a grand opening on June 21 from 10 a.m. to 6 p.m.

Physical Infrastructure: Wastewater Study

As part of its consent agenda, the council will be asked to approve a $62,800 contract with Black & Veatch Ltd. for a water & wastewater system capital cost recovery study. Background to this contract is June 3, 2013 city council action to change the calculation of the water and sanitary improvement charges for properties connecting to city water mains or sanitary sewers – but only for a two-year period, from July 1, 2013, through June 30, 2015.

The effect of the council’s action was to reduce the connection charges considerably. It was understood at the time that the two-year period would allow for the hiring of a consultant to review the city’s fees and charges for connections to the water and sanitary sewer systems and make recommendations for revision. That’s why the Black & Veatch item appears on the council’s June 16 agenda. The principles at stake are described in the staff memo accompanying the item as follows:

When making future changes to improvement charges and connection fees, it is important that various competing elements are satisfied. The fees must be easy to explain and easy to understand to be accepted by the users. The fees must recover costs equitably. The fees must not result in either an undue burden on existing rate payers of the systems or an undue burden on new customers connecting to the systems. The fees must be easily understood and neither over recover costs nor under recover costs. Any under-recovery of costs would place undue and inequitable financial burdens on current rate payers. To meet these goals and gain the experiences of other utilities, it is desirable to contract with a consulting firm that has nationwide experience in this area.

Physical Infrastructure: Stormwater Services

As part of its consent agenda, the council will be asked to approve the amendment of a purchase order for stormwater services with the Washtenaw County water resources commissioner. The request of the council is to increase the amount of the existing contract with the water resources commissioner by $30,000. The existing contract was approved for FY 2011 for $69,215 with a 3% annual increase, which would have put the amount for FY 2014 and FY 2015 at $75,633 and $77,902, respectively. The council is being asked to approve funding at $105,633 and $107,902, for FY 2014 and FY 2015, respectively.

Informational Infrastructure: HR and Payroll Software

The council will be asked to approve a $570,900 contract with NuView Inc. to replace the city’s human resource and payroll system. The staff memo accompanying the item explains why the existing software, acquired in 2007, is being replaced:

In 2007, the City installed a Human Resource and Payroll system called Ultipro, by Ultimate Software. The Ultipro system included modules for Recruiting, Benefits Administration, Human Resource Administration and Payroll. The City has experienced a variety of issues related to the underlying database architecture utilized by Ultimate Software. In addition, due to changes such as new legislative requirements, the increase in recruiting volume and the increase in manual data entry involved in benefits administration, the City has found the Ultipro system unable to meet its Human Resource needs.

Sidewalk/Pedestrians

The council’s agenda features several items related to special-assessed sidewalk construction projects, as well as funding for a pedestrian safety and access task force. Four different special-assessed sidewalk construction projects are on the agenda – two public hearings to be held at the June 16 meeting (for Scio Church and Barton Drive) and two resolutions to set public hearings for future meetings (for Pontiac Trail and Stone School Road).

Sidewalk/Pedestrians: Pontiac Trail Sidewalk

Two resolutions appear on the agenda in connection with construction of a new sidewalk on Pontiac Trail – one to direct the assessor to prepare an assessment roll, and another to set a public hearing on the special assessment for July 21. The assessable cost is $72,218. According to the staff memo accompanying the resolution, sidewalk construction would be done as part of the reconstruction of Pontiac Trail beginning just north of Skydale Drive to just south of the bridge over M-14.

The project will also be adding on-street bike lanes and constructing a new sidewalk along the east side of Pontiac Trail to fill in existing sidewalk gaps and to provide pedestrian access to Olson Park and Dhu Varren Road. That’s a part of the city’s Complete Streets program. In addition to the sidewalk, approximately 1,960 feet of curb and gutter is being added north of Skydale along Pontiac Trail to protect existing wetland areas. [.pdf of Pontiac Trail sidewalk special assessment area]

Sidewalk/Pedestrians: Stone School Sidewalk

The council has previously directed the preparation of a special assessment roll for a new sidewalk along the west side of Stone School Road. This work will be done in conjunction with the Stone School Road reconstruction project from I-94 to Ellsworth Road. The total sidewalk project cost is roughly $128,500, of which about $55,000 will be special assessed. So the requested action of the council on June 16 will be to set a public hearing on the special assessment for July 7.

Sidewalk/Pedestrians: Barton Drive Sidewalk – Public Hearing

The sidewalk on Barton Drive would extend eastward from Bandemer Park at Longshore Drive. The cost of the Barton Drive sidewalk has been calculated to be $80,606. Of that, about $36,000 will be paid from federal surface transportation funds. Of the remaining $44,606, the city’s general fund would pay $42,626, leaving just $1,980 to be paid through the special assessment. The city council had voted at its May 19, 2014 meeting to set the assessment roll and to schedule the public hearing for June 16.

Sidewalk/Pedestrians: Scio Church Sidewalk – Public Hearing

Another public hearing based on previous council action at its May 19 meeting will be held at the June 16 meeting – on the special assessment to fund construction of a sidewalk on Scio Church Road. For the Scio Church sidewalk project, the total cost is expected to be $365,100. Of that, about $164,000 will be paid from a federal surface transportation grant. The remaining $201,100 will be paid out of the city’s general fund and by the special assessment of just $1,626.

Sidewalk/Pedestrians: Larchmont Traffic Calming

The council will be asked to approve a traffic calming project on Larchmont Drive at a cost of $55,000 $8,800.

Larchmont traffic calming proposal: Three speed humps.

The action includes an appropriation for five other traffic calming projects, totaling $55,000.

The approval of this project comes in the context of the council’s budget deliberations last month, when an amendment was offered but rejected by the council that would have cut the FY 2015 budget allocation for art administration from $80,000 to $40,000 and put the $40,000 is savings toward traffic calming projects. The amendment got support only from Sumi Kailasapathy (Ward 1), Jane Lumm (Ward 2), Jack Eaton (Ward 4), and Mike Anglin (Ward 5).

Traffic calming projects must undergo a neighborhood engagement process in which at least 60% of households support the designed project. In the case of the Larchmont project, 13 out of 15 households supported the project.

Sidewalk/Pedestrians: Pedestrian Task Force Consultant

The council will be asked to approve a $75,000 contract with The Greenway Collaborative Inc. to support the work of the pedestrian safety and access task force as a facilitator. The task force was established through a council resolution passed on Nov. 18, 2013. Confirmed as members of the task force on Jan. 21, 2014 were: Vivienne Armentrout, Neal Elyakin, Linda Diane Feldt, Jim Rees, Anthony Pinnell, Sarah Pressprich Gryniewicz, Kenneth Clark, Scott Campbell, and Owen Jansson.

The group has begun to meet and has elected Feldt to chair the task force. The resolution on the council’s June 16 meeting agenda comes after the council voted down a resolution at on April 7, 2014 that included a $77,400 contract with Project Innovations for the facilitation work. Project Innovations had been identified by staff as a contractor uniquely qualified to do the facilitation work. Project Innovations was familiar to city staff as the facilitator for a sanitary sewer wet weather evaluation study the city is currently conducting.

But subsequently the city issued an RFP (requests for proposals) for the facilitation work. [.pdf of RFP No. 893] Task force members participated in the selection process from among three respondents to the RFP. Besides Project Innovations and the Greenway Collaborative, ENP & Associates responded to the RFP. ENP is the consultant the city used for the recent review of downtown zoning.

Business Services

On the council’s agenda are two contracts that are approved annually – one for business development services and one for lobbying services.

Business Services: Ann Arbor SPARK

As part of its consent agenda, the council will be asked to approve a $75,000 contract with Ann Arbor SPARK for economic development services. This is an annual contract. At its May 19, 2014 meeting, the council spent roughly five hours of deliberations on amendments to the FY 2015 budget, and just under 30% of that time was spent on two amendments involving SPARK – neither of which were approved by the council.

Ann Arbor city council budget deliberations FY 2015: 4 hours 45 minutes by amendment topic.

SPARK is also the entity with which the local development finance authority (LDFA) contracts for business accelerator services. One of the proposed amendments to the FY 2015 budget would have decreased the amount of funding to SPARK from the LDFA, resulting in an increase to the amount the LDFA would have reserved for future infrastructure projects. The second budget amendment debated on May 19 would have eliminated the $75,000 in the FY 2015 budget for the contract the council will be asked to approve as part of its June 16 agenda.

Ann Arbor SPARK also receives money from other governmental units in Washtenaw County. In 2013, the $75,000 paid by the city of Ann Arbor to SPARK accounted for more than half of the $132,888 total contributed by all governmental units besides Washtenaw County. The county levies a tax under Act 88, and out of that levy, last year the county contributed $200,000, according to the information provided to the city by SPARK. [.pdf of 2013 "return on investment" from Ann Arbor SPARK] [.pdf of 2013 Ann Arbor SPARK projects]

Business Services: GCSI Lobbying

As a part of its consent agenda, the council will be asked to approve a $48,000 contract with Governmental Consultant Services Inc. for lobbying services. According to the memo accompanying the item, GCSI has contributed to Ann Arbor’s efforts to increase state funding for fire protection, land-use planning, and parks and recreation projects.

GCSI is also supposed to monitor issues currently pending before the legislature and advocate for the city’s specific interests. GCSI has done this kind of work for the city of Arbor since 2001. GCSI also provides lobbying services for Washtenaw County, as well as other local municipalities. The city’s main liaison with GSCI is Kirk Profit, an Ann Arbor resident and former Michigan state legislator.

Downtown

The council will be handling several items on its June 16 agenda that relate to the Ann Arbor Downtown Development Authority specifically, or the downtown area generally.

Downtown: DDA Budget Amendment

The council will be asked to approve a routine fiscal-year-end budget adjustment for the Ann Arbor DDA. The DDA board approved the adjustment at its June 4, 2014 meeting. The main part of the adjustment is a $1.6 million payment made for the First & Washington parking garage, which is part of the City Apartments project. The amount was budgeted by the DDA for last year, but not paid until this year.

The rest of the adjustment is attributable to expenditures out of the DDA’s housing fund – $500,000 of it to support Ann Arbor Housing Commission projects. The remaining $37,500 went to support a countywide housing needs assessment – an amount that was approved by the board at the same June 4 meeting in a separate vote. The DDA will end the fiscal year with $6,167,757 in fund balance. The breakdown of that total is: TIF ($619,571); Housing ($160,154); Parking ($2,161,676) and Parking Maintenance ($3,226,356).

Downtown: Affordable Housing Needs Assessment

The council will be asked to authorize $37,500 from the affordable housing trust fund to support the Washtenaw County housing needs assessment. The Ann Arbor DDA had approved the same amount at its meeting on June 4, 2014. Money from the city and DDA is being considered as “up to” amounts. Mary Jo Callan, director of the county’s office of economic and community development (OCED), told the DDA board at its June 4 meeting that $75,000 from a HUD Sustainable Communities grant would be the first money spent toward the assessment.

The firm selected by the OCED to do the needs assessment is czb LLC out of Virginia. [.pdf of RFP for the needs assessment] The current needs assessment will update a report done in 2007. According to a memo from OCED staff to the DDA, the final report will “provide a clear, easy to understand assessment of the local housing market, identify current and future housing needs, and provide specific and implementable policy recommendations to advance affordable housing.

The goal for this update is to include an analysis that links transportation cost and accessibility, as well as other environmental and quality of life issues to the location of affordable housing.” The RFP for the needs study describes the timeline for the work as including a draft for review due at the end of October 2014, with a final presentation due in mid-December.

(Not) Downtown: Streetlight LED Conversion

As part of its consent agenda, the council will be asked to approve a purchase agreement with DTE to convert 223 mercury-vapor cobrahead streetlights to LED technology. The up-front cost of the conversion will be $69,555 – but that amount will be reduced to $55,060 after rebates. The annual electric bill from DTE for the 223 streetlights is currently $45,128. After conversion, the projected annual cost will be $30,910. The savings would result in about a 3.1-year payback period on the net cost of $55,060.

None of the streetlights to be converted are in the DDA district. Streetlights in the DDA district were part of a similar proposal considered by the DDA board at its May 7, 2014 meeting, but postponed by the board at that meeting until June 4. By the time of the June 4 meeting, however, a decision had already been made that the DDA would not be funding an LED conversion this year. [DTE's program has an annual cycle, but is not necessarily offered every year.] If the DDA board had approved funding for converting lights in the DDA district, it would have affected 212 non-LED streetlights.

Streetlight locations are mapped in the joint Washtenaw County and city of Ann Arbor GIS system. Data available by clicking on icons includes ownership as well as the lighting technology used. This one is a high pressure sodium light operating at 400 watts.

The project the DDA declined to fund this year would have included converting 100 watt MV (mercury vapor), 175 watt MV and 100 watt HPS (high pressure sodium) lights to 65 watt LED (light emitting diode). Further, 400 watt MV and 250 watt HPS lights would have been converted to 135 watt LED. Finally, 1000 watt MV and 400 watt HPS lights would have been converted to 280 watt LED. Currently, the city pays DTE $72,585 a year for the energy used by the 212 downtown streetlights. After conversion, the annual cost for the 212 lights would be expected to drop to $51,895, for an annual savings of $20,690.

In deliberations at the DDA board’s May 7 meeting, DDA board member Roger Hewitt opposed the grant, because the savings that would be realized accrues to the city of Ann Arbor, which pays the energy bills for the lights. Hewitt noted that the relationship between the city and the DDA includes a number of fund transfers to the city. Even though the amount is not huge, Hewitt said, the expenditure of several small amounts could eventually impair the DDA’s ability to pay for major infrastructure improvements.

Other board members joined Hewitt in their concerns, questioning what projects might be sacrificed if the DDA paid for the LED conversion. Concern was also expressed over the possibility that the result of a streetscape framework planning effort could result in a decision to replace all cobrahead lights in the downtown area with pedestrian-scale lampposts. And that would mean that the new LED fixtures would be used for only a short while.

Downtown: Zoning, Character District

The council will be asked to give initial approval to changes in two parts of the zoning code affecting the parcel at 425 S. Main, on the southeast corner of Main and William streets. Because these would be changes to the zoning code, which is expressed in city ordinances, any council action that might be taken would need a second and final vote at a future meeting, in order to be enacted.

Aerial view of 425 S. Main – outlined in green – between William and Packard. An alley separates the site from a residential neighborhood along South Fourth Avenue.

Currently, a two-story 63,150-square-foot office building – where DTE offices are located – stands on the southern part of that site, with a surface parking lot on the north portion. [.pdf of staff memo on 425 S. Main rezoning]

To be considered separately by the city council are votes that would: (1) change the zoning of the parcel from D1 (downtown core base district) to D2 (downtown interface base district); and (2) change the character overlay district, of which the parcel is a part, to increase the D2 height limit from 60 feet to 100 feet. Assuming the zoning change is made for the parcel at 425 S. Main, it would be the only D2 parcel in the character district. The changes to the character overlay district also include upper story setbacks from any residential property. [.pdf of staff memo on overlay district]

The planning commission recommended both the changes at its May 6, 2014 meeting. The planning commission’s vote on the basic zoning change was unanimous – 9-0. But the vote on the 100-foot height limit was only 6-3, with dissent coming from Sabra Briere, Ken Clein and Jeremy Peters. Briere also serves on city council, representing Ward 1. Both recommendations had been brought forward by the commission’s ordinance revisions committee (ORC). Members are Bonnie Bona, Diane Giannola, Kirk Westphal and Wendy Woods.

The planning commission’s recommendations came in response to a city council directive given at its Jan. 21, 2014 meeting, which had been based on previous work the planning commission had done. The commission had studied and developed a broader set of eight recommendations for zoning changes in specific parts of the downtown. The overall intent was in large part to buffer near-downtown residential neighborhoods. The commission had unanimously approved those original recommendations at its Dec. 3, 2013 meeting.

Those initial Dec. 3, 2013 recommendations from the planning commission had come in response to a previous direction from the city council, given at the council’s April 1, 2013 meeting. The council’s action in early 2013 came in response to the controversial 413 E. Huron development.

The items on the council’s June 16, 2014 agenda are just the first of what are expected to be several other changes recommended by the planning commission. That set of initial recommendations from the planning commission to the city council – which the council then accepted and for which the council asked the planning commission to draft ordinance language – included a proposal to rezone 425 S. Main to D2. However, those original recommendations had also called for a maximum height of 60 feet for D2 zoning in the Main Street character overlay district – lower than the 100 feet put forward at the commission’s May 6 meeting.

The site’s current zoning allows for a maximum height of 180 feet. The previous zoning, prior to 2009, set no limits on height. At this time, no new development has been proposed for this site.

Downtown: Hotel Site Plan

The city council will be asked to approve the site plan for First Martin’s proposed extended-stay hotel at 116-120 West Huron Street. The planning commission gave a recommendation of approval at its May 20, 2014 meeting.

Rendering of proposed hotel at the northeast corner of West Huron and Ashley. The One North Main building is visible to the east.

The proposal calls for a six-floor, 88,570-square-foot building with a ground-floor restaurant or retail space and an extended-stay hotel on the upper five levels. The hotel will be operated by Marriott.

The current site at 116-120 W. Huron includes a Greyhound bus depot and a one-story building that houses the Ann Arbor Convention & Visitors Bureau. Both of those buildings will be demolished. The bus depot facade will remain in place as part of the new building’s design. [.pdf of staff report]

The main hotel entrance is proposed for the building’s west side, facing North Ashley, while the main entrance for the restaurant or retail space is proposed to face West Huron, on the building’s south side. The site is zoned D1, which allows for the highest density development in the downtown. According to the staff memo, five off-street parking spaces are required.

First Martin has secured a letter of commitment from Zipcar, a car-sharing service, for two vehicles. Parking spaces for those cars are proposed at the northeast corner of the site. For purposes of the city’s parking requirement, the two Zipcars would count as eight off-street parking spaces, and would satisfy the requirement. The two existing curbcuts – on North Ashley and West Huron – will be closed, and access to the two parking spaces, loading dock and trash/recycling would be from the mid-block alley to the north. The alley is currently one-way, and will be converted to a two-way alley and repaved.

The current site at 116-120 W. Huron, looking north. One North Main is the building on the right. The city’s Ann Ashley parking structure is visible in the background.

Streetscape changes will include curb bump-outs on North Ashley, on the north and south ends of the site for passenger drop-off. Nine bicycle parking spaces are required for the project, and would include two bike hoops in the North Ashley right-of-way and two in the West Huron right-of-way, for a total of eight bike spaces. Three more hoops are proposed for the Ann Ashley parking structure, with First Martin paying for labor and materials. The city of Ann Arbor and Downtown Development Authority would assume responsibility for maintenance of those hoops.

Construction is estimated to cost $13 million. In giving the staff report to the planning commission, city planner Alexis DiLeo noted that the Greyhound bus depot has been at that location since 1940, and the site has been a transportation hub since 1898.

Downtown: Bank of Ann Arbor Site Plan

The city council will be asked to approve the site plan for an addition to the Bank of Ann Arbor headquarters at 125 South Fifth Avenue. The planning commission recommended approval of the project at its May 20, 2014 meeting.

The site plan involves reorienting the main entrance – moving it from the center of its South Fifth Avenue side to the southeast corner of South Fifth and East Washington. Existing doors will be replaced with windows. A 9,179-square-foot third-floor addition would be constructed over the rear of the building’s east side. In total, the building would be 32,651 square feet after construction. The project is estimated to cost $4.2 million. [.pdf of staff memo]

Bank of Ann Arbor building at the northeast corner of South Fifth and East Washington. The proposed renovations will create a “tower” entrance into the building at this corner.

According to the staff memo, the design “seeks to transform the current style from contemporary to traditional by replacing the yellow brick façade with brown and red-colored bricks and limestone-colored stone accents and trim and creating a brick and glass tower at the street corner to create a prominent entry.”

The original two-story building was constructed in 1965, which included the drive-thru window. An addition was completed in 1999. The project was evaluated by the city’s design review board on Jan. 14. The board suggested making the entry structure taller and more closely aligning the bank’s design features with those of the adjacent Ameritech building to the east.

The site is zoned D1, which allows for the highest level of density in the downtown area. D1 zoning requires a special exception use for drive-thrus, which the planning commission considered on May 20 in a separate vote. Because the project is going through a site plan approval process, the requirement for a special exception use was triggered. Special exception uses do not require additional city council approval.

The bank has an existing drive-thru teller window on its north side. No changes are planned to that configuration, however. In giving the staff report to the planning commission, city planner Alexis DiLeo said if the drive-thru were used more frequently, staff might suggest additional design features, like a more clearly marked crossing or differentiated surface materials. But because there are only 20-25 transactions per day at the drive-thru, and given the “successful history” of the existing drive-thru, staff was comfortable with it remaining as is, DiLeo said.

Modifications to drive-thru regulations are in the works, but not yet enacted. The planning commission approved new drive-thru regulations earlier this year. Amendments to Ann Arbor’s zoning ordinance related to drive-thrus received initial approval at the council’s May 5, 2014 meeting, and received final approval at the council’s June 2, 2014 meeting.

Downtown: Liberty Plaza

Mayor John Hieftje and Christopher Taylor (Ward 3), joined by Margie Teall (Ward 4) and Sabra Briere (Ward 1), are sponsoring a resolution that would direct the city administrator to “work collaboratively with the property owners adjacent to and near Liberty Plaza, the general public, PAC [park advisory commission], the Ann Arbor District Library, and the DDA to develop a conceptual design for an improved Liberty Plaza…”

Funding for the collaborative work in the amount of $23,577 would come from the parks and recreation budget. In addition to a concept for a “re-imagined Liberty Plaza,” the effort is supposed to result in options for funding construction, to be provided by city staff. A report is to be provided to the park advisory commission by December 2014 and to the city council a month later in January 2015.

This resolution comes in the context of a push by some Ann Arbor residents to establish public park space on top of the underground Library Lane parking garage, which is southwest of Liberty Plaza separated from that park by a surface parking lot owned by First Martin Corp. Related to that, the council voted at its April 7, 2014 meeting – as part of reconsidering a vote it had taken at its previous meeting on March 17 – to designate a 12,000-square-foot portion of the Library Lane surface to be reserved as an urban park.

The result of the reconsidered resolution on April 7 undid the council’s earlier decision to establish a square foot range for the urban plaza – from 6,500-12,000 square feet. That April 7 council decision was made on a 7-4 vote, with dissent from Taylor, Hieftje, Teall and Chuck Warpehoski (Ward 5).

Courts Human Services

On the council’s June 16 agenda are several items related to the criminal justice system, specifically for some of the specialty courts operated by the 15th District Court. As part of its consent agenda, the council will be asked to approve an amendment to a $76,242 contract with Washtenaw County Community Support & Treatment Services – for mental health treatment services to people who are participating in the sobriety court and the mental health court.

Also on the consent agenda, the council will be asked to approve a $44,200 amendment to a contract with the Washtenaw County sheriff’s office to provide drug abuse screening and monitoring services for the mental health court. The council will be asked to approve a $108,174 amendment to a contract with the nonprofit Dawn Farm for drug abuse counseling and rehabilitative services.

And finally, the consent agenda includes a resolution for a $40,000 amendment to a contract with Reiser and Frushour PLLC to provide legal representation as court-appointed counsel to indigent defendants.

Recycling

The council’s June 16 agenda includes three items related to recycling.

Recycling: RAA Multifamily Pilot

The council will be asked to approve a two-year $95,694 contract with Recycle Ann Arbor for a recycling incentive program for multi-family residential units. This item is based on the city’s solid waste plan, which the city council adopted at its Oct. 7, 2013 meeting.

The plan includes evaluating methods to increase recycling participation through pilot programs. Among those methods is the introduction of a recycling incentive program for multi‐family housing units. According to the staff memo accompanying this item, a manual sort of waste conducted in the fall of 2012 found that only 12% of the trash that single-family residents threw away was recyclable, compared to 26% of the trash that multi-family residents threw away. The completion of the pilot program is expected in December 2016. According to the memo, Recycle Ann Arbor’s proposal includes:

1. Gather information on best multi-family recycling practices in North America.
2. Survey and/or interview key multi-family constituencies in Ann Arbor to better understand the challenges and opportunities for recycling in this sector. Based on feedback received, develop 3 to 5 methodologies for further testing and analysis.
3. Identify pilot parameters and measurement protocols.
4. Identify pilot communities to involve in the pilot programs (ultimately targeting approximately 1,000 units) and ramp up pilot start-up.
5. Implement pilot programs.
6. Analyze results of pilot programs.
7. Provide detailed recommendations to the City on best practices and report results to participating multi-family communities.

Methodologies that will be tested as part of the pilot will include the following:

• Recycling rewards program: Evaluate if a recycling rewards program would be effective in improving recycling participation rates in multi-family locations
• Indoor collection bins: Most multi-family locations share outdoor recycling bins. Determine if the provision of indoor recycling bins would help increase recycling rates.
• Multi-family recycling leader program: Determine if the use of recycling leaders at individual locations would help increase recycling rates.
• 300-gallon recycling cart: Determine if the use of 300-gallon carts instead of the standard 96-gallon cart would help increase recycling.

Recycling: Baler Infeed Conveyor Repair

The council will be asked to approve a $39,480 reimbursement to Resource Recovery Systems – the city’s contracted operator of its materials recovery facility (MRF) – for repair of the baler infeed conveyor belt. According to a staff memo accompanying the item, the belt was last replaced in 2007, and has worn out. Such conveyors are described in the memo as lasting five to seven years.

Recycling: RAA Student Move-out Services

As part of its consent agenda, the council will be asked to approve a $35,000 annual contract with Recycle Ann Arbor for services associated with the move-out of University of Michigan students.

According to the staff memo on the item, RAA’s proposal includes a staffed drop-off location at the corner of Tappan and Oakland streets during student fall and spring move-out periods. The site is also used to collect reusable items (through organizations such as the Salvation Army, Kiwanis, or the Reuse Center), bulky metal items, and recyclable materials.

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4:10 p.m. Staff responses to councilmember questions about agenda items. [.pdf of staff responses to June 16, 2014 agenda questions]

6:14 p.m. Paul Fulton of the city’s IT department is setting up the laptop with the Historic District Commission awards presentation. Thomas Partridge has already arrived.

6:48 p.m. Eppie Potts, who’s receiving the Preservationist of the Year Award tonight from the Historic District Commission, has arrived. She quips: “Usually I’m here to yell at them!”

7:08 p.m. The only councilmember not yet arrived is Chuck Warpehoski (Ward 5). Mayor John Hieftje is here, but he seems to have stepped away for a bit. We’re basically ready to go.

7:09 p.m. Warpehoski is now here.

7:10 p.m. Call to order, moment of silence, pledge of allegiance. And we’re off.

7:10 p.m. Approval of agenda. All are present and correct.

7:11 p.m. Approval of agenda. Jane Lumm (Ward 2) wants to note that there will be a resolution added on the settlement on the Goldstone case. City attorney Stephen Postema says it can go at the end.

7:11 p.m. Outcome: The council has voted to approve the agenda.

7:13 p.m. Communications from the city administrator. Steve Powers is thanking Chief John Seto for the Ann Arbor police department and Ann Arbor fire department event on Saturday, recognizing public safety officers for their bravery and service. He thanked Seto for the open house, where equipment was demonstrated. He’s announcing the grand opening of the skatepark on June 21. He’s thanking residents for their patience as the city rolls out its street reconstruction projects for the season.

7:14 p.m. INT-1 Introduction of Ann Arbor Police K-9 Murray and Officer Pat Maguire. Murray, the dog, is named after Vada Murray, an Ann Arbor Police Department officer who passed away a few years ago. His wife and children are in attendance.

7:15 p.m. Chief Seto is introducing Officer Maguire and K-9 Murray. The pair earned distinction in a recent trials competition.

7:16 p.m. INT-2 Presentation of Historic District Commission annual awards. This is the 30th annual presentation of the awards.

7:18 p.m. Tom Stullberg, chair of the HDC, is giving the presentation.

7:18 p.m. Rehabilitation Awards are presented in recognition of substantial work that returned a property to a state of utility through repair or alteration, facilitating contemporary needs but respecting the features of the property that are significant to its historic and architectural values.

7:18 p.m. University of Michigan For East Quad. Details: Built in 1940; $116 million renovation; replaced slate roof, restored leaded glass, replaced window glazing, restored exterior walls; repaired wood paneling and fireplaces in main floor lounges.

7:19 p.m. University of Michigan for Munger Residences, formerly called the Lawyers Club. Details: Built between 1923 and 1933; $39 million renovation; upgraded infrastructure, replaced slate roof (reusing many original pieces), repaired exterior masonry; added two elevators without compromising historical integrity.

7:19 p.m. Jim Kosteva, UM director of community relations, is on hand to accept the awards on behalf of UM.

7:20 p.m. Preservation Awards are presented in recognition of superior maintenance of a significant property to preserve its essential historical, cultural or architectural value for a period of 10 years or more.

7:20 p.m. Susan and Martin Hurwitz for 1520 Cambridge 1520 Cambridge. Details: Built in 1913 for Max and Clemence Winkler; Colonial Revival; round topped windows, classical surround of pilasters and broken pediment, prominent modillions; owned and maintained by Susan and Martin Hurwitz since 1991.

7:20 p.m. Kappa Alpha Theta (Eta Chapter): 1414 Washtenaw. Details: Built in 1867 for Dr. Silas Pratt; Colonial Revival; remodeled by Louis H. Boynton when purchased by Kappa Alpha Theta in 1916; one of the first Greek letter organizations to locate on Washtenaw; received State of Michigan Historic Designation in 1983.

7:21 p.m. First Presbyterian Church for 1432 Washtenaw. Details: Built in 1938; Gothic Revival in the English Country style; renovations in 1956 and 1998; Lancet windows with stained glass, buttresses, steep slate roof; stand of mature trees leading to main entry are remnants of the “picnic grove” that surrounded home at the previously occupying site.

7:21 p.m. Ann Arbor City Club for 1830 Washtenaw. Details: Built in 1888 by Evart Scott as farmhouse; remodeled into Colonial Revival home by Louis H. Boynton when purchased in 1917 for Dr. R. Bishop Canfield; purchased by Ann Arbor Women’s City Club in 1951 and remodeled into clubhouse; 1962 addition designed by Ralph Hammett.

7:22 p.m. Ken Wisniski and Linda Dintenfass for 13 Regent Drive. Details: Designed by local architect David Osler in 1964 for William and Margaret Mundus; Mid-Century Modern; five levels, mostly hidden from public view; renovation by Stan Monroe in 2012 to change third level into master bedroom and rebuild five decks; owned and maintained by Ken Wisniski and Linda Dintenfass since 1999.

7:23 p.m. Howard Shapiro for 7 Regent Drive. Details: Designed by Alden Dow in 1964 for Joe Morris; three levels, views the Arb; flat roof with flared edges on the west, resembles three boxes with a hidden entry; influenced by Frank Lloyd Wright (Dow studied at Taliesin in the 1920s); owned and maintained by Dr. Howard Shapiro since 2002.

7:23 p.m. Margaret Bignall and Paul Hossler for 1448 Broadway. Details: Built in 1852 by John Lennon; Greek Revival; typical early 19th century settler house; 950 square feet, 1½ story, side gable; small, historic barn behind house; owned and maintained by Margaret Bignall and Paul Hossler since 1980.

7:24 p.m. Carol and Robert Mull for 1111 Fair Oaks. Details: Designed in 1916 by Fiske Kimball for James N. and Clara Petrie; inspired by Monticello and the White House; irregular floor plan: round rooms in center and rectangular rooms on sides; Ives Woods/Burns Park neighborhood; owned and maintained by Carol and Robert Mull since 1979.

7:25 p.m. Stone School Cooperative Nursery for 2811 Stone School. Details: Built in 1911 as a rural schoolhouse; incorporated materials from 1853 schoolhouse previously on site; original foundation stone and school bell and belfry; purchased and restored in 1995 by the Stone School Cooperative; listed on National Register of Historic Places in 1995.

7:25 p.m. John Hollowell for 844 W. Huron. Details: Built in 1872 by William H. Mallory; Gothic Revival; two porches, two bay windows, eared trim with elaborate scroll details; 1890s Victorian lamp posts from Belle Isle; Old West Side; owned and maintained by John Hollowell since 1970s.

7:26 p.m. Steve Sivak for 1158 Pomona. Details: Built in 1955 for Joseph and Emma Albano; Mid-Century Modern; long, low lines, prominent carport, exposed rafters, vertical cedar siding, flat roofs; large expanses of window glass on the sides, blank façade offering privacy from the street; owned and maintained by Steve Sivak since 1995.

7:27 p.m. Akhavan Rayhaneh for 2022 Delafield. Details: Built in 1958 by James P. Wong for Richard Hadden; “Bonnet house”; Mid-Century Modern; steeply pitched gable in front, floor to ceiling windows form part of façade, overhang has exposed rafters; owned and maintained by Akhavan Rayhaneh since 1989.

7:27 p.m. Special Merit Awards are presented in recognition of exceptional people, projects, landscapes or other unique preservation projects.

7:28 p.m. Susan Wineberg and Patrick McCauley: Authors of “Historic Ann Arbor: An Architectural Guide”; describes over 350 Ann Arbor buildings; includes 40 University of Michigan buildings; four years researching, documenting, photographing, and writing; valuable resource to anyone interested in architecture or history of Ann Arbor.

7:28 p.m. Preservationist of the Year is presented to an individual who has provided the city of Ann Arbor with exemplary services in the pursuit of historic preservation, incentives, and/or education.

7:28 p.m. Ethel K. Potts is the 2014 Preservationist of the Year. Details: attended the University of Michigan; served on city’s zoning board of appeals and the planning commission; advocate for historic preservation; mentor to future preservationists; “This city means a lot to me, its buildings and history must be maintained for generations to come.”

7:30 p.m. Potts is getting an enthusiastic ovation from the audience and councilmembers.

7:30 p.m. Recess. We’re in a short recess so that the awardees can exit.

7:37 p.m. We’re back.

7:37 p.m. Public Commentary reserved time. This portion of the meeting offers 10 three-minute slots that can be reserved in advance. Preference is given to speakers who want to address the council on an agenda item. [Public commentary general time, with no sign-up required in advance, is offered at the end of the meeting.]

Two people are signed up to talk about the $75,000 contract with The Greenway Collaborative to support the work of the pedestrian safety and access task force, both of them members of the task force: Vivienne Armentrout and Linda Diane Feldt. Three people are signed up to talk about the $75,000 contract with Ann Arbor SPARK: Kai Petainen, Jeff Hayner and Dave DeVarti. Hayner’s second topic is the East Stadium bridges art installation. Thomas Partridge is signed up to talk about improved affordable housing and economic development.

7:40 p.m. Vivienne Armentrout is a member of the pedestrian safety and access task force. She’s asking the council to approve the contract with The Greenway Collaborative. It’s already in the FY 2014 budget, so it’s “not new money,” she says. She says the task force is “itching” to take on its task. The task force needs the council’s support now, to continue its work – the task force has met three times so far. Armentrout is reviewing the responsibility the council gave the task force. She’s describing how some members of the task force participated in the selection of the facilitator, from the three who responded to the city’s RFP. [.pdf of Armentrout's remarks]

7:41 p.m. Kai Petainen is reading the following statement aloud: [Petainen public comment] [Ann Arbor SPARK 2013 annual report] and [21st Century Jobs Trust Fund 2013 Annual Report]

7:46 p.m. Linda Diane Feldt is a member of the pedestrian safety and access task force – and she was elected chair of the group. She’s thanking the council for appointing her to the task force. She’s asking for the council’s support – in the form of approving the $75,000 contract with The Greenway Collaborative. She’d participated in the selection process of the consultant, she says. The process that will unfold will involve thousands of volunteer hours, she notes. The value of the work will far exceed the value of the contract, she says. The task force has already dived into its work. She’s noting that The Greenway Collaborative is a local firm with excellent qualifications.

7:49 p.m. Jeff Hayner says that the spirit of economic development is alive and well. There are many partners in this effort, including the UM Tech Transfer Office. He’s criticizing Ann Arbor SPARK for high salaries, but says they’re not using income for terrorist activities. He says that SPARK has misrepresented its results. He suggests revising the resolution to reduce the $75,000 to just 10% of that figure.

7:51 p.m. David DeVarti is a former city councilmember and former member of the Ann Arbor Downtown Development Authority board. He’s speaking against the funding for SPARK, asking the council to deny it or table it. He allows that as a DDA member he had voted for money for SPARK. He’d been disappointed by what SPARK had produced, but he’d gone along to get along with mayor John Hieftje and with Bob Guenzel. He points out that $75,000 could go a long way for a human services agency. He asks that the council hold Ann Arbor SPARK to the same kind of standards as it does the human services agencies it has contracts with. That would create a real sense for the council for what SPARK is failing to provide in terms of documentation.

7:54 p.m. Thomas Partridge introduces himself as a resident of Ward 5 as well as recent candidate for various public offices. He calls for improved funding for affordable housing and economic development. He wants the council to take direct responsibility for funding the elimination of homelessness and measurably increasing the amount of funding available for affordable housing.

7:59 p.m. Communications from council. This is the first of two slots on the agenda for council communications. It’s a time when councilmembers can report out from boards, commissions and task forces on which they serve. They can also alert their colleagues to proposals they might be bringing forward in the near future.

7:59 p.m. Sally Petersen says that the LDFA board will be discussing an independent audit of the SmartZone at its meeting tomorrow at 8:30 a.m. She also notes that the LDFA board has heard the council’s interest in seeing investments in infrastructure.

7:59 p.m. Kunselman is talking about the activity of the nuisance committee, of which he’s the only member. He’s also explaining his research on the DDA terms. Attached to the agenda are old DDA records Stephen Kunselman (Ward 3) retrieved from the University of Michigan Bentley Library. [link]

8:03 p.m. Kunselman is now talking about the issue of TIF refunds that were made by the DDA in the early 1980s. He’s now talking about the DDA’s development plan and the requirements for that plan in the statute. He’s calling for the council to work with the DDA to work on a new development plan. He’s pointing out that the city administrator is the city’s representative on the DDA board. He said he’s told city administrator Steve Powers that he expects the DDA will be following the law.

8:04 p.m. Sumi Kailasapathy (Ward 1) is alerting people to the removal of some stop signs on Nixon Road near Green and Dhu Varren. This is a temporary measure related to nearby construction. She asks people to be careful. Jane Lumm (Ward 2) is now talking about the same stop sign removal issue. There will be additional police enforcement, she says.

8:05 p.m. Margie Teall (Ward 4) announces that the Michigan Theater has agreed to purchase the State Theater.

8:07 p.m. Mike Anglin (Ward 5) is announcing that the environmental commission had three vacancies. There were 10 applicants. He says that tonight Allison Skinner, Benjamin Muth and Mark Clevey are being presented as candidates to serve on the city’s environmental commission. The vote on their appointments will be at the council’s July 7, 2014 meeting.

8:08 p.m. MC-1 Confirmation of June 2, 2014 nominations. Nominated at the council’s June 2, 2014 meeting for reappointment to the city planning commission were Wendy Woods and Eleanore Adenekan. Nominated at that meeting for reappointment to the commission on disability issues were Linda Evans and Larry Keeler. Those confirmations are being voted on tonight.

8:08 p.m. Outcome: The council has voted to confirm the appointments.

8:08 p.m. MC-2 Nominations. Audrey Wojtkowiak is being nominated to the board of the Ann Arbor Housing Commission to fill the vacancy left by Christopher Geer. The vote on her confirmation will come at the council’s next meeting.

8:10 p.m. Mayor John Hieftje is reviewing the awards to firefighters and police officers that were made last Saturday.

8:12 p.m. Hieftje is reviewing the last winter and the work that human service agencies did. He’s worried about the capacity for that work if the winter is as back next year.

8:08 p.m. MC-1 Confirmation of June 2, 2014 nominations. Nominated at the council’s June 2, 2014 meeting for reappointment to the city planning commission were Wendy Woods and Eleanore Adenekan. Nominated at that meeting for reappointment to the commission on disability issues were Linda Evans and Larry Keeler. Those confirmations are being voted on tonight.

8:08 p.m. Outcome: The council has voted to confirm the appointments.

8:08 p.m. MC-2 Nominations. Audrey Wojtkowiak is being nominated to the board of the Ann Arbor Housing Commission to fill the vacancy left by Christopher Geer. The vote on her confirmation will come at the council’s next meeting.

8:10 p.m. Mayor John Hieftje is reviewing the awards to firefighters and police officers that were made last Saturday.

8:12 p.m. Hieftje is reviewing the last winter and the work that human service agencies did. He’s worried about the capacity for that work if the winter is as bad next year.

8:14 p.m. Public Hearings. All the public hearings are grouped together during this section of the meeting. Action on the related items comes later in the meeting. On tonight’s agenda are five hearings:

• PH-1 Anderson-Pebbles annexation. This is a standard annexation into the city from Scio Township. The zoning for the 0.22 acre parcel at 375 Glenwood Street will be handled after the annexation is complete.
• PH-2 Bank of Ann Arbor addition. This is the site plan for the addition on the building at Fifth Avenue and Washington streets. [For additional background, see Downtown: Bank of Ann Arbor Site Plan above.]
• PH-3 116-120 West Huron site plan. This is the site plan for First Martin’s hotel project. [For additional background, see Downtown: Hotel Site Plan above.]
• PH-4 Scio Church sidewalk assessment. [For additional background, see Sidewalk/Pedestrians: Scio Church Sidewalk – Public Hearing above.]
• PH-5 Barton Drive sidewalk assessment. [For additional background, see Sidewalk/Pedestrians: Barton Drive Sidewalk – Public Hearing above.]

8:15 p.m. PH-1 Anderson-Pebbles annexation. Thomas Partridge says that the property should be required to have access to public transportation.

8:16 p.m. That’s it for this public hearing.

8:19 p.m. PH-2 Bank of Ann Arbor addition. Ray Detter is expressing support for this project. It takes a building that has been criticized as being “suburban” and making it an asset, instead of building something that is 180 feet tall, even though the site’s zoning would allow for that.

8:20 p.m. Thomas Patridge is advocating for a requirement that access for public transportation be provided at the site. The bank should be a good corporate citizen and give priority to considerations like that.

8:21 p.m. Edward Vielmetti is pointing out that the current site has Juneberry trees that are just now becoming ripe, and they are delicious. He hopes that the site after renovation will also have good landscaping.

8:22 p.m. PH-3 116-120 West Huron site plan. Ray Detter is expressing support for the project. He notes that a part of the project will preserve the facade of the bus depot.

8:22 p.m. PH-4 Scio Church sidewalk assessment. No one speaks during this public hearing.

8:26 p.m. PH-5 Barton Drive sidewalk assessment. Jeff Hayner says this is his neighborhood. He thanks everyone in the room and in the neighborhood who came together to get this done. It’s been at least 12 years in the works, he says. He encourages the pedestrian task force to take a look at the area. He’s questioning the cost for the project, however. It would have a long-term positive impact, he said. No offense to the public art commission, he says, but the council will be voting on $350,000 for decorative elements on the East Stadium bridges, when the approach to the bridge is in terrible shape.

8:26 p.m. Council minutes. Outcome: The council has voted to approve the minutes of the previous meeting.

8:26 p.m. Consent Agenda. This is a group of items that are deemed to be routine and are voted on “all in one go.” Contracts for less than $100,000 can be placed on the consent agenda. This meeting’s consent agenda includes:

• CA-1 Approve DTE LED Conversions ($69,555/$55,060 after rebates). [For additional background, see (Not) Downtown: Streetlight LED Conversion above.]
• CA-2 Approve contract with Black & Veatch Ltd. ($62,800).
• CA-3 Approve purchase of hydrofluorosilicic acid for water treatment from PVS Nolwood Chemicals (estimated $34,000/yr).
• CA-4 Amend service purchase order for stormwater services with the Washtenaw County water resources commissioner (increase of $30,000 for FY 2014 & FY 2015).
• CA-5 Approve contract with Recycle Ann Arbor for solid waste student move-out services ($35,000/yr). [For additional background, see Recycling: RAA Student Move-out Services above.]
• CA-6 Award contract for 8th Street sanitary sewer manhole replacement to Fonson Inc. ($47,193). [For additional background, see Physical Infrastructure: Manholes above.]
• CA-7 Approve a contract with Ann Arbor SPARK for economic development services ($75,000). [For additional background, see Business Services: Ann Arbor SPARK above.]
• CA-8 Approve amendment to contract with the Washtenaw County Sheriff’s Office to provide drug abuse screening and monitoring services for mental health court ($44,200).
• CA-9 Approve amendment to contract with Washtenaw County Community Support & Treatment Services for mental health treatment services to sobriety court and mental health court participants ($76,242).
• CA-10 Approve amendment to contract with Reiser and Frushour PLLC to provide legal representation as court appointed counsel to indigent defendants ($40,000).
• CA-11 Street closings for the Firecracker 5K (Friday, July 4, 2014).
• CA-12 Street closings for Sonic Lunch (Thursday, July 10, 2014 and Thursday, July 31, 2014).
• CA-13 Street closing for the 2014 Washtenaw Indie Awards, Saturday (June 28, 2014).
• CA-14 Approve contract with Governmental Consultant Services Inc. for Lobbying Services ($48,000). [For additional background, see Business Services: GCSI Lobbying above.]
• CA-15 Approve May 22, 2014 recommendations of the Board of Insurance Administration ($66,142).

8:27 p.m. Outcome: The council approved the consent agenda except for items CA-1, CA-7 and CA-10.

8:30 p.m. CA-1 Approve DTE LED conversions ($69,555/$55,060 after rebates). Kunselman says he’s happy this is coming along. He has a question about why the DDA is not funding the project for conversion of lights inside the DDA district. Public services area administrator Craig Hupy says that the general fund pays for streetlights.

Nate Geisler, the city’s energy programs analyst, is explaining that the DDA is undertaking a streetscape framework planning effort and that gave rise to hesitancy by DDA board members to pay for converting those lights at this time.

8:32 p.m. Kunselman questions whether the DDA will be able to implement its streetscape framework plan without council approval, because they are city streets. Kunselman points out that there are cobrahead lights that are out on Division Street. “Point taken,” Hupy says.

8:34 p.m. Hieftje says that DTE owns the lights, but the city pays the electric bill. The DDA had historically paid for conversion of the LED lights. Briere recalls taking a series of tours with downtown merchants to look at the lights and how the lights work. She asks if Hupy can provide information by the next council meeting about which lights in the downtown have been decommissioned and not removed, or are otherwise not working.

8:35 p.m. Lumm is talking about doing LED conversion when a repair is needed.

8:36 p.m. Outcome: The council has voted to approve CA-1 on the consent agenda.

8:37 p.m. CA-7 Approve a contract with Ann Arbor SPARK for economic development services ($75,000). Kailasapathy notes that she’d requested some information about SPARK when the council had debated the FY 2015 budget. She has concerns about the job creation numbers. She’s not talking about LDFA money, just the $75,000 from the general fund. She’s now reviewing the contributions of other municipalities, compared to the $75,000 that the city of Ann Arbor contributes.

8:39 p.m. Relative contributions that she’s discussing are here: [link]

8:42 p.m. Kailasapathy is reviewing the tax rebate given to Mahendra. She says she will not support the SPARK contract.

8:44 p.m. Petersen says that the concerns about the presentation of metrics are valid, but these are the metrics that were chosen. SPARK doesn’t tell companies where to locate, she says. She compares SPARK to the Welcome Wagon. Large floor-plate office space doesn’t exist in Ann Arbor, she says, but it does in Pittsfield Township. SPARK is agnostic about there companies locate, and she allows that Pittsfield is getting a better deal than Ann Arbor. SPARK isn’t taking sole credit for job creation, she says. She’ll support this, because SPARK is the only economic development agency we have.

8:45 p.m. Eaton moves to table, and points out that such motions don’t allow debate.

8:47 p.m. Outcome: The council has voted 6-5 to table this resolution. Voting to table were Kunselman, Kailsapathy, Eaton, Anglin, Briere, and Lumm.

8:48 p.m. CA-10 Approve amendment to contract with Reiser and Frushour PLLC to provide legal representation as court appointed counsel to indigent defendants ($40,000). Taylor, an attorney with Hooper Hathaway, provides legal services to this firm and asks the council to vote to allow him not to participate in the vote. They take that vote. He takes a seat in the audience.

8:48 p.m. Outcome: The council has voted to approve CA-10 on the consent agenda.

8:48 p.m. C-1 425 S. Main Street rezoning of 1.1 Acres from D1 (Downtown Core Base District) to D2 (Downtown Interface Base District). The council is being asked to give initial approval to changes in two parts of the zoning code affecting the parcel at 425 S. Main, on the southeast corner of Main and William streets. Because these would be changes to the zoning code, which is expressed in city ordinances, any council action that might be taken would need a second and final vote at a future meeting, in order to be enacted. First up is the zoning. The next item will involve the character district overlay. [For additional background, see Downtown: Zoning, Character District above.]

8:49 p.m. Sabra Briere (Ward 1), the council’s representative to the planning commission, is reviewing the resolution. She encourages her colleagues to move it forward to a second reading.

8:51 p.m. Anglin is raising the question of heights in D2 – and ventures that D2 zoning is supposed to be 60 feet. Planning manager Wendy Rampson is now at the podium. She’s explaining the notion of “base zoning” – that’s D1 or D2 – and the character overlay districts. The height restrictions are not part of the base zoning, but rather the character overlay districts.

8:54 p.m. Kunselman elicits the fact that the Ashley Mews development, across the street, is a planned unit development (PUD) and is 110 feet tall.

8:55 p.m. Chuck Warpehoski (Ward 5) is glad to see this come forward, but he’ll have some questions about the character district resolution. He notes that the focus had been on the Huron Street corridor, but he’d asked that this parcel be included in the review of the downtown zoning. He says that D2 is the appropriate zoning, and he’s grateful that the parcel was included in the scope of the review as he’d requested.

8:55 p.m. Outcome: The council has voted to give initial approval to the rezoning of 425 S. Main from D1 to D2.

8:56 p.m. Recess. We’re in recess.

9:05 p.m. We’re back.

9:05 p.m. C-2 Main Street Downtown character overlay zoning districts building massing standards. This is the second of two downtown zoning items. The focus of the deliberations will likely be the 100-foot height limit the planning commission has recommended for the D-2 zoned area of the Main Street character area. All other D-2 areas of the downtown have a 60-foot height limit. [For additional background, see Downtown: Zoning, Character District above.]

9:07 p.m. Briere is reviewing the planning commission discussion on this item. She says the commission had heard from many members of the community on this issue. The commission had split on this 6-3. [Briere voted as one of the three dissenters.] She’s explaining the rationale for those in the majority – that it would be suitable to terrace a 100-foot building away from the neighborhood.

9:09 p.m. But Briere points out that the city council’s resolution stated D2 at 60 feet. The basic premise of the majority was that even in winter there would be available sunlight, but Briere didn’t think that was the main issue.

9:10 p.m. Lumm complains that there’s no minutes available from the planning commission’s deliberations on the 6-3 vote. [Deliberations are reported in detail in The Chronicle's report of the planning commission's May 6, 2014 meeting.] Lumm asks planning manager Wendy Rampson to explain why the planning commission changed the height from 60 feet to 100 feet.

9:13 p.m. Rampson is reviewing basis of the planning commission’s decision. The commission felt that a 100-foot height would provide some flexibility so that someone would not try to build out the site to 60 feet everywhere on the parcel as one massive building. Rampson says the minutes will be ready by the council’s next meeting, noting that the commission’s meeting was very long.

9:17 p.m. Anglin says this is a unique site. His fear is that the council will be asked to approve the change on a second reading at its next meeting. Now is the chance for the council to set the zoning correctly. He doesn’t want to start the ball rolling toward a second reading on a time schedule. He doesn’t want to approve this tonight.

9:18 p.m. Kunselman asks Rampson what the zoning was before the A2D2 process. It was C2-A or C2-AR, she thinks. There were no height limits. Kunselman notes that this would be the only D2 with a height limit of 100 feet. Why not just leave it D1 and reduce the allowable height from 180 feet to 100 feet?

9:21 p.m. Rampson tells Kunselman that the point of A2D2 was to provide certainty for a property owner about what could be built. He ventures that that never works, and that’s why he’d voted against the A2D2 zoning. He agrees with Anglin that he wouldn’t support moving it forward tonight. Warpehoski says he’s also concerned, but says that moving it to second reading would allow the setting of a public hearing, which would provide a chance for people to weigh in.

9:23 p.m. Petersen asks Anglin if he’s making a motion to postpone. Anglin is reiterating his point that it’s important to set the zoning the way the council wants. Briere says she’s reviewed The Chronicle’s report of the planning commission meeting. Those who spoke at the public hearing were not the adjacent neighbors, she says. She really wants to return it to the planning commission. She moves to refer it to the planning commission for reconsideration.

9:25 p.m. Hieftje says this would accomplish Anglin’s objective. Kunselman says he’ll support this. Lumm says she’ll support Briere’s motion. Lumm was surprised to see the recommendation from the planning commission, as it was different from the council’s direction.

9:26 p.m. Taylor says that moving something from first to second reading is a well-established way to solicit additional input, and he’d oppose the motion to refer it back to the planning commission as an unnecessary step.

9:28 p.m. Briere says Taylor is right about the procedure being well-established, but she appeals to an argument that Leigh Greden had made when he was on the council: He knew that he’d be voting against it at second reading, so it was a waste of time to vote to move it to second reading. Petersen is saying she supports referring it back to planning commission.

9:30 p.m. Hieftje asks Briere if there were people on the planning commission who were on the fence: Would she expect a different outcome from the planning commission? Briere says she thinks there were some people on the fence. She stresses that zoning is the council’s purview. She says there’s no harm and no foul in saying to the commission: This is not quite what we want.

9:32 p.m. Outcome: The council has voted to refer back to the planning commission the the Main Street character district overlay for D2, after amending the height limit recommended by the planning commission – from 100 feet to 60 feet.

9:32 p.m. City attorney Stephen Postema whispers something in Hieftje’s ear. Hieftje points out that the zoning change to which the council had given initial approval is impacted by the council’s decision to refer the character district question back to the planning commission.

9:35 p.m. The council reconsiders item C-1.

9:35 p.m. Outcome: The council has voted to table C-1.

9:38 p.m. The council is now reconsidering item C-2. Warpehoski is arguing for moving it along, based on the fact that the parcel is currently zoned D1 where a structure that’s 180 feet tall can be built. Taking a step toward rezoning it to D2 is a step forward. Kunselman suggests replacing the references to 100 feet to 60 feet.

9:39 p.m. Kunselman says if the public wants a height limit greater than 60 feet, the council will hear that.

9:40 p.m. Briere says that this seems simple, but there’s all kinds of other language in the character district that refers to stepped back construction. She says this is about by-right development, so it’s important that the council get it right.

9:43 p.m. Eaton is suggesting that the First Street character overlay language be swapped in. Rampson points out that the First Street character was designed for the industrial buildings abutting the Allen Creek corridor.

9:44 p.m. Warpehoski asks if council and planning commission need to be in concurrence on this. No, Rampson says. That’s just for the master plan.

9:45 p.m. Kunselman asks if the council approves the change to 60 feet, would the planning staff can clean up the other language before the second reading?

9:48 p.m. Based on Rampson’s response, Kunselman thinks the planning staff can deal with the other language, and describes not voting on a final change until October or November. Anglin is complaining about Stalinist architecture and how developers threaten to build those kinds of buildings.

9:50 p.m. Outcome: Kunselman’s amendment is approved over dissent from Taylor.

9:51 p.m. Outcome: The council has given initial approval to C-2 as amended.

9:51 p.m. C-1 The council now takes up C-1 off the table.

9:52 p.m. Outcome: The council has voted to give initial approval to C-1.

9:52 p.m. Recess. We’re now in recess.

9:58 p.m. We’re back.

9:58 p.m. DC-1 Improve Liberty Plaza. This resolution would direct the city administrator to “work collaboratively with the property owners adjacent to and near Liberty Plaza, the general public, PAC [park advisory commission], the Ann Arbor District Library, and the DDA to develop a conceptual design for an improved Liberty Plaza…” Funding for the collaborative work in the amount of $23,577 would come from the parks and recreation budget. [For additional background, see Downtown: Liberty Plaza above.]

9:59 p.m. Taylor is explaining the background to the resolution. He says there’s been a good deal of discussion about people’s aspirations for downtown parks not at Liberty Plaza. But Liberty Plaza is already there, even though it does not meet our “collective aspirations,” he says. Ann Arbor needs a downtown park that is vibrant and has green space.

10:02 p.m. Petersen says she’d originally had a concern that the resolution didn’t incorporate Library Lane. She feels strongly that the entire block should be considered as a whole. Petersen moves to refer the issue to the park advisory commission. Hieftje suggests to Petersen that the council can talk about it a bit. He says that he sees this resolution as a reaction to work that PAC has already done in making recommendations on downtown parks.

10:06 p.m. Kunselman questions the funding allocation. He says that the city has just one park planner – Amy Kuras. So he was not sure he wanted to place that responsibility on her. He wondered why direction had to be given to staff and PAC, saying that PAC doesn’t need direction to act in this manner. He suggests that the University of Michigan landscape architecture students could be a partner on the design. He notes that Mike Martin is attending the meeting, but wouldn’t call him to the podium. [Martin is attending because of a resolution related to a hotel project by First Martin Corp., which comes later on the agenda.]

Kunselman has heard rumors that First Martin is planning to demolish the Michigan Square building (west of Liberty Plaza) in the next year, and he wants to know if that’s true before redesigning the park.

10:08 p.m. Kunselman said that the problem of people hanging out at Liberty Plaza wouldn’t be solved through redesign. But the UM had solved its problem with people hanging out at State and North University by doing the only thing that works – removing the seating. He says that it’s important to have downtown beat cops. He says he’ll support Petersen’s motion to refer it back to PAC.

10:10 p.m. Hieftje asks Powers to comment. Powers says the amount was the amount included in the “parks fairness” budget resolution. He doesn’t know if it’s enough money. Sumedh Bahl, community services area administrator, comes to the podium.

10:13 p.m. Briere is reflecting on her perceptions of Liberty Plaza. She was happy to see it on the agenda, and had added her name as a sponsor. She didn’t know if this was enough money. She supports it but doesn’t object to referring it to PAC.

10:15 p.m. Kunselman asks if this means that Liberty Plaza would jump ahead of developing a master plan for the Allen Creek Greenway. Hieftje says that if Kunselman can be a bit patient, there will be a master plan proposed soon.

10:18 p.m. Hieftje says that an Allen Creek Greenway master plan might be prepared before the end of the budget year. Kunselman asks if there’d been any council direction to start any of the activity that Hieftje has described. Yes, Hieftje says, there was a resolution involving 415 W. Washington. Kunselman reiterates the fact that staff has not been directed specifically to develop a greenway master plan. He’s reiterating the lack of resources for park planning. There are 157 parks in the city and he wonders why Liberty Plaza has become the most important one. Kunselman will support the referral to PAC.

10:21 p.m. Lumm says she’s going to propose some amendments to this resolution. She’s adding language about an “integrated plan for the Library Block.” She’s ticking through a number of amendments to various resolved clauses.

10:21 p.m. Taylor says that Lumm’s amendments are not “friendly,” so the council will need to vote on the amendments.

10:23 p.m. Hieftje says he’s been told by experts that without the newsstand downstairs and the restaurant adjacent to it, Liberty Plaza can’t succeed because it doesn’t have “eyes on the park.”

10:26 p.m. Hieftje is contrasting Liberty Plaza with Sculpture Plaza, at Fourth and Catherine. He says Liberty Plaza needs to be redesigned. He doesn’t mind postponing this, but wanted the council to talk about this tonight. He describes the resolution as providing seed money. Liberty Plaza has been “festering” there for quite some time. Petersen says there’s a shining light in Liberty Plaza, which is the sensory garden, and she hopes that if Liberty Plaza is redesigned, an alternate place can be found.

10:28 p.m. Teall says that Library Lane and Liberty Plaza are not connected. It’s asking too much of the resolution to expect it to connect the whole block.

10:29 p.m. Teall says that many people have responded to the Library Green Conservancy by saying that we should focus on improving Liberty Plaza, but no one has done that. This resolution would do that.

10:30 p.m. Warpehoski is sizing up how he sees the issue.

10:30 p.m. Lumm has now sent her amendments around via email.

10:35 p.m. Petersen reiterates the desirability of connecting Liberty Plaza and Library Lane, even if they are not currently connected. Taylor allows that integrated planning on a large scale does on occasion make sense. But he feels that a park that is already here and that has design challenges can be addressed. “These parks will not be connected,” he says, because there is private land between them.

10:36 p.m. Eaton is arguing for considering Liberty Plaza and the Library Lane lot at the same time, as they have many common traits.

10:37 p.m. Eaton will support Lumm’s amendments as well as Petersen’s motion to refer it to PAC.

10:39 p.m. Powers clarifies that the money in the resolution is in the FY 2015 budget. Anglin feels that it’s a budget amendment and might need 8 votes. Powers explains that it’s not a budget amendment, because the money is already there, so it doesn’t need 8 votes.

10:39 p.m. Briere says she’ll support the amendments.

10:41 p.m. Kunselman ventures that there’s an easement that connects the Liberty Plaza and Library Lane, and a gate that First Martin uses to periodically block off access so that there’s no opportunity for adverse possession.

10:42 p.m. Kunselman wonders if First Martin is interested in working with the city. Putting up a retaining wall, blocking the stair and back filling the area is essentially the basic option, Kunselman.

10:43 p.m. Hieftje says that there’s no easement, as Kunselman had contended. Mike Martin, from the audience, tells Hieftje that he’s right.

10:44 p.m. Hieftje says that if this resolution is attached to the Library Lane project, it will take years to accomplish anything, he cautions.

10:48 p.m. Here are Lumm’s amendments: [.pdf of Lumm's amendments]

10:49 p.m. Warpehoski is citing parliamentary procedure: a motion to refer takes precedence over a motion to amend. So he’s moving to refer the unamended resolution to PAC.

10:51 p.m. Lumm doesn’t want to refer the resolution without her amendments.

10:54 p.m. Kunselman asks Taylor why this was not brought up to PAC before bringing it to council. Taylor says it’s not necessary, as it’s the council’s prerogative to set policy. If passed as drafted, it would have established Liberty Plaza as a priority of the council. Hieftje notes that the referral is now the question before the council.

10:54 p.m. Outcome: The council has voted to refer to PAC the unamended resolution allocating funds to move forward a process for the redesign of Liberty Plaza.

10:56 p.m. Closed Session. A vote to go into closed session fails. So the council votes instead to suspend the rule on a unanimous vote required for going into closed session after 11 p.m.

10:56 p.m. They’re still in open session.

10:56 p.m. DC-2 Approve 2014 Ann Arbor Jaycees Carnival. The event will take place at Pioneer High School June 25 to June 29, 2014.

10:57 p.m. Outcome: The council has voted to approve the Jaycees Carnival.

10:57 p.m. DC-3 Kids Day This resolution was added to the agenda just today, so it’s not a part of the consent agenda with other street closing resolutions. This would close State Street between William and Washington for Kids Day on Saturday, June 28, 2014 from 10 a.m. until 3 p.m.

10:57 p.m. Outcome: The council has voted to approve the street closing for Kids Day.

10:57 p.m. DB-1 Approve the Anderson-Pebbles annexation 0.22 Acre, 375 Glenwood Street. This is a standard annexation, from Scio Township.

10:57 p.m. Outcome: The council has voted to approve the Anderson-Pebbles annexation.

10:57 p.m. DB-2 Approve Bank of Ann Arbor headquarters addition. The council is being asked to approve the site plan for an addition to the Bank of Ann Arbor headquarters at 125 South Fifth Avenue. The site plan involves reorienting the main entrance – moving it from the center of its South Fifth Avenue side to the southeast corner of South Fifth and East Washington. Existing doors will be replaced with windows. A 9,179-square-foot third-floor addition would be constructed over the rear of the building’s east side. [For additional background, see Downtown: Bank of Ann Arbor Site Plan above.]

10:57 p.m. Outcome: The council has voted to approve the site plan for the Bank of Ann Arbor addition.

10:57 p.m. DB-3 Approve 116-120 West Huron Street Site Plan and Development Agreement (First Martin hotel). The council is being asked to approve the site plan for First Martin’s proposed extended-stay hotel at 116-120 West Huron Street. The proposal calls for a six-floor, 88,570-square-foot building with a ground-floor restaurant or retail space and an extended-stay hotel on the upper five levels. The hotel will be operated by Marriott. [For additional background, see Downtown: Hotel Site Plan above.]

10:57 p.m. Outcome: The council has voted to approve the First Martin hotel project.

10:57 p.m. DB-4 Approve Amendment to contract with Widgery Studio, LLC to fabricate and install public art at the Stadium Boulevard Bridges ($353,552). The council is being asked to approve a contract with Widgery Studio LLC to fabricate and install public art at the East Stadium Boulevard bridges. The city had already contracted with Widgery on May 20, 2014 for $8,248 to finalize the structural design of the artwork with an engineer. This amendment to the contract on tonight’s council agenda adds art fabrication and installation services to the existing agreement, bringing the total compensation to $353,552 for all services. [For additional background, see Physical Infrastructure: Art above.]

10:59 p.m. Lumm is reviewing the discussions the council has had in the past on the public art program and the return of much of the money to the funds of origin. She remains unconvinced that this is the optimal investment the city could make with the money. She’s thanking members of the art commission for their effort. “It is a nice project,” she says.

11:00 p.m. Teall is inviting John Kotarski and Bob Miller to the podium to give a presentation on the bridges art. They are vice chair and chair, respectively, of the Ann Arbor public art commission.

11:08 p.m. Lumm is asking about the approach to the bridge to the west. Bob Miller notes that the art is located at Rose White Park. At that location looking west, he doesn’t think it’s going to conflict. Kunselman is asking about the durability of the glass panels. Is it replaceable? Yes, explains Miller, they can be replaced one louver at a time.

11:08 p.m. Outcome: The council has voted to approve the funding for fabrication and installation of public art at East Stadium Boulevard bridges.

11:11 p.m. DB-5 Approve $37,500 for affordable housing needs assessment. Kailasapathy expresses concern that the trust fund should be used for capital construction. It’s a small amount, but the small amounts can chip away at the balance, she says. Briere reads aloud the policy, which allows money in the affordable housing trust fund to be used for analysis, which this is.

11:14 p.m. Lumm says she’ll support this. She allows that perhaps the policy on allocation could use some updating.

11:16 p.m. Mary Jo Callan, director of the office of community & economic development, has been asked to the podium to explain how the assessment will start. The policy on allocation of funds does need to be updated, Callan says. The housing & human services advisory board (HHSAB) is interested in working on that with the city, she says.

11:20 p.m. Kunselman asks CFO Tom Crawford to the podium. Kunselman ventures that there is no affordable housing trust fund, but rather just an account where the city keeps track. Crawford explains that for the city’s audit, the fund is folded into the general fund. It’s noted as a restricted line item. Kunselman is proposing to change the allocation from the affordable housing trust fund to the general fund. This is just a study, he says, and he doesn’t think the city should be using the affordable housing fund for that.

11:22 p.m. Lumm prefers to use the affordable housing fund. Hieftje agrees with Lumm. The needs assessment will guide the construction of affordable housing, he says.

11:24 p.m. Briere says that the existing policy does not specify only capital investment, so she wants to pay for it out of the affordable housing fund.

11:25 p.m. Outcome: Kunselman’s amendment fails, with support only from Kunsleman, Eaton, Warpehoski, Angin, and Kailasapathy.

11:26 p.m. Outcome: The council has voted to approve the $37,500 from the affordable housing trust fund to pay for the housing needs assessment.

11:26 p.m. DS-1 Approve a Contract with NuView, Inc. to replace the city’s human resource and payroll system ($570,900). The staff memo accompanying the item explains why the existing software, acquired in 2007, is being replaced:

In 2007, the City installed a Human Resource and Payroll system called Ultipro, by Ultimate Software. The Ultipro system included modules for Recruiting, Benefits Administration, Human Resource Administration and Payroll. The City has experienced a variety of issues related to the underlying database architecture utilized by Ultimate Software. In addition, due to changes such as new legislative requirements, the increase in recruiting volume and the increase in manual data entry involved in benefits administration, the City has found the Ultipro system unable to meet its Human Resource needs.

11:26 p.m. Lumm has asked a staff member from HR to explain this in detail.

11:27 p.m. The topic is recruitment of veterans. The goal is to make the “onboarding” of candidates paperless.

11:28 p.m. Not all the data will be migrated to the new system. The systems will run parallel for a month or more as a safety check.

11:29 p.m. Kailasapathy is pleased to see the five-year cumulative savings that was provided by the staff analysis.

11:30 p.m. Outcome: The council has voted to approve the contract with NuView for the human resources and payroll system.

11:30 p.m. DS-2 Transfer funds to authorize State Revolving Fund (SRF) debt payment and loan forgiveness for stormwater and rain garden components of the skatepark project (Not To Exceed $157,264). [For additional background, see Physical Infrastructure: Stormwater above.]

11:31 p.m. Outcome: The council has voted to approve the the transfer of funds in connection with the skatepark rain garden.

11:31 p.m. DS-3 Approve contract with Dawn Farm for drug abuse counseling and rehabilitative services ($108,174). [For additional background, see Courts Human Services above.]

11:31 p.m. Outcome: The council has voted to approve the contract with Dawn Farm.

11:31 p.m. DS-4 Set assessment roll for Pontiac Trail Sidewalk ($72,218) [For additional background, see Sidewalk/Pedestrians: Pontiac Trail Sidewalk above.]

11:31 p.m. Outcome: The council has voted to set the assessment roll for the Pontiac Trail sidewalk.

11:31 p.m. DS-5 Set public hearing for the Pontiac Trail sidewalk special assessment project. [For additional background, see Sidewalk/Pedestrians: Pontiac Trail Sidewalk above.]

11:32 p.m. Outcome: The council has voted to set the public hearing on the Pontiac Trail sidewalk special assessment project – for July 21.

11:32 p.m. DS-6 Set public Hearing for the Stone School Road sidewalk project. [For additional background, see Sidewalk/Pedestrians: Stone School Sidewalk above.]

11:32 p.m. Outcome: The council has voted to set the public hearing on the Stone School Road sidewalk special assessment project – for July 7.

11:32 p.m. DS-8 Approve a contract with Emergency Restoration Company for the renovation of restrooms and locker Rooms in Fire Stations #3 and #4 ($149,500). [For additional background, see Physical Infrastructure: Fire Station Restrooms above.]

11:32 p.m. Outcome: The council has voted to approve the contract with ERC for fire station restroom renovation.

11:33 p.m. DS-9 Approve award of a construction contract to Lanzo Lining Services Inc. Michigan for the 2014 sewer lining project ($1,566,121). [For additional background, see Physical Infrastructure: Sewer Lining above.]

11:34 p.m. Lumm is asking what all is included. The answer from staff is that there could be additional locations where work could be done.

11:34 p.m. Outcome: The council has voted to approve the contract with Lanzo Lining Services.

11:34 p.m. DS-10 Award a construction contract with Douglas N. Higgins Inc. for the Arbor Oaks water main replacement project ($1,324,357). [For additional background, see Physical Infrastructure: Water Main above.]

11:34 p.m. Outcome: The council has voted to award the construction contract with Douglas N. Higgins Inc.

11:34 p.m. DS-11 Approve installation of traffic calming devices on Larchmont Drive ($55,000). The project would install three speedhumps. [For additional background, see Sidewalk/Pedestrians: Larchmont Traffic Calming above.]

11:35 p.m. Lumm says that the neighborhood is so excited – as the application went in five years ago. She’s thanking staff who worked on this.

11:38 p.m. Eaton notes that $60,000 had been budgeted for the whole year. Is this $55,000 taking up most of the whole year’s budget? Nick Hutchinson is explaining that the $55,000 that’s being brought forward is from FY 2014. The actual cost of this particular project is just $8,800, Hutchinson explains.

11:38 p.m. Outcome: The council has voted to approve the installation of traffic calming devices on Larchmont.

11:39 p.m. DS-12 Approve a contrast with Northwest Consultants Inc. for the Fuller Road, Maiden Lane, E. Medical Center Drive bridges rehabilitation project ($187,184) According to the staff memo accompanying the resolution, the project includes “re-painting of each bridge, repairing corroded structural steel, bridge abutment and pier (substructure) repairs, expansion joint removal and replacement, bridge deck patching, placing an overlay on the existing bridge decks, bridge railing repairs, guard rail upgrades, brush trimming and removal around the perimeter of the bridge structures, and other related work.” [For additional background, see Physical Infrastructure: Fuller Road Bridges above.]

11:41 p.m. Briere wants to know if the amenities that would complete the Border-to-Border Trail are included in this work. Hupy explains that this resolution is for maintenance of existing bridge structures. Kunselman says it’s his understanding that there’s a lot of “human activity” near the location. He wants to know if assistance will be provided to those people who are living in tents. Hupy says there will be plenty of notice given before construction starts.

11:41 p.m. Outcome: The council has voted to approve the contract with Northwest Consultants Inc. for the bridges rehabilitation project.

11:42 p.m. DS-13 Approve a contract with The Greenway Collaborative Inc. to support the pedestrian safety and access task force ($75,000). This is a contract that had originally been recommended by staff to be awarded to a different vendor, but without issuing an RFP. After issuing an RFP, The Greenway collaborative was selected. The task force was established through a council resolution passed on Nov. 18, 2013. Confirmed as members of the task force on Jan. 21, 2014 were: Vivienne Armentrout, Neal Elyakin, Linda Diane Feldt, Jim Rees, Anthony Pinnell, Sarah Pressprich Gryniewicz, Kenneth Clark, Scott Campbell, and Owen Jansson. [For additional background, see Sidewalk/Pedestrians: Pedestrian Task Force Consultant above.]

11:42 p.m. Lumm thanks Powers and staff for listening to the concerns of council on this project.

11:43 p.m. Lumm is concerned that this effort could be expanded in its scope and could require additional funding.

11:43 p.m. Outcome: The council has voted to approve the contract with The Greenway Collaborative Inc. to support the pedestrian safety task force.

11:43 p.m. DS-14 Approve contract with Recycle Ann Arbor for multi-family recycling incentive pilot program ($95,694). This resolution is based on recommendations in the city’s solid waste plan. [For additional background, see Recycling: RAA Multifamily Pilot above.]

11:46 p.m. Kunselman asks RAA staff to come to the podium. Kunselman says that he’s heard it might be the last opportunity he has to ask Tom McMurtrie a question. “As a city employee,” that’s correct, McMurtrie says. Kunselman gets clarification that it’s city employees who do trash collection. He asks what kind of outcomes could be expected.

11:48 p.m. The RAA staff member says the point of the study is to understand the nuances of recycling in multi-family units: transience, language barriers, a willingness to go down from the third floor to put recyclables in container. They want to figure out what makes multi-family units tick. It’s a nut that no one nationally has cracked, he says.

11:50 p.m. Lumm is talking about Palo Alto and Seattle as benchmarks. She asks how much improvement McMurtrie thinks is possible. Based on the percentage of recyclables in the waste stream, McMurtrie thinks there’s potential for improvement.

11:53 p.m. Lumm asks why the work needs to be contracted out. Hupy indicates to Lumm that in him and McMurtrie she’s looking at the staff. Taylor says he thinks this is great – as it’s an area where improvement is needed. Hieftje ventures there’s a “gold mine” out there as far as how much additional material can be recycled in multi-familiy housing units.

11:53 p.m. Outcome: The council has voted to approve the contract with Recycle Ann Arbor for a multi-family recycling incentives pilot program.

11:53 p.m. DS-15 Reimburse Resource Recovery Systems for repair of baler infeed conveyor at the Material Recovery Facility ($39,480). RSS operates the city’s material recovery facility under a contract. The typical pattern is for RSS to handle the replacement of equipment with reimbursement from the city. [For additional background, see Recycling: Baler Infeed Conveyor Repair above.]

11:55 p.m. Teall invites McMurtrie to the podium to congratulate him on his retirement. Solid waste has changed so much in the time that Teall has been on the council. McMurtrie notes that it’s been almost 24 years and he finds it rewarding to do work that touches on every single resident.

11:55 p.m. Teall invites McMurtrie to the podium to congratulate him on his retirement. Solid waste has changed so much in the time that Teall has been on the council. McMurtrie notes that it’s been almost 24 years and he finds it rewarding to do work that touches on every single resident.

11:56 p.m. Hupy says that there’s a new staff member who’ll be taking over for McMurtrie. McMurtrie’s retirement party will be held on July 1 from 3-5 p.m.

11:56 p.m. Outcome: The council has voted to approve the reimbursement to RSS for repair of the MRF baler infeed conveyor.

11:56 p.m. DS-16 Amend Ann Arbor Downtown Development Authority budget for fiscal year 2014. This is a routine type of adjustment, which has been approved by the DDA board. [For additional background, see Downtown: DDA Budget Amendment above.]

11:58 p.m. Outcome: The council has voted to approve the amendment of the DDA budget.

11:59 p.m. DS-17 Goldstone vs. Warner settlement.

11:59 p.m. Outcome: The council has voted to approve a $35,000 settlement.

12:01 a.m. Briere to planning commission. As a result of the background work by the city attorney’s office on terms of appointments to boards and commissions, it was determined that Briere needed to be reappointed in order to continue to serve beyond the end of June.

12:02 a.m. Outcome: The council has voted to approve Briere’s appointment to the planning commission until Nov. 17, 2014.

12:02 a.m. Communications from council. Briere has now invited Ann Arbor SPARK CEO Paul Krutko to the podium because he had not had an opportunity to answer questions on the SPARK funding item, which was tabled earlier in the meeting. Krutko says that SPARK is a complicated organization. Krutko says that two reports that had been questioned by a member of the public were about two different activities – work for the state compared to work for Ann Arbor. There’s a variety of reports that SPARK has to provide. He’s sorry that it’s confusing, he says.

12:07 a.m. Krutko is now responding to more questions from Briere.

12:15 a.m. Lumm is telling Krutko that she shares the concerns about SPARK’s reporting. She doesn’t have a problem with the $75,000. She’s saying that more councilmembers wanted to table instead of postpone. She’s reviewing the importance of being good stewards of public funds. Now there’s back and forth between Lumm and Krutko. Lumm says that once a reconciliation of the numbers is achieved, then everyone will be comfortable.

12:16 a.m. Kunselman is now talking about the complexity of economic development. Kunselman asks if layoffs are computed as a part of the jobs numbers.

12:18 a.m. Krutko says there are 22 SPARK staff members. Responding to the lower unemployment figures in this area, Kunselman quips: Thank god for you!

12:21 a.m. Taylor expresses his concern about the tabling and calls it a “self-inflicted wound.” Ann Arbor had a reputation previously for being against growth, he says. That had changed. But now this was a step backward, Taylor says. He indicates that the council had not made a responsible, professional and temperate decision.

12:23 a.m. Warpehoski expresses his dismay that the council had tabled the SPARK resolution (without debate). Kunselman is now taking a turn, defending the tabling action as opposed to postponing.

12:24 a.m. Kailasapathy says she looks at it as a question of how much Ann Arbor taxpayers give – through Act 88 money, which is levied countywide.

12:25 a.m. Kailasapathy says that the council has not said that it won’t pay the $75,000. It’s a matter of getting the information and getting the numbers reconciled, she says.

12:27 a.m. Petersen regrets she used the term, “Welcome Wagon” to describe SPARK’s work – because SPARK is more complex than that. She says that when councilmembers had questions in advance of the FY 2015 debate, they’d had some additional questions and they were given answers within a week.

12:28 a.m. Petersen says that some of the questions have been asked only very recently and many of the questions about SPARK have been answered.

12:31 a.m. Lumm says she would have preferred to postpone instead of tabling, but she knew it would be taken up back up off the table. Briere says she plans to bring this back on July 1 [but the council's next meeting is not until July 7].

12:33 a.m. Teall says she is angry not just that the SPARK resolution was tabled but that there was a rush to table. She reiterates that she’s angry about the fact that the council has departed from the style of interaction that they’d agreed to at their planning retreat.

12:34 a.m. Hieftje is ticking through standard talking points in support of SPARK and economic development.

12:34 a.m. Hieftje says that the tabling was “over the top.”

12:35 a.m. Clerk’s Report. Outcome: The council has voted to accept the clerk’s report.

12:35 a.m. Public Comment. There’s no requirement to sign up in advance for this slot for public commentary.

12:37 a.m. Kai Petainen says that the difference in the jobs numbers reported by Ann Arbor SPARK and the state stems from how the numbers are reported. He’s reading aloud a note about intent to hire as being recorded as a success, but in the other report there are actual jobs reported.

12:39 a.m. Edward Vielmetti is now addressing the council. He said he thought they tabled something earlier in the meeting, but had they then discussed it at length later. They can discuss whatever they like, but he calls it “not a stunning display of council effectiveness.”

12:40 a.m. Closed Session. The council has voted to go into closed session to discuss pending litigation.

1:05 a.m. We’re back.

1:05 a.m. Adjournment. We are now adjourned. That’s all from the hard benches.

A sign on the door to the Ann Arbor city council chambers gives instructions for post-meeting clean-up.

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Screenshot of Legistar – the city of Ann Arbor’s online agenda management system. Image links to the June 16, 2014 meeting agenda.

Related to new sidewalk construction is a resolution that would authorize a $75,000 contract with the Greenway Collaborative, to support the work of a pedestrian safety and access task force established by the city council in late 2013. Creating a tool for setting priorities for funding and filling sidewalk gaps in the city is part of task force’s responsibility.

The $75,000 cost for the pedestrian safety task force consultant is the same amount the council will be asked to allocate to support the work of Ann Arbor SPARK, a local economic development agency. The contract with SPARK is renewed annually, as is another contract on the June 16 agenda – for lobbying services from Governmental Consultant Services Inc. The GCSI contract is for $48,000.

Also on the council’s June 16 agenda are three items with a connection to the Ann Arbor Downtown Development Authority. One is the approval of an end-of-year budget adjustment that was already approved at the DDA board’s June 4, 2014 meeting. Another is approval of a $37,500 expenditure from the city’s affordable housing trust fund to help pay for an affordable housing needs assessment. At its June 4 meeting, the DDA board authorized a $37,500 grant for the same study.

In the final item with a DDA connection, the council will be asked to authorize $69,555 for the conversion of 223 mercury vapor cobrahead streetlights to LED technology. This project would convert streetlights that are all outside the DDA district. The project is on the city council’s agenda because the DDA board recently declined to fund a similar LED conversion project – for streetlights inside the DDA tax capture district.

Several other June 16 agenda items related to the downtown area, even if they don’t have an explicit DDA connection. Two of them involve changes to downtown zoning ordinances that have been recommended by the planning commission. The zoning question to be given initial consideration by the council is whether to downzone the southeast corner of William and Main streets from D1 to D2, but with a 100-foot height limit.

Other downtown items on the council’s June 16 agenda include site plan approvals for First Martin’s hotel project at Ashley and Huron, and the Bank of Ann Arbor expansion at Fifth Avenue and Washington Street.

A resolution to improve Liberty Plaza, a downtown park at the southwest corner of Division and Liberty streets, also appears on the agenda – sponsored by mayor John Hieftje and Christopher Taylor (Ward 3).

The council will be asked to approve four items related to supportive services for the criminal justice system: (1) a $76,242 contract with Washtenaw County Community Support & Treatment Services for mental health treatment services for the 15th District Court’s sobriety and mental health courts; (2) a $44,200 contract with the Washtenaw County sheriff’s office to provide drug abuse screening and monitoring services for the mental health court; (3) a $108,174 contract with Dawn Farm for drug abuse counseling and rehabilitative services; and (4) a $40,000 contract with Reiser and Frushour PLLC to provide legal representation as court-appointed counsel to indigent defendants.

Recycling is the final topic with multiple items on the June 16 agenda. The council will be asked to approve funds for a $95,694 contract with Recycle Ann Arbor to create a multi-family recycling incentive pilot program. The council will also be asked to approve $39,480 to reimburse the city’s operator of its materials recovery facility for repair of a conveyor that feeds the baler. And finally, the council will be asked to approve $35,000 for Recycle Ann Arbor to provide solid waste services associated with student move-out activity.

The June 16 council meeting will also feature the annual historic district commission awards and the introduction of one of the Ann Arbor police department’s K-9 units, who won highest honors at a recent national certification trials event.

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 starting at 7 p.m.

Physical Infrastructure

The council’s June 16 agenda is heavy with items related to the city’s physical infrastructure.

Physical Infrastructure: Fuller Road Bridges

The council will be asked to approve a $187,184 contract with Northwest Consultants Inc. for the Fuller Road, Maiden Lane, and East Medical Center Drive bridges rehabilitation project. According to the staff memo accompanying the resolution, the project includes “re-painting of each bridge, repairing corroded structural steel, bridge abutment and pier (substructure) repairs, expansion joint removal and replacement, bridge deck patching, placing an overlay on the existing bridge decks, bridge railing repairs, guard rail upgrades, brush trimming and removal around the perimeter of the bridge structures, and other related work.”

Money for the design work is available in the approved FY 2014 public services area street millage capital budget.

The state of Michigan’s local bridge program pays for 95% of eligible construction expenses up to $790,000. The project will also receive $1,373,440 in federal surface transportation funding, administered through the Michigan Dept. of Transportation. The federal program pays for 81.85% of eligible construction expenses. But neither the state nor the federal sources will pay for the design work that the council’s action will fund.

Physical Infrastructure: Stadium Bridges Art

The council will be asked to approve a contract with Widgery Studio LLC to fabricate and install public art at the East Stadium Boulevard bridges. The city had already contracted with Widgery on May 20, 2014 for $8,248 to finalize the structural design of the artwork with an engineer. This amendment to the contract on the June 16 council agenda adds art fabrication and installation services to the existing agreement, bringing the total compensation to $353,552 for all services.

This was one of the projects for which the city council left funding in place, when it voted on March 3, 2014 to transfer most of the unspent money from the now defunct Percent for Art funding program back to the funds from which the money was originally drawn.

By way of additional background, in early August of 2013, Catherine Widgery of Cambridge, Mass. was recommended as the artist for this public art project. She was picked by a selection panel from four finalists who had submitted proposals for the project, which has a $400,000 total budget. [.pdf of Widgery's original proposal]

The selection panel provided feedback to Widgery and asked that she revise her proposal before it was presented to the Ann Arbor public art commission and then later to the city council for approval. Members of the panel were Wiltrud Simbuerger, Bob Miller, Nancy Leff, David Huntoon and Joss Kiely. [.pdf of panel feedback]

The public art commission recommended the project’s approval at its April 23, 2014 meeting.

An image by artist Catherine Widgery for artwork on the East Stadium bridge. This night view shows how the structures would be lit from below, illuminating the images of trees that are etched into louvered glass panels.

An image of proposed artwork by Catherine Widgery along East Stadium bridge.

An image of proposed artwork by Catherine Widgery along the north side of East Stadium bridge.

An image of proposed artwork by Catherine Widgery along East Stadium bridge.

An image of proposed artwork by Catherine Widgery below East Stadium bridge, along South State Street.

An image of proposed artwork by Catherine Widgery below East Stadium bridge, along South State Street.

A detail of the louvers designed by Catherine Widgery. The etched glass panels will be attached to a metal frame.

Physical Infrastructure: Sewer Lining

The council will be asked to approve the award of a $1,566,121 construction contract with Lanzo Lining Services for the 2014 sewer lining project.

According to the staff memo accompanying this item, the project includes the lining of about 18,028 lineal feet of sanitary sewer and 2,942 lineal feet of storm sewer at 16 locations throughout the city. The memo describes sewer lining as a “trenchless technology which enables the pipe to be repaired without disturbing the surface above.”

Physical Infrastructure: Manholes

As part of its consent agenda, the council will be asked to award a $47,193 contract to Fonson Inc. for the Eighth Street sanitary sewer manhole replacement project.

The manholes in question are described in the staff memo accompanying the project as “101 years old, composed of brick and … disintegrating.” The deterioration of the manholes is attributed to corrosion from sewer gases, vibration from traffic, decades of freeze/thaw cycles and variations in hydrostatic soil pressures. The deteriorated condition includes spalling, weakened mortar, missing bricks and excessive groundwater infiltration, according to the memo.

Physical Infrastructure: Water Main

The council will be asked to award a $1,324,357 construction contract to Douglas N. Higgins Inc. for the Arbor Oaks Phase II water main replacement project.

This project will replace the older water mains in the Bryant neighborhood. The water mains in the neighborhood are described in a staff memo as experiencing frequent breaks and in generally poor condition. The project will install 1,100 feet of 12-inch water main and 2,360 feet of 8-inch water main along Santa Rosa Drive, Jay Lee Court, Lucerne Court, Burlingame Court, Blain Court, Hardyke Court, and Bryant Elementary School property. Included in the project is the resurfacing of the street, replacement of some curb and gutter, and reconstruction of some storm sewer structures.

Physical Infrastructure: Fire Station Restrooms

The council will be asked to approve a $149,500 contract with Emergency Restoration Company for the renovation of restrooms and locker rooms in Fire Stations #3 and #4. The staff memo accompanying the item indicates that the project will renovate the existing restroom facilities to create two unisex restrooms and showers at each station. Facilities and ventilation in the locker room and restroom areas will be improved.

Fire Station #3 is located on the city’s west side, on Jackson Road. Fire Station #4 is located on the city’s southeast side, on Huron Parkway. [Google Map of all five fire station locations]

Physical Infrastructure: Stormwater

The council will be asked to authorize transfer up to $157,264 in funds from the park maintenance and capital improvements millage fund to the stormwater fund – to authorize state revolving fund (SRF) debt payment and loan forgiveness for the stormwater and rain garden components of the skatepark project, located at Veterans Memorial Park.

According to the staff memo accompanying the resolution, a state revolving fund loan is being used to fund the rain garden installation at the skatepark and to reimburse the city’s stormwater fund. Additional stormwater components were approved by the state for 50% loan forgiveness. The transfer of funds that the council is being asked to approve is necessary for the total debt payment of $118,632.00 plus 2% interest over 20 years.

The skatepark is scheduled to have a grand opening on June 21 from 10 a.m. to 6 p.m.

Physical Infrastructure: Wastewater Study

As part of its consent agenda, the council will be asked to approve a $62,800 contract with Black & Veatch Ltd. for a water & wastewater system capital cost recovery study.

Background to this contract is June 3, 2013 city council action to change the calculation of the water and sanitary improvement charges for properties connecting to city water mains or sanitary sewers – but only for a two-year period, from July 1, 2013, through June 30, 2015. The effect of the council’s action was to reduce the connection charges considerably. It was understood at the time that the two-year period would allow for the hiring of a consultant to review the city’s fees and charges for connections to the water and sanitary sewer systems and make recommendations for revision. That’s why the Black & Veatch item appears on the council’s June 16 agenda.

The principles at stake are described in the staff memo accompanying the item as follows:

When making future changes to improvement charges and connection fees, it is important that various competing elements are satisfied. The fees must be easy to explain and easy to understand to be accepted by the users. The fees must recover costs equitably. The fees must not result in either an undue burden on existing rate payers of the systems or an undue burden on new customers connecting to the systems. The fees must be easily understood and neither over recover costs nor under recover costs. Any under-recovery of costs would place undue and inequitable financial burdens on current rate payers. To meet these goals and gain the experiences of other utilities, it is desirable to contract with a consulting firm that has nationwide experience in this area.

Physical Infrastructure: Stormwater Services

As part of its consent agenda, the council will be asked to approve the amendment of a purchase order for stormwater services with the Washtenaw County water resources commissioner.

The request of the council is to increase the amount of the existing contract with the water resources commissioner by $30,000. The existing contract was approved for FY 2011 for $69,215 with a 3% annual increase, which would have put the amount for FY 2014 and FY 2015 at $75,633 and $77,902, respectively. The council is being asked to approve funding at $105,633 and $107,902, for FY 2014 and FY 2015, respectively.

Informational Infrastructure: HR and Payroll Software

The council will be asked to approve a $570,900 contract with NuView Inc. to replace the city’s human resource and payroll system. The staff memo accompanying the item explains why the existing software, acquired in 2007, is being replaced:

In 2007, the City installed a Human Resource and Payroll system called Ultipro, by Ultimate Software. The Ultipro system included modules for Recruiting, Benefits Administration, Human Resource Administration and Payroll. The City has experienced a variety of issues related to the underlying database architecture utilized by Ultimate Software. In addition, due to changes such as new legislative requirements, the increase in recruiting volume and the increase in manual data entry involved in benefits administration, the City has found the Ultipro system unable to meet its Human Resource needs.

Sidewalk/Pedestrians

The council’s agenda features several items related to special-assessed sidewalk construction projects, as well as funding for a pedestrian safety and access task force. Four different special-assessed sidewalk construction projects are on the agenda – two public hearings to be held at the June 16 meeting (for Scio Church and Barton Drive) and two resolutions to set public hearings for future meetings (for Pontiac Trail and Stone School Road).

Sidewalk/Pedestrians: Pontiac Trail Sidewalk

Two resolutions appear on the agenda in connection with construction of a new sidewalk on Pontiac Trail – one to direct the assessor to prepare an assessment roll, and another to set a public hearing on the special assessment for July 21. The assessable cost is $72,218.

According to the staff memo accompanying the resolution, sidewalk construction would be done as part of the reconstruction of Pontiac Trail beginning just north of Skydale Drive to just south of the bridge over M-14. The project will also be adding on-street bike lanes and constructing a new sidewalk along the east side of Pontiac Trail to fill in existing sidewalk gaps and to provide pedestrian access to Olson Park and Dhu Varren Road. That’s a part of the city’s Complete Streets program.

In addition to the sidewalk, approximately 1,960 feet of curb and gutter is being added north of Skydale along Pontiac Trail to protect existing wetland areas. [.pdf of Pontiac Trail sidewalk special assessment area]

Sidewalk/Pedestrians: Stone School Sidewalk

The council has previously directed the preparation of a special assessment roll for a new sidewalk along the west side of Stone School Road. This work will be done in conjunction with the Stone School Road reconstruction project from I-94 to Ellsworth Road. The total sidewalk project cost is roughly $128,500, of which about $55,000 will be special assessed.

So the requested action of the council on June 16 will be to set a public hearing on the special assessment for July 7.

Sidewalk/Pedestrians: Barton Drive Sidewalk – Public Hearing

The sidewalk on Barton Drive would extend eastward from Bandemer Park at Longshore Drive. The cost of the Barton Drive sidewalk has been calculated to be $80,606. Of that, about $36,000 will be paid from federal surface transportation funds. Of the remaining $44,606, the city’s general fund would pay $42,626, leaving just $1,980 to be paid through the special assessment.

The city council had voted at its May 19, 2014 meeting to set the assessment roll and to schedule the public hearing for June 16.

Sidewalk/Pedestrians: Scio Church Sidewalk – Public Hearing

Another public hearing based on previous council action at its May 19 meeting will be held at the June 16 meeting – on the special assessment to fund construction of a sidewalk on Scio Church Road.

For the Scio Church sidewalk project, the total cost is expected to be $365,100. Of that, about $164,000 will be paid from a federal surface transportation grant. The remaining $201,100 will be paid out of the city’s general fund and by the special assessment of just $1,626.

Sidewalk/Pedestrians: Larchmont Traffic Calming

The council will be asked to approve a traffic calming project on Larchmont Drive at a cost of $55,000 $8,800.

Larchmont traffic calming proposal: Three speed humps.

The action includes an appropriation for five other traffic calming projects, totaling $55,000.

The approval of this project comes in the context of the council’s budget deliberations last month, when an amendment was offered but rejected by the council that would have cut the FY 2015 budget allocation for art administration from $80,000 to $40,000 and put the $40,000 is savings toward traffic calming projects. The amendment got support only from Sumi Kailasapathy (Ward 1), Jane Lumm (Ward 2), Jack Eaton (Ward 4), and Mike Anglin (Ward 5).

Traffic calming projects must undergo a neighborhood engagement process in which at least 60% of households support the designed project. In the case of the Larchmont project, 13 out of 15 households supported the project.

Sidewalk/Pedestrians: Pedestrian Task Force Consultant

The council will be asked to approve a $75,000 contract with The Greenway Collaborative Inc. to support the work of the pedestrian safety and access task force as a facilitator.

The task force was established through a council resolution passed on Nov. 18, 2013. Confirmed as members of the task force on Jan. 21, 2014 were: Vivienne Armentrout, Neal Elyakin, Linda Diane Feldt, Jim Rees, Anthony Pinnell, Sarah Pressprich Gryniewicz, Kenneth Clark, Scott Campbell, and Owen Jansson. The group has begun to meet and has elected Feldt to chair the task force.

The resolution on the council’s June 16 meeting agenda comes after the council voted down a resolution at on April 7, 2014 that included a $77,400 contract with Project Innovations for the facilitation work. Project Innovations had been identified by staff as a contractor uniquely qualified to do the facilitation work. Project Innovations was familiar to city staff as the facilitator for a sanitary sewer wet weather evaluation study the city is currently conducting. But subsequently the city issued an RFP (requests for proposals) for the facilitation work. [.pdf of RFP No. 893]

Task force members participated in the selection process from among three respondents to the RFP. Besides Project Innovations and the Greenway Collaborative, ENP & Associates responded to the RFP. ENP is the consultant the city used for the recent review of downtown zoning.

Business Services

On the council’s agenda are two contracts that are approved annually – one for business development services and one for lobbying services.

Business Services: Ann Arbor SPARK

As part of its consent agenda, the council will be asked to approve a $75,000 contract with Ann Arbor SPARK for economic development services. This is an annual contract. At its May 19, 2014 meeting, the council spent roughly five hours of deliberations on amendments to the FY 2015 budget, and just under 30% of that time was spent on two amendments involving SPARK – neither of which were approved by the council.

Ann Arbor city council budget deliberations FY 2015: 4 Hrs 45 Min by amendment topic.

SPARK is also the entity with which the local development finance authority (LDFA) contracts for business accelerator services.

One of the proposed amendments to the FY 2015 budget would have decreased the amount of funding to SPARK from the LDFA, resulting in an increase to the amount the LDFA would have reserved for future infrastructure projects. The second budget amendment debated on May 19 would have eliminated the $75,000 in the FY 2015 budget for the contract the council will be asked to approve as part of its June 16 agenda.

Ann Arbor SPARK also receives money from other governmental units in Washtenaw County. In 2013, the $75,000 paid by the city of Ann Arbor to SPARK accounted for more than half of the $132,888 total contributed by all governmental units besides Washtenaw County. The county levies a tax under Act 88, and out of that levy, last year the county contributed $200,000, according to the information provided to the city by SPARK. [.pdf of 2013 "return on investment" from Ann Arbor SPARK] [.pdf of 2013 Ann Arbor SPARK projects]

Business Services: GCSI Lobbying

As a part of its consent agenda, the council will be asked to approve a $48,000 contract with Governmental Consultant Services Inc. for lobbying services. According to the memo accompanying the item, GCSI has contributed to Ann Arbor’s efforts to increase state funding for fire protection, land-use planning, and parks and recreation projects. GCSI is also supposed to monitor issues currently pending before the legislature and advocate for the city’s specific interests. GCSI has done this kind of work for the city of Arbor since 2001.

GCSI also provides lobbying services for Washtenaw County, as well as other local municipalities. The city’s main liaison with GSCI is Kirk Profit, an Ann Arbor resident and former Michigan state legislator.

Downtown

The council will be handling several items on its June 16 agenda that relate to the Ann Arbor Downtown Development Authority specifically, or the downtown area generally.

Downtown: DDA Budget Amendment

The council will be asked to approve a routine fiscal-year-end budget adjustment for the Ann Arbor DDA. The DDA board approved the adjustment at its June 4, 2014 meeting.

The main part of the adjustment is a $1.6 million payment made for the First & Washington parking garage, which is part of the City Apartments project. The amount was budgeted by the DDA for last year, but not paid until this year.

The rest of the adjustment is attributable to expenditures out of the DDA’s housing fund – $500,000 of it to support Ann Arbor Housing Commission projects. The remaining $37,500 went to support a countywide housing needs assessment – an amount that was approved by the board at the same June 4 meeting in a separate vote.

The DDA will end the fiscal year with $6,167,757 in fund balance. The breakdown of that total is: TIF ($619,571); Housing ($160,154); Parking ($2,161,676) and Parking Maintenance ($3,226,356).

Downtown: Affordable Housing Needs Assessment

The council will be asked to authorize $37,500 from the affordable housing trust fund to support the Washtenaw County housing needs assessment. The Ann Arbor DDA had approved the same amount at its meeting last week, on June 4, 2014.

Money from the city and DDA is being considered as “up to” amounts. Mary Jo Callan, director of the county’s office of economic and community development (OCED), told the DDA board at its June 4 meeting that $75,000 from a HUD Sustainable Communities grant would be the first money spent toward the assessment.

The firm selected by the OCED to do the needs assessment is czb LLC out of Virginia. [.pdf of RFP for the needs assessment] The current needs assessment will update a report done in 2007. According to a memo from OCED staff to the DDA, the final report will “provide a clear, easy to understand assessment of the local housing market, identify current and future housing needs, and provide specific and implementable policy recommendations to advance affordable housing. The goal for this update is to include an analysis that links transportation cost and accessibility, as well as other environmental and quality of life issues to the location of affordable housing.”

The RFP for the needs study describes the timeline for the work as including a draft for review due at the end of October 2014, with a final presentation due in mid-December.

(Not) Downtown: Streetlight LED Conversion

As part of its consent agenda, the council will be asked to approve a purchase agreement with DTE to convert 223 mercury-vapor cobrahead streetlights to LED technology. The up-front cost of the conversion will be $69,555 – but that amount will be reduced to $55,060 after rebates.

The annual electric bill from DTE for the 223 streetlights is currently $45,128. After conversion, the projected annual cost will be $30,910. The savings would result in about a 3.1-year payback period on the net cost of $55,060.

None of the streetlights to be converted are in the DDA district.

Streetlights in the DDA district were part of a similar proposal considered by the DDA board at its May 7, 2014 meeting, but postponed by the board at that meeting until June 4. By the time of the June 4 meeting, however, a decision had already been made that the DDA would not be funding an LED conversion this year. [DTE's program has an annual cycle, but is not necessarily offered every year.] If the DDA board had approved funding for converting lights in the DDA district, it would have affected 212 non-LED streetlights.

Streetlight locations are mapped in the joint Washtenaw County and city of Ann Arbor GIS system. Data available by clicking on icons includes ownership as well as the lighting technology used. This one is a high pressure sodium light operating at 400 watts.

The project the DDA declined to fund this year would have included converting 100 watt MV (mercury vapor), 175 watt MV and 100 watt HPS (high pressure sodium) lights to 65 watt LED (light emitting diode). Further, 400 watt MV and 250 watt HPS lights would have been converted to 135 watt LED. Finally, 1000 watt MV and 400 watt HPS lights would have been converted to 280 watt LED.

Currently, the city pays DTE $72,585 a year for the energy used by the 212 downtown streetlights. After conversion, the annual cost for the 212 lights would be expected to drop to $51,895, for an annual savings of $20,690.

In deliberations at the DDA board’s May 7 meeting, DDA board member Roger Hewitt opposed the grant, because the savings that would be realized accrues to the city of Ann Arbor, which pays the energy bills for the lights. Hewitt noted that the relationship between the city and the DDA includes a number of fund transfers to the city. Even though the amount is not huge, Hewitt said, the expenditure of several small amounts could eventually impair the DDA’s ability to pay for major infrastructure improvements.

Other board members joined Hewitt in their concerns, questioning what projects might be sacrificed if the DDA paid for the LED conversion. Concern was also expressed over the possibility that the result of a streetscape framework planning effort could result in a decision to replace all cobrahead lights in the downtown area with pedestrian-scale lampposts. And that would mean that the new LED fixtures would be used for only a short while.

Downtown: Zoning, Character District

The council will be asked to give initial approval to changes in two parts of the zoning code affecting the parcel at 425 S. Main, on the southeast corner of Main and William streets. Because these would be changes to the zoning code, which is expressed in city ordinances, any council action that might be taken would need a second and final vote at a future meeting, in order to be enacted.

Aerial view of 425 S. Main – outlined in green – between William and Packard. An alley separates the site from a residential neighborhood along South Fourth Avenue.

Currently, a two-story 63,150-square-foot office building – where DTE offices are located – stands on the southern part of that site, with a surface parking lot on the north portion. [.pdf of staff memo on 425 S. Main rezoning]

To be considered separately by the city council are votes that would: (1) change the zoning of the parcel from D1 (downtown core base district) to D2 (downtown interface base district); and (2) change the character overlay district, of which the parcel is a part, to increase the D2 height limit from 60 feet to 100 feet. Assuming the zoning change is made for the parcel at 425 S. Main, it would be the only D2 parcel in the character district. The changes to the character overlay district also include upper story setbacks from any residential property. [.pdf of staff memo on overlay district]

The planning commission recommended both the changes at its May 6, 2014 meeting. The planning commission’s vote on the basic zoning change was unanimous – 9-0. But the vote on the 100-foot height limit was only 6-3, with dissent coming from Sabra Briere, Ken Clein and Jeremy Peters. Briere also serves on city council, representing Ward 1.

Both recommendations had been brought forward by the commission’s ordinance revisions committee (ORC). Members are Bonnie Bona, Diane Giannola, Kirk Westphal and Wendy Woods.

The planning commission’s recommendations came in response to a city council directive given at its Jan. 21, 2014 meeting, which had been based on previous work the planning commission had done. The commission had studied and developed a broader set of eight recommendations for zoning changes in specific parts of the downtown. The overall intent was in large part to buffer near-downtown residential neighborhoods. The commission had unanimously approved those original recommendations at its Dec. 3, 2013 meeting.

Those initial Dec. 3, 2013 recommendations from the planning commission had come in response to a previous direction from the city council, given at the council’s April 1, 2013 meeting. The council’s action in early 2013 came in response to the controversial 413 E. Huron development. The items on the council’s June 16, 2014 agenda are just the first of what are expected to be several other changes recommended by the planning commission.

That set of initial recommendations from the planning commission to the city council – which the council then accepted and for which the council asked the planning commission to draft ordinance language – included a proposal to rezone 425 S. Main to D2. However, those original recommendations had also called for a maximum height of 60 feet for D2 zoning in the Main Street character overlay district – lower than the 100 feet put forward at the commission’s May 6 meeting. The site’s current zoning allows for a maximum height of 180 feet. The previous zoning, prior to 2009, set no limits on height.

At this time, no new development has been proposed for this site.

Downtown: Hotel Site Plan

The city council will be asked to approve the site plan for First Martin’s proposed extended-stay hotel at 116-120 West Huron Street. The planning commission gave a recommendation of approval at its May 20, 2014 meeting.

Rendering of proposed hotel at the northeast corner of West Huron and Ashley. The One North Main building is visible to the east.

The proposal calls for a six-floor, 88,570-square-foot building with a ground-floor restaurant or retail space and an extended-stay hotel on the upper five levels. The hotel will be operated by Marriott.

The current site at 116-120 W. Huron includes a Greyhound bus depot and a one-story building that houses the Ann Arbor Convention & Visitors Bureau. Both of those buildings will be demolished. The bus depot facade will remain in place as part of the new building’s design. [.pdf of staff report]

The main hotel entrance is proposed for the building’s west side, facing North Ashley, while the main entrance for the restaurant or retail space is proposed to face West Huron, on the building’s south side. The site is zoned D1, which allows for the highest density development in the downtown. According to the staff memo, five off-street parking spaces are required. First Martin has secured a letter of commitment from Zipcar, a car-sharing service, for two vehicles. Parking spaces for those cars are proposed at the northeast corner of the site. For purposes of the city’s parking requirement, the two Zipcars would count as eight off-street parking spaces, and would satisfy the requirement.

The two existing curbcuts – on North Ashley and West Huron – will be closed, and access to the two parking spaces, loading dock and trash/recycling would be from the mid-block alley to the north. The alley is currently one-way, and will be converted to a two-way alley and repaved.

The current site at 116-120 W. Huron, looking north. One North Main is the building on the right. The city’s Ann Ashley parking structure is visible in the background.

Streetscape changes will include curb bump-outs on North Ashley, on the north and south ends of the site for passenger drop-off.

Nine bicycle parking spaces are required for the project, and would include two bike hoops in the North Ashley right-of-way and two in the West Huron right-of-way, for a total of eight bike spaces. Three more hoops are proposed for the Ann Ashley parking structure, with First Martin paying for labor and materials. The city of Ann Arbor and Downtown Development Authority would assume responsibility for maintenance of those hoops.

Construction is estimated to cost $13 million.

In giving the staff report to the planning commission, city planner Alexis DiLeo noted that the Greyhound bus depot has been at that location since 1940, and the site has been a transportation hub since 1898.

Downtown: Bank of Ann Arbor Site Plan

The city council will be asked to approve the site plan for an addition to the Bank of Ann Arbor headquarters at 125 South Fifth Avenue. The planning commission recommended approval of the project at its May 20, 2014 meeting.

Bank of Ann Arbor building at the northeast corner of South Fifth and East Washington. The proposed renovations will create a “tower” entrance into the building at this corner.

The site plan involves reorienting the main entrance – moving it from the center of its South Fifth Avenue side to the southeast corner of South Fifth and East Washington. Existing doors will be replaced with windows. A 9,179-square-foot third-floor addition would be constructed over the rear of the building’s east side. In total, the building would be 32,651 square feet after construction. The project is estimated to cost $4.2 million. [.pdf of staff memo]

According to the staff memo, the design “seeks to transform the current style from contemporary to traditional by replacing the yellow brick façade with brown and red-colored bricks and limestone-colored stone accents and trim and creating a brick and glass tower at the street corner to create a prominent entry.” The original two-story building was constructed in 1965, which included the drive-thru window. An addition was completed in 1999.

The project was evaluated by the city’s design review board on Jan. 14. The board suggested making the entry structure taller and more closely aligning the bank’s design features with those of the adjacent Ameritech building to the east.

The site is zoned D1, which allows for the highest level of density in the downtown area.

D1 zoning requires a special exception use for drive-thrus, which the planning commission considered on May 20 in a separate vote. Because the project is going through a site plan approval process, the requirement for a special exception use was triggered. Special exception uses do not require additional city council approval. The bank has an existing drive-thru teller window on its north side. No changes are planned to that configuration, however.

In giving the staff report to the planning commission, city planner Alexis DiLeo said if the drive-thru were used more frequently, staff might suggest additional design features, like a more clearly marked crossing or differentiated surface materials. But because there are only 20-25 transactions per day at the drive-thru, and given the “successful history” of the existing drive-thru, staff was comfortable with it remaining as is, DiLeo said.

Modifications to drive-thru regulations are in the works, but not yet enacted. The planning commission approved new drive-thru regulations earlier this year. Amendments to Ann Arbor’s zoning ordinance related to drive-thrus received initial approval at the council’s May 5, 2014 meeting, and received final approval at the council’s June 2, 2014 meeting.

Downtown: Liberty Plaza

Mayor John Hieftje and Christopher Taylor (Ward 3) are sponsoring a resolution that would direct the city administrator to “work collaboratively with the property owners adjacent to and near Liberty Plaza, the general public, PAC [park advisory commission], the Ann Arbor District Library, and the DDA to develop a conceptual design for an improved Liberty Plaza…”

Funding for the collaborative work in the amount of $23,577 would come from the parks and recreation budget. In addition to a concept for a “re-imagined Liberty Plaza,” the effort is supposed to result in options for funding construction, to be provided by city staff. A report is to be provided to the park advisory commission by December 2014 and to the city council a month later in January 2015.

This resolution comes in the context of a push by some Ann Arbor residents to establish public park space on top of the underground Library Lane parking garage, which is southwest of Liberty Plaza separated from that park by a surface parking lot owned by First Martin Corp. Related to that, the council voted at its April 7, 2014 meeting – as part of reconsidering a vote it had taken at its previous meeting on March 17 – to designate a 12,000-square-foot portion of the Library Lane surface to be reserved as an urban park.

The result of the reconsidered resolution on April 7 undid the council’s earlier decision to establish a square foot range for the urban plaza – from 6,500-12,000 square feet. That April 7 council decision was made on a 7-4 vote, with dissent from Taylor, Hieftje, Margie Teall (Ward 4) and Chuck Warpehoski (Ward 5).

Courts Human Services

On the council’s June 16 agenda are several items related to the criminal justice system, specifically for some of the specialty courts operated by the 15th District Court.

As part of its consent agenda, the council will be asked to approve an amendment to a $76,242 contract with Washtenaw County Community Support & Treatment Services – for mental health treatment services to people who are participating in the sobriety court and the mental health court. Also on the consent agenda, the council will be asked to approve a $44,200 amendment to a contract with the Washtenaw County sheriff’s office to provide drug abuse screening and monitoring services for the mental health court.

The council will be asked to approve a $108,174 amendment to a contract with the nonprofit Dawn Farm for drug abuse counseling and rehabilitative services. And finally, the consent agenda includes a resolution for a $40,000 amendment to a contract with Reiser and Frushour PLLC to provide legal representation as court-appointed counsel to indigent defendants.

Recycling

The council’s June 16 agenda includes three items related to recycling.

Recycling: RAA Multifamily Pilot

The council will be asked to approve a two-year $95,694 contract with Recycle Ann Arbor for a recycling incentive program for multi-family residential units.

This item is based on the city’s solid waste plan, which the city council adopted at its Oct. 7, 2013 meeting. The plan includes evaluating methods to increase recycling participation through pilot programs. Among those methods is the introduction of a recycling incentive program for multi‐family housing units.

According to the staff memo accompanying this item, a manual sort of waste conducted in the fall of 2012 found that only 12% of the trash that single-family residents threw away was recyclable, compared to 26% of the trash that multi-family residents threw away.

The completion of the pilot program is expected in December 2016.

According to the memo, Recycle Ann Arbor’s proposal includes:

1. Gather information on best multi-family recycling practices in North America.
2. Survey and/or interview key multi-family constituencies in Ann Arbor to better understand the challenges and opportunities for recycling in this sector. Based on feedback received, develop 3 to 5 methodologies for further testing and analysis.
3. Identify pilot parameters and measurement protocols.
4. Identify pilot communities to involve in the pilot programs (ultimately targeting approximately 1,000 units) and ramp up pilot start-up.
5. Implement pilot programs.
6. Analyze results of pilot programs.
7. Provide detailed recommendations to the City on best practices and report results to participating multi-family communities.

Methodologies that will be tested as part of the pilot will include the following:

• Recycling rewards program: Evaluate if a recycling rewards program would be effective in improving recycling participation rates in multi-family locations
• Indoor collection bins: Most multi-family locations share outdoor recycling bins. Determine if the provision of indoor recycling bins would help increase recycling rates.
• Multi-family recycling leader program: Determine if the use of recycling leaders at individual locations would help increase recycling rates.
• 300-gallon recycling cart: Determine if the use of 300-gallon carts instead of the standard 96-gallon cart would help increase recycling.

Recycling: Baler Infeed Conveyor Repair

The council will be asked to approve a $39,480 reimbursement to Resource Recovery Systems – the city’s contracted operator of its materials recovery facility (MRF) – for repair of the baler infeed conveyor belt.

According to a staff memo accompanying the item, the belt was last replaced in 2007, and has worn out. Such conveyors are described in the memo as lasting five to seven years.

Recycling: RAA Student Move-out Services

As part of its consent agenda, the council will be asked to approve a $35,000 annual contract with Recycle Ann Arbor for services associated with the move-out of University of Michigan students.

According to the staff memo on the item, RAA’s proposal includes a staffed drop-off location at the corner of Tappan and Oakland streets during student fall and spring move-out periods. The site is also used to collect reusable items (through organizations such as the Salvation Army, Kiwanis, or the Reuse Center), bulky metal items, and recyclable materials.

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The Transportation Investment Generating Economic Recovery (TIGER) grant is available through the National Infrastructure Investments Program of the U.S. Department of Transportation. SPARK asked that the county’s office of community & economic development (OCED) act as the lead applicant and fiscal agent. OCED already submitted the grant application – on April 25, 2014. According to a staff memo, “due to the grant application deadline, it was not possible to bring the matter before the [board of commissioners] for approval prior to application submission.”

At its May 21, 2014 meeting, the county board of commissioners took an initial vote to authorize the county’s involvement, with final action expected on June 4. The project is a partnership with SPARK, the University of Michigan, the redevelopment firm Walbridge Aldinger and Ypsilanti Township, among others. According to a staff memo, the facility could lead to the creation of up to 7,800 new jobs in the skilled trades and research sectors. [.pdf of staff memo and resolution]

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

The meeting and the letter came after SPARK had declined several previous requests for its financial statements – from rank-and-file residents, journalists as well as elected officials. SPARK’s previous decision not to release past statements became moot when Ann Arbor resident Kai Petainen received the past records on request from the state of Michigan Attorney General’s office.

Ann Arbor SPARK contracts with the city’s local development finance authority – an entity that’s funded through tax increment financing (TIF) – to operate a business accelerator. SPARK also receives grants from several public bodies, including the city of Ann Arbor and Washtenaw County. [.pdf of SPARK's 2006-10 audited statements]

Based on Krutko’s letter, it now appears that SPARK will itself be providing past as well as future financial statements on its own website.

Krutko’s letter was included in a message that Rabhi sent to an online group – called “aa better local politix” – with a positive update on what he described as his efforts to increase SPARK’s financial transparency. Rabhi described the Nov. 25 SPARK board meeting as tense, but was positive about the nature of the board’s conversation and the outcome. From Rabhi’s message:

By the end of the meeting, staff were empowered by the board to develop a comprehensive recommendation on how to move forward and to begin with initial implementation. In my perception, staff actually seemed energized by the way in which I framed up the issue and the ensuing discussion at the board table.

Krutko’s letter to Rabhi and Powers cites specific steps that SPARK will now be taking:

• We have posted our most recent financials on our website.
• We are developing a “Frequently Asked Questions About SPARK” summary to be posted on our website.
• We are preparing to post our 2013 Financial Statements upon completion by our Auditors in Spring 2014.
• We are requesting your help in being placed on an upcoming Board of Commissioners and City Council agenda at that time to answer any questions in these public forums about our financial statements.
• We will develop a Use of Funds Quarterly Report to elected officials, on activities supported by public funding provided to SPARK.
• As we have done in the past, we will continue to respond to specific questions from elected officials at any time.

[.pdf of Dec. 4, 2013 letter from Ann Arbor SPARK's Paul Krutko] [.pdf of Dec. 4, 2013 message from Yousef Rabhi]

The two items appeared on the council’s consent agenda and were approved as a part of it. Items on the consent agenda are considered routine, and include contracts for less than $100,000.

The contact with the economic development agency Ann Arbor SPARK is one that has been renewed annually since the Washtenaw Development Council and Ann Arbor SPARK merged in 2006. Previously, Ann Arbor had contracted with the WDC for the business support services for which it now contracts with SPARK. On June 20, 2005, the city council authorized that one-year contract with WDC for $40,000. The resolution authorizing the $75,000 contract with SPARK again this year describes the organization’s focus as “building our innovation-focused community through continual proactive support of entrepreneurs, regional businesses, university tech transfer offices, and networking organizations.”

Ann Arbor SPARK is also the contractor hired by the city’s local development finance authority (LDFA), to operate a business accelerator for the city’s SmartZone, one of 11 such districts established in the early 2000s by the Michigan Economic Development Corp. (MEDC). The SmartZone is funded by a tax increment finance (TIF) mechanism, for a TIF district consisting of the union of the Ann Arbor and Ypsilanti Downtown Development Authority districts.

Revenue is generated only in Ann Arbor’s district, and the LDFA is a component unit of the city’s budget. In the FY 2014 budget, the LDFA is expected to receive $1,655,647 in revenue. The specific taxes on which the increment since 2002 is captured are the school operating and state education taxes, which would otherwise be sent to the state and then redistributed back to local school districts.

GCSI’s Kirk Profit, a former member of the state House of Representatives, typically makes an annual presentation to the council with an update on state-level legislative issues relevant to the city’s budget situation. Written updates to councilmembers on legislative activity are sent on a weekly or daily basis.

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

From left: Councilmember Tony Derezinski (Ward 2) and 618 S. Main developer Dan Ketelaar at the June 18, 2012 Ann Arbor city council meeting. (Photos by the writer.)

The council debated but ultimately approved both the site plan and the brownfield plan for the 618 S. Main project – an apartment complex that Dan Ketelaar’s Urban Group Development Co. intends to market to young professionals. The 7-story building would include 190 units for 231 bedrooms, plus two levels of parking for 121 vehicles. The project had received a recommendation for approval from the city planning commission on Jan. 19, 2012.

The project’s approval meant that the council granted a variance in the height allowed in the D2 (downtown interface) zoning district – 85 feet, which is 25 feet taller than the 60-foot limit allowed in D2. The majority of councilmembers felt that the project reflected a months-long positive collaboration by the developer with neighbors and with the Ann Arbor Downtown Development Authority, which approved a $650,000 grant to complement the $3.7 million brownfield plan.

The project was opposed by Stephen Kunselman (Ward 3), who essentially indicated he did not trust Ketelaar and other “speculators.” Kunselman also seemed unconvinced of the environmental benefits of the project. Mike Anglin (Ward 5) joined Kunselman in voting against the site plan and the brownfield plan. Both votes were 8-2 – Sandi Smith (Ward 1) was absent from the 11-member council.

In other business, the council made an adjustment to the current fiscal 2012 budget just before the fiscal year ends on June 30, to ensure that the city conforms with the state statute on uniform budgeting and accounting. The adjustment to the city’s general fund allowed for $1.3 million in additional expenses. Despite that, CFO Tom Crawford said he felt the city would end the year around “break even.”

The council also took action to allocate $1,244,629 to different nonprofits that provide human services. The amount was set as part of the FY 2013 budget, which the city council approved on May 22, 2012.

The council also authorized around $1.5 million for new dump trucks – with stainless steel parts to ensure a longer life than the vehicles they are replacing. And councilmembers approved a roughly $800,000 contract for a five-phase study to analyze stormwater in the city.

Other expenses authorized by the council included a $48,000 annual contract renewal with Governmental Consultant Services Inc., the city’s lobbyist in Lansing, and a $75,000 contract with Ann Arbor SPARK, the area’s economic development agency.

Also at the council’s meeting, nominations for three commissions were floated, to be voted on at the next meeting: Ken Clein for the planning commission; John German for the environmental commission; and Archer Christian for the greenbelt advisory commission.

618 S. Main

In separate items, the city council considered a site plan and the brownfield development financing for the 618 S. Main project.

618 S. Main: Background

The 618 S. Main project is an apartment complex that developer Dan Ketelaar intends to market to young professionals. The 7-story building would include 190 units for 231 bedrooms, plus two levels of parking for 121 vehicles. The project had received approval from the city planning commission on Jan. 19, 2012.

At 85-feet tall, the project is 25 feet higher than permitted in the D2 (downtown interface) zoning district where the site is located. So it was submitted as a “planned project” – a provision in the zoning code that allows some flexibility in height or setbacks, in exchange for public benefits.

A planned project is not the same thing as a planned unit development (PUD), which allows for significant variance from the existing zoning by actually changing the zoning on a parcel. Among the public benefits cited for 618 S. Main is a rain garden system for stormwater infiltration, which is expected to reduce stormwater volume in the city’s piped system (as required by code), but would also result in cleaner flow.

The project borders the Old West Side historic district – and the board of the Old West Side Association submitted a letter of support for the development.

The proposed brownfield tax increment finance (TIF) plan works in concert with a $650,000 TIF grant (paid over a period of four years) awarded by the Ann Arbor Downtown Development Authority board at its June 6, 2012 meeting. Both the brownfield TIF and the DDA TIF grant work in a similar way: The developer must build the project and pay the new taxes on the project. After that, the developer receives reimbursement for eligible expenses.

The DDA’s grant covers work in the following categories: streetscape improvement costs; a rain garden to infiltrate stormwater, as opposed to detention-and-release; and upsizing a water main. Work covered by the brownfield plan includes: site investigations for characterization of soils and dewatering if water is encountered during excavation; disposal of soils; demolition of buildings and removal of existing site improvements; lead and asbestos abatement; infrastructure improvements like water, storm sewer and sanitary sewer upgrades, street repair and improvements to streets; and site preparation like staking, geotechnical engineering, clearing and grubbing.

The brownfield plan includes reimbursements to the developer of $3.7 million over 21 years. The city’s financial analysis puts the rate of return to the developer on his investment at between 5.81% and 6.13%. The city’s analysis concludes that the rates of return are below previously-approved brownfield plans. A risk identified in the city’s analysis is the fact that, based on the financial pro forma submitted by the developer, the return to the developer is low. [.pdf of the TIF analysis]

The city council’s brownfield review committee – Sandi Smith (Ward 1), Stephen Kunselman (Ward 3) and Marcia Higgins (Ward 4) – had given the 618 S. Main project a 3-0 vote recommending the city council’s approval of the plan.

618 S. Main: Public Hearing

Several people spoke at the public hearing on the site plan.

Barbara Hall introduced herself as representing the board of the Old West Side Association. Members of the OWS board are pleased to have participated in several months of productive discussion about the 618 S. Main project, she said. All aspects of the final design reflect input made during that process. The project gives the Main Street side an industrial facade, but uses a rain garden to buffer the impact on the other side, abutting the neighborhood.

An alliance of groups – from downtown neighborhoods, to the Ann Arbor Downtown Development Authority, the city’s design review board and the planning commission – have agreed that 618 S. Main is worth their support, Hall said. For the OWS board, the project as now presented offers a number benefits as compared to the strict D2 zoning. The benefits don’t completely offset the loss of locations for three long-standing businesses, she said. But she hoped that a large residential presence will re-invigorate existing retail business and spur additional businesses – like a grocery store. The OSW board sees the building as a gateway and urges approval of this opportunity for housing near the center of the city, Hall concluded.

Thomas Partridge expressed opposition to the project. As he understood the project, Partridge said, it includes no connection to a commitment to affordable housing – not even a single apartment. He urged reconsideration of the project as an affordable housing project.

Rita Mitchell introduced herself as a Fifth Street resident. She said she appreciates living in the Old West Side historic district – which is a great place to live, she said. She also appreciates the work of the OWS board, which has done a lot of work in connection with the 618 S. Main project. However, she was not sure the OWS board’s work represents all the people in the area – so she would speak for herself, Mitchell said. As presented, she noted, the 618 S. Main project requests a variance from the newly established D2 zoning – two stories taller than what the D2 zoning would allow. Immediately next to the building are one- and two-story buildings, Mitchell said. A 7-story building would create an out-of-character wall towering over the other buildings. Why would the council spend the time that had been invested to complete the A2D2 downtown rezoning process, only to approve a non-conforming project? she asked.

Mitchell said the developer appeared to have made a threat to build a worse alternative that could comply with the D2 zoning – the kind of approach that had led to City Place. [City Place is a controversial apartment project being built on South Fifth Avenue.] It’s an approach where a developer drives the agenda, she said. People feel compelled to agree, for fear of a worse outcome. Mitchell also questioned the value of the brownfield financial plan. She asked the council to vote no on the site plan and to return to the A2D2 process, to review and revise the downtown zoning again, so that effective step-downs are provided between downtown and neighborhoods.

Mike Siegel, associate principal of VOA Associates, a Chicago architecture firm, introduced himself as the project architect. He told the council that the project team had explored several schemes that were “by right” zoning. The distribution of the “building program” was lot-line-to-lot-line, from Ashley Street to Main Street down to Mosley Street, with a small courtyard in the middle. The building was 60 feet tall [the maximum height for D2 zoning] with some articulation architecturally along the streetwall.

Siegel said the project team was not really sure that “by right” approach was the right solution for the surrounding context. It’s a dynamic site from one side to the other, and it’s a transitional site, he said. So the team approached the city’s planning staff and had some conversations about how to deal with the issue. Planning staff suggested that with the “planned project” approach, there would be more flexibility for distributing the massing of the building – but there would need to be public benefits. In response to that suggestion, Siegel said three design schemes had been developed. To guide which of the three schemes would be pursued, the team had invited the community to a series of meetings, including local businesses. [For Chronicle coverage of one of those meetings held in November of 2011, see: "Public Gets View of 618 S. Main Project."]

A dialogue had been started, Siegel said. The community guided the shifting of the massing from Ashley Street to Main Street. Additional parking was requested, so an additional story of parking was added. The community asked that parking entries be divided on both side of the site, and that had been done, he said. The community wanted an enhanced pedestrian experience on Main Street, he said, so the building had been set back five feet to accommodate that. As the project went along, the team had appeared before the city’s design review board (DRB). The DRB was interested in the articulation of the streetwall. Out of that DRB conversation a tower element had been developed on the corner of Main and Mosley.

Shannan Gibb-Randall introduced herself as the project’s landscape architect. She’s with Insite Design Studio, an Ann Arbor firm. Gibb-Randall explained the concept of the rain garden, which she said could have been surface parking. But the team felt it had the potential to be something better. So the courtyard was created as an amenity for the people who will live in the building. But it’s also a great way to handle stormwater on the site in a sustainable way. She described it as the “back yard” for future residents of the building. Currently the site where the project is planned is 100% impervious, which means that every drop of rain runs into the Allen Creek and on into the Huron River.

Gibb-Randall explained that the rain garden will act as a sponge, with three feet of special soils and native plantings that are good at absorbing water. Anything that doesn’t get absorbed is connected to the sand seam layer, which is about nine feet down. So the stormwater will not travel through the city’s piped stormwater system. The site will be connected “just in case,” but a 100-year storm will infiltrate, she assured the council. The project would remove an acre of impervious surface that leads to Allen Creek, she said. She indicated that the project team hopes this approach will be a catalyst for other projects in downtown to do the same, which is possible because the downtown “sits on a pile of sand.”

Gibb-Randall also commented on the Main Street side of the building. The building has been pushed back, she said, which increases the 9-foot-wide sidewalk to a 14-foot-wide sidewalk. She also pointed to the densely planted area on the Mosley side of the building.

Dan Ketelaar, president of Urban Group Development Co., described the process as “surprisingly enjoyable.” He described the review process of the city’s design review board as working perfectly. The result shows how when people work together, you get something better than what you start with, he said.

The D2 is intended as a buffer between the downtown and the neighborhoods, he said. How do you do that, when one side is residential and one side is the downtown community? The project strives to do that in the best way it can, he said, and he felt like it had been successful. He described the process as difficult, but felt the community had enjoyed the process too.

Ketelaar stressed that 618 S. Main is not a student housing project, but rather it’s designed for young professionals. Of the units, 37% are studios, and 37% are one-bedroom units. The remainder are two-bedroom units. The amenities are meant to appeal to a young professional group – features like meeting rooms and lounge areas. The apartments are small, but with large common areas, so that residents can get together and spend time together, he said. It’s within walking distance to downtown, he said, and includes 120 parking spaces, which is twice the number required.

Ketelaar said the project team has tried to be as responsible as they know how to be. He felt that the project meets the requirement for a “planned project” outlined in the city code.

John Byl, an attorney with Warner Norcross & Judd LLP, told the council he was a brownfield specialist, and has been working on that aspect of the project. He was there and available to answer any questions about that aspect of the project, he said.

Ray Detter spoke on behalf of the downtown citizens advisory council. He said that CAC strongly supports the position of the Old West Side Association. He noted that 618 S. Main was unanimously approved by the planning commission. He pointed to the additional housing units. He allowed that the project exceeds the D2 height limit, but noted that as a “planned project” it provides commensurate benefit.

Dick Carlisle of Carlisle/Wortman Associates introduced himself as an owner and tenant of the South Main Market, located across Main Street from the proposed 618 S. Main project. He said he was very supportive of the project. He said that he and the other partners of South Main Market had achieved 100% occupancy of the market, but that’s because they’d invested a lot and worked hard at it. With any project as dense as 618 S. Main, there’ll be issues, he said, but he’s satisfied that they can work with this project. As one of the closest neighbors of the project, he said, they’re very supportive and hope it will get the city council’s support, too.

618 S. Main Site Plan: Council Deliberations–Bona fides

The council’s deliberations included a range of claims to connections to the neighborhood, which are extracted from this report’s summary of deliberations.

Mayor John Hieftje stated that he grew up in that neighborhood and that friends of the Fox family [owners of the former Fox Tent and Awning, which had been located on the 618 S. Main site] were friends of his family.

Sabra Briere (Ward 1) said she used to live next to the Washtenaw Dairy. [The popular shop is located less than a block away from the proposed project, at Madison and Ashley.] The Old West Side was her home for over a decade, Briere said. She bought Christmas trees at the lot where Fox Tent and Awning was located – because it was easy for her and her little boy to carry them home.

Stephen Kunselman (Ward 3) said he’d live in the Old West Side for half of his adult life, so he had a strong affinity for the neighborhood.

Carsten Hohnke (Ward 5) stated that as long as others had put their bona fides on the table, he wanted to mention that he used to work at Washtenaw Dairy: “So I see your living in the neighborhood, and [raise you a worked-at-the-dairy] …” The remark elicited laughs around the table.

618 S. Main Site Plan: Council Deliberations

Carsten Hohnke (Ward 5) led off deliberations by picking up on one of the comments made by Rita Mitchell during public commentary. He asked planning manager Wendy Rampson for the city staff’s perspective on the idea that the accommodation for the extra height – 85 feet compared to 60 feet – is a reflection that the A2D2 downtown rezoning process did not get the specific regulations for D2 exactly right.

Rampson responded to Hohnke by describing D2 as a wide-ranging district that interacts with neighborhoods in a variety of ways. She noted that on the other side of Ashley from the project site is a historic district (Old West Side) and the buildings in the historic district aren’t likely to expand in the same way as 618 S. Main. But she pointed out that those properties [including the Washtenaw Dairy] are zoned C2B (commercial).

Rampson also pointed out that originally there was no height limit for the proposed downtown districts, but the city council had felt it was important to include height limits. She noted that the 618 S. Main project is not using the full premium available in the D2 district – which would allow up to 400% FAR (floor-area ratio). The 618 S. Main project has a FAR of 355%. It was envisioned, Rampson said, that in some places it would be desirable to push a building to one side or another, and that would result in pushing the building taller.

Hohnke confirmed with Rampson that the site of the project itself was not in a historic district.

Hohnke then asked Rampson to summarize the public benefits of the project. Rampson mentioned that by increasing the height along Main Street, the setback on Ashley is increased. Hohnke also asked about streetscape improvements. Rampson indicated that she couldn’t speak to that, because that had been added after the project had been voted on by the planning commission. Hohnke indicated that he was content to leave that issue aside until the discussion of the brownfield plan.

View from the southeast of the 618 S. Main parcel.

Mayor John Hieftje indicated that the site had looked the same way for decades – but right now, it’s a parking lot encircled by a fence. Normally, he said, he’s not in favor of planned projects. But he appreciated the way the developer has worked with the community and with the design review board. Hieftje said he was moved by the fact that the project has met with approval at every stage. There seems to be a great deal of support for it, he said. The project deviates from the height limitation of D2 zoning, he noted, but provides public benefits.

Hieftje said he’s not troubled by the lack of retail in the project, because there’s plenty of retail across the street. He joked that building the 618 S. Main project might mean that people have to wait a little longer for an ice cream cone at Washtenaw Dairy [which is located at the southwest corner of Madison and Ashley, down the street from the 618 S. Main site].

Mike Anglin (Ward 5) noted that D2 was established for areas close to residential neighborhoods. The height limit of 60 feet seemed appropriate to provide a kind of transition from downtown to residential he said. But the proposed 618 S. Main project is 40% higher than the D2 zoning’s 60-foot height limit. He contended that it’s the first projected presented in a D2-zoned area, since the A2D2 zoning was approved. [As Sabra Briere (Ward 1) would point out later in the meeting, the Zingerman's Deli expansion, approved by the city council at its July 19, 2010 meeting, was also located in a D2-zoned area.]

Anglin mentioned that it’s the block where Washtenaw Dairy is located. The site is a prime area to develop, he said. During the public engagement process, he said, a lot was achieved, but not much was ever said about the 60-foot height limit. Anglin expressed an objection to the presentation of a building design at one of the early public meetings that was 60-feet tall, conforming to the zoning – with the subsequent conversation focused on the idea that the design was not very good, but could be made better, by making it taller. Anglin characterized that approach as a game of changing rules for each new player.

The D2 zoning district is supposed to be a transition into neighborhoods, Anglin said. The 60-foot height limit was determined by looking at what was currently close to neighborhoods and found that it averaged 60 feet, which fit in quite nicely, he said. He gave Liberty Lofts, a former factory at Liberty and First that was converted into condominiums, as an example.

Councilmember Mike Anglin (Ward 5).

As for community input, Anglin said, he characterized it as “organizational input,” but when someone at a public meeting raised the issue of height, Anglin contended, that was put aside very quickly. Anglin reported receiving a note from someone who attended a meeting – someone that Anglin characterized as an intelligent person who owns his own business. The gist of the note was that the ability to make the building taller and the support through brownfield financing reflected “double-dipping.” Anglin indicated that people are confused by the process of inviting development and paying for it. He did commend the architect and the developer for their work on the project.

Sabra Briere (Ward 1) said it was not often that she found herself in opposition to statements Anglin made about development.

At a recent meeting of the Ann Arbor DDA, Briere had run into an old neighbor from the time when she lived in the area of the 618 S. Main project. And she asked her former neighbor on Mosley how she felt about the project. When it was first proposed, Briere reported, her former neighbor said she was not happy. But now she said it’s really amazing and she thinks it’ll be good for the neighborhood.

Because her former neighborhood is not the most liberal or conservative person in town, Briere had listened carefully to what she’d said. Briere also pointed out that 618 S. Main is the second project to be proposed in a D2 zone, not the first, as Anglin had said. The first had been the Zingerman’s Deli expansion, which Briere said was easy to forget – because the Zingerman’s project was not residential and not very controversial.

Briere said she’d met with Ketelaar the previous week and had reflected on her own reservations about the project. The benefit of a “planned project” is that the accommodations that can be made can’t result in a greater number of units – that is, it can’t be denser.

By way of background, the relevant section of the city code on “planned projects” to which Briere was alluding reads as follows:

A planned project shall maintain the permitted uses and requirements for maximum density, maximum floor area and minimum usable open space specified in this Chapter for the zoning district(s) in which the proposed planned project is located.

Briere noted that in the course of the several public meetings and the city’s approval process, the project was amended over and over. She concluded that she supported the project.

Tony Derezinski (Ward 2) said he watched the project as it was considered by a number of bodies that he sits on – the planning commission as well at the DDA partnerships committee. He allowed that the D2 zoning “was on our minds.” He described the project as an “incredible piece of work” and said it was gratifying to see the very collaborative process. He characterized the 618 S. Main project as tall only on one side – and on the residential side, it’s short, he said.

Margie Teall (Ward 4) called the “planned project” approach a tool that should be used cautiously – but concluded that in the case of 618 S. Main, it had been used beautifully.

Marcia Higgins (Ward 4) ventured that the outcome of the A2D2 downtown rezoning process was that “we got D2 right.” The result of the D2 zoning, the design review board, and the planned project status allowed it to come together as an extraordinary project, she said.

Councilmembers Jane Lumm (Ward 2) and Christopher Taylor (Ward 3).

Jane Lumm (Ward 2) expressed her appreciation for all the work than had gone into developing the A2D2 zoning, which happened before she won a seat on the council in 2011. Her perspective on the project was from the point of view of the DDA partnerships committee on which she serves. The focus of that committee’s work was on the TIF grant from the DDA. The policy guidelines that were created by the DDA, as well as the A2D2 zoning, all helped to create a great project, she said. The fact that the project adds to the diversity of the housing stock is important, Lumm said, as is the environmental cleanup of the site. She noted that the planning commission’s support had been unanimous. She concluded by indicating she supported the project.

Christopher Taylor (Ward 3) said he’d support the project, which he believes was the result of a process that is well-designed and works. It begins with the benchmark of D2 zoning, the citizen participation ordinance, the work of the city’s planning staff, input from the design review board, and the opportunity to deviate from the more rigid aspects of the zoning.

Taylor also mentioned the indicated market for the residents of the project – “workforce housing.” Taylor noted that councilmembers often hear references to that kind of housing. But when a developer says the project is intended for workforce housing, Taylor said it’s rare for him to sit at the council table and say to himself, “Yeah, that’s right!” In this case, however, he felt that considering the design of the units and their size and the type of amenities that are being provided, it was, in fact, a workforce housing project. He said he looked forward to seeing construction.

Councilmember Stephen Kunselman (Ward 3).

Stephen Kunselman (Ward 3) noted that there’d been reviews of D2 zoning mentioned – the Zingerman’s Deli expansion. He reminded his council colleagues of the denial of a request to rezone a D2 parcel (conditionally to D1) on South University. [That denial by the council came at its April 16, 2012 meeting]. It was denied unanimously, he said, because of what that would have meant in terms of setting a precedent. Kunselman allowed that the 618 S. Main project as a “planned project” had a different standard. But he felt that the additional 25 feet allowed for the 618 S. Main project could be analyzed as “capricious and arbitrary.” And he felt the council could be setting itself up for something – in terms of “how we play with our local speculators” compared to other developers from outside Ann Arbor.

Kunselman also said he saw the evolution of the project very differently from the “Kumbaya of how … this speculator worked with the community.” Kunselman characterized it as no different from “a speculator with a big smile on his face and a knife in your back.” The strategy used by the developer, he said, was essentially, “You give me what I want, or I’ll give you what you don’t want.” Kunselman contended that the “by right” alternative that had been shown was not feasible and not marketable – so that scenario could not be used as a baseline against which to compare the “planned project.” Even the project that was being proposed was “on a string” financially, Kunselman said – which the brownfield financing analysis showed.

Kunselman said he didn’t share the impression others had of Ketelaar’s approach. Kunselman contended that Ketelaar did the same thing with the 601 S. Forest project. [Ketelaar was involved early on with that apartment project, now called the Landmark Building]. It started with a shorter building, was then proposed to be taller, and then everyone worked together to reduce the height. That was a building, Kunselman contended, that started the discussion about height limits. Now the height limits were to be adjusted for one particular “speculator,” Kunselman said.

Kunselman said he’d attended one of the citizens meetings and he mentioned that he’d be opposing the project. He said that the fear people expressed was astounding – that the developer would build something else that was worse. He repeated the phrase: “a knife to the back and smile on the face.” Development should start from a fresh slate of honesty and integrity, working with the community in a truly cooperative fashion, Kunselman said. He reiterated his concern that the city would be setting itself up to need to defend height limits in other situations. He concluded that he’d be opposing the project.

Hohnke noted that the 618 S. Main project is in Ward 5, which he and Anglin represent. It’s in a sensitive location, across from a historic district that has a significant amount of character, Hohnke said. But it’s also in the DDA district, which is the “official downtown,” he noted, where the community has said we want denser development. Hohnke was impressed with the collaborative process. He felt that in all his conversations, he never heard anything like a threat to build something worse, if this project was not approved. Hohnke noted that the extra height had resulted in a 60-100 foot setback on the Ashley Street side of the project, which he called an “enormous improvement.” He’d heard from a number of residents, who said they had a lot of concerns but were impressed by how input was incorporated by the development team – from a family that has lived near the project site for over 40 years.

Hohnke felt that the right balance had been achieved. He couldn’t imagine how a project could have been managed better than 618 S. Main.

Outcome: The council voted to approve the 618 S. Main site plan, with dissent from Stephen Kunselman (Ward 3) and Mike Anglin (Ward 5).

618 S. Main Brownfield Plan: Council Deliberations

Marcia Higgins (Ward 4) led off by summarizing the work that the Ann Arbor DDA’s $650,000 grant would pay for: Main Street streetscape improvement costs (including the stretch from Mosley to Ashley Mews, which is well north of the 618 S. Main site); a rain garden to infiltrate stormwater, as opposed to detention-and-release; and upsizing a water main.

Andrew Cluley of WEMU interviews councilmember Marcia Higgins (Ward 4) after the June 18 meeting.

Higgins described the work on the streetscape improvements as an important part of transitioning from the proper downtown into the rest of the city, and described how the project would help establish a gateway to the city.

Higgins – who serves on the city council’s brownfield committee with Sandi Smith (Ward 1) and Stephen Kunselman (Ward 3) – reported that the committee had met twice to go over the project.

Higgins described the process for approval of the brownfield plan, which would need to go before the Washtenaw County brownfield redevelopment authority and the county board of commissioners before being forwarded to the state of Michigan. She ventured that within the next month or so, a decision would be made on the project by the state.

Higgins said that many brownfield projects would not go forward, if the brownfield financing were not available – because of the increased costs to the developer for cleanup of contamination. This isn’t the only project that needs this brownfield financing, Higgins said. She recalled that for the Zingerman’s Deli expansion, the owners of Zingerman’s had said that if they had not received approval of the brownfield plan, they would have needed to move out of the city of Ann Arbor – something she could not imagine.

The 618 S. Main project had met all the requirements. She asked the city’s environmental coordinator, Matt Naud, and the city’s chief financial officer, Tom Crawford, to step to the podium and explain the project.

Crawford explained that the site is in the DDA tax capture district. The tax capture in the plan totals $3.7 million. Of that, Crawford said, about $400,000 is related to the city of Ann Arbor – and the rest is taxes from other jurisdictions.

In a previous brownfield project, Crawford said, the city had approved interest as a cost to be covered – during the period when the developer had not yet completed the project, and was borrowing money until the point when the project was completed and was generating the TIF that reimbursed the developer for eligible costs. However, the state decided not to approve the interest, which mean that the city of Ann Arbor had to cover the interest. So for the 618 S. Main project, Crawford explained, the city is only approving interest as an expense, if the state agrees that it’s eligible. If the state does not agree to cover the interest, Crawford said, then Ann Arbor is held harmless.

One of the criteria used to evaluate the project, Crawford said, is whether the return to the developer on his investment is reasonable, or if public dollars are being used to generate an excessive return to the developer. In this case, the return was estimated at around 6%, which is lower than the city had seen for other projects, Crawford said.

Responding to a question from Higgins, Crawford explained that the tax capture on the increment goes to the DDA, which would be used by the DDA as part of the grant it had made to the project. The city receives taxes on the additional property value over time that’s attributed to inflation, Crawford said.

Naud added that there also is economic development associated with the construction of the project. After the fourth year of the DDA grant, Naud continued, the DDA would be capturing the full increment and would have that money available to make further reinvestments in the downtown area. Naud characterized the brownfield plan as leveraging a relatively small local investment to get a larger investment from the state.

Mayor John Hieftje stressed that the local contribution being made by the DDA does not use funds that exist now, but rather uses the new taxes that the developer pays on the additional value of the property. Hieftje also wanted to stress that the DDA’s $650,000 TIF grant had been initially proposed to be $725,000. He had asked at the June 6, 2012 meeting of the DDA board [on which he sits] that money be removed that would have paid for elements required of the developer by city code. Hieftje pointed to enthusiasm for the streetscape improvements that Mike Anglin (Ward 5) had expressed early on.

Jane Lumm (Ward 2) noted that the topic had been discussed since March by the DDA partnerships committee, on which she serves. A policy and a set of guidelines had been developed in the context of the history of DDA grants. There was a consensus, Lumm said, that the DDA doesn’t finance projects that don’t need it. The initial request had been for $1.3 million, she noted. A lot of effort had gone into ensuring that support was being given for public benefits, not private developer costs. She felt that the only way the project would work is with the brownfield financing, and she supported the brownfield plan.

Stephen Kunselman (Ward 3) indicated he would not support the brownfield plan. Later in the meeting, Carsten Hohnke (Ward 5) asked Kunselman if something had changed since the time that Kunselman had voted for the brownfield plan as a member of the city council’s brownfield committee. Kunselman indicated that he viewed his committee vote as parallel to the way that city councilmembers will sometimes vote for an ordinance change on initial consideration – in order to move it forward for additional public discussion – but will vote against it on final consideration by the council.

Kunselman characterized the brownfield plan as “highly speculative.” He stated that the DDA grant in support of off-site improvements – the streetscape on Main Street northward to Ashley Mews – is breaking new ground when it comes to financing public infrastructure. He expressed concern that there’d be no local control over low bids for that work if the developer was undertaking it.

Kunselman also expressed concern about the use of federal HUD [U.S. Dept. of Housing & Urban Development] financing. Kunselman noted that there’s another project in town that is hoping for HUD financing – on the site of the former Georgetown Mall. Given that there are other developments moving forward in downtown Ann Arbor with market-rate financing, Kunselman wondered why HUD financing was being used.

Kunselman also noted that Crawford had described how the rate of return for the developer is low – which Kunselman concluded meant that the project is speculative.

Kunselman also expressed concern about the Armen Cleaners site – at the northwest corner of Mosley and Ashley – which is contaminated. Once a hole is dug for underground parking, Kunselman contended, it changes the hydrology underground. The 618 S. Main project is not intended to clean up the Armen Cleaners site. Groundwater is 15 feet below grade, Kunselman said, based on Village Green’s City Apartments site at First and Washington. A number of changes had to be made to the City Apartments project, in order to accommodate the groundwater, he said. He said he wouldn’t be surprised if Ketelaar later asks for additional height to lift the building out of the groundwater.

Kunselman also ventured that the pollution from Armen Cleaners might be induced to spread after the hole is dug for 618 S. Main – because water follows the path of least resistance. He allowed that “smart people” will tell us that this has been analyzed and that this scenario won’t happen, but Kunselman insisted that “we don’t know.”

Kunselman dismissed the reduction of the DDA’s TIF grant from $725,000 to $650,000 as “a pittance” compared to the amount of money that will be going into the project.

He also expressed concern that the 618 S. Main project would be competing with Georgetown Mall for brownfield and HUD money. [Later during deliberations, Higgins got clarification from Matt Naud, the city's environmental coordinator, that the two projects were not in competition – because the brownfield plan for the Georgetown Mall site has already been approved by the state.] He called the brownfield plan “padding” for the developer.

Sabra Briere (Ward 1) noted that she’d attended several DDA partnerships meetings. At those meetings, she reported, Kunselman’s question about modeling the hydrology for the impact of 618 S. Main on the contamination at Armen Cleaners had been raised, and answered. John Byl, attorney with Warner Norcross & Judd LLP who’s worked for the development team on the brownfield aspects of the project, told Kunselman it’s an excellent question and it had been raised. Hydro-geologists had been retained and a report had been submitted to the DDA – the conclusion was that it wouldn’t have an impact on the Armen Cleaners site.

Anglin asked about the wells that were used to monitor the site. He expressed skepticism that there was significant contamination at the site that would warrant brownfield status.

Kunselman came back to the question of the impact of groundwater on the 618 S. Main construction. He wanted to know if the model that concluded there’d be no impact on the Armen Cleaners site included any pumping of groundwater associated with dewatering of the site. Byl indicated that not a lot of dewatering was expected, but Kunselman expressed skepticism that would be the case. Bob Wanty of Washtenaw Engineering told Kunselman that the amount of dewatering was expected to be nominal. The footings are about two feet above the high water elevation, so there’d be minimal dewatering for footings. “And if you’re wrong?” asked Kunselman. “That’s what the tests show,” Wanty replied.

Kunselman wanted to know if additional dewatering was needed, if that changed the model for the impact on the Armen Cleaners site. Wanty explained that a trimming seal would be put down so that not a lot of dewatering would be necessary. Kunselman asked additional questions that confirmed there would be a connection to the city’s stormwater system to provide for the possibility that the rain garden’s capacity for infiltration was exceeded.

City of Ann Arbor chief financial officer Tom Crawford (back to camera) returns to the podium after conferring with the 618 S. Main development team to get an answer to a question from Mike Anglin (Ward 5).

Responding to questions from Carsten Hohnke (Ward 5), Naud clarified that not all of the eligible expenses that a brownfield plan can cover are just environmental cleanup. A brownfield plan can also cover the additional costs associated with infill development. He also clarified that the burden is on the developer – because you have to actually build something, achieve an increment in value on the property, and then the taxes paid by the developer on that increment are what drive the financing in the brownfield plan. Only the actual expenses incurred by the developer are reimbursed. The taxes the city is already receiving would continue to be received, Naud said. Compared to other communities, Naud said, Ann Arbor does a lot of review for these proposals.

Responding to a question from Hohnke, Naud indicated that there would be full remediation of contaminated soils on a “dig and haul” basis.

Lumm commended the DDA for the development of their brownfield policy, which took two months to craft. She stressed that the brownfield money is not paid upfront. It can’t be used to cover the developer’s land cost, for example.

Anglin asked Crawford how much of the project was hoped to be financed through HUD. After conferring with Ketelaar, Crawford told Anglin about 75-80%.

Outcome: The council voted to approve the 618 S. Main brownfield plan, with dissent from Stephen Kunselman (Ward 3) and Mike Anglin (Ward 5).

Medical Marijuana Licensing Ordinance

On the city council’s June 18 agenda were revisions to Ann Arbor’s medical marijuana licensing ordinance – which the council enacted a year ago on June 20, 2011.

The proposed ordinance revisions, recommended by the city’s medical marijuana licensing board at its Jan. 31, 2012 meeting, had already been considered and postponed once before, at the council’s April 2, 2012 meeting. The licenses that the board recommended be granted to 10 dispensaries citywide – recommendations also made at the board’s Jan. 31 meeting – have not yet come before the city council for final action.

The board-recommended revisions to the medical marijuana licensing ordinance are laid out in detail in The Chronicle’s coverage of the medical marijuana licensing board’s Jan. 31, 2012 meeting. [.pdf of recommended licensing ordinance revisions] Representative of the revisions is a change that strikes the role of city staff in evaluating the completeness of a license application. The following phrase, for example, would be struck: “Following official confirmation by staff that the applicant has submitted a complete application …” The changes also establish a cap of 20 licenses, and grant the city council the ability to waive certain requirements.

Mayor John Hieftje and councilmember Sabra Briere (Ward 1).

Council deliberations were brief. A move to postpone the medical marijuana ordinance revisions came at the start of deliberations, and was made by Sabra Briere (Ward 1), who serves as the city council’s representative to the medical marijuana licensing board. In arguing for postponement, she cited pending state legislation for regulating medical marijuana that could result in a need to further amend the city’s ordinance. Pending legislation includes House Bill 5681 (which would amend the public health code and create a “pharmaceutical-grade cannabis program”) and House Bill 5580 (which would give local authorities the option to allow dispensaries and testing facilities).

Briere invited city attorney Stephen Postema to comment on the pending legislation. He described the local option as allowing municipalities to regulate dispensaries in a manner similar to the way that Ann Arbor does. He expressed uncertainty about the likelihood that some of the legislation would pass – given that an amendment to a voter-initiated piece of legislation, like the 2008 Michigan Medical Marijuana Act, requires a 75% majority vote in the Michigan legislature.

Briere moved for postponement.

Outcome: The council voted unanimously to postpone action on revisions to the medical marijuana licensing ordinance until Oct. 1.

FY 2012 Budget Adjustments

The council was asked to amend the budget for its current fiscal year to bring actual expenditures in line with budgeted amounts – so that the city’s various funds do not show an excess in expenditures over budgeted amounts for the year. The amendments are necessary in order to conform with Act 621 of 1978 (Uniform Budgeting and Accounting Act).

The council’s action bumped the general fund expense budget from $79,642,485 to $80,993,946 – an increase of $1,351,461. According to a staff memo accompanying the budget resolution, city staff are still projecting that a little less than $0.5 million of fund balance will need to be used for the year, due to other offsetting expenses.

For the general fund, some of the larger adjustments included: tax refunds higher than budgeted ($444,700); police services severances greater than budgeted ($250,000); two unbudgeted elections ($165,000) and a golf fund subsidy that was higher than budgeted ($131,761). [.pdf of all adjustments]

The bulk of the adjustment outside the city’s general fund was for bond refinancing at a lower interest rate ($2,758,100).

Council deliberations were brief. Jane Lumm (Ward 2) indicated she did not have a problem with the adjustments. But she indicated to city chief financial officer Tom Crawford that in a prior communication to the council, Crawford had been more confident that the city would end the year by essentially breaking even. She asked if the projected deficit [of $0.5 million] reflected Crawford being conservative or if things had actually deteriorated a bit.

Crawford told Lumm that he still felt the city would be close to breaking even. The reason the amendment is necessary, Crawford said, is that expenditures are approved by fund and by agency – and favorable news in one area can’t automatically offset negative news in another area, due to the way that expenses are approved. He believed the city would come close to breaking even, despite that evening’s necessary amendments to the budget.

Outcome: The council voted unanimously to approve the FY 2012 budget adjustments.

Human Services Allocations

The council was asked to authorize allocations totaling $1,244,629 to different nonprofits that provide human services. The amount was set as part of the FY 2013 budget, which the city council approved on May 22, 2012. That amount reflected a $46,899 increase to the amount in the proposed budget – an increase that was approved with the budget on May 22.

The process of making allocations followed a “coordinated funding” approach, as the city worked in concert with the Ann Arbor Area Community Foundation, the United Way of Washtenaw County, Washtenaw County, and the Washtenaw Urban County to make the allocations. That approach was approved by the city council on Nov. 4, 2010.

The total amount allocated through the coordinated funding process is expected to be $4,285,089, from the following sources: Ann Arbor ($1,244,629); United Way of Washtenaw County ($1,677,000); Washtenaw County ($1,015,000); and Washtenaw Urban County ($348,460).

Proposals from nonprofits for funding exceeded the amount allocated by $2,295,428. The five priority areas used to evaluate proposals were aging, early childhood, housing & homelessness, safety-net health, and school-aged youth. A sixth priority area (hunger relief) was identified as a “sole-source activity” that’s provided by Food Gatherers, and wasn’t included in the evaluation process.

The largest awards made to 73 different programs included: $276,766 from the United Way to The Corner Health Center’s patient assistance and care management program; $204,892 from the United Way Safety Net Health Services to Catholic Social Services of Washtenaw’s program for maintaining the independence of older adults; $207,551 from the city of Ann Arbor to the Shelter Association of Washtenaw County’s residential program. [Google Spreadsheet of all awards compiled by The Chronicle]

Deliberations were brief. Jane Lumm (Ward 2) said it was a pleasure to serve on the city’s housing and human services advisory board with Sandi Smith (Ward 1). Lumm said she was pleased that the budget was amended to increase the allocation. She described the allocation process as “robust” and said it ensured that the dollars are used wisely and leveraged as much as possible. She said the coordinated funding approach works well and that the amounts allocated to the different nonprofits were “reasonable and studied.”

Outcome: The council voted unanimously to make the $1,244,629 in human services allocations.

Trucks and Plows

The council considered the purchase of 11 dump trucks and four front plows from Wolverine Truck Sales. The total cost of the vehicles and equipment was $1,548,376.

The 11 trucks to be replaced with the new vehicles are described in a staff memo accompanying the resolution as averaging $14,000 in repairs each for the last five years. Most of them date from 1999-2001. The dump bodies for some of the trucks are described as rusted out to the point that they would need to be replaced – at a cost of $30,000.

The plows to be replaced date from 1979–1981, and have a fixed angle. The new plows will have an angle that’s adjustable by the driver from inside the cab.

The money for the trucks and plows will be taken from the approved FY 2012 budget for fleet and facilities.

Jane Lumm (Ward 2) noted that the expenditure is not insignificant. She said she had inquired about the city’s vehicle inventory and felt the size of the fleet is not unreasonable for a community Ann Arbor’s size.

Sabra Briere (Ward 1) noted the possible $30,000 per truck cost for some of the repairs and the ongoing repair costs for the vehicles. She also highlighted the fact that the city is anticipating that the trucks the city is purchasing will last longer because they have stainless steel bodies. The best part, Briere said, is the replacement of the snowplows – because instead of a fixed angle, they’ll be adjustable. Drivers will have a lot more control to tackle whatever snow we have, she concluded. Mayor John Hieftje said he appreciated the point Briere had made about the stainless steel.

Outcome: The council unanimously approved the purchase of the 11 trucks and 4 snowplows.

Stormwater Study

The council was asked to approve a $822,700 contract with CDM Michigan Inc. for a stormwater analysis project. The project has five phases: (1) collect stormwater GIS data; (2) integrate the GIS with the model information and gather general monitoring data; (3) engage the public and perform preliminary model calibration; (4) gather comprehensive monitoring data and finalize model calibration; and (5) analyze modeling results and engage creekshed groups/neighborhoods.

In 2007, CDM was hired to complete the first two phases of the project. The contract considered by the council on June 18 is supposed to allow completion of the project.

Outcome: The council approved the stormwater study without discussion.

Ann Arbor SPARK Contract

The council considered a $75,000 contract with the economic development agency Ann Arbor SPARK.

The contract has been renewed annually since the Washtenaw Development Council and Ann Arbor SPARK merged in 2006. Previously, Ann Arbor had contracted with the WDC for business support services for which it now contracts with SPARK. On June 20, 2005, the city council authorized that one-year contract with WDC for $40,000. This year’s $75,000 contract with SPARK describes the organization’s focus the same way it did last year, as “building our innovation-focused community through continual proactive support of entrepreneurs, regional businesses, university tech transfer offices, and networking organizations.”

Ann Arbor SPARK is also the contractor hired by the city’s local development finance authority (LDFA) to operate a business accelerator for the city’s SmartZone, one of 11 such districts established in the early 2000s by the Michigan Economic Development Corp. (MEDC). The SmartZone is funded by a tax increment finance (TIF) mechanism, which in the current fiscal year captured around $1.5 million in taxes from a TIF district (the union of the Ann Arbor and Ypsilanti Downtown Development Authority districts, though revenue is generated only in Ann Arbor’s district.) The specific taxes on which the increment since 2002 is captured are the school operating and state education taxes, which would otherwise be sent to the state and then redistributed back to local school districts.

For recent Chronicle reporting on the LDFA and its relationship with SPARK, see: “SmartZone Group OKs SPARK Contract.”

SPARK’s contract was included on the city council’s consent agenda, which consists of items involving less than $100,000. Consent agenda items are considered routine, and are voted on as a set. Any councilmember can pull out an individual item for separate discussion, which Sabra Briere (Ward 1) chose to do for the SPARK contract.

She had posed some questions about the contract before the meeting, which Skip Simms, SPARK’s vice president for entrepreneurial business development, had answered. So at the meeting, Briere asked Simms to the podium to provide the answers publicly. Simms did not have the written material in front of him, and Briere ended up essentially reporting on the information she’d received.

In summary strokes, she’d been told that in 2011 SPARK specifically recruited 20 companies to locate in Ann Arbor, and of those 20, 12 had moved into the city of Ann Arbor. Of those 12, according to SPARK, five had no knowledge, relationships or inclination to locate in Ann Arbor before 2011.

The companies that moved to Ann Arbor employ a total of 143 people.

Briere asked what kind of companies these are that moved to Ann Arbor. Simms explained that they are primarily technology and IT-based – software developers, for example. Simms indicated that the reason such companies relocated to Ann Arbor is that Ann Arbor has that kind of talent. In most cases, Simms continued, the companies are expanding. That expansion is sometimes accomplished by transferring an executive to Ann Arbor, who then starts up a new location for the company in Ann Arbor.

Marcia Higgins (Ward 4) noted that the city has had this line item to contract with SPARK for several years, and noted that it had been increased a few years ago to $75,000 per year. She indicated she was happy to support the contract – because SPARK was able to entice companies to relocate to Ann Arbor with only a minimal amount of money. Simms contended that with $405,000 of city of Ann Arbor support over the last five years, SPARK had aided companies that had committed to $177 million worth of build-out, investments in projects and new equipment, and those companies have created 3,886 jobs, he said.

Jane Lumm (Ward 2) thanked Simms for responding to the questions and told Simms that SPARK is great at what it does. She also noted that SPARK is partnering with the Pure Michigan campaign. Simms described a video that SPARK has produced that will promote the whole area. Lumm said the work that SPARK does – to help start-up companies and incubate new companies – is important. She allowed that it’s difficult to measure, but contended that SPARK is bringing added value. Lumm indicated she’d seen the video, which she praised as looking like something straight out of Madison Avenue.

Outcome: The council unanimously approved the $75,000 SPARK allocation.

Ann Arbor Contract with Lobbyist

At its June 18 meeting, the city council was asked to approve a $48,000 contract with Governmental Consultant Services Inc., a Lansing-based lobbying firm. It’s a one-year contract for fiscal year 2013, which starts July 1, 2012. The funds were part of the city administrator’s office budget, in the FY 2013 budget approved by council on May 22, 2012. The contract is the same amount as last year.

According to a staff memo accompanying the resolution, “GCSI has provided excellent work in the areas of legislation monitoring along with advocating fire protection grants and comprehensive corridor planning.”

GCSI’s Kirk Profit, a former member of the state House of Representatives representing the eastern part of Washtenaw County, typically makes an annual presentation to the council with an update on state-level legislative issues relevant to the city’s budget situation. Written updates to councilmembers on legislative activity are sent on a weekly or daily basis.

GCSI also has a contract with Washtenaw County and several other local units of government.

The GCSI contract was included on the city council’s consent agenda, which are items involving less than $100,000. Consent agenda items are considered routine, and are voted on as a set. No one pulled out this item for separate discussion.

Outcome: The council unanimously approved the GCSI lobbying contract as part of its consent agenda.

Nominations: Boards and Commissions

Four nominations were made at the council meeting – to the planning commission, the greenbelt advisory commission and the environmental commission. Nominations to the planning commission are made by the mayor, with confirmation by a vote of the city council at the meeting following the nomination. Most of the other boards and commissions of the city follow that pattern.

However, nominations to the environmental commission and the greenbelt advisory commission are made by the council as a body and then also voted on by the council. The council will vote on all four nominations at its July 2, 2012 meeting.

Planning Commission: Ken Clein, Kirk Westphal

Mayor John Hieftje announced his nomination to replace Erica Briggs on the city planning commission: Ken Clein, a principal with Quinn Evans Architects. Briggs did not seek re-appointment.

Among the architectural projects Clein has worked on locally are the University of Michigan’s Hill Auditorium renovation, the new Ann Arbor municipal center, and the Zingerman’s Deli expansion.

Hieftje also announced that he was nominating Kirk Westphal for re-appointment to the planning commission.

The city council will vote on the appointments of Clein and Westphal at its July 2 meeting. City planning commissioners serve three-year terms.

Environmental Commission: John German

The council’s nomination to re-appoint John German to the city’s environmental commission was made by Sabra Briere (Ward 1). She is the city council’s appointee to that commission. German’s term expired in August 2011, but he has continued to serve. The council will be asked at its next meeting to re-appoint him retroactively for a three-year term ending on Aug. 7, 2014.

German’s background includes work with Chrysler, the U.S. Environmental Protection Agency, Honda, and the International Council for Clean Transportation.

Ann Arbor’s environmental commission was established 12 years ago through a city ordinance, with the charge to “advise and make recommendations to the city council and city administrator on environmental policy, environmental issues and environmental implications of all city programs and proposals on the air, water, land and public health.”

Greenbelt Advisory Commission: Archer Christian

Carsten Hohnke (Ward 5), the city council appointee to the greenbelt advisory commission, announced Archer Christian as the council’s nomination to replace Mike Garfield on the city’s greenbelt advisory commission. Garfield is director of the Ecology Center, a nonprofit based in Ann Arbor, and Ms. Christian is the center’s development director. The council will vote on the nomination at its July 2 meeting.

The greenbelt advisory commission oversees the proceeds generated by two-thirds of the city’s open space and parkland preservation millage, which is levied at a rate of 0.5 mills.

Garfield is term-limited as a GAC member, having served two consecutive three-year terms. The spot vacated by Garfield is not designated for a representative of the Ecology Center. However, the 109-member commission includes two slots for representatives of environmental and/or conservation groups.

In his remarks at the June 18 council meeting, Hohnke highlighted Christian’s masters degree in crop and soil science. Hohnke also praised Garfield’s service on land preservation from the very beginning of the greenbelt initiative and thanked Garfield for his many years of leadership.

At GAC’s June 7 meeting, Christian briefly had addressed the commission, saying that as long as she can remember, she has wanted to be a farmer. Being able to translate that passion into helping preserve land in the greenbelt would be an honor, she told them. She gave a brief overview of her background, including the fact that she started at the Ecology Center four years ago as grants director, and became development director in January of 2012.

Christian told commissioners that she’s lived in Ann Arbor for eight and a half years, and it feels like home. Being in a forward-thinking community is a delight beyond measure, she said. [.pdf of Christian's résumé]

Communications and Comment

Every city council agenda contains multiple slots for city councilmembers and the city administrator to give updates or make announcements about issues that are coming before the city council. And every meeting typically includes public commentary on subjects not necessarily on the agenda.

Comm/Comm: Ann Arbor Marathon

As a part of his city administrator’s report, Steve Powers noted the running of the Ann Arbor marathon, which had taken place the previous day.

Ann Arbor city administrator Steve Powers.

A number of complaints had been received about disruption caused by the race. Powers asked councilmembers to forward complaints from constituents to him. The city staff is reviewing the event and would appreciate hearing from councilmembers’ constituents, Powers said.

Comm/Comm: Green Streets

During public commentary at the start of the meeting, Valerie Strassberg introduced herself as chair of the city’s water committee, a subset of the environmental commission. She called the city council’s attention to a communications item on the agenda. That item includes the environmental commission’s resolution in support of a green streets policy. She hoped Sabra Briere (Ward 1), who serves as the city council’s representative to the environmental commission, will bring that resolution forward to the council for the July 2 meeting. The idea of the green streets initiative is for city staff to look at green streets as a formal process. Right now, when the city reconstruct roads, the project includes a look at what can be done to integrate green infrastructure – planting vegetation, bioswales, curbs, bump-outs and other devices to control runoff.

From the communications item Strassberg mentioned:

The terms Green Streets or Green Infrastructure are adaptable terms used to describe an array of products, technologies, and practices that use natural systems – or engineered systems that mimic natural processes – to enhance overall environmental quality and provide utility services. Green Streets usually treat and/or infiltrate storm water which improves water quality and reduces the volume and rate at which stormwater leaves the street.

Currently, those features are considered when the city undertakes a project, she said, but it’s not the norm. Sylvan Avenue [which was reconstructed using permeable pavement] is an example, as is the city hall’s rain garden. But those are the exceptions, she said, not the norm. The resolution would allow staff to explore opportunities to make those kind of features “the norm,” Strassberg said. She asked councilmembers to give the resolution consideration when it comes across their desks.

The environmental commission’s resolution includes the “resolved” clause that asks the city council to give direction to the city staff:

RESOLVED, that the Ann Arbor Environmental Commission is fully supportive of the Green Streets Initiative of the Environmental Commission Water Committee, and hereby recommends Ann Arbor City Council directs City Staff (from the Systems Planning, Project Management, and Field Operations Units of Public Services; Parks and Recreation, and Planning from Community Services) to work with the Environmental Commission in the development of a Green Streets policy.

Later in the meeting, Briere indicated she intended to bring forward a green streets resolution to the council’s July 2 meeting.

Comm/Comm: Countywide Transit

Sabra Briere (Ward 1) reported to her colleagues on the result of a committee meeting held earlier that day on possible amendments to the 4-party agreement and articles of incorporation that are associated with a possible expansion of governance and service area of the Ann Arbor Transportation Authority. The four parties to the agreement are the cities of Ann Arbor and Ypsilanti, Washtenaw County and the AATA.

The cities and the AATA have approved the documents. But now the Washtenaw County board of commissioners has begun to focus on the document details. Briere noted that a June 14 working session of the county board, which had included AATA staff and legal counsel, had resulted in the airing of specific concerns by commissioners, who had suggested amendments to the documents. [Chronicle coverage: "Differences on Countywide Transit Debated"]

A committee with representation from each of the parties met the afternoon of June 18, Briere reported. [Members of the committee are: Sabra Briere and Christopher Taylor (Ann Arbor city council); Paul Schreiber and Pete Murdock (Ypsilanti mayor/city council); Conan Smith and Alicia Ping (Washtenaw County board); Jesse Bernstein and Charles Griffith (AATA board); David Read and David Phillips (U196 board).]

The committee’s consensus was that the possible amendments would not be brought before the city councils of Ann Arbor and Ypsilanti or the board of the AATA at this time, and that the original language would be allowed to stand. The choice of phrasing by Briere resulted in some confusion.

Later in the Ann Arbor city council meeting, Jane Lumm (Ward 2) clarified that there will still be a formal vote by the Washtenaw County board of commissioners. Taylor stressed that it’s a matter of the other three parties declining to bring the county board’s amendments to their respective bodies.

Comm/Comm: Local Action on Energy Conservation

During public commentary, Kermit Schlansker told the council that the real argument about global warming is whether we should try to save energy or not. The Ann Arbor city council has shown almost no interest in saving the planet for our children, he said. Unless there’s a decided shift in local government goals, we’ll gradually become poorer and poorer as national resources become more scarce. Europe uses about half the energy per capita that U.S. residents do, he said. That’s because there are more apartment houses in Europe and more compact cities, more public transportation and smaller cars, he said.

An apartment house is an energy conservation device that “costs nothing and can live for 1,000 years,” Schlansker said. The whole cost of the building can be charged to habitation, which means the energy costs nothing, he said. An apartment building saves energy by using about 25% of the heating energy as a house, he said. More compact cities reduce the need for travel, and there is ready access to farmland, so that people can grow food.

The city needs to start a project consisting of an apartment house on farmland – because that’s the only way we can care for poor people in the coming time of universal poverty, Schlansker said. He called for planting trees as the best way to store carbon. Fruit and nut trees can be planted to provide cheap food for future generations. Local generation of food by the local population is a must, he said. Sewage needs to go back into farmland, not into the rivers, he said. Engineering research groups need to be formed to create energy-saving devices.

Schlansker concluded by saying that the problems of the future are just as much the responsibility of local governments as they are for the federal government. All the steps necessary for energy sustainability – aside from nuclear power – are a “part of local living,” Schlansker said. He suggested that the role of governments is to create models of ideal systems that could be implemented by private enterprise. If local governments do some of the right things, he said, President Barack Obama will follow – but “he needs our help.”

Comm/Comm: Crosswalks, Sight Distance

Kathy Griswold told the council she wanted to provide them with an update on two topics she’s commented on in the past. The first was a sidewalk construction project near King Elementary School that would allow moving the crosswalk from a midblock point to an intersection where there’s a four-way stop. [The new sidewalk would extend from the northeast corner the Waldenwood and Penberton intersection to a path that continues to the school building.] Griswold described the project as funded and at one point staked out, but then was stopped. She told the council that the city staff had determined the crossing was unsafe, and had thus deployed a crossing guard at that location, which she described as requiring recurring dollars. If crossing guards were to be provided, she said, then all locations should be considered and prioritized based on those that are the most dangerous.

Griswold also objected to the continued mowing by the city of private property near streets. Griswold told the council that former public services area administrator Sue McCormick had told Griswold that it bothered her, too. When visibility is obstructed, she said, private property owners need to be notified so that the private property owners can take care of it. She highlighted Glacier Way and Huron Parkway as areas that need attention.

Comm/Comm: Camp Take Notice

Thomas Partridge told the council he was there as a resident of city of Ann Arbor and of the county, as a grandfather, and as a Democratic candidate for 53rd District of the Michigan house of representatives. He called for expansion of integrated human services, including affordable housing – in the context of what he described as the housing crisis of Camp Take Notice, an encampment off of Wagner Road [on state-owned land in Scio Township]. He called for emergency housing shelter as well as transitional housing. He called for an expansion of affordable transportation – countywide and regionwide. He told councilmembers they should set special interests like medical marijuana aside.

Partridge said it was important to work to re-elect President Barack Obama, to advance the goals of Ann Arbor, the state and the nation. Returning to the topic of Camp Take Notice, he said that now is a time of crisis for the people who live there, living in a tent city without protection from the environment. They’re under a brutal eviction order from the Michigan Dept. of Transportation, he said. [The camp is on MDOT land.] Partridge called on Gov. Rick Snyder to revoke the eviction order.

Later in the meeting, Sabra Briere (Ward 1) asked mayor John Hieftje to give an update on Camp Take Notice. Hieftje indicated that MDOT is working with all human services providers in the community at the city, county, and state levels. Housing vouchers will be provided, he said. The Delonis Center will provide some help for people in transition. And all-out effort is being made to make sure a place is found for everyone. Hieftje said he expected conditions will be better than at camp itself. [As an example, at its June 6, 2012 meeting, the Washtenaw County board of commissioners authorized a grant agreement for up to $60,000 in emergency housing assistance for residents facing eviction from Camp Take Notice.]

Present: Jane Lumm, Mike Anglin, Margie Teall, Sabra Briere, Tony Derezinski, Stephen Kunselman, Marcia Higgins, John Hieftje, Christopher Taylor, Carsten Hohnke.

Absent: Sandi Smith.

Next council meeting: Monday, July 2, 2012 at 7 p.m. in the council chambers at 301 E. Huron. [Check Chronicle event listings to confirm date]

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