Ted Annis distributes copies of his treasurer's report during public commentary at the start of Wednesday's AATA board meeting. (Photos by the writer.)

A representative from Indian Trails addressed the board during public commentary at the start of the meeting, in part to convey disappointment, but primarily to thank board members for the opportunity to work on that private-public partnership.

Public commentary also included remarks from Ted Annis, the board’s treasurer, who signed up for a public comment slot, and used it to deliver his treasurer’s report. The report had not been given a slot on the agenda by the board’s governance committee – after reviewing it, the committee decided it did not fit the parameters of the treasurer’s report specified in the board’s bylaws.

The wrangling over the treasurer’s report thus continued from last month’s board meeting, when fellow board members expressed the view that Annis’ monthly reports, which he has submitted since taking over the treasurership last fall, do not include the material specified in their bylaws. Instead, they said, the reports are effectively the expression of an individual board member’s dissent on board policy.

The board voted to establish a bylaws committee to be chaired by David Nacht to examine the matter in more detail.

Board members also voted to change their meeting venue and day, starting in two months. In May, the board will begin meeting at the downtown Ann Arbor District Library on the third Thursday evening of the month at 6:30 p.m. The library board room location, also used by the Ann Arbor Public Schools and AADL for their board meetings, offers more space for attendees, as well as video recording facilities.

Chelsea-Ann Arbor Service

Before the board was a resolution – recommended by the performance monitoring and external relations committee – that the Chelsea-Ann Arbor commuter bus service be continued through May 2011, but switched to AATA buses from Indian Trails motor coaches.  The resolution specified that the fare would be reduced to $99/month from $125/month. The fare reduction, in concert with an intensive marketing campaign, is a move that is hoped to improve ridership numbers.

Although the service has not achieved the expected ridership, board members authorized its continuation as a useful means of gathering information, especially as the board moved forward with its contemplation of countywide service.

Chelsea-Ann Arbor: Public Comment

Jeff Deason, sales representative for Indian Trails, the motor coach operator that’s been operating the twice daily service between the city of Ann Arbor and Chelsea, appeared before the board to thank them for the opportunity to provide the service as long as they did – since May 2008. He told them that in those two years, Indian Trails had been a proud partner with the AATA, and noted that the ridership had been pleased with the quality of the equipment and the service provided by their drivers.

Deason described how Indian Trails had understood that the AATA was contemplating the move to in-house operation of the service due to concerns about reducing costs, and that Indian Hills Trails had presented an alternative plan, which had ultimately not been recommended. While Indian Trails was disappointed, he said, he thanked the board and expressed appreciation for the opportunity. He said they would continue to provide the service on the Canton-Ann Arbor express route, and that they were optimistic about other opportunities in the future.

In his turn during public commentary at the start of the meeting, Jim Mogensen pointed out that commuter service fares were being reduced from $125 per month to $99 a month even while fares for fixed-route service were set to increase. [The $0.50 increase, which was spread over two years, was approved last year. That resulted in a rise from $1 to $1.25 last year, with the second phase of the increase due in May 2010 to raise the basic fare to $1.50 per ride. See Chronicle coverage: "Bus Fares Will Increase"]

Asked Mogensen, “Where does the money [to offset the cost not covered by fares] come from? Is there a Chelsea purchase-of-service agreement?” [AATA provides service to communities outside of Ann Arbor  through purchase-of-service agreements. Ann Arbor taxpayers fund AATA through a property millage.]

Mogensen cautioned that the cushioning of a motor coach like Indian Trails had been providing was much different from riding on a regular AATA bus.

Mogensen returned to the topic of express bus service during public commentary time at the conclusion of the meeting.

He noted that part of the challenge in marketing the Canton-Ann Arbor service [which targets University of Michigan workers] is that to get to work in Ann Arbor from Canton, you get in your car, you drive down Ford Road, you park your car at the new Plymouth Road park-and-ride lot, you take bus to work – it’s free. [AATA buses do not require payment of a fare by UM workers on boarding – their fares are paid through the M-Ride agreement between UM and AATA. The M-Ride agreement is currently being re-negotiated.] It’s understandable why it’s hard to market that, Mogensen, said.

Mogensen also returned to the specific question of where the money to support the commuter service comes from. If it derives from the Ann Arbor property millage, he said, there are regulations that apply with respect to the use of the funds, which could be used in other ways.

Chelsea-Ann Arbor: Board Deliberations

David Nacht led off with a blunt question: “How much money are we going to throw into this?” Chris White, AATA’s manager of service development, put that number at $110,000. The total breaks down into thirds: 1/3 would be covered by fares, 1/3 through a state grant, and 1/3 by the AATA. [It is the 1/3 from the AATA that Mogensen focused on during his public commentary.]

Based on the numbers, Nacht tentatively floated the conclusion that ridership needed to almost double in order for the service to operate without support from AATA. Sue McCormick, an AATA board member who is also the city of Ann Arbor’s public services area administrator, asked Michael Ford, the CEO of AATA, if the staff thought that a doubling of ridership was achievable.

Ford said, “We’re going to try.”

Nacht wondered if it was possible to offer a commission for people to sell tickets. “I would urge us to use capitalist incentives,” he quipped.

Ted Annis noted that given the current ridership numbers, the Chelsea-Ann Arbor service required support if it was to continue. “On its immediate merits, it doesn’t stand up.” However, Annis argued for continuing the service, because it gives the organization useful information going forward. Part of that going forward is the AATA’s contemplation of expanding its service countywide, which Charles Griffith cited as a reason to retain the Chelsea-Ann Arbor express service at least another year.

During the board’s question time for the CEO, before it deliberated on the Chelsea-Ann Arbor resolution, Nacht had also expressed his unwillingness to see the service discontinued, with the AATA countywide initiative in the works.

During question time, Nacht also elicited from Chris White a clarification of the University of Michigan’s fare subsidy for its employees – UM pays $62.50, or 50% out of the $125 fare. With the reduction in fare, said White, UM will continue to pay $62.50, so UM riders will receive the full benefit of the reduced price.

Question time was also the occasion when Sue McCormick asked for some clarification about whether riders wanted the deluxe coaches versus standard buses. White explained that the kind of coach did not appear to be a “make or break” issue for riders. However, the availability of wireless Internet access on the bus did appear to be “make or break” for some riders.

Griffith said that Indian Trails had developed a proposal for their coach service at a reduced rate but without wifi capability. The desire to provide wireless access to the Internet was thus a crucial aspect of the decision.

During deliberations on the resolution, Griffith noted that the motor coach version of the service was tried at first, because the “luxury version” was thought to be necessary to attract ridership. Based on surveys of riders, he said, that did not appear to be essential.

Outcome: The board unanimously approved the continuation of the Chelsea-Ann Arbor express bus service through May 2011, reducing the fare, and using AATA buses instead of Indian Trails.

Board Venue Change

At its Feb. 17, 2010 meeting, the board discussed but did not vote on the idea of changing its meeting day and place, in order to improve accessibility and transparency to the public in the context of its contemplation of countywide expansion.

During her report to the board, Rebecca Burke, who chairs the AATA’s local advisory council (LAC), told them that the council had drafted a letter to CEO Michael Ford outlining a variety of issues they saw as challenges with the library location. [The LAC  provides a forum for seniors and those with disabilities to provide input to the AATA.]

Jim Mogensen, during his public commentary, noted that the library closes at 9 p.m. and arrangements should be made to make sure AATA board meetings could, if necessary, go past 9 p.m. He noted that Ann Arbor Public School board meetings met in the same location and often ran past 9 p.m. [At its most recent meeting, on March 24, the AAPS board meeting lasted well past midnight.]

Ford said the staff would look at all possibilities for making the transition as smooth as possible.

During deliberations on the resolution, Sue McCormick got clarification that the concerns raised by Burke had been taken into account. [They fall into two categories: possible issues with the library building; and the accessibility to the library building in the context of ongoing construction of the underground parking garage directly adjacent to the building.]

Nacht wanted to know if the meetings would be on TV. Jesse Bernstein, chair of the performance monitoring and external relations committee that worked on the issue, explained that coverage on Community Television Network (CTN), the local cable access television station, would not be live. However, within a couple of days after the meeting, the video will be available through online video-on-demand, in the same way that other meetings are, when CTN records them.

In addition, continued Bernstein, the meetings would be aired on CTN’s cable TV channels during a couple of slots during the week, still to be scheduled.

Sue McCormick declared that the new system would represent a substantial improvement.

At the board’s Dec. 16, 2009 meeting, during a discussion on the issue of videotaping meetings, David Nacht recalled the recent history of the board’s position on the question:

In board discussion of video recording their meetings, board member David Nacht said that he was personally in favor of video recording meetings, but noted that the board had recently voted down a proposal to video record meetings, and that lacking new information, out of respect for previous board decisions he was disinclined to support it. Responding to Nacht, Annis said that the “new information” could be that the AATA had a new CEO and was exploring an extension of its service to more areas of the county.

On Wednesday, Nacht said that he’d been a supporter of video recording meetings for six years in the interest of transparency and there had been zero interest in going that direction for 5 and a half years. Now that the board would be voting to make it happen, Nacht said he was “thrilled.”

Outcome: The board unanimously approved the resolution to change its meeting time and location to the third Thursday of the month at 6:30 p.m. at the downtown location of the Ann Arbor District Library, 343 S. Fifth Ave. The board currently meets at AATA headquarters, 2700 S. Industrial Ave., on the second-to-last Wednesday of the month.

Treasurer’s Report

Ted Annis has served on the AATA board since having his nomination confirmed by the Ann Arbor city council in February 2005. His current term ends in May of this year, but he could be re-appointed. He has told mayor John Hieftje that he would serve another term, if asked. The mayor makes nominations for appointments, which must be approved by city council.

Treasurer’s Report: Annis as Treasurer

Since election by his board colleagues as treasurer in 2009, Annis has submitted one-page treasurer’s reports:

• Treasurer’s report: Oct. 29, 2009
• Treasurer’s report: Dec. 8, 2009
• Treasurer’s report: Jan. 11, 2010

At the board’s February 2010 meeting, Annis raised his objection to the omission from the board’s agenda of the item that called for the presentation of his report. From discussion at the February meeting, it emerged that other board members were concerned that Annis was using the treasurer’s report as a vehicle for expressing a dissenting view on board policy, rather than presenting commentary on dollars-and-cents information:

That being said, cautioned Nacht, there is a reason for the treasurer’s report in the bylaws – it’s supposed to be more than just a dollars-and-cents accounting, and the treasurer should have the ability to report directly to the board. It all depended, Nacht said, on what the report includes: Is it more philosophical or is it more dollars and cents? To the extent that the content of the treasurer’s report amounted to a dissenting opinion on board policy, Nacht said, it shouldn’t come in the form of a treasurer’s report.

Treasurer’s Report: Annis as a Member of the Public

At Wednesday’s meeting, then, with the treasurer’s report item not included on the agenda, Annis signed up for public comment on the sign-in clipboard, after two other speakers.

When the first two speakers had said their piece, board chair Paul Ajegba noted that Annis was signed in. Ajegba expressed uncertainty about whether it was possible for a board member to address the board during public commentary as a member of the public. David Nacht said he thought it was a “definitional issue,” meaning that a person was a member of the board or of the staff, or of the public, but not more than one of those.

Queried by board members about the content of the bylaws, executive assistant Karen Wheeler [who keeps the minutes of the board meetings] said she didn’t think there was anything in the bylaws that disallowed it.

Annis suggested that because it would be a brief presentation, the board could debate the question of whether he should be allowed to address the body during public commentary – while he gave the report.

Ajegba offered somewhat resignedly that Annis would be “breaking new ground.”

Treasurer’s Report: The Content of the Report

Annis then read briefly from the introductory material explaining that the report was being delivered during public comment time, noting that:

[...] Board members have complained that the last three Treasurer’s Reports have ranged beyond the reporting upon the monthly financial statements and that they do not wish to be exposed to the Treasurer’s presentations. The offending reports have included an analysis of countywide millage funding, a request for transparency, a request for appropriate Board meeting accommodations, a suggestion of a budgeted operating amount to guide the outside consultant designing the countywide bus system, a computation of savings available from cost-efficient operations, and the hiring of a CFO (Chief Financial Officer).

The February report – delivered on Wednesday – contained the recommendation that the AATA’s cost per bus service hour, which is currently around $104, be placed into the CEO’s goal’s and objectives:

1. $95/bus service hour by year-end 2010

2. $85/bus service hour by June 2011

3. $75/bus service hour by year-end 2011

The report also contends that capital funds available from the federal government are typically transferred into operating revenue to produce a balanced budget on an annual basis. Over the last five years, the report contends, the net effect of the practice is that $10.773 milion has been removed from the capital funds account to cover “excessive operating expenses.”

As capital funds, the report says, those dollars would have been otherwise available for use on a new transit station or a rail station. [The city of Ann Arbor's share of the Fuller Road Station – a joint project to build a parking structure and bus station – is around $5 million, but no financing plan has yet been identified except that the mayor has indicated no general fund money would be used.]

Near the conclusion of the board meeting, Ajegba asked the senior staff to look at Annis’ report with particular attention to the $10.773 million in capital funds transfers and to compare that with other transit authorities.

Treasurer’s Report: Formation of a Bylaws Committee

At the conclusion of Annis’ public commentary remarks, Ajegba asked CEO Michael Ford to get an opinion from the AATA’s legal counsel, Jerry Lax, on the question of board members addressing the board as members of the public.

Later in the meeting, Ajegba explained that the governance committee had looked at the report and determined that it was not consistent with the description of the treasurer’s report in the bylaws. That description is as follows:

The Treasurer shall submit to the Board, and comment on monthly budget-expenditure reports prepared by management.

Ajegba also indicated that Lax had concluded Annis’ report was not consistent with the treasurer’s report, as specified in the bylaws.

Ajegba asked David Nacht to serve as chair of a bylaws committee to take a look at the issue. Nacht indicated that Ajegba had phoned earlier to ask him to serve in such a capacity and that he’d agreed. He quipped: “I am not going to change my mind at this moment,” which provoked laughs all around. He then joked, “I would like the bylaws to be written in Romanian.”

CEO’s Goals and Objectives

CEO Michael Ford was hired last year and started work in the summer of 2009. Since that time the board has asked Ford to work with its committees to come up with a mutually agreeable set of goals and objectives on which his evaluation would be based. That process has been iterative, and the board had before it a set of goals and objectives that had evolved from that process.

Sue McCormick led off discussion by describing them as “well-written and understandable.” However, she asked where the financial objectives were expressed in them. Ford pointed to a section in the second page that was meant to address that issue:

Using the findings of the audit, CEO will support and encourage continuous improvement teams and the principles of six sigma and lean processes to eliminate waste and inefficiencies thereby controlling costs while enhancing performance.

McCormick allowed that she appreciated the language but pressed: “What’s the metric?”

David Nacht concurred with McCormick’s concern, saying the language seemed “watered-down and mushy.” He said that Ford’s first year was not supposed to be “just a learning year.”

McCormick identified two basic issues that were problematic: (i) the formalized performance goals and objectives for the CEO were not aligned with the budget process [AATA's fiscal year starts in October; Ford's evaluation period started in July], and (ii) there’s not anything as simple in the goals and objectives as “perform within budget,” let alone something like improve efficiency by 1%.

The goals and objectives, said McCormick, need something that gives financial direction.

Nacht concurred, saying that financial direction was especially important, given how easy it is to use preventive maintenance dollars for temporary budget fixes.

Jesse Bernstein said he was not opposed to putting in some kind of metric, understanding that there was a short time-frame from now until the point when Ford would be evaluated on it.

McCormick then turned to Ford and asked if there were any issues as far as being within budget for this year. Ford indicated there were challenges and said that Nacht was right about the issue of preventive maintenance dollars being used to cover other parts of the budget.

Reflecting on the idea that they would vote on something in March and use it for evaluation three months later, Nacht said he supposed that as far as due process, they had flunked. “That’s ridiculous, it seems to me,” he said. Nacht wondered if it wouldn’t be a good idea to think of it as setting up the evaluation for next year, rather than doing it as a “pretend thing.”

Annis indicated agreement with what others had said and added that he didn’t see a target completion date. Ford responded by saying there was an accompanying work plan that reflected dates. Annis allowed that it might be simply a presentational issue.

Griffith didn’t concur with Nacht’s assessment that the board had flunked, saying “Let’s back off from calling it a failure.” He suggested that what they needed to do was to figure out how to get the evaluation of goals and objectives on a schedule and a routine that works as two-way communication.  He suggested that quarterly check-ins would be desirable.

Ajegba acknowledged the long process that had started before December 2009 in developing the goals and objectives. He noted that there were still some specific measurable outcomes in the goals and objectives that Ford could be evaluated on. He did not feel it made sense to put in metrics like a reduction in cost per service hour to $95/hour, which were not achievable in three months time, when the evaluation would take place. [That was a metric suggested in Annis' treasurer's report.]

Come July, Ajegba suggested, they could add specific metrics. For now, it was still a useful tool for evaluating a 1-year contract.

McCormick indicated she would support the goals and objectives for this year, but not for next year – they were too “activity oriented” as opposed to “outcome oriented,” she said.

Outcome: The board approved the set of goals and objectives for the CEO, with abstention by Annis.

Other Financial Matters

Also on the agenda were two other financial items. One related to the receipt of the audited financial statement for the year ending on Sept. 30, 2009. The other authorized the use of funds to hire additional personnel.

Audited Statements

Ted Annis summarized the audit report by saying the best part was that there was no substantial disagreement with management. Among the recommendations in the audit report were a surprise audit of on-demand service vendors to make sure billable hours are correct, tightening up of controls on payroll and who’s signing for what, and checking the vendor files to make sure that W-9 forms are in place.

Outcome: The board unanimously accepted the audited financial statements for the year ending Sept. 30, 2009.

Personnel Funding

A resolution before the board authorized the CEO to make some professional hires:

BE IT RESOLVED, that the Chief Executive Officer is authorized to utilize funds currently available within the FY2010 budget toward meeting AATA’s needs for sufficient professional personnel, [...]

Sue McCormick said she was supportive of the resolution’s intent but was concerned that it was open-ended – there were no funding limits and there was no indication of how many FTEs were to be added. Annis asked if McCormick was suggesting a friendly amendment on the fly – yes, replied McCormick.

After brief discussion, the board approved an amendment to specify “up to three FTEs.”

Outcome: The board unanimously approved the authorization to hire additional professional staff.

Other Public Commentary

In addition to the public commentary reported above, three others also spoke.

Sandra Holley said she wanted to draw the board’s attention to the new Plymouth Road park-and-ride lot and the impact it had on routes. To get from the north side of town to Domino’s Farms on a public route – which should be a 15-minute trip – took two hours. First you have to go down Pontiac Trail to downtown Ann Arbor, transfer at the Blake Transit Center, ride to the UM hospital, then take the shuttle. She also noted that A-Ride, the AATA paratransit service, does not consider Domino’s Farms to be inside Ann Arbor, so the fare was $9 each way, not the $2.50 fare inside the city .

In support of Holley’s depiction, Carolyn Grawi, of the Center for Independent Living, said it took a good hour spread over three routes to get from CIL to Domino’s. Grawi also alerted the board to the Transit Partnership Conference to be held April 1-2, 2010 at Mt. Pleasant, Mich. At the conference, attendees will work together to develop strategies to improve public transportation. Grawi called particular attention to the fact that one of the sessions will include participation from rural transit managers, which is germane to the AATA’s contemplation of a countywide expansion of its service.

Nancy Kaplan asked the board a question: How will the planned Fuller Road Station change bus service to that area? Board chair Paul Ajegba responded that he did not know if the logistics of that had been worked out. CEO Michael Ford indicated that there’s more work to be done on it, including modeling work. Jesse Bernstein said the advantage of a large enough bus terminus at that location was that it could handle a full busload of people. That meant it could perhaps bypass the downtown Blake Transit Center in bringing people to work at UM hospitals from Ypsilanti.

Kaplan followed up Bernstein’s comment by asking why it was not possible now to run a bus straight from Ypsilanti to the Fuller Road area. Bernstein explained that currently there is simply no location where passengers could get off the bus without blocking traffic. David Nacht wrapped up the public comment for the evening by appealing to board chair Ajegba to bring things to a close, saying that public commentary was not intended as a Q&A session.

Present: Charles Griffith, David Nacht, Ted Annis, Jesse Bernstein, Paul Ajegba, Sue McCormick

Absent: Rich Robben

Next regular meeting: Wednesday, April 21, 2010 at 6:30 p.m. at AATA headquarters, 2700 S. Industrial Ave., Ann Arbor [confirm date]

First, a significant chunk of time was invested in discussing the relative lack of success of the A2Chelsea Express, a commuter express bus service between Chelsea and Ann Arbor, plus the intent to begin offering a similar service for Canton. Nacht concluded the discussion on the Ann Arbor-to-Chelsea express bus by saying that he continued to be a “faith-based believer in commuter bus service, but I hope at some point to have some data to support my theology.”

Secondly, Nacht gave his assurance a couple of different times during the meeting that it was not the intent of the AATA board to discontinue service to Ypsilanti. And finally, Dawn Gabay, interim director of the AATA, indicated that efforts were being made “behind the scenes” in conversations with the management of Arborland to preserve the AATA bus stops on that shopping center’s property – Arborland management has indicated a preference to have the bus stops removed.

Gabay might not have to serve in the capacity of interim director much longer, as the board got an update that negotiations were proceeding apace with Michael Ford, the one final candidate for the CEO position.

Ann Arbor to Chelsea Commuter Express Bus

Board chair Nacht focused attention on the Ann Arbor-to-Chelsea express bus in an extended exchange with Chris White, who is AATA’s manager of service development. The  one-year milestone report on that operation was included in the board’s packet. The service has now been offered for a year on a “demonstration basis” funded by a Congestion Mitigation and Air Quality (CMAQ) grant, according to the report. It provides two trips each morning and evening (four trips) targeting Ann Arbor workers who live in Chelsea. There’s also one trip in the morning from Ann Arbor to Chelsea and one in the evening returning from Chelsea to Ann Arbor. [A2Chelsea Express schedule as a .pdf]

White explained to Nacht that the report reflected monthly totals and not daily numbers. The peak ridership in any given month was 1,364 rides in October 2008. It was currently averaging a little less than 1,200 rides per month, White said. In doing the rough math on the fly, Nacht noted that this sounded like it was around 55-60 passengers a day. [Dividing that across the six possible trips per day puts the average number of passengers on a bus at around 10, or about 20% of the Indian Trails motor coach capacity.]

White characterized the ridership as “quite low.” White reported that they are selling more tickets than are actually used – something that had not been expected on the scale that they were seeing it. White said the major hurdle to the service was the limited number of commuters who fit the two trips per day made by the service – it was thus operating within a severely constrained market. The service to Canton that is currently being planned, White said, would involve a much bigger market.

White reported that there had been some “consumer pushback” about the price –  people who didn’t want to use the service for all the days that they were required to purchase tickets. [Pricing for the service is as follows: $125 for a calendar month; $62.50 for a half calendar month; $40 for a ten-ride ticket; $5 exact cash for a one-way ride without a ticket or subscription.]

Nacht asked White if he had ever ridden the express service. White’s answer: Yes. White said that he and AATA staffer Tom Cornillie had talked to the regular passengers. Nacht suggested that there were two categories of people they needed to talk to: (i) those who could be riding with the service but who won’t try it, and (ii) those who ride it but who don’t love it. White contended that the people who do ride the service are, in fact, very satisfied with it.

In terms of what current riders of the A2Chelsea express enjoy, White said they don’t put value on the WiFi service or other amenities associated with the motorcoach – overhead luggage bins, reading lights, full reclining seats. [The AATA website indicates that WiFi is not provided, but White told The Chronicle at the board meeting that this amenity was available.]

Nacht asked where the data came from on the idea that people wanted the fancier coaches. He said that he recalled that former director of the AATA, Greg Cook, had always talked about the fact that people wanted the fancier coaches. White said this preference simply wasn’t true of the people who were actually riding the express bus – seat comfort was important, he allowed, but not the other amenities.

And White said that this lack of value placed on extra amenities factored into the AATA’s thinking about how to provide the service more cheaply. He said that the AATA could do the service at two-thirds the cost in-house (instead of contracting with Indian Trails) by using cheaper buses that were outfitted with highway seats.

Nacht briefly contemplated the idea of coming up with a different category to put drivers in for the commuter service – perhaps using minivans. Nacht wondered if there could be cost savings not just for the vehicles, but also for the drivers, if commuter service drivers were not paid according to the regular driver contract. White cautioned that there would be certain economies of scale sacrificed if they went with smaller vehicles. He noted that van pools are the primary forms of competition to the service. Board member Charles Griffith confirmed with White that the expansion of service to Canton was going to be provided under the same Congestion Mitigation and Air Quality (CMAQ) grant that was funding the Chelsea service. Canton had been identified as a good area to target, White said, because of its high density of University of Michigan employees.

Nacht asked if there was money for a survey of riders who live within the Chelsea “catchment area” who could ride it in order to check for awareness of the service. White said that announcements had been sent out to all Chelsea area residents with their water bills. Board member Jesse Bernstein wanted to know to what extent the service was subsidized. Charles Griffith explained it was a 1:3 ratio – one third of the cost is covered by riders.

Nacht asked if anyone had been hired to consult, someone who’s done successful commuter buses elsewhere. White replied that the people with such expertise have usually dealt with situations where it’s a 40-50 mile commute to major urban areas [Chelsea is about 16 miles to the west of Ann Arbor]. Nacht wanted to know if the AATA was really ready to offer service to Canton. “Have we learned enough?” he asked. White responded by saying that the grant was getting old [it's now starting the second of two years]. Board member Charles Griffith suggested that Canton represented an opportunity to try lower cost alternatives, allowing that it would not permit a direct comparison between the Chelsea situation.

Nacht expressed the sentiments behind his questioning: “I have concerns that we are experimenting without sufficient analysis or expertise, using too much guesswork … I’m a huge commuter service supporter, but I have no sense we have a direction about how to improve.” Nacht said that after three months and at the six-month mark he had heard, “It’s early,” but after a year, he felt like he was not comfortable that the AATA was ready to actually “go into this business.”

Bernstein, for his part, was somewhat more sanguine. “We’ve got data,” he said, “and the biggest problem is people’s schedules, which we can’t change.” Charles Griffith said that the AATA could not go into business with the service as it was offered to Chelsea, because it won’t pay for itself. On that basis, he argued for the idea that lower-cost options for providing the service need to be explored.

Nacht suggested that White and Cornillie conduct a very informal focus group study by heading out to Chelsea on a Saturday afternoon and talking to people. White said that they have data on 30-40 people who have considered the service and have tried it, but who don’t use the service. This data comes from the two-week free trial. The idea was discussed of adding one later trip in the evening to provide the psychological assurance that there would be a bus coming later in case someone needed to stay longer at work, so they wouldn’t feel stranded.

Speaking to the idea of an additional evening trip, board member Sue McCormick said that based on her own experience, leaving home for work is fairly predictable, but that leaving work is always unpredictable. There would be the same challenge, she said, when commuter rail was implemented with relatively few options.

Rich Robben said he felt that the price of gasoline had a lot to do with it. Although the price per gallon right now stands around $2.50 a gallon, it was projected to be around $3.50 this time next year, he said.

Nacht wanted to know what the marketing efforts had been like for the Chelsea service. White said that the most successful approaches had been employer contacts [University of Michigan] and word-of-mouth – referrals can earn riders a discount.

Why the long discussion on the topic of the Ann Arbor-to-Chelsea express bus service? Nacht said that commuter bus service was crucially important, because it had been pointed to as one of the key components of expanded countywide service for the AATA.

Arborland

The AATA operates buses on three routes (numbers 4, 7, 22) using stops inside Arborland shopping center. Over the course of at least the last year, conversations have taken place between the management of the shopping center and the AATA, concerning the use of property inside the shopping center for bus stops. Although the AATA’s website does not list Arborland among its “park and ride” locations, some riders apparently use the lot for that purpose. Previously, an officially designated Park and Ride lot at Maple Village on the west side of Ann Arbor was “evicted” when no agreement could be reached between that shopping center’s management and the AATA.

The recent trajectory of Arborland-AATA communications is reflected in minutes from the the AATA’s performance monitoring and external relations committee.

From the draft minutes of the Feb. 13, 2009 performance monitoring and external relations committee:

Develop plans for park and ride lot near Washtenaw and US-23 to replace Arborland. Timing/Target completion date: April 1, 2009.

From the draft minutes of the March 11, 2009 performance monitoring and external relations committee meeting:

Mr. White reported that AATA has reached an agreement with Arborland Management on parking at Arborland. In the past two weeks, AATA staff has been working with riders to make sure they park in the designated area. This effort is intended to permit continuing AATA operations in Arborland. For the long term, staff will be looking for an alternate site.

From the draft minutes of the May 13, 2009 performance monitoring and external relations committee meeting:

Mr. White said that the owner of Arborland informed AATA a year ago the owner wanted us to leave shopping center last year, with no reason given. AATA contacted the management company and worked with them to designate a parking area away from the stores. The management company acknowledged that our efforts were successful, but we recently received a notice to vacate Arborland by July 1. Discussion of the situation resulted in a plan under which Ms. McCormick would evaluate the city’s leverage with Arborland and notify Mr. Bernstein, Mr. White and Ms Stasiak. Mr. Bernstein would follow up with Border’s and Arborland management to see if something could be worked out. Mr. White noted that vacating the center in mid schedule would cause additional problems and AATA would like to stay at the least through August, when the new schedule would go into effect. He added that some reconstruction could be done in 2010 at the shopping strip across Washtenaw Avenue from Arborland to allow for buses to pull in and wait.

At the May 20, 2009 board meeting, board member Charles Griffith asked about the situation with Arborland. Dawn Gabay, interim director of the AATA, said there had been behind the scenes work with the city and board memberJesse Bernstein, who are trying to resolve the situation, but they could not yet make an announcement on that.

Ypsilanti Bus Service

Part of the news from last month’s April 2009 AATA board meeting was that the board voted to adopt fully-allocated costs for  its “purchase of service” agreements (POSAs) with municipalities outside of Ann Arbor. Ann Arbor funds its bus service through a dedicated millage. That means that the AATA would specify the full cost of providing the service – not some fraction of it – in its POSAs. The increase to full allocation is scheduled to be put into place incrementally, with the fully-allocated costs not achieved until 2012. The $223,316 cost of Ypsilanti’s contract for fixed route service in 2009 would be increased by around $22,000 in 2010 to $245,888 and would increase further to $291,034 by 2012.

That prompted questions during public commentary both at the start and the end of the meeting from people concerned that service to Ypsilanti would be cut off. That concern came in light of recent reports from Ypsilanti, according to AATA interim director Dawn Gabay, that Ypsilanti was looking at around a $100,000 shortfall against the POSA put forward by the AATA.

One resident asked about Ypsilanti this way, “Does service just stop in October?” That’s when the AATA’s next fiscal year (2010) starts. The AATA has a schedule for arriving at its FY 2010 budget – which runs from Oct. 1, 2009 to Sept. 30, 2010 – that calls for approval by the board at a mid-September 2009 board meeting.

On both occasions when the issue was brought up, board chair Nacht was emphatic that it was not the intent of the board to discontinue service to Ypsilanti. Terminating the bus service to Ypsilanti, Nacht said, was not a direction the AATA wanted to go.

Speaking to The Chronicle by phone a few days after the meeting as well as writing in an email, Ypsilanti Mayor Paul Schreiber clarified that it would not be a question of all service to Ypsilanti disappearing in October. The dialogue from now until October between Ypsilanti’s city manager, Edward Koryzno, Jr., and the AATA would center on how much service could be maintained for a given purchase of service contract, Schreiber said. Koryzno requested a budget of $158,967 in FY 2010 to fund AATA service and had gotten support from Ypsilanti city council for that amount. The  difference between that request and the AATA-proposed POSA for fixed route service of $245,888 is the financial gap, if service routes were to remain unchanged.

In his budget message to council, Koryzno said about the proposed level of funding: “Adopting the proposed budget at this amount, allows the City time to negotiate price and service levels with AATA  before the current contract expires in October 2009.”

Schreiber said he was disappointed that he was now in a 2-5 minority on Ypsilanti’s city council on the issue of funding bus service:

… funding the buses is a top priority. Ypsilanti residents depend on the buses to get to work and shop. Partially funding the POSA sends a message that Ypsilanti does not value bus service and mass transportation – regardless of a Depot Town rail stop. The city of Ypsilanti needs to prove to the rest of Washtenaw County that mass transportation is important by funding bus service.

Useful documents for understanding that presentation include an analysis of Ypsilanti route productivity and an analysis of fixed and demand route costs.

Other Public Commentary

Larry Krieg: Krieg spoke for the organization Wake up, Washtenaw. He said that it was distressing to hear that Arborland management continues to want the AATA to get out of the parking lot. In connection with the refurbishment of the Blake Transit Center, Krieg suggested the exploration of joint development strategies with businesses offering services within the center. Nacht responded by saying, “We’ve tried that before, you know.” [This was an allusion to the attempted development of the Fifth and William location by the AATA as a mixed-use facility before it was purchased by the city of Ann Arbor.] In connection with the Blake refurbishment, Krieg also suggested that consideration be given to a long-term strategy of unifying the transportation centers for the north/south rail, the east/west rail and the bus station. Krieg said that he was encouraged that board member Jesse Bernstein had contacted the board’s Toledo, Ohio counterparts in connection with the proposed north/south commuter rail.

Carolyn Grawi: Grawi gave an update from the Center for Independent Living perspective. She announced that there would be a picnic on June 6 at 3941 Research Park, to which everyone was invited. She also announced that the IRide would be taking place from Aug. 6-9, 2009 – it’s a bicycle tour from Holland, Mich. to Ann Arbor. Grawi said that she expected Nacht participate. [While her remark could fairly be described as lighthearted, it was prompted by the fact that Nacht had ridden his bike to the board meeting.]

Thomas Partridge: When Partridge began his public commentary at the conclusion of the board meeting, board chair Nacht took the opportunity to ask Partridge about the quality of the bus service he was getting. “How’s your bus service these days out in Scio?” Nacht asked, continuing with, “What’s it like? What do you have to do to get the service?” Partridge described how he made reservations using the paratransit ride service. As far as access to the regular service, he said there are problems on a daily basis. The People’s Express circulator, Partridge said, runs only in a limited area, and only from 7 a.m.to 6:30 p.m. He said he thought that the one-year grant being used to fund the service ended this summer. Asked what one thing the AATA could do to make his life better, Partridge spoke on a range of themes, including the need to subsidize transit outside the city of Ann Arbor. He also said that the AATA needs a legal appeal system, which he said was not clearly delineated anywhere. Nacht directed staff to mail Partridge a copy of the appeal system.

Rebecca Burke: In reporting from the local advisory council, which she chairs, Burke said that their agenda had consisted of numerous attempts to develop a code of conduct for LAC member behavior and how to address complaints.

Other Announcements: Bonds, CEO, Surveys

Nacht announced that he had had a conversation with a bond lawyer. The purpose of the conversation was to explore the question of whether it was possible for the AATA to raise money by issuing bonds. The answer, said Nacht, was “maybe.” A portion of the costs, he continued, would need to be backed by an income stream, possibly constituted by grants. Nacht stressed that it was the vaguest of conversations.

Board member Sue McCormick reported on the status of negotiations with Michael Ford regarding his hire as the CEO of the AATA. She said that two negotiation sessions had taken place but as yet no consensus agreement had been reached. There would be one more before an offer would be made. She said that Ford was out of the country this week and next so there would be no progress for the next 10 days. Nacht commented that it was good for Ford to get his foreign travel out of the way now. [This was an allusion to the friction that had developed between the board and the previous director of the AATA, Greg Cook, over travel expenses.]

Board member Rich Robben reported out on the planning and development committees activities, in the absence of Ted Annis, who usually delivers that report as the committee’s chair. Robben highlighted the 10%, 20%, and 40% revenue reduction scenarios that the organization was trying to plan for as contingencies. He said that they continued to explore how to reduce service hour costs. The committee was working on a timeline for budget preparations [see above]. They were looking at route structure analysis especially in the light of the north/south and east/west commuter rail plans.

Reporting from the performance monitoring and external relations committee, McCormick said that at their Wednesday, May 13 meeting there had been no major variances from expected performance. The committee had focused on market research for expanded services – it received 10 proposals, all of them very high quality. The timing of launching that research would depend on grant approval. She said that Jesse Bernstein was helping to assist in the design of that survey. She also reported that the onboard rider survey proposals they had received were under evaluation.

Present: Charles Griffith, Jesse Bernstein, David Nacht, Rich Robben, Sue McCormick.

Absent: Ted Annis, Paul Ajegba.

Next regular meeting: Wednesday, June 17, 2009 at 6:30 p.m. at AATA headquarters, 2700 S. Industrial Ave. [confirm date]