Michael Ford, CEO of the Ann Arbor Area Transportation Authority, just before the start of the Feb. 20, 2014 AAATA board meeting. (Photos by the writer.)

That main item was a board vote to place a millage request before voters on May 6, 2014. The request – on a 0.7 mill tax that would be levied to pay for additional services over the next five years – would need a majority of votes across the city of Ann Arbor, the city of Ypsilanti and Ypsilanti Township to be approved.

The millage is supposed to pay for a set of service improvements over a period of five years. Those improvements include increased frequency during peak hours, extended service in the evenings, and additional service on weekends. Some looped routes are being replaced with out-and-back type route configurations. The plan does not include operation of rail-based services.

The AAATA has calculated that the improvements in service add up to 90,000 additional service hours per year, compared to the current service levels, which is a 44% increase.

The board’s vote to put the question on a May 6 ballot was unanimous, and came after more than a dozen people spoke during public commentary at the start of the meeting, urging the board to take the step of making a funding request of voters.

Elected officials as well as leaders of the faith, labor and disability communities all spoke in favor of making the request of voters to fund the service expansion, citing arguments based on economic and social justice. They pointed to the long period of planning that had begun about three years ago with a much more ambitious effort to expand service countywide. The current, more limited approach – focused just on the “urban core” area of the city of Ann Arbor and the two Ypsilanti jurisdictions – was a way to meet urgent transportation needs, they said.

After the board’s vote, during public commentary at the end of the meeting, one Ypsilanti resident recalled her own history marching with Rosa Parks down Woodward Avenue in Detroit. Although she’s been involved in activism for many years, she told the board, she could not think of anything that she was in the room to witness that was this important to her personally and to the city in which she lives.

Compared to typical AAATA board meetings, the atmosphere was relatively boisterous, as supporters at times chanted, “More buses, more places, more often!” But one speaker at the end of the meeting cautioned against the celebratory mood, saying there was now a lot of work to do. A counterpoint to the solid support the board heard from most of the speakers had been offered by the very first speaker of the evening. He asked the board to delay the election until November, arguing that it would save the roughly $80,000-$100,000 cost of holding the May election, and result in broader participation in the vote. Another point raised by that speaker was concern that everyone pay an equitable share for the additional transportation.

Although the main event was the resolution that placed the millage question on the ballot, the board’s agenda featured nine other items, many of which were at least tangentially related to the millage question.

For example, in other action the board approved a change to its budget to allow for up to $100,000 to be spent on the cost of holding the special election. The board also approved a funding agreement with Ypsilanti Township, to make explicit what will happen to the township’s existing purchase of service agreement (POSA) if the millage is approved. And as part of the board’s routine annual business, it approved a funding request to the state of Michigan – but did not factor in an increased level of service in the budget submitted to the state. That was done on the instruction of the Michigan Dept. of Transportation. That request can be amended if the millage succeeds.

Also at the Feb. 20 meeting, the board approved changes to its bylaws. Those changes were prompted by a change in governance to the AAATA last year – the addition of the two Ypsilanti jurisdictions. With the increase from seven to 10 members, the definition for the number of board members constituting a quorum or a majority needed to be modified. Out of that review of the bylaws came a decision to increase public speaking turns from a two-minute time limit to three minutes.

In other business, the board approved the hiring of a consultant to help the AAATA with a planned upgrade to its computer-aided dispatch and vehicle locating software. The board also approved the recently completed audit report for the 2013 fiscal year, which ended Sept. 30, 2013.

Another item approved by the board was a new contract for unarmed security services. And finally, the board authorized a contract for an insurance broker.

Among the various operational updates received by the board was the announcement that the newly constructed Blake Transit Center in downtown Ann Arbor would be open by March 17, 2014.

Ballot Question

Several items on the Feb. 20 agenda related to putting a 0.7 mill tax proposal on the May 6, 2014 ballot.

Ballot Question: Public Commentary – Meeting Start

Brian introduced himself as a 10-year Ann Arbor resident. He asked that the board delay the placement of the millage question on the ballot until the November 2014 general election. Given a multi-million dollar investment, a delay of six months would not be that significant. He felt there was no real reason not to talk to “the majority of citizens who want into this, or potentially not into this.” He pointed to the additional $80,000-$100,000 the AAATA would need to spend to hold a special election in May instead of waiting until November.

He also asked that all communities pay an equal millage rate. [The millage to be levied by the AAATA, on which voters will decide on May 6, will have an equal rate across all three jurisdictions. The point being raised was that the city of Ann Arbor and the city of Ypsilanti already levy city millages that are dedicated to transit and are passed through to the AAATA.] Ann Arbor property owners have paid a millage for many years, he pointed out, and that has bought a lot of capital, infrastructure and equipment to support the transportation system. Ann Arbor residents have fronted a lot of the cost to the AAATA, so it would be fair for everyone to pay equally into the system. He concluded by thanking the board for their time and service to the community.

State representative Jeff Irwin (D-53), an Ann Arbor resident, thanked the AAATA for the excellent service that is provided in his community. He reported that he’d had the opportunity to use the service many times. It was wonderful that a small Midwestern like Ann Arbor can have a bus service as great as the AAATA.

State representative Jeff Irwin (D-53).

He supported the AAATA’s effort to continue to examine and propose to the public a plan to really expand that service – to increase the amount of service in the evenings or on Sundays. But he also encouraged the exploration of expanding service in a more thorough way outside the boundaries of the city of Ann Arbor. That would respect the economic reality of the region we live in, Irwin said. It’s important to do a better job of serving Pittsfield Township and Ypsilanti Township and the city of Ypsilanti.

This is a great idea, Irwin said, because when you connect people and places, then great things happen. That’s because people have an opportunity to get to the doctor or get to church or get to the store. Businesses and people also connect, he said. He asked the AAATA board to continue the effort to propose new options for citizens, so that the transportation network in Ann Arbor can expand in a complete way to include all of Ann Arbor’s neighbors “in a way that our citizens deserve.” He hoped he had a chance as a citizen to vote on this issue – because we’ve been talking about this for a long time. “The community is ready for expansion, I believe, and I’m certainly ready for expansion.”

Mark Coryell introduced himself as president of the American Federation of Government Employees, Local 3907, which represents employees of the Environmental Protection Agency lab in Ann Arbor. He was also speaking on behalf of WeROC – the Washtenaw Regional Organizing Coalition. He asked those who were there to support the board’s vote to stand – and around 30 people rose from their seats. He called the analysis that the AAATA had put into the question “really quite impressive.” He called Irwin’s comments on point, and told the AAATA it was a national leader. What WeROC sees is a good community investment in the future, at a time when other communities are disinvesting in the things that would bring them a future – future jobs, future growth and future quality of life. WeROC represents a lot of labor and faith-based organizations, he said.

And the people WeROC represents and ministers to would be using these services, Coryell said. He added that we shouldn’t take for granted that everyone owns a motor vehicle. When you arrive in southeast Michigan from a major metropolitan area in another part of the country, it’s amazing how dependent Michigan is on the motor vehicle, he said. “We are behind the times in adjusting to the new future of sharing our transportation systems,” he said. When the snow melts, people will be reluctant to drive on the roads, and he ventured that a lot of people would want to take the bus to work. So WeROC sees a lot of benefit to those people that the organization represents.

Ypsilanti mayor pro tem Lois Richardson told the board she was speaking with her political hat.

For workers, it would help get them back and forth between a job, he said, and public transportation makes it cheaper for them. WeROC supports the millage, Coryell concluded, and would like to see the board vote affirmatively.

Lois Richardson introduced herself as mayor pro tem of the city of Ypsilanti.

It’s been a real pleasure to work with the AAATA’s CEO, Michael Ford, over the last year or two to bring more service into Ypsilanti, she said. She’s looking forward to the expansion and she would support it. She’s a member of WeROC, she noted, but right now, she was speaking with her “political hat.” She appreciated the bus service in Ypsilanti.

She had moved away from the area for a while, and when she first moved back, she was a regular transit customer and always got good service. Now, she reported, she’s an occasional transit customer. And the service she gets is good. She thanked Ann Arbor for the years it has supported the bus service. She was looking forward to expanded service in Ypsilanti. Richardson congratulated Ford for doing a good job bringing the effort to this point: “You need my help? Call me.”

Dave Hendricks introduced himself as pastor at Emmanuel Lutheran Church in Ypsilanti.

He wanted to look at the issue from a religious perspective. His congregation serves a population in Ypsilanti that is sometimes forgotten, he said. They provide food pantry options, clothing and a hot meal during the week. The folks who need those services, he said, are the people who need bus services.

Pastor Dave Hendricks of Emmanuel Lutheran Church in Ypsilanti.

Just from a theological perspective, he and his congregation feel that the transportation expansion is an opportunity to serve people who are sometimes marginalized. He hoped the AAATA would continue its efforts.

Roderick Casey introduced himself as an elected Democratic delegate for Ypsilanti Township, and also a member of WeROC. He told the board, they were doing a great job. In the 36 years he’s lived here the population has boomed, he said. But he was now very concerned about a phenomenon that has come to Ypsilanti: insurance redlining. It’s really hurting a lot of people in the city of Ypsilanti and Ypsilanti Township – because it causes the price of insurance to go up. So right now transportation expansion is needed. He asked the board to continue to support expansion of service.

Jim McAsey introduced himself as an organizer with the Graduate Employees Organization, also a member of WeROC. “Is WeROC in the house?” he asked, and that drew applause and cheers. “We believe passionately that public transportation is a social justice issue,” he said. There are many people in the community who don’t own cars who still need to get around. GEO members don’t make a lot of money and cars are very expensive, he said. So a lot of GEO members depend on buses – because rent is expensive in Ann Arbor and they need to get back and forth. Many GEO members live in Ypsilanti and they have trouble getting back and forth on the weekends or late at night. GEO members need better public transportation, he said. “The bus system here is fabulous, but let’s make it even better,” he told the board. GEO supports the millage. “Let’s get it done. We’ll help you get it done,” he concluded.

Lionel Swan introduced himself as an employee of the Washtenaw Intermediate School District (WISD). He works in the young adult program – which is for 18-26 year-olds. The WISD tries to teach skills like being able to get to their jobs. These are kids with cognitive disabilities, he said. The bus system is “absolutely essential in our program,” he told the board. He agreed with everyone who spoke in favor of expansion. He allowed there were some routes he would like to see extend a little farther. He told the board he rode the bus about four times a week – and he was always impressed by the timeliness and cleanliness of the buses and the friendliness of the drivers toward a very needy group of folks.

The proceedings were documented by several people in the audience using smartphones.

Sam Facus introduced himself as a graduating senior at the University of Michigan. He’s very dependent on the bus service in Ann Arbor, he said. As a graduating senior who’d like to stay in the community and not own a car, it’s very enticing to him to have better public transit options to get where he needs to go and to live a sustainable life.

Joel Batterman told the board he now lives in Detroit, but he’s an Ann Arbor native, so he feels a close connection with his hometown. Since he was a high school senior at Huron High School, he’s been interested in how to improve transit – in the area and in the wider Detroit region. He now works with MOSES, which does congregation-based community organizing in Detroit. WeROC is the Washtenaw County affiliate. Better public transit is a key pillar to a prosperous region, he said.

He’d heard some concerns about the multi-jurisdictional nature of the millage. It’s a new and different thing for this community, but it’s urgently needed, he contended. Growing up in Ann Arbor, he didn’t get over to Ypsilanti that often. But he’s come to understand that the communities – in the county and in the region – are really intertwined. “We can’t allow the boundaries that Thomas Jefferson’s surveyors drew 200 years ago to get in the way of providing transportation … wherever people need to go.” Batterman concluded his remarks by saying he was looking forward to extended hours on Route #2 and Route #4 whenever he’s home.

Martha Valadez, an organizer with Partners for Transit, told the board she was happy and pleased to see the turnout at the board meeting in support of the expansion. She told the board the attendance at the board meeting by residents of all three jurisdictions was evidence that they really are adamant about the need for more transit now.

Her group was happy to see that the planning and development committee had recommended the 0.7 mill tax be placed on the ballot. It’s important that additional services be put in place this year, she said. Last week, Partners for Transit held a coalition meeting with over 35 organizations that are really passionate about transit. After the board’s decision, she said, she hoped they would be able to move forward by getting the word out about the importance of transit expansion.

Susan Borey [unconfirmed spelling] introduced herself as a former member of the Washtenaw County committee for disability issues. At that time she was employed and mostly used taxicabs. Now she’s unemployed and a senior, and she relies on the buses. She called the AAATA bus drivers the “finest ladies and gentlemen I have ever known,” which drew immediate applause.

Ian Robinson, president of the Huron Valley Central Labor Council.

She was very concerned about maintaining the quality of service in Ann Arbor as the AAATA expands. For example, seniors need bus shelters and benches. There’s no longer a shelter along Huron Street near Lurie Terrace, she said. She pointed out that there’s not good public transportation that lets you off directly at the Quality 16 theater on Jackson Road, in Scio Township. She also described how the bus service is wonderful in this town – but bus stops are not cleared of snow. The curbs are absolutely and positively treacherous, she said. She couldn’t imagine how people with disabilities manage with wheelchairs and scooters.

Ian Robinson introduced himself as a University of Michigan faculty member and the newly elected president of the Huron Valley Central Labor Council.

The council will be discussing endorsing the millage to support the expansion of transit at its next meeting – the first Tuesday in March. He plans to argue in favor of it on two grounds: (1) regional development; and (2) social justice.

It’s critical to have sound regional infrastructure, Robinson said. It’s critical that people can still get transportation to work. Good public infrastructure is a core principle of sound economic development, he said. As far as social justice goes, he added, the labor council stands for all working people.

Ann Arbor Center for Independent Living (CIL) director of advocacy and education Carolyn Grawi addressed the board. She told the board that if there were better transit across the state, she could have arrived 25 minutes earlier.

Carolyn Grawi, Ann Arbor Center for Independent Living (CIL) director of advocacy and education.

She’d just come from Lansing. She then led supporters in a chant: “More buses, more places, more often!” We need services everywhere, she said. Some community members across all three areas of the urban core do not have service today: “We need services to get where we need to go.”

The services from AAATA have been outstanding for many years, but improvement in necessary, Grawi said. We need to make sure that anyone who wants to ride the bus or wants to board a paratransit vehicle can get to where they need to go, as often as it’s necessary.

Right now there are people who are missing medical appointments and who can’t get jobs because of a lack of transportation. The AAATA gets lots of people where they need to go on a timely basis, she said. But there are a lot who are still waiting to get there.

Grawi concluded by telling the board that Ann Arbor CIL has endorsed the millage proposal. The Washtenaw Bicycling and Walking Coalition (WBWC) also endorsed the millage, as did Partners for Transit.

She concluded with another round of chants: “More buses, more places, more often!”

Ballot Question: CEO’s Remarks

About the millage request, CEO Michael Ford called the vote “the big ask that’s on the agenda.” He called the vote to put the millage on the ballot one of the most important actions taken by the AAATA in the last decade or so. The board had demonstrated its commitment to the vision last month when it approved the five-year program. The next commitment was to take a step toward approving the funding component of that program, Ford said. He believed that the AAATA had sufficient support, saying “I’ve heard a lot tonight.” He pointed to grass-roots organizations, businesses, community leaders, employees who had participated in the planning process – as well as bus riders.

Ford said that to get to this point, the AAATA had engaged citizens, business leaders, elected officials in pursuit of a plan to provide improved public transportation service. The AAATA had heard over and over again about the unmet service demands. The leaders of the urban core communities had supported the effort. Ford then ticked through the names of those who’d participated: Ann Arbor mayor John Hieftje; Ann Arbor city councilmembers Sabra Briere, Sally Petersen, Stephen Kunselman and Chuck Warpehoski; Ypsilanti mayor Paul Schreiber; Ypsilanti city councilmember Pete Murdock; Ypsilanti city manager Ralph Lange; Ypsilanti Township supervisor Brenda Stumbo; and Ypsilanti Township clerk Karen Lovejoy Roe.

Supported by that leadership, Ford said the AAATA had developed the five-year service plan. Based on input from the community, riders and others, adjustments had been made to the service plan. The final component is the funding proposal, Ford said.

Ford stated that the funding proposal had been fully supported by a financial task force led by former Washtenaw County administrator Bob Guenzel. Ford invited Guenzel to the podium to summarize the task force’s report.

Ballot Question: Financial Task Force

Guenzel began by congratulating Ford and the board for bringing the process to this point. He put the current financial task force in the context of the original task force that dated back to 2011, when the now-demised countywide initiative was underway.

From left: former Washtenaw County administrator Bob Guenzel and AAATA outside legal counsel Jerry Lax.

The AAATA had asked some people to come together to test that countywide plan, to see whether it was accurate in its assumptions about services, and also about the amount of money it would take to fund that plan.

A sub-group had been established to work closely with AAATA staff and issued a report saying the countywide plan was well prepared, complete and reasonable, he said.

Now, a couple of years later, Guenzel continued, we’re at a very different point. The group was asked to conduct the same kind of review for the five-year urban core transit plan.

The group had met in December, January and February, Guenzel reported. That resulted in a consensus finding that the AAATA’s methods and assumptions related to that plan were reasonable.

He read aloud from the document produced by his work group [.pdf of Feb. 5, 2014 financial task force finding]:

Findings and Recommendations. The FTF recognizes the accomplishments of the Service Review Sub-Group, as follows:

• The Service Review Sub-Group was charged with examining a Five Year Transit Improvement Program budget containing a list of proposed services for the Urban Core communities of Washtenaw County. As the result of the deliberations, analysis, and effort, the Service Review Sub-Group determined that the funding analysis (Appendix 1) is reasonable.
• The Service Review Sub-Group reviewed the development of the service program that includes later night service on weekdays, more hours of service on weekends, new service for both the east and west sides of the service areas, and more service for seniors and people with disabilities. The Service Review Sub-Group found no material issues with the method used in calculating the service hours and the proposed schedules. (Appendix 2)
• The Service Review Sub-Group discussed the assumptions made for the ridership level estimates identified in the program. Staff shared the estimates of Steer Davies Gleave (SDG) estimates and increases seen on Route 4 serving Washtenaw Avenue combined with the general system growth over the past ten years, as data supporting assumptions regarding ridership growth. SDG estimates were interpolated by Authority to arrive at annual growth rate assumptions. (Appendix 3)
• The Service Review Sub-Group further discussed revenue vulnerabilities related to ridership forecasts and 2012 legislation repealing the personal property tax beginning in 2014. The Service Review Sub-Group requested a ‘what-if’ analysis of two questions:
  1. What is the financial risk of a 25% shortfall in projected ridership growth, and therefore passenger revenues?, and
  2. What is the financial risk of an uncompensated shortfall in the personal property tax revenues? (The 2012 legislation will exempt personal property from taxation by local jurisdictions by 2023, but a referendum scheduled for August 2014, if successful could make up at least some fraction of the revenue shortfall.)

About the personal property tax question, Guenzel summed up the financial task force view as: “Who knows for sure?” It might affect the AAATA by a maximum of about $300,000, Guenzel said. There’s enough flexibility in the long-term plan to take care of that, he added. A shortfall in ridership projections could also be absorbed by the plan, Guenzel said. So the task force felt confident in the soundness of the planning work the AAATA had done.

Guenzel summed up by recommending that the financial task force be allowed to continue to meet from time to time. More importantly, he continued, the funding level is complete and they found it to be reasonable. So the task force found the AAATA’s assumptions to be reasonable – concerning the level of services and that a 0.7 mill tax, combined with the rest of the revenue, would support that program over five years.

After Guenzel concluded his remarks, Ford wrapped up by saying, “Tonight it’s up to you, the board, to take the next step, to make this plan a reality.”

Ballot Question: Issue Analysis

AAATA strategic planner Michael Benham gave a presentation to the board on the issue analysis. From the board’s information packet, here are the pro-con arguments listed for making a funding request.

Arguments in favor of TheRide placing a property tax levy on the ballot:

• The need for improved transit service is immediate as evidenced by the many requests for service that TheRide has received during the planning period and on a day-to-day basis, and TheRide has worked with the community to propose a specific program of services that responds to that need.
• Millage funding will allow TheRide to leverage State and Federal dollars that would not otherwise come to the region. It is estimated that each new local millage dollar will attract 2 additional dollars of State and Federal money.
• TheRide’s funding sources have been relatively fixed for many years, while demand for service in all areas has increased. TheRide provided a record setting 6.6 million trips in 2013 for example. The unmet need for transit services will only be satisfied by additional service, which must be paid for with new funding sources.
• In the particular case of Ypsilanti City, their general revenue millage has reached its cap and an Authority millage is the only way to pay for additional transit services.
• As TheRide system becomes increasingly regional – with many routes crossing jurisdictional boundaries – it makes sense to begin the transition to a more regionally funded system.
• Community surveys conducted in 2011 and 2013 indicate that support for transit is extremely high, that TheRide is regarded as a very well-run organization, and that there is significant willingness on the part of voters to support a millage for transit.
• TheRide’s reputation as a very well-run organization is reinforced by comparisons to other transit agencies, as evidenced by the findings of our recent Peer Comparison.
• The recent Annual Audit and the findings of the Financial Task Force also reinforce TheRide’s reputation as financially sound and well-managed.

Risks / Issues related to placing a property tax levy on the ballot:

• The most obvious risk is that a majority of the people will not vote for the millage and it will not be approved. However, if this was the outcome, TheRide would continue to provide service, making minor improvements within existing budget constraints, as it has for many years. Existing service would continue and unmet needs for transportation would remain unmet.
• Passage of an Authority millage will create a new level of accountability for TheRide, requiring the Authority to ‘prove’ the value of its services every five years (and this might be considered an advantage by some). TheRide’s Continuous Improvement Program will need to expand to track new services and make any needed adjustments.
• The emergence of a 4-county Regional Transportation Authority has raised a concern that a separate millage might be sought by that organization. The State Law that created the RTA provides for additional regional taxing mechanisms that might be more closely aligned with and acceptable for funding regional transportation services than local property tax millages. There is no Regional funding request planned currently. It could be years before the RTA identifies its preferred funding level and approach. Most importantly, the RTA is primarily concerned with regional (4-county) transit issues while TheRide’s program is focused strictly on meeting local transportation needs with local services.
• Many of the proposed services in the program are during off-peak travel times like evenings and weekends when fewer people are traveling. Ridership can take years to build to expected levels. TheRide will have to carefully manage expectations so that evolving services are given a chance to develop.
• TheRide’s funding model is not well understood by some, which has led to questions as to whether the funding model is ‘fair’. The 5YTIP has been designed to ensure that each community pays for the service they get, either via a millage or through a Purchase of Service Agreement. Ann Arbor will pay more for service because Ann Arbor will receive more service.  The other communities pay less for service because they get less service. POSA communities pay for their services based on fully allocated costs. A particular concern voiced by several individuals is that the transit millage should be ‘flat’, that is, levied at the same rate throughout TheRide’s jurisdiction. The recommendation for funding is a flat 0.7 mil levy across the entire jurisdiction of the Authority.
• A question has been raised about the role of passenger fares in paying for the services proposed in the 5YTIP. Passenger fares currently account for about 20% of operating costs, which is typical for a transit organization of TheRide’s size. The funding proposal for proposed new services is expected to maintain that ratio over the long run. TheRide’s last fare increase was implemented in two phases, with an increase from $1 to 1.25 in May of 2009 and an increase from $1.25 to $1.50 in May 2010. There were corresponding increases in reduced fares for special users at the same time. Fares for advanced reservations on A-Ride (services for seniors and individuals with a disability) also increased during the same time period from $2.00 to $2.50 to $3.00. TheRide’s fares are in line with those seen in the industry as a whole. It is believed that another fare increase so soon after the 50% increase during 2009- 2010 would be excessive and detrimental to ridership. Staff recommends consideration of a fare increase during the implementation period of the 5YTIP, but not to include it as a foregone conclusion.

Ballot Question: Survey Results

Reporting out from the planning and development committee, board member Eric Mahler summarized a presentation from Hugh Clark of CJI Research that was given to the committee at its Feb. 11 meeting. [For earlier Chronicle coverage of those survey results, see: "Survey: Majority Favorable on Transit Tax"]

The survey of 842 registered voters in the three-member jurisdictions of AAATA was conducted by CJI in late 2013 to gauge support for public transit and possibly a future millage. It found that 63% of those surveyed would probably or definitely support a transit millage.

AAATA board member Eric Mahler.

Mahler highlighted some of the other results of the survey: about 54% think that changes in the area are taking us in the right direction; and 59% think that in general, development improves things, while 21% think that development hinders the area. That’s counter to national trends, Mahler said. People here are feeling good about the direction the area is taking and about where they live, he said.

Of those polled, 57% reported that they’d used the AAATA in the last year, Mahler said. [The survey question asked if the respondent or anyone in the household had used the AAATA in the last year.] Of those surveyed, 79% had a favorable opinion of the ride, Mahler said. Only 6% had an unfavorable opinion, he said.

On the millage question, Mahler noted that for a survey question asking if respondents had heard anything about the proposed expansion of the AAATA’s member jurisdictions, 49% said they had not. About 45% said they’d heard something. Of those who use the AAATA at least once a month, 53% said they were likely to use the new service, Mahler said.

Mahler also noted for the survey question on additional services for seniors, 45% said they’d be in favor of more taxes to support additional services for seniors, while 40% said they would not. Mahler said that even without the educational effort that’s still to come, those numbers are good news for the AAATA.

When asked what priorities public transit should have, the top response was that public transportation supports seniors and those with disabilities – with 93% saying that is an important aspect of public transportation. Attracting jobs came in at 85%, and 83% said that it gets more people to more jobs. That’s what the message has to be, Mahler concluded.

It was clear that there’s an opportunity and a need to educate for this effort, Mahler said. It’s also clear that the AAATA has credibility and trust with the public that it’s willing to listen.

Ballot Question: Board Discussion – Ballot Language

When the board reached the item on its agenda, board chair Charles Griffith said it was a historic move for the AAATA, so the board did not take it lightly.

From the audience, Carolyn Grawi asked that the resolution be read aloud. Griffith then read aloud the entire resolution.

The specific ballot language that Griffith read aloud  differed from the language drafted and included in the original board packet. The approved language explicitly highlights the capture of a portion of the millage by TIF (tax increment finance) authorities. The approved language also swaps in “seniors” for “the elderly”:

PUBLIC TRANSPORTATION IMPROVEMENT MILLAGE

To improve public bus, van, and paratransit services – including expanded service hours, routes, destinations, and services for seniors and people who have disabilities – shall the Ann Arbor Area Transportation Authority levy a new annual tax of 0.7 mills ($0.70 per $1000 of taxable value) on all taxable property within the City of Ann Arbor, the City of Ypsilanti, and the Charter Township of Ypsilanti for the years 2014-2018 inclusive? The estimate of revenue if this millage is approved is $ 4,368,847.00 for 2014. This revenue will be disbursed to the Ann Arbor Area Transportation Authority and, as required by law, a portion may be subject to capture by the downtown development authorities of the Cities of Ann Arbor and Ypsilanti, the Washtenaw County Brownfield Redevelopment Authority, and the local development finance authority of the Charter Township of Ypsilanti.

The ballot language is subject to requirements in Michigan’s General Property Tax Act.

Earlier in the meeting, reporting out from the performance monitoring and external relations committee, Roger Kerson said the committee had talked about the ballot language “a lot, a lot, a lot.”

AAATA board member Roger Kerson.

They thought it had been finalized, but then it had to be tweaked, he said, describing a couple of cycles of finalization and further tweaking. They’d worked very hard to be compliant with all the laws that apply when you make an ask from voters. It must be clear what the money is to be used for.

The proposed language will be used for buses, vans and paratransit, he said, not airplanes, helicopters or trains. After much analysis, Kerson continued, there’s a requirement that it be noted in the ballot language that some of the new tax would be captured by tax increment finance authorities (TIFAs) like downtown development authorities and brownfield authorities.

Kerson said that the “huge majority” of the funding, 97-98%, would go to the AAATA, but that the remainder could be captured by TIFAs. The PMER committee concluded that this is “the right move at the right time.”

Ballot Question: Board Commentary

Larry Krieg led off comments by saying it’s a historic event for the AAATA. It’s important to take a moment to think about it and say why it’s important, he said. He was a teacher at Washtenaw Community College for 25 years, he said. Something he noticed when he taught there was “when a student’s car failed, they would be very likely to fail my class.” Many of his students lived in Ypsilanti Township or other parts of the county that are not served by the AAATA. That’s important because “education of our people is going to be the root of our future prosperity.”

He also saw WCC grads who were looking for jobs, who did not own cars. Even though they were qualified for certain jobs, they were sometimes not able to accept available jobs, because they could not get to those jobs. By having better transportation, job seekers will have the ability to reach other parts of Ypsilanti township and city.

Krieg said he was impressed by the careful work that AAATA staff had done in preparing the proposal. Some people might wonder why the board did not vote on this last month, he said. The reason is that there needs to be careful analysis of the likelihood of success and exactly what the money is going for. He’s now convinced that the analysis has been done and the AAATA has an excellent chance of going forward with this.

Responding to the issues of fairness that had been raised, Krieg noted that the millage rate is flat. But he allowed that Ann Arbor residents will be paying more – through an existing millage. Ann Arbor also gets more transportation services, he noted. He had checked with the staff and gone over the figures and had determined that what AAATA strategic planner Michael Benham had said in his presentation was true: People will get what they pay for. About Ypsilanti Township, which he represents on the board, Krieg said: “We are paying less, and we are getting less.”

One thing a lot of people don’t realize, Krieg said, is that a gas pump works two ways: it pumps gas into your car and money out of the state and out of the local economy. On the other hand, when you pay a few cents for a transit tax, the vast majority stays in our community, he said. Michigan is a donor state as far as money that leaves the state and goes through the rest of the county.

Roger Kerson observed that when the AAATA board had started the conversation about expanding transit, he thought there were only three current board members serving on the board at the time. [Charles Griffith and Anya Dale were also serving at the time.] At that time, the AAATA had a more expansive [countywide] vision, he said. The nature of the AAATA board is to be collaborative and transparent, he said, so that expansive plan was adjusted based on feedback from constituents and others.

What the AAATA is doing now is downscaled compared to the original vision of a countywide authority. The current plan “is the right plan and it’s the right time,” he said. It’s been an educational process, and he was glad the AAATA went through it. He felt the right lens through which to view the issue is “needs.” People need to get around, he said. He also stated that this is a “pay to play” financing mechanism.

Board chair Charles Griffith offered a final comment of his own. He told the people who came out to the meeting that the board appreciated hearing from them. Over the years, many people had asked the AAATA for this or that additional service. When those had been small requests, the AAATA had sometimes been able to meet the request. But for other larger requests, he noted, the answer had always been the same: Unless a new source of revenue can be found, a new service can’t be added without taking away some other service. Now the AAATA can finally say: If the voters agree, the AAATA can provide you with that additional service.

Griffith’s remarks prompted a standing ovation from the audience.

Outcome: The board voted unanimously to place a 0.7 mill transit tax on the May 6, 2014 ballot.

Ballot Question: Public Commentary – End of Meeting

Harvey Summers told the board that he was a member of WeROC. He thanked board members for their vote and looked forward to supporting the millage with his vote.

Carolyn Grawi spoke on behalf of CIL, WBWC and Partners for Transit. She thanked the board for their vote and the AAATA staff for their hard work.

John Waterman thanked the board for their work. [Waterman was one of five finalists for the initial appointment to the board of the southeast Michigan regional transit authority. He founded the nonprofit Programs to Educate All Cyclists (PEAC).] A good plan has been laid out, but the “game is on,” and he cautioned that there is a lot of work to be done. He also cautioned against the celebratory mood. He would put efforts of his staff and students to help pass the millage.

Michelle Barney.

On the topic of paratransit service, Waterman stressed the need to train as many people with disabilities as possible to use the fixed-route service, which is more cost efficient and leads to greater independence. It also opens up paratransit service for those who cannot do without it, he said.

Michelle Barney told the board that she wanted to thank them for their vote, saying, “I was almost on the verge of tears when you voted,” because it meant that much to her personally.

She told the board that the community was losing University of Michigan grads who are moving away due to a lack of transit. There’s a real sea change going on, she said, with many young people opting not to try to own cars, because they’re sick of them. It also provides service to people of different racial groups.

She recalled her own history as a bus organizer in 1959 for a youth march for integrated schools started from Cass Tech in Detroit to Washington D.C. She also recalled marching down Woodward Avenue with Rosa Parks in 1964-65.

She’s been involved in activism for many years, Barney told the board, and she could not think of anything that she was in the room to witness that was this important to her personally and to the city in which she lives.

Funding Agreement with Ypsilanti Township

By way of background, the 0.7 mill tax, if approved on May 6, 2014, would be the first ever levied by the Ann Arbor Area Transportation Authority. Existing dedicated transportation taxes, levied by the two cities and passed through to the AAATA, would remain in place.

For Ann Arbor, the rate for the existing tax is 2.056 mills, which is expected to generate a little over $10 million by 2019, the fifth year of the AAATA’s transportation improvement plan. For the city of Ypsilanti, the rate for the existing transit millage is 0.9789, which is expected to generate about $314,000 in 2019.

For the owner of an Ann Arbor house with a market value of $200,000 and taxable value of $100,000, a 0.7 mill tax translates into $70 annually, which would be paid in addition to the existing transit millage. If the millage were to pass, the total Ann Arbor transit tax paid on a taxable value of $100,000 would be about $270 a year.

If it’s approved by voters, the total amount of revenue expected to be generated by the 0.7 mill tax in 2014 is $4,368,847.

Here’s a detailed breakdown of how the roughly $4.3 million generated by the new AAATA millage would fit into the overall funding picture for AAATA services:

Revenue Source     Amount
State              $12,910,884
Federal            $4,507,490
Fares              $8,801,200
A2: 2.056          $10,980,259
A2: 0.70           $3,387,910
Ypsi C: 0.9789     $313,798
Ypsi C: 0.70       $202,730
Ypsi TWP: 0.70     $778,207
POSA               $1,087,344
Third Party        $1,204,196
Advertising        $375,000
TOTAL              $42,969,822

-

Here’s how that breakdown shapes up as a pie chart:

Pie chart of revenue sources for AAATA five-year transit improvements. (Data from AAATA, chart by The Chronicle. )

In Ypsilanti Township, the AAATA calculates the 0.7 mill levy to be commensurate with the level of service the township would receive as a result of transportation improvements. But the 0.7 mill levy would generate about twice as much as the amount paid by the township in its current purchase of service agreement (POSA). So Ypsilanti Township’s POSA amount would not be paid in addition to revenue from the 0.7 mill tax.

The board considered an additional item at its Feb. 20 meeting – a funding agreement with Ypsilanti Township governing that POSA. The agreement makes clear that if the 0.7 mill tax passes, then the township’s service, which would increase under the transportation improvement plan, would be paid by the 0.7 mill tax. [.pdf of AAATA agreement with Ypsilanti Township]

Reporting out from the performance monitoring and external relations committee, Roger Kerson described the funding agreement with Ypsilanti Township.

From left: AAATA board members Eli Cooper and Larry Krieg.

On joining the AAATA, the township had pledged to continue to provide the same amount that it’s currently paying through its POSA, Kerson explained. If the millage passes, it will generate more than twice what the POSA amount is – $800,000 compared to about $325,000, Kerson said.

That’s the amount of service Ypsilanti Township will get, he said. So as far as fairness goes, everybody gets the service they pay for, he said. That’s why the committee recommended the agreement to the full board.

When the board reached the item on its agenda, Larry Krieg – the Ypsilanti Township representative to the AAATA board – asked the board to support the resolution on the funding agreement with the township, saying that without this agreement, the rest of the five-year plan wouldn’t work.

Outcome: The board voted to approve the funding agreement with Ypsilanti Township.

Budget Change to Cover Cost of May Election

Reporting out from the performance monitoring and external relations committee, Roger Kerson noted that because the AAATA millage would be the only item on the ballot, the AAATA would need to pay the cost of administering the election. That would be between $80,000 and $100,000, Kerson said. So the board would need to amend the budget to do that. He pointed out that in this scenario, the millage would generate $4.3 million, which would be matched about 2:1 by federal and state revenues. So if the millage proposal passes, that would equate to $12 million annually, against a $100,000 one-time expense.

Those remarks came as an indirect response to public commentary that had called for a delay until November 2014 to hold the election in order to save the cost to the AAATA of holding the millage vote.

Given the views that had been expressed during public commentary about the need for rapid implementation, Kerson said, the committee concurred that the AAATA should go ahead with that cost.

When the board reached the item on its agenda, there was no further discussion.

Outcome: The board voted unanimously to approve the budget change to pay for the cost of the May 6, 2014 election.

Bylaws

The board considered approval of several changes to its bylaws. One change gives speakers during public commentary an extra minute per turn to address the board. The time limits per speaker for each of two slots on the agenda are increased from two to three minutes as part of the bylaws changes. So someone could address the board for a total of six minutes at a meeting.

That additional change to the bylaws comes as AAATA board members reviewed their rules and revised them to reflect the addition of two new member jurisdictions in addition to the city of Ann Arbor: the city of Ypsilanti and Ypsilanti Township. It was last year, under separate processes, that the two Ypsilanti jurisdictions were admitted into the AAATA. The authority also changed its name at the time to include the word “area.” [.pdf of AAATA bylaws changes]

The bylaws changes considered by the board included some straightforward consequences of the increase from seven to 10 board members, such as: changing the definition of a quorum from four to six members; and raising the majority approval threshold from four to six members – for items like adopting a labor contract or approving a financial transaction in excess of 5% of the annual budget.

A change that was independent of the board size was also considered for some other voting items: relaxing the requirement from “a majority of the Board duly appointed and confirmed” to “a majority vote of board members present.” That means some types of resolutions could win approval with support from as few as four board members at a meeting.

In a separate board action, before the bylaws change the board considered a resolution to waive a condition in the bylaws that requires written notice be given to board members two weeks before a vote on a bylaws change. The resolution was prompted by additional amendments that had been made within the two-week window. One of the bylaws changes considered on Feb. 20 was to relax the requirement of notice to just one week in advance of a vote.

Reporting out from the performance monitoring and external relations committee, Roger Kerson noted that as some later amendments were made, the board had not provided the full period of notice to board members to take action that night – under the bylaws. The bylaws have a provision for waiving that notice, which the board would be using that evening.

Bylaws: Board Discussion

When the board reached the item on the agenda, Eli Cooper asked if there had been any follow-up on the voting provisions in the bylaws – about how other entities handled similar issues.

AAATA board member Jack Bernard.

AAATA financial analyst and planner Bill De Groot responded to Cooper, saying staff had looked into the question of voting power with respect to the possibility that a minority of the board could count as a majority for a vote. For important business, he said, there was the greater requirement of majority already in the bylaws and that was increased consistent with the added members of the board.

Jack Bernard said he wanted to mention for the record that the newly revised bylaws include a specific time reference, related to the terms of appointments for individual board members. ["The term of office of a Board member shall be five years other than for members of the Ann Arbor Area Transportation Authority Board as of June 15, 2013, who shall serve for the remainder of their terms, as provided by the Articles."]

The next time the bylaws are changed, Bernard said, the time reference should be removed.

Outcome: On separate votes, the board unanimously approved the waiver of the notice requirement and the changes to the bylaws.

State Funding Request

The AAATA has to apply every year to the state of Michigan for its state operating assistance. According to staff memos in the board’s information packet, the Michigan Dept. of Transportation instructed AAATA not to include assumptions of the five-year service improvement plan in this year’s application.

So this year’s application to the state for the AAATA’s portion of Act 51 money will include a budget as follows: estimated federal funds of $5,348,338, estimated state funds of $9,905,017, estimated local funds of $11,241,134, estimated fare box of $6,184,503, and estimated other funds of $647,288 – with total estimated expenses of $33,326,000.

That application for state operating assistance could be amended, if the millage vote on May 6 succeeds.

Reporting from the planning and development committee, Eric Mahler said the committee had heard a review from AAATA manager of service development, Chris White, on the AAATA’s application for state operating assistance. That includes both capital and operating funds. Because the millage has not yet passed, MDOT had requested that the AAATA not include expansion of services in the request. Mahler ventured that the request from the state could be amended when the millage passes, which White indicated was the case.

Outcome: The board voted unanimously to approve the application for state funding assistance.

CAD/AVL Consulting

The board considered awarding a $168,000 consulting contract to TransSystems of Boston, Mass. to assist the AAATA in making an upgrade in its computer-aided dispatch and vehicle-locating software (CAD/AVL).

As part of a planned upgrade for this type of software for its regular fixed-route buses, the AAATA is also looking to bring in-house the reservation and booking of paratransit rides. That’s currently part of its contracted paratransit service provider’s scope of work. That service provider is SelectRide. The switch to in-house paratransit bookings is planned for May 1, 2015, the day after the AAATA’s current contract with SelectRide ends. That contract was recently extended through April 30, 2015 in action taken by the AAATA board at its Dec. 19, 2013 meeting.

By implementing the paratransit part of the project, the AAATA wants to get some experience with the upgraded software before moving forward with its regular fixed-route buses.

According to staff memos in the board’s informational packet for the Feb. 20 meeting, the type of CAD/AVL system that the AAATA is upgrading allows dispatchers to locate, track and manage fixed-route bus operations. It also provides information on real-time adherence to the bus schedule. Further, it monitors and reports the status of engine components and on-board systems, such as the wheelchair ramp.

Reporting out from the planning and development committee, Eric Mahler noted that the consultant is important to make the most of the opportunity to upgrade the technology in a cost-effective way. Without the consultant, it’s felt that the AAATA might miss important opportunities to improve the service and to save money. Mahler said the urgency of hiring the consultant had been well established, saying that it’s important that the project get started right away because the upgrade to the AAATA’s systems depends on it.

When the board reached the item on its agenda, Eli Cooper noted that Ann Arbor is a place where networked automobiles are being piloted. He would willingly support keeping transit in the high-tech game.

Jack Bernard noted that the advanced system is critical for better paratransit service – so that a rider can, for example, have as much notice as possible that a ride won’t be arriving until the end of a scheduled window. He urged the board to support the resolution.

Larry Krieg wanted people to understand that the system the AAATA will be replacing was cutting edge 15 years ago. Equating one software year to 10 human years resulted in a system that was 150 years old, he said. Some of the problems that the AAATA has had with locating buses for interactive maps relates to the way the “elderly” system is trying to get information out.

Outcome: The board voted unanimously to approve the contract with TransSystems.

CAD/AVL Consulting: Public Commentary

During public commentary at the end of the meeting, Carolyn Grawi spoke on behalf of the Ann Arbor Center for Independent Living. And she responded indirectly to some of the remarks on accessibility.

“As you know, I have high expectations,” she said. The mobile app is great, but she wanted to note that about one-third of the population or more can’t use it. It’s important that when a new feature is launched, it’s launched to be accessible from the start. The print size for the mobile app is too small and does not change in size. She was excited to see the board moving ahead with the AVL/CAD consulting, which will lead to a software upgrade. Scheduling is a nightmare right now, she said. She also told the board that the AAATA doesn’t have enough paratransit vehicles on the road.

FY 2013 Audit

The board was asked to consider a resolution accepting the audit report for the fiscal year that ended on Sept. 30, 2013 (FY 2013). [.pdf of FY 2013 audit report]

FY 2013 Audit: Presentation from Auditor

David Helisek and Josh Yde of Plante Moran gave the board a presentation on its FY 2013 audit. The AAATA fiscal year runs from October through September, so the FY 2013 audit was for the year ending on Sept. 30, 2013. Two documents were presented: the financial statements, including the federal programs audit; and the required communications to those charged with governance.

From left: Dave Helisek of Plante Moran and AAATA controller Phil Webb.

Helisek reported that the presentation had been made in greater detail to the AAATA’s performance monitoring and external relations (PMER) committee earlier in the week.
Helisek noted that the bulk of the first document is the AAATA’s document – the financial statements. The only part of that contributed by Plante Moran are the first two pages, which includes the independent auditor’s report.

Helisek told the board that the report showed an “unmodified opinion,” which is the highest level of assurance that an auditor can give a set of financial statements, he said. That means that the statements fairly reflect the position of the authority as of Sept. 30, 2013 as well as the changes in that position. That’s the opinion that the AAATA strives to achieve on an annual basis, and it’s the one that Plante Moran has given for the third year in a row, he said.

Josh Yde highlighted some details from the balance sheet. He first noted that GASB 63 standards had changed the wording from “net assets” to “net position.” The total assets are now up to $66.2 million, he noted, which is up by about $12 million compared to FY 2012. Most of that is due to the increase in capital assets with the construction of the Blake Transit Center. Equipment is also up about $6.8 million, he noted, mostly due to new bus purchases in the current year.

Liabilities increased from about $2.9 million to $4.4 million. Most of that is due to accounts payable – related to the Blake Transit Center as well as other outstanding expenses. Finally, the net position increased to about $62 million, up from about $51 million last year. Most of that is due to the investment in capital assets, he said.

The unrestricted net position is up about $400,000 this year, Yde said. That means the current revenues are covering the cost of AAATA’s current costs of providing services. He noted, however, that of the $14.7 million, about $7.5 million relates to property tax revenue that will need to be used for operations in FY 2014.

The statement of revenues, expenses and changes in net position shows that operating revenues increased about $3.2 million. The largest portion of that is due to the increase in the depreciation in all the new assets, as the infrastructure continues to grow. Operating revenues are up about $240,000. Most of that is due to AirRide revenues, which was in operation for the full fiscal year.

The non-operating revenue is all up, Yde continued. Local non-operating revenue is up about $1.4 million. And most that is due to property tax revenue as well as purchase of service agreements  (POSAs).

Before capital contributions, Yde said, all that leads to a change in net position of about negative $4.7 million. After the capital contributions of $15 million, that results in a change in net position of positive $10.4 million.

Helisek picked up the presentation from there. He reviewed the federal compliance portion of the audit. If you spend more than $500,000 of federal money, then a federal compliance audit is required, he explained.

The amount of federal funds spent by the AAATA in the FY 2013 was just under $17 million. Helisek told the board that they tested the federal transit cluster of about $14 million. So about 83% of the funds that came to the AAATA were tested. He said that they’d come across no issues of non-compliance as it relates to deficiencies or weaknesses.

Helisek noted that there was one finding on the last page: related to a depreciation expense calculation. As part of the audit, they did some testing and noted there needed to be some adjustments to some specific assets related to depreciation. That was brought to the attention of AAATA financial staff and they agreed with Plante Moran’s view, and they made the adjustment. He told the board that while it was an adjustment, it was a “non-cash adjustment.” It did not affect the budget over the year. However, auditing standards do require that the issue be communicated to the board.

As far as the letter to those charged with governance, Helisek noted that the first section is pretty much boilerplate. What you’re looking for are problems, he said, adding that there’s no communication on problems. The audit went very well and there were no disagreements with management on standards or the application of auditing standards.

The second section of the letter is more focused on legislative issues and informational items – things that might be “hot in Lansing,” he said. The one item that has been hot for the last 18 months is the state’s personal property tax, and the election that’s coming up in August. That could change how property taxes are collected, and would affect any entity that relies on property taxes. [The Aug. 5, 2014 ballot measure would mitigate against loss of personal property tax revenues by replacing part of the state use tax with a local tax administered to the benefit of metropolitan areas in Michigan.]

FY 2013 Audit: Board Discussion

Reporting out from the performance monitoring and external relations committee, Roger Kerson noted that on page 8 of the audit report, the amount the AAATA had spent on administration had gone down [$7,258,563 in FY 2013 compared to $7,277,201 in FY 2012] but money spent on operations went up [$24,811,414 in FY 2013 compared to $21,635,160 in FY 2012]. That showed the AAATA was putting its resources into “putting buses on the street,” he said, calling it a good sign.

When the board reached the item on its agenda, there was no discussion.

Outcome: The board voted unanimously to accept the FY 2013 audit report.

Insurance Broker

The board considered awarding a new five-year contract to Marsh USA Inc. of Grand Rapids, Mich. – the same insurance broker that’s consulted for the Ann Arbor Area Transportation Authority for the last 10 years. The contract is for up to $270,000 of consulting work.

Marsh USA will provide insurance brokerage services for general, automobile, workers’ compensation, property and public officials/employee liability insurances.

Reporting out from the performance monitoring and external relations committee, Roger Kerson noted that the AAATA purchases about $1 million worth of insurance every year, which is necessary given that the AAATA is driving buses around. So the AAATA uses a broker to help get the best price, Kerson said.

Outcome: The board voted unanimously to approve the contract with Marsh USA.

Unarmed Security

The board considered awarding a contract for unarmed security guard services to DK Security. The contract covers three properties: AAATA headquarters at 2700 S. Industrial Hwy., the Blake Transit Center at 328 S. Fifth Ave. in Ann Arbor, and the Ypsilanti Transit Center at 220 Pearl St.

The contract was for one year, with an option to extend the contract for four one-year periods.

The contract conforms with AAATA’s living wage policy, which mirrors that of the city of Ann Arbor. The policy currently requires vendors to pay a minimum wage of $13.96 per hour without providing health care benefits and $12.52 per hour when providing health care benefits.

The amount of the contract is not to exceed $270,400, which provides up to 14,299 hours (holidays included) of security coverage at a fixed-hourly rate.

The previous vendor, Advance Security, was one of 15 bidders for the work, but was not selected.

Reporting out from the performance monitoring and external relations committee, Roger Kerson noted that the bids that came back for the unarmed security work were a little bit lower than the incumbent vendor had bid, so the AAATA would be saving a little money on that. He noted that the new vendor still complied with the AAATA’s living wage policy.

Outcome: The board voted unanimously to approve the unarmed security contract with DK Security.

Communications, Committees, CEO, Commentary

At its Feb. 20 meeting, the board entertained various communications, including its usual reports from the performance monitoring and external relations committee, the planning and development committee, as well as from CEO Michael Ford. The board also heard commentary from the public. Here are some highlights.

Comm/Comm: Ridership

Reporting out from the performance monitoring and external relations committee, Roger Kerson updated the board on ridership. Ridership is down due to the weather, he said, which would probably affect the yearly total because the drop was fairly significant in January.

Comm/Comm: Blake Transit Center

As part of his report to the board, CEO Michael Ford noted that the AAATA had received a temporary certificate of occupancy for the new Blake Transit Center last Friday (Feb. 14, 2014) and the move into the facility is scheduled for the week of March 10. The building will be open by March 17, which is St. Patrick’s Day, Ford pointed out. There’s still more work to do, but Ford wanted to thank AAATA maintenance manager Terry Black and anyone who had anything to do with supporting that project.

Ford also thanked the bus riders and the drivers for “hanging in there” during the transition. It’s been a struggle, given the weather conditions.

Comm/Comm: Blake Transit Center Art

Reporting out from the performance monitoring and external relations committee, Roger Kerson said the committee had previewed the public art component for the BTC, saying it “looks really cools.” It’s a tile mosaic of figures representing the diversity of the community, he said. It’s less than $100,000 so the board does not need to approve it, Kerson noted, but it the board will be kept in the loop.

Present: Charles Griffith, Eric Mahler, Susan Baskett, Eli Cooper, Roger Kerson, Anya Dale, Gillian Ream Gainsley, Jack Bernard, Larry Krieg.

Absent: Sue Gott.

Next regular meeting: Thursday, March 20, 2014 at 6:30 p.m. at the Ann Arbor District Library, 343 S. Fifth Ave., Ann Arbor [Check Chronicle event listings to confirm date]

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Chart 1: AAATA Millage Vote Survey. Of the 841 registered voters surveyed, 63% said they would definitely or probably vote for an additional transit tax, while 31% said they definitely or probably would vote against an additional transit tax. Half the respondents were asked about a tax at the rate of 0.5 mills while the other half were asked about a 0.9 mill tax. There was not a significant difference in the two groups. The amount of the potential millage request in 2014 is 0.7 mills.

The AAATA’s release of partial survey results on Feb. 7 comes about two weeks before the next monthly meeting of its board of directors, on Feb. 20. At that meeting, the board will almost certainly consider whether to place a millage on the ballot – either for May 6 or later in the fall of this year.

The purpose of the potential millage – which would be the first one ever levied by the AAATA – would be to fund a 5-year plan of service improvements, approved by the AAATA board at its Jan. 16, 2014 meeting. The millage itself would last for five years.

Generally, those improvements include increased frequency during peak hours, extended service in the evenings, and additional service on weekends. Some looped routes are being replaced with out-and-back type route configurations. The plan does not include operation of rail-based services. The AAATA has calculated that the improvements in service add up to 90,000 additional service hours per year, compared to the current service levels, which is a 44% increase.

If a millage were approved in May, those improvements that involve extending the hours of service later in the evening and the weekend could begin to be implemented by late 2014. However, increases in frequency along routes, which would require acquisition of additional buses, would take longer.

The AAATA refers to the plan in its communications as the 5YTIP. The AAATA has calculated that the additional tax required to fund the 5YTIP is 0.7 mills. A draft five-year plan was presented to the public in a series of 13 meetings in the fall of 2013. Changes to the five-year plan made in response to public feedback were included in the board’s information packet for the Jan. 16 meeting. [.pdf of memo and 5-year improvement plan] [.pdf of presentation made to the board on Jan. 16]

The dedicated transit tax already paid by property owners in Ann Arbor and Ypsilanti is levied by each city and passed through to the AAATA. Those taxes would stay in place if voters in the AAATA’s three-jurisdiction area approved a 0.7 mill tax. For Ann Arbor, the rate for the existing millage is 2.056 mills, which is expected to generate a little over $10 million by 2019, the fifth year of the transportation improvement plan. For the city of Ypsilanti, the rate for the existing transit millage is 0.9789, which is expected to generate about $314,000 in 2019. For the owner of an Ann Arbor house with a market value of $200,000 and taxable value of $100,000, a 0.7 mill tax translates into $70 annually, which would be paid in addition to the existing transit millage. The total Ann Arbor transit tax paid on a taxable value of $100,000 would be about $270 a year.

The transit improvement program also calls for an additional $1,087,344 to come from purchase-of-service agreements (POSAs), based on increased service hours in Pittsfield, Saline, and Superior townships.

A subset of a financial task force that had formed during an effort in 2012 to expand the AAATA to a countywide authority has concluded that the 0.7 mill would be adequate to fund the planned additional services. At the most recent meeting of the Ann Arbor Downtown Development Authority, on Feb. 5, DDA board member Bob Guenzel stated that he had continued to participate on that task force, and reported that the group had forwarded its finding on the currently contemplated 0.7 millage to the AAATA.

Besides Guenzel, who is former Washtenaw County administrator, the current configuration of that group includes Mary Jo Callan (director of the Washtenaw County office of community and economic development), Norman Herbert (former treasurer of the University of Michigan), Paul Krutko (CEO of Ann Arbor SPARK), and Mark Perry (director of real estate services, Masco Corp.) and Steve Manchester.

The survey on voter attitudes toward a millage was conducted for the AAATA by CJI Research with a mixed methodology – of telephone contacts, and a mail invitation to respond online – during October and November of 2013. The sample of respondents was divided into two groups – those who were asked about their attitudes toward an additional 0.5-mill tax and those who were asked about their attitudes toward an additional 0.9-mill tax. According to CJI, the groups showed virtually no difference in the distribution of responses.

Of the 841 registered voters surveyed, 63% said they would definitely or probably vote for an additional transit tax, while 31% said they definitely or probably would vote against an additional transit tax.

The Feb. 7, 2014 press release issued by the AAATA highlighted three of its conclusions from the survey results: (1) that the AAATA is highly regarded by voters in the three member jurisdictions; (2) residents in Ann Arbor, Ypsilanti and Ypsilanti Township are supportive of transit service expansion even if it means a new tax; and (3) among survey respondents, the best reasons to support a transit expansion are to help retain and attract jobs, generate economic activity by taking customers and workers to area retailers and other employers, and to improve service for seniors and the disabled. The margin of error for the survey was no more than 3.4%, according to the press release.

At the Jan. 16 AAATA board meeting, board chair Charles Griffith indicated that he felt the board would be taking the next step on implementing the program very soon. That indicates a probable vote on the millage question at the next board meeting, on Feb. 20. If the board voted then to put a millage question on the ballot, that would be in time to meet the Feb. 25 deadline for a millage request to be placed on the May 6, 2014 ballot.

A new millage would be decided by a majority vote of all three member jurisdictions of the AAATA. The two Ypsilanti jurisdictions were added as members of the AAATA just last year. The Ann Arbor city council voted to approve changes to the AAATA’s articles of incorporation – to admit the city and the township of Ypsilanti as members – at its June 3, 2013 and Nov. 18, 2013 meetings, respectively.

This most recent survey conducted by CJI is the third biennial study the AAATA has commissioned, starting in 2009. The 63% positive attitude in this most recent survey – confined to just the three member jurisdictions of the AAATA – is somewhat stronger than the support measured among residents countywide in 2009 and 2011. Results from all survey years are shown in Chart 1 and Chart 2 below:

Chart 1: AAATA Millage Vote Survey. Of the 841 registered voters surveyed in the cities of Ypsilanti and Ann Arbor and Ypsilanti Township, 63% said they would definitely or probably vote for an additional transit tax, while 31% said they definitely or probably would vote against an additional transit tax.

Chart 2: Millage Vote 2009 and 2011 Surveys. Asked early in the survey if they would support a 1 mill tax for countywide transit, 54% of survey respondents countywide said they definitely or probably would. Asked later in the survey, a combined 59% of voters said they’d probably or definitely vote for a 1 mill transit tax.

The geographic distribution of support for the most recent survey showed strongest support in the city of Ann Arbor (66% definitely/probably yes), followed closely by the city of Ypsilanti (65% definitely/probably yes), followed by Ypsilanti Township (57% definitely/probably yes). Opposition was flipped from support, with 28% of city of Ann Arbor voters saying they’d definitely/probably vote no, 31% of city of Ypsilanti voters definitely/probably voting no, and 36% of Ypsilanti Township voters definitely/probably voting no. The city of Ypsilanti had the fewest number of undecided voters: 4%. Those results are shown in Chart 3:

Chart 3: Millage Vote Geographic Distribution 2013 Stacked bars indicate by geographic location those who said they’d definitely or probably vote yes on  a transit tax (blue), definitely or probably vote no (red) or didn’t know (yellow). (Data from the AAATA, chart by The Chronicle)

That’s similar to the support measured in those same specific areas two years ago. In 2011, support for a transit tax was strongest within the city of Ann Arbor, with 24% saying they would definitely vote yes and another 44% saying they’d probably vote yes, for a total of 68%. In that year, the two Ypsilanti-area jurisdictions were grouped with Pittsfield Township. About 56% of Ypsilanti-area plus Pittsfield said they would definitely or probably support a millage. Those results from past years are shown in Chart 4:

Chart 4: Millage Vote Geographic Distribution 2011. The light and dark green areas reflecting definite or probable yes votes on a transit tax diminish the further away that respondents were from Ann Arbor and Ypsilanti.

All the surveys attempted to measure how effective respondents think arguments are – for and against a transit tax. This year’s survey results were in at least some ways consistent with previous years’ surveys: Additional service for seniors and those with disabilities is seen as a persuasive argument to support a transit tax. Those results are presented in Chart 5 and Chart 6 below.

Chart 5: Arguments for Public Transit – Fall 2013 Survey. Perceived as the best argument for supporting a transit tax was the importance of transit service for seniors and those with disabilities. Perceived as less persuasive arguments were the ideas that the member jurisdictions need a faster way to get places and that transit is important to protect the environment.

Chart 6: Arguments for Public Transit – 2011 Survey. The idea that “If the tax is defeated, there will be no funding for door-to-door service for the disabled” was not one that survey respondents felt was a good argument to vote for a transit tax. It comes across negatively and people react negatively to it.

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

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

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

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

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

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

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

Ann Arbor City Council: Final Say

The Ypsilanti Township board voted on Sept. 9, 2013 to request membership in the AAATA. Two weeks later, at its Sept. 26, 2013 meeting, the AAATA board approved the amended articles of incorporation to add Ypsilanti Township as a member of the authority. And on Oct. 15, 2013 the Ypsilanti city council approved the change to the articles of incorporation.

That leaves action by the Ann Arbor city council as the final step in admitting Ypsilanti Township as a member.

One document that some Ann Arbor city councilmembers wanted to see on Oct. 21 was a memorandum of understanding between the AAATA and Ypsilanti Township that would ensure payment for transportation services. The fact that a draft document was not available at that time was one reason some councilmembers were inclined to delay approval. That document is now available. [.pdf of draft YT-AAATA MOU]

The Ann Arbor/Ypsilanti Regional Chamber of Commerce has weighed in, urging the Ann Arbor city council to approve the amendment to the articles of incorporation. [.pdf of A2Y Chamber support letter]

Who Levies What Taxes?

Through their membership in the AAATA, the Ypsilanti jurisdictions would have the same ability as the city of Ann Arbor tax themselves – so they can pay for the additional transportation services in their geographic area. Specifically, AAATA membership would allow the Ypsilanti jurisdictions to join the city of Ann Arbor in taking advantage of the authority’s ability – under Act 55 of 1963 – to ask voters to approve a new transportation tax. Any request would need majority approval of voters across the entire geographic area of the member jurisdictions.

The power to request and then levy a voter-approved tax is one the AAATA has never used before. Readers might be familiar with two different existing transportation taxes – one paid by Ann Arbor property owners (2.053 mills) and another paid by city of Ypsilanti property owners (0.987 mills). Those existing taxes are not levied by the AAATA, but rather by the respective cities. The proceeds of those taxes are passed through to the AAATA. The city of Ypsilanti does not have the option of increasing the amount of its own transportation tax – because Ypsilanti is already at the state constitutional limit for taxes levied by a city, which is 20 mills. But an AAATA tax would not count against that constitutional limit.

The five-year service improvement plan that the AAATA has developed would need an estimated 0.7 additional mills levied across the geographic area of the authority. One mill is $1 per $1,000 of taxable value. So for a $200,000 house, with taxable value of $100,000, a 0.7 mill tax would translate into $70 a year. For an Ann Arbor taxpayer who owned that $200,000 house, that would translate into about $270 a year total in transportation taxes.

One option that’s been floated to pay for transportation improvements within the city of Ann Arbor – using just the existing Ann Arbor tax – would be to ask Ann Arbor voters to approve an override of the Headlee Amendment. Headlee has reduced the amount of the levy from its voter-approved level of 2.5 mills to the current 2.053 mills. So approval of a Headlee override would result in about 0.5 mill more revenue to fund transportation services within the city of Ann Arbor.

Translating millage rates into total dollars, Ann Arbor’s city transportation tax currently generates $9,565,000 annually, according to AAATA. A 0.7 mill additional tax would generate $3,230,007 in additional revenue in the city of Ann Arbor for a total Ann Arbor local contribution of more than $12.7 million. According to AAATA, Ypsilanti’s dedicated millage generates $274,000, which is less than its POSA agreement called for last year. The 0.7 mill tax would generate around $189,785 in additional revenue in the city of Ypsilanti, for a total contribution in the city of Ypsilanti of around $464,000. Ypsilanti Township currently pays $329,294 annually for transportation services under its POSA agreement. If a 0.7 mill tax were approved, that would generate around $707,969 in the township. Based on the amount of expanded services that the township would receive, the township contribution would be defined as just that $707,969.

Equity

The current, more localized expansion of the AAATA contrasts with a now demised effort in 2012 to incorporate all of Washtenaw County into a single countywide transportation authority. When the Ann Arbor city council withdrew Ann Arbor’s participation in that effort, at its Nov. 8, 2012 meeting, it gave encouraged the AAATA to “to continue to discuss regional transportation options among Ann Arbor, Ypsilanti, Ypsilanti Township, Ann Arbor Township, Pittsfield Township, and Scio Township, leading to a better understanding and process for improving local transit options…”

Over the course of the last year, the AAATA held a series of meetings with officials from those municipalities, a group that came to be called the “urban core” communities.

One outcome of those conversations was an interest in membership in the AAATA on the part of the two Ypsilanti jurisdictions. The city of Ann Arbor (pop. ~116,000), the city of Ypsilanti (pop. ~19,500) and Ypsilanti Township (~53,000) make up a bit more than half the population of Washtenaw County (pop. ~351,000).

The differences in financial contribution by each of the jurisdictions receiving transportation service from the AAATA was a topic that dates to the countywide effort. It’s also been a topic of the urban core conversations about equity: Is the amount of service provided commensurate with the financial contribution?

Various methodologies can be applied to the challenge of allocating costs. At a meeting held at the Saline city hall on April 25, 2013, AAATA staff illustrated how equity stacked up for some of those methodologies. According to AAATA staff, that equity analysis has not been re-run since then to reflect the latest refinements in the service plan, but the basic conclusions weren’t expected to be dramatically different. The chart below is by The Chronicle, using AAATA numbers from earlier this year. The analysis assumes a uniform millage across the five jurisdictions in the chart.

Interpreting the chart. The left axis is a percentage. Zero means that the ratio of benefit to revenue is 1:1. A positive bar means that a jurisdiction gets more benefit (services with greater cost) than the jurisdiction would contribute under a uniform millage. A negative bar means a jurisdiction gets less benefit (services costing less) than the contribution of that jurisdiction in a uniform millage.

The method used to calculate the cost of POSA agreements is by service hours.

Performance

One criticism of the AAATA that has been a part of recent community conversation is the contention that administrative overhead costs are too high – and that additional operational efficiency could and should be achieved before expanding service. At the Nov. 14 community engagement meeting, held in Ypsilanti at SPARK East on Michigan Ave., part of the presentation included a slide that in part confirmed the idea that AAATA’s operating expenses are per hour higher than average – 18% higher when compared to peer transportation authorities. But that same slide included analysis showing that the AAATA’s operating expenses per passenger were 17% lower.

AAATA operating expense per service hour.

AAATA trips per service hour.

Expense per passenger trip.

AAATA’s choice of the peer communities in this analysis was based on recommendations from the Transit Cooperative Research Program (TCRP) to use the Florida Transit Information System (FTIS) as an analysis tool for National Transit Database figures. Those peer communities are: Peoria, IL; Lexington, KY; Moline, IL; Lansing, MI; Syracuse, NY; Savannah, GA; Champaign-Urbana, IL; Roanoke, VA; Concord, CA; Erie, PA; Kalamazoo, MI; Harrisburg, PA; Fort Wayne, IN; Rockford, IL; Shreveport, LA; Hartford, CT; Fort Collins, CO; Scranton, PA; Gainesville, FL; and South Bend, IN.

Public Meetings

During the month-long delay by the Ann Arbor city council in voting on Ypsilanti Township’s membership, the AAATA has continued a series of 13 meetings – designed to introduce residents to a five-year service improvement plan – which would require additional funding.

At the Oct. 28, 2013 public meeting on service plan improvements, held at AAATA headquarters, Jack Eaton points at Route G, a proposed new route. He suggested that it continue from Stadium & Pauline on to Pioneer High School, before looping back to the north, which would complete a connection between two high schools – Skyline and Pioneer.

The series of meetings began on Oct. 17 before the council’s Oct. 21 decision to postpone. The last of those meetings took place in Ypsilanti on Nov. 14.

At the council’s Oct. 21 meeting, Stephen Kunselman (Ward 3) provided one of the eight votes for postponement, so he was keen to assure Ypsilanti Township officials – who were present at the meeting – that he was still supportive of their membership in the AAATA.

He indicated at the council’s Oct. 21 session that he would be attending some of the public meetings to show his support. Responding to an emailed query, Kunselman wrote to The Chronicle that he’d attended three of the meetings – on Oct. 29 at the Michigan League, on Nov. 6 at Tappan Middle School and on Nov. 12 at the Malletts Creek branch of the Ann Arbor District Library.

The first meeting (which is available through CTN’s video on demand) was held just before the AAATA’s regular board meeting on Oct. 17. Details of the service improvements, including maps and scheduling, are available on the AAATA’s website.

The conversation at the public meetings ranged from policy concerns to extremely practical issues.

Looking northwest: Corner of South Maple and Scio Church.

On the policy side, for example, the AAATA staff heard from a taxicab driver at the first public meeting complaining that the cheap price of the AAATA’s new AirRide service to the Detroit Metro airport diminished his ability to earn a livelihood driving a cab.

As an example of the practical side, a question was raised at the Oct. 18 meeting about the ability of a bus to easily make the right-hand turn from South Maple onto Scio Church, which would be required by the new Route E. The turn is less than 90 degrees.

That pre-election question came from former bus driver Jack Eaton, who was elected to represent Ward 4 on the city council on Nov. 5. [Eaton's bus driving career included 10-years with Kalamazoo Metro Transit from 1974 through 1984. Eaton now earns his livelihood as a labor attorney.]

Responding to Eaton, AAATA manager of service development Chris White allowed that when he’d presented the new route configurations to AAATA drivers, that was the one concern they’d raised. White felt that by using part of the neighboring lane, that turn could be navigated.

Eaton will be attending his first meeting as a sitting councilmember on Nov. 18, with the Ypsilanti Township membership on the agenda.

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Former Y lot from the northwest corner of William and Fifth Avenue in downtown Ann Arbor, looking northwest. In the background, the new Blake Transit Center is under construction. The AAATA voted to establish a committee to meet with whatever developer makes a successful purchase offer on the lot. Also announced is that the old BTC building, located on the opposite side of the block, will be demolished in early November, somewhat ahead of the original timing. (Photos by the writer.)

The funding agreement between the AAATA and the city of Ypsilanti formalizes the existing arrangement under which Ypsilanti passes its dedicated transit millage through to the AAATA. The board approved it unanimously. The Ypsilanti city council will consider the agreement on Nov. 5.

In another piece of business that came at the end of the meeting, after a closed session that lasted about an hour and a half, the board voted to establish a subcommittee to meet with whichever developer might make the winning bid on the city-owned property at Fifth and William – known as the old Y lot. That’s an alternative to the AAATA attempting to bid on the property itself, which was listed at $4.2 million. Bids were due by Oct. 18. The city paid $3.5 million for the property 10 years ago and still owes that much on a balloon payment due at the end of this year.

An item that simply authorized the purchase of additional vehicles for the AAATA’s vanpool program had some complex history behind it – involving the federal government shutdown. The shutdown prevented the AAATA from completing its pursuit of a waiver from the Federal Transit Administration for the Buy America requirement. And the Buy America requirements were pointing the AAATA toward purchasing more expensive vehicles (Chevrolet Traverses) that did not fit the needs of passengers as well as the non-qualifying vans (Dodge Caravans). So the board opted to use local millage revenue, and to backfill the operational expenses that the millage money was covering – by using federal preventive maintenance dollars.

In a final routine item, the board authorized the AAATA’s chief executive officer to execute contracts with MDOT that are less than $1 million.

A common thread among public commentary and other board communications was the 5-year service improvement plan the AAATA has developed, and the schedule of public meetings to introduce that plan.

Editor’s note: For the AAATA’s Oct. 17 meeting, The Chronicle hired a CART (Communications Across Real Time) professional to provide a real-time “text” stream of the meeting that was accessible online through The Chronicle. The resulting transcript from that live text stream is available here: [link]. The Chronicle is experimenting with ways to make public meetings more accessible to a broader segment of the community, and to provide archival transcripts of those meetings.

Financial Terms: AAATA, Ypsi City

The board was asked to ratify its side of a transportation funding agreement with the city of Ypsilanti, which was admitted as a member of the AAATA four months ago, on June 20, 2013.

Responding to an emailed query from The Chronicle, mayor Paul Schreiber indicated that the Ypsilanti city council is scheduled to consider the agreement on Nov. 5.

That financial agreement comes as the Ann Arbor city council is set to consider at its Oct. 21 meeting the approval of another change to the AAATA’s articles of incorporation – to add Ypsilanti Township as a member of the AAATA. At the Oct. 17 board meeting, it was indicated that the AAATA would be considering a similar financial agreement with the township. That agreement would differ from the one considered by the board on Oct. 17 with the city of Ypsilanti in at least one respect – the source of funds. While the city of Ypsilanti has a dedicated transit millage, the township obtains services through a purchase-of-services agreement (POSA).

The agreement between AAATA and the city of Ypsilanti recognizes the AAATA as the public transportation provider for the city of Ypsilanti. The agreement is to transfer the full amount generated by Ypsilanti’s 0.9879 mill transit tax to the AAATA. The tax was authorized by voters in 2010 and is estimated to generate $273,797 in 2013. However, the agreement calls for the AAATA to pay the city of Ypsilanti 1% of the amount generated by the millage to cover costs that include tax assessment, billing, collection, and various city clerk responsibilities.

The agreement also establishes reporting requirements on the AAATA to the Ypsilanti city council – including submission of the AAATA’s budget for comment, provision of the AAATA’s audited financial statements, and a quarterly activity report with information on ridership, budget variations, and other service metrics. The AAATA is also supposed to keep the Ypsilanti city council apprised of any long-term decisions. The two parties agree under terms of the document to recognize that their obligation as public bodies is to “exist harmoniously for the public good.” [.pdf of resolution and AAATA-Ypsilanti agreement]

Financial Terms: AAATA, Ypsi City – Board Deliberations

Toward the start of the meeting during communications time, Gillian Ream Gainsley – who represents the city of Ypsilanti on the AAATA board – reported that she’d attended the Ypsilanti city council meeting on Tuesday, just to speak in favor of the council’s support for the city joining the authority. She indicated that she felt there was a lot of support for the two cities to be working together on transportation service.

Standing is board member Jack Bernard. Seated is Gillian Ream Gainsley, a board member who represents Ypsilanti.

When he reported out on the items from the performance monitoring and external relations committee, Roger Kerson noted that Jack Bernard [a board member who's an attorney in the University of Michigan's office of the general counsel] had raised the question of what happens if there’s a breach of the agreement on either side. If the money doesn’t arrive from Ypsilanti, does AAATA have the right to terminate service, or if the AAATA terminated service, would both parties be in breach? While Bernard had flagged that issue, it seemed like a very unlikely occurrence, so the committee was comfortable with the agreement as written.

When the board came to the item on its agenda, Kerson described the agreement as formalizing the relationship that already exists. It puts in writing that the funds generated from Ypsilanti’s transportation millage will flow through to the AAATA on an indefinite basis. Those funds will automatically flow to the AAATA, and that stabilizes the AAATA’s finances, enables long-term planning and is a good way to continue the good faith relationship, he said.

Ream Gainsley added the understanding had always been that the city of Ypsilanti’s dedicated transit millage would flow directly to the AAATA, so the agreement was in everyone’s interest.

Board chair Charles Griffith ventured that if the Ann Arbor city council were to approve membership of Ypsilanti Township in the AAATA at its Oct. 21 meeting, then a similar agreement would be executed with the township. CEO Michael Ford confirmed Griffith’s understanding.

Outcome: The board voted unanimously to approve the financial agreement between the AAATA and the city of Ypsilanti.

Subcommittee on Y Lot

The board considered a resolution related to the city-owned parcel on William between Fourth and Fifth avenues in downtown Ann Arbor, known as the old Y lot. The resolution established a committee to meet with whatever party might make a successful purchase proposal for the city-owned parcel.

The resolution to form a subcommittee – whose members aren’t yet identified – is an alternative to bidding to purchase the property.

The AAATA has historically been interested in the property, which is immediately south of the AAATA’s downtown Blake Transit Center. The city’s purchase of the land in 2003 followed an attempt by the AAATA to acquire and develop the parcel. The AAATA continues to envision the block as a center of transit activity.

The property was listed at $4.2 million with purchase offers due by Friday, Oct. 18. The AAATA board resolution indicates in a “whereas” clause that any offers are expected to be brought to the Ann Arbor city council’s Oct. 21 meeting. The resolution is based on the idea that the AAATA wants to establish good relations with any potential developer of the site.

The subcommittee of the board is supposed to meet with developers and take part in future negotiations.

The city council is exploring whether to sell that property, which is also across from the downtown Ann Arbor District Library. Earlier this year, the city selected Colliers International and local broker Jim Chaconas to handle the possible sale, as the city faces a $3.5 million balloon payment this year from the purchase loan it holds on that property. The city has owned the land for a decade.

Now a surface parking lot, the site was zoned D1 as part of the original A2D2 (Ann Arbor Discovering Downtown) zoning process. The site was also one of five parcels that was the focus of the Ann Arbor Downtown Development Authority’s Connecting William Street project, and was part of a more recent evaluation by the city’s park advisory commission as a potential downtown park.

Two months ago, at its Aug. 20, 2013 meeting, the Ann Arbor city planning commission made recommendations on the development of the former Y lot. Among others, those recommendations included: a building that generates foot traffic, provides a human scale at the ground floor and creates visual appeal; a “mixed use” development; and a building with vehicular access and parking that are accessed via the city’s new Library Lane underground parking structure.

Subcommittee on Y Lot: Board Deliberations

The AAATA board resolution was not originally on the agenda, although a closed session did appear on the agenda. That closed session came at the end of the meeting and lasted about an hour and a half. Land acquisition is one of the reasons that a public body can enter into a closed session under Michigan’s Open Meetings Act.

Old Y lot from the northeast corner of Fourth Avenue and William Street. Part of the site, now a surface parking lot, is being used as a staging area for construction of the AAATA’s new Blake Transit Center.

When the board emerged from the closed session, Roger Kerson read aloud the resolution and gave some commentary on it. Kerson chairs the AAATA’s performance monitoring and external relations committee.

Kerson described the formation of a subcommittee to engage the eventual developer of the site as an alternative to the AAATA purchasing the property.
Even though making a successful bid for the property would give the AAATA complete control, Kerson said, it’s not practical for the AAATA to make a bid at this time – as it would deplete the AAATA’s financial reserves.

So instead, Kerson said, the AAATA should be proactive and engage with whomever the city selects as the successful bidder. The AAATA could make its needs known to the developer with respect to providing transit. The idea would be possibly to help the developers meet their needs and simply be a good neighbor. Kerson said it would be best to engage early, instead of waiting to review something that a developer might come up with, without the AAATA’s input. The subcommittee would actively engage that process, Kerson concluded.

Outcome: The board voted unanimously to approve a resolution to form a subcommittee of AAATA board members to meet with the future developers of the old Y lot.

Subcommittee on Y Lot: BTC Construction

Also at its Oct. 17 meeting, the AAATA board was updated regarding progress on construction of a new transit facility immediately adjacent to the old Y lot.

New Blake Transit Center awning under construction on Oct. 18, 2013.

Completion of the new Blake Transit Center building, located on the Fifth Avenue side of the lot, is now expected toward the end of January 2014, which is about six weeks later than originally planned. The old building, which stands on the Fourth Avenue side, was originally not planned for demolition until the new building was complete. However, because the construction schedule has slipped and AAATA staff are concerned about a hard winter arriving and stalling the demolition schedule, the AAATA is planning to demolish the old building sooner than that.

The strategy will be to use trailers as a temporary substitute for the building. Terry Black, AAATA manager of maintenance who’s supervising the construction, explained that the target date for transitioning from the old building to trailers is Oct. 28. During the week of Oct. 28, the move will be made out of the old building, and then on the weekend of Nov. 2-3 the building will be torn down.

Vanpool Vehicles

The final form of the item on the agenda authorizing vanpool vehicle purchases evolved through a couple of different iterations – due in part to the federal government shutdown.

A vanpool is essentially a group of people who are provided a vehicle, and charged a price for the use of that vehicle so they can drive to work together. According to CEO Michael Ford’s written update to the board, the AAATA’s vanpool program currently has 44 active vanpools.

The resolution in its final form authorized the purchase of up to 40 vehicles for the AAATA’s vanpool program to replace aging vehicles, as well as to meet additional demand for the program. The vans will be either Dodge Caravans (mini-vans) at $21,356 from Snethkamp of Lansing, or Ford Econoline vans (full-size vans) from Gorno of Woodhaven, at $20,940.

According to the resolution, the Ford Econoline meets the conditions of the Federal Transit Administration’s Buy America program – which require 65% American components and final assembly in the United States. The Dodge Caravan meets the 65% American-made component requirement, but is assembled in Canada – with union labor. So the funding of the Caravan, which does not meet all the FTA’s Buy America criteria, will be drawn from local millage money, while the Ford vehicles will use federal funds.

According to AAATA manager of service development Chris White, operations that the local millage money would have covered will instead be paid for with federal dollars.

Vanpool Vehicles: Background on Resolution

Minutes from the AAATA’s planning and development committee meeting earlier in the month indicate the original proposal was to purchase 25 vans, with the option of 10 additional vans. And according to the minutes of the Oct. 8, 2013 committee meeting, at that time the AAATA estimated that during the current fiscal year, a total of 35 vans – either to replace aging vehicles or to provide a vehicle for new vanpools – would be needed.

The AAATA’s preferred approach would have been to use a Buy America waiver to purchase Dodge Caravans, which the Federal Transit Administration had granted back in May 2012 when the AAATA began its vanpool program. However, a year ago, in November 2012, the FTA rescinded the Buy America waiver for Dodge Caravans. But in rescinding the waiver, the FTA also provided a way for a transit authority to petition the FTA for waivers on a case-by-case basis.

AAATA board member Eli Cooper.

According to an Oct. 16 memo from CEO Michael Ford to the board, the AAATA had begun working with the FTA in May 2013 to obtain a waiver for Dodge Caravans.

However, because of the federal government shutdown, FTA representatives overseeing the Michigan area were not able to consider the AAATA’s request for waiver on FTA’s Buy America program for the Dodge vehicles. So the request originally placed on the agenda was just to buy 10 Buy America compliant vehicles right now, in order to meet immediate needs. The vehicles specified in the initial version of the resolution were for the Chevrolet Traverse – which is a “crossover” vehicle something like an SUV or a van – to be sourced from LaFontaine Chevrolet of Dexter at a cost of $28,175 each. While the Traverse met the Buy America standard, only 10 were to be purchased, because AAATA staff didn’t feel the vehicle would meet the needs of vanpool riders.

After that resolution was prepared, according to Ford’s memo to the board, additional requests for vanpools were received, which bumped the estimated total number of vehicles needed for the next fiscal year to 40.

That led the AAATA to pursue the strategy of using local millage money for the Dodge vans, but federal funds for the Fords. Vehicles purchased with local millage money are not subject to Buy America requirements. The local revenue would otherwise be used for operations. The federal grant funds that would have been used to purchase the vehicles were transferred from the vanpool vehicle line item to the preventive maintenance line item. Preventive maintenance is considered operating revenue.

The argument for that strategy expressed in Ford’s memo was that purchasing more expensive vehicles ($28,175 each for the Chevrolet Traverse compared to $21,356 each for the Dodge Caravan) would have been a lose-lose proposition, because the vehicles did not meet the purpose of the program as well as the less-expensive vehicles.

Vanpool Vehicles: Board Deliberations

Eli Cooper led off deliberations by appealing to the “base definition” of the program: “It is a vanpool program. It is not the SUV crossover program!” He ventured that anybody who is familiar with the difference between the amount of useable room inside a minivan [Dodge Caravan] compared to a small SUV [Chevrolet Traverse] would recognize the higher level of comfort and convenience for vanpool riders.

Roger Kerson, AAATA board member and Dodge Caravan owner.

Cooper also stressed the cost difference between the two vehicles: $28,175 each for the Chevrolet Traverse compared to $21,356 each for the Dodge Caravan. About the Traverse, Cooper said: “They are not vans.” The Traverse could accommodate seven passengers, but “if you are anything older than ten years old, then try to
get into the back row, the third row seating in a Traverse!” Cooper said he didn’t think that’s the right way for the AAATA to treat its customers.

Cooper reviewed the issue with the Buy America waiver, allowed that a waiver might have been forthcoming. The older vehicles, inherited from the MichiVan program, are wearing out and need to be replaced. He said there was not time for the crisis in government to be resolved before bringing the resolution forward. Cooper said he was glad that staff was creative enough to find a way to be flexible about the funding so that the vehicles could be purchased.

Earlier in the meeting during his report from the performance monitoring and external relations committee, Roger Kerson commented on the Buy America policy as it relates to the Dodge Caravan.

He described it as the preferred vehicle, which is assembled in Canada, and thus does not meet the Buy America requirements. He told his colleagues that he knew a lot about this from his work for the UAW – that the Caravan is a vehicle made by union members in Canada. [Kerson was head of public relations for the UAW for three and a half years, through 2009.] Kerson pointed out that the UAW’s website promotes the Caravan as a union-made vehicle, and the Caravan has many American parts.

Kerson told his board colleagues that personally he owns a Caravan. He said that purchasing a Caravan supports jobs in Michigan – because the engine, powertrain and many of the key components are made in the U.S. before being trucked over to Windsor for final assembly.

Outcome: The board voted unanimously to approve the vanpool vehicle purchases.

MDOT Contract Authorization

The board considered a resolution giving CEO Michael Ford authorization to execute all contracts with the Michigan Dept. of Transportation that are less than $1 million for the next fiscal year, through Sept. 30, 2014.

It’s a routine annual authorization. Other than a brief description from Roger Kerson, there weren’t any substantive deliberations on the topic. Ford is expected to report to the board on all the contracts he executes under this authorization.

Outcome: The board voted unanimously to authorize the CEO to execute contracts with MDOT that are less than $1 million.

Communications, Committees, CEO, Commentary

At its Oct. 17 meeting, the board entertained various communications, including its usual reports from the performance monitoring and external relations committee, the planning and development committee, as well as from CEO Michael Ford. The board also heard commentary from the public.

The main highlight with threads across different points in the board’s meeting was the 5-year plan for service improvements that the AAATA is proposing. The service improvements would be implemented if additional funding is provided, likely in the form of a millage to be levied by the AAATA itself. The amount of the additional tax levy would be about 0.7 mills. No decision has yet been made by the board to place a millage before the voters, but that could take place as soon as May 2014.

The current efforts of the AAATA to increase service frequency, times and geography are the outcome of a demised effort to create a countywide authority in 2012. The Ann Arbor city council subsequently gave direction to the AAATA to focus its efforts on the communities that are located more geographically near Ann Arbor. With the addition of the city of Ypsilanti and Ypsilanti Township (pending Ann Arbor city council action on Oct. 21), about 50% of the county’s population live in a member jurisdiction.

Comm/Comm: 5-Year Service Plan – CEO Remarks

Board member Eli Cooper and CEO Michael Ford both noted that the staff had participated in a city council work session earlier in the week, on Oct. 14, 2013. The “urban core” implementation program focuses on local improvements for Ann Arbor. As part of the program, the city of Ann Arbor would receive a 33% increase in service. Additional meetings are scheduled. Ford reported that staff continues to meet with community leaders and elected officials to gain their support and interest in the process.

Comm/Comm: 5-Year Service Plan – First Meeting

Board member Jack Bernard reported that he’d attended the first of the 5-year service plan public meetings, which took place just before the Oct. 17 board meeting. There are a lot more of them scheduled, he said.  Chris White and Michael Benham had done a fantastic job talking with the first group of people, Bernard reported. The presentation went smoothly, and the questions from the public were fielded very well. It was really wonderful to see the interaction between the staff and the public, Bernard said.

Comm/Comm: 5-Year Service Plan – Impact on Taxicab Drivers

During public commentary at the first 5-year service plan meeting, which took place on Oct. 17 from 4-6 p.m. – before the 6:30 p.m. AAATA board meeting – Bill Higgins addressed the staff about concerns he had as a cab driver. He reprised his remarks at the board meeting during public commentary. [This is not the same Bill Higgins who recently attended a community meeting on sidewalk construction on Scio Church Road.]

Higgins said he’d been a cab driver for about 25 years and has ridden the AAATA buses probably for 40 years. He told the board that the bus service is squeezing the cab drivers. As an example, he described the AAATA’s AirRide service between downtown Ann Arbor and Detroit Metropolitan Airport as $7. [The fares listed on the AirRide website show fares in that range only for senior rides, at $7.50. Standard fare for a walk-on, for example, is $15 for a one-way trip.]  If the rate were $12, then he felt he’d have a chance to compete.

The art fair shuttle offered by the AAATA has the same negative impact, he said. On football Saturdays, the AAATA’s shuttle service also has a negative impact on the ability of taxicab drivers to earn a living, he said. Another AAATA program that’s eating into the taxicab business is the University of Michigan MRide program, which allows UM students to get rides on AAATA buses without paying a fare to board. Instead of paying for a cab to go shopping, they just take the bus.

Increasing the hours of service, he said, would  keep putting the squeeze on taxicab drivers, he said, who are just barely making enough money to live in Ann Arbor.

Present: Charles Griffith, Eric Mahler (arrived later in the meeting), Susan Baskett, Eli Cooper, Roger Kerson, Anya Dale, Gillian Ream Gainsley.

Absent: Sue Gott.

Next regular meeting: Thursday, Nov. 21, 2013 at 6:30 p.m. at the Ann Arbor District Library, 343 S. Fifth Ave., Ann Arbor [Check Chronicle event listings to confirm date]

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The AAATA board action was taken at its Oct. 17, 2013 meeting. The city council of Ypsilanti is scheduled to consider the agreement on Nov. 5.

The agreement recognizes the AAATA as the public transportation provider for the city of Ypsilanti. The agreement is to transfer the full amount generated by Ypsilanti’s 0.9879 mill transit tax authorized by voters in 2010 (estimated to be $273,797 in the year 2013), to the AAATA. However, the agreement calls for the AAATA to pay the city of Ypsilanti 1% of the amount generated by the millage to cover costs that include tax assessment, billing, collection, and various city clerk responsibilities.

The agreement also establishes reporting requirements on the AAATA to the Ypsilanti city council – including submission of its budget for comment, provision of the AAATA’s audited financial statements, and a quarterly activity report with information on ridership, budget variations, and other service metrics. The AAATA is also supposed to keep the Ypsilanti city council apprised of any long-term decisions. The two parties agree under the terms of the document to recognize that their obligation as public bodies is to “exist harmoniously for the public good.” [.pdf of resolution and AAATA-Ypsilanti agreement]

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

Adding Ypsilanti Township would expand the AAATA board from nine to 10 members. The additional seat would be appointed by the supervisor of Ypsilanti Township – an elected position held currently by Brenda Stumbo – with the approval of the township board.

If the Ann Arbor city council does not object, this would be the second expansion of the AAATA board this year. The item is expected to be on the Ann Arbor city council’s Oct. 21 agenda. The earlier expansion was given final approval by the AAATA board at its June 20, 2013 meeting. That’s when the city of Ypsilanti was admitted as a member of the AAATA and its board was increased from seven to nine members, one of whom is appointed by the city of Ypsilanti.

Ann Arbor’s additional board seat on the AAATA was filled when the Ann Arbor city council appointed Jack Bernard. Bernard is a lecturer in the University of Michigan law school and an attorney with UM’s office of the vice president and general counsel. He is also currently chair of the university’s council for disability concerns. The city of Ypsilanti’s seat was filled with Gillian Ream Gainsley. Ream Gainsley is communications and development director at the Ypsilanti District Library.

The “resolved” clause of the AAATA board’s Sept. 26 resolution makes the approval of the revised articles of incorporation for the AAATA contingent on approval from the city of Ann Arbor and other parties [emphasis added]:

… approves Amendment 3 of the Articles of Incorporation of the Ann Arbor Area Transportation Authority, in the form attached hereto as Exhibit A, except that, in the event that Ypsilanti Township, or the City of Ypsilanti, or the City of Ann Arbor declines to approve said Articles as described above, the AAATA Board directs staff to reconvene those parties to reconcile any differences relative to the Articles and to bring a new draft to the AAATA Board and all other parties. [.pdf of AAATA complete resolution on admission of Ypsilanti Township as a member]

The sequence of events leading to the possible admission of Ypsilanti Township as a member of the transit authority would be slightly different from that leading to the admission of the city of Ypsilanti. The initial resolution adopted by the AATA board on the admission of the city of Ypsilanti was simply an acknowledgment of the request. The first formal action on approval of the amended articles of incorporation – which included the city of Ypsilanti – was taken by the Ann Arbor city council.

However, the resolution considered and approved by the AAATA board on Sept. 26, 2013 already authorizes the amended articles of incorporation by the AAATA, partly contingent on the approval of the amended articles by the city of Ann Arbor. A timeline overview:

• April 19, 2013: Ypsilanti city councilmember Pete Murdock addresses the Ann Arbor Transportation Authority board during its regular meeting to alert the AATA to the probable request by the city of Ypsilanti to join the AATA as a member.
• April 23, 2013: Ypsilanti city council passes resolution requesting admission as a member of the AATA.
• May 16, 2013: AATA board approves resolution acknowledging city of Ypsilanti’s request to join AATA.
• June 3, 2013: Ann Arbor city council approves change to articles of incorporation, admitting city of Ypsilanti as a member of AATA and increasing board membership from seven to nine members, with one of the additional board seats to be appointed by the city of Ypsilanti.
• June 18, 2013: Ypsilanti city council approves amended articles of incorporation for AATA.
• June 20, 2013: AATA board approves resolution formally admitting city of Ypsilanti as a member of the board, ratifying articles of incorporation, including a name change to the Ann Arbor Area Transportation Authority.
• Sept. 9, 2013: Ypsilanti Township board passes resolution requesting membership in AAATA.
• Sept. 23, 2013: Ypsilanti Township board passes resolution approving amended articles of incorporation with membership for Ypsilanti Township.
• Sept. 26, 2013: AAATA board approves amended articles of incorporation with membership for Ypsilanti Township, contingent on concurrence from other parties.
• Oct. 15, 2013: Planned city of Ypsilanti city council agenda item on amended articles with membership for Ypsilanti Township.
• Oct. 21, 2013: Planned city of Ann Arbor city council item on amended articles with membership for Ypsilanti Township.

Historically, other jurisdictions – the city of Ypsilanti, Ypsilanti Township, Pittsfield Township, and Superior Township – have obtained some transit services from the AAATA through purchase of service agreements (POSAs). They have used general fund money authorized by the governing boards to pay the AAATA for that service. In November 2010, however, voters in the city of Ypsilanti approved a dedicated transit millage by a roughly 3:1 margin.

So the city of Ypsilanti has used the proceeds of that 0.987 mill tax to pay toward its POSA agreement. Now that the city of Ypsilanti is a member of the AAATA, the revenue from that 0.987 mill tax isn’t recorded under the POSA line item in the AAATA’s budget, but rather under the line item for local, millage-generated revenues.

The expansion of AAATA one jurisdiction at a time comes in the context of a demised attempt in 2012 to expand the AATA to all of Washtenaw County in one step. Since then, work has continued among a smaller cluster of communities geographically closer to Ann Arbor – to expand and increase the frequency of service and to establish reliable funding for that improved service.

The AAATA could, with voter approval, levy a uniform property tax on the entire geographic area of its membership – but the AAATA has historically not done that. Rather, the cities of Ann Arbor and Ypsilanti have dedicated transit millages, which are levied by the cities and transmitted to the AAATA.

Chart by AAATA. Contributions of AAATA members, with impact of successful 0.7 millage, if Ypsilanti Township is admitted as a member. The hollow blue box indicates the amount paid by Ypsilanti Township for its purchase of service agreement (POSA), which would be supplanted (and exceeded) by the 0.7 millage if it were to be approved.

One possibility for funding improved transportation services in the Ann Arbor area is through an additional tax levied by the AAATA. The amount of the millage that would be required to pay for the increased services is estimated at around 0.7 mills. In the event that the AAATA were to win voter approval of a 0.7 mill transit tax – a request that might be put on the ballot in May 2014 – the city of Ypsilanti’s existing millage would remain in place, as would that of the city of Ann Arbor. The 0.7 mill tax would need approval among a majority of voters in the geographic area of member jurisdictions – which would include the two cities (Ann Arbor and Ypsilanti) as well as Ypsilanti Township, if it is admitted as a member.

Ann Arbor’s city transportation tax is levied at the rate of 2.053 mills, and currently generates $9,565,000 annually, according to AAATA. The 0.7 mill additional tax would generate $3,230,007 in additional revenue in the city of Ann Arbor for a total Ann Arbor local contribution of more than $12.7 million. According to AAATA, Ypsilanti’s dedicated millage generates $274,000, which is less than its POSA agreement called for last year. The 0.7 mill tax would generate around $189,785 in additional revenue in the city of Ypsilanti, for a total contribution in the city of Ypsilanti of around $464,000.

Ypsilanti Township pays $329,294 annually for its POSA agreement. If a 0.7 mill tax were approved, that would generate around $707,969 in the township. Based on the amount of expanded services that the township would receive, the township contribution would be defined as just that $707,969.

The proposed expansion of service does not depend on the nascent regional transit authority (RTA) – a four-county authority for southeastern Michigan, which includes the city of Detroit and the counties of Washtenaw, Wayne, Oakland, and Macomb. The RTA was established in late 2012 in a lame duck session of the Michigan legislature. According to the AAATA’s Sept. 26 informational packet, the RTA has so far spent just $98 of the $500,000 in the budget that was initially allocated to it. The RTA could ask for voter approval of a property tax or a vehicle registration fee to generate transit funding.

This brief was filed from the downtown location of the Ann Arbor District Library at 343 S. Fifth Ave., where the AAATA board holds its meetings. A more detailed report will follow: [link]

The geographic footprint of the Ann Arbor Area Transportation Authority is shown in green: the two cities of Ypsilanti and Ann Arbor. The city of Saline and the townships of Pittsfield and Ypsilanti have also been a part of recent active discussions about committing to a more stable funding mechanism for existing service and expanded service.

With the change to the articles of incorporation, Ypsilanti will also have the right to appoint a member of the board – which is being expanded from seven to nine members. The city councils of the two cities had already approved the change. The Ann Arbor city council voted on June 3, 2013 to approve the change in governance, while the Ypsilanti city council took its vote on June 18. Both councils voted unanimously to support the move. The AATA board took the final vote at its June 20 meeting. [.pdf of new AAATA articles of incorporation] [.pdf of old AATA articles of incorporation]

At the AATA board meeting as CEO Michael Ford asked board members for their support, he said: “It’s time for us to take the reins.”

Ypsilanti mayor Paul Schreiber, responding to an emailed inquiry from The Chronicle, indicated that he hoped the Ypsilanti appointment to the board could be confirmed by the council by late July or mid-August.

While the change to the articles will affect the governance of the AAATA, the goal of the governance change is to provide a way to generate additional funding for transportation. The AAATA could, with voter approval, levy a uniform property tax on the entire geographic area of its membership – something the AATA does not currently do. The cities of Ann Arbor and Ypsilanti currently levy their own millages, which are transmitted to the AATA. However, Ypsilanti is currently at its 20-mill state constitutional limit. A millage levied by the AAATA would not count against that 20-mill cap.

Based on information provided to Ann Arbor city council members for their June 3 meeting, the local share of Ypsilanti’s transportation services – the part for which Ypsilanti is responsible – would come to $325,983 for FY 2014. Ypsilanti’s dedicated millage, which is levied at a rate of 0.9789 mills, generated about $308,000 in FY 2012. So there’s some interest in establishing an additional funding source, just to maintain existing levels of service.

However, current discussions indicate that the intent is to increase levels of service – both frequency and the hours of operation – within the Ann Arbor and Ypsilanti city boundaries. The additional amount of local funding for the planned increases in service would be the equivalent of around 0.6-0.7 mills. One mill is $1 for every $1,000 of taxable value of a property.

An AAATA millage proposal would require voter approval. There’s an outside chance for the AAATA to place a millage on the November 2013 ballot, but that decision would need to be made by late August. [Ballot language needs to be certified to the county clerk by Aug. 27, 2013]. The practicalities of mounting a successful millage campaign mean that a decision to make a millage request would likely need to come sooner than late August, however.

On a possible millage question, AATA staff and board members are currently having “feeler” discussions with some members of the community who have strong interests in transportation.

The change in the articles of incorporation also results in a name change – to the Ann Arbor Area Transportation Authority (AAATA). Customary pronunciation of the current name is to sound out each letter: A-A-T-A. One possibility that’s been suggested is to pronounce the new letter sequence Triple-A-T-A. Another possibility is A-3-T-A.

Ypsilanti’s inclusion in the AAATA came in the context of a demised attempt in 2012 to expand the AATA to all of Washtenaw County. Since then, conversations have continued among a smaller cluster of communities geographically closer to Ann Arbor. The next such meeting is scheduled for June 27 at Pittsfield Township hall, starting at 4 p.m. [Previous Chronicle coverage: "Ypsi Waits at Bus Stop, Other Riders Unclear."]

This brief was filed from the downtown location of the Ann Arbor District Library at 343 S. Fifth Ave., where the AATA board holds its meetings. A more detailed report will follow: [link]