Stories indexed with the term ‘collective bargaining’

The Ann Arbor city council has approved contracts with city police unions that award 2% and 1% wage increases.

Re-openers for the final year of their contracts resulted in new contracts with six police department unions, which the council approved on separate votes: Teamster Civilian Supervisors, Teamsters Local 214; Police Professional Assistants, Teamsters Local 214; Ann Arbor Police Officers Association – Police Service Specialists; Command Officers Association of Michigan; Ann Arbor Police Officers Association; and Deputy Chiefs, Teamsters Local 214.

Common to all the contracts are a 2% wage increase starting July 1, 2013 and a 1% increase starting Jan. 1, 2014.

Also common to the contracts is the acceptance of the change in pension board composition, which was approved by voters on … [Full Story]

The Ann Arbor Public School (AAPS) board has ratified agreements with the Ann Arbor Education Association (AAEA), which represents the district’s teachers, office professionals and paraeducators. The agreements will save $3.4 million for the district. The vote came at the board’s March 27, 2013 meeting.

The tentative memorandum of agreements state that they were made in response to the financial challenges the AAPS is facing, due to a lack of funding for public education.

The AAEA for teachers has agreed to a 3% salary reduction for the 2013-2014 school year. All teachers will continue to move up the salary schedule.

The AAEA for office professionals has agreed that in lieu of a percentage cut on the salary schedule, they will take six furlough days … [Full Story]

Washtenaw County board of commissioners meeting (March 20, 2013): In its main action, the county board approved new long-term contracts with 15 of Washtenaw County government’s 17 bargaining units – including annual wage increases, a cap on employee healthcare contributions, and the elimination of “banked leave” days. The precedent-setting move aimed to protect unions before Michigan’s right-to-work law takes effect on March 28, and cut legacy costs for the county.

About 85% of the nearly 1,300 county workers belong to a union. The board also approved similar wage and benefit changes for the county’s non-union employees.

The right-to-work law will make it illegal to require employees to support unions financially as a condition of their employment, but labor agreements in place prior to March 28 will not be affected until they expire. Most of the previous contracts with the county’s labor unions were set to expire on Dec. 31, 2013. All but one of the new deals will run for more than 10 years – through Dec. 31, 2023.

Dan Smith (R-District 2) cited the length of those contracts as a reason for casting his no vote – he was the only commissioner to vote against the union contracts, though he supported the agreement for non-union employees. The duration eliminates the flexibility to deal with different conditions that might face the county in the future, he said. There is no “re-opener” clause that would allow either side to renegotiate before 2023.

Despite his no vote, Smith praised the most significant changes that will impact employees hired after Jan. 1, 2014. Those employees will participate in a defined contribution retirement plan, instead of the current defined benefit plan – the Washtenaw County Employees’ Retirement System (WCERS). In defined benefit plans, retirees receive a set amount per month during their retirement. In defined contribution plans, employers pay a set amount into the retirement plan while a person is employed. The most common defined contribution plan is the 401(k). Similar changes in retiree healthcare plans will also affect new employees.

The shift in the county’s approach to retirement plans and retiree healthcare was a major concern for several other commissioners. While acknowledging the benefits of eliminating the county’s legacy costs, Conan Smith (D-District 9) cautioned that retirees could be put at risk without the predictable stability of a defined benefit plan. However, he also noted that the board can’t continue to put the institution at risk by “guaranteeing something that we don’t know we’re going to be able to afford in the long run.”

Those legacy costs were a factor alluded to during the March 20 discussion, linking to another major decision that is expected to come before the board: bonding to cover the county’s unfunded liabilities for employee pensions and retiree healthcare. The issue hasn’t been discussed directly at any of the board’s regular meetings, but commissioners have been informed that a proposal likely will be brought forward by administration.

Based on actuarial valuations at the end of 2011, the county had $101.27 million in unfunded liabilities for its defined benefit pension, and $148.46 million in unfunded liabilities for its retiree healthcare. Those amounts will be higher when the 2012 actuarial valuations are completed later this year. The new accounting standards of GASB 68 require that unfunded liabilities must be included in an organization’s financial statements for fiscal years beginning after June 15, 2014.

Commissioners also got a year-end 2012 financial update during the March 20 meeting – the final 2012 audit will be brought to the board in April. Total revenues exceeded total expenditures by $2.26 million. The county had planned for a surplus of $1.889 million to carry into 2013 – so the year ended with an excess of $327,607 above that targeted amount.

In other action items, the board voted to form a committee that will explore the feasibility of creating a land bank, and appointed three people to the committee: Commissioner Ronnie Peterson (D-District 6), county treasurer Catherine McClary, and Mary Jo Callan, director of the county’s office of community & economic development. The committee is directed to report back to the board by Aug. 7, 2013.

During communications from the board, Conan Smith reported that the southeast Michigan Regional Transit Authority board has now been fully appointed, and will convene on March 28 for an orientation meeting. He suggested that the two Washtenaw County representatives – Richard “Murph” Murphy and Liz Gerber – come talk to commissioners about what the county’s interests and priorities are. “The earlier we weigh in, the more systemic the impact of our comments are going to be,” he said. “If we don’t talk to them until they’ve already made decisions, then it’s going to be too late.” [Full Story]

The Ann Arbor city council has approved a new contract with its major labor union, Local 369 of the International Union of the American Federation of State, County, and Municipal Employees, AFL-CIO (AFSCME). The slightly less than five-year deal would go through 2017, and includes a wage increase of at least 1% each year starting in 2014.

The council took its vote at a special meeting held on March 25, 2013. The AFSCME union voted to approve the contract on March 21, according to Robyn Wilkerson, the city’s human resources director.

A staff memo accompanying the council’s resolution indicates the city’s intention by July 2014 to offer an alternative retirement plan to employees. It would be different from the current plan, which … [Full Story]

The Ann Arbor city council has called a special session for Monday, March 25, 2013 starting at 6 p.m. in second-floor city council chambers at 301 E. Huron St.

The purpose of the special meeting is considering a resolution to approve a collective bargaining agreement with Local 369 of the International Union of the American Federation of State, County, and Municipal Employees (AFSCME) AFL-CIO. The agreement would run from March 25, 2013 through Dec. 31, 2017, a bit under five years. The special meeting might also include a closed session to discuss labor negotiation strategy.

The council already had a budget work session scheduled for the same time. So the budget work session will start immediately following the special meeting. The topics of … [Full Story]

Groundbreaking contracts with 15 of Washtenaw County’s 17 bargaining units were authorized by the county board of commissioners at its March 20, 2013 meeting. The deals, which take effect March 21, come a week before Michigan’s right-to-work law takes effect, and guarantee that employees will not be subject to the law until the contracts expire. The board also voted to approve comparable compensation and benefits for its non-union workers.

The majority of contracts run through Dec. 31, 2023 and are the longest-term labor agreements ever authorized by the Washtenaw County government, which employs about 1,300 workers. One of the unions agreed to a shorter-term contract: The contract for AFSCME 3052 lasts five years, through Dec. 31, 2017.

Typically, such agreements last two to five years. About 85% of county workers belong to a union.

In broad strokes, the agreements provide for annual wage increases, a cap on employee healthcare contributions, and the elimination of “banked leave” days. Banked leave days have been used in recent years to help balance the budget by cutting labor costs. The days are unpaid, but don’t affect retirement calculations.

Some of the major changes relate to benefits for employees hired after Jan. 1, 2014. Those employees will participate in a defined contribution retirement plan, compared to the current defined benefit plan – the Washtenaw County Employees’ Retirement System (WCERS). In defined benefit plans, retirees receive a set amount per month during their retirement. In defined contribution plans, employers pay a set amount into the retirement plan while a person is employed. The most common of these defined contribution plans is the 401(k). [Full Story]

Washtenaw County board of commissioners meeting (March 6, 2013): Following a brief public portion of their meeting, commissioners held a two-hour closed session to discuss a new contract with the county’s labor unions, which has been negotiated over the past few weeks.

This was the third consecutive meeting that’s included a lengthy closed session on this topic, as the administration has been conducting accelerated negotiations with its union to reach a new contract before March 27. That’s the date when Michigan’s right-to-work legislation – enacted late last year – takes effect. At the board’s Feb. 20, 2013 meeting, commissioners gave final approval to a resolution opposing the legislation, with a clause that directed the county administration to renegotiate union contracts.

Several union leaders attended the March 6 meeting. However, they did not formally address the board, and left before commissioners ended the closed session.

The board took no action after emerging from the closed session. The new long-term agreements are expected to be brought forward for a vote at the board’s March 20 meeting, and would also need to be ratified by union membership.

A new union contract is likely to have a significant impact on the county’s budget, which will be the focus of a board retreat on Thursday, March 7. Board chair Yousef Rabhi briefed commissioners on the agenda for that retreat. The discussion will focus on six key areas: (1) labor force sustainability/internal equity; (2) environmental impact and mobility in Washtenaw County; (3) economic development; (4) human services/safety net; (5) mandated service provision/resources; and (6) long-term fiscal stability.

Also impacting county operations are automatic sequestration-related federal budget cuts that were activated on March 1. Rabhi read aloud a letter from the U.S. Dept. of Housing & Urban Development, which alerted the county to an anticipated 5% reduction in HUD funding during the current fiscal year for programs supporting low-income housing and emergency assistance to the homeless, among others. The full impact of federal cuts across all county departments – including public health and the office of community & economic development – is not yet known, according to the county’s finance director.

The light agenda on March 6 included three items related to public health: (1) a move toward setting a $75 fee for the county’s training course to certify drinking water operators; (2) giving initial approval to the county public health department’s plan of organization, as mandated by the state of Michigan; and (3) making two appointments to the Washtenaw Community Health Organization (WCHO) board.

Rabhi also reported that the county’s new food policy council, on which he serves, might make a funding request soon to hire a staff member, who would help carry out the council’s work. The council was formed in 2012 to support the local food economy. [Full Story]

Washtenaw County board of commissioners meeting (Feb. 20, 2013): In a meeting with few new action items, the board gave final approval to a resolution protesting the state’s right-to-work law, and spent more than an hour in executive closed session to discuss collective bargaining strategies.

The resolution taking a stance against the state law was approved on a 6-2 vote, with dissent from the board’s two Republican commissioners – Dan Smith (District 2) and Alicia Ping (District 3). Felicia Brabec (D-District 4) was absent. Though Smith had stated his objections on Feb. 6, when an initial vote had been taken, there was no discussion on the item at the Feb. 20 meeting.

The resolution directed the administration to negotiate new four-year contracts “to protect and extend each bargaining unit’s union security provisions.” Current contracts with most of the 17 unions representing county employees expire at the end of 2013. New contracts, if completed before the right-to-work law takes effect in March, would not be required to comply with the new law, which makes it illegal to require employees to support unions financially as a condition of their employment.

Negotiations with the unions began earlier this month.

In other action at the Feb. 20 meeting, the board appointed Dan Smith to the Washtenaw County parks & recreation commission – the third county commissioner to be appointed to that 10-member board. Ronnie Peterson (D-District 6) raised concerns about having too many commissioners serve on that entity, noting that Smith was filling a slot designated for the general public.

Yousef Rabhi, who as board chair made the nomination, responded to Peterson’s comments, saying that he and Smith had discussed this issue – because Smith had the same concerns as Peterson. Rabhi assured Peterson that the commission will continue to provide opportunities for citizens to serve, and that the slot filled by Smith would remain designated as one for the general public for future appointments. Five members of the general public currently serve on the parks & rec commission.

In communications to the board, Rabhi noted that he planned to form a task force to explore establishing a county land bank. A land bank is a mechanism for the county to take temporary ownership of tax- or mortgage-foreclosed land while working to put it back into productive use. The board had previously voted to establish a land bank at its Sept. 1, 2010 meeting, but never took the next step of funding it or getting approval from the state. Only three commissioners from that period – Ronnie Peterson, Rolland Sizemore Jr. and Conan Smith – still currently serve on the board.

Among the other items handled at the Feb. 20 meeting included: Resolutions of appreciation for two Chelsea organizations – Purple Rose Theatre and Chelsea Lanes; a final vote to authorize borrowing up to $40 million against the amount of delinquent property taxes in all Washtenaw County jurisdictions; and final approval to add the Detroit Region Aerotropolis board to the list of boards, committees and commissions that are eligible for commissioners to receive stipend payments.

The Feb. 20 meeting was attended by several students, including nursing students from the University of Michigan who were observing the proceedings as part of a psychiatric nursing course. [Full Story]

On a 6-1 vote, Washtenaw County commissioners passed a resolution at their Feb. 6, 2013 meeting related to Michigan’s new right-to-work legislation – including direction to renegotiate union contracts. The resolution was brought forward by Andy LaBarre (D-District 7), one of three Ann Arbor commissioners on the nine-member board. [.pdf of LaBarre's resolution] Voting against the resolution was Dan Smith (R-District 2). Two commissioners – Ronnie Peterson (D-District 6) and Alicia Ping (R-District 3) – were absent.

In addition to condemning the right-to-work law and urging the state legislature to pass SB 95 and SB 96 – bills that would repeal the law – LaBarre’s resolution also “directs the county administrator and the director of human resources to engage in … [Full Story]

Washtenaw County commissioner Andy LaBarre intends to bring forward a resolution at the county board’s Feb. 6, 2013 meeting related to Michigan’s new right-to-work legislation – including direction to renegotiate union contracts. He emailed a copy of his resolution to fellow commissioners and the media on Jan. 30. [.pdf of LaBarre's resolution]

In addition to formally condemning the right-to-work law and urging the state legislature to pass SB 95 and SB 96 – bills that would repeal the law – LaBarre’s resolution also “directs the County Administrator and the Director of Human Resources to engage in expedited negotiations, as requested by the Unions, with the goal of reaching four (4) year agreements to protect and extend each bargaining unit’s union … [Full Story]

Ann Arbor Transportation Authority special board meeting (July 16, 2012): Although the board does not typically schedule a monthly meeting for July, a special meeting was called because the board had business to transact that could not wait until August.

However, the longest and most vigorous discussion took place on an item not actually on the published agenda: compliance by the AATA with Michigan’s Public Act 152, signed into law in September 2011, which limits employer health care contributions to a fixed dollar amount. At their July 16 meeting, board members took no further action on the issue, letting the vote taken at their previous meeting on June 21, 2012 stand – for now. An additional special meeting might be called sometime in the next week.

The board’s discussion of new information, obtained from the Michigan attorney general’s office, as well as additional analysis of Act 152, suggested a kind of vindication for the position of two dissenters – Charles Griffith and Roger Kerson – in the board’s June 21 action.

That action had been to limit the AATA’s contributions to no more than 80% of the non-union employee health care cost. Adopting the 80% limit is another way for a public entity to comply with Act 152. And the board had voted on June 21 to do that for its non-union employees – because open enrollment was fast approaching for those employees.

As part of that compliance decision, AATA put together a new health care option, which would allow its non-union employees to choose a health care option that would cost them the same as before – but increase their co-pays. And by the time of the July 16 meeting, employees were participating in the open enrollment process, using the boardroom for that activity.

So the board met in a smaller workroom to handle its business for the July 16 special meeting.

That business included a $60,000 increase in the contract with Steer Davies Gleave, the international consulting firm the AATA hired to assist with the development of its transit master plan. The work has included identifying new service options and financial analysis for AATA’s initiative to expand its governance and service area countywide. With this and other previous increases, the value of the contract now totals $780,622, from a deal first signed in April 2010 for just under $400,000. Some of the additional $60,000 will essentially be passed through to a local consulting firm, Carlisle Wortman Associates.

In other business, the board struck a task-order style deal for marketing and advertising with Quack! Media and Pace & Partners Inc. – a three-year arrangement that could be extended for another two years. The $500,000 total authorized by the board works out to $100,000 a year.

The board also authorized an increase in the contract it has with Blue Cab to provide its NightRide service, which operates after the hours when fixed-route service stops running. The increase is from $28 to $32 per service hour for a contract that extends through 2013. Of the $4 increase, $3 is attributed to the AATA’s relatively new living wage policy.

In a final piece of business, the board authorized a $104,000 contract with RBV Contracting to relocate a fire hydrant as part of AATA’s bus garage expansion project. [Full Story]

At its April 2, 2012 meeting, the Ann Arbor city council gave initial approval to changes to the employee retirement system to accommodate recent changes to the collective bargaining agreement with its police command officers union and firefighters union. The council also gave initial approval to changes to the retirement health care benefits to reflect changes to those collectively bargained agreements.

Changes to the retirement system include: (1) increasing the pension contribution of command officer members to 6% from 5%; (2) implementing a pick-up feature as permitted by the Internal Revenue Code for the pension contributions of firefighters and command officers, converting their 6% pre-tax contribution to a 6% post-tax contribution; (3) increasing the vesting and final average compensation requirements for firefighters … [Full Story]

At its March 19, 2012 meeting, the Ann Arbor city council approved new contracts with its firefighters as well as with its police command officers.

The contract with Local 693 of the International Association of Fire Fighters (IAFF) is retroactive to July 1, 2010 and runs through June 30, 2014. Ann Arbor’s firefighters have been working without a new contract since the previous agreement expired June 30, 2010. Features of the new contract include the restoration of pay to the 2008 level – the union had previously accepted a wage decrease of 3% in order temporarily to preserve jobs. The restoration to previous wage levels will take place over the course of two years, at 1.5% each year.

The contract reduces the … [Full Story]

At its Feb. 1, 2012 meeting, the Washtenaw County board of commissioners gave final approval to a two-year collective bargaining agreement with AFSCME Local 3052, representing 52 general supervisors. The agreement had been ratified by its membership, and had received initial approval from commissioners at their Jan. 18, 2012 meeting.

AFSCME Local 3052 was one of five bargaining units – out of 17 units representing county employees – that did not reach an agreement with the county by the end of 2011, when its previous contracts expired. Negotiations continue with the other four units – representing the prosecuting attorneys, the prosecuting attorney supervisors, attorneys in the public defenders office, supervisors of attorneys in the public defenders office.

The new agreement, which runs from … [Full Story]

Washtenaw County board of commissioners meeting (Sept. 7, 2011): Coming off their pared-back summer schedule, county commissioners faced a heavy agenda at their first meeting in September, with several items related to budget and labor issues.

After an executive session early in the meeting, the board approved a contract with the Michigan Nurses Association-Unit II, representing two county employees. It’s the second of 15 union agreements being negotiated as part of the 2012 and 2013 budget cycle, with the hopes of securing about $8 million in concessions over the two-year period.

Throughout the evening, hallway conversations took place among various county administrators who were involved in labor talks that same night. And later in the meeting, the board voted to set a special meeting on Tuesday, Sept. 13 at 4 p.m. to discuss proposed labor agreements. It was expected that additional deals would be announced at that time.

One of those deals was confirmed on Monday, Sept. 12, by county administrator Verna McDaniel. She reported that the county’s largest union – AFSCME Local 2733, representing 644 employees – has ratified a new contract that will coming to the board for approval on Tuesday.

Commissioners dealt with a range of other budget-related items at last week’s meeting. They gave initial approval to budgets for the public health and CSTS (community support & treatment services) departments, which include about a dozen job cuts and a raft of new and increased fees. And two taxes – to support services for indigent veterans, and for economic development and agriculture – received initial approval from the board. Nine people spoke during public commentary and a public hearing on the economic development tax, all urging the board to support it. However, three of the 10 commissioners present voted against it. Final votes on both millages will be taken at the board’s Sept. 21 meeting.

An item that drew the most discussion among commissioners was a resolution to suspend the county’s use of Construction Unity Board (CUB) agreements, pending the outcome of litigation that’s challenging the validity of the state’s Public Act 98. The resolution passed, but with four commissioners dissenting. The dissent came from two differing perspectives, however. Two Republican commissioners – Dan Smith and Alicia Ping – objected to an amendment that affirmed the value of these agreements. Two Democratic commissioners – Kristin Judge and Conan Smith – voted against suspension because they wanted to keep the CUB agreements in place. A final vote on that issue will occur on Sept. 21.

Commissioners dispatched with several other agenda items, giving initial approval to: (1) appoint Jeffrey Jentzen as the new medical examiner; (2) authorize the issuance of $2.7 million in bonds to help pay for a $3.2 million facility operated by the Western Washtenaw Recycling Authority; and (3) amend a contract regarding the distribution of the county’s accommodation tax.

Several items were also brought up as communications from commissioners and the administration. Among them, commissioner Rob Turner gave an update on the situation in Sylvan Township, which has been struggling with $12.5 million in bonds issued to build a water and wastewater treatment plant intended to serve future development. It’s expected that the township won’t be able to make its May 2012 bond payment. Township officials are putting a millage proposal on the November 2011 ballot to raise funds to repay the county, which will be asked to cover the future bond payments. Information forums for township residents are planned for later this month and early October. [Full Story]

At its Sept. 7, 2011 meeting, the Washtenaw County board of commissioners approved a tentative agreement with the Michigan Nurses Association – Unit II, a union representing two county employees. Commissioners held an executive session early in their meeting to discuss the collective bargaining agreement.

The contract would be effective from Sept. 7, 2011 through Dec. 31, 2013, with no wage increases in 2012 or 2013. The agreement also includes changes in the employee health care plan, an increased employee retirement contribution, and the elimination of step increases and tuition reimbursement, among other things.

It’s the second of 15 union agreements being negotiated as part of the 2012 and 2013 budget cycle. Commissioners had previously approved an agreement with the Michigan Nurses Association … [Full Story]

At its Aug. 15, 2011 meeting, the Ann Arbor city council rescinded a resolution passed at its Nov. 16, 2009 meeting, which required execution of Construction Unity Board (CUB) agreements by contractors and subcontractors with the Washtenaw County Skilled Building Trades Council as a condition of award for all city construction contracts. The resolution also required inclusion of the requirement in all construction bids issued by the city.

The resolution was rescinded because Act 98 of 2011 – which became effective July 19, 2011 – prohibits municipalities from including as a requirement in a construction contract anything that would either require or prohibit contractors from entering into agreements with collective bargaining organizations. The act also prohibits discrimination against contractors based on willingness or non-willingness to enter into such agreements.

At the council’s Aug. 4 meeting, interim city administrator Tom Crawford had alerted councilmembers that they would likely be asked to consider the measure at the Aug. 15 meeting.

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

At its July 18, 2011 meeting, the Ann Arbor city council gave initial approval to a change in the pension system for members of its police service specialist union. The council had approved the collectively bargained changes at its June 20, 2011 meeting.

Currently union members make a 5% post-tax contribution to their pension. That will change to a 6% pre-tax contribution made by members of the police service specialist union. The change will be effective starting Aug. 14, 2011.

Because the change to the police service specialist retirement package requires altering a city ordinance, it will require a public hearing and a second, final approval by the council at a subsequent meeting.

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

Ann Arbor city council meeting (June 20, 2011): Two ordinances regulating medical marijuana businesses were finally approved by the council on Monday night, following more than a year of discussion in some form.

The first local law stipulates where medical marijuana businesses can be located in the city – it’s an addition to Ann Arbor’s zoning code. The second law establishes a licensing board for medical marijuana dispensaries and sets up an application process for the award of a maximum of 20 licenses to dispensaries in the first year of the program.

On Monday evening, the council undertook amendments to the licensing ordinance that were few compared to massive changes that have taken place at several council meetings dating back to January 2011. On Monday, the labeling requirements for marijuana packaging were changed so that dollar amounts are no longer required.

The council teetered on the edge of postponing the legislation, when city attorney Stephen Postema encouraged councilmembers to delay voting until the Michigan Court of Appeals issued an opinion on a case (Michigan v. McQueen) for which oral arguments were heard on June 7. Despite the support for postponement from mayor John Hieftje, an initial vote to postpone achieved only two other votes. A second vote achieved a total of five votes, leaving the postponement one vote short of the six-vote majority it required.

As some councilmembers observed that the council had invested a disproportionate amount of time on the medical marijuana legislation, Hieftje contended that it had not prevented the council from handling its other work.

On Monday, that other work included a collective bargaining agreement with its police service specialists union, which was an item added just that evening to the agenda. The council also heard public commentary critical of the recent budget approved on May 31 by the council, which includes the layoff of some firefighters and police officers. The meeting was preceded by a demonstration by the city’s public safety employees, at Fifth and Huron streets just outside city hall

The council  also approved two contracts in connection with the East Stadium Bridges replacement project and three purchase orders related to tree care. And the council gave final approval to sewer and water rate increases and a revision to its landscaping ordinance.

The council revised its debt/fund balance policy, and revised its budget to reflect the blending of its economic development fund back into the general fund. Also related to economic development, councilmembers approved the annual $75,000 funding for Ann Arbor SPARK and set a public hearing for a tax abatement for Picometrix.

The council established an affordable housing lien policy and gave initial approval to technical revisions to the city’s pension ordinance. They confirmed appointments to the new design review board, but postponed a vote on setting the design review fee. The council added a work session for July 11, which is likely to include an update on the planned Fuller Road Station.

The council also heard a presentation on a skatepark planned for Veterans Memorial Park. [Full Story]

In a move that one regent called unprecedented, the University of Michigan board of regents voted at their May 19, 2011 meeting to support the rights of graduate student research assistants to determine for themselves whether to organize and be represented by a labor union.

UM president Mary Sue Coleman spoke out against the resolution, as did regents Andrea Fischer Newman and Andrew Richner, who both voted against it. Both regents expressed dismay that they’d only received notice of the resolution shortly before the meeting.

Coleman read an extensive statement before the vote, telling regents that she feels passionate about the issue personally, and is deeply concerned about it on an institutional level. She sees research assistants as students, not employees. This … [Full Story]

At its Feb. 7, 2011 meeting, as a part of its consent agenda, the Ann Arbor city council authorized the city administrator to negotiate a contract to get an analysis of and recommendations for Ann Arbor’s fire protection needs. The contract, for not more than $54,000, would be signed with International City/County Management Association (ICMA) Center for Public Safety Management.

The move comes in the context of two recent budget retreats conducted by the council, where the council discussed the possibility of transforming Ann Arbor’s fire department to a staffing arrangement that would combine full-time career firefighters with paid on-call firefighters.

The city’s current contract with the firefighters union IAFF Local 693 expired on June 30, 2010. Councilmember Stephen Rapundalo (Ward 2), chair of the council’s labor committee, reported at the council’s Jan. 18, 2011 meeting that the city had been negotiating with its firefighters since February 2010, and has used the services of a state mediator on three occasions. Concessions sought by the city from all its unions include a wage freeze and higher employee contributions to the health care and pension plans.

This brief was filed from the boardroom in the Washtenaw County administration building, where the council is meeting due to renovations in the city hall building. A more detailed report will follow: [link] [Full Story]

Editor’s note: On Jan. 31, the city council will begin a series of workshops on next year’s budget. The most recent status update from the city’s CFO, Tom Crawford, is that the city faces a $2.4 million shortfall if it does not reduce expenses. That figure assumes: (1) The city will receive around $2 million in parking revenue from the Ann Arbor Downtown Development Authority; (2) shared sales tax revenue from the state will continue at the same levels as last year; and (3) unresolved labor contracts will settle in a way that results in no increases to the wage structure, plus additional reductions equivalent to the cost savings the city would see if all employees were on the new health care plan.

The council has already convened two retreats on the budget – this report is a summary of those retreats.

Late last year, on Dec. 4, 2010, the Ann Arbor city council held the first of two budget retreats for the next year’s budget adoption process. The current 2011 fiscal year ends on June 30, 2011, and the council will need to finalize its FY 2012 budget in May. The council typically begins contemplating the next fiscal year’s budget at a retreat near the end of the calendar year.

Two days after the first retreat, at the Dec. 6 regular city council meeting, city administrator Roger Fraser and councilmembers recapped the event, with Stephen Rapundalo (Ward 2) describing it as the best retreat discussion on the budget since he’s been on the council. First elected to the council in 2005, Rapundalo has five previous budget seasons to compare against.

The December retreat agenda reflected two main items: (1) general economic conditions; and (2) a sustainable service delivery model. The grim condition of the state’s economy was a point that was also driven home by Kirk Profit – director of Governmental Consultant Services, the city’s lobbyist in Lansing – in a presentation to the council at their Dec. 6 regular meeting.

The second retreat, on Jan. 8, followed up with a focus on services. To prepare for the retreat, councilmembers had ranked various city services by priority.

At both retreats, councilmembers and staff took the opportunity to communicate a message to city labor unions, some of whom Rapundalo characterized as not yet having seen fit to “recognize economic reality.”

And as chair of the council’s labor committee, Rapundalo has said he’ll give updates at the council’s regular meetings on the status of labor negotiations. He started the updates at the council’s Jan. 20 meeting. The implicit message communicated by the first update: Ann Arbor’s labor unions aren’t making the kind of concessions they should reasonably make, given economic conditions.

This report features highlights of the discussion from both retreats – including issues like the city’s approach to fire and police protection, solid waste and composting, as well as possible replacement of the general fund operating millage with a city income tax.

At both retreats, city administrator Roger Fraser and key city staff did their best to frame the council’s conversation not as a question of what services to cut. Instead, they tried to get councilmembers to consider which services might be delivered in a different way. The sustainability of the service delivery model depends on how the city delivers those services to residents – ranging from employment of full-time city workers, outsourcing the work, or by not offering the service at all.

To frame the context of these comparatively brief retreat highlights, we first offer a look back to 1936, when the city delivered a sidewalk snowplowing service to its residents. How? Partly by hiring in teams of horses to do the job. [Full Story]