The Broadway Party Store, on the east side of the Broadway bridges, was robbed in April 2012. The suspect arrested for the crime, but not prosecuted for it, has filed a lawsuit against the three Ann Arbor detectives who worked the case.

It was a high-profile case, as the security camera’s footage from the robbery was featured on Detroit TV news. The video captured the drama of a man wearing a skeleton mask, pointing a sawed-off shotgun at the store owner.

Bailey was charged with the robbery: After a preliminary examination conducted by judge Christopher Easthope at the 15th District Court, Bailey was bound over to stand trial in the 22nd Circuit Court before judge Melinda Morris.

From the time of his arrest at the end of May 2012, Bailey spent roughly 6 months in jail, before being released in November 2012. He wound up not being prosecuted for the robbery, because the prosecutor’s office concluded that Bailey’s guilt could not be established beyond a reasonable doubt at that time. Bailey did plead guilty to resisting or obstructing a police officer. And for that Morris sentenced him to 6 months in jail. Court records indicate that Bailey was already credited with serving 191 days – more than 6 months.

The federal lawsuit was filed nearly three weeks ago, but apparently still has not been served upon the city or the three detectives. It alleges various violations of Bailey’s basic rights by the detectives who worked the case, and contends that their actions caused him to be falsely imprisoned. [.pdf of complaint]

The Chronicle does not systematically cover crime or the courts. But we do occasionally write about those topics when they intersect with our other regular coverage of governmental units.

In this instance, the first point of intersection came in the course of looking up information on Bob Dascola’s election lawsuit. The ruling on Dascola’s case was filed in the federal court’s PACER (Public Access to Court Electronic Records) system on May 20, 2014. We don’t always look up cases on PACER in a way that is most efficient as measured by the number of steps – which would be to note the case number and enter that information into the search form. If you instead search by cases in which Ann Arbor is a defendant, you have a chance to notice cases other than the one you’re looking up. So it was that we noticed Bailey had filed a case in federal court against the city on May 19.

The second point of intersection is that we’d reported the public commentary of the robbery victim at the city council’s May 21, 2012 meeting. And we’d also reported the city administrator’s public congratulation of the police department at the council’s subsequent meeting, on June 4, 2012 meeting – for making an arrest in the Broadway Party Store robbery.

Finally, given that Bailey’s lawsuit has been filed as a public document in the federal court system, we think it would serve the public interest to add context to some of the allegations included in the complaint.

The context added below is also drawn from public documents – court records (obtained through a standard in-person request) and police records (obtained through a Freedom of Information Act request). First, we present a summary of some issues that the two sides could dispute – if the case is litigated. After that a timeline of events is provided.

Potentially Disputed Issues

Issues that could be disputed by the two sides if Bailey’s lawsuit is served and litigated include: (1) whether a search of Bailey’s bedroom was undertaken lawfully; (2) whether the clothing recovered from Bailey’s bedroom, and alleged to have been worn during the commission of the crime, was general in nature or distinctive; and (3) whether detectives had an obligation to investigate a claimed alibi by Bailey, and if so, whether they met that obligation.

Potentially Disputed Issues: Search

The federal lawsuit alleges that:

Despite the fact that Plaintiff was not at the residence, Defendants [Christopher] Fitzpatrick and [William] Stanford unlawfully entered Plaintiff’s bedroom and conducted an unlawful search of same.

Additional context provided by court and police documents includes a description of how police detectives – including the third detective named in the lawsuit, Michael Dortch – first visited the residence and left when there was no answer to the knock on the door. The following day, a return visit was made, and the door was answered by Bailey’s mother, who told detectives he was not home, but gave permission for detectives to enter his bedroom.

As reflected in the court records, the detectives contended that their purpose in entering the bedroom was not to search for evidence of a crime. Rather, they were confirming that Bailey was not at the residence trying to hide. They contend that the clothing they observed, for which they subsequently obtained a search warrant, was in plain view. That clothing included a hoodie with a skeleton mask, a vest and a pair of jeans.

The lawfulness of the initial search and subsequent search with a warrant – which Bailey’s federal complaint acknowledges was obtained – was the subject of argument during the preliminary exam in front of judge Christopher Easthope. Easthope left the matter of full-blown evidentiary hearing to the circuit court.

After the case went to circuit court, Bailey’s defense attorney filed a motion to suppress the evidence. The argument was based in part on the idea that Bailey’s mother did not have authority to give permission for the detectives to enter his bedroom. The prosecutor’s office filed a motion opposing the suppression of the evidence. Courts records don’t appear to include a ruling on that motion.

Potentially Disputed Issues: Clothing Match

Bailey’s federal complaint alleges that the clothing seeing in Bailey’s bedroom, for which a search warrant was subsequently obtained, was not distinctive enough to be tied to the Broadway Party Store robbery:

The clothes that were seen in Plaintiff’s bedroom were general in nature and could not be specifically linked to the crime at the party store.

The clothing allegedly seen in Plaintiff’s bedroom was not a direct match to the clothing (black sweatshirt with a skeleton on it; black vest, and black jeans) worn by the alleged perpetrators of the party store robbery.

The detectives, on the other hand, describe the clothing as distinctive and matching the clothing that is shown in the security camera footage.

For example, during the preliminary exam, a detective described the vest shown in the security camera footage like this:

The vest is a dark colored vest and appears to be some type of ribbed, and on the video you notice ah–some type of emblem over the left chest upper torso area m’m–the video you can’t make out the writing but it appears to be a couple of letters that are letters of the cross, a brand name, m’m–again, it’s a vest with no sleeves and it comes about waist length on the person.

And the vest actually recovered from Bailey’s room was described this way during the preliminary exam:

This is–is the Avirex brand vest that was found hanging behind the sweatshirt hoodie m’m–it’s dark colored m’m–vest with the word Avirex, A-v-i-r-e-x on the upper front chest area.

Also part of the prosecutor’s argument during the preliminary exam is the idea that it’s not just one article of clothing, but rather the combination of all the articles that leads to the conclusion that the set of clothing recovered from Bailey’s bedroom was the outfit worn during the robbery.

Potentially Disputed Issues: Alibi

Bailey’s federal complaint alleges that detectives failed to investigate Bailey’s alibi:

All of the individually-named Defendants failed to actively investigate all leads, failed to inquire as to the legitimacy of any leads acquired, and failed to make inquiry into Plaintiff’s alibi which put him at a specific address, with a specific individual, at the specific time when the party store robbery occurred.

Bailey’s alibi was that he was with the mother and grandmother of his child at the time of the robbery. This is reflected in a notice of alibi defense filed after Bailey was ordered to stand trial in the circuit court. It’s consistent with a statement Bailey gave to police detectives on the day he was arrested.

However, according to the police reports, that statement came at the end of a conversational thread during which Bailey initially offered other alternatives for his whereabouts. And for the prosecutor, this was used as an argument during the preliminary exam that Bailey should stand trial:

… I’m paraphrasing, the Court has all of these–this information, but Detective Fitzpatrick says something to the effect of, where were you six or seven weeks ago on April 9th. And he says, I was right here. And he gives some story and then was presented with more information about, well no, the video didn’t come out for an hour or a few days later, then he comes up with a different story, oh, then I was here. And then, when presented with the information that well, this crime took place at 10 o’clock at night, then the story changed again. Well, I was here.

Timeline of Events

Here’s a partial timeline of events constructed from The Chronicle’s past reporting, 22nd Circuit Court records (obtained through a standard in-person records request), and Ann Arbor police department reports (obtained through a Freedom of Information Act request).

• April 9, 2012: 10 p.m. Armed robbery is committed at Broadway Party Store.
• April 10, 2012: Sawed-off shotgun recovered about 100 yards from the Broadway Party Store after it was spotted by a passer-by.
• May 21, 2012: City councilmembers are addressed during public commentary by Esther Choi, daughter of Sang-Chul Choi, who was robbed at gunpoint while working at the Broadway Party Store. She tells the council that the store had been repeatedly robbed and that Ann Arbor should not stand for this kind of behavior. [link] From The Chronicle’s report of the meeting: “During a break in the meeting, interim chief of police John Seto approached Choi, who was seated in the audience, and assured her that the department was aware of the case. It’s being worked on, he said, telling her that he’d get her an update from the detective who’s working the case.”
• May 24, 2012: AAPD detectives Fitzpatrick and [Michael] Dortch attempt contact at Bailey’s address. A knock at the door receives no answer.
• May 25, 2012: 9 a.m. AAPD detectives Fitzpatrick and Dortch attempt contact at Bailey’s address. Door is answered by Bailey’s mother, who tells the detectives Bailey is not there. From the police report: “[Detectives Fitzpatrick and Dortch asked] if it would be okay to check his room and make sure he wasn’t hiding or sitting up there. [Bailey's mother took them] up to a room, which she pointed out as being Bailey’s. While looking in Bailey’s bedroom, detectives saw a hoodie, dark colored, with a white mask, which zipped up the front, which was identical to the one the detectives were looking for regarding the Broadway Party Store robbery.”
• May 25, 2012: Request for search warrant. Detective Stanford handles the search warrant, reviewed by prosecutor Robyn Lidell and signed by magistrate Colleen Currie. The search warrant is for: (1) a black and white skeleton sweatshirt with a hood that zips up in a skull; (2) a dark-colored vest with a symbol on the left front; (3) black and white gym shoes; and (4) U.S. currency.
• May 25, 2012: 11 a.m. Contact with Bailey’s girlfriend, mother of his child. Detectives attempt to learn Bailey’s whereabouts.
• May 25, 2012: before and after 11 a.m. Phone calls from Bailey. Bailey has heard detectives are looking for him and calls detective Fitzpatrick several times throughout the morning to inquire why.
• May 25, 2012: 12 p.m. Execution of search warrant by detectives Stanford, Lee, Fitzpatrick, Lawson and Sgt. Fox.
• May 25, 2012: 12:30 p.m. Bailey is arrested. Prior to arrest, Bailey communicates with Fitzpatrick by phone that he wants to surrender himself to Fitzpatrick, but doesn’t want patrol officers involved. Bailey knew Fitzpatrick from previous incidents that were a part of his juvenile record. Police records show that Bailey called him “Fitz.” However, events unfold in a way that Bailey flees from police before he’s arrested and is charged with resisting and obstructing a police officer – the one charge for which he will eventually be convicted.
• May 25, 2012: 1:45 p.m. Interview of Bailey by detective Fitzpatrick. Bailey denies robbing the store. He takes a polygraph test, which the police report says indicates deception. The police report reflects that part of the conversation with Bailey that covered his possible whereabouts at the time of the robbery – a conversation that was summarized at the preliminary hearing by prosecutors and police as Bailey making conflicting statements. The end of that part of the conversation is recorded in the police report as follows: “When told the robbery was at 10:00 at night, [Bailey] said he was probably at his girlfriend’s apartment in Glencoe Hills.”
• May 26, 2012: Arraignment in front of magistrate A. Thomas Truesdell, with preliminary exam set for June 7, 2012.
• June 4, 2012: At the city council’s regular meeting, city administrator Steve Powers publicly congratulates the police department for an arrest made in connection with the Broadway Party Store robbery. [link]
• June 7, 2012: Preliminary exam at 15th District Court in front of judge Christopher Easthope. [.pdf of preliminary exam transcript] Issues raised by Bailey’s defense attorney, Robert Killewald, include the admissibility of the evidence obtained under the search warrant and the use of hearsay. Killewald questions whether the police detectives on their initial visit were merely checking to see if Bailey was present, or if they were in fact looking for evidence. Easthope concludes that the prosecutor’s office has met its burden for four charges: (1) armed robbery; (2) possession of illegal firearm; (3) resisting a police officer; and (4) weapons felony. Based on the transcript, what Easthope finds persuasive are conflicting statements Bailey had allegedly made about his whereabouts at the time of the robbery, the clothing found in Bailey’s room that matched the distinctive features of the clothing the suspects in the security footage wore (hoodie with front zipper that encloses head to form a skeleton mask, a vest with the word “Avirex” on the left chest, a pair of jeans with a checkerboard stitched pattern on the thigh areas, and the fact that Bailey ran from police. The pre-trial hearing is set in front of judge Melinda Morris of the 22nd Circuit Court for July 16, 2012.
• July 16, 2012: Pre-trial hearing.
• Aug. 3, 2012: Notification of an alibi defense. The notification indicates that the alibi for Bailey’s whereabouts at the time of the Broadway Party Store robbery will be provided by the mother of his child and the grandmother of his child and will establish he was at their residence at Glencoe Hills. [.pdf of notice of alibi defense] This alibi appears to be consistent with Bailey’s statement at the end of the conversation about his whereabouts at the time of the robbery, as recorded in the police report.
• Aug. 21, 2012: An additional person [Suspect 2] is arrested, based in part on a phoned-in tip. When shown a photograph of the sawed-off shotgun recovered near the scene of the Broadway Party Store robbery, Suspect 2 admits in an interview with detectives that he had at one time owned the sawed-off shotgun. Suspect 2 denies he’d committed the robbery. The result of a subsequent attempt to match DNA from Suspect 2 to the sawed-off shotgun is inconclusive.
• Aug. 29, 2012: Motion is filed by defense to suppress evidence. One part of the argument is the idea that Bailey’s mother lacked the authority to allow police detectives to enter Bailey’s room initially, when they saw the clothing items – based on which a search warrant was subsequently obtained. [.pdf of motion to suppress]
• Sept. 6, 2012: Response to motion to suppress evidence is filed by prosecutor’s office. The prosecutor’s argument is that it was reasonable for the police detectives to assume that Bailey’s mother did have control over the premises and had the authority to grant permission to them to enter. [.pdf of response to motion to suppress]
• Sept. 28, 2012: Additional individual [Person 3] is picked up on felony bench warrants unrelated to Broadway Party Store robbery and on information Person 3 might have information about the robbery. According to report written by detective Fitzpatrick, he told Person 3 that “… word on the street was that there were north side residents of Ann Arbor who committed the robbery and that the person who did it who was in custody was the wrong person, that person being Joe Bailey.” Person 3 responded by stating he knew Bailey and knew that Bailey was being falsely accused of the Broadway Party Store robbery. Person 3 stated “Joe wouldn’t do something like this.” Person 3 indicated later in the interview that he knew Suspect 2 and told the police that in Suspect 2, they had the right guy.
• Nov. 5, 2012: Plea of guilty is made to resisting or obstructing an officer. The other charges are not prosecuted (nolle prosequi). Reason given: “Unable to prove charges in counts 1 and 2 beyond reasonable doubt at present time.”
• Dec. 17, 2012: Sentencing on the resisting charge is in front of judge Melinda Morris: 6 months in jail. Bailey is credited with 191 days served. [Calculated from May 25, when he was arrested, 191 days would extend through Dec. 1, 2012. But the federal lawsuit filed by Bailey indicates he was released from jail in November. And correspondence between detective Fitzpatrick and the property division of AAPD seems to indicate that by Nov. 20, 2012, Bailey had been released from jail – as Bailey was trying to get Fitzpatrick to facilitate the return of some of his property that had been seized under the warrant.]
• May 19, 2014: Bailey files lawsuit in federal court. [.pdf of complaint]

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Screenshot from crimemapping.com (Image links to crimemapping.com)

CrimeView Dashboard is an Omega Group software product used internally by the Ann Arbor police department to help solve crimes. CrimeView is far more robust than Omega Group’s publicly available, web-based crimemapping.com, which provides citizens with crime maps based on data from the most recent six months.

In a phone interview with Chris Baldwin, Omega Group account manager for Ann Arbor, he told The Chronicle Omega views the company’s relationship with AAPD as a partnership. The publicly available crimemapping.com tool, Baldwin said, is relatively lightweight compared to the tools available in CrimeView, but is still useful for educating and informing the public.

As one example of the difference, crimemapping.com gives locations by street blocks, whereas the AAPD has access to the exact street address.

Through CrimeView, AAPD officers also have access to data on all calls for service, not just on the verified incidents. In a telephone interview, AAPD deputy chief Greg Bazick explained that a call for service is not automatically logged as an incident. The call initiates the report, but then it’s reviewed and validated – which means that, in the view of AAPD staff, an incident meeting the description took place. It’s those validated incidents that appear on crimemapping.com

CrimeView allows officers to set up and save standard data queries so that trends and patterns can be spotted, which can drive decisions about how to deploy resources with an eye toward solving crimes. Bazick described how CrimeView played a supporting role in a recent series of home invasions (breaking and entering). That effort involved sharing information with Pittsfield Township,, which also uses the CrimeView Dashboard.

CrimeView was used to plot reported crimes by date, time and location. Because AAPD had the suspect’s home address, known associates, and knew the suspect had no regular access to a vehicle, AAPD could identify the pattern of home invasions geographically, by day of week, and hour of the day, Bazik said. While CrimeView didn’t itself solve the crime, it saved a lot of time compared to the effort it would have taken to compile the information manually.

Bazik described the AAPD as still in the early stages of learning and using the CrimeView Dashboard tool. It’s part of the AAPD’s broader effort to take a data-driven approach to decision making.

That broader effort includes a project that takes a digital approach to officer activity reports. Having easily analyzable data about how officers are spending their time will allow the AAPD to provide a metric that’s important for measuring success in public safety as defined by the Ann Arbor city council. The description of public safety success, developed by the council at a December 2012 retreat, reads in part: “Police officers have between 25-30% of their time available for proactive policing.”

The AAPD started using electronic data sheets for officer activity logs around the beginning of the year. At the council’s July 15, 2013 meeting, AAPD chief John Seto told councilmembers that the department was doing the initial analysis of data that’s been recorded so far. Responding to an emailed query in late August, Seto wrote to The Chronicle that the analysis of timesheets would be reported to the city council sometime in the near future.

At the July 15 council meeting, Seto also briefed councilmembers on the somewhat downward trend for overall crime for the first six months of 2013, compared with the first six months of 2012. For example, based on the publicly available data from crimemapping.com for the additional month of July, The Chronicle counted 249 breaking-and-entering (forced and unforced entry) incidents from January-July 2013, compared to 295 for the same period in 2012.

Slightly more detail on the breaking-and-entering data is provided after the jump.

Ann Arbor: Breaking and Entering

The earliest Ann Arbor data available through crimemapping.com was from February 2011. One limitation on crimemapping.com is that only data from the most recent six months is available. Chris Baldwin, Omega Group account manager for Ann Arbor, told The Chronicle that the six-month window is based on a desire to have a standardized window for all agencies participating in crimemapping.com. In Michigan, that’s around 30 different departments.

However, The Chronicle has routinely downloaded the data available on crimemapping.com and added some data fields to facilitate analysis in common spreadsheet pivot tables (e.g., a “COUNT” flag). [.csv file of Ann Arbor crimemapping.com data 02.01.2011-07.31.2013]

The series of “home invasions” described by the AAPD deputy chief fall into the general category of “breaking and entering” crimes. Those are coded as at least five different types in the crimemapping.com dataset:

• B&E – Burglary – Forced Entry – Non-Residence
• B&E – Burglary – Forced Entry – Residence – Home Invasion
• B&E – Burglary – No Forced Entry – Non-Residence
• B&E – Burglary – No Forced Entry – Residence- Home Invasion
• Burglary – Unoccupied Building or Other Structure

To graph and map the data, The Chronicle filtered it based just on forced versus unforced entry (instead of residence versus non-residence). Geocoding was done with GPS Visualizer and the mapping was done with geocommons.com.

B&E bar graph – February 2011 through July 2013.

B&E Map Geocoding of the address blocks – which is the more general form available through crimemapping.com – is not as reliable as with exact addresses. Some of the crime locations shown may not be accurate.

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A public hearing sign posted at the site of the proposed Maple Cove residential development on North Maple, north of Miller Road on the city's west side. The project includes seven single-family homes and two apartment buildings. (Photos by the writer.)

The Maple Cove Apartments & Village development is proposed on nearly 3 acres at 1649 N. Maple, north of Miller Road on the west side of North Maple. It would consist of a small court with seven single-family homes, as well as two 3-story apartment buildings each with 18 one-and two-bedroom apartments. There will be two separate entrances off of North Maple – one for the houses, and another for the apartments. This was one of the issues raised by commissioners, as several of them preferred a single entrance to minimize conflicts between pedestrians and vehicles.

Pedestrian safety was also a concern for the drive into the single-family housing section of the development – there are no plans for a sidewalk on that street. Another concern raised by a neighbor during the public hearing – and echoed by some commissioners – was the potential for crime at the apartments, and whether crime data from nearby complexes should be requested to help evaluate the Maple Cove project. Tony Derezinski, a city councilmember who also serves on the planning commission, called using crime data as one of the criteria for approval a “slippery slope” and advised against it.

The possibility was floated to postpone action on the project until some of these concerns could be addressed, but no one made a formal motion to that effect. Brad Moore, a representative for the developer, pointed out that the project as proposed conforms with the city’s zoning ordinances.

Voting against the project were Bonnie Bona and Eric Mahler. The site plan will now be considered by the city council for approval.

Commissioners dispatched a second project on the agenda relatively quickly. After posing a few minor questions, they unanimously recommended approval of a new pump station at the city’s water treatment plant, on Sunset east of Newport Road.

Maple Cove Apartments & Village

Commissioners were asked to consider the site plan for the Maple Cove Apartments & Village development. The project is located on 2.96 acres at 1649 N. Maple, north of Miller Road between North Maple and Calvin Street on the city’s west side.

Project area for Maple Cove is shown outlined in black. (Image links to higher resolution .pdf files)

City planner Matt Kowalski gave the staff report. The plan calls for combining two sites – 1649 N. Maple and 1718 Calvin – and demolishing an existing single-family home and detached garages there. Two 3-story apartment buildings would be built with a 64-space parking lot and eight bike spaces. The project also includes building a private street to serve seven new single-family houses near Calvin Street, but with an entrance off of North Maple. According to a staff memo, there will be no access to Calvin Street, which “is a private street with a checkered history regarding access rights.” The apartment complex would have a separate entrance, also off of North Maple.

Each apartment building would contain a total of 18 one-and two-bedroom apartments ranging from 745 to 1,057 square feet. The plan calls for each apartment building to have a rooftop patio for use by residents, with the possibility of a vegetated cover (green roof) for the remainder of the roof surface. The staff memo noted that the city has requested a $26,660 parks contribution, but the developer has declined to make that contribution.

The site has two zoning designations, which the project accommodates. The east half of the parcel, adjacent to North Maple, is zoned O (office), but residential uses are permitted as long as the project conforms to the area, height and placement regulations of office zoning. The maximum height allowed is 55 feet, but the proposed apartment buildings would be 44 feet tall. The western half of the site, where the single-family homes are planned, is zoned R1C (single-family residential).

Site plans for two previous projects had been approved by the city – in 2005 and 2008 – but neither project was built. Planning staff had recommended approval of this current project.

Maple Cove: Public Hearing

Stephanie Raupp introduced herself as a homeowner who lives directly across North Maple from the proposed development, on Enclave Lane. She’s lived there about six years, and was speaking on behalf of more than 30 others in the neighborhood, on all sides of the project. Everyone she’s spoken to has been supportive of the single family homes, but opposed to the apartment buildings. Raupp raised several concerns about the apartments. There are already water runoff issues in the area, she noted – her home’s sump pump runs almost continuously. If a huge parking lot and apartment complex is added, she said, the situation would get worse.

Stephanie Raupp spoke on behalf of residents in the neighborhood surrounding the proposed Maple Cove project, opposing the apartments but supporting the single family homes.

Another concern is traffic, Raupp said. There’s a lot of traffic on North Maple, and schoolkids of all ages walk up and down the street – Skyline High School is just north of the proposed development. Pedestrian safety is an issue if more cars are entering and exiting at that location.

Raupp also expressed concern about the height of the proposed three-story apartment buildings, noting that there’s nothing that tall anywhere near that area. Finally, she said crime could be an issue at the apartment complex, noting that easy access to the nearby highway makes crime more likely.

Representing the owner – Muayad Kasham of Dynasty Enterprises – architect Brad Moore described some highlights of the project, including rooftop decks for sunbathing and picnics. The complex is also very close to city parks, he said, including Hollywood Park and Garden Homes Park. The owner plans to add a vegetative roof if funding allows, Moore said, similar to one Moore designed for the Big George’s store on West Stadium Boulevard.

Regarding stormwater issues, Moore said the project will include paying for 10 footing drain disconnects, so the development will be taking more stormwater out of the system. The overall site plan is 100% compliant with city zoning codes, he said, and he urged commissioners to recommend approval.

Maple Cove: Commission Discussion – Public Participation

Erica Briggs asked whether there was a public participation report. City planner Matt Kowalski said the developer had mailed out notices about the project, but the project was too small to trigger the need for a public meeting. By way of background, the city’s citizen participation ordinance requires public meetings for some specific kinds of projects (planned projects, planned unit developments, zoning changes) as well as “major projects.” A “major project” is defined as follows:

For purposes of this section, a major project is a proposed project that may require additional citizen participation depending on the scope, nature or any unique or unusual characteristics as determined by the Planning and Development Services Unit Manager.

Wendy Woods also wondered how it seemed that the owner hadn’t communicated with neighbors. Jamie Gorenflo of Midwestern Consulting, another representative for the owner, said that planning staff didn’t require a public meeting, but the owner did mail out notices about the project, asking people to call or email if they had questions or concerns. No feedback was received, he said.

Woods asked the neighbor, Stephanie Raupp, to comment. Raupp told commissioners that she and other neighbors had received notices about the project. But because other projects had been proposed but were never completed, the neighbors had waited before acting. When people realized that the project was on the planning commission’s agenda, then it seemed serious and they decided to speak out against the apartments.

Woods noted that public participation is important so that questions can be raised and the developer can address concerns. Communication is important, she said, and unfortunately it didn’t happen in this case.

Bonnie Bona observed that the property where the apartments are being built is zoned for offices. She suspected that if the neighbors had realized that apartments could be built, there would have been more input.

Briggs asked when it had been rezoned to office. In 2008, Kowalski said. In response to another question from Briggs, Kowalski said the closest office zoning to that site is at the corner of Miller and North Maple, where a small dental office is located.

Briggs indicated that it seemed like spot zoning. Kowalski said that office zoning along North Maple is consistent with the city’s master plan.

Maple Cove: Commission Discussion – Sidewalks, Driveways

Erica Briggs asked why there’s no sidewalk planned for the street leading back to the single family homes. Brad Moore replied that because of low traffic volume, the thought was to keep as little impervious surface as possible. When Briggs asked if there was space available to add a sidewalk, Jamie Gorenflo of Midwestern Consulting answered: yes and no. If a sidewalk were added, they’d need to either decrease the lot size or encumber the lots with additional easements. He noted that the sidewalk is not required by city ordinance because the street serves fewer than eight housing units.

Briggs responded by saying that best practices now call for sidewalks for all single family developments, though she realized the city’s ordinance hadn’t caught up to that.

Wendy Woods also questioned the lack of a sidewalk. So if children in those homes need to walk out to North Maple to catch a school bus, they’ll walk in the street? she asked. Yes, or in the grass, Moore replied. Woods noted that children would be walking in the street even if there’s snow and ice. Moore described it as a private drive with low traffic, not a public street. He said the concept is a dual-purpose paved area, like you’d find in Europe. Woods noted that if every house has one or two cars, there will be traffic. She had a concern for pedestrians, especially for the children.

Later in the meeting, Woods asked Stephanie Raupp – the neighbor who spoke at the project’s public hearing – to comment on the number of pedestrians who walk along North Maple. Raupp noted that the sidewalk is on the east side of North Maple, where her home is located. A lot of high school students walk back and forth to Skyline High School, she said.

Raupp said it’s a great neighborhood, and has been getting better. A lot of people are putting money into their homes, and new homes have been built. Homes in the Walnut Ridge subdivision that have been vacant for a long time are now being sold, she said. There’s so much improvement in the neighborhood, and she’d like that to be a consideration in the project’s approval. Single-bedroom apartments don’t exactly attract families, Raupp noted. She said she could have collected even more signatures opposing the apartments, but her family has a newborn and they’ve been busy. Woods congratulated her on the newborn.

Ann Arbor planning commissioner Erica Briggs.

Bonnie Bona noted that the planning commission’s ordinance revisions committee had discussed the issue of private lanes and sidewalks, and the merits of having less impervious surface versus providing for pedestrian access. The magic number that emerged had been eight units to trigger the sidewalk requirement, she reported, though maybe it should have been six. She said she was concerned about having children walking in the street, but wasn’t sure how to address it.

Bona asked Gorenflo to tell the commission how he would design the street – what width would he recommend, if he weren’t constrained? Gorenflo said he’d make it a lot narrower, but his hands are tied because of code requirements. The width is dictated by international fire code standards that recommend street widths for emergency vehicle access, he explained. In that case, Bona said, that’s something the commission wouldn’t want to argue with.

Bona then turned to the issue of two driveways. Having two entrances – one for the single-family homes, and a separate one for the apartment buildings – would create more potential for pedestrian/vehicle conflict, she said. She could anticipate drivers trying to pull out quickly to get across North Maple. And having a private drive is a bit like putting up a fence, Bona added. It’s not very neighborly.

Later in the meeting, Bona asked Moore what the chances were for designing the site with only one driveway, with a sidewalk. “Slim to none,” he replied.

Another issue related to the proposed homeowners association. Bona asked for clarification about how the ownership of the lots would be divided up, and whether the apartments would be part of the association. She wanted these issues cleared up before she’d feel comfortable voting in support of the project.

Giannola asked whether a traffic study had been completed. Gorenflo said the project team had provided justification to the city’s traffic engineer that a traffic study wasn’t needed, and he had agreed.

Briggs returned to the issue of sidewalks. She noted that originally Moore had said the sidewalk would create more impervious surface, and that’s why they weren’t proposing to build one. Yet having two separate driveways creates far more impervious surface, she noted – so that can’t be the real concern for not putting in a sidewalk. The site plan is meeting the letter of the law, but there are significant concerns in the neighborhood and from commissioners, she said.

There are ways to make the project better for the community, Briggs added. Access to Calvin Street should be explored, at least for pedestrians. If people from Maple Cove want to get to Calvin Street, will they have to drive there? Will they have to walk through someone’s back yard? There are some unanswered questions, she said.

Maple Cove: Commission Discussion – Green Roof, Parks Contribution

Wendy Woods said she hadn’t seen the green roof at Big George’s, but she’d seen one at the Malletts Creek library on Eisenhower, and she would encourage it for the Maple Cove project. It seemed to her, however, that the owner was hanging out the possibility of this great amenity, but then saying “only if we can afford it.”

Brad Moore reported that the owner of this project also owns a landscaping business, so there’s the mindset to do a green roof. But the project has to live within the realities of construction costs and rents, he said. Until the design is finished and construction bids are received, it won’t be clear if a green roof is possible, he said.

How does the city ensure that a green roof happens at some point? Woods asked. She wondered if it could be written into the development agreement. City planner Matt Kowalski said it could only be added to the development agreement if there were a firm commitment from the developer. Kirk Westphal suggested removing the mention of a green roof from the staff report, so it wouldn’t create confusion when it is forwarded to city council. Kowalski said the staff report couldn’t be altered, but the situation could be clarified in a staff memo to accompany the council resolution for the project.

Maple Cove: Commission Discussion – Drainage

Kirk Westphal said his understanding is that even with the project’s additional impervious surface, the site’s drainage situation will improve. Absolutely, Matt Kowalski said.

Looking north on North Maple: The site of the proposed Maple Cove Apartments & Village is on the left.

Currently, draining happens in “sheet flows” on the site, Kowalski said, describing a type of stormwater runoff that doesn’t follow any discernible channel. That results in a lot of standing pools of water, especially on the North Maple side of the site, he said.

The project requires that the stormwater is handled within the site, Kowalski explained. There will be a detention basin, and water will infiltrate through the soil. The county water resources commissioner has reviewed the drainage plan and given it preliminary approval, he said.

The owner will also pay for 10 footing drain disconnects at other properties in the area, which will mitigate the project’s impact on the sanitary sewer system, Kowalski said. [More information about the city's footing drain disconnection program is available online.]

Maple Cove: Commission Discussion – Building Height

Kirk Westphal clarified with Matt Kowalski that the apartment buildings are proposed for a height of 44 feet – lower than the maximum allowable height of 55 feet. Saying he didn’t want to be alarmist, Westphal noted that there’s the possibility of even higher buildings – four stories – being constructed along that North Maple corridor. Zoning would allow it.

Tony Derezinski said there seems to be no objection to the single family homes, just the apartments. So it’s a question of proportion, compared to the surrounding buildings. He noted that residential uses are permitted as long as the project comports with the office zoning’s area, height and placement requirements. That means the commission’s hands are tied, he said – the project complies with zoning.

Derezinski asked what the previous height restrictions were. Kowalski said that the previous project that was approved on that site had buildings that were 40 feet high. So the current project is just four feet higher than that, Derezinski said.

Maple Cove: Commission Discussion – Crime

Tony Derezinski mentioned that the neighbors were concerned about crime and potential drug trafficking at the apartment complex, but he noted that the staff report didn’t indicate any concerns about the project creating a public nuisance. Matt Kowalski replied that it wasn’t possible to predict whether the apartments would create any public health and safety problems.

Derezinski noted that during the public hearing, Stephanie Raupp had mentioned studies that showed an increased likelihood of crime at apartment complexes. Was this something the planning staff could take into account? Kowalski said he hadn’t seen any crime reports for comparable-sized apartment buildings. It would be hard to predict, he said.

Brad Moore observed that if crime becomes a problem, it’s in the owner’s best interest to remove problem tenants.

Diane Giannola said the whole discussion rubbed her the wrong way. Apartments don’t automatically draw crime, she said. Giannola also objected to the criticism of apartments compared to single family homes. There are plenty of apartment complexes that are just fine, she said. There’s no reason to turn down a project just because it’s an apartment building.

Ann Arbor planning commissioners Bonnie Bona and Wendy Woods.

Bonnie Bona said she thought this was a great location for multi-family units – it’s a more intense use, close to a bus route. But she did have some concerns about crime. She’s heard the same issues voiced anecdotally that Raupp raised, and she was interested in getting information about the closest nearby apartment complex on Maple or Miller, so that the commission would have a better idea about what’s going on. Bona indicated that although the current owner might have the best of intentions in keeping the units safe, it’s possible that the property would be sold in the future and the next owner might have a different attitude. She suggested the possibility of postponing action on the site plan until more information could be provided.

Kirk Westphal asked what kind of information Bona was requesting. Bona said she was interested in finding out from the Ann Arbor police department how many problems they have at apartment complexes close to the Miller/North Maple intersection. It would be helpful to know what the sources of the problems are, she said, if problems in fact exist. What she really hoped was that she’d hear there aren’t any problems, Bona said, because she didn’t want to predict what the commission would do after hearing that there are problems. That’s getting into a gray area, she said.

Giannola said that even if they learn about other complexes that have crime problems, it doesn’t mean the new apartment buildings would have similar problems. She didn’t think it justified postponing the project.

Eleanore Adenekan also expressed concern about crime, but said she agreed with Giannola. She asked whether Raupp could provide any information to back up the concern about crime. Raupp came to the podium again and said she didn’t bring crime stats to the meeting, but she noted that everyone gets the Ann Arbor Observer and can look at its crime map. There are also national studies that show proximity to a highway contributes to crime, she said. It’s not that apartment complexes are a problem – it’s the easy access to a freeway. [The last six months of Ann Arbor crime data is available at crimemapping.com]

Other apartments in the area have more graffiti, Raupp contended. She said she’d be happy if the commission requested crime data.

Derezinski said the only criteria is whether the apartments would create a public nuisance. Would crime statistics enable commissioners to determine the answer to that? The commission is on a slippery slope to equate apartments with crime, he said. He knew the neighbors had heartfelt concerns, but the commission couldn’t make a decision based on just the potential for crime.

Maple Cove: Commission Discussion – Postponement

Erica Briggs said she’d like to see this project postponed for a variety of reasons. She said she’s also heard from police officers about crime in the North Maple area – it’s not just anecdotal, she said. Bonnie Bona had suggested the possibility of postponement earlier in the meeting, but neither Briggs nor Bona made a formal motion to postpone.

Wendy Woods ended the discussion by chastising the owner for not listening or responding to concerns that were raised by neighbors, staff or commissioners. It’s felt that a single entrance is better, but that had been rejected. The owner declined to make a parks contribution, and people will have to cross North Maple to get to a park, she noted. She encouraged the owner to be more amenable to making changes before the project is considered by the city council. Woods said she understood that the project complies with zoning requirements, but in order for a project to receive acceptance from neighbors, it’s important to listen to their concerns, she concluded.

Outcome: The Maple Cove site plan was recommended for approval on a 6-2 vote, with dissent from Bonnie Bona and Eric Mahler. Evan Pratt was absent. The project will be forwarded to the city council for consideration.

Pump Station at Water Treatment Plant

The site plan for a new pump station at the city’s water treatment plant – needed to serve increased demand in Scio Township – was on the March 20 agenda.

The 5,114-square-foot structure will be located on the east side of the existing administration building at 919 Sunset, east of Newport Road. Only one floor of the three-level station will be above ground. The city’s water treatment plant provides water to all of Ann Arbor and parts of Scio Township.

Pump Station at Water Treatment Plant: Public Hearing

Brian Steglitz, a senior utilties engineer for the water treatment plant, was the only person to speak during the public hearing. He said he was there to answer any questions that commissioners might have.

Pump Station at Water Treatment Plant: Commission Discussion

Bonnie Bona noted that she lives in this general neighborhood. Several projects have come through over the years at this plant, and in general residents have been pleased with the facility. She asked Steglitz to describe any concerns or feedback he’s heard from residents about the current proposal.

The Ann Arbor water treatment plant on Sunset Road.

Steglitz replied that as with any project like this, a public meeting was held for residents and about a half dozen people attended. The residents weren’t really concerned with the final project, he said, but had issues about the impact of construction, such as traffic, dust and noise. [.pdf file of comments/questions from Feb. 9, 2012 neighborhood meeting]

Eleanore Adenekan asked if water service would be disrupted during the project. That’s not the plan, Steglitz said. Glen Wiczorek, an engineer with Stantec Consulting, which is handling the project, said the city staff will be testing water valves to ensure that the planned backfeeds would work to supply water to the area while other water mains are shut off during construction.

Erica Briggs asked about funding for the project. Steglitz said the project is expected to improve the water system’s efficiency by more than 25% – the current pumps are from the 1950s and ’60s, and use more fuel and other resources. Because of the improved efficiencies, the project is getting about $1.7 million – in the form of loan forgiveness – from the state’s Green Project Reserve assistance program.

Briggs also asked about the status of the 1,4 dioxane cleanup – it had been an issue raised during the February neighborhood meeting. Steglitz said that when residents have the ear of city staff, they often ask about whatever’s on their mind. In this case, the dioxane cleanup had nothing to do with this project and he didn’t have any information about it. [By way of background, court-ordered cleanup and monitoring is ongoing to address 1,4 dioxane contamination caused by the former Gelman Sciences manufacturing plant in Scio Township. For a backgrounder on the issue, see Chronicle coverage: "Residents Frustrated by Dioxane Decision." More information is also online at the Scio Residents for Safe Water website, the county’s Coalition for Action on Remediation of Dioxane (CARD), and the Michigan Dept. of Environmental Quality.]

Outcome: The new pump station was unanimously recommended for approval, and will be forwarded to city council.

Present: Eleanore Adenekan, Bonnie Bona, Erica Briggs, Tony Derezinski, Diane Giannola, Eric Mahler, Kirk Westphal, Wendy Woods.

Absent: Evan Pratt.

Next regular meeting: The planning commission next meets on Tuesday, April 3, 2012 at 7 p.m. in the second-floor council chambers at city hall, 301 E. Huron St., Ann Arbor. [confirm date]

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DPS shift supervisors and officers involved in crime investigations, as well as representatives from housing security and hospital security, will be present to review recent major crime activity and trends, current criminal investigations and crime prevention strategies. There will be an opportunity for the public to ask questions, raise concerns or make suggestions, according to a university press release. This will be the final public session for the current academic year.

City of Ann Arbor chief financial officer Tom Crawford before the Feb. 13, 2012 working session. (Photos by the writer.)

With the exception of one significant change – adding one police officer instead of cutting nine – the blueprint for this year’s budget will, with some slight revisions, follow the plan put in place last year. That includes a plan to eliminate five firefighter positions, pending labor negotiations with the firefighters union.

At the December budget committee meeting, city administrator Steve Powers described this year as taking a “breather” – while stressing that the review of the organization is an ongoing process.

The relative luxury of essentially following the second year of a two-year plan is made possible this year by positive news and outcomes on several fronts.

But at Monday’s working session, the city’s chief financial officer, Tom Crawford, urged a cautious approach, given pending uncertainties about the basic structure of funding local governments in Michigan. Among those uncertainties is the future of the personal property tax, which could drop the city’s general fund revenue by $1.76 million, if that tax were to disappear completely. He advised the council not to use one-time positive outcomes to increase expenditures. Instead, he recommended that the city should strive to increase its fund balance reserve to 15-20% of expenditures – it currently stands around 13%, or $10.5 million. The general fund budget for the city this year calls for $78,321,015 in expenditures.

One of those positive outcomes is the retiree health care funding level for FY 2013, recommended by the city’s actuary – $12.4 million. The city’s planned cost for FY 2013 was $15.3 million. But Crawford is recommending that all but $400,000 of that $2.9 million savings should continue to be paid into the city’s voluntary employees beneficiary association (VEBA), to reduce unfunded liabilities and to guard against future liabilities. The potential $2.9 million savings is a citywide figure.

But as a result of another VEBA-related policy choice that Crawford is recommending, the city’s general fund – out of which basic services like police, fire, planning, and the like are paid – would see a roughly $1 million boost. That policy change would start treating retiree health care as a true pre-funded system, instead of the current pay-as-you-go hybrid. The current hybrid pay-as-you-go approach places a higher burden on those funds that have a relatively large number of associated retirees – workers who were paid out of that fund while they worked for the city. [As of December 2011, the city's general fund had 366 active employees and 532 retirees.] Crawford’s recommended approach focuses on the gaps in pre-funding, which puts the financial burden where most of the liability is currently accruing – active employees. And that would translate to a $1 million general fund savings, compared to the current approach.

Crawford put specific pieces of positive budget news in the context of general positive news, suggesting that the city has now seen the worst of the 2008 economic downturn. Unemployment numbers are dropping – in the Ann Arbor area, unemployment stood at 5.5% in December. And state sales tax receipts are coming off depressed levels – that’s important, because the “revenue” in state shared revenue (the amount the state distributes to local units of government) comes from state sales tax receipts.

Among the specific pieces of positive news Crawford presented to the council was the expectation that the city would break even on the current budget year (FY 2012), which ends June 30, 2012. The city had expected to tap the general fund reserve for $1.1 million this year. In the previous year (FY 2011), the city also essentially broke even, when it had anticipated needing to spend $1.5 million from its fund balance reserve.

Compared to what was anticipated in the two-year plan for FY 2013, on the revenue side several categories are expected to increase. Additional expenses, compared to the two-year plan, include adding a police officer instead of eliminating nine positions.

The net effect of all the changes from the two-year plan is a $1.6 million surplus of recurring revenues against recurring expenses for FY 2013. Of that surplus, Crawford is recommending that the council allocate $150,000 for a pilot program for recruiting police officers. But the rest he’s advising the council to add to the fund balance reserve to guard against leaner years projected in FY 2015-16.

The police recruitment program would allow potential hires to work under the direction of an Ann Arbor police officer before being hired on as a sworn officer. The program’s rationale was described by police chief Barnett Jones at the Feb. 13 working session as stemming from the hiring process to fill nine officer positions that came open at the end of 2011, due to retirements.

Jones gave a presentation of year-end crime reports showing that crime in major categories is trending down for Ann Arbor. Despite the net gain of 10 officers now anticipated for FY 2013, compared to the AAPD staffing levels in the two-year plan, the department’s 118 sworn officers leave Jones 32 short of the 150 that he described at the working session as the “perfect” number of officers for Ann Arbor.

After the jump, this article includes charts and graphs of crime reports, more detail on the impact of retiree health care on the budget, the budget outlook for FY 2013, and the city council’s work schedule for ratifying the FY 2013 in late May.

Work Schedule

Some elements of budget timing leave very little room for flexibility. The city administrator is required by the Ann Arbor city charter to present a budget to the city council each April. And the administrator’s proposed budget must be adopted by the city council, with any amendments the council wishes to make, no later than the council’s second meeting in May.

This year, those constraints have translated into the following schedule.

• Feb. 13: Working session (budget overview, strategy, and police impacts)
• Feb. 27: Working session, if necessary
• March 12: Working session (fire department and other organizational impacts)
• March 26: Working session, if necessary
• April 16: City administrator presents recommended budget
• May 7: Public hearings on budget and fee changes
• May 21: Council consideration of the budget – amendments, adoption

The schedule indicates an apparently late start compared to the last three years, when the council has held off-site retreats to identify priorities and goals, starting in December or early January. Of those three years, the second was actually an exception to the strategy the council has tried to use since CFO Tom Crawford came on board six years ago: Plan in two-year cycles, even though the council adopts budgets one year at a time. On that strategy, every other year should work out to be a fairly straightforward exercise of making minor adjustments to the plan already in place.

So in late 2009, when the city was preparing its FY 2011 budget, that would have ordinarily been a light year for budget work. However, given the dramatic economic downturn a few months before, it wasn’t possible to pursue a strategy of making minor adjustments. Counting that middle year, the council’s pattern over each of the last three years has been to start in December or early January. So this year’s “late” start, though apparently an exception, is essentially a return to the two-year planning approach.

Retirement System Background

At the Feb. 13 work session, Nancy Walker, executive director of Ann Arbor’s employee retirement system, sketched out some background on the system, including its board membership: Jeremy Flack (fire trustee, chairman);
Alexa Nerdrum (citizen trustee, vice chairman);
Dave Monroe (police trustee, secretary);
Terry Clark (general member trustee);
Tom Crawford (city CFO);
Brock Hastie (citizen trustee);
Mark Heusel (citizen trustee);
Steve Powers (city administrator);
and Brian Rogers (general member trustee).

Walker noted that the board still has the same composition as it did before the charter amendment on board composition was approved by voters in the Nov. 8 election, because the change has not yet been collectively bargained. The pre-election charter language set forth the board composition as follows:

(1) The City Administrator and the Controller to serve by virtue of their respective offices; (2) Three Trustees appointed by the Council and to serve at the pleasure of the Council; (3) Two Trustees elected by the general city members from their own number (general city members being members other than Policemen and Firemen members); and (4) Two Trustees elected by the Policemen and Firemen members from their own number.

The revised charter language, which was approved by voters with a margin of 68% to 32% (with a majority in every precinct of at least 61%) retains nine members but distributes them differently, most notably by eliminating from the board the city administrator and one of the trustees elected from the general city membership. The revised board composition is: (1) the city controller; (2) five citizens; (3) one from the general city employees; and (4) one each from police and fire.

The Aug. 15, 2011 city council resolution that placed the charter amendment on the ballot noted that the change would also need to be collectively bargained:

RESOLVED, That if the amendment is adopted, the City Administrator and City Attorney shall immediate commence negotiation with the City’s collective bargaining units to implement the amendment and present to Council the necessary ordinance and contract documents for adoption to make the amendment effective.

Although the new city administrator, Steve Powers, is serving on the retirement board until the new board composition is collectively bargained, the terms of his contract state that he is not a beneficiary of the city’s retirement plan, but will instead have a 401(a) plan. The rationale for the change in the board’s composition was to reduce the number of board members who are also beneficiaries of the plan.

That recommendation had come from a 2005 “blue ribbon” commission – tasked to make recommendations about the city’s retirement board and the city’s pension plan. In 2008, a member of the retirement system’s board of trustees, Robert N. Pollack, Jr., resigned from the board in part due to the city’s failure to enact recommendations of the blue ribbon panel. [.pdf of blue ribbon panel report] [.pdf of Pollack's resignation letter]

At the Feb. 13 work session, Walker reported to the council that most of the blue-ribbon panel’s recommendations had now been implemented.

By way of additional background, the city’s retirement program is supported in part by the levy of a retirement benefits millage [labeled CITY BENEFITS on tax bills], currently at a rate of 2.056 mills, which is the same rate as the city’s transit millage. A mill is equal to $1 for every $1,000 of taxable value of a property.

Walker noted that the retirement system had undergone many changes in its administration, but described the transition as smooth. Among those changes include a new investment manager, a new medical director, a new pension analyst and a new executive director. Walker had joined the Ann Arbor retirement system in January 2011 after Willie Powell had retired in June 2011. Powell served as executive director for the retirement system for 11 years.

Walker also noted that the actuary used by the system as a consultant is also new. Previously the city’s retirement system had used Gabriel Roeder Smith & Company. Starting in 2011, the city began using Buck Consultants as its actuary. The Buck Consultants representative who handles the city of Ann Arbor, Larry Langer, was employed for 10 years by Gabriel Roeder Smith.

Retirement/VEBA Allocation

Larry Langer of Buck Consultants gave the council an overview of the pension fund and the VEBA systems. [.pdf of slide presentation]

Retirement/VEBA Allocation: Overview

City of Ann Arbor retirement system funded ratio graph.

Key takeaway points given by Langer to the council included the fact that the pension fund, for FY 2011 (ended June 30, 2011) had greater investment returns and lower salaries than expected and more retirements than expected. All those changes generated better-than-expected results compared to the June 30, 2010 projections. For FY 2013 the expected employer contribution is now $9,748,510. Based on projections from the prior year’s June 30, 2010 valuation, it had been expected that the city would need to contribute a total of $10,784,00 to the pension fund in FY 2013.

The funded ratio for the pension fund at the end of FY 2011 was 88%, which is a drop from the end of FY 2010 (June 30, 2010) when the funded ratio was 90.3%. But that’s less of a drop than was expected, Langer said. Based on projections from FY 2010 valuation, he had expected a funded ratio of 86.3%.

For FY 2012-14, the dip in the valuation, and the corresponding spike in required employer contributions, drew some questions from councilmembers. Langer explained that the dip corresponded to the economic downturn in 2008-2009. The valuation is keyed to a rolling five-year average, in order to damp the volatility of the measure, so those years continue to have an impact on the valuation until at least five years have passed. Langer cautioned that the funded status will continue to slip in the next few years as the last of the returns from the down years in 2008 and 2009 are reflected in the valuation.

On the VEBA side, which funds retiree health care, key presentational takeaways for the council were greater investment returns than expected, lower salaries than expected, and fewer claims. For the coming fiscal year 2013, the expected employer contribution for employees citywide is $12,379,000, not including some adjustments and interest.

Retirement/VEBA Allocation: VEBA Allocation Policy – How Much?

When the city’s chief financial officer, Tom Crawford, took the podium, he contrasted the expected employer contribution with the number that had originally been planned for FY 2013: $15.3 million. That reflects a citywide savings of roughly $2.9 million.

A number of factors contributed to the reduced cost, including a higher return on investments – 28% last year compared with the standard assumption of a 7% return. Crawford also pointed to ordinance changes reflected in recent collective bargaining agreements, which reduce the health care costs to the city for active employees. And employees hired after July 1, 2011 have an access-only retiree health care plan.

City of Ann Arbor retiree health care contributions. Red line: Historical and projected claims expenses. Green line: Actuarial calculation of contribution. City CFO Tom Crawford is recommending the city continue to make contributions based on the FY 2012 level (dashed blue line), in order to guard against rising claims expenses. (Image links to higher resolution file)

But Crawford noted that the investment returns and the claims amounts – which had contributed substantially to the savings – are relatively volatile and could reverse in the future.

So, of the citywide $2.9 million savings, Crawford recommended that the city continue to contribute $2.5 million of it to the VEBA to pay down unfunded liability and reduce future expenditures. In his presentation, Langer had noted that the VEBA is only 34% funded. On that figure, Langer said that the council might wail and gnash their teeth over the low amount, but it’s still 34% more than a lot other communities.

Crawford also noted that putting $2.5 million of the $2.9 million savings toward the VEBA would help pay down the city’s other post-employment benefit obligations (OPEB) – the city has a $12 million OPEB obligation arising from a settlement with the IRS. Crawford hopes to have that obligation paid off in 5 years.

Crawford noted that the city’s contribution to the VEBA has typically been more than the retiree health benefit costs. And the excess in the contribution, beyond the cost of claims, contributes to pre-funding future benefits. However, because of the increased number of retirees and the rising cost of medical care, the cost of claims is expected to exceed recommended employer contribution in the future. And that will mean that the city will have to rely more heavily in each year on the accuracy of the assumptions underlying the contribution (like at least a 7% return on investments).

In that context, Crawford recommended a VEBA funding policy that makes future city contributions to the VEBA based on the FY 2012 level – but adjusted up or down as a function of the total general fund revenues. That would provide better stability in financial planning and investing, and reduce radical changes in city expenditures, Crawford concluded.

Retirement/VEBA Allocation: VEBA Allocation Policy – Targeting Liability

Crawford’s recommended strategy for the overall citywide retiree health care funding level does not call for the kind of reduction in the city’s contribution that could be achieved if the actuarial OPEB cost were used to determine the city’s contribution.

City of Ann Arbor retirees by fund (department). The majority of city retirees – 65.8% – worked in positions paid for out of the city's general fund (red wedge).

However, a different policy change – one that would assign contributions to those city departments (funds) based on where the future liability is being accrued – would have the effect of saving the city’s general fund roughly $1 million a year.

Under the current system of allocating the city’s retiree health care costs, roughly 73% goes to pay retiree health care claims and the remaining 23% goes to pre-funding – through payments into the VEBA. It’s a hybrid between a pay-as-you go approach (in which each year’s retiree claims are paid out of the current year’s budget) and a pre-funding approach.

The current method essentially treats all retiree health care claims in any given year as unfunded liabilities. That approach means that a city fund (department) with a relatively high number of retirees compared to currently active employees has a relatively higher retiree health care contribution compared to other city funds.

City of Ann Arbor active employees by fund. While the majority of city workers are paid out of the general fund (53.3%), it's a lower proportion than the number of retirees paid out of the general fund (65.8%).

The new approach Crawford is recommending is a true pre-funding approach, and takes into account where the new liability is accruing. The city has already made contributions to the health care of retirees, so not all of the retiree health care claims in a given year are unfunded liabilities – part of those claims have, in a sense, been pre-funded.

So the accruing liability is with currently active employees as they work each additional year. And eventually, as new hires who came on board after July 1, 2011 are vested in the system, the city will see just a $2,500 per year liability in connection with those employees’ access-only plans. So instead of a 73%/27% split, the new allocation methodology would work out to 40%/60% – with 40% going toward the unfunded liability due to existing retirees’ health care and 60% going toward the accruing liability of active employees.

The effect of that shift has a variable impact on different city funds (departments), based on the proportion of retirees and active employees associated with each fund. In late 2011, for example, the general fund had 366.3 active employees, compared to 532.5 retirees. By way of contrast, the parks maintenance fund had 22.59 active employees, compared to just 10 retirees. So for the general fund, under the new methodology recommended by Crawford, the total retirement health care allocation would drop from $9,600,241 to $8,584,649, for a savings of roughly $1 million. But for the parks maintenance fund, the retirement health care allocation would increase from $258,909 to $322,960.

FY 2013 Budget Outlook

The $1 million savings to the general fund – which would result from the retiree health care funding methodology recommended by city CFO Tom Crawford – figures into the overall budget outlook for FY 2013 presented to the council by Crawford.

He began by putting the current year’s budget discussion in the context of the general economic and political climate. Unemployment is improving, he said. In the Ann Arbor area, the unemployment rate stood at 5.5% in December 2011, compared to a rate of 9.3% across the state of Michigan. State sales tax receipts are coming up from their depressed levels. Short-term interest rates are still near 0%. Property tax revenues are fluctuating slightly. Revenue from the federal stimulus package is disappearing. He noted that the state legislature is still considering the elimination of personal property taxes, but has focused little discussion on addressing the structural funding issue for local governments.

Crawford noted that for the previous fiscal year, the city had broken even, when it had planned to spend down the fund balance by roughly $1.5 million.

FY 2011
Revenues                $ 81,065,793
Expenditures              80,938,127

Net Excess/(Deficit)       $ 127,666
Unassigned Fund Balance $ 10,525,445 (13% of expenditures)

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Crawford told the council that again this year, for FY 2012, the city is working realistically to break even, despite having budgeted to tap the fund balance for over $1 million. If the city does break even, that will result in maintaining its $10,525,445 in unassigned reserves, which is 13% of annual expenditures.

Compared to the two-year plan associated with the previous year’s budget, there’s been a net increase in expected recurring revenues [figures in millions]:

FY 2013
Recurring Revenues

$77.8 planned
----------
  0.6 increased tax revenues
  0.7 state shared revenues
  0.2 increased fire inspection revenues
 -0.6 remove police dispatch (loss of PSAP revenue)
 -0.2 bond user fees
  0.2 other
----------
$ 0.9 total change
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$78.7 revised

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On the expenditure side, Crawford presented the council with a net reduction of $0.7 million compared to the two-year plan. The bulk of those reductions were related either to health care or the contracting out of the city’s police dispatching operation to the Washtenaw County sheriff’s office:

FY 2013
Recurring Revenues

$77.8 Planned
----------
 -1.2 remove dispatch (19 positions)
  0.8 add back 1 police officer, not cutting 9
 -1.0 change retiree health allocation method
 -0.3 police union employees health care
 -0.1 AFSCME union employees health care
  0.1 increased pension contribution
  0.3 higher energy costs
  0.2 higher tax refunds
  0.1 AATA
  0.1 AFSCME president
  0.1 increased severance
  0.2 Other
----------
 -0.7 total change

$77.1 revised

-

The increase in revenues and reduction in expenditures resulted in a net surplus of $1.6 million for FY 2013. Crawford cautioned against spending that surplus, even on one-time items, and advised instead that it be added to the city’s fund balance. The reason for his caution is based on a continued projected increase in expenses in FY 2014-16 of around 2% per year – which he characterized as about what you’d expect in a organization where the primary expense is employee compensation. Personnel costs outpace inflation, he explained.

Against that 2% increase in expenses, the city is projecting only a 1% increase in revenues. On that basis, Crawford is currently projecting that the city would need to spend $792,973 of its fund balance in FY 2015 and $2,112,030 in FY 2016.

In order to guard against any future economic downtown, Crawford said he’s advising that the city increase its fund balance reserve target to the range of 15-20% of annual expenditures. It currently stands at 13%. Still, Crawford said that compared to previous years, it was a nice forecast, with basically a $1 million challenge to meet in coming years – compared to the $2.5 million in savings the council had needed to find in previous years.

Policing, Crime Statistics

Out of the $1.6 million surplus anticipated for FY 2013, one new program that Crawford is recommending the city fund is a pilot program for recruiting police officers. It would cost $150,000. At the Feb. 13 working session, chief of police Barnett Jones explained that the rationale for the program stemmed from difficulties with the hiring process to replace nine officers who retired at the end of 2011. The city received a few hundred applications, but Jones told the council that seven of the nine candidates it had initially identified didn’t turn out to have the kind of backgrounds that rose to the level of professional standard that AAPD wants.

The pilot program would give the department a chance to work with officers on the beat before being hired on as full-time sworn officers. They’d work under the supervision of an AAPD officer and would spend a portion of their time downtown addressing nuisance issues. Despite the net gain of 10 officers now anticipated for FY 2013, compared to the AAPD staffing levels in the two-year plan, the department’s 118 sworn officers leave Jones short of the number he’d like. At the working session, he described the “perfect” number of officers for Ann Arbor as 150.

At the working session, Jones also presented year-end crime totals for the city – in the context of trends since 2002. In all categories of major crimes, the city is trending downward, except for one, criminal sexual conduct:

Ann Arbor Crime Trends: 2002-2011 (UDAA is automobile theft) (Image links to Google Spreadsheet and other charts.)

As a possible theory on why that category of crime has increased, Jones ventured that it’s the kind of crime that carries with it a stigma that acts as a barrier to reporting it. As women are increasingly comfortable reporting such crimes, the numbers have risen, he theorized.

At the working session, Jones rejected the idea that for other crimes the decrease in frequency could be attributed to a decreased number of officers – the idea being that are simply fewer officers to take the reports, leaving more crimes unreported. Jones said that for these types of crimes, he thinks it’s unlikely that anyone would fail to report them – in many cases they’re tied to payouts of insurance claims.

Data for categories of serious crimes was not presented at the working session. The most recent six months of all crime reports for Ann Arbor and some other jurisdictions are available through the website crimmapping.com

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But the city council’s Sunday night caucus again found Mayor John Hieftje offering what’s become a customary explanation to the public for the absence of the majority of council members: many of them have family obligations, and it’s not a required meeting of council.

So along with Hieftje, it was only Sabra Briere (Ward 1) and Mike Anglin (Ward 2 Ward 5) who heard brief remarks from residents and the development team on the subject of the Near North affordable housing development on North Main Street. The City Place development team – which is bringing its “matter of right” proposal for housing on South Fifth Avenue back to council – also made themselves available for questions from councilmembers.

Council received an update from Alan Haber, who reported that a group of citizens had met and resolved to respond to the city’s request for proposals for development on top of the underground parking structure to be built along Fifth Avenue.

Finally, the council had no further updates on the communication the city clerk has received from her counterpart with the county, to the effect that revisions to the charter amendment ballot language they approved at their last meeting could not be accommodated – they missed the Aug. 25 deadline.

Near North

Near North is an affordable housing project of around 40 units proposed for North Main Street. The nonprofit Avalon Housing and the developer Three Oaks are working on the project together. The project is a planned unit development (PUD), which by definition asks for a rezoning of the property to accommodate the project. As a PUD, it is evaluated by the city council in terms of whether its public benefit is adequate to justify the rezoning that is requested. It therefore differs from the City Place project coming before the council at Monday’s meeting as well – City Place is a “matter of right” proposal, which does not ask for a rezoning of the property.

Bill Godfrey of Three Oaks Group, together with Michael Appel, executive director of Avalon Housing, attended the caucus along with other members of the development team. At Briere’s request, Godfrey gave a brief synopsis of the design changes that had been undertaken. There are nine changes, Godfrey said, including an elimination of the fifth floor and more separation between the two buildings. He described how the collaboration between the design team’s architect, Damian Farrell, and Peter Pollack, a local architect who’d worked with the neighborhood group, had resulted in a design with “more horizontal feel.” The horizontal feel had been achieved, he said, by making the living rooms back-to-back.

There would be a side agreement, Godfrey reported, with the North Central Property Owners Association concerning the retail space designed for the structure.

John Hilton, whose house abuts the proposed development, reported that the neighborhood group, while not happy, was still “accepting of the outcome.”

Two members of the public expressed their continued concerns about the project, however. One cited the removal of the houses and the sacrifice of open space, and another criticized the $250,000 construction cost for each unit.

City Place

The City Place project on South Fifth Avenue has a long history. The proposal coming before city council on Monday is a “matter of right” project with 24 total units, each with six bedrooms. There are two buildings, separated by a parking lot. Currently there are seven houses standing on the parcels where the project is proposed. Here’s a timeline of the project:

• Jan. 15, 2008: Conditional rezoning – Ann Arbor Planning Commission recommended denial.
  YES: None. NO: Bonnie Bona, Craig Borum, Jean Carlberg, Ron Emaus, Joan Lowenstein, Eric Mahler, Ethel Potts, Evan Pratt, Kirk Westphal.
• May 20, 2008: PUD (planned unit development) – Planning Commission recommended denial.
  YES: Emaus. NO: Bona, Borum, Carlberg, Lowenstein, Mahler, Potts, Westphal. ABSENT: Pratt.
• Sept. 4, 2008: PUD – Ann Arbor Planning Commission recommended denial.
  YES: Borum, Lowenstein. NO: Bona, Carlberg, Potts, Pratt, Westphal, Woods.
• Dec. 15, 2009 2008: City Council rejects resolution to establish a Historic District Study Committee for Germantown.
• Jan. 5, 2009: PUD – City Council denied on a unanimous 0-10 vote.
  NO: John Hieftje, Sabra Briere, Tony Derezinski, Stephen Rapundalo, Leigh Greden, Christopher Taylor, Margie Teall, Marcia Higgins, Carsten Hohnke, Mike Anglin. ABSENT: Sandi Smith.
• April 21, 2009: MOR (matter of right) – Planning Commission recommends approval on 6-3 vote.
  YES: Bona, Carlberg, Derezinski, Mahler, Westphal, Woods. NO: Potts, Borum, Pratt.
• June 1, 2009: MOR – City Council postponed it due to inconsistencies in drawings provided on website. [Errors  attributed to city staff.]
• June 15, 2009: MOR – City Council sent it back to Planning Commission due to technical errors with drawings provided at the Planning Commission April meeting. [Errors attributed to city staff.]
• July 7, 2009: MOR – Planning Commission recommended denial on 5-1 vote to approve (needed 6).
• July 20, 2009: MOR – City Council postpones until January 2010, to give the developer the opportunity to pursue a revised PUD. A condition was that the developer could bring back the matter of right project with 35-days notice.
• Aug. 9, 2009: City Council establishes a Historic District Study Committee and moratorium on demolition for two-block area, including proposed site of City Place.
• Aug. 17, 2009: City Council revises language of moratorium to include all forms of work, including demolition.

Developer Alex de Parry and attorney Scott Munzel attended caucus and made themselves available to answer questions. Councilmembers Carsten Hohnke (Ward 5), Leigh Greden (Ward 3), and Christopher Taylor (Ward 3) were quoted in a Sept. 18  AnnArbor.com article as professing confusion about why the project was being brought back before them. So Munzel was there to provide any clarification that councilmembers might be seeking.

The resolution passed by the city council on July 20 provided an opportunity for the matter of right project to be brought back before the council with 35-days notification. As the notification letter dated Aug. 20, 2009 from the developer’s legal counsel states, the point of bringing the project back is to exhaust “administrative remedies.”

Councilmembers at caucus did not have any questions for Munzel or de Parry.

Library Lot Request for Proposals

Alan Haber reported that a gathering of residents had determined to offer a proposal in response to the city’s RFP (request for proposals) for development on top of the underground parking garage to be built at what’s known as the Library Lot. Their concept was to retain public ownership of the land as a commons. The citizen-owners of the place would determine the function of the space, he said. Haber reported that the basic concept involved a mixture of art and something park-like, so he anticipated that the public art commission and the park advisory commission would be asked to play a role.

Ballot Proposal Language

The city council passed a resolution at its Aug. 17 meeting that placed a charter amendment on the ballot that would allow it to publish its newly passed ordinances on its own website or any other means the city council determined was adequate – as opposed to current requirements that stipulate publication in a newspaper. Then at its Sept. 8 meeting, council approved a revision to the ballot language. Attached to the city clerk’s report of communications on council’s Monday agenda is a letter from Washtenaw County clerk Larry Kestenbaum, which states that the ballot language revision could not be accommodated, because it came after the statutory deadline of Aug. 25.

It’s The Chronicle’s understanding that the county clerk’s office may offer the city the possibility of changing the ballot language, if the city accepts the legal responsibility for any litigation that might result.

Crime

Sabra Briere reminded caucus attendees of the fact that a neighborhood meeting would be held to discuss a spate of recent break-ins on the west side of the city and to advise residents on ways to “harden their houses.” The meeting will be held Tuesday, Sept. 22, from 5-7 p.m. at the Ann Arbor Community Center, 625 N. Main Street.

On the subject of measures one could take not to broadcast to everyone that one was away for an extended period, Peter Pollack pointed out that some things – like stopping one’s mail and suspending a newspaper subscription – were within one’s control. Other things were not: for example, door hangers left by advertisers, and copies of the A2Journal, which are thrown onto people’s lawns on a non-subscription basis.

John Hilton, editor of the Ann Arbor Observer, advised Bill Godfrey that one of Godfrey’s properties near Hilton’s house had been broken into. Hilton had noticed the break-in because the burglar had left behind a guitar in his backyard.

The Email Resolution

Though not specifically addressed at caucus, on the city council’s agenda for Monday will be a resolution sponsored by Mike Anglin (Ward 5) asking for publication of past council emails and for communications during future meetings to be made available two weeks after meetings take place.

There’s been considerable back-and-forth discussion about the nature of the language of the resolution. As of Monday morning, it’s The Chronicle’s understanding that Mike Anglin (Ward 5) will propose the following language as a replacement for the resolution that is currently on the agenda:

Resolution to Disclose Council Electronic Communications without Charge to the Public

Whereas, on September 8, 2009, City Council amended its rules to place limitations on electronic communications during Council meetings, and the routine disclosure of such communications in the future will help the public monitor compliance with the amended rules; and

Whereas, over the past several months a large volume of Council electronic communications has been disclosed to the public in response to a variety of Freedom of Information Act requests, and therefore has already been subject to deletions by the staff authorized by that Act; and

Whereas, it is in the public interest to disclose all electronic communications to and/or from Council members during Council meetings for as far back as records of these communications still exist; and

Whereas, many members of the community want to view these electronic communications and rapid disclosure of all the electronic communications will help restore public confidence in City Government; and

Whereas, the disclosure of such communications should be done in an orderly way so as to minimize staff time and costs; and

Whereas, it is more cost-effective that the disclosure of such communications be done systematically, rather than in response to Freedom of Information Act requests that may be made by the public in the future;

RESOLVED, that effective immediately, the City Clerk shall append copies of all electronic communications defined as public records under the Freedom of Information Act sent to and/or from members of Council during a City Council meeting, with deletions authorized by that Act, to the official minutes of that meeting when published on the City’s website.

RESOLVED, that by November 1, 2009, the City shall post on its website copies of all electronic communications to and/or from Council members that have already been disclosed to the public in response to Freedom of Information Act requests made on or after March 27, 2009 to this date.

RESOLVED, that by December 1, 2009, the City shall post on its website copies of all electronic communications to and/or from Council members during Council meetings, with deletions authorized by that Act, from January 1, 2008 to this date that have not already been disclosed as above.

RESOLVED, that by January 1, 2010, the City shall post on its website copies of all electronic communications to and/or from Council members during Council meetings, with deletions authorized by that Act, from January 1, 2007 through December 31, 2007 that have not already been disclosed as above.

RESOLVED, that by the first day of each succeeding month, the same procedure shall be followed for each prior calendar year of such electronic communications until all such communications have been disclosed.

RESOLVED:  That City Council directs the City Administrator to provide an explanation of the basis under the Michigan Freedom of Information Act or other statute for the determination that the electronic communication or a portion thereof, is exempt from disclosure, including the statutory provision authorizing the withholding information from the public. If the City Administrator determines that the contents of an electronic communication, in whole or in part, is subject to a disclosure exemption under the Act, the email, including the header information, will be included in the materials disclosed with the exempt portions redacted.