According to the report, the expenditure budget will be approximately $1.3 million higher than originally projected. The increase is due to a $700,000 increase to transportation costs, a $300,000 increase of the substitute budget, and an increase of $300,000 for the health care budget to cover anticipated usage through the remainder of the fiscal year.

The $1.3 million increase in expenditures comes after the trustees had already amended the budget by $2.5 million two months ago, on March 13, 2013, to account for the second quarter financial report.

At its next regular meeting, the board will be asked to take action to amend the general appropriations and approve the third quarter disbursements.

This brief was filed from the board room of the Ann Arbor District Library in downtown Ann Arbor at Fifth and William. A more detailed report of the meeting will follow.

Robert Allen, AAPS deputy superintendent for operations delivered a second quarter financial report that showed the district is nearly $2.5 million over budget.

A report on high school scheduling got a mixed reaction from the board. While many trustees appreciated the work that went into the report, there was disappointment that no hard recommendations were made by the committee. No decisions were made on the issue of moving high school start times or moving Skyline High School from a trimester to a semester schedule.

And Robert Allen, deputy superintendent of operations, left the board reeling when he reported the district was just under $2.5 million over budget and needed to adjust the 2012-2013 budget. The discrepancy resulted from staffing adjustments and changes in funding from the state of Michigan.

Having been directed by the board at a previous meeting to explain better the implications of each item cut, Allen again reviewed some budget reduction options for the coming year.

The board was also briefed on the condition of physical properties and updated on the capital funding plan. Executive director of physical properties Randy Trent suggested the possibility of placing a combined bond and sinking fund millage on the ballot, instead of asking for a simple renewal of the sinking fund millage, levied currently at 1 mill. The idea would be to ask voters for the same amount – to cover the combined proposal – with the advantage that the bond revenues can be spent more flexibly.

The board was briefed on major purchases for projectors and copiers and voted to approve some purchases on which they’d already been briefed a their previous meeting – for AstroTurf and laptop computers.

The board also voted to place a discussion of a resolution on its agenda for March 13, which would express the board’s support for three district high school students who now face criminal charges as a result of a brawl at the conclusion of a football game last year. 

High School Issues

District superintendent Patricia Green gave a brief introduction to the follow-up report to a previous presentation on high school issues.

AAPS superintendent Patricia Green

High School Issues: Start TimesThe preliminary report was brought to trustees at their Dec. 12, 2012 meeting. At that meeting, the trustees asked for further exploration and recommendations. The goal for this presentation was to provide comprehensive information as a follow-up to their earlier discussion.

Alesia Flye, deputy superintendent of instruction, reported on the results of the district-wide survey on school start times. Given the current three-tiered bussing system, the district could not change high school start times without impacting middle and elementary school schedules. The survey was designed to gauge community interest and impact if high school start times were shifted by 15 minutes.

The committee ultimately recommended making no change to either elementary or middle school start times. If  high school start times could be shifted 15 minutes later in a cost-neutral way, the committee would recommend doing that.

Trustees seemed unimpressed by the survey and the recommendation. Susan Baskett said she found the survey confusing and suggested the committee reach out to experts when crafting future surveys. Simone Lightfoot’s concern was that the survey centered just around a 15-minute later start time. As a parent, she said, 15 minutes doesn’t make that much of a difference. The gain of such a small amount of time did not seem to outweigh the effort it would take to make happen.

Baskett agreed, saying it didn’t make sense to unravel everything for just 15 minutes. She was frustrated the committee spent so much time only talking about a 15-minute adjustment.

Flye responded by saying they had extensive conversations in the committee regarding the benefits of 15 minutes. While some of the committee members preferred a longer late start, such as 30 or 60 minutes, high school parents said that even 15 minutes would make a difference.

Saying it could be very helpful and informative if the board knew that research supported a 15-minute start time delay, Stead asked if research showed a meaningful impact on student performance. Flye replied that the research was mixed. Some studies show positive outcomes, while others show no significant difference.

AAPS trustee Simone Lightfoot

Glenn Nelson wondered if the committee had a scenario for adjusting high school start times in a cost-neutral way. Flye replied there were several options they were costing out for transportation.

Baskett wondered why they needed to be tied to the three-tiered transportation system. Board president Deb Mexicotte noted that one of the challenges was that there were so many things that were interconnected.

High School Issues: Enrollment

Flye gave an update on the response seen after the district opened up 25 spaces each at both Huron and Pioneer high schools for in-district transfers. The openings were a result of decisions made at the Dec. 12, 2012 board meeting. Before that, only transfers at the elementary and middle school levels had been allowed.

A total of 81 requests were received: 31 requests for Huron [23 from Skyline, 8 from Pioneer] and 50 for Pioneer [25 from Huron, 25 from Skyline]. A lottery was held for the 50 spots available, and a waiting list was created.

Baskett was concerned that some parents might not understand that the in-district transfer wait list was not carried forward like it was at Community High. Director of student accounting and research services Jane Landefeld said they for in-district high school transfers, staff had followed the same process used at the other levels. She noted that staff had called the family of each student who didn’t get in, to talk with them about the lottery.

After seeing the results of the in-district transfers, the committee determined it would be problematic to open schools of choice (SOC) enrollment at the high school level. They have not been able to meet the demand for the internal requests in the district, so they don’t want to open their doors to students outside the district. Increasing the number of in-district slots beyond 50 may require additional staffing costs. It is not currently in the plan to do so.

Trustee Christine Stead said the district needed to think systematically. The intent of allowing in-district transfers, she said, was to “satisfy our own families first.” If students were indicating they wanted to go to another high school, she would choose to keep them in AAPS every time. They’ve got to take care of the people who live within the district first.

High School Issues: Semester/Trimester Scheduling

Flye walked the trustees though a presentation that outlined the pros and cons of moving Skyline to a semester schedule. The impact across the district and across the curriculum of having two different schedule systems was detailed, as well. The cost savings of moving to a semester schedule was approximately $300,000.

Currently, they were getting good results from both scheduling systems. But the reason they began looking at this, Flye said, was for the cost savings. While educational findings indicated both scheduling structures can exist side by side, there are logistical challenges for operating two different academic schedules within one school district.

The committee did not make a formal recommendation. They offered the following for consideration instead: review ways to achieve the cost savings within the trimester structure; look for cost savings in non-core areas; and prioritize cuts and look at other options, such as working with the community to raise funds, looking at spilt enrollment costs, and transportation costs.

Stead said she was confused about the work of the committee. She said she thought they were looking into trimester versus semester scheduling because some parents had brought concerns about the kinds of gaps that occur in the core subjects. There was no data on the impact of the magnet programs. If magnet programs were so important and valuable, the board needed to see that data. If this was only about the budget, then the report that had been submitted was fine. But if they were trying to figure out which model was best, and if they had substantive data that showed the trimester model worked better for students, then they should move all of the comprehensive high schools to trimesters.

The trustees took issue with the way the charts broke down the additional costs associated with Skyline. Thomas said he had assumed that the higher cost of Skyline could be attributed to the trimester system, but based on the information presented, nothing showed that it was more expensive to run trimesters than semesters with a seventh hour. The increased cost of Skyline came from its lower enrollment number and its student-to-teacher ratio.

Nelson said using the actual enrollment and the actual FTEs obscures the analysis rather than helps it.

High School Issues: Skyline Enrollment

Some discussion unfolded about the issue of declining enrollment at Skyline. Forty-eight of the 81 requests to transfer came from students who were within Skyline’s boundaries. Flye said they needed to closely examine the trend of declining enrollment at Skyline. Not all of it was attributable to the changes in availability of transportation in the past year, she said.

Trustee Andy Thomas said he understood the concern about balancing the enrollment at each of the three comprehensive high schools. He asked how many Huron and Pioneer students had applied to Skyline – either for the magnet program or in general.

The committee said it was important to carefully weigh the implications of only opening one of the comprehensive high schools as an SOC. Given that Skyline had declining enrollment, the trustees couldn’t understand why they wouldn’t want to open Skyline as an SOC. When SOC was first offered at the middle school level, it was initially offered only at Scarlett Middle School, so there was a precedent for offering SOC at only one school at a given level.

Thomas asked if they wanted to have a school district where each of the high schools have their own character, or if they wanted a more uniform experience across the three comprehensive high schools. Skyline was created with the idea that it was going to be different. They built into the expectation that they were going to draw enrollment from across the district. However, people were “voting with their feet” and choosing to go elsewhere.

High School Issues: Board Discussion

Several of the trustees thanked the committee for the “prodigious amount” of work that went into compiling the information. Mexicotte noted the board appreciated being able to look at that kind of information as they balance the budget.

While Lightfoot appreciated the work, she was concerned that “the folks on the front line” haven’t really provided the board with solid recommendations. She acknowledged that the trustees weren’t experts and relied on the professionals to offer recommendations steeped in the reality of the situation.

Stead had some sharp words for the committee. She said  four members of the committee wrote to the board to ask to have their names removed from the report, saying the report does not represent their opinions. She argued the report did not represent the collective work of all members of the committee. No magnet teachers were included on the committee, and meetings were not scheduled so all members of the committee could attend. That caused the results of the report on trimester scheduling to be suspect, Stead concluded.

AAPS trustee Susan Baskett

Baskett concurred, saying they have had some serious concerns raised by committee members. She said the board didn’t want to be accused of having the committee members be their “paper dolls.”

Flye responded by saying that the scope of the committee changed as the board charged it with additional topics – and a different level of commitment was required from members of the committee. Some of those members joined believing the work would focus only on high school start times.

Trustee Irene Patalan said she recognized the board asked for a lot of information. And trustees needed to take some of the responsibility for the change in scope of the committee work, she allowed. As the district has to do more with less money, there is even greater pressure.

Stead again expressed her frustration that for families who want to follow the trimester scheduling debate, it had been included under “high school start times.” They did families a disservice in packaging those together – because in no way ever would she guess that they were remotely related.

Mexicotte wrapped up the discussion, saying the report raises an number of additional questions. If they need additional data, they will put out a request.

Green complimented Flye and the committee members who were present at the meeting. Not only did the members stay at the board meeting past midnight, but they were doing it on a snow day from school. She appreciated that they gave up their time to be on the committee and that they were there that evening. She also thanked the district chairpeople who were “experimenting” with them on the newly formed curriculum senate.

Outcome: This was an information item. No board action was required.

High School Issues: Public Comment

During public commentary, Stewart Gordon said the Skyline bond issue was sold to him and the people of Ann Arbor on the basis of things like mastery learning, trimester scheduling, and integrated technology in the classroom. The teachers and Skyline administration have done a “sterling job” of delivering on what was promised. It would be a betrayal of voters like him, Gordon said, to hamstring the successful programs at Skyline, especially the trimester scheduling. The other comprehensive high schools should emulate the success and the successful model of Skyline, he said.

Budget Reductions Update

Green was clear when she introduced AAPS deputy superintendent of operations Robert Allen’s presentation on potential budget reductions that they were bringing forward a list of cost estimates, not recommendations. After six or seven years of continual reductions of over $60 million, she said, everything that is left to cut is “going to create controversy” because it cuts “so deep into the bone.” She wanted to bring forward actual budget recommendations in April, which is earlier than usual for the district.

Allen’s presentation built upon the previous presentation he made to the board at the Dec. 12, 2012 COTW meeting. At that meeting, the board directed him to add the percentage of the total each proposed reduction represents, as well as more specific impacts of each cut, to the charts. This time, the charts included the percentage of reductions, in addition to service alternatives. [.pdf of budget reductions]

Allen said the items he was presenting were mutually exclusive – meaning that each item can stand alone and is not dependent on any other estimate. The presentation again covered an estimate of the number of staff reductions that would accompany each reduction, a short description of the implications associated with that reduction, the percentage of reductions, and the way the district would fill in the gaps of the reductions.

Reductions: Instructional Services

Despite the fact that Allen had added service alternatives to the charts, the trustees did not quite feel that adequately addressed the impact. Stead asked for a “sense of participation” – how many students will be impacted by each decision. Mexicotte said that while “service alternatives” addressed was how the gap would be filled, it did not describe what that would look like.

Several trustees asked about how various aspects of the district experience would be impacted by reductions. Lightfoot asked what a $1 million cut from athletics would look like. Allen said that a third of athletic funding would be cut, and they would need to look at options such as Rec & Ed to fill that gap.

Patalan asked:  If district funding for theater were eliminated (savings: $200,000), would drama classes continue with no district financial support of productions? Any classes available for credit would still be supported, said Allen, but drama productions would not be supported with district funds.

Stead wanted to know how each building could operate with a reduction of 12 media specialists (savings: $1.2 million) and still give students a rich, meaningful experience. The trustees also asked for a more transparent percentage reduction for media specialists: How does a reduction of media by 12 FTEs translate percentage-wise? The chart lists it as 1%, which only reflects the cut from total FTEs.

Thomas wasn’t sure the savings matched up with the categories. For instance, they had talked in depth about moving Skyline to the semester system (savings: $300,000), but the savings doesn’t come from the trimester versus semester instructional issue. The savings come from fewer FTEs being needed at Skyline in a semester system. He ventured they could reduce the overall teaching staff at Skyline and still keep the trimester system.

Eliminating 5th grade music (savings: $500,000) and reading intervention teachers (savings: $1 million), said Thomas, makes him sick. He asked if it were not possible to come up with a different, less “draconian” approach. For example, instead of reducing the teacher assistant work year by one week (savings: $160,000), he suggested they could look at reducing overall professional development in the district by a certain percentage.

Green replied one of the reasons they were moving to a line-by-line budgeting accountability was to see exactly what was spent where. This would allow for more precision with the budget. Nancy Hoover, director of finance, is in the final stages of that transition, said Green.

Stead said they needed to “try harder” to keep the cuts out of programs and classrooms. She could not cut 32 teachers and halve the number of elementary principals without looking at other options. She suggested reducing the number of assistant principals at the high school level, reducing the secretarial staff, and looking into the finance and IT departments for possible reductions.

Reductions: Operations

After Allen walked through the reductions in operations, much of which focused on reductions in transportation, Lightfoot asked about the possibility of redoing the transportation contract with WISD. Allen said that in the first year of the consortium, there were cost reductions because of contract changes. Moving forward, the ways to achieve cost savings is to look at more efficiencies, such as consolidating routes.

Lightfoot also wondered if there was a greater possibility of other districts joining the transportation consortium now that Willow Run and Ypsilanti school districts have consolidated. Allen said that other districts were looking to join. He said that consolidating special education transportation would probably have the most traction.

Reductions: Moving Forward

Mexicotte reiterated that the presentation was only an update. They were going to continue adding to the list of potential cuts as they move towards the recommended budget draft, scheduled to come in April.

Lightfoot encouraged her colleagues to consider forming subcommittees to look closer at issues of transportation, safety, maintenance, media, and athletics. Those subcommittees, she hoped, would be able to take closer looks at how cuts would actually impact those areas.

Outcome: This was an information presentation. No board action was required.

Reductions: Budget Forum Process

During agenda planning, Nelson proposed a series of budget conversations with the public. He envisioned an informal setting where two or three trustees would be available to hear from members of the community. This would differ from the traditional larger forums the district has held in the past. He believed a format like that would be a way to seek “substantive input and demonstrate through action” that they were really looking for people’s ideas.

Thomas clarified that the budget forums would take place the last two weeks of March in order to accommodate the board’s desire to have these conversations before budget recommendations are made. Stead said that it would be important to develop the schedule with the full availability of the trustees.

Outcome: The board unanimously voted to place on the March 13 agenda a discussion on the budget forum framework.

Finances: Budget Shortfall

Allen was joined by Hoover in presenting the second quarter financial report. Hoover, along with Trent, is taking over Allen’s responsibilities in the wake of Allen’s  resignation, announced it February. He will be leaving to take a job in North Carolina at a school now run by former AAPS superintendent Todd Roberts. His last official day will be March 22. While there are no plans to fill the vacant position, Hoover will be working to get the budget out in time.

AAPS director of finance Nancy Hoover talks with deputy superintendent for operations, Robert Allen. Hoover will take a portion of Allen’s responsibilities after Allen leaves the district. His last day is March 22, 2013.

The board was upset to learn that the district was nearly $2.5 million over budget for FY 2013 and needed to adjust the original budget. An additional 24 teacher assistants (TA) and five additional teachers were not included in the initial staffing budgeting for an additional cost of $1.39 million. And a change in Gov. Rick Snyder’s “best practice” funding left a $1.1 million decrease in projected revenue.

The trustees were baffled about the discrepancy between staffing projections and the actual numbers – given that enrollment in the district stayed flat. Allen explained that by the terms of the teacher contract, if the district exceeds a target class size, teachers have the option of either getting a TA or being paid extra. The district has seen an increase in number of teachers requesting TAs instead of the payout. This year eight TAs were requested. The remaining 16 TAs were brought in to match the needs of students with individualized education programs (IEPs).

Thomas argued that if the district had budgeted properly based on the previous year’s numbers, they would have had enough staff. It bothers him that they would underestimate their needs by that much. Allen said that while enrollment numbers stayed the same from last year, the distribution from room to room could result in overages. While an increase in two or three students could produce an overage – and the option for a TA – a decrease of two or three students wouldn’t result in a decrease in FTEs.

Lightfoot asked if it would be possible to renegotiate with the unions to change the number of students in a classroom that triggers an overage. If teachers begin to  exercise the right to a TA more often, the cost increase would be dramatic. Allen said that if there were an opportunity, the district would look to having that conversation with the unions.

In terms of TAs being added because of IEPs, Allen explained that IEPs are developed for students throughout the year. While they work against adding additional TAs, once an IEP is written, the services must be provided.

Nelson said that the explanations given by Allen would be more convincing if this hadn’t been a pattern over the past several years. He was bothered that they couldn’t control the expenditure side, because that part is in their purview. He asked how the projections could be so wrong.

Allen replied that in the past, the district had built in more or a cushion in the budget to allow for these kind of overages. Now that the budget is tightened up, there is less room. He said they were looking at historical data to see if there are trends. Allen also said they needed to anticipate the number of special-ed students better, because an additional cost comes with providing the kinds of services those students need.

Saying they needed to be “laser focused” on what kinds of resources they want to provide students, Stead asked if there could be more oversight introduced into the IEP writing process – to make sure that extra TAs are really what’s needed. Mexicotte cautioned that the IEP writing process, which is a team process, cannot be trumped by outside pressures.

Stead noted that she has heard from families who have moved into the district that AAPS writes “very rich IEPs.” There had to be a balance between the Cadillac version and the least amount of services, she ventured.

Lightfoot said she was concerned about managing the cost of special education services, given that the district was a magnet for many with special needs. Mexicotte confirmed with Allen that the district gets a 67% reimbursement from the state for special education services.

Stead and Thomas both pointed out that the 2012-2013 budget was designed to account for an increase in enrollment. The budgeted personnel was for a higher number of students, but they “missed our budget in FTEs in the opposite direction.” It was unacceptable to Thomas that they didn’t learn about this until end of February. While changes at the state level were out of the district’s hands, AAPS needed to do a better job of managing their expenses and FTEs, he said.

Nelson agreed and said a more transparent way is needed of monitoring FTEs in the district, because “we have a significant problem now.” Green mentioned that she had talked with Nelson, as board treasurer, and Hoover about that.

Outcome: This was a first briefing item. After a second briefing at the next regular meeting, the trustees will be asked to pass a resolution to amend the general appropriations in the budget to consider a decrease in revenue of $1.1 million and an increase in expenses of $1.39 million.

Capital Funding Plan

Green introduced the report on the district’s capital funding plan, saying it was one in a series of reports to the board to bring items into the archival record. She had charged Randy Trent, executive director of physical properties, with putting together a physical properties report, as well as an argument for the renewal of the sinking fund millage, which will expire at the end of 2014.

Capital Funding: Sinking Fund Overview

Trent first outlined the differences between a bond issue and a sinking fund millage. A bond issue, such as the technology bond passed May 2012, is a lump sum dollar amount that the district borrows through the sale of bonds in order to fund capital projects – such as building construction, district wide technology, and furniture. Taxpayers pay the money back over a period of years, with interest. He likened it to a home mortgage.

A sinking fund millage is a limited property tax for addressing building remodeling projects. It’s considered a pay-as-you-go method. State law allows a district to levy up to 5 mills of property tax, for a period no longer than 20 years. There are legal requirements, restrictions, and guidelines for public school districts that plan to fund capital enhancements or facility repairs through sinking fund millage levies.

The district currently levies a 1 mill sinking fund that expires at the end of 2014. That 1 mill tax means the owner of a home with a taxable value of $100,000 pays $100 annually. Trent stressed that taxes will not increase if the sinking fund millage is renewed – because it would just maintain the 1 mill that was renewed in 2008. He said the sinking fund is a critical component of how capital needs of the district are funded.

Trent suggested asking voters to approve a bond and sinking fund combination for the same taxable value of 1 mill for the renewal in 2014. The combination of the two – in place of the straight-up 1-mill sinking bond renewal – would give the district more flexibility to spend the funds without increasing the taxpayer’s burden. Because of legal restrictions, a sinking fund cannot be used to purchase any items that can be moved from building to building, such as classroom furniture. The district is currently looking at furniture replacement needs totaling around $5 million. Without a combination bond/sinking fund, the money for that replacement would have to come from the operating budget.

Monies from sinking funds and bond proposals can only be used to fund capital improvements, not any operating expenses. So sinking funds and bonds cannot be used for teacher salaries and benefits. While AAPS can itself place capital improvement initiatives on the ballot, any kind of general operating expense millage must be placed on the ballot through the WISD, and include all schools in the county. The last time such a county-wide millage increase was placed on the ballot was in 2009, and it failed.

AAPS trustee Irene Patalan

To make a point about the kinds of items that can be paid from a sinking fund, Patalan said that as buildings age, they need to be repaired. That kind of building repair work can be paid for with the sinking fund. But salaries for the teachers who staff those buildings must come from the operating budget.

The 2010 sinking fund has been used district-wide for mechanical and electrical upgrades, key card access system for security, roof replacements, parking lot replacements, and ADA site improvements, among other things.

The balance in the sinking fund as of Dec. 12, 2012 was $1,843,636. That money is currently allocated for purchasing buses. But depending on what is decided by the trustees about transportation for the 2013-14 budget, that money may or may not be used for that purchase. All other projects have been completed.

Capital Funds: Technology Bond Update

Trent also gave an overview of the technology bond. The first year’s expenditures have focused primarily on infrastructure upgrades to accommodate future growth needs. A major infusion of technology will begin in the second year for classroom and teacher technologies.

In year one of the tech bond, the district WiFi will be reconfigured to have multi-tier access. In year two, there will be a complete WiFi reconfiguration, and the district will upgrade to the latest wireless protocol. They will also be increasing access point density and expanding coverage.

Trent emphasized that they are working to inform the community about what is being done with the tech bond money. A tech newsletter is accessible on the district website and goes out to individuals in the district.

Capital Funding: Physical Properties Report

The trustees were provided with a comprehensive physical properties report that detailed out the capital needs of each building owned by the district, along with some basic information about the buildings. All work that has been completed at each school was also listed out in the report.

Trent noted that one of the things they were trying to do by pulling out all this information was to evaluate what their facility options in the future could be. He also noted that the Ann Arbor Preschool and Family Center and the Freeman School building [which is leased to Go Like the Wind Montessori] were not included in the building catalog. Responding to a question from Lightfoot, Trent noted that at Freeman, while the district takes care of things like utilities, the renters have made large contributions and have paid most of the capital expenses. It was ultimately a revenue generator for the district, he said.

Several trustees asked how building needs were determined. Trent said they evaluate the district building-by-building to determine basic five-year needs. His department also works with each of the building administrators to determine needs. These needs were evaluated frequently, he said.

Capital Funding: Board Response

The report was met with praise from the board. Lightfoot thanked Trent and Green both for the “phenomenal” report. Patalan said she saluted Trent for how “on top of things you are.” Nelson said that the report showed they were good stewards of taxpayer’s money and demonstrates there is a thoughtful plan of how the district is using its dollars.

Noting the quality of classroom furniture, Lightfoot asked if the district was stretching the life of items as much as they stretched out the life of computers. Trent responded by saying there were purchases they would like to make, but have had to delay because they don’t have the funding. While they have been able to make improvements through bonds, there is “still a lot out there” to improve. He cited cafeteria tables in some of the buildings that were over 50 years old.

Lightfoot asked if there was a way to get a better deal on items by purchasing through WISD or with other districts. Trent confirmed that AAPS does purchase within a consortium – either with RESA or through the state purchasing consortium. Another way the district has kept costs down, he said, was by holding vendors to bids that were four or five years old.

Thomas and Patalan both noted they had concerns that building priorities change over five years. Lightfoot asked if there was a mechanism in place to get a report from the principals and building maintenance staff to assess the needs of the buildings on an annual basis. Thomas suggested discussing at a future COTW how they would expect the administrative team to bring things forward and establish those priorities. Trent replied that staff were managing the priorities “every day, every moment,” and those priorities come from the meetings he has with building principals. He also cited efforts the district has made to reduce costs by becoming more energy efficient.

Stead pushed Trent to give a deadline for a sidewalk in front of Wines Elementary along on Newport Road. She said that having a completed sidewalk there would help students get to Wines and Forsythe. Trent acknowledged the district has been working to do their share of the project, and noted the community support for the project. Because Newport Road runs over M-14, the district must work with the city of Ann Arbor and the state on such a project. Lightfoot asked, along with Nelson, to be kept in the loop about any sidewalk conversations, because the two trustees are members of the transportation safety committee. Trent mentioned that the committee’s talks with the Ann Arbor city council seem to be positive – because he’s seen more movement forward lately.

Andy Thomas

Nelson emphasized the fact that sinking funds cannot be used for salaries. And, he noted, if the sinking fund is not renewed, any building repairs will need to come from the general fund. That would impact the district’s ability to pay for teachers. He was intrigued by the idea of a blended bond/sinking fund to allow more flexibility.

When Nelson asked how flexible the remaining money in the sinking fund balance was, which is currently earmarked for buses, Trent explained there were some restrictions on it. But the money it didn’t have to be spent on buses if the district’s busing needs changed.

Nelson also encouraged the district to strengthen preschool programming because there’s a renewed focus on early childhood education on a federal and state level.

Green noted that one of the things they did last summer was to move Rec & Ed into the instructional division to be able to “connect the dots in a much more strategic way.” She said Dawn Linden, assistant superintendent for elementary education, and Jenna Bacolor, director of community education and recreation, have been talking about ways to enhance and further expand preschool experiences in the district.

Linden said she has been working with Bacolor to increase enrollment in the preschool programs in a cost-neutral way. They have been under-enrolled for a second year in a row. Because there were trends at the state and federal level to increase availability of preschool, the district wants to be poised to have that capability.

Outcome: This was an informational report. No board action was required.

Auditor Recommendation

According to Green, best practices dictate putting up audit services for review every five years. As the district has used Plante Moran for the last six years, an audit services request for proposal (RFP) was issued in December 2012.

Three bids were received. After reviewing the bids, Plante Moran and Yeo & Yeo were invited to make a presentation to the committee tasked with the audit services bid. The committee unanimously recommended Plante Moran because of their extensive experience in K-12 education market, the detailed and clear audit process outlined by the firm, and its local presence – with an office in Ann Arbor. The recommendation was to award Plante Moran the district’s financial audit contract for a cost of $161,000 over three years, with the potential for two one-year renewals.

Plante Moran was not the lowest bidder. While Yeo & Yeo’s bid came in at $156,000, Allen explained that with a new firm, there were usually some additional costs not included, such as inputting the district’s general ledger into their program.

Saying that he had great respect for Plante Moran and was comfortable with the recommendation, Nelson was concerned that an auditor should not be “too familiar with us.” He said he was happy to vote yes for Plante Moran, but he strongly endorsed the idea of asking for a different audit team than the one they currently had.

Outcome: This was a first briefing. The board will vote on the contract at its next regular meeting.

Purchases

The board was briefed on two large purchase authorizations – one for copiers and another for projectors. The board was also asked to vote on some purchases – Apple computers and AstroTurf.

Purchases: Copiers

Linda Dorente, director of purchasing and business services, recommended replacing 103 district copiers at a cost of $385,242 for a 39-month lease. The recommended copiers have been tested in several district offices for performance, durability, functionality, and easy of use. While the primary functionality of the new machines is comparable to the current machines, the interface is easier to use and should reduce the amount of paper used.

With this purchase, the district would be consolidating copier, printer, and risograph service providers into one: Toshiba Business Solutions.

Because the district made the choice to delay the five-year replacement schedule until the spring of 2013, maintenance costs have increased.

In the past, the lease and corresponding maintenance cost for copiers have been funded with the general fund. Allen recommended that the district fund the purchase of the copiers through the tech bond in order to reduce some of the burden on the general fund. It has been verified with the district’s bond counsel that this would be an allowable expense for the bond. Allen said this could save $130,000 per year over three years. He suggested using that savings to pay for the additional software costs that will be incurred when the district purchases the new iMacs and MacBooks.

Nelson appreciated Allen’s recommendation to use money from the tech bond, instead of money from the general fund. To him, it meant better technology in the buildings and money freed up from the operational budget to pay teachers and other instructional costs.

Outcome: This was a first briefing. The board will vote on the purchase at its next regular meeting.

Purchases: Projectors

As part of the technology upgrade, Trent recommended a district-wide replacement of classroom projectors, approximately 200 sound amplification systems, and supporting electrical equipment. The money for this purchase would come from the tech bond approved in May 2012.

A request for bids on the project was issued on Jan. 10, 2013. Bids were received and publicly opened on Feb. 5, 2013. After various companies were interviewed by the district’s technology bond professional team, the team recommended the following contract awards: Great Lakes Power and Lighting ($393,000 for electrical work); The Professional Group ($1,879,619 for audiovisual equipment); and to AVI-SPL ($183,168 for the sound amplification systems). Each were the lowest qualified bidder for each category.

On behalf of students at Clague Middle School, Lightfoot asked if the sound field amplifiers worn by teachers will be modernized. She noted there were some concerns with the battery life. Trent assured her sound field amps would be part of the replacements made if the board voted to approve the soundfield projectors.

During public commentary, assistant business manager of IBEW Local 252 Ron Motsinger spoke to the board on behalf of over 800 IBEW electricians, 200 of whom he said were currently unemployed. He took issue with the recommendation to award a contract to Great Lakes Power and Lighting (GLPL) for electrical work. He contended the contractor Trent was recommending had a long history of not using licensed apprentices, as well as multiple violations on prevailing wages. He asked that the GLPL bid be dismissed because it’s “suspect and unreliable.” Motsinger also recommended awarding the work to Sound Engineering, a local company that bid on the audiovisual contract.

Trent said he wanted to make it clear the GLPL has entered a response for most of the issues addressed by Motsinger. He also noted that David Comsa, deputy superintendent of human resources and general counsel, was looking into the assertions made by Motsinger. A response to those concerns will be delivered to the board before the next regular board meeting.

Purchases: Projectors – Board Response

Baskett asked how familiar Trent was with the issues brought up by Motsinger. Trent said that Barton Malow – the district’s general contractor for this work – has had dealings with GLPL and recommended the company for the job.

Lightfoot pointed out the some of the concerns were as recent as five years ago, and said these complaints were of concern to her. Noting that Plante Moran was not the lowest bid for auditor, she questioned why the district had to award the projector work to the lowest qualified bidder. Money isn’t everything, she said, especially when looking at the kinds of conduct GLPL was accused of. Baskett was also concerned that there was a blemish on GLPL’s record. She wondered if the board would have known about the issues, if Motsinger hadn’t attended the board that evening.

Thomas noted that the GLPL bid is more than $200,000 lower than the competing bids, “not a trivial amount.” He asked why there was such a discrepancy between their bid and the other bids received. Trent replied that the actual electrician rate for union workers was $95 per hour, compared to $62 per hour for a non-union shop. Baskett asked to see the actual bids so they could compare rates.

In her president’s report, Mexicotte noted a subcommittee had been formed to put together recommendations for the board about contracting policies – based on the board’s conversation at the Jan. 23, 2013 COTW meeting. The subcommittee is working with Green to meet with community members and other members of the staff to help with the effort. Both Lightfoot and Baskett said they were excited about the work they had been doing. Lightfoot said the committee will work to make sure the policies reflect the current situation in the economy and the community. Baskett said they had talked about the history of contracting policies in the district and where they can go. She looked forward to inviting more people to the table.

Outcome: This was a first briefing. There will be a vote after a second briefing at the next meeting.

Purchases: Apple Computers

Having had an initial briefing at the Feb. 13, 2013 meeting, the trustees approved the purchase of new Apple computers. The district will use money from the technology bond to purchase the 1,900 iMac 21-inch desktop computers and the 400 MacBook Pro 13-inch laptops for a total cost of $2,431,700 – $1,974,100 for the iMacs; $457,600 for the MacBooks.

The iMacs will replace the eMac computers currently in use in computer labs district-wide. They will be used for Northwest Evaluation Association (NWEA) Measures of Academic Progress (MAP) testing next fall. The MacBooks will replace the older laptops in one computer cart at each elementary school. The older computer cart laptops will then be used to replace other failing laptops.

Apple, Inc. had initially offered the standard 7% educational discount plus 13%. On Feb. 11, the company approved a larger discount to AAPS, which translates to an amount between 15 and 25% off the list price. The new discount is reflected in the total purchase amounts.

The software upgrade that will be needed as a result of the computer purchase will be most likely be paid for with the savings that result from the use of the technology bond to purchase new copying machines.

Outcome: The board unanimously approved the purchase.

Purchases: Skyline Turf

Without any discussion, the board approved a contract to AstroTurf in the amount of $858,056 for a synthetic turf field at Skyline High School. The purchase had already been discussed in depth at the Feb. 13, 2013 meeting.

AstroTurf was the lowest bidder out of the four bids received. AstroTurf was recommended not only because it was the lowest bidder, but also because it is the only field that has an antimicrobial product applied at the factory as a standard. The district would not need to apply an antimicrobial every year, as with other field surfaces.

Outcome: The board unanimously voted to approve the purchase.

Insurance Renewal

For the past couple of months, the district’s insurance agent, The Hyland Group, has been bidding out the district’s liability insurance in anticipation of a Feb. 1, 2013 renewal. Several insurance carriers for property and casualty were contacted and responded, but the district’s best option for renewal was to stay with its current carriers. Those carriers include: Affiliated FM for buildings and property; Zurich for general liability, crime, auto; Ace for lawyers liability; and Selective for flood insurance.

The district’s final liability insurance premium will be $716,476. The renewal premium reflects an overall increase of 5.9%, which is less than current market conditions. The increase does not reflect the district’s loss history this past year, which has been favorable.

A National Flood Insurance Policy (NFIP) was purchased this year because Affiliated FM identified eight buildings located in a low hazard flood zone as locations that are “at risk.” Affiliated FM would insure those buildings only with a $5 million limit and a $1 million deductible. As this was a large deductible that could potentially put the district at financial risk, the additional NFIP from Selective Insurance was purchased to cover the gap, which would insure the buildings up to $1 million with a $1,000 deductible. The NFIP coverage goes into effect March 6, 2013 and costs an additional $30,732.

Outcome: All policies except the NFIP coverage went into effect Feb. 1, 2013 and will expire on Feb. 1, 2014. 

Pioneer Huron Football Brawl

Three Pioneer students are currently facing felony charges as a result of the brawl that occurred at the Pioneer-Huron football game in October 2012.

Pioneer Huron Football Brawl: Public Commentary

Four members of the public spoke in support of the three Pioneer students.

Ruth Zweifler likened the situation to the 1979 case of Martin Luther King Junior Elementary School Children et al. v. Ann Arbor School District, which was brought on behalf of poor black students at the school. The current situation was again focusing on the chronically underserved African American population, she maintained. She drew attention to the fact that it was three black students who are being charged – when it was the white adult coaches who “behaved deplorably.” Only those three students face the consequences, despite the fact that it was a “melée.” She asked why the district has not come forward to defend the young people in its card, saying, “The shame is ours as a community. The shame is borne by those students alone.”

Lefiest Galimore

Lefiest Galimore asked what the board was doing to assist the three young men charged. He noted that one of the students – who was 18 years old – was being charged as an adult, which meant the felony charge will stay on his record. This incident, he said, occurred only because two adults “who were supposed to be serving as role models” could not restrain themselves. He argued the school board has a responsibility to support the individuals, because schools should protect and care for their students.

Shirley Beckley, a district alum, said she did not understand how the incident moved out of the school’s jurisdiction into the court’s purview. If charges were going to be made, she asked, why not charge the whole team, including the coaches? The coaches set a bad example because they got into a shoving match, and “of course, their teams were going to come to their defense.” She said there was a community of people who were concerned about this, and they were not going to let this go: “We’re going to be peaceful;  we’re not raising hell or anything. But we’re not going to sit here and watch our young men get treated like this.” Beckley asked that Green meet with them, to determine what could be done together to help the three students. She also said she hoped the school board would do something.

Pioneer football parent Sioban Harlow spoke in favor of the young men, saying the incident was started by adult poor behavior. It was a school issue, she said, and it was handled by the school in a way that led many in the community to be satisfied with the results. Boys on both teams reached out to try to heal after the incident. The escalation of the incident to the criminal justice system has caused considerable alarm in the community, and more than 70 parents attended recent meeting about the incident. Harlow said they were at risk of creating divisions in the community and causing risk to the livelihoods of three young African American men. She called ironic the selection of “The New Jim Crow: Mass Incarceration in the Age of Colorblindness” as this year’s book for Ann Arbor Ypsilanti Reads. She declared, “We must say, ‘Not in our community. Not in Ann Arbor.’” She asked Green to meet with Washtenaw County prosecuting attorney Brian Mackie to ask him to drop the charges.

Pioneer Huron Football Brawl: Board Response

In response to the public commentary, Lightfoot said that work has continued by some of the trustees both behind the scenes and on public record. She said they continue to be concerned and vigilant. She was happy to see the community continue to follow this case because it was a “miscarriage of justice for these young men.” She committed to having conversations about the topic as trustees and as a board as a whole.

During agenda planning, Baskett made a motion to include a discussion regarding the issue on the board’s schedule.

Thomas said that while he listened to the concerns brought up with an open mind, he also had some concerns about what the district can and should prudently do – as far as getting involved with criminal proceedings. Because he wouldn’t feel comfortable having such a discussion without getting an opinion from the district’s legal counsel, he requested a brief on “any possible ramifications” of getting involved. He worried about the precedent any board involvement would set for future cases where students were charges with crimes.

Green said that she had had a preliminary conversation with Comsa to ask if there was anything the district could do. While it was not a written opinion, one of the things he said the board could do was pass a resolution. She noted that they would want him to put something in writing before actually moving on it, however.

Mexicotte said that was her general understanding, as well. The board could suggest or influence or make a proclamation. But the question trustees needed to discuss is: Does the board choose to do so?

Because they wanted to have the conversation before the first teen’s pretrial date on March 15, 2013, the board voted to place the agenda item on the March 13, 2013 meeting. Mexicotte asked Baskett with preparing a resolution beforehand, so the board would have something on which to base their conversation.

Outcome: Trustees voted to place a discussion of a resolution on the boards’s March 13, 2013 meeting in support of the students who’ve been criminally charged. Thomas and Patalan dissented.

Best Practices Incentive Resolution

In June of 2012, the Gov. Rick Snyder signed legislation under Section 22f of the State School Act that appropriates $80 million – to provide $52 per pupil allocations for the FY 2012/13 school year to school districts meeting seven of eight financial best practices. The money that’s allocated represents a portion of the year-end state school aid fund balance for 2011/12.

Because AAPS has met eight of eight of the required best practices, the district will receive a one-time incentive payment of approximately $860,000. In order to apply for the funds, the district must submit a board of education resolution that certifies the district’s compliance with the required best practices.

As it was nearing 3 a.m., the board very nearly put off the vote to certify the resolution until their next meeting. Nelson, however, said it was a “sizable amount of money” and the sooner they applied for the funds, they sooner they would get a check from the state.

Outcome: The board unanimously voted to certify the resolution.

Communication and Comment

Board meetings include a number of agenda slots when trustees can highlight issues they feel are important. Every meeting also invites public commentary on subjects not necessarily on the formal agenda or that are not covered elsewhere in The Chronicle’s meeting report.

Comm/Comm: Association and Student Reports

Five associations are invited to make regular reports to the school board: the Black Parents Student Support Group (BPSSG), the Ann Arbor Parent Advisory Committee for Special Education (AAPAC), the Parent Teacher Organization Council (PTOC), the Ann Arbor Administrators Association (AAAA), and the Ann Arbor Education Association (AAEA). The Youth Senate is also invited to speak once a month, as are representatives from each of the high schools.

At the Feb. 27, 2012 meeting, the board heard from the Youth Senate and AAPAC.

Kathy Zager-Doxey, the AAPAC representative, thanked Elaine Brown, assistant superintendent for student intervention and support services (SISS) and the SISS team for continued involvement with the AAPAC board. AAPAC, however, was dismayed that the SISS review to the board has been postponed, because this is when IEP teams are exploring options for next year [The update is scheduled for the March 13, 2103 board meeting]. AAPAC encourages the board to seek parental input before implementing any proposed changes to the special education program. Because a board certified behavior analyst (BCBA) has not yet been hired, it was suggested the district find other ways to provide behavioral support for students.

Youth Senate representative, Milan Patel, argued for maintaining the 5th grade instrumental program. He argued that the effects of losing a year of learning for music students could possibly cause a drop in quality of musicianship in Ann Arbor. If the district wanted to continue being known for its excellence in the arts, cuts to vital programs such as 5th grade instrumental must not be made.

Comm/Comm: Superintendent Evaluation Timeline

Stead urged the board to add an informal superintendent evaluation to their agenda.

After some schedule wrangling, the trustees decided to add an executive session prior to their committee of the whole (COTW) meeting on March 20. The executive session will start at 5:30 p.m., recessing at 7 p.m. for the start of the COTW meeting. If more time is needed, the board will resume the executive session after the COTW.

Lightfoot asked that the board look at the process of the evaluation. She said she was concerned about the lack of consistency and about who gets to weigh in on the evaluation.

Comm/Comm: State Board of Ed Forum

Stead invited the community to attend a panel forum featuring the State Board of Education (SBE) president, John Austin, and SBE member Eileen Weiser on March 11, 2013 from 6:00-8:00 PM at Pioneer’s Little Theater. The panel will be sharing upcoming education reform legislation initiatives and taking questions and comments from the audience.

Comm/Comm: Huron Bel Canto Choir

The Huron Bel Canto Choir, led by Bonnie Kidd, performed two songs for the trustees.

The Huron High School  Bel Conto Choir performed at the board’s meeting.

The choir is heading to Rome the first week of March. Stead called the performance “amazing” and “beautiful” and asked the girls to do the district proud.

Comm/Comm: Accolades

In her superintendent report, Green commended fine arts programs around the district. She noted the successes experienced by chess teams at Huron High and many of the elementary and middle schools. She also commented that from now until June, Reichert Heath Center at St. Joseph Mercy will be displaying artwork from district elementary students.

Finally, she thanked Robin Bailey, district fine arts coordinator, for her work done in the fine arts. So many of the examples Green cited would not happen without her, Green said.

Nelson commented on how wonderful orchestra night was. He also put in a brief plug for the “Race: Are we so different?” exhibit at the UM Museum of Natural History.

Present: President Deb Mexicotte, vice president Christine Stead, secretary Andy Thomas, treasurer Glenn Nelson, and trustees Susan Baskett, Simone Lightfoot, and Irene Patalan.

Next regular meeting: Wednesday, March 13, 2013, 7 p.m., at the downtown branch of the Ann Arbor District Library, 343 South Fifth Ave.

County commissioner Ronnie Peterson, right, talks with supporters of the Washtenaw Head Start program. (Photos by the writer.)

Although the budget calls for a net loss of 32.22 full-time-equivalent jobs, most of those positions are either already vacant or will be handled through retirements, McDaniel said. One significant retirement was recognized during the meeting: Donna Sabourin, executive director of the county’s community support & treatment services (CSTS) department, who’s worked for the county for 20 years. Commissioners awarded her a resolution of appreciation, and also gave final approval to the CSTS budget for the coming year.

But the meeting’s main focus was the proposed general fund budget, which was discussed at length and will be the topic of most board meetings and working sessions at least through November. The county budget is based on a calendar year, from Jan. 1 through Dec. 31, and is developed in two-year cycles.

Among the recommended cuts is a reduction of $1.2 million to local nonprofits and other agencies. For example, funding for the Humane Society of Huron Valley’s contract is proposed to drop from $500,000 in 2011 to $250,000 in 2012 and 2013. The Delonis Center homeless shelter’s funding could decline from $160,000 to $25,000.

The budget also calls for the county to relinquish its status as the federal “grantee” for the Head Start program in Washtenaw County, which would trigger a process to find a replacement entity. The county has administered the program for 46 years. About a dozen Head Start supporters showed up to Wednesday’s meeting, and urged commissioners to continue support for the program.

Though commissioners had several questions and comments about the 2012-2013 budget, several of them expressed even more concern for what’s on the horizon: Projected deficits of $11.6 million in 2014 and $14.7 million in 2015.

Board chair Conan Smith characterized the 2012-2013 budget as a recommendation that’s “ripe for public discussion at this point.” Everything is still on the table, he said. The board is expected to take up the topic again at its Oct. 5 meeting, and a public hearing on the budget is set for Oct. 19. The target date for approving the budget is Nov. 16.

There was no vote taken on the 2012-2013 budget directly, but the board took action on several other budget-related items. Among them, commissioners gave final approval to levy two taxes: for (1) services for indigent veterans; and (2) economic development and agriculture.

The board also passed a resolution in support of developing a regional transportation authority, after a failed attempt to postpone the vote. The resolution is a prelude to a Sept. 30 summit with Detroit and the counties of Wayne, Oakland, Macomb and St. Clair, which will focus on region transit issues.

Two issues of note did not come before the board as expected. A proposed reorganization of county administration was pulled from the agenda at the start of the meeting. It would have replaced the deputy administrator position by giving additional responsibilities to four managers, paying them annual stipends of $15,000 each. The stipends were a sticking point – during public commentary, AFSCME Local 2733 president Caryette Fenner objected to the timing of that pay, in light of recent labor concessions made by employees.

And not on the agenda was an anticipated proposal by the Washtenaw County Road Commission, which was discussed by the board at its Sept. 8 working session. The road commission is presenting a request for a countywide millage to help pay for road repair. It’s a tax that the county board could impose without seeking voter approval. The plan was subsequently submitted to the county clerk on Friday, and could be addressed at the board’s Oct. 5 meeting.

Admin Reorganization Postponed

One of the first actions of the meeting was to pull off the agenda a resolution regarding the reorganization of administrative positions proposed by Washtenaw County administrator Verna McDaniel. Details of the restructuring had been part of the board’s packet of meeting materials, including a proposal to pay annual stipends of $15,000 to each of four managers who would be taking on additional responsibilities.

The proposed changes, which could be introduced at a later date, were expected to save $120,962 and were part of a broader 2012-2013 budget proposal. The reorganization would have put the deputy county administrator’s position – which has been unfilled since the departure of Bill Reynolds earlier this year – on hold/vacant status. A new “cross lateral” team was proposed with four members: Kelly Belknap, director of finance; Greg Dill, infrastructure management director (a new position); Curtis Hedger, corporation counsel; and Diane Heidt, director of human resources and labor relations.

Greg Dill, director of administrative operations for the sheriff’s office, is likely to be appointed as the county’s infrastructure management director. He was working on his iPad before the meeting.

Dill is currently director of administrative operations for the sheriff’s office. A resolution for his new appointment – to the newly created job of infrastructure management director, with a salary of $116,75 – was also pulled from the agenda of Wednesday’s meeting. His new responsibilities would include those previously assigned to the county’s information & technology manager, a position that’s been eliminated following the departure of James McFarlane earlier this year.

According to a staff memo, the cross lateral team was intended to split the duties formerly handled by the deputy administrator. Department heads would be assigned to a team leader and report to that person for non-critical issues.

The proposal called for each team member to receive a $15,000 stipend in addition to their salaries, which would be capped at $125,000 unless a higher salary is authorized by the county board. If the combination of salary and stipend exceeded $125,000, the excess would be paid as a contribution into the employee’s deferred compensation retirement plan.

Other changes in the proposal included eliminating an administrative coordinator position, and creating a new management analyst job.

Admin Reorganization: Public Commentary

There was no discussion on the topic among commissioners, but during public commentary later in the meeting, AFSCME Local 2733 president Caryette Fenner objected to the $15,000 stipend that had been proposed. She noted that her membership and most employees had made concessions to address the projected two-year budget deficit. It wasn’t that these team leaders didn’t deserve the stipend, she said, but it wasn’t the right time for it.

2012-2013 Washtenaw County Budget

After discussing budget priorities and challenges for over a year, commissioners formally received a recommended budget for 2012-2013 at Wednesday’s meeting, which calls for a total net loss of 32.22 full-time-equivalent jobs and cuts to a range of programs and services. [.pdf of draft 2012-2013 budget]

County administrator Verna McDaniel and the county’s finance staff gave a presentation during the meeting, showing how the administration proposes to balance the budget. Previously, an estimated $17.5 million deficit had been projected for that two-year period.

The board is expected to take up the topic again at its Oct. 5 meeting, and a public hearing on the budget is set for the board’s Oct. 19 meeting.

Commissioners asked questions both at Wednesday’s meeting and during a working session the following day, on Sept. 22.

2012-2013 Washtenaw County Budget: Presentation

The proposed budget is based on a forecast in general fund revenues of $97,714,410 in 2012 and $96,937,530 in 2013 – down from $101,250,268 this year. The budget includes cutting 28.36 full-time-equivalent jobs, creating 5.5 FTEs, putting 11 FTE positions on hold/vacant status, and removing 1.64 FTEs out of hold/vacant. In addition to the 25.36 jobs that are already vacant, another 14 of the job cuts are expected to be handled mostly through retirements. Currently the county employs 1,369 people.

WEMU’s Andy Cluley interviews Washtenaw County administrator Verna McDaniel after the Sept. 21 board of commissioners meeting.

The biggest cuts are proposed to come from the sheriff’s office in positions represented by the Police Officers Association of Michigan (POAM), with a net loss of 12 jobs, and in positions represented by AFSCME 2733 Unit B, with a net loss of 10 positions.

Earlier this year, McDaniel told commissioners that she hoped to gain $8 million in labor concessions from employees. New labor contracts have now been finalized with 90% of the county’s employees, for a total of $4 million in savings both budget years from changes to compensation and benefits. The board had approved a new contract with its largest labor union – AFSCME Local 2733 – at a special meeting on Sept. 13.

The budget also reflects $4.1 million more in additional revenues from property taxes. Those tax revenues are now projected to be higher than previously estimated. The budget also identifies $8.2 million from organizational and structural changes.

The budget includes a total of $1,239,859 in cuts to funding for local nonprofits and other agencies. Examples of the most dramatic changes include funding for Humane Society of Huron Valley’s contract (from $500,000 in fiscal 2011 to $250,000 in fiscal 2012 and 2013), the Delonis Center homeless shelter (from $160,000 to $25,000), and the Safe House domestic violence shelter (from $96,000 to $48,000). [.pdf of six-page response to the proposed cuts by Tanya Hilgendorf, executive director of the Humane Society of Huron Valley. ]

Items proposed to be cut completely include $125,000 to the Southeast Michigan Council of Governments (SEMCOG), $200,000 for the county’s reserve for housing, and $110,000 for a housing contingency fund. Money for the county’s coordinated funding of human services will drop by $128,538 (from $1,015,000 to $886,462). [.pdf chart of nonprofit/agency allocations]

Looking beyond this two-year budget cycle, the report also projects deficits of $11.6 million in 2014 and $14.7 million in 2015.

During the presentation to commissioners at their Sept. 21 meeting, McDaniel, finance director Kelly Belknap and finance analyst Tina Gavalier summarized the proposed reductions and revenue sources for the coming two years. [.pdf of budget presentation highlights]

In addition to a working session on Sept. 22, other budget-related dates include:

• Oct. 6: Working session on a county building/space plan.
• Oct. 19: Public hearing on the 2012-2013 budget.
• Nov. 2: Budget update for the third quarter of 2011.
• Nov. 16: Target date for board vote on 2012-2013 budget.

2012-2013 Washtenaw County Budget:  Commissioner Discussion

Yousef Rabhi began by thanking county staff for their work in developing the budget, and thanking employees for the contract concessions they made. “People have given, and given a lot,” he said.

Leah Gunn described this budget as “the hardest budget I’ve ever worked on” during her 15-year tenure on the board, but noted that even more challenges are in the wings. If the state legislature eliminates the personal property tax, that will be another major hit to the revenues of local governments, she said. Gunn urged people to contact their legislators in Lansing and beg them not to repeal the tax, “or we lose government services.”

Wes Prater first asked for more details on the 80% in budget reductions that McDaniel had categorized as structural – she said she’d get that information to the board.

Prater then turned to the projections for 2014-2015, when deficits of $11.6 million and $14.7 million, respectively, are expected. Why are expenditures projected to increase? Revenue estimates are much lower, he noted – falling 8.21% in 2014 to $88.975 million, and staying flat the following year. Why aren’t expenditures in line with that? The staff needs to look at revenue realistically, he said, then prepare a budget that’s based on those realistic revenue estimates.

McDaniel said that as they get closer to those years, they’ll have a better handle on projections and will make revisions. She acknowledged that it was disheartening to see additional projected deficits, but said the staff would be remiss if they didn’t point it out. The county will work to bring expenditures in line with revenues for those years, she said – they are required to present a balanced budget.

Prater complained that originally, the administration had projected a $20 million deficit for 2012-2013. Then in the spring, that deficit had been revised to $17.5 million. But revenues are only down $1.7 million from 2011, he said.

Kelly Belknap, the county’s finance director, explained that the projected deficit was based on anticipated expenses and revenues. It wasn’t comparing 2012 to 2011, she said. McDaniel added that the county would “be in a pickle” if they made rosy projections. She assured Prater that the staff wasn’t playing games to make things look worse. It’s difficult to make projections, she said, and she acknowledged that revenues for the current year showed less of a decline than anticipated. But she indicated that it’s better to be prepared for a steeper decline than to suddenly be faced with a crisis, if projections turn out to be overly optimistic.

Prater replied that in the past couple of years, projections have missed the mark so much, that some people think county officials don’t know what they’re doing.

From left: Commissioners Rob Turner, Yousef Rabhi and Dan Smith.

Dan Smith observed that it seemed the county was jumping from one emergency now to another in 2014-2015. He asked the staff to explain why revenues are expected to decline, and where some of the expenditure increases are coming from. Expenses are projected to rise from $96.93 million in 2013 to $103.72 million in 2015.

Tina Gavalier, the county’s finance analyst, confirmed for Smith that most of the revenue declines reflect an anticipated drop in property tax revenues and a loss of state revenue sharing. Current union contracts run through 2013, she noted, so the projected expenses assume that concessions made for the coming two years will end. That means step increases, longevity pay and other aspects of the previous contract will resume, unless labor unions agree to additional concessions. Gavalier also noted that health care costs are projected to increase 12%.

Gavalier also pointed out that earlier this year, the staff had projected deficits of $27.7 million in 2014 and $34.3 million in 2015. Since then, based in part on updated estimates of property tax revenues, those deficits are now projected to be lower.

Conan Smith took issue with Prater’s characterization that previous revenue projections had been way off. In fact, Smith said, the projections were fairly accurate – off by less than 1% in 2010 and by about 1.5% this year. On the revenue side, the board needs to project worst-case scenarios, he said. For expenses, they assume the status quo from the previous budget cycle as a starting point. Of course expenditures will be adjusted, he said – the county is legally obligated to present a balanced budget.

Alicia Ping asked a series of questions also related to how the projections are made, wondering why the previously projected $17.5 million deficit was no longer reflected in the 2012-2013 budget. Belknap clarified for Ping that the deficits are based on projected expenses if the county takes no action. Conan Smith added that the budget that’s now presented to the board reflects adjustments they’ve made – including labor concessions, for example – that helped them overcome that deficit and align expenses with revenues. You don’t see the $17.5 million deficit because the county has taken action to address it, he said.

Barbara Bergman thanked the unions and other employees for their sacrifices, and said that at a later date the board needs to talk about making a sacrifice, too. She didn’t want to make commissioners’ salaries so low that people couldn’t afford to serve, she said, but they needed to talk about adjustments.

Rob Turner noted that the daunting task before them is the 2014-2015 budget, with a two-year $26 million deficit. Given that they’ve just made serious cuts in the current budget cycle, cutting another $26 million “is just a scary thought,” he said. Turner agreed with Bergman that they needed to look at the line items for commissioners too. They can’t just sit back and hope that property taxes will increase – they need to look ahead.

Ronnie Peterson observed that public employees are “taking it in the neck,” and that people often point to those employees as being responsible for the deficit. But employees are responsible for coming to work and doing their jobs, he said – it’s the responsibility of the board to manage the budget and protect the future of local government, so that employees can feel secure. He clarified with McDaniel that additional board meetings and working sessions will focus on specific aspects of the 2012-2013 budget.

Peterson said it felt like the county was just putting a finger in the dike. Some commissioners had courage, while others didn’t, he said. Commissioners should lead the way, but everyone needed to sacrifice – and he didn’t see that that was happening.

Rolland Sizemore Jr. said he wanted to look at the issue of part-time employees. He also noted that not all of the departments led by other elected officials were getting budget cuts. [Those elected officials are the prosecuting attorney Brian Mackie; water resources commissioner Janis Bobrin; county treasurer Catherine McClary; clerk/register of deeds Larry Kestenbaum; and sheriff Jerry Clayton.]

McDaniel replied that in developing the budget, finance and administrative staff looked at a variety of factors, including cuts taken by departments in previous years, and budgets in comparable departments. The budget didn’t make broad, across-the-board cuts, she said, but rather reflected strategic decisions.

Proposed general fund budgets for departments led by other elected officials are:

Office       2011      2012     2013

Pros Atty   $5.44M    $5.88M   $5.94M

Water Res   $2.59M    $2.46M   $2.54M

Treas       $1.31M    $1.51M   $1.55M

Clerk       $2.36M    $2.64M   $2.53M

Sheriff    $40.89M   $43.41M  $44.92M

-

The sheriff also oversees the budget for emergency services, which is budgeted for $2.77 million in 2011, $2.53 million in 2012, and $2.63 million in 2013.

Returning to the overall budget, Conan Smith elicited from McDaniel that budget increases for certain departments reflect higher cost allocation plan (CAP) payments that these departments are being asked to make. The CAP is an amount charged to each department for items like the county attorney and administration.

Yousef Rabhi clarified with McDaniel that nearly all of the positions being eliminated were already vacant or were planned retirements. McDaniel said there may be one “bump,” but that doesn’t mean the person will hit the streets. The administration is working hard to find another assignment for that person, she said.

Rob Turner noted that the county’s “rainy day” fund – its general fund reserves – would be decreasing in the coming years. It’s important to remember to maintain it in case the state does something drastic that would affect the budget, he said. At the same time, it’s important to note that the county isn’t keeping a fat balance, he said.

Mention of the state prompted Ping to comment on the personal property tax (PPT) issue. She noted that Gunn had mentioned it earlier in the meeting, adding that everyone is shocked that the proposal seems to have legs. Although it seems like the momentum is now behind reducing the tax, not eliminating it, there’s no revenue replacement plan being put forward, Ping said, and that’s wrong. “Again, Lansing needs to be minding their own business,” she said. Ping asked staff to provide information about how eliminating the PPT would affect the county’s revenues.

Prater returned to the issue of revenue projections, and noted that the county’s equalization staff “really missed the mark” in projecting the decline of property tax revenue for 2011. The 2011 budget had been built on the assumption of an 8.5% drop in property tax revenues, but in fact revenues fell only 2.85%. [See Chronicle coverage: "Washtenaw County's Taxable Value Falls"]

Gunn commented that for decades, property tax revenues did nothing but increase. Then revenues plunged, and the county has had to deal with it, she said. Predicting it is almost impossible, she added, and the equalization report for the year doesn’t get completed until April – four months into the fiscal year. Given those constraints, it’s always better to be conservative in projecting revenues, she concluded.

McDaniel noted that the board had agreed to build the budget based on worst-case scenarios. Otherwise, they might be faced with sudden, unanticipated cuts, she said.

Outcome: The board voted unanimously to move the budget agenda item to its Oct. 5 meeting. No initial vote was taken on the 2012-2013 budget itself .

After the vote, Peterson asked about a building space plan that McDaniel is preparing, which will be presented at the Oct. 6 working session and is likely to include recommendations about what to do with certain county facilities that might be sold. Was that plan factored into the budget? McDaniel responded that it’s not part of the budget, because commissioners would need to provide direction to staff about how to proceed. It’s more related to future planning than to the 2012-2013 budget, she said.

2012-2013 Washtenaw County Budget: Public Commentary – General

Caryette Fenner, president of AFSCME Local 2733, expressed concern that information about retirements had been made public before the union leadership was informed. She hadn’t heard about it previously.

Following up to her commentary, Yousef Rabhi said he’d like to see better communication between the unions and county administration. He hoped that the proposed cross lateral managers would help facilitate communication with union leaders and employees.

2012-2013 Washtenaw County Budget: Head Start

During public commentary after the budget discussion, Shirley Beckley told commissioners she is the parent and grandparent of children who had benefited from Washtenaw Head Start. She wondered what the status of the program was, in layman’s terms – had it been cut from the budget, or had the board reconsidered that decision?

Public commentary is typically a formal process, with speakers alloted a set amount of time – three minutes at Ways & Means Committee meetings, or five minutes at regular board meetings. After all public commenters have spoken, commissioners have the opportunity to respond, if they choose.

However, during this public commentary on Head Start there was considerable – and uncharacteristic – back-and-forth.

By way of additional background, the board held a working session on July 21, 2011 devoted to the future of Washtenaw Head Start. From that report:

The presentation stressed that Head Start – which serves over 500 preschool children of low-income families in the county – would not be eliminated. Rather, the county would relinquish its status as the program’s federal “grantee,” triggering a process to find a replacement entity. Federal Head Start officials would be responsible for selecting another agency to take over from the county.

The county currently spends about $900,000 each year in support of Head Start, which has a local budget of $4.8 million – the bulk of its funding comes from federal sources. In addition, the county owes $2.68 million in bond payments related to an Ypsilanti facility it built for Head Start in 2002-03.

Seven of the board’s 11 commissioners attended the working session, and several expressed support for exploring the transition. They praised the program, which has been recognized nationally for its performance, but noted that education isn’t part of the county’s core mission. Some suggested that an organization like the Washtenaw Intermediate School District would be a better fit to administer the program.

At Wednesday’s meeting, county administrator Verna McDaniel told Beckley that there’s still time to discuss budget decisions, and that meetings of the board are open to the public, with opportunities for public commentary. Beckley replied that she didn’t think the county understood the impact of its decision to cut funding for the program. She hoped that they could come to some kind of understanding with Head Start, rather than cutting it. She wondered if Head Start were cut from the county, would it get a new name?

McDaniel said she couldn’t answer that question. The federal government would take responsibility for finding a new agency to sponsor it, if the county decided not to host the program.

Beckley indicated that she was confused about the process. Commissioner Rolland Sizemore Jr. replied “sometimes we are, too.”

The next speaker was Caryette Fenner, president of AFSCME Local 2733. Among her budget-related concerns, Fenner said she thought that the executive director of Washtenaw Head Start – Pat Horne McGee – would be returning to the board to propose budget cuts that would still allow the county to retain the program. She hoped the board would take another look at Head Start and see if there was any way to help.

Sizemore characterized Head Start as a great program – a comment that elicited applause from supporters in the audience. He said the county has to look at all its options, and that there’s the possibility of another provider taking over the program.

Conan Smith noted that the board will hold a public hearing on the 2012-2013 budget at its Oct. 19 meeting. That’s a great opportunity to talk about it, he said. Public commentary also could be made at any of the board’s other meetings, he said, including upcoming working sessions devoted to the budget. Or people could talk to commissioners directly, he noted.

Everything is still on the table, Conan Smith said. The board has a budget that’s recommended by the county administration, he added, and ”that is ripe for public discussion at this point.”

Ronnie Peterson, who had spoken at length during the July working session about his support of Head Start, reiterated his support for the program. It seems to the public that the county has already decided to cut ties with Head Start, he said, but he hoped that commissioners hadn’t made up their minds. There are a lot of other things that the county subsidizes, he said, and he wanted to talk about those, too.

Peterson said he planned to work on the issue of Head Start, as well as funding for outside agencies. The board didn’t have to adopt the budget until the end of the year, he said, and commissioners need to have a proper discussion about it. He indicated his belief that Head Start should stay with the county – and received applause from the audience.

Act 88, Veterans Relief Millages

Several other items on the agenda also related to the 2012-2013 budget. Commissioners were asked to take a final vote to approve levying two taxes in December 2011: (1) 0.05 mills for support of economic development and agriculture; and (2) 0.025 mills to pay for services for indigent veterans. Because the Michigan statutes that authorize these millages predate the state’s Headlee Amendment, they can be approved by the board without a voter referendum. Initial approval and public hearings on these millages occurred at the board’s Sept. 7 meeting.

The indigent veterans millage will cost homeowners about $2.50 for every $100,000 of a home’s taxable value. It’s expected to raise $344,486 – about $11,000 less than in 2010, due to projected decreases of property values. The county first began levying this millage in 2008. Services are administered through the county’s department of veterans affairs.

Outcome: Commissioners approved the resolution to levy the millage for indigent veterans services, with dissent from Alicia Ping (R-District 3). Kristin Judge (D-District 7) was absent.

The millage for economic development and agriculture – authorized under the state’s Act 88 – will cost homeowners $5 for each $100,000 of their home’s taxable value. It was also given initial approval at the board’s Sept. 7 meeting, with dissent from Alicia Ping, Wes Prater and Dan Smith. Nine people spoke during public commentary at that meeting, all supportive of the tax – including several people from organizations that will be funded from it.

The anticipated $688,913 in millage proceeds will be allocated to several local entities: Ann Arbor SPARK ($230,000), SPARK East ($50,000), the county’s dept. of community & economic development ($131,149), Eastern Leaders Group ($100,000), promotion of heritage tourism ($65,264), Food System Economic Partnership (FSEP – $15,000), Washtenaw 4-H ($82,500) and Washtenaw County 4-H Youth Show ($15,000).

On Sept. 21, Dan Smith said he would again be voting against the Act 88 millage, as he had on the initial Sept. 7 vote. He read from the 1978 Headlee Amendment ballot language, which was passed by voters and amended the state constitution. The ballot language stated, in part, that the amendment would “prohibit local government from adding new or increasing existing taxes without voter approval.”

Act 88: Public Commentary

As she had at the board’s Sept. 7 meeting, on Sept. 21 Jennifer Fike – executive director of the Food System Economic Partnership (FSEP) – thanked commissioners for their past support of FSEP, and encouraged them to approve the millage again. FSEP leverages the funds it receives from the millage to attract and support food businesses in this region, she said, and she provided several examples of that.

After her commentary, board chair Conan Smith noted that Fike is also a member of the Michigan Commission of Agriculture and Rural Development.

Outcome: The Act 88 millage was approved on a 7-to-3 vote, with dissent from Alicia Ping (R-District 3), Wes Prater (D-District 4), and Dan Smith (R-District 2). Kristin Judge (D-District 7) was absent.

Support of Regional Transit

At the Sept. 7 meeting, board chair Conan Smith had indicated he would be bringing forward a resolution in support of a regional transportation authority for southeast Michigan. That resolution was on the Sept. 21 agenda.

The context for the resolution is a Sept. 30 southeast Michigan regional summit that Washtenaw County has been invited to participate in for the first time. In past years, the summit included Detroit and the counties of Wayne, Oakland and Macomb. This year, Washtenaw and St. Clair counties will be included, and the topics will focus on regional cooperation and transportation. Smith and Kristin Judge have been participating in the planning stages on Washtenaw County’s behalf.

The resolution cites the benefits and goals of regional transportation, including transit options along the Ann Arbor to Detroit corridor, and connections to Detroit Metro and Willow Run airports. It notes that state Sen. Rebekah Warren (D-Ann Arbor) – who is married to Conan Smith – has introduced legislation as part of a bipartisan package to create a regional transportation authority.

The main resolved clause of the Washtenaw County resolution states:

Be It Therefore Resolved that the Washtenaw County Board of Commissioners supports the creation of a new Regional Transportation Authority to enhance interconnectivity among the communities of the southeast Michigan region and urges the participants in the 2011 Southeast Michigan Regional Summit to aggressively pursue work that meets the above outlined goals.

Support of Regional Transit: Commissioner Discussion

Leah Gunn moved to table a vote on the resolution, saying she had a lot of questions about it and it needed a complete discussion. For one, she wanted to know what the Ann Arbor Transportation Authority thought about it. [AATA is leading an effort to develop a countywide transit authority.]

Outcome on motion to table: The motion failed on a 5-5 vote, with support from Leah Gunn (D-District 9), Barbara Bergman (D-District 8), Ronnie Peterson (D-District 6), Alicia Ping (R-District 3) and Wes Prater (D-District 4). Kristin Judge (D-District 7) was absent.

Ronnie Peterson asked Conan Smith to provide more details about the resolution. Smith reviewed that for the past decade, leaders of the counties of Wayne, Oakland and Macomb, and the city of Detroit had been meeting to discuss issues common to that region. This year, Washtenaw and St. Clair counties were also invited, he said, and the focus will be on regional transportation. Each county was asked to bring a resolution of support on that issue. This resolution acknowledges that Washtenaw County supports having a conversation about creating a regional transportation authority, he said.

Barbara Bergman noted that there wasn’t mention of a budget for this in the resolution. In the past, she said, some issues have ended up consuming considerable staff time, and she didn’t want that to be the case. Bergman said she’d consider supporting the resolution if it were amended to indicate there would be no money budgeted for the effort at this point.

C. Smith said he had no intention of spending money on it. He asked if anyone objected to adding Bergman’s suggestion as a friendly amendment – there were no objections.

Peterson clarified with C. Smith that they weren’t joining a consortium at this point, but rather simply supporting the idea of discussing it.

Rolland Sizemore Jr. said he was tired of reading articles in the Detroit papers that don’t mention Washtenaw County. He viewed this as an opportunity to advertise the county while working with other communities, something he said he keeps “harping about.”

Outcome: As part of the consent agenda, the resolution was approved unanimously.

Bonds for Western Washtenaw Recycling

Commissioners were asked to give final approval to authorize issuance of $2.7 million in bonds, backed by the county’s full faith and credit, to help pay for a $3.2 million facility operated by the Western Washtenaw Recycling Authority (WWRA).

The WWRA plans to use $500,000 from its reserves to fund part of the project. The $2.7 million in bonds would be repaid through special assessments on households in participating WWRA communities – the city of Chelsea, Dexter Township, Lima Township, Lyndon Township, and Manchester Township. Bridgewater Township is participating in the WWRA, but will not help fund the new facility. The village of Manchester and Sylvan Township have withdrawn from the WWRA.

County commissioners had been briefed on the proposal at their July 7, 2011 working session. Since then, the WWRA board has approved adding a county commissioner to their board. Rob Turner – a Republican representing District 1, which covers large portions of western Washtenaw – will serve in that role.

Outcome: Commissioners unanimously gave final approval to authorize bonds for the WWRA facility.

Accommodation Tax Contract Amended

A contract amendment regarding the distribution of the county’s accommodations tax was on the agenda for final approval by the board.

The county collects a 5% excise tax from hotels, motels, and bed & breakfasts, which is then distributed to the Ann Arbor and Ypsilanti convention & visitors bureaus and used to promote tourism and convention business. The contract calls for the county to retain 10% of that tax to defray the cost of collection and enforcement. (Until 2009, the county had only retained 5% for this purpose.) The remaining funds are split, with 75% going to the Ann Arbor Convention & Visitors Bureau, and 25% going to the Ypsilanti Convention & Visitors Bureau.

The contract amendment addresses the process for distributing excess funds that might accumulate from the county’s 10%, if that amount exceeds the expenses required to administer and enforce compliance with the tax. Beginning in May 2013, the county will continue to retain 10% of the tax proceeds, plus 10% of any remaining fund balance. If additional funds accumulate in the fund balance, they are to be returned proportionally to the two convention & visitors bureaus – 75% to Ann Arbor, and 25% to Ypsilanti.

Outcome: The board unanimously gave final approval to the accommodation tax contract amendment.

CUB Contracts Suspended

At their Sept. 21 meeting, commissioners were asked to give final approval 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.

CUB agreements are negotiated between local trade unions and contractors, and require that contractors who sign the agreement abide by terms of collective bargaining agreements for the duration of the construction project. In return, the trade unions agree that they will not strike, engage in work slow-downs, set up separate work entrances at the job site or take any other adverse action against the contractor.

However, 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.

The law is being challenged in federal court by the Michigan Building and Construction Trades Council, AFL-CIO and the Genesee, Lapeer, Shiawassee Building and Construction Trades Council, AFL-CIO. They are seeking to rule the law invalid, alleging that it is pre-empted by the supremacy clause of the U.S. Constitution and the National Labor Relations Act.

At the board’s Sept. 7 meeting, when commissioners took initial action on this issue, Yousef Rabhi had proposed two amendments to the resolution: (1) to assert the effectiveness of CUB agreements in ensuring a fair and cooperative workplace; and (2) to affirm that the county would reinstate CUB agreements when it becomes possible to do so. Those amendments had been approved on an 8-2 vote, with dissent from Dan Smith and Alicia Ping.

On Sept. 21, Dan Smith said he still opposed the way that the resolution had been modified – he had objected to the second amendment, which he believed inappropriately commented on the value of CUB agreements. However, he said the No. 1 priority is to look out for taxpayer dollars and to prevent the county from being sued, so he would be supporting the resolution.

Outcome: Commissioners voted unanimously to suspend the county’s use of CUB agreements.

Public Health Budget

On the agenda was a resolution giving final approval to the county’s 2011-2012 public health budget, which includes elimination of a net of nearly seven full-time positions.

The $11,839,496 budget includes a $3,553,575 allocation from the county’s general fund – a net decrease of $583,597 from the previous year. Unlike the county’s general fund budget, which is aligned to the calendar year, the public health budget runs from Oct. 1 through Sept. 30, in sync with the state’s fiscal year.

Though a total of nearly 12 full-time-equivalent positions (a combination of part-time and full-time jobs) will be eliminated in the proposed budget, five positions will be created or reclassified, for a net loss of nearly seven FTEs.

The budget also calls for a raft of new fees and fee increases. Effective Jan. 1, 2012, new fees will be required for a change of restaurant ownership ($250), a temporary food license late fee ($60), a time-of-sale authorization extension fee ($50), and a pollution prevention late reporting fee ($25).

A sampling of the fee increases includes a septic tank only permit (from $52 to $100), a new-build well permit (from $187 to $250), and a swimming pool inspection (from $56 to $150). Cremation permit fees will be increased from $40 to $50.

Outcome: Without discussion, commissioners voted unanimously to give final approval to the county’s public health budget.

CSTS Budget, Director Retires

A resolution for final approval of the 2011-2012 budget for Washtenaw County’s community support & treatment services (CSTS) department was on the Sept. 21 agenda. The budget includes a net loss of five full-time-equivalent (FTE) positions.

The proposed $26,838,557 CSTS budget calls for eliminating seven FTEs and putting one position on hold/vacant status, but creating three new FTE positions, for a net loss of five FTEs. In addition, 19 FTE positions will be reclassified. Though CSTS is a county department employing about 300 people, it receives 98.8% of its funding from the Washtenaw Community Health Organization, a partnership between the county and the University of Michigan Health System. Commissioners were briefed on a reorganization of the WCHO at a July 7, 2011 working session. The changes are aimed at limiting the county’s financial liabilities.

The WCHO is an entity that receives state and federal funding to provide services for people with serious mental illness, developmental disabilities and substance abuse disorders. At this point, WCHO “leases” its employees from the county, and contracts for services through CSTS.

The CSTS budget runs from Oct. 1 through Sept. 30, in sync with the state’s fiscal year. The county operates on a calendar year cycle.

Outcome: Without discussion, commissioners unanimously supported the resolution giving final approval to the CTST budget.

Donna Sabourin, executive director of the county’s community support & treatment services (CSTS) department, who’s retiring after working for the county for 20 years.

CSTS executive director Donna Sabourin, who is retiring after working for the county for 20 years, was acknowledged at the Sept. 21 meeting. She’s been executive director of CSTS since 2002. The board approved a resolution of appreciation in her honor. [.pdf of resolution of appreciation] Commissioner Barbara Bergman said it was a sad pleasure to present the resolution, noting that she and Sabourin had worked closely together for many years.

Sabourin spoke briefly, saying there’s never been a day when she hasn’t felt proud to be a county employee. She thanked the board for their continued commitment to the services provided by CSTS. Even the hardest decisions that commissioners had made were done with compassion and concern, she said. Sabourin also thanked CSTS employees, and wished them well as they meet the challenges of the coming years. She said she felt tremendous gratitude for her time with the county.

Sabourin told The Chronicle that after her retirement, she plans to work managing vendors at the Town Peddler Craft & Antique Mall in Livonia.

Insurance Providers Selected

Commissioners were asked to accept proposed quotes for insurance coverage in seven areas, totaling $1,021,275 in premiums.

The Arthur J. Gallagher Insurance Agency has proposed obtaining coverage from several providers for the areas of: (1) property coverage, including boiler and machinery – Chubb Insurance Co.; (2) general liability, law enforcement liability, public officials liability, and auto liability – Genesis Insurance Co.; (3) crime – Great American Insurance Co.; (4) fiduciary liability – Chubb Insurance Co.; (5) lawyers professional liability – Underwriters at Lloyd’s London; (6) judicial liability – Underwriters at Lloyd’s London; and (7) medical professional – Hudson Insurance Co.

Outcome: The board voted unanimously to accept the proposed insurance quotes.

Appointments

In an item added late to the agenda, board chair Conan Smith moved two sets of appointments:

• Republican Melody Gable and Democrat Ulla Roth to the county board of canvassers, both for four-year terms starting Nov. 1, 2011.
• Republican Barbara Johnson and Democrats Rachel Bendit and Rose Toth to the county jury board. Johnson’s term expires April 30, 2017. Terms for Bendit and Toth also expire April 30, but in 2014 and 2015, respectively.

Outcome: Without discussion, commissioners unanimously approved the appointments.

Misc. Public Commentary

In addition to the speakers reported above, Thomas Partridge spoke at three of the four opportunities for public commentary during the evening. Saying he advocated for those who were affected by decreased services, Partridge urged commissioners to develop a plan to raise revenues by seeking grants, working to expand the number of entertainment venues in the county, and asking the wealthiest individuals and businesses in the county – including football and basketball fans – to contribute. Eight of the board’s 11 commissioners are Democrats, he noted, but no one had put forward a plan to raise revenues. He called on the board to pass a resolution asking employers locally, in the state and nationwide to hire more workers here, rather than expanding in places like China and India.

Partridge also urged commissioners to fund co-ops that would providing living spaces and employment for people in need, and he argued that a countywide drug policy is needed to combat increased property crimes and robberies caused by people using illegal drugs, including marijuana. None of the law enforcement agencies are handling this, he said, not even the sheriff’s office.

Partridge also criticized Barbara Bergman and Leah Gunn – two of the four commissioners who represent Ann Arbor district – calling them puppets of mayor John Hieftje.

Both of the other two Ann Arbor commissioners responded, somewhat indirectly, to Partridge’s final comments. Yousef Rabhi said he’d recently been interviewed by the Ann Arbor Observer for an article that the publication is doing on Bergman and Gunn. Both have announced plans not to seek re-election in 2012. He said he’d been skeptical when he came on the board – Rabhi was first elected in November 2010 – but they are phenomenal commissioners and strong supporters of human services.

Conan Smith joked that Bergman and Gunn are more like the mayor’s marionettes.

Present: Barbara Levin Bergman, Leah Gunn, Ronnie Peterson, Alicia Ping, Wes Prater, Yousef Rabhi, Rolland Sizemore Jr., Dan Smith, Conan Smith, and Rob Turner.

Absent: Kristin Judge.

Next regular board meeting: Wednesday, Oct. 5, 2011 at 6:30 p.m. at the county administration building, 220 N. Main St. in Ann Arbor. The Ways & Means Committee meets first, followed immediately by the regular board meeting. [confirm date] (Though the agenda states that the regular board meeting begins at 6:45 p.m., it usually starts much later – times vary depending on what’s on the agenda.) Public comment sessions are held at the beginning and end of each meeting.

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AATA's CEO Michael Ford presents an overview of the transit master plan to members of a financial group that will be making recommendations on funding options for countywide transportation. (Photos by the writer.)

The AATA fiscal year runs from Oct. 1 through Sept. 30. The budget approved by the board calls for expenses of $30,410,616 against only $29,418,995 in revenues, for a deficit in the coming year of $991,621. At the meeting, members stressed that the nearly $1 million deficit was due to one-time expenses associated with the planned transition to a countywide service. They also stressed that even by using unrestricted reserves over the next year to cover the planned deficit, the AATA would still be left with more than three months’ worth of operating expenses in its reserve.

Incurring a deficit this year was characterized as a way to “catapult” the organization forward, allowing it to pursue an aggressive work plan for the coming year, which was also approved at the meeting. Highlights of that work plan include reconstruction of the Blake Transit Center in downtown Ann Arbor. Design for the station is expected to be complete by the end of the year, with construction to start in spring 2012.

In terms of increased service, next year’s work plan includes a focus on: establishing the AATA as a vanpool service provider; establishing service to the Detroit Metro Airport; improving work-transportation connections between Ann Arbor and Ypsilanti; and continuing work on commuter rail. Also related to enhanced services, the AATA is also holding rider forums in October to get feedback on proposed increased service on Route #4, between Ann Arbor and Ypsilanti.

Related specifically to commuter rail, the board received an update at the meeting on the Washtenaw Livingston Line (WALLY) project, a proposed north-south commuter rail connection between Howell and Ann Arbor. The board expressed some caution about the project by passing a resolution that requires the board’s explicit approval for the expenditure of the $50,000 in next year’s budget allocated for station designs.

In other business, the board approved the selection of Plante & Moran as its new auditor. A new auditor rotation policy put in place by the board earlier this year made the previous auditor, Rehmann Robson, ineligible for the contract. The AATA board also approved a contract with an outside vendor to begin offering vanpool service.

In business that could be described as housekeeping, the board opted to keep its same slate of officers for the coming year and to keep the same meeting schedule – the third Thursday of the month. Jesse Bernstein was elected chair last year, and will continue in that role.

Also at the meeting, other members of the financial review group were announced. That group will be analyzing funding options for an expansion to countywide service. Previously, it had been announced that McKinley CEO Albert Berriz and former Washtenaw County administrator Bob Guenzel would co-chair the group. Their first meeting was Friday, Sept. 16, the day after the AATA board met. Berriz stated at that first meeting that the group will meet three more times, and will produce a white paper by the end of this year.

Related to that countywide effort, the initial board for an unincorporated transit authority – a precursor to an eventual formal authority – could be seated by Oct. 20, the date of the AATA board’s next meeting. It would include representatives from Ann Arbor, Ypsilanti, and other districts throughout the county.

AATA Work Plan

Highlights of the 10-page work plan for fiscal 2012 include reconstruction of the Blake Transit Center (BTC) in downtown Ann Arbor. During his report to board members, CEO Michael Ford said the acquisition of a six-foot-wide piece of land on the southwest border of AATA’s BTC parcel would be on the city council’s agenda for Sept. 19. (At that meeting, the council approved the AATA’s purchase of the land for $90,000, which will facilitate reconstruction of the BTC starting in the spring of 2012.)

In terms of increased service, the work plan includes a focus on: establishing the AATA as a vanpool service provider; establishing service to the Detroit Metro Airport; improving work-transportation connections between Ann Arbor and Ypsilanti; and continuing work on commuter rail.

Related to Detroit Metro service, Ford told the board that work on getting airport service in place had continued and that in the last three weeks he’d worked with Wayne County Economic Development Growth Engine (EDGE) on the issue. He said follow-up work was being done on the definition of public transportation as it relates to airport service. [Detroit Metro Airport charges access fees to private transportation operators.] Ford said the AATA would try to select a private-public partnership soon – in November.

Related to improvement of work-transportation service between Ypsilanti and Ann Arbor, on Dec. 1, 2010, the Ann Arbor Downtown Development Authority offered a challenge grant of $14,417 to support that kind of service improvement. A description of the grant from The Chronicle’s meeting report:

Before the DDA board was a resolution that would offer a $14,417 challenge grant to fund service improvements for the Ann Arbor Transportation Authority Route #4 bus, which runs between Ypsilanti and Ann Arbor. The dollar figure for the grant is based on a total estimated price tag for the improvements of $180,000 and a Washtenaw Area Transportation Study (WATS) computer model, which estimates about 8% of riders on the #4 bus have destinations west of State Street in the DDA district.

Before the Sept. 15 board meeting, the AATA held a rider forum on the proposed service enhancements to the Route #4 bus service. It was attended by around a dozen people. Additional drop-in sessions with AATA staff on Route #4 service improvements include:

• Thursday, Oct. 6, 5-7 p.m. at Glencoe Hills Apartments clubhouse, 2201 Glencoe Hills Drive, Pittsfield Township.
• Tuesday, Oct. 11, 9-11 a.m. at University Hospital, 1500 East Medical Center Drive, Ann Arbor. Classroom #2C108, across from the gift shop and cashier’s office.
• Tuesday, Oct. 11, 1-3 p.m. at Michigan Union, 530 S. State St., Wolverine Room AB, Ann Arbor.
• Wednesday, Oct. 12, 9:30-11:30 a.m. at Dom Bakeries, 1305 Washtenaw Ave., Ypsilanti.
• Tuesday, Oct. 18, 5-7 p.m. at Ann Arbor District Library, 343 S. Fifth Ave., Ann Arbor.

More information about the proposed changes is available online, along with details about how to give input.

The 2012 work plan also calls for continued work on AATA’s information technology, including its website as a communication tool, and improved point-of-sale systems to allow people to pay for their fares. [.pdf of work AATA 2012 work plan]

2012 Work Plan: Board Deliberations

As part of his report from the planning and development committee, Rich Robben reviewed next year’s work plan, calling it “very aggressive.” He described how it includes development of countywide networks and improvements to current service.

Service improvements highlighted by Robben included: adding service between Ann Arbor and the Detroit Metro airport; adding vanpool services; improving service between Ann Arbor and Ypsilanti; upgrading the AATA website; expanding the bus storage facility at the South Industrial headquarters; expanding night ride service to Ypsilanti; and reconstruction of the Blake Transit Center.

During deliberations, Anya Dale characterized the work plan as challenging, but said she thought the AATA can accomplish it. Roger Kerson gave credit to AATA staff for being able to accomplish the goals in this year’s work plan.

Board chair Jessie Bernstein called it an active, committed, dedicated past year on the part of the AATA, saying that there’s another active plan for next year.

Outcome: The board voted unanimously to approve its FY 2012 work plan.

AATA 2012 Budget

The board considered a resolution to approve its operating budget for the 2012 fiscal year, which runs from Oct. 1 through Sept. 30.

The budget calls for expenses of $30,410,616 against only $29,418,995 in revenues, for a deficit in the coming year of $991,621. That shortfall will be made up by drawing on the fund balance. According to the budget resolution, the AATA’s fund balance policy requires it to maintain reserves equal to at least three months’ worth of operating expenses. And the AATA expects to have $1.2 million more in its fund reserve to start the year than the minimum fund balance policy requires.

So the projected deficit – which the budget resolution attributes partly to one-time expenses associated with the transit master plan – is within the $1.2 million excess beyond the minimum three-month reserve, which the AATA holds in its fund balance. [.pdf of AATA 2012 operating budget]

In the most significant categories, the AATA’s revenues break down percentage-wise as follows: 31.4% local transit tax; 29.4% state operating assistance; 18.6% passenger fares; 12.8% federal operating assistance. The AATA also receives some revenue from surrounding municipalities that get transit service through purchase of service (POS) agreements. [2012 AATA revenue pie chart]

In the most significant expense categories, the AATA’s expenses break down percentage-wise as follows: 54.7% employee compensation; 18.2% purchased transportation from other providers; 9.3% other purchased services; 5.7% diesel fuel and gasoline. [2012 AATA expenses pie chart]

2012 Operating Budget: Board Deliberations

Reporting out from the planning and development committee earlier in the meeting, Rich Robben ticked through the figures from the 2012 operating budget. He said the budget will maintain and improve service, and will support the work plan and the transit master plan (TMP).

He acknowledged the roughly $1 million deficit, and described it as stemming from some one-time costs with development of the TMP, such as an improvement program for each district of the county, plus the governance structure. The deficit would be funded from unrestricted net assets, he explained. Even though unrestricted assets will be used, the AATA will still have 3.1 months of operating expenses in reserve after those assets are used in the course of the year, he said. By board policy, the AATA must maintain a reserve of at least 3 months of operating reserves.

Robben led off deliberations by saying it’s not a sustainable budget. But he said it would catapult the AATA towards a transition to countywide service. It’s aggressive, he said, but not taken lightly that the AATA would operate at a deficit. It’s also not AATA’s responsibility to build bank accounts, he said, so it’s appropriate to use the funds for this type of purpose.

CEO Michael Ford (right) talks with AATA board members Rich Robben and Anya Dale after the Sept. 15 meeting.

Anya Dale noted that many of the expenses that are causing the deficit are one-time costs. Now is the time, she said.

Roger Kerson said the budget reveals AATA’s next challenges. Planning was for this past year, he said, and next year is the financing challenge. It’s the right thing to do, he said, and he was looking forward to feedback from the financial review group that will be making funding option recommendations.

Board chair Jesse Bernstein said he was seriously concerned that the deficit year be a one-time commitment. He picked up on Kerson’s mention of the financial group, and noted that McKinley CEO Albert Berriz and former Washtenaw County administrator Bob Guenzel were co-chairing that group. It’s composed of people who understand financing and the politics of funding public activities, he said.

Bernstein called the AATA’s efforts at a transition to countywide service not an empty transition, but a real transition. The budget deficit, he said, should be recognized as unusual and unique, for one year only.

Outcome: The board unanimously approved AATA’s fiscal 2012 budget.

WALLY Commuter Rail

On the agenda was a resolution that expressed general support for continuing to work with surrounding communities on the Washtenaw and Livingston Line (WALLY) project. WALLY would provide commuter rail service on a 26-mile route between Ann Arbor and Howell. Relevant entities identified in the resolution include the state of Michigan, Livingston County, the city of Howell and the Ann Arbor Railroad.

However, the one “resolved” clause requires that funds allocated for WALLY in the 2012 budget – $50,000 – cannot be spent, except with the explicit consent of the AATA board.

WALLY: Background

At the Sept. 15 meeting, the board received a status report on the WALLY project from Michael Benham, a special assistant for strategic planning at AATA. Benham was hired in 2009 to handle the WALLY project. Since then, he’s become responsible for directing the development of the countywide transit master plan (TMP), which the AATA has developed over the last year.

Highlights from Benham’s report included the fact that starting in 2008, AATA has spent a total of $102,853 on the WALLY project, while other partners have spent a total of $225,000. That money has been spent primarily on a study and public education efforts. As part of the AATA FY 2012 budget, the AATA has included another $50,000 for the project. That money would be put towards station design.

Benham’s report identifies $16 million already invested by the Michigan Dept. of Transportation in track improvements, with $19 million worth of work still needed. Another $6 million in optional capital improvements is also identified.

Benham’s report projects that after the necessary capital improvements are completed to operate the commuter service, annual operating costs would amount to $5.4 million. Fares would be expected to cover $2.1 million of that, with another $1.4 million coming from the state’s Comprehensive Transportation Fund. That would leave another $1.9 million of local funding still to be identified.

Benham pointed board members to an appendix in the report with comparative data on WALLY. He characterized WALLY as “right in the ballpark” with other similar projects – at the low end of the range for capital costs. For similar commuter rail connections already in place, he said, the average time from idea to actual service was 10.5 years. So if people ask why WALLY is taking so long, it’s not actually taking so long, he concluded.

[.pdf of WALLY status report (to reduce file size, does not include scans of letters of support)]

WALLY: Board Deliberations

Rich Robben said he wanted to make the observation that the board had some concerns about the viability of the WALLY project. That’s why the presentation had been requested from Michael Benham – to make a reassessment of financial issues and to look at the prospects of closing remaining gaps in funding.

Roger Kerson also noted that board member David Nacht (who did not attend the board meeting) had raised some concerns at a committee meeting. Kerson characterized WALLY as a challenging project, but said, “We’re up to the challenge.” Kerson said the AATA was changing the eco-system by making transit a priority. Traffic is real, and congestion is real, he said. Having an alternative to US-23 will be welcome. He said he was glad to be going ahead in a measured way. Board chair Jesse Bernstein said he couldn’t imagine a clearer statement of moving forward in a careful way.

Outcome: The board voted unanimously to approve the resolution requiring board approval for any expenditures associated with WALLY.

Auditor Rotation

The board considered a resolution authorizing a one-year contract with Plante & Moran for auditing services.

A policy adopted by the AATA board on June 16, 2011 limits contracting with any one auditing firm to a total of eight years. That meant that the auditing firm the AATA had previously used, Rehmann Robson, was not eligible to provide auditing services.

The request for proposals (RFP) was sent to 19 public accounting firms. Plante & Moran’s proposal was judged to be the best of the three proposals received by the AATA.

Auditor Rotation: Board Deliberations

Roger Kerson reported from the performance monitoring and external relations committee that the AATA had received three bids from the 19 solicitations they’d sent out. The AATA evaluation team had ranked Plante & Moran as the best of the three bids, and the committee supported that recommendation.

When the board deliberated on the issue, AATA controller Phil Webb described how the RFP was sent to 19 CPA firms. The 19 were picked from a list of firms in southeast Michigan that did similar work. Technical abilities were 60% of the evaluation score, he said. The cost part of the bids were opened later and counted for 40% of the evaluation. The evaluators were Webb, board treasurer Sue McCormick, CEO Michael Ford.

Outcome: The board voted unanimously to approve selection of Plante & Moran as the AATA auditor.

Vanpools

A resolution on the agenda called for authorizing a contract with VPSI Inc. for vanpool services that is not to exceed $6,600 per year for each AATA owned/managed van. Vanpools are arrangements in which a vehicle is provided through the service, but is driven by one of the members of the pool. Riders pay for operational costs. Currently, the MichiVan program, operated by VPSI, provides such a service in the Ann Arbor area.

However, through fiscal year 2012 MichiVan will only continue to provide vanpool service for existing vanpools in the Ann Arbor area. It’s AATA’s intention to provide service for any additional vanpools that people might wish to create.

Vanpools: Board Deliberations

Reporting out from the planning and development committee, Rich Robben described how in a vanpool, the monthly cost is paid by riders. The capital cost will be paid by a federal grant.

Chris White, AATA manager of service development, told the board that AATA had been working on the project for a while now. [It was one of the service initiatives discussed at an Aug. 10, 2010 board retreat.] MichiVan will continue to operate (with about 100 vanpools) but there’s no ability to expand that number of vanpools. So AATA is looking to be a provider for expansion pools. It allows AATA a chance to get some experience before taking on a larger volume. The eventual goal, White said, is to assume operation of all of the vanpools in the county. This is an opportunity to do that gradually, he said.

Outcome: The board voted unanimously to authorize a contract with VSPI Inc. for vanpool service.

AATA Housekeeping

The board handled a number of housekeeping items.

Housekeeping: Board Officers

The board elects new officers every year. This year, board chair Jesse Bernstein said at the Sept. 15 meeting that the current officers have agreed to continue. As the organization contemplates a transition to a countywide focus, it was felt that it would be good to have some continuity, he said.

AATA board officers are: Jesse Bernstein (chair); Charles Griffith (secretary); and Sue McCormick (treasurer).

The committee chairs are: Rich Robben (planning and development committee), and Charles Griffith (performance monitoring and external relations).

Outcome: The board voted unanimously to maintain the same slate of board officers.

Housekeeping: Board Meeting Schedule

Also on the agenda was the approval of the full board’s meeting schedule, as well as the schedule for its committee meetings. Board meetings fall on the third Thursday of the month. [.pdf of board and committee meeting dates] AATA board meeting information packets are generally available before the meetings on the AATA website.

During deliberations, Anya Dale asked if there was an opportunity to talk about holding meetings earlier in the day. CEO Michael Ford told Dale that there had not been a discussion about that, and he said that staff can be open to changes or modifications. Board chair Jesse Bernstein said he’d be very open to discussing times, once dates are firmed up.

Outcome: The board voted unanimously to approve its meeting schedule.

Housekeeping: Local Advisory Council Appointments

Reporting out from the AATA’s local advisory council (LAC), a co-chair of that group, Jody Slowins, reported that terms were coming to an end, and that members would need to be reappointed. The LAC is a body that provides advocacy for seniors and disabled people.

Gloria Kolb had submitted an application, Slowins said, and the LAC welcomed her graciously.

Slowins said she’d been involved with the LAC for the last 12 years, and she’d never seen such a good group. The AATA’s paratransit coordinator, Brian Clouse, is strongly supportive of the LAC, she said.

Recommended for appointment to the LAC were: Gloria Kolb, Cheryl Weber, Clark Charnetski, Mary Wells, John Kuchinski, Lena Ricks, Eleanor Chang, and Stephen McNutt.

Outcome: The board unanimously approved the appointments to the LAC.

Countywide Transit Finance Group

At the board’s August 2011 meeting, Ford had announced that McKinley Inc. CEO Albert Berriz and Bob Guenzel, retired Washtenaw County administrator, will be co-chairing a panel of financial and funding experts. They are tasked with reviewing a report on funding options and making recommendations that will form the basis of a governance proposal for countywide transit.

That governance proposal is expected to come from an as-yet-unincorporated board of an Act 196 transit authority (U196) to establish a countywide transit authority under that state statute. [Michigan's Act 196 of 1986 provides a mechanism for establishing a transit authority that includes a larger range of entities than just cities. In contrast, the AATA is formed under Act 55 of 1963]

The funding report to be reviewed and analyzed by the group is the third volume of the transit master plan (TMP). [.pdf of Part 1 of Vol. 3 Transit Master Plan Funding Options] [.pdf of Part 2 of Vol. 3 Transit Master Plan Funding Options].

CEO Michael Ford’s written report to the AATA board for its Sept. 15 meeting included a partial list of members in the group tapped to review the funding options report for the countywide transit master plan. At the meeting, an updated list was circulated.

Besides Berriz and Guenzel, members of the group include the following: Patrick Doyle (CEO, Domino’s Pizza); Ric DeVore (regional president, PNC Financial Services Group Inc.); Mary Jo Callan (director, office of community development, Washtenaw County); Mark Perry (director of real estate services, Masco Corp.); Andy LaBarre (vice president of government affairs, A2YChamber); Tim Marshall (president and CEO, Bank of Ann Arbor); Norm Herbert (retired treasurer, University of Michigan); Adiele Nwankwo (senior vice president, PB Americas Inc.); Mike Cicchella (financial planner, Cicchella and Associates, and former Northfield Township supervisor); Leigh Greden (executive director of governmental and community relations, Eastern Michigan University); Conan Smith (executive director, Suburbs Alliance and chair, Washtenaw County board of commissioners); Jonathan Levine (professor, University of Michigan college of architecture and urban planning); Jason Lindauer (wealth management advisor, Merrill Lynch, and mayor of Chelsea); Mark Ouimet (state representative, District 52); John Thorhauer (president and CEO, United Methodist Retirement Communities); Jon Newpol (executive vice president, Thomson Reuters); Dennis Schornack (special advisor on transportation, Governor’s Office); Jim Kosteva, (director of government relations, University of Michigan); Paul Dimond (attorney, Miller Canfield).

The first meeting of the group was Friday, Sept. 16 – the day after the AATA board met. Most of the members were able to attend. The group received a presentation of some of the material they’d already been given in written form. They also asked for specific additional information and analysis, including: the specific economic impact of transit investments in communities of comparable size to Ann Arbor; and a measure of the costs that could be avoided through increased investment in transit.

While the amount and timing of a possible countywide transit millage received scant mention, a robust theme of the initial conversation was the potential for creative private-public partnerships in funding improved transit. Berriz called his and Guenzel’s selection as co-chairs of the group symbolic of the potential for private-public partnerships.

Berriz told members of the group at the Sept. 16 meeting that they will meet three more times, and will produce a white paper by the end of the year.

In his public commentary at the AATA board’s meeting the day before, on Sept. 15, Larry Krieg, with Wake Up, Washtenaw!, congratulated the AATA for the people it had assembled for the financial review. It’s an impressive list, he said. He asked that “out-of-the-box thinking” be tried.

Krieg hoped that among the funding mechanisms the group could identify would be original, significant public-private participation.

Communications, Committees, CEO, Commentary

At its Sept. 15 meeting, the AATA board entertained various communications, including its usual reports from the performance monitoring and external relations committee, the planning and development committee, as well as from CEO Michael Ford. The board also heard commentary from the public. Here are some highlights.

Comm/Comm: Governance, U196 Board

During his report to board members, CEO Michael Ford gave a brief update on progress with future governance issues connected with the entity that would eventually administer countywide transportation.

WEMU's Andrew Cluley interviews AATA board chair Jesse Bernstein after the Sept. 15 meeting.

By way of background, the basic approach the AATA is taking to expanding countywide transit is to transition to an authority formed under Act 196 of 1986. The AATA has been working towards encouraging townships in the county to strike inter-governmental agreements [under Act 7 of 1967] to have joint representation to the board of any Act 196 organization. It’s conceived as a 15-member board, with seven seats from Ann Arbor, two seats from the southeast sector (Ypsilanti Township and Augusta Township), and one seat each for the city of Ypsilanti, Pittsfield Township, and multi-jurisdictional districts in the northeast, north middle, west and south middle parts of the county.

As a precursor to the Act 196 authority, the AATA hopes to seat an unincorporated authority (U196) by Oct. 20, the date of the board’s next meeting.

Ford reported at the Sept. 15 board meeting that he’d met with AATA board chair Jesse Bernstein and Ann Arbor mayor John Hieftje about an inter-local agreement between Ann Arbor, Ypsilanti, Washtenaw County and the AATA.

Comm/Comm: Chelsea Express

Roger Kerson reported out from the performance monitoring and external relations committee that the Chelsea Express – a commuter service between Ann Arbor and Chelsea – is now near capacity. The AATA is now at the point of deciding what to do if the route meets capacity.

Comm/Comm: Website Development

Mary Stasiak, AATA director of community relations, said that one concern the staff is focusing on is to make sure the AATA “owns” everything that’s being developed for the site, given that some of it is being custom developed. The AATA has sent the initial designs back to the contractor for revision, because “we want to make it the best that we can,” she said.

Comm/Comm: Complaints

Thomas Partridge introduced himself as an Ann Arbor and Washtenaw County Democrat, an advocate for seniors and the disabled, and those needing and deserving of public services during this trying time in American history. He called for the election of a new chair of the board of the AATA to champion service that is friendly and caring in safe and ride-worthy vehicles. He questioned whether that’s been the case under current board leadership.

SelectRide should not receive the bid for the AATA’s A-Ride paratransit service, Partridge said. He called the vehicles that SelectRide puts on the road “jalopies” that have accumulated more than 200,000 miles before they are purchased by SelectRide.

Partridge also spoke at the second public commentary slot at the end of the meeting. He called himself an advocate for those who can’t attend the meeting. He said he had led the effort to get the board to meet in an accessible place. [Last year, the AATA moved its meetings to the boardroom of the Ann Arbor District Library from its headquarters on South Industrial Highway.] Despite those efforts, Partridge said, the board went ahead with their vote on the budget with three of its seven members absent. The budget items should have been deferred until the entire board could attend, he said.

He complained that AATA staff members got people to come to board meetings to salute their incompetence. The public is being cheated by publicly funding vehicles that should never be on the road, he said. SelectRide, the company that holds the para-transit contract with AATA, perpetuates discrimination against everyone, Partridge said, even their own employees.

His complaints have been whitewashed, Partridge contended, and he called on the board to elect new leadership.

Comm/Comm: Compliments

Carolyn Grawi spoke on behalf of the Ann Arbor Center for Independent Living. She said she came to support the new local advisory council appointments. She also congratulated AATA for its work associated with the non-motorized Washtenaw Avenue walkway and the accessible crosswalk – AATA was among the many players on that project, she said. She also congratulated Mary Stasiak’s department for receiving an APTA AdWheel award, recognizing its billboard ads.

Present: Jesse Bernstein, Rich Robben, Roger Kerson, Anya Dale

Absent: Charles Griffith, David Nacht, Sue McCormick

Next regular meeting: Thursday, Oct. 20, 2011 at 6:30 p.m. at the Ann Arbor District Library, 343 S. Fifth Ave., Ann Arbor [confirm date]

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The budget calls for expenses of $30,410,616 against only $29,418,995 in revenues, for a deficit in the coming year of $991,621. That shortfall will be made up by drawing on the fund balance. According to the budget resolution, the AATA’s fund balance policy requires it to maintain reserves equal to at least three months’ worth of operating expenses. And the AATA expects to have $1.2 million more in its fund reserve to start the year than that minimum fund balance policy requires. So the projected deficit – which the budget resolution attributes partly to one-time expenses associated with the transportation master plan – is within the $1.2 million excess beyond the minimum three-month reserve, which the AATA holds in its fund balance. [.pdf of AATA 2012 operating budget]

During  deliberations, the four board members present stressed the unique, one-time nature of the deficit budget.

In the most significant categories, the AATA’s revenues break down percentage-wise as follows: 31.4% local transit tax; 29.4% state operating assistance; 18.6% passenger fares; 12.8% federal operating assistance. The AATA also receives some revenue from surrounding municipalities that get transit service through purchase of service (POS) agreements. [2012 AATA revenue pie chart]

In the most significant expense categories, the AATA’s expenses break down percentage-wise as follows: 54.7% employee compensation; 18.2% purchased transportation from other providers; 9.3% other purchased services; 5.7% diesel fuel and gasoline. [2012 AATA expenses pie chart]

In a separate vote, the AATA board also approved the 10-page work plan for the fiscal year. Highlights include reconstruction of the Blake Transit Center in downtown Ann Arbor. In terms of increased service, the work plan includes a focus on: establishing the AATA as a vanpool service provider; establishing service to the Detroit Metropolitan Airport; improved work-transportation connections between Ann Arbor and Ypsilanti; and continued work on commuter rail.

The plan also calls for continued work on the AATA’s information technology, including its website as a communication tool and improved point-of-sale systems to allow people to pay for their fares. [.pdf of work AATA 2012 work plan]

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