Stories indexed with the term ‘federal funding’

AAATA Gears Up for More Accessible Service

Ann Arbor Area Transportation Authority board meeting (July 24, 2014): The board’s meeting this month was the next-to-last one before the initial expansion of services that the transit authority will be implementing. The expansion results from the new millage that was approved in a voter referendum held on May 6, 2014. The rollout of additional service is scheduled for Aug. 24, while the board’s next meeting is three days before that.

From left: AAATA strategic planner Michael Benham, Ed Vielmetti (background) and CEO  Michael Ford, talked after he meeting.

From left: AAATA strategic planner Michael Benham, Ed Vielmetti (background) and CEO Michael Ford, talked after the meeting.

The board barely achieved a quorum – with six of 10 board members attending. Anya Dale presided over the meeting in the absence of board chair Charles Griffith.

The board received some updates on the preparations for implementing that expanded service plan. And three of the board’s July 24 voting items were related at least indirectly to the additional services: a plan for acquiring 20 new buses; adjustments to the current fiscal year’s operating budget; and a tweak to the AAATA’s mission statement.

The mission statement was modified to highlight “accessible” as the kind of transit services that the AAATA aspires to provide. The change to the mission statement also reflected the addition last year of the word “area” to the name of the organization. That name change came as the result of adding the city of Ypsilanti as well as Ypsilanti Township as members of the authority. Previously, the city of Ann Arbor had been the sole member. The additional services will be paid for with a millage levied on property owners from all the member jurisdictions.

The fiscal 2014 budget ends Sept. 30. Revenues were adjusted to reflect the millage revenue. Of the additional $4,543,695 in local millage revenues, $3,850,000 is being put toward next year’s FY 2015 budget. Adjustments to this year’s budget include changes to reflect the hiring and training of 11 new bus drivers, bringing the total to 138 drivers. An operations supervisor, two new vehicle mechanics, an additional service crew member, and a human resources administrative assistant will also be added.

The additional 20 buses the AAATA is acquiring for the service expansion are spread over the next three years, with two to be acquired this year, 11 in FY 2015 and 7 in FY 2016. The buses for FY 2015 and 2016 will be paid for with the additional local millage funds, while the buses this year will tap a federal grant with matching state funds. A public hearing was held on the federal grant application that will include those two buses.

Potential future expansion of services – in addition to those to be implemented starting Aug. 24 – was also reflected in a voting item on the board’s July 24 agenda. The board approved an increase in the contract with SmithGroupJJR from $105,200 to $800,000 – to continue study of north-south commuter rail options between Howell and Ann Arbor. An earlier phase of the study for the WALLY (Washtenaw and Livingston Railway) project identified a segment of the Ann Arbor Railroad right-of-way, between Liberty and Washington streets, as a preferred location for a downtown Ann Arbor station. A portion of the work is being paid for with a $640,000 federal Transportation, Community and System Preservation (TCSP) program grant.

The final voting item on the board’s agenda was a $234,360 contract with GZA GeoEnvironmental to perform environmental cleanup work at the AAATA headquarters building at 2700 S. Industrial Highway. The cleanup, which involves contamination from a gasoline leak that was identified in 2010, is covered by insurance.

At its July 24 meeting, the board also heard its usual range of updates, reports and public commentary, much of which highlighted the idea of accessibility. [Full Story]

AAATA Adopts Title VI Policy

A policy on service equity analysis has been adopted by the Ann Arbor Area Transportation Authority, as part of the authority’s Title VI compliance. Title VI is the civil rights legislation that in the context of public transportation requires proof that a service change has no adverse effect on disadvantaged populations. [.pdf of Title VI policy included in April 17, 2014 AAATA board packet]

The adoption of the policy on service equity analysis came at the board’s April 17, 2014 meeting – in the context of a 5-year service improvement plan the AAATA hopes to implement if voters approve a millage request on May 6, 2014. The AAATA is required to have such a policy as one element in a Title VI program … [Full Story]

Urban County Action Plan: Initial Approval

Washtenaw County commissioners gave initial approval to the 2014 Urban County action plan at their April 16, 2014 meeting. The plan covers the period from July 1, 2014 through June 30, 2015 and outlines how the Urban County consortium intends to spend federal funding received from the U.S. Dept. of Housing and Urban Development (HUD). [.pdf of draft action plan]

Washtenaw Urban County, The Ann Arbor Chronicle

Map of Urban County participants.

The Urban County is a consortium of Washtenaw County and 18 local municipalities that receive federal funding for low-income neighborhoods. Members include the cities of Ann Arbor, Ypsilanti and Saline, and 15 townships. “Urban County” is a designation … [Full Story]

DDA Supports Continuing Connector Study

The Ann Arbor Downtown Development Authority board has approved a resolution that expresses notional support, but not does not commit any funding, for the third phase of a study for a high-capacity transportation system – stretching from US-23 and Plymouth southward along Plymouth to State Street, then further south to I-94. The third phase of the study will be an environmental review.

DDA board action came at its April 2, 2014 meeting. The resolution of support will be used as part of an application, due April 28, for a U.S. Department of Transportation TIGER 2014 (Transportation Investment Generating Economic Recovery) grant.

The lead agency for the study, which is now in its second phase, is the Ann Arbor Area Transportation Authority. This … [Full Story]

Public Hearing Set for Urban County Plan

At their March 5, 2014 meeting, Washtenaw County commissioners scheduled a public hearing for March 19 to give input for the Washtenaw Urban County 2014-15 action plan. The hearing, set to start at 6:30 p.m. at the county boardroom in downtown Ann Arbor, is intended to solicit feedback about proposed projects and programs that the county intends to implement with federal funding – through community development block grant (CDBG), HOME and emergency shelter grant programs – from July 1, 2014 through June 30, 2015. [.pdf of action plan]

The Urban County is a consortium of Washtenaw County and 18 local municipalities that receive federal funding for low-income neighborhoods. Members include the cities of Ann Arbor, Ypsilanti and Saline, and 15 townships. “Urban County” … [Full Story]

AAPS: No Wind Turbine for Teaching

Educating Ann Arbor area students about wind power might still take place with funding from a U.S. Department of Energy grant. But that teaching won’t take place in the context of a demonstration wind turbine the city of Ann Arbor had hoped to construct with the federal money.

That’s because Ann Arbor Public Schools has informed the city that the district won’t be partnering with the city on the construction of a 100-150 foot tall, 60kW wind turbine on school property.

In a letter dated Jan. 30, 2014 from AAPS superintendent Jeanice Kerr Swift to city administrator Steve Powers, Swift concluded: “I believe that it is not in the best interest of the District to consent to this project.” However, Swift’s letter leaves … [Full Story]

AAATA OKs Capital Program, Paratransit Deal

Ann Arbor Area Transportation Authority board meeting (Dec. 19, 2013): The last meeting of the year was attended by just five of the nine board members who are appointed and serving – and one needed to depart early. So to maintain a quorum, the meeting went by brisker than most. Even with a staff presentation on the capital and categorical grant program, the meeting concluded after about 45 minutes.

From left: Ann Arbor Area Transportation Authority's newest board member, pending confirmation by the Ypsilanti Township board of trustees, and Eric Mahler, AAATA board member.

From left: Larry Krieg, Ann Arbor Area Transportation Authority’s newest board member, pending confirmation by the Ypsilanti Township board of trustees, and Eric Mahler, AAATA board member. (Photos by the writer.)

That capital and categorical grant program got a unanimous vote of approval at the Dec. 19 meeting. It’s a plan for spending about $45 million in federal funds over the next five years. According to the AAATA, this year’s plan does not include additional capital needs that would be associated with a five-year service improvement plan in the urban core, or any funding associated with rail initiatives. Having in place such a capital and categorical grant program – a set of allocations for specific categories of capital expenditures – is a requirement to be eligible for federal funding. [.pdf of 2014-2018 grant program]

The five-year service improvement plan could be implemented by the AAATA with funding that will likely be sought through an additional millage sometime in 2014. That would require approval of a majority of voters in the three jurisdictions making up the AAATA – the city of Ann Arbor, the city of Ypsilanti and Ypsilanti Township. The township became a member as a result of an Ann Arbor city council vote taken on Nov. 18, 2013.

The expected appointee to the AAATA board from Ypsilanti Township, Larry Krieg, attended the Dec. 19 meeting and sat at the table, although his appointment has not yet been confirmed by the township board of trustees. His confirmation did not appear on the township board’s Dec. 9, 2013 agenda. The next township board meeting is set for Jan. 21, 2014, which comes the week after the AAATA’s next regular meeting, on Jan. 16.

So Krieg did not participate in any of the votes taken on Dec. 19.

A significant vote taken by the board was to approve a nine-month extension of a contract with SelectRide through April 30, 2015, to provide paratransit service. The value of the contract for the extension period is $2.263 million. That’s essentially a pro-rated amount of SelectRide’s current contract, which ran through July 31, 2014.

The AAATA is currently preparing a request for proposals (RFP) with an eye to overhaul the concept of its paratransit service – which comes in the context of the possible five-year service improvement plan. Without a contract extension, that RFP would need to be ready for issuance in time to complete selection of a vendor by the time SelectRide’s current contract expires in July 2014. To avoid the possibility of an interruption in service, the AAATA board approved the SelectRide contract extension.

Other business items handled by the board included contracts for snow removal and janitorial services. [Full Story]

AAATA 2014-18 Capital Program OK’d

The 2014-2018 capital and categorical grant program – a plan for spending federal funds – has been given approval by the Ann Arbor Area Transportation Authority board. The action took place at the board’s Dec. 19, 2013 meeting. According to the AAATA, this year’s plan does not include additional capital needs that would be associated with a five-year service improvement plan in the urban core. [.pdf of 2014-2018 grant program] [.pdf of Dec. 10, 2013 planning and development committee presentation]

The five-year service improvement plan could be implemented by the AAATA with funding that will likely be sought through an additional millage sometime in 2014. That would require approval of a majority of voters in the three jurisdictions making … [Full Story]

AAATA Formalizes Ypsi City Relationship

Ann Arbor Area Transportation Authority board meeting (Oct. 17, 2013): The main business of the board’s meeting was the approval of a funding agreement with the city of Ypsilanti – a new member of the AAATA, and the first jurisdiction to join the authority outside of the city of Ann Arbor.

Old Y Lot from the northwest corner of William and Fifth Avenue in downtown Ann Arbor.

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

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

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

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

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

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

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

AAATA: 40 More Vehicles for Vanpools

Up to 40 vehicles could be purchased for the Ann Arbor Area Transportation Authority’s vanpool program to replace aging vehicles, as well as to meet additional demand for the program. The vans will be either Dodge Caravans (mini-vans) at $21,356 from Snethkamp of Lansing, or Ford Econoline vans (full-size vans) from Gorno of Woodhaven, at $20,940.

According to the resolution approved by the board, the Ford Econoline meets the conditions of the Federal Transit Administration’s Buy America program – which require 65% American components and final assembly in the United States. The Dodge Caravan meets the 65% American-made component requirement, but is assembled in Canada – with union labor. So the funding of the Caravan, which does not meet all the FTA’s … [Full Story]

UM: Federal Funding

In a guest column published by the Detroit Free Press, Ora Pescovitz – CEO of the University of Michigan Health System and UM’s executive vice president for medical affairs – describes how the federal sequestration and recent shutdown are affecting medical research. From the column: “When we stop investing in research, we’re saying that we are no longer committed to leading the world in discovery and being on the cutting edge of medical science. We’re saying that we are okay with the fact that our nation — a nation built on pioneering innovation — will no longer be in the lead or even competitive.”[Source]

Washtenaw Urban County Plan Gets Final OK

Washtenaw Urban County‘s five-year strategic plan through 2018 and its 2013-14 annual plan has received final approval from the county board of commissioners. The vote came at the board’s May 15, 2013 meeting, following initial approval on May 1. [.pdf of draft strategic and annual plans]

The Urban County is a consortium of Washtenaw County and 18 local municipalities that receive federal funding for low-income neighborhoods. Members include the cities of Ann Arbor, Ypsilanti and Saline, and 15 townships. “Urban County” is a designation of the U.S. Dept. of Housing and Urban Development (HUD), identifying a county with more than 200,000 people. With that designation, individual governments within the Urban County can become members, entitling them to an … [Full Story]

County Board Wrangles Over Budget Process

Washtenaw County board of commissioners meeting (May 1, 2013): The location and accessibility of a planned May 16 budget retreat drew some heated rhetoric from commissioner Ronnie Peterson, who argued strongly for all budget-related meetings to be held in the main county boardroom and to be televised, as the board’s regular meetings are.

Dan Smith, Washtenaw County board of commissioners, The Ann Arbor Chronicle

Washtenaw County commissioner Dan Smith (R-District 2) talks with residents who attended the county board’s May 1 meeting to highlight the deteriorating condition of North Territorial Road, which runs through Smith’s district. (Photos by the writer.)

The May 16 retreat is set for the county’s Learning Resource Center at 4135 Washtenaw Ave. – near the county jail complex – starting at 6 p.m. The meeting is open to the public and will be videotaped.

Peterson also questioned the content of the retreat. “If it’s a hug fest,” he said, “I don’t have to be there.” Board chair Yousef Rabhi told commissioners that the goal will be to set priorities for the upcoming budget. “It’s going to be work,” Rabhi said. “There aren’t going to be any hugs, unless somebody wants to give me a hug.”

Also at the May 1 meeting, the board gave final approval to authorize the development of a four-year budget planning cycle, a change from the current two-year cycle that’s been in place since 1994. The vote was 7-2 vote, with dissent from Peterson and Rolland Sizemore Jr. Peterson argued that developing a budget is the main job for commissioners. “So we owe the taxpayers a rebate. I hope we cut our salaries in half … because there’s really a lot less work to do.” Though the planning cycle would be longer, the board is still required by state law to approve its budget annually – so that process wouldn’t change.

The board will get a better sense of the county’s financial status at its May 15 meeting, when county administrator Verna McDaniel will give a first-quarter update and a “state-of-the-county” presentation. One major factor is a pending decision for the board on whether to issue a $345 million bond to cover the county’s pension and retiree healthcare obligations. The board discussed that topic at a May 2 working session. [See Chronicle coverage: "County Board Debates $350M Bond Proposal."]

One item not on the May 1 agenda was raised during public commentary: The deteriorating condition of North Territorial Road, specifically a section running through Northfield and Salem townships. Residents have collected about 600 signatures on a petition urging the road commission to repair that stretch, and asked the county board to help address the problem “before somebody gets hurt or comes in here shouting or raving.”

County commissioner Dan Smith, who represents the district that includes Northfield and Salem townships, pointed out that there are possible funding mechanisms available to the county, including the possibility of levying a tax under Act 283 of 1909. A 1 mill levy in Washtenaw County would bring in about $13.8 million, based on 2012 property values, he said. He also noted that there’s a similar law on the books that appears to allow townships in Michigan to levy up to 3 mills for roads. That could bring in another $24.9 million throughout the county, he said. In total, about $38 million could be raised in Washtenaw County to fix the roads.

In other action during the May 1 meeting, commissioners gave initial approval to the Washtenaw Urban County‘s five-year strategic plan through 2018 and its 2013-14 annual plan.

The board also declared May 12-18, 2013 as Police and Correction Officers Week, and May 15 as Peace Officers Memorial Day. Dieter Heren, police services commander with the Washtenaw County sheriff’s office, was on hand to accept the resolution on behalf of sheriff Jerry Clayton and all law enforcement agencies in the county. He reminded the board that on May 15 at 10 a.m. there will be a memorial service in the Washtenaw 100 Park in Ypsilanti to “honor the law enforcement officers who have fallen here in Washtenaw County while serving the community,” he said. The park is located at the corner of Michigan Avenue and Ballard Street. [Full Story]

County Board Briefed on Audit, Financials

Washtenaw County board of commissioners meeting (April 3, 2013): With a third of the board absent, commissioners were briefed on the county’s 2012 audit – with a look toward changes that will impact future financial statements. The audit was clean.

Mark Kettner, Carla Sledge, Kelly Belknap, Pete Collinson, Rehmann, Washtenaw County board of commissioners, The Ann Arbor Chronicle

From left: Mark Kettner of the accounting firm Rehmann; Carla Sledge, Wayne County’s chief financial officer; Kelly Belknap, Washtenaw County’s finance director; and Pete Collinson, accounting manager for Washtenaw County. (Photos by the writer.)

The county’s finance staff, along with the auditor, Mark Kettner of Rehmann, highlighted several points, including a relatively dramatic increase in the general fund balance over the last few years – from $9.7 million in 2009 to $16.8 million at the end of 2012. Kettner also explained upcoming accounting changes that will require unfunded liabilities from the county’s pension and retirement healthcare plans – now totaling nearly $250 million – to be recorded in a different way, with more disclosure.

The new accounting changes – required by the Governmental Accounting Standards Board (GASB) – won’t begin until 2015, but commissioner Dan Smith (R-District 2) wondered whether the county could implement the changes sooner. It might be possible, Kettner replied, but “I don’t know why you’d want to do it.” He suggested that the board hold a working session to go over the upcoming changes in more detail.

Kettner also pointed out that the changes will affect government entities in different ways. For example, it’s likely that there will be more impact on the city of Ann Arbor, because of how its many “enterprise” funds might be affected and the implications that would have on outstanding bonds. At minimum, the changes will mean more work for finance staff.

Also at the April 3 meeting, commissioners voted to add 39 new jobs in the community support and treatment service (CSTS) department, which provides mental health and substance abuse services to county residents. The work is primarily funded by the Washtenaw Community Health Organization, a partnership between the county and the University of Michigan Health System. Most of the new jobs are union positions. Dan Smith expressed concern about adding to the county’s payroll, but supported the resolution along with other commissioners in a unanimous vote.

The board also took an initial vote to dissolve The Washtenaw Ride. That Act 196 authority is a remnant of a failed attempt to create a countywide transit system last year. Efforts to expand the current reach of the Ann Arbor Transportation Authority are still underway, but don’t require the structure that was put in place under Act 196.

The topic of public transportation was raised later in the meeting as well, as Ronnie Peterson (D-District 6) asked about the county’s role in the southeast regional transit authority (RTA). The RTA was formed by the state legislature last year to coordinate regional transit in the city of Detroit and counties of Wayne, Macomb, Oakland and Washtenaw. There was not uniform support for Washtenaw County to be part of this effort, and it’s not yet clear what the impact will be on the AATA.

In other discussion, Yousef Rabhi (D-District 8) highlighted a proposal in front of the Ann Arbor city council regarding possible ordinance changes governing the Ann Arbor Downtown Development Authority. Depending on what the council decides, there might be implications for the county, he said, so he wanted to put it on the board’s radar. For background on this issue, see Chronicle coverage: “DDA Tax Capture Change Gets Initial OK” and “DDA Ramps Up PR after First Council Vote.”

Also briefly mentioned was a discussion that occurred at a late March county pension commission meeting, raising questions about the new labor contracts that the board approved on March 20, 2013. At issue is whether the county complied with a state law requiring supplemental actuarial analysis before pension benefit changes are adopted. The county administration subsequently conferred with outside legal counsel, and confirmed their view that no new actuarial analysis was necessary.

And although it wasn’t discussed at the April 3 board meeting, the recent labor contracts resulted in another issue related to compliance with state law: Elimination of the county’s healthcare benefits for domestic partners. [Full Story]

Public Hearing Set for Urban County Plans

A public hearing is now set for April 17, 2013 to get input on the Washtenaw Urban County‘s five-year strategic plan through 2018 and its 2013-14 annual plan. The hearing will be held at the county board of commissioners meeting at 6:30 p.m., in the boardroom of the county administration building at 22o N. Main St. in Ann Arbor. Commissioners scheduled the meeting with a unanimous vote on April 3.

The Urban County is a consortium of Washtenaw County and 18 local municipalities that receive federal funding for low-income neighborhoods. Members include the cities of Ann Arbor, Ypsilanti and Saline, and 15 townships. “Urban County” is a designation of the U.S. Dept. of Housing and Urban Development (HUD), identifying a … [Full Story]

UM: Research Funding

Reuters reports on how federal spending cuts under sequestration are affecting university research. The report quotes Steve Forrest, vice president of research at the University of Michigan: “There (are) going to be a lot of research jobs at risk. That will hit young researchers disproportionately hard.” [Source]

County Moves Closer to New Labor Deal

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

Ronnie Peterson, Yousef Rabhi, Washtenaw County board of commissioners, The Ann Arbor Chronicle

Washtenaw County commissioners Ronnie Peterson (D-District 6) and Yousef Rabhi (D-District 8), who serves as board chair, talk before the board’s March 6, 2013 meeting. (Photos by the writer.)

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

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

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

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

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

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

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

Round 3 FY 2014: Housing Commission

After a Feb. 11, 2013 budget work session that included separate presentations on the city’s capital improvements plan (CIP) and the Ann Arbor Housing Commission (AAHC), both of these topics came up again briefly at the city council’s most recent regular meeting.

During communications time for the council’s meeting on Feb. 19, 2013, Stephen Kunselman (Ward 3) expressed his view that the CIP should start including the 360 units of public housing managed by the AAHC.

Ann Arbor Housing Commission Properties

Ann Arbor Housing Commission properties. The size of the dot is proportional to the number of units in the location. (Map by The Chronicle. Image links to interactive map.)

Kunselman’s argument for future inclusion of AAHC properties in the city’s CIP is based in part on the fact that the city of Ann Arbor currently holds the deeds to those properties. But his broader point is that he’s opposed to the city relinquishing title to the properties – as part of a proposal made to the council by AAHC executive director Jennifer L. Hall. Hall has served in that capacity for about a year, and began her Feb. 11 presentation at the council work session with an overview of improvements that AAHC has achieved since she took the post.

Hall’s proposal stems from a need to cover an estimated $500,000 per year funding gap for needed capital investments, coupled with a perceived shift in priorities by the U.S. Dept. of Housing and Urban Development (HUD) in its funding strategy. That shift is somewhat away from subsidized public housing, where rent is subsidized in units owned by a housing commission. [Ann Arbor's situation is apparently unique – because the city, not the AAHC, holds the deeds.] While HUD still allocates several billion dollars nationally for public housing, it subsidizes even more in programs that are based on vouchers. And based on the last three years, the trend is toward more funding on the federal level for vouchers than for public housing.

Some HUD vouchers are tied to a tenant – a person. A potential tenant can take that voucher to a private landlord – and it’s the tenant who receives the rent subsidy, wherever that tenant is able to rent a place to live. Other HUD vouchers are tied instead to privately-owned property, and whoever lives in that private project receives the rent subsidy.

The strategy that Hall will be asking the council to authorize is one that converts AAHC properties to part private ownership, in order to take advantage of project-based HUD vouchers. The private ownership of the AAHC properties will also allow the possible use of tax credit financing to pay for needed capital investments – roofs, boilers, plumbing and the like.

The conversion to project-based vouchers would take place under HUD’s Rental Assistance Demonstration (RAD) program. To set the stage for that, the board of the AAHC selected a co-developer at its Jan. 10, 2013 meeting: Norstar Development USA.

The council would need to take two specific steps in order to proceed with the RAD: (1) approve the contingent transfer of the city-owned AAHC properties to the AAHC; and (2) approve a payment in lieu of taxes (PILOT) for the properties so that they’d owe just $1/unit in property tax per year. As city-owned properties, no property tax is currently owed. Without the PILOT provision, taxes would be owed. Requests to take those steps are expected to come to the council in March. March will also be a period during which public hearings will take place on this issue.

Although Kunselman expressed clear opposition to the idea of transferring the deeds, and Mike Anglin (Ward 5) joined him in expressing significant skepticism, other councilmembers were more positive. They still had several questions about the complexities and the risks associated with the RAD program. [For more background on the AAHC’s efforts to prepare for the RAD program, see Chronicle coverage: “Housing Commission Eyes Major Transition.”]

The Feb. 11 budget work session included the 15th District Court and the capital improvements plan (CIP). A session held on Feb. 25 covered the fund-by-fund budget picture for the next two years. Presentations on those topics are covered in separate Chronicle reports. The council’s discussion of its budget priorities – identified at a planning retreat late last year – is expected to begin at a March 11 work session. [Full Story]

County Programs Get Grant Funding

Three items related to grants and programs administered by the county’s office of community & economic development (OCED) were given final approval by the Washtenaw County board of commissioners at their Feb. 20, 2013 meeting.

The items are: (1) the Michigan Works! system plan for 2013 [.pdf of 2013 MWSP]; (2) $20,000 in federal funding (Community Services Block Grant discretionary funds) to conduct a needs assessment of the New West Willow Neighborhood Association, supplemented with $5,000 in county matching funds; and (3) $20,000 in federal funding (Community Services Block Grant discretionary funds) for tax preparation services to low-income customers, in partnership with Avalon Housing, Catholic Social Services of Washtenaw County, Housing Bureau for Seniors and Women’s Center of Southeastern Michigan.

These items … [Full Story]

AATA Adopts 2013-17 Categorical Grant Program

The capital and categorical grant program for the Ann Arbor Transportation Authority was given approval at the AATA board’s Jan. 17, 2013 meeting. Having in place such a grant program – a set of allocations for specific categories of capital expenditures – is a requirement to be eligible for federal funding. It’s a plan for how $44 million would be spent over the next five years. [.pdf of grant program]

For example, this year the program includes 11 replacement buses, five buses for expanded service and 25 vans for the van pool program. Two of the new buses for expanded service are related to increased frequency of service on Route #5. Notable in the program is that except for … [Full Story]

Housing Commission Selects Co-Developer

Ann Arbor housing commission special board meeting (Jan. 10, 2013): Taking another step toward a public/private partnership, Ann Arbor housing commissioners unanimously voted to choose Norstar Development USA as co-developer for a major new public housing initiative. The action took place at a special board meeting on Jan. 10 called solely to hear presentations from two finalists: Norstar and MHT Housing Inc.

Tim OBrien, Rick Higgins, Norstar Development, OBrien Construction, Ann Arbor housing commission, public housing, The Ann Arbor Chronicle

From left: Tim O’Brien, president of O’Brien Construction, and Norstar Development USA president Rick Higgins, at the Jan. 10 special board meeting for the Ann Arbor housing commission. (Photos by the writer.)

Norstar – based in Buffalo, N.Y. – will help AAHC convert about 275 of Ann Arbor’s 360 public housing units into public/private developments. Residents in those units will receive rental assistance through long-term Section 8 subsidy vouchers that are tied to the buildings. It’s part of a new rental assistance demonstration program, known as RAD, offered by the U.S. Dept. of Housing and Urban Development (HUD). AAHC was accepted into the program late last year, and faced a Jan. 30 deadline to submit its selection of a co-developer to HUD.

The process eventually will entail that ownership of some Ann Arbor public housing properties – to which the city of Ann Arbor holds deed – would be transferred to a new entity. The city, via the AAHC, would retain a small ownership stake in the new entity – likely 1% or less. The arrangement would give AAHC access to private financing to renovate the current public housing properties, using tax credit financing, loans, equity or grants that are not otherwise available to the housing commission.

Executive director of the Ann Arbor Housing Commission Jennifer L. Hall will be making a presentation on this process to the Ann Arbor city council at its Feb. 11 working session.

AAHC also faces a Feb. 15 deadline for the next round of the state’s low-income housing tax credit (LIHTC) program, in the category of permanent supportive housing. AAHC officials hope that tax credit financing will provide the bulk of investment for this RAD initiative, but much work is needed to complete the application in time. “You can’t even imagine how much work it will take for us to get into that Feb. 15 round,” Hall told commissioners. They need to hire an appraiser, do a fiscal needs assessment and environmental review, and take a range of other actions.

The goal of this complex set of transactions is not at this point to increase the number of public housing units in Ann Arbor. Instead the goal is to enable AAHC to tap private financing for capital improvements in its existing housing stock, which is aging. Many properties were built in the 1960s and 1970s.

Norstar will be one of at least four entities working with AAHC on this project. The AAHC also has hired Avalon Housing, an Ann Arbor nonprofit, as a consultant to help seek low-income housing tax credits from the state. Avalon’s contract runs through Dec. 31, 2013 for an amount up to $32,000, to be invoiced hourly at $180 per hour.

Two others who are working on the effort are: (1) Tom Davis, a senior vice president of advisory services at Recap Real Estate Advisors, based in Boston; and (2) Rochelle Lento, a real estate attorney with Dykema’s Detroit office. The cost of Dykema’s service is estimated at no more than $40,000. Recap’s compensation could include more than $70,000 for helping AAHC complete the RAD transactions.

Both Davis and Lento attended the Jan. 10 meeting. Also attending his first meeting as the newest housing commissioner was Christopher Geer, an accountant and finance director with PricewaterhouseCoopers. Geer was appointed by city council to replace Andy LaBarre, who resigned last year after being elected to the Washtenaw County board of commissioners. [Full Story]

Housing Commission Eyes Major Transition

Changes are underway that could be transformative for Ann Arbor’s public housing system, taking advantage of a new federal program that might result in private financing for capital improvements in aging housing stock.

Rochelle Lento, Ann Arbor Housing Commission, public housing, The Ann Arbor Chronicle

Rochelle Lento, right, is an attorney with Dykema who is doing pro bono work for the Ann Arbor housing commission. Seated next to her is Margie Teall, Ward 4 city councilmember and council liaison to the commission. Next to Teall is Kevin McDonald, senior assistant city attorney. The commission’s Nov. 14 meeting was held at Miller Manor, one of the city’s public housing complexes.

The Ann Arbor housing commission is the local agency responsible for administering the city’s federally-funded public housing and Section 8 rent subsidies for low-income residents. It manages 360 public housing units, including large complexes like Baker Commons at Main and Packard. Most of its properties were built in the 1960s and 1970s, and are in need of serious maintenance and upgrades that aren’t covered by federal funding.

To address this issue, the AAHC has applied for a new program offered by the U.S. Dept. of Housing and Urban Development (HUD). The rental assistance demonstration program, known as RAD, is a mechanism to convert public housing units into public/private developments that in turn provide rental assistance through long-term Section 8 subsidy vouchers that are tied to those developments. It would also mean that ownership of some Ann Arbor public housing properties would be transferred to a new entity, in which the AAHC would have only a small ownership stake – likely 1% or less. The arrangement would give AAHC access to private financing to renovate the current public housing properties, using tax credit financing, loans, equity or grants that are not otherwise available to the housing commission.

HUD is expected to inform AAHC this month about whether it’s been selected for the program.

Last month, the housing commission board took additional action to lay the groundwork for these changes. The board approved amendments to bylaws and articles of incorporation for an AAHC nonprofit subsidiary – the Ann Arbor Housing Development Corp. – which will serve as the entity to enter into partnerships for these RAD projects. Rochelle Lento, a Dykema attorney who’s doing pro bono work for the housing commission, described it as a way to protect the AAHC from liabilities associated with entering a public/private partnership.

The five-member board will also be voting to select a co-developer and consultant for this effort, from a list of nine entities that responded to a recent request for proposals (RFP). Respondents included the local nonprofit Avalon Housing and a subsidiary of the construction firm JC Beal Construction.

The housing commission board is appointed by the Ann Arbor city council, but the council has a limited role in authorizing actions related to the RAD program. Current AAHC board members are Ron Woods, Marta Manildi, Gloria Black, Leigh Greden and Andy LaBarre.

However, at the end of the Nov. 14 meeting LaBarre announced his plans to resign from the commission. He noted that he’d recently been elected to the Washtenaw County board of commissioners, and needed to focus on what he’d been elected to do. LaBarre, a Democrat, won the District 7 seat on the county board in the Nov. 6 general election. It’s one of three districts that cover Ann Arbor. His two-year term begins in January of 2013. No nomination has yet been made for his replacement. [Full Story]

AATA Approves Routine MDOT Processes

As it typically does each year, the board of the Ann Arbor Transportation Authority has authorized its chief executive officer to sign and execute contracts with the Michigan Dept. of Transportation (MDOT) without seeking a separate board resolution – as long as the contracts are less than $1 million. The board gave the blanket authorization at its Sept. 27, 2012 meeting.

According to the staff memo accompanying the resolution, there are 10-15 separate agreements between MDOT and AATA. A staff analysis of the resolution allows that there’s a risk to the practice – that the board might not be aware of the contracts that the CEO is executing. That risk is meant to be mitigated by a new practice of reporting all … [Full Story]

Transit Contract Tied to Local Funding

Authorization for a $1.5 million contract for further study of a transportation connector between the northeast and south sides of Ann Arbor has been given contingent approval by the Ann Arbor Transportation Authority board.

The authorization, which the AATA board gave at its Sept. 27, 2012 meeting, is conditional on additional local funding – in the amount of $60,000. The $60,000 would be part of a total $300,000 local match for a $1.2 million federal grant.

The corridor runs from US-23 and Plymouth southward along Plymouth to State Street and farther south to I-94. This alternatives analysis phase of the study is to result in identifying a preferred choice of technology (e.g., bus rapid transit, light rail, etc.) and the location of stations and stops.

The … [Full Story]

County Board OKs State Reimbursements

Several items related to state reimbursements for Washtenaw County units were given initial approval by county commissioners on Sept. 19, 2012. The timing reflects the state’s fiscal year, which begins Oct. 1. In contrast, the county works on a calendar-year budget cycle; but many of its units receive significant state funding.

The Washtenaw County Trial Court juvenile division anticipates $4,329,042 in reimbursements from the state child care fund budget. Programs supported by these revenues include family foster care, institutional care and in-home care, according to a staff memo. The trial court’s Friend of the Court program is also seeking reimbursements for “services to residents who are seeking to establish paternity and/or child support orders.” Over a three-year period through Sept. 30, … [Full Story]

Avalon Housing: Near North Won’t Work

In a letter sent to Ann Arbor councilmembers and other government officials, Avalon Housing‘s senior developer Michael Appel has announced that the Near North affordable housing project will not move forward. The development team has determined that the project, which was to include 39 new affordable housing units, 16 of them as supportive housing, is not feasible as planned. [.pdf of letter from Michael Appel]

A change to the FEMA flood maps is highlighted in Appel’s letter as a crucial factor in the inability of the project to move forward. The new maps, adopted in 2012, show an expanded floodway, which cuts across the corner of the parcel. That mean that federal funds – part of the project’s financing … [Full Story]

UM Regents Vote on Pharma Manufacturing

The University of Michigan board of regents authorized 11 items that required disclosure under the state’s conflict-of-interest statute, in votes taken at the board’s July 19, 2012 meeting. The law requires that regents vote on potential conflict-of-interest disclosures related to university staff, faculty or students.

Among them was an item related to consulting in support of a pharmaceutical manufacturing facility at the North Campus Research Complex (NCRC). That project is the Michigan Advanced Development and Manufacturing Center – an entity created by UM to seek a U.S. Dept. of Defense contract to develop pharmaceutical manufacturing at the former Pfizer site. At this point, the conflict-of-interest item is a retroactive disclosure of consulting services with NanoBio Corp. from Feb. 10, 2012, through June 30, 2012, with a … [Full Story]

UM Regents OK Expanded ISR Building

An expanded building project for the University of Michigan’s Institute for Social Research was approved by UM regents at their July 19, 2012 meeting. The change includes increasing the project’s budget from $23 million to $29 million, and expanding the addition on the side of the ISR building to five stories covering 56,700 square feet.  The original project, approved by regents in April 2010, called for a four-story addition of about 44,700 square feet.

The addition is adjacent to the existing ISR building at 426 Thompson St. – 7,200 square feet of that existing building will be renovated as part of the project. The expansion will be paid for in part by federal stimulus funds via a grant from the National … [Full Story]

County Board OKs Workforce Items

The Washtenaw County board of commissioners approved several items related to funding for workforce development programs, administered by the county’s office of community and economic development. The votes took place at the board’s July 11, 2012 meeting.

The board approved an annual employment services plan for programs provided at the Michigan Works! Career Transition Center in Ypsilanti. [.pdf of employment services plan] The plan is required in order to receive federal funding, allocated by the state’s Workforce Development Agency. This year, the county will receive $470,755 for the period from July 1, 2012 through June 30, 2013.

Also approved was the county’s application for $2,548,864 in funding for federal Workforce Investment Act (WIA) programs for adults, dislocated workers, and youth from July 1, 2012 … [Full Story]

Project LIFT Grant Application Approved

At its June 6, 2012 meeting, the Washtenaw County board of commissioners gave final approval to apply for a $1,348,853 federal grant from the U.S. Dept. of Labor to fund Project LIFT, a jobs training and service program for juvenile ex-offenders run by the county sheriff’s office. The program aims to serve 100 youth. [.pdf of program description] The grant application had received initial approval at the board’s May 16, 2012 meeting.

A staff memo notes that while Washtenaw County “has the best employment rates compared to its neighbors, it also has the highest rate of criminal recidivism in the state, with 80% of released prisoners being re-imprisoned 2-3 years later. In addition, many at-risk youth reside in communities that serve … [Full Story]