Door to the Ann Arbor city council chamber.

In addition to possible final votes on those two ordinance changes, several items related to the 15th District Court appear on the council’s agenda. The court handles all civil claims up to $25,000, including small claims, landlord-tenant disputes, land contract disputes, and civil infractions, as well as preliminary exams for felony cases. Salaries for judges are reimbursed by the state, but the court is funded by the city through its regular budgeting process, with other costs borne by the city or by grants.

The council will be asked to approve an adjustment to the city’s current fiscal year’s budget (FY 2013) to bring it in line with actual expenditures. The general fund total budget adjustment is to increase it by $567,000. And of that, a significant part is attributable to the 15th District Court – including $112,000 in salary increases based on an interest in retaining employees, $203,000 due to a “catch up” payment to the law firm that provides indigent representation, and a back-bill for security from Washtenaw County for two fiscal years for $110,000.

Also on the council’s agenda is the authorization of a contract revision for the current year with the law firm that provides indigent representation. The “catch up” payment stems from the firm’s practice of delaying billing until a defendant’s legal costs are thought to be complete – instead of billing along the way. Because that approach doesn’t give a clear picture of the actual current cost of indigent representation, a new contract with the firm for next year (FY 2014) will be based on a flat fee. That $240,000 annual flat-fee contract is with Nassif and Reiser, P.L.L.C. (f/k/a Funkhouser and Nassif, P.L.L.C.), d/b/a Model Cities Legal Services (“MCLS”). Nader Nassif is a board member of the Ann Arbor Downtown Development Authority.

The council will also be asked to approve a $160,000 contract with the Washtenaw County sheriff’s office for weapons screening at the Justice Center, the building next to city hall that houses the 15th District Court. The estimated annual cost is based on $25.25 per hour per court security officer.

On the consent agenda – a group of items that are considered routine and voted on as a group – are two other items related to the 15th District Court. One is approval of $30,000 for a Sobriety Court grant program contract with the Washtenaw Community Health Organization (WCHO) to provide mental health treatment to 15th District Court defendants. The second is approval of $65,000 for a Sobriety Court grant program contract with the nonprofit Dawn Farm to provide in-patient and out-patient drug abuse counseling to 15th District Court defendants.

The Dawn Farm item includes a provision that could cause it to be pulled out of the consent agenda for separate consideration. That possibly controversial provision is a waiver of the city’s living wage ordinance for Dawn Farm to provide its counseling services. According to the staff memo accompanying the resolution, Dawn Farm employs 70 people, including 15 employees who are paid less than $12.52 per hour with health care coverage, and 18 people who are compensated at rates less than $13.96 per hour without health care coverage. Those are the rates specified in the city’s living wage ordinance. Last fall the council engaged in a vigorous discussion of a living wage ordinance waiver for Community Action Network (CAN), which ultimately resulted in the granting of a waiver at the council’s Nov. 8, 2012 meeting.

Other agenda highlights include revisions to contracts for six unions in the police department, which include a 2% wage increase starting July 1, 2013 and another 1% starting Jan. 1, 2014.

At the June 17 meeting, the council may also vote to adopt revisions to its own internal rules. Among other changes, the revised rules would reduce speaking times for the public from three to two minutes per turn.

Some other agenda items relate to site plans and brownfield plans.

Details of the meeting agenda are available on the city’s Legistar system. Readers can also follow the live meeting proceedings on Channel 16, streamed online by Community Television Network.

The Chronicle will be filing live updates from city council chambers during the meeting, published in this article “below the fold.” The meeting is scheduled to start at 7 p.m.

6:39 p.m. Pre-meeting activity. The scheduled meeting start is 7 p.m. Most evenings the actual starting time is between 7:10 p.m. and 7:15 p.m. A couple dozen people are already here who are affiliated with Camp Take Notice, to speak about Pizza in the Park.

6:52 p.m. Sally Petersen (Ward 2) was the first councilmember to arrive. Aaron Seagraves, the city’s public art administrator, is also here, setting up for the presentation of the Golden Paintbrush awards. Public art commission members John Kotarski and Bob Miller have now arrived. Marcia Higgins (Ward 4), mayor John Hieftje, Stephen Kunselman (Ward 3) and Mike Anglin (Ward 5) are also now here.

7:02 p.m. Former councilmember and now 15th District Court judge Christopher Easthope is here. He has sat down with Nader Nassif, who’s a partner in a law firm that provides indigent representation for the court. Several agenda items tonight are related to the 15th District Court, all involving money. Margie Teall (Ward 4) and Higgins are talking with Easthope.

7:07 p.m. Pledge of allegiance, moment of silence, the roll call of council, approval of the agenda. All councilmembers are present and correct. Note the agenda change made before the meeting started: The item proposing changes to the council rules has been moved out of the council communications slot to the council business section of the agenda. So the intent is for it to get a vote tonight, not just be a point of communication – although a vote to postpone is still a possibility.

7:09 p.m. Proclamations – Golden Paintbrush Awards. This is the 14th annual presentation of these awards, which are given out by the Ann Arbor Public Art Commission to people and organizations who contribute to public art works that “add interest to our cityscape, beautify the community and create a sense of place.”

One of this year’s awards is going to John Carver, who commissioned “Spirit of Ann Arbor” for the Carver-Gunn Building on Liberty Street. It’s 16 feet tall made from cut powder-coated aluminum – a work created by Detroit artist Charles McGee. The other award this year goes to Vic Strecher and Jeri Rosenberg, who are being recognized for their support of organizations that have organized events like Festifools and FoolMoon. Public art commission chair Bob Miller is giving the introduction of the awards.

7:15 p.m. Public commentary. This portion of the meeting offers 10 three-minute slots that can be reserved in advance. Preference is given to speakers who want to address the council on an agenda item. [Public commentary general time, with no sign-up required in advance, is offered at the end of the meeting.]

A pending rule change to be considered at tonight’s meeting would limit speaking time to two minutes. Another pending rule change would address “frequent flyers,” by only allowing people to reserve time at the start of the meeting, if they did not speak during reserved time at the previous council meeting. Chronicle coverage of the possible rule changes can be found here: “Council Mulls Speaking Rule Changes.”

Eight of the 10 slots tonight are reserved for people to address the issue of Pizza in the Park. They’re speaking about a petition they delivered to the city, a copy of which is attached to the electronic agenda. Pizza in the Park is a homelessness ministry of the Vineyard Church that includes distribution of food and other aid at Liberty Plaza at Liberty and Division streets in downtown Ann Arbor. A few months ago, the parking of a vehicle in a private driveway and the subsequent application of a shelter rental fee by the city led to protests raised during public commentary at the council’s May 20, 2013 meeting. Assurance was given at that meeting that the Pizza in the Park event could continue. That was affirmed when speakers again addressed the issue at the council’s June 3, 2013 meeting.

Speakers on those occasions, many who are affiliated with Camp Take Notice, a self-governed homeless community, asked for a written assurance of the city’s commitment. A proposal is currently on the city’s park advisory commission’s June 18, 2013 agenda to consider waiving all fees associated with Liberty Plaza. That would need city council approval. Those signed up to speak tonight on this issue are: Peggy Lynch, Mark Douglas, David Williams, Jose Galofre, Michael Ramirez, Christine Kern, Sheri Wander, and Gregory Kerrick.

Thomas Partridge is the second speaker, who’ll be calling for the advancement of a civil rights agenda. Bob Galardi, a member of the city’s park advisory commission, will be addressing the council’s agenda item that calls for it to pledge up to $750,000 of general fund money for the 721 N. Main project. The city believes that it will receive grants to cover that amount, but the pledge is necessary in order to secure a different grant, for $300,000 from the Michigan Department of Natural Resources Trust Fund.

7:23 p.m. Peggy Lynch is first up. She takes the podium to applause. She describes the unmet and tragic humanitarian need in Ann Arbor. She thanked the council for the suspension of the fee at Liberty Plaza. But she’s hopeful that the gentleman’s agreement can be replaced with something in writing. David Williams echoes the request for a written commitment.

7:25 p.m. Thomas Partridge assures the council that if he were elected mayor or councilmember, he would be giving voice to the concerns of the residents of Camp Take Notice. He calls for the advancement of Dr. Martin Luther King’s civil rights agenda. He recalls the “I have a Dream” speech.

7:31 p.m. The next several speakers will be addressing the council on the topic of Pizza in the Park and humanitarian aid. Jose Galofre is addressing the council through a sign language interpreter. He calls for the passage of an ordinance – put down in writing for the future. Michael Ramirez tells the council he has medical issues that require him to go to the University of Michigan health system. Christine Kern tells the council she lives on the street with her boyfriend. They’ll be sleeping outside tonight. She recites a definition of basic human rights, and asks the council to enact an ordinance that protects the right to distribute humanitarian aid on public land.

7:39 p.m. Bob Galardi is addressing the council on the MDNR grant application in connection with the city-owned property at 721 N. Main. He’s speaking on behalf of the Allen Creek Greenway Conservancy – he’s president of the conservancy’s board. Galardi asks the council for their support of the resolution later on the agenda that commits the city to as much as $750,000 of general fund money for the project. The conservancy, he says, is confident that the grant funding for which the city has applied will materialize. [That would mean that the city wouldn't need to spend that money.]

7:39 p.m. Council communications. This is the first of three slots on the agenda for council communications. It’s a time when councilmembers can report out from boards, commissions and task forces on which they serve. They can also alert their colleagues to proposals they might be bringing forward in the near future.

7:46 p.m. Christopher Taylor alerts the public to the fact that on the following day, June 18, the park advisory commission will be considering a resolution to waive fees for the use of Liberty Plaza. That would come back to the council for a final decision. Jane Lumm gives an update on opportunities for public input on the ReImagine Washtenaw project. Lumm also alerts her colleagues that a resolution on the public safety task force will be on the council’s July 1 agenda.

Mike Anglin calls for a focus on safety as people move around the city during the summer. He calls for the installation of stop signs to slow traffic on streets over which the city has control.

Sabra Briere tells the council she spent six hours today getting trained on “place making.” She learned a lot about certain types of zoning, she said. Ann Arbor is one of 14 major centers in the state. We shouldn’t think about ourselves in isolation, she said. We should think regionally and not try to mimic what others are doing, she said. John Hieftje refers to the book “The Economics of Place,” a publication of the Ann Arbor-based Michigan Municipal League.

7:49 p.m. Public hearings. All the public hearings are grouped together during this section of the meeting. Action on the related items comes later in the meeting.

Tonight, seven public hearings appear on the agenda. Two are for rezoning of annexed property: McMullen property at 3100 Geddes Ave.; and the Max property at 2503 Victoria Ave. One hearing is for a revision to the fireworks ordinance – that would restrict the use of fireworks on July 3-5 to the period between 8 a.m. and midnight on those days. Three developments are the subject of public hearings.

The State Street Center site plan is getting a public hearing after getting the rezoning associated with that site plan approved at the council’s previous meeting. And two public hearings are associated with the 544 Detroit Street “planned project” – the site plan and the brownfield plan.

Finally, the brownfield plan for the Packard Square development – site of the former Georgetown Mall – is getting a public hearing, because of an amendment to a previously approved plan.

7:51 p.m. Thomas Partridge is holding forth on the first rezoning hearing. Hieftje is admonishing him to stay on the topic. Partridge wants an ordinance attached to the rezoning that would require it to be used for affordable housing and give access to affordable transportation.

7:58 p.m. Partridge is now speaking during the public hearing for the fireworks ordinance revision. July 4 should be a celebration of civil rights and human rights, he says. He objects to celebrating the holiday with fireworks. The next speaker is Michael Benson, also addressing the topic of the fireworks ordinance. He asks the council to consider allowing people to apply for a permit to use fireworks on other days. He wonders what the other costs are in addition to the $500 fine.

8:01 p.m. Partridge now rises to speak during the public hearing about the State Street Center site plan.

8:11 p.m. Jeff Crockett rises to speak in favor of the 544 Detroit St. project. He calls it a responsive development. The site plan demonstrates serious consideration of citizen input. He says he knows of no one who opposes this project. He calls for zoning laws that are not driven just by statistics, but rather are value-driven. Partridge also speaks on the 544 Detroit St. project. And with his remarks on the Packard Square brownfield plan, Partridge has now had his say – until the end of the meeting, when there’s another opportunity for public commentary.

8:13 p.m. Todd McWilliams addresses the council. He tells Partridge that he was abusing the public hearings. Partridge tells McWiliams he’s abusing his civil rights and ends with “See you in court.”

8:13 p.m. The council has voted to go into closed session to discuss labor negotiation strategy.

8:38 p.m. The council is emerging from the closed session.

8:43 p.m. Council communications. Briere is explaining that she is not the chair of the ACLU. She was proud to be the chair a decade ago, but she is no longer the chair.

8:43 p.m. Minutes and consent agenda. This is a group of items that are deemed to be routine and are voted on “all in one go.” Contracts for less than $100,000 can be placed on the consent agenda. This meeting’s consent agenda includes:

• Summer Fun: Street closing for Art Fairs 2013.
• Courts: $30,000 for Sobriety Court grant program contract with the Washtenaw Community Health Organization (WCHO) to provide mental health treatment to 15th District Court defendants.
• Courts: $65,000 for Sobriety Court grant program contract with Dawn Farm to provide in-patient and out-patient drug abuse counseling to 15th District Court Defendants.
• Energy: $59,386 for contract with DTE Energy for LED streetlight conversion and rebate participation.
• Energy: $49,883 for contract with CDM Smith for wind generator project.
• Streets: $40,960 for materials testing contract with Professional Service Industries in connection with the W. Madison Street improvement project.
• Buildings: $31,618 for a contract with E.T. MacKenzie Company to demolish two buildings at 721 N. Main St.
• Software: $70,000 for a contract with Cogsdale Corporation for annual software maintenance and support.
• Copier Services: $25,000 per year increase to contract with Hasselbring Clark Service to provide services and support for the city’s Canon multifunction copiers, of which there are 46.
• Lobbyist: $48,000 contract with Governmental Consultant Services Inc., a Lansing lobbying firm. This is an annual contract.
• Economic Development: $75,000 contract with Ann Arbor SPARK for business support services.
• Minutes: Insurance Board minutes are included in the consent agenda.

8:45 p.m. Councilmembers can opt to select out any items for separate consideration. Lumm asks to pull out the wind energy item. Briere wants to pull out the Dawn Farm grant and the demolition contract at 721 N. Main.

8:50 p.m. The Dawn Farm grant is now under discussion. Briere says she’s not satisfied with the answers she’s received to questions she has asked about the living wage ordinance exemption that’s been requested by Dawn Farm. She wants to know if the item can be postponed. Judge Joe Burke, who runs the Sobriety Court, explains that the court’s application for a grant is due this Friday – so postponement would be difficult. Burke says he was the one who’d asked for the living wage ordinance exemption. Jim Balmer, executive director of Dawn Farm, had reported that Dawn Farm can’t comply with the living wage. Burke is explaining the importance of the work that Dawn Farm does in support of the Sobriety Court.

8:52 p.m. Briere says she doesn’t see a process in the application for the living wage exemption that would eventually lead to compliance. Just as working toward sobriety has steps, she says, working toward financial solvency also has steps. Her problem is with the exemption, not the contract. Briere votes against it as the sole vote of dissent. She says she doesn’t need a roll call vote.

8:56 p.m. We’re on to the wind generator project. Lumm reports that the proposal is to place a wind turbine at Pioneer High School. She complains about the lack of community outreach. Sumi Kailasapathy is now addressing the issue. She reports that she’s received a letter from a UM physics professor – Gregory Tarlè. She reads aloud some concerns outlined by him. Power grows as the cube of wind velocity, and turbines should be sited accordingly. The only thing this turbine will teach students is that if you place a windmill where there’s no wind, then it won’t move. She didn’t think that’s worth $1 million. It’s not too late, she said. She allows that it’ll be federal dollars, but that’s still taxpayer money and it’s the council’s duty to be a good steward, she says.

9:02 p.m. Briere asks for staff to come to the podium. Now at the podium are Brian Steglitz and Craig Hupy. Briere asks Steglitz to explain why it’s a good project. He characterizes it as a demonstration program. The city went through a competitive project to obtain the grant, he says. The partnership with Wind Products includes a guarantee that it’ll produce a minimum amount of energy. The project is also part of the city’s goal to generate alternative energy, Steglitz says. The power that the school will purchase from the developer will cost less than conventional power.

Petersen asks for more information about the Ann Arbor Public Schools participation in the project. If AAPS cuts its budget, will it possibly cut support for the turbine? Steglitz says that AAPS will lease the space for the turbine and purchase the power. That’s the extent of AAPS participation. Petersen ventures that AAPS will have a financial upside. Yes, says Steglitz.

9:14 p.m. Craig Hupy, public services area administrator, explains that the item approves funding to look at the environmental impact of the turbine. Lumm again cites the same letter from the UM physics professor that Kailasapathy had mentioned. Higgins asks how the public will be notified about the public engagement process. Steglitz says that the intent would be to broaden the scope beyond the 500 foot requirement. He describes the city’s public engagement “toolbox.” Higgins wants to know when. Steglitz explains it’d be in the next six months. The environmental review is expected to be done by the end of the year, Steglitz says.

Higgins ventures that it’ll be a lively debate about whether a wind turbine should go there. Steglitz describes the city commitment as around $18,000 of staff time. Higgins is willing to let that debate unfold and not get in the way of it. She confirms with Hupy that before any further city commitment is made, the council would have to approve it. Kunselman asks for a refresher on the height of the pole. Steglitz says it’d be about 120 feet with a 60-foot diameter blade. Kunselman says it’s not really a “turbine” but rather a generator. Kunselman’s day job at UM is as energy liaison with Planet Blue. He feels that the generator will actually be generating a decent amount of electricity given its educational, demonstration purpose. Anglin weighs in for the project based on its educational impact. Kailasapathy asks if the estimates for energy production were independently verified.

9:28 p.m. Lumm notes she voted for the acceptance of the federal grant. But she’s learned a lot since that vote was taken. She won’t support it. Briere ventures that public outreach won’t happen unless the city hires a public outreach firm. That process will help determine whether this is an appropriate site, she ventures. Steglitz confirms that’s correct. She wonders what the alternative locations are. Steglitz says there aren’t any. Hupy indicates the city has looked extensively, even as far north as East Lansing – with a maize-and-blue pole, he quips. City administrator Steve Powers assures the council that Hupy is not joking about the idea of trying to find a location in East Lansing.

Petersen wants to know if anyone from AAPS is here to talk about the educational component. Apparently there is not. Kailasapathy says that she doesn’t understand the educational benefit if it were located in East Lansing. Hupy says utility regulations require that the power is consumed on the site where it’s generated. Kailasapathy raises objections about noise. Steglitz explains that the noise issue will be part of the environmental assessment. Kunselman stresses that the UM professor’s letter is talking about wind-farm sized turbines, not the size of the generator that the city is considering. It’s a 60 kW wind generator that will be running about 30% of the time. And part of that time, students will have the opportunity to look at a data center that shows all the data. That’s the educational effort. And the money is Dept. of Energy grant money, not city money. Kunselman concludes that the city should move forward with it.

Hieftje weighs in for the resolution. He says it’s worth exploring the next stage. Hieftje says he wants to follow the lead of the DoE. Lumm responds to Hieftje’s argument. She questions whether the DoE is aware of the power generation estimates. Hieftje ventures that DoE is aware of the educational nature of the project.

Outcome: This item gets a roll call vote. No votes are Petersen, Lumm, Kailasapathy.

9:32 p.m. The council is now on to the 721 N. Main building demolition. Briere pulled it out for separate consideration just to highlight it, not because it was controversial. Anglin asks city floodplain manager Jerry Hancock to the podium. Anglin asks about other grant opportunities from FEMA, which is funding this demolition. Anglin asks for the floodway maps so that councilmembers know which houses are in the floodplain. Hancock explains that the new maps have been in place since last April. Hancock tells Anglin that he sent him the requested information last week.

9:32 p.m. The council has now passed all of the consent agenda items.

9:33 p.m. FY 2013 Budget: Year-end maintenance. This is a year-end budget adjustment to bring it into closer alignment with the actual expenditures. [.pdf of proposed amendments] The general fund total adjustment is to increase it by $567,000. Of that, a significant part is attributable to the 15th District Court – including $112,000 in salary increases based on an interest in retaining employees, $203,000 due to a “catch up” payment to the law firm that provides indigent representation, and a back-bill for security from Washtenaw County for two fiscal years for $110,000.

9:34 p.m. Briere proposes an amendment that eliminates the budget adjustment for the salary increases. She objects that regular processes weren’t followed. She ventures that the chief judge overstepped her bounds. Briere was not satisfied with the mechanism. She calls the wage increases “not properly done.”

9:34 p.m. Here’s a memo from 15th District Court administrator Keith Zeisloft. [.pdf of responses from 15th District Court to councilmember inquiries] Responding to a question about the ability of the city council to control the court’s spending decisions, the memo states:

Although City Council has authority to establish a total annual budget for the Court, and with all respect due to Council, the Court declines to accept that City Council has authority to direct, control, approve or disapprove specific expenditures, including but not limited to compensation of judicial employees. However, legalities aside, the Court has always sought a respectful and cordial relationship with Council and City Administration, and the Court’s budget history demonstrates that the Court has been a prudent and careful custodian of public funds, at times even to the disadvantage of the Court’s own interests.

9:38 p.m. Lumm asks Zeisloft to the podium. Zeisloft defers to the judges who are all here. Judges Christopher Easthope, Elizabeth Hines and Joe Burke are all standing at the podium. Lumm asks about the salary increases – which were implemented in October 2012. Lumm asks for a breakdown of the amount. Zeisloft breaks down the $112,000 adjustment. The annual impact is calculated at $193,000. Lumm asks for that information to be provided in writing.

Judge Hines is now addressing the council. She respects the separation of powers. But the chief judge has the authority to increase salaries, she says. The court has never asked the city for permission to do that in her 22 years on the bench. She points out the money that the court has managed to return to the city in past years when they’ve come in under budget.

9:46 p.m. Hines talks about the challenge of retaining employees. She describes past pay cuts. She describes a gross disparity in pay. She said the court had worked with the city’s HR department, but did not ask permission, she said. The court is not overpaying its employees by any means, she said. She felt the pay raises were only reasonable.

Kailasapathy disagrees with the narrative of the “honorable judges.” She cites the decrease in cases handled by the court. The workload has come down, Kailasapathy says. The cost savings of 3.4% that the court had achieved should be seen in that context, Burke says. Easthope says the court was trying to be in the lead in reducing its costs. The caseload went down, but the number of employees also went down, he said. Hines said that the kind of cases that went down were not the kind that reduce judge and staff time. Hines returned to the challenge of retaining employees as the basis for the salary increases.

Briere says she’s not unsympathetic to the situation. But she felt it should have been considered as part of the standard budgeting process. The money should have been built into the FY 2013 budget, Briere says. She agrees with the need to compensate the court staff. But a standard increase in salary should have been included in the budget.

9:52 p.m. Burke tells the council that when he became a judge, Hines and Easthope had sat him down and talked to him about the employees. He says that in making the salary increases, they had followed the normal procedures that anyone would in determining the amounts of the increases. The one thing that they had not done was ask the city council. Burke said they felt that the salary increases would come in within the court’s FY 2013 budget – but they were wrong.

Kailasapathy is now citing a Michigan Supreme Court administrative order that appears to say that if the court uses a line item budget, there are restrictions on what the court can do.

From Administrative Order No. 1998-5, which applies to district courts, among others.

II. COURT BUDGETING If the local funding unit requests that a proposed court budget be submitted in lineitem detail, the chief judge must comply with the request. If a court budget has been appropriated in line-item detail, without prior approval of the funding unit, a court may not transfer between line-item accounts to: (a) create new personnel positions or to supplement existing wage scales or benefits, except to implement across the board increases that were granted to employees of the funding unit after the adoption of the court’s budget at the same rate, or (b) reclassify an employee to a higher level of an existing category. A chief judge may not enter into a multiple-year commitment concerning any personnel economic issue unless: (1) the funding unit agrees, or (2) the agreement does not exceed the percentage increase or the duration of a multipleyear contract that the funding unit has negotiated for its employees. Courts must notify the funding unit or a local court management council of transfers between lines within 10 business days of the transfer. The requirements shall not be construed to restrict implementation of collective bargaining agreements.

Zeisloft says that the court only submits a budget in a line item form as a courtesy. Tom Crawford, the city’s CFO, explains that the city requires all the units to submit line item budgets, but the city council authorizes the budgets by fund. Kailasapathy comes back to the administrative order.

10:07 p.m. Easthope says the council has the authority to set a lump sum budget for the court. But the council doesn’t have the ability to change line items, he says. Easthope describes the court as a separate branch of government. The Supreme Court administrative office had provided all the comparative data, he said. Hines had not simply said, “You get a raise and you get a raise …” Back-and-forth ensues between Kailasapathy and Zeisloft on how the HR department of the city had been involved in the compensation adjustment amount. No formal report had been requested from HR, Zeisloft says.

Chuck Warpehoski (Ward 5) asks for clarification of the administrative order on line item budgeting. Warpehoski asks what happens if the council doesn’t approve the adjustment. That is, what happens if Briere’s amendment passes. Crawford indicates that the city would probably get a comment on that in the city’s audit. The money has already been spent, Warpehoski points out. Crawford indicates agreement that it would be difficult to stop the expenditures in the next two weeks, when the fiscal year ends.

Lumm confirms with Crawford that court employee checks are processed through the city. Lumm says that the court’s budget seems to be “optional.” But Lumm ventures that there doesn’t seem to be an option to not make the adjustment. Easthope says the court was actually under the budget by $99,000. Lumm says she wants to follow up later on that. She says that Easthope’s remarks aren’t consistent with the information the council has received.

Kunselman appreciates that Burke had conceded that the court’s math was off. He asked what Burke thought the consequence should be: Should the council just cover the amount? In the short term, Burke says, yes. He says the court doesn’t spend money like drunken sailors. Burke ventures that the council would not want to hear next year that the court has the same issue.

10:18 p.m. Taylor ventures that it’s been a full conversation. It’s a simple question. The court has diligently determined that their line workers’ wages were below market. The council has approved the increases going forward, he says, when it approved the FY 2014 budget. Taylor says he’ll vote against Briere’s amendment. Hieftje confirms with Crawford that the budget resolution basically recognizes reality.

Briere says her intent is not to force the court into a deficit. Staff should not be penalized for the actions of their supervisors. She says she’ll withdraw her amendment. She says the court should have done a better job of communicating. She says she will remember this situation without fondness. Kailasapathy, who seconded the amendment, hesitated for several seconds before agreeing with Briere to withdraw.

10:30 p.m. With that amendment withdrawn, Petersen has moved on to the indigent representation and the security services issue. Zeisloft characterizes it as an unusual circumstance, that should not arise again in the future. Easthope notes that the special docket courts are operated at no cost to the city. Higgins asks why the salary increases were not undertaken during the period when the court was returning money to the city. If the court had the ability to give raises without asking permission from the city, why didn’t the court give the raises at that time – when the court had the money? Higgins complains that she felt blindsided.

Briere ventures that it’s easier to ask forgiveness than permission. She appreciated that the court felt a little bit picked upon. Burke objects to any analysis that would say the court tried to sneak something past the city, saying that’s an integrity issue. City administrator Steve Powers shares his perspective as a former county administrator. He accepted responsibility for not bringing the communication back from the court and not updating the council. Going forward, the consultation with the court would be important so that these issues don’t arise in the future. He stresses the importance of the two branches doing things in consultation, not confrontation.

10:30 p.m. Outcome: The council has voted to approve the FY 2013 budget adjustments over the lone dissent of Kailasapathy.

10:30 p.m. 15th District Court: Weapons screening contract. This is for a $160,000 contract with Washtenaw County sheriff’s office for weapons screening at the Justice Center, which houses the 15th District Court. The estimated annual cost is based on $25.25 per hour per court security officer. The estimated maximum annual cost of $160,000 is $27,000 less than last year. The money comes from the 15th District Court’s budget.

10:32 p.m. Lumm is questioning Zeisloft about the contract and how the estimate was calculated.

Outcome: The council has voted to approve the weapons screening contract.

10:32 p.m. 15th District Court: Indigent representation. Two resolutions are on the agenda related to the law firm that provides indigent representation for 15th District Court defendants. The first is for a flat fee $240,000 contract for representation of indigent defendants – with Nassif and Reiser, P.L.L.C. (f/k/a Funkhouser and Nassif, P.L.L.C.), d/b/a Model Cities Legal Services (“MCLS”). That’s for FY 2014. For the previous year, the council is also being asked to cover $203,000 of fees that accrued due to the delayed billing practice used by MCLS.

10:33 p.m. Taylor says that the contracting party is a client of his. He asks the council to vote to excuse him from voting. They do and he takes a seat on the hard bench.

10:39 p.m. Lumm asks Zeisloft if the court had considered issuing an RFP (request for proposals) for the service. Zeisloft describes the negotiation between the court and the law firm. He says that the court has not considered issuing an RFP, but it would be possible. Model Cities, however, provides the service at a very competitive cost, he says. Easthope explains that Model Cities doesn’t just stand in court – they provide far more than that. There’s a value that’s hard to represent – that doesn’t have to do with just the lowest price. Model Cities has a personal connection to all the social services agencies, Easthope says.

10:39 p.m. Outcome: The council has voted to approve the two resolutions related to Model Cities for legal services.

10:39 p.m. Ordinance: Outdoor advertising – Billboards. The ordinance change would restrict the way that digital technology could be incorporated into any signs. It would also prevent any digital technology retrofitting of existing billboards, and prohibit billboards generally – although the 28 existing billboards citywide would be allowed to continue as non-conforming structures. This has been given initial approval by the council and was up for final action twice before – most recently, on May 6, 2013. Action on May 6 was to postpone a final decision – until tonight. [.pdf file of map showing billboard locations in the city]

10:49 p.m. Taylor is introducing the item. He describes it as enforcing the status quo. There are some changes compared to the first reading. One is an exception for churches and schools. The definition of “changeable” copy has also been revised. Taylor says it’s important that billboards not expand beyond their current status.

Warpehoski says he’s heard close to zero support for expanding billboards to use digital technology – other than from those in the outdoor sign industry. He’d heard no support for digital signs to the point where he felt there was consensus.

Petersen says Ann Arbor wants to be a tech town, and preserving the status quo is too conservative. She cites the possible negative impact on economic development. It promotes blight by not allowing existing billboards to be removed and replaced with new ones. She’s going to oppose this ordinance change. MDOT relies on digital technology to convey messages, she points out. She calls for a more comprehensive look at the ordinance. It’s way too conservative for a town that wants to move forward with technology, she says.

Briere says that she thinks AAPS is unlikely to go ahead with a proposal to contract with Adams Outdoor Advertising on school property. Two of the proposed digital signs were in Ward 1. They didn’t make her happy. She conceded she was perhaps an old fogey.

Lumm thanks staff for all their research and their work. She thinks the proposals are reasonable. She’ll be supporting the ordinance change.

10:53 p.m. Anglin thanks staff for their work. He says it’s clear that the community doesn’t want any more visual intrusion. It’s not an anti-business proposal, but rather a pro-community move, he says.

10:53 p.m. Outcome: The council has voted to give final approval to the billboard ordinance, over dissent from Petersen and Higgins.

10:54 p.m. Ordinance: Rezoning – McMullen and Max properties. Both of these rezoning requests have already received initial approval. The zoning is from TWP (township) zoning to residential in both cases.

10:54 p.m. Outcome: The council has voted to approve the rezoning of these properties, which are being annexed into the city.

10:55 p.m. Ordinance: Fireworks time restrictions. The revision to the fireworks ordinance was given initial approval at the council’s June 3. 2013 meeting. The impact of the ordinance change would be to restrict the use of fireworks on July 3-5 to the period between 8 a.m. and midnight on those days. The ordinance change is made possible by a recent change to state law. Gov. Rick Snyder is expected to sign it into law before July 4.

10:57 p.m. Outcome: The council has voted to give final approval to the fireworks ordinance.

10:59 p.m. The council is now in recess.

11:06 p.m. Ordinance: Video privacy. Now back from recess, the council is taking up a new ordinance that would regulate the way local law enforcement officials can deploy surveillance cameras. In some cases, resident approval would be required. The ordinance has appeared several times previously on the agenda, but has not yet received initial approval. Most recently it was postponed on May 6, 2013. (All ordinances, per the city charter, need an initial approval from the council, followed by a public hearing and a final vote taken at a subsequent meeting.)

11:20 p.m. Chuck Warpehoski is introducing the ordinance. Chief John Seto is out of town. Warpehoski is asking his colleagues to move the change forward to second reading. He characterizes it as a balance between the right to privacy and the interests of law enforcement. He ventures that there’s a lot on the agenda. So he suggests a more in-depth discussion when it comes back for second and final reading.

Petersen asks for clarification of some changes. Briere thanks Warpehoski for his work, but says that this ordinance is not her favorite idea. Lumm says she was hoping it would be postponed. She points to the fact that Seto is not here. She also notes that new revisions had been given to the council only last night. She doesn’t think the council should pass ordinances at the first reading just to get them to the second reading. Lumm won’t support it.

Kunselman appreciated Warpehoski’s work to bring the ordinance forward. But he feels it’s a solution in search of a problem. He knew he wouldn’t support it when it came to the second reading. He feels it tied the city administrator’s hands. Privacy is already protected, he says. Surveillance cameras do work, he says, giving the West Willow neighborhood as an example. He asks: Where’s the budget for this? Asking the city administrator to run around getting permissions from residents didn’t seem sensible, he said.

Kailasapathy indicates support for postponement. She moves for postponement. Warpehoski seconds that motion. Taylor indicates support for the postponement. He said he’d have probably been inclined to support it at first reading.

11:20 p.m. Outcome: The council has voted to postpone the video privacy ordinance until July 1, when police chief John Seto will be available.

11:21 p.m. Ordinance: Fire code. This first reading of the ordinance would amend Chapter 111 (Fire Prevention) of the city code so that it refers to the 2009 International Fire Code instead of the 2003 version.

11:30 p.m. Warpehoski says that he’ll support the ordinance at first reading, but he has some concerns about the inspection of certain areas. Lumm asks fire chief Chuck Hubbard about frequency and cost of fire inspections. He contrasts inspections with re-inspections. If there are violations found, then an inspector will return to confirm that the violation has been corrected. Hubbard allows that inspections have been stepped up. It’s being done for the benefit to the property owners, he says.

Powers says that the performance of the fire inspection program is being reviewed. Kunselman notes that the building department is already using the 2009 code, but the fire department is using the 2003 code. What are the differences? Kunselman gets confirmation that the council’s approval is more or less a formality. It’s like “housekeeping.” Anglin asks how many staff are allocated. Hubbard says it’s been increased from three people to seven. Anglin feels the overall safety of the community is being improved.

11:31 p.m. Taylor says he’s delighted that the city is conducting more fire inspections.

Outcome: The council has voted to give initial approval to the adoption of the 2009 fire code.

11:31 p.m. CTN truck upgrade. The upgrade is for high-definition production equipment for the Community Television Network (CTN) truck. The $77,711 contract with VTP Inc. was included as part of the FY 2013 budget, according to a staff memo accompanying the resolution.

11:31 p.m. Outcome: The council has voted without discussion to approve the CTN truck upgrade.

11:31 p.m. Resolution of commitment: 721 N. Main. This is a resolution of commitment from the council that it’s willing to spend up to $750,000 of city general fund money to undertake planned improvements to the city-owned property at 721 N. Main. If the city’s plan unfolds as it expects, then none of that general fund money would be needed. Of the $1.2 million estimated cost for the trail and stormwater improvements to the site, the city plans to use $150,000 from the city’s stormwater fund. To cover part of the remaining $1.05 million, the city hopes to use $600,000 from a grant it hopes to receive from the Michigan Dept. of Transportation (MDOT) and the Southeast Michigan Council of Governments (SEMCOG) – through SEMCOG’s transportation alternatives program (TAP). The council approved the application for the SEMCOG grant at its April 15, 2013 meeting.

To cover the remaining $450,000, the city hopes to use $150,000 from a Washtenaw County Parks & Recreation Connecting Communities grant and $300,000 from the Michigan Natural Resources Trust Fund (MNRTF) grant. The council approved the application for those last two grants at its Dec. 17, 2012 meeting. Tonight’s resolution comes in response to an MNRTF grant requirement that the council commit the city to funding the other grants itself – from general fund money – if the grants fail to materialize. The $750,000 figure comes from adding the $600,000 SEMCOG grant to the $150,000 Washtenaw County Parks & Recreation grant.

11:42 p.m. Briere stresses that the commitment is not an expenditure. Lumm thanks Briere for her service on the North Main Huron River task force. She’ll support it. Kunselman wondered if any park millage dollars would be spent on this project. Briere notes that the property is not a park. When will it be a park? asks Kunselman. That’s a decision for park advisory commission (PAC), not for her, Briere responds.

Taylor, who serves as an ex officio member of PAC, notes that park staff is sensitive to the funding requirements of maintaining existing parks. Hieftje describes the general context of 415 W. Washington and 721 N. Main and how the two city-owned properties fit into the context of greenway planning. Hieftje is talking about the need to focus on the provision for long-term maintenance. Anglin says it’s important that this resolution commits money. He says a chain of parks through the city – like the greenway – would have a positive economic impact.

11:42 p.m. Outcome: The council has voted to commit the funds for the 721 N. Main site.

11:43 p.m. Opposition: SEMCOG long-range plan. This is a symbolic resolution opposing expansion of I-94 in Detroit and I-75 in Oakland County. The Washtenaw County board of commissioners passed a similar resolution at its June 5, 2013 meeting. The interstate highway expansion is a part of SEMCOG’s 2040 Regional Transportation Plan with an estimated cost of $4 billion.

11:45 p.m. Warpehoski says there are a lot of good elements in the SEMCOG plan. But there are not forecasts for additional traffic and population, so it didn’t make sense to expand the highways instead of maintaining. Warpehoski quotes Picasso: “Good artists copy, great artists steal.” He’s copied much of the resolution from others that have been passed, he says.

11:45 p.m. Outcome: The council has voted to pass the resolution opposing SEMCOG’s 2040 plan.

11:45 p.m. Ann Arbor Housing Commission operating support funding. The resolution, which provides $382,000 for operational support for the Ann Arbor Housing Commission (AAHC), is held over from the council’s June 3, 2013 meeting, when the council took several steps to move the commission forward along a path to converting the properties it manages to project-based vouchers. A similar operations funding resolution had appeared on that meeting’s agenda, but was withdrawn. Of the total amount, $159,000 is appropriated from the city of Ann Arbor’s affordable housing trust fund, and $223,000 would be appropriated from the general fund. The housing and human services advisory board has voted to recommend the $159,000 be appropriated from the city’s trust fund.

11:54 p.m. Briere introduces the resolution, noting that this resolution will empty the affordable housing trust fund – but it will receive $100,000 on July 1, because of the budget allocation the council passed. Kunselman asks Crawford if there were sufficient funds in the general fund reserve. Crawford projects a fund balance of $13.9 million at the end of the fiscal year. That’s about 17%. He does have some concerns, he says. At the end of FY 2015, based on the council’s recent action, the fund balance would be around 13%. In general, he has some concerns about how the fund balance is being used.

Powers notes that the current council policy is 8-12%. Hieftje reads aloud from the staff memo. Lumm thanks executive director of the AAHC Jennifer Hall for her work.

11:54 p.m. Outcome: The council has voted to approve the AAHC allocation.

11:54 p.m. Appointment: City planning commission. One of the city planning commission members is drawn from the city council. Since November 2012, Sabra Briere (Ward 1) has served in this capacity. Terms for planning commission members are made through June 30. The resolution extends her term until Nov. 7, 2013 at which point the membership on the new city council will be settled. Briere is unopposed in the Democratic primary. An independent candidate, Jaclyn Vresics, has taken out petitions to run for that seat but has not yet filed them with the city clerk’s office. The deadline for independent candidates to submit petitions is Aug. 7.

11:55 p.m. Outcome: The council has voted to approve Briere’s appointment to the planning commission.

11:55 p.m. FY 2014 Budget: Correction to park capital improvement millage rate. This resolution corrects the millage rate that was listed in the FY 2014 budget resolution that the council approved at its May 20, 2013 meeting. The park maintenance and capital improvements millage was listed at 1.0969 mills when it should have been listed as 1.10 mills– with the corresponding correction from the total millage rate from 16.4470 to 16.4501 mills. Measured in dollars, the correction is estimated to bring in an additional $14,460 in revenue.

11:56 p.m. Outcome: The council has approved the correction to the millage rate.

11:56 p.m. Council rules changes. For Chronicle coverage on these changes, see “Council Mulls Speaking Rule Changes.” Highlights include adding public commentary to council work sessions, but reducing public speaking time to two-minute turns. A “frequent flyer” rule would prevent people from signing up for reserved time at the start of a meeting two meetings in a row.

11:56 p.m. Higgins is introducing the proposed rules. She says that she’d like to see it postponed.

11:57 p.m. Outcome: With no further discussion, the council has voted to postpone the rules changes until July 1.

11:57 p.m. Site plan: State Street Center. The rezoning of the parcel for this site plan was given final approval at the council’s June 3, 2013 meeting. The project calls for demolishing a vacant 840-square-foot house on this site. In its place, the developer plans a one-story, 1,700-square-foot drive-thru Jimmy John’s restaurant facing South State Street.

11:57 p.m. Outcome: The council has voted without discussion to approve the State Street Center site plan.

11:58 p.m. Site plan and brownfield plan: 544 Detroit Street. The planning commission gave the 544 Detroit St. project a recommendation of approval at its Dec. 18, 2012 meeting. It’s planned to be a three-story building at 544 Detroit St. with offices on the first floor and residences on the upper two floors. It’s a “planned project” to allow an additional 3.5 feet of building height for a “decorative parapet” on the building’s north end and a stair enclosure to access a roof deck. [.jpg image of proposed design]

The two items on the council’s agenda for this project are the site plan approval and the brownfield plan. The parcel is the site of a former gas station. According to a staff memo, the brownfield component – which allows tax increment financing (TIF) to reimburse the developer for eligible costs – includes a total of $698,773 in eligible activities. Some of those eligible activities include soil remediation ($174,620), infrastructure improvements ($70,350), and vapor mitigation ($32,000).

11:58 p.m. Outcome: The council has voted to approve both the site plan and the brownfield plan for 544 Detroit.

11:58 p.m. Brownfield plan: Packard Square. This amends a previously approved brownfield plan for the former site of the Georgetown Mall. The amendment adds to the list of eligible activities – including underground parking and urban stormwater management. The total cost of eligible activities is not changed.

12:04 a.m. Higgins asks about payment of back taxes. Nathan Voght is fielding Higgins’ questions. Higgins notes that the demolition is in progress. Voght gives an update. May 28 was the start of demolition. MDEQ indicated that additional asbestos mitigation was needed. Soil excavation to remove contamination is ongoing. A vapor barrier will probably need to be installed. He thinks by mid-July the demolition will be done. The developer indicates that construction would begin as soon as possible after that. Higgins says that residents are pleased to see the project going forward. Hieftje thanks Higgins for her efforts.

12:04 a.m. Outcome: The council has voted to approve the Packard Square brownfield amendment.

12:04 a.m. Street resurfacing: Packard from Anderson to Kimberly. This is a contract with MDOT that the city will act as project manager on the resurfacing project. Total cost for the work is $1,447,900, with the city’s share working out to $620,900. The rest will be paid with federal funds.

12:05 a.m. Kunselman says he’s excited to see the project. It shows that investment is taking place along Packard. He ventures that it starts on June 22. Hupy says he won’t swear to that date, but it will happen soon. The contract hasn’t been awarded yet, he cautions.

Outcome: The council has voted to approve the street resurfacing contract.

12:05 a.m. Drinking water system: Pump station electrical upgrade. The contract with Shaw Electric Company to upgrade electrical systems for the city’s drinking water system is worth $2,619,000. The work would cover replacement of the primary and secondary switchgear at Barton Pump Station and replacement of electrical controls and a check valve at South Industrial Pump Station.

12:06 a.m. Outcome: The council has voted without discussion to approve the contract with Shaw Electric.

12:06 a.m. Development agreement: The Varsity. This resolution approves a revision to the development agreement for The Varsity, a 13-story, 177,180-square foot apartment building containing 181 dwelling units (415 bedrooms) and 78 off-street vehicle parking spaces. A minimum of 76 off-street parking spaces were required. Only 69 were provided onsite. The others were provided through the contribution in lieu (CIL) program. The seven spaces were approved by the Ann Arbor Downtown Development Authority at its June 5, 2013 meeting. The Varsity is located at 425 E. Washington St. in downtown Ann Arbor.

12:07 a.m. Briere recites the background of the situation.

Outcome: The council has voted to approve the revision to the development agreement.

12:07 a.m. Labor contracts: Wage increases. Re-openers for the final year of their contracts resulted in new contracts with six police department unions, which the council is being asked to approve on separate votes: Teamster Civilian Supervisors, Teamsters Local 214; Police Professional Assistants, Teamsters Local 214; Ann Arbor Police Officers Association – Police Service Specialists; Command Officers Association of Michigan; Ann Arbor Police Officers Association; and Deputy Chiefs, Teamsters Local 214.

Common to all the contracts are a 2% wage increase starting July 1, 2013 and a 1% increase starting Jan. 1, 2014. Also common to the contracts is the acceptance of the change in pension board composition, which was approved by voters on Nov. 8, 2011 with a 68% majority. The change retained the body as a nine-member group but distributed them differently: (1) the city controller; (2) five citizens; (3) one from the general city employees; and (4) one each from police and fire employees. Eliminated from the mix was the city administrator.

Membership in these unions breaks down as follows: Deputy Chiefs (2); Teamster Civilian Supervisors (35); Teamster Police Professionals (5); AAPOA (90); COAM (22); and Police Service Specialists (5).

12:11 a.m. Higgins thanks staff. It’s the first time since she’s been on council that all the contracts have been resolved before expiration. Lumm thanks the staff and recites the nature of the agreements.

12:12 a.m. For the AAPOA an administrative correction was made to the phone allowance – $600, instead of $550.

12:13 a.m. Outcome: The council has voted to approve all the police department union contracts.

12:13 a.m. Appointments: Among those to be confirmed tonight, having been nominated on June 3, are Bonnie Bona to the planning commission and LuAnne Bullington to the taxicab board.

Although Tony Derezinski’s name had appeared on the list distributed to the council at the June 3 meeting as a nomination to the city planning commission, and was reported (mistakenly) by The Chronicle as having been nominated, Derezinski’s name was not actually read aloud that evening. On the council’s agenda is a different nomination, who will replace Derezinski – Jeremy Peters. Peters works in creative licensing and business affairs, with Ghostly Songs.

Derezinski was filling out the remainder of Evan Pratt’s term – through June 30, 2013. Pratt was elected as Washtenaw County water resources commissioner in November 2012 and resigned from the planning commission. At its Nov. 8, 2012 meeting, the council had voted, over dissent from Lumm, to appoint Derezinski to that partial term. Up to that point, he’d served as the city council’s representative to the planning commission, but he did not prevail in the August 2012 Democratic primary in his Ward 2 race against Sally Petersen.

Also up for confirmation by the council are nominations to the downtown citizens advisory council.

12:14 a.m. Outcome: Without discussion, the council confirms all the appointments in one vote.

12:15 a.m. Public commentary. There’s no requirement to sign up in advance for this slot for public commentary.

12:31 a.m. Thomas Partridge takes the podium. He expresses disappointment with the council and the mayor for leaving the city without sufficient affordable housing. He says they lack the courage to stand up and bring the facts to the voters for support of tax increases to fund what’s needed.

Diane Chapman introduced herself as a resident of Ann Arbor Housing Commission properties. She reports that she’s been physically attacked and complains about the lack of response by AAHC.

Seth Best and Peggy Lynch address the council on the idea of the fee waiver for Liberty Plaza. They’d like something in writing and they’d like it to be possible for humanitarian aid to be distributed in any park. Caleb Poirer says it feels wonderful staying up late with the council. He asks the council to wrestle with the language that would make an ordinance work to allow humanitarian aid to be distributed. He thinks there’s a lot of people who want to do kind things, and not let fees get in the way.

Michael Benson thanks the council for staying late. He commends the rules committee, saying that the proposed rules represent a step forward. He suggests that when people hand over written remarks to the clerk, those documents should eventually be added to the agenda. He tells the council they should consider constraining their own question time during the meeting. He also suggests that reserved time be confined to true action items.

Jeff Hayner said he thought it’s great that someone talked about the rules. He agreed with Benson’s point about the ability to submit written remarks.

12:31 a.m. Adjournment. We are now adjourned. That’s all from the hard benches.

A sign on the door to the Ann Arbor city council chambers gives instructions for post-meeting clean-up.

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Door to the Ann Arbor city council chamber.

The council will be asked to vote on a series of resolutions related to a proposed conversion of the city’s 355 public housing units to a project-based voucher system under HUD’s Rental Assistance Demonstration (RAD) program. The council had been briefed at a Feb. 11, 2013 work session on the details of the proposal.

Key steps the council will be asked to take on June 3 include transferring ownership of properties managed by the Ann Arbor Housing Commission (AAHC) from the city of Ann Arbor to the AAHC. Because it involves the transfer of a land interest, approval will require an 8-vote majority on the 11-member council. The properties would eventually be owned by a public/private partnership. The AAHC selected a co-developer earlier this year at its Jan. 10, 2013 meeting.

AAHC is seeking to undertake with this initiative in order to fund several million dollars worth of needed capital improvements. On the RAD approach, they would be funded in large part through low-income housing tax credits (LIHTC).  The council will also be asked to approve a payment in lieu of taxes to the AAHC, so that no property taxes will be owed by AAHC.

The AAHC had originally conceived of converting its properties to project-based vouchers in phases over a few years. The impact of federal sequestration had led AAHC to contemplate converting all the properties this year, to soften part of that impact. However, a hoped-for change in HUD’s rules that would allow the all-in-one-go approach was not made, AAHC learned last week. So “Scenario 3″ described in the staff memo accompanying the council resolution is no longer possible. The negative financial impact of that HUD decision totals around $550,000 over the course of three years.

On the public  transportation side, the council will be asked to approve a change to the articles of incorporation for the Ann Arbor Transportation Authority. The change will admit the city of Ypsilanti as a member of the authority, and expand the AATA board from seven to nine members. The name of the authority would change to Ann Arbor Area Transportation Authority. One of the board members would be appointed by the city of Ypsilanti.

The request comes in the context of a demised attempt in 2012 to expand the AATA to all of Washtenaw County. Since then, conversations have continued among a smaller cluster of communities geographically closer to Ann Arbor. Previous Chronicle coverage includes “Ypsilanti a Topic for AATA Planning Retreat” and “Ypsi Waits at Bus Stop, Other Riders Unclear.”

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

Other significant items on the council’s June 3 agenda include a resolution encouraging the Ann Arbor Downtown Development Authority to allocate funding for three police officers. The council will also be considering a final vote on ordinance changes to which it’s already given initial approval: public art (eliminating the 1% capital project budget set-aside); utility rate increases (an annual item); and a reduction in utility improvement charges imposed on first-time connections.

In anticipation of the upcoming July 4 holiday, the council may also take initial action on an ordinance that would restrict use  of fireworks to the hours of 8 a.m. to midnight. The local regulation is only possible as a result of a change in the state law that has been passed by the Michigan House and is expected to be ratified and signed into law before July 4. The item had not yet been added to the city council’s agenda as of 4 p.m. today.

Other agenda items are available on the city’s Legistar system. Readers can also follow the live meeting proceedings on Channel 16, streamed online by Community Television Network.

The Chronicle will be filing live updates from city council chambers during the meeting, published in this article “below the fold.”

4 p.m. Scheduled meeting start time is 7 p.m. Live updates will start shortly before then.

6:46 p.m. Pre-meeting activity. The scheduled meeting start is 7 p.m. Most evenings the actual starting time is between 7:10 p.m. and 7:15 p.m. A dozen or so people are already here. Most appear to be here for the annual historic district commission awards. City planner Jill Thacher is here. She provides staff support for the HDC. Framed awards are sitting on the speakers podium next to the yellow printed agendas.

6:59 p.m. The council chambers are nearly filled. Julie Steiner and several other affordable housing advocates are here. Ed Shaffran is across the room, possibly here to receive one of the several awards from the historic district commission. Mayor John Hieftje, Mike Anglin (Ward 5), Sumi Kailasapathy (Ward 1), Sally Petersen (Ward 2) and Marcia Higgins (Ward 4) are in council chambers. Other councilmembers haven’t arrived.

7:12 p.m. Pledge of allegiance, moment of silence and the roll call of council. Introductory elements are now complete, including the pledge to the flag. [At the Ravens Club restaurant downtown, resting on the piano is a song book called "I Pledge Allegiance to the Flag" – a 1941 era printing. The pledge printed on the reverse does not include "under God," which was added in 1954 on Flag Day, June 14.] All councilmembers are present except for Chuck Warpehoski (Ward 5).

7:13 p.m. Proclamation. Now up is a mayoral proclamation recognizing the efforts of the 2|42 Kids Care Club assisting with the A2 Downtown Blooms Day event last month.

7:16 p.m. Historic District Commission preservation awards. The HDC presents these awards annually. By custom, they’re presented at a meeting of the city council.

7:21 p.m. These are the 25th annual HDC awards. There are 19 awards in six categories. First up is 420 W. Huron (Ann Arbor School of Yoga). Newcombe Clark, whose mother operates the yoga school, is here to document the presentation photographically. The property is owned by Ed Shaffran. Next up is 120 Packard (Lottie Van Curler). Ray Detter is accepting the award. Another award goes to 719 W. Washington (John Mouat and Lisa Mouat Snapp). Mouat is an architect. He’s also a member of the Ann Arbor Downtown Development Authority board, as is Newcombe Clark.

7:29 p.m. Next up is 711 W. Washington (Jayne Haas and Marie Coppa), followed by awards for 212 Third Street (Susan Fisher), 222 N. Seventh (Tom Fricke and Christine Stier), 1550 Washtenaw Ave. (Zeta Tau Alpha), 1850 Washtenaw Ave. (Gregory and Margene Henry), 1115 Woodlawn (Christa and John Williams), and 2505 Geddes (Eugene and Martha Burnstein).

7:37 p.m. More HDC awards: 1425 Pontiac (David and Bethany Steinberg), 3081 Glazier (Constance and David Osler). Special merit awards: Kristi Gilbert (HDC volunteer), Cobblestone Farm Association board, 116 W. Huron bus depot sign (First Martin), 226 S. Main Marquee Restoration – Lena (2mission design & development). A centennial award goes to Hill Auditorium (University of Michigan). The preservationist of the year for 2013 is Pauline Walters.

7:40 p.m. The last award is the project of the year: 1331 Hill Street (Delta Upsilon Fraternity). That concludes the Historic District Commission awards.

7:41 p.m. Public commentary. This portion of the meeting offers 10 3-minute slots that can be reserved in advance. Preference is given to speakers who want to address the council on an agenda item. [Public commentary general time, with no sign-up required in advance, is offered at the end of the meeting.] Tonight’s lineup for reserved time speaking is: Thomas Partridge, Seth Best, Antonio Benton, Nicholas Goodman, Mark Turner, Margaret Lynch, Julie Steiner, Bob Miller, Jeffrey Crockett, and Peter Nagourney.

7:44 p.m. Partridge is here to advance the cause of human rights and civil rights, affordable housing, public transportation for all residents, especially those with disabilities and seniors. Several speakers after Partridge are here to speak on behalf of Camp Take Notice.

7:52 p.m. Best asks everyone in the audience to stand who’s attending the council meeting to support Pizza in the Park. A couple dozen people stand up. He thanks the mayor and staff for their efforts to ensure that the program, sponsored by the Vineyard Church, can continue. The program distributes food and other aid to the homeless community in Liberty Plaza. He hopes for something in writing. Goodman described an increased police presence that he perceived as designed to break up tent communities. Benton also thanks the mayor and the council for agreeing to allow the Pizza and Park to continue. He describes himself as a full-time student, but also homeless. Pizza in the Park is the one meal that many in the homeless community get.

7:55 p.m. Mark Tucker quips that his name, spelled “Turner” on the agenda, “has been misspelled worse.” He speaks in support of public art. He notes that the newly proposed ordinance includes language acknowledging the positive impact that government can have in supporting the arts. He speaks in favor of episodic and temporary public art. [Tucker is co-founder of the annual FestiFools parade in downtown Ann Arbor.] He hopes that the revised ordinance signals the beginning of a dialogue.

7:59 p.m. Julie Steiner of the Washtenaw Housing Alliance comments on the transfer of city-owned properties to the Ann Arbor Housing Commission. She points out that it’s unusual for a municipality to own the property. She allows that the proposed RAD conversion sounds complicated, but she calls it a win-win for all of us. It will allow renovations that could not be done with federal HUD funding. She warns that the properties could fall into a disastrous state of affairs, if this option is not pursued. Even Albert Berriz has been doing this in Florida and Texas for a number of years, she says. [Berriz is CEO of McKinley Inc., a real estate management firm.]

8:06 p.m. Bob Miller, chair of the Ann Arbor Public Art Commission, is speaking on behalf of himself. He’s addressing the items on the agenda related to public arts funding. He suggests that the council add to the ordinance a requirement that private construction contribute to a public art fund.

8:10 p.m. Jeffrey Crockett congratulates winners of the historic district commission awards. He thanks Jill Thacher for her staff support. He criticizes the provision for “mitigation” of landmark trees in the zoning code. He concludes there is no meaningful protection for landmark trees in the D1 zoning code. Crockett is responding to the 413 E. Huron project, which the council approved last month. That project involved mitigation of landmark trees. Peter Nagourney also comments on the 413 E. Huron project. He criticizes the council’s decision to approve the project, based on the threat of a lawsuit. Steve Kaplan also addresses the issue of the 413 E. Huron project. He calls the project emblematic of problems to come. He focuses on the possible traffic issues that the project could cause.

8:10 p.m. Council communications. This is the first of three slots on the agenda for council communications. It’s a time when councilmembers can report out from boards, commissions and task forces on which they serve. They can also alert their colleagues to proposals they might be bringing forward in the near future.

8:23 p.m. Sally Petersen (Ward 2) announces a townhall meeting to be hosted by her and wardmate Jane Lumm. Sabra Briere (Ward 1) reports from a May 22 meeting of the North Main Huron River task force and announced the next one. Mike Anglin (Ward 5) reports on a picnic in the greenway held on June 2. He says there’s still interest in the vision for establishing a greenway. Lumm reported that over the last week there were four ReImagine Washtenaw public meetings. If people couldn’t attend, they can find information on the project’s website. Christopher Taylor (Ward 3) refers to a 2008 email cited at the council’s previous meeting and attempts a defense of the DDA. Mayor John Hieftje explains what happened to cause a misunderstanding concerning Pizza in the Park. He gives an assurance that Pizza in the Park will be allowed to continue. Hieftje says there’s no legal basis for not being able to continue that event. City administrator Steve Powers alerts the council to the numerous street closures on their consent agenda. He also highlights another event: Red Fish Blue Fish at Gallup Park on June 9, to teach kids to fish.

8:23 p.m. Public hearings. Nine separate public hearings are on the agenda. All the public hearings are grouped together during this section of the meeting. Action on the related items comes later in the meeting. Two of public hearings are on proposals for rezoning, which have already received initial approval from the council – Parkway Place and State Street Center. The Parkway Place rezoning is from R3 (townhouse dwelling district) to R1B (single-family dwelling district). The State Street Center rezoning is from O (office district) to C3 (fringe commercial district).

Other public hearings include one for changes to utility rates (drinking water, sewer and stormwater) and one to adjust utility improvement charges. A change to the public art ordinance is also getting a public hearing, after the council previously gave initial approval to the change. Related items later in the agenda would return funds set aside for public art to their respective funds of origin.

A change to the city’s ordinance on the retirement system is also getting a public hearing. It affects one employee. It’s related to the contracting out of police dispatch services. Two property annexations are also receiving separate public hearings. Finally, a public hearing for the Miller Avenue sidewalk special assessment is on the agenda. No action will be taken on that special assessment tonight – it’s a public hearing only.

8:41 p.m. Through the first four public hearings, Thomas Partridge was the only person to speak at any of them. John Kotarski adds his commentary to the fifth one, on the public art ordinance. He disagrees with Partridge’s assessment on the merits of the Dreiseitl fountain in front of city hall. Kotarski – who is a member of the city’s public art commission – states that he thinks the proposed ordinance amendments will strengthen the public art program. He argues that the “baking in” of public art will result in more public art. He tells the council and the city administrator that he’s ready to help.

8:49 p.m. Partridge has now had his say and the public hearings are concluded.

8:51 p.m. Council communications. Briere identifies the relevant segment of Miller Avenue where the sidewalk assessment will be imposed as not passing in front of Miller Manor, as Partridge had implied during his comments at the public hearing. Public services area administrator Craig Hupy explains that eventually all curb ramps are supposed to be brought into compliance with the ADA.

8:52 p.m. Minutes and consent agenda. This is a group of items that are deemed to be routine and are voted on “all in one go.” Contracts for less than $100,000 can be placed on the consent agenda. This meeting’s consent agenda includes several street closing approvals, including:

• (June 16) Ann Arbor Inner Peace Festival
• (June 20) The Event on Main Street
• (June 26-30) Ann Arbor Jaycees Summer Carnival
• (July 4) Firecracker 5K
• (July 4) 4th of July Parade
• (Aug. 12) UA Block Party
• (Sept. 29) Leaders and Best 10K and 5K

8:54 p.m. Councilmembers can opt to select out any items for separate consideration, and Sabra Briere (Ward 1) pulls out an agreement with the Washtenaw County water resources commissioner to support rain gardens. She just wants to commend staff for their work.

8:54 p.m. Outcome: The council has now unanimously approved the consent agenda.

8:56 p.m. Parkway Place rezoning. This rezoning request from 490 Huron Parkway, from R3 (townhouse district) to R1B (single-family dwelling), was given initial approval at the council’s May 13, 2013 meeting. The council is considering final approval tonight. The proposal did not win approval from the city planning commission at its Dec. 18, 2012 meeting. At that meeting, planning commissioner Bonnie Bona said she couldn’t support the rezoning. With 70,000 people commuting into Ann Arbor each day, it didn’t make sense to build single-family homes in that area. The 5-1 vote meant that the project did not get the six votes it needed for a recommendation of approval.

8:56 p.m. Jane Lumm (Ward 2) thanks staff for their response to a question about unstable soils. Sabra Briere (Ward 1) notes that the recommendation of denial from the planning commission resulted from the attendance of only six of nine commissioners. She notes that the rationale for those voting for it – they thought it would be a benefit to the area.

Outcome: The council unanimously approved the 490 Huron Parkway rezoning.

8:57 p.m. State Street Center rezoning This rezoning request, from O (office) to C3 (fringe commercial), was given initial approval by the council at its May 13, 2013 meeting. The council is considering final approval tonight. The development is located adjacent to a new Tim Hortons restaurant, which opened last year. The project calls for demolishing a vacant 840-square-foot house on this site. In its place, the developer plans a one-story, 1,700-square-foot drive-thru Jimmy John’s restaurant facing South State Street.

Outcome: The council unanimously approved the State Street Center rezoning.

8:57 p.m. Utility rates (water, sewer, stormwater). Initial approval of the utility rate increases came at the council’s May 20, 2013 meeting. The council is considering final approval tonight. In terms of revenue generated to the city, the rate increases are expected to generate 3.55% more for drinking water ($739,244), 4.25% more for the sanitary sewer ($955,531), and 4% more for stormwater ($233,811). [.pdf of complete utility rate changes as proposed] The city estimates that the impact on an average customer will be a $20.66 per year increase in total utility charges.

Outcome: The council gave unanimous final approval to the utility rate increases.

8:57 p.m. Utility improvement charges These are charges that are due when a single- or two-family property connects to water and sewer for the first time. The charges are paid by either the contractor/developer or the property owner, depending on who makes the request for a connection. [.pdf of connection charge comparison] The council is considering a change in the approach to calculating the charges that would reduce them by about half – partly in an effort to remove what’s perceived as an obstacle to infill development on vacant parcels. The council gave initial approval of the change at its May 13, 2013 meeting. The council is considering final approval tonight.

9:02 p.m. Sabra Briere (Ward 1) announces that the city attorney’s office has recommended a change to the amendment. She reads aloud the change and allows that “it’s not entirely enlightening.” The change relates to property outside a development. The change is accepted in a friendly way. Jane Lumm (Ward 2) thanks staff for their work and expresses her support the ordinance change.

Outcome: The council gave unanimous final approval to the change in the utility improvement charges.

9:02 p.m. Public art ordinance change. This proposal would change the city’s public art ordinance, so that capital improvement projects are no longer required to set aside 1% of their budgets for public art – up to a maximum of $250,000 per project. Under the amended approach, city staff would work to determine whether a specific capital improvement project should have enhanced design features “baked in” to a project – either enhanced architectural work or specific public art. The council gave initial approval to the ordinance change at its May 13, 2013 meeting. Tonight the council is giving the change final consideration.

9:21 p.m. Margie Teall (Ward 4) thanks everyone, highlighting Sabra Briere (Ward 1), who did much of the work on the council’s task force. Teall doesn’t think it’s a perfect ordinance. She highlights the portion of the ordinance that she’d added, which Mark Tucker had noted during public commentary, about the government playing a role in supporting art. Briere also thanks everyone, including the staff. She notes that the task force didn’t have solutions for some things. As an example: how to pay for public art administration, and what to do with currently pooled public art funds.

Craig Hupy, public services area administrator, comes to the podium. He says he’ll give an engineer’s version of finance. Financing the administration of the public art program is a challenge. The municipal service charge wouldn’t be feasible, he says, because that charge is assessed “looking backwards.” Hupy indicated that it would be possible to craft a program supported by the general fund for an interim period, until the new program becomes fully functional. CFO Tom Crawford recommends that the council use the existing pooled funds that are set aside to get the program through the next two years. Sumi Kailasapathy (Ward 1) questions whether the pooled funds could be used, given the restriction on use of public funds in a way that’s linked thematically to the work of art.

Christopher Taylor (Ward 3) ventures that what’s needed is administrative support not for specific projects, but for those that are conceived. Jane Lumm (Ward 2) notes that the total of uncommitted funds that have been set aside in the public art fund is around $845,000. She suggests that maybe 10% of it could be retained as transition money to the new program. Crawford indicates that if money were pulled from the pooled funds, it would be done proportionally from the respective funds of origin.

9:21 p.m. Lumm proposes an amendment to the ordinance to allow the return of funds set aside in previous years to their funds of origin. It’s necessary in order to implement a resolution later on the agenda. Here’s her proposed added language:

(8) City Council may, at its discretion, amend the Fiscal Year 2014 budget or any subsequent budget to return to their respective funds of origin some or all uncommitted funds allocated for art prior to Fiscal Year 2014 under the prior Section 1:833, including funds that have been pooled in accordance with Section 1:834.

Briere and Teall weigh in against this amendment. Teall says that the public art program needs a full-time administrator. Stephen Kunselman (Ward 3) asks for clarification from assistant city attorney Abigail Elias.

9:29 p.m. Kunselman says he won’t support the amendment. He worked on the task force, he says, and there was a lot of compromise involved. Lumm tells Kunselman he could support this amendment but then keep some of the money as transition money. She returns to the fact that there’s roughly $845,000 of uncommitted funds. She calls for a clean break from the Percent for Art program. She wants to know what art that money would be used for, instead of sewer and street improvements, for example.

Kailasapathy indicates that she won’t support using restricted funds for general art administration. Elias indicates that this amendment would be necessary for the Lumm-Kailasapathy resolution later in the meeting, which would return public art money from prior years to the funds of origin. Briere draws out the fact that the current amount in the art administration fund will be zero by the end of this fiscal year.

9:35 p.m. Petersen ventures that even the administration costs have a “nexus” issue, which means that the money has to be thematically linked to the art to be funded. Kailasapathy notes that the administration fund comes from an 8% allocation initially, so to take another 8% from the set-aside would essentially be double-dipping. Hupy points out that to implement the recommendation for a full-time instead of a part-time administrator, it will cost more. [The current public art administrator, Aaron Seagraves, serves in a part-time position.] Taylor describes how the work of the public art administrator in the future will involve how to bake in art to various capital projects. If the administrator is thinking about incorporating art into streets, then that’s an adequate thematic link to streets to fund the art administrator’s work. As long as the administrator allocates time proportionally among the source funds, there shouldn’t be a problem, Taylor contends.

9:42 p.m. Briere asks what the “fall back position” is. Crawford says that if all the pooled art money is returned to the funds of origin, then to fund the public art program, he could only come up with the general fund as an option for funding it. Lumm returns to her idea simply to leave a small portion of the uncommitted art funds to pay for administration. She stresses that the sewage fund contributed the majority of the money that’s in the public art fund. Petersen argues that if the amendment is approved, it gives the council some flexibility in the future. She’s implying that the restoration of that money to its funds of origin need not be settled that night. Two unknowns include: (1) How much is needed? (2) What’s the art administrator’s job description?

9:45 p.m. Hieftje says he won’t support the amendment. He contends that when the conversation about changing the public art program was started, many councilmembers had expressed their comfort with leaving the funds in the public art fund. He links public art with economic development. The amendment fails, with support only from Kailasapathy, Petersen and Lumm.

9:49 p.m. Back to the main question, Kunselman talks about working together and compromising. His concern had always been about the legality of the program, he says. The task force had done a lot to come to an agreement. So he wouldn’t be asking for a state attorney general opinion on the legality of the program. He allowed that he’d voted for the program in 2007, unaware of the implications of the funding mechanism. He hoped that the community could find funds for other kinds of art besides capital improvements. He indicates a preference for gatherings of people having a good time, rather than monumental art. He’s supporting the ordinance change.

Lumm thanks the task force. She’s supportive of the part of the ordinance change that eliminates the automatic 1% set-aside. If any community could fund public art with private sources, it’s Ann Arbor, she says.

9:58 p.m. Lumm is still concerned that the structure of the program leaves in place a mechanism that takes money from capital improvement projects. She expresses disappointment that her amendment was not approved. She returns to the point of the $845,000 that’s in the fund. She continues to re-argue the case for the amendment. She indicates a grudging support for the ordinance change.

Taylor says he is delighted and proud to have participated in the task force. He calls the ordinance change an improvement. But he indicates there’s some uncertainty. Public art will compete with other priorities and find its proper level of support, he feels. Briere summarizes the task force work as the result of councilmembers coming from their individual peculiar attitudes toward public art. Thinking through all the implications had been hard, she said. She doesn’t think everything has been solved. How it’ll play out in the next three years remains to be seen. The council will be determining how much public art there is and where – based on advice from the staff about which projects should have art incorporated in them.

Kailasapathy indicates support for the ordinance, but still has reservations about leaving the money in the art fund balance. She allows she’s not a legal expert, but feels this is on shaky legal grounds.

10:03 p.m. Responding to Kunselman, Hupy allows that he can’t imagine that $845,000 could be spent on public art administration in two years. Crawford indicates that it could be used for administration or also on art projects. Kunselman says he wants to stop looking back and to start looking forward. It’s tough for him to disagree with Lumm and Kailasapathy, but he wants to look forward. Marcia Higgins (Ward 4) asks about the resolution later on the agenda that restores funding that was set aside for public art in FY 2014 just recently: How is that different? Crawford explains that it’s just for FY 2014. There’s a second resolution that would return money from previous years – which Lumm’s amendment to the ordinance was meant to facilitate.

10:03 p.m. Outcome: The council gave unanimous final approval to the changes to the public art ordinance.

10:12 p.m. Recess. After approving changes to the public art ordinance, the council went into recess. They’re still in recess.

10:15 p.m. The council is back in session.

10:17 p.m. The council votes to go into closed session to discuss land acquisition.

10:29 p.m. The council has returned from closed session.

10:29 p.m. Pension ordinance change. The proposed amendment would potentially affect a single person – a former city dispatcher. When dispatch operations for the city were contracted out to the Washtenaw County sheriff’s office, the pension benefit change was negotiated as part of the consolidation with the Ann Arbor Police Officers Association, which represented the city dispatchers. The amendment allows a former dispatcher to collect city pension benefits at the same time that they could have if they’d remained employees with the city. The council previously gave this change initial approval. Tonight is consideration of the second and final approval.

10:30 p.m. Outcome: Without discussion, the council gave unanimous final approval to the change to the pension ordinance.

10:30 p.m. Sidewalk definition change. The council is being asked to give initial approval (first reading) to a change in the definition of “sidewalk.” It expands the existing definition to include non-motorized paths that are “designed particularly for pedestrian, bicycle, or other nonmotorized travel and that is constructed (1) in the public right of way or (2) within or upon an easement or strip of land taken or accepted by the City or dedicated to and accepted by the City for public use by pedestrians, bicycles, or other nonmotorized travel, …” Impacts from this change include funding for repair and maintenance of such facilities and responsibility for snow clearance. The changed definition will allow the city to use sidewalk millage money to repair and maintain the facilities. However, it will also place responsibility on the abutting property owner for snow clearance during the winter.

10:33 p.m. Briere indicates she will support the ordinance to move it to a second reading, but she has some questions she’ll want answered when it comes back to the council. She highlights the question of who’s responsible for shoveling snow off sidewalks during the winter. She feels the council will want to look carefully at the definition change.

Outcome: The council gave unanimous initial approval to the change in the definition of “sidewalk.”

10:33 p.m. Fireworks. This is the initial consideration of an ordinance change that would regulate the use of fireworks for the day before, the day of, and the day after a national holiday – like July 4. Currently, it’s possible to explode fireworks for the continuous 72-hour period from July 3-5. The ordinance change would limit fireworks to the hours from 8 a.m. to midnight. If this ordinance change is approved tonight and given final approval at the council’s next meeting on June 17, it would be in place for July 4. State law currently prohibits local municipalities from regulating the use of fireworks on the day preceding, the day of, and the day after a national holiday. But a bill that’s working its way through the legislature would allow local municipalities to impose restrictions on those days – but only by regulating the hours – to 8 a.m. through midnight. For New Year’s Day, local municipalities could regulate use of fireworks by allowing them from 8 a.m. through 1 a.m., which would allow for midnight fireworks celebrations.

10:38 p.m. Briere recalls the loud July 4 last year and the complaints about fireworks. While the number of complaints might not have been great, those that were heard were dramatic, she said. That resulted from a change in state law that allows residents to use “more exciting” fireworks. Lumm asks for clarification.

Outcome: The council gave unanimous initial approval to the change in the fireworks ordinance. The second reading will come before the council on June 17.

10:38 p.m. Greenbelt advisory commission appointment: Jennifer Fike. The council is considering confirmation of Jennifer Fike to the greenbelt advisory commission. Fike is finance director of the Huron River Watershed Council. She would replace Laura Rubin, HRWC’s executive director, whose term on the commission ends in June. Fike was nominated at the council’s May 20, 2013 meeting.

10:39 p.m. Taylor briefly describes Fike’s background and thanks Rubin for her service.

Outcome: The council voted unanimously to confirm Fike’s appointment to GAC.

10:39 p.m. DDA funding of downtown police. The resolution would encourage the Ann Arbor Downtown Development Authority to provide funding for three police officers (a total of $270,000 annually) to be deployed in the DDA district and asks that the DDA board consider that at its next regular meeting. The next meeting of the DDA board is June 5, 2013. For a Chronicle op-ed on this general topic, see: “Counting on the DDA to Fund Police?”

10:49 p.m. Lumm is introducing the resolution, which she’s sponsored with Kailasapathy and Petersen. Kunselman indicates he’ll support it. His understanding is that the DDA likes direction from the city council in the form of resolutions.

Taylor allows that would not be irrational for the DDA to review this question. He indicates that the resolution is not particularly polite – and he wants to rebuild a relationship of trust with the DDA. He points out that the DDA has included an option in its budget to fund public safety. He’ll be voting against the resolution.

Briere alludes to the council’s December 2012 retreat priorities on public safety. She’s supporting the resolution because it’s advisory. But she notes that the work plan in response to the council’s priority on public safety includes a lot of elements that don’t depend on a count of officers. This resolution is only about a number of police officers. She wants to move the discussion beyond numbers to talk about policy.

Kailasapathy stresses that the funds in the DDA’s budget are undesignated. That’s part of the basis on which she’s supporting the resolution. Petersen says the perception of public safety is high until someone has a problem – and police downtown might be able to prevent problems before they happen. Anglin indicates he’ll support it. He allows that having more police doesn’t make a safer city, but more police means that the city is able to respond when someone calls.

10:58 p.m. Higgins expresses appreciation for the fact that the resolution was brought forward. She expresses some reservations about specifying the exact number of officers. She asks for an amendment to the resolution to make it nonspecific. Lumm prefers her original version specifying three officers.

Briere asks police chief John Seto to come to the podium. She asks how many officers are dedicated to the DDA area. Seto says none are assigned to the DDA specifically. It’s part of the “Adam” district – bounded by Huron, Main, Stadium and Packard – and 12-14 officers are assigned to it. Briere wanted to know if three officers were added, how would the staffing be handled. Seto says they’d be additional bodies that would be assigned to the “Adam” district. The officers assigned to other areas should remain the same, he says.

Hieftje says Ann Arbor is one of the safest cities in the nation. Most of the literature indicates that adding police doesn’t reduce crime, he says. His interest is in reducing nuisance issues. The DDA board has discussed the possibility of funding ambassadors who would have direct communication with the police. Hieftje says that Taylor framed it well, given the context of the council’s consideration of revising the ordinance governing DDA TIF (tax increment finance) capture. Hieftje notes that the funding for police staffing needs to be sustainable. He couldn’t predict how the DDA would perceive the resolution. He wanted councilmembers to be prepared for a range of reactions from the DDA board. He felt it would be a worthy discussion at the DDA.

10:59 p.m. Outcome: The council voted 8-2 to encourage the DDA to consider funding three police officers to be deployed in the downtown. Dissent came from Taylor and Teall.

10:59 p.m. Public art: reallocation to funds of origin – previous years. Two items are on the agenda that would essentially do the same kind of thing, but for different time frames. Each resolution would reallocate monies to their funds of origin that had been set aside under the previous public art ordinance (aka Percent for Art program). The first resolution, sponsored by Jane Lumm (Ward 2) and Sumi Kailasapathy (Ward 1) would return monies to their funds of origin, which had been set aside for public in previous years under the ordinance. The previous discussion of the public art ordinance, however, means that this won’t be possible. The council declined to amend the ordinance to allow moving prior years’ public art set asides back the funds of origin.

The second resolution – sponsored by Margie Teall (Ward 4) Stephen Kunselman (Ward 3), Christopher Taylor (Ward 3), Sally Petersen (Ward 2) and Sabra Briere (Ward 1) – would return just the money set aside in the FY 2014 budget – which was approved by the council on May 20, 2013.

Both proposals change the budget, which under the city charter means that an eight-vote majority will be required on the 11-member council. The Lumm-Kailasapathy proposal would return the following amounts to the respective funds for a total of $845,029:

• 002-Energy $3,120
• 0042-Water Supply System $61,358
• 0043-Sewage Disposal System $451,956
• 0048-Airport $6,416
• 0069-Stormwater $20,844
• 0062-Street Millage $237,314
• 0071-Parks Millage $28,492
• 0072-Solid Waste $35,529

The second proposal would return the following amount to the respective funds for a total of $326,464:

• 0042-Water Supply System $113,500
• 0043-Sewage Disposal System $50,050
• 0069-Stormwater $33,500
• 0062-Street Millage $120,700
• 0071-Parks Millage $8,714

The Lumm-Kailasapathy resolution is up first.

11:00 p.m. Outcome: Lumm withdrew the resolution, given that her attempt to amend the ordinance – in a way that was necessary for the resolution to be considered – failed earlier in the meeting.

11:01 p.m. Ann Arbor Transportation Authority (AATA) articles of incorporation. The council is being asked to consider revision of the AATA’s articles of incorporation to admit the city of Ypsilanti as a member, and to expand the size of the board from seven to nine members. One of the new seats would be appointed by the city of Ypsilanti. [Previous Chronicle coverage: "Ypsi Waits at Bus Stop, Other Riders Unclear"]

This would change only the governance of the authority, but would not yet impose any new tax. A millage proposal would require voter approval. There’s an outside chance for the AATA to place a millage on the November ballot – if the change to the articles of incorporation are approved in straightforward fashion by the Ann Arbor city council, followed by the AATA board and the Ypsilanti city council. Any decision to place a millage request on the November 2013 ballot would need to be made by late August. [Ballot language needs to be certified to the county clerk by Aug. 27, 2013]. But the practicalities of mounting a successful millage campaign mean that a decision to make a millage request would likely need to come sooner than that.

The change in the articles of incorporation also calls for a name change – to the Ann Arbor Area Transportation Authority (AAATA). Customary pronunciation of the current name is to sound out each letter: A-A-T-A. Carrying forward that custom seems unlikely. “Triple-A-T-A” is one possibility The Chronicle has heard floated. [.pdf of proposed AAATA articles of incorporation] [.pdf of existing AATA articles of incorporation] This item is being co-sponsored on the agenda by mayor John Hieftje, Sabra Briere (Ward 1) and Stephen Kunselman (Ward 3).

11:07 p.m. Briere introduces the proposal. Kunselman adds his support to the proposal. He calls it a small step. He wonders if it’s appropriate to take action before the AATA board takes action. His concern is that to add other members – like Ypsilanti Township or Pittsfield Township – it might require amending the articles of incorporation again. There’s a strong connection of the communities to the east and Ann Arbor, so they need a voice at the table, he says, and this step that the council is being asked to take will help to do that.

Anglin asks for someone from the AATA to explain this to the public. Jerry Lax, the legal counsel for the AATA, is on hand. Joining Lax are Bill De Groot and Mary Stasiak, staff with the AATA. Lax explains that the city of Ypsilanti has explicitly requested membership. The document in front of the council resulted from a discussion between the city of Ann Arbor, AATA, and the city of Ypsilanti. He noted that this step does not itself create new funding. But it creates a mechanism by which voters could approve new funding.

11:13 p.m. Responding to a question from Anglin, Lax describes the benefit to residents of Ann Arbor as providing a more coherent approach to providing transportation. Hieftje describes the background of the “urban core” meetings. Petersen says that her notion of “urban core” is Ann Arbor and Ypsilanti. She asks if that’s the AATA’s view. Lax ventures that the two townships might also be considered a rational part of the system.

Petersen expresses concern about calling it the Ann Arbor Area Transportation Authority. She suggests calling it the Ann Arbor Ypsilanti Transportation Authority. Lax says some initial drafts did include AAYT as a possibility. He didn’t feel that the name change was the major accomplishment – something that Petersen agrees within. Kunselman ventures that it would be shortened to “Ypsi-Arbor Transportation Authority.” Hieftje suggested looking at where high school graduates are attending school. Many Ann Arbor high school grads attend Eastern Michigan University in Ypsilanti, he says.

11:19 p.m. Hieftje notes that Ypsilanti has already set up a dedicated funding mechanism. He wanted the Ann Arbor city council to be able to affirm the action that the Ypsilanti city council had taken by requesting membership. He said he was impressed with the AATA’s ability to account for where the various millage dollars were going. He wouldn’t have a problem in some “bleed-over” from Ann Arbor funding for Routes #4 and #5 between Ann Arbor and Ypsilanti.

Lumm thanks staff for providing answers to her questions earlier in the day. She recites much of the recent history of efforts to expand transportation. She complains that information on Ypsilanti’s financial commitment was only provided in response to councilmembers requesting it. She laments the fact that there’s not a framework for adding additional members beyond Ypsilanti. But Ypsilanti is Ann Arbor’s most natural partner, so she’ll support the proposal.

11:23 p.m. Kailasapathy draws out the fact that a new AAATA millage would be for the geographic area of the entire transportation authority.

Outcome: The council unanimously approves adding Ypsilanti to the AATA.

11:23 p.m. Public art: reallocation to funds of origin – FY 2014. This is a return of just the FY 2014 public art set-asides to their funds of origin.

11:25 p.m. Briere introduces the resolution. Lumm indicates she supports the resolution. She again complains that the council didn’t act to return previous years’ allocations to their funds of origin.

Outcome: The council voted to return the FY 2014 public art set-asides to their funds of origin.

11:26 p.m. Annexations: Weller and Higgins. These are both owner-initiated annexations, each property about 0.5 acres. The parcels are currently a part of Ann Arbor Township.

11:26 p.m. Outcome: On separate unanimous votes, the council approved the annexations.

11:27 p.m. Non-motorized transportation plan distribution. This item is a formal step toward incorporating a revised version of the city’s non-motorized transportation plan into its set of master plan documents. At its April 16, 2013 meeting, the city’s planning commission recommended distribution to adjoining jurisdictions and stakeholders, including the Washtenaw County board of commissioners, DTE Energy, Norfolk-Southern Railroad, the University of Michigan, the Ann Arbor Transportation Authority, and the Ann Arbor Public Schools. They’ll have 42 days to submit comments.

11:27 p.m. Outcome: On a unanimous vote, the council authorized the distribution of the draft non-motorized plan.

11:27 p.m. Ann Arbor Housing Commission. Five resolutions affecting the AAHC are on the agenda. All are related to the proposed conversion of public housing managed by AAHC to a public/private partnership that would fund the units through project-based vouchers.

First up is a resolution that would transfer ownership of the city-owned properties, currently managed by the AAHC, to the AAHC itself. As a land transaction, it requires eight votes to pass. If it doesn’t pass, the other resolutions are probably moot. Postponement isn’t a feasible option, because the AAHC’s first grant application is due June 15 – and that grant application needs to demonstrate “site control.”

After the land transfer comes a resolution stating that the current employees of the housing commission are currently city employees and will continue to be city employees after the conversion of AAHC properties to project-based vouchers. The next resolution on the agenda is approval of a payment in lieu of taxes for properties in Phase 1 of the planned conversion: 106 Packard Road, 727 Miller, 1701-1747 Green Road, 2742 Packard, and 800-890 South Maple. That will exempt the AAHC from paying property taxes on the properties.

Following that on the agenda is a $200,000 appropriation from the city’s affordable housing trust fund to support a loan application for improvements at 727 Miller (Miller Manor) and 800-890 South Maple. The final item is a request from the city’s general fund to backstop anticipated deficits – even if the AAHC converts all its units to project-based vouchers. The resolution asks for at least $124,000 – based on “Scenario 3″ described in the council’s information packet, or up to $461,000 if HUD did not allow AAHC to convert its units all in one go (before all financing is formally secured) – to lessen the impacts of federal sequestration. According to AAHC executive director Jennifer Hall, HUD didn’t agree to AAHC’s request to do that. So it’s the $461,000 figure that’s in play – for the three fiscal years FY 2014-16.

Ann Arbor Housing Commission Properties. Color coding indicates phase: Phase 1 (red); Phase 2 (orange); Phase 3 (blue), Phase 4 (green). Image links to dynamic map.

11:31 p.m. AAHC: property transfer to AAHC. Briere has asked AAHC executive director Jennifer Hall to the podium. Hall attributes the dilapidated condition of some of the properties as a lack of investment by the federal government. She describes the basic approach of this proposal. She characterizes the AAHC housing units as relatively “dispersed.”

By way of additional background, the need to rethink the funding and maintenance strategy for Ann Arbor public housing is based on a capital needs assessment conducted in 2009 – which determined that AAHC had $40,337 per unit in capital needs over the next 15 years. But at current HUD funding rates, AAHC would receive only $18,000 per unit – which is a $22,000 per unit shortfall in capital repair funding. Without some other funding strategy for its 355 units, AAHC would face roughly $7.8 million or about $520,000 per year in unmet capital needs.

11:36 p.m. Hall explains that there’s a June 15 loan application deadline. AAHC is applying for a $1 million federal loan. She explains that there’s been a change from the original plan that was presented to the city council. That original plan would have transferred the properties further from AAHC to a new public/private partnership. But the new plan is for the AAHC to own the land and the buildings, and to lease the improvements (buildings) through a ground lease to the limited partnership. A long-term ground lease will satisfy the IRS’s requirement that the limited partnership have an ownership interest in the property.

11:44 p.m. Kailasapathy wants to know if the city still has any controls over the properties after the transfer of ownership. Hall notes that the city council appoints the AAHC board. Kailasapathy would prefer to have clarity on issues like rights of first refusal. That makes her nervous. Assistant city attorney Kevin McDonald explains that there’s deed restriction that will provide an extra control. He reiterates Hall’s point that the council still appoints the members of the AAHC board. The council has the ability to remove members of the AAHC board, and McDonald notes that the council has exercised that option before. McDonald also points out that HUD controls the properties. If the properties were being mismanaged, HUD could step in.

Kailasapathy asks about the change from the transfer to the public/private partnership to the idea of a ground lease. Hall says after 15 years the properties come back to the AAHC. Kailasapathy raises the specter of an accident that results in a legal liability – because governmental immunity might not apply to a public/private partnership.

11:49 p.m. Rochelle Lento, the legal consultant for the AAHC, is trying to provide some assurance to Kailasapathy. She notes that HUD’s Hope 6 program uses ground leases as a mechanism. McDonald notes that there’s nothing that’s being proposed that’s outside the scope of what housing commissions can do.

Kunselman wants to know why the city can’t just lease the properties to the AAHC with a sublease to the public/private partnership. Lento can’t say it can’t be done, but she has never seen it done that way.

11:52 p.m. Kunselman ventures that there’s a valid reason for why the city of Ann Arbor currently owns the properties. He felt that a five-member board of political appointees might not be the best property managers. Kunselman, who said he’d be voting no on this when the council was briefed on the proposal back in February, is engaged in extended back and forth with Hall, Lento, and McDonald. He asks which properties are proposed to be demolished and rebuilt.

12:01 a.m. Petersen asks for a description of limited liability partners and if AAHC has one lined up. Lento indicates that the Great Lakes Capital Fund is interested in AAHC. She describes GLCF as an active player in Michigan. She feels the AAHC’s ability to acquire an equity partner is good. Taylor brings up the shortfall in needed capital improvements. Hall says it would be burying her head in the sand to think that there will be more funding for public housing at the federal level. Taylor asks for the reasonable expectation of the available investment that this proposal would create. Hall describes the AAHC’s plan to package Miller Manor with South Maple – which will have a $13 million rehabilitation cost. The low-income housing credits will generate about $9 million for that particular project. She also describes using the city’s PACE program to fund some of the cost.

12:15 a.m. Lumm thanks Hall for not sticking her head in the sand. It’s complicated and difficult, she says. Lumm acknowledges that something dramatic needs to be done, and this approach makes sense. She notes that sequestration complicates the issue. She calls it a clear choice. It’s not consistent with Ann Arbor’s values to do nothing and let the properties continue to deteriorate and eventually disappear, Lumm says, along with the services the properties provide.

Briere says it’s easy to lose sight of the fact that there are people involved – when all the discussion is about the properties. Hall describes a situation at Broadway, involving a stormwater drain. A building on Platt Road has continuing problems with water in the basement, because it was built in the floodplain. She describes sewer backups. Briere asks what happens to the people who live in the properties if the properties are demolished as planned by the AAHC. Hall explains that AAHC has to follow the HUD protocols.

Hall describes how some of the AAHC properties could support more units than they currently have – with a possible net increase of 20-30 units citywide. Kunselman is now questioning Hall and Lento. Only half a dozen members of the general public are still here (not counting staff and the press). The council does not appear to be close to winding up discussion of this first AAHC resolution.

12:25 a.m. McDonald suggests adding a resolved clause to the resolution. It would condition the transfer of the city property on review of the proposed ground lease to the public/private partnership. Kunselman asks if the deed restriction can include a requirement that the housing be accessible to 30% AMI. McDonald isn’t sure if HUD will accept the imposition of a more stringent requirement than HUD’s 50% AMI requirement. Hall describes the advantage of setting the rents at 50% – because vouchers make up the difference between income and the rent.

12:26 a.m. Recess. The council is taking a short break before considering the amendment that McDonald is working on.

12:35 a.m. The council is back from recess. Kailasapathy moves the amendment to the resolution suggested by McDonald. The council agrees to the amendment.

12:40 a.m. Kunselman says he’s been very hesitant to go in this direction. He fears it will push out the “poorest of the poor.” The council has spent the last 10 years talking about affordable housing without talking about the Ann Arbor Housing Commission, he says. But Kunselman says he’ll support this proposal because of the great unknown. Hieftje allows there are some unknowns. But he feels that federal funding is going to go down. Taylor questions the wording of the amendment.

12:40 a.m. Outcome: On a 10-0 vote, including Kunselman, the council voted to transfer the city-owned public housing properties to AAHC. Chuck Warpehoski (Ward 5) is absent.

12:40 a.m. AAHC: employees remain city employees.

12:40 a.m. Outcome: The council approved the confirmation of AAHC-assigned employees as city employees.

12:40 a.m. AAHC: exemption from property taxes.

12:40 a.m. Outcome: The council unanimously approved the PILOT for AAHC properties.

12:43 a.m. AAHC: grant for Miller Manor improvements. Briere mentions that the $200,000 appropriation from the city’s affordable housing trust fund was recommended by HHSAB some time ago. Lumm indicates support for the resolution.

12:43 a.m. Outcome: The council unanimously approved the grant for improvements at Miller Manor.

12:43 a.m. AAHC: general fund support. This item has been withdrawn from the agenda.

12:44 a.m. West Madison Street improvements. This item requests the council approve a $2,283,524 contract with Pamar Enterprises Inc. for the work on West Madison Street – from South Seventh Street to South Main Street. The total cost of the project is $3,162,000. It’s being paid for with a combination of street funds, water funds and stormwater funds. It includes water main replacement and stormwater improvements.

12:48 a.m. Kunselman wonders if the base of the road will be beefed up to prevent the sloughing of the pavement. A city engineer assures him it will have an appropriate cross section. Anglin asks for an explanation of the stormwater features, including rain gardens.

Outcome: The West Madison Street improvements contract was unanimously approved.

12:48 a.m. Mack Pool roof. This item approves a contract with Pranam GlobalTech Inc. for $193,000 to cover the roof replacement and painting refurbishment for Mack Pool. A 10% construction contingency brings the project’s budget to $212,300. The city’s park advisory commission had recommended approval of the contract at its May 21, 2013 meeting.

12:48 a.m. Outcome: The Mack Pool roof contract was unanimously approved.

12:48 a.m. Stone School Road improvements. This item asks for council approval of a $101,140 contract for design work with Northwest Consultants Inc. (NCI) for the Stone School Road reconstruction between I-94 and Ellsworth Road.

12:49 a.m. Kunselman says he’s looking forward to this project. He’s personally seen the failed culvert. City engineer Nick Hutchinson tells Kunselman that construction is expected in 2014.

Outcome: The Stone School Road design work contract was unanimously approved by the council.

12:50 a.m. Appointments. The one mayoral nomination from the previous meeting was Lloyd E. Shelton for the city’s commission on disability issues. Petersen describes her interaction with Shelton that led to his nomination for the commission.

12:50 a.m. Outcome: Shelton’s appointment to the city’s commission on disability issues was unanimously confirmed.

12:53 a.m. Nominations. Nominations include reappointments to the planning commission of Bonnie Bona and Tony Derezinski. Also among the nominations is LuAnne Bullington to the taxicab board. In addition, all the members of the downtown citizens advisory council have been re-nominated. The council will vote on these nominations at its next meeting.

12:53 a.m. Public commentary. There’s no requirement to sign up in advance for this slot for public commentary. Turns are limited to three minutes.

12:55 a.m. Caleb Poirer is addressing the council asking for a binding, written agreement indicating that humanitarian aid providers will not be charged a parks and recreation fee. Seth Best echoes Poirer’s sentiments. He’s concerned that a policy might be applied that requires a permit if you advertise a gathering in a public space that could draw more than 50 people.

12:55 a.m. Adjournment. We are now adjourned. Details on some individual voting items can be found in The Chronicle’s Civic News Ticker. That’s all from the hard benches.

A sign on the door to the Ann Arbor city council chambers gives instructions for post-meeting clean-up.

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