Government Update Column

On the Horizon: Impact 2009
Kyle Mazurek, v.p. of government affairs

Mark your calendar. Save the date. Clear your schedule. Do whatever you have to do in order to make yourself available on the morning and early afternoon of Wednesday, September 30, when the Chamber will present Impact 2009, its annual public policy conference, at Kensington Court Ann Arbor.

The Impact event planning process is well-underway: estimates are being received, budgets evaluated, contracts signed, sponsorship letters distributed, graphic designs selected, printing and mailing needs assessed, so on and so forth. If the devil truly lies in the details, then that’s where I’m currently embattled.

For those of you who have had the occasion to attend a past Impact, you know that this educational day brings together an array of area community and business leaders to network and enhance their knowledge and understanding of policy issues affecting the region in general, and business community in particular, in the hope of generating action.

Last year’s theme was intergovernmental collaboration. Explored were means by which local government and area schools can consolidate or share services in order to realize economies of scale, which by definition yield efficiencies that save taxpayer dollars. Hurdles impeding greater collaboration were identified. Successful examples upon which to build were shared. Speakers included Dan Gilmartin of the Michigan Municipal League, Todd Roberts of the Ann Arbor Public Schools, Bill Miller of the Washtenaw Intermediate School District, Roger Fraser of the City of Ann Arbor, and Bob Guenzel of Washtenaw County Administration.

The Impact 2009 Planning Committee, a committed group of volunteers charged with charting Impact’s course, began meeting in January. Fairly quickly it became clear that the Committee wanted to continue to build upon the previous year’s theme of intergovernmental collaboration while adding additional program content. It also became apparent that there was a strong desire to link with Ann Arbor Region Success (AARS).

If you’re unfamiliar with AARS, further information, as well as a comprehensive report entitled “Ann Arbor Region Success Strategy,” can be obtained via annarborregionsuccess.org. In brief, this initiative is a community success strategy – and when AARS says community, it means the Ann Arbor region, the whole of Washtenaw County.

AARS aims to ensure smart, successful community growth. It has brought together over 70 community leaders, principally from local business, government, education and non-profit enterprise, to identify the most critical actions to achieve long-term community success.

AARS has an informed vision. It has a coordinated strategy. It would now like to engage the community – which is where the Chamber comes in. Linkage of AARS with the Chamber’s Impact affords AARS a platform for community engagement. 

The principal challenge thus becomes maintaining the Chamber’s business-minded focus and message while providing AARS with the platform it requires. But I think it’s safe to say that we’ve done just that, as you’ll see on September 30.

Our purpose in bringing together leadership, business and community voices is to create alignment on a compelling vision of regional success and priority focus areas to ensure business, citizens and institutions in the Ann Arbor region continue to thrive. Priority focus areas include education, government efficiency and effectiveness, marketing, talent and transit.

The program will be structured to ensure that Impact attendees: (i) understand current initiatives that are engaging a cross-section of the community; (ii) think strategically and make recommendations on mobilizing community resources to support achievement of specific goals; (iii) share their wisdom on what they believe should be priority focus areas for action; (iv) understand various options for engagement and determine what, if any, role they would like to play in ensuring our region is well-positioned for success; and (v) know their voice has been heard and that they have made a difference.

And so, as I continue to delve into the minutiae of event planning, I ask that you commit to our community’s future by setting aside a few hours on September 30 to attend Impact 2009. Rest assured that further details are forthcoming.

together we profit!

--Published Thursday, July 2, Chamber b2b, Ann Arbor Business Review

A Business Case for Arts and Culture?
Kyle Mazurek, v.p. of government affairs

From time to time at the Chamber public policy committee’s monthly meetings, Chamber members at large give presentations regarding public policy matters of particular interest, frequently seeking the Chamber’s support with regard to them. After such presentations, Committee member discussion typically ensues. Depending upon the inclinations of the Committee, informed by both presentation and discussion, a recommendation of support may or may not result. If a recommendation of support does result, then further discussion occurs at the Board-level, where final determinations are made.

Such was the case at the public policy committee’s mid-March meeting when Tamara Real, President of the Ann Arbor-based Arts Alliance, sought the Committee’s support with regard to continued state arts funding. 

The issue was and continues to be this: As the economy stagnates, state budget shortfalls worsen. As state budget shortfalls worsen, the state looks for additional ways to tame budget deficits. As the state looks for additional ways to tame budget deficits, ideally thoughtful spending reprioritization occurs, inevitably accompanied by budget cuts.

One such cut envisioned in the state’s fiscal year 2010 proposed budget is the near elimination of funding to the Michigan Council for Arts and Cultural Affairs (MCACA), a state arts-granting agency. For perspective’s sake, in FY02, MCACA funding stood at $27 million. In FY07, it dropped to $6.5 million. In FY09, it rebounded slightly to $8.1 million. In FY10, given the uncertainty surrounding the economy and its apparent impact on the state budget, questions remain as to the MCACA funding level – near elimination, FY09 funding level maintenance, or other?

I am pleased to report that both the Chamber’s Public Policy Committee and Board see the business case for continued state arts funding, and that we recently lent our support to Tamara’s and the arts and cultural sector’s cause. Moving forward we will continue to communicate our message of support to state-level elected officials and staff. After all, to us the business case is clear.

The arts and cultural sector is a substantial economic driver integral to Michigan’s economic recovery. The Washtenaw County nonprofit arts and cultural sector alone is a $165 million industry. In Washtenaw County approximately 2,600 jobs are directly tied to this sector, generating an estimated $57 million in household income.

What is more, Ann Arbor’s arts and culture are integral to this area’s outstanding quality of life, a top selling point to those looking to stay or relocate here. They make for a vibrant and creative community, and contribute significantly to attraction and retention of top, young talent and innovative businesses, both of which are essential to the state’s reinvention. It was no mistake that during the Royal Shakespeare Company’s 2006 Michigan Residency the Michigan Economic Development Corporation leveraged the arts to entertain (i.e., attract, lure) out-of-state CEOs.

Ann Arbor’s arts and culture are also a major reason that tourists regularly visit Ann Arbor. Theater performances, movies, concerts, exhibitions and other arts related activities attract thousands of visitors who frequent the area’s restaurants, shops and parking facilities during their cultural excursions. This tourism generates further economic activity. For example, it is estimated that the four Ann Arbor art fairs draw one-half million visitors to Ann Arbor each year, and that these visitors spend an estimated $5 million on hotels, $25.2 million on dining and $48.7 million on shopping.

We all recognize that budgetary constraints will necessitate difficult decisions amongst competing interests far into the foreseeable future. However, we at the Chamber believe that the return on investment in arts and culture (both tangible and intangible) warrants continued funding. We hope that the state considers arts funding as an economic development tool, and urge it to continue to invest in arts and culture as one means of redressing Michigan’s economic woes. 

Should you share in these sentiments, we urge you to communicate such to both Governor Granholm and your state legislators as well.

together we profit!

--Published Thursday, June 11, Chamber b2b, Ann Arbor Business Review

A Few Things Afoot
Kyle Mazurek, v.p. of government affairs

City graffiti ordinance: It’s back, or it never left?

Effective April 25, the recently amended City of Ann Arbor graffiti ordinance will take hold. Pursuant to the amended ordinance property owners/managers are responsible for timely removal of graffiti from their private properties. Failure to timely remove graffiti gives the City authorization to remove it itself and recover both removal and administrative costs. Such costs will be levied to property owners and if left unpaid, assessed against properties. A property owner/manager may request a removal compliance extension if necessitated by weather or other reasonable cause. 

Although not written into the ordinance amendment itself, City Council has requested that City staff revisit the ordinance within six months of its effective date to assess its success and determine whether revisions are required.

This ordinance amendment comes in response to a perceived uptick in citywide graffiti. The rationale underlying it subscribes to the “broken windows” theory which, within the specific context of graffiti, presumes that the presence of graffiti begets even more graffiti.

Relative to an earlier draft, the draft ultimately adopted by Council on January 20 represents a softened, compromise measure. For instance, the failure to timely remove graffiti is no longer considered a civil infraction (nor is it a misdemeanor). Punitive fines will not be assessed to noncompliant property owners/managers. The time frame for removal is no longer two to four days (depending upon the method of notice delivery) but is instead seven to nine days. And in addition to graffiti removal by actual physical means, the ordinance was amended to provide that “removal” includes covering graffiti with paint or some other similar substance.

City officials are working on ways to make paint and other graffiti removal products, such as Elephant Snot, available and affordable. But no matter, come April 25, City property owners/managers beware.

Non-compostable plastic carry-out bags: To ban or not to ban…or other?

This past summer, in an effort to discourage the local use of non-compostable plastic carry-out bags so as to reduce litter and waste, it appeared that Ann Arbor City Council was poised to ban them altogether within City confines. Such bags are popularly known as “t-shirt” or grocery bags, and are provided by retailers to patrons at the point-of-sale. Affected businesses were proposed to be retailers with gross annual sales of $1 million or more. 

The then-proposed ordinance specifically excluded restaurants from the equation. And by directly targeting bags provided at the point-of-sale, it similarly excepted from its reach single use plastic bags used to transport produce to the point-of-sale.

Permissible bag alternatives for affected retailers included compostable plastic bags, recyclable paper bags, other reusable bags, and other compostable bags. Violation of the then-proposed ordinance was punishable as a civil infraction with a civil fine.

But that was then, and this is now. On March 2, for the third time within an eight-month span, Council postponed consideration of this measure. Some derivation of it likely won’t rear its head until the June 1 Council meeting. And that’s good news, as the purported reason for yet another postponement was to give City officials and staff additional time to collect information and conduct far greater outreach than has seemingly been done up until now.

From my vantage point, and to City staff’s credit, they appear to be reaching out to the business community (as well as the community at large) with regard to disposable shopping bag use, seeking input on a range of options. It’s as though they’ve taken a step back – backtracking from the proposed ordinance stage to that of outreach, the input from which will ultimately drive the proposed ordinance’s direction and Council’s eventual action.

By the time this column appears in print, City staff will have conducted several business focus groups. City staff will also continue to seek input through April 30 via several online surveys posted at www.a2gov.org/bags. Two versions are available: one for general consumers, and one for business owners, managers, and employees. 

So please take a few minutes to ensure that your business-minded voice is heard. City officials and staff want, and need, to hear from the business community with regard to this initiative.

--Published Thursday, April 9, Chamber b2b, Ann Arbor Business Review

Shedding Some Light
Kyle Mazurek, v.p. of government affairs

I have to come clean about something. The Chamber has a public policy committee that advises the Chamber’s Board of Directors on public policy issues impacting the membership. It’s one of the many benefits of Chamber membership – having the opportunity to serve on this committee, and through active committee participation helping to shape the end result in public policy matters with business implications. 

The Public Policy Committee is an important component of what we at the Chamber have branded business advocacy, a means by which to amplify local business’s voice in the realm of public policy. While we should never discount the effectiveness or importance of a single voice speaking out on behalf of a given issue, my gut instinct tells me that many single voices coming together to speak as one collective voice carries greater weight in decision making processes. 

Though not all Chamber members are directly involved with the Public Policy Committee, all are entitled to and benefit from this kind of business advocacy. Less direct though equally important, involvement for a Chamber member at-large could be something as simple as a communication to me regarding a particular business issue of concern, which I’ll then shepherd to the Public Policy Committee for due consideration.

The Public Policy Committee is composed of a wide array of individuals, whose professional backgrounds span numerous vocations. We’ve got attorneys, accountants, bankers, local government administrators, active community participants, real estate developers, business owners of all sizes, individuals associated with large corporations, individuals well-versed in legislative affairs and government relations, so on and so forth. I suppose my point is this: With this diversity of professional backgrounds comes a diversity of opinion and perspective, which in my mind makes for sounder policy judgments. It also makes for livelier discussion at our monthly meetings, which is a good thing unless you’re the one endeavoring to take meeting minutes on a laptop computer.

This all volunteer committee, perhaps by definition but also in reality, is committed. Committee members obligate themselves to attend monthly meetings. In addition, they willingly subject themselves to my incessant emails – for example, when I’m seeking volunteers for a subcommittee charged with consideration of a certain issue, or when I’m soliciting feedback on a particular Chamber resolution or position statement, or when I’m looking to meaningfully influence elected officials on matters under consideration. For as much homework as the Public Policy Committee often creates for me, I frequently reciprocate. And for that, Committee members should be thanked!

But perhaps I should be warning Committee members as well. The coming months look to be busy. In March or April, we’ll receive a briefing from Jayne Miller, City of Ann Arbor Community Services Administrator, regarding a proposal to replace the 100 units of low-income housing that were lost when the former YMCA was closed and later demolished. The December 2008 version of the proposal envisions unit replacement at 1 of 3 publicly owned surface parking lots in downtown Ann Arbor along the western side of North Fourth Avenue. Offhand, some possible discussion points include: Is this the best use of downtown real estate so as to meet most everyone’s needs; will unit replacement at such a site allow for redevelopment of the former YMCA site; and what’s the potential impact on the North Fourth Avenue business district, Kerrytown and the Ann Arbor Farmers Market, given that the surface parking lots in question are sometimes used to service patrons’ parking needs.

The Public Policy Committee will also be in the thick of budget season. In March, we’ll receive a Washtenaw County budget update from Bob Guenzel, County Administrator. In April, we’ll receive a City of Ann Arbor budget presentation from Roger Fraser, City Administrator. And in May, we’ll receive an Ann Arbor Public Schools budget presentation from Todd Roberts, AAPS Superintendent, and Robert Allen, AAPS Deputy Superintendent of Operations. Not only is this form of budget review an opportunity for the business community to provide a certain degree of oversight with regard to how taxpayer money is spent, but it’s also an excellent occasion with which to provide these officials some meaningful feedback, potentially helping to shape a more positive budgetary outcome.

So I’ll be busy, Committee members will be busy, and I invite you to become a bit busier as well by taking full advantage of this benefit of Chamber membership. I’m just an email or phone call away.

together we profit!

--Published Thursday, March 12, Chamber b2b, Ann Arbor Business Review

Reach Out
Kyle Mazurek, v.p. of government affairs

At times there seems to be a perception in the business community that government does whatever it wants largely irrespective of business interests and resulting costs. I mean, what’s really the big deal about another rule or regulation to follow, or an additional layer of bureaucracy to navigate, or a “slight” uptick in taxes, fees and other associated costs of doing business? Particularly in this economy, it’s not as though these sorts of things could potentially impact a given business’s viability, right?

I’m not writing to argue the merits of this perception and whether it’s ill or well-founded. I think we already know the answer. But what I can tell you after 6 months with the Chamber is that there are significant signs of progress in terms of how government relates with the business community. During my tenure, albeit brief, government has been reaching out to the business community in the spirit of collaboration and compromise.

For instance, by the time this column appears in print, I’ll have traveled to Lansing for a business association meeting called at the behest of Governor Granholm’s office and the state legislative leadership. The subject matter of this meeting will be policy options for reforming the Michigan Department of Corrections in order to reduce state prison spending and thereby realize state budget cost savings. Integral to the discussion will be public safety and how to maintain if not exceed previous levels.

It’s ultimately the business community’s hope that any cost savings realized through Corrections reforms will go toward reducing the Michigan Business Tax’s 22-percent surcharge. Given House Speaker Andy Dillon’s mid-January allusions to significant tax reform being on the horizon, this hope seems to have some real potential.

Speaking of tax reform, Ann Arbor’s own State Representative Rebekah Warren recently stopped by the Chamber offices to discuss business tax policy. In particular, she floated the idea of assembling an Ann Arbor area state tax policy taskforce to examine Michigan’s tax structure and propose fixes and alternatives. Given the local presence of U-M, EMU and other colleges and universities, as well our bright-minded business community, taskforce talent shouldn’t be hard to come by. If momentum for this initiative builds and a state tax policy taskforce forms, this will truly represent a unique collaboration between the business community and one of our area’s Democratic state representatives.

At the local level, there are some positive examples of collaboration and compromise too. For instance, in early January several Ann Arbor City Council members (Leigh Greden, Carsten Hohnke, Christopher Taylor, and Margie Teall) reached out to the business community with respect to the then-proposed City graffiti ordinance. 

What resulted from this extension of the proverbial olive branch was a meeting at the Chamber between these City Council members and City staff, and representatives of the Chamber, Downtown Development Authority and several downtown area merchant associations. Middle ground was eventually found, and a much more business friendly graffiti ordinance was proposed and adopted at City Council’s January 20th meeting.

Along similar lines, I was recently contacted by a member of the Ann Arbor Human Rights Commission regarding a draft ordinance that the Commission may recommend to City Council for adoption in the near future. The ordinance in question has significant business implications, and so the Commission rightly resolved to solicit employer-side perspective. 

It’s now my job to engage the Chamber’s Public Policy Committee members for draft ordinance feedback, and supply the Commission with the additional perspective it needs to make a more fully informed decision regarding ordinance recommendation.

While government isn’t always as responsive as we would like, at least there are some bright spots and cause for hope.

--Published Thursday, February 13, Chamber b2b, Ann Arbor Business Review

Some Good News Amidst the Bad
Kyle Mazurek, v.p. of government affairs

Not so long ago, the Chamber held its annual public policy conference, Impact 2008. The topic of discussion was intergovernmental cooperation. Speakers included representatives from Washtenaw County and City of Ann Arbor governments, as well as the Washtenaw Intermediate School District (WISD) and Ann Arbor Public Schools. They cited a number of recent successes detailing how they were partnering with one another to achieve greater efficiency and, in turn, realize cost-savings while maintaining and improving on current levels of service. Although Impact 2008 has come and gone, the examples of successful intergovernmental partnerships in the greater Ann Arbor area continue, providing some good news amidst all of the bad.

In terms of area schools, one of the most exciting endeavors recently reported is the Early College Alliance (ECA), a partnership between local school districts, the WISD, and Eastern Michigan University. The ECA is a high school program on the campus of EMU that enables students to complete high school diploma requirements while earning up to 60 college credits. What’s more, this program is available at no cost to student or parent.

All ninth and tenth grade students currently enrolled in one of four ECA member school districts – Lincoln Consolidated, Milan, Whitmore Lake, and Ypsilanti – are eligible for the program. Additionally, ninth and tenth grade students in home, charter, and other public and private schools are eligible to apply as well.

The ECA is designed to prepare graduates for 21st century careers in emerging, high-demand employment sectors. Accordingly, the curriculum’s emphasis is on math, science, technology, critical thinking, and problem solving. Equally as important, the ECA affords many students, who might not otherwise be able to afford college, the opportunity to earn the equivalent of one-half of a college education free of charge. More information about this program can be obtained at www.earlycollegealliance.org.

In terms of local government cooperative initiatives, I recently spoke with David Behen, Washtenaw County Deputy Administrator, who highlighted a few projects presently underway.

Specifically, he noted that the County and City of Ann Arbor intend to coordinate their information technology infrastructure by merging their respective data centers. Why incur the expense of operating and maintaining two wholly independent data centers if one can be shared across the two levels of government.  Rollout is anticipated in March 2009.

Behen also noted that in the near future both the County and City will need to upgrade their “enterprise resource planning” systems (described to me as an enterprise-wide information system), and that preliminary talks have begun between the parties to determine the feasibility of jointly upgrading. If practicable, they’ll share a single ERP system so as to realize cost savings.

In addition, Behen pointed out that the County and City are seeking to implement joint information technology services, as well as teaming to provide a single countywide 911 dispatch system (with extra capacity built in so that other municipalities countywide will be able to join this cooperative endeavor at a later date if they so choose).

And lastly, Behen noted that the County is partnering with the Washtenaw County Road Commission to provide oversight of the Road Commission’s human resources and labor relations services.

So in the midst of this economic turmoil, some good things are happening in the area. Local government and area schools are trying to fashion themselves in a leaner light in order to do more with less while maintaining a level of service that area residents and businesses expect.

--Published Thursday, January 8, Chamber b2b, Ann Arbor Business Review

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