Stewart Nelson

After weeks of working my way to the top, I finally got a chance to meet with the person that controls the money! Don’t get me wrong, I didn’t actually see any “money”, we just talked about it. All kidding aside, Tom Crawford the Chief Financial Officer and I had an hour discussion today about the budgetary and financial reporting process that keeps our budget balanced and the cash flowing. I consider myself to have a strong financial and accounting background but Tom was able to hold up to my intense, pressure filled Q&A session! Must be the Wharton education! Actually the nuances of public accounting make it quite different from private accounting so I have a lot to learn. Tom has been very patient with me as I grapple with the complexity of the budget. Thanks Tom.

I continue to discover that whomever is assembling the professional team that is piloting the City must know what they are doing as once again I walked away with the opinion that Tom Crawford is the right man for the CFO job. I have had some well publicized disagreements with the senior staff in the past but most of the disagreement has been the result of the lack of transparency rather than substance. When allowed to sit down and talk about the issues person to person we almost always find some common ground. I am convinced that if everyone first looked for the common ground in all their relationships, the world would be a better place.

Today the Campaign Trail lead deep into the heart of Larcom Building where they used to keep St Larcom’s bones on display. The relics have been displaced (to who knows where?) by an air conditioned Dell server farm with more switches than Lombard Street in San Francisco. In charge of the operation is Daniel Rainey, Director of Information Technology. What a breath of fresh air Dan brings to the City. In 45 minutes he used the phrase “customer service orientation” at least 10 times and I really feel he means it. This is not the same type of an IT organization that brought us the Y2K problem and I suspect a big reason why is the IT Director,  Dan Rainey.

Several things were very apparent about Dan Rainey that most IT guys seem to lack; one, he spoke plain English and two, he recognizes that technology is there to serve the users that use it and not the other way around. I also got the sense that Not Invented Here, NIH, attitudes are left at the secure door. All this means that our IT infrastructure is in very capable hands. I was impressed that Dan understands the value of collaborating with the County and is actively working on key projects where we overlap needs…which is about everywhere. As taxpayers we can look forward to getting more return on our IT investments as long as Dan is Director.

Yesterday the campaign trail took me to the Drinking Water Treatment Plant on Sunset Rd. As a youth growing up on Robin Rd. (till age 11) not too far from the plant I remember trying unsuccessfully to get nearer to the large round tanks that pulled me closer like steel to a magnet. To tell you the truth, I am not sure what I would have done if had succeeded in penetrating the Cyclone Fence with barb wire on top? For sure there are no fish in the tanks.

My orientation and tour was conducted by Sumedh Bahl, the Plant Manager. If I was getting ready to draft an all-star team for a new treatment plant, Sumedh would be my first draft pick. Sumedh was a virtual “fountain” of knowledge on the intricacies of keeping our water safe. Sort of like getting a drink of water from a fire hydrant as I got more than I expected. Did you know that 85% of our water comes from the Huron River? This sends home the point about when you wash your car we need to insure it doesn’t go down the storm drains.

Another tid bit…Sumedh and his staff are also in charge of the three damns and also the 2 large storage tanks we can see covered by the fancy artwork on Plymouth Rd and also on Washtenaw. There are also four remote pumping stations that they are responsible for. All this so that when we turn on our tap, clean water appears. My new resolution is to turn the water off when I am brushing my teeth. We all need to do our part.

Did you know that May 4 to 10 is National Drinking Water Week? I certainly would have missed that one if I hadn’t taken time to actually visit with Sumedh and explore the City web site. If you are curious, the City Web site has more information.

http://www.a2gov.org/government/publicservices/water_treatment/Pages/DrinkingWaterWeek.aspx

Monday I got the VIP tour of the W.R. Wheeler Service Center on Stone School Road. I had the privilege of being escorted by the most friendly and passionate person in the building Karla Henderson. I told Karla her smile could “light up” a room. We are truly fortunate to have capable managers like Karla that worry constantly about the infinite problems that can and do develop in the maize of streets, copper cable, fiber cable, concrete pipes and other “stuff” that keep our City functioning efficiently. Thanks Karla for a great job!

The high point of the tour was a demonstration by the smartest technician you have never heard of, Kevin Braun. Kevin is the computer genius behind the programmable traffic signals that populate our City. You really need to see how this operates. Kevin could make your commute home 10 minutes shorter if he wanted to. If you get a chance to see this in operation, do yourself a favor and go. It is well worth the time.

There has been a lot of controversy about the cost of the Wheeler Center but if you take the time to go out and meet the staff and watch the operation, you will see it is the type of investment we need to make to keep our City running smoothly and efficiently. This building is one we truly can be proud of, not because it makes a flashy statement of how important Ann Arbor is, but because it shows to the world that we are willing to invest in ourselves. If we won’t invest in our City, why would a potential business want to invest here?

Last night I attended the State of the City message delivered by Mayor John Hieftje and City Administrator Roger Fraser. Mayor Hieftje eloquently described the various awards the City has received in the past year. Mr. Fraser reviewed budget numbers for last year and for the coming fiscal year that starts in July. I will not bore you with the accounting detail, but according to our Administrator we can look forward to a balanced budget again for FY2009.

During the presentation, Mr. Fraser and the Mayor fielded numerous questions. Listening to their responses, I was amazed at their dexterity in avoiding controversy by giving answers to questions that were not asked instead of answers to those that were. I am sure I will never be able to develop that skill, so if that is what you are looking for in a city council member, I am not your guy!

Many of the questions centered on how the City council could just vote to spend $47,000,000 on the police-court without feeling any responsibility to “put the question” to the voters. Several answers were offered by the Mayor and Administrator:

1. As we are not going out for a millage, we do not need to have voter approval.
2. We live in a system of representative democracy, whereby we delegate to our elected officials the authority and responsibility to make the tough decisions for us.

The reality is that answers are correct but for some other question.  The only answer to the question posed by the group was that they did not look for voter support because they knew it would not pass!  Our City Administrator also understands that the only issues that stand a chance to pass muster with the cash strapped Ann Arbor voters are warm fuzzy issues like public safety, green initiatives, retiree healthcare plans for City workers, parks and public transportation.  If tapping the City piggy bank for a $20M down payment leaves us short of funds in the future, it will be put back to the voters disguised as an item off the warm and fuzzy list. 

Growing up I spent a lot of time with my friends exploring the storm sewers on Scio Church Road. (I am sure some of you reading this know where they are.) I lived on Weldon Blvd so after a short walk we could spend a half day spelunking on a warm summer afternoon and fantasize about “giant ants” living and breeding just around the next bend of the large concrete jungle.  All that was before kids could actually slay imaginary creatures with “real blood spilled” right in the comfort of their own room on a computer screen.  I must admit that after 1965 I spent more time above ground than below and now the memories of that underground maize of concrete tubes has faded into black and white.  Sometimes I wonder if the ants are still there.

I am sure that if you are like me you don’t really think about how our drinking, storm and waste water are distributed about the city until something goes wrong.  We are fortunate that the things we take for granted are in very professional hands.  Last week I spent an hour with the brains behind the Waste Treatment Plant and this week I met with their boss, Sue McCormick.  Sue refers to her organization as “Infrastructure R Us”.  Sue McCormick is one of the most professional public sector top level managers I have ever met. Once again I am impressed with the technical expertise and depth and breadth of knowledge that we have on staff.  Earl Kenzie, P.E. our Waste Treatment Manager, and his right hand man, Mike Amicangelo, Senior Utility Engineer at the Treatment Center personify the theory that “good people make up for bad equipment every day”!  We are lucky to have them working for us as the equipment they are using was made in 1936 and not updated until 1974!  I don’t need to tell you what happens when what they work on stops working! 

Next stop on the campaign trail is the Wheeler Center with Karla Henderson. 

I am an announced candidate for City Council for Ward 2 on a platform of fiscal responsibility and community involvement. Toward that end, I have spent much time analyzing the arguments for and against the proposed $47,000,000 renovation of the Guy Larcom Jr. Municipal Building objectively.  I have personally interviewed the Police and Fire Chiefs, Planning and Zoning officials, the County Administrator , County Treasurer and a County Commissioner, current and former City Council members, Waste Water Treatment officials, DDA, Main Street Area Association, The Ann Arbor Chamber, The State Street Area Association, University of Michigan officials, business and community leaders and hundreds of residents in my Ward. I also have exchanged e-mails with Tom Crawford the City Chief Financial Officer. I thank everyone for their input.

My conclusion is that the Mayor and a group of City Council members and City Administration have already decided that they are willing to spend $47M of our money unnecessarily to correct a $4M problem while they ignore a $100M problem to fix our crumbling waste treatment infrastructure and an even greater $140M financial and moral obligation to our city worker’s retiree medical benefits.  Both of these obligations will have to be dealt with in the next two to three years, at a time when our City will be facing other significant financial obligations related to core services. 

Therefore, I believe the City should permanently table the current plans for the police-court building financing and place the decision to fund this project to the voters in the form of a referendum on the next ballot.   

In light of an economy that saw 2200 homeowners go into foreclosure in 2007and more on the way, shelving the $47 million plans to renovate Larcom is the only logical decision we can make now.  We can finish drawing the plans for the complete renovation so we will have them on hand if the economy starts to show signs of improvement in 2009 or 2010 and other more cost effective solutions cannot be found. 

What do we do in the interim?

• One, we should proceed with the much needed but more modest renovation to the police space.
• Two, start negotiations with the County to build a combined Court Facility that would accommodate all City and County Courts.  There is a substantial cost saving available to us in construction and operational costs if we can accomplish that. 
• Let the citizens of Ann Arbor decide on a ballot initiative if there is support to invest a substantial portion of our current “rainy day” funds and bond capacity in a flashy display of civic pride. 

I would hope that as a City we will recognize our moral obligations to our public retirees and invest our money in the only “real assets” the City has, its employees,  then core infrastructure before we invest in bricks and mortar that really is only a superficial display for visitors to our city. 

Every time I attend the college graduation of one of my son’s friends or the son or daughter of family friends, I am reminded of the somber folk tale read to us when we were children “The Pied Piper of Hamlin”. You all remember the story of how the children of Hamlin were mysteriously lead away by the piper when the residents of Hamlin, Germany failed to make good on their promise to “Pay the Piper” after he cured a rat infestation. The Brother’s Grimm never revealed the ultimate fate of the children but one theory is that they were lured away by the 13^th century equivalent of a “head hunter” to help colonize parts of Eastern Europe. [1] The grim reality is that like the children of Hamlin, our children and other young professionals are leaving Michigan in droves for greater opportunity in cities like Chicago, Washington DC, Atlanta, Denver and Boston. My most recent reminder was after a recent MBA graduate and new client of my office informed me that he was the only graduate from the University of Michigan MBA Class of 2008 that was staying in Ann Arbor. What a tragedy!

Why should we be concerned about this modern day brain drain? Several weeks ago I was lucky enough to have coffee with a local expert, Lou Glazer of Michigan Future, a local nonpartisan think tank. Lou started me thinking (I guess that is what ‘think tanks” are supposed to do!) about what we as a city can do to “pay the piper” to keep our young professionals from being lured to greener pastures. Some of what we discussed disturbed me more than the Brother’s Grimm. We all understand that it is foolish to expect a recovery in the Big Three that will restore the Michigan economy to the “Good Old Days” of job security, 30 years and out, defined benefit pension plans and lifetime medical insurance. Lou maintains that the best hope for Michigan is for us to transform our economy from a manufacturing base to a “knowledge based economy”. Management Guru, Gary Hamel said it best in his recent best seller about the transition from “bolts and rivets” to “bits and bites” when he points out the inscription on the back of the Apple iPod, “Designed in California, made in China”. [2] Now you can begin to see the problem of losing all our college graduates…. who is left to design the next iPod?

Consider also…if we are lucky enough as a city to attract a dozen more “Google’s” to Ann Arbor, how will they find qualified employees? If our pool of talented young professionals dries up completely, why would the next “Google” even want to locate here to begin with? Finding the answers to these questions is the key to keeping Ann Arbor as the “World Class” city we are accustomed to and to position ourselves as the economic wind that will help propel the rest of the state out of the financial “Horse Latitudes” and into the “Trade Winds”.

My personal thoughts are that we need to revitalize downtown Ann Arbor to better accommodate these young professionals. Providing a “hipper” downtown with affordable housing suitable for the “Millennials” as they are sometimes referred to with plenty of parks, arts and public transit is a good place to start. Sounds like a place even a baby boomer would be proud of! How would you suggest we “stir the pot” to get things started? Let me know.

[1] Die Rattenfängersage aus namenkundlicher Sicht, in: Niedersächsisches Jahrbuch für Landesgeschichte 69 (1997), pp125–183 courtesy of Wikipedia.

[2] Hamel, Gary with Bill Breen, The Future of Management, (Harvard Business School Press, 2007) Pg. 60.

As I have never run for public office I am a bit mystified by the whole political process. In order to get on the official ballot, I needed 100 signatures from registered voters in Ward 2. Thanks to those of you that signed. Seems like many people thought I was trying to steal their identities and would not sign and I have heard some horror stories about candidates not getting their Nominating Petition in one time, signing and dating it wrong or any number of things that can make the signatures invalid. I pride myself on my organization skills and diligence so I went to great length to make sure my petitions were submitted on time and correctly. After much unnecessary anxiety, I got the call from the City Clerk’s office after only 4 hours of waiting and I am now an official candidate for City Council in Ward 2.

Very efficient job by the City Clerk’s Office.

As I get into this campaign more and more I am finding that we are blessed as a City to have such great and talented people staffing our City offices and getting the jobs done despite budget and staffing cuts. My hat’s off to them. I have been trying to get out and meet as many of them as I can. Last week I met with Mark Lloyd of Planning and Zoning. Mark is an amazing person that seems to be responsible for almost everything! You may recognize him as the person that magically appears on CTN when council members have a question on a building or zoning issue. Turns out that he wears a lot more hats than we know and I wonder how he has time to get it all done. Thanks Mark for a job well done.

I have announced my candidacy for Ann Arbor City Council for Ward 2.

But first let me express my personal thank you to Joan Lowenstein, our current councilwoman. Joan has tirelessly served our ward for 6 years and deserves our appreciation. Joan is running for 15^th District judge and I wish her the best of luck in her new endeavor. She is open-minded, fair, and deliberate and will make an outstanding judge.

Many of you have asked me why I want to get involved with politics, especially Ann Arbor politics. That is very good question and I would like to address it because it gets right to the heart of what I plan to do if I am elected.

For much of the past half-century, it has been Ann Arbor’s good fortune to have two large and stable employers in the area. As a result, Ann Arbor has been isolated from the devastating effects of the Michigan and to a lesser extent the national business cycle that have inflicted considerable economic hardship on most of our great state. Over the past two years however there are a number of secular changes that have taken place in our economy that have created a “Perfect Storm” of events that have brought the current recession inside the boundaries of Washtenaw County and to the doors of our city.

Evidence of the sea change of economic events has become obvious to most of us but many of our residents and elected officials are still trying to do business as usual. Unfortunately, this time “it is different” and with the synergistic effects of the departure of Pfizer, the continued restructuring of our automobile industry and consequent job losses, the mortgage liquidity problem, declining real estate values, escalating health care costs and an already high tax structure, it is no wonder that many residents are finding it hard to make ends meet.

I love Ann Arbor and have made it home for myself and my family for 45 of my 60 years. So consider:

• How can I sit by and watch and listen to City Council debate spending $47M on a renovation for our municipal building while 2200 residents of Washtenaw County lost their homes in 2007?
• How can I watch a number of restaurants in our community struggle or close while an inexpensive liquor license is selfishly awarded to our municipal golf course?
• How can I not do something when our kids are all leaving, maybe for good, when we have solid developers that want to invest millions in downtown buildings, some that have been vacant for years and the City Council votes it down?
  

I am certain you have many of your own concerns and I would love to hear them. That is how participatory democracy works.

Rather than leaving the future of Ann Arbor to the whims of the politics as usual mindset, I would like to test my leadership skills, honed by military service and business building, to help Ann Arborites articulate a vision of where we would like to be in ten years, begin to put a world class team together to help get us there and then start to create an environment that will allow dedicated men and women to deliver on that promise.

Over the next few months, I will put together the specifics of my plans to keep Ann Arbor a great place to live work and raise a family. I welcome your ideas and suggestion and promise I will do my best to make sure that we all have a say in how we are going to get there.

Paid For by The Stewart Nelson For City Council Committee