Ann Arbor City Council: October 6, 2025

This Ann Arbor City Council meeting was held in person at City Hall. Members of the public can participate in public hearings and public comment either in person or via phone.

A2Council Update Video

Ann Arbor City Council Meeting Summary

APPROVED: The City will accept and appropriate grant funds from the US Department of Energy to support a district geothermal system in the Bryant neighborhood. An assistance agreement with the DOE for $10,778,167 will fund designs and permitting, workforce development, public engagement, competitive bidding, construction and testing of the system. (Legistar)

• https://www.mlive.com/news/ann-arbor/2025/10/truly-miraculous-ann-arbor-secures-108m-federal-grant-for-renewable-energy-project.html

APPROVED: As part of the district geothermal system in the Bryant neighborhood, the City will use $560,000 of federal grant funds from the US Department of Energy to enter into a Subrecipient Grant Agreement with UA 190 – IBEW 252, LLC for geothermal workforce development. (Legistar)

• Council Member Eyer’s business – “Eyer Consulting” – has been paid over $65,000 by IBEW 252, as reported to the federal Office of Labor-Management Standards. See search for “Eyer Consulting”: https://olmsapps.dol.gov/olpdr/#Union%20Reports/Payer/Payee%20Search/
• In discussion, Council Member Eyer offered the only comment. She advocated for this award and did not ask to be recused.
• The City’s A2Zero plan has a dedicated page on the website for IBEW 252. https://www.ibewneca252.org/a2zero

APPROVED: City procurement policy is amended to allow purchases (and disposal of City property) up to $90,000 without the approval of City Council. Previously, transactions up to $75,000 were permitted without a vote of City Council. (Legistar)

• Prior to 2021, purchases over $25,000 required a vote of City Council. In 2021, voters approved a City Charter Amendment to raise this limit to $75,000. That Charter amendment permitted ongoing adjustments based on the rate of inflation.
• Other changes will allow the disposal of property valued at up to $5,000 by whatever method is deemed “in the best interest of the City” and raise the threshold requiring formal solicitation of bids. Moving forward, up to $50,000 can be spent without a formal request for proposals or invitation to bid.
• Staff summarized another amendment this way: “Section 1:234.5 [will] allow City Council to use its own discretion in determining best value in contracts that involve public-private partnerships for real estate development, rather than using the City Administrator’s scoring rubric. These types of contracts often have substantially different considerations than typical contracts for public improvements.”
• The Council Administration committee discussed this amendment at their meeting on July 8, 2025. Based on the Mayor’s suggestion, a term was added allowing that future adjustments to the spending limit could happen without a vote of Council. The Mayor explained that this would provide “flexibility and efficiency.” The City Administrator would update Council via memo or report, informing them that he has increased his own spending limit based on inflation. At the 9/15/25 meeting, this term was removed by amendment.
• https://www.mlive.com/news/ann-arbor/2025/10/city-contracts-under-90k-dont-need-city-council-approval-ann-arbor-decides.html

APPROVED: Amendments to the City marijuana ordinance change location restrictions relative to two addresses. Before this amendment, the ordinance prohibited the operation of a marijuana establishment within 1000 feet of a K-12 school. A location previously licensed for marijuana operations was recently assessed by the State and found to be in violation of the City ordinance, based on proximity to a preschool. (Legistar)

• This week’s amendment will meet the needs of dispensaries that are located too close to preschools.
• A dispensary on South Main recently changed ownership –  the state denied the new owners a license due to the location near Doughty Montessori preschool. Another dispensary – the Jungle Room –  is currently licensed and operating at similar proximity to Doughty.
• An amendment refers to the address of Doughty preschool (S. Ashley Street), directing that the 1000 foot distance requirement for k-12 schools be reduced to 250 feet relative to that location.
• Another street address is named, directing that the 1000 foot distance requirement be reduced to 750 feet for a dispensary currently operating on Research Park Drive. Crave Cannabis is currently operating within 1000 feet of the U School preschool.
• The amendment will be effective in ten days, for one year only.
• Last month, City Council directed the Planning Commission to consider multiple amendments to the marijuana ordinance: reducing K-12 school distance requirements, eliminating permits for “special exception use,” changing provisions for growing and processing, and lifting the cap on the number of retailers. https://a2council.com/ann-arbor-city-council-august-7-2025/
• https://www.mlive.com/news/ann-arbor/2025/09/ann-arbor-making-exceptions-to-keep-marijuana-dispensaries-near-schools-in-business.html

APPROVED: A cost sharing agreement with the University of Michigan will allocate costs for updating sewer capacity, which is needed to accommodate 4,800 new beds of student housing. (Legistar)

• AMENDMENT APPROVED: Terms will be added to clarify that the University of Michigan will cover 90% of any additional costs related to wet weather delays.
• The University of Michigan is building two large dormitories:
  • 2,300-bed student residence facility and a dining facility on the former Elbel Field property bounded by Hill Street, South Division Street, East Hoover Street, and the Ann Arbor Railroad tracks.
  • 2,500-bed student residence facility and a dining facility on the block bounded by Hill Street, South Fifth Ave, East Madison Street, and South Division Street.
• In anticipation of that expansion, the City and the University have negotiated an agreement to share the cost of updating City sewer infrastructure. From the agreement: “portions of the City’s sanitary sewer collection system do not have adequate capacity under certain conditions to receive and accommodate all of the new projected sanitary flows from the University’s Student Housing Complex without improvements to the City’s sanitary sewer collection system.”
• Under the agreement, the City will cover the following costs:
  • $1,800,723.96 for “1,520 feet of 36-inch sanitary relief sewer needed to accommodate projected new flows” 
  • $5,040,000.00 for “lining of approximately 4,000 feet of existing 36-inch sanitary sewer pipe to both accommodate projected flows… and to perform maintenance.”
• The total project cost is estimated at $23,048,065.13. The cost share between the City and the UM:
  • City: $6,840,723.96
  • UM: $16,207,341.17
• https://www.mlive.com/news/ann-arbor/2025/10/new-university-of-michigan-dorms-spur-need-for-23m-ann-arbor-sewer-upgrade.html

APPROVED (First Reading): A phrase is added to the Bylaws of the Transportation commission, stating that the commission will advise on safety related programs “including consideration of vehicle and pedestrian crash information and recommendations for crash prevention provided by City staff.” (Legistar)

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