Proposal E for city-owned utility in Ann Arbor faces new lawsuit … from the city itself

This story was originally published by Michigan Public.

Ann Arbor for Public Power (A2P2) — the grassroots group behind Proposal E on the city’s upcoming November ballot — has put one lawsuit challenging the ballot question behind it, only to face a second one.

Proposal E would establish a new board to direct and manage the establishment of a city-owned electric utility. That utility, after a second vote, would replace DTE Energy as the city’s electric supplier.

In mid-August, a group funded almost entirely by DTE sued to try to keep the proposal off the ballot, arguing that the City Clerk mishandled the counting of signatures on petitions. The group, Ann Arbor Responsible Energy Coalition, lost the case in circuit court and also lost its appeal to the Michigan Court of Appeals.

But now, a new legal challenge has mounted, this time from the City of Ann Arbor, which seeks to have Proposal E declared invalid.

The lawsuit asserts that A2P2 chose to circumvent the more difficult, but proper, path of revising the city charter. Instead, the group put Proposal E forward as an amendment of the charter.

Proposal E represents a fundamental change to the structure of city government, and that is a revision, not an amendment, the complaint argues. Those fundamental changes include creating a new city division that is not fully under control of the city, as other divisions are, the complaint says, and transferring some of the city’s decision-making authority to the board.

City officials did not respond to a request for comment.

“I think (the lawsuit) is a pretty unfortunate move for our democracy,” said Brian Geiringer, Executive Director of A2P2. “I think that Ann Arborites really value free and fair elections. This really just feels like city council is attempting to prejudice voters against Proposal E, so it seems that this is political rather than really a legal issue.”

Ann Arbor City Council had voted earlier this month to oppose Proposal E.

Geiringer said he expects Proposal E to pass on Election Day on Nov. 3, which means the group will then need to find the resources to defend against the lawsuit. But he believes the city’s legal arguments are weak.

But what if Proposal E doesn’t pass?

“We’re planning on winning,” he said. “But if it doesn’t pass … we should defend the concept itself for if we, or if other other groups, choose to pursue a similar path in the future.”

Geiringer said his group would continue fighting for a city-owned, public utility, even if the group loses the lawsuit.

“What’s become clear through this year’s campaign is that there is a huge appetite within Ann Arbor to at least explore the public power option,” he said. “And in basically any scenario I see Ann Arbor for Public Power advocating for city council to pursue a second feasibility study that would give people a direct answer to what would happen if the city municipalizes.”