Title
Resolution to Approve Adding 1.0 Full Time Equivalent Position to the Sustainable Energy Utility (A2SEU) (8 Votes Required)
Memorandum
Background: Ann Arbor voters overwhelmingly supported the creation of the Ann Arbor Sustainable Energy Utility (A2SEU) in November 2024. City Council created the A2SEU as a department of the City via ordinance in 2025. The A2SEU’s first (and currently only) FTE, Executive Director Shoshannah Lenski, was hired in August 2025, with the understanding that the City was prepared to invest in adding two additional staff positions in the near-term to support the A2SEU. In the last six months, the A2SEU has made steady progress toward a pilot launch of services in fall 2026 and a larger-scale city-wide deployment in 2027. However, the work involved in starting a brand new utility is immense, and additional staff capacity is essential to ensuring that deployment plans remain on track.
The A2SEU is seeking to add one FTE at this time. The proposed operations manager role will have responsibility for developing and overseeing the A2SEU’s operations at launch and beyond, including first-year responsibilities to: lead the business-operations side of the A2SEU IT system implementations, in coordination with IT; establish asset performance metrics, monitoring, and dashboards; develop an equipment/inventory management approach including warehousing operations; create and maintain living A2SEU operations procedure manual and support continuous improvement.
Budget/Fiscal Impact: Grant funding from the State of Michigan Department of Labor and Economic Opportunity Resolution R-25-374 will cover the position costs through October 2026, and the U.S. Department of Energy geothermal grant Resolution R-25-380 is anticipated to cover approximately 50% of the position costs between November 2026 to November 2028. Remaining costs are to be covered in the A2SEU FY2027 (and beyond) budget which is being prepared for Council through the regular annual budgeting process. The costs of the position will be accounted so as to be recovered in A2SEU rates.
Staff
Prepared by: Shoshannah Lenski, A2SEU Executive Director
Reviewed by: Valerie Jackson, Assistant City Attorney
Reviewed by: Marti Praschan, Chief Financial Officer
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, Ann Arbor voters overwhelmingly supported the creation of the Ann Arbor Sustainable Energy Utility (A2SEU) in November 2024;
Whereas, City Council established the A2SEU as a department of the City by ordinance in 2025;
Whereas, The A2SEU’s first (and currently only) full-time equivalent (FTE) position, Executive Director Shoshannah Lenski, was hired in August 2025, with the understanding that the City was prepared to invest in additional near-term staffing to support A2SEU implementation;
Whereas, Over the last six months, the A2SEU has made steady progress toward launching a pilot of services in fall 2026 and a larger-scale city-wide deployment in 2027;
Whereas, Establishing a new utility requires significant operational planning and execution, and additional staff capacity is essential to keep A2SEU deployment plans on track;
Whereas, The A2SEU Department seeks to add one FTE at this time - an Operations Manager position - to develop and oversee A2SEU operations at launch and beyond;
Whereas, Grant funding from the State of Michigan Department of Labor and Economic Opportunity accepted by City Council via Resolution R-25-374 will cover the position’s costs through October 2026;
Whereas, The U.S. Department of Energy geothermal grant accepted by City Council via Resolution R-25-380 is anticipated to cover approximately fifty percent (50%) of the position costs from November 2026 through November 2028;
Whereas, Remaining costs are to be included in the A2SEU FY2027 budget, and subsequent years’ budgets, through the regular annual budgeting process; and
Whereas, The costs of the position will be accounted for so as to be recovered in A2SEU rates;
RESOLVED, That City Council authorize the addition of one (1.0) FTE for an A2SEU Operations Manager position in the A2SEU Department, consistent with applicable budget and hiring processes;
RESOLVED, That City Council authorize the increase of the City’s full-time equivalent positions by one (1.0), making the new total 868; and
RESOLVED, That the City Administrator is authorized to take all appropriate actions to implement this resolution.