Title
Resolution to Order Election and to Determine Ballot Question for Charter Amendment for Creation of a Sustainable Energy Utility (7 Votes Required)
Staff
Reviewed by: Atleen Kaur City Attorney
Body
Whereas, In November of 2019 Ann Arbor City Council unanimously passed a Climate Emergency Declaration and established the goal of a just transition to community-wide carbon neutrality by 2030;
Whereas, Ann Arbor City Council unanimously adopted the A2ZERO Carbon Neutrality Plan in June of 2020 as a means to achieve that carbon neutrality goal;
Whereas, In furtherance of its carbon neutrality goal, the City of Ann Arbor retained the team of 5 Lakes Energy, SunStore Energy, Potomac Law Group and NewGen to explore potential energy option pathways to achieve the A2ZERO vision;
Whereas, On September 26, 2023 a work session of City Council was held during which the City’s consultant team presented their “100% Renewable Energy Options Analysis Technical Report;”
Whereas, A key recommendation in the 5 Lakes Energy Technical Report was to pursue a Sustainable Energy Utility (“SEU”) to accelerate renewable energy in the City and provide resilience within the City of Ann Arbor;
Whereas, Following the work session City Staff received the consultants’ models late in 2023 and undertook significant work to validate and re-calibrate the models, as needed, to ensure their applicability to the Michigan context, especially considering the new clean energy laws that were enacted;
Whereas, Based on all these combined efforts and Council’s direction, City Staff provided a report to Council in February of 2024 summarizing recommendations related to electricity-related energy options to achieve the City’s A2ZERO goal;
Whereas, In the February 2024 report, City Staff recommended that the City invest in three core actions to advance progress toward A2ZERO’s 100% renewable electricity goal, the first of which was to “put the formation of a Sustainable Energy Utility to a vote of the people;”
Whereas, City Council finds the recommendation regarding an SEU to be a key step toward achieving the A2ZERO goal while increasing resilience, lowering energy costs for participants, and giving citizens more choices and power over their energy options; and
Whereas, November 5, 2024 is the next regular election;
RESOLVED, That the Ann Arbor City Council proposes that the City Charter be amended by adding Section 15.10 to read as follows:
Creation and Operation of a Sustainable Energy Utility
SECTION 15.10. The City of Ann Arbor shall establish, construct, own and operate within its boundaries an opt-in, publicly-owned Sustainable Energy Utility (“SEU”) to (i) supply, generate, transmit, distribute, and store electricity, heat, cooling, light, and power (all from renewable sources); and (ii) provide energy-related services. The SEU will be fee-based.
RESOLVED, That November 5, 2024 is designated as the day for holding an election on the proposed Charter amendment;
RESOLVED, That the Clerk shall transmit a copy of the proposed amendment to the Governor and Attorney General of Michigan and perform all other acts required by law for holding the election;
RESOLVED, That the proposed Charter amendment shall appear on the ballot in the following form:
ANN ARBOR CITY CHARTER AMENDMENT
CREATION OF A SUSTAINABLE ENERGY UTILITY
The City of Ann Arbor proposes to create within its boundaries an opt-in, publicly-owned Sustainable Energy Utility (“SEU”) to (i) supply, generate, transmit, distribute, and store electricity, heat, cooling, light, and power (all from renewable sources); and (ii) provide energy-related services. The SEU could, for example, provide individual or networked rooftop solar panels, heat pumps, geothermal systems, or batteries to customers to supplement existing utility services. The SEU will be fee-based. This proposal does not authorize new taxes.
Shall the Charter be amended to authorize the City to establish, construct, own, and operate an opt-in Sustainable Energy Utility?
¨ Yes ¨ No
RESOLVED, That the proposed Charter amendment and proposed ballot question be published in full in the Washtenaw County Legal News and on the City’s website; and
RESOLVED, That if the amendment is adopted, it shall take effect on January 1, 2025.
Sponsored by: Mayor Taylor and Councilmembers Radina, Briggs, and Disch