Title
Resolution to Approve An Amendment to the Circular Economy Grant Agreement with the Michigan Department of Environment, Great Lakes, and Energy to Amend the Budget to Lower the City’s Required Match Amount
Memorandum
On August 18, 2024, staff in the Office of Sustainability and Innovations (OSI) applied for grant funding from the Michigan Department of Environment, Great Lakes, and Energy (EGLE) through their NextCycle Circular Economy Grant program, to create a circular economy action plan. After some delays from the State, the City was alerted that it had won this grant and given the grant agreement. On March 17, 2025 City Council approved a resolution to accept and appropriate this grant funding and all grant forms were signed on March 18, 2025.
Unfortunately, because of the delay in getting the grant agreement from the State, match funding that the City had included in its original grant proposal had already been expended by the time the final grant award was signed. This meant that the majority of the originally proposed match portion of the grant award could no longer count towards the required match.
In light of this, OSI staff started working with EGLE to amend the grant agreement to edit the match portion of the award, explicitly removing funding that had already been expended to support the City’s contract with G.O. Williams & Associates LLC (G.O. Williams), putting some match towards the City’s contract with Kittali Weidner LLC, and lowering the amount of required match from 48% to approximately 20%. The State agreed and also encouraged the City to condense its workplan to have fewer line items in its approved budget.
After some discussion with the State, a final revised proposed budget amendment was landed upon. This proposed budget amendment will reduce the City’s match from $91,000 to $25,625 (approximately 20% of the total award). Of this match, $3,125 will be for final close out work with G.O. Williams (work that is now complete) and $22,500 will go towards the Kittali Weidner LLC contract (should Council approve this resolution). With this change, the total grant budget has been reduced from $190,630 to $125,255 ($25,625 from the City and $99,630 from the State award). This reduction is directly related to the City having a lower match requirement - it does not represent an actual decrease in program spending.
Below is a summary of the new, amended budget we have negotiated with the State. This budget still maintains the full scope of work but reduces the match requirement and condenses budget expense categories:
• Match funded: $3,125 for the contract with G.O. Williams (work completed).
• Grant funded: $77,000 for the contract with Kittali Weidner LLC to conduct business/institutional engagement and circular economy action plan writing.
• Match funded: $22,500 as a match for the Kittali Weidner LLC contract.
• Grant funded: $16,630 for community engagement and events.
• Grant funded: $6,000 for design and outreach materials related to circular economy and the circular economy action plan.
If authorized by Council, this grant amendment will also allow the City to access grant funds for community engagement, and these grant funds are extremely flexible to ensure we can respond to the needs and desires of the community.
Budget/Fiscal Impact: Funds from this grant award will be used to cover $99,630 in project expenses over 18 months. Match funding of $25,625 is available through the Office of Sustainability and Innovation’s budget, $22,500 of which is yet to be spent. This is a 20.46% match for the grant funding.
Staff
Prepared by: Missy Stults, Sustainability and Innovations Director
Reviewed by: Valerie Jackson, Assistant City Attorney
Reviewed by: Marti Praschan, Chief Financial Officer
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The Office of Sustainability and Innovations submitted a grant application to the Michigan Department of Environment, Great Lakes, and Energy to advance circular economy focused engagement, which included $99,500.00 in funding to support business and institutional engagement and the creation of a Circular Economy Action Plan along with a $91,000 match from the City;
Whereas, In December 2024, the Office of Sustainability and Innovations’ grant application was selected for an award by the Michigan Department of Environment, Great Lakes, and Energy;
Whereas, In March 2025, City Council, via resolution R-25-089, authorized receipt and appropriation of this grant award;
Whereas, In August 2025, City Council, via resolution R-25-302, authorized a Professional Services Agreement with Kittali Weidner LLC to support the City’s circular economy action planning, funded through the Michigan Department of Environment, Great Lakes and Energy grant;
Whereas, The City’s successful grant application included match funding for the City’s contract with G.O. Williams & Associates LLC, but work under this contract was completed ahead of schedule and before the City received its final grant agreement from the Michigan Department of Environment, Great Lakes and Energy;
Whereas, Once the State alerted the City that the majority of the work on the G.O. Williams & Associates LLC contract would not be eligible for the City’s required match, the State and City began negotiating an amended grant budget;
Whereas, The State and City agreed to lower the City’s match requirement to $25,625 from the original $91,000 and to condense the approved budget categories to offer maximum budget flexibility; and
Whereas, This amendment will necessitate that $22,500 from the City’s match go towards the approved Professional Services Agreement with Kittali Weidner LLC;
RESOLVED, That City Council approve amending the Circular Economy Grant Agreement between the Michigan Department of Environment, Great Lakes, and Energy and the City of Ann Arbor to amend the grant budget, lowering the City’s required match amount to from $91,000 to $25,625 and maintaining the grant amount of $99,630.00, following approval by the City Attorney and City Administrator;
RESOLVED, That City Council authorize $22,500 from the Office of Sustainability and Innovations FY26 budget to be used towards the existing Kittali Weidner LLC contract;
RESOLVED, That all amounts herein are without regard to fiscal year; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.