Title
Resolution to Approve Adding 0.5 Full-Time Equivalent Position to the Office of Sustainability and Innovations (8 Votes Required)
Memorandum
On November 8, 2022, the people of the City of Ann Arbor voted in favor of an Ann Arbor City Charter Amendment to create a Tax for Community Climate Action. One of the approved uses of the millage is the creation of a local rebate program to help incentivize residential and commercial energy efficiency techniques, high-efficiency all-electric equipment adoption, electric modes of transportation, and renewable energy adoption.
To support creation of the local rebate program, the Office of Sustainability and Innovations issued a request for proposals in August of 2023 for a rebate designer and administrator. In total, four firms bid on this RFP with Elevate Energy being selected based on their qualifications and previous experience.
In the role of Rebate Administrator, Elevate has helped to create the processes for the rebate program, including growing the number of service offerings, creating the application materials, and helping nearly 1,000 residents access rebates. However, the program has now reached a point that staff believe it would be better administered in house. Bringing the rebate program in house would likely mean lower operating costs and quicker time between rebate application and check issuance, as well as allow for greater control over new program offerings and real-time feedback on program performance.
Currently the City pays Elevate $200,000.00 a year to administer the program. The proposal before Council is to continue the Rebate Administrator contract with Elevate through the end of fiscal year 2027, but to also hire a full time staff person in the Office of Sustainability and Innovations (OSI) who will administer the program starting July 1, 2027 (FY28). This new position will work closely with OSI and finance to help make sure that the rebate program is administered effectively and efficiently.
If authorized, staff plan to post for this new position in early 2027 so that the person can be hired and onboarded, with some overlap with Elevate. Doing this will allow the new FTE to learn about the Rebate program, relevant processes, and procedures directly from Elevate before the new hire has to take over the rebate program. This also gives the City time to train the new employee on the City’s financial processes, OSI programs, and internal processes. Then, starting in FY28 (July 1, 2027), the new hire will be responsible for rebate administration and Elevate will no longer be under contract with the City for rebate-related work.
To make this happen, the Office of Sustainability is seeking approval to add 0.5 FTE to the staff. The reason staff are only seeking 0.5 FTE is that the Office already has authorization for 0.5FTE, which has not been filled. By adding another 0.5FTE, OSI will have 1 FTE and be able to use that position to hire an internal staff member to serve as the rebate administrator.
No additional funding is necessary because the Office of Sustainability and Innovations has savings accrued from not hiring for the 0.5 FTE that is already authorized. As such, the Office will be able to cover the new position with existing FY27 budget and then, in FY28 and onwards, the Office will be able to cover the position through savings obtained by not paying for a third-party rebate administrator.
Budget/Fiscal Impact: Funding to support this work is available in the Office of Sustainability and Innovations Community Climate Action Millage budget.
Staff
Prepared by: Missy Stults, Sustainability and Innovations Director
Reviewed by: Valerie Jackson, Assistant City Attorney
Reviewed by: Marti Praschan, Chief Financial Officer
Reviewed by: Kim Buselmeier, Finance Manager
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, Ann Arbor voters overwhelmingly supported the creation of the Community Climate Action Millage in 2022;
Whereas, One of the authorized uses of the Community Climate Action Millages is a residential and commercial rebate program;
Whereas, Since fiscal year 2024, the Office of Sustainability and Innovations has been running a rebate program with the support of Elevate Energy, who has served as the City’s Rebate Administrator;
Whereas, The City’s three-year contract with Elevate Energy expires at the end of fiscal year 2027;
Whereas, The City has identified that it would be prudent to bring rebate administration in-house so that the program can be more closely monitored and adjusted as needed;
Whereas, The Office of Sustainability and Innovations already has authorization for 0.5 FTE;
Whereas, Finance and the Office of Sustainability and Innovations have discussed what a new staff position would look like, what responsibilities it would have, and how both units could support the position;
Whereas, Staff are seeking authorization to add 0.5 FTE to support bringing rebate administration directly into City operations; and
Whereas, Funding for this new position exists within the FY27 Office of Sustainability and Innovations approved budget and future year funding will be covered through the funding previously allocated for the external rebate administrator;
RESOLVED, That City Council authorize the addition of 0.5 FTE for a Rebate Administrator position in the Office of Sustainability and Innovations, consistent with applicable budget and hiring processes;
RESOLVED, That City Council authorize the increase of the City’s full-time equivalent positions by 0.5, making the new total 898.5; and
RESOLVED, That the City Administrator is authorized to take all appropriate actions to implement this resolution.