Number
241217
Version
SUBSTITUTE 1
Reference
221233
Sponsor
ALD. DIMITRIJEVIC
Title
Substitute resolution relative to acceptance and funding of a grant agreement through the United States Department of Energy Communities Sparking Investment in Transformative Energy funding opportunity in support of the Environmental Collaboration Office’s Milwaukee’s All Electric, Affordable Net-Zero Energy Homes Project.
Analysis
This resolution authorizes the Environmental Collaboration Office (ECO) to accept a $3,590,000 Cooperative Agreement through the United States Department of Energy’s Communities Sparking Investment in Transformative Energy funding opportunity. The funding supports the Environmental Collaboration Office’s Milwaukee’s All Electric, Affordable Net-Zero Energy Homes Project. $3,400,000 of the project cost is federally funded, and the $190,000 local share is provided by staff time from existing City staff ($50,000 total over three years), ECO’s Climate Planning and Program Fund ($90,000 total over three years), and UWM ($50,000). The project will develop affordable, Zero Energy Ready Homes (ZERH) on vacant lots in Low-Income/Disadvantaged Communities supported by new, off-site manufacturing of ZERH wall panels. This proposal is guided by the national Advanced Building Construction Collaborative, implements major strategies in the Collective Affordable Housing Plan and Milwaukee’s Climate and Equity Plan. The project targets disadvantaged area communities in Milwaukee such as Harambee, Lindsay Heights, and Century City-Triangle neighborhoods for the development of twenty-five new homes on existing vacant lots featuring energy-efficient appliances and heating systems that run on electricity rather than natural gas. The funding supports a new, grant-funded position in ECO to manage the project for three years. The resolution further authorizes ECO to enter into subrecipient agreements with Northwest Side Community Economic Development Corporation, UW-Milwaukee, Rocky Mountain Institute, a workforce development partner to be selected at a later date, and qualified local housing developers or community housing development organizations for the construction of the homes. The project will provide a $40,000 per unit gap financing that can be combined with other city-funded housing developments.
Body
Whereas, the City of Milwaukee adopted a Climate and Equity Plan in June 2023 with goals of reducing community-wide greenhouse gas emissions 45% by 2030 and achieving net-zero greenhouse gas emissions by 2050 while creating good-paying green jobs that pay at least $40,000 per year with a focus on recruiting workers of color into these green jobs; and
Whereas, “New, Net-Zero Energy Housing” is one of the Ten Big Ideas in the Climate and Equity Plan; and
Whereas, the major focus of the New, Net-Zero Energy Housing chapter is building healthy, affordable, net-zero energy homes on Milwaukee’s scattered vacant lots; and
Whereas, the project envisions supporting a new factory in Milwaukee that constructs housing components such as wall panels year-round to both reduce the cost of new home construction and restore manufacturing job opportunities; and
Whereas, the project will include a Community Benefits Plan and Community Engagement Plan to provide lasting improvement in Milwaukee’s disadvantaged communities; and
Whereas, the project includes a collaboration between the Northwest Side Community Development Corporation, Rocky Mountain Institute, University of Wisconsin-Milwaukee School of Architecture and Urban Planning, and a prospective workforce housing partner; and
Whereas, the stated goal of the United States Department of Energy’s Communities Sparking Investment in Transformative Energy (C-SITE) funding opportunity is to support eligible tribes and local governments to implement projects that provide direct community benefits, spark additional investments, meet community-identified priorities, and build local capacity; and
Whereas, the City proposes a comprehensive approach to develop a supply of this housing: 1) Technical assistance on ZERH standards/technologies to developers, builders, and architects; 2) Purchase of demonstration wall panels, testing, and hands-on training for ZERH construction including review of market-ready wall-panel systems, 3) Gap-financing for 25 new units of ZERH, all-electric homes in Low-Income and Disadvantaged Communities with a $40,000 subsidy each, and 4) Support of off-site manufacturing of housing components for ZERH wall panels; and
Whereas, The City of Milwaukee’s Environmental Collaboration Office has been notified of selection for a $3,590,000 Cooperative Agreement through the C-SITE funding opportunity, of which $3,400,000 is federally funded and $190,000 is locally funded; and
Whereas, the estimated period performance for this cooperative agreement is three years from agreement execution; now therefore be it
Resolved, By the Common Council of the City of Milwaukee, that the Environmental Collaboration Office shall accept this Cooperative Agreement without further approval, unless the terms change as indicated in Section 304-81 of the Milwaukee Code of Ordinances; and, be it
Further Resolved that the City Comptroller is authorized to:
1. Commit funds within the Project/Grant Parent of the 2025 Special Revenue-Grant and Aid Projects the following amount for the project titled: Zero Energy Ready Homes
Project/Grant GR0002500000
Fund 0150
Org 9990
Program 0001
Budget Year 0000
Sub Class R999
Account 000600
Project Grantor Share
Amount $3,400,000
2. Create the necessary Grant and Aid Project/Grant and Project/Grant levels; budget against these Project/Grant values the amount required under the grant agreement;
3. Establish the necessary City Share Project Values; and, be it
Further Resolved, that these funds are budgeted for the Department of Administration- Environmental Collaboration Office which is authorized to expend from the amount budgeted for specified purposes as indicated in the grant budget and incur costs consistent with the award date; and be it
Further Resolved, the Department of Administration- Environmental Collaboration Office is authorized to execute subrecipient agreements with Northwest Side Community Development Corporation, Rocky Mountain Institute, UWM-Milwaukee, qualified housing developers and community housing development organizations, and a workforce development partner as outlined in the project plan and grant budget; and be it
Further Resolved, That the 2025 Positions Ordinance shall be amended as follows:
Under:
The Department of Administration
Environmental Collaboration Office
Add one FTE position of ‘Environmental Sustainability Program Manager (ZERH)’, and
Add footnote ZERH as follows:
(ZERH) Position funded by United States Department of Energy C-SITE grant for Zero Energy Ready Homes. Position Authority for the Environmental Sustainability Program Manager to expire at the end of the grant period unless the C-SITE agreement is extended or related grant funding is secured.
Requestor
Department of Administration - Environmental Collaboration Office
Drafter
Erick Shambarger
12/4/2024