Number
140861
Version
SUBSTITUTE 1
Reference
100007, 100769, 121139, 121591, 130576, 131139
Sponsor
ALD. KOVAC
Title
Substitute resolution amending agreements for the administration of the Milwaukee Energy Efficiency program.
Analysis
In 2010, the Cities of Milwaukee, Madison, and Racine partnered with the Wisconsin Energy Conservation Corporation and received grant funds from the US Department of Energy to facilitate energy efficiency improvements in residential and commercial buildings. In the original agreement, the Wisconsin Energy Conservation Corporation was the Prime Recipient of these grant funds, with the respective cities acting as Sub-recipients. In the City of Milwaukee, these grant funds launched and supported the Milwaukee Energy Efficiency program, or Me2. The term of the grant and the City's associated contract with the Wisconsin Energy Conservation Corporation is scheduled to end November 1, 2014. At that time, all of the City of Milwaukee's grant funds will have been expended, with the exception of approximately $200,000 in funds that remain at Summit Credit Union as a loan loss reserve to support past and new Me2 consumer loans. The US Department of Energy allows and intends grant funds to operate indefinitely to support the program going forward. This resolution establishes the relationships of the parties going forward, with the City of Milwaukee acting as the Administrator of the program in the post grant period. In the post grant period, the Cities of Milwaukee and Madison will continue to operate their respective loan programs. The City of Milwaukee Department of Administration will collect reports from the City of Madison and submit a single annual report to the US Department of Energy to report on both programs.
Body
Whereas, The Wisconsin Energy Conservation Corporation ("WECC") on behalf of the Partner Cities of Milwaukee, Madison, and Racine, Wisconsin, ("Partner Cities") filed an Application for and received a grant award from the United States Department of Energy ("DOE") in Funding Opportunity Announcement Number DE-FOA-0000148 Recovery Act: Energy Efficiency and Conservation Block Grant; Competitive Solicitation: Retrofit Ramp-up and General Innovation Fund Programs in the amount of $20 million; and
Whereas, The Wisconsin Energy Efficiency ("WE2") Project is the common name given to the project across the Cities of Milwaukee, Madison and Racine as described in the Cooperation Agreement between WECC and the City of Milwaukee, dated July 27, 2010, including all amendments thereto ("WECC-Milwaukee Agreement 2010"); and
Whereas, The Milwaukee Energy Efficiency ("ME2") Program represents the WE2 Project activities as they are carried out in the geographic limits of the City of Milwaukee; and
Whereas, WECC and Milwaukee jointly operated the Me2 program under a Cooperation Agreement with a term of July 27, 2010 to November 1, 2014; and
Whereas, WECC, at the direction of the City of Milwaukee, established a Loan Loss Reserve with Summit Credit Union to support affordable loans for energy efficiency projects; and
Whereas, WECC and Madison jointly operated the Green Madison program under a Cooperation Agreement with a term of November 1, 2010 to November 1, 2014; and
Whereas, WECC and the City of Racine operated the Racine Energy Efficiency program (Re2) under a Cooperation Agreement with a term of September 19, 2011 to October 1, 2013 ; and
Whereas, During these respective time periods, WECC was the Prime Recipient of the Department of Energy grant and the Cities operated as Subrecipients; and
Whereas, After the grant period of performance ends on November 1, 2014, the Department of Energy still intends a portion of the original grant funds to be used to fund "evergreen" financing programs, such as Revolving Loan Funds ("RLFs"), Loan Loss Reserves ("LLRs") and Interest Rate Buydowns ("IRBs"); and
Whereas, the Wisconsin Energy Conservation Corporation desires to minimize its role in these programs going forward; and
Whereas, The Cities of Milwaukee and Madison intend to continue providing affordable loans or other eligible financing into the future, which necessitates annual reporting to the US Department of Energy, after the expiration of the original grant period; and
Whereas, the Department of Energy will only accept one set of annual reports from both Milwaukee and Madison; now therefore be it
Resolved, that the Department of Administration is authorized to amend its agreement with the Wisconsin Energy Conservation Corporation in substantially similar form as attached to this resolution, with the City of Milwaukee assuming the role of Administrator in the post-grant period, in consultation with the City Attorney's Office; and
Resolved, the Department of Administration is authorized to enter into an agreement with the City of Madison in substantially similar form as attached to this resolution through which the City of Madison acts a Subrecipient to the City of Milwaukee for reporting purposes to the US Department of Energy, in consultation with the City Attorney's Office; and
Resolved, the Department of Administration is authorized to enter into an agreement with Summit Credit Union in substantially similar form as attached to this resolution for the purposes of continued operation of affordable Me2 loans, in consultation with the City Attorney's Office.
Drafter
DOA-OES
ES
9/19/2014