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SR 05-08-2018 3C City Council Report City Council Meeting: May 8, 2018 Agenda Item: 3.C 1 of 3 To: Mayor and City Council From: Susan Cline, Director, Public Works, Office of Sustainability & the Environment Subject: Accept Funding for the Green Business Certification Program Recommended Action Staff recommends that the City Council: 1. Adopt the attached resolution authorizing the City to accept a grant awarded in the amount of $20,000 from the California Green Business Network for the Santa Monica Green Business Certification Program, and to accept all grant renewals. 2. Authorize the City Manager to execute all necessary documents to accept the grant and all grant renewals. 3. Authorize budget changes as outlined in the Financial Impacts & Budget Actions section of this report. Executive Summary The City of Santa Monica’s Office of Sustainability and the Environment administers the Green Business Certification Program in order to increase the adoption of sustainable practices in the local business community. Santa Monica has operated this program since 2007, but recently became eligible for $20,000 in grant funds through the California Environmental Protection Agency. Since this is the first year State funding has become available, a resolution authorizing acceptance of $20,000 in year one, plus any future allocations, if awarded, is required. Background Assembly Bill No. 913 (Feuer) requires CalEPA to develop a California Green Business Program and provide support and assistance to local governments that provide voluntary green business certification programs for small- and medium-sized businesses. In 2017, the State budgeted $1,000,000 to continue these certification programs. The California Green Business Network (CAGBN) entered into Agreement 17EPA014 with CalEPA to manage the funds for existing and new programs as well as 2 of 3 report on usage and deliverables. CAGBN is allocating $20,000 to each network jurisdiction to reach new small- and medium-sized businesses locally. In February 2018, CAGBN informed the Office of Sustainability and Environment that $20,000 would be allocated for the Santa Monica Green Business Certification Program upon entering into an agreement with CAGBN. Discussion Santa Monica’s Sustainable City Plan identifies a Sustainable Local Economy as one of its nine goal areas. Participation in the Santa Monica Green Business Cer tification Program (Program) is one of the indicators associated with this goal area. The Program recognizes businesses that voluntarily adopt sustainable business practices into their operations. These practices include energy efficiency, reductions in greenhouse gas emissions, water conservation, and waste reduction. The Program was introduced in 2007 and to date the City has certified approximately 170 businesses. Santa Monica is one of 27 jurisdictions throughout California that operate local green business certification programs that make up the CAGBN. In 2017, State funding was established within the California Environmental Protection Agency’s budget to continue and expand the network model to serve 40,000 California businesses by 2040. CAGBN is allocating $20,000 to each of the 27 jurisdictions in the network. Since this is the first year State funding has become available, a resolution authorizing acceptance of $20,000 in year one, plus any future allocations, if awarded, is required. Upon agreement execution with CAGBN, the City would receive $10,000 for the Program. The remaining $10,000 would be contingent upon certification or re- certification of eight businesses by October 1, 2018. The City has certified approximately 20 businesses per year through the Program since 2010. The City would be required to commit matching funds, in the amount of $20,000, which may be met in any of the following ways:  staff and/or consultant time to assist and track businesses through the program; 3 of 3  staff and/or consultant marketing efforts;  business rebates for purchases that help businesses meet Program standards; and/or  staff and/or consultant travel expenses for events. Average Program spending over fiscal years 2015-16 and 2016-17 amounted to $39,850, and this year program costs are expected to be $38,000. No additional staff time or budget enhancement would be required to meet the matching fund requirements because the existing program budget and staff allocations exceed the match requirement. Financial Impacts and Budget Actions Award of a $20,000 grant from the California Green Business Network requires the following FY 2017-18 budget changes: 1. Establish revenue budget at account 20426.410410 in the amount of $20,000. 2. Appropriate $20,000 to account 20426.579998 to reflect receipt of the Green Business Certification grant. If renewals are awarded, budget changes will be included in subsequent year budgets, contingent on Council budget approval. Prepared By: Karl Bruskotter, Senior Sustainable Procurement Advisor Approved Forwarded to Council Attachments: A. Resolution REFERENCE: Resolution No. 11113 (CCS)