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CC - (1) Approval of an Agreement with Community Partners (dba Sustainable Works) to Continue the Citywide Sustainable Business Certification Program for a One-Year Term, with an Optional Second Year, in an Aggregate Amount Not-to-Exceed $186,000 ($176,000 Base Amount and $10,000 in Contingency Authority).
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Meeting Date: August 26, 2019
Contact Person/Dept: Joe Susca/Public Works-Administration
Phone Number: 310-253-5636
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: []
Commission Action Required: Yes [] No [X] Date:
Public Notification: (E-Mail) Meetings and Agendas - City Council (08/21/19); Community Partners and Sustainable Works (07/26/19); (E-Mail) the Downtown Business Association (08/21/19); (E-Mail) the Culver City Chamber of Commerce (08/21/19); (E-Mail) The Following E-Mail Distribution List Subscribers: Sustainability Subcommittee of the City Council, Sustainability / Environmental Issues, Public Notifications (08/21/19).
Department Approval: Charles D. Herbertson, Public Works Director / City Engineer (08/06/19)
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RECOMMENDATION
Staff recommends the City Council approve an agreement with Community Partners (dba Sustainable Works) to continue the City’s Sustainable Business Certification Program for a term of one-year, with an optional second year, in an aggregate amount not-to-exceed $186,000 ($176,000 base amount plus a $10,000 contingency).
BACKGROUND
Currently, 16 counties and 19 cities (including Culver City) are members of the California Green Business Network (CAGBN), a non-profit organization that creates the criteria to certify green and sustainable businesses statewide. The CAGBN establishes methods, standards, checklists, provides an online tool that quantifies the positive environmental impacts from implementing measures, fosters communication amongst its member agencies, and maintains a statewide directory of certified businesses. The City pays approximately $5,000 annually to be a member of the CAGBN, which membership is a condition to voluntarily implementing a local Green Business certification program.
Upon conclusion of a competitive process, on January 9, 2017 the City Council approved a two-year agreement with Community Partners (d.b.a. “Sustainable Works”) to custom design and implement the City’s first Sustainable Business Certification Program (the “Certification Program”). Community Partners is a non-profit organization who owns Sustainable Works and their mission is to turn ideas into action that advance the public good. Sustainable Works is a non-profit environmental education organization that is located on the campus of Santa Monica City College. Sustainable Works was established in 1998 with the primary purpose to educate and activate community members to make choices that reduce their ecological footprint on the earth.
The agreement with Sustainable Works, which concluded in April 2019, required them to certify a minimum of 10 businesses annually and in the first year, 12 businesses were certified. After the City received a $20,000 grant from the Environmental Protection Agency to supplement its Certification Program (through the efforts of the CAGBN), 20 businesses were certified in the second year.
DISCUSSION
Staff released a Request for Proposals (RFP) to continue the existing Certification Program for a third and potentially fourth year; inviting 10 local firms to respond in addition to posting the RFP on the City’s bidding webpage. A summary of the scope of services contained in the RFP are as follows:
The City certifies its sustainable businesses once every three years and offers the following two types:
“Certified” which is when a business adheres to all the minimum requirements established by the CAGBN, which include:
(i) Procurement: Buying practices that include following an Environmentally Preferable Purchasing practice, which is the procurement of goods and services that have a reduced impact on human health and the environment when compared to other goods and services serving the same purpose.
(ii) Food Waste Handling: If the business has a food service component, they are required to divert any organic material from the landfill via City programs such as composting/anaerobic digestion and donating any viable excess food to local food banks.
(iii) Transportation: The presence of bicycle racks on-site.
(iv) Energy Efficiency: Implementation of electricity and natural gas conservation measures that might be through active participation in Southern California Edison, Los Angeles Department of Water and Power and Southern California Gas programs designed to reduce use of the utility.
(v) Stormwater Runoff: Providing stormwater runoff education to all employees and actively participating in programs that minimize the generation of on-site stormwater pollution.
(vi) Water Conservation: Installation of potable water conserving devices, fixtures and equipment.
“Certified Innovator” includes all the “Certified” level components and adds the following additional requirements:
o Transportation: If a business has a fleet of vehicles, they must be powered by a means other than gasoline or diesel fuel.
o Economic Sustainability: The payment of living wages to employees and providing them healthcare insurance and paid time off for sick leave and vacations.
o Community/Social Responsibility: Businesses must adhere to the new “Community” tier criteria established by the CAGBN. That criteria includes contribution or support of one or more charitable organizations (or actively participating in local governance) and educating and incentivizing their employees’ participation in sustainable practices, and encouraging other businesses to become certified.
o Electricity: Businesses located in Southern California Edison territory must sign up with the Clean Power Alliance as their energy provider to meet their electricity needs at their 100% Green Power tier.
Specifically, the firm hired will:
a) Use a checklist based on business sector to perform a sustainability audit of their operations.
b) Develop an action plan containing tasks based on the audit results for the business to implement as a condition to receiving their certification.
c) Perform on-site verification that the action plan was implemented prior to awarding certification.
Staff received one proposal in response to the RFP from Sustainable Works. In addition to Culver City, Sustainable Works’ clients include the City and County of Los Angeles, West Hollywood and Santa Monica. Sustainable Works has written sustainability guidelines and currently conducts community workshops on sustainability, maintains active partnerships with local utilities, and has created and implemented the City of Santa Monica’s Green Business Certification Program since 2005. To date, 351 Santa Monica-based businesses have completed a 12-month Business Greening program administered by Sustainable Works and of those, 195 have become certified.
Sustainable Works’ proposal includes implementation of a marketing and outreach plan that targets the retail, office, restaurant, school and dental office sectors. Sustainable Works guarantees a minimum of 10; on up to 20 businesses will become certified annually and they will produce the annual awards ceremony designed to commend those businesses becoming certified. The first 10 businesses will be certified at no cost to them however, each additional business will be charged a fee that is based on the number of employees they have (from $275 to $550). If approved this evening, the Certification Program will resume its operation in mid-September, 2019.
The Sustainable Works agreement would have an initial one-year term. If they are successful in certifying a minimum of 10 businesses the first year and funding is allocated to continue the Certification Program in FY 2020/21, staff recommends the City Council authorize the City Manager to extend the agreement for a second year.
FISCAL ANALYSIS
The amount of $100,000 was approved in the FY 2019/2020 budget for the Certification Program’s first year, which is sufficient to cover the City’s CAGBN annual membership fee, Certification Program incidentals (printed materials and postage), and the first year of the Sustainable Works agreement ($93,000). -- Account No. 10160100.610400 -- Consulting Services. If the Sustainable Works agreement is approved for a second year, it will be funded from next year’s (FY 2020/2021) budget appropriations.
MOTIONS
That the City Council:
1. Approve an agreement with Community Partners (dba Sustainable Works) to administer a citywide Sustainable Business Certification Program for a one-year term, with an optional second year, in an aggregate amount not-to-exceed $186,000 ($176,000 base amount and $10,000 in contingency authority); and,
3. If Community Partners is able to certify a minimum of 10 businesses the first year and provided funds are allocated in the FY 2020/21 budget, authorize the City Manager to administratively approve an amendment to the agreement for a second year; and,
4. Authorize the Public Works Director / City Engineer to approve amendment(s) to the agreement when deemed necessary in an amount not-to-exceed an aggregate amount of $10,000 as a contingency over the potential two-year period; and
5. Authorize the City Attorney to review/prepare the necessary documents; and,
6. Authorize the City Manager to execute such documents on behalf of the City.