SUBJECT: NET ZERO SUSTAINABLE PRACTICES POLICY AND UPDATE OF THE WEST HOLLYWOOD CLIMATE ACTION PLAN INITIATED BY: COMMUNITY DEVELOPMENT DE~'*TMENT

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1 CITY COUNCIL CONSENT CALENDAR MAY 4, 2015 SUBJECT: NET ZERO SUSTAINABLE PRACTICES POLICY AND UPDATE OF THE WEST HOLLYWOOD CLIMATE ACTION PLAN INITIATED BY: COMMUNITY DEVELOPMENT DE~'*TMENT J (Stephanie DeWolfe, AICP, Director~"' (John Keho, AICP, Assistant Director) (Bianca Siegl, Long Range & Mobility Planning Manager~ STATEMENT ON THE SUBJECT: The City Council will receive an update regarding next steps and projected costs in the development of a West Hollywood Net Zero Climate Neutrality and Sustainable Practices Policy and related update of the West Hollywood Climate Action Plan (CAP), as well as for the creation of a new Senior Planner position to oversee this and related efforts. RECOMMENDATIONS: 1) Direct staff to evaluate the creation of a new Senior Planner position in the Long Range and Mobility Planning Division, to oversee development and implementation of a Net Zero Climate Neutrality and Sustainable Practices Policy and related ongoing environmental sustainability programs, as part of the Budget Update. BACKGROUND ANALYSIS: Previous City Council Direction On January 20, 2015, the City Council directed staff to develop a West Hollywood Net Zero Climate Neutrality and Sustainable Practices Policy (Net Zero Policy), update the CAP, hire a consultant to assist with the CAP update and development of the Net Zero Policy, and create a new permanent staff position to coordinate citywide sustainability efforts (Exhibit A). The Council also directed staff to include a Net Zero compliance section in future City Council staff reports. This staff report describes the recommended next steps in addressing each of these items. Net Zero Policy The goal of the proposed Net Zero program, as described in the previous City Council staff report, would be to "achieve climate neutrality in all policies, procedures, and development projects to the greatest extent possible" (emphasis added). This is an extremely ambitious goal, and one that has not yet been successfully achieved across such a wide range of programs by any governmental agency. It is also particularly challenging in a contract city with little control over utility providers. Several cities have established net zero goals in specific program areas, and some have made significant strides towards achieving these goals. For example, Austin, San Francisco, Seattle, 1 AGENDA ITEM 2. H

2 and Washington DC, as well as institutions such as UCLA, have established zero waste goals. The City of Lancaster has declared its intent to be a net zero energy city, with an aggressive solar energy program. As envisioned in the previous City Council staff report, the Net Zero Policy would be a comprehensive program across the key emission sectors (energy, water, waste, and transportation) and apply generally to City operations and the community. The Policy and related programs would include, but not be limited to: 1. Green building design and renovation standards 2. Clean energy 3. Transportation 4. Climate protection 5. Recycling and waste management 6. Sustainable building operations for City buildings 7. Environmentally preferable purchasing policies for City operations 8. Sustainable food services (local businesses) 9. Sustainable water systems Due to the difficulty of realizing a carbon neutral or net zero program, and the range of policy and operational changes, inter-agency partnerships, and community advocacy/engagement efforts necessary to achieve this goal, a critical first step will be to clarify and define what climate neutrality means to the City. Several key questions must be answered in order to develop an effective policy framework: What does net zero or climate neutrality mean in West Hollywood? How does carbon neutrality relate to the City's current greenhouse gas emissions reduction target as established in the CAP, or State targets and goals for 2020 (AB 32), 2035 (SB 375), or 2050 (Governor's Executive Order)? Should the program account only for only emissions that occur within city limits, or all emissions for which residents, workers, and business owners, and the City are responsible? Would the City consider offsets as part of the program? Who would it apply to - the existing built environment, new development, residents, workers, business owners, visitors? How would it be accomplished? Is the City willing to advance a set of regulatory and voluntary mechanisms expected to achieve such a target? How does it interact with the CAP and General Plan? In order to answer these questions, Phase 1 of the project will develop the Net Zero Policy Framework and complete preliminary evaluation of the CAP (described further below). This effort will cost approximately $100,000 in consulting fees, and would include the following tasks: 1. Define climate neutrality. Evaluate best practices and existing City activities with the support of a staff technical advisory group. Engage a range of stakeholders (residents, property owners, and businesses) in establishing what net zero or climate neutrality means for West Hollywood. 2

3 2. Define preliminary sectors and broad-based strategies. Assess the General Plan and Climate Action Plan for compatible measures and policies. 3. Draft Net Zero Policy Framework, including preliminary measures and programs. 4. City Council review of Draft Policy Framework. 5. Development of Final Policy Framework document. Full development of the Net Zero program with detailed cost estimates would occur in parallel with Phase 2 of the project, below. CAP Update The CAP was adopted in 2011, along with the West Hollywood General Plan During the General Plan update process, the City Council established an aggressive greenhouse gas emissions reduction target of 20-25% below 2008 business-as-usual emission levels by The measures in the CAP are designed to aid the City in achieving these greenhouse gas emissions reductions targets. The General Plan includes specific goals and policies that guide the City's approach to climate change, as addressed through policies regarding governance, land use, mobility, economic development, historic preservation, human services, parks and recreation, housing, safety, infrastructure, resources and conservation. Since climate change is a cross-cutting issue addressed by many elements of the General Plan, the CAP as a whole is considered an implementation measure for the General Plan, and specifically implements policy IRC-6.3 of the General Plan. This structure allows the City to update the CAP on an ongoing as-needed basis to ensure that West Hollywood's climate protection efforts reflect both current legislation and emerging best practices. Best practices in sustainability change rapidly. Though the CAP was adopted only four years ago, a review of current programs in the CAP would allow the City to take advantage of new technologies to best achieve its goals. Since the CAP was adopted, there has been an expansion in energy efficiency, renewable energy, and financial incentives at the federal, state, and regional levels. The County has new regional partnerships in place to support climate resiliency and adaptation, energy efficiency implementation, financing programs, and electric vehicle infrastructure, among others. The most effective and creative programs have been those that expand on existing social and community networks and that have a tangible benefit to participants. In Phase 1 of the project (development of a Net Zero/Sustainable Practices Policy Framework), the project team will conduct an evaluation of the CAP. It is necessary to complete the Policy Framework first, as it will set the tone and establish priorities with which the updated CAP must be consistent. Phase 2, the CAP update, would include the following tasks: 1. Define strategies for greenhouse gas emissions reduction 2. Draft new CAP measures with staff and community stakeholder input 3. Prepare updated CAP for City Council adoption. The programs in the CAP help to mitigate potential climate change impacts in the General Plan EIR. Depending on the scope of changes to the CAP, it is possible that 3

4 preparation of an addendum to the General Plan Environmental Impact Report (EIR) will be required. Substantial changes to the CAP will require environmental review pursuant to the California Environmental Quality Act. Preparation of an EIR Addendum could cost $20,000 or more. Depending on the scope of changes to the CAP and the extent of the City's Net Zero Policy, development of a more comprehensive greenhouse gas inventory may be necessary. The greenhouse gas emissions inventory that was included in the 2011 CAP is robust, and adequate to estimate the potential environmental benefits of the programs in that document. However, if the City truly desires a carbon neutral or net zero program, a more detailed inventory, such as a life cycle emissions inventory or a consumption-based inventory should be considered. Preparation of such an inventory could cost between $30,000 - $100,000. In total, Phase 2, including a comprehensive update to the CAP, associated General Plan EIR Addendum, and new greenhouse gas emissions inventory, is expected to cost between $170,000 - $240,000. Specific cost estimates for this work would be brought to the City Council for consideration at the conclusion of Phase 1. Staffing CAP measure CL-1.1 calls for creating a position for a City Sustainability Manager/Coordinator and support staff to oversee implementation of the CAP and sustainability programs. Extensive consultation between Human Resources and Community Development Department staff has determined that the creation of a new Senior Planner position in the Long Range and Mobility Planning Division will best address the City's ongoing needs for a coordinator of sustainability programs. A Senior Planner is intended to operate as a lead staff member, with responsibility for researching, developing, and implementing complex projects. The existing job specification for Senior Planner will be amended to include additional skills and expertise necessary to coordinate and perform tasks related to development and implementation of a Net Zero program, as well as an update to and- implementation of the City's Climate Action Plan. The City currently has an Environmental Programs Coordinator position in the Public Works Department. The Environmental Programs Coordinator is responsible for professional and technical functions related to specific environmental programs, including overseeing recycling programs and the National Pollution Discharge Elimination System permit. The workload and responsibilities necessary to carry out implementation of the Sustainable Practices Policy and CAP cannot be accommodated in this existing position, and will be best served by the creation of a new Senior Planner. It is expected that the Senior Planner would coordinate closely with the Environmental Programs Coordinator on projects related to waste reduction. Funding for this new Senior Planner position will be included in the FY budget for City Council consideration. The new position would create a staff of eight full-time employees in the Long Range and Mobility Planning Division, with one position in each of the following categories: 4

5 Manager, Long Range and Mobility Planning Senior Planner - Sustainability (proposed) Senior Planner - Long Range Senior Transportation Planner Associate Planner Assistant Planner (currently in recruitment) Ne ighborhood Traffic Management Specialist Administrative Specialist Ill Development and implementation of the Sustainable Practices Policy, as well as an update to and full implementation of the CAP, presents a substantial ongoing workload, requiring specialized expertise that cannot be currently accommodated by current staff. Execution of the programs described in this staff report is dependent on creation of the new Senior Planner position. If this position is not approved as part of the FY budget, staff will return to the City Council with alternate recommendations. Net Zero Section in Staff Reports Following City Council adoption of a Net Zero Policy, the City Council staff report guidelines will be revised to include Net Zero compliance as part of the Environmental Sustainability and Health section. A staff team is currently developing an updated template and standards for City Council staff reports. If timing allows, the Net Zero section will be included in the new staff report template when it is released; if not, the Net Zero section will be incorporated at a later date. In the meantime, the current guidelines for this section will be modified to require that staff reports indicate when they are implementing specific recommendations in the West Hollywood Climate Action Plan. The format will be much like that for the current Vision 2020/General Plan conformance section. NEXT STEPS: Following approval of the new Senior Planner position as part of the FY budget, Human Resources will immediately begin recruitment process. As soon as the position is filled, the Senior Planner will begin work with a qualified consultant team on development of the Net Zero Policy Framework. Following completion of Phase 1 of the Policy Framework project, staff will return to the City Council with an update and recommended next steps for consideration. CONFORMANCE WITH VISION 2020 AND THE GOALS OF THE WEST HOLLYWOOD GENERAL PLAN: This item is consistent with the Vision 2020 Core Value of Responsibility for the Environment and the General Plan Goal IRC-6: Reduce the City's contribution to global climate change and adapt to its effects. It is also consistent with General Plan Policy IRC-6.3: Maintain and regularly update West Hollywood's greenhouse gas emissions inventory, greenhouse gas emissions reduction target, and Climate Action Plan to track reduction of greenhouse gas emissions from the community and from municipal operations. 5

6 EVALUATION: Regular progress reports will be presented to the City Council. ENVIRONMENTAL SUSTAINABILITY AND HEAL TH: The projects described in this staff report are designed to reduce Citywide climate impacts. The West Hollywood Climate Action Plan is specifically intended to reduce Citywide greenhouse gas emissions, and an update to the CAP will identify additional greenhouse gas reductions that could be achieved through a new CAP program list. OFFICE OF PRIMARY RESPONSIBILITY: Community Development Department, Long Range and Mobility Planning Division; and Human Resources and Administrative Services Department, Human Resources Division. FISCAL IMPACT: None at this time. However, implementation of the programs described in this staff report, the ongoing implementation of such programs, and one additional staff position to lead the Net Zero program each have potentially substantial costs. The cost for Phase 1 of this work, development of a Net Zero policy framework, evaluation of best practices, assessment of the CAP, and associated community outreach, will cost approximately $100,000 and an additional Senior Planner position will cost approximately $175,000, including benefits. The proposed costs will be considered as part of the Budget Update. Anticipated future costs include consultant services for Phase 2 include an update to the CAP and possible addendum to the General Plan EIR, which is estimated to cost approximately $150,000 - $220,000. Ongoing annual costs for implementation of Net Zero programs could be $300,000 or more, including the additional Senior Planner position. Additional costs related to workspace reconfiguration are anticipated, but unknown at this time. The Community Development Department does not currently have adequate workspace to accommodate a new staff position, and would require a space allocation study and reconfiguration to adequately house all COD staff. EXHIBITS: A. January 20, 2015 City Council Staff Report 6

7 APPROVED ~a.,l2c\1s CITY COUNCIL CONSENT CALENDAR JANUARY 20, 2015 SUBJECT: INITIATED BY: UPDATE OF THE CLIMATE ACTION PLAN AND DEVELOPMENT OF THE WEST HOLLYWOOD NET ZERO CLIMATE NEUTRALITY AND SUSTAINABLE PRACTICES POLICY MAYOR JOHN D'AMICO YV(l_ (Michelle Rex, Council Deputy) STATEMENT ON THE SUBJECT: ~ The City Council will approve an update of the 2011 City of W~llywood <{5J Climate Action Plan and the development of a West Hollyw~et Zero Climate Neutrality and Sustainable Practices Policy. RECOMMENDATIONS: ~«_ 1. Approve an update of the 2011 City of ~~llywood Climate Action Plan. (}'-" 2. Direct staff to develop the West ~ywood Net Zero Climate Neutrality and Sustainable Practices P~~ith priorities including, but not limited to: green building design a{lc novation standards, clean energy, climate protection, sustainable ~ltsportation, sustainable building operations for City buildings, recyclirig)~d waste management, environmentally preferable pure~~~ lfolicies for c ity resources, and outreach to local businesses for trl'"nable food services, and sustainable water systems. 3. Direct staff ~mediately begin the process to recruit and hire a consulta assist with the update to the Climate Action Plan and the develo ent of the West Hollywood Net Zero Climate Neutrality and Sustainable Practices Policy and return to Council in 90 days with costs associated with this item. 4. Direct the City Manager and the Department of Human Resources and Administrative Services to immediately create and begin the recruitment process for the Sustainability Manager I Coordinator position as outlined in Chapter 3.6, Section CL-1.1 of the City's existing Climate Action Plan and return to Council in 90 days with the creation of a Sustainability Manager I Coordinator position. 5. Direct staff to include a Net Zero compliance section in future City Staff reports to assess the impact on the environment and compliance with the AGENDA ITEM 2 Z EXHIBIT A

8 strategies in the Climate Action Plan and, once completed, with the Net Zero Climate Neutrality and Sustainable Practices Policy. 6. Authorize the City Manager to sign all required documents relating to this item. BACKGROUND & ANALYSIS: Cities are never finished. As an environmental leader in the State of California and the United States, the City of West Hollywood has both an opportunity and an obligation to be on the forefront of establishing new standards of leadership and new policies in regard to sustainable city-making. The City of West Hollywood should always be challenged to re our commitment to the highest level of sustainability in all City p es and on all development within the City, to responsible stewardship ources and to demonstrating leadership in sustainable municipal pra~je. West Hollywood. should be a living laboratory for sustainability and ~~Muld begin the process to establish West Hollywood as the first Net Zero Ci~ ~he United States. The goal of West Hollywood as a Net Zero ~uld be to achieve climate. neutrality in all policies, procedures, and ~lopment projects to the greatest extent possible. Climate neutrality me~~at the City will have a net zero impact on the Earth's climate, and that it will 0'tichieved by minimizing greenhouse gas (GHG) emissions as much as ~~~~-~ and using carbon offsets or other measures to mitigate the rema~my GHG emissions. As such, the City of Wes~ tjq~ood should draft a comprehensive Sustainable Practices Policy.that es~hes goals in.nine areas of sustainable practices: green building, ~lea ~rgy, transportation, climate protection, sustainable operations, waste ction and recycling, environmental~y preferable purchasing, sustainable foo ice and sustainable water systems. ~.. The City's Climate Action Plan was adopted in 2011 as an implementation measure for the policies described in IRC-6.3 of the West Hollywood General Plan. "The Climate Action Plan (CAP) implements policy IRC-6.3 of the West Hollywood General Plan Infrastructure, Resources, and Conservation Element. The General Plan includes specific goals and policies that g.uide the City's approach to climate change, including emissions reductions targets, guidelines for preparing inventories or plans, and general reduction strategies. Since climate change is a cross-cutting issue.addressed by many elements of the General Plan, the CAP as a whole is considered an implementation measure for the policies described in this section. This structure allows the City to update the CAP on an

9 ongoing, as needed basis to ensure that West Hollywood's climate protection efforts reflect both current legislation and emerging best. practices." - City of West Hqllywood Climate Action Plan p2-1 With the rapidly changing technology and standards practices for sustainability standards, it is necessary to update the Climate Action Plan to detail the objectives already achieved, highlight outstanding objectives, and to keep pace with new innovations and standards for sustainability. The Net Zero policy will work in conjunction with and as an augmentation to the updated Climate Action Plan and act as a guiding document for City sustainability processes and practices and will allow greater flexibility to keep pace with changes that improve the health of our city and reduce the carbo~otprint of all City policies, procedures, and future development projects.~ Hollywood Net Zero policy will also work to strengthen our commitmen est Hollywood as an urban village. As the City enters another period ~f opment pressures and opportunities, it is vital that we have in place a pol' ensure the best practices for right-sized, smart city-making. ~. ~ West Hollywood should be a laboratory for hea~iving with a healthy environment and strive to adopt new p~oicie ~share research and lessons learned with neighboring cities and with t lie in the most readily adaptable manner. West Hollywood can be a city t s a national model for environmental protection, sustainability, and growthq. c; To begin developing a Net Zerll'~licy for the City, Council should direct the City Manager to immediately ere~~ position and begin the recruitment process for the Sustainability ManagEl'~ e6ordinator position as outlined in Chapter 3.6, Section CL-1.1 of the CWexisting Climate Action Plan. Council should also direct staff to i~med' ~Qi begin the process to recruit and hire a consultant to assist with the up ~ fo the Climate Action Plan and the development of the West Hollywoo Zero policy plan. «Once in place, the Sustainability Manager/Coordinator should work to develop a Net Zero policy including, but not limited to: 1. Green building design and renovation standards 2. Clean energy 3. Climate protection 4. Sustainable transportation 5. Sustainable building operations for City buildings 6. Recycling and waste management 7. Environmentally preferable purchasing policies for City resources 8. Outreach to local businesses for sustainable food services, and sustainable water systems

10 Council should also direct staff to include a Net Zero compliance section in City Staff reports going forward to assess the impact on the environment and compliance with the strategies in the Climate Action plan and, once completed, with the Net Zero policy. The Sustainability Manager/Coordinator should also be responsible for the implementation of, compliance with, and future revisions to the Net Zero policy citywide. Staff should return to Council in 90 days with costs associated with this item and the creation of a Sustainability Manager I Coordinator position. CONFORMANCE WITH VISION 2020 AND THE GOALS OF TH EST HOLLYWOOD GENERAL PLAN: This item is consistent with one of the City's primary strategi~i of maintaining the City's unique urban balance with emphasis on reside ~;ighborhood livability and the City's on-going strategic programs of ability to future change, institutional integrity, transportation system ovement, upgrade existing buildings and infrastructure, community ~~tion, and actively participating in Regional Issues. ~ Additionally, this item is consistent with o ~eral Plan goals of: LU-7: Seek to expand urban green spaces and susta landscapes (LU-7), monitor and evaluate economic conditions affecti e City's economic climate (ED-4), support green business, prai cice r<d)sustainability as community priorities (ED- 10), collaborate on regional tra rtation solutions that improve mobility, quality of life, and environmental ou es (M-2), create an environmentally and financially sustainable t~~~a tion network that p~ovides for the mobility and livability needs of West ~ood residents, businesses, and visitors (M-5), reduce water use an Qsure a long-term water supply (IRC-3), reduce the total and per capita a t of energy used in the City (IRC-4), administer an active and robust gre 1lding program (IRC-5). reduce the City's contribution to global climate~ nge and adapt to its effects (IRC-6), improve air quality and reduce emissions of air pollution (IRC-7), provide a wastewater system that protects the health, safety, ecology and welfare of the community (IRC-8). provide safe, sanitary and environmentally sustainable storm water management (IRC-9), use best practices to reduce and manage solid waste (IRC-10), provide high quality, safe, well-maintained and sustainable facilities for City operations (IRC-11), and maintain and enhance the quality if the housing stock and residential neighborhoods (H-2). EVALUATION: Staff will return to Council in 90 days with costs associated with this item and the creation of a Sustainability Manager I Coordinator position.

11 ENVIRONMENTAL SUSTAINABILITY & HEAL TH ANALYSIS: N/A OFFICE OF PRIMARY RESPONSIBILITY: Office of the City Manager, Department of Human Resources and Administrative Services, Department of Public Works, and Community Development Department FISCAL IMPACT: None at this time.