PurposeandImpact Page1SteeringCommittee Page32015Awards Page42015StrategyProgressReport Page5ContinuedFunderSupportandthe2016StrategicPlan

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PartneringforInnovation Page82015CompletedProjects Page8

THEUSDNINNOVATIONFUND2015ANNUALREPORT

2015AtAGlance In2015,theFundincreaseditsresourcesandsupported18innovationprojectsin52differentUSDNmember-communities,makinga total investment of $701,090.$15,000wasprovided for technicalsupport.SeventeenwerecompetitiveawardstoUSDN-membercommunities,totaling$601,090.OnegrantcommissionedUSDNmembersandpartnerstoexploretheemergingconceptsandapplicationsforsustainableconsumptionoutcomes,witha$100,000investment.Ofthe18awards,7weretoregionalnetworkprojects(totaling$68,278)tosupportdisseminationofproductsfrompreviouslyfundedInnovationFundprojects.AnewgrantproductcalledQuickFundswas tested,which featured a streamlined application and 6-month grant deliverablewindow. TheQuick Funds grants invested $49,560 in 3 projects. Lastly, the Fund invested $15,000 in TechnicalAssistance(TA)tofosterstrongerprojectdesignandgrantproposals.

USDN2015InnovationFundReport

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TheSteeringCommittee’slong-termgoalisthatby2018,theFund’sactivitiesinurbansustainabilitywill

have: 1) Accelerated the on-the-ground impact of key practice fields; 2) Attracted a large amount of

public,privateandphilanthropicinvestmentinkeyinnovations;and3)PositionedUSandCanadianlocal

governmentsas“goto”sourcesforinnovation

Since 2009, The Innovation Fund has granted over 2.9 million, impacting 77 different member

communities.The InnovationFundSteeringCommittee’smission istoassistUSDNmembersandtheirpartnersincollaboratingtodevelopandspreadhigh-impactsolutionsforadvancingurbansustainability.TheFunddefinesan innovationas thedevelopmentorscalingofanewwayfor localgovernmentsto

solveaproblemortakeadvantageofanopportunityinurbansustainability.

The2015member survey indicates that 57%of respondents haveparticipated in an Innovation Fund

project. In2015,73%ofUSDNmembers said thevalueof the fund ishigh.2015SurveyRespondents

identifiedatotalof521instanceswhenacompletedInnovationFundproductimpactedtheirwork(an

increaseof360%).Manymembersareinterestedinlearningmoreaboutcompletedinnovationprojects.

Thetablebelowdetailscurrentprojectsofinterest.TheFundwillcontinuetoexperimentwithwaysto

spreaduseofitsproducts.

In2015,theInnovationFundcontinuedtoincreaseitsimpactby:

PURPOSEANDIMPACT

USDN2015InnovationFundReport

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ExperimentingwithNewGrantProducts:TheUSDNInnovationFundpilotedaQuickFundRFPin2015,andawarded$49,560to3projectstotestthisgrantingmechanism.Theintentwastoprovidefunding

forprojectsthatdemonstrateopportunityandneedresourcesoutsideoftheInnovationFund’sGeneral

RFP.The3awardedgrantsarefocusingon:ascenario-basedclimatepreparednesspilot(Seattle,WA),

engaging theprivate sector in communitygreenhousegas reductions througha standardizedRequest

forInformationandoutreachtoolkit(Berkeley,CA),andamulti-citycharretteprogramtoengageNew

Englandcommunitiesinresiliencyplanning(Northampton,MA).

DisseminatingInnovationFundProducts:TheInnovationFundtestedRegionalNetworksofSustainabilityDirectorsasdisseminationtoolsof

Fundproductsbyawarding$68,278tospreadexistingFundproducts

in7 regions.Additionally,3of theseprojectsareexploringmulti-city

adoption of one best practice, which will allow them to better

understand regional scaling opportunities and have a peer group to

troubleshootwithduring implementation.Exampleprojects include:

1) community based social marketing for water conservation and

recycling (Southeast), 2) the role of local government in urban

agriculture (Heartland), and 3) climate preparedness and adaption

(Michigan).

PhasingInnovations:Groundbreakingandfield-evolvingworktakestime.Therecanbemultiplephases

ofdevelopment.TheworkaroundSustainableConsumption, fundedthroughthe InnovationFundand

the Garfield Foundation, is just one example of this kind of developmental work. In 2014,members

collaborated to produce foundational Sustainable Consumption research. In 2015, this research was

taught to 14 USDN members during the USDN Annual Meeting in Minneapolis, and continues with

developmentofaweb-basedresourcetoolkit.

Supporting Innovation inEquity:Equity isbeingconvertedfromaphilosophicalconversation intocity

programming.WithadditionalsupportfromKendedaFundandtheKresgeFoundation,theInnovation

Fundawarded$186,500to2GeneralRFPprojectsfor1)developmentofamodeltoembedequityinto

cityclimatepreparednessplanning(Seattle,WA),and2)trainingforsustainabilitydirectorsonhowto

programequityintoinitiatives,usingenergyefficiencyasatestprogram(Knoxville,TN).

ProvidingTechnicalAssistance: IncreasedTechnicalAssistance(TA)strengthensprojectproposalsandtargetedoutcomes.Providedduringtheproposal-writingphaseofagrant,itimprovesclarityandfocus,

soawardedprojectshavea solid foundationonwhich tobegin theirwork. Inaddition toTA foreach

proposerfromtheFundManagerandSteeringCommitteemembers,$15,000wasawardedto3General

RFP invited proposals. These funds enabled partners to become fully engaged during project

development-asopposedtoaftertheprojectwasproposedandtheawardwasmade.

USDN2015InnovationFundReport

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USDN members who serve on the Innovation Fund

Steering Committee devote many hours over the

course of a year to provide fund guidance, serve on

sub-committees,provideadvicetograntees,readand

score proposals, and insure the Fund is investing in

scalable innovations that can impact the broader

membership. Steering Committee members develop

the annual Innovation Fund strategy, provide inputs

on RFP design for innovation grants, and select the

recipientsoftheInnovationFundgrants.

CommitteeMembersinclude:

STEERINGCOMMITTEE

• CatherineHurley;Evanston,IL

• CoriBurbach;Dubuque,IA

• DavidDriskell;Boulder,CO

• DougSmith;Vancouver,B.C.

• ErinGill;Knoxville,TN

• JacquiBauer;Bloomington,IN

• JenniferGreen;Burlington,VT

• JoZientek;SanJose,CA

• KarenWeigert;Chicago,IL(co-chair)

• LeslieEthen;Tucson,AZ

• MattNaud;AnnArbor,MI

• ShannonParry;SantaMonica,CA

• TimothyBurroughs;Berkeley,CA(co-chair)

• WayneFeiden;Northampton,MA

USDN2015InnovationFundReport

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GrantName Amount LeadCity GrantPurpose

1 RFPforGHGEmissionsProjects $16,560 Berkeley,CA CreateacustomizableRFItoenablecitiestosolicitprivatesectorstrategiesforreachingGHGgoals.

2 NewEnglandNetworkResiliency $17,000Northampton,MA

CreateDesignandResiliencyTeams(DARTs)tohelptwoNewEnglandcommunitiesidentifystrategicandparadigmshiftingresiliencyopportunitiesandtocatalyzeaction.

3 PreparednessEngagement $16,000 Seattle,WASupportbottom-upapproachesthatmakeuseofsocialnetworksandsupportautonomousadaptationbasedonthelivedexperienceoflow-incomecommunitiesandcommunitiesofcolor.

4HeartlandNetworkUrbanAgricultureBestPracticeDissemination

$5,863 Dubuque,IADisseminatebestpracticesasidentifiedintheInnovationFund-fundedUrbanAgscanandfosterarobustdiscussionoftheroleoflocalgovernmentsinthelocalfoodspace.

5GreenCitiesCaliforniaCommunityBasedSocialMarketingMultiCityAdoptionProject

$14,415SantaMonica,CA

Developandimplementacommunity-basedsocialmarketing(CBSM)campaigndesignedtostrengthenthebroadconservationmessagesofferedbythevariouswateragencies.

6WesternAdaptationAllianceAdaptationDissemination

$6,000 Flagstaff,AZConductadeep-divetrainingintothetoolsbeingdevelopedfortheLessonsforAdvancingAdaptationtoClimateChangeRegionallyinitiative.

7SoutheastNetworkCommunityBasedSocialMarketingMultiCityAdoption

$15,000 Oldsmar,FLPlan,develop,andimplementofacommunity-basedsocialmarketingcampaigninmultiplecitiesacrossthesoutheastnetwork.

8NewEnglandNetworkRentRocketToolDissemination

$15,000 Burlington,VT LaunchtheRentRockettoolincitiesintheNewEnglandRegion.

9MichiganGreenCommunitiesRegionalAdaptationPlanning

$6,000 DearbornMIAccelerateclimateresiliencyatthelocallevelinMichiganthroughaface-to-faceconveningthatisfocusedaroundeffectiverolesforlocalgovernmentsinregionalclimateresiliencyefforts.

10Ohio-Kentucky-IndianaUrbanAgricultureDissemination

$6,000 Cincinnati,OH DisseminatetheInnovationFundUrbanAgricultureScan.

11 SustainabilityMetrics $51,992 Tucson,AZHostaconveningbetweenUSDNmembersandtheSTARstaffandboardtoidentifyaprioritysubsetofSTARmetrics.

12 AdaptationMetrics $45,000 Washington,DCDevelopasharedframeworkforsettinggoals,establishingabaselinemeasureofvulnerabilitytoclimatechangeimpacts,andidentifyingappropriateindicatorsformeasuringprogress.

13 EEEquity $95,000 Knoxville,TNBuildcapacitytoaddressequityinEnergyEfficiencyprogrammingthroughtraining,atoolkitofresources,andtechnicalassistance.

14 FinanceToolkit $85,000 PaloAlto,CA Educate,align,andbuildrelationshipforChiefSustainabilityOfficersandChiefFinancialOfficers.15 Biodiversity $25,000 StLouis,MO CreateanUrbanBiodiversityInventoryFramework.

16 ClimateToolkit $89,760 Baltimore,MDDevelopaclimatetrainingtoolkitforlocalgovernmentstosupportclimateadaptation/resilienceprogress.

17 ClimateEquity $91,500 Seattle,WAIdentifyspecificclimateresiliencestrategies,whichwilladvancebothequityandclimatepreparednessgoalsaswellcommunityengagementtactics.

18 SustainableConsumption $100,000 Eugene,ORDeliveraone-dayfacilitatedtrainingaboutsustainableconsumptionandcreateasustainableconsumptiontoolkit.

2015AWARDS:$716,090(INCLUDES$15,000FORTECHNICALASSISTANCEFORPROPOSALDEVELOPMENT)

USDN2015InnovationFundReport

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2015USDNInnovationFundGoals(fromtheearly2015SteeringCommitteeAdoptedStrategicPlan)

Support6-10potentiallyhigh-impactinnovationprojectsthatinvolvecollaborationandleadershipbymembers.

Runaroughly$400,000GeneralRFP,startinginJune2015,alongthesamelinesandtimelineasthe2014RFP,withimprovements.

• Awarded6GeneralRFPgrantsinDecember,totaling$386,260.Lesson:theannualmeetingisanimportantplaceformemberstofindcollaboratorswithwhomtoproposeinnovationstotheFund.

MaintainUSDNmemberhighlevelsofawarenessandsatisfactionwiththeInnovationFund.

Noneinthe2015StrategicPlan

• IncreasedproductsonUSDNpublicwebpage,whichhasbeenoverhauledforusebycategory.ThepublicallyfacingwebpagesonUSDN.orgthatfeaturegrantdeliverablesarenowcataloguedbytopic,andsearchable.

• IFSurveypointstoalmosthalfthemembershipapplyingin2015forfunds,approvalratingstillhigh.

Increasecoordination/collaborationwithPartnersforPlacesandPeerLearningExchange.

Noneinthe2015StrategicPlan

• PublishedanewGrantNavigationdocumentsuiteonline,monthlycallswithPeerExchange.2016callswithallfundshavebeensetuparoundthebi-monthlyInnovationNews,andissueswillincludeworkfromallUSDNfunds.

ExperimentwithsupportingotherUSDNmechanisms(e.g.,regionalnetworks,focusareas)toboostinnovationactivitiesofUSDNmembers.

IntheSpring,useFundresourcestosupportoneormoreofthefollowing:• AddfundingtoPeerLearningExchange.• Providefundingtoregionalnetworksfor

dissemination/adoptionofinnovations.• Identify1or2high-valuestrategic

partnershipstosupportwithagrant.• Supportinnovationinafocusarea.

• Allocated$100,000andissuedtwoexperimentalRFPs(QuickFundsandRegionalNetworkDisseminationandAdoption).Awarded$117,838.SevenRegionalNetworkswereawarded($68,278).ThreeQuickFundsproposalswereawarded($49,560).

WorkthroughFunddesignissueswithUSDNManagement

MaintainactiveparticipationofSteeringCommitteeinthebroaderdiscussionsoffunddesignissuestokeeptheInnovationFundalignedwithotherUSDNinitiativesandopportunities.

• RegularbriefingsbyManagingDirectoronrelevantUSDNactivities,includingPartnersforPlaces.

• Closecoordinationwiththe2015-16USDNLongTermStrategyDevelopment.

IncreaseSteeringCommitteeMembershipandDiversity

Identifymembersbasedonasuiteofdiversecriteria.Keepthefundat15members,withannualturnoverofatleast3members.

• FournewmemberswereaddedinFebruary2015.FourturnedoverinOctober2015.Thefundenters2016with14member,and6possiblerecruits.

PositionInnovationFundforfundraisingsuccessbeyond2015

Exceedfunders’expectationsinthesystematicgenerationofimpactsandtimelyexpenditureoffunds.

• Granted18awardsin2015,afundrecord.• USDNManagingDirectorhasraised$520,000for2015todate,andcontinues

tomanagegranttimelines/reports.

2015STRATEGYPROGRESSREPORT

USDN2015InnovationFundReport

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Three funders are providing $520,000 for 2016,

building on the more than $2.9 million investment

and supporting the Fund’s strategic plan. The

Innovation Fund is successful in part because USDN

fundingpartnersunderstandtheneedforflexibilityto

support member-driven ideas through competitive

processes.2016InnovationFunddesignationsinclude

investmentsfrom:

• TheSummitFoundation:$120,000

• TheSurdnaFoundation:$200,000

• BloombergPhilanthropies:$200,000

Forcontinuingimpact,theSteeringCommitteedeterminedthefollowinggoalsandstrategiesfor2016:

Goal StrategyandDesiredOutcomes PotentialActions

1)Expandthefund’sdefinitionofCollaboration

Additional multi-departmental/agency teams

areformedtoadvanceprojects

Publish an ever expanding partner list from

projects that are executedwell and have clear

impact

More projects result in cross-departmental co-

benefits;morepeopleareatthetable

Fund projects that show a clear silo-breaking

strategy

New relationships are developed with partners

(i.e.APA,APWA,GFOA)

Continue to coordinate with USDN’s Strategic

Partnership staff to increase partner

relationships/specialfundingopportunitiesfor

areasofmutualinterest

Projectsleverageadditionalin-houseskillsetsto

improveprojectsandbuildcapacity

Fund projects with teams that exhibit prior

experiencewiththetopic

2)ContinuetestingandinvestinginDisseminationofInnovationFundProducts

The annual meeting is used strategically to

advancetraininganddissemination

Add a “products page training” to the annual

meeting; consider testing dissemination of IF

products/projects througheducational sessions

withpartnerexpertsfromgrantprojects

Regional networks are using learning from the

Innovation Fund to build capacity in their

networks

Continue to invest in regional networks as a

strategicIFandUSDNdisseminationtool

Partners,funders,andusergroupsareleveraged

as dissemination vehicles for innovation fund

projectsandproducts

Weave grant timelines into User Group

discussions and focus proposal development

efforts on good user group ideas; explore

language to encourage user group discussion

examplesinthe2016RFP.

Dissemination is incorporated into the original

designofprojects/proposalsinordertoleverage

pastproducts

Add a dissemination-linked scoring criteria to

theRFPs

USDN increases activities to disseminate

InnovationFundlessonsandproducts

Explorewaysbeyondmonthlycalltopicstoget

productsintouserhands

CONTINUEDFUNDERSUPPORTANDTHE2016STRATEGICPLAN

USDN2015InnovationFundReport

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Goal StrategyandDesiredOutcomes PotentialActions

3)ExperimentwithfundingforImplementation

The fund gains a better understanding ofwhat

membersmean/wantbyimplementationfunds

tosuccessfullypilotthem

Explore implementation-focusedRFPsdesigned

withtheinputofafocusgroup

The fund has a clear understanding of what

previous implementation investments looked

like,andlearnsfromthem

Document existing projects in the IF portfolio

forstrongandweakpoints

Consider providing funds for implementation

projects that leverage previous network

investment (i.e. PLE grant, user group

conversation,etc.)

Actively recruit ideas that lend themselves to

collaborativeimplementation

4)Clarifyexpectationsforproposalwritingandprojectcompletion

Add clarity and consistency to each scoring

criteria for better quality proposalswith better

project follow-through, so reviewers and

applicantsunderstanddesiredoutcomes

Rework scoring criteria in 2016 RPFs; develop

tools (i.e., timeline and budget template) that

provideexamplesofdesiredproposalelements

Modify process without making applications

morecumbersome to standardizebestgranting

practices

Refine existing RFP opportunities to focus on

standardprocessesandprocedures

5)EliminateanyperceivedbiasaroundAwardsSelectionProcess

Level the playing field for members without

insideknowledgetotheprocess

Examinecriteria forother funds (PLE,P4P)and

addexampleAppendicestotheRFPs

Fosterbetterdecision-makingbydiscussingeach

proposalregardlessofscorerankingtoeliminate

rushingthroughawards

Talk more extensively about each proposal

beforemakingdecisions(2hourcallsforaward

decisions)

Systematically eliminate the perception of

conflictofinterestfortransparency

TestapitchcallforleadstospeakwithSteering

Committee members; Steering Committee

memberswillnolongeranswerquestionsabout

theirownideas

6)ImproveGranteeAccountabilitytotheFund

Provide technical assistance around project

managementinordertoclarifyexpectationsfor

recipients

Document project execution expectations and

behands-onduringtechnicalassistancearound

projectmanagement

Implement a “phased payment” policy for

releasingfundsdirectlytocitiestoprovidemore

ability to hold cities accountable for expected

deliverables

Grant a maximum of 50% up-front release of

funds; hold the remainder for dispersal after

showingsubstantialcompletion

Bemoreproactive in identifyingandaddressing

potentialissues/delaystoprotectIFdeliverables

Require grant recipients to provide quarterly

reportstofundmanagers

7)ImproveIdeaSourcingfromMembers:definetheSteeringCommitteebar

PromoteUserGroupalignmentaroundpotential

products to gather member consensus around

collaborativeprojects

Work with User Groups to build existing idea

development

PromotenewgrantleadstohelpbuildcapacityDo outreach to cities that have not yet led a

grant

Use the annual meeting to serve as an idea

generator, a dissemination tool, and to build

capacity

Plan the annual meeting IF time to be

interactivewithmembers

Build on the work that’s been done in other

collaborationstopromotephasedwork

Debriefwith grantees at project completion to

determine if there are evident next steps;

continue to invitePhase IIproposals intogrant

poolconsideration

USDN2015InnovationFundReport

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TheInnovationFundSteeringCommitteewantsFundinvestmenttohavefield-buildingimpact.Bringing

external partners and topical experts onto the project team early is positively influencing grant

outcomes. The following list highlights three project partners who are

havingimpactontheurbansustainabilityfield:

Sustainability Metrics: A 2015 $51,992 project led by Tucson AZ withSTAR Communities to explore the 108 outcome measures in the STAR

Community Rating System, in order to produce amanageable subset of

metrics for cities to use as sustainability progress indicators and

benchmarks.

SustainabilityFinanceScan:A2015$85,000projectledbyPaloAlto,CAwithHIPInvestorstoperforma

scan (“How-ToToolkit”)ofSustainableFinancing,andtohostaconveningofCFOsandCSOs, Investor

Communities,andpartnercities.

SustainableConsumption:A2015$100,000projectledbyEugene,ORwithOneEarthandSCORAI tocontinuebuilding the fieldofknowledge in the

sustainableconsumptioncontentareabyprovidingmoreUSDNmembers

with a clear and compelling grounding in the topic and actionable

strategiesforlocalinitiatives.Thisprojecthostedaconveningfor14USDN

membercities,andisdevelopingaweb-basedtoolkit.

UrbanBiodiversity:A2015$50,000projectledbySt.LouiswiththeUniversityofVirginiatodevelopanUrban Biodiversity Inventory Framework that can be customized and utilized by any USDNmember.

There are three elements to the deliverable: (1) The scope of data collection, (2) The

methodology/processtobeused,and(3)Evaluationcriteriaforprioritizationofefforts.

In2015,10InnovationFundprojectscametofruition,providingUSDNmemberswithnewtools,scans,

andbestpractices.Asgrantprojectsarecompleted,theyarepostedontheUSDNwebsiteforinternal

andexternaluse.Projectscompletedin2015arelistedbelowandlinkedtotheirproducts:

BreakthroughConvenings GeneralRPF PhaseIIProjectsBuildingEnergyBenchmarking2.0 SmartCities CivicTech

CaliforniaAdaptationPlanninginRegions SustainableConsumption CompostablePlastics

HeartlandAdaptation Parking

LEDStreetlights

SmartParkingStrategies

PARTNERINGFORINNOVATION

2015COMPLETEDPROJECTS