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Form #: B-52 7/18/91 DEPARTMENT OF FINANCE REQUEST FOR COUNCIL ACTION DEPARTMENT: Research and Development DATE: December 17, 2012 STAFF CONTACT: Jane Horike PHONE: x8496 A. REQUEST: To allow the Department of Research and Development to accept a $60,000 grant from the State Department of Agriculture. Funds would increase the visibility of the island's tropical flower and foliage products at the 2013 Philadelphia International Flower Show. A corresponding expenditure account for miscellaneous contract services is also required. Waive: Finance Committee due to the limited time to prior to the 2013 Philadelphia Flower Show beginning on March 2, 2013. Prior to this time, County needs to enter into grant agreement with Department of Agriculture and in turn contract with the local tropical flower industry trade group. B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): The County of Hawai'i participated in the 2012 Philadelphia International Flower Show, a tribute to the floriculture and nursery industry of Hawai'i with the theme of"Hawai'i: Islands of Aloha". This show attracted a record number of over 300,000 people and provided extensive promotional opportunities for Hawai'i's floriculture and nursery industry. Hawai'i producers that participated in the show reported on-site sales of $65,000 and total value in direct income to producer participants between $250,000 - 300,000. The Hawaii flower industry is increasingly facing stiff competition both at the national and international markets due to its high costs of production and transportation. In order for Hawai'i to remain competitive, it is necessary to step up the campaigns to further promote Hawaii's flowers by maintaining a visible presence in the markets. Timing is of essence if Hawaii is to hold on to its current market standing. The 2013 Philadelphia International Flower Show features the culture and horticulture of the United Kingdom. The historic linkage of Hawai'i and United Kingdom, presents a great opportunity to showcase and expand Hawai'i's floriculture products usage in traditional temperate flower design. The Hawai'i Department of Agriculture (HDOA) is offering $60,000 funding to Hawai'i County to coordinate and manage the State's participation at the 2013 Philadelphia International Flower Show. The County of Hawaii is taking advantage of the HDOA funding opportunity to provide our floriculture industry to promote the Hawaii Flowers Brand at the show. The primary goal is to expand the use of tropical flowers and develop new market in the east coast. SIGNED: de DATE: 12/17/12 epartment Head