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101-Staff Report.pdf COMMUNITY DEVELOPMENT DEPARTMENT CITY HALL 1010300TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408)777-3308www.cupertino.org CITYCOUNCILSTAFFREPORT Meeting: February 1, 2011 Subject GreenBuildingOrdinance(continuedfromJanuary18) RecommendedAction Conductfirstreading ofOrdinanceNo. 11-2074and draftResolution Description Application:MCA-2010-04 Applicant:CityofCupertino Location:Citywide ApplicationSummary:MunicipalCodeAmendmenttoadoptaGreenBuildingOrdinance(See AttachmentA,OrdinanceNo. 11-2074)andrelatedfeesand deposits(SeeAttachmentB, Model Resolution). BACKGROUND Council Authorization ontheGreen BuildingOrdinance Process OnJanuary19,2010,theCityCouncilauthorizedstaff(SeeAttachmentQ,January19,2010 CityCouncilreport)to proceedwith developingadraftGreenBuildingOrdinance, perthePhase IIrecommendations bytheSantaClaraCountyCitiesAssociationinpartnershipwiththeSilicon ValleyLeadershipGroup(SeeAttachmentC,PhaseIIrecommendations).TheCouncil authorizedabudgetof$25,000tocompletetheprocess(includingonecity-widepostcard notice). ThePhaseIIrecommendationsarecriteriaandthresholdsfordevelopment,includingnew constructionandrenovation/remodelingprojects,thataimtosupporttheuseofhealthybuilding materialsandconstructionmethods,andpromoteenergy,waterandresourceefficiencyand conservationbyadherencetoratingsystemscalledLEED(LeadershipinEnergyand EnvironmentalDesign)andGPR(GreenPointRated)thatweredevelopedbytheU.S.Green BuildingCouncil(USGBC)andBuildItGreen(BIG)respectively. KeyCommunityOutreach Efforts May2010:City-widenoticesweresentoutinvitingresidents,businessesandmembersofthe developmentcommunityinterestedinparticipatingintheGreenBuildingOrdinanceFocus Groups.Anon-profitenvironmentalconsultinggroup,GlobalGreen,wasretainedtoassistthe Citythroughfacilitationofthefocusgroupmeetingsandtodevelopa draft ordinance. June7,2010:TheCityhelditsfirstGreenBuildingOrdinanceFocusGroupmeetingatDe AnzaCollege’sLEEDPlatinumKirschCenter.Themeetingwasattendedbyover60 participants,andincludedatouroftheKirschCenter,apresentationonthepurposeandconcepts ofgreenbuildingandthePhaseIIrecommendations,andsmallgroupdiscussionsessionsto encourage participantsto provideinput on elements ofthe green buildingordinance. July13,2010:Inresponsetothefocusgroupparticipants'comments,thePlanningCommission heldaneducationalworkshopinordertobetterunderstandthegreenratingsystemsunder consideration.TheworkshopincludedapresentationbyShilohBallardofSiliconValley LeadershipGroupwhoprovidedanoverviewofthePhaseIIrecommendations.Additionally, DavidKaneda,CupertinoPlanningCommissioner,providedanoverviewoftheCalGreen buildingcodes,thestate’snewgreenbuildingcoderequirementsfornewconstructionthat becameeffective on January 1, 2011. July29,2010:TheCityhelditssecondandfinalGreenBuildingFocusGroupmeeting,at whichtimea draftGreenBuildingOrdinancewas presentedtoparticipantsandthecoreelements ofthe draftordinancewere discussed. StaffandGlobalGreenreceivedmanycommentsandsuggestionsatbothofthefocusgroup meetings(SeeAttachmentsDandE-focusgroupcomments)fromparticipantsthatrepresented theresidential,businessanddevelopmentcommunityinCupertino.AttachmentFprovides additionalcommentsreceived on theDraftGreenBuildingOrdinance. CitystaffalsoprovidedoutreachoftheordinanceprocessbyhostingaboothattheCity’s2010 EarthDayevent,meetingwithkeystakeholders(e.g.businessesandcommercialproperty owners,includingApple),addressingparticipantsattheMayor’sCommunityCongressandata ChamberofCommerceLegislativeActionCommitteemeeting,andpostinginformationinthe CupertinoCourier,CupertinoScene,andviaonlinethroughtheCity’sgreenbuildingwebpage, FacebookandTwitter. DISCUSSION PlanningCommission OnOctober12,2010,October26,2010andNovember9,2010,thePlanningCommission reviewedthedraftGreenBuildingOrdinance(SeeAttachmentsG,H&I,October12,October 26,andNovember9PlanningCommissionstaffreports,respectively).Thedraftordinancewas refinedtoincorporatethecommentsandsuggestionstheCityreceivedfromthefocusgroup meetingsandfrommeetingswith key stakeholdersinthecommunity. TheCommissionrecommendedapprovalofthedraftordinanceona3-2vote(ChairBrophyand CommissionerMillervotedno).AdetaileddiscussionofthePlanningCommission’s recommendationis providedlaterinthisreport. ChairBrophyandCommissionerMillerdidnotsupportthedraftgreenbuildingordinance, notingthattheCityshouldfocusonreducingenergyconsumption/utilityuseonexisting buildingsandontransportation,ratherthanonnewconstructionandrenovations.Theyalso expressedconcernsthattheincreasesinconstructioncostresultingfromtheregulationscould make projectsinfeasibleand negativelyimpactlocaljobs. DraftGreen BuildingOrdinanceComponents The draftGreenBuildingOrdinanceasrecommendedbythePlanningCommissioninResolution No.6615(seeAttachmentJ)isbasedonthePhaseIIframeworkwithrefinementsresultingfrom thePlanningCommission’srecommendationandinputreceivedfromtheGreenBuilding Ordinancefocusgroupparticipants,variouscommunitystakeholders,andstaff.Key componentsofthedraftordinancerecommendedbythePlanningCommissionaresummarized below: EffectiveDateoftheOrdinance v ThePlanningCommissionrecommendsthattheCityCouncilconsideraspecificdatesix(6) monthsfromtheadoptionoftheordinance(tostartfromthefirstofthemonth).Thisallows foranadequategraceperiodforapplicantstogetinformationaboutthenewregulationsprior to preparation of projectdrawingsand submittingbuilding permits. AlternateReferenceStandards(Section 19.78.050) v Thissectionstatesthatalternatereferencestandardsmaybeallowedbythedecisionmaker fortheprojectifthealternatestandardsareequivalenttotheminimumstandardsor exemplarystandardsoftheordinancebaseduponprescribedfindings.Thealternatereference standardswererecommendedbasedoncommentsfrombusinessesstatingthattheordinance shouldbeflexibleovertimetoaccommodatenewreferencestandardsthatdidnotfitthose listedatthistime.Therecommendedfindingsensurethatthealternatereferencestandards wouldfitcriteriasimilartothereferencestandardssuchasLEEDandGPRthatarecurrently listedintheordinance.Projectsthatusealternatereferencestandardswillberequiredtogo throughaformalcertification process. StandardsforNewConstruction,RenovationsandAdditions(Section 19.78.060) v Thissectionformsthemainportionoftheordinanceandlaysoutthresholds,minimum GreenBuildingstandardsandverificationrequirementsfornewconstruction,renovations andadditions.ToassistincomparingthechangesbetweenthePhaseIIRecommendationand theDraftOrdinance,acomparisontable(Table1)isprovidedbelow.Additionaloptions providedtothePlanningCommissionarealsolistedforCouncilconsiderationinthelast columninthetable.AbriefdiscussionofthePlanningCommissionandoptional recommendationsisprovidedafterthetable.Adetaileddiscussionofrecommendationsis providedinthestaffreportstothePlanningCommission(SeeAttachmentsG,H&I)and minutes ofthePlanningCommissionmeetings(SeeAttachmentsK,L&M). Table 1 Type ofPhaseIIRecommendationsCupertinoDraftGreenBuildingOtherOptionsConsidered bythe ProjectOrdinanceMinimumPlanningCommission Requirements (1) Residential– Single-Family(SFR)&Multi-Single-Family<5 homes: AllSingle-FamilyandMulti-Family: New Family(MFR)<9 homes: OR Minimum:GPRmin.85ptsor Construction LEEDCertifiedw/Formal (SingleGPRRated(50ptsmin.)or Single-Family2,500 sf: Verification. Family& LEEDCertified. GPRmin.75ptsorLEED Multi- Certifiedw/FormalVerification. Family)Exemplary:GPRmin.125ptsor LEEDGoldw/FormalVerificationSingle-Family5 homes: SFR&MFR9homes: OR GPRRatedorLEEDSilver Single-Family>2,500sf: GPRmin.100ptsorLEED Certifiedw/FormalVerification. Multi-Family<5 homes: OR Multi-Family800 sf(unit size): GPRmin. 75ptsorLEED Certifiedw/FormalVerification. Multi-Family5 homes: OR Multi-Family>800 sf(unit size): GPRmin. 100ptsor LEEDSilver FormalCertification Residential– SFR<$100Kpermitvaluation;Single-Family50%totalexisting Renovation/ or<500sfaddition;orFARfloorarea: Addition increase<50%: (Single-Minimum:CalGreenMandatory Family& BIGElementschecklistor (for newportionsonly)w/Informal Multi- LEEDchecklistVerification. Family) SF$100K-$200Kpermit Exemplary:GPRmin.125ptsor valuation;or500-1,000 sf LEEDGoldw/FormalVerification add’n: BIGElements25-49pts.or LEEDCertified SFR$200K+permitvaluation; or1,000sfadd’n;orFAR increaseof50%: GPRRated(min.50pts.)or LEEDCertified Type ofPhaseIIRecommendationsCupertinoDraftGreenBuildingOtherOptionsConsidered bythe ProjectOrdinanceMinimumPlanningCommission Requirements SmallMFR(TBD):Multiple-Family(minorrenovation): GPRchecklistorapplicable Minimum:CalGreenMandatory LEEDchecklist w/InformalVerification. Exemplary:GPRmin.100ptsor LEEDSilver w/FormalVerification Multi-Family(majorrenovation)– LargeMFR(TBD): Renovationsand/oradditionsthat compriseatleast10,000squarefeet, GPR50pts.orapplicable andreplaceoraltertheHVAC LEEDCertified systemandatleasttwoofthe following:buildingenvelope,hot watersystemand lightingsystem. Minimum:GPRmin.75ptsor LEEDCertifiedw/Informal VerificationorLEEDEBOM Certifiedw/FormalVerification. Exemplary:GPRmin.125ptsor LEEDGoldw/FormalVerification (2) Non- Small,<5,000 sf:<10,000 sf:RequireFormalVerificationfor Residential– projectsover50,000 sf. LEEDchecklistMinimum:CalGreenMandatory New Constructionw/InformalVerification. Exemplary:LEEDGoldw/Formal Verification Mid-size,5,000–25,000 sf:>10,000–25,000 sf: LEEDCertifiedMinimum:LEEDCertified w/InformalVerification Exemplary: LEEDGoldw/Formal Verification Large,>25,000sf:25,001ormore sf: LEEDSilverMinimum:LEEDSilverw/Formal Verification. Exemplary:LEEDGoldw/Formal Verification Type ofPhaseIIRecommendationsCupertinoDraftGreenBuildingOtherOptionsConsidered bythe ProjectOrdinanceMinimumPlanningCommission Requirements Non- Smallprojects:MinorRenovations/Additions: Residential- LEEDChecklistMinimum:CalGreenMandatory Renovations/ Additionsw/InformalVerification. Exemplary: LEEDGoldw/Formal Verification Largew/oHVAC:2of4 MajorRenovation–Renovations systemsaretouched+>10,000and/oradditionsthatcompriseat sf+>permitvaluationof$1least10,000squarefeet,andreplace millionpermitvaluation:oraltertheHVACsystemandat leasttwoofthefollowing:building LEEDCertifiedw/o envelope,hotwatersystemand prerequisites lighting system. Largew/HVAC:2of4 Minimum:10,000–25,000sf-- systemsaretouched,onebeing LEEDCertifiedw/Informal HVAC+>10,000 sf+>$1 VerificationorLEEDEBOM millionpermitvaluation: w/FormalVerification. LEEDCertified Minimum:25,001 sformore– LEED Certifiedw/FormalVerificationor LEEDEBOMw/Formal Verification. Exemplary:LEEDGoldw/Formal Verification MixedUse NotAddressedForprojectswithbothresidential Projects andnon-residentialcomponents, eachuseshallcomplywiththe minimumrequirementsstated above. Note:Definitionsfor FormalandInformalVerificationareprovided laterinthis report. 1.OptionsforResidentialNewConstruction,Single-Familyand Multi-Family TheoptionregardingnumberofunitsdiffersfromthePhaseIIrecommendation(delineating betweenlessthan5unitsandgreaterthanorequaltofiveunits,ratherthan9unitsbecauseit differentiatessingle-familyandminorlotsubdivisions(e.g.parcelmapswithlessthan5lots) fromlargersubdivisionprojectsrequiringatractmap).Therecommendationtouseunitsize asathreshold(SeeOption(1)aboveincolumn3)isbasedonaninitialPlanning Commissiondiscussiontoencouragesmallerunits,whichuselessenergyandmaterials.The thresholdforthesquarefootageoptiondifferentiatingbetweensmallandlargeunitsizesis baseduponthetypicalsizeofasingle-familyhome(2,500squarefeet)andatwo-bedroom multi-familyapartment unit(800 squarefeet). 2.OptionforNon-ResidentialNewConstruction TheCouncilmayconsiderrequiringFormalVerificationfor non-residential newconstruction projectsabove50,000squarefeet,ratherthanrequiringFormalVerificationforalllargenon- residentialnewconstructionprojectsabove25,000squarefeet.Thisoptionwasinitially proposedbaseduponconcernsthatstakeholdershadraisedaboutrequirementsfor certification. FormalandInformalVerification(Section 19.78.070)andRelatedFees v ThethresholdandverificationrequirementsrecommendedbythePlanningCommissionare providedin Table 1. FormalVerificationrequirestheprojecttoobtaintherequiredcertificationlevelbyan approvedratingstandard(LEED,GPRoranalternateratingstandardapprovedbytheCity). FormalVerificationalsorequiresagreenbuildingdeposittobesubmittedtotheCityas suretythattheprojectwillfollowthroughwiththecertificationrequirement.Theintentofa depositthatiscomparabletothecertificationfeesservesasanincentivetoencourage applicantstofollowthroughwiththeircertificationrequirementandnotmakeforfeitingthe depositamountamoreattractivealternative.InthecaseofFormalVerification,theentire depositamountwillbereturnedaftertheapplicantprovidesproofofreceivingformal certificationfromtheratingagencywithin18monthsoffinaloccupancy;otherwisethe depositwouldbeforfeitedtotheCitytobeusedtoadvancethepurposeoftheordinance. InformalVerificationwouldrequireadeposittocoverthecostofagreenbuildingconsultant toverifythatthebuildingisdesignedtotheapplicablerequirement.InthecaseofInformal Verification,thebalanceofthedepositwillbereturnedtotheapplicant.Informal VerificationsforCalGreenrequirementswill notrequireanydeposits. v ThePlanningCommissionrecommendsthefollowingdepositsforFormalandInformal Verification(SeeTable2below).Aresolutiontoadopttherecommendedgreenbuilding depositfees(seeAttachmentB) hasbeen providedfortheCouncil’sconsideration. TABLE2–VerificationFeesandDepositsRecommended by thePlanningCommission RecommendedDepositforRecommendedDepositfor ProjectTypeFormalVerificationInformalVerification $2/sq.ft. $2,000$900 SingleFamily $2/sq.ft. Multi-Familymin.$40,000/max.$75,000$1,500 $2/sq.ft. min.$70,000/max.$150,000$1,500 Non-residential Note: InformalVerificationforCalGreenwillnotrequireanydepositsandwillbedonein-house. Note:ThePlanningCommissionrecommendedaFormalCertificationdepositforsingle-familyresidential thatislowerthantheestimatedcertificationfeeforsingle-familyresidential. TherecommendationsarebasedonTable3-typicalgreenbuildingcertificationcostsprovided byGlobalGreen. TABLE3 - TypicalGreenBuildingCertificationCosts ProjectTypeGreen PointRatedLEEDforHomesLEEDBD&C $3,800$5,000 SingleFamily $40,380$54,700 Multi-Family $71,650 Office (20,000sq.ft.) Office (50,000sq.ft.)$97,650 Typicalcosts forconsultant review range from$900 for ProjectsRequiring single-familyandsmallprojectstoabout$1,500 forlarger InformalConsultant projects Verification *Basedondatafrom BuilditGreen,USGreen BuildingCouncil,Davis EnergyGroup, StopWaste.org,andGlobalGreen. 19.78.080VoluntaryRequirementstoObtainIncentives Incentivesthatareincludedintheordinanceareonlyconsideredforprojectsthatmeetorexceed theexemplary standards,whichare higherthantheminimumrequirements. v ThePlanningCommissionisrecommendingtwotypesofincentives,automaticand discretionary. Automaticincentivesautomaticallyallowanapplicanttoobtainareductioninapplicable buildingpermitfeesbyanamountsetbytheCouncilformeetingorexceedingtheapplicable exemplarystandards.DiscretionaryincentivesaregrantedbytheCityaspartofadiscretionary reviewapproval.Projectsmustalsomeetspecificfindingstobeconsideredfordiscretionary incentives. Incentives: a.AutomaticIncentives: Recommendbuildingpermitfeereductions.ThereductionswillbebasedonannualCouncil reviewandadoptionofthefeeschedule.ThiswillallowtheCounciltotailorfeereduction incentivesannually based on availableCityfunds. b.DiscretionaryIncentives: i.10%reductioninrequired off-street parkingrequiredbythe MunicipalCode. ii.Additionaloption(notrecommendedbyPlanningCommission)-10%increaseinmax. floorarearatio(FAR). c.Considerthefollowingadditionalincentives: i.Anexpeditedplancheckprocessmovingexemplaryprojectsaheadoftheplancheck line. ii.LookatdisincentivessuchasreducedFARsforprojectsthatarenotexemplaryunderthe GreenBuildingOrdinance. iii.LookatincentivessuchasreducingBelowMarketRate(BMR)units/fees,grading bonds,andremoving storypolerequirementsforR1 projects. Itemsc(ii)andc(iii)wouldrequireanamendmenttootherdocumentssuchastheGeneralPlan HousingElement,BMRMitigationManual,SubdivisionOrdinanceforgradingbondsand Single-Family(R1)zonerequirementsforstorypolesandwouldbeseparateprojectsin themselveswithextensivepublicparticipation,noticingand/orreviewforconsistencywithState laws. 19.78.090 ExemptionsforHistoric orAtypicalProjects v Projectsthatareexemptfromtheordinanceincludepropertiesthathavesuccessfully demonstratedtotheCityandmeetthestandards ofthissectionthattheyarehistoricinnature orincludeatypicalenergy-relateddesignrequirementsand/or patterns ofuse. ExemptionsforProjectsthat havealreadyreceivedPlanningPermits v ThePlanningCommissionconsideredtheideatoexemptprojectsthathadalreadyreceived planningapprovals/entitlementsfromtheordinance.TheCommissionrecommendsthat planningapprovals/entitlementsnotbeexemptfromtheordinancesincesuch approvals/entitlementswouldnotbeexemptfromthenewCalGreenbuildingcodesthat becameeffectiveonJanuary1,2011.Asameanstocreategreaterawareness,the CommissionalsorecommendedthatPlanningstaffnoticeallplanningprojectapplicantsof the newrequirements oncetheGreenBuildingOrdinanceisadopted. Additional ReferenceMaterial Additionalreferencematerialsthatwere providedtothePlanningCommissionin previous reports havebeenincludedfortheCityCouncil’sreviewandconsideration. _____________________________________ Preparedby:AkiHondaSnelling,SeniorPlanner Reviewedby:GaryChao,CityPlannerandAartiShrivastava,CommunityDevelopment Director ApprovedforSubmissionby:DavidW.Knapp,CityManager Attachments: A.GreenBuildingOrdinanceNo. 11-2074 B.ModelResolution ofAmendmentstotheFeeSchedule C.PhaseIIRecommendations D.June 7, 2010 FocusGroup MeetingComments E.July 29, 2010 FocusGroup MeetingComments F.EmailfromBerg&BergDevelopers,Inc.fromJanuary 15, 2011 G.October 12, 2010 PlanningCommission staffreport H.October 26, 2010 PlanningCommission staffreport I.November 9, 2010 PlanningCommissionconsentreport J.PlanningCommissionResolutionNo. 6615 K.Minutes oftheOctober12, 2010 PlanningCommissionmeeting L.Minutes oftheOctober26, 2010 PlanningCommissionmeeting M.Minutes oftheNovember 9, 2010 PlanningCommissionmeeting N.Comparison Table of standardsinSunnyvale, MorganHill&PaloAlto O.LEEDEBOM/LEEDCIcomparisonbyGlobalGreen P.% ofNewConstruction data Q.% of TenantImprovement data R.January 19, 2010 CityCouncilreport S.CalGreenDescription T.Comparison ofCalGreen,LEEDandGPR preparedbyLynSimon& Associates