108-G. October 12, 2010 Planning Commission staff report.pdfATTACHMENT G
OFFICE OF COMMUNITY DEVELOPMENT
CITY HALL
10300 TORRE AVENUE - CUPERTINO, CA 95014-3255
(408) 777-3308 - FAX (408) 777-3333 - planning2cupertino.org
Agenda Item No.
Application: MCA-2010-04
Applicant: City of Cupertino
Location: Citywide
Agenda Date: October 12, 2010
APPLICATION SUMMARY
Municipal Code Amendment to adopt a Green Building Ordinance
RECOMMENDATION
Staff recommends that the Planning Commission recommend that the City Council adopt
the proposed draft Green Building Ordinance in accordance with the Model Ordinance
(See Attachment 1).
BACKGROUND
On January 19, 2010, the City Council authorized staff to initiate the public input process
to help develop a draft Green Building Ordinance, using the Phase II recommendations
as a framework with a maximum budget of $25,000 (see Attachments 2&3 - City Council
minutes and staff report).
The goal of developing a Green Building Ordinance was initiated through the City's
participation and support of the Santa Clara County Cities Association Board of
Director's "Phase II recommendations" (see Attachment 4) adopted in June 2009. The
Phase II recommendations are criteria and thresholds for new construction and
renovation/remodeling projects, that aim to support the use of healthy building
materials/construction methods, promote energy, water and resource efficiency and
conservation by adherence to LEED (Leadership in Energy and Environmental Design)
and GPR (Green Point Rated) rating systems.
DISCUSSION
Community Outreach
In May 2010, citywide notices were mailed out seeking interested parties to participate in
the Green Building Ordinance Focus Groups. Green building consultant Global Green,
MCA-2010-04 Green Building Ordinance October 12, 2010
Page 2
was also retained by the City to assist with the focus group facilitation and preparation of
the draft ordinance.
On June 7, 2010, the first Green Building Ordinance Focus Group meeting was held at De
Anza College's LEED Platinum Kirsch Center. The meeting was attended by over 60
participants. The meeting started with a tour of the Kirsch Center, followed by a
presentation by Walker Wells of Global Green on the purpose and concepts of green
building and the Phase II recommendations. The participants had opportunities to break
into small groups to discuss and provide input on elements of green building ordinances,
including threshold levels, rating standards and certification levels, incentives and
implementation strategies.
As a result of participants' comments to better understand the rating systems under
consideration, the Planning Commission held an educational workshop at its July 13,
2010 meeting. The workshop included a presentation by Shiloh Ballard of Silicon Valley
Leadership Group who provided an overview of LEED, GPR and the Phase II
recommendations. Additionally, David Kaneda, Cupertino Planning Commissioner,
provided an overview of the upcoming new Cal Green Building Codes that will become
effective on January 1, 2011.
On July 29, 2010, a second Green Building Focus Group meeting was held, where the
Green Building Ordinance core elements were presented and discussed. A summary of
the comments and suggestions provided by residents, businesses and the development
community at the focus group meetings is attached in this report (see Attachments 5 & 6).
Draft Green Building Ordinance
The draft Green Building Ordinance was prepared primarily by using the Phase II
framework with modifications and adjustments to meet the specific goals and objectives
of the City of Cupertino. The draft ordinance also attempts to incorporate and respond to
key comments and suggestions provided by the focus group participants. The draft
ordinance will be a new chapter of the Zoning Ordinance, and will be incorporated as
Chapter 19.78 of the Cupertino Municipal Code.
Key components of the draft ordinance are summarized as follows:
"Scope and Applicability"
The proposed draft Green Building Ordinance will apply only to private development
projects, including new construction and renovation/remodeling projects that require
building permits and meet the criteria in the table of the Requirements section of the
ordinance.
Public (city -owned) buildings have been excluded from the draft ordinance requirements
since staff has found that most cities that address green building requirements for public
buildings do so either through a separate policy or ordinance. Additionally, all of the
cities within Santa Clara County, including Cupertino, adopted the Phase I
MCA-2010-04 Green Building Ordinance October 12, 2010
Page 3
recommendations from the Santa Clara County Cities Association that requires new
public buildings over 5,000 square feet be LEED Silver certified in order to demonstrate
and exemplify that such standards are achievable. Although the City Council supported
the Phase I recommendations, no public buildings have been constructed in the City of
Cupertino since the adoption of the Phase I recommendations.
Staff recommends that the new ordinance become effective six (6) months from the date
of its adoption. Any projects in which building permit applications have been submitted
for development within this grace period are not subject to the new green building
requirements, unless otherwise conditioned by a development permit. The grace period
will provide time to disseminate information about the ordinance through the City's
website, handouts as residents and businesses plan their development projects. Please
note that a demolition permit does not qualify as a building permit application for
development, and would not exempt a subsequent building project from this ordinance if
submitted after adoption of the ordinance. The ordinance also clarifies that planning
entitlements alone, obtained prior to the effective date of the ordinance do not exempt
such projects from the ordinance requirements.
• Option regarding previous planning approvals
The Planning Commission may consider whether to exclude previously approved
planning projects from this ordinance. These projects have received planning
entitlements (some with phased development schemes) but may not submit building
permit applications prior to the effective date of the ordinance. A reason for excluding
such projects may be that the applicants had not built in the new requirements into their
proforma. Also, since projects are required to vest their permit within two years of their
permit approval (unless the Council authorized longer terms for a Use Permit - for
example, Main Street and the Oaks project), staff does not believe that this will not affect
the intent of the ordinance in the long term. However, in order to prevent people from
"vesting" their permit by building only one building in a large project and then
submitting building permits over an extended period of time, the ordinance should allow
projects that have already received planning approvals as of the effective date of the
ordinance, an exemption for the duration that their permit is valid. After the permit
expiration date, whether the project is extended or phased, buildings shall be required to
comply with the Green Building Ordinance.
"Reference Standards"
The draft ordinance relies primarily on existing rating standards of LEER and GPR
consistent with the Phase II recommendations. However, the draft ordinance recognizes
the need and provides the ability for alternative reference standards (e.g. Living Building
Challenge) to be applied in cases where an applicant may propose to meet or exceed the
ordinance requirements through an alternate rating system with a formalized
certification process and third party verification.
MCA-2010-04 Green Building Ordinance October 12, 2010
Page 4
"Requirements"
The threshold criteria under which projects are subject to the draft ordinance are outlined
in the Table 19.78.050 of the draft ordinance. While the criteria are mostly consistent with
the Phase II recommendations, staff is recommending some changes to respond to focus
group comments.
Comparison Table of Phase II and Cupertino Draft Green Building Ordinance
New Construction and Addition/Renovation
Cupertino Draft Green Building Ordinance
Phase II Recommendations
Minimum Requirements
Residential - New Construction
Single -Family & Multi -Family < 5 homes:
Single -Family (SFR) & Multi -Family (MFR)
(Single Family & Multi -Family)
GPR min. 75 pts or LEED Certified
< 9 homes:
Formal Certification or Option 2
GPR Rated (50 pts min.) or LEED Certified
SFR & MFR >_ 9 homes:
SFR & MFR >_ 5 homes:
GPR Rated or LEED Silver
GPR min.100 pts or LEED Silver
Formal Certification or Option 2
Residential -Renovation/Addition
Single -Family > 50% total existing floor area:
SFR<$100K permit valuation; or <500 sf
(Single -Family & Multi -Family)
Cal Green Mandatory (for new portions
add'n; or FAR increase<50%:
only)
BIG Elements checklist or LEED checklist
SF $100K-$200K permit valuation; or 500-
Multiple-Family (minor renovation):
1,000 sf add'n:
Cal Green Mandatory (as applicable to
BIG Elements 25-49 pts. or LEED Certified
SFR $200K+ permit valuation; or 1,000 sf
scope)
add'n; or FAR increase of 50%:
Multi -Family (major renovation) - over 50%
total existing floor area, and at least 25,000 sf
GPR Rated (min. 50 pts.) or LEED Certified
of addition/renovation, and replacement or
Small MFR (TBD):
alteration of 3 of the 4 following systems:
HVAC, building envelope, hot water system
GPR checklist or applicable LEED checklist
Large MFR (TBD):
or lighting system:
LEED Certified
GPR 50 pts. or applicable LEED Certified
Formal Certification or Option 2
Commercial - New Construction
< 10,000 sf:
Small, <5,000 sf:
Cal Green Mandatory
LEED checklist
Mid -size, 5,000 - 25,000 sf:
> 10,000 - 50,000 sf:
LEED Certified
LEED Certified
Formal Certification or Option 2
Large, >25,000 sf:
LEED Silver
>50,000 sf:
LEED Silver
Formal Certification or Option 2
MCA-2010-04 Green Building Ordinance October 12, 2010
Page 5
Commercial - Renovation/Addition
Minor Renovation:
Small projects:
Cal Green Mandatory
LEED Checklist
Large w/o HVAC: 2 of 4 systems are
touched + > 10,000 sf + > permit valuation
Major Renovation - Over 50% total existing
floor area, and at least 25,000 sf of
of $1 million permit valuation:
addition/renovation, and replacement or
alteration of 3 of the 4 following systems:
LEED Certified w/o prerequisites
HVAC, building envelope, hot water system
Large w/HVAC: 2 of 4 systems are touched,
or lighting system:
one being HVAC + > 10,000 sf + > $1 million
LEED Certified
permit valuation:
Formal Certification or Option 2
LEED Certified
Mixed Use
For projects with both residential and non-
Not Addressed
residential components, each use shall
comply with the minimum requirements
stated above.
New Construction
Residential - The reason for variations from the Phase II recommendations for residential
is based upon comparisons with other local cities that have adopted green building
ordinances and have successfully implemented higher standards for residential
developments (e.g. Palo Alto, Morgan Hill, and Sunnyvale require 70 GPR points for
their residential developments)(See Attachment 7, Comparison Table of Other Cities'
Requirements). Additionally, staff modified the threshold level to delineate between less
than five homes and greater than or equal to five homes to differentiate single family and
minor lot subdivisions (parcel maps) from larger subdivision projects requiring a tract
map.
Non -Residential - The requirements are fairly consistent with the Phase II
recommendations, except for adjustments to make the threshold and certification levels
less stringent based upon feedback staff received from major stakeholders and focus
group participants. The requirements also aim to be in line with the new state "green'
building code (CALGreen). Essentially, CALGreen has set the floor of building codes at a
higher level by requiring development projects to incorporate green building practices.
CALGreen takes effect on January 1, 2011 and will require all new construction
(residential projects of three floors or less and all non-residential projects) to comply with
the code. Cupertino's draft ordinance also takes the requirements a step higher by
requiring significant single-family residential additions/renovations and minor
additions/renovations for multiple -family and commercial projects to comply with
CALGreen. Staff believes that this requirement is preferable for smaller projects since the
requirements are less stringent, easier to follow and require adherence to the new code
only for a fixture or the portion of the building that is being modified. However, it
should be noted that CALGreen does not require energy efficiency beyond the current
Title 24 energy requirements.
MCA-2010-04 Green Building Ordinance October 12, 2010
Page 6
Renovations and Additions
The draft ordinance requires single-family renovations and additions that add or affect
50% or more of the existing building floor area to comply with the CALGreen building
codes for the new/renovated portions only.
For Multiple -Family Residential and Non -Residential (commercial and industrial)
renovations and additions, the thresholds differentiate between minor renovation and
major renovation. A major renovation is defined as a renovation or addition that affects
greater than 50% of the total existing floor area if that area is equal to or greater than
25,000 square feet, and includes replacement or alteration of at least three of the following
four systems: HVAC system, building envelope (including walls and windows),
domestic hot water system (e.g. water heater/boilers), and lighting. Major renovations
will require LEER certification, which is fairly consistent with the Phase II
recommendations and what some of the other local cities are requiring (e.g. Palo Alto,
Sunnyvale, Morgan Hill)(See Attachment 8, Comparison Table), except that the draft
ordinance does not require LEED Silver for the highest threshold of Non -Residential
renovations and additions, as some of the other local cities do. Staff is recommending
that LEED Certified level for. major renovations based upon discussions with major
stakeholders in the community.
All minor renovations and additions that do not meet the threshold for major renovations
are required to comply with the CALGreen building code.
Mixed use projects will be required to comply with the minimum requirements for each
component type of the development.
Exemplary/Incentives
An Exemplary Standards section has been added to provide incentives and encourage
developments to seek higher levels of certification than the minimum requirements of the
ordinance. Possible incentives that the City may consider granting for meeting or
exceeding Exemplary Standards have been identified, contingent upon availability of
funding and City approval. These possible incentives include:
• Matching grants to off -set the cost of certification application (based on funding
availability).
• Fee reductions for the building permit (options include 2-5 %)
• Zoning code adjustments of floor area ratio, or off-street parking, not to vary more
than 10% (options include 5-10%) of the standards in place at the time of application
"Veri 'cation"
Staff has proposed two options for verification to ensure that the development is carried
out to the prescribed standard.
MCA-2010-04 Green Building Ordinance October 12, 2010
Page 7
• Option 1 (Formal Certification) is the verification route for projects requiring formal
certification, and would be required of any new residential construction project, any
new non-residential (commercial) construction project over 10,000 square feet, and
major renovations for multi -family residential projects and non-residential
(commercial) projects. The formal certification would also be required for exemplary
standard projects. This option will provide the greatest degree of confidence that the
building has been built and is operating to the required standards.
• Option 2 (City Determination) is an alternate option to Option 1. Essentially, Option 2
is a verification route that would only require that projects demonstrate that the
construction drawings are designed to meet the required certification level. A formal
certification process to require projects to actually achieve the required certification
level is not required. Therefore, this verification route could be handled through a
City determination process. No further verification is required past the building
permit stage to demonstrate that the requirement is met. As is the case in most cities,
the City will use a qualified consultant to ensure that building permit documents
adhere to the required standards.
• CALGreen - For projects that require adherence to CALGreen requirements, the City
will make the determination as they will with other building permits that require
adherence to CALGreen.
The draft ordinance highlights the certification process in detail.
The following is a list of pros and cons that the Planning Commission may consider
regarding verification requirements:
1(Formal
Pros • Certification requirement ensures that
building is built as and functions as a
"green building."
• Certification allows building owners to
market/lease their buildings as "green
buildings."
• Allows City to track and monitor its
CAP (Climate Action Program)
accurately.
14UMMY
Reduced cost and process
since it does not require
certification or a Green
Building deposit.
• Does not ensure that
building is built as, or
functions as, a "green
building."
• Cannot be marketed/leased
to prospective owners or
tenants as a "green
building."
• City cannot ensure that a
building meets the
requirements.
• Does not allow the City to
track and monitor its CAP
(Climate Action Program)
effectively.
"Fees & Deposits"
Option 1
A refundable Green Building Deposit is required for projects under Option 1 of the
Verification requirement. The intent of the deposit serves as an incentive to comply with
the ordinance requirement for certification, and would be paid by the applicant prior to
issuance of a building permit for the project.
Note: The suggested deposit is $2/sq. ft. with a minimum of $3,500 and maximum of $5,000 for
each single-family residential building, minimum of $40,000 and maximum of $55,000 for each
multiple family residential building, and minimum of $70,000 and maximum of $150,000 for each
non-residential building.
These minimum deposit amounts are based on typical costs to certify these types of projects. The
maximum deposit amounts are based on the maximum costs typical for a project type. Keeping
deposit amounts in line with typical certification costs will encourage people to follow through
with their certification and not make forfeiting the deposit amount a more attractive alternative.
MCA-2010-04 Green Building Ordinance October 12, 2010
Page 9
*Typical Green Building Certification Costs
Green Point Rated
LEED for Homes
LEED BD&C
Single Family
$3,800
$5,000
Multi -Family
$40,380
$54,700
Office 20,000 s . ft.
$71,650
Office 50,000 s . ft.
$97,650
*Based on data from Build it Green, US Green Building Council,
Davis Energy Group, StopWaste.org, and Global Green.
Option 2
For Option 2, a deposit is required to be paid at the time of building permit application to
cover the cost of reviewing verification requirements.
The City will hire a consultant to review the plans to verify that the building permit
documents meet the required certification level for a project. It is estimated that a typical
review for most projects will require 6-10 hours of consultant time with an associated cost
of approximately $900 - $1,500.
"Exceptions"
The draft ordinance allows for property owners to request exceptions from the ordinance
requirements for historic sites and projects that may include atypical energy -related
design requirements. The exceptions may vary from the ordinance requirements itself, or
a particular prerequisite only for a specific rating system that has been determined to be
infeasible for the project. In cases where the exception is requested only for a particular
prerequisite, all other prerequisites and minimum point requirements will still be
required to be met.
Exceptions may be approved if the decision -making authority for the project makes the
following findings:
The proposed development is otherwise consistent with the City's ordinances and meets
one or more of the criteria described below:
a. It is a hardship or is infeasible for the applicant to fully meet the requirements of this
Ordinance due to a conflict with the compatibility of the green building rating system
with other City goals, such as those requiring historic preservation.
b. The exception is requested is the minimum required and all required green building
measures are otherwise incorporated into the development project.
LEED EBOM (LEED for Existing Buildings: Operations and Maintenance)
LEED EBOM is a certification project type that is based upon the actual total building
operating performance, instead of design expectations, to maximize the operational
efficiency and minimize the environmental impacts for the sustainable ongoing operation
of a building. LEED EBOM is based upon 100% of the floor area of the building.
MCA-2010-04 Green Building Ordinance October 12, 2010
Page 10
Essentially, a building must be in operation for at least one year for a performance period
before certification application and certification is based upon 100% of the floor area of
the building.
Subsequent additions/renovations may occur in a LEED EBOM certified building (in
other words, the building may retain its LEED EBOM certification) if the
addition/renovation complies with improvements permitted by the LEED EBOM
requirements. Staff recognizes that, in such cases, the applicant may apply for an
alternative standard since such improvements would still retain the building's
certification.
Environmental Consideration
The draft Green Building Ordinance is considered categorically exempt per Section 15308
Class 8 (Actions by Regulatory Agencies for Protection of the Environment) of the
California Environmental Quality Act (CEQA). Therefore, no further environmental
review is necessary to adopt this ordinance.
Prepared by Aki Honda Snelling, AICP, Senior Planner
Reviewed by:
2�ar hao
City Planner
ATTACHMENTS
Attachment 1
Attachment 2
Attachment 3
Attachment 4
Attachment 5
Attachment 6
Attachment 7
Attachment 8
Attachment 9
Attachment 10
Approved by:
1vastava
Community Development Director
Model Ordinance
January 19, 2010 City Council minutes
January 19, 2010 report
Phase II recommendations
June 7, 2010 Green Building Ordinance Focus Group
meeting comments
July 29, 2010 Green Building Ordinance Focus Group
meeting comments
Comparison Table of other cities for New Construction
Comparison Table of other cities for Renovations/Additions
Cal Green Description
Comparison of CALGreen, LEED and GPR
G:\PIanning\PDREP0RT\pc MCA reports \ 2010 \MCA-2010-04.doc