City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION
Staff recommends the City Council discuss proposed green building standards and
provide direction to staff.
BACKGROUND
The purpose of this report is to provide a menu both to require and encourage
green building in the City. The recommendations contained herein are intended to
build on the successful work that has been accomplished over the last two years.
These efforts are summarized on the attached chronology. (Attachment No. 1).
DISCUSSION
In keeping with Culver City’s leadership in the areas of environmental stewardship,
the City has taken certain steps regarding the problems of rising energy costs and
global warming have prompted the City to consider a more sustainable approach
to the way buildings are planned and constructed. “Green” buildings are more
energy efficient, reduce solid waste during construction, reduce environmental
pollution and conserve natural resources. Green buildings create healthier work,
learning, and living environments with more natural light and cleaner air,
contributing to improved health, comfort, and productivity.
Staff has focused initially on green building as an important component of
sustainability. Other program considerations and sustainable measures may be
coordinated through the Sustainable City Plan and focus on the areas of
conservation, land use and waste diversion.
Meeting Date: 9.22.08 Item Number: A-2
AGENDA ITEM: Discussion of Green Building Standards in Culver City
Contact Person/Dept.: Craig Johnson
Sol Blumenfeld
Phone Number: 310-253-5802
310-253-5702
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [X] Action Item: [] Attachments: [x]
Public Notification: Master E-Mail Notification List (09/17/08), public stakeholders,
public speakers at past green building City Council discussions. Advertisement in
Culver City Observer (9/18/08)
Department Approval:
Sol Blumenfeld (09/16/08)
City Attorney Approval:
Carol Schwab (by H. Baker) (09/16/08)
Chief Financial Officer Approval:
Jeff Muir (by N. Kimball) (09/17/08)
City Manager Approval:
Jerry Fulwood (09/17/08) City of Culver City, California
City Council Agenda Item Report
In looking at best practices of current green building programs operating in Santa
Monica, West Hollywood and other nearby cities (Attachment No. 2), staff has
prepared three green building options for the City Council’s consideration. These
options range from incentive programs to mandatory construction requirements for
new development. Staff recommends that the City Council consider implementing
one or more of the following green building options:
Option 1: Incentive Program for LEED Certification and “Green Zone”
Program
Option 2: Mandatory New Development Requirements
Option 3: Mandatory Green Building Point System.
Option 1: Incentive Programs for LEED Certification & Green Zone Program
LEED Certification Incentive Program
This option proposes a partial permit fee refund for projects obtaining Leadership
in Energy and Environmental Design (LEED) Certification. Building permit fee
refunds are an incentive to developers, but do not fully cover the costs of obtaining
LEED certification. LEED is the third party review and green building rating system
which offers four certification levels for new construction: Certified, Silver, Gold,
and Platinum. These levels correspond to five green design categories:
sustainable sites, water efficiency, energy and atmosphere, materials and
resources and indoor environmental quality. The LEED certification adds from 6%
to 9% to overall building permit costs.
Staff proposes the City establish a fee refund schedule as follows:
20% of the building permit fee for projects obtaining LEED certified status
30% of the building permit fee for projects obtaining LEED silver status
40% of the building permit fee for projects obtaining LEED gold status
50% of the building permit fee for projects obtaining LEED platinum status
Example of New Development and LEED Certification Costs:
New
Development
(square
footage)
Valuation Approximate
Building
permit fees*
Certified
6% of
project
valuation
Silver
7% of
project
valuation
Gold
8% of
project
valuation
Platinum
9% of
project
valuation
117,000 $14.7 Million $90,000 $882,000 $1,030,000 $1,176,000 $1,323,000
City of Culver City, California
City Council Agenda Item Report
• excluding plan check fees and all other City fees and charges, and excluding the costs of the other civil, fire,
mechanical, electrical, and plumbing permits that may be typically expected with a project of this type.
It is important to note that the typical Culver City building permit fee cost, if
refunded in full, would probably only cover the cost of a project to obtain LEED
certified status. Since a full refund would significantly reduce City building permit
revenues, staff recommends a cap of $60,000 for any individual project. Staff
proposes administering this program by collecting the full building permit fees prior
to construction. Upon presentation of LEED certification, a refund would be
generated (subject to the annual cap as recommended by staff and approved by
the City Council).
“Green Zone” Demonstration Program
This program would allow for building permit fee waivers for installation of any
approved energy saving construction within the City’s designated “green zones.” It
is proposed that these green zones be the current Phase I and Phase II Area
Improvement Project Demonstration Areas (West Washington Blvd from Wade to
Beethoven Avenues (Phase I Shown on Attachment No. 3) and Centinela
Boulevard to Colonial Avenue (Phase II)). A list of approved energy saving
construction efforts would be culled from the proposed Mandatory measures
(Option 2) and the points based system (Option3).
Staff recommends a 100% building permit fee refund as illustrated below within the
green zones with a maximum cap of $5,000 for any individual project.
Project
Scope
Project
Valuation
Total Permit
All Fees
Building
Permit
Fee
Total Amount
of Incentive
Improve energy efficiency
through upgraded insulation,
exterior doors and windows.
$40,000 $2,200 $650 $650
Staff recommends that the Green Zone program remain in effect for five years for
each zone designated in order to provide time to encourage business and property
owner’s participation. There are approximately 40 properties and businesses that
could benefit from this option. This option would provide a financial incentive in a
highly visible demonstration program for the City.
Option 2: Mandatory Requirements Program for All New Development
This option involves the creation of a list of mandatory prescriptive measures that
would apply to new ground-up construction. A building permit will not be issued until
adherence to the program requirements is achieved. Over time, zoning City of Culver City, California
City Council Agenda Item Report
considerations and new technology may require updating this list to ensure program
effectiveness. This option does not provide any financial incentive; but would be
effective and relatively simple to administer.
The following mandatory green building requirements are proposed for all new
development:
1. Minimum 17 Seasonal Energy Efficiency Ration (SEER) for all new ac units in
new construction (The efficiency of air conditioners is often rated by SEER.
The SEER rating is the Btu of cooling output during a typical cooling-season
divided by the total electric energy input in watt-hours during the same period.
The higher the SEER rating of a unit, the more energy efficient it is. A
minimum SEER rating of 13 is currently required under the Building Code??.)
2. All new gas heating units in new construction to be minimum 92% efficient
(96.6% efficient is the highest efficiency generally available).
3. All heating and cooling ducts to be within heated or cooled space for new
construction.
4. Minimum R-38 roofs and floors (to exterior spaces), minimum R-28 walls in
new construction. (R–rating is an index of the insulation value. The higher the
rating, the higher the insulation value.)
5. Radiant barriers under roof sheathing in new construction. (Possible
additional measure: also require radiant barriers under all west, south, and
east wall sheathing in new construction.)
6. Current code allows exterior glass to be U .38 and SHGC of .31; require all
new glass to be minimum U .35 and SHGC of .30 in new construction and
additions and remodels. (U-rating is an insulation rating of the glass. The
lower the U-rating, the higher the insulation value. SHGC is the Solar Heat
Gain Coefficient which is a measure of glass resistance to radiant heat. )
7. All new low-slope roofs to have a minimum SRI of 75% in all new
construction and all low-slope re-roofing permits. (Solar Reflectance Index is
a measure of reflectivity of the roofing surface.)
8. Exterior shading over all glass on the west, south, and east sides of all new
construction. (Alternate: require all glass on the west, south, and east side of
new construction to be upgraded performance.)
9. All new interior and exterior lighting to be fluorescent or Light Emitting Diode
(LED) or other high efficiency lighting in new construction.
10. All bathroom lighting (fluorescent or LED) and exhaust fans to be motion
sensor controlled in new construction.
11. All corridors (and any other typically unoccupied spaces) lighting
(fluorescent or LED) to be motion sensor controlled in new construction.
12. All garage and parking structure lighting (fluorescent or LED) to be motion
sensor controlled in new construction. (Minimum base level lighting allowed.)
13. Dual flush water closets in new construction. City of Culver City, California
City Council Agenda Item Report
14. Only waterless urinals in new construction.
15. Tankless water heaters in new residential construction.
16. Two(2) - 2" electrical conduits to be installed from the roof to the electrical
panels for future photovoltaic installation for each unit in all new residential
construction and in all new commercial construction. (Of less than 10,000 sf
which doesn't qualify for mandatory photovoltaic installation.)
17. A bike parking area in all new construction.
18. A recyclables collection area in all new construction. (Possible additional
measure: require 2 trash chutes in all new multi-floor construction; routed
directly to 2 different dumpsters in a trash room below; one for trash, one for
recyclables.)
19. One (1) duplex ground fault circuit interrupter outlet for each eight parking
spaces in new residential construction. (For future plug-in vehicles.)
20. Require all new construction to have smart irrigation controllers.
Option 3: Mandatory Green Building Point System.
This option involves the establishment of a mandatory point system to help achieve
energy efficiency in new development and building improvement. A building permit
will not be issued unless there are a minimum number of points received pursuant to
the table below. The points based system is a compilation of the most effective items
from several points based systems from other cities as well as LEED checklists and
would be administered in addition to the mandatory items prescribed in Option #2.
Each item on the list would equal one point and would apply to all remodels, tenant
improvements, additions, and new construction. Projects of varying scopes must
meet a thresholds of the available points based on new construction square
footage.
An example is illustrated below:
Square footage Mandatory list Points required
10,000 – 25,000 sq. ft. All items 13 points
25,000 – 50,000 sq. ft. All items 16 points
Over 50,000 sq. ft. All items 22 points
Site
Preserve all existing site and/or street trees.
Provide additional drought tolerant landscaping and shade trees, minimize
turf areas.
Install efficient irrigation system (minimize spray heads, maximize use of
bubblers and drop irrigation.) City of Culver City, California
City Council Agenda Item Report
Natural Heating and Cooling
Provide operable windows for ventilation in all new construction.
Provide ceiling fans in all habitable areas.
Minimize air conditioning.
Foundation
Incorporate fly ash or recycled content in all paving and foundation concrete.
Structure
Use engineered wood or steel for 90% of the floor and roof framing (to reduce
amount of wood consumption.)
Use FSC certified wood framing for 20% of all wood framing materials.
Use structural insulated panels.
Plumbing
Insulate the full length of all hot water piping.
Install faucets of less than 2.5 gpm.
Insulation/ Energy
Minimum 25% of insulation formaldehyde free, recycled content.
Minimum 60% of wall insulation cellulose, cotton ball, or bio-based foam.
Minimum 60% of ceiling insulation cellulose, cotton ball, or bio-based foam.
Pre-plumb for future solar hot water heating.
Install solar photovoltaic (for projects less than 10,000 sf not qualifying for
mandatory solar pv.)
Install Energy Star programmable thermostats.
Perform duct testing.
Indoor Air Quality
Use low Volatile Organic Compound (VOC)sealants and adhesives.
Use composite wood with no added urea formaldehyde for counters and
countertops.
Use carpet Carpet and Rug Institute Green Label certified.
All wood flooring bamboo or other renewable material.
City of Culver City, California
City Council Agenda Item Report
Roofing
Use 25% recycled content roofing materials.
Roofing materials warranty minimum 40 yr. for asphalt shingles, 15 yr. for
built-up.
Exterior Finishes
Minimum 30% of exterior surfaces integral or no color stucco, or durable
surface panels.
Interior Finishes
Minimum 20% exposed concrete floors.
Minimum 25% recycled content countertop materials.
General
Divert minimum 75% of construction demolition by weight to recycling.
Innovative design as determined by City staff.
Costs and Benefits of Potential Culver City Green Building Programs
Staffing
Option 1 and Option 2 would not require additional staffing to implement.
Staff estimates, however, that Option 3 would require, at minimum, one additional
full time City staff member and one additional City vehicle. (Attachment No. 3)
Energy Costs and Annual Emissions Illustration
In an effort to illustrate the relative benefit of these programs/options against the
current Energy Code, an example of a commercial project (totaling 282,000 sq. ft.)
and nine new residential units (totaling 49,000) is highlighted below:
Options Annual
Commercial
Annual
Residential
Annual
Carbon
Annual
Energy
Construction
Cost Increase
Additional
Staffing City of Culver City, California
City Council Agenda Item Report
BTU’s Btu’s Emissions Costs
Standard
California
Energy Code
25.5 billion .78 561 tons $392,000 (0) n/a
Option 1 –
LEED
certification*
21.7 billion .66 477 tons $333,000 $376,000 n/a
Option 2 –
Mandatory
Program **
22.9 billion .70 505 tons $353,000 $188,000 n/a
Option 3 –
Points based ***
20.4 billion .62 448 tons $313,000 $564,000 1 additional
staff
* assumes Silver certification level, 15% energy improvement and additional $1.00 square foot construction cost.
Does not include green zone program.
** assumes 10% energy improvement and an additional $.50 per square foot construction cost.
*** assumes 20% energy improvement and an additional $1.50 per square foot construction cost.
General Assumptions;
That under each option all annual 282k s.f. of new commercial space and all 9 new residential units fully
comply with that option.
That the consumption of each 45,000 btu’s produces 1 ton of carbon emissions
The btu cost is estimated at 70,000 btu’s per $1.
The estimated construction cost increase is an additional cost to the developer of a building.
SUMMARY
Staff is proposing three green building program options for Council consideration.
Option 1 is an incentive program that could offer a refund of up to 50% of the
building permit fee for LEED certified projects. It is proposed that a cap be put in
place of at least $60,000 for individual projects and $225,000 annually for the
program as whole. This option also includes 100% building permit refunds for
“green zones” within the City. As a pilot program, staff recommends that the first
green zone be coterminous with the current West Washington Demonstration
Project – Phase I. Based on the current property and business constitution, the cost
for this program could be up to $15,000 in building permit refunds and would not
require any additional staffing.
Option 2 is a mandatory checklist of standards applied to all new development. The
list represents a number of effective and straightforward prescriptive measures that
would effectively reduce carbon emissions and increase sustainability within the
City. Staff believes that this program could be absorbed with current staffing levels
and would not require any additional staffing.
City of Culver City, California
City Council Agenda Item Report
Option 3 is a hybrid program that would require adherence to all of the measures
listed in Option 2 as well as additional requirements, via a point system, based on
building square footage. This option would be case specific for each new project
and would require more in depth inspection to ensure compliance. This option
would require an additional staff person and associated resources.
FISCAL ANALYSIS
All three options would forward the City’s general policy goal of obtaining a more
sustainable environment. However, there is a fiscal cost to the City to implement
each option. All three options would have the consequence of a loss in Utility Users’
Tax (UUT) revenue. There is a direct relationship between UUT revenues and a
building’s energy efficiency. As energy efficiency increases, the amount that a
business pays per square foot in utilities (such as electricity, gas and water)
decreases, consequently decreasing the amount of UUT paid by the consumer.
Currently, electricity, gas, and water UUT combined generate approximately $8
million in revenues, with the primary piece of that being electricity at approximately
$6 million. As the number, size, and level of energy efficient projects increases over
time, the City can expect to see a proportionate decrease in UUT revenue over what
would be generated by a traditional project. That being said, the economic cost to
clean the environment in the long run may far exceed the potential loss of UUT
revenue.
If Option #1 were pursued (LEED Certification and Green Zone incentives), staff
recommends the City Council determine annual cap limits for building permit refunds
and incentives that would result in a decrease in net revenues to the General Fund.
As proposed, these discounts would not fully cover the actual cost of LEED
certification, but could substantially subsidize consultant fees to achieve certification
and/or make sustainable improvements to an existing structure. The cost of this
program is whatever the City Council ultimately determines as an annual cap for the
program (see next paragraph) plus loss of UUT revenue.
For example, in Option #1 a total annual program cap of $225,000 ($60,000 per
individual project), or approximately 10% of annual Building Safety revenues, could
include three commercial projects refunded $30,000 each and nine residential
projects refunded $15,000 each or any other combination within this limit. This
would, in essence, cost the City up to $225,000 plus ongoing lost UUT revenue plus
staff time to develop the necessary applications, rating processes, benchmarks, etc.
Additionally, the “green zone” program could refund an additional $15,000 in building
permit fees if approximately 50% of the business participated in the West
Washington Demonstration Project, Phase I. Based on the location of these City of Culver City, California
City Council Agenda Item Report
businesses, staff anticipates that most of the sustainable upgrades would be limited
to energy efficiency efforts to include glass/window upgrades, insulation, and HVAC.
As proposed, Option #2, a Mandatory Green Building Program, would not have
additional cost to the City beyond the potential loss of UUT revenues and some
additional staff time to implement the additional requirements for developers.
Option #3, a Points Based System, would require one additional full-time employee
(approximately $100,000 including salary and benefits, which would increase on an
annual basis), $30,000 for one additional hybrid vehicle, and $5,000 annually for
related amortization and garage expenses.
Based on the City Council’s desire to explore implementation of one or more of the
proposed options, the further fiscal impacts would need to be refined.
ATTACHMENTS
1. Green Building Chronology
2. Green Building Programs in Other Cities
3. Deomonstration Area Map
4. Staffing Requirement Calculation for Option 3
5. Culver City Mandatory Solar Photovoltaic Information
6. “Building Green with Carrots and Sticks”, Western City Magazine, May 2008
7. Los Angeles Business Journal Article, August 18, 2008.
8. Other Programs for Consideration
MOTION:
That the City Council:
Receive and file this report and provide direction regarding proposed green
building standards.