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October 9, 2008
City Council adopts Green building policy
Approves MOU with Tesla
By Carol Rosen
Editor
Tuesday afternoon’s City Council meeting ap-proved two important issues.
The city adopted a Green building policy and it ap-proved the memo of understanding with Tesla Motors as well as reviewing the economic and fiscal impact of bringing that company’s manufacturing, research and development and headquarters to an 89-acre parcel on Zanker Road at Highway 237.
Council members unanimously passed the green building policy that follows the policies of legislation passed a year ago on the city’s Green Vision. Mayor Chuck Reed and all of the council members praised city staff for the job they have done in working with local developers to advance the green policy to meet the goal of building or retrofitting 50 million square feet of green buildings.
The standards, according to a memo put out by Reed and Councilmembers Judy Chirco and Sam Liccardo, “were developed to create green building requirements that fit the type and size of construction specific to San Jose. While other cities have both higher and lower requirements than the proposed policy, the proposed policy is meant to create a baseline standard founded on local conditions.”
The recommendations include verification by third party, post occupancy verification of compliance to the city o f San Jose, performance standard determination early in the project timeline, proven and recognized rating systems, graduated phasing of requirements and developer choice.
The staff will evaluate the progress of the building policy in the summer of 2011. Reed and the council members suggested this would be a good time to inventory the marketplace and use the all the relevant data from the first years to develop green performance levels for the future. “It would also be an opportunity to review any new applicable law regarding green buildings that may be passed during the interim.”
At a press conference prior to the council meeting Reed marked the first anniversary of passage of the city’s green vision to note how it is becoming reality.
“The people of San Jose and Silicon Valley have changed the world. With our history of innovation and environmental stewardship as a foundation, San Jose is on track to become the world’s center of innovation in clean, green technologies,” said Reed. “We are making great strides in implementing our goals for innovation, sustainability and green mobility. These goals are bold and comprehensive. Some said we were overly ambitious.
We’re making progress, and in 2022, we’ll look back and be thankful at the work that’s been to create a better future for our children, our residents, and the world.”
Approving Tesla MOU
Council members also unanimously approved the memorandum of understanding with Tesla Motors, while city staff presented a review of the economic and fiscal impact of the project. The environmental analysis has not yet been completed but will be presented in the spring.
Reiterating the details of the plan, it was again noted that for the first 10 years, Tesla will pay no rent. For year 11-20, rent will increase to $1.5 million and for the following 20 years will be adjusted by the CPI. If the company is purchased within the first 10 years, the lease rate reverts to the market rate. If the company dissolves, the city has first right of refusal to take over the parcel and its buildings.
The entire Tesla package—manufacturing, research and development and headquarters—is expected to bring in $2 billion for the regional economy; and about a net $1.5 million to San Jose’s general fund.
It will generate about 1,000 clean tech jobs paying between $13.50 and $50 per hour and about 700 construction jobs. It also is expected to create an additional 2,600 supplier and service jobs to support its just-in-time purchasing policy for production of 20,000 cars per year.
Besides the proposed revenue income to the city’s budget, the announcement has brought notice to the world that “San Jose is open for business.” National and international publications as well as national news of the new facilities have noted that Tesla chose to move to San Jose providing and possibly encouraging other business to relocate here.
| Green Vision goals and progress |
- Goal 1: Create 25,000 “clean tech” jobs.
In the past 12 months San Jose has increased jobs by more than 1,500 mostly through solar power companies.
- Goal 2: Reduce per-capita energy use 50 percent.
The city used 5 billion kilowatt-hours of electricity last year but 2008 figures are not yet available. The city’s operations reduced energy usage by 21 percent.
- Goal 3: Receive 100 percent of electrical power from clean, renewable resources.
Obviously, the city has not yet achieved this goal. Since October 2007, solar systems have been installed at eBay—a 650Kw system—and the San Jose Unified School District with a 5,000 Kw system. GOAL 4: Build or retrofit 50 million square feet of green buildings.
- Goal 4: Build or retrofit 50 million square feet of green buildings.
The city added 159,000 square feet in the past 12 months, and the policy passed Tuesday should increase that substantially within the next three years.
- Goal 5: Divert 100 percent of waste from landfill and convert to energy.
Prior to October 2007, the city recycled 62 percent of municipal waste. Changing apartment and condominium recycling increased the rate to 75 percent. The city also has added and is trying out use of recyclable products at street fairs and festivals. Staff is also studying technology that would convert food waste and sewage sludge to energy.
- Goal 6: Recycle or reuse 100 percent of wastewater.
San Jose has increased its recycling or reuse of wastewater about 10 percent, up 11 million gallons per day from 10.2 a year ago.
- Goal 7: Adopt a general plan with measurable standards for sustainable development.
The city is in the middle of updating its general plan.
- Goal 8: Ensure 100 percent of city fleet vehicles run on alternative fuels.
San Jose is exploring use of electric car partnerships with vehicle manufacturers. Last year it had less than 1,000 of its 2,700 city-owned vehicles using alternative fuels.
- Goal 9: Plant 100,000 new trees and replace 100 percent of streetlights with zero-emission lighting.
In the past 12 months, the city has planted 2,023 new trees. It is currently studying its ability to replace sodium-vapor street lighting with LED technology.
- Goal 10: Create 100 miles of interconnected trails.
San Jose has increased its trails to 51, some of which are interconnected, up from 40 last year. |
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