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HomeMy WebLinkAbout2009/11/17 Item 16~-.~ ~ - r CITY COUNCIL AGENDA STATEMENT ~ ~.,.~-' cily of CHUlAVISTA NOVEMEBER 17, 2009, Item `~ ITEM TITLE: AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 20.04 OF THE CHULA VISTA MUNICIPAL CODE TO REQUIRE NO-COST RESOURCE AND ENERGY EVALUATIONS AS PART OF THE BUSINESS LICENSE PROCESS AND AMENDING THE CROSS REFERENCE IN CHAPTER 5.02 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADDING SECTION A.1.D. TO CHAPTER IV OF THE MASTER FEE SCHEDULE TO INCLUDE A FINE FOR BUSINESSES NOT COMPLYING WITH THE FREE RESOURCE & ENERGY EVALUATION REQUIREMENT OF $15 OR 5% OF BUSINESS LICENSE FEE (WHICHEVER IS GREATER) SUBMITTED BY: DIRECTOR OF CONSERVATION & ENVIRONMENTAL SERVICES ~~ REVIEWED BY: CITY MANAGER ASSISTANT CITY NAGER 5~ 4/STHS VOTE: YES ~ NO ^X SUNIMARY As part of the climate protection measures which were approved by City Council to help reduce Chula Vista's citywide greenhouse gas or "carbon" emissions, City staff integrated no-cost, voluntary energy and water evaluations (known as the Free Resource & Energy Business Evaluation or FREBE program) into the business licensing process. After implementing the voluntary program for the past 10 months, City Council directed staff to create a new municipal ordinance that would require businesses to participate in the free on-site evaluation program. The proposed ordinance will help businesses with storefront or office locations to identify opportunities to conserve resources and reduce their monthly utility costs, while not creating an impediment to the participating business's normal operations. The new ordinance's implementation would be tracked and regularly reported back to the City Council through the climate protection measures' biannual progress reports. 16-1 NOVEMBER 17, 2009, Item Page 2 of 4 ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 8 categorical exemption pursuant to Section 15308 [Actions by Regulatory Agencies for Protection of the Environment] of the State CEQA Guidelines because the proposal seeks to implement strategies aimed at reducing energy use and lower fossil fuel emissions. Thus, no further environmental review is necessary. RECOMMENDATION City Council adopt the resolution and place the ordinance on first reading. BOARDS/COMMISSION RECOMMENDATION The Resource Conservation Commission provided feedback on the draft ordinance and unanimously recommended City Council approval of the ordinance at their September 14, 2009 meeting. DISCUSSION On July 10, 2008 the City Council approved the implementation plans for seven climate protection measures which focused on lowering energy and water consumption, installing renewable energy systems, promoting alternative fuel vehicles, and designing pedestrian and transit-friendly communities. As outlined in Measure #3, staff developed an ordinance and implemented a voluntary program that encouraged businesses through the annual business licensing process to participate in an energy and water evaluation of their facilities. The no-cost program, recently renamed the Free Resource & Energy Business Evaluation or FREBE, assists businesses in lowering their monthly utility costs and consequently their contribution to greenhouse gas emissions and climate change impacts. The on-site evaluations, which aze performed by trained City staff in about 30 minutes, may include a review of a building's systems (i.e. lighting, cooling and heating), envelope (i.e. exterior windows, doors and insulation), office equipment, appliances, operational procedures, and utility bills. With the evaluation's results, detailed strategies can be recommended to the business to help reduce their energy and water consumption through voluntary efficiency upgrades and/or operational changes. Evaluations aze also a key step in identifying available incentives, rebates, and low cost financing options that will reduce any potential upfront costs for the business to implement the established cost- saving improvements. As part of the climate protection measures' 12-month progress report, staff reported that linking a voluntary energy and water evaluation program to the business license process resulted in less than 1% participation of eligible businesses (29 of 4,100). Because of the low participation leve]s, staff had to resort to on-site solicitations of 432 businesses to increase participation creating significantly higher implementation costs and decreasing the program's cost effectiveness. Nonetheless, over 311 businesses participated in the 16-2 NOVEMBER 17, 2009, Item~_ Page 3 of 4 program between January and July 2009 with 71% of participants implementing one or more of the recommendations from the free evaluations. Of those businesses which implemented at least one recommendation, approximately one-third experienced immediate cost savings on their monthly utility bills. In response to these results, City Council directed staff to work with community stakeholders to draft an ordinance which would require businesses to participate in the Free Resource & Energy Business Evaluation program as part of the business licensing process. The proposed ordinance would codify the new no-cost business energy and water evaluation requirement by amending Chula Vista Municipal Code Chapter 20.04 (Energy Conservation). Specifically, businesses occupying a physical storefront or office on a commercial utility meter would be required to participate in the program when a new business license is issued or once every 3-5 years for a renewed business license. At this point, staff is recommending to implement a once every 4-year program cycle for business renewals. Businesses could request more frequent evaluations from the City at their sole discretion. The new ordinance would not require businesses to implement any of the identified energy or water efficiency opportunities and would not require businesses to complete evaluations for facility areas beyond their operational control (ex. whole-building systems operated and maintained by a Property Manager/Landlord). Businesses refusing to participate in the program would be assessed a fine of $15 or 5% of business license costs (whichever is greater) which would be established in the Master Fee Schedule and would be collected on the following year's business license. Any collected fines would be used to purchase and distribute energy and water-saving devices (such as CFLs and smart power strips) to participating businesses. The proposed ordinance incorporates feedback from numerous stakeholder groups including the Chula Vista Chamber of Commerce, Third Avenue Village Association, Broadway Business Association, Chula Vista Civic Association, Resource Conservation Commission, and the City Council Energy Subcommittee. Their suggestions and comments resulted in a number of significant revisions to the draft ordinance such as extending the program cycle to 4 years, emphasizing the ordinance's intent to provide the evaluations at no-cost to businesses, clarifying the responsibilities for multiple businesses occupying the same office area, and adding exemptions for new businesses occupying an area previously evaluated within the last 4 years and businesses participating in another energy/water audit program (including the Chula Vista CLEAN Business program). Staff is also working to provide streamlined implementation to ensure that the new requirement does not create an impediment to the participating business's normal operations. Businesses will be able to easily schedule an evaluation by selecting a preferred date and time on their business license form, through an on-line appointment calendar, or by calling the City's bilingual staff in the Department of Conservation & Environmental Services. If businesses do not schedule an appointment within 60 days of receiving a license, staff will set a tentative appointment during the business's regular business hours which can be confirmed or rescheduled at the business's discretion. 16-3 NOVEMBER 17, 2009, Item ~b Page 4 of 4 If approved, the new requirement would begin in the 2010 business license period. Staff will provide updates on the program's implementation -including number of completed evaluations, number of potential energy/water saving opportunities identified, number of energy-water saving devices distributed, and number of unresponsive businesses - through the biannual climate measures' progress reports to City Council. Staff will also continue to work with business and community stakeholder groups to refine the program's mazketing and service delivery as it is launched and managed. When staff met with the Chula Vista Chamber of Commerce to discuss the voluntary program, Chamber representatives expressed concern about changing to a required program. They requested to meet with City staff in order to discuss developing a more effective voluntary program. As a result, City staff has met several times with Chamber and other business representatives and are prepazed to present a proposal for an "enhanced" voluntary program, if Council desires. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section 18704.2(a)(1) is not applicable to this decision. CURRENT YEAR FISCAL IMPACT The Department of Conservation & Environmental Services is able to provide staff and resources for business energy and water evaluations through the City's Local Government Partnership with the California Public Utilities Commission (CPUC) and San Diego Gas & Electric (SDG&E). Therefore, there is no fiscal impact to the General Fund or the participating businesses. ONGOING FISCAL IMPACT Staff has been notified by SDG&E that funding will continue for the Local Government Partnership through December 31, 2012. Therefore, there is no fiscal impact to the General Fund through the next few years. Staff is also working to secure additional long- term funding sources for the business energy and water evaluations and the other six climate change measures as previously directed by City Council. If no additional funding is secured, the program will be reevaluated and maybe eliminated. ATTACHMENTS Attachment A -Free Resource & Energy Business Evaluation (FREBE) FAQ Sheet Attachment B -Summary of Incorporated Stakeholder Feedback Attachment C -Amended Master Fee Schedule (Chapter IV) Prepared by: Brendan Reed, Environmental Resource Manager, Conservation & Environmental Services 16-4 ~`~ f j R..TTACflli'fENT A ~4 cmoF Department ofCOnservation CHULAVISTA I & Environmental Services FREE RESOURCE & ENERGY BUSINESS EVALUATIONS Frequently Asked Questions (DRAFT) As part of the City's environmental leadership, businesses with storefronts or offices will be required to participate in a Free Resource & Energy Business Evaluation (FREBE) of their facilities (Ordinance #XXX). The on-site evaluation, which is performed by City staff in about 30 minutes, must be completed in the calendaz year (or within 90 days whichever is greater) when a new license is issued or every four years for an existing business license. Businesses are encouraged, but not required, to perform any efficiency retrofits or improvements identified through the on-site evaluation. What are the benefits? Chula Vista businesses will benefit in a vaziety of ways from the new requirement, including: • FREE assistance identifying ways to reduce their monthly energy & water costs • FREE energy and water rebate assistance & 0% interest financing options • FREE compact fluorescent light bulbs, "smart" power strips, or other devices • FREE training on ways to easily track their energy & water costs • Future notice regazding free services & rebates for their specific business • Improve their competitiveness by lowering monthly utility costs How will a business know when their evaluation is due? Businesses will receive a reminder mailer by January ls` with their business license renewal. New businesses will receive information with their application. How does a business schedule an appointment? Businesses are able to easily schedule an evaluation appointment through an on-line calendaz at www.chulavistaca.gov/clean or by calling 619-409-3893. If an existing business doesn't set an appointment by March 1st, the City will set an evaluation date and time for the business during their regular business hours. Newly-licensed businesses will have 60 days to schedule an appointment at a convenient date and time for them. What happens if a business doesn't complete an on-site evaluation? If a business does not complete an on-site evaluation throughout the calendar yeaz after receiving multiple notices, they will be assessed a fine of $15 or 5% of business license fee (greater of two) which is collectable on the following yeaz's business license and incurs a 6% interest rate per annum. Which businesses are exempt from the requirement? Home offices, mobile businesses, and other business entities that do not have a commercial utility gas or electric meter are exempt. New businesses occupying a facility that has participated in the City's FREBE (or similar program) in the last 4-yeazs are also exempt. Contact the City at 619-409-3893 for information on additional exemptions. For more information about the program, please contact the Department of Conservation & Environmental Services at 619-409-3893 or Conservation(a~ci.chula-vista.ca.us Spanish version on opposite side Version 10/27/09 16-5 ?.TTACHMENT B \i~A~• ~4 a~ Department ofCOnservation CHUTAVISTA I & Environmental Services FREE RESOURCE & ENERGY BUSINESS EVALUATIONS Incorporated Stakeholder Feedback Below are suggestions and feedback from community and business stakeholder groups which were incorporated into required Free Resource & Energy Business Evaluation process to date: Extended period between required energy and water evaluations from 3 years to 4 years. Businesses are still able to voluntarily request more frequent evaluations, if desired. :• Clarified that new businesses are not required to have an on-site evaluation if their facility already participated in the program within the last 4 years. Staff will send the new business the past evaluation's results to inform them about potential cost saving measures. :• Clarified that businesses are not required to complete evaluations for areas beyond their operational control (ex. whole-building systems operated and maintained by Property Manager/Landlord). Businesses which have had an energy audit performed by SDG&E or another City, State or Federally recognized program in the last 4 years are exempt from the City requirement. •: Businesses participating in the Chula Vista CLEAN Business program are exempt from the on-site evaluation requirement. •A Multiple businesses occupying the same office area (ex. real estate office) only need to have one evaluation completed. :• Extended the initial appointment scheduling period from 45 days to 60 days and will proactively set up appointments for unresponsive businesses. Added language to the ordinance explaining that the intent is to provide FREE on-site evaluations to businesses. d• Reduced the penalty fine from $25 or 5% of business license fee (greater of two) to $15 or 5% of business license fee (greater of two). s Any collected penalty fees would be used to purchase energy and water saving products to be distributed to businesses to help reduce utility costs. :• Continue to work with the Chamber and other stakeholders to market the program and streamline the ability of businesses to participate as easily as possible. Staff also incorporated numerous recommendations from stakeholders when the business energy evaluation ordinance (Climate Measure #3) was originally proposed by the Climate Change Working Group last year: o~ Implement program initially as a voluntary program for six (6) to twelve (12) months and report back to Council regarding the effectiveness of the voluntary business license sign up process. w Ensure that businesses who do not participate are still allowed to operate their business and occupy their facility. :• Add language explicitly stating that businesses are not required to implement any of the energy efficiency or water conservation retrofits identified through the on-site evaluation process. Version 10/27/09 1 of 2 16-6 :• Include an exemption for businesses occupying a newly constructed or renovated facility. In addition to the Chamber of Commerce, staff outreached to the Broadway Business Association and the Third Avenue Village Association to receive additional comments and invited local businesses to an October 19~" workshop to further discuss this issue and the new Home Upgrade, Carbon Downgrade program. Version 10/27/09 2 of 2 16-7 CHAPTER IV ATTACHMENT C Business Fees A. GENERAL BUSINESS 1. Business License -General a. Duplicate License $5 processing fee b. Change of Location $12 processing fee c. Home Occupation Permit $25 filing fee d. Business Resource and Energy Evaluation -Non-compliance Fine $15 or 5% of business license fee (whichever is reater) 2. Sales -Special a. Closing Out Sale $30 filing fee for first 60 days $15 filing fee for one extension of 30 days b. Special Sales Event $45 application fee c. Temporary Outside Sales Permit $45 application fee B. SPECIFIC BUSINESS 1. Art Figure Studio a. License Investigation Application - $100 nonrefundable investigation fee Master Fee Schedule Page 1 Part I -General Chapter IV -Business Fees ~R_A b. Work Permit Model Permit - $25 nonrefundable investigation fee 2. Bath House -License Investigation $100 nonrefundable investigation fee 3. Bingo License Investigation Fees -New and Renewal Chairperson $50 Co-Chairperson $27 In the event an application is denied, fifty percent of the fee shall be refunded. Applicant shall also pay the required fees for fingerprint processing for each change in the bingo chairperson. 4. Card Room a. License Investigation $500 nonrefundable investigation fee b. Work Permit New: $50 -card room managers $30 - cazd room employees Annual renewal: $20 -card room managers $10 - cazd room employees 5. Casino Parties $50 investigation fee 6. Fraternal Society Gameroom a. License Investigation $50 investigation fee 7. Holistic Health Practitioner Investigation Fee $100 investigation fee, refundable upon issuance of a business license Master Fee Schedule Page 2 Part I -General Chapter IV -Business Fees 8. Junk Dealer a. License Investigation Business License - $80 nonrefundable investigation fee b. Work Permit Employee ID Card - $30 nonrefundable investigation fee $10 change of address/replacement fee 9. Live Entertainment License Investigation $150 investigation fee, refundable upon issuance of a business license 10. Massage Establishment a. License Investigation Massage parlor application - $150 nonrefundable investigation fee b. Sale/Transfer $25 filing fee a Change of Location $25 filing fee 11. Massage Technician a. Work Permit $30 nonrefundable investigation fee 12. Mobile Home Park Annual Operating Fee The annual safety and health fee for operation of a mobile home park shall be as established by the State. 13. Pawnbroker a. License Investigation Business License - $80 nonrefundable investigation fee Master Fee Schedule Page 3 Part I -General Chapter IV -Business Fees b. Work Permit Employee ID Card - $30 nonrefundable investigation fee $10 change of address/replacement fee 14. Peddler a. License Investigation $10 filing fee 15. Public Dance a. License Investigation $50 investigation fee 16. Second Hand Dealer a. License Investigation Business License - $80 nonrefundable investigation fee b. Work Permit Employee ID Cazd - $30 nonrefundable investigation fee $10 change of address/replacement fee 17. Solicitor a. License Investigation $10 nonrefundable filing fee b. Identification Cazd -Work Permit $ I S annual fee 18. Transient Merchant a. License Investigation $10 investigation fee 19. ABC Determination of Public Convenience or Necessity Master Fee Schedule Page 4 Part I -General Chapter IV -Business Fees The filing fee shall be a deposit of $250.00 to cover the City's full cost including overhead. [Staff Report and Resolution 18609, effective 3/18/1997) Master Fee Schedule Page 5 Part I -General Chapter IV -Business Fees ORDINANCE NO. AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 20.04 OF THE CHULA VISTA MUNICIPAL CODE TO REQUIRE NO-COST RESOURCE AND ENERGY EVALUATIONS AS PART OF THE BUSINESS LICENSE PROCESS AND AMENDING THE CROSS REFERENCE IN CHAPTER 5.02 The City Council of the City of Chula Vista does ordain as follows: SECTION I. That Chapter 20.04 of the Chula Vista Municipal Code is hereby amended to read as follows: Chapter 20.04 ENERGY & WATER CONSERVATION REGULATIONS Sections: 20.04.010 Intent and purpose of provisions. 20.04.020 Conflict with other provisions. 20.04.025 Definitions. 20.04.030 Solar water heater preplumbing. 20.04.040 Solar photovoltaic prewiring. 20.04.050 Business resource and energy evaluations _^~. CROSS REFERENCE: Business Licenses Generally, see Ch. 5.02 CVMC. Electrical Code and Regulations, see Ch. 15.24 CVMC. Plumbing Code, see Ch. 15.28 CVMC. 20.04.010 Intent and purpose of provisions. The conservation of energy and natural resources including water, air quality and open space has been determined to be a legitimate and worthy function of the City. The provisions of this chapter are intended to decrease dependence upon fossil fuels and other nonrenewable energy sources that contribute to the City's greenhouse gas emissions by encouraging and, in some instances, requiring best management practices including the installation of devices, structures or materials for the efficient generation, distribution and use of energy and water on certain structures within the City. (Ord. 3135 § 1, 2009; Ord. 3119 § 1, 2008; Ord. 1973 § 1, 1982). 20.04.020 Conflict with other provisions. Portions of this chapter which are in conflict with other sections of the municipal code are intended to be exceptions to those sections and shall take precedence over such sections. (Ord. 3135 § 1, 2009; Ord. 3119 § 1, 2008; Ord. 1973 § 1, 1982). 20.04.025 Definitions. The following words and phrases, when used in this chapter, shall be construed as defined in this section: 16-13 « „ e A. 13-"Energy and water conservation" means reduction of energy and water use achieved by relying on changes to behavior. B. ~"Energy and water efficiency" means activities or programs that reduce energy and water use by upgrading to more efficient equipment or controls. C. "Evaluation" means a written evaluation of a facility's energy and water use from buildine systems, appliances and office equipment. D. "Greenhouse gas emission" means the direct or indirect emission of one or more of the gases identified by the Intergovernmental Panel on Climate Change and/or the State of California. E. "Nonrenewable" means an energy resource such as, but not limited to, fossil fuels that is not replaced or is replaced only very slowly by natural processes. F. "Renewable" means an energy resource such as, but not limited to, wind and solar that is replaced by natural resources. G. "Solar photovoltaic" means a method of capturing energy from sunlight and converting it to electricity. H. "Solar water heater" means a method of heating domestic water by allowing solaz energy collection devices to transfer solaz heat energy to water. (Ord. 3135 § 1, 2009; Ord. 3119 § 1, 2008). 20.04.030 Solar water heater preplumbing. All new residential units shall include at least the plumbing specifically designed to encourage the later installation of a system which utilizes solar energy as the primary means of heating domestic potable water. The purpose of this section is to facilitate the safe, cost- effective installation of residential solaz water heating systems, while removing structural and regulatory barriers. No building permit shall be issued unless the plumbing required pursuant to this section and the Chula Vista Solaz Water Heater Pre-Plumbing Installation Requirements are incorporated into the approved building plans. Exception: The provisions of this section can be modified or waived when it can be satisfactorily demonstrated in writing to the City Manager, or designee, that potential pre- existing constraints affecting the use of solaz hot water heating cannot be reasonably overcome. (Ord. 3135 § 1, 2009; Ord. 3119 § 1, 2008; Ord. 1973 § 1, 1982). 20.04.040 Solar photovoltaic prewiring. All new residential units shall include at least the electrical conduit specifically designed to encourage the later installation of a system that utilizes solar photovoltaic or other renewable energy resource as a means of generating electricity. The purpose of this section is to facilitate the safe, cost-effective installation of renewable energy systems as residents' primary electricity source, while removing structural and regulatory barriers. No building permit shall be issued unless the requirements of this section and the Chula Vista Photovoltaic Pre-Wiring Installation Requirements are incorporated into the approved building plans. Exception: The provisions of this section can be modified or waived when it can be satisfactorily demonstrated in writing to the City Manager, or designee, that potential pre- existing constraints affecting the use of solaz photovoltaic or other renewable energy systems cannot be reasonably overcome. (Ord. 3135 § 1, 2009). 16-14 20.04.050 Business resource and energy evaluations assessments. All commercial and industrial businesses in the City of Chula Vista are required eneexraged to participate in a free resource and energy evaluation eaer~; ~assessrneat of their facilities to help them identify energy and water efficiency and conservation opportunities that potentially reduce participants' recurring energy utility costs and corresponding greenhouse gas emissions. Evaluations ~~e=~ are wed required when a new business license is issued ee and not more frequently than once every three years or less frequently than once every five years for arr renewed business existing-license. D~~Businesses are required ensetu=aged to cooperate with City staff or their delegate(s) by providing: (A) a date and time fox the evaluation aases~ae~n convenient for the business, (B) access to their facilities for the evaluation ~~m~ nt during their regular business hours, (C) authorization to review their historical energy and water usage, and (D) a signature and-title e€-att by the business's on-site representative °^°~'•~n= ~====an=aver on a completed evaluation .n form acknowledging that the business has received a completed evaluation .~ and relevant information about voluntary energy and water efficiency improvement opportunities. Businesses are not required to complete evaluations for facility areas beyond their operational control The intent of this ordinance is to provide businesses with a no-cost evaluation. T''^ ^~~°~°" ^F " ~"''`' `°"""` 1- 1 1. '1,7' "..+ «°«1....:~.. tl,° .,°°.7 F..« :~.7:..:.7....1 a,...."..+ ,. °..+~ a r A. Evaluation :n Notification Process. T'~ ~~'- -~ °°~'' " ~^''^° `^ °as?' . , F -'"*~«^'~••°~~°°° For existing licensed businesses the City will send a written notice not more than once every three years through the annual business license renewal package distributed by January l57 The notice will inform businesses of their evaluation requirement for that calendar year and provide information allowing them to schedule an appointment at their convenience Businesses will be required to schedule an evaluation for the calendar year by March 1st For newly licensed businesses the City will send a written notification about their evaluation requirement for that calendar year and shall provide them with the contact information needed to schedule an evaluation assessment within 60 days. If an existing or newly licensed business does not set an appointment during the initial 60-day scheduling period the City shall set an evaluation date and time for the business during their regular business hours If desired the business may reschedule the evaluation appointment for some time during that calendar year or the next 90 days whichever is greater. B. Evaluation ~aa===e=R Deliverables. The evaluation a~s~n findings, provided to the participating business on a form established by the City Manager in conjunction with the local utility and business representatives, may include a chart of their historical energy and water consumption, F r «'"7 "`' ^^°' ` ~^~ identified energy conservation and efficiency opportunities,_potential utility cost savings and an estimate of the corresponding greenhouse gas emission reductions. The assessment may also review water ion alternative transportation and other sustainable practices which the business could implement and/or promote to its employees and customers and an estimate of the resulting greenhouse gas emission reductions. The City may also provide information and 16-15 assistance reeardin¢ federal, state and local rebate proerams for efficiency retrofits and low- cost financing options to , , r „+n n+n •:+>, ..,,. ,. ~r" ^„„11 f,., l..l„ «el..,+.. .,„L:.,e, n„,1 L.- ..., 1+:11 F.„n„,.:„,. F «.„n +,. Fn,.a:+n+e Q,~, ., A,.„L: F 1. rr . a :Ae.+4: F, ,,,] ,.„e.,... „FF . ..: ........ :......«,..,~.,., ,,„+n ,.«A help reduce the business's time and cost of implementing the voluntazy measures. The City may also provide contact information for the local utilityies' account and program staff and utility-approved Chula Vista contractors that may provide services identified in the evaluation *1.n4 .„n.. r....«l.e_ ..,.n:n+ +,.,. ,.,,n:„,nn :„ e~, :hn ..Ln -~ "O 'OJ ' C. Enforcement. Businesses, which do not respond to the appointment notification process and provide access for the on-site evaluation, shall be sent afollow-up notice with a 30-day opportunity to cure. Unresponsive businesses will be sent a second 30-day reminder notice Businesses, which do not cooperate after the second reminder notice, will be assessed a fine that shall be set in the Master Fee Schedule. The fine will be collectable on the followine year's business license and incur a 6% interest rate per annum. Staff may administratively reduce or eliminate any portion of the fine for any business that completes the process. Failure to participate in the assessment process shall not result in the suspension of a business license or permit to occupy the business premises. Anv fines collected through ordinance enforcement will be appropriated to a Business Conservation Fund which will be used to purchase devices to distribute to businesses to help them voluntarily reduce their enerev and water costs. D.E Exemptions£~e-krsiens. Home offices, mobile businesses and other business entities that do not have a commercial utility eas or electric meter aze exempt. Businesses occupyin¢ a facility which has had a completed evaluation within at least 3-veazs through the City's program or through a similar enerev audit program (SDG&E or other City-recognized program) will be exempt including facilities having multiple business licenses. The Citv will also provide an exemption to businesses that participate in a greenhouse eas emissions reporting program (Federal Environmental Protection Agency, The Climate Registry, or other City-recognized program) or possess a current City of Chula Vista CLEAN Business certification. Finally, the Citv shall Brant any business with an exemption of at least 3-yeazs when occupying newly-constructed or remodeled facilities that have an approved Title-24 Energy Efficiency Report with its building plans. These exemptions do not preclude any licensed business with a commercial electrical or gas meter from requesting a free resource and energy evaluation at the business's sole discretion. 4ecLLu°° °„° ° eF4:,.:e„n..:° n,.-..-..,...'° . , ...... .....~,....~~..~ ........i., ...b ............... ...~.. ~i,...... ......... ~.,..., ..v ° o e ~ . (Ord. 3135 § 1, 2009; Ord. 3119 § 1, 2008). SECTION II. That the Cross Reference section of Chapter 5.02 of the Chula Vista Municipal Code is hereby amended to read as follows: 16-16 Chapter 5.02 BUSINESS LICENSES GENERALLY CROSS REFERENCE: Business Resource and Energy Evaluations ~~ss~:,~a~, see Ch. 20.04 CVMC. Charitable Solicitations, see Ch. 9.21 CVMC. Obstructing Streets, see Ch. 12.12 CVMC. Building and Construction Permits, see CVMC Title I5. SECTION III. EFFECTIVE DATE This Ordinance will take effect 30 days after its final adoption. Presented by: Michael Meacham Director of Conservation & Env. Serv. Approved as to form by: __ ~ .. U lit ~ ~~Yt I~%he~fel~,_ ~'~~Ey A~forney 16-17 ORDINANCE NO. AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 20.04 OF THE CHULA VISTA MUNICIPAL CODE TO REQUIRE NO-COST RESOURCE AND ENERGY EVALUATIONS AS PART OF THE BUSINESS LICENSE PROCESS AND AMENDING THE CROSS REFERENCE IN CHAPTER 5.02 The City Council of the City of Chula Vista does ordain as follows: SECTION I. That Chapter 20.04 of the Chula Vista Municipal Code is hereby amended to read as follows: Chapter 20.04 ENERGY & WATER CONSERVATION REGULATIONS Sections: 20.04.010 20.04.020 20.04.025 20.04.030 20.04.040 20.04.050 Intent and purpose of provisions. Conflict with other provisions. Definitions. Solar water heater preplumbing. Solaz photovoltaic prewiring. Business resource and energy evaluations CROSS REFERENCE: Business Licenses Generally, see Ch. 5.02 CVMC. Electrical Code and Regulations, see Ch. 15.24 CVMC. Plumbing Code, see Ch. 15.28 CVMC. 20.04.010 Intent and purpose of provisions. The conservation of energy and natural resources including water, air quality and open space has been determined to be a legitimate and worthy function of the City. The provisions of this chapter are intended to decrease dependence upon fossil fuels and other nonrenewable energy sources that contribute to the City's greenhouse gas emissions by encouraging and, in some instances, requiring best management practices including the installation of devices, structures or materials for the efficient generation, distribution and use of energy and water on certain structures within the City. (Ord. 3135 § 1, 2009; Ord. 3119 § 1, 2008; Ord. 1973 § 1, 1982). 20.04.020 Conflict with other provisions. Portions of this chapter which are in conflict with other sections of the municipal code are intended to be exceptions to those sections and shall take precedence over such sections. (Ord. 3135 § 1, 2009; Ord. 3119 § 1, 2008; Ord. 1973 § 1, 1982). 20.04.025 Definitions. The following words and phrases, when used in this chapter, shall be construed as defined in this section: 16-18 A. "Energy and water conservation" means reduction of energy and water use achieved by relying on changes to behavior. B. "Energy and water efficiency" means activities or programs that reduce energy and water use by upgrading to more efficient equipment or controls. C. "Evaluation" means a written evaluation of a facility's energy and water use from building systems, appliances and office equipment. D. "Greenhouse gas emission" means the direct or indirect emission of one or more of the gases identified by the Intergovernmental Panel on Climate Change and/or the State of California. E. "Nonrenewable" means an energy resource such as, but not limited to, fossil fuels that is not replaced or is replaced only very slowly by natural processes. F. "Renewable" means an energy resource such as, but not limited to, wind and solaz that is replaced by natural resources. G. "Solar photovoltaic" means a method of capturing energy from sunlight and converting it to electricity. H. "Solar water heater" means a method of heating domestic water by allowing solaz energy collection devices to transfer solaz heat energy to water. (Ord. 3135 § 1, 2009; Ord. 3119 § 1, 2008). 20.04.030 Solar water heater preplumbing. All new residential units shall include at least the plumbing specifically designed to encourage the later installation of a system which utilizes solar energy as the primazy means of heating domestic potable water. The purpose of this section is to facilitate the safe, cost- effective installation of residential solar waterheating systems, while removing structural and regulatory barriers. No building permit shall be issued unless the plumbing required pursuant to this section and the Chula Vista Solar Water Heater Pre-Plumbing Installation Requirements are incorporated into the approved building plans. Exception: The provisions of this section can be modified or waived when it can be satisfactorily demonstrated in writing to the City Manager, or designee, that potential pre- existing constraints affecting the use of solar hot water heating cannot be reasonably overcome. (Ord. 3135 § 1, 2009; Ord. 3119 § 1, 2008; Ord. 1973 § 1, 1982). 20.04.040 Solar photovoltaic prewiring. All new residential units shall include at least the electrical conduit specifically designed to encourage the later installation of a system that utilizes solaz photovoltaic or other renewable energy resource as a means of generating electricity. The purpose of this section is to facilitate the safe, cost-effective installation of renewable energy systems as residents' primary electricity source, while removing structural and regulatory barriers. No building permit shall be issued unless the requirements of this section and the Chula Vista Photovoltaic Pre-Wiring Installation Requirements are incorporated into the approved building plans. Exception: The provisions of this section can be modified or waived when it can be satisfactorily demonstrated in writing to the City Manager, or designee, that potential pre- existing constraints affecting the use of solar photovoltaic or other renewable energy systems cannot be reasonably overcome. (Ord. 3135 § 1, 2009). 20.04.050 Business resource and energy evaluations. 16-19 All commercial and industrial businesses in the City of Chula Vista aze required to participate in a free resource and energy evaluation of their facilities to help them identify energy and water efficiency and conservation opportunities that potentially reduce participants' recurring utility costs and corresponding greenhouse gas emissions. Evaluations aze required when a new business license is issued and not more frequently than once every three yeazs or less frequently than once every five yeazs for a renewed business license. Businesses are required to cooperate with City staff or their delegate(s) by providing: (A) a date and time for the evaluation convenient for the business, (B) access to their facilities for the evaluation during their regular business hours, (C) authorization to review their historical energy and water usage, and (D) a signature by the business's on-site representative on a completed evaluation form acknowledging that the business has received a completed evaluation and relevant information about voluntary energy and water efficiency improvement opportunities. Businesses are not required to complete evaluations for facility areas beyond their operational control. The intent of this ordinance is to provide businesses with a no-cost evaluation. A. Evaluation Notification Process. For existing licensed businesses, the City will send a written notice not more than once every three years through the annual business license renewal package distributed by Januazy 15`. The notice will inform businesses of their evaluation requirement for that calendar year and provide information allowing them to schedule an appointment at their convenience. Businesses will be required to schedule an evaluation for the calendaz year by March 1st. For newly licensed businesses, the City will send a written notification about their evaluation requirement for that calendaz year and shall provide them with the contact information needed to schedule an evaluation assessment within 60 days. If an existing or newly licensed business does not set an appointment during the initial 60-day scheduling period, the City shall set an evaluation date and time for the business during their regular business hours. If desired, the business may reschedule the evaluation appointment for some time during that calendar yeaz or the next 90 days whichever is greater. B. Evaluation Deliverables. The evaluation findings, provided to the participating business on a form established by the City Manager in conjunction with the local utility and business representatives, may include a chart of their historical energy and water consumption, identified conservation and efficiency opportunities, potential utility cost savings and an estimate of the corresponding greenhouse gas emission reductions. The assessment may also review alternative transportation and other sustainable practices which the business could implement and/or promote to its employees and customers and an estimate of the resulting greenhouse gas emission reductions. The City may also provide information and assistance regarding federal, state and local rebate programs for efficiency retrofits and low-cost financing options to help reduce the business's time and cost of implementing the voluntary measures. The City may also provide contact information for the local utilities' account and program staff and utility-approved Chula Vista contractors that may provide services identified in the evaluation. C. Enforcement. Businesses, which do not respond to the appointment notification process and provide access for the on-site evaluation, shall be sent afollow-up notice with a 30-day opportunity to cure. Unresponsive businesses will be sent a second 30-day reminder notice. Businesses, which do not cooperate after the second reminder notice, will be assessed a fine that shall be set in the Master Fee Schedule. The fine will be collectable on the following year's business license and incur a 6% interest rate per annum. Staff may administratively reduce or eliminate any portion of the fine fox any business that completes the process. Failure 16-20 to participate in the assessment process shall not result in the suspension of a business license or permit to occupy the business premises. Any fines collected through ordinance enforcement will be appropriated to a Business Conservation Fund which will be used to purchase devices to distribute to businesses to help them voluntarily reduce their energy and water costs. D. Exemptions. Home offices, mobile businesses and other business entities that do not have a commercial utility gas or electric meter aze exempt. Businesses occupying a facility which has had a completed evaluation within at least 3-years through the City's program or through a similar energy audit program (SDG&E or other City-recognized program) will be exempt including facilities having multiple business licenses. The City will also provide an exemption to businesses that participate in a greenhouse gas emissions reporting program (Federal Environmental Protection Agency, The Climate Registry, or other City-recognized program) or possess a current City of Chula Vista CLEAN Business certification. Finally, the City shall grant any business with an exemption of at least 3-years when occupying newly- constructed or remodeled facilities that have an approved Title-24 Energy Efficiency Report with its building plans. These exemptions do not preclude any licensed business with a commercial electrical or gas meter from requesting a free resource and energy evaluation at the business's sole discretion. SECTION II. That the Cross Reference section of Chapter 5.02 of the Chula Vista Municipal Code is hereby amended to read as follows: Chapter 5.02 BUSINESS LICENSES GENERALLY CROSS REFERENCE: Business Resource and Energy Evaluations, see Ch. 20.04 CVMC. Charitable Solicitations, see Ch. 9.21 CVMC. Obstructing Streets, see Ch. 12.12 CVMC. Building and Construction Permits, see CVMC Title 15. SECTION III. EFFECTIVE DATE This Ordinance will take effect 30 days after its final adoption. Presented by: Michael Meacham Director of Conservation & Env. Serv Approved as to form by: `r ~,, art-Mies eld ity rney 16-21 RESOLUTION NO. 2009- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADDING SECTION A.1.D TO CHAPTER N OF THE MASTER FEE SCHEDULE TO INCLUDE A FINE FOR BUSINESSES NOT COMPLYING WITH THE FREE RESOURCE & ENERGY EVALUATION REQUIREMENT OF $15 OR 5% OF BUSINESS LICENSE FEE (WHICHEVER IS GREATER) WHEREAS, as part of the climate protection measures which were approved by City Council to help reduce Chula Vista's citywide greenhouse gas or "carbon" emissions, City staff integrated no-cost energy and water evaluations (known as the Free Resource & Energy Business Evaluation or FREBE program) into the business licensing process; and WHEREAS, on July 10, 2008 the City Council approved the implementation plans for seven climate protection measures which focused on lowering energy and water consumption, installing renewable energy systems, promoting alternative fuel vehicles, and designing pedestrian and transit-friendly communities; and WHEREAS, staff developed an ordinance and implemented a voluntary program that encouraged businesses through the annual business licensing process to participate in an energy and water evaluation of their facilities; and WHEREAS, the no-cost program, recently renamed the Free Resource & Energy Business Evaluation or FREBE, assists businesses in lowering their monthly utility costs and consequently their contribution to greenhouse gas emissions and climate change impacts; and WHEREAS, the on-site evaluations, which are performed by trained City staff in about 30 minutes, may include a review of a building's systems (i.e. lighting, cooling and heating), envelope (i.e. exterior windows, doors and insulation), office equipment, appliances, operational procedures, and utility bills; and WHEREAS, with the evaluation's results, detailed strategies can be recommended to the business to help reduce their energy and water consumption through voluntary efficiency upgrades and/or operational changes; and WHEREAS, evaluations are also a key step in identifying available incentives, rebates, and low cost financing options that will reduce any potential upfront costs for the business to implement the established cost-saving improvements; and WHEREAS, as part of the climate protection measures' 12-month progress report, staff reported that linking a voluntary energy and water evaluation program to the 16-22 Resolution No. 2007- Page 2 business license process resulted in less than 1% participation of eligible businesses (29 of 4,100); and WHEREAS, because of the low participation levels, staff had to resort to on-site solicitations of 432 businesses to increase participation creating significantly higher implementation costs and decreasing the program's cost effectiveness; and WHEREAS, over 311 businesses participated in the program between January and July 2009 with 71% of participants implementing one or more of the recommendations from the free evaluations; and WHEREAS, of those businesses which implemented at least one recommendation, approximately one-third experienced immediate cost savings on their monthly utility bills; and WHEREAS, the proposed ordinance would codify the new no-cost business energy and water evaluation requirement by amending Chula Vista Municipal Code Chapter 20.04 (Energy Conservation); and WHEREAS, businesses occupying a physical storefront or office on a commercial utility meter would be required to participate in the program when a new business license is issued or once every 3-5 years for a renewed business license; and WHEREAS, businesses could request more frequent evaluations from the City at their sole discretion; and WHEREAS, the new ordinance would not require businesses to implement any of the identified energy or water efficiency opportunities and would not require businesses to complete evaluations for facility areas beyond their operational control (ex. whole- building systems operated and maintained by a Property Manager/Landlord); and WHEREAS, businesses refusing to participate in the program would be assessed a fine of $15 or 5% of business license costs (whichever is greater) which would be established in the Master Fee Schedule and would be collected on the following year's business license; and WHEREAS, any collected fees would be used to purchase and distribute energy and water-saving devices (such as CFLs and smart power strips) to participating businesses; and WHEREAS, staff is also working to provide streamlined implementation to ensure that the new requirement does not create an impediment to the participating business's normal operations; and 16-23 Resolution No. 2007- Page 3 WHEREAS, businesses will be able to easily schedule an evaluation by selecting a preferred date and time on their business license form, through an on-line appointment calendar, or by calling the City's bilingual staff in the Department of Conservation & Environmental Services; and WHEREAS, if businesses do not schedule an appointment within 60 days of receiving a license, staff will set a tentative appointment during the business's regular business hours which can be confirmed or rescheduled at the business's discretion; and WHEREAS, if approved, the new requirement would begin in the 2010 business license period. Staff will provide updates on the program's implementation -including number of completed evaluations, number of potential energy/water saving opportunities identified, number of energy-water saving devices distributed, and number of unresponsive businesses -through the biannual climate measures' progress reports to City Council; and WHEREAS, staff will also continue to work with business and community stakeholder groups to refine the program's marketing and service delivery as it is launched and managed; and WHEREAS, staff recommends amending Chapter IV of the Master Fee Schedule to add section A.l.d., as follows: "Business Resource and Energy Evaluation -Non-compliance Fine $15 or 5% of business license fee (whichever is greater)." NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it hereby amends the Master Fee Schedule to include a fine for businesses not complying with the Free Resource & Energy Evaluation requirement of $15 or 5% of business license fee (whichever is greater). Presented by Michael T. Meacham Director, Conservation & Env. Services Approved as to form by -. /~ -, ~--~:~•- Bart resfe~ ~j `- ~~ity'Attorney 16-24 .1dcU+ior.4-( In.f /-fem I~ 1I!I7!ry"/ ~.,~ - ... .. ,:ift~. ~ OCAA @ SAN DIEGO COUNTY APARTMENT ASSOCIATION Fax. .' . ~ , ~- , ,_. . . . . ".. . To, Donna Norris From, Michelle Slingerland Chula Vista City Clerk Fax: 619-585.'5774 Pages: :3 including cover Phone' Date, 11/17/2009 Roo; 11/17/09 City Council Agenda Item 16 ee, o Urgent o For Review o Please Comment 0 Please Reply o Please Roocycl" . Comments: Good afternoon, Please accept on behalf of the San Diego County Apartment Assooialion (SDCAA) the correspondence to follow regarding tOday's City Council Agenda Item 16. Thank you, Michelle Slingerland Public Affairs Manager San Diego County Apartment Assooiation (SDCAA) 8788 Balboa Ave" Ste. B San Diego. CA 92123 (858) 751-2214 Direct (858) 278-8071 Fax www.sdcaa.com Michelle Slingerland Public Affairs Manager San Diego County Apartment A..ocia~on QQ ~ -<-< -<-< ::0 00 i!9 m r--n mo <: n ::0::<: ~ fTI ::0:<::: ~ V)r- < cl.> -0 fTI .1..::: W D "T't(:0 C)~--, N r....:::N ~ Thank you~ This fax end any flies transmitted with It are confidential and intended solely for the us,e of the Individual or entity to whom they are addressed. If you have received thiQ fax in error please notify the $9nd8r. This message contains confidential information ana Is intended only for the indiVidual named. If you are not thE named addresloiee )IOU should not disseminate, dIstribute or copy this fax. I=l'lease notify the 6ender imme:diately by phone or fax if you have received this fax by mislaKe and destroy this fax.. If you are not the intendoftd redpient you are notifiGd that dlsdosing, copying, distributing or taking any action in relial"lC8 on the contents 01 this Information ill lltrictly prohIbited. I(you would like to stop receiving faxes from the San Diego County Apartment Association, please call 888.762.7313, fax request to 888.871.5229 or e-mail info(a)sdcaa.com with the word remove from fax list in the subject line. Please include your name. and fax number. 100/10 39\!d s TL0ssasss LT:ST 500GILT/TT ~.~ ..: ~OCAA SAN DIEGO COUNTY APARTMENT ASSOClATIO~ RECEIVED '09 NOV 17 P3:27 Nov. 17,2009 CITY OF CHULA ViSit. CITY CLERK'S OFFiCe Mayor Cheryl Cox and Council Members City of Chula Vista 276 Fourth Avenue ChuJa Vista, CA 91910 RE: Free Resource & Energy Business Evaluation (FREBE) Program Nov. 17, 2009 City Council Agenda, Item 16 Dear Mayor Cox and Honorable Council Members: I am writing on behalf of the members of the San Diego County Apartment Association (SDCAA) in regard to Item 16 of tOday's City Council meeting agenda, which, if approved, would amend the City's Municipal Code to require businesses to participate in the City's FREBE program or face fines that are tied to the renewal of their business licenses. City staff has stated that the impetus for moving from a voluntary to a mandatory program is to increase participation, because only 29 out of 4,100 businesses voluntarily responded to the evaluation solicitations that were part of their business license renewal. The other voluntary method being provided by city staff - on-site solicitations - has had significantly higher participation (282 evaluations out of 432 solicitations as of Oct. 19, 2009), but is a more labor-intensive and costly way of providing the evaluations. The SDCAA has followed this effort since May 2008, when it first provided feedback about the city's seven council-approved conservation measures, which included business energy evaluations. The SDCAA is concerned that mandating participation in what is now known as the FRESE program would have unintended negative impacts. Specifically: . Program Efficiency & Effectiveness When Tied to Business licenses One of the existing challenges to the program is determining the appropriate person to receive the energy efficiency evaluation. Presumably many business license holders in the city do not necessarily have control of the building out of which their businesses operate. and therefore an energy efficiency evaluation would be of no benefit to them. For example, a commercial space leased to multiple tenants, or a rental housing community operated by a fee management company, but owned by an independent party. Ail have business licenses, but may not have the ability to make energy efficiency retrofits to their buildings, Conversations with Chula Vista's Department of Conservation & Environmental Services staff revealed that even under mandatory participation, these situations would have to be handled on a case-bv-case basis in a verv similar fashion to how staff currentlv conducts the on-site evaluations. Staff must put forth a great deal of effort to determine the appropriate person or entity with whom to provide the evaluation and what particular energy efficiency recommendations should be addressed with each. 8788 Balboa Ave., Ste. B I San Diego 1 CA 192123 Phone: (858) 278-8070 i Fax: (858) 278-8071 www.sdcaa.com EO/I:O 39\!d s TL088LG858 L1:51 5001:/L1/11 Add to that the job of maintaining those records for future evaluations and the very frequent tumover of commercial tenants and property managers or changes in real estate ownership, and much of this work would have to be performed all over again potentially every three years (the current proposed time frame for re-evaluations). What's more, exemptions have been proposed that would require significant additional staff time to process, verify and record. So it would seem that a mandatory svstem micht force increased oarticioation, but wouid not make the orooram any more efficient. which would therefore onlv increase the amount of city resources alreadv beino soent. Anv orooram aimed at makino business more efficient should itself be oDe rated efficientlv. . Program Costs and Funding Currently, the city is utilizing monies from the Public Goods Charge (PGC) paid for by SDG&E ratepayers to fund the Business Energy & Water Evaluations program. Though the SDCAA was informed that there is no current plan to pursue additional fees to pay for the program, the 2008 Chula Vista Climate Change Working Group Implementation Plan did include a provision that a Fee Authority structure could be recommended should grant funding be insufficient. There is the very real potential, as J explained above, for the costs to administer this program to increase. Should the PGC fee not be sufficient to pay for the program. Chula Vista businesses may be asked to help pay. At some ooint any saYinQs achieved from reduced enerQV costs mav be nullified bY the cost to helo Day for the DrOQram. This would be counter to the program's goal of providing a benefit to Chula Vista business owners. Alternatives to Mandatory Participation: "Enhanced Voluntary" Collaborations Today, Department of Conservation and Environmental Services staff will present to you an "Enhanced Voluntary" version of the FREBE program, in which the city could partner with business and community organizations such as the SDCAA, Chula Vista Chamber of Commerce, South County Economic Development Council and others to augment its outreach efforts to Chula Vista businesses in order to increase voluntary participation. Bv utilizina these oroanizations' existina resources and contacts to market the oroaram in addition to the citv's current outreach efforts. the city can better directlv convev the benefits of the oroaram to the aooropriate business reoresentatives without havina the unintended neaative impacts of mandatorv participation. Through such strategic collaborations, the FRESE program can achieve efficiency in both its objective and operation. Sincerely, 4/2=- Alan Pentico SDCAA Director of Public Affairs cc: Michaei Meacham, Director, Department of Conservation & Environmental Services Donna Norris, CMC, City Clerk Lisa Cohen, CEO, Chula Vista Chamber of Commerce Cindy Gompper-Graves, CEO, South County Economic Development Council E0/E0 39\1d s TL0SSa:SSS LT:ST 50061LT/TT