Loading...
HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 11/15/2011 City of Glendale 6G Council Sustainability Committee LENDfE Minutes November 15, 2011 10:30 a.m. to 11:30 a.m. Conference Room B-2 Council Sustainability Committee Members: Present were Vice Mayor/Chairperson Steve Frate (Sahuaro District), Councilmember Yvonne Knaack (Barrel District) City Staff Members: Present were Larry Broyles, Marilyn Clark, Brian Friedman, Jon Froke, Stuart Kent, James Mago, Bob Manginell, Deborah Mazoyer I. Approval of the Minutes Vice Mayor/Chairperson Frate entertained a motion to approve the minutes of the September 20, 2011 meeting. Councilmember Knaack made the motion to approve. The motion was seconded by Vice Mayor/Chairperson Frate, and the minutes were approved as written. II. Economic Development Presentation Brian Friedman, Economic Development Director made the opening remarks and introduced James Mago, Economic Development Administrator who presented this agenda item. The Economic Development presentation was formatted to provide an educational overview of how renewable energy and sustainable initiatives will help shape Glendale's business strategy in the coming years. The Economic Development mission and objectives are structured to achieve Council's goal of "one community with quality economic development." The mission is to make a positive contribution to Glendale's economic base. The objectives include direct programs that are designed to attract, assist, retain, and expand businesses in Glendale, creating quality jobs and investments that will increase Glendale's tax base, improve land values, and enhance city vitality. Minutes— Council Sustainability Committee Meeting November 15, 2011 Page 2 The four pillars creating Economic Development's foundation are business attraction, business assistance, business retention and expansion, and redevelopment. Staff continuously focuses on strengthening these pillars for the betterment of the city. Economic Development targets industries such as healthcare, medical, technology, renewable energy, hospitality, education, advanced business services, aviation, defense, and aerospace. The targeted industry list is designed to direct the city's efforts to attract, retain, or expand high-wage jobs that include benefits. Staff pays close attention to macro and micro economic trends that shed light on both growing and contracting industry sectors. More importantly, staff operates with a thorough understanding of Glendale's assets positioning them to focus and target potential prospects. The year 2008 marked the crash of the construction industry in the state of Arizona. The past three years have proved difficult overall in the area of economic job creation. On the up side, Arizona has seen three industry sectors buck the trend and provide positive job creation. The medical industry, the education industry, and the renewable energy industry sectors have provided much needed jobs during these difficult economic times and are forecasted to be the state's leading growth sectors moving forward. The Arizona workforce predicts the state will grow by 158,000 jobs through 2018, which is an overall increase of 5.5%. Medical occupations will account for over 40,000 of those jobs with a growth rate of over 20%. The education industry is poised to grow somewhere around 10% which will add 15,000 new jobs to the workforce. The renewable energy sector has made huge strides in Arizona with solar being the predominant industry. Renewable energy, solar power, and sustainability create green jobs. Economic Development wants to bring green jobs to Glendale so the city can benefit from the tremendous investments taking place in this growth industry sector. "Green" is the overall encompassing term used to define jobs in renewable energy, clean technology, green building, and related industries. "Going Green" in Glendale has produced positive effects in the city, with the quantifiable result equaling more jobs and better investments. In 2010, the solar energy industry in the United States grew 67% compared to an overall US Gross Domestic Product Growth of just 3%, with installations valued at $6 billion compared to $3.6 billion in 2009. That trend continued in 2011, with new photovoltaic installations in the second quarter, up 69% compared to the second quarter of 2010, and up 17% compared to the first quarter of 2011. The growth figures may be attributed to prices on photovoltaic installations dropping by 30% since the beginning of 2010, which made solar more affordable for homeowners and businesses. Minutes— Council Sustainability Committee Meeting November 15, 2011 Page 3 By August 2011, over 100,000 people in the US worked in the solar industry, more than doubling the estimated 2009 industry employment figures. The majority of these jobs are based in small businesses, with a few jobs based in major corporations. In total, approximately 5,000 companies are engaged in the US solar industry. According to the Solar Energy Industry Association (SEIA), the America solar industry employs more than 100,000 people throughout the United States. The industry is strong and very competitive. It has introduced new technological innovation at reduced costs, which is good for consumers. In 2010, the US was a net exporter of$2 billion in solar products. Thus far, the solar industry has been able keep up with America's energy demand. Solar power in the US now exceeds 3,100 megawatts, enough to power more than 630,000 American homes. One-megawatt powers roughly 200 homes, with the average household consuming about five kilowatts. Solar power benefits include clean energy, enhanced energy security, and diversification of America's national energy portfolio. Arizona has become a leader in the emerging solar industry for many reasons. The state has demonstrated a commitment to clean energy by creating a renewable portfolio standard. The standard helps create demand and develops the market. By the year 2025, 15% of electricity from Arizona public utilities must come from renewable sources. Arizona ranks third in country with 4,786 existing solar jobs, Colorado ranks second with 6,186 solar jobs, while California tops the list with 25,575 solar jobs. In the semi-conductor industry, Arizona totals 18,900 jobs and 8,700 jobs in the aerospace /defense manufacturing industry. The state has demonstrated a willingness to partner and invest in renewable energy by passing the Renewable Energy Tax Incentive Program. Qualified renewable energy companies can earn refundable income tax credits and real/personal property tax reductions. Companies can qualify with headquarters and/or manufacturing operations moving into the state. This incentive has vaulted Arizona to the top of the minds of site selectors. Business Facilities Magazine recently ranked Arizona the number one state in the nation for the renewable energy business sector. California was ranked the world's fourth largest in the renewable energy market. There are many inherent advantages for Arizona in the solar industry. With an average of 321 days of sunshine a year, there is an abundance of sun that works to our advantage. Minutes — Council Sustainability Committee Meeting November 15, 2011 Page 4 Arizona is the first state in the country to require utilities to generate a portion of their power with solar energy. Twenty-four states have followed in our footsteps. Arizona is the second fastest growing state offering a high performance workforce that is diverse, skilled, and growing faster than any other state. Arizona State University (ASU) is one of four schools to receive two recent Department of Energy awards totaling $1.7 million. They have joined forces with the TUV Rheinland photovoltaic testing laboratory, the leading provider of safety testing, performance testing, and market certification for the photovoltaic marketplace. Arizona is also home to the world's first school of sustainability, the Global Institute of Sustainability, which is the hub of ASU's sustainability initiatives. Another great asset is the Arizona Research Institute for Solar Energy at the University of Arizona. This is a global institute that offers innovative solar energy solutions. The Arizona region has experienced tremendous success growing in the renewable energy industry. Since October 2010, the Greater Phoenix Economic Council has located twelve companies in the state, creating 6,385 jobs. The reported investment totals about $1.83 billion. Leading manufacturing companies such as Suntech, the world's largest photovoltaic panel manufacturer, and Power-One the country's largest inverter manufacturer, are now located in the Phoenix Metropolitan area. First Solar, a leading solar-power company announced their decision to build a large factory in Mesa, creating 4,800 jobs. This is a significant step in Arizona's efforts to be part of the growing solar energy industry. Emerging industries contain plenty of risk as well, and not every company will be successful. Solyndra in Fremont, California and Stirling Energy in Scottsdale, Arizona recently declared bankruptcy. Glendale was affected when Stirling's supplier, Linamar Solar, decided not to manufacture power conversion units at their Glendale facility. Fortunately for Glendale, Linamar Solar's parent organization, Linamar of Canada, honored their Glendale lease by moving another subsidiary, Skyjack into the city. Skyjack is a leading manufacturer of hydraulic lifts. Glendale and Metropolitan Phoenix are dedicated in their pursuit of new renewable energy technologies. In honoring the city's commitment to sustainability, Glendale attended the past three Solar Power International trade shows. Glendale also attended the Greenbuild Conference, participated with the Sustainable Cities Network, the United States Green Building Council, the Urban Land Institute, and other sustainable industry entities and events. Glendale also meets regularly with businesses throughout the renewable industry supply chain. Minutes— Council Sustainability Committee Meeting November 15, 2011 Page 5 Economic Development believes in the sustainability of this sustainability movement. The renewable energy industry will continue to develop more efficient solar, biomass, geothermal, wind, and other technologies and from this, new opportunities for the city will emerge. Over the past couple of years, Glendale has been a finalist for Centrosolar, a large German solar manufacturing company. The city has also seen Southwest Solar Technologies invest in Glendale land to develop experimental technology, and have landed an advanced manufacturing company with Linamar Solar. These projects have demonstrated the risk involved within a new industry, but more importantly, they shine a light on the potential these projects have to offer. The supply chain for solar and renewable energy is ripe with opportunity. Specific components in the chain include research and development, engineering, testing, materials, manufacturing, distribution, installation, maintenance, repair, generation, and headquarters, which is the holy grail of the supply chain. Glendale has a strong presence within the renewable energy sector. Existing businesses as well as residents are dedicated to the green industry. An example would be the Master Solar Supply in the Ocotillo District, located on Frier Drive. The company conducts energy audits for both commercial and residential properties. Their primary business is one of a solar integrator and installer. Another example would be Glendale Energy, LLC in the Yucca District at the landfill. The company converts methane to rid quality electricity. The Natural Lighting Company in the Cactus District on 53m Avenue is great example of a company thinking green long before sustainability became a hot topic. For over 18 years, the Natural Lighting Company has been designing, manufacturing, and installing day lighting systems. Total Transit / Discount Cab is reducing their carbon footprint by deploying the largest Prius fleet in the nation. Their motto is "Green Cabs for Blue Skies." A strong presence of commitment to solar exists in the Glendale community, and that commitment is growing. Since 2010, there have been 256 solar installations in the 85308 zip code area, totaling 1.6 megawatts in added capacity, exemplifying the commitment of the Glendale residents. Statistics show that 39% of all US energy is consumed by buildings, 29% is consumed by industry, and 32% by transportation. These statistics also reflect a heightened growth in the construction industry. At this point in time, green building is the primary vehicle keeping the construction industry afloat. Because green buildings use key resources like energy, water, materials, and land more efficiently, they will always outperform buildings that are built to code. Building green may cost a little more up front, but saves through lower operating costs over the life of the building. Minutes — Council Sustainability Committee Meeting November 15, 2011 Page 6 LEED buildings have higher property values, capitalization, occupancy, and lease rates. They reduce energy, operations, maintenance, water, and waste costs. From a city perspective, LEED buildings increase tax rolls, worker productivity, and decrease health costs. Typically, green commercial buildings deliver an average savings of 30% in energy, 35% in carbon emissions, 30% to 50% in water use, and 50% to 90% in waste. According to a green jobs study, prepared for the US Green Building Council, the recovery time on a LEED investment is usually four to five years. The initial cost of a LEED rated commercial building is approximately $4.01 per square foot As the green building industry grows, so does its impact on the economy. The study also revealed a significant increase in job creation. Over 229,000 green collar jobs were forecasted within this industry between the years 2009 and 2013. Green building has sustained the Arizona construction industry since the 2008 collapse. There are currently 204 LEED projects in Arizona totaling 18.2M square feet. In 2011 through September, there have been 50 completed projects totaling 7.9M square feet. Energy saving projects are becoming the norm as design and material costs have been greatly reduced. The West Olive Family Medicine Center, located at 5112 West Olive in the Barrel District, is trying to become the first LEED certified medical office in the Valley through the implementation of tenant improvements. Abrazo Medical Group recently opened a new family medical practice in the center that provides health care in an environmentally conscious surrounding. Renewable finishes such as recycled content for cabinetry and tile, and natural stone for countertops were selected to create a healthy interior environment for patients, physicians, and staff. In their pursuit of LEED certification, simple upgrades, such as using paint and countertops made from low emission organic compounds, and furniture from recycled materials helped them create a clean and healthier indoor environment. Flooring and wood doors were chosen for their low amount of potentially harmful chemicals. Lighting efficient, low-flow, and sensor controlled fixtures, plus HVAC efficiency, public transportation access, and community connectivity all played a role in helping the West Olive Family Medicine Center achieve their goal. Emerging industries need a qualified labor force to succeed. Economic Development collaborated with and identified many local sources to assist with green training initiatives. Staff facilitated training opportunities with partners such as Glendale Community College (GCC) who are willing to establish training programs for renewable energy businesses. Staff has also had direct conversations with GCC regarding customized training in the area of solar manufacturing and installation. Minutes — Council Sustainability Committee Meeting November 15, 2011 Page 7 The City of Glendale is directly involved with professional training as well. It has provided the host site for Green Plumbers certification and conducted training classes as part of a variety of regional environmental and green certifications. Each year, Environmental Resources offers free Green Living Classes to the public. Raymond S. Kellis High School made a huge step to promote sustainability on their campus in Glendale. They joined Green Clubs of America, a non-profit organization, that is sprouting up on high school campuses across the county to help students and teachers learn more about the world of sustainable and alternative energy. In 2010, ten solar panels were installed on the roof of the school to power their student-run store. In addition, two designer solar lighting systems with outlets were installed to provide free light and power to the school's outdoor assembly area. Western Maricopa Education Center (West-MEC) is developing an entire curriculum dedicated to solar technical work. USGBC and AZ Solar Energy are two other local resources researching for opportunities within this genre. In Summary, as Glendale, Arizona, and the nation continue to embrace sustainable practices, creating new industries, jobs, and investment, Economic Development will continue targeting renewable energy and sustainable businesses to secure its market share within this growing industry. Several discussions took place during and after the presentation, none of which required any follow up or action on the part of staff. Vice Mayor/ Chairperson Frate and Councilmember Knaack thanked Mr. Mago for his presentation. As this was an informational item, no motion or vote was called for by the committee. III. Staff Updates No Meeting in December— Council Winter Break ADJOURNMENT The meeting adjoined at approximately 11:30 a.m. NEXT MEETING: January 17, 2012 10:30 a.m. to 11:30 a.m. Conference Room B-2 Respectfully submitted, Marilyn Clark, Recording Secretary