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HomeMy WebLinkAboutJAZZ_RED_TEAM*NEW FILE* JAZZ -RED -TEAM n fu 0 r] SEMICONDUCTOR Retention Economic Development TEAM March 4, 2009 STATE OF MFORM BUSINESS, TRANSPORTATION & U"(1114CAUFORNIA HOUSING AGENCY tj EDISON' kr I :.141+ Aw..k"TIONU I LunPRR CALIFORNIA Business Investment I Services 00 El EMPLOYMENT TRAINING P A N E L ojr-400;1� 3 �gwrttpr a r h � u CILITI�µY�> Sempra Energy ORANGE COUNTY CMTC I a I 1 Workforce Investment Board s .; '.. h OC Community Services f a,�ilrRrJ 1AN Rasta "wa- I,ww • JAZZ RED TRAM ECONOMIC INCENTIVE PROPOSAL MARCH 4, 2009 Table of Contents 1. Summary of Jazz RED Team "Draft" Incentive Proposal (p. 2) 2. California Business Information Services (CALBIS) (p. 3) �1 3. Employment Training Panel (ETP) (p• 6) 4. Orange County Workforce Investment Board (OCWIB) (p. 7) 5. Orange County Sanitation District (OCSD) (p.11) • 6. Southern California Edison (SCE) (p.12) 7. SoCal Gas (p. 14) 8. Irvine Ranch Water District (IRWD) (p• 18) 9. California Manufacturing Technology Consultants (CMTC)(p. 22) 10. RED Team Contact List (p. 24) Disclaimer: All proposal items and dollar figures are based on RED Team members "best • guess" estimates prior to receiving feedback from Jazz to serve as a draft incentive proposal for discussion purposes only. These estimates and dollar figures are not considered binding until formal agreements and contracts have been arranged between each RED Team organization according to program criteria, laws and regulations. - 1 - • JAZZ RED TEAM ECONOMIC INCENTIVE PROPOSAL MARCH 4, 2009 Summary of Jazz RED Team "Draft" Incentive Proposal RED Team Organization Savings/Value to Jazz CALBIS ETP OCWIB OCSD SCE SOCAL GAS • IRWD CMTC Total: savings depends on investment $1,900,000 $484,450 to $584,850 $250,000+ annually annual savings varies by program up to $2,150,000 $35,000 annually $28,000+process improvements From $2,500,000 to Disclaimer: All proposal items and dollar figures are based on RED Team members "best • guess" estimates prior to receiving feedback from Jazz to serve as a draft incentive proposal for discussion purposes only. These estimates and dollar figures are not considered binding until formal agreements and contracts have been arranged between each RED Team organization according to program criteria, laws and regulations. -2- • JAZZ RED TEAM ECONOMIC INCENTIVE PROPOSAL MARCH 4, 2009 California Alternative Energy & Advanced Transportation Financing Authority Team Organization: State Treasurer's office Program Title: California Alternative Energy & Advanced Transportation Financing Authority (CAEATFA) Description: The CAEATFA has a manufacturing equipment sale -and - leaseback program for new manufacturers of zero emission vehicles. This incentive will save manufacturers locating in CA anywhere from 7.25 to 8.75% in equipment capital costs depending on the jurisdiction in which the facility is located. The State Treasurer's Office is expanding this incentive to exempt equipment for "Green Manufacturing". The modification must be approved by the Governor and State Assembly of California. • Implementation Cost: Delivery Timeframe: Jazz Involvement: tbd tbd tbd, RED Team Involvement: Ca1BIS ould assist tracking development of CAEATFA and re ease information as it is available. to Jazz: 7.25% to 8.75% of taxable equipment investment. Disclaimer: All proposal items and dollar figures are based on RED Team members • "best guess" estimates prior to receiving feedback from Jazz to serve as a draft incentive proposal for discussion purposes only. These estimates and dollar figures are not considered binding until formal agreements and contracts have been arranged between each RED Team organization according to program criteria, laws and regulations. -3- U • JAZZ RED TEAM ECONOMIC INCENTIVE PROPOSAL MARCH 4, 2009 Industrial Development Bonds Team Organization: Infrastructure Bank Program Title: Industrial Development Bonds (IDB) Description: Industrial Development Bonds (IDBs) are tax-exempt securities issued up to $10 million by a governmental entity to provide money for the acquisition, construction, rehabilitation and equipping of manufacturing and processing facilities for private companies. IDBs can be issued by the I -Bark, local Industrial Development Authorities, or by Joint Powers Authorities Implementation Cost: tbd (Legal fees for bond issue) Delivery Timeframe: tbd Jazz Involvement: Obtain pubic approval. Obtain Letter of Credit. RED Team Involvement: Ca1BIS would set up an IBank contact with Jazz for application assistance. City or County support. to Jazz: Lower cost financing of Disclaimer: All proposal items and dollar figures are based on RED Team members • "best guess" estimates prior to receiving feedback from Jazz to serve as a draft incentive proposal for discussion purposes only. These estimates and dollar figures are not considered binding until formal agreements and contracts have been arranged between each RED Team organization according to program criteria, laws and regulations. Industrial Development Revenue Bond Program - California Infrastructure and Economic... Page I of 3 • I California Infrastructure and Economic Development Bank � "Financing Facilities That BuCfdCamminite Industrial Development Revenue Bond Pro ................................... ............................ ...................................................... What are Industrial Development Bonds? U,t Industrial Development Bonds (IDBs) are tax-exempt securities issued up to $10 million by a governmental entity to provide money for the acquisition, construction, •d rehabilitation and equipping of manufacturing and processing facilities for private companies. IDBs can be issued by the kBank, local Industrial Development Authoril or by Joint Powers Authorities. General Eligibility Requirements The use of IDBs is governed by both federal and state laws and regulations. The following are some of the key requirements: %> Manufacturing Facility. The project financed by the bonds must be a facility used for the manufacturing, production or processing of tangible property (including the processing resulting in the change of such property). No more than 25% of the bond proceeds can be applied to ancillary office, warehouse or other space. >' Qualifying Costs. At least 95% of the bond proceeds must be spent on qualifying costs. Qualifying costs • are generally capital expenditures such as land, building and equipment and other depreciable property (and can also include capitalized interest during construction). "Land. No more than 25% of the bond proceeds can be used to acquire land. >" Acquisition of Existing Manufacturing Facilities. The acquisition of an existing facility can be financed if at least 15% of the portion of the bond amount used to purchase the facility is spent on rehabilitation of the building within a two-year period. Used Equipment. If bond proceeds are used to acquire used equipment, 100% of the cost must be spent on rehabilitation of the equipment within a two-year period. "Maturity. The average maturity of the bonds cannot exceed 120% of the average economic life of the assets financed. cannot be used to finance working capital or inventory. _> No Working Capital or Inventory. Bond proceeds p -`> $20,000,000 Capital Expenditure Limitation. The capital expenditures for the project, when added to the company's other capital• expenditures in the same public jurisdiction as the project for the three years immediately preceding and three years following the closing of the financing of the project, cannot exceed $20,000,000. %> $40,000,000 Aggregate Limitation. A borrower and certain users may not be the beneficiary of more than $40,000,000 of certain tax-exempt bonds regardless of the location of the projects, during a three year period after the facility being financed is placed in service. >' Public Benefits. The project financed by the bonds must meet certain public benefit criteria established by the California Debt Limit Allocation Committee (CDLAC), which include, among other things, the creation or retention of jobs. CDLAC's criteria for IDBs and other types of private activity bonds can be obtained at www.treasurer.ca. ov/cdlacl. ?5 Prevailing Wage. The prevailing wage must be paid to workers involved in the construction or renovation http://www.ibank.ca.gov/Programs/industrial.html 3/3/2009 Industrial Development Revenue Bond Program - California Infrastructure and Economic... Page 2 of 3 of a facility financed with IDBs in compliance with Chapter 1 (commencing with Section 1720) of Part 7 of • Division 2 of the Labor Code and implementing regulations. California Labor Code, Division 2, Part 7, Chapter 1, Article 1, Section 1720-1743 can be viewed at www.leginfo.ca.gov/ccil-bin/disp-l—ayco—de? section=lab&groupEQ1001-02000&file=1720-1743. Credit Requirements. The borrower must generally secure a letter of credit in the amount of the bonds from a bank with a long-term credit rating of at least "AY from Moody's Investors Service (Moody's), or an "A-" from Standard & Poor's (S&P) or Fitch Ratings, Inc. (Fitch). An unrated private placement with a Qualified Institutional Buyer is also possible under certain conditions. Benefits of IDB Financing Low Interest Rates - generally 20% to 30% below comparable commercial alternatives. >` Long -Term Financing - longer than conventional financing, often up to 30 years. "Comprehensive Funding - funds can be used for construction and take-out financing for land, buildings and equipment. %> Assumable - the bonds are assumable if the business is sold to an entity engaged in a qualified use. >' No Prepayment Penalty. The IDB Process • The IDB financing process can generally be completed within 120 -150 days. The I -Bank staff and a financing team, which typically consists of an underwriter, bond counsel and financial advisor, will assist the applicant through each stage of the process. Stage 1 - Pre-Quaiification %> Pre -Application `> Federal Requirements State Requirements Stage 2 - Approvals » Inducement Resolution by Issuer -> Application to Issuer for Final Approval ••» Noticed Public Hearing ("TEFRA") %> Letter of Credit Commitment from Bank `> State Tax -Exempt Allocation Approvals • Stage 3 - Bond Issuance •>% Documentation http://www.ibank.ca.gov/Programs/industrial.html 3/3/2009 Industrial Development Revenue Bond Program - California Infrastructure and Economic... Page 3 of 3 >> Final Resolution of Issuance by Issuer • > Bond Sale ,, Funding How to Apply Applications are accepted on a continuous basis and the ]-Bank Board of Directors normally meets each month to consider approval of complete applications received at least twenty working days prior to the meeting date. For additional information, please contact Tara Dunn at (916) 322-2571 or tdunn ibank.ca.gov. Disclaimer: Nothing contained herein should be construed or relied upon as legal advice. Instead, this information is intended to serve as an overview of the general subject of the use of tax-exempt bonds by manufacturing companies, from which better -informed requests for advice, both legal and financial, can be formulated. Polies and roc. ec ures for Revenue Bond Financing - Upped OS/2008 olicies and Procedures for Bond Financing for Economic Development Facilities (pdf 21 Industrial Development Revenue Bond Fees (pdf 5k) --------------- Industrial Development Revenue Bond Financing Brochure (pdf, 1 8MB) Pre -Application (Word 2000) • Pre -Application (Word 95) Pre-Ap lication df 265k CONTACT: Paula Connors Public Finance Manager, Bond Financing Programs California Infrastructure and Economic Development Bank P.O. Box 2830 Sacramento, CA 95812-2830 E-mail: pcon_o rs@_bank ca gov (916) 322-1498 (Voice) (916) 322-6314 (FAX) Conditions of Use I Privacy Polic Copyright @ 2008 State of California http://www.ibank.ca.gov/Programs/industrial.html 3/3/2009 • • U JAZZ RED TEAM ECONOMIC INCENTIVE PROPOSAL MARCH 4, 2009 Research & Development Tax Credit RED Team Organization: California Business Investment Services Incentive Program Title: Research & Development (R&D) Tax Credit Incentive Description: Designed to encourage businesses to increase their basic research & development activities in CA; the R&D tax credit allows companies to receive a 15 % credit against their bank and corporation tax liability for qualified in- house research expenses, and a 24 % credit for basic research payments to outside organizations. Implementation Cost: Tax filing Delivery Timeframe: Varies Jazz Involvement: Tax filing RED Team Involvement: Ca1BIS to put Jazz in touch with Franclrise Tax Board officials to Jazz: Based on incremental R&D performed in CA for tax Disclaimer: All proposal items and dollar figures are based on RED Team members "best guess" estimates prior to receiving feedback fiom Jazz to serve as a draft incentive proposal for discussion purposes only. These estimates and dollar figures are not considered binding until formal agreements and contracts have been arranged between each RED Team organization according to program criteria, laws and regulations. !s's 11 • JAZZ RED TEAM ECONOMIC INCENTIVE PROPOSAL MARCH 4, 2009 Employment Training Panel RED Team Organization: Employment Training Panel Incentive Program Title: Employment Training Panel Reimbursement Incentive Description: State funded program to offset training costs of manufacturers facing out-of-state or global competition. Jazz can utilize ETP funds to improve productivity and develop new capabilities for their workforce. Training can be done in-house by Jazz staff and/or by subcontracted training providers Implementation Cost: Company (contractor) incurs any costs for application development, this is not reimbursable. ETP reirnburses for training costs such as instructor salaries/fees and materials. Company pays wages of trainees while in training. Delivery Timeframe: Approval process takes approximately 5 to S weeks. Contracts are written for two year period. Jazz Involvement: 500 employees may receive up to 200 hours each of classroom and or lab training at own facilities. Trainees, curriculum, instructors and materials are determined by Jazz. RED Team Involvement: ETP will provide technical support. CMTC and Community Colleges may provide training and/or administrative support Savings/Value to Jazz: $1,900,000 (500 employees trained for 200 hours reimbursed at $19 per trainee per hour). Estimate productivity inczease of 10% and costlunit decreases 5%. Disclaimer: All proposal items and dollar figures are based on RED Tearn members "best guess" estimates prior to receiving feedback from Jazz to serve as a draft incentive proposal for discussion purposes only. These estimates and dollar figures are not considered binding until formal agreements and contracts have been arranged between each RED Team organization according to program criteria, laws and regulations. -6- • JAZZ RED TEAM ECONOMIC INCENTIVE PROPOSAL MARCH 4, 2009 x New Employee Recruitment Assistance RED Team Organization: Orange County Workforce Investment Board- Workforce Investment Act (WIA) Business Services Incentive Program Title: New Employee Recruitment Assistance Incentive Description: WIA Funded employee recruitment assistance in order to offset cost of new hires due to natural attrition & turnover and project growth Implementation Cost: No start-up cost, except for Jazz staff time to coordinate recruitment activity Delivery Timeframe: Can start recruitment assistance immediately Jazz Involvement: Jazz assigns a staff member to coordinate recruitment activity • RED Team Involvement: Orange County Workforce investment Board, Coast Community College District, ProPath, Inc. SavingsNalue to Jazz: Average cost per hire within organizations similar to Jazz: Engineering Non -Exempt - $ 4,447 Engineering Non - Exempt - $ 2,930 with just a 10% natural turnover and project growth assumption rate. Which equals an average of 50 new hires a year depending on exempt or non-exempt that's a savin„s of. $146,950 to $222,350 per year. Disclaimer: All proposal items and dollar figures are based on RED Team members • "best guess" estimates prior to receiving feedback from Jazz to serve as a draft incentive proposal for discussion purposes only. These estimates and dollar figures are not considered binding until formal agreements and contracts have been arranged between each RED Team organization according to program criteria, laws and regulations. -7- r� U JAZZ RED TEAM ECONOMIC INCENTIVE PROPOSAL MARCH 4, 2009 On -the -Job Training Shared Organizational Development RED Team Organization: Orange County Workforce Investment Board- Workforce Investment Act (WIA) Business Services. Incentive Program Title: On -the -Job Training and Shared Organizational Development Program Incentives. Incentive Description: WIA Funded On -the -Job Training (Pays up to 50% of salary during established training period) for new hires that qualify. Shared Organizational Development Programs. Implementation Cost: No start-up cost, except for Jazz staff time to coordinate training activity Delivery Timeframe: Can start Training and Organizational Development Programs immediately Jazz Involvement: Jazz assigns a staff member to coordinate activity RED Team Involvement: Orange County Workforce Investment Board, Coast Community College District, ProPath, Inc. SavingsNalue to Jazz: Average On -the -Job Training reimbursement is $6,500 with just a 5% utilization assumption or 25 OJT's a year that's a savings of $162,500 in Training costs, Savings from Shared Organizational Development costs can average between $ 25,000 and $ 50,000 per organization. Combined that's a possible savings of: $187,500 to $212,500 per year. Disclaimer: All proposal items and dollar figures are based on RED Team members • "best guess" estimates prior to receiving feedback from Jazz to serve as a draft incentive proposal for discussion purposes only. These estimates and dollar figures are not considered binding until formal agreements and contracts have been arranged between each RED Team organization according to program criteria, laws and regulations. -8- • U JAZZ RED TEAM ECONOMIC INCENTIVE PROPOSAL MARCH 4, 2009 Incumbent Worker Training RED Team Organization: Orange County Workforce Investment Board- Workforce Investment Act (WIA) Business Services. Incentive Program Title: Incumbent Worker Training — Skill Upgrade Incentive Description: WIA funded Skill Upgrade retraining for incumbent workers to be more skilled and competitive in the manufacturing of products relating to solar and other alternative forms of energy. Implementation Cost: No start-up cost, except for Jazz staff time to coordinate training activity with WIB. No cash match is required, only in -kind contribution in the form of employee wages while in training. Delivery Timeframe: Pending development of desired curriculum by Jazz and training provider; pending training provider agreement with County of Orange. Jazz Involvement: Jazz assigns a staff member to coordinate activity; in -kind contribution in the form of employee wages while in training. RED Team Involvement: Orange County Workforce Investment Board, in accordance with the OCWIB Individual Training Account policy. Savings/Value to Jazz: To initially retrain incumbent workers in the first year, Jazz may receive $150,000 value in WIB-approved training for its workers in the first year of retraining alone. Disclaimer: All proposal items and dollar figures are based on RED Team members • "best guess" estimates prior to receiving feedback fomm Jazz to serve as a draft incentive proposal for discussion purposes only. These estimates and dollar figures are not considered binding until formal agreements and contracts have been arranged between each RED Team organization according to program criteria, laws and regulations. • U RED Team Organization: Orange County Workforce Investment Board, Workforce Investment Act (WIA) Business Services Incentive Summary Incentive Program Title Savines/Value to Jazz New Hire Recruitment Assistance $146,950 to $ 222,350 On -the -Job Training Program $162,500 Shared Organizational Development Programs $25,000 to 50,000 Incumbent Workers Skill Upgrade $150,000 Total, $484,450 to $584,850 Disclaimer: All proposal items and dollar figures are based on RED Team members • "best guess" estimates prior to receiving feedback from Jazz to serve as a draft incentive proposal for discussion purposes only. These estimates and dollar figures are not considered binding until formal agreements and contracts have been arranged between each RED Team organization according to program criteria, laws and regulations. -10- • JAZZ RED TEAM ECONOMIC INCENTIVE PROPOSAL MARCH 4, 2009 Orange County Sanitation District Technical Panel RED Team Organization: Orange County Sanitation District Incentive Program Title: Technical Panel: hmplementation of Manufacturing & Treatment waste Minimization Techniques Incentive Description: Considering high efficient manufacturing and treatment technologies (such as more efficient reverse osmosis with potential output of 80 to 90 percent efficient) may lower the amount water purchased and wastewater disposed to the sewer system by nearly 10% to 20%. Additionally, the amount water usage and wastewater disposal can be reduced by a factor of additional 10% to 20% by installing waste minimization equipment such as automatic shut off valves, cascade rinses or spray rises, w ere applicable. Implementation Cost: Do not have an estimate at this time. Delivery Timeframe: Unknown. Jazz Involvement: Unknown RED Team Involvement: Potentiality looking for grant(s) or incentive programs with water or wastewater agencies. Savings/Value to Jazz: Annual cost saving of about $250,000 to $500,000 for 10% to 20% reduction of water usage and wastewater disposal. Special Requests to OCSD Board for rate relief should be submitted in writing in order for staff and the Executive Steering Committee to formally consider assistance to Jazz and other industrial customers with unique issues. Disclaimer: All proposal items and dollar figures are based on RED Team members • "best guess" estimates prior to receiving feedback from Jazz to serve as a draft incentive proposal for discussion purposes only. These estimates and dollar figures are not considered binding until formal agreements and contracts have been arranged between each RED Team organization according to program criteria, laws and regulations. - 11 - • JAZZ RED TEAM ECONOMIC INCENTIVE PROPOSAL MARCH 4, 2009 SCE Energy Efficiency RED Team Organization: Southern California Edison Incentive Program Title: Energy Efficiency Programs: Industrial Energy Efficiency and Standard Performance Contract and others programs may apply. Incentive Description: SCE offers a number of energy efficiency programs to help customers identify, incentivise and implement process and equipment changes that yield long -terns energy savings. Implementation Cost: Cost of equipment and retrofitting Delivery Timeframe: Incentive payment within three months of post inspection. Involvement: Purchase and installation of new equipment Team Involvement: SCE Account Manager, CMTC, possibly city inspectors to Jazz: Incentive payout at $100/kW reduced plus ($0.05 to $0.14) per kWh annual savings and overall energy costs. Disclaimer: All proposal items and dollar figures are based on RED Team members • "best guess" estimates prior to receiving feedback from Jazz to serve as a draft incentive proposal for discussion purposes only. These estimates and dollar figures are not considered binding until formal agreements and contracts have been arranged between each RED Team organization according to program criteria, laws and regulations. -12- • JAZZ RED TEAM ECONOMIC INCENTIVE PROPOSAL MARCH 4, 2009 RED Team Organization: Incentive Program Title: SCE Demand Response Southern California Edison Demand Response Programs Description: SCE offers a number of Demand Response program to reward customers able to reduce kW demand during critical energy shortages. The Technical Assistance / Technology Incentive (TA/TI) Program provides eligible commercial, industrial and agricultural customers demand response site assessments at no charge, and financial' incentives for the installation of equipment that reduce electricity usage during demand response events. Implementation Cost: Varies with program Delivery Timeframe: Varies with program Jazz Involvement: Identify load shifting opportunities that don't compromise production. RED Team Involvement: SCE Account Manager Savings/Value to Jazz: Varies with program �)fhx,�4�v Disclaimer: All proposal items and dollar figures are based on RED Team members "best guess" estimates prior to receiving feedback from Jazz to serve as a draft incentive • proposal for discussion purposes only. These estimates and dollar figures are not considered binding until formal agreements and contracts have been arranged between each RED Team organization according to program criteria, laws and regulations. - 13 - • JAZZ RED TEAM ECONOMIC INCENTIVE' PROPOSAL MARCH 4, 2009 SoCal Gas Energy Efficiency RED Team Organization: SoCal Gas Incentive Program Title: Business Energy Efficiency Program Incentive Description: Rate -payer funded program to incent business to improve efficiency and reduce natural gas consumption per unit of production. Implementation Cost: Dependent upon cost of equipment purchased or process improved. Delivery Timeframe: Now through 2011. Jazz Involvement: Must make the energy efficiency improvement/investment before funds can be received. RED Team Involvement: Will provide guidance and perform calculations to determine energy savings. Can also provide more specific measurement and detailed analysis. Savings/Value to Jazz: $2,000,000 maximum per year, but limited to $1/therm saved or 50% of project costs, whichever is less. Disclaimer: All proposal items and dollar figures are based on RED Team members • "best guess" estimates prior to receiving feedback from Jazz to serve as a draft incentive proposal for discussion purposes only. These estimates and dollar figures are not considered binding until formal agreements and contracts have been arranged between each RED Team organization according to program criteria, laws and regulations. -14- • U JAZZ RED TEAM ECONOMIC INCENTIVE PROPOSAL MARCH 4, 2009 SoCal Gas On -Bill Financing RED Team Organization: SoCal Gas Incentive Program Title: On -Bill Financing Incentive Description: This program provides a loan, up to $50,000, to customers who are purchasing qualified energy efficient equipment. Loan is at 0% interest and payment over 5 years. Implementation Cost: Dependent upon cost of equipment purchased and also a rebate reduction of 10% or $500, whichever is less. Delivery Timeframe: Now through 2009. Jazz Involvement: Must purchase qualified energy efficient equipment. RED Team Involvement: Will provide guidance and perform calculations to determine energy savings and rebate amount Can also provide more specific measurement and detailed analysis. to Jazz: Jazz's borrowing rate. Disclaimer: All proposal items and dollar figures are based on RED Team members is proposal guess" estimates prior to receiving feedback from Jazz to serve as a draft incentive proposal for discussion purposes only. These estimates and dollar figures are not considered binding until formal agreements and contracts have been arranged between each RED Team organization according to program criteria, laws and regulations. -15- r� U L� JAZZ RED TEAM ECONOMIC INCENTIVE PROPOSAL MARCH 4, 2009 SoCal Gas Rule 38 Funding RED Team Organization: SoCal Gas Incentive Program Title: Rule 38 Incentive Description: This program provides cash incentive, up to $100,000, to customers who increase their gas consumption by installing new, fuel -competitive equipment (i.e. absorption chillers and "dry air"). Implementation Cost: Dependent upon cost of equipment purchased. Delivery Timeframe: No restrictions. Jazz Involvement: Must purchase equipment. RED Team Involvement: Will provide guidance and perform engineering analysis. SavingsNalue to Jazz: Savings dependent upon difference between electric rates and aas rates and use of waste heat. Disclaimer: All proposal items and dollar figures are based on RED Team members • "best guess" estimates prior to receiving feedback from Jazz to serve as a draft incentive proposal for discussion purposes only. These estimates and dollar figures are not considered binding until formal agreements and contracts have been arranged between each RED Team organization according to program criteria, laws and regulations. -16- C, J JAZZ RED TEAM ECONOMIC INCENTIVE PROPOSAL MARCH 4, 2009 RED Team Organization: SoCal Gas Incentive Summary Incentive Program Title Savings/Value to Jazz Business Energy Efficiency On -Bill Financing Rule 38 Total: • up to $2,000,000 limited to $1/therm saved or 50% of equipment cost. $50,000 interest -free loan. up to $100,000 plus reduced utility costs after 5-6 year payback. to Disclaimer: All proposal items and dollar figures are based on RED Team members . "best guess" estimates prior to receiving feedback from Jazz to serve as a draft incentive proposal for discussion purposes only. These estimates and dollar figures are not considered binding until formal agreements and contracts have been arranged between each RED Team organization according to program criteria, laws and regulations. -17- • • JAZZ RED TEAM ECONOMIC INCENTIVE PROPOSAL MARCH 4, 2009 Metropolitan Water District Industrial Process & Irrigation Improvement Programs RED Team Organization: Metropolitan Water District (MWD) Incentive Program Title: Industrial Process & Irrigation Improvements Incentive Description: MWD will pay an incentive of $3/1,000 gallons of water saved. Information for it can be found at: http://www bewaterwise com/WSPP.html Implementation Cost: Free audit to determine potential improvements. Cost depends on improvement project. Delivery Timeframe: Unknown Jazz Involvement: Unknown RED Team Involvement: MWD, IRWD, OCSD Savings/Value to Jazz: $3 per 1,000 gallons of water saved. Estimate 2,000,000 gallons saved provides a $6,000 incentive to offset improvement project costs. Disclaimer: All proposal items and dollar figures are based on RED Team members "best guess" estimates prior to receiving feedback from Jazz to serve as a draft incentive proposal for discussion purposes only. These estimates and dollar figures are not considered binding until formal agreements and contracts have been arranged between each RED Team organization according to program criteria, laws and regulations. -18- • • JAZZ RED TRAM ECONOMIC INCENTIVE PROPOSAL MARCH 4, 2009 Recycled Water RED Team Organization: Irvine Ranch Water District Incentive Program Title: Recycled Water Incentive Description: The use of recycled water for industrial applications such as for cooling tower make-up is available at 40% less than potable water. Very crudely, assuming the cooling tower demand is 150 acre-feet per year, Jazz could save approximately $25,000 annually by converting to recycled water. Cost: Jazz on -site costs. IRWD's off -site costs. Timeframe: Unrknowrr Jazz Involvement: Assess what changes would need to be made to its on -site systems and chemical applications to accoxmnodate its use. RED Team Involvement: IRWD, OCSD, Metropolitan Water District of So.Cal. to Jazz: Estimate at Disclaimer: All proposal items and dollar figures are based on RED Team members . "best guess" estimates prior to receiving feedback from Jazz to serve as a draft incentive proposal for discussion purposes only. These estimates and dollar figures are not considered binding until formal agreements and contracts have been arranged between each RED Team organization according to program criteria, laws and regulations. -19- • • JAZZ RED TEAM ECONOMIC INCENTIVE PROPOSAL MARCH 4, 2009 Water Efficiency RED Team Organization: Irvine Ranch Water District Incentive Program Title: Water Efficiency Incentive Description: IRWD audit of the irrigation system and the interior of the facility. Implementation Cost: Unknown Delivery Timeframe: Unknown Jazz Involvement: Facilities staff RED Team Involvement: IRWD, OCSD, Metropolitan Water District of So.Cal. SavingsNalue to Jazz: $148 per ccf (100 cubic fee or 748 gallons) saved. Estimate 2,000,000 gallons (2,673 ccf) saved @ $4 per ccf = $10,000+ annually. Disclaimer: All proposal items and dollar figures are based on RED Team members • "best guess" estimates prior to receiving feedback from Jazz to serve as a draft incentive proposal for discussion purposes only. These estimates and dollar figures are not considered binding until formal agreements and contracts have been arranged between each RED Team organization according to program criteria, laws and regulations. -20- Industrial Process Improvement Program rage 1 u1 a CJ e Home 1 'GardenYSpot„J Rebates I Events 11Contacts '( sitemap .1 Classes Home + Rebates + InonstNal Process JnWrovem( Wcter The program Is designed to provide financial incentives to commercial, Savings industrial, Institutional and higher density landscape properties through two different conservation options. Documented water savings are '� Gana ce required to receive the Incentive which is based on actual water saved o total project cost, whichever Is less. Program Process Improvements Click here for Guidelines • Financial assistance is provided to local Industries to encourage investment in water -saving process improvements. The program is open to all public and private, commercial and industrial users within Metropolitan's service area. Documented water savings derived from projects Implemented under the program that meet the minimum qualifying criteria may receive financial assisance. Example: Project Cost: $25,000 Annual Water Savings 1,500,000 gallons A) $3.00 x (1,500,000 gal./1,000 gal.)=*$4,500 B) 100% of $25,000 = $25,000 * Incentive provided by Metropolitan Is $4,500 What types of improvements qualify? Equipment for the proposed Improvement may be purchased or leased. Typical process improvements that qualify Include: • Installation of equipment to capture, treat and reuse water that would otherwise be discharged to the sewer. • • Replacement of existing equipment with more efficient process Improvements resulting in reduced water demand. Irrigation Syste Improvements Click here for Guidelines Financial assistance is provided to upgrade existin! commercial, muiti-famlly, and homeowner associa landscapes (and single-family residences one acre larger) with more efficient irrigation equipment. Incentives are based on documented water saving Sites Irrigated with recycled water or mixed -use m are considered on a case -by -case basis. Example: Project Cost: $50,000 Annual Water Savings 12,000,000 gallon! A) $3.00 x (12,000,000 gal./1,000 gal.)=*$36,0( B) 100% of $50,000 = $50,000 * Incentive provided by Metropolitan is $36,000 What types of improvements qualify? Irrigation system Improvements that qualify Includ upgrading existing irrigation system equipment wil efficient hardware resulting In reduced water dem: Typical components include rotating nozzles, spray valves, piping, sensors, controllers, etc. http://www.bewaterwise.com/WSPP.htin] 3/3/2009 Industrial Process Improvement Program rage / of • What are the minimum qualifying criteria? • Proposed Improvements must be new. Projects that have commenced construction or that have Installed equipment prior to submittal of a Statement of Interest are ineligible. • Project must be supported by a Metropolitan member agency and Implemented within Metropolitan's service See map. • Proposed Irrigation system Improvements must be functional for at least five (5) years. • Water usage must be metered to determine resultant water savings. How much is the incentive? Based on project cost and water savings, Metropolitan will pay the lesser of: A) $3.00 per 1,000 gallons of actual water saved for a one year monitoring period; or B) 100 percent of eligible project costs including equipment, installation and first -year water management services fees, If applicable. How will financial assistance be provided? If selected for program participation, a project agreement would be executed stating the amount of financial assisti provided by Metropolitan. Payment would be made in two steps: (1) the first payment is made after verifying equ Installation and project startup/operatlon; (2) final payment is made after a 12-month monitoring period to verify v savings. Here's how to apply: Complete, sign and return the Statement of Interest* to: The Metropolitan Water District of Southern California Regional Supply Unit - US 9-302 • P.O. Box Los Angeles,les, CA 90054-0153 Attn: Ms. Deneice Cotton or via FAX at (213) 217-6949 *The Statement of Interest identifies specific information required to determine eligibility. Additional Information n required. Please allow six to eight weeks for project review and determination of eligibility. Projects with major modifications or complex Improvements may require additional time for review. Home I Garden Spot I Rebates I Events I Garden Guide I Contacts I Site Map littp://www,bewaterwise.coin/WSPP.htinl 3/3/2009 Commercial hates rage 1 Ul't • GI3;i1� � iiifil r 'e; 3aQi11£t I �dl�r¢y IP+VIGL+P�iNC}I (taw, - (949) 453-5300 Mi fVA16RfIJS1R]GT - '-' About EEtWD About IRWD Commercial/Industrial/Public Authority/Landscape Irrigation al Free Programs Family Residential Customers Rates Customer Service Potable Water I Non -Potable Water I Reclaimed Water I Sewer Payment Options Business Center Potable Water Engineering Monthly service charge Employment The monthly service charge for multi -family residential, commercial, industrial, pub] and non-agricultural landscape irrigation is based upon the meter size and ranges fr Conservation for a 5/8" meter to $2,514.10 for a 16", 18", 20" Propeller meter. Water Quality Recycling Environment Water Education Media Information Water Facts Links Contact IRWD Account Access Commodity Charge The commodity charge for potable water for commercial, industrial and public authc customers is based on a tiered rate structure according to usage. Tier Rate (per ccf*) Base Rate $1.07 Inefficient $2.14 Excessive $4.28 Wasteful $8.56 Percent of Usage (by month) 0-100% 101-110% 111-120% 121%+ Commodity charge - Potable Landscape Irrigation (Acre Feet per Acre Basis): Tier Rate (per ccf*) Low Volume $0.91 Base Rate $1.07 Inefficient $2.14 Excessive $4.28 Wasteful $8.56 Percent of Usage (by month) 0-40% 41-100% 101-110% 111-120% 121%+ Pumping Surcharge A surcharge will be added to the commodity rate of those users at higher elevations the District to incur additional pumping costs to supply their water. The surcharge ie prevailing energy costs and currently ranges from $0.16 to $0.42 per ccf. If you are affected by a pumping surcharge it will be itemized on your monthly bill, A complete table pumping surcharges by zone can be found in the IRWD Rates and document. This document is in PDF format for easy viewing or printing in the FREE Acrobat Reader. Non -Potable Water (untreated) Commodity charge for non -potable (untreated) water used for non-ag landscape irri feet per acre basis) based on evapotranspiration (ET) for each microclimate; Tier Rate (per ccf*) ET Index Percent of Usage (by month) June -November littp://www.irwd.cone/AboutIRWD/rates_commercial.plip 3/3/2009 14 • r LJ JAZZ RED TEAM ECONOMIC INCENTIVE PROPOSAL MARCH 4, 2009 RED Team Organization: IRWD & MWD Incentive Summary Incentive Program Title Savings/Value to Jazz Recycled Water MWD Improvements Water Effiency $25,000 annually $6,000 incentive $10,000 annually Total: $35,000 annually plus incentives Disclaimer: All proposal items and dollar figures are based on RED Team members • "best guess" estimates prior to receiving feedback from Jazz to serve as a draft incentive proposal for discussion purposes only. These estimates and dollar figures are not considered binding until formal agreements and contracts have been arranged between each RED Team organization according to program criteria, laws and regulations. -21- • • JAZZ RED TEAM ECONOMIC INCENTIVE PROPOSAL MARCH 4, 2009 California Manufacturing Technology Consulting RED Team Organization: California Manufacturing Technology Consulting (CMTC) Incentive Program Title: Process Improvement Preliminary Assessment Incentive Description: Federally funded initiative to cover the cost of a preliminary assessment that provides an industry competitive comparative analysis, identification of potential areas for cost improvement, and a plan to prepare a Process Improvement Roadmap. This assessment begins the process of reducing cost and eliminating non value- added activities from the business. Implementation Cost: Preliminary assessment is funded by CMTC. Ongoing implementation cost will be determined from assessment findings and the availability of applicable funding offsets. Delivery Timeframe: Preliminary assessment completed in two — three weeks. Jazz Involvement: Jazz senior managers, department heads, and some key staff members participate in discovery interviews. Smaller number of Jazz personnel is kickoff and review meetings. RED Team Involvement: CMTC, ETP, Gas Company, Southern California Edison Savings/Value to Jazz: The Process Improvement Preliminary Assessment has a market value of $28,000.00 and will be provided to Jazz Semiconductor at no charge. Disclaimer: All proposal items and dollar figures are based on RED Team members . "best guess" estimates prior to receiving feedback from Jazz to serve as a draft incentive proposal for discussion purposes only. These estimates and dollar figures are not considered binding until formal agreements and contracts have been arranged between each RED Team organization according to program criteria, laws and regulations. -22- • JAZZ RED TEAM ECONOMIC INCENTIVE PROPOSAL MARCH 4, 2009 RED Team Organization: CMTC Incentive Summary Incentive Program Title Savings/Value to Jazz Process Improvement Preliminary Assessment Process Improvements based upon Lean Principles ETP Contract with CMTC $28,000.00 Projected Savings will be identified by Process Improvement Roadmap Up to $500,000 Total: $28,000 Plus I Disclaimer: All proposal items and dollar figures are based on RED Team members • "best guess" estimates prior to receiving feedback from Jazz to serve as a draft incentive proposal for discussion purposes only. These estimates and dollar figures are not considered binding until formal agreements and contracts have been arranged between each RED Team organization according to program criteria, laws and regulations. -23- C�1 < % 7 ®® THE POWER OF CONSULTING'" CMTC Management Consulting Services Operational Excellence Through Effective Cost Management Jerry McNair and Kristine Pearce March 4, 2009 C7 SEMICONDUCTOR 1 • Incentive Proposal Summary • CMTC will conduct a preliminary assessment of JAZZ's processes and costs to help define a Way Ahead Strategy (assessment valued at $28,000). RED Team Organization: California Manufacturing Technology Consulting (CMTC) Incentive Program Title: Process Improvement Preliminary Assessment Incentive Description: Federally funded initiative to cover the cost of a preliminary assessment that provides an industry competitive comparative analysis, identification of potential areas for cost improvement, and a plan to prepare a Process Improvement Roadmap. This assessment begins the process of reducing cost and eliminating non value- added activities from the business. Implementation Cost: Preliminary assessment is funded by CMTC. Ongoing implementation cost will be determined from assessment findings and the availability of applicable funding offsets. Delivery Timeframe: Preliminary assessment completed in two — three weeks. Jazz Involvement: Jazz senior managers, department heads, and some key staff members participate in discovery interviews. Smaller number of Jazz personnel is kickoff and review meetings. RED Team Involvement: CMTC, ETP, Southern California Edison SavingsNalue to Jazz: The Process Improvement Preliminary Assessment has a market value of $28,000.00 and will be provided to Jazz Semiconductor at no charge. JAZZ - Project Timeline and Deliverable The Preliminary Assessment/ Discovery Phase is anticipated to be completed in 2 weeks Benchmarking/ Cost Develop Project Cost Decomposition Profiles for Il� Comparative and Driver Opportunities Analysis Identification •• • • Implementation Support Prioritize and Project Oversight Planning Meeting Preliminary Improvements/ and Interview Findings and Detailed Analysis Conduct Quick Hits Scheduling Way Ahead and Synthesis of Workshop Long Term - Strategy Data -""" -"" "" Recommendations Interviews and Review and Go Prepare Process Data Gathering Cost Signal for Improvement Detailed Analysis Improvement Roadma Review of Opportunities P financial data Plant Walkthrough and Energy Quick Look Checkpoint Meeting w/ Mgmt to confirm opportunities ............................... Change Management Strategy Roadmap - Approval and Go Signal for Implementation �---------- � Pertormance Measurement Session i ---------- Next Steps and Root Cause Analysis Operational Excellence/ Cost Management (Final Report) Sustainment Plan Cost Comparative Analysis • Will be conducted using the TRANSFORMATION PLANNERTM • Provides benchmarking data to show how JAZZ performs on key metrics in comparison to other companies in its manufacturing sector. • The model automatically sets improvement targets, but can be easily adjusted to set agreed -upon improvement targets to meet company goals. Current I Proposed I Final Target Value Percentile Value Percentile Value Percentile Annual Benefit One -Time cash conv. Performance metric Utilities $287,500- 41°to $221;788 b0b 1$2FS,750 47% $281750 Run Hours as %oFAvailable 71.67% 46% 83,81% 71% 70,00% 59% $139,238 -On-Time Deliveries 92.20310- 17% -91A83'o 429'a 95.00°l0 _y o� 25% $15,036 Inventory Turns 7A4 21% 10.25 46% t0 e) 440/0 $53,610 $357,400 Days Receivables 52.92 343'0 48.89 S9So — SSRO $10,856 $217,128 Premium Freight $6,500 46% $1,403 71% .$3,260 59% $3,250 SgzpatidReAorlt 5.46d/o- 20% 3,08% 45% 4.28% 47 28$0 $105,467 Employee Turnover 7.500/6 92% 6,32% 95% 17.50% 1) 92% $aoo Schedule BUMPlltg. 15.00% 25% 6.67%, 5090 Total: $8B7,353 $574,523 4 I • • Energy QuicklookTM identifies "rapid return" energy savings opportunities • Identifies the most promising energy reduction opportunities with "ballpark" dollar cost/savings estimates • Key activities: 1. 'Conduct a plant tour evaluating the facility, equipment, equipment maintenance & processes 2. Review key processes and equipment energy usage 3. Review recent energy usage records 4. Develop a QuickLookTm Energy Report • The QuickLookTm Energy Report includes summary of energy usage, opportunities for improvement (as it relates to energy consumption), and proposed next steps 5 About CMTC • California Manufacturing Technology Consulting (CMTC) is a professional services firm with a strong heritage of helping companies resolve complex business challenges. • CMTC's approach with its clients is hands-on. The objective is to help clients achieve the maximum return on investment, attain the highest level of competitiveness, and sustain the improvements. Technology Busines Growth & A ..t. cgmsi ion CO) Process ' Standatdizatiof . Pr/ ocess Optimization - & Repeatability, (Six Sigma),,, Process Waste ;eduction (Lean) Capital Optimization viSiQ.II' ( \"ywNumu) &Facilities) Business Information Management (IT $ttate ��Org Development (Change Mgt) 1 1/ t • What Makes CMTC Different • L-1 • Partially funded by the National Institute of Standards and Technology (NIST), a branch of the U. S. Department of Commerce • Largest consultancy in the Manufacturer's Extension Partnership (MEP) system • Non-profit strategic resource for Southern California manufacturers. — 100 manufacturing experts on staff, averaging 25 years of experience — Over the past 16 years, CMTC has helped 4,000+ manufacturers to become more competitive. irda i• -' Qr1alfTy� s'tlan�,�ttctitrirrg3 jk1u�&g�ix�e�b�,.i ratS�,t; `infor# h, • • CMTC has helped a number of companies improve processes and significantly reduce operating costs CJ • Cellular Manufacturing project - implemented lean manufacturing cell for a building hardware manufacturer that reduced labor content per unit from $1.34 to 330. Savings enabled company to reduce price, sell more units and grow the business. Reduced staffing needs from 12 to 6 and redeployed the 6 "extra" employees to a new product line. Project accounted for $4,000,000 annual increase in profitability for. the company. • Lean Implementation project — improved throughput for an aerospace product manufacturer from 40 units of Good Work Produced per day to 40 units of Good Work Produced per hour and zero recorded defects. • Energy Reduction project — Over 4007000 therms saved through six sigma analysis to eliminate defects for an aluminum smelter. 8 E CMTC will conduct the assessment and interviews in a time that is convenient for JAZZ Assessment deliverables will include: 1.Client Needs and Preliminary Findings Summary 2.Transformation Planner Assessment Results 3.Energy Quick Look Results 4.Way Ahead Strategy • Areas for Improvement/ Recommendations • Finalized Incentive Proposal, Timeline and Deliverables r ter+ 7 9 E CMTC Contacts ' Jerry McNair Director, Industry Development (909) 226-6717 (mobile) jmcnair@cmtc.com ' Kristine Pearce Project Manager (949) 929-3729 (mobile) kpearce@cmtc.com www.cmtc.com 10 Jazz RED Team Contact List • Name Org Phone# Email Brian McGowan BT&H 916 322-0351 Brian.Mcgowan@bth.ca.gov Eloisa Klementich BT&H 916 322-0351 bth.ca.00v eloisa.klementich@bth.ca.gov Mather Kearney CALBIS 916 322-0000 mather kearney(a)labor.ca.00v Dave Freitas CALBIS 916 322-0000 Dave.Freitas@labor.ca.goV Tom Lease CALBIS 916 322-000 tom -lease atabor ca.00v Wally Aguilar ETP 818 755-1309 waguilar@etp.ca.gov Katie Bowden Newport 949 644-3230 kbowden@city.newport-beach.ca.us Leigh DeSantis Newport 949 644-3207 Idesantis(a)city newport-beach ca us Sharon Wood Newport 949 644-3222 swood(o)city newoort-beach.ca.us Wallace Walrod OCBC 949 794-7237 wwalrod@ocbc.org Michelle Hart OCBC 949 794-7219 mhart(o)ocbc.org Lucy Dunn OCBC 949 794-7220 Idunn(o)ocbc.ora Andrew Munoz OCWIB 714 567-7370 andrew.munoz@hcs.ocgov.com David Baquerizo OCWIB-ProPath 661 343-1552 david(c propath.oro Connie Scholl OCWIB 714 567-7599 connie.scholl@hcs.ocgov.com Greg Heintz Gas Co. 714 634-3189 gheintz@semprautilities.com Mike Anthony SCE 714 895-0337 Mike.Anthony@sce.com Tod Sword SCE 310 508-2166 Tod Sword@sce.com Mike Nuby SCE 909 357-6125 Michael.Nuby@sce.com Mike Bushey SCE 714 934-0876 Michael.Bushey@sce.com Eddie Marquez SCE 714 973-5619 Eddie.Marquez@sce.com Amy McNulty IRWD 949 453-5634 mcnultvQirwd.com Mark Tettemer IRWD 949 453-5592 tettemer(a)irwd.com • Cheryl Slobodian CMTC 310 263-3017 Cslobodian@cmtc.com Kirk Prather CMTC 310-984-0219 kprather(a)cmtc.com Kristine Pearce CMTC kpearce(o)cmtc.com Jim Gilbert CMTC icilbert(ftmtc.com Jerry McNair CMTC 909 226-6717 imcnair(a)cmtc.com Bob Ghirelli OCSD 714 593-7400 rahirelli(o)ocsd.com Mahin Talebi OCSD 714 593-74-10 mtalebi@ocsd.com David Clay IBEW Union 626 454-4393 Rafi Mor Jazz 949 435-8192 rafimna towersemi.com Dale Bogan Jazz 949 435-8034 dale bogan(aiazzsemi.com Melinda Jarrell Jazz 949 435-8181 melinda iarrell(optower-usa.com Nabil Alali Jazz 949 435-8600 nabil alali(a�iazzsemi.com Carolyn Follis Jazz 949 435-8134 carolvn folis(a)iazzsemi.com Confidential -24- 3/3/2009 t` JAZZ RED TEAM ECONOMIC INCENTIVE PROPOSAL MARCH 4, 2009 Metropolitan Water District Industrial Process & Irrigation Improvement Programs Team Organization: Metropolitan Water District (MWD) Program Title: Industrial Process & Irrigation Improvements Description: MWD will pay an incentive of $3/1,000 gallons of water saved. Information for it can be found at: httv://www.bewaterwise.com/WSPP.html Implementation Cost: Free audit to determine potential improvements. Cost depends on improvement project. Delivery Timeframe: Unknown Jazz Involvement: Unknown Team Involvement: MWD, MWDOC. IRWD, OCSD Savings/Value to Jazz: $3 per 1,000 gallons of water saved. Estimate 2,000,000 gallons saved provides a $6,000 incentive to offset improvement project costs. Disclaimer: All proposal items and dollar figures are based on RED Team members "best guess" estimates prior to receiving feedback from Jazz to serve as a draft incentive proposal for discussion purposes only. These estimates and dollar figures are not considered binding until formal agreements and contracts have been arranged between each RED Team organization according to program criteria, laws and regulations. 18 h t a JAZZ RED TEAM ECONOMIC INCENTIVE PROPOSAL MARCH 4, 2009 Recycled Water RED Team Organization: Irvine Ranch Incentive Program Title: Recycled Water Description: The use of recycled water for industrial applications such as for cooling tower make-up is available at 40% less than potable water. Very crudely, assuming the cooling tower demand is 150 acre-feet per year, Jazz could save approximately $25,000 annually by converting to recycled water. Cost: Jazz on -site costs. IRWD's off -site costs. Delivery Timeframe: Unknown Jazz Involvement: Assess what changes would need to be made to its on -site systems and chemical applications to accommodate its use. RED Team Involvement: IRWD, OCSD, Metropolitan Water District of So.Cal. to Jazz: Estimate at Disclaimer: All proposal items and dollar figures are based on ICED Team members "best guess" estimates prior to receiving feedback from Jazz to serve as a draft incentive proposal for discussion purposes only. These estimates and dollar figures are not considered binding until formal agreements and contracts have been arranged between each RED Team organization according to program criteria, laws and regulations. 19 JAZZ RED TEAM ECONOMIC INCENTIVE PROPOSAL MARCH 412009 Water Efficiency RED Team Organization: Irvine Ranch Water District Incentive Program Title: Water Efficiency Description: IRWD audit of the irrigation system and the interior of the facility. Implementation Cost: Unknown Delivery Timeframe: Unknown Jazz Involvement: Facilities staff RED Team Involvement: IRWD, OCSD, Metropolitan Water District of So.Cal. Savings/Value to Jazz: $1.07 =$& per ccf (100 cubic fee or 748 gallons) saved. Estimate 2,000,000 gallons (2,673 ccf) saved @ $1.074 per ccf = $}&0992.860 + annually. Disclaimer: All proposal items and dollar figures are based on RED Team members "best guess" estimates prior to receiving feedback from Jazz to serve as a draft incentive proposal for discussion purposes only. These estimates and dollar figures are not considered binding until formal agreements and contracts have been arranged between each RED Team organization according to program criteria, laws and regulations. 20 IL JAZZ RED TEAM ECONOMIC INCENTIVE PROPOSAL MARCH A, 2009 RED Team Organization: IRWD & MWD Incentive Summary Incentive Program Title Savings/value to Jazz Recycled Water MWD Improvements Water ieney-Efficiency $25,000 annually $6,000 incentive $4-0-,M2 860 annually Total: $35;00033.860 annually plus Incentives Disclaimer: All proposal items and dollar figures are based on RED Team members "best guess" estimates prior to receiving feedback from Jazz to serve as a draft incentive proposal for discussion purposes only, These estimates and dollar figures are not considered binding until formal agreements and contracts have been arranged between each RED Team organization according to program criteria, laws and regulations. 21