i

Environmental Protection and Emergency Response Pro- grams

Development Agreement

The City of Berkeley Bayer Corporation

Annual Report 2008 ii Environmental Protection and Emergency Response Pro- grams

To Ou r Co m m u n i t y

On behalf of all our employees at Bayer HealthCare’s Berkeley site, I am pleased to present the 16th annual report on our 30-year Development Agreement (“DA”) with the City of Berkeley.

Bayer is an inventor company, with a hundred-year history of major discoveries and innovations. Perhaps it is no surprise, then, that we entered into this rare public/­private partnership. The DA gives the City a clean manufacturing facility, producing the most advanced protein-based medicines and operated by a company making a long-term investment in the community as well. Bayer receives the streamlined site development processes that enable such major investments.

Both sides can be very proud of the results. Since 1992, Bayer has become the largest for-profit employer in Berkeley, and the Bay Area’s second-largest in biotech. The city has benefited through the nearly $14 million Bayer has contributed through the DA— but it doesn’t stop there.

In 2008, Bayer paid over $2.6 million in property taxes alone. Our employee volun­ ii teers served as after-school tutors, repainted homeless shelters, and participated in walks, bike rides, and wine tastings to support our patients. Local grants — over $435,000 in 2008 — have continued our leadership with Biotech Partners at Berkeley High School and helped build the YMCA’s downtown Teen Center. A major grant to the Math, Engineering, and Science Achievement (MESA) center at Cal State East Bay helps recruit women and minorities into the sciences. In December, Bayer hosted its first West Coast Science, Technology, Engineering, and Math (STEM) Forum in San ­Francisco. Our stringent environmental programs won recognition including the ­coveted ISO 14001 rating for eight straight years. We recycled 4.8 million pounds of waste in 2008 — an 86% reduction rate!

Bayer’s three East Bay facilities are at the center of our company’s worldwide biotech research and manufacture, and the medicines we make are an important part of our global portfolio. Our product diversity — ranging from Bayer aspirin to the contra­ ceptive Yasmin to advanced medicines for renal cancer and other diseases — brings us confidence and cautious optimism even in these times of economic turmoil.

The medicine we make here at 800 Dwight Way is Kogenate, a clotting factor that allows people with hemophilia to lead near-normal lives. Our Emeryville plant makes Betaseron, another protein-based drug which works by interfering with the destruc- tive autoimmune response that is multiple sclerosis. Complex protein therapeutics hold immense promise for treating or curing some of our most dreaded diseases.

We are proud to be an inventor company, and we are proud to play a central role in the innovative city where we do business. This DA is one local way in which the people of Bayer remain dedicated to “Science for a Better Life,” both for our patients and for our The employees of Bayer communities. HealthCare at Berkeley proudly display a year’s production of Kogenate, Joerg Heidrich Bayer’s biotech treatment Senior Vice President and Global Head, for hemophilia A. Product Supply-Biotech Berkeley Site Head Bayer HealthCare, LLC iv Environmental Protection and Emergency Response Pro- grams

contents

1 introduction

3 Site Development 2008

11 Site-Based Mitigations and Programs iv 25 Community Support Programs and Payments

53 Beyond the Development Agreement “The Berkeley Model” of ­Community Support

61 Appendix: Exhibit H

83 index

84 Acknowledgments vi 1 Environmental Protection and Emergency Response Pro- grams

In t r o d u ct i o n

“[Bayer] is engaged in the business“[Bayer] of developing, is engaged manufacturing in the business and of distributingdeveloping, manufacturinghuman health and distributing human care products and has been conductinghealth this care business products for and more has than been 70 conducting years . . . withinthis business the City. for more than 70 years . . . within . . . Typically, this requires a developmentthe City. process. . . Typically, with an this average requires time a development frame of 10–12 process years with an average time frame of and an average investment of in 10–12excess ofyears $200 and million. an average As a consequence,investment of long in excess range of planning $200 million. is As a consequence, long mandatory for business, financial,range and planning competitive is mandatory reasons.” for business, financial, and competitive reasons.”

—De v e l o p m e n t Ag r e e m —D e n te, v 1992, e l o p m p ea ng te A4 g r e e m e n t , 1992, p a g e 4

In 1992, the City of Berkeley and Bayer (then Miles, Inc.) signed an historic 30-year Development Agreement (DA) that provided the company consistent and streamlined site development permit processes in return for a broad array of mitigations for the b­enefit of the city.

The DA was the culmination of over a year of negotiations, with the City ­recognizing vi the value Bayer could bring as employer, economic engine, scientific innovator, and community leader—and understanding that this international company could contem- plate such a major investment only if it could secure the reliable “long range planning mandatory for business, financial, and competitive reasons.”

The Bayer facility has been core to Berkeley’s economy for over a century. The Develop- ment Agreement was instrumental in making Bayer core to the community as well. In the sixteenth year of the 30-year agreement, we can appreciate the mutual benefits the DA has brought:

• Today’s 45-acre site exemplifies the clean, streamlined look of high tech industry in the 21st century. In 1992, the original site comprised 30 acres with the former Cutter Laboratories at the center of a collection of antiquated factories.

• Bayer today is the largest for-profit employer in Berkeley, with 1,354 permanent employees including eminent scientists as well as nearly 500 members of the Inter­ national Longshore and Warehouse Union, Local 6. Our employees come from sixty countries, speaking 35 languages. On a typical day the Berkeley site also employs an average of about 100 short-term contractors.

• With the acquisition in 2007 of research and manufacturing facilities in Emeryville and Richmond, Bayer has become the second-largest biotechnology employer in the Bay Area, and stands at the center of biotech research and development for Bayer worldwide. Bayer’s biotech protein drug portfolio is currently the world’s the sixth largest.

• “Mitigation payments” that began with the DA have evolved into a vibrant program of local Corporate Social Responsibility which includes philanthropy, employee volunteerism, and environmental stewardship. Bayer has emerged as a good neighbor and local leader on issues of shared importance including economic and workforce development, environmental protection, and public education (see “Beyond the Development Agreement, page 53). 2 3 Environmental Protection and Emergency Response Pro- grams

We are proud of the role Bayer plays in Berkeley’s economic and civic life. Our ­continuing development as the leader of Bayer’s global biotech research and product supply relies on the streamlined site development guarantees of the DA. Truly, the DA stands as one of California’s most creative and successful public/private partnerships. Site Development 2008 About this Report

This annual report is required by Government Code Section 65865.1, Article 4 of the Development Agreement, and Sections 7 and 8 of the City Development Agreement­ Procedures. It presents a summary of DA requirements and an update on Bayer’s ­compliance for the calendar year 2008.

In 1999, Bayer and the City signed a First Amendment to the original Development Agreement; implementation details for 2008 are also presented in this annual report.

2 Previous annual reports, a copy of the 1999 First Amendment, and the report to the City Council summarizing the first ten years of the Development Agreement can be found in the City Clerk’s office or by contacting the City Manager’s office.

Development Agreement Payments Made (without CPI adjustment)

Year Total Payments 2008 $ 832,978.75 2007 $ 692,222.00 2006 $ 619,648.62 2005 $ 499,071.71 2004 $ 551,635.78 2003 $ 1,032,157.00 2002 $ 815,040.00 2001 $ 1,170,591.00 2000 $ 1,204,052.00 1999 $ 928,004.00 1998 $ 577,484.00 1997 $ 612,048.00 1996 $ 1,058,399.00 1995 $ 630,358.00 1994 $ 991,975.00 1993 $ 977,270.00 1992 $ 728,186.00 TOTAL $ 13,921,120.86 4 5 Environmental Protection and Emergency Response Pro- grams Site Development 2008 d e v e l o p m e n t a g r e e m e n t a r t i c l e 3 a n d e x h i b i t s c, d, a n d e a n d 1999 f i r s t a m e n d m e n t

“The broad scope of the long-range site development program contemplated by [Bayer], combined with the long-term planning horizon needed for the development of new pharmaceutical products, necessitates a reciprocal long-term commitment by City to provide a sufficient degree of certainty in the land use regulatory process to justify the massive financial investment associated with the Project.”

—De v e l o p m e n t Ag r e e m e n t , p a g e 5

Bayer has made a major investment in its Berkeley site since 1992. Site development to date has earned Bayer a national Urban Design Award of Excellence from the American Institute of Architects. More locally, Bayer has received an Award of Excellence for the design of manufacturing Building 60 from Berkeley Design Advocates.

4 Site development plans are driven by Berkeley’s status at the center of Bayer’s compre- hensive, global biotech research and manufacturing headquarters on the West Coast. In 2008 the Berkeley site accommodated all steps in the biotech operations process including product engineering and process development, procurement, cell fermenta- tion, purification, sterile fill/freeze drying, packaging, warehousing, rigorous quality assurance and quality control, marketing and sales, and corporate administration. Square Footage Developed by Use and Location

Product Research & Total for Year Manufacturing Development Utility Administration Year

s q . f e e t s i t e s q . f e e t s i t e s q . f e e t s i t e s q . f e e t s i t e 2008 0 0 0 0 0 2007 0 0 0 0 0 2006 0 32,346 B66 3,200 B62A 0 35,546 2005 0 0 0 0 0 2004 0 0 0 0 0 2003 0 0 0 0 0 2002 0 84 B1 0 0 84 2001 0 0 0 0 0 2000 0 0 0 46,580 B2 46,580 1999 0 0 0 0 0 1998 0 0 0 839 B2 839 1997 0 0 0 0 0 Building SC5-B47A, the large 1996 31,783 B3 0 0 0 31,783 blue warehouse that stood 1995 106,537 A1, A2 0 6,730 C2 0 118,733 along Seventh Street long 5,466 C3 before Bayer bought the 1994 20,485 A3 0 0 0 20,485 property, was demolished in 2008, in full compliance 1993 2,430 A3 0 0 0 4,197 with dust suppression and 1,767 B3 other public health and safety 1992 13,060 B2 0 3,600 B3 0 16,660 regulations. The building was 100% recycled (see page 16). Total Square Footage Developed to Date Under DA 274,907 6 7 Site Development 2008

Si t e De v e l o p m e n t i s a Co m p l e x Pr o c e ss As the Development Agreement anticipated, specific planning for long-term facilities needs is complex, and constrained by a number of factors:

• The unpredictable and rapid developments in biotech research and production ­techniques—driven by regulators, competitors, and the scientific and technological breakthroughs that define the industry;

• The competition for resources from a parent corporation budgeting for facilities ­operating through 350 companies on five continents;

• The length of time required to bring new research and manufacturing buildings into compliance with strict technical and regulatory imperatives, balanced against the need to respond quickly to changes in the field. In the fast changing context in which today’s biotech company operates, enormously expensive buildings may be obsolete within just one or two decades. 6

Lo n g -T e r m Si t e De v e l o p m e n t Go a l s Bayer’s Site Master Plan identifies a continuous reconfiguring of the site to meet four key long-term goals:

• improved logistics: the site currently includes facilities that are not located for functional efficiencies or logistics; operations that are fragmented, with related staff scattered across the campus; and circulation patterns that do not create “a safe, inviting, collegial atmosphere.”

• better efficiency: buildings which are beyond their useful life or no longer meet current functional requirements should be replaced in appropriate locations.

• higher employee satisfaction through the provision of amenities such as physical fitness and daycare centers.

• improved visual appeal, both for employee recruitment and retention, and to present the appearance of a modern, successful healthcare company to the community. Version: 14.0,CURRENT,dmReleased | Revision: 13 / Approval History: 2/2/2009 9:28:33 AM - Released Joe Runyon (mllwt) [E S Runyon]

Si t e De v e l o p m e n t i n 2008 Although no additional square footage was developed on the Berkeley site, significant improvements were made in 2008:

• Building SC5-B47A— the large blue warehouse along Seventh Street which Bayer in­herited from previous owners — was demolished. The site has been landscaped and a high-quality perimeter fence was installed along Dwight Way to just north of Parker Street, and along Dwight from Sixth to Seventh Streets. This area is now an employee parking lot; long-term plans are to construct a research and administrative building here.

Print Date: 2/2/2009 - 9:46:31 AM 8 9 EnvironmentalSite Development Protection 2008 and Emergency Response Pro- grams

• The third five-year lease for a portion of Parking Lot E, on Dwight at Eighth Street, expired on December 31, 2007. After substantial public concern was expressed about the loss of these 65 spaces, and after reevaluating the company’s own impending construction plans, Bayer found itself able to extend access to this section of Lot E to the City for an additional two years, to April 7, 2010. This will allow time to pursue a 2002 City Council resolution that City staff “research alternative parking in the neighborhood.” Bayer also improved landscaping and maintenance in Lot E.

• Bayer secured the permits necessary to proceed with a $2 million structural and architectural rehabilitation of a leased building at 921 Parker for office and warehouse use. While this building is not located on the campus covered by the Development Agreement, its use will be in conjunction with the use of the DA property. After the permits were secured, the company underwent a global restructuring and construction has been postponed until, most likely, some time in 2009.

• In October, 2008, Bayer’s state-of-the-art Sterile Filling Facility was given licensing 8 approval by both the European Medicines Agency and the United States Food and Drug Administration. This project, one of the most advanced fill facilities for biologics globally and also one of the most highly automated in the San Francisco Bay Area, increases the production capacity for Kogenate. This building is not on the campus covered by the Development Agreement, but it is immediately adjacent on the South Properties acquired by Bayer in 1999, and its use relates directly to property under the DA.

• A site-wide signage project was completed that allows Bayer to provide patients and other visitors with a clear and complete understanding of operations in some of our key production buildings. We have conducted site tours this year for several groups of local students as well as the German legislature, Assemblywoman Nancy Skinner, Councilmember Darryl Moore, and patient advocacy groups.

In 2009 or 2010, foreseeable site development includes the demolition of ­Building 28/28A, which formerly housed research animals and no longer meets functional requirements. We do anticipate moving into 921 Parker in 2009, and are pursuing plans to provide the employee child care facility as originally identified in the DA. 10 11 Environmental Protection and Emergency Response Pro- grams

“Among other public benefits, the Project will enable the preservation and enhancement of job opportunities, the continued productive use of industrial property in an area where many such properties are underutilized or vacant, the expansion of the City’s property tax base, the provision of needed public infrastructure and the provision of a variety of community programs. . . . These benefits would not be available in the foreseeable future except through Site-Based Mitigations the mechanism of a long-term development agreement.” and Programs —De v e l o p m e n t Ag r e e m e n t , p a g e 5

12 Pu b l i c i n f r a s t r u c t u r e 13 Aquatic Park 13 Traffic Improvements 13 Sanitary and Storm Sewer Improvement Program 10

14 En v i r o n m e n t a l p r o t e c t i o n 15 Water and Energy Conservation 16 Surface Water Run-Off 16 Soil and Groundwater Monitoring Program 16 Dust and Noise Suppression

17 Em e r g e n c y p r e p a r e d n e s s p r o g r a m s 17 Risk Management Program (CalARP and RMP) 17 Emergency Preparedness

20 Tr a n s p o r t a t i o n d e m a n d m a n a g e m e n t p r o g r a m 21 Ride Sharing Programs for Long- and Medium-Distance Commutes 22 mass Transit 22 Short-Trip Reduction Programs 23 Alternative Transportation 12 13 Site-Based Mitigations and Programs

Site-Based Mitigations and Programs

Public Infrastructure Public Infrastructure e x h i b i t e, p p . f 3-5 a n d e x h i b i t g-5 e x h i b i t e, p p . f 3-5 a n d e x h i b i t g-5

The Development Agreement requires of Bayer specific improvements to public ­infrastructure in the surrounding neighborhood to mitigate the impacts of the com- pany’s site development. Since 1992, Bayer has funded nearly $1.6 million in public improvements, including:

• Installation of traffic signals along Seventh Street at Parker Street and Heinz Street (shared total cost with City, 50/50)

• Intersection improvements at Seventh Street and Ashby Avenue (split cost with City)

12 • Various sidewalk and curb repairs and traffic flow improvements along Seventh Street Aq u a t i c Pa r k and Dwight Way Funds were used to remove weeds and aquatic vegetation in the lagoon. • Landscaping along Seventh Street — upgraded in 2008 with demolition of “the blue box” Tr a f f i c Im p r o v e m e n ts • Replacing surface drainage and subsurface piping along Dwight Way between Fourth Proposals were made but no funds were formally requested by the City for Traffic and Seventh Streets Improvements in 2008. • Improvement projects and annual maintenance of Aquatic Park including Habitat Restoration Project, Children’s Playground, Hydrology Improvement Pan for Aquatic Park Lagoon, and improvements to the park entrance Sa n i t a r y a n d St o r m Se w e r Im p r o v e m e n t Pr o g r a m Bayer reports water consumption and wastewater discharges to the East Bay ­Municipal Utilities District on a quarterly basis, and reports semi-annually that it does not ­discharge cyanide-containing compounds.

Table of Mandated Fees Paid and Funds Remaining 2008 On April 7, 2008, Bayer employees identified a leak in a City-owned sewer line that runs through company property. They contacted the City immediately, and worked with the Division of Environmental Health to test, communicate, and resolve the Mandated Annual Fee Project Funds Project with 2008 cpi Paid 2008 Remaining from DA problem. A section of Aquatic Park was closed to the public for two days, until the site could be deemed uncontaminated. On January 14, 2009, Bayer staff met with the City’s Aquatic Park—G-5-D, 1999 Amendment Department of Public Works to arrange access to the company’s site so that the City Exhibit 10: improve water quality, can perform quarterly inspections of sewer lines that run through Bayer property in landscaping; provide annual maintenance. $5,905* 0 n/a order to prevent such back-ups in the future.

Transportation Demand Management— Bayer notified the East Bay Municipal Utility District in July, 2008, that three small G-6A4: “for annual review and approval wastewater discharges were possibly outside of the permit limitation for pH. During by the City.” $55,000 (estimated) $446,115 n/a routine maintenance the pH probe device had been replaced incorrectly and had failed

Traffic Improvements—an initial fund of to monitor accurately until properly replaced. The discharges were not hazardous waste $1.5 million was established for areawide and the problem was corrected immediately. traffic improvements, to be directed by the City over the 30-year term of the DA n/a n/a $490,033

* This payment was missed in 2008 due to a bookkeeping error; it will be made good in 2009. 14 15 Site-Based Mitigations and Programs

Environmental Protection e x h i b i t f, p p . 6-7 a n d e x h i b i t g-8

No payments were required through the Development Agreement in 2007.

The Berkeley facility’s environmental excellence is the result of the ongoing vigilance and dedication of our on-site, professional teams, working with City staff and regulators at every level of government. With this focus, Bayer’s Berkeley site attained an all time high waste diversion rate of 86 percent in 2008.

Recognition for Environmental Protection 2008

• Bay Area Air Quality Management District — “Spare the Air” 2008 employer participant

• California Integrated Waste Management Board — 2008 Winner, Waste 14 Reduction Awards (WRAP) Program (11th consecutive year) for “outstanding efforts to reduce non-hazardous waste” In 2008 Bayer installed recyclable ­disposable plates and cutlery in • ISO 14001 International Standards — One of the company’s proudest achieve­ ­Berkeley’s employee cafeteria. ments in the environmental field is its ongoing certification, since 2001, through the Environmental Management Standard ISO 14001. This comprehensive and a t e r a n d n e r g y o n s e r v a t i o n integrated program is the most stringent set of environmental management principles W E C in the world, developed by the International Organization for Standardi­zation, a Bayer maintains ongoing conservation efforts, both on site and by providing employees non-governmental agency headquartered in Switzerland with an international body with information and encouragement to conserve at work and at home. of environmental experts. Certification entails not only compliance with existing standards, but demonstrable, continuous improvement in environmental management Water conservation efforts at the Berkeley campus resulted in savings of 30,000 gallons performance over time. Berkeley was Bayer’s first site in the United States to meet per day, mostly accomplished by system improvements. This is a net savings of over 10% these rigid performance standards. per year, well ahead of the East Bay Municipal Utility District’s requested conservation target of 5% for 2008.

In August, 2008, metal halide lighting was replaced in warehouse B47 with fluorescent Compliance with Environmental Protection Laws, Regulations, lighting using individual motion sensors. Florescent T-8 lamps with motion sensors were and Standards installed in five utility rooms housing mechanical equipment. These lamps demand less wattage and also reduce the necessary hours of operation. Estimated annual power Bayer is governed by, and vigilantly pursues, compliance with all applicable federal, ­savings are 219,658 kwh, with a reduction in carbon dioxide emissions of 115,153 pounds state, and local environmental regulations. per year. In August, 2008, Bayer was inspected by the City’s Toxic Management Division and the California Department of Toxic Substances Control. The facility was found to have “good environmental programs,” and asked to correct some minor issues, such as clean- Su r f a c e Wa t e r Ru n -o f f ing a secondary containment area with dried residual salts. This correction was made in Bayer continuously monitors the quality of surface water runoff, as required by the four days, well ahead of 30-day compliance schedule. Storm Water General Industrial Permit issued by the State Water Resources Control In September, 2008, Bayer submitted a nonemergency hazardous substance release Board. report relating to the discharge of isopropyl alcohol to the wastewater treatment Storm water conveyance systems are visually inspected on a regular basis to ensure ­system, which then discharges to the community wastewater collection and treatment that all discharges are authorized and that the quality of authorized non-storm water system. No impact on the environment was apparent or expected. The practice has discharges meets permit conditions. Monthly inspections during the wet season are been discontinued, and procedures and training are in place to support an alternative conducted, along with sampling of storm water during two storm events. A report of disposal method. the findings for July 2007–June 2008 was submitted to the Regional Water Quality Control Board. 16 17 Site-Based Mitigations and Programs

Emergency Preparedness Programs

So i l a n d Gr o u n d w a t e r Mo n i t o r i n g Pr o g r a m R i s k Ma n a g e m e n t Pr o g r a m (Ca l ARP a n d RMP) All soil generated by construction activities is tested prior to disposal. The formal The substantial refrigeration needed for pharmaceutical production at Bayer’s ­Berkeley ground water monitoring program has been discontinued with the City’s approval, site is provided by ammonia, which is the most environmentally sound refrigeration as the semi-annual monitoring was not generating useful data. Bayer has submitted technique but can pose danger in the event of an accidental release. An important ­applications for final well closure, which will proceed following regulatory approval ­component of Bayer’s Risk Management Program is the community notification and from Berkeley’s Toxics Management Division. warning system for an accidental ammonia release. This system, which also issues instructions for sheltering, continued to be tested at noon on the first Wednesday of each month throughout 2008.

Du st a n d No i s e Su p p r e ss i o n Bayer has experienced no release from the ammonia refrigeration facility since Dust and noise were carefully monitored during the demolition of the Inter-Modal installation. facility building SC-5. The concrete floor was recycled, crushed and returned to the Every five years, the City of Berkeley performs a two-day audit of Bayer’s Risk Manage- ground as fill material. The rest of the building was 100% recycled, as metal and ment Program (California Accidental Release Prevention Program). The most recent ­Alternative Daily Cover at the Richmond Sanitary fill site. audit was completed in December, 2007. During 2008, the “Final Determination of 16 Findings” report was received from this audit, which included recommendations to update our Risk Management Program and Integrated Contingency Plans and make a few additions to our operating and maintenance procedures. Later in 2008, submittals were provided which resolved each of these findings.

Em e r g e n c y Pr e p a r e d n e ss As detailed in the Development Agreement, Bayer maintains a comprehensive ­Emergency Response Team and program on site, and also works closely with the City on annual training, program development, and sharing of resources. This active and ­productive relationship with the Berkeley Fire Department includes the extension of frequent invitations to participate in trainings held at the Bayer site, which provides opportunities not always available to City employees and which forges lasting bonds that increase communication and shared effectiveness should crisis strike.

In 2008, Bayer invested approximately $55,000 for outside costs of training, equipment purchase, and maintenance to support the company’s emergency response program. In addition, 3,100 hours of Emergency Response Tearm (ERT) employee time were devoted to training and exercises. A notable accomplishment in 2008 was the updating by the Emergency Response Team of the oversight procedure that outlines the team’s structure and training requirements. This revised procedure will make it easier to plan and execute training and drills in the future. 18 19 Site-Based Mitigations and Programs

Emergency Response Training Activities 2008 Bayer’s ERT consists of 19 employees from all major departments and from all three shifts. ERT members are selected after passing a Bayer-approved strength and physical Quarter Activity agility test and throughout the year receive extensive, specialized training in five key General Activities specialties: 1 Tested and qualified 19 ERT members and trainees on strength, agility. • Rescue Systems-1 1 Incident Command Structure: 6-hour drill including “table top” and live drills to practice forming ­emergency Incident Command Structure. • Confined Space Rescue 2 Low-Angle Rescue: 12-hour training for 10 ERT members on the use of ropes to effect rescues. Built mechanical • Fire Fighting advantage systems to safely lower rescuers to simulated victims. Used the system to lift out both rescuer and victim. • Hazardous Materials Response 3 Annual Equipment Maintenance and Inspection: All emergency response equipment is inspected and maintained annually, and ERT members receive refresher training on the use, care, and refilling of SCBA (Self-Contained • Emergency Medical Technician ­Breathing Apparatus) units.

In 2008, Bayer continued its strict practice of assuring the medical fitness for duty of Rescue Systems-1 all active ERT members. The program, administered by the company’s Occupational 2 Rescue Systems-1: Full 40-hour training class wherein 8 ERT members learned all aspects of this basic rescue Health Department, requires 100% participation in medical screening surveillance to 18 course. The course included building shoring systems to support buildings weakened by earthquakes, and use of assure compliance with National Fire Protection Association Guidelines. These guide- hydraulic systems to lift heavy objects such as collapsed walls. lines exceed those required by public agency fire service personnel. Confined Space Rescue 1 Training Drill: 6-hour drill including confined space rescue and fire fighting skills. 3 Hands-On Training: 32-hour training for entire ERT team, including victim “packaging”, rope courses, use of air monitoring devices and mechanical and rope systems. ERT members qualified for completing the course by ­performing two simulated rescues—one from a side entry vessel, the second from a top-entry tank.

Fire Fighting 1 Industrial Fire Fighting/Fire Brigade Training: 4-day refresher training for 7 ERT members, ­culminating in all-day “Live Fire” training at the San Francisco Fire Department’s Treasure Island training facility. 4 Annual Bayer/Berkeley Fire Department Joint Emergency Exercise: As required by the Development Agreement, on October 3, 2008 teams of first responders from Bayer’s ERT and the Berkeley Fire Department engaged in a full-day firefighting simulation in Building SC-5, the former spare parts warehouse. Teams advanced firefighting lines into the structure and discharged water onto simulated fires. Teams from Bayer and BFD performed numerous forcible entry drills into locked rooms and closets. Towards the end of the training the building was filled with artificial smoke so that the teams couldpractice ­ locating victims under poor visibility circumstances.

Hazardous Materials Response 2 Ammonia Emergency Training: 6-hour drill simulating emergency at Bayer’s ammonia-based ­refrigeration facility, using Level-A hazmat suits with corresponding sensors and equipment and ­practicing physical decontamination. 1 Hazardous Materials Technician Course: All ERT members attended this 8-hour refresher course, which culminated in a full-scale, Level A drill.

Emergency Medical Technician 2 CPR Training: All ERT members trained on CPR/AED (Automatic External Defibrillator) use. 3 Refresher Training: ERT members engaged in skills building in Hazardous Materials and EMT in preparation for annual joint drills with the Berkeley Fire Department as required by the Development Agreement. 2 Continuing Education Training: 12 ERT team members attended refresher training on EMT/first medical responder skills. The National EMT Registry requires that ERT members complete 24 hours of refresher training every two Highly trained Bayer employees work closely with years in order to maintain their certification. the City on emergency preparedness and response. 20 21 Site-Based Mitigations and Programs

Transportation Demand Management Program

e x h i b i t f, p. f-5 a n d e x h i b i t g-6 Bayer HealthCare Auto Use Reduction Program 2008 Parking and transportation have long been a concern in west Berkeley and through- Participating out the City. As the local component of its global commitment to environmental Program Bayer Employees Cost ­protection, through the DA Bayer has implemented a multidisciplinary approach with measurable results. Ride Sharing Vanpools (4) 25 daily Over $50,000 The City and Bayer estimated that the vehicle use reduction program they agreed employee subsidy to in the Development Agreement would cost the company about $36,000 per year, plus lease cost not including an annual adjustment for inflation. In 2007, Bayer spent $434,674 on an Alameda County Guaranteed award-winning program that constantly strives to minimize automobile usage through Ride Home Program 108 for year n/a education, incentives, and the provision of diverse transportation alternatives. Carpools 72* n/a MASS TRANSIT BART Shuttle 130 daily $106,348 subsidy Programs Required through the Development Agreement plus lease cost 20 • Hire a trained transportation coordinator Commuter Checks 421 enrolled $268,654 ALTERNATIVE TRANSPORTATION • Reduce short trips: provide on-site eating facilities, dry cleaning, other services Bicycling 28–32 per day n/a • Submit a transportation plan for annual review by the City including results of an Telecommuting average 35 annual survey of employee travel one day per week n/a • Establish an employee shuttle to BART at morning and evening peak travel hours, Total Cost 2008 $375,002 + which can be shared with other local employers * This figure is for registered carpoolers only, and does not include unregistered carpoolers who commute • Reimburse the City for costs of an on-street parking survey every five years, to at times when finding on-site parking is not a problem and who therefore have not requested preferential monitor the use of on-street parking by Bayer employees parking.

• Construct two bus shelters at Seventh and Dwight

• Reimburse the City for development of a West Berkeley Bike Route Plan and i d e h a r i n g r o g r a m s f o r contribute to implementation costs of signs and striping R S P Lo n g - a n d Me d i u m -Di st a n c e Co m m u t e s Bayer constantly strives to improve its comprehensive trip reduction programs, and Vanpools: Bayer provides employees with four daily vanpools, two of which ­originate to support the City and other West Berkeley businesses as they strive to reduce in Solano County, one in Santa Clara County, and a new one established in 2008 ­serving greenhouse emissions and minimize automobile traffic. The company’s Employee San Ramon and eastern Contra Costa County. Non-employees working at Bayer (i.e., Transportation Coordinator and its Development Agreement and Community Rela- contractors, temporary workers, consultants, and student interns) are also ­encouraged tions Manager lead these efforts. to participate in the program, and vacant seats are made available to employees of Bayer’s Transportation Coordinator works with agencies including the 511 Ridematch nearby businesses. In addition to leasing the vans, Bayer further subsidizes over 25% of Service, Bay Area Park & Ride, and the Bicycle Friendly Berkeley Coalition to design, employee costs for each trip, and provides preferential on-site parking. Through Bayer’s market, and provide employee incentives for maximum participation in a rich array of participation in the Alameda County Congestion Management Agency, a Guaranteed trip reduction programs. A robust communications program educates employees from Ride Home is provided to vanpool users who need one at the end of the day. their first day on the job. All commute alternative information and forms are available Carpooling: Since 1994 Bayer has provided preferential, reserved parking for carpool- on Bayer’s employee intranet website. ers. Employees seeking carpool matches are served directly by Bayer’s Trip Coordinator, and also referred to 511.org for a broader list of potential matches. Non-Bayer employees working at Bayer are eligible and encouraged to participate in the program. 22 23 Site-Based Mitigations and Programs

M a ss Tr a n s i t Bayer encourages employees to choose mass transit with a number of incentives:

BART Shuttle: At a cost of $93,420 in 2008, Bayer supports the Berkeley Gateway Transportation Management Association, which manages the West Berkeley shuttle to the Ashby BART station. This shuttle, which operates during peak morning and afternoon commute hours, is also available to local residents and employees of other businesses. Bayer’s Transportation Manager works closely with the shuttle manager to ensure the needs of all shuttle commuters are being met, and in 2008 the company’s Community Relations Manager resumed the company tradition of serving on the Board. Bayer hosted its annual “Bike to Work Day” on Numerous conversations throughout 2008 addressed the possibility of expanding the May 15, 2008. hours of the BART shuttle as well as introducing biofuels and expanding service to the North Berkeley BART station. In addition, Bayer participated in meetings ­convened 22 by the Mayor to explore consolidation or other increased efficiencies for the ­various ­private shuttle services in the City. Though no such changes have been made so far, Bayer remains actively engaged in efforts to increase shuttle service and improve ­transportation demand management throughout West Berkeley and the entire city. Al t e r n a t i v e Tr a n s p o r t a t i o n In 2007, Bayer also added shuttle transportation for employees coming from the West Bayer continues to encourage employees—and neighbors—to “think outside the car” Berkeley Amtrak station. whenever possible. An additional shuttle carrying employees from the main Berkeley site to leased offices Bicycling: In addition to DA contributions toward an area-wide bicycling plan and at Aquatic Park Center, at Seventh Street near Ashby, was discontinued in the middle of infrastructure, Bayer has installed 42 bicycle lockers throughout the site. The company the year, when most employees were moved back to the main site. (In 2007 this shuttle also sponsors a bicycle fair on Bike to Work Day, an event organized by the Bicycle ran 12 hours per day, and cost the company $132,328.) The few employees remaining at Friendly Berkeley Coalition. In 2008 the fair featured a free bicycle maintenance class APC were served with a more environmentally friendly on-call taxi service fully paid held in cooperation with Solano Avenue Cyclery: in addition to teaching employees how for, including a tip for the driver, by the company. to maintain and improve the performance of their bikes, free tune-ups are provided Commuter Check Subsidies: Bayer provides incentives for employees to choose for all bikes ridden to work that day. Incentive gifts were distributed, including tire mass transit — including AC Transit, BART, and Amtrak — by offering a $60 monthly repair kits, bicycle safety lights, and bells. Additionally, a representative of the Bicycle subsidy through the Commuter Check program. The subsidy is doubled for employees Friendly Berkeley Coalition spoke, giving employees additional information and advice ­residing in distant locations including Sacramento, Stockton, and San Jose. In 2008, on biking to work. average monthly participation in the Commuter Check program was about 246 employ- Walking: Bayer gives each employee who walks to work at least twice a week an ees, with participation peaking in the summer months. annual $75 gift certificate for use at a local ­sporting goods store for the purchase of related items such as walking shoes.

Sh o r t -T r i p Re d u ct i o n Pr o g r a m s Telecommuting: Bayer maintains a company policy of supporting telecommuting options for employees. Some employees telecommute on a regular weekly schedule, As called for in the Development Agreement, Bayer’s site is designed to minimize the while others do so on a less frequent or regular basis. need of employees to engage in short vehicular trips. Features include:

Eating Facilities: Bayer has a large, full-service cafeteria for employees, contractors, and guests.

On-Site ATM, postage stamp purchase and mail drop-off, banking services (through Credit Union), dry cleaning pick-up and delivery. 24 25 Environmental Protection and Emergency Response Pro- grams

Community Support Programs and Payments

27 Ed u c a t i o n 27 Biotech Partners 38 Support for Berkeley Public Schools Grades K–8

24 40 Em p l o y m e n t /Hi r i n g

42 Af f o r da b l e Ho u s i n g

43 Ch i l d Ca r e

45 Hi s t o r i c Pr e s e r v a t i o n a n d Pu b l i c Ar t

46 Co m m u n i t y Su p p o r t Pr o g r a m s —We s t Be r k e l e y Fo u n da t i o n

47 An i m a l Ca r e a n d Us a g e

50 Pe a c e a n d Ju s t i c e Pr o g r a m

Bayer scientists gave Biotech Partners students a real-life glimpse of work in the bioscience industry on Career Awareness Day, ­January 10, 2008. 26 27 EnvironmentalCommunity Support Protection Programs and Emergencyand Payments Response Pro- grams Community Support Programs Education— Thirty Years of Support for Berkeley ­Public Schools The education program is designed to achieve the highest feasible graduation rate of trained skilled technical workers for the positions that will become available at [Bayer], at other and Payments biotechnology companies, and in the health care field.

—De v e l o p m e n t Ag r e e m e n t , p a g e G-1-1

The Development Agreement requires Bayer to contribute to an array of programs representing priorities of the City. What began as a collection of Through the DA, Bayer agreed to 30 years of support for Berkeley public schools, ­mandates has become the backbone of a dynamic community relations ­program. focused particularly on science education. The funding for Biotech Partners at Berkeley The DA has also spurred the company to think and act more deeply on key High School and K–8 science has become a key component of Bayer’s award-winning national Making Science Make Sense initiative. In 2008, the Board of Directors of strategic issues such as workforce development and the kind of employee the Berkeley Unified School District honored Bayer for its “outstanding efforts . . . in engagement that has been proven to boost employee recruitment and retention. ­providing science opportunities for Berkeley students from Kindergarten through 12th In 2008 Bayer engaged with the City in new efforts to strengthen local programs grade, since 1992.” ranging from mass transit improvements and user incentives, to revenue genera- 26 tion and economic development, to support for our local artist community. Bi o t e c h Pa r t n e r s Ex h i b i t G-1, Biotechnology Ed u c a t i o n Tr a i n i n g Pr o g r a m

The Development Agreement was forged when California was near the nation’s ­bottom in public school funding, with science education seeing some of the most appalling shortfalls. This, regrettably, has not improved.

Yet over these 16 years more than 900 students at Berkeley High School, and more recently at Life Academy in Oakland and Oakland Technical High School, have had available to them a focused, effective curriculum that has introduced them to careers in the high-paying biotech industry, and has changed the lives of many.

Biotech Partners was launched in 1992 with a DA-mandated commitment from Bayer to provide $1.1 million over the first five years for program development and imple- mentation. The company guaranteed an additional $25,000 annually for the next five years and in 1999, in the first Amendment to the Development Agreement, agreed to continue funding through 2021. The company also agreed to place a priority on hiring program graduates, and to date has hired 48.

Biotech Partners is one of the most innovative and far-reaching achievements to come out of the Development Agreement. The award-winning program is a unique response to the twin concerns of a City looking to provide its diverse youth popula- Debbi Bellush, Executive Director of Biotech Partners, tion with career opportunities in the face of a waning industrial base, and a high-tech presented the Founders corporation in fierce competition for qualified employees in fields including research, Award to (from left) Fern ­manufacturing, and product distribution. Tiger, State Senator Loni Hancock, and Bayer Sr. VP Joerg Heidrich for their pivotal roles in establishing the program at Biotech Partners’ 15th anniversary gala held on February 19, 2009. 28 29 EnvironmentalCommunity Support Protection Programs and Emergencyand Payments Response Pro- grams

Biotech Partners trains Berkeley High School students, most of whom are economically The DA mandates both specific cash payments and additional outlays in the form of a disadvantaged and not on track to attend a four-year college, for promising jobs at Bayer target number of student internships and other forms of program support, summarized and other companies in the Bay Area’s booming biotechnology industry. A community below. college component leads to a certificate of Achievement in Bioscience — and to career- track employment in an array of high-tech companies. Biotech Partners 2008 Payments Significant Accomplishments: Item DA Payments Required Amount Paid 2008 • California’s high school drop-out rate is 24%, and Berkeley High’s is 14% — but since Biotech Partners began in 1993, 98% of its students have graduated. In the last four General operating support years, every student who completed the program graduated from high school. per DA and 1999 Amendment— Exhibit G1-IB ($25,000 plus 26.9%) $31,725 $31,725 • 71% of the students who began the Biotech Career Institute in the Peralta Community College District in June 2007 completed their certificate requirements Berkeley High Student Summer in May or December 2008. Another 10% are in the process of completion. Since 1993 Internships (Biotech Academy)— the overall completion rate of the community college program is nearly 60% — more Goal of 15 @ $1,000 per DA and 28 than twice the national average of students completing community college certificate 1999 Amendment—Exhibit G1-IIB n/a $28,808

programs. Community College Student Co-Op • Biotech Partners student interns have earned more than $3,000,000 to date. Jobs Program (Biotech Career Institute— Goal of 8 @10,000 • Numerous employers report that Biotech Partners graduates come better prepared 1999 Amendment—Exhibit 1-A9 n/a $88,174 for their positions than graduates coming from four-year universities, noting that they believe this is in large measure due to the program’s pairing of both academic Community College Student Stipends— Paid on sliding scale for needs and on-the-job training. including tuition, books, childcare, Biotech Partners serves approximately 130 students each academic year. Originally and housing per DA—Exhibit G-IAA8 $11,000 $13,959

a partnership with Berkeley High School and Laney College, additional corporate Total DA Payments 2008 $42,725 ++ $162,666 and foundation support has expanded the program into the Oakland Unified School ­District. In the fall of 2008, the program was launched at Oakland Technical High School following a transition from Oakland’s Life Academy. (Bayer funds are not Other Required (Non-Cash) Support ­allocated to the Oakland Unified School District.) Program Status Expenses A significant number of Biotech Academy high school graduates are choosing not to

continue their education by advancing to the Biotech Career Institute at the commu- Career Awareness Conference nity college level. Rather, they are going on to four-year colleges. The fact that so many per DA—Exhibit G1-IID Held at Bayer 1/10/08 $1,721 of these students began the high school program as low academic performers, and often are the first in their families to attend a four-year college, is indeed one of the great Hands-On Summer Training for ­validations of the vision that created Biotech Partners. Biotech Partners Science Teachers per DA—Exhibit G1-IIE No teachers applied 0 Over the 16 years since the founding of Biotech Partners, Bayer’s commitment has grown far beyond the initial requirements—and the program’s successes have far Total Expenses 2008 $42,725 ++ $164,387 exceeded initial expectations. Its participants surpass state averages in high school graduation, college enrollment, and successful careers. They go on to serve as mentors to new generations, and as valuable employees and members of one of the Bay Area’s strongest economic sectors. 30 31 EnvironmentalCommunity Support Protection Programs and Emergencyand Payments Response Pro- grams

Academic Program

Teachers provide focused classroom instruction which is augmented by Biotech A Look at Biotech Partners Graduates 1992–2008 ­Partners with lab assistants, tutors, and staff who provide individualized attention to track and support students’ progress. Total from Berkeley High Graduates completing both high school and B iotech Academy—the H igh S chool C urriculum community college program 135 98 Tenth graders are recruited to enroll in the two-year Biotech Academy which begins in Graduates hired for Biotech jobs* 92 50 their junior year. The curriculum consists of four elective bioscience classes and an additional chemistry class in addition to their basic high school curriculum. Graduates hired by Bayer 48 38 With a strong emphasis on interactive laboratory experiences, the skills-based and industry-informed curriculum shows students the real-world significance of what * Of those graduates who did not go on to seek employment in biotech, the vast majority opted to continue their education at a four-year college. they are learning, and motivates them to stay engaged. Courses include bioethics, and focus on the concepts and skills necessary for employment in bioscience laboratories, ­production facilities, and healthcare settings. Program Summary Scientific skills attained include: 30 Biotech Partners provides holistic support to its students through three main Cell Culture —Percent Solution; Molar Solutions; Media Plate Pouring; Serial components: ­Dilution; Aseptic Technique; Cell Count; Yeast Colony Maintenance; Growth • academic program Curves; Competent Cells • paid internships — Crossbreeding Studies; Electrophoresis; Bacterial • student support Molecular Biology ­Transformation; Restriction Enzyme Digest

Biochemistry —Protein Assays; DNA Extraction; Thin Layer and Column Chromatography

Tools and Equipment —Balances; Pipette Aid & Micropipets; Light Microscope; Hemacytometer; Spectrophotometer; pH Meter

Good Laboratory Practices —Laboratory Safety; Written Protocols; Laboratory Notebook; Technical Laboratory Reports

Essential computer skills such as word processing, presentation, spreadsheet development, and Internet searching

Number of Students Enrolled at Berkeley High

Juniors Seniors Spring Fall Spring Fall 2008 40 29 40* 23** 2007 39 40 38 48 2006 41 39 20 20 1992–2008 Total 930 Biotech Partners 2008 graduate Omar Murray proudly displays his certificate * Of these, eight went on to the Biotech Career Institute at the Peralta Community Colleges, which this to Bayer scientist Glenn Yamasaki, who year is spearheaded by Biotech Partners. supervised Murray during his year-long ** Until the 2008 school year Berkeley High offered two senior Biotech Academy classes, but this year a Co-Op Internship at Bayer. In 2009 large number of seniors entered the program without having participated either in the junior year Yamasaki received a Mentor’s Award classes or in the summer internship. Teachers and Biotech Partners staff recognized that these from Biotech Partners for “sharing his incoming students were struggling, and with the support of the school administration limited the knowledge and skills with young students” number of “new” seniors by ­eliminating one senior class. since 2001. 32 33 EnvironmentalCommunity Support Protection Programs and Emergencyand Payments Response Pro- grams

Biotech Career Institute—the Community College Judges for Posters 2008 High School—Summer Internships John Abrate, Business Banking C urriculum Specialist, Wells Fargo Bank Ahmed Akbar, Lawrence Berkeley Paid internships in biotech, laboratory, and healthcare settings are arranged for every Students begin the community college component immediately after high school National Lab, Biotech Partners qualified program student during the summer before 12th grade. These 20 hour-per- Graduate 2007 ­graduation, combining a 32-hour-per-week “Co-Op Job” with one summer course. Sheilagh Andujar, Principal, week jobs have proven to be key both to attracting economically disadvantaged students ­Students also take a year-long Co-Op Education Seminar which provides tutoring, Oakland Technical High School into this career-track program, and to building their knowledge and experience. Gina Antonini, Field Representative, work skills development, job readiness training, and important life skills training such Governor Arnold Schwarzenegger ­Students are paid $9 per hour—approximately $1,400 for the eight-week period. All as time and money management Jerry Bailey, CEO & Motivational Biotech Academy students successfully completed the paid summer intern program in Speaker, Reach In - Press Out August 2008. In the fall, students reduce their work hours and begin the year’s full course load of Tammy Bailey, Amgen; Biotech Partners Board Member & Graduate one semester each of biology, inorganic chemistry, organic chemistry/biochemistry and 1999 Company supervisor/mentors are trained by Biotech Partners to provide each student microbiology. Students who complete the Institute curriculum receive a ­Certificate Iris Brody-Lopez, CEO, Ryals & instruction in areas including time management, initiative, compliance with good Associates of Achievement in Bioscience which has proven to be an important credential for ­manufacturing/laboratory practices and safety regulations, teamwork, technical and Diane Bosquez, Executive Consultant, employers. Kaiser Permanente & Oakland soft skills development, and record keeping. Technical High School PTSA member Patti Castro, Assistant Director, Many Bayer mentors have been involved in the Biotech Partners program for five or Alameda County Workforce 32 Investment Board more years, and several for a decade or more. All dedicated professionals, supervisor/ Paid Internships Patty Cooper, Executive Director, mentors serve not only as “employers” but also as role models, guides and tutors, often California Biotechnology Foundation Rio Denoga, Director of Microbiology, forming longstanding bonds with their students. Paid internships enhance students’ understanding of the work world and provide hands- Amgen on exposure to the biotech industry as well as critical mentorship support. Calvin Fong, Senior Aide, Berkeley Two written performance evaluations by mentors and a site visit by Biotech Partners Mayor Tom Bates staff are critical tools for providing feedback to students, and can serve as references for Patricia Garcia, U.S. Dept. of Labor Office of Apprenticeship future employment. Number of High School Students in Paid Summer Internships Delfina Geiken, Program Administrator, City of Berkeley Year Total at Bayer* Youthworks Consultant Maya Hiersoux, Posters Ceremony 2008 24 11 Dr. Elaine Johnson, Director, Bio-Link­ National Resource Center 2007 25* 12 Katy Korsmeyer, PhD, President, At the end of each summer a culminating poster competition allows high school interns (7 from Oakland’s Life Academy) Bay Area Biotechnology Education to exhibit what they learned during their internships. Posters are judged by prominent Consortium 2006 33 14 David Manson, Deputy District community members including elected officials, industry and community leaders, and (8 from Oakland’s Life Academy) Director, State Senator Pro Tem program graduates. Families are invited, refreshments are served, and a festive time is 1992–2008 Don Perata Darryl Moore, Council Member, had by all as Biotech Partners recognizes not only the students’ accomplishments and Total 654 265 City of Berkeley successes but also the critical contributions of Biotech Partners’ mentors, teachers, and Duane Poe, Principal, Solutions 4 Communities other supporters (i.e., Bayer and other industry partners, funding partners, etc.). Number of Laney College Students in Year-Long Co-Op Jobs Hon. Winifred Smith, Judge, Superior Court of California, Alameda County Posters 2008 was hosted by Bayer on August 13. Peter Kramer, Ph.D., Director of Manufacturing Sciences for the Berkeley site and a Biotech Partners board ­member, Year Total at Bayer* welcomed students and guests. The keynote speaker was William Wesley, ­Financial 2008 8 7 Education Specialist and Financial Advisor for the Merrill Lynch Global Private 2007 8 7 ­Client Group. The evening included presentation of Certificates of Completion to 2006 5 3 the summer interns, two Mentor of the Year awards, and a special award for depart- ing Berkeley High School Biotech Academy teacher Dr. Elisa Stone. Biotech Partners 1992–2008 and its students were also honored with special proclamations from Governor Arnold Total 240 121 Schwarzenegger and State Senator Pro Tem Don Perata. The City of Berkeley

* Summer internships were also provided in 2008 at the East Bay Municipal Utility District, ­Kaiser ­proclaimed August 13th Biotech Partners Day. Permanente Medical Center Oakland, Libby Laboratories, Inc., and Novartis­ ­Vaccines and Diagnostics. 34 35 EnvironmentalCommunity Support Protection Programs and Emergency and Payments Response Pro- grams

Co-op Presentations 2008 Community College Bioscience Certificate Program— Speakers Forum Presenters critical eye on a variety of outfits modeled by staff, teachers, and program seniors. Life Experiences in the Biotech 2008 Program and Beyond: Lauren Rawlins, Year-Long Co-Op Jobs Resume and Cover Letter Writing: Seniors then share their experiences on appropriate work attire and demeanor. Biotechnician, Bayer HealthCare and Iris Brody-Lopez, CEO, and Reginald Biotech Partners program graduate Biotech Partners students begin their summer Co-Op Job immediately upon high Gates, Staffing Specialist, Ryals & • Biotech Parent Night, designed to increase parental engagement in student Life Experiences: Samantha Brown, Associates Biotechnician, Bayer HealthCare and school graduation, working 32 hours per week; weekly hours are reduced to approxi- Life Experiences in the Biotech achievement. Family members participate in an evening of interactive labs and Biotech Partners program graduate mately 20 during the school year. As with the high school summer internships, students Program and Beyond: Lauren Rawlins, presentations organized by the students that in 2008 included the DNA of Life Experiences and Achieving Biotechnician, Bayer HealthCare and Success on the Job: Kareen Nunally, are paired with a Biotech Partners-trained supervisor/mentor. These jobs closely Biotech Partners program graduate strawberries and making root beer. The evening included presentation of the Senior Certified Biotechnician/ approximate the actual employment experience: students attend staff meetings, receive Life Experiences: Samantha Brown, Spring 2008 Student Merit Awards and teacher recognition awards. Assistant Supervisor in the Media/ Bayer HealthCare employee and Fermentation Department, Bayer regular performance reviews, and gain important exposure to the operational infra- Biotech Partners program graduate HealthCare and Biotech Partners Time Management & Goal Setting: • Throughout the school year, the Biotech Partners Speakers Forum brings program graduate structure of the work environment. Jerry Bailey scientific, educational, and inspirational presentations to students. DNA Applications–CSI Lab Tech­ Study Skills (high school vs. college): niques: Tamas Torok, Microbiologist, Students earn $11 an hour for a total of approximately $12,000 over the course of the Lisa Miller, Classroom Matters Lawrence Berkeley National Laboratory; Biotech Partners Co-op year. Many Biotech Partners students use their earnings to help support their families. Importance of Savings: Chelle Martinez, Inova Credit Union Mentor In 2008, Bayer hired and mentored seven students participating in the Career Institute. Biotech Career Institute—­Community College Goal Setting and Time Management: Overcoming Life’s Biggest Obstacles: Tammy Burns Bailey (and husband Marilyn Lovelace Grant, disabled Support for community college students is even broader as Biotech Partners helps Jerry Bailey), Quality Assurance Senior All students in the 2007–2008 community college class successfully completed their year-long Co-Op student Associate, Amgen and Biotech Life Skills; Resume and Cover Letter its students make the transition from high school to the greater demands of college. Partners program graduate Jobs at Bayer HealthCare and Lawrence Berkeley National Laboratory. 34 Writing: Pat Howard, Employment ­Students visit the Biotech Partners office at the Bayer site for weekly tutoring in all Career Options in Biotechnology: Specialist, BOSS/Building Dr. Dan Mills, Senior Chemist, East Opportunities for Self-Sufficiency their courses, and Biotech Partners staff maintain a minimum of bi-weekly individual Bay Municipal Utility District and BP Prevention of Harassment in the Summer Intern Mentor Workplace: Kris Weidling, Bayer contact with the students, their teachers and job mentors. Student falling below a C in Preparing for Employment Tests: Student Support HealthCare an exam or class assignment are placed on an Improvement Agreement, and work hours Pinar Alscher, Chemistry Instructor, Learning Objectives: Pinar Alscher, may be reduced to increase time for studying until comprehension and performance Laney College Biotech Partners enriches academic and experiential learning with a broad spectrum of Laney College Chemistry Professor Resume and Cover Letter Writing: Nutrition, Health & Wellness (two part improve. Struggling students are provided with one-on-one academic tutoring. Iris Brody-Lopez, CEO, and Reginald student support, which has been expanded in recent years. series): Jessica Stevenson, Gates, Staffing Specialist, Ryals & Occupational Health-Bayer Associates HealthCare Stipends, funded in part by Bayer through the Development Agreement, are available Life Skills; Resume and Cover Letter Biotech Academy—High School Team Building: Marithess Rico, for students facing financial challenges that could jeopardize their ongoing enrollment Writing: Pat Howard, Employment Program Coordinator, Biotech Specialist, BOSS (Building Partners in the program. Stipends cover tuition, books, transportation, child care, and other Opportunities for Self-Sufficiency) Biotech Partners staff and teachers meet monthly to discuss the individual progress Voter Registration and the Importance necessities according to the need of the individual student. Dress for Success: JCPenney staff of students, and to address obstacles both academic and personal. Staff also regularly of Voting: Rochelle Conner, Executive Attitude is Everything: Tom Ford, provide parents with constructive feedback on their student’s progress. Formal support Assistant, Biotech Partners Technical and motivational presentations are added to further educate and motivate the Manufacturing Supervisor, Bayer Resume and Cover Letter Writing: HealthCare activities include: Iris Brody-Lopez, CEO, and Reginald students. Five Steps to Success in College: Gates, Assistant, Biotech Partners Dr. Caroline Kane, Professor in • Career Awareness Conference — Per the Development Agreement, Bayer each Residence, Emerita, Molecular and Cell Biology, University of California year hosts a half-day Career Awareness Conference. Bayer scientists guide lab tours Additional Support and Professional Development Programs Berkeley; Biotech Partners Board President and hands-on activities. Current Bayer employees who graduated from the program Financial Management: William engage in a lunchtime panel discussion of their experiences in the program and their Biotech Partners provides additional support services to satisfy the ongoing needs of its Wesley, Financial Education Specialist students and the industry it serves: and Financial Advisor, Merrill Lynch; careers at Bayer. The Conference took place on January 10, 2008. Biotech Partners Board Member Workplace Ethics: Peter Kramer, • An individual Student Improvement Agreement Plan, introduced in 2006 to • Teacher training through year-round workshops and teacher internships at Bayer and Director of Manufacturing Sciences, other employers Bayer HealthCare; Biotech Partners assist struggling students. Participants commit to attending all classes as well as Board Member special lunchtime tutoring sessions, and to maintaining a positive attitude in class. • Job placement for program graduates Every student placed on an Improvement Agreement in the 2007–08 academic year raised his or her performance. • Outreach to companies to expand opportunities for students and graduates

• Twice weekly afterschool Study Groups, also initiated in 2006, are a partnership • Alumni Association supporting graduates’ efforts to further their careers within the with the Berkeley Public Library. During these two- to three-hour sessions, biotech industry supervised by Biotech Partners staff, students have access to all the Library’s Through the Development Agreement Bayer has funded summer internships for resources, including online tutoring. ­Biotech Academy and Career Institute teachers—a total of 15 since 1992, at a cost of • Dress for Success—To prepare high school juniors for their summer internships, more than $65,000. This opportunity provides the teachers with ongoing guidance so Biotech Partners staff organize a “Do’s and Don’ts Fashion Show.” Juniors cast a as to coordinate classroom learning with industry needs. No teachers applied for an internship in 2008. 36 37 EnvironmentalCommunity Support Protection Programs and Emergencyand Payments Response Pro- grams

biotech partners — The Organization Funding biotech partners

Biotech Partners, a California not-for-profit 501(c)(3) corporation with a staff of six, “The program director shall actively seek additional funding partners including governments, operates in collaboration with the Berkeley and Oakland Unified School Districts and foundations and corporations. These funds will be added to [Bayer’s] contribution. . . . the Peralta Community College District. It is under the oversight and active manage- At a mature stage (beginning in years six through nine), the Program would be expected to ment of a 15-member industry- and community-based Board of Directors. be assimilated into the public school and community college systems.” With active, ongoing support from Bayer HealthCare, Biotech Partners has continued to develop as a model public/private partnership. Bayer continues to help build recog- —De v e l o p m e n t Ag r e e m e n t , p a g e s G-1-2 a n d 3 nition for Biotech Partners as a flagship program in regional economic growth, green jobs, and diversity in the workforce. In 2008 Biotech Partners and/or Bayer presented at important public policy forums including: In recent years Biotech Partners has been quite successful in generating new support from foundations and corporations—and from the Bayer USA Foundation. It has yet to • East Bay Economic Development Alliance (EBEDA). Biotech Partners Board achieve the original vision of being “assimilated into the public school and community member Tina Etcheverry and Bayer’s Development Agreement Manager Trina college systems”—but work toward that goal, aided by the increasing recognition the Ostrander ­discussed this groundbreaking 15-year collaboration in a panel on “cross- program is generating with policy makers, continues. 36 sector collaboration” for regional economic development. The event was organized on November 14, 2008, for the press conference release of the East Bay Indicators In addition to Bayer’s support through the Development Agreement, in 2008 Biotech Report 2008, and co-sponsored by United Way of the Bay Area. In September, Trina Partners received funding from individuals and the following foundations: Ostrander ­moderated a panel discussion for an EBEDA quarterly meeting on public/ Amgen Foundation $ 50,000 private partnerships in education. Bayer USA Foundation 50,000 Crescent Porter Hale Foundation 25,000 • Biotechnology Institute, Building Biotech Bridges. Biotech Partners Executive Director Deborah Bellush and Trina Ostrander presented on workforce development Dreyer’s Grand Ice Cream Foundation 15,000 partnerships at this science education conference in San Diego October 29, 2008. East Bay Community Foundation 10,000 Genentech Foundation for • Diversity in Biotechnology: A Strategic Dialogue to Advance Minority Biomedical Sciences 25,000 Workforce Development. Deborah Bellush developed significant new interest in James Irvine Foundation 100,000 the program when she spoke at this panel hosted by Congresswoman Barbara Lee Novartis AG, Emeryville 20,000 in November 2008. Other panelists included Assemblywoman (then Senator- Toyota USA Foundation 100,000 Elect) Loni Hancock; Assemblyman Sandré Swanson; State Senator Ellen Corbett; Wells Fargo Foundation 2,000 Dr. Michael Leung, Dean of the College of Science at Cal State East Bay; Ahmad Y&H Soda Foundation $ 15,000 Mansur, Director of Workforce Development for the Peralta Community College District; and Matthew Gardner, President and CEO of BayBio. Seven companies and not-for-profit institutions hired high school summer interns and/or college students for year-long Co-Op Jobs. • Deborah Bellush and Biotech Partners representatives joined Assemblywoman Loni Hancock, Ellyn Daugherty of the San Mateo Biotechnology Career Pathway, and Bayer representative Trina Ostrander on April 17 in presenting at the annual BayBIO Biotech Partners Hires “Doing Well by Doing Right” convention with a panel “Recruiting and Training No 2008 graduates of Biotech Partners were hired by Bayer this year — which is, in fact, the Next Generation of Biotechnology Associates: A Firsthand Perspective.” very good news. All recent graduates continued their college studies and sought part- BayBIO is the trade organization for the Bay Area’s biotech industry. time jobs, which are not available at Bayer. These graduates were successfully placed in Biotech Partners was also featured as a “best practice” program at Bayer’s first West part-time skilled technical positions in other companies. Coast science education conference on December 12, 2008: “Bridging the ­Diversity Gap: Introducing STEM (Science, Technology, Engineering and Mathematics) ­Industries to K–12 Best Practices Programs.” Deborah Bellush’s presentation at the San Francisco conference received prominent media coverage including a segment on KTVU news which followed astronaut Mae Jemison on her visit the following day to the Biotech Academy at Berkeley High School. The segment was aired twice and the clip can be seen on the home page of the Biotech Partners website: www.biotechpartners.org. 38 39 EnvironmentalCommunity Support Protection Programs and Emergencyand Payments Response Pro- grams

Su p p o r t f o r Be r k e l e y Pu b l i c Sc h o o l s Gr a d e s K–8 Sponsorship of Local Science Fairs

“. . . to encourage basic education in areas related to biotechnology.” Though no specific amount was mandated in the Development Agreement, in the last few years Bayer has made annual payments of $4,000 to the Berkeley Public Education —De v e l o p m e n t Ag r e e m e n t , p a g e G-1-4 Foundation, estimating that this sum would provide the necessary support mostly in the form of materials and supplies for students unable to afford middle school science projects. However, the funds have accumulated unspent by the Foundation, as Berkeley Payments Mandated by the Development Agreement middle schools essentially curtailed science fairs several years ago.

Payments Paid 2008 Paid to

Kindergarten through Berkeley Public Education Grade 8 Science Education— $15,500 Foundation G.II.F

Local Science Fairs— 0 Berkeley Public Education G.II.C amount not specified Foundation 38

Science Curriculum Development for Grades K–8

A qualified workforce — and community understanding and support of biotech and other science industries— is crucial to Bayer’s future success. For this reason the company has a longstanding global commitment to science education. Through the Development Agreement, Bayer agreed to support science education with a thirty-year grant of $10,000 annually (with a consumer price index adjustment each year), payable to the Berkeley Public Education Foundation.

In 2008, the Foundation for the first time applied Bayer funds to a program that send all 561 Berkeley 5th graders to the Lawrence Berkeley National Laboratory for a half-day workshop with Lab scientists. Students participated in four hands-on science activi- ties, donning lab coats and safety goggles and recording events in their lab notebooks. A walking tour of the Lab’s extensive site included a visit to the particle accelerator and the fire station. Teachers reported being educated about bringing science back to their classrooms without relying on the school’s science specialist teachers. The program was such a success that the Foundation has set aside Bayer funds remaining from 2008 to continue the field trips through 2011.

It is gratifying to see Bayer’s annual payment supporting new efforts to provide meaningful science education. We look forward to fostering these structural innova- tions — and to bringing them out to other East Bay communities — in the coming years. Biotech Partners student Salma Salem displays what she learned in her summer internship at the Posters celebration held at Bayer in August, 2008. “On behalf of Berkeley’s 5th grade students, teachers, and school principals, I would like to thank Bayer, the Berkeley Public Education Foundation, and the Lawrence Berkeley National Laboratory for their generosity. . . . The program provided a unique opportunity to learn about science and the industry of science research to all of Berkeley’s elementary schools.”

–Re b e c c a Ch e u n g , Di r e c t o r o f Ev a l u a t i o n & As s e s s m e n t, Be r k e l e y Un i f i e d Sc h o o l Di s t r i c t 40 41 EnvironmentalCommunity Support Protection Programs and Emergencyand Payments Response Pro- grams

Employment/Hiring

“The objectives . . . are (1) to ensure that Berkeley residents are given preference in hiring . . . 2008 Employee Demographics through the City’s First Source Program; (2) to obtain employment for Berkeley residents

during the construction phase of the proposed expansion; and (3) of all hires from the outside Total Employees 1,354 for laboratory and production technicians, [Bayer] agrees that a goal of 80% will be Union (ILWU Local 6) Employees 491 graduates of the Biotech Career Institute.” Berkeley Residents 100

—De v e l o p m e n t Ag r e e m e n t , p a g e G-2-1 Contractors* 100 Average Tenure at Bayer 9 years

* working at Berkeley site on daily basis Programs and Payments Required through the Development Agreement

Program $500 per hire for construction job start-up expenses during initial site ­ First Source Referrals and Hiring development phase 40 The company continues to go first to the City’s First Source employment program when Date Disbursed recruiting candidates for both non-technical and technical openings. 1992–1996

Amount 2008 Referrals and Hiring $20,500

Requests filed by Bayer with First Source 96 Compliance with Employment Program Objectives Candidates referred to Bayer by First Source 1

Bayer remains in substantial compliance with all objectives outlined in the Develop- First Source Referrals Hired 0 ment Agreement. Berkeley residents receive first priority in all job categories including construction. From 1992 through 2007, 163 non-technical hires—65 percent of the total—have been Berkeley residents, with a total of 49 percent coming through First Source. At the 2008 Employment and Hiring annual meeting between the City and Bayer to review the Development Agreement Annual Report for 2006, held on February 14, 2008, the issue of Bayer working with First Source to boost local job placements was discussed and Bayer looks forward to New Hire Profiles* working with the City on this effort. 2008 Berkeley Berkeley Residents Job Type New Hires Residents Hired Since 1992

Technical** 8 0 122

Non-Technical** 0 0 163

Clerical 6 1 31

Professional 50 3 not available

Total 2008 Hires 64 4 not available

* Biotech Partners hires are reported separately, on page 30. ** All non-technical workers (packaging and sterile process operators, general workers, lift truck operators, equipment washers/sterilizers, janitors), and some technical employees are members of the ILWU Local 6 bargaining unit. Technical workers include biotechnicians, media prep operators, plasma processing operators, biological and chemical analysts. Bayer is the Bay Area’s only biotech company to employ unionized workers. 42 43 EnvironmentalCommunity Support Protection Programs and Emergencyand Payments Response Pro- grams

Affordable Housing Childcare

“The program objective is to increase the supply of permanently affordable housing, in the city of “Implement innovative methods of offsetting the demand for child care created by the Miles Berkeley, by 21 units with an average size of two bedrooms . . . for a total not to exceed $615,413.” project . . . including infant care, affordability, sick child care, and health care training for local child care providers.” —De v e l o p m e n t Ag r e e m e n t , p a g e G-3-1 —De v e l o p m e n t Ag r e e m e n t , p a g e G-4-1

Over the first ten years of the Development Agreement, Bayer paid a total of $884,140 to the City’s Housing Trust Fund. No further payments were required after 2002. Mandated Fees Paid 2008 The funds were used to increase affordable housing throughout the city — with at least Program Paid 2008 Paid 1992–2007 50 percent earmarked for West Berkeley — through the provision of two first-time homebuyer’s loans, three mortgage interest subsidies, and the rehabilitation of four Sick Child Care Program $15,500 $196,550 existing homes to provide housing for individuals including very-low-income develop- Bananas: Subsidize infant and mentally disabled children and homeless families. child care for low-income working Berkeley families. None required $310,322 42 Health Care Training for Child Care Providers: Paid to Bananas $14,725 $186,723 Child Care Mitigation Payments: as agreed in the 1999 First Amendment to the Development­ Agreement n/a $135,478

Total 1992–2008 $829,073

Working with the City and local non-profit child care providers, Bayer has made ­significant contributions toward innovative child care solutions, both for its employees and for parents throughout the city—particularly those with low incomes.

S ick C hild C are P rogram

Bayer subsidizes this local provider of day care for sick children of qualified low-income Berkeley residents This subsidy provided care for an average of two children per day, and represents about 25 percent of the program’s total annual budget.

BANANAS—Infant and Child Care

Bayer is proud to be among the nation’s “Best Employers for Working Mothers,” as ­honored again in 2008 in Working Mother Magazine. However, space and budget ­constraints at the Berkeley site have delayed the company’s goals of providing an on-site child care center.

In 1992, Bayer agreed to fund through 2002 annual child care subsidies for low-income Berkeley families. In the 1999 First Amendment to the Development Agreement, Bayer agreed to continue the subsidies with lump sum payments every six years in the event the company has not constructed an on-site child care facility for employees. The first payment under the Amendment, of $135,478, was made to BANANAS, Berkeley’s state- designated child care Resource and Referral Agency, in 2004. BANANAS has invested this money, and in 2008 used $3,981 of earnings and carry-over funds from the Bayer payments to provide child care subsidies of $400 per month to 12 eligible low-income families. 44 45 EnvironmentalCommunity Support Protection Programs and Emergencyand Payments Response Pro- grams

Historic Preservation and Public Art

“In order to preserve a record of the Miles site and its role in the West Berkeley manufacturing area and to commemorate 2008 Child Care Subsidy Recipients—Family Profile the social history of West Berkeley, Miles will assemble an historical exhibit . . .incorporating photographs of the site and

Parents the people who worked there, objects utilized in the manufacture of products, samples of products manufactured at the Single 6 location, and a narrative history . . .” Married 6 —De v e l o p m e n t Ag r e e m e n t , p a g e G-7-1 West Berkeley Residents 9 Bayer Employees 0 The envisioned historical exhibit has over time resulted in A Century of Innovation and Children Caring: The History of Bayer and Cutter Laboratories in Berkeley, a narrated DVD completed Infant 7 in the fall of 2007 and distributed with the 2007 Annual Report to the City. It includes Pre-School 5 photos and memorabilia gathered from a rich archive of historical materials and arti- facts collected at Bayer over the last hundred years. and is available in the public library. Providers Family Day Care 4 Child Care Center 1 44 Family Member (or otherwise exempt from licensing) 7

Bananas—Health Care and Safety Training for C hi l d C are P rov iders

With Bayer’s support, BANANAS offers a robust training program for child care pro- viders living and working in Berkeley. BANANAS provides outreach to the provider community about the Bayer program through its website and newsletter, in workshops, and in mailings to directors of child care centers and family child care providers.

More than 100 local child care providers and teachers attended three workshops ­con­vened by BANANAS in April and May, 2008: “Caring for Children with Asthma,” “Children with Down Syndrome in Child Care Programs”, and “Helping Children Cope with Stress.” The workshops were presented in English in April and May, and in Spanish in May.

Throughout the year BANANAS also offered more than 20 classes on ­cardiopulmonary resuscitation, first aid, and preventive health for child care providers who speak ­Cantonese, English, Mandarin, Spanish, and Vietnamese, with Bayer funding provided scholarships of up to $100 per person.

Twenty-two teenaged babysitters attended a class in CPR and first aid in June, 2008. 46 47 EnvironmentalCommunity Support Protection Programs and Emergencyand Payments Response Pro- grams

Community Support Programs Animal Care and Usage

“[Bayer] and the City will organize the establishment of a West Berkeley Community Programs Board, “The first objective is to establish good faith, open communications to enhance the level of that will identify and support programs for the health and welfare of community residents.” understanding of the facts, issues and concerns that surround the subject of animal care and usage.”

—De v e l o p m e n t Ag r e e m e n t , p a g e G-9-1 —De v e l o p m e n t Ag r e e m e n t , p a g e G-10-1

Payments Mandated by the Development Agreement Mandated Fees

Project Program Consultant to aid in establishing West Berkeley Foundation Outside research into alternatives to animal use in pharmaceutical ­testing Payments $30,000 Paid 2008 n/a Date Paid 1993 Paid 1992–2008 $175,000

Project Program General Support of Foundation: $100,000 annually for 10 years Compensation to community members serving on Bayer’s Institutional Animal Care and 46 (plus consumer price index adjustment) Use Committee Payments $1,156,620 Paid 2008 $4,500 Date Paid 1993–2002 Paid 1992–2008 n/a Total $1,186,620

No payments were mandated for 2008. The Berkeley site is under strict requirements by the United States Food and Drug Administration and international regulations, as well as the Development Agreement and its own corporate policy, concerning research and the testing of pharmaceutical West Berkeley Foundation products intended for human use. The community foundation established through the Development Agreement contin- Between January and June, 2008, Bayer moved all animals off the Berkeley campus, to ues in operation today, and has played an important role since its inception in 1992. its newly acquired research and development facility in Richmond, California. A lasting achievement was the rebuilding of Rosa Parks Elementary School after it was destroyed by the Loma Prieta Earthquake in 1989. It was the West Berkeley Founda- tion that provided the initial seed grant that launched the three-year. community-based Federal Compliance campaign that raised $1.2 million to build a new beacon school that offers a model K–5 Bayer’s Berkeley facility is registered with the United States Department of Agriculture science curriculum, one of the Bay Area’s most active and effective Family Resource and continues to be in full compliance with USDA regulations and the federal Animal Centers, and strong, collaborative leadership. Bayer Foundation funds were instrumen- Welfare Act. USDA inspections are not pre-scheduled and can occur at any time. The tal in this success, contributing $150,000 to build the Bayer Youth Science Center, and USDA inspected Bayer’s Richmond facility on September 18, 2008, and identified no both the West Berkeley Foundation and Bayer continue to support the school with non-compliance items. ­contributions of cash and volunteer time.

Because of the ten-year Bayer contributions, the West Berkeley Foundation did not begin life as a fundraising foundation. In the last few years, however, with the initial Other Compliance endowment running down, the Board has turned itself to generating new revenues. Bayer’s Berkeley facility is accredited by the Association for Assessment and Accredi- ­Bayer’s Community Relations Manager is working with the Board on exploring these tation of Laboratory Animal Care, International (AAALAC), a voluntary accreditation new options. awarded only to those institutions that exceed regulatory requirements and set the In 2008, the West Berkeley Foundation made $78,000 in grants to 32 local organiza- highest standards in animal care and use. The facility had its last site visit by AAALAC tions including Building Diversity in Science, the Center for Early Intervention on in June, 2007. AAALAC awarded continued full accreditation, and congratulated Bayer Deafness, the B-Tech Black College Tour, Rebuilding Together, and the Rosa Parks HealthCare for its excellent administrative support, its well organized and function- Collaborative. ing Institutional Animal Care and Use Committee, its comprehensive occupational health and safety program, its excellent husbandry practices and veterinary care, and its trained and dedicated staff. Reaccreditation by AALAC is due in January, 2010. 48 49 EnvironmentalCommunity Support Protection Programs and Emergencyand Payments Response Pro- grams

Requirements of the Development Agreement Animal Testing at Bayer

The rigorous standards Bayer adheres to regarding animal usage, and the research the Institutional Animal Care and Use Committee company has supported over the last decades, has yielded innovative reductions in the need for animal testing: The Development Agreement requires that a representative from the City’s Citizen’s — in silico testing: Recent breakthroughs in computer Humane Commission serve on Bayer’s federally-mandated Institutional Animal Care • Computer Modeling technology have significantly reduced the need to perform early screening on animals and Use Committee (IACUC) in Berkeley. Sherry Schacter, D. V. M., has served in this of promising drug candidates, and have allowed the screening which is unavoidable to capacity since 2004. Regulations require these animal care committees to meet twice be performed more frequently on rodents rather than larger animals such as dogs and a year, but Bayer maintains a policy of meeting monthly, with semi-annual tours of the cats. When animals are used, the drug candidates have already demonstrated a high facility conducted at the June and December meetings in 2008. The IACUC met eleven potential for efficacy and safety through thein silico modeling. times in 2008, and Dr. Schacter attended ten of the meetings. — in vitro testing: Additional research has allowed the Federal law mandates that, prior to any animal experiment, a protocol for animal use • Cell Culture Assays detection of potential toxicants, as well as general safety and efficacy testing, through must be submitted to Bayer’s IACUC for review and approval. This protocol review experiments using cell cultures or other in vitro systems rather than animal studies. process requires that animal usage for each experiment ensure that non-animal or non- Bayer’s policy is to test using in vitro systems, rather than living animals, whenever 48 painful alternatives are used whenever possible. Bayer scientists and IACUC members possible. At this time in vitro assays are in the research and development phase for work together to assure at as few animals as possible are used, and that animal testing each new biotechnology therapeutic product. is conducted only when the researchers have demonstrated sufficient scientific merit for the test, and when there is no safe alternative.

The Development Agreement also requires that an annual report from the company’s Animal Treatment IACUC be submitted to the Citizens’ Humane Commission, reviewing the prior years activities and programs. Bayer employees responsible for the administration of the In the first half of 2008, Bayer’s Berkeley site maintained approximately 17 rabbits, 362 animal care program are available to respond to questions from the Citizens’ Humane rats, and 8,421 transgenic mice. The mice were bred with specific genetic alterations to Commission. The 2008 report will be submitted by late spring, 2009. make them relevant models for human disease conditions; this change has allowed the discontinuation or reduction of testing on larger animal species. Breeding is carefully limited to produce the minimum number of mice needed for each research protocol.

Research into Safe Alternatives to Animal Testing Bayer is committed to providing optimal care to all animals, and employs consulting veterinarians to provide employee training, clinical support, and advice on anesthesia Over the first ten years of the Development Agreement, a total of $175,000 was and analgesia and all other animal care issues. required for research into alternatives to the use of animals in pharmaceutical research and testing. Recipients of these funds have included leading researchers in the field: the Employees are provided with regular training on appropriate care and treatment of Animal Dairy and Veterinary Science Department of Utah State University, Logan; the ­animals, with programs focusing on a variety of topics including humane care, review Center for Animal Alternatives at the University of California, Davis, School of Veteri- of the laws and regulations related to animal care, the role of the Bayer IACUC, nary Medicine; the School of Public and Environmental Affairs at Indiana University, ­occupational health issues, and current facility procedures. Bloomington; the International Foundation of Ethical Research in Chicago; and the Social and psychological environmental enrichment programs, originally mandated Cleveland Clinic Foundation’s Department of Neurological Surgery. Results of this only for non-human primates and rabbits, have been expanded to include all species. All research are discussed below. ­caging meets or exceeds USDA requirements and the recommendations of the National Research Council’s Guide for the Care and Use of Laboratory Animals. Mice and rats are housed in groups to encourage social interactions, and their cages are enriched with a variety of supplies including paper nesting materials, play houses, and chew toys. Rabbit housing is configured to allow the animals to interact with one another, and ­generous supplies of food treats (hay, broccoli, carrots, apples) and safe toys (Bunny Blocks, shower curtain rings, jingle balls are provided. 50 51 EnvironmentalCommunity Support Protection Programs and Emergencyand Payments Response Pro- grams

Peace and Justice

“[Bayer] is prohibited from doing research, development and/or production of chemical and biologi- “I’ve worked for three companies; Pfizer, Johnson and Johnson, and Bayer. cal weapons at this site . . . pledges itself to a program of affirmative action . . . will comply with the What took me by surprise here at Bayer was how much Bayer believes in its ­existing Berkeley Human Rights Ordinance . . .” values, such as diversity.” —De v e l o p m e n t Ag r e e m e n t , p a g e G-11-1 —Mi k e Ja y a s e k e r a

As detailed in previous pages and in practice throughout the year, Bayer is proud of its diverse workforce, its environmental practices, and its leading role in corporate social responsibility.

The company submitted its annual affirmation of commitment to equal employment opportunity to the City’s Peace and Justice Commission on May 8, 2008.

In 2008 Bayer was recognized for its commitment to a diverse workforce in the ­following publications:

50 • Workforce Diversity: Engineering & IT Professionals: An article profiled Bayer manufacturing services manager Mike Jayasekera and featured information about his life, education, and career with Bayer

• African American Career magazine: An interview focused on James Glover’s personal and professional background, and diversity at the Berkeley site

• Diversity in Engineering: An interview focused on Al Granada’s background in engineering, his professional history and the best features about working at Bayer

Employees at Bayer’s Berkeley site hail from all over the world; “Success through Diversity” is celebrated at the annual Diversity Fair, where employees present food and other cultural traditions for all to enjoy. 52 53 Environmental Protection and Emergency Response Pro- grams

Beyond the Development Agreement “The Berkeley Model” of Community Support

55 Cu r r e n t We s t Co a s t Gi v i n g Pr i o r i t i e s 55 Science and Environmental Education 56 Community Support 52 56 Patient Support

57 Em p l o y e e Volunteerism

57 In-k i n d Do n a t i o n s

58 Gr a n t s & Contributions 2008 54 55 Environmental“The Berkeley Model”Protection of Community and Emergency Support Response Pro- grams

Current West Coast Giving Priorities

“The Berkeley Model” of Sc i e n c e a n d En v i r o n m e n t a l Ed u c a t i o n — M a k i n g ­S c i e n c e Ma k e Se n s e

Community Support “Bayer is in the business of providing sustainable solutions to challenging problems. At the heart of that is a qualified, diversified workforce.”

–Gr e g Ba b e , Pr e s i d e n t a n d CEO, Ba y e r Co r p o r a t i o n Bayer’s Berkeley site maintains an active philanthropic giving program that is driven by at a national Making Science Make Sense strategic corporate priorities, by an understanding of local needs that has its roots in — but is not planning session Pittsburgh, PA required by — the Development Agreement, and by business objectives including the ability to attract and retain loyal employees in a highly competitive market. At all levels of management, Bayer has long recognized the need for corporate leader- With its acquisitions in late 2007 of sites in Emeryville and Richmond, Bayer became ship in the urgent effort to develop new generations of scientific talent. The company the second largest biotech employer in the Bay Area, and has sought to expand its ranks “the demographic shifts that are creating a looming need to develop a qualified ­philanthropy and employee volunteerism accordingly. In 2008, Bayer also launched the workforce” as one of the three major challenges of the next decade, along with energy Giving Station, an on-line system to encourage employee donations to local and national supply and climate change. charities. The company matches employee donations to charities in Bayer’s ­therapeutic 54 areas including hemophilia, multiple sclerosis, cancer, and diabetes. In its pilot year This was the motivation behind Bayer’s sponsorship of Biotech Partners in the 1992 Bayer’s East Bay employees outpaced their colleagues at other Bayer sites, generating Development Agreement, and behind Making Science Make Sense, an education program approximately $20,000 in company matched dollars through the Giving Station. that was formally launched in 1995 after a few employees at Bayer’s Pittsburgh head- quarters initiated the first activities in 1992.

Making Science Make Sense is an award winning program that directs both philanthropic dollars and employee volunteerism into science education throughout the nation. In 2008 Highlights 2008, Bayer was honored by the National Science Board for Public Service. Recogniz- This year Bayer was ranked 53rd in Bay Area corporate giving by the San Francisco ing the company’s longstanding and exemplary commitment to science public outreach, Business Times. We were honored by the Berkeley School Board for our contributions science education and science policy, the NSB cited in particular “the important work to education, and as Community Partner of the Year by the Berkeley/Albany YMCA. of Bayer’s Making Science Make Sense program, through which thousands of students gain exposure to experiential science learning.” In December, Bayer sponsored its first West Coast “Bridging the Diversity Gap in ­Science and Engineering: Introducing STEM Industries to K–12 Best Practice In the Bay Area, Bayer is a leader in supporting curriculum development, teacher ­Programs.” This national conference convened nearly 200 educators, science ­industry ­training, and diversity recruitment both in grades K–12 and through to the college and leaders, foundation executives, and elected officials to review proven programs for post-doctorate levels. All contributions made to education through Exhibit G-1 of the recruiting girls and students of color into the STEM (science, technology, engineering, Development Agreement fall within Making Science Make Sense. and mathematics) disciplines, and discuss ways to apply lessons learned to improving science education at schools nationwide. Bayer CEO Greg Babe hosted the Forum, which was moderated by Dr. Mae Jemison, the nation’s first woman of color to orbit the earth, who also serves as Bayer’s national science literacy advocate for the company’s On May 7, 2008, Bayer received one of ­America’s Making Science Make Sense initiative. highest science honors, the National Science Board’s 2008 Public ­Service Award, for the company’s long-standing and exemplary commitment to science ­public ­outreach, science education and science­ ­policy, a commitment exemplified in its ­Making Science Make Sense program. Dr. Mae Jemison and Bayer U.S. CEO “I got an enormous amount out of the event — tons of networking of course but also real insight Dr. Attila Molnar, center, flanked by Bayer MSMS volunteers, left to right, Debbie ­Wallace into new programs, issues, and approaches that will really enrich our work —and hopefully of Bayer Material Science in Pittsburgh, lead to some new partnerships. Plus it was such a convivial group, I really had fun meeting new Linda Moon of Bayer HealthCare in Berkeley, Sarah Leibowitz­ of Bayer Crop ­Science in colleagues from around the country as well as connecting with old friends.” Kansas City and Mike Nield of Bayer Corporate ­Business Systems in Pittsburgh. – e d u c a t o r a t t e n d e e , b a y e r w e s t c o a s t s t e m f o r u m , d e c e m b e r , 2008 56 57 Environmental“The Berkeley Model”Protection of Community and Emergency Support Response Pro- grams

Employee Volunteerism On November 12, Bayer was honored by the Berkeley School Board for its “outstanding Bayer maintains a long tradition of employee volunteerism at its Berkeley site, and efforts in providing science opportunities aligns its grantmaking with projects that offer opportunities for employee support for Berkeley students, from Kindergarten as well. through 12th grade, since 1992.” In 2008 Bayer teams repainted a shelter for women and children operated by the From left: Peter Kramer, Director, ­Berkeley Food and Housing Project, landscaped at the BAHIA bilingual early Manufacturing Sciences, Bayer HealthCare; Trina Ostrander, Development Agreement ­childhood development center, brought calculus to life by sharing their experiences and Communications Manager, Bayer with students at Diablo ­Valley College, and volunteered in classrooms and after-school HealthCare; Roberto Hernandez, a ­programs at schools throughout the East Bay. Employees also engage frequently in pioneering student in the Biotech Academy runs, walks, bike rides, and other fundraising activities for a range of causes ­including launched by Bayer at Berkeley High; Caroline Kane, President, Biotech Partners ­environmental protection and clean-up, youth and senior citizen programs, and Board of Directors and professor in ­treatment and cures for diseases outside of Bayer’s specific therapeutic areas. In 2004, Residence Emerita, Molecular and Cell Bayer’s enthusiastic school volunteers were honored by the Berkeley ­Public Education Biology, UC Berkeley; John Selawsky, Foundation as “Volunteers of the Year.” President, Berkeley School Board.

56 In-Kind Donations Finally, Bayer maintains a firm policy of “recycling” surplus equipment by donating usable items to local schools and non-profits. In 2008 donations included microscopes and other equipment, valued at $19,700, to the Merritt College Microsopy Program; 300,000 paper towels donated to Alameda County Meals on Wheels, and a Chromatog- raphy Refrigerator, valued at $4,348, donated to Merritt College. $11,981 in equipment o m m u n i t y u p p o r t C S including a blood bank refrigerator, thermometers, masks, gloves, and pipettes was Each year Bayer’s Berkeley site allocates funds to support institutions and programs donated to Biotech Partners and its participating schools in 2008. that are important to our community. Bayer receives many requests from community partners, employees, and a wide range of non-profit organizations. Our giving focus is on meeting urgent community priorities, and on projects that promise lasting impact.

Pa t i e n t Su p p o r t Bayer places a high priority on providing financial and volunteer support for patients who rely on the company’s pharmaceutical products. Both at the Berkeley site and on a national scale the company makes grants to the World Hemophilia Foundation and ­various local chapters throughout the country. Bayer’s support for the North- ern California Hemophilia Foundation includes grants as well as extensive employee ­participation in major activities including the annual Holiday Party for children with hemophilia, held at Children’s Hospital of Oakland, and Camp Hemotion, a three-day Bayer’s nine-member Sterile Fill Facility summer camp held in the mountains of Central California. production team, led by Manager Peter Pawlik, spent an autumn day working with children and staff at nearby BAHIA (Bay Area Hispano Institute for Advancement) weeding and trimming the bilingual childcare facility’s lush gardens.

“All the children and staff pitched in to help,” Pawlik noted. “They made us a wonderful homemade meal and the smiles on their faces when the job was done was the best reward of all.”

Pictured: Dax Crabbe, SFF Supervisor 58 59 Environmental“The Berkeley Model” Protection of Community and Emergency Support Response Pro- grams

Grants and Contributions 2008

Making Science Make Sense/ Workforce Development UC Berkeley: College of Chemical Engineering $15,000 Membership in the department’s Industrial Friends society, bringing together academia and industry leaders. Berkeley Public Education Foundation: Berkeley, CA $10,000 University of Colorado: Department of Chemistry $1,000 Sponsorship of annual luncheon, in general support of classroom grants and educational improvements in local public schools. This grant supplements $15,500 paid through Bayer’s Speaker’s stipend for Dr. Theodore Randolph, the annual Bayer Lecturer in Biochemical 30-year Development Agreement with the City of Berkeley for science curriculum development Engineering. The series brings outstanding researchers to speak to UC undergraduate and grades K–8. graduate students.

Biotech Partners: Berkeley, CA $50,000 Total MSMS/Workforce Development $265,000 Third of a three-year operating grant, in partnership with the Bayer USA Foundation, for general support. Bayer also contributed more than $130,000 through the Development Agreement for job stipends, the annual Career Awareness Conference, and operating support. Community Support Biotechnology Institute: Arlington, VA $75,000 The Bayer Minority Fellows Program, held in May, paired senior Bayer scientists with promising Alameda County Meals on Wheels: Oakland, CA $5,000 women and minority graduate students who were about to embark on careers. Mentors work for Sponsorship of the annual fundraising dinner for general support of this food-for-seniors 58 a year with their Fellows, providing career guidance, contacts, and moral support. The Bayer Minority Fellows program was reported in the East Bay Business Times. organization.

Building Diversity in Science: San Francisco, CA $2,500 Bay Area Council: San Francisco, CA $10,000 Support for the second annual Scientific Empowerment Movement Conference, bringing Outlook Conference sponsorship with Governor Schwarzenegger for this regional business together high school and college students with leaders in Bay Area science industries “to roundtable. Additional sponsorship of annual Hall of Fame dinner honoring business leaders empower, inspire, and inform” about careers in science. and elected officials.

California State University East Bay: Bay Area Hispano Institute for Advancement (BAHIA): Berkeley, CA $1,000 Mathematics, Engineering, Science Achievement (MESA) $93,000 for each 33rd Anniversary Dinner for this bilingual child development program serving children and Center: Hayward, CA of 3 years families from preschool through elementary school. Helps establish and sustain a Mathematics, Engineering, Science Achievement (MESA) Center Berkeley City Ballet: Berkeley, CA $3,000 at Cal State East Bay. MESA is a widely respected program providing a rigorous hands-on General support for our local ballet company. curriculum in the sciences to underserved K–12 schools. Student and family support, along with college and career preparation, are an integral part of the program. Berkeley Food & Housing Project: Berkeley, CA $10,000 Support for men’s and women’s homeless shelters and extended hours of operation. In June, a Community Resources for Science: Berkeley, CA $5,000 Bayer team “set the new standard for volunteering” when they repainted the women’s shelter. This grant supports capacity building as recommended in the organization’s year-long strategic planning process. CRS began in 1996 with support from Bayer funds; their mission is to teach Berkeley Public Education Foundation: Berkeley, CA $2,000 local elementary school teachers how to teach science, and how to take advantage of the rich The Foundation serves as fiscal sponsor for this annual back-to-school gift of well-stocked educational resources in the Bay Area through museums and natural habitats. backpacks to entering students, organized by Councilmember Darryl Moore.

Emery Ed Fund: Emeryvuille, CA $12,500 Berkeley Public Library Foundation: Berkeley, CA $5,000 Sponsorship of the annual benefit at Pixar studios. This organization supports academic Sponsorship of the annual Author’s Night gala, a fundraiser in support of local libraries. excellence in Emeryville public schools. Berkeley Repertory Theatre: Berkeley, CA $5,000 MIT Women’s Initiative $1,000 General support Support for conferences convened nationwide by female MIT engineering students to encourage young women to enter the field of engineering. Berkeley/Albany YMCA: Berkeley, CA $46,000 Three grants were made to the YMCA this year: $20,000 to provide stipends for local youth Save the Bay: Oakland, CA $10,000 serving on the Teen Task Force, which is designing the Y’s innovative new downtown Teen Supports program assessment and strategic planning for the Watershed Education Program, Center. A capital gift of $25,000 was made to the Teen Center building campaign, and an which delivers outreach, education, and watershed restoration programs to public schools additional $1,000 sponsored the Y’s annual dinner. Bayer was honored as Community Partner of the throughout the Bay Area. Bayer employees are also actively involved as volunteers for Year in recognition of these gifts. Save the Bay. Center for Independent Living: Berkeley, CA $5,000 Sponsorship of the annual fundraising dinner in general support of this center for people with disabilities. 60 61 Exhibit H: Monitoring and Reporting Program

Exhibit H Monitoring and Reporting Program

Emeryville Celebration of the Arts, Inc.: Emeryville, CA $10,000 Exhibit H provides a summary of all projected impacts of Bayer’s proposed site development plans, along with Lead sponsorship of this month-long celebration of local artists. ­mitigations and reporting requirements agreed to in the 1992 Development Agreement. This chart has been updated to include impacts and mitigations of the 1999 Amendment as well, which appeared as Exhibit B. George Miller Youth Fund: Concord, CA $2,500 Bayer has a tradition of supporting the one fundraiser this organization conducts each year to Citations (e.g., 5B-14) refer to page numbers in the Draft Environmental Impact Report dated June, 1991. Page ­numbers fuel its programs for children with serious medical, emotional, educational, and developmental referenced in the Seismic Safety Section (e.g., 4.3-20) are from the Final Environmental Impact Report dated October, needs. 1991. Both documents are filed with the State of California, State Clearing House Number 900330029.

Rosa Parks Elementary School Collaborative— *Permits on file with City. Lifelong Medical Care: Berkeley, CA $10,755 Provides a third year of funding for a three-year effort to make this innovative school-based DA Page/ family services program financially sustainable. The Collaborative provides mental health, Item # Impact Mitigation/Program In Compliance Comments recreational, and family support services to students at this school with a large low-income Land Use and Recreation student body.

Snohomish County Economic Development Council $7,500 H-1/Item 1 Floor area: The combined size of the Bayer will site and design buildings to yes* Improving the business climate for growth of biotech in county where Bayer’s Seattle facility existing buildings and new construction reduce impacts of increased building would increase the building space space in accordance with the Site 60 operates. presently on the site by 55%. This could Development Plan. Additionally, Bayer be a significant impact depending on will attempt to acquire additional land West Berkeley Neighborhood Development Corporation $5,000 how the buildings are sited and to provide more land area. This year Bayer was lead sponsor for the Berkeley International Food Festival, celebrating the designed. 5B-14 cuisine and culture of the city’s richly diverse western neighborhoods.

H-1/Item 2 Height: Buildings constructed during Bayer will locate tall structures in yes* Total Community Support $127,755 Phase I would have a maximum clusters some distance from property building height of 80 feet, increasing edges in accordance with the Site building intensity in an area of Development Plan. However, this will primarily low-rise buildings. This not reduce impacts to a level of Patient Support would be a significant impact of the insignificance. A statement of Project. 5B-19 overriding consideration must be provided. American Cancer Society, California Division: Oakland, CA $7,500 A team of Bayer employees traditionally runs in the annual Making Strides Against Breast Cancer fundraising event, and the company adds a sponsorship.j H-1/Item 3 Height: The Pilot Plant (now Building The Pilot Plant will not exceed 65 feet. yes* 60) would have a height of 68-80 Additionally, the building will have California Healthcare Institute: La Jolla, CA $3,000 feet, exceeding the height of most of special architectural features along the low-rise buildings in the area. The Dwight Way in accordance with the Sponsorship of the “Celebrating 15 Years of California Biomedical Innovation” gala in building would be set back 33 feet Site Development Plan. However, this Washington, DC. from Dwight Way. 5B-20 will not reduce impacts to a level of insignificance. A statement of Hemophilia Association of San Diego County: San Diego, CA $1,000 overriding consideration must be Employees participated in the “California Coastal Ride/Race for Hemophilia” to benefit prepared. hemophilia patients in southern California; Bayer added a company sponsorship. PHASE II: Overall Impacts Hemophilia Foundation of Northern California $20,000 H-1/Item 1 Floor Area: Total new floor area Bayer will site and design buildings to yes* Bayer sponsored three major fundraisers for this patient support organization: the annual Camp added in Phase II will more than reduce impacts of increased building Hemotion for children with hemophilia, the Wine Country Classic Golf & Wine Festival, and double the amount of developed space in accordance with the Site the Speeders for Bleeders fundraising race. space that is presently on the site. Development Plan Agreement. 5B-20 Additionally, Bayer will attempt to National Multiple Sclerosis Society, Northern California Chapter $5,200 acquire additional land to provide more land area. Bayer sponsored a bike team this year for the annual Waves to Wine fundraising ride and wine tasting event: employees pledged to raise a minimum of $350 each, and Bayer provided a company sponsorship (and a tent to keep the team members cool). H-1/Item 2 Height: The project would have a Bayer will not construct buildings yes* maximum building height of 100 feet. higher than 80 feet in height. Special This would be substantially higher architectural features as defined in Total Patient Support $ 36,700 than most of the buildings in the the Site Development Plan will further area. 5B-21 reduce the impact of these heights. Total Charitable Contributions 2008 $ 439,455 62 63 Exhibit H: Monitoring and Reporting Program

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PHASE III

H-2/Item 1 Floor Area: The Project as a whole Bayer will site and design buildings yes* H-3/Item 3 Appearance from West Side of As proposed in the Site Development yes* would substantially increase the to reduce impacts of increased Aquatic Park: The Fill and Finish Plan, Bayer will incorporate special amount of building floor area on the building space in accordance with Building and the Pilot Plant proposed architectural measures along the site. 5B-22 the Site Development Plan. for the western property line would western boundary which include Additionally, Bayer will attempt to be visible from the west side of open spaces between buildings, acquire additional land to provide Aquatic Park. 5C-10 windrows and stepbacks. more land area.

CUMULATIVE LAND USE IMPACTS H-3/Item 4 Glare: If glass were used on the Bayer will not use highly reflective yes* western facades of the production glass in the construction of H-2/Item 1 Cumulative Development: From a land- Bayer will site and design buildings yes* buildings, there is the potential for buildings in accordance with the use perspective, the project would not to reduce intensity from height and annoying glare. 5C-14 Design Guidelines. cause a significant impact. However, FAR in accordance with the Site the intensity of the proposed use as Development Plan. However, this indicated by height and floor area ratio will not reduce impacts to a level of (FAR) would be a significant contribu­ insignificance. A statement of H-3/Item 5 Appearance from Dwight Way near The Pilot Plant will not exceed 65 yes* tion to cumulative development overriding consideration must be Fourth Street: The proposed 80 foot feet in height. As proposed in the impacts. 5B-23 prepared. Pilot Plant would dominate the Site Development Plan, Bayer will streetscape, detracting from the incorporate special architectural 62 RECREATION IMPACTS visual quality of the environment. measures into the design of the 5C-14 building, which include articulations H-2/Item 1 With the anticipated increase in Bayer will contribute to park yes* and modulations. employees, the Project could result in improvements. increased use of Aquatic Park and increased need for park maintenance. 5B-23-24 H-3/Item 6 Mid-Range Views (Ground Level): As proposed in the Design yes* Phase I buildings would not be Guidelines, windrows proposed for prominent from the ground at mid- the western property edge will range locations around the site obscure a significant portion of the H-2/Item 2 It would be hazardous for employees Bayer will ensure current site safety yes* because of flat topography and pipe bridge. from the site to walk across the guidelines address railroad crossing intervening buildings, but the pipe railroad tracks to reach the park. safety. Bayer and the City will bridge—as much as 30 feet in 5B-24 continue to examine the feasibility height—would obstruct the view of a pedestrian crossing at the corridor down Parker Street. 5C-16 terminus of Dwight Way. Visual Quality H-3/Item 7 Mid-Range Upper Story Views: From Bayer will cluster tall buildings and yes* Phase I Environmental Impacts the upper floors of the Fantasy stepback the structures from public Record building and others, the view corridors in accordance with proposed 80-foot-tall production the Site Plan, Site Standards and H-3/Item 1 Appearance from East Side of As proposed in the Site Development yes* building blocks would obstruct views Design Guidelines. Aquatic Park: Construction proposed Plan, Bayer will incorporate special of the Bay. 5C-16 for Phase I would place up to three architectural measures along the large buildings on two blocks along western boundary which include open the waterfront side of the site. spaces between buildings, windrows H-3/Item 8 Distant View: As seen from the The Pilot Plant height has been yes* Assuming heights of 80 feet, the and stepbacks. Berkeley hills near Dwight and reduced to 65 feet. Additionally, buildings would be visible from the Panoramic Way, the Pilot Plant, Bayer will cluster tall buildings and pedestrian path on the east side of Production Building B4.5 and the Fill stepback the structures from public the park. 5C-5 and Finish Building on block A5 would view corridors in accordance with be visible, interrupting views of the the Site Development Plan water. These tall buildings along the Guidelines. H-3/Item 2 View from Aquatic Park Picnic Areas: Bayer will shape building silhouettes yes* waterfront would contribute to the Although partially screened by trees, by stepping back upper floors along cumulative reduction in waterfront the Pilot Plant would be visible, building edges in accordance with views already occurring in Berkeley appearing as a boxy industrial the Site Development Plan. and Emeryville. 5C-19 building as seen from the park’s picnic areas. 5C-8 64 65 Exhibit H: Monitoring and Reporting Program

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Phase II Environmental Impacts

View Corridors: The pipe bridge has As proposed in the Site Development yes* H-4/Item 1 Appearance from East Side of Aquatic As proposed in the Site Development yes* H-6/Item 4 Park: In Phase II, the production Plan, Bayer will incorporate special the potential to directly impair the Plan, Bayer will preserve the view building on block A4, with maximum architectural measures along the view corridors around the site. Other corridors along Dwight Way and height of 80 feet, would substantially western boundary which include open buildings, if not set back from the Carleton by providing stepbacks and change the backdrop to Aquatic Park. spaces between buildings, windrows, street and stepped back in height, setbacks. Additionally, Bayer will 5C-19 and stepbacks. could indirectly obstruct the view create a view corridor on Parker. corridors. 5C-52

H-4/Item 2 Appearance from West Side of Aquatic As proposed in the Site Development yes* Park: New buildings completed in Plan, Bayer will incorporate special Historic Resources Phase II would decisively change the architectural measures along the appearance this area from a green western boundary which include open H-7/Item 1 Building 12: The proposed project Bayer will attempt to reuse and/or yes* Building 12 demolished in space to an urbanized section of spaces between buildings, windrows, would involve the demolition of B12, recreate architectural elements or 2001. Building features Berkeley and would partially obstruct and stepbacks. originally part of the Byron Jackson features from Building 12. documented in accordance distant views of the Berkeley Hills. Iron Works, designated by the Berkeley with Historic American 5C-22 Landmarks Preservation Commission Buildings Survey (HABS) as a Structure of Merit. 5D-7 standards with measured drawings submitted to the City; architectural features 64 H-4/Item 3 Glare: If glass were used on the Bayer will not use highly reflective yes* can be reproduced in the western facades of the production glass in the construction of future administration building, the glare would be buildings in accordance with the building. hazardous to motorists on I-80 and Design Guidelines. annoying to park users. 5C-22

H-7/Item 2 Cumulative Impact: Although Bayer will assemble an historical yes* In 2007 the historical demolition of Building 12 would not exhibit that will be displayed in one exhibit project, in the form H-4/Item 4 View from Dwight Way and Fourth As proposed in the Site Plan, Site yes* set a precedent, it would contribute or more public buildings on the of a narrated DVD, was Street looking South: Only production Standards and Design Guidelines, to a trend in demolishing buildings Bayer site. completed and made block A4 would be a prominent feature Bayer will incorporate special that reflect Berkeley’s past. 5D-8 available to the public. from this viewpoint. 5C-22 architectural measures into the design of the building which include articulations and modulations. Transportation (Traffic)

H-5/Item 2 Distant Views: Three buildings as Bayer will not construct any yes* H-7/Item 1 The intersection of Seventh and Bayer will fund the modification of yes* Signal installed at much as 80-100 feet tall would be buildings higher than 80 feet. Bayer Dwight Level of Service (LOS) would the signal at the intersection of intersection and left turn added to the skyline in addition to the will locate tall structures in clusters experience a 2% increase in traffic. Dwight and Seventh and create a route created in 1996. three Phase I buildings that would be some distance from property edges Traffic impacts at this intersection 6th Street/Dwight Way route for Bayer funded project. 68-80 feet tall, adding to cumulative in accordance with the Site would be significant. 5E-25 southbound/eastbound “Left Turn” viewshed impacts along the Development Plan. onto eastbound Dwight Way. waterfront. 5C-34

At two unsignalized intersections, City will signalize the intersection of yes* Signal installed at Phase III Environmental Impacts H-7/Item 2 Potter/Seventh St. and Heinz/Seventh Heinz and Seventh Street. intersection in 1994. Bayer St., traffic would increase 1 – 2%. paid 50% of cost in 1996. H-6/Item 2 Entrance to the Site: Plans include no As proposed in the Site Development yes New entry created at Existing conditions at both are already architectural treatment to announce Plan, Bayer will create a prominent intersection of 6th Street very poor. 5E-25 the Project’s entrance, establishing Main Entrance with special architectural and Dwight Way. its identity and relationship to the measures to establish its identity and community. 5C-51 relationship to the community. H-7/Item 3 Phase 1: Traffic at the Parker/Seventh City will signalize the intersection of yes* Bayer paid 50% of the cost St. intersection, which already meets Parker and Seventh Street. of signal installation in Caltrans warrants for signalization, 1994. Signal modified in H-6/Item 3 Articulation: Since the Project has Bayer will architecturally design yes* would increase by more than 3% in not been designed architecturally, buildings in accordance with the 1997, at Bayer’s expense, Phase 1. 5E-26 there is the potential for boxy Site Development Plan. The design due to street widening. buildings with unarticulated facades Guidelines provide for articulated that turn their backs on surrounding facades. streets while showing no human activity. 5C-51 66 67 Exhibit H: Monitoring and Reporting Program

DA Page/ DA Page/ Item # Impact Mitigation/Program In Compliance Comments Item # Impact Mitigation/Program In Compliance Comments Air Quality

H-7/Item 4 Phase II: Traffic at the Parker/ Bayer will locate the garage entrances yes* Project entrance relocated, H-8/Item 1 Asbestos: Demolition of 34 Bayer will comply with Federal yes Seventh St. intersection would on Seventh and Eighth Streets in with City’s approval, to buildings—11 in each of Phases I and regulations governing asbestos decrease under Phase II conditions accordance with guidance from the Dwight Way rather than II, 13 in Phase III—could cause removal. due to reorientation of the project City Traffic Engineer. Cutter. Entrance to parking asbestos to be released into the entrance from Parker to Cutter Way. lot is on Eighth St. atmosphere, potentially endangering The intersection of Cutter Way and workers. 5F-6 Seventh would then meet Caltrans signal warrants. H-8/Item 2 Building Contamination: When Prior to demolition, Bayer will yes buildings 46 and 46A, used to decontaminate buildings 46 and H-8/Item 5 Truck and Loading Impacts: Bayer’s Bayer will continue to maintain truck yes* manufacture plague vaccine, are 46A in accordance with Federal, current and anticipated truck and and loading operations off public demolished in Phase I, any vestige of State and local regulations and loading impacts are small. Changes roads. plague not eradicated could cause standards. to the anticipated truck and loading health impact to those in the operations could have a significant immediate vicinity on-site. 5F-6 impact 5E-27

H-9/Item 3 Fumigation: Fumigation of Bayer will conduct fumigation yes contaminated buildings could cause operations in accordance with 66 H-8/Item 6 Additional Parking Space Require­ Bayer will provide off-street parking yes* ments: Without provision for for all project phases. air quality impacts, depending upon Federal and State health and safety additional parking spaces, an the chemicals used. The use of regulations. estimated 200 construction workers formaldehyde in fumigating the would compete with local residents plague building could have significant for on-street parking. 5E-29 impacts. 5F-6

Construction Dust: Construction on Bayer will carry out dust yes* H-8/Item 7 Pedestrian Impact: Bayer employees Bayer will locate some parking on yes* No parking garage has H-9/Item 4 would be parking in a garage at the western side of Seventh Street been built. Traffic signal each block would emit approximately suppression measures per Seventh and Dwight and crossing to reduce pedestrian traffic. The modified in 1996. one ton of dust per month for one to Construction/Demolition Dust Seventh Street to get to work. traffic signal at Seventh/Dwight will two months. If dust suppression Suppression Program. Although the site plan calls for a be modified to allow pedestrian measures were not carried out, this pedestrian bridge at the third level of crossings. would be a significant impact. 5F-7 the garage, most employees would cross at street level. Special traffic controls would be needed. 5E-30 H-9/Item 5 Construction Vehicles: Construction Bayer will comply with existing City yes vehicles/equipment emitting exhaust ordinances and constraints imposed at construction sites have the by use permits to reduce exhausts potential of significant air quality emitted from construction vehicles/ H-8/Item 8 Air Quality: Vehicle trips generated Bayer will implement a Trip yes* See pages 20–23 for full impact. 5F-8 equipment. by the project would contribute to air Reduction Program to increase description of program. pollution. 5E-30 average vehicle riders (AVR) and reduce vehicular miles. H-9/Item 6 Overall Phase I Impacts: Bayer will carry out dust suppression yes* Construction would occur in four measures per Construction/ blocks over a period of five years. Demolition Dust Suppression cumulative traffic impacts During those years, there would be Program. four to eight months in which approximately one ton of dust per H-8/Item 1 While the traffic and air quality Bayer will implement a Trip yes* Same as above. month would be stirred up. 5F-8 impacts of each development project Reduction Program to increase AVR taken individually are small, the and reduce vehicular miles. cumulative impact would be significant. 5E-31 H-9/Item 7 Pilot Plant: There would be a period Bayer will carry out dust yes* of one to two months during which suppression measures per approximately one ton of dust per Construction/Demolition Dust month would be emitted. 5F-8 Suppression Program. H-8/Item 2 Truck Traffic During Construction: Bayer will restrict truck traffic to yes All vendors receive map Much truck traffic would occur during established routes. with detailed route to construction and could have follow as part of contract; H-9/Item 8 Phase II: During Phase II, over five years, Bayer will carry out dust yes* significant impact. 5E-35 City received copies in there would be six to twelve months suppression measures per concurrence with every during which approximately one ton of Construction/Demolition Dust new construction project. dust per month would be emitted. 5F-9 Suppression Program.

68 69 Exhibit H: Monitoring and Reporting Program

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OPERATIONAL IMPACTS PHASE I: Construction Impacts

North of the Site: In Phase I, Bayer will comply with City of Berkeley yes* Construction completed. H-9/Item 1 Nitrogen Oxide: Natural gas Bayer will comply with Federal yes Bayer complies with Bay H-10/Item 1 consumption would double by the regulations governing nitrogen Area Air Quality Manage­ construction of the two Pilot Plants Noise Ordinances and, if required, end of Phase II and increase to oxide emissions from natural gas ment District (BAAQMD) on the NW corner of the site would carry out noise suppression measures 3,400,000 therms per year by the fueled boilers. requirements on nitrogen generate noise exceeding the Berkeley per the Noise Suppression Program. end of Phase III, assuming natural oxide limitations. Community Noise Standards which gas is used to fuel boilers. Without would be heard in offices along Dwight measures to control emissions, this Way between the Southern Pacific would be a significant impact. 5F-9 tracks and Fifth St. 5G-6

H-11/Item 2 West of the Site—Demolition: Bayer will comply with City of Berkeley yes H-10/Item 2 Fuel Oil Combustion: Fuel oil will be Bayer will comply with Federal yes* There are no fuel oil- Demolition of buildings 2, 3, 4, 6, 7, 12, Noise Ordinances and, if required, used only in the event of natural gas regulations governing emissions operated boilers on-site. 14, and 16 would exceed background carry out noise suppression measures curtailment. A five-day supply would from fuel oil used to operate boilers. noise heard in picnic areas of Aquatic per the Noise Suppression Program. be stored which, if burned, would Park by 3 dBA or more for one to two result in emissions which would be a months. 5G-7 significant impact. 5F-10

68 OPERATIONAL IMPACT­—Traffic Air quality H-11/Item 3 West of the Site—Construction: Bayer will comply with City of Berkeley yes Construction completed. Construction of the Pilot Plant Noise Ordinances and, if required, H-10/Item 1 Cumulative development would increase Bayer will implement a Trip Reduction yes* Bayer has developed buildings on the NW corner and the carry out noise suppression measures vehicular emission of reactive organic Program to increase AVR and thus and implemented a Trip production building on the SW corner per the Noise Suppression Program. compounds (ROG) by approximately reduce vehicle use. Additionally, Reduction Program. of the site would generate noise which 0.12 tons/day (240 pounds) and employment of Berkeley residents Program reports are would be heard in Aquatic Park for two emissions of NO2 by about 0.42 tons/ and an overall low employee head submitted annually; see to three months for each block, with day (838) pounds). This would be a count per floor area reduce impacts pages 20–23 for details. peak construction noise exceeding significant impact. 4.4-3 of vehicular emissions. However, this background noise levels by 3 dBA or will not reduce impacts to a level of more. 5G-7-8 insignificance. A statement of overriding consideration must be prepared. PILOT PLANT Noise H-11/Item 1 North of the Site: In Phase I, Bayer will comply with City of Berkeley yes* Construction completed. construction of the Pilot Plant on the Noise Ordinances and, if required, H-10/Item 1 Operational Noise: Compressors, Bayer will comply with City of Berkeley yes NW corner of the site would generate carry out noise suppression measures boilers and cooling-tower fans in Noise Ordinances and, if required, noise exceeding the Berkeley per the Noise Suppression Program. utility buildings could increase noise carry out noise suppression measures Community Noise Standards which levels on the Project site, possibly per the Noise Suppression Program. would be heard in offices along Dwight significantly in Aquatic Park and Way between the Southern Pacific along Dwight Way. 5G-3 tracks and Fifth St. 5G-7

H-10/Item 2 Nighttime Traffic Noise: By Phase III, Bayer will comply with City of Berkeley yes West of the Site—Construction: Bayer will comply with City of Berkeley yes* Construction completed. swing shift would have 250 workers Noise Ordinances and, if required, H-11/Item 2 Construction of the Pilot Plant on the Noise Ordinances and, if required, and graveyard 80, compared to the carry out noise suppression measures NW corner of the site would generate carry out noise suppression measures present 50 and 10, respectively. The per the Noise Suppression Program. noise heard along the Aquatic Park for per the Noise Suppression Program. increase in nighttime employees, two to three months, with peak along with the relocation of parking construction noise exceeding to a parking garage, would increase background noise levels by 3 dBA or nighttime noise, especially to more. 5G-7-8 residents near the garage.

PHASE II: Construction Impacts H-10/Item 3 Overall Construction Noise: Without Bayer will comply with City of Berkeley yes noise control, construction and Noise Ordinances and, if required, H-12/Item 1 West of the Site—Construction: The Bayer will comply with City of Berkeley yes demolition noise would range from carry out noise suppression measures impacts of construction on noise Noise Ordinances and, if required, 78-91 dBA, intermittently, over the per the Noise Suppression Program. levels in Aquatic Park would be carry out noise suppression measures 30-year construction period, which similar to the impacts described for per the Noise Suppression Program. could cause significant impacts. 5G-5 Phase I. 5G-9 70 71 Exhibit H: Monitoring and Reporting Program

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Biosafety H-14/Item 5 Release of Infections Materials Due to Bayer will furnish verification that yes* Future Demolition: As operations these buildings have been disinfected using infectious materials such as in accordance with applicable H-12/Item 1 Accidental Exposure to EBV: Spills Bayer will implement an Emergency yes Emergency Preparedness plague, EBV, polio, and hepatitis are regulations, at the time of involving EBV are possible, such as Preparedness Program. Program submitted 8/92. discontinued, Bayer plans to demolish demolition. spills of EBV-infected cell cultures in the buildings housing these uses after incubators or possibly the overturning first decontaminating the buildings. It of fermenters in a catastrophe such as is unlikely that building disinfection a severe earthquake. Should such an would leave residual organisms posing event occur, there could be health a biohazard. 5H-51 impact to emergency responders. 5H-16

Chemical Hazards H-13/Item 2 On-Site Exposure to Plague Bacilli: Bayer will implement an Emergency yes* Plague bacilli no longer Plague vaccine production would Preparedness Program. present on site. continue until 1992-93 under National H-14/Item 1 Chemical Inventory Reporting: Bayer will provide a detailed yes Institutes of Health (NIH) Biosafety Materials stored in the laboratories inventory of all chemicals on site. Level 3 (BL3) containment would continue to be in small quantities requirements. 5H-38 and small containers. However, the City requires more information for emergency-response planning than is 70 given in the current reporting forms for H-13/Item 3 Off-Site Exposure to Plague Bacilli due Bayer will implement an Emergency yes* Plague bacilli no longer inventories. 5I-25 to Accidental Release: Catastrophic Preparedness Program. present on site. events such as earthquakes of magnitude 6.5 or higher could result in a failure in the integrity of the plague H-14/Item 2 Laboratory Chemical or Radionuclide Bayer will implement an Emergency yes Emergency Preparedness building containment system and Release during Delivery: If an upset Preparedness Program. Program submitted 8/92. cause the release of the plague bacilli. resulting in a chemical release occurred See pages 17–19 for In aerosol form (as particles on dust), during delivery at the warehouse or details. the bacilli could be inhaled and cause distribution to the laboratory buildings, pneumonic plague. Emergency there would be a potential hazard to responders and off-site populations workers and/or emergency responders could be exposed in this way if plague in the immediate vicinity. 5I-25 organisms were released as a result of catastrophic events. 5H-39

H-14/Item 3 Upset in the Laboratory: A release of Bayer will implement an Emergency yes Same as above. chemicals or radionuclides in the Preparedness Program. H-13/Item 4 Exposure to Class 1 and 2 Micro­ Bayer will implement an Emergency yes Emergency Preparedness laboratory during storage or use organisms during Research and Preparedness Program. Program submitted 8/92. would have no impact on the public Development Activities and during or the environment but would have a Quality Assurance Activities: Class 1 potential impact on workers and organisms are not known to cause emergency responders. 5I-26 disease in healthy adult humans, so accidental exposure would not impact laboratory handlers. Class 2 viruses, such as measles and polio, which are H-14/Item 4 Upset During Preparation of Lab Bayer will implement an Emergency yes Same as above. used in virus-inactivation studies, are Packs for Disposal: If an accident Preparedness Program. handled using safety equipment and resulted in release during handling of procedures that minimize risk of hazardous chemical waste, the exposure. However, if all precautions impact to workers and emergency fail, in the event of catastrophe, responders would be potentially individuals both on and off-site could significant. 5I-27 be exposed to diseases, some of which have no known antidotes. 5H-40 and (cont.) 5H-19 H-15/Item 5 Upset During Preparation of Radio­ Bayer will implement an Emergency yes Same as above. active Waste for Disposal: In a Preparedness Program. situation causing an upset in the radioactive waste storage area, a release of radioactive waste materials might occur with potentially significant impact to workers and emergency responders. 5I-27 72 73 Exhibit H: Monitoring and Reporting Program

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PRODUCTION OPERATIONS PHASEs II and III: Laboratory operations

H-15/Item 1 Delivery and Storage of Caustic: Should Bayer will prepare a Hazard yes* Hazard Operability Study H-16/Item 1 Increase in Laboratory Area: During Bayer will implement an Emergency yes See pages 17–19 for a release of caustic occur during unload­ Operability Study. completed. Phase III, laboratory area would Preparedness Program. details. ing or storage, containment and increase by 7% and chemical usage neutral­i­zation procedures are in place. would presumably increase by a However, the possibility of skin contact similar percent—with no additional with this material exists, with hazard to significant impact. 5I-32 workers and emergency responders. 5I-28

H-16/Item 2 Increase in Production Area: Bayer will implement an Emergency yes See pages 17–19 for Occupied area would increase during Preparedness Program. details. H-15/Item 2 Delivery and Storage of Compressed or Bayer will continue to train employees yes* Training for employees is Phases II and III to four and one-half Liquified Gas: These gases are not in the safe handling of compressed ongoing. On-site times the present level, and the toxic, but a release from compressed or and liquified gases. Additionally, Bayer emergency response quantity of chemicals in use would liquefied gas containers would impact will implement an on-site training training for city personnel increase proportionately. 5I-32 workers and emergency responders by program for City emergency started 4Q/92; ongoing exposing them to freezing temperatures responders. annually. See page 19 for from the liquefied gas or physical harm details. from the compressed (pressurized) H-16/Item 3 Use of Ammonia: In lieu of increased Bayer will obtain a certified Risk yes* RMPP completed and 72 gases. 5I-29 use of CFC’s, a new refrigeration Management Prevention Program accepted by City 7/94. system using ammonia is proposed. for the Ammonia Refrigeration Bayer performed first While CFC’s pose a cumulative risk to System. audit in 1997, one year the environment through destruction earlier than required.State H-15/Item 3 Acid Storage and Delivery: A potentially Bayer will prepare a Hazard yes* Completed. of the ozone layer, in the event of a now requires submittal significant impact to workers and Operability Study. release, ammonia would pose a of RMP’s in accordance emergency responders would be greater acute hazard to workers, with California Accidental present in the event of skin contact emergency responders, and the Release Prevention with phosphoric acid released in an public, and would also pose a hazard (CalARP) Program. RMP accident. 5I-29 to the environment. 5I-33 submitted 7/99.

H-15/Item 4 Accidental Mixing of Acid and Bayer will prepare a Hazard yes* Completed. Caustic: Mixing large quantities of Operability Study and an Off-site H-16/Item 4 Release of Ammonia: A risk of Bayer will obtain a certified Risk yes* Same as above. acid and caustic either by accidental Consequence Analysis releasing ammonia during delivery Management Prevention Program hook-up to the wrong fitting during and operation would exist. Workers for the Ammonia Refrigeration delivery or by simultaneous piping and emergency responders could be System. failures could result in an explosion exposed to hazardous conditions, and produce an acid or caustic mist and the environment and the public impacting workers, emergency could be exposed to a cloud of responders, and the public by ammonia vapor. 5I-34 inhalation and skin contact. 5I-30 Socioeconomics H-15/Item 5 Temporary Tanks: When properly Bayer will properly design and yes* Temporary tanks not in designed and maintained, the maintain temporary tanks. use. environmental impacts—employment temporary tanks would not pose a significant safety risk during storage. 5I-30 H-17/Item 1 Job Training: Of the 380 jobs created Bayer will design and implement a yes* Biotech Academy begun over the 30-year project period, an Biotech Academy at Berkeley High Fall, 1993, and Biotech estimated 58% would require some School and a Biotech Career Institute Institute created at Laney college education and another 17% at a local community college. College 1996, both H-15/Item 6 Fuel Delivery: Although emergency Bayer will prepare a Hazard yes* No delivery to date. require completion of high school. operating today as Biotech fuel would be delivered infrequently, Operability Study. Even with continuation of the First Partners. See page 27 for a risk of release during delivery would Source Employment agreement details. exist with potentially significant between the City and Bayer/Cutter, impact on workers and emergency many applicants referred by the City responders. 5I-30 would not be qualified for the new positions. 5J-4

H-16/Item 7 Fuel Delivery Route: The route traveled Bayer will inform suppliers of bulk yes All vendors receive map by bulk tanker trucks delivering fuel hazardous materials that carriers with detailed route to might cross residential areas, with must use truck routes approved by follow as part of contract; potentially significant impact. 5I-31 the City. City received copies 10/92. 74 75 Exhibit H: Monitoring and Reporting Program

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H-17/Item 2 Construction Jobs: The approximately Bayer has agreed that all recruitment yes* See pages 40–41 H-18/Item 3 Pilot Plant: The Pilot Plant would Same as above. yes* Same as above. 200 temporary construction jobs for new and replacement construction for details. create a need for child care for four would not necessarily be filled by employees will first be sought via the children. 5J-12 Berkeley residents. 5J-4 Construction section of the City’s First Source Employment Program, in accordance with union policy and Phase II: The project would create a Same as above. yes* Same as above. procedures. Bayer will establish a goal H-18/Item 4 need for child care for nine children of hiring one (1) out of every five (5) in Phase II. 5J-12 workers in the total construction work force from First Source throughout the life of the Development Agreement. H-18/Item 5 Phase III: The project would create a Same as above. yes* Same as above. need for child care. 5J-13 H-17/Item 3 Construction Job Training: To fill the Bayer will make a contribution to the yes* temporary construction jobs, some First Source Construction Berkeley residents would need Employment Program fund to assist CUMULATIVE IMPACTS training. 5J-4 & 5J-5 new construction workers with job start-up expenses. H-18/Item 1 The approximately 25 new projects Bayer will mitigate its share of the yes* Same as above. proposed or approved for West cumulative impacts by performing ENVIRONMENTAL IMPACTS—HOUSING Berkeley would create the need for the five mitigations listed above. 74 additional child care. 5J-13 H-17/Item 1 Of the total new housing demand, an Bayer will provide funds to the City’s yes* See page 42 for details. estimated 21 households would need Housing Trust Fund for 21 units of affordable housing. 5J-7 low- and very-low income housing Public Services and Facilities

environmental impacts—security H-17/Item 2 Pilot Plant (now B-60): Five affordable Same as above. yes* Same as above. housing units will be needed by the end of Phase I, including one unit of H-19/Item 1 Police: The Berkeley Police Bayer will take proper security yes* low-income and one unit of very low Department does not anticipate precautions recommended by the income housing needed by new more employees, equipment or costs City Police Department employees of the Pilot Plant. 5J-8 due to the proposed project provided that Bayer/Cutter takes proper security precautions recommended cumulative IMPACTS by the Department. 5K-1

H-18/Item 1 Total housing demand and affordable Bayer will mitigate its share of the yes* Same as above. environmental impacts—emergency services housing needs will be further cumulative impacts by performing increased by 25 other projects for the three mitigations listed above. expanded and new businesses in H-19/Item 1 The Berkeley Fire Department has Bayer will comply with all applicable yes* West Berkeley. 5J-9 stated that, if the Project complies provisions of the Fire Code. with all applicable provisions of the Fire Code, they would not need ENVIRONMENTAL IMPACTS—Child Care additional manpower or equipment as a result of the Project. 5K-2 H-18/Item 1 The approximately 380 new employees Bayer will provide funds into a Capital yes* Payments continued added over a 30-year period would Fund for the conversion of 40 pre­ through 2022 via 199 create an estimated demand for 40 school slots to infant care slots. Amendment; see page 43 H-19/Item 2 Fire flow requirements must be Bayer will determine fire flow require­ments yes new child care slots, 13 of which need Additionally, Bayer will provide funds for details. determined by the Project sponsor and provide adequate hydrants and water to be subsidized. 5J-10 into an Operating Fund for 14 and both hydrants and adequate supplies. Bayer will at all times maintain affordable child care slots to assist water supply provided if necessary. on-site fire suppression capabilities, as a low-income households. 5K-3 supplement or back-up to the City system.

H-18/Item 2 Phase I Overall: The Project would Same as above. yes* Same as above. create a need for 11 child care slots in H-19/Item 3 Pilot Plant (now B-60): The Project Bayer will determine fire flow requirements yes Phase I. 5J-11 sponsor must determine fire flow and provide adequate hydrants and water requirements and provide needed supplies. Bayer will at all times maintain hydrants and water supply. 5K-4 on-site fire suppression capabilities, as a supplement or back-up to the City system. 76 77 Exhibit H: Monitoring and Reporting Program

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H-19/Item 4 Above-Ground Tanks: Installation of Bayer will install above ground tanks yes Hydrology & Drainage, Wastewater & Groundwater the tanks would not result in an in accordance with all applicable fire increased need for Fire Department and safety regulations. H-20/Item 1 Capacity: The planned layout of the Bayer will improve the storm drains yes* Bayer completed manpower or equipment if the tanks Project would necessitate improvements under 4th Street and Dwight Way. improvements to 4th comply with all applicable fire and to the storm-drain system at the inter­ Street storm drain in safety regulations. 5K-4 section of Fourth and Parker Streets in 1994. Dwight Way order to alleviate any flooding there. 5L-3 improvements completed by the City, at Bayer’s cost, environmental impacts—Water in 1999.

H-19/Item 1 Phase I Overall: With the proposed Bayer will prepare and implement a yes* Preliminary report project, water consumption at the water conservation program in submitted to City 1/93. H-20/Item 2 Runoff Water Quality: The Project Bayer will implement a Best yes See page 15 for details. site is expected to increase by 10% or conjunction with East Bay Municipal Assessment and study would be expected to contribute Management Practices to meet the 10,000 gallons per day over existing Utility District (EBMUD), including of water utilization pollutants to downstream receiving Federal Clean Water Act. levels. 5K-7 evaluation of the Project’s demand completed by independent waters, pollutants to include heavy on the public water delivery system. consultant in 1997 and metals, suspended solids, nutrients the final report was sub­ and floatables. 5L-4 mitted to the city 3/98. Began implementation of recommendations in 1998. Spill Hazard: Accidental spills and Bayer will implement a Best yes (See page 15 for details.) H-20/Item 3 Same as above. 76 chronic leaking of hazardous and/or Management Practices to meet the toxic materials can contribute Federal Clean Water Act. H-20/Item 1 Pilot Plant: When the proposed Pilot Bayer will submit a preliminary yes* Submitted to City 1/93. pollutants to storm-water runoff if Plant begins operation, it would feasibility study for water materials are stored outside. Future increase water consumption at the site reclamation. production would increase the by a maximum of 10% or 10,000 volume of materials to be stored. 5L-5 gallons per day. Actual water consumption is expected to be less than this because other water-using CUMULATIVE IMPACTS—WASTEWATER operations will be phased out. 5K-10 H-21/Item 1 Trunk Sewer 100 (15-2 Project): The Bayer will evaluate capacity of trunk yes* Consultant report Project would impact the recently sewers and local collection systems submitted 12/22/92. upgraded trunk sewer 100, which serving its site and upgrade them as H-20/Item 2 Pilot Plant: Water requirements for Bayer will upgrade water delivery yes extends north from Basin 15-103. needed to accommodate the the Pilot Plant including fire flow lines as needed to preserve Sewage flows from the project, added construction program. could exceed the capacity of existing adequate fire flow. to the current ground water infiltration feeder lines. 5K-11 and rainfall inflow (I/I) contribution, would further aggravate capacity problems. 5L-8 H-20/Item 3 Phase II: Bayer’s water demand will Bayer will submit feasibility study yes increase by about 0.05 million for water reclamation system and gallons per day (MGD) in Phase II. will implement measures that are 5K-11 feasible over the term of the H-21/Item 2 Pilot Plant: The Pilot Plant would Bayer will evaluate capacity of trunk yes* Consultant report Development Agreement. discharge a maximum of 10,000 sewers and local collection systems submitted 12/22/92. gallons per day to the sewer, further serving its site and upgrade them as aggravating capacity problems. 5L-8 needed to accommodate the construction program. H-20/Item 4 Phase III: Water demand will further Bayer will upgrade water delivery yes increase by about 0.2 MGD between lines as needed to preserve 1990 and 2020. 5K-11 adequate fire flow. H-21/Item 3 Pilot Plant: The proposed Pilot Plant Bayer will evaluate capacity of trunk yes* Consultant report would result in increased sewage sewers and local collection systems submitted 12/22/92. flows to local collection lines within serving its site and upgrade them as H-20/Item 5 Water requirements for the project, Bayer will upgrade water delivery yes Basin 15-103. Most of these older needed to accommodate the including fire flow, could exceed the lines as needed to preserve lines are subject to high inflow and construction program. capacity of existing feeder lines. 5K-11 adequate fire flow. infiltration. The proposed project would provide a new local collection system for the Project site, generally CUMULATIVE WATER IMPACTS following existing and proposed roads. Some on-site collectors would H-20/Item 6 While Bayer’s water demand would Bayer will implement a water yes need upgrading to City standards. be limited, it would contribute to the conservation and reclamation 5L-9 and 5L-10 growing demand for water in the Bay program as described above Area. 5K-12 78 79 Exhibit H: Monitoring and Reporting Program

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H-21/Item 4 RR Collector: Additional sewage Bayer will evaluate capacity of trunk yes* Consultant report Energy and Waste flows from the site would impact the sewers and local collection systems submitted 12/22/92. facilities in Basin 17 including the RR serving its site and upgrade them as collector located along the railroad needed to accommodate the H-22/Item 1 At Project completion, electrical Bayer will implement an Energy yes* Program outline tracks at the western boundary of the construction program. energy consumption would increase Conservation Program. submitted 2/11/93. Pilot site and the smaller local collection an estimated 400% over present program initiated in 1993 lines. The RR collector flows south to levels, to 76,000,000 kWh per year. using energy efficient the larger Potter Street line, which This would not significantly impact lighting expanded to has a history of capacity problems. Pacific Gas & Electric’s ability to include new construction. 5L-10 deliver power, but it would contribute “Energy Efficient Design to depletion of fossil fuels and use of Compliance” Engineering nuclear power, which creates Dept. procedure adopted hazardous waste disposal impacts. in 1996. See page 15 for H-22/Item 5 Potter Street Line: Increased sewage Bayer will evaluate capacity of trunk yes* Consultant report 5M-2 details. flows from the proposed project sewers, to include the Potter Street submitted 12/22/92 would further impact bottleneck Line, and local collection systems sections of the Potter Street line. serving its site and upgrade them as 5L-10 needed to accommodate the H-23/Item 2 Natural Gas Consumption: in Phase Bayer will implement an Energy yes* Program outline construction program. II, natural gas consumption at the Conservation Program. submitted 2/11/93. site is expected to double, from 845,000 therms to 1,700,000, and at Additional energy completion of Phase III, to rise conservation efforts are 78 H-22/Item 6 Wastewater Constituents: The Bayer will continue to obtain proper yes* Bayer continues to approximately 400% over current ongoing. Project would generate wastewater permits for discharges to the maintain proper EBMUD levels. This increase could contribute containing chemical and biological EBMUD sanitary sewer systems. permits and complies to cumulative depletion of fossil oxygen demand (COD, BOD) sugars, with all requirements fuels. 5M-3 chemicals used in Research & contained within, Development, and amino acids. They including discharge could impact the wastewater prohibitions, sampling Generation of Non-Toxic Solid Wastes: Bayer will implement a Waste yes* Solid waste minimization treatment plant operated by East Bay and monitoring, and H-23/Item 3 The volume of non-toxic solid waste Reduction Program. program in place. Municipal Utility District (EBMUD) reporting. generated on the site is expected to as well as the ultimate receiving triple by the end of Phase 3. In cubic waters in San Francisco Bay. 5L-11 yards per month, uncompacted waste is expected to increase from 138 to about 410, and compacted wastes from H-22/Item 7 Local Collection System: The project Bayer will evaluate capacity of trunk yes* Consultant report the present 190 to about 570 at project would increase sewage flows to local sewers and local collection systems submitted 12/22/92. completion. 5M-4 collection lines within Basins 15-103 serving its site and upgrade them as and 17-101. However, it would provide needed to accommodate the a new local collection system for the construction program. Cumulative Impacts project site which would follow the existing and proposed roads at site. H-23/Item 1 The 25 new approved projects in the Bayer will implement an Energy yes* Program outline 5L-11 West Berkeley area will demand Conservation Program. submitted 2/11/93. increased energy over time. 5M-5 environmental IMPACTS—groundWATER

H-23/Item 2 The 25 approved projects in West Bayer will implement a Waste yes* The seepage of groundwater into In conjunction with Best Management yes* See page 16 for details. H-22/Item 1 Berkeley will generate an increase in Reduction Program. Aquatic Park has the potential to be Practices, Bayer will conduct quarterly waste by an unknown amount. 5M-5 impacted by any contaminated soil or monitoring of surface water groundwater at the site. Although discharge. infiltration at the site is slow, contami­ nation in the soil will eventually enter Seismic Safety the groundwater. 5L-16 and 5L-17 H-23/Item 1 There is potential for damage to Bayer will implement a Seismic yes* Geotechnical report structures from ground shaking. A Safety Program for new structures submitted 7/92; significant impact to workers and and structures to remain. approved by City Council Cumulative Water Quality Impacts: Bayer will implement a Best yes* See page 16 for details. H-22/Item 2 emergency responders would be present 9/92; all new buildings The Project’s potential impacts on Management Practice to meet from falling and moving objects, ground comply with storm water runoff pollution will Federal regulations of the National shaking during aftershocks, spilled recommendations. require numerous measures in Pollution Discharge Elimination materials, and/or loss of power and cooperation with the City and County. System. water. 4.3-20 5L-17 80 81

Exhibit B: Mitigation Monitoring & Reporting Program

Exhibit B Mitigation Monitoring & Reporting Program for First Major Amendment, 1999

IMPACT MITIGATION / PROGRAM In Compliance COMMENTS IMPACT MITIGATION / PROGRAM In Compliance COMMENTS

Cumulative Transportation 4) Intersection at Seventh Street & Ashby 7th Street Improvement Project: yes Avenue (currently at LOS D) would Bayer to contribute $750,000 (from funds committed 1) Intersection at Seventh Street & Complete Improvements: yes $490,033 remaining in this decline to F. pursuant to the 1992 Development Agreement) to Dwight Way (currently at peak period (1) Within the existing curb-to-curb, stripe the category to be paid upon City-sponsored Seventh Street Improvement Project LOS C) would decline to F. eastbound and westbound approaches on Dwight request from the City. (including improvements to Seventh and Potter Way for two travel lanes (this will require the loss of Streets) which begins this year. The project will result three parking spaces on the north side of the in maintaining a LOS D through the year 2010. Bayer eastbound approach); and (2) To improve to fund portion of improvements; City to construct. intersection efficiency, install overhead signs on the mast arm to clearly mark which lane is used for left turns to Dwight Way (this will require removal of 5) Intersection at Sixth Street & University (a) Complete Improvements: yes one traffic signal head on the mast arm to Avenue (currently at LOS F) would Bayer to support City’s upcoming project to improve accommodate signs). All improvements will result experience further delays (worsened signal interconnect and coordination, by providing in maintaining a LOS C through the year 2010. Bayer LOS. vehicle detection (inductive loops) and pedestrian to fund improvements; City to construct. push buttons at up to 4 intersections with semi- actuated signal operations. The overall interconnect and coordination project will identify the 4 intersection locations and when complete allow San Pablo to run 80 2) Intersection at San Pablo Avenue & Complete Improvements: yes Same as above Dwight Way (currently at LOS D) would City and Caltrans are currently modifying traffic more smoothly and to serve as a bypass route for decline to F. signal to provide protected left-turn phasing on San traffic that might otherwise use the Sixth Street/ Pablo Avenue. The following additional University intersection. All improvements will result in improvements are required: Add No Parking zones a LOS improvement at Sixth & University from F to D on both Dwight Way approaches to provide two in the year 2005. Bayer to fund portion of project; City lanes at least during peak times (this will result in a to carry out modifications. loss of one parking space on the north side of the westbound approach and three parking spaces on (b) Provide Fair Share Funding (based on Bayer’s share yes the south side of the eastbound approach during of growth in peak traffic generated) in the Amount of peak times). All improvements will result in 4% of Total Costs for Completion of the Following maintaining a LOS D through the year 2010. Bayer Improvements: (1) Eliminate two metered parking to fund the additional improvements; City to spaces on the westbound approach on University construct. Avenue and stripe a right-turn lane; and (2) Modify the northbound approach on Sixth Street to provide two left turn lanes. These improvements will result in a LOS improvement from F to D through the year 2010. 3) Intersection at San Pablo Avenue & Complete Improvements: yes $550,000 requested from Bayer to fund portion of improvements; City to Ashby Avenue (currently at LOS D) (1) Widen the westbound approach on Ashby Avenue and provided to City in construct. would decline to F. (along the Walgreen’s frontage) to provide an 2004. exclusive 80-foot long right-turn lane; (2) Stripe a northbound San Pablo Avenue right-turn lane within the existing curb-to-curb; (3) Extend the No Parking 6) Bicycle Access to and from the Bayer Parker Street Bicycle Connection: yes $50,000 paid to City in zone on the southbound approach of San Pablo campus could be affected by future Bayer to fund (100%) bicycle travel way improvements 1992. Avenue to provide a right-turn lane within the existing cumulative traffic. on Parker Street between Seventh and Ninth Streets to curb-to-curb (this will require a loss of two parking improve safety and convenience for cyclists, up to spaces); and (4) Provide a protected-permitted left- $30,000 (improvements to be identified as part of turn phase for eastbound Ashby Avenue. Ninth Street Bicycle Boulevard plan). This work will Improvements as shown in attached Figure 1 and improve Bayer campus accessibility to and from detailed in attached preliminary cost estimate will Ninth Street over current conditions. Bayer to fund result in maintaining a LOS D through the year 2010. improvements; City to construct. Mitigation is based on City’s having secured sufficient right-of-way to make the needed widening on the westbound approach. Bayer to fund improvements; City to secure right-of-way and construct. 7) Bicycle Accessibility throughout West Bicycle Boulevard Participation: yes Same as above. Berkeley could be affected by future Bayer to pay fair share portion of City sponsored cumulative traffic. “Bicycle Boulevard” improvements along Ninth Street, up to $30,000 (fair share to be computed based on Bayer’s peak hour trips as a percentage of cumulative total West Berkeley trips). Improvements will improve bicycle accessibility throughout entire West Berkeley area. Bayer to fund portion of improvements; City to construct. 82 83 Index

IMPACT MITIGATION / PROGRAM In Compliance COMMENTS Index

Included in 2008 Annual Report 8) On-site parking supply and peak-hour West Berkeley BART Shuttle: yes $106,348 plus lease cost 1992 DA 1999 Amendment Page Number trip generation would be impacted. Bayer to provide continued funding of publicly paid in 2008 administered shuttle program at maximum level of Article 3, p. 12 $50,000 annually throughout term of Agreement Exhibits C, D, E (2022). DEVELOPMENT OF PROJECT SITE yes 3 • Square Footage by Use and Location • Map of Project Site 9) On-site parking supply and peak-hour Multi-Shift Employment: yes trip generation would be impacted. Bayer to provide for continuous implementation of • Proposed Schedule for Further Development swing/graveyard employment (traffic off-peak hours) which averages 18% of total work force throughout Exhibit G-1 term of Agreement (2022). Continuation of this BIOTECHNOLOGY EDUCATION TRAINING PROGRAM yes 27 program (which is currently in effect) will reduce both parking and traffic impacts. Exhibit G-2 EMPLOYMENT HIRING PROGRAM no 40

10) On-site parking supply and peak-hour TDM Programs: yes Exhibit G-3 trip generation would be impacted. Bayer to continue implementation of transportation AFFORDABLE HOUSING PROGRAM no 42 demand management programs from 1992 82 Development Agreement at current levels throughout Exhibit G-4 term of Agreement (2022). Continuation of this program (which is currently in effect) will reduce both CHILD CARE PROGRAM yes 43 parking and traffic impacts. Exhibit G-5 PUBLIC INFRASTRUCTURE PROGRAM yes 12 11) Both short and long- term parking Project Management: yes supplies would be inadequate. Implement parking program to fully satisfy Bayer’s Exhibit G-6 projected peak parking demands on site at all times. Parking supply will be verified at time of each new TRANSPORTATION DEMAND MANAGEMENT PROGRAm yes 20 construction project to demonstrate adequacy both during construction and upon completion/occupancy. Exhibit G-7 A total of 1,078 parking spaces must be available with HISTORIC PRESERVATION AND PUBLIC ART NO 45 anticipated year 2005 construction, and 1,329 parking spaces with full buildout (anticipated in 2010). Exhibit G-8 ENVIRONMENTAL PROTECTION yes 14 12) Project traffic would increase year 2010 yes Sum of mitigation measures: Exhibit G-9 peak hour vehicle delay at 5 Application of traffic mitigation measures “a” through intersections by 54 total hours. “k” would provide net reduction in peak hour vehicle COMMUNITY PROGRAMS yes 46 delay at five intersections of 350 total hours. Exhibit G-10 ANIMAL CARE AND USAGE yes 47

Exhibit G-11 PEACE AND JUSTICE PROGRAM NO 50

Exhibit H MONITORING AND REPORTING PROGRAM NO 61 84 85

Acknowledgments

Bayer HealthCare would like to thank our dedicated employees and community ­partners who provided information for this report—and whose work makes ­Berkeley a better place to live and do business:

Bayer Employees: Jeff Bowman, James Breitlow, Ezra Chacha, Mark Collins, Cory Duncan, Melissa Francescut, Linda Moon, Jim Newgren, Laura Robinson, Ellen Sasaki, Nancy Yee, Sam Zabor

Community Partners: Debbi Bellush, Executive Director, and staff at Biotech ­Partners; Molly Fraker, Executive Director, Berkeley Public Education Foundation; Susan Ferrera, Parks Superintendent, City of Berkeley; Maria Padilla, West Berkeley ­Foundation; Karen Fuller, Director, Sick Child Care Program, Arlyce Currie, Bananas

Joerg Heidrich, Senior Vice President & Global Head of Product Supply—Biotech

84 Sreejit Mohan, Director, Public Policy & Communications

Trina Ostrander, Manager, Development Agreement & Communications

Gordon Chun Design, Berkeley, California

Printed by Autumn Press, Berkeley, California 86

86

Kogenate, made only at Bayer HealthCare’s Berkeley facility, celebrated its twentieth anniversary in 2008. Kogenate is one of the world’s first and most complex protein-based drugs.

Bayer HealthCare 800 Dwight Way Berkeley, California 94710