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Home My WebLink About55A - RESO SOLAR TECHNREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MAY 5, 2008 TITLE: PILOT FEE-WAIVER ENCOURAGE USE OF TECHNOLOGIES CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended PROGRAM TO ^ As Amended SOLAR ^ Ordinance on 1S' Reading ^ Ordinance on 2"d Reading ^ Implementing Resolution ^ Set Public Hearing For_ CITY MANAGER RECOMMENDED ACTION CONTINUED TO FILE NUMBER Adopt a resolution authorizing a two-year pilot program to encourage solar installations by temporarily waiving permitting fees. DISCUSSION The City Council's Development Committee recently discussed efforts to broaden the City's environmental agenda including, for instance, supporting the Energy Efficiency and Conservation Block Grant (EECBG) program sponsored by the U.S. Conference of Mayors. Under such a program, Congress would annually appropriate both competitive and direct formula-based funding for local energy and conservation projects. Though ultimately interested in a more comprehensive approach to environmental and energy issues, the Development Committee at its February 7, 2008, meeting recommended that the City Council consider a pilot program to encourage installation of solar technologies in Santa Ana. The opportunities to encourage these technologies are immediate - and they're another step toward creating a more sustainable community. The two primary uses of solar energy include using the sun to heat water and/or to generate electricity. Both rely on widely tested and proven technologies. But their application has in the past been limited in that the acquisitionjconstruction costs have been relatively high in comparison to potential cost savings. That dynamic continues to shift, however, given the ever increasing cost of energy as well as the heightened awareness of environmental concerns, climate change and the need to conserve energy. Additionally, advances in solar energy manufacturing technologies, as well as expanded markets for solar energy products, are continuing to improve the cost/benefit equation. The City has processed relatively few solar energy projects (less than ten projects per year) in recent years. Though the number of solar projects undertaken over the next two years is difficult to predict, it is expected to grow. 55A-1 Solar Permit Fee Waiver Plan May 5, 2008 Page 2 The City' s review of solar energy projects involves both plan check and inspection services. These plan check and inspection services are estimated to require an average of one staff-hour for passive solar water heater projects and ten staff-hours for solar electrical systems. At an average rate of $55/hour the respective permit fees would range from approximately $55 to $550 per project. In an effort to promote greater sustainability in the community, it is recommended that the City Council authorize a two-year permit incentive program for solar energy projects. Such a program would waive permit/ inspection fees as an incentive to encourage solar installations. Homeowners, business owners, contractors and others would still submit plans and obtain permits and inspections - but the fees for such projects would be waived during the pilot program. While the number of solar energy projects is expected to grow, this increase and the corresponding fee waiver are not expected to generate a significant effect on workload/ staffing, nor result in a significant reduction in revenue. Enacting the two-year pilot permit incentive program would require City Council approval of an amended fee resolution. The attached survey (Exhibit 1) of prominent Orange County communities shows that most have relatively consistent permitting/inspection practices for solar energy projects and, yet, only three cities offer a specific permit incentive to encourage such projects. FISCAL IMPACT It is estimated that the total cost of two-year pilot program would be $26,500. Of this total $6,500 would be directed to system programming, marketing, and other incidental costs. The remaining $20,000 represents an estimate of uncollected permitting fees for the general fund revenue accounts for Building Plan Check (account no. 011-01-5401), Plumbing Plan Check (account no. 011-01-5402), Electrical Plan Check (account no. 011- 01-5403), Building Permits (account no. Oll-O1-5911), Plumbing Permits (account no. 11-01-5912), and Electrical Permits (account no. 11-01- 5913) . APPROVED AS TO FUNDS AND ACCOUNTS: 'L---~ J M. Trevino Executive Director Planning and Building Agency SG:rb rb\reports\Solar Permit Fee Waiver Program ~MCn~.~~r ~~ Francisco Gutierrez Executive Director Finance & Management Services Agency~r '"" 55A-2 O O N N r w ~_ U H J w 0 a g 0 ~ ~ C ~ ?+w N ~ L ~ ~ m ~ ~ ~ N ~ ~ > _ ~ T _ ~ Z Z Z Z Z Z ~ ^ ^ ^ ^ ^ ^ ^ .a Q M~ {F~. ~ v, ~ ~' m Q. lR ~~ d d d d ~ ~ ~ d ^ ^ ^ ^ ^ ^ ^ ^ v is ~ ~ Q~ ~ . ~ Q ~~ :~ ~ d d d d d d d d ^ ^ ^ ^ ^ ^ ^ ^ { ~ Q ~' , .t: ~ L ~.! ° c~ W M N p d d d d `' ~ >- ~ Z ~ >- >- ~ ^ ^ ^ ^ ^ ^ ^ ^ ,;~ e~ O Q ~~ ~ m m m m m ~ m .~ ~ m s ~ ~ °° ~ m L d C ~ .m .c ~ o m ~_ ~ ~ ~ ~ ~ o w o m ~ a ~ t~ ~ ~ ~ ~ ~ ~ a , ~ a ~ ~ ~ m ~' ~ ~ z 5 ~i16~T 1 bk:4/29/08 RESOLUTION NO. 2008-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING A TWO-YEAR PILOT PROGRAM TO ENCOURAGE SOLAR INSTALLATIONS BY TEMPORARILY WAIVING PERMITTING FEES BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The City Council Development Committee recently discussed efforts to broaden the City's environmental agenda including, for instance, supporting the Energy Efficiency and Conservation Block Grant (EECBG) program sponsored by the U.S. Conference of Mayors. Under such a program, Congress would annually appropriate both competitive and direct formula-based funding for local energy and conservation projects. B. Though ultimately interested in a more comprehensive approach to environmental and energy issues, the Development Committee at its February 7, 2008, meeting recommended that the City Council consider a pilot program to encourage installation of solar technologies in Santa Ana. The opportunities to encourage these technologies are immediate -and they are another step toward creating a more sustainable community. C. The two primary uses of solar energy include using the sun to heat water or to generate electricity. Both rely on widely tested and proven technologies. But their application has in the past been limited in that the initial acquisition/construction costs have been relatively high in comparison to potential cost savings. That dynamic continues to shift, however, given the ever increasing cost of energy as well as the heightened awareness of environmental concerns, climate change and the need to conserve energy. Additionally, advances in solar energy manufacturing technologies, as well as expanded markets for solar energy products, are continuing to improve the cost benefit equation. D. The City has processed relatively few solar energy projects in recent years - less than ten (10) per year. Though the number of solar projects undertaken over the next two years is difficult to predict, it is expected to grow. E. The City's review of solar energy projects involves both plan check and inspection services. These plan check and inspection services are 55A-4 Resolution No. 2007-XXX Page 1 of 3 estimated to require an average of one staff-hour for passive solar water heater projects and ten staff-hours for solar electrical systems. At an average rate of $55/hour the respective permit fees would range from approximately $55 to $550 per project. This amount is de minimis when compared to the amount of plan check and inspection fees the City receives in a year. F. A two-year permit incentive program for solar energy projects would waive permit/ inspection fees as an incentive to encourage solar installations. Homeowners, business owners, contractors and others, who would still submit plans and obtain permits and inspection, to not pay these fees for such projects during the pilot program. While the number of solar energy projects is expected to grow, this increase and the corresponding fee waiver would generate only a trivial effect on workload/staffing, and would result in an insignificant reduction in revenue. Section 2. The City Council hereby waives, for a two year period commencing upon the date of adoption of this Resolution, both plan check and inspection service fees for solar energy projects that generate heat or electricity and for which permits are granted. This waiver shall apply to permits granted no later than two years from the date of adoption of this Resolution. Section 3. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this day of .2008. Miguel A. Pulido Mayor APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney By: Benjamin Kaufman Chief Assistant City Attorney Resolution No. 2007-XXX 55A-5 Page 2 of 3 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2008-XXX to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana 55A-6 Resolution No. 2007-XXX Page 3 of 3