Honorable Mayor and Members of the Hermosa Beach City Council Adjourned Regular Meeting of May 11, 2015
Title
EXTEND CITY FEE WAIVERS, REDUCTIONS AND INCENTIVES FOR PHOTOVOLTAIC SOLAR PROJECTS, SMALL WIND ENERGY SYSTEMS, ENERGY UPGRADE CALIFORNIA AND HERO PROJECTS, AND OTHER INITIATIVES TO ADVANCE SUSTAINABILITY
(Continued from meeting of April 28, 2015)
(Environmental Analyst Kristy Morris)
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Recommended Action:
Recommendation
To extend the following incentives and report back to the Council in two years:
1. Waive preferential parking permit fees for 100% alternative fuel vehicles (100% electric, fuel cell, CNG vehicles, or other technologies not utilizing fossil fuels).
2. Rebate building permit fees for service upgrades for 100% alternative fuel vehicles (e.g., electric charging, CNG).
3. Rebate 50% of building permit plan check/inspection fees (charging only the outside plan check fees) for improvements that: (A) directly and substantially increasing energy efficiency (such as at least 15% above city codes) for buildings constructed earlier than 2000, (B) incentivize LEED or Build-It-Green Program certification (directly and substantially increase energy efficiency, water conservation and/or waste reduction), or (C) otherwise involve improvements that will make a significant contribution, exceed code requirements, or are early adoption-type behaviors. The Community Development Director shall make determinations.
4. Rebate 50% of building permit plan check/inspection fees for retrofit improvements that qualify for Energy Upgrade California or PACE programs funding, such as HERO, charging only the outside plan check fees if applicable.
5. Waive the Planning and Building permit fees associated with installation of photovoltaic systems, excluding building permit fees to upgrade the structure to accommodate the system.
6. Waive the Planning permit fees associated with installation of small wind energy systems, and rebate the Building permit fees (excluding building permit fees to upgrade the structure to accommodate the system), charging only the contract service, outside agency and outside service fees the City or applicant are required to pay; and,
7. Provide priority permit processing for all of the above.
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Background:
In 2012 the Council extended incentives #1 to #5 above to incentivize sustainable transportation and green building to support the city's carbon neutral and goals and environmental practices, which continue to be Council objectives. In July 2011 the Council approved incentive #6 above for a two-year period to incentivize use of alternative technologies and carbon reduction. In 2013, the Council extended incentives # 1-7 and requested that staff report back to the Council in two years.
Fees reductions since the Council last considered the various incentives include:
1. Waive preferential parking permit fees for 100% alternative fuel vehicles: 87 permits from July 2013 to present @ $40 per permit is $3,480 waived. As comparison, 20 free permits in 2013, with 15 in 2012, and 13 free permits were provided in 2011. Over 5,000 preferential parking district permits are issued annually.
2. Waive building permit fees for service upgrades for 100% alternative fuel vehicles (e.g., electric charging, CNG): 1 permit- $113 waived
3. Provide up to 50% rebate in building permit fees for energy efficiency or to incentivize LEED or Build-It-Green Program certification: None
4. Rebate up to 50% of building permit fees for Energy Upgrade California retrofits: None
5. Waive all fees for photovoltaic: 50 permits (all residential) at $395 per permit- $19,750 waived. This compares to 14 in 2009, 16 in 2010, and 20 in 2011 and 17 through June 2013).
6. Waive planning and building fees, excluding out of pocket costs for small wind energy systems: none (the application is tabled for further information from the applicant)
Other incentives granted by the City Council include complimentary electric vehicle charging station usage and waiver of silver meter fees for 100% alternative fuel vehicles.
Analysis:
As in previous years, programs have not been significantly used, although there has been steady use of the parking permit and photovoltaic fee waiver. The proposal has been changed to provide a fee rebate for fees associated with building permits to ensure final inspections are obtained. As in prior years the City will continue to issue press releases advising the community about the incentives, the Community Development Department provides notice of these incentives on its website, they are prominently displayed at the department office, and they have been included in the E-Newsletter. The City Council's Strategic Plan goals to advance sustainability and reduce its carbon footprint will continue to be supported by extending these programs.
Fiscal Implications:
Fiscal impact continues to be minimal for most incentives due to lack of qualifying activities, except for fee waivers for photovoltaic installations; in FY 13/14-present fees in the amount of $19,750 were waived. In the previous fee reduction period, over $6,715 in fees were waived. Fee waivers for parking permits have increased to 87 permits from 20 permits in the previous waiver period and would be expected to increase as people acquire EV vehicles. Rebating 50% of building permit fees for improvements to increase energy efficiency (such as insulating existing buildings to a specified standard, double pane windows, energy star furnaces and water heaters, etc.) could amount to a hundred dollars or more per applicant; as the new commercial 'HERO' program goes into effect it is possible the City may see waiver/rebate requests being made. Since rebates apply only to aspects of construction that make a significant contribution to sustainability, fiscal exposure would tend to be limited. Planning fees for conditional use permit applications for small wind energy systems are currently over $3200 per application, including building permit fees that would be waived; due to wind characteristics and height restrictions we anticipate applications are unlikely.
Attachments:
None
Respectfully Submitted by: Kristy Morris, Environmental Analyst
Noted for Fiscal Impact: Viki Copeland, Finance Director
Approved: Tom Bakaly, City Manager