CC - Item 9D - Waiving 30 Percent of the Plan Check and Building Permit Fees for Installation for Photovoltaic Solar Panels on Commercial Buidlings 10,000 sq. ft. or lessROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: JEFF ALLRED, CITY MANAGER
DATE: SEPTEMBER 28. 2010
SUBJECT: WAIVING 30% OF THE PLAN CHECK AND BUILDING PERMIT FEES
FOR INSTALLTION OF FOR PHOTOVOLTAIC SOLAR PANELS ON
COMMERCIAL BUILDINGS 10,000 SQUARE FEET OR LESS
Summary
The City Council will consider the implementation of financial incentives for small
businesses to install photovoltaic solar panels.
Background
At the July 13, 2010 City Council meeting staff was directed to explore the possible
benefits of waiving fees for photovoltaic solar panels that are installed on commercial
buildings. In the last five years there have been no permits issued for the installation of
photovoltaic solar panels for small business operations occupying buildings 10,000
square feet or less in the City of Rosemead. Determining the amount of electricity use
by a small business is difficult without having copies of electrical bills from various types
of businesses in the city. A furniture retailer would use significantly less electricity than
a manufacture or a service related business.
Using a range of numbers that would most likely encompass the range of usage of
small businesses it is possible to determine the size and cost of photovoltaic solar panel
systems necessary to offset the electrical usage of a variety of businesses. Assuming
a small business that wishes to offset their electricity bill by 25%, occupying a range of
space between 2,000 and 10,000 square feet, the range of City fees could be between
$1,163 to $3,659. A small business that wishes to offset their electricity bill by 50%,
occupying a range of space between 2,000 and 10,000 square feet, the range of City
fees could be between $1,960 to $6,379. While contractually 70% of the building fees
are paid to Willdan and Associates, the City's portion of the fees could be waived to
provide the business owner with a financial incentive. Any waiver in excess of 30% of
the fees would result in a subsidy from the City and could constitute an inadvisable gift
of public funds.
ITEM NO. ~0
APPROVED FOR CITY COUNCIL AGENDA:
City Council Report
September 14, 2010
Page 2 of 2
STAFF RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 2010-61 waiving 30% of
the plan check and building permit fees for photovoltaic solar panel installations on
commercial buildings that are 10,000 square feet or less.
LEGAL REVIEW
The attached Resolution has been reviewed and approved by the City Attorney.
FISCAL IMPACT
Based on the lack of permits issued in the last five years there would be no impact if
fees are waived for small businesses. If a trend occurs for the installation of
photovoltaic solar panels on commercial buildings 10,000 square feet or less then the
loss of City revenues to offset costs could be substantial.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Management Analyst
Submitted by:
Stan Wong
Community Development Director
Attachment A: Resolution 2010-61
RESOLUTION NO. 2010-61
A RESOLUTION TO WAIVE 30 % OF THE PLAN CHECK AND
BUILDING PERMIT FEES FOR THE INSTALLATION OF
PHOTOVOLTAIC SOLAR PANELS ON COMMERCIAL BUILDINGS
10,000 SQUARE FEET OR LESS
WHEREAS, City of Rosemead recognizes the value of photovoltaic solar panels for
commercial property owners and their tenants; and
WHEREAS, the City of Rosemead would like to encourage its commercial property
owners to install photovoltaic solar panels; and
WHEREAS, a waiver of the plan check and building permit fees for photovoltaic solar
panels will encourage commercial property owners within the City of Rosemead to
install solar panels on their buildings; and
WHEREAS, the City of Rosemead desires to provide benefit to its commercial property
owners.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD,
CALIFORNIA, DO ORDAIN AS FOLLOWS:
Section 1. The City hereby approves waiving 30% of the plan check and
building permit fees for commercial buildings of 10,000 square feet or less.
Section 2. The City Clerk shall certify to the passage and adoption of this
Resolution, whereupon it shall take immediate effect and be in force.
PASSED, ADOPTED AND APPROVED this 23th day of September, 2010.
Gary Taylor, Mayor
Attest:
Gloria Molleda, City Clerk
Approved as to Form:
By:
Rachel Richmond
Burke, Williams & Sorensen, LLP
City Attorney