55B - RESO - SOLAR PERMIT FEE WAIVER

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Solar Permit Fee Waiver Program April 4, 2011 Page 2 A thorough review and analysis of the type of solar installation requests received over the past two years indicates that the vast majority of solar installations in Santa Ana are for single-family residences. Based on this analysis the Building Division has begun implementing several streamlining procedures to reduce the time required to review and issue permits for residential solar projects, as well as reducing the fiscal impact of the fee waiver. As a result, at an average rate of $55/hour the respective permit fees would range from approximately $55 to $550 per project with the majority being in the $275 to $385 range. In a continued 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. While the number of solar energy projects is expected to continue to grow, the environmental and community benefits of the use of solar energy outweighs the impacts to workloads and/or reductions in revenue. Enacting the two-year permit incentive program would require City Council approval of an amended fee resolution. The attached survey (Exhibit 2) of other Orange County communities shows that while three other cities have adopted solar permit fee waivers, most continue to charge for permits and inspections. Through the renewal of this program Santa Ana will remain a leader in promoting the use of solar energy for both commercial and residential applications. FISCAL IMPACT It is estimated that the total cost of the two-year program would be approximately $27,500 in uncollected permitting fees for the general fund revenue accounts for Building Plan Check (no. 0111600253600), Plumbing Plan Check account (no. 011600253602), Electrical Plan Check account (no. 0111600253601), Building Permits account (no. 0111600251601), Plumbing Permits account (no. 0111600251602), and Electrical Permits account (no. 0111600251603). APPROVED AS TO FUNDS AND ACCOUNTS: Ja . Trevino Executive Director Planning & Building Agency MF:rb mNeportsZolar Permits Fee Waiver - RFCA Francisco Gutierrez Executive Director Finance & Management Services Agencyu- Exhibit: 1. Solar Permit Fee Waiver Program Analysis Memo 2. Orange County Solar Installation Permit Costs 55B-2