HomeMy WebLinkAboutFee Reduction for HVAC and Water Heater Replacement Permits"CON�TINUED TO ' � • �
CITY OF PALM DE
BUILDING AND SAFETY DE
STAFF REPORT
REQUEST: INFORMATIONAL REPORT TO CONSIDER FEE REDUCTION
FOR HVAC AND WATER HEATER REPLACEMENT PERMITS
WITHIN THE CITY OF PALM DESERT
SUBMITTED BY: Russell A. Grance, Director of Building and Safety
DATE: August 23, 2012
Recommendation:
That the City Council provides staff with direction in the development of a fee
structure which incentivizes the applicant with reduced permit fees when
installing more energy efficient equipment beyond the minimum required by State
Energy Code. No further action is required at this time.
Executive Summary:
The City of Palm Desert, Department of Building and Safety has been directed to
develop a fee structure that would incentivize an applicant that installs replacement
HVAC and water heater equipment for both residential and commercial projects with
more energy efficient equipment beyond the minimum required per the State Energy
Code.
In the past, the City of Palm Desert offered fee -free permits for energy efficiency
measures, such as photovoltaic, thermal solar, water heater, and HVAC permits. On
June 14, 2012, the City Council passed Resolution No. 2012-37 which updated the
Development Services Fees, which in effect eliminated the fee -free permits. Since the
implementation of the new fees, staff has received a few complaints concerning the cost
of HVAC and water heater permits.
The City of Palm Desert's goal has always been to save money and energy by reducing
energy consumption and peak demand within the City through education, added
financial incentives, new technologies and services, and a variety of City-wide efforts to
heighten awareness and participation by Palm Desert residents and businesses.
Staff Report
HVAC & Water Heaters
August 23, 2012
Page 2 of 4
The Building Department recently conducted a survey of all Coachella Valley cities to
determine the costs for building permits for the replacement of HVAC and water heater
equipment for both residential and commercial projects. The following table represents
our findings:
WATER HEATER
city
Issuance
Fee
Microfilm Fee
Inspection Fee
Green Bldg
Fee
Total
Cathedral City
$33.00
$00.00
$00.00
$00.00
$33.00
Coachella
$56.00
$00.00
$68.50
$00.00
$124.50
Desert Hot Springs
$96.50
$00.00
$00.00
$00.00
$96.50
Indian Wells
$22.00
$00.00
$32.65
$1.00
$55.65
Indio
$20.00
$00.70
$7.00
$00.00
$27.70
La Quinta
$15.00
$00.00
$13.13
$1.00
$29.13
Palm Springs
$26.11
$3.32
$38.00
$00.00
$67.43
Rancho Mirage
$90.00
$00.00
$00.00
$1.00
$91.00
Palm Desert
$105.00
$6.00
$80.00
1 $1.00
$192.00
RESIDENTIAL HVAC
City
Issuance
Fee
Microfilm fee
Inspection Fee
Green Bldg
Fee
Total
Cathedral City
$44.50
$00.00
$00.00
$00.00
$44.50
Coachella
$198.50
$00.00
$00.00
$00.00
$198.50
Desert Hot Springs
$247.50
$00.00
$00.00
$00.00
$247.50
Indian Wells
$22.00
$00.00
$95.50
$1.00
$118.50
Indio
$20.00
$00.70
$36.00
$00.00
$56.70
La Quinta
$00.00
$00.00
$00.00
$00.00
$51.63
Palm Springs
$26.11
$3.32
$82.60
$00.00
$112.03
Rancho Mirage
$00.00
$00.00
$00.00
$00.00
$91.00
Palm Desert
$105.00
$6.00
$159.00
$1.00
$271.00
COMMERCIAL HVAC
City
Issuance
Fee
Microfilm fee
Inspection Fee
Green Bldg
Fee
Total
Cathedral City
$44.50
$00.00
$00.00
$00.00
$44.50
Coachella
$244.50
$00.00
$00.00
$00.00
$244.50
Desert Hot Springs
$247.50
$00.00
$00.00
$00.00
$247.50
Indian Wells
$22.00
$00.00
$358.00
$1.00
$381.00
Indio
$20.00
$00.70
$99.30
$00.00
$120.00
La Quinta
$00.00
$00.00
$00.00
$00.00
$125.00
Palm Springs
$26.11
$3.32
$82.60
$00.00
$112.03
Rancho Mirage
$00.00
$00.00
$00.00
$00.00
$208.00
Palm Desert
$105.00
$6.00
$239.00
$1.00
$351.00
Staff Report
HVAC & Water Heaters
August 23, 2012
Page 3 of 4
The results indicate that the City of Palm Desert has the highest permit fees for these
two types of permits. The permit costs included in the City of Palm Desert's fees were
primarily based on FY 2009-2010 actual expenditures to calculate the billable hourly
rate of all personnel directly involved in the service, applied to the average number of
hours, or portion thereof, to perform each service. Specifically, identifiable material &
supplies, indirect external overhead, and management overhead related to plan checks
and/or inspections were also included where appropriate. The fees are in compliance
with the California Fee Mitigation Act and will assist in the City recouping the actual
costs of providing plan check and inspection services.
The following table represents proposed fee reductions in order to provide incentives for
Palm Desert residents and business owners to install higher energy efficient equipment
than the minimums required per the State Energy Code:
HVAC (15% to 30% savings)
Equipment Type
SEER
EER
HSPF
Proposed
Inspection Fee
Res/Com
Split Central AC
=<14.5
12
-
$159/$239
16
13
-
$135.15/$203.15
18
13
-
$111.30/$167.30
Packaged Central AC
=<14
11
-
$159/$239
14
12
-
$135.15/$203.15
16
12
-
$111.30/$167.30
Split Heat Pump
=<14.5
12
8.2
$159/$239
15
12.5
8.5
$135.15/$203.15
18
13
9.6
$111.30/$167.30
Packaged Heat Pump
=<14
11
8
$159/$239
14
12
8
$135.15/$203.15
16
12
8
$111.30/$167.30
WATER HEATER 30% to 60% savings)
Equipment Type
Energy Factor
Proposed
Inspection Fee
Water Heater (Storage)
<.62
$80.00
Tier 1
.62 - .66
$56.00
Tier II
.67 and greater
$32.00
Tankless Water Heater
<.82
$80.00
Tier 1
.82 minimum
$56.00
Tier 11
.90 or greater
$32.00
Staff Report
HVAC & Water Heaters
August 23, 2012
Page 4 of 4
Fiscal Impact:
The proposed fee reductions for HVAC and water heater change outs will reduce
revenue that goes toward covering staffs time spent for permit issuance, plan check,
and field inspections.
Submitted By:
Ru sell A. Grance, CBO
Director of Building and Safety
a&=1-
Paul Gibson
Finance Director
i M. Wohlmuth
Manager