HomeMy WebLinkAboutFee Reduction for HVAC and Water Heater Replacement PermitsCITY OF PALM DESERT
BUILDING AND SAFETY DEPARTMENT
STAFF REPORT
REQUEST: PROPOSED 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: September 27, 2012
Recommendation:
By Minute Motion approve 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 and to eliminate the issuance fee for
replacement water heaters and HVAC permits. 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 competitive 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
September 27, 2012
Page 5of5
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:
r
Russell A. Grance, CBO
Directo of Building and Safety
Paul Gibson
Finance Director
(M. Wohlmuth
Manager
CITY COUNCILON
APPROVED DENIED
RECEIVED OTHER
NOES:
ABSE"
ABSTAIN:
VERIFIED BYs
Original an File with City
Office
Staff Report
HVAC & Water Heaters
September 27, 2012
Page 2of5
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
IssFee uanCe
Microfilm Fee
Inspection Fee
GreenBldg
Total
ed
Cathral 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
$1.00
$192.00
RESIDENTIAL HVAC
City
IssFee uance
Microfilm fee
Inspection Fee
GreenBldg
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
1 $6.00
$159.00
$1.00
$271.00
COMMERCIAL HVAC
City
Issuance
Microfilm fee
Inspection Fee
Green FeeBldg
Total
Cathedral Cit
$44.50
$00.00
$00.00
$00.00
$44.50
Coachella
$244.50
$00.00
$00.00
$00.00
$244.50
Desert Hot S rin s
$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
September 27, 2012
Page 3 of 5
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 tables represents proposed fee reductions, and in order to provide
enough of an incentive the issuance fee of $105.00 for these two types of permits have
been eliminated and the total proposed fee represents the Inspection fee, Microfilm fee,
and the Green fee with the savings based on the equipment efficiency ratings for Palm
Desert residents and business owners to install higher energy efficient equipment than
the minimums required per the State Energy Code:
WATER HEATER
(30 - 60% Savinas)
City
Issuance
Fee
Microfilm
Fee
Inspection
Fee
Green Bldg Fee
Total
Indio
$20.00
$0.70
$7.00
$0.00
$27.70
La Quinta
$15.00
$0.00
$13.13
$1.00
$29.13
Cathedral City
$33.00
$0.00
$0.00
$0.00
$33.00
Palm Desert Tier II
(60%)
$0.00
$6.00
$46.00
$1.00
$39.00
Indian Wells
$22.00
$0.00
$32.65
$1.00
$55.65
Palm Desert Tier I
(30%)
$0.00
$6.00
$56.00
$1.00
$63.00
Palm Springs
$26.11
$3.32
$38.00
$0.00
$67.43
Palm Desert
Standard
$0.00
$6.00
$80.00
$1.00
$87.00
Rancho Mirage
$90.00
$0.00
$0.00
$1.00
$91.00
Desert Hot Springs
$96.50
$0.00
$0.00
$0.00
$96.50
Coachella
$56.00
$0.00
$68.50
$0.00
$124.50
Staff Report
HVAC & Water Heaters
September 27, 2012
Page 4 of 5
RESIDENTIAL HVAC
(15 - 30% Savings)
cityIssuance
Fee
Microfilm
fee
Inspection
Fee
Green Bldg Fee
Total
Cathedral City
$44.50
$0.00
$0.00
$0.00
$44.50
La Quinta
$0.00
$0.00
$0.00
$0.00
$51.63
Indio
$20.00
$0.70
$36.00
$0.00
$56.70
Rancho Mirage
$0.00
$0.00
$0.00
$0.00
$91.00
Palm Springs
$26.11
$3.32
$82.60
$0.00
$112.03
Palm Desert
18 Seer 30%
$0.00
$6.00
$111.30
$1.00
$118.30
Indian Wells
$22.00
$0.00
$95.50
$1.00
$118.50
Palm Desert
16 Seer 15%
$0.00
$6.00
$135.15
$1.00
$142.15
Palm Desert (Std)
$0.00
$6.00
$159.00
$1.00
$166.00
Coachella
$198.50
$0.00
$0.00
$0.00
$198.50
Desert Hot Springs
$247.50
$0.00
$0.00
$0.00
$247.50
COMMERCIAL HVAC
(15 - 30% Savings)
cityIssuance
Fee
Microfilm
fee
Inspection
Fee
Green Bldg Fee
Total
Cathedral City
$44.50
$0.00
$0.00
$0.00
$44.50
Palm Springs
$26.11
$3.32
$82.60
$0.00
$112.03
Indio
$20.00
$0.70
$99.30
$0.00
$120.00
La Quinta
$0.00
$0.00
$0.00
$0.00
$125.00
Palm Desert
18 Seer 30%
$0.00
$6.00
$167.30
$1.00
$174.30
Rancho Mirage
$0.00
$0.00
$0.00
$0.00
$208.00
Palm Desert
16 Seer 15%
$0.00
$6.00
$203.15
$1.00
$210.15
Coachella
$244.50
$0.00
$0.00
$0.00
$244.50
Palm Desert (Std)
$0.00
$6.00
$239.00
$1.00
$246.00
Desert Hot Springs
$247.50
$0.00
$0.00
$0.00
$247.50
Indian Wells
$22.00
$0.00
$358.00
$1.00
$381.00