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SR-510-012 CP:SM\EPWM\O;p\STAFFRPT\FEEWAIVE.DOC Council Meeting: January 8, 2002 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Recommendation to Waive Permit Fees for Installation of Electrical Service for Electric Vehicle Chargers and Solar Photovoltaic or Solar Thermal Systems; Recommendation to Restrict Parking Spaces Equipped with Electric Vehicle Chargers to Electric Vehicles Only and Direct the City Attorney to Draft Necessary Ordinance Changes; and Deleted: Make Recommendation to Waive Parking Meter Fees for Certified Alternative Fuel Vehicles INTRODUCTION This report recommends that City Council waive permit fees for installation of electrical service for electric vehicle chargers and solar photovoltaic or solar thermal systems. This report also recommends that parking spaces equipped with electric vehicle chargers be restricted to electric vehicles only, and that parking meter fees at all City parking meters be waived for certified alternative fuel vehicles. The report also recommends that the City Council direct the City Attorney to make any necessary ordinance changes to the Municipal Code. BACKGROUND In response to the State?s energy situation, approximately 30 percent of Santa Monica residents reduced their electricity consumption by 20 percent or more during the summer months and qualified for the State?s financial incentive program. The public?s 1 increased awareness about energy is beneficial for both the community and the environment, and is consistent with many Council-adopted policies, including the Strategic Energy Plan and the Green Building Design and Construction Guidelines. Over the last several years, the City has demonstrated its commitment to energy efficiency, renewable energy, and the use of alternative-fuel vehicles through the implementation of various programs. Through its participation in the Regional Energy Efficiency Initiative (REEI), Community Corporation Housing is being retrofit with energy efficient lighting systems and heaters, residents have purchased low-cost compact fluorescent lamps, and small businesses are being offered energy efficient lighting systems for half price. The City has installed electric vehicle chargers at six different locations throughout the City and is currently developing a feasibility analysis of Santa Monica?s solar energy potential. DISCUSSION On April 24, 2001, the City Council adopted a resolution revising various fees related to the building permit, plan check, and inspection process. The fees were set to recover the City?s costs for providing plan check and inspection services. Waiving certain of those fees could act as an incentive to realizing the City?s energy goals, and could persuade the public to invest in more efficient systems for their homes and businesses as well as create an incentive for the purchase of electric vehicles. Several California cities (Oakland, San Diego, San Jose) have waived fees for design review and installation of renewable energy distributed generation technologies, including solar 2 photovoltaics and solar thermal panels. Permit Fees Staff recommends that the fee structure be amended and that permit fees be waived for the following types of projects: ? Installation of new electrical service for electric vehicles or installation of electric vehicle chargers. ? Installation of photovoltaic and solar thermal systems. The waiver would apply only if the type of project listed above was the only permitted work occurring at the specified location. Fees would not be waived for any permits related to a new construction or substantial remodel project. Property owners/permit applicants will not be exempt from design review or inspections, but will only be exempt from paying permit fees. Restricted Parking Spaces In 1999, the City received a State grant to install electric vehicle charging stations at five locations: Santa Monica Pier, Santa Monica Airport, City Hall, Santa Monica Place, Deleted: th and Montana Avenue at 11 Street. Electric vehicle drivers have been supportive of the City?s efforts, but often find that the parking spots equipped with chargers are occupied by non-electric cars. Electric vehicle drivers may be stranded when they cannot recharge their vehicles. Staff recommends that all of these parking spaces and any others subsequently installed by the City be designated for electric vehicles only and 3 that the Police Department be directed to issue parking tickets to violators. Staff also recommends that the City Council direct the City Attorney to make any necessary changes to the Municipal Code to allow enforcement to occur. Parking Meter Fees The City of Los Angeles recently adopted a 12-month pilot program allowing alternative fuel vehicles to park for free at City meters. Those vehicles displaying Department of Motor Vehicle (DMV) Clean Air Vehicle Decals are allowed to park at on-street and off- street parking meters in the City without depositing coins into the meters. The decal allows drivers of ZEV (zero-emission), ULEV (ultra-low), and SULEV (super-ultra-low) alternative-fuelled vehicles to drive in the high-occupancy lane on freeways. Before issuing the identifying stickers, the DMV certifies that the applicant vehicle is on the list of qualified vehicles or meets the emission standards through personal inspection. The stickers, which have a one-time application fee of $8.00, are placed on the right rear bumper and the right and left rear quarter panels on the qualifying vehicle and are valid for the life of the vehicle. Staff recommends that Santa Monica adopt a similar pilot program. Vehicles displaying the decal will still have to comply with the 2 hour posted time limit and parking restrictions. The 12-month pilot program would begin immediately upon Council?s approval. At the end of the pilot, staff will assess the participation in the program, enforcement experience, and any revenue impacts and report back to Council with a recommendation. 4 BUDGET/FISCAL IMPACT The City receives relatively few permit applications for installation of solar photovoltaic, solar thermal, or electric vehicle charging systems annually and the net loss in revenue from this fee waiver would not be significant. Similarly, approximately 1,200 alternative-fuel vehicles are privately owned in all of Southern California. It is therefore not anticipated that the loss of parking meter revenue from those vehicles parking in Santa Monica would be significant. RECOMMENDATION Staff recommends that City Council: 1. Waive permit fees for installation of electrical service for electric vehicle chargers, and solar photovoltaic or solar thermal systems; 2. Restrict parking spaces equipped with electric vehicle chargers to electric vehicles only; and 3. Waive parking meter fees for certified alternative-fuelled vehicles. Deleted: make 4. Direct the City Attorney to draft any necessary changes to the Municipal Code and to return to the City Council with recommended ordinance for adoption. Prepared by: Craig Perkins, Director of Environmental and Public Works Management Suzanne Frick, Director of Planning and Community Development James Butts Jr., Chief of Police Susan Munves, Energy and Green Building Programs Coordinator 5