SR 08-23-2011 3DCity of ® City ~®~~~Iil ~Gp®~ {i
~/ Santa Monica
City Council Meeting: August 23, 2011
Agenda Item: 3-•A
To: Mayor and City Council
From: Dean Kubani, Director, Office of Sustainability and the Environment
Subject: Permit Fee Elimination .for Retrofitted Greywater and Rainwater
Harvesting Systems
Recommended Action
Staff recommends that City Council adopt the attached resolution eliminating on a trial
basis the Building and Safety, and Water Resources Divisions plan review and
inspection permit fees for the installation of retrofitted greywater and rainwater
harvesting systems, which involve single trade permits, in existing buildings involving
pumps, electrical components, and/or automatic potable water re-filling components.
Executive Summary
The City is developing a 2020 Sustainable Water Master Plan to eliminate .its
dependency on imported water and to become self-sufficient on local water supplies.
One important strategy to increase local water supplies is to maximize the use of
greywater and rainwater. However, the installation of retrofitted systems in an existing
building can involve a permit fee that is significantly higher than the cost of the water
resource and a significant portion of the system cost. The payback period increases by
several years with the additional cost of the permit, making it a disincentive to install
these systems. Typical systems' costs vary between $500-$7,500; a typical permit fee
is nearly $1,000, in some cases more than the system itself.
Based upon. past installations, calls of interest from residents, greywater systems
installed through the City's Sustainable Landscape Grant program between 2005 and
2007; and a new greywater rebate program for residents and businesses, approximately
15 permitted systems are anticipated to be installed each year with a total estimated
water savings of 325,000 gallons (one acre-foot) annually (10 greywater systems
generating approximately 30,000 gallons each and 5 cisterns generating 5,000 gallons
each). Eliminating permit fees for retrofitted systems would result in City revenue
losses estimated at $15,000. However, if the City intends to meet its 2020 water self-
sufficiency goal, maximizing local water harvesting will be a crucial strategy of the Plan.
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Background
Most greywater and rainwater harvesting installations are part of permitted new and re-
development projects, not retrofits. A retrofitted system is one which does not involve
new or re-development construction; it is a stand-alone supplemental water project that
does not require a combination permit: Such a system generally involves a water
storage vessel, filtering and, where appropriate, disinfection equipment, an electrical
pump, and a water conveyance system from the storage vessel to water end uses.
Often, these systems include a connection to the municipal potable water system in the
event that there is no rain or greywater in the storage vessel. Generally, the installation
of a permitted retrofitted system is not cost-effective when compared to the cost of
potable water; however, some people choose to install such a system because they
believe it is the right thing to do to achieve sustainability. Staff is aware of one
rainwater harvesting and three greywater retrofitted systems which required permits
installed in the City over the last 10 years. These four systems were part of the City's
sustainable landscape grant program and were permitted.
While staff does not know how many unpermitted retrofitted systems have been
installed, it is crucial for public health and safety that these systems be reviewed,
permitted and inspected because an improperly installed system has the potential to
contaminate water entering a building and/or the City's municipal water supply.
Discussion
Staff recommends that all permit fees be eliminated on a trial basis for single trade
permits of retrofitted greywater and rainwater harvesting systems. Residents and
businesses may be more likely to install these systems and obtain a permit if the permit
fee is removed. Removing the fee may help to further the City's goal to achieve 100%
water self-sufficiency. In support of this goal, the City Council directed staff on March 8,
2011 to prepare a Sustainable Water Master Plan. One of the important strategies of
the Plan will be to promote and maximize ..local water supplies, such as greywater and
rainwater which are the two most accessible and cost-effective water supplies, to offset
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the use of imported potable water. Staff estimates water savings of 325,000 gallons per
year with the installation of 15 permitted systems. Staff anticipates more opportunities
for retrofitted projects than in new or re-development projects because retrofitted
projects are simpler, less complex and more time efficient to install. Staff will track
permitted retrofitted systems to compare the actual numbers to the original estimate of
15 systems.
A typical permit fee for a retrofit project is $983, Which includes plan review. and
inspections. A simple, non-potable greywater or rainwater system costs $500-1,000,
and a second complex system costs $5,000-30,000. For residents and businesses who
are interested in installing a retrofitted system, the permit fee becomes a major
disincentive to undertake the project. Staff is hopeful that these systems can become
common with the right incentives, such as fee exemptions and financial rebates. To this
end, staff plans to offer different incentives to subsidize small and large retrofitted
systems.
Staff is working to put the City on a more sustainable path of local water catchment and
use, and give residents and businesses more independence from City-supplied potable
water by expanding a water self-sufficiency program to support the Sustainable Water
Master Plan. One important tool in the Plan's toolbox is to eliminate barriers and
remove the permit fee for single trade permits of retrofitted greywater and rainwater
harvesting systems in existing buildings.
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Financial Impacts. & Budget Actions
No budgetary action is required.
By removing the permit fee for this activity, for 15 systems annually, the City can expect
to lose $15,000 in revenues to cover Building and Safety, and Public Works staff time
for reviewing plans for and inspecting these systems. Staff will provide Council with an
annual report on the actual number of installed systems and eliminated permit fees, and
a recommendation on whether to make this policy permanent at which point staff will
return with an ordinance to eliminate this fee.
Prepared by: Neal Shapiro, Watershed Management Coordinator
Approved:
Dean Kuba ', irector
Office of Sustainability and the
Environment
Forwarded to Council:
~ ~v
Rod Gould ~~
City Manager
Attachment:
Resolution eliminating plan review and inspection permit fees of the building and safety
division for the installation of retrofitted greywater and rainwater harvesting systems.
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Reference Resolution
No. 10600 (CCS)