In 2017, the Department of Community Services contracted with MGT Consulting to complete a comprehensive user fee study to establish the full cost of services provided in the Planning, Building and Public Works divisions. On June 26, 2018 the Master Fee Resolution 18-78, adopted by the Board of Supervisors, included fees from the user fee study with the exception of certain fee changes related to the installation of residential rooftop solar systems. Discussion on the residential rooftop solar fees was pushed to July 24, 2018, in order to address the requirements of California Government Code Section 66015, which set a maximum permit fee of $450, plus $15 per kW for each kilowatt above 15kW. On July 24, 2018, at the hearing for the continuance of the Master Fee Resolution, the Board of Supervisors approved Resolution No. 18-78.1 (Att. B), establishing residential roof-mounted solar energy system fees to be adopted at full cost.
Subsequent to Board actions and resolution, the California Government Code Section 66015 was amended to include all residential and commercial solar energy systems.
As updated, California Government Code Section 66015 sets a maximum permit fee of $450 plus $15 per kW for each kilowatt above 15kW for permits associated with the installation of residential solar energy systems. For commercial energy systems there is a maximum fee of $1,000 up to 50kW, plus $7 for each additional kW between 51kW and 250kW, and $5 per kW above 250kW. As with the previous version of the bill, local jurisdictions are allowed to charge the full cost based on substantial evidence of the reasonable cost to issue the permit, with a written finding and adoption of a resolution or ordinance.
Since 2015, the Department of Community Services, Building Division has permitted and inspected 68 commercial solar systems. Several commercial solar systems are ground-mounted, and require additional time researching and accommodating flood restrictions. The table below shows the kW range of ground-mounted commercial solar systems, the fees collected, and the potential impact (loss) to the General Fund should the fee limits set by California Government Code Section 66015 apply:
| Average kW |
Total Projects since 2015 |
Ground Mounted |
Average Fees Collected per project (Average Cost) |
Maximum Amount Collected under Gov. Code Update |
Potential GF Impact Per Project |
Average # of Annual Projects |
Total Potential Average Annual GF Impact |
| 25kW |
24 |
10 |
$1,395.14 |
$1,000 |
$395.14 |
8 |
$ 3,161.12 |
| 105kW |
32 |
22 |
$3,687.84 |
$1,378 |
$2,309.84 |
11 |
$25,408.24 |
| 680kW |
12 |
10 |
$11,170.39 |
$4,500 |
-6,670.39 |
4 |
$26,681.56
|
| Total |
68 |
42 |
|
|
|
|
$ 55,250.92 |
The Total Potential Average General Fund impact is calculated by multiplying the Average Number of Annual Projects, by the difference between the Average Cost and the Maximum Amount Collected Under California Government Code Section 66015.
Given the fact that the annual average cost of processing solar projects exceeds the limits set forth in California Government Code Section 66015, absent a resolution allowing the Building Division to charge full cost, the difference between the lower fee and the cost of the service would need to be recovered by the General Fund.
Therefore, staff recommends the adoption of the attached resolution, which will supersede Resolution No. 18-78.1 adopted July 24, 2018, extending to all commercial and residential solar energy systems.
The recommended resolution includes a correction to a mis-type in the Master Fee Schedule. The mistype is under Department Planning, Resources & Public Works, Label – Planning/Building Division, Sub Label – Building Division fee, fee title Building Permit Fee - $100,001-$200,000 Valuation, which should read $100,001-$500,000. |