City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council adopt an Ordinance (Attachment 1) establishing
a mandatory 1 kilowatt solar photovoltaic requirement for each 10,000 square feet of
gross floor area of new construction for commercial and multi-family projects,
including additions equal to 10,000 square feet or more of gross floor area, and
major renovations to existing buildings of 10,000 square feet or more of gross floor
area.
BACKGROUND/DISCUSSION:
At the City Council meeting of January 22, 2008, the Council introduced a proposed
Ordinance, with revisions, by a unanimous vote (5-0). (See the January 22, 2008
City Council Agenda Item Report – Attachment 2). From the dais, the City Council
suggested the following revisions to the Ordinance prior to its introduction:
• §15.02.1005 – The method for rounding in calculating the number of panels
for a qualifying project has been revised so that a fractional panel equal to or
greater than one half is rounded up and a fractional panel less than one half
is rounded down.
Meeting Date: 02/25/08 Item Number: A-2
AGENDA ITEM: Introduction of an Ordinance Establishing a Mandatory 1
Kilowatt Solar Photovoltaic Requirement for Each 10,000 Square Feet of Gross
Floor Area of New Construction for Commercial and Multi-Family Projects,
Including Additions Equal to 10,000 Square Feet or More of Gross Floor Area, and
Major Renovations to Existing Buildings of 10,000 Square Feet or More of Gross
Floor Area.
Contact Person/Dept.: Craig
Johnson/Building; Heather Baker/City
Attorney
Phone Number: (310) 253-5802; (310)
253-5660
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: [X]
Public Notification: Master Notification List (02/ 20/08)
Department Approval:
Sol Blumenfeld (02/14/08)
Carol Schwab (by H. Baker) (02/14/08)
City Attorney Approval:
Carol Schwab (by H. Baker) (02/14/08)
Fiscal Impact Review:
Jeff Muir (02/20/08)
City Manager Approval:
Jerry B. Fulwood (02/20/08) City of Culver City, California
City Council Agenda Item Report
• §15.02.1010 – The Community Development Director has been designated
with the authority to approve any exception to the solar photovoltaic
requirement contemplated by this Section.
• §15.02.1010.B. –This Section has been clarified to require that an alternate
building for the installation of a solar photovoltaic system be located in Culver
City.
• §15.02.1015.A. – The fee waiver has been revised to be capped at Five
Thousand Dollars ($5,000), and the fee waiver provision will sunset after ten
years.
The City Attorney opined these were not “substantive amendments” to the
Ordinance, and the City Council introduced the Ordinance as amended that
evening.
On February 11, 2008, the Ordinance, as revised above, was brought back for
adoption. At that time, the City Council determined that it wanted to further revise
the solar photovoltaic requirement to include:
• Additions equal to 10,000 square feet or more of gross floor area; and
• “Major” renovations to existing buildings of 10,000 square feet or more of
gross floor area, where such renovation is equal to at least 50% of the
valuation of the existing building.
The exceptions to the solar photovoltaic requirement relating to one and two family
residences, parking structures, garages, and renovations or additions to existing
buildings (except as otherwise provided above), would still apply.
Due to the substantive nature of the change to the Ordinance as originally
introduced, the City Attorney recommends the Council re-introduce the Ordinance
this evening. Should the City Council introduce the Ordinance this evening, the
Ordinance will then be brought back to the City Council on March 10, 2008 for
adoption.
FISCAL ANALYSIS:
To illustrate a sample project, a simple financial analysis of a new required project is
as follows:
A three story building with 3,334 sq. ft. per floor would meet the minimum 10,000 sq.
ft. qualification requiring installation of a 1 kilowatt (kw) photovoltaic system. A 1 kw
system would cost approximately $11,000 and the estimated payback would be 16.5 City of Culver City, California
City Council Agenda Item Report
years. However, due to the added energy savings for a project, if the system is
financed as part of overall building construction, this payback may produce a
positive cash flow of $3.00 per month or $34 per year based on a 30 year loan and
including Federal tax credits and State tax rebates. The system will also produce
energy savings of 1,151 kw hours per year resulting in the economic benefit of
energy savings irrespective of project financing. As proposed, the proportionate
cost for the energy system is less than one-half of one percent of the overall building
construction cost.
From the City’s perspective there will be less reliance upon utilities and less UUT
revenue generated on a per project basis. The 10,000 sq. ft. threshold means that
the effect will be small. (For example, if the proposed Ordinance had been in full
effect in FY 06-07, even with the current expanded applicability, it is estimated there
would have been a loss of less than $1,000 in UUT revenues for all qualifying
projects)
ATTACHMENTS:
1. Ordinance (redline and final versions)
2. January 22, 2008 City Council Agenda Item Report
MOTIONS:
That the City Council:
Introduce an Ordinance establishing a mandatory 1 kw solar photovoltaic
requirement for each 10,000 square feet of gross floor area of new construction
for commercial and multi-family projects, including additions equal to 10,000
square feet or more of gross floor area, and major renovations to existing
buildings of 10,000 square feet or more of gross floor area.