HomeMy WebLinkAbout5/2/2012 - STAFF REPORTS - 4C �pALM SiOH
.y
c
V N
R
cq<,Foa CITY COUNCIL STAFF REPORT
N�P
DATE: May 2, 2012 UNFINISHED BUSINESS
SUBJECT: PUBLIC ARTS FEES FOR LARGE SOLAR ENERGY PRODUCTION
FACILITIES AND PROJECTS
FROM: David H. Ready, City Manager
BY: Craig A. Ewing, AICP, Director of Planning
SUMMARY
On April 16, 2012, the City Council considered a recommendation from staff to revise the
method for calculating public arts fees on large scale solar production facilities. At that
meeting, the City Council determined that an alternative method for calculating public arts fees
was desirable, and directed staff to provide two alternative recommendations. In this report,
staff describes two options: (1) establishing a "per-acre"-based public arts fee for large scale
solar, or (2) establish a public art fee based on project valuation, but with a lower percentage
fee.
RECOMMENDATION:
Direct staff to return with a resolution for the Council's preferred method of fee calculation.
PRIOR ACTIONS:
On April 16, 2012, the City Council reviewed staffs recommendations on the public arts fee for
large scale solar projects and voted to continue the item to May 2, 2012 and requested staff to
explore further options for calculating public art fees.
STAFF ANALYSIS:
Two options for calculating fees for public art on large scale solar are outlined here;
Option 1: Apply a $500 per acre fee for assessing public arts fees on solar energy
generating facility projects.
Option 2: Apply a smaller percentage of construction valuation (based on energy
produced) for assessing public art fees on large scale solar; for example $2 per kilowatt
of energy produced:
Two actual solar projects proposed in the City — one at 4.95 megaWatts and one at 3
megaWatts - are shown below with a comparison of four different options for calculating public
arts fees.
ITEM NO.
City Council Staff Report Page 2 of 2
Public Art Fees for Large Solar Energy Projects. May 2, 2012
4.95 mW 3 mW
Solar Projects in the Ci 24 Acre 18 Acre
Cost to Build (approx. based on $3,850/kw)) $19.25 million $11.55 million
Option 1. Construction cost method (current rule) $96,250 56,250
Option 2. Acreage-based calculation method ($500/acre) $12,000 $9,000
Option 3. Kilowatt of energy produced method ($2/kW) $9,900 $6,000
Option 4. Kilowatt of electricity produced (wind turbine rule) $243 $213
Staff believes Option 2, the $500/acre basis, or Option 3; the $2/KW energy produced basis
will yield a public arts fee that is reasonable for solar project proponents.
CONCLUSION:
Staff recommends that the City Council identify its preferred method of calculation and amend
the Comprehensive Fee Schedule accordingly. A final resolution reflecting the City Council's
action will be returned at the next meeting for council approval.
FISCAL IMPACT:
The recommended alternative public arts fee schedule for large scale solar installations would
reduce revenue for maintenance and purchase of public art. The average annual revenue from
public arts fees for the past four fiscal years was $201,9931 and average annual public art
expenditures was $290,764.
�a"4, ,
r A. - ing P, Director of Planning Thomas J. Wils6K, Assistant City Manager
David H. Ready, City Uar
FY 07/08 through FY 10/11; no large scale solar projects were permitted during this period.
002