Action 12.
Regular Board of Supervisors Meeting
Community Development
- Meeting Date:
- 01/06/2015
- Title:
- Fee Waiver Request Red Horse Wind Farm
- Submitted By:
- Mike Izzo, Community Development
- Department:
- Community Development
- Division:
- Planning & Zoning
Presentation:
PowerPoint
Recommendation:
Disapprove
Document Signatures:
BOS Signature NOT Required
# of ORIGINALS
Submitted for Signature:
Submitted for Signature:
0
NAME
of PRESENTER:
of PRESENTER:
Beverly Wilson/Michael Izzo
TITLE
of PRESENTER:
of PRESENTER:
Planning Director/Building Official
Docket Number (If applicable):
R-15-02
Mandated Function?:
Not Mandated
Source of Mandate
or Basis for Support?:
or Basis for Support?:
Information
Agenda Item Text:
Approve a request from Swinerton Builders and D E Shaw Co.for a waiver or reduction of permit fees for the construction of a 15 wind turbine generating station Wind Farm from $271,175.45 to $69,027.81
Background:
The Red Horse Wind Farm is located approximately 15-miles west of Willcox. There will be 15 wind towers, approximately 475-feet tall. Swinerton Renewable Energy is the General Contractor for both the wind farm, as well as the adjacent solar farm which is currently under construction. Staff has calculated that per the adopted fee schedule, costs for this permit would be $271,175.45. This amount is calculated with a construction value of $51,000,000.00. Brian Hoops, Project Manager for Swinerton, and David Swillinger, for D.E. Shaw and Co., have requested permit fees be calculated with a construction value of $12,495,689.00. If the fee is calculated using this lowered value, the fees would be $69,027.81. This request would lower the fees by $202,147.64. The reasons that the Applicant is requesting the fee reduction are described in their October 21, 2014 letter, which is attached to this agenda item.
Staff is recommending that the permit fees be lowered, but not in the amounts or the manner requested by the Applicant. Staff recommends that instead of using the fee schedule, that the permit fees be based on actual costs to the County, which is the same approach we used on the Torch solar farm. (Pursuant to A.R.S. § 11-321, permit fees for solar projects must be based on actual costs. There is no similar statute for wind energy projects). Staff's estimate for actual costs of inspection, using employee hourly rates, overhead rates, vehicle costs, and payment of a third party inspector, is $175,087.08--if everything goes right. This estimate is based on a 12 month construction schedule, although an exact date is not known at this time. This estimate, while substantially more than the amount requested by the Applicant, is also substantially less than the fees that otherwise would be charged using the fee schedule.
The main reason for the difference in the amounts of fees as estimated by staff and that requested by the Applicant is the turbines. The Applicant does not believe that the County needs to inspect the turbines for structural integrity, while the County's Building Inspector believes that this is necessary.
IV: RECOMMENDATION
Staff recommends against the fee waiver and reduction requested by the Applicant.
Staff recommends that the Board authorize staff to charge the actual costs for the plan review, permit issuance, and inspections, rather than using the fee schedule.
Sample Motion: Mr. Chairman, I recommend authorizing staff to charge the actual costs for the plan review, permit issuance, and inspections for the Red Horse Wind Farm Project.
Staff is recommending that the permit fees be lowered, but not in the amounts or the manner requested by the Applicant. Staff recommends that instead of using the fee schedule, that the permit fees be based on actual costs to the County, which is the same approach we used on the Torch solar farm. (Pursuant to A.R.S. § 11-321, permit fees for solar projects must be based on actual costs. There is no similar statute for wind energy projects). Staff's estimate for actual costs of inspection, using employee hourly rates, overhead rates, vehicle costs, and payment of a third party inspector, is $175,087.08--if everything goes right. This estimate is based on a 12 month construction schedule, although an exact date is not known at this time. This estimate, while substantially more than the amount requested by the Applicant, is also substantially less than the fees that otherwise would be charged using the fee schedule.
The main reason for the difference in the amounts of fees as estimated by staff and that requested by the Applicant is the turbines. The Applicant does not believe that the County needs to inspect the turbines for structural integrity, while the County's Building Inspector believes that this is necessary.
IV: RECOMMENDATION
Staff recommends against the fee waiver and reduction requested by the Applicant.
Staff recommends that the Board authorize staff to charge the actual costs for the plan review, permit issuance, and inspections, rather than using the fee schedule.
Sample Motion: Mr. Chairman, I recommend authorizing staff to charge the actual costs for the plan review, permit issuance, and inspections for the Red Horse Wind Farm Project.
Department's Next Steps (if approved):
The Community Development Department would not charge D E Shaw & Company the full $271,175.45 in building permit fees. Instead, monthly invoices would be generated by staff based on the actual costs of inspection, using employee hourly rates, overhead rates, vehicle costs, payment of a third party inspector and other incidental costs.
.
.
Impact of NOT Approving/Alternatives:
The applicant would be required to pay the full cost of Building permit fees.
To BOS Staff: Document Disposition/Follow-Up:
No action needed.