Title
Adopt a resolution amending Article I.E. of the Monterey County Master Fee Resolution effective July 1, 2013, to add and adjust certain fee categories relating to oversight and services provided by the Health Department's Environmental Health Bureau pursuant to the attached Fee Schedule.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Approve a resolution amending Article I.E. of the Monterey County Master Fee Resolution effective July 1, 2013, to add and adjust certain fee categories relating to oversight and services provided by the Health Department's Environmental Health Bureau pursuant to the attached Fee Schedule.
SUMMARY:
Environmental Health is proposing amendments to Article I.E. of the Monterey County Master Fee Resolution to add and adjust certain fee categories relating to Environmental Health (EH) oversight and services. The new fee categories and adjustments of existing fees reflect the time analysis and recapture of costs associated with certain inspections, without exceeding the reasonable and actual costs of those services and the benefits received by the recipient.
DISCUSSION:
Time studies of inspection activities by EH staff make use of accurate daily activity reports, routinely recorded by inspectors throughout the prior year, to analyze time spent completing certain inspection types. For one particular program, time analysis has shown that the cost of providing the services during FY 2013-14 would be less than the amount of revenue that would be generated by the current fee structure for that program. That imbalance is addressed in these proposals. Also, staff has used time studies for similar programs to develop an estimated expenditure and revenue balance for a new program. New fee categories and fee amounts for that program are proposed to recover as close to, while not exceeding, 100% of the associated costs of the regulatory service for which the fee is generated. And EH staff has also made use of the results of time analysis to support proposed adjustments in fees to increase revenue to more-closely match program expenditures and to promote fairness to EH's fee-paying customers. The proposed fees are only to help recapture costs associated with the specifically related regulatory service for which the fee is imposed, not to supplement the County costs of any non-fee generating services or activities.
The first proposed new fee category for addition to the Master Fee Resolution is related to a new California State law (AB1616) and authorization of a local administration fee (Government Code sec 51035 and Health and Safety secs. 114365 & 14365.6) that became effective January 1, 2013, and that allows a "Cottage Food Operation," or CFO, to operate in a private home by preparing or packaging low-risk food products for sale to consumers. (See Attachment C for further information about AB1616.) There are two types of CFO's to be regulated as defined in AB1616:
· A Type "A" CFO operator will sell their product directly to the consumer. This type of CFO will require an estimated 0.5 hours of EH staff time to process an application, review a self-certification checklist and register the CFO. The proposed fee would be $65.00 per year based on EH's $130.00 per hour standard staff costs.
· A Type "B" CFO operator will sell their product directly to the consumer, or will sell their product indirectly to the consumer through a third-party retailer. This type of CFO will require an estimated 2.0 hours of EH staff time to process an application, inspect the food preparation premises and issue a permit. The proposed fee would be $260.00 per year based on EH's $130.00 per hour standard staff costs.
The second proposed fee category for addition to the Master Fee Resolution is related to the approval by the Board, on May 4, 2003, of Ordinance No. 04223 which establishes an annual Health Permit surcharge to fees paid by certain facilities permitted by EH for the purpose of funding hazardous materials emergency response services. The applicable surcharges were set forth in Attachment A of a Board Report approved by Board Resolution 04-156 on May 11, 2004, (see Attachment D). At this time, the 2004 fees are not being changed; the current requested action simply incorporates those 2004 fees into the formal Master Fee Resolution provisions.
A third fee category has been identified, in this case for proposed adjustments. Staff recognized by a time/fee analysis that, left unmodified, current fees paid to the Agricultural Field Toilet Inspection Program would exceed the actual costs to EH to operate the program during FY 2013-14. Additionally, it appeared an unfair per-toilet burden of program costs would fall to fee payers in the middle range of field toilet operators - those who owned more than just a few field toilets, but less that the largest operators. Multiple adjustments have been made to the fee structure for Agricultural Field Toilet Inspection Program since its inception in an attempt make the inspection fees fairer to large, medium and small field toilet operators, while also attempting to recover no more that the actual program operation costs. Staff believes that, in order to reduce the overall fees paid by field toilet owners to an amount equal to the estimated cost of operation of the Program for FY 2013-14, and to introduce more fairness in the fee structure, it is proposed that the adjustments be made to Agricultural Field Toilet Inspection Program fees as shown on Attachments A and B.
A fourth fee category has been identified, also for proposed adjustment. Staff recognized by a time/fee analysis that higher risk CalARP facilities require a significantly larger amount of staff time for completion of the annual facility risk evaluation and inspection represented by the CalARP Registration fee. Currently, both low- and high-risk facilities are charged the same fee. It is proposed that the fee should more accurately reflect EH's staff time required for the annual facility risk evaluation and inspection by creating two fee tiers:
· Program 1 CalARP facilities, which by definition are low-risk facilities, and which require a minimum average of 1.5 hours per risk evaluation and inspection according to EH records, would be charged a reduced CalARP Registration fee of $195.00 per year based on EH's $130.00 per hour standard staff costs.
· Program 2 and 3 CalARP facilities, which by definition are higher-risk facilities, and which require a minimum average of 4.0 hours per risk evaluation inspection according to EH records, would be charged an increased CalARP Registration fee of $520.00 per year based on EH's $130.00 per hour standard staff costs.
A proposal is also made for a fifth fee category, "Temporary Food Facility with free samples" to both clarify the terminology used to describe the category, and to add a fee tier that will advantage those who participate in multiple community events without it having a significant impact to EH's resources. Currently, operators with a permit for "Temporary Food Facility with free samples" and who participate in a community event must pay for their health permit on a per-event basis. It is proposed to offer an annual permit to participants who anticipate being involved in more than four occasional or special events per year. The annual fee would offer a cost savings to operators who participate in five or more events during the year, but also reflects a benefit to Environmental Health inspection staff who can typically reduce the amount of education and enforcement that might otherwise be needed, because the facility operators are more familiar with the policies and procedures that may affect them. Therefore, it is proposed that:
· the per-event fee be reduced $2.00, to $65.00 per event, in order to reflect the current 0.5 total inspection hours and paperwork processing time staff costs based on EH's $130.00 per hour standard staff costs
· the new yearly fee of $260.00 would be based on EH's $130.00 per hour standard staff costs for four (4) 0.5 inspection hours and paperwork processing time
· "Temporary Food Facility with free samples" would be re-labeled "TFF offering only nonperishable commercially prepackaged food and beverages," which better describes the permit category.
And, finally, for those extensive Graywater Systems permit applications that require more than the current charge (based on a maximum of four (4) hours of staff time), additional hours of staff time will be charged at EH's $130.00 per hour standard staff costs.
The Onsite Wastewater Treatment Systems and the Sewage Treatment and Reclamation Facilities fee structures have been reworded for clarity without changes to any charges for services,
If the requested fee adjustments are approved, the new fees would become effective July 1, 2013, and would be reflected in the invoices generated for the FY 2013-14 annual permit renewals cycle and for any payments received for that cycle. The copy of the proposed fee adjustments is on file with the Clerk to the Board.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed, and approved as to legal form, the proposed resolution and amendment to the Monterey County Master Fee Resolution, Article I.E.
FINANCING:
The recommended fee adjustments are intended to recapture the costs associated with the provision of the indicated regulatory services and inspections, and do not exceed actual costs for providing these services. As such, the fees represent a charge imposed for the specific regulatory service provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the County for providing the regulatory service. Anticipated revenues resulting from proposed fee adjustment are included in the FY 2013-14 Requested Budget. The proposed fees provide recapture of regulatory services costs, without generating additional revenue, to assure that the programs remain revenue neutral with no additional impact on the County's General Fund Contribution to the Department.
Prepared by: Ted Pinson, Management Analyst I, 1297
Approved by: Ray Bullick, Director of Health, 4526
Attachment A - Article I.E. Fee Schedule [clean] (on file with the Clerk to the Board)
Attachment B - Article I.E. Fee Schedule [strike through] (on file with the Clerk to the Board)
Attachment C - AB1616 Summary (on file with the Clerk to the Board)
Attachment D - Emergency Response Surcharge Board Report and Order (on file with the Clerk to the Board
Attachment E - Resolution amending Article I.e. of the Monterey County Master Fee Resolution
(on file with the Clerk to the Board)