Title
Adopt Resolution to:
Approve the amendment of Article II of the Monterey County Master Fee Resolution to adjust fees for phytosanitary inspection, crop sampling, crop inspection, Certified Farmers Markets, Certified Producers and organic certification activities pursuant to the attached Fee Schedule, effective July 1, 2013.
StaffReport
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Approve the amendment of Article II of the Monterey County Master Fee Resolution to adjust fees for phytosanitary inspection, crop sampling, crop inspection, Certified Farmers Markets, Certified Producers and organic certification activities pursuant to the attached Fee Schedule, effective July 1, 2013.
SUMMARY/DISCUSSION:
Time analysis of certain inspection activities by the Agricultural Commissioner staff has shown that the cost of providing the services significantly exceeds the costs that can be recaptured by existing fee categories. Staff made use of accurate daily activity reports, routinely recorded by inspectors throughout the prior year, to analyze time spent completing certain inspection types. The results support the requested adjustments as appropriate. The affected industry has been notified of the proposed changes.
For these undervalued services, new fee categories are proposed to more closely recover, while not exceeding, 100% of the associated costs of the regulatory service for which the fee is generated. 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 costs of any non-fee generating services or activities:
The Agricultural Commissioner currently charges for inspections for phytosanitary certification. Current fee levels were established in 2004 and need to be increased to recover increased costs. Fees for regular certificates are proposed to increase from $28 to $32. This is still less than half the average cost of other coastal counties. 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.
The Agricultural Commissioner is currently authorized to charge for taking seed samples. Due to increased service requests from industry and other quarantine requirements, it is necessary to add the ability to charge for crop sampling, field inspection and pest monitoring for quarantine certification services.
The Agricultural Commissioner currently charges growers for plant quarantine field crop inspections on a per acre basis. This inspection charge method was established in 2008. In order to maintain close to full cost recovery, without actually exceeding the reasonable and actual costs for these services, this fee needs to be increased by $1.00/acre, with a five-acre minimum charge implemented.
The Agricultural Commissioner currently charges growers for providing apple maggot trapping services under compliance agreements for quarantine certification. Due to new expanded quarantine requirements, the Agricultural Commissioner is now required to have the ability to recapture the costs associated with trapping for other pests in addition to the apple maggot.
The Agricultural Commissioner is required to conduct inspections of Certified Farmers Markets and of the production locations of Certified Producers. The requested amendment to the schedule would implement an inspection fee of $60.00/hour, as allowed by and to be consistent with the Food and Agricultural Code, which will reflect no more than the reasonable and actual costs of these services.
The Agricultural Commissioner's Monterey County Certified Organic program charges fees for organic certification. Comparison with other county certification programs shows that, although fees for organic producers reflect no more than the actual costs of providing the service, they are comparatively more than other counties and should be reduced in order to assist small growers and incubate new businesses. Although the reduction in fees will further reduce the full recovery of costs in this area, the shortfall will not be recovered by adjustment to other fees.
Other editorial and terminology changes are made to update legal authority, but do not affect the associated fees previously approved by the Board.
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 Fiscal 2013-14 annual permit renewals cycle and for any payments received for that cycle. The copy of the proposed fee adjustments is attached hereto.
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.
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 Recommended 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:
Robert A. Roach, Assistant Agricultural Commissioner, 759-7325
Approved by:
Eric Lauritzen, Agricultural Commissioner, 759-7325
Attachments:
Proposed Article II of the County Master Fee Resolution
Proposed Resolution