COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Health Services Agency

 

DATE:

May 22, 2003

BOARD MEETING DATE:

June 10, 2003

 

TO:

Honorable Board of Supervisors

FROM:

Margaret Taylor, Director of Health Services

Brian Zamora, Director of Public Health and Environmental Protection

SUBJECT:

Establishment of Program Fees for 2003-2007

 
Recommendation

Adopt an ordinance establishing Environmental Health Services fees for 2003-2007.

 

Background

Section 510 of the California Health and Safety Code, through the authority of the County Health Officer, permits recovery of costs required to enforce county ordinances and state laws. Environmental Health Division (Division) fees are established by ordinance of the Board of Supervisors and are effective for both cities and unincorporated areas of the county. The proposed ordinance establishes fee increases in two ways: 1) the first fee increase becomes effective October 1, 2003 to balance expenses and revenue and cover added costs to current programs; and 2) sets annual fee increases of 3% effective January 1, 2005, 4% effective January 2006, and 3% effective January 2007, to offset anticipated cost-of-living adjustments.

 

Discussion

The Division provides unique public health services, community and business education, and regulatory oversight through the technical expertise and consultation of professional staff. The Division relies on revenue from permits, fees for service and grants to offset the majority of program costs. Most programs recover at least 90% of their respective costs.

 

In 2000, your Board approved a four-year fee package developed to recover actual program costs for most programs. A recently negotiated increase in salaries, benefits and an enhanced retirement package has necessitated a re-evaluation of the fees for each program. The proposed fee structure includes several new fee categories and adjustments to certain fees in the Food, Public Pool, and Land Use Programs in an effort to recover actual program costs. In May 2003, the Division notified various business associations and chambers of commerce of these proposed increases. To date, there has been little negative feedback from these groups.

 

Food Program

Division staff inspect approximately 3,500 restaurants, retail markets and other food facilities in 20 cities and the unincorporated county to ensure safe and wholesome food is available to the public. Food establishments with major repeat violations are published on the Internet on a weekly basis. In 2001, online food inspection information was made available to the public. To improve data accuracy and provide online data in a timelier manner, development of a handheld inspection project began in 2002.

 

Since the approval of the 2000-2003 fee ordinance amendment, a serious food borne illness incident occurred which resulted in your Board adding two positions to the Food Protection Program. These two positions were funded through increased net county cost, with the understanding that these positions would be paid for by inspection fees. The cost for the two positions has been included in this program fee proposal.

 

The recommended changes to the Food Program fees are:

A new fee for ice cream carts will be created that is about half the current fee for mobile carts, because the products being sold are generally prepackaged goods requiring no food preparation and inspection time is less than for other mobile food carts.

A new fee for large retail markets with multiple businesses within the market (e.g., Safeway at Sequoia Station includes a Starbucks, China Express, Bakery, etc.), whereby the facility will be charged the routine fee for the market footprint plus half the fee for each business within the market.

15% increase effective October 1, 2003, 3% increase January 1, 2005, 4% increase January 1, 2006 and 3% increase January 1, 2007, as shown in the examples below:

 
 

Fee Category

Current Fee

Proposed fee as of 10/01/03

(15% increase)

Proposed fee as of 1/01/05

(3% increase)

Proposed fee as of 1/01/06

(4% increase)

Proposed fee as of 1/01/07

(3% increase)

 

Safeway

$1027

$1181

$1216

$1265

$1303

Safeway with Starbucks and China Express

1027

1701

1751

1821

1877

Fresh Choice

672

773

796

828

853

 

Land Use/Water Programs

The Health and Safety Code requires an annual inspection of over 1,000 public swimming pools and spas, beach (ocean and bay) sampling, and water supply systems. Staff from the Land Use, Water and Waste Programs ensure that residents in the County have quality drinking water and proper disposal of waste products so that the public health and the environment are not endangered.

 

The State prescribes fees for Small Water Systems. Additional unfunded mandates have resulted in increased staff time per inspection. A new fee of $100/hour will be added to pay for Division staff's time spent assisting water systems owners in complying with State regulations without penalizing those systems capable of handling complex compliance issues on their own.

 

Due to reductions in county general funds, it has become necessary to increase Land Use fees to cover staff time. The Division convened the Land Use Advisory Committee, consisting of building and septic system contractors, realtors, and the public to discuss the proposed increases and other matters. The committee was supportive of the increases, with the contingency that the quality of services remains high.

 

The recommended changes to the Land Use/Water fees are:

A new pool plan-check fee for facilities with auxiliary areas (e.g., health clubs and high schools with shower facilities, locker rooms, etc.), because such areas require more time during plan-check to ensure that the construction design is safe and facilitates maintenance.

Current plan-check fees for each additional pool/spa are half the fee of the first pool/spa to reflect time saved in traveling to only one site. However, analysis shows the time spent reviewing plans for additional pool/spas significantly exceeds 50%. Thus, the proposed fees for each additional pool/spa will be increased to three-quarters of the fee for the first pool/spa.

10% increase in Pool Program fees effective October 1, 2003, 3% increase January 1, 2005, 4% increase January 1, 2006 and 3% increase January 1, 2007.

100% increase in Land Use fees effective October 1, 2003, 3% increase January 1, 2005, 4% increase January 1, 2006 and 3% increase January 1, 2007, as shown in the examples below:

 
 

Fee Category

Current Fee

Proposed fee as of 10/01/03

Proposed fee as of 1/01/05

(3% increase)

Proposed fee as of 1/01/06

(4% increase)

Proposed fee as of 1/01/07

(3% increase)

 

Public Pool

$290

$319*

$329

$342

$352

Plan Check (pool & spa)

1185

1521*

1566

1629

1678

Percolation Test

635

1270**

1244

1294

1333

Site Investigation

349

698**

719

748

770

Well Permit

476

952**

981

1020

1050

 

* Fee Increase is 10% as of 10/01/03

 

** Fee Increase is 100% as of 10/01/03

 

Housing and Vector Control Programs

The Housing Program staff inspects approximately 900 apartment houses, trailer parks, labor camps, hotels/motels and employee housing facilities each year. In addition, staff respond to public nuisance complaints including poor housing conditions in single-family dwellings, garbage and refuse accumulations, sewage spills, and other conditions that may threaten the public's health.

 

The recommended change to the Housing/Vector Control fees are:

A new fee category and rate of $100/hour for inspection of confined animals.

10% increase in Housing Program fees effective October 1, 2003, 3% increase January 1, 2005, 4% increase January 1, 2006 and 3% increase January 1, 2007, as shown in the examples below:

 
 

Fee Category

Current Fee

Proposed fee as of 10/01/03

(10% increase)

Proposed fee as of 1/01/05

(3% increase)

Proposed fee as of 1/01/06

(4% increase)

Proposed fee as of 1/01/07

(3% increase)

 

Apartment House

(4 units)

$97

$103

$106

$110

$114

Best Western Inn

618

680

700

728

750

 

Hazardous Materials Program

In 1997, the State designated the Division as the Certified Unified Program Authority (CUPA) for San Mateo County. This designation provides for streamlined implementation of hazardous materials regulations on a countywide basis. Division staff conduct approximately 4,500 hazardous materials storage and hazardous waste generator inspections each year. Additionally, staff provide oversight of over 1,000 underground fuel tanks countywide and conduct annual storm water (illicit discharge) inspections within the unincorporated areas and some cities. The consolidation was intended to ease the burden on businesses by having an existing inspector perform an additional function.

 

The recommended changes to the Hazardous Materials Program fees are:

A new Medical Waste annual fee for small quantity generators is proposed for setup and registration of small quantity generators. In addition to the one-time setup and registration fee, an annual inspection fee of $102 is proposed for small quantity generators.

20% increase in Solid Waste and Medical Waste fees effective October 1, 2003, 3% increase January 1, 2005, 4% increase January 1, 2006 and 3% increase January 1, 2007.

 

Hazardous Materials Business Plan, Generator and Underground Tank fees recover all program costs and therefore there will be no initial increase in fees for these programs. The Hazardous Materials and Underground Tank fees will increase 3% on January 1, 2005, 4% on January 1, 2006 and 3% on January 1, 2007, as shown in the examples below:

 
 

Fee Category

Current Fee

Proposed fee as of 10/01/03

(0% increase)

Proposed fee as of 01/01/05 (3% increase)

Proposed fee as of 01/01/06 (4% increase)

Proposed fee as of 01/01/07 (3% increase)

 
 

Gas Station with 2 tanks

$635

$635

$654

$680

$701

 
 

Jiffy Lube*

1061

1061

1093

1136

1170

 
 

Medical Waste offsite

509

611

629

654

674

 
 
 

* Jiffy Lube stores hazardous materials and generates hazardous wastes.

 

Comparison with Other Counties

A comparison of San Mateo County fees with other Bay Area counties reveals that the proposed fees are typically less than current fees administered by other agencies. The table below compares examples of proposed fee increases to the average existing fees in Bay Area counties. It is known that surrounding Bay Area counties are also in the process of amending their fees.

 
 

Fee Category

San Mateo County Proposed Fees

Bay Area Average*

 

Restaurant 51-100 seats

$773

$841

Market < 2,000 sq. feet

608

520

Pool and Spa

481

757

Percolation test

1270

576**

Underground tank

482

501

 
 

* The Bay Area average is calculated based on data gathered from Santa Clara, San Francisco, Alameda and Contra Costa counties.

 

** Most counties subsidize their programs, especially Land Use Programs, with general funds.

 

The Division has notified the Tri-County Apartment Association, the County Restaurant Association, the Peninsula Industrial Business Association (PIBA), Harbor Industrial Association, Industrial Emergency Council and numerous land use consultants regarding these proposed fee increases. In addition, all public notification requirements have been met.

 

Vision Alignment

The fee increases keep the commitment of responsive, effective and collaborative government and goal number 20: Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain. The fee increases contribute to this commitment and goal by assuring that those who utilize Environmental Health services pay the cost of providing those services, rather than receiving a subsidy from taxpayers and thereby diverting resources from other needed programs without a source of cost recovery.

 

Fiscal Impact

The proposed fee ordinance takes effect thirty (30) days after adoption. An anticipated revenue increase of $585,202 resulting from these fee increases and the implementation of various new fees will be included in the FY 2003-04 recommended budget. The increase will allow the division to maintain the targeted net county cost of $59,000. Failure to implement the proposed fee increase would require a significant reduction of services and staff.