20050517_m

COUNTY OF SAN MATEO

Inter-Departmental Correspondence

ENVIRONMENTAL SERVICES AGENCY

DATE:

April 11, 2005

BOARD MEETING DATE:

May 17, 2005

SPECIAL NOTICE/HEARING:

Ten-days’ notice

Public Hearing

9:15 a.m.

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

Marcia Raines, Director of Environmental Services

SUBJECT:

Increases in Planning and Building, County Fire Marshal, Parks and Recreation and Agricultural Commissioner/Sealer Fees FY2005/2006.

RECOMMENDATION

1.

Adopt a Resolution amending County Fire Marshal plan review and inspection fees for a 7% COLA increase.

2.

Adopt a Resolution amending Parks and Recreation fees as follows: (a) Increase Park fees by 3% across the board, as rounded; and (b) Increase Coyote Point Marina berthing fees by 4.36%, as rounded.

3.

Adopt an ordinance amending Section 2.24.080 of the San Mateo County Ordinance Code to increase fees charged by the Agricultural Commissioner for the inspection and certification of certain plant products and the waiver of reading the ordinance in its entirety.

VISION ALIGNMENT

Commitment: Responsive, effective and collaborative government.

Goals 20 and 24: Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain. Residents accept individual responsibility for contributing to the quality of life of the County as a whole.

These fee increases contribute to the commitment and goals by maintaining a proper relationship between costs and revenues and by assuring that those who utilize County 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.

BACKGROUND

County Fire Marshal County Ordinance 2611 adopted October 9, 1979 authorizes the County Fire Marshal to review building permits and development proposals for conformance with fire codes. The issuance of Planning and Building permits requires that plan review and inspection services be conducted by the County Fire Marshal to assure and verify code compliance. Fees have been set to recover the cost of these contract services as they relate to planning and building projects. These fees have historically been included in the Planning and Building fee schedules.

Parks and Recreation In recent years, Parks and Recreation fees have been increased to assist in meeting budgetary targets for the Net County Cost of the Division. (Staffing and other adjustments have also been made.) This year’s budgetary situation requires that the Division keep the fees consistent with cost increases; that is, to increase fees the same amount as costs. As a result, this year’s proposed fee increases are modest in comparison with previous years.

In addition, the County’s loan agreement with the California Department of Boating and Waterways requires that the Coyote Point Marina fees be adjusted annually by a rate not less than the local Consumer Price Index (CPI). In general, fees are increased to first meet the legal minimum, and then to provide adequate funding for the Marina’s long-term capital needs. In addition, Marina staff conducts a survey of competing facilities to ensure the County’s fees continue to be in line with the market. These fees are accumulated in the Marina enterprise fund, separate from the County General Fund.

Agricultural Commissioner/Sealer Food and Agricultural Code (FAC) Sections 5202 and 5204 provide authority for county boards of supervisors to establish a schedule of fees for certification of plant shipments performed at the request of shippers and limits the fees to the approximate cost of inspection. Subsections (a) and (b) of Section 2.24.080 of the San Mateo County Ordinance Code authorize the Agricultural Commissioner to charge a fee for the inspection and certification of produce and plant product shipments destined to other states and countries. Revenue from these fees currently provides full cost recovery for program costs associated with providing inspection and phytosanitary certification services to the agricultural industry. The fee ordinance was last amended in June 2003. By November 2005, the Division’s costs for providing this service will have increased 14% due to negotiated salary and benefit increases.

DISCUSSION

County Fire Marshal The San Mateo County Environmental Services Agency contracts with the California Department of Forestry and Fire Protection (CDF) for fire protection services including services rendered by the County Fire Marshal. The County Fire Marshal is responsible for jurisdictional compliance with the County fire codes. The issuance of Planning and Building permits requires that plan review and inspection services be conducted by the Fire Marshal to assure and verify Code compliance. Fees have been set to recover the cost of these contract services as they relate to Building and Planning projects. These fees have historically been included in the Planning and Building fee schedules.

Your Board adopts by resolution, fee increases for the services provided by the County Fire Marshal’s Office for Protection and Planning. The proposed 7% fee increase reflects the final salary COLA in CDF ’s current five year labor contract and is scheduled to expire June 30, 2006. The attached fee schedule incorporates the fee increase previously adopted by your Board with a 7% benefit COLA. The proposed fee modification would become effective July 1, 2005. All fees are calculated not exceed estimated costs of providing Fire Marshal services.

Parks and Recreation This year’s budgetary situation requires that the Parks and Recreation Division amend the fees such that fees should rise in the same amount as costs. The major component of Division costs, salary and benefits costs, will rise approximately 3% in FY2005/2006, reflecting COLAs; other Division costs are expected to increase by a like amount. Thus, the Division proposes to increase fees by 3% across the board, except as noted below, effective July 1, 2005.

A straight across-the-board increase would cause collection difficulties in many cases, however. For example, a 3% increase to the $5 vehicle entry fee would result in a new fee of $5.15, an awkward amount for customers and staff alike. To address this problem, the proposed fees are rounded, using the following rules:

• Fees less than $50, round to the nearest $1

• Fees from $50 to less than $200, round to the nearest $5

• Fees of $200 and above, round to the nearest $10

The proposed fees incorporate the 3% increase, rounded according to the rules above. In some cases, application of the rounding rules means the percentage increase is not enough to increase the fee. Thus, it is important to maintain a record of the underlying (i.e., non-rounded) fee, so that future increases can be applied to it; at some point, the compounding of increases will result in a rounding-up, and a fee increase. Parks staff has established a record of the underlying fees, so that future fees can be calculated properly.

The result of this process is that many of the larger park fees are recommended for increases this year. Examples include:

Group picnic minimum fee from $62.50 to $65

Shelter minimum fee from $150 to $155

Family camping fee from $20 to $21

Horse camp weekend fees from $240 (large area) to $250

The Coyote Point Marina fees are required to be adjusted annually by at least the local Consumer Price Index (CPI). Since the Marina fees go into the Marina enterprise fund, a self-supporting fund independent of the County General Fund, sufficient fee revenues are required to pay for current operations plus long-term capital needs. Staff has analyzed the capital needs in future years for the Marina, and has discussed those needs and the resultant fee increase with the current berthers. Staff is proposing a total increase for the Marina berthing fees of 4.36%, consisting of the Consumer Price Index of 1.56%, plus an additional increase of 2.8% for capital needs. The proposed new berthing fees are rounded to the nearest dollar; other Marina fees stay the same. Based on a survey of neighboring marinas, the proposed fees should keep Coyote Point about in the middle of the market. Staff, however, will be watching our occupancy rates closely to ensure that total revenues meet expectations.

The Parks and Recreation Commission reviewed the proposed fee increases at their meeting of April 13 and recommended the Board of Supervisors approve the proposed fee increases.

Agricultural Commissioner/Sealer A comparison of the existing and proposed fee schedule for phytosanitary certification inspection of produce and plant products is summarized below.

Number of Packages Existing Fee Proposed Fee

1-75 $25.00 (minimum) $28.00 (minimum)

76-200 $28.00 $32.00

over 200 $34.00 $38.00

The total annual revenue collected from the proposed phytosanitary certification fees would increase from $136,000 to $158,500. This additional revenue of $22,500 will provide full cost recovery for the current level of staffing and services to industry and will assist the Division in meeting its Net County Cost target.

The Division recently surveyed seven other Bay Area counties and the United States Department of Agriculture (USDA) to determine their fee schedules for phytosanitary inspections. The results of the fee survey are outlined in the enclosed Attachment G. Even with the proposed increase, San Mateo County’s charges for phytosanitary certification will be among the lowest in the Bay Area.

These proposed fees have been included in the Division’s FY 2005/2006 budget. If these fees are not adopted, the Division would have to develop another plan to meet its Net County Cost target, which will include reductions in staff and customer service levels.

A second reading of this ordinance will be scheduled for the Board of Supervisors next meeting.

REVIEWING AGENCIES

County Counsel had reviewed and approved the resolutions and finds them in order.

FISCAL IMPACT

County Fire Marshal The proposed increase in County Fire plan review fees will realize an estimated $75,000 that will partially offset higher salary and benefit costs of existing CDF personnel.

Parks and Recreation Staff estimates that the proposed Park fee increases will result in an overall increase of $14,750 in fee revenues in FY2005/2006. This increase is in the three revenue categories (Camping Permits, Horse Camp Permits, and Reservation Fees) that contain the larger park fees. The largest fee revenue category, Park Entry Fees, shows no increase, in that usage is expected to stay level and the $5 entry fee is not proposed for increase. The increase in berthing fees at Coyote Point Marina is expected to generate an increase of $49,000 in Marina fees in FY2005/2006 compared to the current year. However, collections in the current year are estimated to fall $36,783 below the budget target, so the net increase to the budgeted revenue is $12,217 as a result of the proposed fee increases.

Agricultural Commissioner/Sealer The proposed fee increases have been included in the Agricultural Commissioner/Sealer Division budget for FY 2005-06 and are part of the Division’s plan to meet its Net County Cost. The new phytosanitary inspection certification fee schedule will provide $158,500 in annual revenue, which will represent full cost recovery for this service. A total of $22,500 has been added to the Division’s FY 2005-06 budget based on this revised fee schedule.

There is no Net County Cost associated with this ordinance amendment.

ATTACHMENTS

A.

Resolution Amending Fire Marshal Service Fee Schedule.

B.

Proposed Fire Marshal Fee Schedule for FY2005/2006.

C.

Resolution Amending Selected Park and Marina Berthing Fee Schedules for FY2005/2006.

D.

Proposed Parks and Recreation Fee Schedule for FY2005/2006.

E.

Proposed Marina Fee Schedule for FY2005/2006.

F.

County Phytosanitary Certification Fee Survey.

G.

An Ordinance Amending Section 2.24.080 of Chapter 2.24 of Title 2 of the San Mateo County Ordinance Code to Increase Fees Charged by the Agricultural Commissioner for Inspection and Certification of Certain Plant Products.



COUNTY OF SAN MATEO Inter-Departmental Correspondence

ENVIRONMENTAL SERVICES AGENCY


DATE:			April 11, 2005
BOARD MEETING DATE:			May 17, 2005
SPECIAL NOTICE/HEARING:			Ten-days’ notice
			Public Hearing
			9:15 a.m.
VOTE REQUIRED:			Majority

TO:		Honorable Board of Supervisors

FROM:		Marcia Raines, Director of Environmental Services

SUBJECT:		Increases in Planning and Building, County Fire Marshal, Parks and Recreation and Agricultural Commissioner/Sealer Fees FY2005/2006.

RECOMMENDATION

1.	Adopt a Resolution amending County Fire Marshal plan review and inspection fees for a 7% COLA increase.

2.	Adopt a Resolution amending Parks and Recreation fees as follows: (a) Increase Park fees by 3% across the board, as rounded; and (b) Increase Coyote Point Marina berthing fees by 4.36%, as rounded.

3.	Adopt an ordinance amending Section 2.24.080 of the San Mateo County Ordinance Code to increase fees charged by the Agricultural Commissioner for the inspection and certification of certain plant products and the waiver of reading the ordinance in its entirety.

VISION ALIGNMENT

Commitment: Responsive, effective and collaborative government.

Goals 20 and 24: Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain. Residents accept individual responsibility for contributing to the quality of life of the County as a whole.

These fee increases contribute to the commitment and goals by maintaining a proper relationship between costs and revenues and by assuring that those who utilize County 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.

BACKGROUND

County Fire Marshal County Ordinance 2611 adopted October 9, 1979 authorizes the County Fire Marshal to review building permits and development proposals for conformance with fire codes. The issuance of Planning and Building permits requires that plan review and inspection services be conducted by the County Fire Marshal to assure and verify code compliance. Fees have been set to recover the cost of these contract services as they relate to planning and building projects. These fees have historically been included in the Planning and Building fee schedules.

Parks and Recreation In recent years, Parks and Recreation fees have been increased to assist in meeting budgetary targets for the Net County Cost of the Division. (Staffing and other adjustments have also been made.) This year’s budgetary situation requires that the Division keep the fees consistent with cost increases; that is, to increase fees the same amount as costs. As a result, this year’s proposed fee increases are modest in comparison with previous years. In addition, the County’s loan agreement with the California Department of Boating and Waterways requires that the Coyote Point Marina fees be adjusted annually by a rate not less than the local Consumer Price Index (CPI). In general, fees are increased to first meet the legal minimum, and then to provide adequate funding for the Marina’s long-term capital needs. In addition, Marina staff conducts a survey of competing facilities to ensure the County’s fees continue to be in line with the market. These fees are accumulated in the Marina enterprise fund, separate from the County General Fund.

Agricultural Commissioner/Sealer Food and Agricultural Code (FAC) Sections 5202 and 5204 provide authority for county boards of supervisors to establish a schedule of fees for certification of plant shipments performed at the request of shippers and limits the fees to the approximate cost of inspection. Subsections (a) and (b) of Section 2.24.080 of the San Mateo County Ordinance Code authorize the Agricultural Commissioner to charge a fee for the inspection and certification of produce and plant product shipments destined to other states and countries. Revenue from these fees currently provides full cost recovery for program costs associated with providing inspection and phytosanitary certification services to the agricultural industry. The fee ordinance was last amended in June 2003. By November 2005, the Division’s costs for providing this service will have increased 14% due to negotiated salary and benefit increases.

DISCUSSION

County Fire Marshal The San Mateo County Environmental Services Agency contracts with the California Department of Forestry and Fire Protection (CDF) for fire protection services including services rendered by the County Fire Marshal. The County Fire Marshal is responsible for jurisdictional compliance with the County fire codes. The issuance of Planning and Building permits requires that plan review and inspection services be conducted by the Fire Marshal to assure and verify Code compliance. Fees have been set to recover the cost of these contract services as they relate to Building and Planning projects. These fees have historically been included in the Planning and Building fee schedules.

Your Board adopts by resolution, fee increases for the services provided by the County Fire Marshal’s Office for Protection and Planning. The proposed 7% fee increase reflects the final salary COLA in CDF ’s current five year labor contract and is scheduled to expire June 30, 2006. The attached fee schedule incorporates the fee increase previously adopted by your Board with a 7% benefit COLA. The proposed fee modification would become effective July 1, 2005. All fees are calculated not exceed estimated costs of providing Fire Marshal services.

Parks and Recreation This year’s budgetary situation requires that the Parks and Recreation Division amend the fees such that fees should rise in the same amount as costs. The major component of Division costs, salary and benefits costs, will rise approximately 3% in FY2005/2006, reflecting COLAs; other Division costs are expected to increase by a like amount. Thus, the Division proposes to increase fees by 3% across the board, except as noted below, effective July 1, 2005.

A straight across-the-board increase would cause collection difficulties in many cases, however. For example, a 3% increase to the $5 vehicle entry fee would result in a new fee of $5.15, an awkward amount for customers and staff alike. To address this problem, the proposed fees are rounded, using the following rules:

• Fees less than $50, round to the nearest $1 • Fees from $50 to less than $200, round to the nearest $5 • Fees of $200 and above, round to the nearest $10

The proposed fees incorporate the 3% increase, rounded according to the rules above. In some cases, application of the rounding rules means the percentage increase is not enough to increase the fee. Thus, it is important to maintain a record of the underlying (i.e., non-rounded) fee, so that future increases can be applied to it; at some point, the compounding of increases will result in a rounding-up, and a fee increase. Parks staff has established a record of the underlying fees, so that future fees can be calculated properly.

The result of this process is that many of the larger park fees are recommended for increases this year. Examples include:

Group picnic minimum fee from $62.50 to $65
Shelter minimum fee from $150 to $155
Family camping fee from $20 to $21
Horse camp weekend fees from $240 (large area) to $250

The Coyote Point Marina fees are required to be adjusted annually by at least the local Consumer Price Index (CPI). Since the Marina fees go into the Marina enterprise fund, a self-supporting fund independent of the County General Fund, sufficient fee revenues are required to pay for current operations plus long-term capital needs. Staff has analyzed the capital needs in future years for the Marina, and has discussed those needs and the resultant fee increase with the current berthers. Staff is proposing a total increase for the Marina berthing fees of 4.36%, consisting of the Consumer Price Index of 1.56%, plus an additional increase of 2.8% for capital needs. The proposed new berthing fees are rounded to the nearest dollar; other Marina fees stay the same. Based on a survey of neighboring marinas, the proposed fees should keep Coyote Point about in the middle of the market. Staff, however, will be watching our occupancy rates closely to ensure that total revenues meet expectations.

The Parks and Recreation Commission reviewed the proposed fee increases at their meeting of April 13 and recommended the Board of Supervisors approve the proposed fee increases.

Agricultural Commissioner/Sealer A comparison of the existing and proposed fee schedule for phytosanitary certification inspection of produce and plant products is summarized below.

Number of Packages Existing Fee Proposed Fee
1-75 $25.00 (minimum) $28.00 (minimum) 76-200 $28.00 $32.00 over 200 $34.00 $38.00

The total annual revenue collected from the proposed phytosanitary certification fees would increase from $136,000 to $158,500. This additional revenue of $22,500 will provide full cost recovery for the current level of staffing and services to industry and will assist the Division in meeting its Net County Cost target.

The Division recently surveyed seven other Bay Area counties and the United States Department of Agriculture (USDA) to determine their fee schedules for phytosanitary inspections. The results of the fee survey are outlined in the enclosed Attachment G. Even with the proposed increase, San Mateo County’s charges for phytosanitary certification will be among the lowest in the Bay Area.

These proposed fees have been included in the Division’s FY 2005/2006 budget. If these fees are not adopted, the Division would have to develop another plan to meet its Net County Cost target, which will include reductions in staff and customer service levels.

A second reading of this ordinance will be scheduled for the Board of Supervisors next meeting.

REVIEWING AGENCIES

County Counsel had reviewed and approved the resolutions and finds them in order.

FISCAL IMPACT

County Fire Marshal The proposed increase in County Fire plan review fees will realize an estimated $75,000 that will partially offset higher salary and benefit costs of existing CDF personnel.

Parks and Recreation Staff estimates that the proposed Park fee increases will result in an overall increase of $14,750 in fee revenues in FY2005/2006. This increase is in the three revenue categories (Camping Permits, Horse Camp Permits, and Reservation Fees) that contain the larger park fees. The largest fee revenue category, Park Entry Fees, shows no increase, in that usage is expected to stay level and the $5 entry fee is not proposed for increase. The increase in berthing fees at Coyote Point Marina is expected to generate an increase of $49,000 in Marina fees in FY2005/2006 compared to the current year. However, collections in the current year are estimated to fall $36,783 below the budget target, so the net increase to the budgeted revenue is $12,217 as a result of the proposed fee increases.

Agricultural Commissioner/Sealer The proposed fee increases have been included in the Agricultural Commissioner/Sealer Division budget for FY 2005-06 and are part of the Division’s plan to meet its Net County Cost. The new phytosanitary inspection certification fee schedule will provide $158,500 in annual revenue, which will represent full cost recovery for this service. A total of $22,500 has been added to the Division’s FY 2005-06 budget based on this revised fee schedule.

There is no Net County Cost associated with this ordinance amendment.

ATTACHMENTS

A.	Resolution Amending Fire Marshal Service Fee Schedule.
B.	Proposed Fire Marshal Fee Schedule for FY2005/2006.
C.	Resolution Amending Selected Park and Marina Berthing Fee Schedules for FY2005/2006.
D.	Proposed Parks and Recreation Fee Schedule for FY2005/2006.
E.	Proposed Marina Fee Schedule for FY2005/2006.
F.	County Phytosanitary Certification Fee Survey.
G.	An Ordinance Amending Section 2.24.080 of Chapter 2.24 of Title 2 of the San Mateo County Ordinance Code to Increase Fees Charged by the Agricultural Commissioner for Inspection and Certification of Certain Plant Products.