COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Environmental Services Agency

Agricultural Commissioner/Sealer Division

 

DATE:

November 14, 2005

BOARD MEETING DATE:

December 6, 2005

SPECIAL NOTICE/HEARING:

10 Day Publication

VOTE REQUIRED:

Majority

 

TO:

Honorable Board of Supervisors

FROM:

Marcia Raines, Environmental Services Agency Director

Gail Raabe, Agricultural Commissioner/Sealer

   

SUBJECT:

EXECUTIVE SUMMARY: Amendment to the San Mateo County Ordinance Code to increase Annual Device Registration Fees for Commercial Weighing and Measuring Devices

 

RECOMMENDATION:

Adopt an ordinance amending Sections 5.124.020 and 5.124.030 of the San Mateo County Ordinance Code to increase annual device registration fees for commercial weighing and measuring devices and waiver of reading the ordinance in its entirety.

 

BACKGROUND:

Device registration fees are utilized by counties to fund consumer protection regulatory programs involving the testing and inspection of commercially-used weighing and measuring devices. Gasoline dispensers, retail scales, taximeters, vehicle scales and other devices are inspected for accuracy and “sealed” to ensure equity in the market place. In FY 2004-05, the County’s device registration fees generated $126,000 which covered only 40% of the program’s cost.

State law authorizes county boards of supervisors to establish an annual device registration fee to recover the cost of inspecting or testing commercial weighing and measuring devices and sets forth the maximum annual fees. In October 2005, the Governor signed Assembly Bill 889 which amends the existing law by establishing a revised registration fee structure that includes both a per-location and a per-device fee, and increases the total maximum annual charges to allow for 100% cost recovery over a three-year period. These provisions are effective January 1, 2006.

 

DISCUSSION:

During negotiations on AB 889, industry representatives requested that the increase in annual fees authorized under state law be phased in over a three-year period at 60%, 80% and 100% of the maximum fees specified for 2008. The fee schedule established by a board of supervisors cannot exceed the maximum set forth in state law, or the program’s actual costs.

Based on the County’s actual annual program costs, the fees necessary for 100% program cost recovery would be $80 per location and $16 per device. The proposed fee schedules for 2006 and 2007 have been set at approximately 60% and 80% of these maximum fees. During the fall of 2007, program costs will be reevaluated and a recommended fee schedule that provides full program cost recovery for the third year, effective January 1, 2008, will be brought to the Board for consideration.

The Board could consider two other options. The Board could adopt higher fee schedules that would phase in full cost recovery over a two-year period. This option is not recommended due to the impact on County businesses. The Board could also adopt the required fee structure but keep the amount of revenue generated by annual device registration fees essentially flat. This option is not recommended because General Fund dollars would be necessary to continue to support the program.

 

FISCAL IMPACT:

If the Board adopts the ordinance adopting the revised fee schedule, new charges would be in effect for the 2006 calendar year registrations. FY 2005-06 device registration fee revenue would increase an estimated $64,000 to an annual total of $190,000 which would provide recovery of 64% of the Division’s current annual program costs. This Unanticipated Revenue has not been included in the Division’s FY 2005-06 Adopted Budget. The fee schedule adopted for the 2007 calendar year registrations would generate an additional $128,000 in revenue for an annual FY 2006-07 total of $254,000 which would provide recovery of approximately 85% of the Division’s annual program costs for 2007, with full cost recovery achieved in 2008.