DATE: December 17, 2024
TO: Board of Supervisors
SUBMITTED BY: David Luchini, RN, PHN, Director, Department of Public Health
SUBJECT: Amendment to Master Schedule of Fees & Environmental Health Ordinance
RECOMMENDED ACTION(S):
TITLE
1. Conduct second hearing and adopt the Master Schedule of Fees, Charges and Recovered Costs Ordinance by amending Section 900 - Environmental Health, Subsections 904 through 958, and waive reading of the Ordinance in its entirety; and
2. Conduct second hearing and adopt the proposed Ordinance which amends the Fresno County Ordinance Code, Title 8 Health and Safety, Chapters 8.19 Solid Waste Management - Prohibitions, 8.50 Environmental Health Permits and Inspection Fees, and Title 14 Water and Sewage, Chapter 14.04 Well Regulations - General Provisions, and delete Title 8 Health and Safety, Chapter 8.60 Storage of Hazardous Substances in Underground Tanks, and waive reading of the Ordinance entirely.
REPORT
There is no additional Net County Cost associated with the recommended actions. Approval of the first recommended action will revise Section 900 - Environmental Health of the Master Schedule of Fees, Charges and Recovered Costs (MSF) Ordinance, last amended in FY 2021-22, and schedule the second hearing for December 17, 2024. The proposed amendment to Section 900 is a 4% to 106% increase based on anticipated expenses and revenue for FY 2024-25 through FY 2026-27, which allows for 100% cost recovery, thereby reducing the use of 1991 Health Realignment (Realignment) to offset permit fee-based program costs.
Approval of the second recommended action will revise Chapters 8.19 - Solid Waste Management-Prohibitions, last amended in 2018; 8.50 - Environmental Health Permits and Inspection Fees, last amended in 1993; and 14.05 - Well Regulations-General Provisions, last amended 1983, and delete 8.60 - Storage of Hazardous Substances in Underground Tanks, last amended 1986 of Fresno County Ordinance Code (Ordinance). The proposed amendments will align Ordinance with State regulations.
The first hearings were heard by your Board on December 3, 2024. This item is countywide.
ALTERNATIVE ACTION(S):
Your Board may direct Department staff not to change the rates, change a portion of the rates, or propose alternative rates; however, these alternatives will not recover the full costs of services.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. It is anticipated the proposed fee increases, if approved by your Board, will allow the Environmental Health Division to recover the full cost of providing permit fee-based services. Achieving 100% cost recovery for permit fee-based services will allow the Department to explore additional resources to fund unpermitted vendor enforcement activities.
DISCUSSION:
On December 3, 2024, your Board conducted the first hearing to amend Section 900 - Environmental Health and Title 8 Health and Safety, Chapters 8.19 Solid Waste Management - Prohibitions, 8.50 Environmental Health Permits and Inspection Fees, and Title 14 Water and Sewage, Chapter 14.04 Well Regulations - General Provisions, and delete Title 8 Health and Safety, Chapter 8.60 Storage of Hazardous Substances in Underground Tanks.
The proposed MSF rates in Exhibit A capture increases in salaries and benefits as well as the cost of services and supplies, the Department’s approved FY 2024-25 Indirect Cost Rate (24.426%) and anticipated revenue based on FY 2023-24 Actuals. The variances in MSF rate increases outlined below are due to the amount of resources required to provide the billable services and whether there is grant funding or revenue from fines to offset costs.
Program Rate Increases
FY 2024-25 FY 2025-26 FY 2026-27
Certified Unified Program Agency 24% 6% 6%
Certified Unified Program Agency (Hourly Rate) 69% 6% 6%
Consumer Protection Unit 11% 8% 7%
Consumer Protection Unit (Hourly Rate) 4% 8% 7%
Dairy (Hourly Rate Only) 24% 3% 3%
Emergency Response Team (Hourly Rate Only) 106% 3% 3%
Additionally, the proposed MSF rates include new fee categories to align more closely with the existing services being provided. Attachment A is an MSF Fee Change Comparison, which illustrates a comparison between the existing and FY 2024-25 proposed rates.
On November 4, 2024, the Auditor-Controller/Treasurer-Tax Collector approved the Department’s methodology and calculation of the proposed fees.
The proposed Ordinance additions and deletions to Title 8 Health and Safety, and Title 14 Water and Sewage bring the language current with applicable, longstanding State regulations. Key changes include:
Title 8 Health and Safety, Chapter 8.19 - Solid Waste Management-Prohibitions: Permit, fee, handling, disposal, vehicle identification and reporting requirements for liquid waste activities as well as repercussions for operators violating Ordinance.
Title 8 Health and Safety, Chapter 8.50 - Environmental Health Permits and Inspection Fees: Updated and added definitions for existing operations, added language and terms to clarify existing language, and increased civil and criminal penalties for violations of Ordinance.
Title 8 Health and Safety, Chapter 8.60 - Storage of Hazardous Substances in Underground Tanks: Applicable language for permits, fees and allowable activities were absorbed into Title 8, Chapter 8.50 - Environmental Health Permits and Inspection Fees.
Title 14 Water and Sewage, Chapter 14.04 - Well Regulations - General Provisions: Updated language regarding well destruction and permitting frequencies.
On November 21, 2024, the Department held two virtual public hearings to present the proposed MSF and Ordinance changes and provide an opportunity for stakeholder feedback and questions.
The summaries of the Ordinance amendments were published in The Business Journal on December 6, 2024.
If adopted by your Board, the proposed rates will take effect on February 1, 2025. Since the Department bills operators 60 days in advance, operators permitted by the Department can expect to see the increased fees on their billing statements beginning in April 2025.
REFERENCE MATERIAL:
BAI #9, December 3, 2024
ATTACHMENTS INCLUDED AND/OR ON FILE:
Ordinance - MSF
Exhibit A
Attachment A - MSF Fee Change Comparison
Ordinance
CAO ANALYST:
Ronald W. Alexander, Jr.