DATE: April 22, 2025
TO: Board of Supervisors
SUBMITTED BY: Melissa Cregan, Agricultural Commissioner/Sealer of Weights & Measures
SUBJECT: Amendment to Master Schedule of Fees - Agriculture
RECOMMENDED ACTION(S):
TITLE
1. Conduct first hearing to amend the Master Schedule of Fees, Charges and Recovered Costs Ordinance by amending Section 3300 - Agriculture, Subsections 3305 and 3306, and waive reading of the Ordinance in its entirety and set the second hearing for May 6, 2025;
2. Designate County Counsel to prepare a fair and adequate summary of the proposed Ordinance; and
3. Direct the Clerk of the Board to post and publish the required summary in accordance with Government Code, Section 25124(b)(1).
REPORT
There is no additional Net County Cost associated with the recommended actions. Approval of the first recommended action would revise the existing Master Schedule of Fees, Charges and Recovered Costs Ordinance (MSF) based on the Department’s program costs for FY 2023-24. The recommended amendments to MSF Subsection 3306 include updated rates to enable the Department of Agriculture to recover increases in salaries and benefits as well as services and supplies. Additionally, approval of the first recommended action would retitle Subsection 3306 from “Rodenticide” to “Agricultural Services” to correct the terminology used, provide clarification, reorganize certain fees to enhance transparency and improve understanding, and correct a code citation in Subsection 3305. This item is countywide.
ALTERNATIVE ACTION(S):
Your Board may direct the Department 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 providing services.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. If approved by your Board, it is anticipated the proposed fee increases will allow the Department to recover the full cost of providing agricultural services.
DISCUSSION:
The Department conducted a review of costs and underlying assumptions for providing phytosanitary inspections and other agricultural services billed on an hourly rate basis. This review was mainly prompted by significant increases in salary and benefit costs over the past two fiscal years and aimed to establish rates that fully recover the cost of delivering these services. The rates were last updated in 2015.
The rate development methodology and calculations were reviewed by the Auditor-Controller/Treasurer-Tax Collector and approved on December 23, 2024.
The proposed rate changes for Phytosanitary Certificates are as follows:
• Base Rate: Increase from $18.51 to $31.59 (71%)
• Inspection Hourly Rate: Increase from $80.98 to $109.76 (36%)
• Inspection Mileage Rate: Increase from $0.56 to $1.00 per mile (79%)
The increases in the Base Rate and Hourly Rate primarily result from higher salary and benefit costs, while the increase in the Mileage Rate accounts for rising transportation expenses. Additionally, the Department is proposing to shift to a Mileage Rate calculation based on actual vehicle costs rather than the Internal Revenue Service mileage reimbursement rate.
The Departmental Hourly Rate is proposed to increase from $87.27 to $87.88 (less than a 1% increase). The Hourly Rate for Certified Farmers Market Certificates is proposed to increase from $60.00 to $87.88 (46% increase). Previously, this fee was capped at $60 under California Food & Agricultural Code Section 47020, preventing the Department from applying the full calculated Departmental Hourly Rate. The new Departmental Hourly Rate now includes transportation costs, eliminating the need for additional per-mile charges.
Additionally, the first recommended action proposes updates and clarifications to the MSF to correct prior inaccuracies and enhance transparency, as presented in Attachment A - MSF Change Comparison.
If the recommended actions are approved by your Board, a second hearing will be held on May 6, 2025. If adopted at that time, the proposed rate changes will take effect on June 5, 2025.
REFERENCE MATERIAL:
BAI #34, June 16, 2015
ATTACHMENTS INCLUDED AND/OR ON FILE:
Ordinance
Exhibit A - Proposed MSF
Attachment A - MSF Change Comparison
On file with Clerk - Summary of Proposed Ordinance
CAO ANALYST:
Amy Ryals