DATE: July 9, 2019
TO: Board of Supervisors
SUBMITTED BY: David Pomaville, Director, Department of Public Health
SUBJECT: Amendment to Master Schedule of Fees, Charges, and Recovered Costs
RECOMMENDED ACTION(S):
TITLE
Conduct second hearing on and adopt an Ordinance amending the Fresno County Master Schedule of Fees, Charges, and Recovered Costs Section 900 - Environmental Health, sections 902 through 906, 908 through 917, 919 through 934.1, 938 through 940.2, and 948 through 951, and waive reading of Ordinance in its entirety.
REPORT
Approval of the recommended action will amend the identified service rates in Section 900 of the (Master Schedule of Fees, Charges, and Recovered Costs) MSF, last amended in FY 2018-19. The proposed amendments to Section 900 are for an 8% to 13% increase as part of the second year increase of a three-year 25% to 33% phased-in increase approved by your Board on July 10, 2018. To allow for the eventual 90% cost recovery in Section 900 a similar increase will be required in FY 2020-21, thereby reducing the use of Health Realignment (Realignment) to offset permit fee-based program costs. This item is countywide.
ALTERNATIVE ACTION(S):
Your Board may direct Department staff to use current fees or propose alternative fees.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The rates will be used by the Department to recover direct and indirect costs for services performed at 90% in FY 2020-21 by the Department’s - Environmental Health Division (EHD) with the 10% difference in program costs covered by Realignment to ensure the continued protection to public health.
DISCUSSION:
On July 10, 2018, the Board approved the first of three phased-in increases to allow for the eventual 90% cost recovery in Section 900, for identified services provided by EHD.
On June 4, 2019, the Board held the first hearing regarding the second of three phased-in increases.
The recommended rates in Exhibit A are the second year increase of a three-year 25% to 33% phased-in increase and consist of applicable direct and indirect salaries, benefits, services and supplies, including department and countywide overhead costs. Exhibit B provides a summary of 2018 costs compared to revenues at existing rates, indicating the second year phased-in increase is still necessary to achieve an eventual 90% cost recovery rate in the third year. Attachment A provides detail of the changes proposed to the existing rates for comparative purposes, which include revised, reduced, and increased fees.
The proposed amendment to Section 900 is an estimated 8% to 13% increase, with the exception of subsection 902 - Kennel License, which is based on the current hourly rate required for review of these facilities; and subsections 939.1 - Dairy Farm Follow-Up Inspection and 939.2 - Semi Frozen Soft Serve License, which are mandated by the California Department of Food and Agriculture (CDFA). Except for these three subsections, to allow for the eventual 90% cost recovery, a similar increase will be required in FY 2020-21.
The Department completed its Environmental Health Permit Fee Study in 2017. In March 2018, the Auditor-Controller/Treasurer/Tax Collector reviewed and approved the methodology and calculation of the permit rates. During the study, the Department reflected an increase for subsection 939.1 - Dairy Farm Follow-Up Inspection above the allowable rates per the California Food and Agricultural Code, section 33254. The recommended rates reflect a downward adjustment to the meet the current CDFA mandated maximum rates. Additionally, subsection 951 - Body Art Monitoring (c) Reinspection is adjusted to reflect EHD’s standard hourly reinspection rate of $109. In the last ten years, increases in various State department mandated programs and EHD costs to run the programs have driven the need for the proposed permit fee increases. The amendment would decrease the use of Realignment to offset permit fee-based program costs. The redirection of Realignment in 2014 resulting from Assembly Bill 85 and the redirection of growth to the In-Home Support Services Account beginning in 2018 have significantly reduced Realignment available for programs and services. Additionally increased costs in other Realignment funded programs including correctional health and public health have reduced available funding for EHD programs.
The recommended rates, including the calculation, and the methodology applied for cost recovery, was reviewed and approved by the Auditor-Controller/Treasurer-Tax Collector. If approved, the recommended rates will become effective September 1, 2019.
REFERENCE MATERIAL:
BAI #9, June 4, 2019
BAI #59, July 10, 2018
BAI #10, June 12, 2018
BBR - Update Regarding Proposal to Increase Environmental Health Permit Fees, June 7, 2018
BBR - Proposal to Increase Environmental Health Permit Fees, May 4, 2018
ATTACHMENTS INCLUDED AND/OR ON FILE:
Exhibit A - Environmental Health Proposed Rates
Exhibit B - Environmental Health 2018 Program Revenues and Expenses Summary
Attachment A - Environmental Health MSF Rate Change Comparison
Ordinance
CAO ANALYST:
Sonia M. De La Rosa