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Agenda Item
ASR
Control 19-001411 |
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MEETING DATE: |
03/24/20 |
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legal entity taking action: |
Board of Supervisors |
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board of supervisors
district(s): |
All Districts |
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SUBMITTING
Agency/Department: |
OC Public Works
(Approved) |
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Department contact
person(s): |
Khalid Bazmi (714) 667-3213 |
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Amanda Carr (714) 955-0601 |
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Subject: Approve Agricultural
Commission Subsidy Reduction Program
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ceo CONCUR |
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Clerk of the Board |
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Concur |
Approved Resolution(s) and Ordinance(s) |
Public Hearing |
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3 Votes Board Majority |
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Budgeted: N/A |
Current Year Cost:
N/A |
Annual Cost:
N/A |
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Staffing Impact: |
No |
# of Positions:
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Sole Source:
N/A |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 5/5/2015
#53, 6/20/1978 |
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RECOMMENDED ACTION(S):
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1. |
Find that approval of the recommended updates to fees for mandated services provided by the Agricultural Commissioner-Sealer of Weights and Measures is statutorily exempt from the provisions of CEQA, pursuant to Section 21080 (b) (8) of the Public Resources Code and Section 15273 (a) (1) of the CEQA Guidelines, as the updated fees will be used for the purpose of meeting operating expenses for such mandated program and services. |
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2. |
Read title of Ordinance. |
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3. |
Waiver further reading of Ordinance. |
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4. |
Open the public hearing. |
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5. |
Consider the matter. |
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6. |
Direct the Ordinance on the Weights and Measures Program fees be placed on agenda of the next regularly scheduled board meeting for adoption, effective July 1, 2020. |
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7. |
At the next regularly scheduled meeting, consider the matter and adopt the Ordinance effective July 1, 2020. |
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8. |
Adopt the Resolution on Plant Quarantine-Phytocertification Program fees in Attachment B effective July 1, 2020. |
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9.. |
Adopt the Resolution on Certified Farmers' Market Program fees in Attachment C effective July 1, 2020. |
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10. |
Adopt the Resolution on Pesticide Use Enforcement Program fees in Attachment D effective July 1, 2020. |
SUMMARY:
Approval of reducing subsidies for the State of California mandated services provided by the OC Agricultural Commissioner-Sealer of Weights and Measures will ensure revenue stability for the continued protection of public safety, environmental health and business competitiveness.
BACKGROUND INFORMATION:
Under State of California (State) mandate, the Office of the Orange County Agricultural Commissioner-Sealer of Weights and Measures (Agricultural Commissioner) is responsible for inspecting and certifying agricultural products, testing measurement and weighing devices and enforcing State laws on pesticide use throughout the County of Orange (County).
On June 20, 1978, the Board of Supervisors (Board) adopted Resolution No. 78-946, which directs County agencies and departments to achieve full cost recovery. Additionally, State law limits the fees that public agencies can charge to no more than the actual cost of providing the service. For most of the Agricultural Commissioner fees, the State also sets a maximum allowable limit by statute on what counties can recover. There are five rate schedules for operating and maintaining programs that have not been adjusted in many years, requiring substantial subsidies from the County General Fund (GF).
OC Public Works has reviewed the actual cost of providing the Agricultural Commissioner services, comparing them to the limits set by the State as well as to the rates charged by other counties and made recommendations for adjustment. The proposed Weights and Measures fee schedules utilize a tiered approach to calculate fees for the Point of Sale System (Tiered Methodology) resulting in fee adjustments that provide greater accuracy and consistency with neighboring agencies. While the prior methodology would also necessitate fee adjustments, the Tiered Methodology results in greater increases for smaller Point of Sale Systems and smaller increases or decreases for larger Point of Sale Systems. See Attachment J for more detailed information. Extensive outreach to the groups served by these programs has also been conducted, namely to the OC Taxi Authority Program, Orange County Farm Bureau, pesticide use registrants, nurseries, various apartment owner associations, Western Manufactured Housing Communities, Western States Petroleum, National Grocers Association and the National Retail Federation.
The recommended revenue adjustments have no impact to State grant revenues as long as the program continues to receive the appropriate Net County Cost subsidies.
Weights and Measures Program
In order to protect consumers and ensure that businesses do not gain an unfair competitive advantage from biased weighing and measuring devices, the State requires each county to test and affix a seal on business devices that weigh or otherwise measure products or services for sale. These weighing and measuring devices include grocery store scales, gasoline pumps and taxi meters among others. The fees were last updated in 2015; however, the number of devices registered in the County has increased by seven percent since 2015 (FY 2014-15: 176,495, FY 2018-19: 189,651).
The California Business and Professions Code Section 12240 establishes maximum amounts for most fees in this Weights and Measures Program (WM Program) and also requires that the County adopt the weights and measures fees by ordinance. The ordinance for the WM Program also provides a mechanism whereby if the California Business and Professions Code maximums are adjusted, the County’s fee schedule will also adjust to the lower of either the new maximum or full cost recovery, based on OC Public Works’ determination of actual costs.
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Cost of Program |
State Revenues and Fees |
Percent State Revenues and Fees |
Net County Cost |
Percent Net County Cost |
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Current |
$2,580,137 |
$2,033,134 |
79% |
$547,003 |
21% |
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Proposed Year 1 |
$2,696,731 |
$2,233,543 |
83% |
$463,188 |
17% |
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Proposed Year 2 |
$2,757,224 |
$2,255,213 |
82% |
$502,011 |
18% |
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Proposed Year 3 |
$2,843,057 |
$2,276,095 |
80% |
$566,962 |
20% |
Plant Quarantine-Phytocertification Program
Nearly every state and county controls the importation of plants and produce to prevent the entry of plant pests and diseases of concern within their jurisdiction. The Plant Quarantine-Phytocertification Program (Plant Program) allows businesses in the County to export plants and produce to other states and countries by inspecting and certifying that the export shipment is free of pests and diseases of concern to the destination state or country. For example, the Brown Garden Snail is a foreign species now endemic in California the State, but other states in the southeast prohibit its importation to protect their agricultural industry and the environment. As authorized under the Food and Agricultural Code 5205, the phytocertification certificate from the Agricultural Commissioner Office is the official verification that the given commodity meets the phytosanitary requirements of importing states or countries. Without the certification, obstacles to trade could create economic challenges for local businesses if their shipments are rejected due to pests.
The Plant Program is funded by revenues collected from participating County shippers and revenue from the California Department of Food and Agriculture. On May 5, 2015, the Board adopted Resolution Number 15-035 approving the current fees.
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Cost of Program |
State Revenue and Fees |
Percent State Revenue and Fees |
Net County Costs |
Percent Net County Costs |
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Current |
$141,637 |
$99,726 |
70% |
$41,911 |
30% |
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Proposed Year 1 |
$148,102 |
$117,986 |
80% |
$30,116 |
20% |
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Proposed Year 2 |
$151,361 |
$124,105 |
82% |
$27,256 |
18% |
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Proposed Year 3 |
$156,085 |
$131,446 |
84% |
$24,639 |
16% |
Certified Farmers' Market Program
The Orange County Certified Farmers' Market Program provides effective oversight that enables agricultural producers to directly market their products to consumers. As a protection to consumers, the focus of the Certified Farmers’ Market Program (Market Program) is to ensure that farmers only sell produce that they have grown themselves within the State. Enforcement is vital to protection from unfair competition due to fraudulent selling activities. The California Department of Food and Agriculture's Inspection and Compliance Branch governs the fees for the Certified Farmers' Market Program per Food and Agricultural Code Sections 47020-47022.7; changes to these code sections went into effect on January 1, 2015.
On May 5, 2015, the Board adopted the updated Market Program fees by Resolution Number 15-036.
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Cost of Program |
State Revenue and Fees |
Percent State Revenue and Fees |
Net County Cost |
Percent Net County Cost |
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Current |
$97,916 |
$45,498 |
46% |
$52,418 |
54% |
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Proposed Year 1 |
$102,771 |
$51,805 |
50% |
$50,966 |
50% |
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Proposed Year 2 |
$105,289 |
$55,959 |
53% |
$49,330 |
47% |
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Proposed Year 3 |
$108,904 |
$61,226 |
56% |
$47,678 |
44% |
Pesticide Use
Enforcement
Pesticides are useful for reducing damage to structures and protecting public health when used in a safe manner. Under State mandate (Food and Agricultural Code Sections 11734, 15204 and 15204.5) companies that use pesticides are required to register with the County prior to conducting business. Registration is required to regulate pest control activities performed by these entities and for pesticide use reporting purposes. The Pesticide Use Enforcement Program (Pesticide Program) mission is to protect pest control applicators, the public and the environment from the misuse of pesticides. In addition, the Pesticide Program ensures that pesticide businesses follow the pesticide usage regulations correctly.
The Pesticide Program is funded by registration fees collected from licensed pest control businesses as well as other industry fees, State Mill Tax, Unrefunded Gasoline Tax and the GF. On May 5, 2015, the Board approved the current fees by Resolution Number 15-037. Over the past four years, registration has increased by two percent, which generates a greater workload for the enforcement of the Pesticide Program. The resolution for the Pesticide Program also provides a mechanism whereby if the State Food and Agricultural Code maximums are adjusted, the County’s fees will also adjust to the lower of either the new maximum or full cost recovery, based upon OC Public Works’ determination of actual costs.
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Cost of Program |
State Revenues and Fees |
Percent State Revenue and Fees |
Net County Cost |
Percent Net County Cost |
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Current |
$1,572,676 |
$1,180,436 |
75% |
$392,240 |
25% |
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Proposed Year 1 |
$1,648,888 |
$1,192,066 |
72% |
$456,822 |
28% |
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Proposed Year 2 |
$1,688,321 |
$1,202,947 |
71% |
$485,374 |
29% |
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Proposed Year 3 |
$1,745,141 |
$1,214,395 |
70% |
$530,746 |
30% |
Summary
The demand for Services from the Agricultural Commissioner Office has experienced steady growth over the years in nearly every program. These Services protect public health and safety, consumers and business competitiveness. All the services are mandated by the State with required service levels. In accordance with established Board policy, the fees have been evaluated for full cost recovery based on the philosophy that limited GF dollars should be spent on services provided to the general public while those who receive specific services bear the cost of those services. In a number of cases, State statutes limit the County’s ability to fully recover costs. All the proposed fees are commensurate with fees charged by other counties.
Compliance with CEQA: Approval of the recommended updates to rate schedules for mandated services provided by the Agricultural Commissioner Office is statutorily exempt from review under CEQA, pursuant to Section 21080 (b) (8) of the Public Resources Code and Section 15273 (a) (1) of the CEQA Guidelines, as the updated fees will be used for the purpose of meeting operating expenses for such mandated services and programs.
FINANCIAL IMPACT:
The proposed fee schedule aims to maintain the current level of GF Subsidies for fees that are not subject to state limits, while ensuring that the County sustains the state required Maintenance of Effort to be eligible for Unrefunded Gas Tax. The current rate is composed of FY 2018-19 actuals plus FY 2019-20 financial impact.
Weights and Measures
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Program Cost |
General Fund |
State Revenue |
Fee Revenue |
Total Revenue |
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Current |
$2,580,137 |
$547,003 |
$41,130 |
$1,992,004 |
$2,580,137 |
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Proposed |
$2,843,057 |
$566,962 |
$41,130 |
$2,234,965 |
$2,843,057 |
Plant Quarantine
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Program Cost |
General Fund |
State Revenue |
Fee Revenue |
Total Revenue |
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Current |
$141,637 |
$41,911 |
$44,818 |
$54,908 |
$141,637 |
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Proposed |
$156,085 |
$24,639 |
$52,777 |
$78,669 |
$156,085 |
Pesticide Use Enforcement
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Program Cost |
General Fund |
State Revenue |
Fee Revenue |
Total Revenue |
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Current |
$1,572,676 |
$392,240 |
$1,018,159 |
$162,277 |
$1,572,676 |
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Proposed |
$1,745,141 |
$530,746 |
$1,048,520 |
$165,875 |
$1,745,141 |
Certified Farmers' Market
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Program Cost |
General Fund |
State Revenue |
Fee Revenue |
Total Revenue |
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Current |
$ 97,916 |
$52,418 |
$26,628 |
$18,870 |
$97,916 |
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Proposed |
$108,904 |
$47,678 |
$31,356 |
$29,870 |
$108,904 |
Total
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Program Cost |
General Fund |
State Revenue |
Fee Revenue |
Total Revenue |
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Current |
$4,392,366 |
$1,033,572 |
$1,130,735 |
$2,228,059 |
$4,392,366 |
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Percentage |
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24% |
26% |
50% |
100% |
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Proposed |
$4,853,187 |
$1,170,025 |
$1,173,783 |
$2,509,379 |
$4,853,187 |
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Percentage |
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24% |
24% |
52% |
100% |
STAFFING IMPACT:
N/A
ATTACHMENT(S):
Attachment A - Fee Ordinance for Weights and Measures
Program
Attachment B - Fee Resolution for Plant Quarantine-Phytocertification
Attachment C - Fee Resolution for Certified Farmer's Market Program
Attachment D - Fee Resolution for Pesticide Use Enforcement Program
Attachment E - Point of Sale Fee Checklist
Attachment F - Weights and Measures Fee Checklist
Attachment G - Plant Quarantine-Phytocertification Fee Checklist
Attachment H - Certified Farmers Market Fee Checklist
Attachment I - Pesticide Use Enforcement Fee Checklist
Attachment J - Weights and Measures Fee Study
Attachment K - Plant Quarantine-Phytocertification Fee Study
Attachment L - Certified Farmers Market Fee Study
Attachment M - Pesticide Use Enforcement Fee Study
Attachment N - Weights and Measures Neighboring Comparison
Attachment O - Plant Quarantine-Phytocertification Neighboring Comparison
Attachment P - Certified Farmers Market Neighboring Comparison
Attachment Q - Pesticide Use Enforcement Neighboring Comparison
Attachment R - Food and Agricultural Codes
Attachment S - California Business and Professional Code 12240