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Agenda Item
ASR
Control 24-000119 |
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MEETING
DATE: |
05/07/24 |
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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): |
Amanda
Carr (714) 955-0601 |
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Jose
Arriaga (714) 955-0101 |
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Subject: Adopt Ordinance and Resolutions for
OC Agricultural Commission Fee Schedule
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ceo CONCUR |
County Counsel Review |
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: |
Sole Source: N/A |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 7/28/2020 #19, 7/14/2020 #35,
6/20/1978 |
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RECOMMENDED
ACTION(S):
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1. |
Find that the OC Agricultural Commission
Fee Schedule is Statutorily Exempt from the provisions of CEQA, pursuant to
Public Resources Code Section 21080(b)(8) and CEQA Guidelines Section 15273
as CEQA does not apply to the establishment of or modification, structuring,
restructuring or approval of rates, tolls, fares and other charges by a
public agency, that are for the purpose of meeting operating expenses for
mandated program and services. |
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2. |
Read title of Ordinance. |
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3. |
Order further reading of Ordinance be
waived. |
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4. |
Conduct 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 of Supervisors meeting for adoption. |
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7. |
At the next regularly scheduled meeting,
consider the matter and adopt the Ordinance, effective July 1, 2024. |
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8. |
Adopt the Resolution on Plant
Quarantine-Phytosanitary Certification Program fees in Attachment B,
effective July 1, 2024. |
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9. |
Adopt the Resolution on Certified
Farmers' Market Program fees in Attachment C, effective July 1, 2024. |
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10. |
Adopt the Resolution on Pesticide Use
Enforcement Program fees in Attachment D, effective July 1, 2024. |
SUMMARY:
Approval of recommended updates to
fees for mandated services provided by the OC Agricultural Commissioner-Sealer
of Weights and Measures will ensure revenue stability for the continued
protection of public safety, consumer protection, environmental health and
business competitiveness.
BACKGROUND
INFORMATION:
Under State of California (State)
law, 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,
verifying pricing accuracy and enforcing State laws on pesticide use throughout
Orange County.
On June 20, 1978, the Board of
Supervisors (Board) adopted Resolution No. 78-946, which directs County of
Orange (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, State law also sets a maximum allowable limit
by statute on what counties can recover. There are five fee schedules for
operating and maintaining programs (Attachments F, G, H, I and J) that have not
been adjusted since 2020. The four programs will continue to require County
funding due to the fee limits established by State law.
On July 14, 2020, the Board considered the
first reading of “An Ordinance of the County of Orange, California amending
Sections 5-5-1, 5-5-2 and 5-5-13 of the Codified Ordinances of the County of
Orange to provide for Registration and Inspection of retail Motor Fuel Devices
and Price Scanners and to Increase the Maximum Annual Fees for Registration of
all Commercial Weighing and Measuring Instruments”. On July 14, 2020, the Board
also adopted Resolutions updating fees for the Plan
Quarantine-Phytocertification Program, Certified Farmers' Market Program and
Pesticide Use Enforcement Program. On July 28, 2020, at the second reading, the
Board adopted the Ordinance.
OC Public Works has reviewed the
actual cost of providing the Agricultural Commissioner Services (Services),
comparing them to the limits set by State law as well as to the rates charged
by other counties and made recommendations for adjustment. Outreach to stakeholder
groups served by these programs has also been conducted, namely to the Orange
County Farm Bureau, pesticide use registrants, weights and measures
registrants, agricultural producers, certified farmers’ market managers,
agricultural commodity exporters and nursery operators.
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, State law requires each county to test and
affix a seal on commercial devices that weigh or otherwise measure products for
sale. These weighing and measuring devices include grocery store scales,
gasoline pumps, electric vehicle chargers and taxi meters among many others.
The fees were last updated in 2020; however, the number of devices registered
in the County has increased by 11 percent since 2020 (FY 2019-20: 175,336, FY
2022-24: 194,382).
The California Business and Professions
Code Section 12240 establishes maximum amounts for most fees in the Weights and
Measures Program (WM Program) and also requires that the County adopt the fees
by Ordinance. In 2023, the California legislature passed and the Governor
signed AB 1304 into law to adjust the registration fee caps that county
supervisors can charge annually. 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 new amount
without exceeding full cost recovery, based on OC Public Works’ determination
of actual costs.
The table below illustrates the estimated
full cost of WM Program implementation, State revenues and proposed fee
revenues to be collected each year and County funding required for each year.
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Cost of Program |
State Revenues |
Fee Revenues |
Total Revenues |
Percent State Revenues and Fees |
County Funding |
County Funding Percent |
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Proposed Year 1 (FY 2024-25) |
$4,142,500 |
$39,474 |
$3,428,730 |
$3,468,204 |
84% |
$674,296 |
16% |
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Proposed Year 2 (FY 2025-26) |
$4,306,474 |
$39,474 |
$3,479,945 |
$3,519,419 |
82% |
$787,055 |
18% |
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Proposed Year 3 (FY 2026-27) |
$4,347,984 |
$39,474 |
$3,492,073 |
$3,531,547 |
81% |
$816,437 |
19% |
91.3 percent (21 of 23) Orange County Weights &
Measures proposed fees are at or below the fee average of Los Ageless,
Riverside and San Diego counties (Attachment N).
Plant
Quarantine-Phytosanitary Certification Program
Nearly every state and country
control the importation of plants and produce to prevent the entry of plant
pests and diseases of concern within their jurisdiction. The Plant
Quarantine-Phytosanitary Certification 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. For example, the European Brown Garden Snail is
a foreign species now endemic in the State. However, 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
phytosanitary certificate issued by the Agricultural Commissioner’s Office is
the official verification that the given commodity meets the phytosanitary
requirements of importing states. Without the required certification, local
businesses would fail to meet the various domestic and foreign entry
requirements for plants, plant products and other regulated articles restricting
them from entering the channels of trade. Since 2020, the Agricultural
Commissioner’s Office has seen a 245 percent increase in the number of
Phytosanitary Certifications requested for exports, which has generated a
greater workload demand on the limited United States Department of Agriculture
Authorized Certification Official staff.
The Plant Program is funded by fee
revenues collected from participating County shippers, revenue from the
California Department of Food and Agriculture and County funding. On July 14,
2020, the Board adopted Resolution Number 20-092 approving the current fees.
The table below illustrates the
estimated full cost of Plant Program implementation, State revenues and
proposed fee revenues to be collected each year and County funding required for
each year.
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Cost of Program |
State Revenues |
Fee Revenues |
Total Revenues |
Percent State Revenues and Fees |
County Funding |
County Funding Percent |
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Proposed Year 1 (FY 2024-25) |
$125,522 |
$46,465 |
$57,493 |
$103,958 |
83% |
$21,564 |
17% |
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Proposed Year 2 (FY 2025-26) |
$132,004 |
$46,465 |
$63,533 |
$109,998 |
83% |
$22,006 |
17% |
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Proposed Year 3 (FY 2026-27) |
$133,436 |
$46,465 |
$69,565 |
$116,030 |
87% |
$17,406 |
13% |
The Plant Quarantine-Phytosanitary Certification Program fee
format is different for each county. However, the cost for certification is on
par with Los Angeles, San Diego, San Bernardino and Santa Barbara counties
(Attachment N).
Certified
Farmers’ Market Program
The Orange County Certified
Farmers’ Market Program (CFM Program) provides oversight that enables
California agricultural producers to directly market their products to
consumers. As a protection to consumers and program participants, the focus of
the CFM Program is to ensure that farmers sell produce that they have grown
themselves within the State as required by law. Enforcement is vital to
protection from unfair competition due to fraudulent selling activities. Food
and Agricultural Code Sections 47020-47021 authorizes the Board to set a
certification and inspection fee schedule. Since 2020, the CFM Program has seen
an increase of five percent in the total number of Certified Producers and an
increase of 19 percent in the total number of Certified Farmers’ Markets
operating in the County, which has increased the workload on enforcement staff.
On July 14, 2020, the Board adopted
current CFM Program fees by Resolution Number 20-093.
The table below illustrates the
estimated full cost of CFM Program implementation, State revenues and proposed
fee revenues to be collected each year and County funding required for each
year.
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Cost of Program |
State Revenues |
Fee Revenues |
Total Revenues |
Percent State Revenues and Fees |
County Funding |
County Funding Percent |
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Proposed Year 1 (FY 2024-25) |
$163,785 |
$51,609 |
$39,136 |
$90,745 |
55% |
$73,040 |
45% |
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Proposed Year 2 (FY 2025-26) |
$171,479 |
$51,609 |
$43,849 |
$95,458 |
56% |
$76,021 |
44% |
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Proposed Year 3 (FY 2026-27) |
$172,808 |
$51,609 |
$49,160 |
$100,769 |
58% |
$72,039 |
42% |
The Certified Farmer’s Market Program fee format is different
for each county. However, the proposed fees are in par with Los Angeles, San
Diego, San Bernardino and Santa Barbara counties (Attachment N).
Pesticide
Use Enforcement
Under State laws (Food and
Agricultural Code Sections 11732, 11734, 11923, 12034, 15204 and 15204.5; and
Labor Code Section 1695) companies that perform pest control activities for
hire are mandated to register with the Agricultural Commissioner prior to conducting
business. Registration is required to facilitate regulation of 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 use laws and regulations correctly.
The Pesticide Program is funded by
registration fees collected from licensed pest control businesses as well as
other industry fees, State Pesticide Mill Tax, Unrefunded Gasoline Tax, fines
and County funding. On July 14, 2020, the Board approved the current fees by
Resolution Number 20-094. Over the past four years, registration has increased
by 3.6 percent, which generates a greater workload for the enforcement staff.
The Resolution for the Pesticide Program also provides a mechanism whereby if
the State Food and Agricultural Code fee caps are adjusted, the County’s fees
will also adjust to the new amount without exceeding full cost recovery, based
on OC Public Works’ determination of actual costs.
The table below illustrates the
estimated full cost of Pesticide Program implementation, State funding and
proposed fee revenues to be collected each year and County funding required for
each year.
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Cost of Program |
State Revenues |
Fee Revenues |
Total Revenues |
Percent State Revenues and Fees |
County Funding |
County Funding Percent |
|
Proposed Year 1 (FY 2024-25) |
$2,293,502 |
$1,254,100 |
$148,820 |
$1,402,920 |
61% |
$890,582 |
39% |
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Proposed Year 2 (FY 2025-26) |
$2,411,351 |
$1,254,100 |
$150,241 |
$1,404,341 |
58% |
$1,007,010 |
42% |
|
Proposed Year 3 (FY 2026-27) |
$2,436,496 |
$1,254,100 |
$150,241 |
$1,404,341 |
58% |
$1,032,155 |
42% |
87.5 percent (7 of 8) Orange County Pesticide Use
Enforcement Registration proposed fees are at or below the fee average of Los
Ageless, Riverside, San Bernardino and San Diego counties (Attachment N).
Summary
The demand for Services from the
Agricultural Commissioner’s Office has experienced steady growth in every
program. These Services protect public health and safety, consumers and
business competitiveness and our local environment. All the Services are mandated
by State law with required service levels. In accordance with established Board
policy, the proposed fees have been evaluated for full cost recovery. In a
number of cases, State statutes limit the County’s ability to fully recover
costs of providing these Services, therefore the County contributes funding to
ensure that these mandated programs continue. County funding support for
Agricultural Programs and the Pesticide Program contribute towards the County
Maintenance of Effort, a State program that allows the County to receive
Unrefunded Gas Tax revenue. All the proposed fees are commensurate with fees
charged by other counties.
Compliance
with CEQA: The
subject activity is statutorily exempt from review under CEQA pursuant to
Public Resources Code Section 21080(b)(8) and CEQA Guidelines Section 15273 as
CEQA does not apply to the establishment or modification, structuring,
restructuring or approval of rates, tolls, fares and other charges by a public
agency, that are for the purpose of meeting operating expenses for mandated
Services and programs.
FINANCIAL
IMPACT:
The proposed fee schedule aims to maintain
the current level of General Fund support 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 table below illustrates the estimated
Agricultural Commissioner total cost of the programs described above, including
non-fee mandated functions, State revenue, anticipated fees revenue for each
year and County funding.
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Cost of Program |
State Revenues |
Fee Revenues |
Total Revenues |
Percent State Revenues and Fees |
County Funding |
County Funding Percent |
|
Proposed Year 1 (FY 2024-25) |
$6,725,309 |
$1,391,648 |
$3,674,179 |
$5,065,827 |
75% |
$1,659,482 |
25% |
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Proposed Year 2 (FY 2025-26) |
$7,021,308 |
$1,391,648 |
$3,737,568 |
$5,129,216 |
73% |
$1,892,092 |
27% |
|
Proposed Year 3 (FY 2026-27) |
$7,090,724 |
$1,391,648 |
$3,761,039 |
$5,152,687 |
73% |
$1,938,037 |
27% |
STAFFING
IMPACT:
N/A
ATTACHMENT(S):
Attachment
A - Ordinance for Weights and Measures Program
Attachment B - Resolution for Plant Quarantine-Phytosanitary Certification
Program
Attachment C - Resolution for Certified Farmers’ Market Program
Attachment D - Resolution for Pesticide Use Enforcement Program
Attachment E - Point of Sale Fee Checklist
Attachment F - Weights and Measures Fee Checklist
Attachment G - Plant Quarantine-Phytosanitary Certification Fee Checklist
Attachment H - Certified Farmers’ Market Fee Checklist
Attachment I - Pesticide Use Enforcement Fee Checklist
Attachment J - OC Agricultural Commissioner’s Office Proposed Fee Schedule
Attachment K - Food and Agricultural Codes 11732, 11734, 11923, 12304, 15204
and 15204.5 and Labor Code 1695
Attachment L - California Business and Professional Code 12240
Attachment M - Public Resources Code 21080
Attachment N - Neighboring County Comparisons