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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:
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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% |
|
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