Supervisors approve increase in most DEH fees

Fees for most services provided by the county's Department of Environmental Health will increase as of April 21, but the San Diego County Board of Supervisors approval exempted cottage food operation permits and well inspections from the increases pending further review of those situations.

A 5-0 Board of Supervisors vote March 15 approved the first reading and introduction of the fee ordinance amendments while referring the cottage food and well inspection fees back to county staff, and a 5-0 vote March 22 approved the second reading and adoption.

The county had last increased Department of Environmental Health fees in 2010. "Since then many DEH programs have experienced new state mandates," said DEH director Elise Rothschild.

"The requirements for us have only increased," said DEH assistant director Amy Harbert.

The fees were adjusted utilizing a methodology approved by the county's Auditor and Controller. Hourly rates are calculated based on the salaries and benefits of the involved staff, the equipment and supplies used to perform the service, and support staff and facilities overhead costs.

The fee adjustment process included working with stakeholders, and in some cases fees will decrease due to reduced county staff time. "We've improved our business process and reduced plan review and inspection time," Rothschild said.

Including the cottage food and well inspection fees which were deferred, DEH recommended adjustment of 309 fees including the deletion or consolidation of 37 of those. Approximately 10 percent of the fees were decreased.

"We understand that fees can have an impact on operators and any fee increases are difficult," Harbert said.

The fee for a collected water sample from a private well was scheduled to increase from $163 to $326. A well permit application for a domestic well increased from $535 to $613 for the first well on a parcel and from $175 to $204 for each additional well.

"I don't feel I should be paying the same permit fee as a 200-unit campground," said John Elliott of Descanso. "It just doesn't feel like I'm getting the value for my dollar."

Supervisor Bill Horn has been farming in San Diego County since 1971 and undergoes annual well testing. Horn noted that at one time there was no well inspection fee.

"There ought to be some kind of scale," Horn said.

"It doesn't seem fair that all should be paying the same fee. Per unit is a better way to go and a fairer way to go," said Supervisor Dianne Jacob.

Horn noted that even if DEH fails to achieve full cost recovery, the small number of single wells being tested will limit the shortfall. "There aren't that many people included here," Horn said. "I would like to see that adjusted downward."

The current Class A cottage food operator (direct sales only) permit fee is $142, and the proposed new fees were $215 for new permits and $74 for renewals. For a class B (direct and indirect sales) cottage food industry the $284 current fee was proposed to be increased to $449 for the initial permit with a renewal fee of $290. The initial fee covers review of up to 20 labels, and for each additional label the hourly rate, based on half-hour increments, was increased from $142 to $153. No label review is required for the permit renewal.

"We have not proposed a fee modification to this since the program began in 2013," Harbert said.

"We do have a policy that we try to get full cost recovery," said Supervisor Greg Cox.

Cox noted that the renewal fee would decrease. "They're really going to see about a 50 percent reduction," he said.

"Somebody who's just starting out, they're going to pay a little bit more," Cox said. "Part of the cost of a startup business, I guess, is to have the initial fee."

In some cases the county supervisors determine that full cost recovery may deter a desired result and are willing to subsidize some of the county's cost for those activities. "The cottage food industry is something we should be protecting," said Supervisor Kristin Gaspar.

Harbert acknowledged that a change in cottage food fees might be possible. "There's more that we can continue to do to work with our stakeholders," she said.

Multiple supervisors also indicated that significant fee increases could be avoided by more frequent review of the county costs. "It's hard for me to accept the seven to twelve year period for which adjustments have not been made," Gaspar said.

(Some of the fees were not adjusted in 2010.)

"I'd really like to see this more standard," Gaspar said.

"Seven years is too long," Horn said.

More frequent review would also be applied to the fees which were increased by the county supervisors' March votes. The increase amounts for those fees reflect the multi-year period without adjustments.

The food facility fees for restaurants was increased from $593 to $663 for restaurants with one to 10 employees, from $708 to $784 for restaurants with 11 to 25 employees, from $858 to $937 for restaurants with 26 to 100 employees, and from $1,572 to $1,743 for restaurants with more than 100 employees.

The fee for each restaurant type food facility in excess of three at the same location was reduced from $590 to $533. If a resort or entertainment complex has more than three food preparation areas under one common permit the fee was increased from $1,690 to $1,870 although for each facility in excess of three the fee was reduced from $590 to $533.

The fee for a retail market with a delicatessen or other food preparation area on the premises increased from $482 to $786 for one to 10 employees and from $699 to $1,022 for more than 10 employees, and for each facility in excess of three at the same location the fee decreased from $464 to $453.

Miscellaneous food facilities with at least 25 feet of food display area such as candy stores and concession stands, swap meet vendors without temporary event organizer status, catering equipment rentals, and retail food delivery activities to another location by a person other than an employee of the retail food facility are now subject to a permit fee of $147 rather than $134.

The permit fee for prepackaged retail markets, including markets which make ice and dispense beverages, was reduced from $299 to $188 for facilities with 10 or fewer employees and from $377 to $222 for sites with at least 11 employees.

The fee for an event permit with pre-packaged foods increased from $93 to $112 while an annual permit for pre-packaged foods increased from $250 to $302.

An event permit for unpackaged foods now costs $194 rather than $173 while an annual permit is now $587 instead of $497. A community event organizer event permit has increased from $294 to $291 while an annual permit for identical events at the same location has risen from $443 to $533.

The fee for a wholesale food warehouse under 20,000 square feet increased from $430 to $474 while the fee for a warehouse at least 20,000 square feet rose from $537 to $597.

The fee for a certified farmer's market increased from $340 to $379 and if a certified farmer's market event has temporary food facilities the fee increase is from $574 to $633. The county now also has fisherman's market events, which resulted in the creation of an inspection fee for those facilities which is $909.

Food facilities operated by non-profit organizations other than schools or licensed health care facilities experienced a fee increase from $250 to $279. The fee for school food facilities with a processing kitchen increased from $309 to $347 and if a satellite kitchen location is used the fee increased from $224 to $249.

The tattoo industry experienced an increase in permit fees from $279 to $339 for body art facilities and an annual registration fee increase from $95 to $115 for body art practitioners