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DEH fees revised for cottage food operations, small drinking water systems

Revised county Department of Environmental Health fees for small drinking water systems and cottage food operations were approved by the San Diego County Board of Supervisors.

The first reading and introduction of the fee adjustments passed on a 5-0 Board of Supervisors vote April 25. A 4-0 vote May 3 with Bill Horn absent approved the second reading and adoption for the new fees which will be effective July 1.

"I feel we have reached an outcome that allows us to be full cost recovery without hurting the industry we want to promote," Horn said.

The county had not increased Department of Environmental Health fees since 2010. During the ensuing seven years additional state mandates increased the county's costs, and earlier this year DEH sought to adjust the fees based on the county's policy of full cost recovery.

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.

A March 15 hearing drew concerns from the cottage food industry and from small water systems operators, so those fees were referred back to county staff while the other DEH fee increases were implemented by 5-0 Board of Supervisors votes March 15 to approve the first reading and introduction and March 22 to approve the second reading and adoption.

The initially proposed increase for a state small water system serving between five and 14 connections and fewer than 25 people was from $1,149 to $1,331 with the fee for a treated state small water system slated to rise from $1,572 to $1,851.

The supervisors' April 25 and May 3 actions approved an annual 2.5 percent increase from the 2010 amount until full cost recovery is achieved; that creates 2017-18 fees of $1,178 for an untreated system and $1,611 for a treated system.

A 2.5 percent annual increase will also be the case for transient non-community (more than 25 people and more than 60 days a year; examples include campgrounds, parks, restaurants, and churches), non-transient non-community (more than 25 people and more than six months a year; examples include schools and office buildings), and community small drinking water systems (15 to 199 connections, examples include small town sites and mobile home parks).

The 2.5 percent increase will raise the cost for next year from $1,768 to $1,812 for untreated transient non-community systems, from $2,245 to $2,301 for treated transient non-community systems, from $2,234 to $2,290 for untreated non-transient non-community systems, from $2,622 to $2,688 for treated transient non-community systems, from $2,516 to $2,579 for untreated community systems, and from $2,938 to $3,011 for treated community systems.

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 no label review is required for the permit renewal.

The revised increase does not change the increase in the DEH hourly rate, based on half-hour increments, from $142 to $153. The initial Class A new permit fee will increase to $185 and will include review of up to 10 product labels while the renewal fee will still be lowered at $74. The Class B initial permit fee will be $137 and will cover review of up to 10 labels as well as the initial inspection while the annual renewal fee will be $290 for 2017-18.

"I want to encourage the growth of the cottage food industry in San Diego County," Horn said.

During the March 15 hearing the county supervisors noted that the length of time between fee adjustments led to the larger increase, so more frequent review of the county's costs is expected and fees could increase by a smaller amount in the future.

 

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