This item presents the proposed Master Fee Resolution for fiscal year 2018-19, incorporating fee changes for the Agriculture, Community Services, County Counsel, General Services and Library departments.
The Master Fee Resolution, first adopted by the Board of Supervisors in 1991, includes an estimated 1,300 fees and charges for services provided by County departments. The use of a single resolution and integrated fee schedule provides for a systematic review of County fees, and allows for necessary adjustments to reflect changing service delivery costs. The Master Fee Schedule was last updated on December 12, 2017. The sections below describe in further detail the proposed fee changes in the 2018-19 Master Fee Resolution.
Agriculture
Each year the Agriculture Department issues Phytosanitary Certificates for commodities to enter both domestic and foreign commerce. Through inspection of proposed shipment lots, these certificates attest to the freedom of pathogens, weeds and insects, which may be detrimental to agriculture. Certificates for shipments within the United States are issued under the authority of the California Department of Food and Agriculture (CDFA) and foreign shipments under a cooperative agreement with the United States Department of Agriculture (USDA).
The proposed fee increase is necessary to recover County costs associated with issuing Phytosanitary Certificates based on the revised department hourly rate. Analysis indicates that the Department spends $46.20 for each certificate issues, while the current fee is $30.00 per certificate. The Department proposes to increase the fee to $45.00 per certificate. The increase in revenue will vary from year to year based on exports (2016-17 issuance of 7214 certificates would equate to $108,210 in additional revenue to recover costs). The last increase in the fee for Phytosanitary Certificates was 12/15/2015.
In addition, the Agriculture Department is proposing to increase a variety of other fees that are charged on an hourly basis due to increasing salary and benefit costs, including pension and OPEB charges. In total, 14 fees are proposed to be increased from $94/hour to $118/hour due to a revised calculation in the department’s hourly rate performed by the Department of Financial Services. The current fees are based on data from 2014-15, and no longer sufficient to fully recover the cost of providing services.
It is estimated that the proposed fee increases will generate an additional $117,077 in General Fund revenue.
Community Services
Planning and Building/Public Works
In 2017, the Department of Community Services contracted with MGT Consulting LLC to complete a comprehensive cost and user fee study for the services provided in the Planning and Building Division and the Public Works Division. Although fees in these Divisions have changed in years past, it is unclear if there has ever been an independent third party review of costs of services and an in-depth evaluation of fees.
The selected consultant, MGT Consulting LLC, met with various staff to review and discuss the time and resources involved in processing various permits, reviews, and documents. Once this data was compiled, a cost recovery formula was utilized to determine the total cost of services for which various fees are charged. Typically, a 100% cost recovery fee is proposed to ensure that the County can continue to operate in a cost effective manner. In certain cases, fees are proposed in amounts that are less than actual cost to encourage individuals to obtain the proper permits or inspections. One example of this is a permit fee for installing a new water heater in a home. If the fee was proposed at full cost then it would likely discourage the public from obtaining permits and inspection services. Improper installation of a hot water heater could result in serious health and safety risks, especially for a gas water heater. Therefore, a lower fee serves a public benefit. The fees proposed to be collected at less than 100% are shown in the attached Cost Recovery Study Report of Findings (Attachment C).
As a part of MGT’s study, a comparison analysis was conducted with neighboring counties in relation to a sampling of the common fees charged. Yolo County’s fees were comparable with the researched counties on average. (Attachment D)
Some of the fees listed in the Summary of Proposed Fee Changes (Attachment A, Exhibit 1) reflect large percentage increases. Most of these large increases are related to deposit fees. With these fees, applicants pay a deposit but are charged based on actual cost. Applicants will be charged more if actual cost exceed the deposit, or refunded the difference if costs are less. As a result, there is no real change in the cost to applicants beyond the hourly rate increase.
Other large increases for flat rate fees are due to fees that have not been adjusted in many years, and for which no comprehensive third-party review has been conducted in the recent past. In addition, after MGT’s review, it has been determined that some fees that are currently charged as an hourly rate would be better served as a flat rate fee. Other large increases for hourly rates are due to changes in State requirements, such as the solar panels and photovoltaic systems fees being based on valuation. Several fees are also proposed to be deleted from the Master Fee list, as their relevancy has been diminished due to changes in technology, or combined into other fees such as separate fees for plumbing, electrical that are proposed to be combined into the valuation building permit fee. For the fees with larger than normal increases, staff developed a three-year ramp up plan (Attachment E) in order to gradually ease customers into the full cost-recovery fee.
California Government Code, Section 66015 establishes maximum amount of $450.00 plus $15 per kW for each kilowatt above 15 kW for all fees associated with issuance of a building permit for the installation of a residential solar energy system unless the local jurisdiction, as part of a written finding and an adopted resolution or ordinance, provides substantial evidence of the reasonable cost to issue the permit. The cost study completed by MGT Consulting LLC provides substantial evidence that the total cost of permitting and inspection of a residential solar system is $607.98 plus a state mandated Seismic Fee of $6.19.
The County of Yolo Administrative Policies and Procedures Manual, Policy on Cost Recovery and Fees establishes that all departments shall seek to recover the full cost of all services they provide. However, the Board of Supervisors has authority to waive or reduce fees to less than the full cost in certain circumstances. A Resolution in compliance with Government Code Section 66015 is provided in Attachment B which would allow the Department of Community Services to charge fees for residential solar energy systems at the proposed full-cost amounts. Should the Board of Supervisors want to consider a full or partial fee waiver, the balance between the adopted fee and the full cost would need to be allocated from the General Fund to the Department of Community Services. Based on the average number of permit requests for residential solar each year, a partial fee waiver to reduce the fee to $450 would result in a General Fund impact of approximately $19,700 each year. Should the Board want to establish a full or partial fee waiver, the Board would need to direct staff to return to the Board for this purpose.
Altogether, the department estimates that the proposed fee changes will result in an annual revenue increase of $371,380, of which $350,479 is attributable to the General Fund and $20,901 will be attributable to the Road Fund.
The Planning and Building, and Public Works divisions notified customers of the proposed fee changes with email distribution lists to customers who have used our services over the last 18 months, as well posted printed copies at the front desk for potential customers. To ensure customer approval of the fee increases, the proposed fee changes were also shared at an Industry Workgroup meeting where the information was presented and well received. All participants at the meeting were receptive to raising the fees to cover costs.
Integrated Waste Management
The Integrated Waste Management Division operates as a self-supporting enterprise fund and depends on revenue from disposal and recycling services and permit fees to fund most of its programs, including operation of the Yolo County Central Landfill (landfill) and the Esparto Convenience Center (transfer station). Due to increased operating costs, the fees for the following materials are insufficient to cover the costs of services provided:
- Municipal solid waste (MSW)
- Bulky waste materials such as Styrofoam and tree stumps
- Food waste and mixed green waste/food waste
- Some Liquid wastes
- Tires
- Some materials requiring special handling (cannery waste, grits, rags, sewage, sludge, etc.).
However, for other reasons described in the following paragraphs, the division proposes to decrease fees for Construction and Demolition Material and Metal Appliances (Washers, Dryers, Refrigerators, ovens, etc.).
The division proposes to increase fees for commercial loads of municipal solid waste (trash) from the current $54 per ton to $60 per ton (11.1% increase). This increased revenue will help offset additional costs associated with new regulatory requirements on the construction of future landfill modules. In addition, the division proposes to lower the construction and demolition rate from $69.50 per ton to $57 per ton (18% decrease) and maintain the green waste rate at $54 per ton to promote diversion of waste and ensure sufficient landfill capacity for future operations.
Similar to loads of commercial waste, the division is proposing increases in other fees associated disposal items, including bulky waste, Styrofoam and cannery waste (all 11.1% increase), household furnishings (20% increase), and grits, rags and sewage sludge (5.5% increase). Again, these fee increases will be utilized to offset regulatory changes for construction of new landfill modules, while keeping the rates for construction and demolition and recycling at levels to ensure the necessary capacity for commercial waste.
The tip fees for food waste and mixed green waste/food waste (for those cities offering residents the option to place food waste in their green waste carts) are proposed to increase from the current $54 per ton to $62 per ton, a 14.8% increase. This increase in revenue of $68,000 will be used to help fund the construction of the landfills composting facilities which are necessary to handle this type of material.
High solids liquid waste loads are proposed to increase from $57 per ton to $58 per ton, a 1.8% percent increase. This increase is necessary to cover the cost of handling this material.
Regulations prevent whole tires from being disposed in the landfill and the cost for recycling them has increased significantly this last year. The bulk tire rate is proposed to increase from $115 per ton to $150 per ton (30.4% increase). Individual auto and truck tires are increasing $1 each to $3 per tire and $5 per tire respectively. Large tractor tires are increasing from $12 each to $15 each. The additional revenue associated with these increases are necessary to cover the increased cost of recycling. The fees for tires accepted at the Esparto Convenience Center are being raised to match the landfill fees.
Over the last year, scrap metal value has continued to increase allowing a further reduction in the per appliance recycling fees. The recycling fees for appliances (washers, refrigerators, dryers, ovens, etc.) are proposed to reduce from the current $8 each to $5 each (a 37.5% reduction). The fees at the Esparto Convenience Center are also being lowered to match the landfill fees.
On April 24, 2018 the Board approved an amendment with the County’s electronic waste recycler, ECS Refining, Inc. which lowered the cost to properly recycle electronic waste. Because of this reduction in cost, the division is proposing a proportional reduction in the fees charged to businesses for accepting their electronic waste. Fee reductions range from approximately 12% up to a high of 25%.
The C&D Diversion Administrative Fee has been increased from $150 to $168 to account for the increase in salary and benefits cost.
Overall, the proposed landfill fees will increase revenue this next fiscal year by approximately $68,500 and represents less than 0.5 percent of the overall sanitation enterprise budget. Adoption of the proposed fees will allow the division to:
- Increase the tip fees as appropriate to fully recover costs for these services;
- Lower and/or maintain fees for several recycling programs which will increase overall landfill diversion and recycling rates; and
- Decrease fees for appliances to encourage proper recycling or disposal of these materials.
County Counsel
County Counsel is proposing to increase the rate that is charged for legal services from $143.85/hr to $190/hr. This increase is based upon a revised calculation of the hourly rate in the County Counsel’s Office performed by the Department of Financial Services using actual data from 2016-17. The existing hourly rate was last increased in 2014 based on data from 2012-13, and is no longer sufficient to fully recover the cost of providing legal services. It is estimated that the proposed increase in the legal services fee will result in a General Fund revenue increase of $209,000 in 2018-19.
General Services
In the Parks Sustainability Study, approved by the Board in June 2016, the General Services Department was directed to both provide increased automated services to Parks customers and improve revenue collection throughout the parks system. Automated pay stations have been placed at Knights Landing Boat Launch and Elkhorn Regional Park, allowing visitors to these parks to pay fees with cash or credit card. The Department currently sells an annual boat launch pass which can be used at these locations. The pass is antiquated: a laminated paper dash placard. When annual passes are now purchased, a credit card size pass will be issued to the customer, to be used at the automated pay station. This allows the customer to receive a receipt of payment that looks similar to other fee receipts, enabling easier enforcement of parking fees by the Sheriff’s Department.
The proposed $5.00 fee is merely passing the initial department expense for each credit-card sized pass back to the customer. Assuming the card is not lost or stolen, this is a one-time fee that the customer will pay. The card can be reauthorized annually with no need for future replacement.
In the event the customer’s credit-card sized pass is lost or stolen, a new card can be issued to the customer for a proposed $7.50 fee. Of this amount, $5.00 is reimbursement to the department for the initial expense to purchase a supply of passes. The remaining $2.50 is an administrative cost to deactivate the lost or stolen card and update the customer information with the new card data. It is estimated that these fees will generate $425 annually for the General Fund.
Library
Certain library branches have photocopiers available for public use, at a charge of $0.50/page for color copies and $0.20/page for black and white copies. The charge for color copies had been left off the Master Fee schedule in error, and the charge for black and white copies is erroneously listed as $0.25/page instead of $0.20/page. The proposed fee changes are to correctly reflect the charge for copies on the Master Fee schedule. |