To: Board of Supervisors
From: Dr. Ori Tzvieli, Interim Health Services Director
Report Title: Hearing to Consider Adoption of Revised Fees for the Contra Costa County Health Services Department, Environmental Health Division
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
1. RECEIVE staff presentation regarding the adjustment of regulatory fees charged by the Contra Costa County Health Services Department, Environmental Health Division (“EH Division”);
2. OPEN a public hearing on the proposed Resolution, which would adjust regulatory fees charged by the EH Division, effective June 24, 2025; RECEIVE and CONSIDER all oral and written testimony, public comments, and any objections to the Resolution; and CLOSE the hearing;
3. CONSIDER staff’s presentation, all testimony, public comments, objections, the attached “Staff Report on the Determination and Apportionment of Certain Environmental Health Division Fees,” dated June 24, 2025, (Attachment 1), the NBS “Contra Costa County Health Services, Environmental Health Division Fee Study,” dated June 6, 2025, (Attachment 2), and all other testimony and materials presented to the Board prior to the close of the public hearing;
4. ADOPT the Resolution adjusting regulatory fees charged by the EH Division set forth in Attachment A to the Resolution, effective June 24, 2025; and
5. DIRECT the Interim Health Services Director, or designee, to reduce permit fees required to be paid by farmer’s markets to those fee amounts in effect as of June 23, 2025, not to exceed $50,000 in any fiscal year and subject to funding availability in that fiscal year, in consideration for the farmer’s markets’ agreement to allow the Contra Costa Health Plan to perform marketing activities at the farmer’s markets during the term of the permit.
FISCAL IMPACT:
Revenue from the adjusted Environmental Health Division Fees will recover the division’s reasonable costs to administer its various regulatory programs, including staff costs and overhead expenses connected with those programs. There will be no impact to the General Fund.
BACKGROUND:
The Environmental Health Division (“EH Division”) of the Health Services Department administers various regulatory programs including but not limited to the Body Art & Permanent Cosmetics, Land Use, Medical Waste Management, Recreational Health, Retail Food, Small Water Systems, and Solid Waste Management programs. Most activities of the EH Division are funded through regulatory permit and penalty fees. The “Staff Report on the Determination and Apportionment of Certain Environmental Health Division Fees,” dated June 24, 2025 ("Apportionment Report"), attached as Attachment 1, describes various EH Division programs, legal authorities for and standards applicable to the apportionment of the EH Division Fees, whereas the process used to set the regulatory fee amounts and the manner of apportionment was primarily conducted by NBS with oversight and data provided by the EH Division. This collaboration resulted in the NBS “Contra Costa County Health Services, Environmental Health Division Fee Study,” dated June 6, 2025, (“Fee Study”) attached as Attachment 2. The Resolution to adjust EH Division fees as set forth in the Fee Schedule attached thereto as Attachment A.
Health Safety Code Section 101325, Contra Costa County Ordinance Code section 413-3.204, and other applicable laws, regulations, and ordinances, authorize the County to adopt fees to recover the EH Division’s reasonable costs to perform its regulatory activities. The Division’s operations and expenses connected with its regulatory activities are financed almost entirely by revenues from fees imposed by the EH Division.
Fees charged by the EH Division were last reviewed and adopted by the Board of Supervisors in Resolution No. 2019/521. Since that time, the EH Division’s costs to administer its various regulatory programs have increased. These increased costs include increases in personnel and overhead costs, as well as other expenses. Therefore, revenues from current fees are insufficient to recover the EH Division’s reasonable costs to administer its regulatory programs.
The purpose of the Fee Study and Apportionment Report is to ensure that fees charged by the EH Division are calculated to recover the reasonable costs of the Division’s regulatory activities for issuing licenses and permits, performing investigations, inspections, and audits connected with the Division’s regulatory programs; and to ensure that the manner in which the EH Division’s costs are allocated to each fee payor bears a fair and reasonable relationship to each payor’s burdens on, or benefits received from, the EH Division’s regulatory activities. The main component of each regulatory permit fee set forth in the Fee Study is based on the time associated with administering each regulated activity and the anticipated frequency of activities. The regulatory fees also recover administrative and overhead expenses connected with the regulatory activities. The Fee Schedules attached as Attachment A to the Resolution include a variety of miscellaneous service fees including, but not limited to, change of ownership and reinspection fees charged by the hour with a one hour minimum for various services that the EHD provides to regulated businesses. All fees are based on a fully burdened hourly rate of $376 as determined by NBS using methodology outlined in the Fee Study.
The Fee Study determined that, while certain fees charged by the EH Division will need to increase to satisfy the above requirements, other fees charged by the EH Division will decrease. Additionally, minor modifications are being made to how fees are calculated in certain programs, including but not limited to the Certified Farmers Markets, Temporary Food Events, Mobile Food Facilities, and Schools programs. At this time, staff is not recommending any changes to the Solid Waste Tonnage Fees.
As explained more fully in the Fee Study and Apportionment Report, EH Division staff have determined that the fees in the Fee Schedules (1) are calculated to recover the reasonable regulatory costs to the County for issuing licenses and permits, performing investigations, inspections, and audits connected with those regulatory activities performed by the EH Division, (2) are no more than necessary to recover the reasonable costs of EH Division’s regulatory activities, and (3) the manner in which those costs are allocated to payors of the fees bears a fair and reasonable relationship to each payor’s burdens on, and benefits received from, the EH Division’s regulatory activities.
In exchange for providing Contra Costa Health Plan (CCHP) with a designated booth space at each farmer’s market event, the EH Division will waive the permit fee increases associated with the farmer’s market permits, including both Certified Agricultural vendors and non-agricultural vendors. This essentially means that farmer’s markets allowing advertising by CCHP will not see any increase in their current fees. An amount not to exceed $50,000 has been allocated annually to fund these fee waivers for the following permit types: Cert-Ag. Vendor-Farmers Market (w/agreement), and Non-Ag. Vendor-Farmers Market (w/agreement). These waived fee increases are reflected in the “Reduced Fees w/Agreement” column in the table below. If the total value of requested fee waivers exceeds the allocated amount, the EH Division will seek authorization to increase the annual allocation, to the extent funding is available. The fee waiver agreement will be incorporated into the permit application process and will serve as a formal agreement between the market operator and CCHP to provide booth space for marketing activities during the permit term in exchange for the fee credit. Markets that do not agree to the waiver conditions will be charged the full permit fee, as shown in the Fee Schedule recommended for adoption (Attachment A).
|
Permit Type |
Unit |
Capacity |
Current Fees |
Attachment A Proposed Fees |
Reduced Fees w/Agreement |
|
|
|
|
|
|
|
|
|
Temporary Food - Certified Farmers Markets |
|
|
Cert-Ag. Vendor-Farmers Market (w/agreement) |
per booth |
1 - 25 |
$597 |
$772 |
$597 |
|
|
Cert-Ag. Vendor-Farmers Market (w/agreement) |
per booth |
26 - 45 |
$796 |
$1,054 |
$796 |
|
|
Cert-Ag. Vendor-Farmers Market (w/agreement) |
per booth |
46+ |
$995 |
$1,223 |
$995 |
|
|
Non-Ag. Food Vendor - Farmers Market (w/agreement) |
per booth |
1 - 5 |
$478 |
$547 |
$478 |
|
|
Non-Ag. Food Vendor - Farmers Market (w/agreement) |
per booth |
6 - 10 |
$600 |
$773 |
$600 |
|
|
Non-Ag. Food Vendor - Farmers Market (w/agreement) |
per booth |
11+ |
$839 |
$961 |
$839 |
|
CCHP proposes to establish a regular presence at local farmer’s markets throughout Contra Costa County as a way to increase community engagement, promotion health education, and strengthen partnership with Contra Costa Health and other local stakeholders. By participating in farmer’s markets, CCHP hopes to:
• Provide health education and preventative care information to members and the public
• Offer basic health screenings and wellness resources
• Support resource navigation and connect individuals to services
• Enhance CCHP’s visibility and reputation within the community
• Foster direct, face-to-face engagement with members in a welcoming environment
This initiative aligns with CCHP’s mission to support the health and well-being of our community and creates new opportunities for meaningful, grassroots outreach. In the unlikely event that funding no longer remains available in a future fiscal year, full fee amounts would be charged to all applicants, and staff would advise applicants that a fee credit is not available in that fiscal year.
EH Division staff recommend that the Board adopt the Resolution to adopt the Fee Schedules, effective June 24, 2025.
CONSEQUENCE OF NEGATIVE ACTION:
If the Environmental Health Division’s current fee schedule remains in place, regulated businesses, collectively, will pay less than what is required to administer the division’s regulatory programs, resulting in a net financial loss for the division. Consequently, the division would not recover its reasonable costs of administering its regulatory programs. The division also would not recover fees for new programs the division administers.
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
and for Special Districts, Agencies and Authorities Governed by the Board
body
IN THE MATTER OF ESTABLISHING AND ADJUSTING FEES CHARGED BY THE ENVIRONMENTAL HEALTH DIVISION OF THE CONTRA COSTA HEALTH SERVICES DEPARTMENT
The Contra Costa County Board of Supervisors FINDS, as follows:
A. Health Safety Code section 101325, Contra Costa County Ordinance Code section 413-3.204, and other applicable laws, regulations, and ordinances, authorize the County to adopt fees to recover the Health Service Department, Environmental Health Division’s (“EH Division”) costs to administer its regulatory programs and activities.
B. Fees charged by the EH Division are intended to recover the reasonable regulatory costs to the County for issuing licenses and permits, performing investigations, inspections, and audits connected with regulatory programs administered by the EH Division. The amounts of the EH Division’s fees are calculated to be no more than necessary to cover the reasonable costs of the EH Division’s regulatory activities, and the manner in which those costs are allocated to each fee payor bears a fair and reasonable relationship to each payor’s burdens on, or benefits received from, the EH Division’s regulatory activities. (Cal. Const., art. XIII C, § 1(e).)
C. The EH Division’s operations and expenses connected with its regulatory activities are financed almost entirely by revenues from fees imposed by the EH Division. Fees charged by the EH Division were last reviewed and adopted by the Board of Supervisors in Resolution No. 2019/521. Since that time, the EH Division’s costs to administer its various regulatory programs have increased. These increased costs include increases in personnel and overhead costs, as well as other expenses. Therefore, revenues from current fees are insufficient to recover the EH Division’s reasonable costs to administer its regulatory programs. The fees need to be adjusted to ensure that they continue to bear a fair and reasonable relationship to the fee payors’ burdens on or benefits from the regulatory programs administered by the EH Division, and to ensure the EH Division charges fees that recover the reasonable costs of administering the EH Division’s regulatory programs.
D. In 2021, the Division contracted with independent financial consulting firm, NBS, to conduct a review of time accounting data to develop fees that are based on a fully-burdened hourly rates aligned with the Division’s regulatory activities, as more particularly described in the NBS Fee Study, dated June 6, 2025 (“Fee Study”) and the “Staff Report on the Determination and Apportionment of Certain Environmental Health Division Fees,” dated June 24, 2025 (“Apportionment Report”), both of which are attached to the Staff Report in support of this Resolution. The Fee Study and Apportionment Report determined that certain regulatory fees for programs require adjustment to ensure the EH Division’s fees continue to bear a fair and reasonable relationship between the fee payors’ burdens on or benefits from the regulatory activities for which the fees are charged, and also to ensure the EH Division is able to recover its reasonable costs of performing its regulatory activities.
E. In addition to adjusting current fee categories, new fee categories have been added to fund the EH Division’s existing Recreational Health, Mobile Food Facility, School, and Temporary Food Facility programs. Fees for these new fee categories were calculated to ensure they recover the reasonable regulatory costs of these programs, and to ensure the fees bear a fair and reasonable relationship to each payor’s burdens on, or benefits received from, these regulatory programs.
F. Based on the Fee Study and Apportionment Report, the Health Services Department, Environmental Health Division recommends that the Board of Supervisors adopt the fee tables attached as Attachment A to this resolution (“Fee Schedule”) and incorporated herein, to establish fees to be charged for the EH Division’s regulatory activities. The fees set forth in the Fee Schedule are calculated to recover the reasonable regulatory costs to the County for issuing licenses and permits, performing investigations, inspections, and audits connected with those regulatory activities performed by the EH Division. Additionally, based on the Fee Study and Apportionment Report, the fees set forth in the Fee Schedule are no more than necessary to recover the reasonable costs of EH Division’s activities, and the manner in which those costs are allocated to payors of the fees bears a fair and reasonable relationship to each payor’s burdens on, or benefits received from, the EH Division’s activities.
G. Because this is the first EH Division fee update in nearly six years, EH Division staff performed outreach activities, including providing a 60-day public comment period and holding a public workshop, to educate fee payors, and to receive comments on the proposed fee update.
H. In accordance with Government Code section 66018, the EH Division caused a hearing notice to be published twice in the Contra Costa Times, on June 13, 2025, and June 20, 2025, to give notice of the June 24, 2025 hearing on the adoption of the Fee Schedule.
I. On June 24, 2025, the Board of Supervisors held a noticed public hearing on the EH Division’s proposed fee update. The Board has considered all comments, testimony, and objections submitted verbally or in writing before the close of the public hearing. The Board of Supervisors has considered the Fee Study, the Apportionment Report, the Fee Schedule, the Staff Report, staff presentation, public comments and testimony, any objections to the fees, and all other information and materials presented to the Board before the close of the public hearing.
NOW, THEREFORE, the Board of Supervisors of Contra Costa County hereby RESOLVES, as follows:
end
1. The Board FINDS that the fees set forth in the Fee Schedule, attached hereto as Attachment A, (a) are calculated to recover the reasonable regulatory costs to the EH Division for issuing licenses and permits, performing investigations, inspections, and audits in connection with the regulatory programs administered by the Division, and (b) each of the fees bears a fair and reasonable relationship to each payor’s burdens on and benefits from the regulatory programs administered by the EH Division. The Board further FINDS that the fees will recover the EH Division’s reasonable costs to administer its regulatory programs.
2. The Board ADOPTS the Fee Schedule, attached hereto as Attachment A, as the Fee Schedule for the EH Division. The Fee Schedule attached hereto as Attachment A shall be effective as of June 24, 2025.
3. Authorize the Health Services Director, or designee, to collect delinquent accounts, including penalties and the County’s administrative, legal, and collection costs, in accordance with Ordinance Code section 413-3.1206, and any other applicable ordinances and laws.
4. Direct the Health Services Director, or designee, to reduce permit fees required to be paid by farmer’s markets to those fee amounts in effect as of June 23, 2025, not to exceed $50,000 in any fiscal year and subject to funding availability in that fiscal year, in consideration for the farmer’s markets’ agreement to allow the Contra Costa Health Plan to perform marketing activities at the farmer’s markets during the term of the permit.
5. This Resolution is effective immediately upon its adoption on June 24, 2025. This Resolution supersedes and replaces Resolution No. 2019/521 in its entirety.