2180 Milvia Street, Berkeley, CA 94704 Tel: 510.981.7000 TDD: 510.981-6903 Fax: 510. 981.7099 E-Mail: manager@ci.berkeley.ca.us Website: http://www.ci.berkeley.ca.us/manager

Office of the City Manager ACTION CALENDAR May 19, 2009

To: Honorable Mayor and Members of the City Council From: Phil Kamlarz, City Manager Submitted By: Fred Medrano, Health and Human Services Subject: Fees: Environmental Health Division RECOMMENDATION Conduct a public hearing and upon conclusion, adopt a Resolution establishing fees for FY 2010 for permit and inspection and other services provided by the City of Berkeley Environmental Health Division as required by the Berkeley Municipal Code, Section 13.40.090, Section 12.04.020, Section 12.04.030, Section 11.12.040, Section 11.28.040, Section 11.20.030, Section 9.80.040, and the California Health and Safety Code Section 114381, Section 116053, Section 119303; and rescinding Resolution No. 64,076-N.S. FISCAL IMPACTS OF RECOMMENDATION The fees currently charged for Environmental Health Services do not fully support the total program costs. The estimated revenues for FY 09 will cover approximately 81% of the budgeted expenditures for FY 09. The proposed fee increases for fiscal year 2010 will slightly reduce the impact of rising costs, but not eliminate the operating program deficit. In FY 2010, proposed fees are raised 2% to cover cost of living adjustment costs of fee-supported Environmental Health Programs. The proposal is expected to raise $56,273 in additional revenue (Attachment 2). The projected revenues and expenditures with no fee increases are also shown in Attachment 2. The fee structure and budget analysis reflect the proposed reduction of a vacant Office Specialist II position in the City Manager’s FY10 balancing measures The projected revenues and expenditures with the proposed fee increase (Attachments 2 and 4a through 4d) are as follows:

FY 2009 FY 2010 Proposed

Fee-based Revenues $654,223 $710,496 Budgeted Expenditures $810,403 $909,788 General Fund Subsidy ($156,180) ($199,292)

Fees: Environmental Health Division Action Calendar May 19, 2009

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If the proposed fee increase is approved, the projected deficit for FY 2010 will still increase from $156,180 to $199,292. General Fund support is necessary to cover the gap between revenue and expenditures to provide community health protection services. Fees to support expenses in the Environmental Health Division were last adjusted effective July 2008. By approving the proposed fee increases, regulated community entities and those requesting service will pay for a portion of the increase in FY 2010 operating expenses. The estimated revenues from fee increases have been included in the proposed budget for the Department of Health and Human Services, Environmental Health Division (Revenue Codes: 010-4302-345-2003, 010-4302-328-9001, 010-4302-353-4501, and 010-4302-341-7800). CURRENT SITUATION AND ITS EFFECT Due to recently signed labor agreements, labor costs for permit and inspection staff will increase in FY 2010. If action is not taken to adjust fees to absorb at least a portion of the increase in operating cost, the City’s General Fund will be directly impacted. BACKGROUND The Environmental Health Division administers several local state-mandated public health programs such as the Retail Food Safety Inspection Program, the Public Pool and Spa Inspection Program, the Tattoo and Body Piercing Registration program - State mandated programs that depend primarily upon fees for their operation. In addition, the Environmental Health Division administers or participates in several local programs required by the Berkeley Municipal Code such as the Vector Control Program, the Community Noise Ordinance, Styrofoam Ban, Abandoned Vehicle Abatement Program, Restaurant Storm-water Protection Inspection Program, Sewer Emergency Response Program and Tobacco Licensing Program (services funded by grants, assessment district proceeds, or City special revenue funds). The Division also provides other inspection services to protect public health, such as the waste tire enforcement grant program. At this time, we are requesting an increase in permit and inspection fees to cover increases in labor costs associated with day-to-day expenses. Adjusted annually, the permit and inspection fees are collected from each regulated facility in the City of Berkeley on an annual basis each calendar year. For FY 2010, the fees are proposed for increases of 2% to accommodate the increase in labor costs. RATIONALE FOR RECOMMENDATION Approval of the recommended action will adjust permit and inspection fees to cover a portion of the increased operating cost. If no action is taken, there will be an increased cost to the General Fund of $56,273 in FY 2010. CONTACT PERSON Manuel M. Ramirez, Manager of Environmental Health, (510) 981-5310

Fees: Environmental Health Division Action Calendar May 19, 2009

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Attachments: 1. Resolution 2. Schedule of Projected Environmental Health Program Costs 3. FY 2010 Program Cost Analysis 4. Projected Revenues FY 2010 5. Public Hearing Notice

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RESOLUTION NO. –N.S. ESTABLISHING FEES FOR REGULATIONS AND INSPECTIONS EFFECTIVE JULY 1, 2009, AS REQUIRED BY THE BERKELEY MUNICIPAL CODE AND THE CALIFORNIA HEALTH AND SANITATION CODE; AND RESCINDING RESOLUTION NO. 64,076-N.S. BE IT RESOLVED by the Council of the City of Berkeley, as follows: That the following fees effective July 1, 2009 are hereby established to cover the costs of regulations and inspections required by the Berkeley Municipal Code and the California Health and Sanitation Code, as follows:

FIXED UNITS ANNUAL FEES

ESTABLISHMENT Sq. Ft 0-1000

Sq. Ft. 1001-2500

Sq. Ft. 2501-5000

Sq. Ft. 5001-7500

Sq. Ft. Over 7500

Plan Check

Bakery $616 $761 $1024 $1278 $1520 $638 Bed and Breakfast $378 $638 Boarding House $378 $638 Cocktail Lounge $405 $568 $799 $1073 $1326 $590 Confectionery $215 $318 Food Market $311 $454 $711 $970 $1232 $590 Food Processing/Catering $454 $616 $857 $1119 $1374 $638 In Plant or Employee Food Establishment

$355 $638

Licensed Health Care $616 $638 Meat Market $355 $519 $761 $1024 $1278 $638 Meat and Food Market $454 $616 $857 $1119 $1374 $638 Mobile Food Prep. Unit $616 $590 Restaurants $616 $761 $1024 $1278 $1520 $638 Temporary Event $478 N/A Vehicle (MFF) $355 $590 Vehicle (MFF) Pre-Packaged

$ 39 N/A

Vending Machines $ 46 N/A Public Swimming Pool $616 $1276 Retail Tobacco License $436 (Less $49 to Finance Department)

2

DEMAND SERVICES FEES

Amplified Sound Permit $ 39 Amplified Sound Permit Variance $159 Enforcing Noise Ordinance Permits $159 Sound Survey (2-hour minimum) $318 (2-hour min.) *Accelerated Plan Check of Food Facilities $318 (2-hour min.) Food Facility Consultation $159 Follow-up Inspections $159 Hourly Rate $159 Inspection of Food Service at Fundraisers $159 Inspection/Processing of Temp. Special Event Food Operation $159 Inspection/Processing of Temp. Special Event Pre-packaged $159 Temporary Special Event - Event Coordinator $167 Promotional Sampling Pre-Packaged Non PHF $ 39 Demonstration Sampling Unpackaged PHF $ 85 Investigation of Food Facility (Work or Operation without Permit) $159 New/Change in Ownership $159 Plan Check Remodel $159 hourly rate Reopening of Food Facility Following Non-Compliance Closure $159 Non-Payment of Health Permit Fees Past two months (H&SC 113920)

Treble Fees

Food Handler Training (Non-Certificate) $159 Food Handler Training Certificate Program $157 Annual Permit, Tattoo, Body Piercing and Permanent Cosmetic Facility

$320

Tattoo, Piercing, and Permanent Cosmetic Registration $ 39 Valid Smoking and Noise Complaints $159 Property Inspection Fee $159 Administrative Hearing (many will be Property Liens as far as collections)

$318(2-hour min.)

Compost Sanitary Requirements $159 Demolition Site Inspection $159 Potable Water Sampling $159 *Plan review within 10 working days at 100% over standard cost BE IT FURTHER RESOLVED, that this Resolution shall be in full force and effect on and after July 1, 2009. BE IT FURTHER RESOLVED, that Resolution No. 64,076-N.S. is hereby rescinded.

NOTICE OF PUBLIC HEARING - BERKELEY CITY COUNCIL HEALTH AND SANITATION PERMIT AND FEE INCREASES

NOTICE IS HEREBY GIVEN THAT ON TUESDAY, MAY 19, 2009 AT 7:00 P.M., THE BERKELEY CITY COUNCIL WILL CONDUCT A PUBLIC HEARING IN COUNCIL CHAMBERS AT 2134 MARTIN LUTHER KING JR. WAY ADDRESSING THE FOLLOWING: The City of Berkeley Department of Health and Human Services, Environmental Health Division, is proposing a 2% increase for Fiscal Year 2010 in Health and Sanitation Permits and Fees for Fixed Units and Demand Services, to offset labor cost and non-personnel costs associated with day to day operations. Fees in the Environmental Health Division were last adjusted in July 2009. For further information please see attached fee schedule for Fiscal Year 2010 or call Manuel M. Ramirez, Manager of Environmental Health at (510) 981-5310. Written comments should be mailed or delivered directly to the City Clerk, 2180 Milvia Street, Berkeley, CA 94704, in order to ensure delivery to all Councilmembers and inclusion in the agenda packet. Comments received no later than Monday, May 11, 2009 at 5:00 P.M. will be included in Council agenda packets. Comments received thereafter will be submitted to Council as supplemental communications at the meeting. For further information, call Deanna Despain, Deputy City Clerk, (510) 981-6900. FAX: (510) 981-6901. TDD: (510) 981-6903 If you challenge the above in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City of Berkeley at, or prior to, the public hearing. Background information concerning this proposal will be available at the City Clerk Department and posted on the City of Berkeley webpage at least 10 days prior to the public hearing.

Attachment 5

Environmental Health - Comparison of FY 2009 and FY 2010 Fees FIXED UNITS

Increase of 2 % in each category

0-1000 Sq. Ft 1001-2500 Sq. Ft. 2501-5000 Sq. Ft. 5001-7500 Sq. Ft. Over 7500 Sq. Ft. Plan Check TYPE OF

ESTABLISHMENT FY 2009 (current)

FY 2010 (proposed)

FY 2009 (current)

FY 2010 (proposed)

FY 2009 (current)

FY 2010 (proposed)

FY 2009 (current)

FY 2010 (proposed)

FY 2009 (current)

FY 2010 (proposed)

FY 2009 (current)

FY 2010 (proposed)

Bakery 604 616 746 761 1,004 1,024 1,253 1,278 1,490 1,520 625 638

Bed and Breakfast 371 378 625 638

Boarding House 371 378 625 638

Cocktail Lounge 397 405 557 568 783 799 1,052 1,073 1,300 1,326 578 590

Confectionery 211 215 312 318

Food Market 305 311 445 454 697 711 951 970 1,208 1,232 578 590

Food Processing/Catering

445 454 604 616 840 857 1,097 1,119 1,347 1,374 625 638

In Plant or Employee Food Establishment

348 355 625 638

Licensed Health Care 604 616 625 638

Meat Market 348 355 509 519 746 761 1,004 1,024 1,253 1,278 625 638

Meat and Food Market

445 454 604 616 840 857 1,097 1,119 1,347 1,274 625 638

Mobile Food Prep. Unit

604 616 578 590

Restaurants 604 616 746 761 1,004 1,024 1,253 1,278 1,490 1,520 625 638

Temporary Event 469 478 N/A N/A

Vehicle (MFF) 348 355 578 Vehicle (MFF) Pre-Packaged

38 39 N/A N/A

Vending Machines 45 46 N/A N/A

Public Swimming Pool

604 616 1,251 1,276

Retail Tobacco License (Less $49 to Finance Department in FY 10, $46 in FY 09)

427 436

Environmental Health - Comparison of FY 2009 and FY 2010 Fees DEMAND SERVICES

Increase of 2 % in each category

DEMAND SERVICES FY 2009 (current)

FY 2010 (proposed)

Amplified Sound Permit 38 39

Amplified Sound Permit Variance 156 159

Enforcing Noise Ordinance Permits 156 159

Sound Survey (2-hour minimum) 312 318

*Accelerated Plan Check of Food Facilities (2-hour minimum) 312 318

Food Facility Consultation 156 159

Follow-up Inspections 156 159

Hourly Rate 156 159

Inspection of Food Service at Fundraisers 156 159

Inspection and Processing of Temporary Special Event Food Operation 156 159

Inspection/Processing of Temp. Special Event Pre-packaged 38 39

Temporary Special Event - Event Coordinator 156 159

Promotional Sampling Pre-Packaged Non PHF 38 39

Investigation of Food Facility (Work or Operation without Permit) 156 159

New/Change in Ownership 156 159 Plan Check Remodel (hourly rate) 156 159 Reopening of Food Facility Following Non-Compliance Closure 156 159 Demonstration Sampling Unpackaged PHF 85 Non-Payment of Health Permit Fees Past two months (H&SC 113920) Treble Fees Treble Fees Food Handler Training (Non-Certificate) 156 159 Food Handler Training Certificate Program 154 157 Annual Permit, Tattoo, Body Piercing and Permanent Cosmetic Facility 314 320 Tattoo, Piercing, and Permanent Cosmetic Registration 38 39 Valid Smoking and Noise Complaints 156 159 Property Inspection Fee 156 159 Administrative Hearing (many will be Property Liens as far as collections) (2-hour minimum)

312 318

Compost Sanitary Requirements 156 159 Demolition Site Inspection 156 159 Potable Water Sampling 156 159 *Plan review within 10 working days at 100% over standard cost