HomeMy WebLinkAboutAgenda - 01-23-2007-5hORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: January 23, 2007
Action Agenda
Item No. 5 h
SUBJECT: Resolution in Support of Local Fees for Food and Lodging Inspections
DEPARTMENT: Health PUBLIC HEARING: (Y/N) No
ATTACHMENT(S): INFORMATION CONTACT:
Resolution Rosemary Summers, 245-2411
PURPOSE: To consider adopting a resolution in support of state associations that calls for
legislation to allow counties the option to set fees for the inspection of food and lodging
establishments.
BACKGROUND: The Brunswick County Board of Health and the New Hanover County Board
of Health are spearheading an effort to have legislation introduced that would allow local
counties to set fees for food and lodging inspections. The North Carolina Association of Local
Health Directors and the North Carolina Association of County Commissioners have also
included this effort as one of their legislative agenda items.
Currently, each restaurant pays the state an annual fee of $50. The state returns approximately
60-75% of this fee to local health departments (the amount depends on the local department's
compliance rate). Because this fee is "charged" at the state level, there is a prohibition for local
health departments to charge a fee. The amount Orange County receives annually from the .
state for this program ranges from $7,500 to $10,000. Roughly $360,000 is spent each year by
Orange County on personnel and operating costs for this program, with most of the cost relating
to personnel. This cost estimate does not include capital expenditures such as vehicles and
computers.
Included in this resolution is a provision for the state to continue to receive the amount of
money they currently receive from this process should the responsibility shift to the local level.
The state currently maintains staff to manage the statewide database and provide consultative
services in the program to all areas of the state. The mechanism for the state receiving funds
will need to be determined if the legislation succeeds.
The primary advantage of the local control of setting fees would be a greater cost recovery for
actual program costs. A greater proportion of the cost of the program would be borne by the
businesses that receive the services rather than by the taxpayers in general. A program
2
evaluation completed in 2004 by the state showed that Orange County needs two additional
staff persons to meet all of the requirements of this program. This would enable the cost of
additional personnel to be partially offset by increased fees. It is anticipated that if the
associations are successful and legislation is passed, a fee schedule would be proposed by the
Orange County Board of Health to the BOCC, taking into account factors such as the mandated
inspection frequency, size of the facility, and complexity of food preparation processes. It is not
anticipated that this program would become 100% self-sufficient through fee recovery since
institutional inspections of adult care homes, day cares, schools, and others are included.
The Orange County Board of Health adopted this resolution at its November meeting.
FINANCIAL IMPACT: There -is no financial impact associated with passing this resolution. If
legislation authorizing setting fees at the local level is passed, the financial impact will be a
positive one in that the program would be able to have a lower proportion of local tax support.
RECOMMENDATION(S): The Manager recommends that the Board approve the resolution,
authorize the Chair to sign it, and that it be forwarded it to the respective Associations.
3
ORANGE COUNTY BOARD OF COMMISSIONERS
RESOLUTION IN SUPPORT OF LOCAL FEES FOR
FOOD AND LODGING
WHEREAS, the State of North Carolina mandates that local government provide Food and
Lodging support and inspections; and
WHEREAS, the Food and Lodging inspection program provides protection to the public
who eat away from home; and
WHEREAS, the State provides less than $10,000 per year in support of providing Food and
Lodging support and inspections in Orange County; and
WHEREAS, it costs the local taxpayers of Orange County upwards of $360,000 to meet the
State mandated requirements of the Food and Lodging Program; and
WHEREAS, Orange County has been unable to meet 100% compliance for more than five
years due to a lack of sufficient staff resources, and
WHEREAS, the Local Health Departments are willing to hold State Environmental Health
financially harmless by agreeing to allow the use of aid to county money to replace any financial loss
experienced from this effort; and
WHEREAS, the Orange County Board of Health believes fee for service funding for Food
and Lodging support and inspections would be a more equitable than asking County residents to bear
the cost of this State mandated service through the use of ad valorem taxes; and
WHEREAS, other State mandated services such as the On-Site Sewage Program are funded
using a combination of fee for service and county funding; and
WHEREAS, Food and Lodging facility owners and operators are the ones who draw
financial benefit from such facilities;
NOW THEREFORE BE IT RESOLVED that the Orange County Board of Commissioners
joins the Orange County Board of Health and requests the General Assembly to enact legislation
empowering local governments to set and collect fees for providing Food and Lodging support and
inspections from such enterprises operating within their boundaries.
This the 23th day of January 2007.
Moses Carey, Chair
Orange County Board of Commissioners