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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: January 23, 2007 <br />Action Agenda <br />Item No. 5 h <br />SUBJECT: Resolution in Support of Local Fees for Food and Lodging Inspections <br />DEPARTMENT: Health PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): INFORMATION CONTACT: <br />Resolution Rosemary Summers, 245-2411 <br />PURPOSE: To consider adopting a resolution in support of state associations that calls for <br />legislation to allow counties the option to set fees for the inspection of food and lodging <br />establishments. <br />BACKGROUND: The Brunswick County Board of Health and the New Hanover County Board <br />of Health are spearheading an effort to have legislation introduced that would allow local <br />counties to set fees for food and lodging inspections. The North Carolina Association of Local <br />Health Directors and the North Carolina Association of County Commissioners have also <br />included this effort as one of their legislative agenda items. <br />Currently, each restaurant pays the state an annual fee of $50. The state returns approximately <br />60-75% of this fee to local health departments (the amount depends on the local department's <br />compliance rate). Because this fee is "charged" at the state level, there is a prohibition for local <br />health departments to charge a fee. The amount Orange County receives annually from the . <br />state for this program ranges from $7,500 to $10,000. Roughly $360,000 is spent each year by <br />Orange County on personnel and operating costs for this program, with most of the cost relating <br />to personnel. This cost estimate does not include capital expenditures such as vehicles and <br />computers. <br />Included in this resolution is a provision for the state to continue to receive the amount of <br />money they currently receive from this process should the responsibility shift to the local level. <br />The state currently maintains staff to manage the statewide database and provide consultative <br />services in the program to all areas of the state. The mechanism for the state receiving funds <br />will need to be determined if the legislation succeeds. <br />The primary advantage of the local control of setting fees would be a greater cost recovery for <br />actual program costs. A greater proportion of the cost of the program would be borne by the <br />businesses that receive the services rather than by the taxpayers in general. A program