Agenda 02-10-2026; 2 - Presentation of Fee Study for Emergency Services, Planning & Inspections, and Environment, Agriculture, Parks and Recreation (DEAPR)

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12 Analysis Highlights User Fee Studies This study evaluated fee-related services in three Orange County departments: ♦ Emergency Services ♦ Environment, Agriculture, Parks, and Recreation ♦ Planning and Inspections. For each,we built cost models that tie staff time, operating costs, and overhead to specific fee- bearing activities and then compared those full costs to current and recommended fee levels. Across all three departments,the services analyzed primarily benefit the individual user,which makes them appropriate for user fee funding. At the same time, several program areas, particularly in DEAPR and Emergency Services, also deliver broad community benefit,which justifies intentional subsidy from the General Fund. The recommended fee structure reflects both realities. In general, development review and inspection activities are targeted for higher cost recovery because they are directly triggered by private construction or land use decisions. Recreation and EMS services, by contrast, are set below full cost recovery to maintain affordability, respect limits on third party reimbursement, and align with County policy priorities. The narrative below summarizes key results by department. The fee-by-fee detail and peer comparison survey results are presented in Appendices A and B. Emergency Services Orange County Emergency Services is responsible for the coordination and delivery of 911 communications, Emergency Medical Services, Fire Marshal and life safety functions, and emergency management across the County. The department operates around the clock with a mission to protect lives and property through preparedness, response, and prevention activities. For this study,the Emergency Services user fee work was divided into two models: Fire Inspections and Emergency Medical Services. The Fire Inspections model covers activities performed by the Fire Marshal and life safety staff, including plan review for fire protection systems,fire code inspections of new and existing occupancies, and related permits. These services primarily benefit property owners and businesses by helping them meet regulatory requirements and maintain safe facilities. The model shows an annual cost of about $372,000 for these fee-based fire prevention activities. Current fees generate roughly $74,800 per year in revenue, or only 20% cost recovery, leaving an annual subsidy of about $297,200. At the beginning of the project, MGT discussed with management the potential to refine the Fire Inspections fee schedule to better meet the needs of the Fire Marshall and align with current practices. The recommended fee schedule introduces and refines several permit and inspection fees. Given the low recovery rate mentioned above, 20%,the County has an opportunity to increase its fees as Council sees fit. While it is not uncommon to see fire inspection fees charged at 100% cost recovery, it is reasonable to consider this service in some ways public facing, which would justify some level of subsidy from the general fund. Much of this subsidy is covered by the City of Hillsborough, which has an $80,000 annual contract to pay Emergency Services for fire inspection services. Emergency Services also has not been charging the Orange County School District for inspecting schools. MGT noted that staff recommend changing that internal policy to maintain equity between the school districts. MCIT PAGE 8