Last week, the Contra Costa County Board of Supervisors approved fee increases that will impact local restaurants.
The fee increase comes after the Contra Costa County Board of Supervisors received a report from staff on adjustments for regulatory fees charged by Health Services—this includes food safety and permit 4,600 food facilities across the county. The county says it has not raised fees since 2019 and the program is facing a $3.1 million shortfall annually – fees are currently covering just 73% of program costs.
The board did take two actions to protect smaller restaurants and local farmers markets. Small mom and pop restaurants (0-25 seats) will have their fees paid over 3-years dropping the monthly rate from $18 to $12. Meanwhile, farmers market fees will not be increased, as long as the county health is provide booth space to promote healthy eating and other health related information.
According to the county, RC 1, RC 2 and RC3 are health levels, low, medium and high
Fee increases:
Small restaurants (0-25 seats):
- RC1 = +$446
- RC2 = +$485
- RC3 = +$446
Medium restaurants (26-49 seats):
- RC1 = +$445
- RC2 = + $580
- RC3 = + $523
Medium Restaurants (50-149 seats:
- RC1 = +$178
- RC2 = +$508
- RC3 = +$601
Large restaurants (150+ seats):
- RC1 = reduced by $232
- RC2 = + $255
- RC3 = + $755
To view fees + slide show — click here
According to Kristian Lucas, Environmental Health Services (EDH) Director, they inspect the facilities 1 to 3 times per year to ensure safety for consumers. They also permit 1,600 public bodies of water whether people enjoy year-round – ensuring water chemistry is maintained. They also have also inspect land use (septic tanks, water wells), solid waste and consumer protection.
Lucas shared the fee adjustments were necessary because the EDH is funded almost entirely through fees which costs have increased since 2019 but fees haven’t kept up. Current fees only cover 73% of program costs which results in a $3.1 million shortfall annually. By adjusting fees, it ensures continued protection of public health and compliance with state mandates.
According to Lucas, they have worked to update categories to include mobile carts, temporary events, farmers markets, pools and schools. They also have worked with a third party consultant to perform the fee structures.
He also shared, fees as based on standardized $367 per hour rate—reflecting actual service costs (inspections, administration and overhead).
Outreach
It was stated that EDH sent out individualized fee letters (approx. 8,000 to permit holders), followed by a public comment period, held a stakeholder meeting and response to comments.
Supervisor Diane Burgas asked Lucas how many people attended. He replied, about 12 people who attended in person and 8 or 9 attended virtually. In addition, they received 95 public comments.
Farmers Market
Lucas shared that during public comments, some of the fees that were being proposed were going to put farmers markets at risk for going out of business—while reducing the number of vendors would could attend.
The fees were ultimately reduced to farmers market as of June 23, 2025 not to exceed $50k per any fiscal year and subject to funding availability in that fiscal years.
The reduction was due to a stipend from the Contra Costa Health Plan to reduce the fees to current levels—provided the farmers markets provide the county booth space for collaborative marketing for health food options for consumers. If a market opts out of it, then there is a fee.
Restaurants/Retail Markets
Phased increase over two years which include:
- Initial 50% increase prior to 12/31/26
- Additional 50% increase after 1/1/27
“The reason those dates were chosen was simply due to types of permits environmental health issues,” stated Lucas. “We issue permits in three phases, once in a fiscal year, another in a calendar year, and the majority of them on a permit year basis.”
He further highlighted if the fee increase is $200, then $100 would be do that first year.
Temporary Food Events
- Additional both type tiers have been added.
- Phased increase over two years:
- Initial 50% increase prior to 12/31/26
- Additional 50% increase after 1/1/27
Lucas shared they have added tier because the complaint they received was all vendors were treated the same – where someone who prepares food on site was the same as someone who does pre-package food or beverages. The created two new types at different pricing levels.
Board Commentary:
Supervisor Burgis was appreciative of staff coming up with a creative solution for restaurants and farmers markets to keep cost increases down—calling farmers markets a healthy way to get food.
“I am, however, concerned about the smaller restaurants. I don’t want to pile up on these small mom and pop types of restaurants. Food is costing more, energy is costing more, then our fees cost more and I don’t want to contribute to businesses shutting down,” stated Burgis. “I am really concerned about that… but I also understand everyone else is holding off on raising their fees because they are waiting for someone else to do it. I am not enthusiastic about being the first. I am just being really open with everyone, but I really want to make sure that everyone who is going into a restaurant is getting a safe experience and we are protecting business owners.”
Supervisor Shanelle Scales-Preston shared a similar concern for the small businesses.
“We are constantly looking at how do we bring businesses and restaurants to come to our community, but those are small businesses, like really small family ran businesses where they are barely making it. But we are happy to have them there so they can fill up these spaces. Whereas, I look at the other side of my District, its Rodeo and Crockett, it’s the small businesses they have, they are trying to hold onto them because they do not have anything there,” explained Scales-Preston. “They already have food insecurity, there are no stores there, they are going to other communities to shop. So, I think this for the small businesses, the family owned, this is going to be a real burden on them.”
She highlighted some of the increases are $500, but that $500 is a big deal when some are barely open. She understood they had to increase fees, but for the small businesses, questioned if they could find a way to reduce the fees for the “really small businesses”.
Supervisor Ken Carlson said they were looking at a deficit of $3.1 million and was curious if this was over the past 5-years or incremental—were they looking at a $15 million over 5-years.
Lucas said the $3.1 million was based off the current budget for 2024-25.
Carlson asked if they went back to 2019, were they running a deficit, Lucas said their cost were lower then but have gone up each year. The county has a goal to have fees bee cost neutral.
Supervisor John Gioia called raising fees was always hard but the perspective was to keep the community safe. He also said when people don’t hear about sickness, illness from food the county is doing its job—however, he reminded the community about Thanksgiving at a church where food was served and people had died. He also remembered the deaths at the spa in Richmond.
“When that type of stuff happens, people always ask where is Environmental Health? What is going on? Are they inspecting? So when you do your job, you are not in the news,” explained Gioia. “That is how we want to keep it. Because we are not reading stories, doesn’t mean you are not preventing food born injuries and illness.”
He also cited a study that was 60% of food born illness comes from restaurants.
“We want to recover our costs and make it reasonable but the good news is those who have lower risk, pay less,” said Gioia. “Our goal is to get more restaurants into that lower risk category and help them. If they are higher risk, they deserve to pay more because they are putting the public at risk.”
He supported phasing it over 2-years and asked if $18 a month was fair for a small business for safety.
“To me, $18 a month seems like a reasonable price to pay for health and safety,” said Gioia.
Lucas also confirmed the last time the county increased fees was in 2019.
Burgis asked what the number of small restaurants were in Contra Costa County and if there could be funding available to spread this out over more than 2-years.
According to the county, the number of restaurants include:
- 0-25 seats: 941 (includes risk levels 1, 2 & 3)
- 26-49 seats: 603 (includes risk levels 1, 2 & 3)
- 50-149 seats: 701 (includes risk levels 1,2 & 3)
- 150+ seats: 188 (includes risk levels 1, 2 & 3)
- Note – data from Appendix A.8
Burgis agreed that $18 a month was small, but acknowledged everything was building up on small businesses – food, energy, insurance, rent.
Supervisor Candace Andersen asked for the small businesses (0-25) that they make the increase over a 3-year period, or $12 a month increase.
“My concern, most of our departments are fee based for cost recovery and if we start subsidizing through the general fund the fees, we are stepping into a slippery slope,” explained Andersen. “At the same time, I would like to pursue other options for small businesses, grants, loans, Keller Canyon Mitigation… but since we have this concern over small restaurant, what if we just those over a 3-year period.”
Gioia agreed, noting a small business could afford $12 a month.
“I get everything adds up, but we can’t control all the other stuff,” stated Gioia. “All we can control what we do, we are trying to keep the public safe.”
After more discussion and clarifications, the Board of Supervisors confirmed there would be no increases on fees for local farmers markets.
Scales-Preston had concerns for cities who are trying to improve areas and get businesses to come, but adding fees makes it more challenging whereas they are trying to help marginalized communities thrive.
“By adding those additional costs does not help those communities at all,” stated Scaled-Preston who said she would be supportive of a program to help small businesses for one-time or extended it for a 3-year period for a smaller cost.
Burgis motioned that the county agreed to extended the fee increases over a period of three-years, thus reducing the annual fee (small business 0-25 ). She also motioned to suspend the small water fees until it comes back for more understanding from the state. She also requested they explore ways to help small businesses apply for grants.
The item was then approved.
Documents
- Attachment 1_EHD Apportionment Report
- Attachment 2_NBS_CCH EHD_Fee Study_6.6.25
- Attachment A_EHD Fee Schedule_FINAL_6.24.25,
- Attachment 3_Resolution_EH Fee Updates
- Notice of Hearing – Environmental Health Fees_05.20.pdf
- FINAL_Board of Supervisors Presentation_6.24.25
Watch the Meeting: Click Here
June 24 – Contra Costa County to Talk Guaranteed Income Pilot, Urban Limit Line, Fees
