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Commission approves higher oversight fees for pharmaceutical stewardship program
Summary
The commission approved its first fee increase since 2016 for the Safe Drug Disposal Stewardship Ordinance: plan review hourly fee rises from $70 to $110 and the annual operating fee will move from $35,000 per plan to a flat $95,000 per year (divided among approved plans) to recover oversight costs.
The San Francisco Commission on the Environment voted Wednesday to raise fees charged to pharmaceutical manufacturers under the city's Safe Drug Disposal Stewardship Ordinance to recover the department’s oversight costs.
Maggie Johnson, senior toxics reduction coordinator, told commissioners the ordinance (passed in 2015) made manufacturers responsible for collection and disposal, and requires the city to recover its oversight costs. After implementing the program, staff found actual oversight effort and costs exceeded initial assumptions: the industry ultimately submitted one program plan rather than the three plans assumed in the original fee model, and the department underestimated site‑visit and outreach needs.
To align fees with current cost-recovery methodology, staff proposed increasing the plan-review hourly rate from $70 to $110 and replacing a per‑plan annual fee of $35,000 with a flat annual operating fee of $95,000 (effective July 1, 2020), to be divided equally among plans approved as of July 1 each year. Johnson said the change is designed to reflect the fixed portion of oversight work that exists regardless of the number of approved plans.
Commissioners asked whether higher fees could deter participation. Johnson said Med Project, the current plan operator, did not object and that neighboring Bay Area counties maintain similar or higher oversight fees. Commissioners also asked about outreach and program usage; Johnson said the program tracks weights collected and mail-back envelope requests but cannot measure exact per-resident participation because kiosks are designed for self-service.
Motion and vote: Commissioner Sullivan moved to approve the revised fee schedule; Commissioner Juan seconded. The commission adopted the fee changes by roll‑call vote.
Next steps: The revised fee schedule is effective July 1, 2020; the department will implement the updated billing method and continue outreach and oversight activities.
