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<br /> <br />ECC <br />UGENE ITY OUNCIL <br />AIS <br />GENDA TEM UMMARY <br /> <br /> <br /> <br /> <br />Public Hearing and Possible Action: An Ordinance Adopting Hazardous Substance User <br />Fees for the Fiscal Year Commencing July 1, 2009 <br /> <br /> <br />Meeting Date: February 17, 2009 Agenda Item Number: 4 <br />Department: Fire & Emergency Medical Services Staff Contact: Glen Potter <br />www.eugene-or.gov Contact Telephone Number: 682-7118 <br /> <br /> <br /> <br /> <br />ISSUE STATEMENT <br />In accordance with provisions of the Eugene City Charter and City Code, the City’s Toxics Right-to- <br />Know Program is funded by fees assessed to local businesses which are hazardous substance users. For <br />this year, to support the program for Fiscal Year 2009-2010, the Toxics Board is recommending a fee of <br />$52.38 per FTE (full-time-equivalent employee) employed by participating businesses in 2008, up to a <br />maximum of $2,000 as provided by state law. <br /> <br /> <br />BACKGROUND <br /> <br />Each year, beginning in 1998, the council has approved fees to support this program, first by resolution, <br />and later, because of changes in state law, by ordinance. Throughout the life of this program, the City <br />has always assessed fees on the basis of the number of persons employed by the participating <br />businesses. This is because the City is prohibited by state law from charging on the basis of quantity of <br />chemicals used, and number employed is at least generally reflective of ability to pay and also bears a <br />rough correlation to chemical quantities used. <br /> <br />Until 2004, the methodology was to poll the businesses at the beginning of each calendar year and ask <br />them to calculate and report their FTE for the preceding calendar year, then divide the program’s <br />revenue requirement for the upcoming fiscal year by the total number of FTE reported, and bill <br />accordingly, with payment due May 1 each year as provided by the Charter. <br /> <br />In 2004, a state-imposed fee cap of $2,000 took effect, resulting in fee reductions for larger participating <br />companies and fee increases for smaller ones. Although participating employers are still polled for their <br />FTE figures, those with a high number of FTE now pay a smaller amount per FTE to support the <br />program, because of the state cap. Efforts to address this perceived inequity, both locally and before the <br />State Legislature, have not been fruitful, and so the recommendation before the council at this time is to <br />adopt a similar fee, similarly calculated, to those adopted in each of the past five years. <br /> <br />Participating employers have reported a total of 4,826 FTE in 2008. The program’s FY10 revenue <br />requirement is $108,753 (compared to $107,206 for FY09). After accounting for the cap, this has <br />resulted in a recommended fee of $52.38 per FTE, up to the maximum of $2,000. Any company with <br />more than 38 FTE would pay only the maximum. <br /> <br />The recommended fee of $52.38 is somewhat higher than last year’s fee of $46.20 due in part to the <br />inflationary budget increase, but due in greater part to a decline in the number of participating <br /> Z:\CMO\2009 Council Agendas\M090217\S0902174.doc <br /> <br />