Item B - Toxics Program Fees - Laserfiche WebLink

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quantities of hazardous substances reported.) The number employed by individual participating businesses has ranged from 10 to 1,207. The annual budget for the program has averaged about $100,000, which funds 0.5 FTE of direct staff support, 0.25 FTE ancillary staff support, plus legal fees and materials and supplies. The total number of FTE against which fees are assessed has ranged from approximately 6,000 to 7,000. Consequently, fees have been about $13 per FTE, though this has varied somewhat based on actual program requirements. The City Council approves the fees each year prior to billing, which normally occurs in April. For 2003, the fee was $13.92 per FTE. For 2004, because of the $2,000 cap, the fee was $31.65 per FTE up to the $2,000 limit. Businesses with more than 63 FTE paid less than $31.65 per FTE, with the largest, employing 1,207, paying $1.66 per FTE. Without the state fee cap, the recommended fee would have been $14.35 per FTE for all participating businesses. In approving the 2004 fees, the council asked the Toxics Board to return with a remedy addressing this perceived inequity. The City's current Right-to-Know Program consists of elements that are required by the amendment, elements that are not required by the amendment but are necessary for the program to be functional, and others that may or may not be Charter-mandated, depending on how certain provisions of the amendment are interpreted. Pursuant to Article VII, paragraph D of the amendment, only those elements that are required by the amendment must be paid for by "hazardous substance users" as that term is defined by the amendment. Any components of the current Right-to-Know Program that are not required by the amendment can be paid for by businesses that do not fall within the amendment's definition of "hazardous substance users." As such, while revenues collected pursuant to the proposed ordinance and the commercial solid waste hauling fee surcharge can fund elements of the program not mandated by the amendment, the revenues cannot fund Charter-mandated elements of the program. Examples of Charter-mandated activities include audits of hazardous substance reports, public posting of reports (at the library and on the Internet), investigation of complaints, invoicing and collections, and at least some of the activities provided in direct support to the Toxics Board. Examples of non-Charter- mandated activities include providing assistance to reporting businesses (both by individual consultation and by annually issuing tracking and reporting instructions), legal work in response to litigation and other legal issues, responses to public and media inquiries, technological updates to the program's website and business reporting software, and supervision of program staff. The level of direct support to be provided to the Toxics Board is not specified in the Charter, which provides instead that "[t]he City Manager shall consult with the Toxics Board in order to jointly determine the appropriate support services that shall be provided..." DETAILS OF PROPOSALS Ordinance adding businesses to the program: A subcommittee of the Toxics Board developed a list of types of businesses which could and possibly should be added to the program, not only in order to reduce the fee burden for currently participating businesses, but also to provide additional public reporting of hazardous substance use in the community. Businesses to be added would include gas stations, auto body and paint shops, dry cleaners, roofing contractors, painting contractors, any business operating a spa and/or a swimming pool (including hotels and motels), photofinishing services (except one-hour), and crematories. L:\CMO\2005 Council Agendas\M050110\S050110B.doc