Item B - Toxics Program Fees - Laserfiche WebLink

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In addition, the proposed ordinance would reduce the FTE threshold for program participation from 10 to 2, meaning that smaller businesses in the already existing covered classifications (all manufacturing) would now be required to pay fees and possibly to report. (It is not clear at this time how many businesses would be affected in this way.) The quantity threshold for required reporting would remain at 2,640 pounds of total hazardous substance inputs in a calendar year. It would remain the case, as it is now, that a number of businesses would be required to pay fees but would not be required to report. The potential overall effect that the proposed ordinance would have on fees is not entirely clear at this time. As was the case when the program was first enacted, estimates vary. Staff has estimated the number of businesses that would be added, the total number of FTE that would be added, and the potential added cost of program administration, and has come to the very tentative conclusion that the ordinance could have the effect of reducing program fees by perhaps $5 per FTE from the 2004 level of $31.65 per FTE up to the $2,000 cap. To develop an exact determination, it will be necessary to specifically identify all businesses to be added to the program, poll them to determine their 2004 FTE levels, add these FTE to the existing FTE pool (polling to determine the existing FTE pool is being done now), and then recalculate the FY06 program budget requirements and applicable fees. Under the proposed ordinance, initial fees for new businesses would be payable in 2005, but the first reporting year would be 2006, meaning that the first reports for new participating businesses would not be due to the City until April 2007. As was done in 1997 under the original program, the initial year would be used to identify and educate affected businesses, who would then be required to track and report substance use in the following year. Commercial solid waste hauling fee surcharge: In 2003 there were 3,519 commercial solid waste container accounts in the City of Eugene, plus approximately 22,000 drop box (dumpster) "pulls." A surcharge of 50 cents per month for each regular account, plus one dollar per dumpster pull, would raise approximately $43,000 over a full year, and would create only minimal added Toxics Program administration costs. To fund the Charter-mandated elements of the Right-to-Know Program (approx. $60,000), given the existing FTE pool, fees would need to be between $15 and $18 per FTE, up to the $2,000 cap, which would be reached somewhere between 111 and 133 FTE. Imposition of the surcharge would add administrative (billing) costs for haulers, which would need to be a covered expense in future rate reviews. It would take some amount of time to implement, and decisions would need to be made regarding the timing of the "surcharge collection year" and which "Toxics Program year" those funds would support. Additionally, staff in the City's Planning and Development Department have raised concerns regarding the proposed surcharge, and have submitted the following comments related to this issue for inclusion in this Agenda Item Summary: "Planning and Development Department staff administering requirements for solid waste haulers recognizes the toxics program funding dilemma, and asks that the option of attaching a new fee to waste collection customer bills weigh several issues. First, the City already sets fees for collection of hazardous wastes and Lane County assesses additional disposal fees. A new fee for all commercial accounts may result in an appearance of redundant assessments for some generators. For other accounts, the indirect connection between the toxics program and their waste composition may raise concerns. The addition of toxics program charges on commercial waste collection accounts might look like a tax to many generators and haulers, because it is not based on use. In the L:\CMO\2005 Council Agendas\M050110\S050110B.doc