Item 6 - Ord.on Toxics RTK Fees - Laserfiche WebLink

Home Browse Search

EUGENE CITY COUNCIL AGENDA ITEM SUMMARY Action: An Ordinance Concerning Hazardous Substances User Fees; Amending Sections 3.692 and 3.694 of the Eugene Code, 1971; and Adding Section 3.695 to that Code Meeting Date: March 7, 2005 Agenda Item Number: 6 Department: Fire and Emergency Medical Services Staff Contact: Glen Potter www. cl. eugene, or. us Contact Telephone Number: 682-7118 ISSUE STATEMENT The Eugene Toxics Right-to-Know Program is funded by fees assessed to local businesses that are hazardous substance users. A state-imposed fee cap of $2,000 per facility took effect last year, resulting in a substantial fee increase for smaller participating businesses while reducing fees for larger businesses. The council approved fees on that basis in 2004, but directed the Toxics Board to return with a proposed remedy for the perceived inequity. In a work session on January 10 of this year, the council considered two proposals brought forward by the board, and scheduled a public hearing on one of them, an ordinance that would add certain types of businesses to the program and would also reduce the threshold employee level for manufacturers from 10 to 2. The hearing on the proposed ordinance was held on February 14. The proposed ordinance is attached. BACKGROUND In 1996, through the citizen initiative process, Eugene voters amended the City Charter to enact the Toxics Right-to-Know Program (the "amendment"). Article VII, paragraph D of the amendment requires that the Charter-created program be self-supporting. Fees have been assessed to each participating business on the basis of full-time-equivalent (FTE) employees working at each business in a calendar year. (Oregon courts have concluded that a program of this type may not assess fees, nor determine who pays fees, based on quantities of hazardous substances reported.) The number employed by individual participating businesses has ranged from 10 to 1,207. At this time, 72 local manufacturing facilities are required to pay fees, and 40 of those are required to file reports because they exceed the program's quantity threshold for reporting. 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 & 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 to $14 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. L:\CMO\2005 Council Agendas\M050307\S0503076.doc