Item 9: PH on Toxic Right to Know Fees

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Public Hearing and Possible Action: An Ordinance Adopting Hazardous Substance User Fees for the Fiscal Year Commencing July 1, 2006 Meeting Date: March 13, 2006 Agenda Item Number: 9 Department: Fire and Emergency Medical Services Staff Contact: Glen Potter www.eugene-or.gov Contact Telephone Number: 682-7118 ISSUE STATEMENT In accordance with provisions of the Eugene City Charter, the City’s Toxics Right-to-Know Program is funded by fees assessed to local businesses that are hazardous substance users. For this year, to support the program for Fiscal Year 2006-2007, the Toxics Board is recommending a fee of $31.30 per FTE (full-time-equivalent employee) employed by participating businesses in 2005, up to a maximum of $2,000 as provided by state law. BACKGROUND Each year, beginning in 1998, the council has approved fees to support this program, first by resolution, and later, because of changes in state law, by ordinance. Throughout the life of this program, the City has always assessed fees on the basis of number of persons employed by the participating businesses. This is because the City is prohibited by state law from charging on the basis of quantity of chemicals used, and number employed is at least generally reflective of ability to pay and also bears a rough correlation to chemical quantities used. The methodology has been to poll the businesses at the beginning of each calendar year and ask them to calculate and report their FTE for the preceding calendar year, then divide the program’s revenue requirement for the upcoming fiscal year by the total number of FTE reported, and bill accordingly, with payment due May 1 each year as provided by the Charter. In 2004, a state-imposed fee cap of $2,000 took effect, resulting in fee reductions for larger participating companies and fee increases for smaller ones. Efforts to address this perceived inequity, both locally and before the State Legislature, have not been fruitful, and so the recommendation before the council at this time is to adopt the same fee structure and methodology, and a similar fee amount, as were adopted in 2004 and 2005. Participating employers have reported a total of 6,810 FTE in 2005. The program’s FY07 revenue requirement is $98,672 (compared to $97,724 for FY06). After accounting for the cap, this has resulted in a recommended fee of $31.30 per FTE, up to the maximum of $2,000. Any company with more than 63 FTE would pay only the maximum. L:\CMO\2006 Council Agendas\M060313\S0603139.doc