Item A: Ordinance Adopting Hazardous Substance User Fees for Fiscal Year Commencing July 1, 2013

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: An Ordinance Adopting Hazardous Substance User Fees for the Fiscal Year Commencing July 1, 2013 Meeting Date: April 10, 2013 Agenda Item Number: A Department: Fire/EMS Staff Contact: Jo Eppli www.eugene-or.gov Contact Telephone Number: 541-682-7118 ISSUE STATEMENT In accordance with provisions of Section 54, Article VII of the Eugene City Charter and Section 3.694 of the City Code, the cost of running the Eugene Toxics Right-to-Know Program must be fully-funded by fees assessed to local manufacturing businesses that are hazardous substance users. To support the program for fiscal year 2013-2014 (FY14), the Toxics Board is recommending that the City Council adopt a fee of $82.69 per full-time-equivalent employee (FTE) employed by participating businesses in 2012, 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 the Eugene Toxics Right- to-Know 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. Until 2004, the methodology was 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 businesses, and fee increases for smaller ones. Although participating employers are still polled for their FTE figures, because of the state-imposed fee cap, those with a high number of FTE now pay a smaller amount per FTE to support the program. Efforts to address this perceived inequity, both locally and before the State Legislature, have been unsuccessful, and so the recommendation before council at this time is to adopt a similar fee, similarly calculated, to those adopted in each of the past nine years. For FY14, the Toxics Board is recommending a budget of $118,000 to cover 90 percent staff time to support the program. This is a budget increase of $10,253 (or 8.7 percent) in comparison to last S:\CMO\2013 Council Agendas\M130410\S130410A.doc