HomeMy WebLinkAboutItem 5 - PH/Toxics RTK Ordin.EUGENE CITY COUNCIL
AGENDA ITEM SUMMARY
Public Hearing and Possible Action: An Ordinance Adopting Hazardous Substance User
Fees for the Fiscal Year Commencing July 1, 2005
Meeting Date: April 11, 2005 Agenda Item Number: 5
Department: Fire and Emergency Medical Services Staff Contact: Glen Potter
www. cl. eugene, or. us 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 2005-2006, the Toxics Board is recommending a fee of $30.94 per FTE
employed by participating businesses in 2004, up to a maximum of $2,000 as provided by state law.
BACKGROUND
Each year, beginning in 1998, 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. In approving 2004 fees recognizing the cap, Council
asked the Toxics Board to bring back a remedy (since there was a notable disparity between the amount
per FTE paid by smaller companies and that paid by larger ones). However, after considering possible
remedies and holding a public hearing earlier this year, Council directed the Toxics Board to study the
issue further, and requested an ordinance imposing 2005 fees calculated on the same basis as last year.
Participating employers have reported a total of 6,692 FTE in 2004. The program's FY06 revenue
requirement is $99,293. After accounting for the cap, this has resulted in a recommended fee of $30.94
per FTE, up to the maximum of $2,000.
Any company with more than 64 FTE would pay only the maximum. There are 28 such companies out
of 72 participating. However, it would not be correct to say that all 28 benefit from the cap; if there
were no cap, about half of them would wind up paying less than $2,000. Before the state-imposed fee
cap took effect, fees for this program were about $14 per FTE across the board. Without the cap, the
recommended fee for this year would have been $14.84. $14.84 x 100 (for example) = $1,484.
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As directed by Council, the City at this time is seeking legislative repeal (or raising) of the cap.
The recommended fee of $30.94 is similar to last year's fee of $31.65. This year's fee is slightly lower
because, while the overall number of FTE declined slightly, the number employed by businesses under
the cutoff point rose.
RELATED CITY POLICIES
Section 54, Article VII of the City Charter provides in part as follows:
A. Each hazardous substance user shall pay an annual fee to the City of Eugene, sufficient to
jointly cover the implementation of this Section, including expenses incurred by the
Eugene Public Library, Fire Marshal, City of Eugene and the Toxics Board.
B. In order that this Section be self-supporting through hazardous substance user fees, the
fee amounts shall be recommended annually by the Toxics Board and approved and
amended as necessary by the Eugene City Council.
C. All fees due under this Section shall be paid by May 1 of each calendar year.
Meanwhile, the City's 2005 Legislative Policies include support for legislative remedies to local Toxics
Program fee problems stemming from State law.
CO[INCIL OPTIONS
1. Adopt the ordinance.
2. Decline to adopt the ordinance and provide other direction.
CITY MANAGER'S RECOMMENDATION
The City Manager recommends adoption of the proposed ordinance (Option 1).
SIJGGESTED MOTION
Move to adopt an ordinance adopting hazardous substance user fees for the fiscal year commencing
July 1, 2005.
ATTACHMENTS
A. Proposed Ordinance
FOR MORE INFORMATION
Staff Contact: Glen Potter
Telephone: 682-7118
Staff E-Mail: glen.d.potter~ci.eugene.or.us
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ATTACHMENT A
ORDINANCE NO.
AN ORDINANCE ADOPTING HAZARDOUS SUBSTANCE USER
FEES FOR THE FISCAL YEAR COMMENCING JULY 1, 2005.
The City Council of the City of Eugene finds that:
A. Pursuant to Article VII of Amendment IV to the Eugene Charter of 1976
(the "Amendment"), the City Council has previously adopted Resolution No. 4558
establishing fees to be paid by hazardous substance users within the City for the fiscal
year commencing July 1, 1998; Resolution No. 4587 establishing fees to be paid by
hazardous substance users within the City for the fiscal year commencing July 1, 1999;
Resolution No. 4634 establishing fees to be paid by hazardous substance users within
the City for the fiscal year commencing July 1, 2000; Resolution No. 4667 establishing
fees to be paid by hazardous substance users within the City for the fiscal year
commencing July 1, 2001; Resolution No. 4711 establishing fees to be paid by
hazardous substance users within the City for the fiscal year commencing July 1, 2002;
Resolution No. 4751 establishing fees to be paid by hazardous substance users for the
fiscal year commencing July 1, 2003; and Ordinance No. 20314 establishing fees to be
paid by hazardous substance users for the fiscal year commencing July 1,2004.
B. In accordance with other requirements of the Amendment, the City
Council, by ordinance, has adopted the City's Hazardous Substance Tracking
Instructions, which provide guidance to hazardous substance users in completing and
submitting the reports required by the Amendment.
C. Pursuant to amended ORS 453.370(2)(a), the City must adopt the
hazardous substance user fee schedule via ordinance after notice and public hearing.
The City published and posted notice of the public hearing to be held on April 11, 2005,
Ordinance - 1
concerning the proposed ordinance adopting hazardous substance user fees, and such
hearing was held before the Eugene City Council on that date.
D. Pursuant to amended ORS 453.370(2)(b), the City cannot adopt a fee
schedule that imposes a fee of more than $2,000 for any single facility in any calendar
year.
E. The Toxics Board has recommended a fee of $30.94 per FTE, not to
exceed $2,000 for any single facility for the 2005 calendar year, in order to cover the
expenses of the program.
THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS:
Section 1. A fee of $30.94 per FTE, not to exceed $2,000 for any single facility
for the 2005 calendar year, is hereby imposed as the fee to be paid by hazardous
substance users within the City of Eugene. The fee shall be due and payable by May 1,
2005.
Section 2. As used in this Ordinance, the terms "FTE," and "hazardous
substance users" have the meanings ascribed to them in Section 3.692 of the Eugene
Code, 1971.
Section 3. The fees collected pursuant to this Ordinance shall be used for the
purpose of operating the Toxics Right-to-Know Program created by Amendment IV to
the Eugene Charter of 1976 and implemented by subsequent ordinances of the City.
Passed by the City Council this Approved by the Mayor this
__ day of ,2005. day of ., 2005.
City Recorder Mayor
Ordinance - 2