HomeMy WebLinkAboutItem 6: Ordinance Concerning Adoption of Hazardous Substance User Fees
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Action: An Ordinance Adopting Hazardous Substance User Fees for the Fiscal Year
Commencing July 1, 2007
Meeting Date: March 12, 2007 Agenda Item Number: 6
Department: Fire & 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 and City Code, 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 2007-2008, the Toxics Board is recommending a fee of
$37.38 per FTE (full-time-equivalent employee) employed by participating businesses in 2006, 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 a similar fee, similarly calculated, to those adopted in each of the past three years.
Participating employers have reported a total of 6,432 FTE in 2006. The program’s FY08 revenue
requirement is $102,947 (compared to $98,672 for FY07). After accounting for the cap, this has
resulted in a recommended fee of $37.38 per FTE, up to the maximum of $2,000. Any company with
more than 53 FTE would pay only the maximum.
The recommended fee of $37.38 is somewhat higher than last year’s fee of $31.30 due in part to the
inflationary budget increase, but due in greater part to a decline in the number of “billable” FTE (i.e.,
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the first 53 FTE for all participating companies). The revenue burden is shared by 73 Eugene
manufacturers. The fee in 2005 was $30.94 per FTE.
A public hearing on the proposed ordinance was held before the City Council on February 26. One
person offered testimony, on an issue not related to the program’s fees. No follow-up information was
requested.
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.
Section 3.694 of the City Code provides further for these fees.
Meanwhile, the City’s 2007 Legislative Policies include support for legislative remedies to local Toxics
Program fee inequities stemming from State law.
COUNCIL OPTIONS
1. Adopt the ordinance.
2. Provide other direction.
CITY MANAGER’S RECOMMENDATION
The City Manager recommends Option 1: Adopt the ordinance. Adoption is also recommended by the
Toxics Board.
SUGGESTED MOTION
Move to adopt an ordinance adopting Hazardous Substance User Fees for the fiscal year commencing
July 1, 2007.
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, 2007.
The City Council of the City of Eugene finds that:
A.
Pursuant to Article VII of Amendment IV to the Eugene Charter of 2002
(the “Amendment”), the City Council has previously adopted Resolutions and
Ordinances establishing fees to be paid by hazardous substance users within the City
with the most recent being Ordinance No. 20364 which established fees to be paid by
hazardous substance users for the fiscal year commencing July 1, 2006.
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 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 February 26, 2007,
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 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 $37.38 per FTE, not to
exceed $2,000 for any single facility for the 2007 calendar year, in order to cover the
expenses of the program for the fiscal year commencing July 1, 2007.
THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS:
Section 1.
A fee of $37.38 per FTE, not to exceed $2,000 for any single facility
for the 2007 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,
2007.
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.
Ordinance - 1
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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 2002 and implemented by subsequent ordinances of the City.
Passed by the City Council this Approved by the Mayor this
_______ day of ___________, 2007. _______ day of ____________, 2007.
_______________________________ _______________________________
City Recorder Mayor
Ordinance - 2
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