HomeMy WebLinkAboutItem 9: PH on Toxic Right to Know Fees
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.
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The recommended fee of $31.30 is similar to last year’s fee of $30.94, and also comparable to the 2004
fee of $31.65. The variations are due to budgetary adjustments for inflation and to fluctuations in the
total number of FTE against which the per-FTE fee is calculated.
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 included support for legislative remedies to local
Toxics Program fee problems stemming from State law. Such policies will again be recommended for
purposes of 2007.
COUNCIL OPTIONS
For March 13, this item is scheduled for public hearing and possible action. If action is not taken on
March 13, then action is scheduled for March 15. On March 13, the council may:
1. Accept public testimony and defer action;
2. Accept public testimony and adopt the ordinance; or
3. Accept public testimony, decline to adopt the ordinance, and provide other direction.
CITY MANAGER’S RECOMMENDATION
If public testimony received on March 13 is such that the council wishes additional time for deliberation,
then it is recommended that action be deferred to March 15. Otherwise, the recommendation is to proceed
with adoption of the ordinance on March 13. 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, 2006.
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, 2006. (CB #4920)
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. 20343 which established fees to be paid by
hazardous substance users for the fiscal year commencing July 1, 2005.
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 March 13, 2006,
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 $31.30 per FTE, not to
exceed $2,000 for any single facility for the 2006 calendar year, in order to cover the
expenses of the program for the fiscal year commencing July 1, 2006.
THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS:
Section 1.
A fee of $31.30 per FTE, not to exceed $2,000 for any single facility
for the 2006 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,
2006.
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 March, 2006. _______ day of March, 2006.
_______________________________ _______________________________
City Recorder Mayor
Ordinance - 2
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