HomeMy WebLinkAboutItem 3: An Ordinance Adopting Hazardous Substance User Fees
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Public Hearing and Possible Council Action: An Ordinance Adopting Hazardous
Substance User Fees for the Fiscal Year Commencing July 1, 2011
Meeting Date: February 22, 2011 Agenda Item Number: 3
Department: Fire & EMS Staff Contact: Jo Eppli
www.eugene-or.gov Contact Telephone Number: 541-682-7118
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 2011-2012, the Toxics Board is recommending a fee of
$53.34 per FTE (full-time-equivalent employee) employed by participating businesses in 2010, 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.
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
companies and fee increases for smaller ones. Although participating employers are still polled for their
FTE figures, those with a high number of FTE now pay a smaller amount per FTE to support the
program, because of the state cap. Efforts to address this perceived inequity, both locally and before the
State Legislature, have not been fruitful, 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 seven years.
Participating employers have reported a total of 3,647 FTE in 2010. The program’s FY12 revenue
requirement is $92,409 (compared to $98,718 for FY11). After accounting for the cap, this has resulted
in a recommended fee of $53.34 per FTE, up to the maximum of $2,000. Any company with more than
44 FTE would pay only the maximum $2,000 fee per entity.
The recommended fee of $53.34 is slightly lower than last year’s fee of $55.48 due to lower staff costs.
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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.
COUNCIL OPTIONS
1. Conduct public hearing and act on the ordinance.
2. Conduct public hearing and postpone action on the ordinance.
3. Provide other direction.
CITY MANAGER’S RECOMMENDATION
The City Manager and the Eugene Toxics Board recommend adoption of the ordinance.
SUGGESTED MOTION
Move to adopt Council Bill 5044 adopting hazardous substance user fees for the fiscal year commencing
July 1, 2011.
ATTACHMENTS
Proposed Ordinance
A.
FOR MORE INFORMATION
Staff Contact: Jo Eppli
Telephone: 541-682-7118
Staff E-Mail: joann.c.eppli@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, 2011.
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. 20452 which established fees to be paid by
hazardous substance users for the fiscal year commencing July 1, 2010.
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 22, 2011,
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 $53.34 per FTE, not to
exceed $2,000 for any single facility for the 2011 calendar year, in order to cover the
expenses of the program for the fiscal year commencing July 1, 2011.
THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS:
Section 1.
A fee of $53.34 per FTE, not to exceed $2,000 for any single facility
for the 2011 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,
2011.
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 - Page 1 of 2
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 February, 2011. _____ day of February, 2011.
City Recorder Mayor
Ordinance - Page 2 of 2