HomeMy WebLinkAboutItem A: Ordinance Adopting Hazardous Substance User Fees for Fiscal Year Commencing July 1, 2013
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
year. Participating employers reported a total of 4,320 FTE in 2012. The total number of FTE for
2012 was then used in conjunction with the revenue requirement to calculate the fees for FY14.
After accounting for the state-mandated maximum of $2,000, this resulted in a recommended fee
of $82.69 per FTE, up to $2,000 per entity for FY14. This is a per FTE increase of $3.69 (or 4.5
percent) in comparison to last year. Any company with more than 27 FTE would pay only the
maximum $2,000 fee per entity.
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. Act on the ordinance.
2. 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 5090 adopting hazardous substance user fees for the fiscal year
commencing July 1, 2013.
ATTACHMENTS
A.Proposed Ordinance.
FOR MORE INFORMATION
Staff Contact: Jo Eppli
Telephone: 541-682-7118
Staff E-Mail: joann.c.eppli@ci.eugene.or.us
S:\CMO\2013 Council Agendas\M130410\S130410A.doc
Attachment A. Proposed Ordinance
Key to revisions made after March 11 Public Hearing:
Additions are shown in double underline;
Deletions are shown in double strikethrough.
ORDINANCE NO. _____
AN ORDINANCE ADOPTING HAZARDOUS SUBSTANCE USER FEES
FOR THE FISCAL YEAR COMMENCING JULY 1, 2013.
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. 20487 which established fees to be paid by
hazardous substance users for the fiscal year commencing July 1, 2012.
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 11, 2013,
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 $82.69 per FTE, not to
exceed $2,000 for any single facility for the 2013 calendar year, in order to cover the
expenses of the program for the fiscal year commencing July 1, 2013.
THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS:
Section 1.
A fee of $82.69 per FTE, not to exceed $2,000 for any single facility
for the 2013 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,
2013.
Section 2.
No enforcement action shall be taken against any reporting company
for failure to pay until after June 1, 2013.
Ordinance - Page 1 of 2
Attachment A. Proposed Ordinance
Section 23.
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 34.
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 April, 2013. _____ day of April, 2013.
City Recorder Mayor
Ordinance - Page 2 of 2