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<br /> <br /> <br />ECC <br />UGENE ITY OUNCIL <br />AIS <br />GENDA TEM UMMARY <br /> <br /> <br /> <br />Public Hearing: An Ordinance Adopting Hazardous Substance User Fees for the Fiscal <br /> <br />Year Commencing July 1, 2010 <br /> <br />Meeting Date: February 16, 2010 Agenda Item Number: 1 <br />Department: Fire & EMS Staff Contact: Glen Potter <br />www.eugene-or.gov Contact Telephone Number: 541-682-7118 <br /> <br /> <br /> <br /> <br />ISSUE STATEMENT <br />In accordance with provisions of the Eugene City Charter and City Code, the City’s Toxics Right-to- <br />Know Program is funded by fees assessed to local businesses that are hazardous substance users. For <br />this year, to support the program for Fiscal Year 2010-2011, the Toxics Board is recommending a fee of <br />$55.48 per FTE (full-time-equivalent employee) employed by participating businesses in 2009, up to a <br />maximum of $2,000, as provided by state law. <br /> <br /> <br />BACKGROUND <br /> <br />Each year, beginning in 1998, the council has approved fees to support this program, first by resolution, <br />and later, because of changes in state law, by ordinance. Throughout the life of this program, the City <br />has always assessed fees on the basis of number of persons employed by the participating businesses. <br />This is because the City is prohibited by state law from charging on the basis of quantity of chemicals <br />used, and number employed is at least generally reflective of ability to pay and also bears a rough <br />correlation to chemical quantities used. <br /> <br />Until 2004, the methodology was to poll the businesses at the beginning of each calendar year and ask <br />them to calculate and report their FTE for the preceding calendar year, then divide the program’s <br />revenue requirement for the upcoming fiscal year by the total number of FTE reported, and bill <br />accordingly, with payment due May 1 each year as provided by the Charter. <br /> <br />In 2004, a state-imposed fee cap of $2,000 took effect, resulting in fee reductions for larger participating <br />companies and fee increases for smaller ones. Although participating employers are still polled for their <br />FTE figures, those with a high number of FTE now pay a smaller amount per FTE to support the <br />program, because of the state cap. Efforts to address this perceived inequity, both locally and before the <br />State Legislature, have not been fruitful, and so the recommendation before the council at this time is to <br />adopt a similar fee, similarly calculated, to those adopted in each of the past six years. <br /> <br />Participating employers have reported a total of 3,877 FTE in 2009. The program’s FY11 revenue <br />requirement is $98,718 (compared to $108,753 for FY10). After accounting for the cap, this has <br />resulted in a recommended fee of $55.48 per FTE, up to the maximum of $2,000. Any company with <br />more than 36 FTE would pay only the maximum. <br /> <br />The recommended fee of $55.48 is slightly higher than last year’s fee of $52.38 due primarily to an <br />overall decline in the total employment of participating businesses (4,826 in 2008 compared to 3,911 in <br /> Z:\CMO\2010 Council Agendas\M100216\S1002161.doc <br /> <br />