Childers Meat Co., Inc. v. City of Eugene

A fee is “based on quantity” when “the quantity of hazardous substance used” is a “principal component of determining whether a user pays a fee” and Eugene Code 3.692 expressly establishes that connection by defining “hazardous substances user,” in part, as an entity that uses “any quantity of hazardous substance (above zero)” and the mere reference to quantity does not indicate that the fee is “quantity-based”. Advocates for Effective Regulation v. City of Eugene, 160 Or App 292, (1999) (Advocates I). Additionally, under Chapter II of the Eugene Charter, the city retains significant authority to adopt rules and ordinances that regulate entities also regulated by the charter itself and “all power of the city is vested in the city council,” except as expressly provided by the charter. Eugene Charter § 4(1).

Plaintiffs appealed a judgment of the trial court declaring that the city’s imposition of the “hazardous substance user fee” on did not violate ORS 453.402(6). On appeal, Plaintiffs argued that the fee provision assessed an impermissible quantity-based fee in violation of ORS 453.402(6) and that it imposed fees on facilities that are not subject to the reporting requirements in the initiative. In response, Defendant argued that the trial court correctly entered the judgment. A fee is “based on quantity” when “the quantity of hazardous substance used” is a “principal component of determining whether a user pays a fee” and Eugene Code 3.692 expressly establishes that connection by defining “hazardous substances user,” in part, as an entity that uses “any quantity of hazardous substance (above zero)” and the mere reference to quantity does not indicate that the fee is “quantity-based”. Advocates for Effective Regulation v. City of Eugene, 160 Or App 292, (1999) (Advocates I). Additionally, under Chapter II of the Eugene Charter, the city retains significant authority to adopt rules and ordinances that regulate entities also regulated by the charter itself and “all power of the city is vested in the city council,” except as expressly provided by the charter. Eugene Charter § 4(1). The Court held that the trial court did not err because the fee provision did not assess a “quantity-based” fee and that the city had the authority to enact a hazardous substance user fee. Affirmed.