HomeMy WebLinkAbout538ORDINANCE NO. 538
AN ORDINANCE OF THE PEOPLE OF THE CITY OF
IRWINDALE, CALIFORNIA, INCREASING THE GENERAL
TAX ON MINING, SEPARATING THE MINING TAX INTO
SEPARATE TAXES ON EXTRACTION AND PROCESSING,
AND REDUCING THE DUMPING TAX TO ENCOURAGE
RECLAMATION
WHEREAS, on June 3, 1997, the voters of the City of Irwindale, by an approximately 95
percent favorable vote, adopted a Charter amendment which, among other things, declared the
City's authority to levy taxes on mining and processing operations in accordance with applicable
laws and procedures; and
WHEREAS, current and past mining and processing operations, which cover over
80 percent of the non -publicly -owned land area of the City, at 17 different sites, some covering
as much as 450 acres with permitted depths to 275 feet, impose severe negative environmental
impacts upon City residents, businesses, properties, and visitors; and
WHEREAS, the environmental impacts from mining and processing operations include,
but are not limited to, deterioration of streets and other public infrastructure facilities; degradation
("N of air quality; public health and safety hazards; increased noise; slope stability and slope erosion
problems; security and safety concerns; visual blight; water quality impacts; problems with sand
and particulate matter; and loss of developable land for other uses; and
WHEREAS, on December 2, 1997, the voters of the City of Irwindale, by an
approximately 91 percent favorable vote, adopted a special tax of $0.0974 per ton of material
processed, extracted, or produced to pay the cost of a comprehensive Mining Study on the
environmental impacts of mining and processing activities; and
WHEREAS, the City has conducted an eight-month Mining Study, through an independent
consultant selected in a competitive process, which Mining Study cost almost $200,000; and
WHEREAS, principal recommendations of the Mining Study include that the City does an
insufficient job of monitoring air, water, and noise impacts; that slopes at various locations are
probably too steep and need further analysis; that additional measures should be taken to screen
and secure mining operations; that some $17 million dollars of street and other infrastructure
deficiencies are related to mining activities; that current financial assurances and reclamation plans
are inadequate; and
WHEREAS, current mining operations are a relatively unproductive use of the City's land,
producing a return to the City of less than ten percent (10%) of what could be expected from a
land use mix more typical of Southern California communities; and
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WHEREAS, the City has been involved with litigation challenging the validity of the
City's current mining tax which treats mining extraction and processing activities the same, as
certain entities import and process material within the City without extracting it within the City;
and
WHEREAS, the City currently taxes the deposit of inert material in the mining pits, and
the Mining Study recommends that a decrease in the tax on dumping activities would encourage
reclamation of the mining pits; and
WHEREAS, an increase in the special mining tax is necessary to finance the
recommendations made by the Mining Study to enhance the City's monitoring and enforcement
program and to pay for construction, repair, replacement of streets and infrastructure; and
WHEREAS, this Measure is part of a comprehensive program, including a general mining
tax increase to be placed in the General Fund to pay for the City's general operations; an increase
in the special mining tax to pay for the monitoring and mitigation program recommended by the
Mining Study; the revision of the mining tax to establish different rates for extraction and
processing; the reduction of the dumping tax to encourage reclamation activities; the increase of
certain other taxes to reduce dependence on the mining tax; and
WHEREAS, as the Mining Study has determined that the current market price of Irwindale
aggregate ranges from $7.00 to $9.00, and the collective mining tax, if these measures are
enacted, both the special and general taxes, would be $0.60, which is approximately 7.5 percent !
of the cost of the product, the City believes that such percentage increase is fair and reasonable
and not confiscatory; and
WHEREAS, California Government Code Section 37101 authorizes municipalities to
regulate and tax the operation of businesses within their limits, and the City has imposed a tax on
mining and processing activities within the City since the adoption of Ordinance 293 in 1975; and
WHEREAS, California Constitution Article XIIIC, Sec.2(d) requires that in order for a
city to impose or increase any general tax, that tax must be submitted to the electorate and
approved by a majority vote.
NOW, THEREFORE, THE PEOPLE OF THE CITY OF IRWINDALE, CALIFORNIA,
HEREBY ORDAIN AS FOLLOWS:
SECTION 1. That Irwindale Municipal Code is hereby amended by adding Chapter 3.18,
said Chapter to read as follows:
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"Chapter 3.18
t
MINING EXCAVATION. PROCESSING.
RECLAMATION. AND RELATED TAXES
"3.18.010P=ose.
A. Mining is a pervasive use in the City with some 17 pits ranging from 50
to 450 acres with permitted depths to 275 feet. Over 80 percent of the non-public land in
the City is devoted to mining operations.
B. Mining impacts include, but are not limited to deterioration of streets and
other public infrastructure facilities; degradation of air quality; public health and safety
hazards; increased noise; slope stability and slope erosion problems; security and safety
concerns; visual blight; water quality impacts; problems with sand and particulate matter;
and loss of developable land for other uses.
C. The City Charter in Article XIII provides that the City shall have the
authority to level general and special mining, excavation, and processing taxes as is
authorized by general law. The Charter further recites that mining imposes severe negative
environmental impacts upon City residents, businesses, properties, and visitors and
provides that the City has authority to regulate the mitigation of negative environmental
(0111 impacts imposed on the City by mining and processing operations.
D. The purpose of this Chapter is to establish a comprehensive taxing scheme
for mining operations, both to support the City's general governmental operations and to
raise revenue for specified purposes to be placed in the Mining Impact Fund to study,
analyze, monitor, regulate, administer, correct, remediate, and mitigate mining impacts
and to facilitate reclamation of mining pits.
E. The City is also occupied by a number of recycling operations whose effect
on surrounding properties is similar to that of processing rock materials. Materials such
as paper, plastic, rubber, metal, glass, and concrete are imported to sites in the City where
they are crushed, ground, shredded, separated, sorted, baled, packaged, reprocessed, and
recycled for sale. The City believes this activity should be taxed in a similar manner as
the processing of rock materials.
F. Ultimately, it is the City's goal, as stated in the Charter, that mining
operations are so conducted as to be a good neighbor to persons residing or working in the
City and that at such time as a mining use is discontinued, the property be restored to a
usable condition which is readily adaptable to alternate land uses and will create no danger
to public health or safety. It is the purpose of this Chapter to facilitate these goals.
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3.18.020 Definitions. As used in this Chapter:
A. The term "processing", with respect to rock materials, means treating,
crushing, re -crushing, sorting, mixing, re -mixing, or sluicing of rock materials which
originated or were excavated either inside or outside of the corporate boundaries of the
City.
B. The term "excavation" means the physical removal of rock materials from
the earth for use in commercial purposes, whether or not the rock materials are thereafter
processed.
C. The term "rock materials" means rock, sand, gravel, dirt, rock products,
or similar materials.
D. [RESERVED]
3.18.030 Mining Tax on Excavation and Processing.
A. Business License Tax for Excavation. Notwithstanding any other provisions
of this Code relating to business license taxes and special taxes, there is imposed upon each
person or entity engaged in the business of excavating rock materials from any real
property located within the city, for the purpose of commercial use thereof other than on
the property where so excavated, a business license tax of eighteen cents ($0.18) per ton
of rock materials so excavated.
B. Business License Tax for Processing. Notwithstanding any other provisions
of this Code relating to business license taxes or special mining taxes, there is imposed
upon each person or entity engaged in the business of processing rock materials at any
location within the City a business license tax of nine cents ($0.09) per ton of rock
materials so processed.
C. Excavation and Processing Taxes Cumulative. In the event any person or
entity excavates and thereafter processes the same material, each of such operations within
the City, the foregoing taxes in Subsections A and B of this Section shall be cumulative.
D. General Tax. The purpose of the taxes in this Section are to raise revenue
and are not regulatory. The revenue shall be placed in the City's general fund to finance
the general operations of the City.
E. Cost of Living Adjustment. The taxes imposed in Subsections A and B
above shall be annually adjusted based upon the timing and criteria specified for business
license taxes in Section 5.08.490.
3.18.040 Special Tax for Excavation and Processing of Rock Materials.
[RESERVED]
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(7,
3.18.050 Use of Special Tax Proceeds. [RESERVED]
3.18.060 Business License Tax --Dumping. Subject to the provisions of this
code relating to the escalation of business license taxes due to increases in the cost of living
as set forth in Section 5.08.490, there is imposed on each person engaged in the business
of dumping of materials, including, but not limited to, Class I, Class II or Class III
materials, or in the business of providing space for the dumping of such materials, whether
as owner or operator and whether for rehabilitation or not, other than for grading of a
particular site under the grading ordinance of the city, a business license tax of one
thousand dollars ($1,000.00) per year.
3.18.070 Reprocessing Tax. [RESERVED]"
SECTION 2. Effect of Other Measures. Sections 5.08.430 and 5.08.440 are
repealed. The current mining tax measure is found in Title 5 dealing with Business Taxes,
Licenses, and Regulations. The intent is to consolidate the Mining Tax Measures in Chapter 3.18
under Title 3 dealing with Revenue and Finance. If this Measure passes, and the special Tax
Measure fails, then the City Council may renumber the provisions hereof as the Council deems
appropriate.
SECTION 3. Modification by Council. Notwithstanding this Ordinance's adoption
by the People, the City Council shall be free to amend any provision hereof through the regular
process of adoption of ordinances under State law, provided that the amendment is consistent with
the intent hereof, furthers the purposes of this Chapter, and except that the tax rate may only be
increased by the People.
SECTION 4. Severability. If any phrase, clause, sentence, subsection, or section
of this Ordinance is for any reason held to be invalid, such invalidity shall not affect the validity
of any other part of this Ordinance. The People hereby declare that they would have passed this
Ordinance and each phrase, clause, sentence, subsection, or section hereof irrespective of the fact
that any one or more of such phrases, clauses, sentences, subsections, or sections had been
declared invalid. Any court reviewing the validity of this Ordinance shall interpret it insofar as
possible as to make it valid and binding, and to carry out the intent of the voters to create a fund
to pay for the foregoing measures to the full extent permitted by law.
PASSED, APPROVED AND ADOPTED by the People on the 2nd day of March, 1999.
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YOR, CITY OF RWINDALE