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HomeMy WebLinkAbout540ORDINANCE NO. 540 AN ORDINANCE OF THE PEOPLE OF THE CITY OF IRWINDALE, CALIFORNIA, INCREASING THE SPECIAL TAX ON MINING AND PROCESSING ACTIVITIES WITH SUCH REVENUE PAID INTO THE MINING IMPACT FUND TO PAY FOR STUDYING, QUANTIFYING, ANALYZING, CORRECTING, AND MITIGATING NEGATIVE ENVIRONMENTAL IMPACTS CAUSED BY MINING AND PROCESSING ACTIVITIES 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 special 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 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 276/048193-0014/3217914.1 mll/24/98 -1- WHEREAS, in order 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, it is necessary to increase the current special tax of $0.0974 per ton of material processed, extracted, or produced, such monies to be placed in the Mining Impact Fund and only used for the purposes set forth herein; 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; 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; but this Measure is treated as a separate Measure as it is a special tax; and WHEREAS, as the Mining Study has determined that the current market price of Irwindale aggregate ranges from $7.00 to $9.00 per ton, and the collective mining tax, if these measures are enacted, both the special and general taxes, would be $0.60 per ton, which is approximately 7.5 percent of the cost of the product; the City believes that such percentage 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 379 in 1985, as amended by Ordinance 450 in 1991; and WHEREAS, California Constitution Article XIIIC, Sec. 2(d) requires that in order for a city to impose or increase any special tax, that tax must be submitted to the electorate and approved by a two-thirds vote. NOW, THEREFORE, THE PEOPLE OF THE CITY OF IRWINDALE, CALIFORNIA, HEREBY ORDAIN AS FOLLOWS: SECTION 1. That Title 3 of the Irwindale Municipal Code is amended by adding Section 3.18.040 to read as follows: "Section 3.18.040. Special Tax for Excavation and Processing of Rock Materials. A. Special Tax Imposed for Excavation. 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 special tax of twenty-two cents ($0.22) per ton of rock material excavated and subject to tax under Section 3.18.030. B. Special Tax Imposed for Processing. There is imposed upon each person or entity engaged in the business of processing of rock materials at any location within the City a special tax of eleven cents ($0.11) per ton of rock materials so processed. 276/048193-0014/3217914.1 m11/24/98 -2- 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. Special Tax is Additional to Existine Taxes. Assessments. and Fees. The special taxes imposed by this section are in addition to any other taxes, assessments, or fees which may be or are imposed by the Irwindale Municipal Code or other applicable law or City action. Without limiting the generality of the foregoing, any person or entity which engages in extracting and/or processing within the City would pay the general taxes under Section 3.18.030, as well as the special taxes under this Section. However, these special taxes may only be expended pursuant to the provisions of Section 3.18.050 and are limited to the purposes set forth therein. E. Cost of Living Adjustment. The special 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. Section 3.18.050. Use of Special Tax Proceeds. A. The taxes imposed by this section are special taxes pursuant to California Constitution Article XMC, Sec. 1(d), and shall not be used for "general governmental purposes," as that term is used in California Constitution Article XIUC, Sec. 1(a). For purposes of this Section, the district subject to these taxes shall consist of all that territory within the corporate limits of the City. B. The revenues collected from the special taxes imposed by this Section shall be placed into a "Mining Impact Fund", which Fund shall be administered by the Director of Finance as a special fund of the City. C. The purpose of the Mining Impact Fund is to provide a means of financing the costs of studying, quantifying, analyzing, monitoring, administering, correcting, and mitigating negative environmental impacts from mining and processing activities, including but not limited to the following impacts: Deterioration of streets and other public infrastructure facilities; 2. Degradation of air quality; 3. Public health and safety hazards caused by access routes, traffic volumes, and usage conflicts; 4. Increased noise; 5. Slope stability and slope erosion problems; 276/048193-0014/3217914.1 mlt/24/98 -3- 6. Security and safety concerns; 7. Visual blight; 8. Water quality impacts; 9. Sand, gravel, and particulate matter on public rights-of-way and properties; 10. Remediation of toxic or contaminated property resulting from mining and processing activities; 11. Reclamation of property damaged by mining and processing activities; and 12. Any other impacts resulting from mining and processing which affect public health, safety, and welfare or public property. D. The special taxes collected under this section may be expended for any purpose reasonably related to studying, quantifying, analyzing, monitoring, administering, enforcing, correcting, or mitigating negative impacts in the City from mining and processing activities, whether or not such impacts are specifically listed herein. This includes the costs of professional services related thereto such as engineering, auditing, monitoring, financial, planning, architectural, and other consulting services; City administrative expenses; and legal expenses. Legal services may include defending any legal challenge to the validity of this Chapter or any measure or action taken pursuant hereto, the cost of analyzing and preparing any implementation measure or strategy, and the cost of any legal action related to the enforcement of any program. E. This section is intended to create a funding source to be utilized by the City for the purposes set forth herein. Any expenditure shall be made in accordance with applicable law, whether set forth in the Charter, ordinance, rule, or regulation of City or other governmental agency of appropriate jurisdiction, or State or Federal law. All such expenditures shall have a public purpose and be authorized by valid and applicable law." SECTION 2. Effect of Other Measures. Section 5.08.435 is repealed. The current special 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 general tax measure creating Chapter 3.18 fails, then the City Council may renumber the provisions hereof as the Council deems appropriate. SECTION 3. Modification by Council. It is expressly understood that, as the City proceeds to implement the program for mitigation of mining environmental impacts through the special tax, that changes may be necessitated by changing environmental, regulatory, and economic factors. Therefore, notwithstanding this Ordinance's adoption by the People, the City 276/048193-0014/3217914.1 mil/24/98 El W 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, and furthers the purposes of this Chapter, 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 2' day of March, 1999. 276/048193-0014/3217914.1 mll/24/98 -5- I , ,