HomeMy WebLinkAbout584ORDINANCE NO. 584
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF IRWINDALE AMENDING CHAPTER 17.60,
QUARRY ZONE, OF THE IRWINDALE MUNICIPAL CODE
ESTABLISHING A RECLAMATION FUND TO PROVIDE ADDITIONAL
RECLAMATION SECURITY FOR THE PROPER RECLAMATION OF CERTAIN
MINING SITES IN THE CITY OF IRWINDALE
RECITALS
A. Chapter 17.60 of the Irwindale Municipal Code ("IMC") governs the
allowable uses and standards for such uses applicable to the operation
of mining quarries and processing plants (collectively "quarry(ies)") in
the Quarry Zone of the City of Irwindale.
B. The City's Charter, at Article XIII, recognizes that mining and
processing operations impose negative environmental impacts on the
City and that the City's goal is to restore quarries to beneficial,
alternate end uses.
C. Based on these findings, Article XI II authorizes the City to adopt
regulations that address these goals, including measures to address
financial assurance and security needs to ensure successful
reclamation of quarries.
D. Under Chapter 3.18 of the IMC, the City adopted a special mining tax
imposed upon excavation and processing of rock materials in the City.
Pursuant to Section 3.18.050 thereunder, revenues collected from the
special mining tax are deposited into the Mining Impact Fund
administered by the City's director of finance.
E. The City Council has determined that successful reclamation of
quarries is a top priority and has placed significant resources dedicated
to enforcing requirements under the IMC, Surface Mining and
Reclamation Act of 1975 ("SMARK) and implementing State Mining
and Geology Board Reclamation Regulations ("SMGB Regulation(s)"),
to require operators of quarries to post adequate financial assurances.
F. Although the obligation to secure such reclamation is placed upon the
operators of quarries under the IMC, SMARA and SMGB Regulations,
the City nevertheless finds that there is a risk that quarry operators
may fail to fulfill the reclamation goals of the City. The City Council
therefore wishes to provide additional safeguards in instances where
operators' financial assurances prove inadequate to successfully
reclaim the quarries, and provide resources to potential developers of
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the quarries so that they may be converted to beneficial, alternate end
uses.
G. To protect and promote the public health, safety and welfare by further
ensuring the successful reclamation and ultimate development of
quarries, the City wishes to establish a reclamation fund derived from a
portion of the special mining tax imposed on mining operators under
IMC Chapter 3.18 and withdrawn from the Mining Impact Fund, to
provide the City additional resources for the successful reclamation of
quarries.
H. The purpose of the Mining Impact Fund is, in part, 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 reclamation of properties damaged by mining and processing
activities, as further analyzed in the City's 1999 Mining Study.
The City has determined that the costs of financial assurances to
require reclamation of properties to street level or other useful
condition may be difficult to achieve, and as such, finds that it is in the
best interest of the City to provide additional resources through the
reclamation fund created hereunder to assist with reclamation
consistent with the City Council's desires. fl
All legal prerequisites to the adoption of this Ordinance have occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
IRWINDALE HEREBY ORDAINS AS FOLLOWS:
Section 1. The City Council hereby specifically finds that all of the facts
set forth in the Recitals of this Ordinance are true and correct.
Section 2. The City Council hereby amends Chapter 17.60 of the
Irwindale Municipal Code, to add new sections 17.60.150 through 17.60.170, to
read as follows:
17.60.150 Creation of reclamation fund.
A. There is hereby authorized a reclamation fund derived
from existing revenue collected under the special mining tax
pursuant to chapter 3.18 of this code (the "Reclamation Fund").
The Reclamation Fund will be a separate account established for
the purposes authorized in this chapter, administered by the
director of finance as a special fund of the city and invested in the
manner authorized by the city council. The city will make a one-
time nine hundred eighty-five thousand seven hundred fifteen dollar
Ordinance No. 584
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($985,715) initial deposit into the Reclamation Fund and thereafter
three hundred twenty-eight thousand five hundred seventy-two
dollar ($328,572) deposit per year until such time as the aggregate
amount of the Reclamation Fund, including interest and amounts
deposited, equals an amount determined to be the reclamation cap
(the Reclamation Cap"), as defined below. Thereafter, the city shall
not make future deposits in the Reclamation Fund. Interest on any
monies in the Reclamation Fund shall accrue to the benefit of the
Reclamation Fund and will be utilized towards reducing required
contributions by the city (since interest earnings reduce the
required contributions to reach the Reclamation Fund Cap). The
city may withdraw and place in its general fund any amounts
exceeding the Reclamation Fund Cap.
B. The Reclamation Fund is envisioned to be utilized to
assist in the reclamation of the mined quarries of the City's principal
operators, currently owned by United Rock Products Corporation
("United"), Hanson Aggregates West, Inc. ("Hanson"), and CalMat
Co. doing business as Vulcan Materials Company — Western
Division ("Vulcan"). To participate, such operators must enter into
an Operating Rights Transfer Agreement as provided in subsection
17.60.160.13. The Reclamation Fund Cap shall be determined
based on which operators participate, and shall be as follows (or
the cumulative amount of the following where more than one
operator enters into the Operating Rights Transfer Agreement):
1. United: $8,000,000;
2. Hanson: $3,500,000;
3. Vulcan: $7,000,000.
C. The Reclamation Fund shall be allocated for use in
supplementing reclamation of the participating quarries as
authorized under this chapter in a manner that is proportional to the
financial assurances posted with the city by each participating
quarry (i.e. if only one operator participates, the allocation is 100%;
if two, for example United and Hanson, then the allocation is
approximately 70/30 [8/11.5 = .70). Such allocation shall be
computed and monitored by the director of finance.
17.60.160 Purpose and uses of Reclamation Fund.
A. The purpose of the Reclamation Fund is to provide a
pledge of revenue to satisfy the requirements of SMARA, at Public
Resources Code section 2773.1. The Reclamation Fund is
intended to provide resources to potential developers of the
participating quarries so that they may be converted to beneficial,
alternate end uses. To this end, the Reclamation Fund shall
provide a means of supplementing financial assurances required by
the SMARA and posted by those mining operators in the city that
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Page 3
wish to participate in the reclamation of their quarries to standards
sought by the city.
B. In accordance with SMARA Regulations sections
3806.1 and 3806.2, the Reclamation Fund may be expended by the
city, its designee or where required under SMARA, the Department
of Conservation, to reclaim to beneficial, alternate uses those
participating quarries where an assignment of SMARA operating
rights in a form approved by the city and the Department of
Conservation ("Operating Rights Transfer Agreement") has been
approved and entered into.
C. City shall have sole control of the use, investment and
management of the Reclamation Fund, subject only to the
limitations in this chapter.
D. The city may implement the provisions hereof by the
formation of a joint powers authority authorized to accept operating
rights as to private quarry operations, to contribute to the provision
of financial assurances for reclamation, and to act to remedy
defaults in the performance of reclamation, all in accordance with
SMARA and the IMC.
17.60.170 Dissolution of and withdrawals from Reclamation
Fund.
A. The city may dissolve and/or return moneys in the
Reclamation Fund to the city's mining fund upon the occurrence of any of 1100)
the following:
1. The determination by any court or governmental
agency of competent jurisdiction that the special mining tax under chapter
3.18 of this code is invalid.
2. The determination by any court or governmental
agency of competent jurisdiction that the JPA created hereunder,
Reclamation Fund or its use is contrary to law.
3. The voluntary or involuntary termination by any quarry
operator of its participation in its assignment of SMARA operating rights,
as described in this chapter, as to amounts attributable to that operator's
quarry(ies).
4. As each participating quarry is reclaimed, the
balance in the Reclamation Fund shall be reduced in an amount of
such participating reclaimed quarry to the total financial assurances
for all participating quarries, as determined by the director of
finance. Any such amounts withdrawn from the Reclamation Fund
shall be returned to the city's mining fund.
5. Monies remaining in the Reclamation Fund
after reclamation of all quarries is completed shall be returned to
the city's mining fund, so long as such fund exists, and thereafter to
the city's general fund. 110)
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Page 4
6. Should any portion of the Reclamation Fund be
used to correct a default of any quarry, the quarry operator shall
pledge all future filling revenues to the city for deposit into the
Reclamation Fund until such time as the deficit to the Reclamation
Fund cased by such expenditure is cured. Unless used to cure any
further default of the quarry operator, any amounts so deposited
into the Reclamation Fund, plus any accrued interest, shall be
returned to the quarry operator at termination of reclamation in
accordance with the Reclamation Fund.
B. Upon dissolution of the Reclamation Fund, the city shall
notify the participating quarries and Department of Conservation within 60
days of such dissolution.
Section 3. Except as expressly amended herein, the remaining portions
of Chapter 17.60 shall remain unmodified and in full force and effect.
Section 4. This Ordinance shall be in full force and effect thirty (30)
days after its passage.
Section 5. The City Clerk shall certify as to the passage and adoption of
this ordinance and shall cause the same to be posted at the designated locations
in the City of Irwindale.
f PASSED, APPROVED AND ADOPTED THIS
TEST:
Eifida J. KhcRYro, CMC
Deputy City Clerk
3rd DAY OF AUGUS
L&-�
rk A. Breceda, Mayor
Ordinance No. 584
Page 5
STATE OF CALIFORNIA }
COUNTY OF LOS ANGELES } ss.
CITY OF IRWINDALE }
I, Linda J. Kimbro, Deputy City Clerk of the City of Irwindale, do hereby
certify that the foregoing Ordinance No. 584 was duly introduced at a regular
meeting of the Irwindale City Council held on the 20th day of July 2004, and was
duly approved and adopted on second reading at its regular meeting held on the
3rd day of August 2004, by the following vote of the Council:
AYES: Councilmembers: Miranda, Tapia, Garcia, Ramirez, Mayor Breceda
NOES: Councilmembers: None
ABSENT: Councilmembers: None
ABSTAIN: Councilmembers: None
11 -
da J. ' bro, CMC
Deputy City Clerk
AFFIDAVIT OF POSTING
I, Linda J. Kimbro, Deputy City Clerk, certify that I caused a copy of Ordinance No. 584 adopted by the City
Council of the City of Irwindale at its regular meeting held August 3, 2004, to be posted at the City Hall, Library, and Post
/Office on August 4, 2004.
)IA I r.
tL
da J. Kimro, M Dated: August 4, 2004
Deputy City C rk
Ordinance No. 584
Page 6
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