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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 Ordinance No. 584 Page 1 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 Page 2 ($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 Ordinance No. 584 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) Ordinance No. 584 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 FE FL