HomeMy WebLinkAbout754ORDINANCE NO. 754
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
IRWINDALE APPROVING THE AMENDMENT OF SECTION
17.60.150 OF CHAPTER 17.60 OF TITLE 17 OF THE
IRWINDALE MUNICIPAL CODE RELATED TO THE
RECLAMATION FUND CAP AND THE REQUIRED ANNUAL
CONTRIBUTIONS
A. RECITALS
WHEREAS, the Reclamation Fund was established in 2004 to create a financial
assurance fund for the reclamation of mined quarries owned by the City's three major mining
operators: United Rock Products Corporation, Hanson Aggregates, and Vulcan Materials
Company; and
WHEREAS, the Reclamation Fund Cap required was originally set by Irwindale
Municipal Code section 17.60.150 at $18,500,000, as outlined in detail in Ordinance No.
584, for the active quarries at that time. Another $2,400,000 was approved when the Olive
Pit License Agreement was executed, for a total of $20,900,000; and
WHEREAS, since the establishment of the Reclamation Fund in 2004, the
reclamation of three quarries have either been completed or are near completion, thereby
reducing the Reclamation Fund Cap required by $7,500,000.
WHEREAS, the Reclamation Fund Cap may now be reduced to a Reclamation Fund
Cap of $13,400,000; and
WHEREAS, the current Reclamation Fund balance is $9,905,484.87 as of June 30,
2020. This fund balance has been accrued since 2004 with annual transfers from the Mining
Impact Fund and interest earnings; and
WHEREAS, the current operating mining quarries have an estimated active life of at
least 20 years, thereby providing a revised timeframe for the growth of the amended
Reclamation Fund Cap required of $13,400,000; and
WHEREAS, if interest earnings come in higher than projected, resulting in the
Reclamation Fund Cap being reached earlier than the 20 years, the Cap will be maintained
at the $13,400,000 mark, and per Section 17.60.150(A) of the Irwindale Municipal Code any
amounts exceeding the Cap will be place in the General Fund.
B. ORDINANCE
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF IRWINDALE DOES
HEREBY ORDAIN AS FOLLOWS:
Ordinance No. 754
Page 1
Section 1. The City Council of the City of Irwindale finds the above recitals are true
and correct and are incorporated herein by this reference.
Section 2. Section 17.60.150 of Chapter 17.60 of Title 17 of the Irwindale Municipal
Code is amended and shall now read as follows:
"A. There is authorized a reclamation fund derived from existing revenue collected
under the special mining tax in the Mining Impact Fund pursuant to Chapter 3.18
of this code. 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 sixty thousand dollar deposit per year from the
Mining Impact Fund 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 in this section.
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(B) of
this chapter. The reclamation fund cap shall be a total of thirteen million four
hundred thousand dollars. The reclamation fund cap shall be determined based
on which operators participate, and shall be allocated according to subsection
17.60.150(C) of this chapter.
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 one
hundred percent; 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.
D. Nothing in this chapter shall prevent the city from utilizing the authority under
Public Resources Code Section 2773.1 or SMARA Regulations Sections
3806.1 and 3806.2 to establish financial assurances to establish appropriate
financial assurances for operations or mining sites owned or operated by the
Ordinance No. 754
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city or its related agencies. Such financial assurances may be established by
city in its sole discretion and separate from the requirements or procedures
under this Section 17.60.150 or Section 17.60.160."
Section 3. Severability. If any section, subsection, sentence, clause or phrase
of this ordinance is, for any reason, held to be invalid or unconstitutional, such decision
shall not affect the validity or constitutionality of the remaining portions of this ordinance.
The City Council hereby declares that it would have passed this ordinance, and each
section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any
one or more sections, subsections, sentences, clauses or phrases be declared
unconstitutional due to the writs of mandate issued by the Court.
Section 4. Certification and Effective Date. 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. This ordinance shall be in effective on the
thirtieth (30th) day after the day of its adoption.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council
of the City of Irwindale this 13th day of January, 2021.
ATTEST:
a ra M. Nieto, MMC
9 e Deputy City Clerk
H. Manuel Ortiz, Mayor
Ordinance No. 754
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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF IRWINDALE )
I, Laura M. Nieto, Chief Deputy City Clerk of the City of Irwindale do hereby certify
that the foregoing Ordinance No. 754 was introduced for first reading at a regular meeting
of the City Council of the City of Irwindale held on December 9, 2020, and adopted on
second reading at a regular meeting of the City Council of the City of Irwindale held on
January 13, 2021, and was carried by the following -roll call vote:
AYES: Councilmembers: Ambriz, Breceda, Burrola, Garcia, Mayor Ortiz
NOES: Councilmembers: None
ABSENT: Councilmembers: None
ABSTAIN: Councilmembers: None
Nieto, MMC
>uty City Clerk
AFFIDAVIT OF POSTING
I, Laura M. Nieto, Chief Deputy City Clerk, certify that I caused a copy of Ordinance No. 754
adopted by the City Council of the City of Irwindale at its regular meeting held January 13, 2021, to be
posted at the City Hall, Library, and Post Office on January X, 2021.
A
/n lnn V
/l a / Y (_ Dated: Citi!
Laieto, MMC
Cief Deputy City Clerk
Ordinance No. 754
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