HomeMy WebLinkAbout758ORDINANCE NO.758
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 REQUIRED ANNUAL DEPOSIT
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; and
WHEREAS, Ordinance No. 754 amended the Reclamation Fund Cap to the reduced
amount of $13,400,000, as well as amended the required annual deposit from the Mining
Impact Fund to $60,000; and
WHEREAS, the current pre -audit Reclamation Fund Balance is $9,965,484.87 as of
June 30, 2021. This fund balance has been accrued since 2004 with annual deposits from
the Mining Impact Fund and interest earnings; and
WHEREAS, the Reclamation Fund Balance is made up of $4.43 million in cash
reserves, plus a CaIPERS loan to the General Fund of $5.53 million from the Reclamation
Fund. Only the cash reserve portion of the fund balance earns investment interest revenue;
and
WHEREAS, with the adoption of the FY 2021-2022 Budget on June 23, 2021, the
City Council approved the full payoff of the $5.53 million CaIPERS Loan to the Reclamation
Fund, allowing the full Reclamation Fund Balance of $9.96 million to earn investment
interest; and
WHEREAS, the current operating mining quarries have an estimated active life of at
least 20 years, thereby providing a 20-year timeframe for the growth of the Reclamation
101005.00201737512.1 Ordinance No. 758
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Fund Cap required of $13,400,000 by interest earnings only, without the need for the
required annual deposits, 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:
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 (deleted text, if any, is shown in
trikethm gb-, new text, if any, is shown in bold & italics).
"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 shall not will -make any deposits per year from
the Mining Impact Fund. The reclamation fund shall accrue with interest
earnings only until such time as the aggregate amount of the reclamation fund,
including interest and prior 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
Ordinance No. 758
Page 2
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 70130 [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 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. Severabiiity. 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 October, 2021.
H. Manuel Ortiz, Mayor
301005,0020/737512.1 Ordinance No. 758
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ATT
iwof)/p -"W
ra M. Nieto, MMC
�f Deputy City Clerk
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. 758 was introduced for first reading at a regular meeting
of the City Council of the City of Irwindale held on September 8, 2021, and adopted on
second reading at a regular meeting of the City Council of the City of Irwindale held on
October 13, 2021, and was carried by the following -roll call vote:
AYES: Councilmembers: Ambriz, Breceda, Burrola, Garcia, Mayor 1 Chair Ortiz
NOES: Councilmembers: None
ABSENT: Councilmembers: None
ABSTAIN: Councilmembers: None
ado
C
au a M. Nieto, MMC
hi f Deputy City Clerk
AFFIDAVIT OF POSTING
I, Laura M. Nieto, Chief Deputy City Clerk, certify that I caused a copy of Ordinance No. 758,
by the City Council of the City of Irwindale at its regular meeting held October 13, 2021, to be
the City Hall, Library, and Post Office on October 20, 2021.
1114 l Lm Jr • %_ - 4
M. Nieto, MMC
Deputy City Clerk
Ordinance No. 758
Page 4
Dated: /0