City Council Agenda Report
Meeting Date: August 18, 2026
From: Daniel S. Wall, P.E., Director of Public Works-City Engineer Department: Public Works
Submitted by: Dulce Gonzalez, Management Analyst
Subject
Conditional Use Permit for Dyrt Labs, Inc to Operate an Indoor Food Waste Composting Facility at 2550 27th Street
Recommendation
A. Conduct a Public Hearing;
B. Find that the proposed project is categorically exempt from California Environmental Quality Act (CEQA) review pursuant to Class 32 In-Fill Developments (CEQA Guidelines 15332) and there is no substantial evidence demonstrating that an exception to categorical exemption pursuant to CEQA Guidelines, Section 15300.2 applies, as the project is consistent with the general plan, and the zoning code, the property is less than five (5) acres in size and is surrounded by compatible industrial uses, has no value as habitat for endangered, rare or threatened species, no significant adverse impacts from traffic, parking, noise, dust, dust, air quality, or water quality are expected to occur from this project, and the site can be adequately served by all required utilities and public services; and C. Adopt Resolution No. 2026-038 approving a Conditional Use Permit allowing Dyrt Labs, Inc to operate an indoor food waste composting facility at 2550 27th Street and making certain findings as necessary.
Background
A Conditional Use Permit (CUP) provides flexibility within zoning ordinances and allows for the proper integration of uses into the community that may be suitable only in specific locations, designed and constructed in a particular manner, or subject to certain conditions. A CUP requires City Council approval as noted in Chapter 17.72 of the Vernon Municipal Code (VMC), which specifies the conditions that must be met and the appropriate process for granting a CUP.
An application was submitted for a CUP (Attachment 4) allowing Dyrt Labs, Inc. (the Applicant) to operate an indoor food waste composting facility at 2550 27th Street (the Property). The facility will receive source-separated organic waste and process it into nutrient-rich compost using a proprietary in-vessel aerobic system. The finished compost is intended to rejuvenate depleted soils, improve water retention, and supply slow-release nitrogen, phosphorus, and potassium to plants. The facility will accept only non-hazardous organic waste; no other municipal solid waste will be received. The existing building is approximately 28,000 square feet on a 1.08-acre lot. No new structures will be built on the property.
Project
The proposed project is a composting operation that will employ approximately twenty-five (25) people and will operate 24 hours a day, seven days a week.
Vehicle Movements and Access
The proposed project will provide thirty-two (32) automobile parking spaces and four (4) truck loading spaces. Located on a cul-de-sac on 27th Street, the site will be accessed via the existing driveway on 27th Street, which is adequate in size and pavement type to handle the traffic generated by the proposed project. It is estimated that the project will generate approximately eighty (80) vehicle round-trips per day. Given its location, prior use, and hours of operation, the proposed project will not adversely affect traffic in the area.
Zoning and General Plan Consistency
The proposed project will be consistent with the City’s General Plan upon approval of the CUP.
Section 17.22.030 of the Vernon Municipal Code authorizes recycling facilities in the I Zone with a CUP.
CEQA Analysis
The proposed project is surrounded by compatible industrial uses, the project is consistent with the general plan, and the zoning code, the property is less than five (5) acres in size and has no value as habitat for endangered, rare or threatened species, no significant adverse impacts from traffic, parking, noise, dust, dust, air quality, or water quality are expected to occur from this project, and the site can be adequately served by all required utilities and public services. Staff have determined that the project is categorically exempt from CEQA pursuant to Class 32 In-Fill Developments (CEQA Guidelines 15332).
State and Federal Conditions
All State, Federal and local regulatory permits shall be obtained as required for the operation.
Staff Findings
Section 17.72.060 of the VMC states that a Conditional Use Permit shall not be granted unless all of the findings listed below have been made. Staff concludes that the following findings can be made, and recommends that they be made in the following manner:
a. The lot for the proposed use is adequate in size, shape, and topography, including required drainage and landscaping.
i. The project provides adequate parking and truck staging and is adequate in size, shape, and topography for the proposed use.
ii. The site will be constructed to ensure that the drainage and landscaping conform to the requirements of the VMC.
b. The use permitted will not have a material adverse impact on the public. i. The proposed site is surrounded by industrial and warehouse uses and is compatible with the proposed use. The food composting operations will occur within fully enclosed in-vessel systems housed inside the existing warehouse. The facility processes food and green waste using proprietary aerobic composting technology with carbon-filtration exhaust systems, minimizing emissions and odors. The nearest sensitive receptor (residential) is located approximately 0.85 miles (4,488 feet) southwest of the site. The facility will comply with SCAQMD Rules 402 and 410, CalRecycle Title 14 requirements, and all conditions of approval.
ii. Operations support California's SB 1383 mandate to reduce organic waste in landfills by 75%, providing a public benefit through waste diversion and greenhouse gas reduction.
iii. The conditions on the Project ensure that the proposed use will not adversely affect the interests of the public or the interests of other residents and property owners in the surrounding vicinity.
iv. The proposed site is adequately serviced by nearby streets that have sufficient capacity.
v. The amount of noise and traffic generated by the proposed use is negligible and will not adversely affect the public or surrounding property owners. c. The proposed use is compatible with the existing authorized uses on surrounding and adjacent properties.
i. The proposed use is similar to manufacturing, transportation and warehousing uses of surrounding and adjacent properties.
d. The lot has adequate off-street parking and loading facilities, and vehicle maneuverability for the proposed use.
i. The lot will provide adequate off-street parking and loading facilities. ii. All parking and loading activities will remain within the existing lot and will not interfere with vehicle maneuverability or traffic flow and will not affect neighboring properties.
e. The location, operation and design for the proposed use are consistent with the General Plan, any applicable specific plan and the City’s zoning regulations. i. The proposed use is consistent with the City’s Zoning Code and General Plan with the approval of a CUP
f. The use is consistent with all applicable Federal, State, and local laws, rules and regulations.
i. The proposed use is consistent with all applicable Federal, State, and local laws, rules and regulations because the conditions of approval require the Applicant to obtain and maintain all required permits.
g. The proposed use will not have a significant adverse impact on the general welfare as a result of noise, increased traffic, interference with the flow of traffic, or dust. i. The proposed project will not adversely impact the general welfare because sufficient parking, loading and maneuvering will be provided on site. The project has access to 27th Street, which is of adequate size and pavement type to handle the traffic generated by the proposed project.
ii. The proposed project will not cause excess noise or dust. h. The conditions applied to the permit are necessary to protect the public health, safety, and general welfare.
i. All of the conditions imposed on the Project are necessary to protect the public health, safety and general welfare because the conditions are limited in nature and ensure that the property is used in a manner consistent with that represented by the applicant.
Conditions
Staff recommend that the following conditions be imposed on the permit. These conditions are necessary to protect the public health, safety and general welfare:
a. The facility shall be operated in accordance with all current codes, rules, and regulations adopted by the City of Vernon, the State of California and other governmental agencies not otherwise addressed by this CUP, and is subject to all applicable fees. b. The facility shall be operated in a manner that prevents unsanitary conditions, vermin, odors and other nuisances.
c. The in-vessel digestion operation shall be conducted entirely within the building. No operation or material staging shall occur outdoors.
d. All work shall conform to City Standards. No changes shall be made to the approved site plan or installed equipment except with the prior approval from the Director of Public Works – City Engineer.
e. The facility shall be operated in a manner that will not impede traffic on 27th Street. No truck maneuvering, truck staging or truck parking associated with the facility shall take place offsite or on the public street without prior approval from the Public Works Department.
f. The property owner and any successors in interest shall indemnify, hold harmless and defend the City of Vernon, its officers, agents and employees from and all claims, complaints or petitions for: (1) damages, losses expenses resulting from bodily injury, sickness, disease, disability or death arising from the operation of the facility excluding claim resulting from the sole negligence or intentional misconduct of the City, its officers, agents or employees; (2) a peremptory writ or other relief by way of injunction, mandamus, or administrative mandamus; and (3) legal expenses and attorney’s fees incurred by the City of Vernon on behalf of any party in such actions. The City of Vernon does not waive its right to participate in the defense of any such action.
g. The facility shall conform with South Coast Air Quality Management District (SCAQMD) Rule 402 (Nuisance) and Rule 410 (Odors from Transfer Stations and Waste Recovery Facilities).
h. The facility shall meet all applicable requirements of Section 17407.2 (Cleaning) of Title 14 of the California Code of Regulations.
i. The Permittee shall provide the City with a Pest Control Management Plan for review and approval by the City prior to commencing operations and shall implement approved plan.
The City may require modifications to the plan at any time.
At a minimum, the plan shall include the following:
• Assessment and Identification
• Prevention Strategies
• Treatment Methods
• Monitoring and Maintenance
• Documentation and Compliance
j. The Permittee shall submit a Waste Management Plan for City review and approval prior to commencing operations and shall implement the approved plan. The City may require modifications to the plan at any time.
At a minimum, the plan shall include the following:
• Waste source identification
• Waste collection and handling
• Composting process management
• Facility maintenance and safety
• End-Product Utilization
k. The Permittee shall provide an Odor Management Plan for City review and approval prior to commencing operations and shall implement the approved plan. The City may require modifications to the plan at any time. At a minimum, the plan shall require the following:
• Minimizing onsite waste storage, in both the facility and loaded trailers, by immediately loading odorous or potentially odorous waste into composting vessels.
• Incorporating odor neutralizing systems.
• Remove all waste from the tipping floor/pit and box at the end of each operating day, then clean those areas to remove residual material. • Use enclosed trailers whenever loaded trailers must sit on site temporarily before transfer.
• Remove containers, trailers and trucks containing waste from the site at the end of each operating day.
• ”First-in, first-out” waste handling so that waste does not sit on site for extended periods.
• Regular cleaning of site, building catch basins, floor drains, and drainage systems to prevent buildup of odor-causing residue.
• Periodic treatment of drainage systems with odor-neutralizing and bacteriainhibiting solutions. • Diversion of odorous waste loads to other facilities during adverse weather conditions.
• Refusal of highly odorous waste.
• Practicing other “good housekeeping” measures, including regularly cleaning and disinfection of containers, equipment, and surfaces that contact waste. • An overhead misting system for dust and odor control, with odor neutralizers distributed through nozzles at building entrances, above the tipping floor and at the trailer load out area. The system shall remain operational during all receiving hours and whenever waste-handling activities occur.
l. The Permittee shall submit a Liter Control Plan for City review and approval prior to commencing operations. The City may require modifications to the plan at any time. At a minimum, the plan shall require:
• Installation, at each point of vehicle egress from the site, a wheel shaker/wheel spreading device consisting of raised dividers (rails, pipes, or grates) at least 24 feet long remove bulk waste from tires and vehicle undercarriages before vehicles exit the site. Devices shall be maintained as necessary to remove accumulated waste.
• Removal, by the end of each workday or shift, of all waste tracked onto the public right-of-way by vehicles entering or exiting the site, including waste liquids, regardless of distance from the site
• Regular inspection of truck seals to prevent spillage to and from the site, and compliance with all track-out mitigation requirements.
• Maintenance of current 24-hour contact information, provided to the Public Works Department, for a person authorized to promptly implement odor and litter control measures.
m. The Permittee shall maintain a daily operational log for source separated organics processed, including, the date of operation, the weight processed that day in tons per day (TPD), and the cumulative weight of processed since the beginning of the calendar month. The records shall be kept and maintained for a minimum of two years and shall be made available to the City personnel upon request.
n. All records required by SCAQMD to demonstrate compliance with its permit, including records of inspections, corrective actions, and monitoring, shall be retained for a minimum of two years and shall be made available to City personnel upon request. o. Outdoor equipment and vehicle storage and activities shall be screened or otherwise hidden so as not to be visible from the street. The screen shall be maintained in good condition.
p. The property owner shall submit written acceptance of and agreement with these conditions within thirty (30) days of the date this CUP is approved. The CUP shall be void if written acceptance is not submitted within that period. q. All structures, equipment and vehicles on or immediately adjacent to the Property shall be maintained free of graffiti. Graffiti shall be removed within 24 hours of initial discovery. r. At all times, the site shall be maintained in good condition, free of weeds, rubbish and debris, and secured from public access.
s. City staff shall inspect at least monthly to ensure compliance with these conditions. t. Noncompliance with any of these conditions constitutes grounds for the City to void this CUP, disconnect utilities, and/or pursue appropriate enforcement action including citation and/or fines for a violation.
u. Prior to commencing operations, the Permittee shall submit a Fire Prevention and Life Safety Plan addressing the storage, handling, and processing of organic material and including measures to detect and prevent self-heating and spontaneous combustion of feedstock and compost piles, for review and approval by the Los Angeles County Fire Department and the City. The facility shall at all times comply with applicable fire code requirements.
v. The Permittee shall maintain a written Employee Health and Safety Plan addressing exposure to dust, bioaerosols, and equipment hazards associated with composting operations. All employees shall be trained on the plan, which shall be made available to City personnel upon request.
w. The Permittee shall obtain and comply with all applicable stormwater discharge permits, including Industrial General Permit coverage under the National Pollutant Discharge Elimination System (NPDES) if applicable. All process water, leachate, and contact water shall be contained on site and shall not be discharged to the storm drain system. x. The facility shall comply with the noise standards set forth in the VMC. If operations result in noise levels exceeding those standards at the property line, the Permittee shall implement noise abatement measures as directed by the City. y. The facility shall not accept hazardous waste or any waste other than source-separated organic waste. The Permittee shall maintain a written protocol for identifying, rejecting, and properly disposing of any prohibited or contaminated material inadvertently received, and shall notify the City and any applicable regulatory agency within 24 hours of any such occurrence.
z. Prior to commencing operations, the Permittee shall submit a Contingency and Closure Plan describing the procedures for safely ceasing operations and removing all stored material and waste from the Property, including financial assurance in a form acceptable to the City.
aa.The Permittee shall maintain commercial general liability insurance in an amount and form acceptable to the City, naming the City of Vernon as an additional insured, and shall provide evidence of coverage annually.
bb.This CUP shall be subject to administrative review by the Director of Public Works – City Engineer one year after commencement of operations, and periodically thereafter as the City determines, to confirm compliance with all conditions of approval.
Public Hearing
In accordance with VMC Sections 17.72.040 and 17.68.040 a public hearing has been properly noticed for August 18, 2026 (Attachments 2 and 3).
Strategic Plan Goals
Goal 3: Advance Sustainability and Environmental Stewardship Fiscal Impact
There is no direct fiscal impact associated with the approval of the Conditional Use Permit.
The City received a Conditional Use Permit processing fee of $18,691, which was recorded in the General Fund, Licenses/Permits/Franchises, Conditional Use Permits Revenue Account No. 011-410-000-410280.
Attachments
1. Resolution No. 2026-038
2. Notice of Public Hearing – Proof of Publication
3. Affidavit of Mailing
4. Conditional Use Permit Application
5. Dyrt Labs Presentation