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HomeMy WebLinkAbout5.a. SKB 2016 Small Scale Mineral Extraction Permit Renewal E X E C U T I V E S U M M A R Y Planning Commission Meeting Date: January 26, 2016 Tentative City Council Meeting Date: February 16, 2016 AGENDA ITEM: Case 16-02-ME: Renewal of the SKB Environmental Small Scale Mineral Extraction Permit at the Ped/Kuznia Properties for 2016 AGENDA SECTION: Public Hearing PREPARED BY: Kim Lindquist, Community Development Director AGENDA NO. 5.a. ATTACHMENTS: Site Map, Draft 2016 Conditions, Applicant’s Narrative, Present Conditions and 2016 Mine Plan, Reclamation Plan APPROVED BY: K.L. RECOMMENDED ACTION: Motion to recommend the City Council renew the SKB Environmental, Inc. Mineral Extraction Permit for 2016, subject to the terms and conditions in the attached 2016 Draft Conditions for Mineral Extraction. SUMMARY Applicant: SKB Environmental, Inc. Property Owner(s): K Larson, G Kuznia, & K Ped Location: 4992 145th Street East Area in acres: Ped – 80 Acres, the East half along Co. Rd. 42. Kuznia – 80 Acres, the West half along Co. Rd. 42. Mining area: Approximately 15 acres Comp. Guide Plan Designation: BP – Business Park, MDR - Medium Density Residential and LDR - Low Density Residential Current Zoning: AG - Agriculture The applicant, SKB Environmental, Inc., requests renewal of their existing mineral extraction permit for the properties located at 4992 145th Street East. The subject properties are owned by Karin Larson, Kimberly Ped, and Grace Kuznia and are located approximately 1 ½ miles east of US Highway 52 and south of County Road 42. The applicant and operator of the pit, SKB Environmental, requests no changes to the existing permit conditions and plans to continue mining in Phase One and the western half of Phase Two to the lowest approved elevation of 840 feet. Staff recommends approval of this request based upon review of the information submitted by the applicant, the mineral extraction standards in Section 11-10-4 of the City Code, the attached draft permit and City Police records. BACKGROUND According to the applicant, the Ped/Kuznia site experienced an increase in activity during 2015. In 2014, SKB removed just over 65,000 tons of material from the pit with 126,680 tons of material removed last year. Mining occurred primarily in Phase One and the western half of Phase Two. A small area of the mine has reached the lowest approved elevation of 840 foot. As a reminder, the groundwater elevation under the mine is estimated at the 810 foot elevation. 2 Staff is aware that the lease SKB is operating under will cease in 2016. According to information from the SKB representative, mining will stop and the entire site fully reclaimed by June 30, 2016. Unfortunately, the reclamation plan on file represents reclamation of the entire site after full mining. The applicant needs to provide a reclamation plan for the existing conditions. They have indicated that they would try to have an updated plan by the Planning Commission meeting but definitely by the scheduled Council meeting. Staff gave direction that a reasonable slope across the site is desirable so that future development is not inhibited by the previous mining operation. The applicant also noted that haulback has not occurred recently and they do not intend to bring any new material unto the site due to the short term of the lease. They anticipate being able to perform reasonable site reclamation with the existing material already on site. ISSUE ANALYSIS The subject property is zoned AG – Agriculture and meets or exceeds the applicable performance standards for small scale mineral extraction. Small scale mineral extraction is listed as an interim use within the Agriculture district. The table below details the zoning, current land use and future land use information for the surrounding properties. None of the sites are located within the current Metropolitan Urban Service Area (MUSA). It should be noted that some of the agricultural uses include associated residential uses. Surrounding Land Use and Zoning Information Direction Current Land Use Guided Land Use Zoning North Agriculture Commercial, Business Park & Light Industrial Agriculture South Agriculture Medium Density Residential (west half) Business Park (east half) Agriculture Preserve East Agriculture/Mining Business Park, Medium and Low Density Residential Agriculture West Agriculture Commercial, Business Park & Medium Density Residential Agriculture The Ped/Kuznia mine is accessed by a joint access road with the Danner mine on the western edge of the Ped property line. The applicant maintains a private access agreement with Danner to coordinate mining levels and allow continued access to the site. As a part of the annual review of all mineral extraction permits, staff performs an inspection of the site and consults with the Rosemount Police Department regarding any police activity. No ordinance or permit condition violations were apparent during the inspection. Police records found no incidents at the subject property during 2016. CONCLUSION & RECOMMENDATION Staff recommends renewal of the Ped/Kuznia Mineral Extraction Permit for 2016. The recommendation recognizes that the site will not be mined for the entire calendar year and that reclamation of the site will be required by December 31, 2016. The revised reclamation plan has not been submitted but the application is requesting approval of the permit, with the caveat that a final plan would be submitted prior to review and approval by the City Council. The applicant may be able to bring the plan to the Planning Commission at the meeting. Staff can support this approach since the item would not move forward to the Council until an acceptable reclamation plan was submitted. The approval is subject to the conditions listed in the draft permit as well as the mineral extraction standards outlined in Section 11-10-4 of the City Code. 2015 Mining Permit SKB Environmental, Inc../Ped -Kuznia Page 1 of 7 Small Scale Mineral Extraction Permit 2016 Conditions for Small Scale Mineral Extraction Permit Renewal SKB ENVIRONMENTAL, INC. (PED-KUZNIA) A. SKB Environmental, Inc. (hereinafter the “Operator”) shall sign a written consent to these conditions binding itself and its successors and assigns to the conditions of this permit. Karin L. Larson, Kimberly K Ped and Grace Kuznia (hereinafter the “Owner”) shall sign written acknowledgment and consent to these conditions and to issuance of this permit in the form set forth at the end of these conditions. B. The property Owner shall comply with all terms of this permit as well as the standards for mineral extraction listed in Section 11-10-04 of the City Code. C. This permit is granted for the area designated as Phase One and the western half of Phase Two as shown on the Mining Plan dated April 14, 2011 (Exhibit A, which is attached hereto). However, the applicant shall not proceed into eastern half of Phase Two without completing all reclamation requirements of this permit for Phase One. D. The term of the permit shall extend from January 1, 2016 until December 31, 2016 unless revoked prior to that for failure to comply with the permit requirements. A mining permit fee of $370.00 shall be paid to the City of Rosemount. E. All required permits from the State of Minnesota, County of Dakota and City of Rosemount (hereinafter "City") or any of their agencies shall be obtained and submitted to the City prior to the issuance of the permit. Failure by the Operator to comply with the terms and conditions of any of the permits required under this paragraph shall be grounds for the City to terminate said mining permit. F. The final grading for the permit area shall be completed in accordance with Reclamation Plan dated XXXX which will be submitted prior to City Council review (Exhibit B, which is attached hereto), or as approved by the City Engineer, and any other conditions that may be imposed by the City from time to time. G. All gravel trucks shall enter and exit the mining area from County State Aid Highway 42 (CSAH 42) from the joint access between the Danner and Ped properties and the designated truck route to (and from) the site shall be CSAH 42, west to State Trunk Highway 52 (STH 52), north on STH 52 to the City boundary. It shall be the Operator’s responsibility to obtain easements for ingress and egress. The location of the accesses and/or easements for ingress and egress shall be subject to approval by the City, as well as the County Highway Department or the Minnesota Department of Transportation if applicable or if any changes occur relative to the mining process. H. A gate must be placed at the driveway entrance that shall be secured after hours. The operator shall also install and maintain “No Trespassing” signs consistent with the standards outlined in Minnesota State Statute 609.605. 2015 Mining Permit SKB Environmental, Inc../Ped -Kuznia Page 2 of 7 I. The Operator shall clean dirt and debris from extraction or hauling operations related to the Mineral Extraction Permit from streets. After the Operator has received 24-hour verbal notice, the City may complete or contract to complete the clean-up at the Operator's expense. J. The surface water drainage of the mining area shall not be altered so as to interfere, contaminate, or otherwise affect the natural drainage of adjacent property. K. No topsoil shall be removed from the site and the Operator shall take necessary measures to prevent erosion of the stockpiled topsoil. The location of the stockpiled topsoil shall be indicated on Exhibit A, the Mining Plan. L. Any costs incurred now or in the future in changing the location of existing public or private utilities including but not limited to pipelines, transmission structures and sewer infrastructure located within the permit area shall be the sole obligation and expense of the Operator. M. All costs of processing the permit, including but not limited to planning fees, engineering fees and legal fees, shall be paid by the operator prior to the issuance of the permit. That the Operator shall reimburse the City for the cost of periodic inspections by the City Public Works Director or any other City employee for the purpose of insuring that conditions of the permit are being satisfied. That the Operator agrees to reimburse the City for any other costs incurred as a result of the granting or enforcing of the permit. N. The daily hours of operation for the mining area shall be limited to 7:00 a.m. to 7:00 p.m., Monday through Saturday subject to being changed by the City Council. O. The Operator shall deposit with the Engineering Department a surety bond or cash escrow in the amount of Seven Thousand Five Hundred Dollars per acre ($7,500.00/acre) of active phase in favor of the City for the cost of restoration, regrading and/or revegetating land disturbed by mining activities and to assure compliance with these conditions by the Operator. The required surety bonds must be: 1) With good and sufficient surety by a surety company authorized to do business in the State of Minnesota with the right of the surety company to cancel the same only upon at least thirty (30) days written notice to the permit holder and the City. 2) Satisfactory to the City Attorney in form and substance. 3) Conditioned that the Operator will faithfully comply with all the terms, conditions and requirements of the permit; all rules, regulations and requirements pursuant to the permit and as required by the City and all reasonable requirements of the Public Works Director or any other City officials. 4) Conditioned that the Operator will secure the City and its officers harmless against any and all claims, or for which the City, the Council or any City officer may be made liable by reason of any accident or injury to persons or property through the fault of the Operator. 2015 Mining Permit SKB Environmental, Inc../Ped -Kuznia Page 3 of 7 5) The surety bond or cash escrow shall remain in effect from January 1, 2016 until July 31, 2017. 6) Upon thirty (30) days notice to the permit holder and surety company, the City may reduce or increase the amount of the bond or cash escrow during the term of this permit in order to insure that the City is adequately protected. P. The Operator shall furnish a certificate of comprehensive general liability insurance issued by insurers duly licensed within the State of Minnesota in an amount of at least Five Hundred Thousand and no/100 ($500,000.00) Dollars for injury or death of any one person in any one occurrence, bodily injury liability in an amount of at least One Million Five Hundred Thousand and no/100 ($1,500,000.00) Dollars and property damage liability in an amount of at least Two Hundred Fifty Thousand and no/100 ($250,000.00) Dollars arising out of any one occurrence. The policy of insurance shall name the City as an additional insured and shall remain in effect from January 1, 2016 until July 31, 2017. Q. Processing and crushing of materials are permitted on the site in accordance with the Sand and Gravel Mining Plan and Backfill Plan dated March 2011. No additional processing or production of materials may occur on the site and construction of any ponding areas or wash plants shall require additional City Council approval and notification of adjacent property owners, except as approved by the Dakota County Environmental Health Department as incidental to a sand and gravel mining operation. Any such activities will be enclosed with cyclone fencing, or as approved by City staff, and the fencing shall be properly maintained. R. The Operator and the Owner shall hold the City harmless from all claims or causes of action that may result from the granting of the permit. The Operator and the Owner shall indemnify the City for all costs, damages or expenses, including but not limited to attorney's fees that the City may pay or incur in consequence of such claims. S. The Operator comply with such other requirements of the City Council as it shall from time to time deem proper and necessary for the protection of the citizens and general welfare of the community. T. Complete mining and reclamation is required in all phases before any additional mining is authorized. Modifications or expansion of the mining areas must be approved in writing buy the City. U. The Operator shall incorporate best management practices for controlling erosion and storm water runoff as specified by the Minnesota Pollution Control Agency and the United States Environmental Protection Agency. V. The Operator shall receive all applicable permits and follow all appropriate regulations of all federal, state, or county agencies. W. The Reclamation Plan (Exhibit B) shall be coordinated with any abutting Mineral Extraction site to insure matching conditions and final grades along any adjoining property line(s). Reclamation shall include the replacement of the entire stockpile of topsoil on the mined area, reseeding and 2015 Mining Permit SKB Environmental, Inc../Ped -Kuznia Page 4 of 7 mulching necessary to re-establish vegetative cover for permanent slope stabilization and erosion control. The minimum depth of topsoil shall not be less than two inches after reclamation. No restored slopes may exceed a gradient of 25% or four to 1 (4:1) except there shall be no greater than an eight (8) percent slope from the eastern property line of the Kuznia property to the existing grade of the site to insure proper conditions for any future roads. X. The storage of equipment (unrelated to the sand and gravel mining and processing), manure, construction debris, or hazardous materials of any kind shall not be permitted on site. The placement of construction debris, manure, asphalt in any form or hazardous materials within the pit as fill shall be strictly prohibited. Y. The fill area regrading and reclamation shall follow the procedures described in the Sand and Gravel Backfill Protocol dated 2011 including a bi-annual report submitted to the City describing the quantities of material brought in, where the material came from, and the test result of the material including supporting analytical results. Z. Mining to the elevation of 840 feet above mean sea level provided that the site is reclaimed to the elevation shown on Exhibit XXXX. No haul-back is proposed for the 2016 calendar year. Should haul-back be brought to the site, it must comply with the Sand and Gravel Backfill Protocol dated March 2011. In no instance shall mining occur in the groundwater aquifer. AA. Blasting or the use of explosives is prohibited in the mining of the SKB Environmental, Inc. operation. BB. The City of Rosemount shall have the ability to collect independent soil and water samples. 2015 Mining Permit SKB Environmental, Inc../Ped -Kuznia Page 5 of 7 Karin L. Larson, Kimberly K Ped and Grace Kuznia, Minnesota residents and owners of the properties for which this permit is issued, hereby consent and agree to the issuance of a mineral extraction permit for said properties and to the imposition of the foregoing conditions. Owners further agree and consent to entry onto said properties by the City, its officers, agents, contractors and employees and by the surety of the bond issued in accordance with paragraph O, its officers, agents, contractors and employees to take any action deemed necessary by the City to enforce and assure compliance with the conditions of this permit and law. Owners further agree that they will not bring any claims or legal actions against the City, its officers, agents, contractors or employees for damages arising out of issuance of this permit or administration or enforcement by the City of the conditions of this permit or of law. The foregoing agreements of Owners shall run with the land of said properties and shall bind the Owners, their heirs, successors and assigns. By: Karin L. Larson By: Kimberly K Ped By: Grace Kuznia STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2015 by Karin L. Larson, Minnesota resident and property owner. Notary Public 2015 Mining Permit SKB Environmental, Inc../Ped -Kuznia Page 6 of 7 STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2015 by Kimberly K Ped, Minnesota resident and property owner. Notary Public STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2015 by Grace Kuznia, Minnesota resident and property owner. Notary Public 2015 Mining Permit SKB Environmental, Inc../Ped -Kuznia Page 7 of 7 That _________________________ of SKB Environmental, Inc., the operator, hereby consents and agrees to the foregoing conditions of said mining permit. SKB Environmental, Inc. By: Its: _______________________ STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2015 by _______________________ of SKB Environmental, Inc., the operator. Notary Public 0 City of Rosemount Mineral Extraction Permit License Application—Calendar Year 2016 Application In 2015,SKB Environmental, Inc. mined a portion of the Ped-Kuznia properties on 1451h Street in the City of Rosemount in accordance with the City of Rosemount's Permit approved at the May 20, 2015 City Council Meeting. SKB has attached the last two surveys to this application. With these two drawings, you can see that the mining principally took place in Phase 1 of the five approved phases. Comparison of the two drawings indicates that 126,680 cubic yards of material were mined and sent off site between November 2014 and November 2015. The November 2015 drawing indicates that the lowest elevation of mining was to an elevation of 840. Once an area that is conducive to reclamation, and won't interfere with mining operations;SKB will begin reclamation activities. In 2016,SKB will continue to principally mine in the area designated as Phase 1 on the approved plans. SKB is not requesting any other modifications to the conditions of its 2015 mining permit, and wishes to just continue its operations for 2016 with a new permit issued by the City of Rosemount.