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HomeMy WebLinkAbout6.l. Renewal of the SKB Environmental Small Scale Mineral Extraction Permit at the PedKuznia Properties for 2016EXECUTIVE SUMMARY City Council Meeting Date: March 15, 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: Consent PREPARED BY: Kim Lindquist, Community Development Director AGENDA NO. 6.l. ATTACHMENTS: Site Map, Draft 2016 Conditions, Applicant’s Narrative, Present Conditions and 2016 Mine Plan, Reclamation Plan, Stormwater Pollution Prevention Plan, Excerpt of the February 23rd Planning Commission Minutes. APPROVED BY: ddj RECOMMENDED ACTION: Motion to renew the SKB Environmental Small Scale 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 up to the lowest approved elevation of 840 feet. Perhaps the main issue associated with the request is the recognition that the mining will cease in early summer and the applicant will need to accomplish site reclamation. A revised reclamation plan, per the Planning Commission approval, has been submitted and is included in the packet for final approval by the Council. The reclamation plan differs from the one previously submitted since the majority of the site has not been graded by the current applicant and therefore reclamation will only occur in Phase 1 & 2, where the applicant has operated. The main concern was to ensure there were reasonable slopes within the reclamation area to permit a future public road and also reasonable slopes for future development. The plan currently before the Council represents the revised plan which addressed these concerns. 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 2 of the City Code, the attached draft permit and City Police records. PLANNING COMMISSION During the meeting staff explained that the mining activity under this applicant would cease in late spring and that the main issue for staff was the reclamation plan. There was discussion about the grading plan and what would be satisfactory for site grades to permit a public road. The applicant indicated they were willing to modify the grading plan with the result shown in this packet. The Commission recommended approval of the request. 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- almost twice as much. 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. 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 site mined by this operator reclaimed by June 30, 2016. A revised reclamation plan has been submitted that illustrates reclamation of the graded site versus the proposed reclamation of the entire site, which would only occur after significantly more site mining. Grades around the outer edges are steep with the site more gradually graded in the center, to facilitate future development. In previous permits, there were specific standards for final reclamation including 4 to 1 slopes around the perimeter of the site with an 8% slope from the eastern property line to the existing grade of the site to ensure appropriate grades for installation of a future road. Because site grading occurred in the west, staff had requested an area of 8% to permit public road access. The submitted plan proposes an 8% slope and also a 4 to 1 slope in the south and the remainder of the west, which addressed the area disturbed by the current applicant. The City’s goal is to ensure that any site mining does not impair the ability to develop in the future. Staff is also concerned about the lack of reclamation in the central portion of Phase 2. This mining had previously occurred under a different operator and will require additional grading work to provide reasonable slopes for future development. The owner is aware of this issue and recognizes that this area is not the subject of this permit. The applicant also noted that haulback has not occurred recently and they do not anticipate bringing 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. 3 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. RECOMMENDATION Staff recommends approval of the renewal of the Ped/Kuznia Mineral Extraction Permit for 2016. 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). 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 the submitted Site Grading Reclamation Plan dated January 2016 and revised on 2/23/2016 (Exhibit B, which is attached hereto). 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. 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. 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. 5) The surety bond or cash escrow shall remain in effect from January 1, 2016 until July 31, 2017. 2015 Mining Permit SKB Environmental, Inc../Ped -Kuznia Page 3 of 7 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 January 2016. 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. 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) to the greatest extent possible. Reclamation shall include the replacement of the entire stockpile of topsoil on the mined area, reseeding and 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. Reclamation of the site must be consistent with the Council approved reclamation plan to ensure future development potential of the site. 2015 Mining Permit SKB Environmental, Inc../Ped -Kuznia Page 4 of 7 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 2016 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 the Site Grading Reclamation Plan dated January 2016. 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 January 2016. 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. Excerpt from the February 23, 2016 Planning Commission Minutes 5.a. Request by SKB Environmental, Inc. for renewal of a Small Scale Mineral Extraction Permit for 2016. (16- 02-ME) Community Development Director summarized the staff report for the Planning Commission. Chair Miller inquired why the 8% grade is acceptable here but not on Dodd Road when there was discussion last year to extend it. Lindquist stated that at this point they are not sure what would go here but most likely the developer would do their own grading. Miller also noted that low maintenance vegetation would be preferable so city doesn’t have to maintain. Lindquist explained that this is private property and the owners would maintain the property. Miller inquired about the backfill reports, last year weren’t acceptable. How does that compare this year. Lindquist stated that there have been no haul backs since last report. Commissioner Forester inquired about the time line for reclamation and when SKB will be off the site. Lindquist stated that the permit is through the end of 2016, the contract between SKB and property owner may have different terms. Commissioner Kenninger inquired what would happen if the reclamation requirements are not met. Lindquist stated it wouldn’t go to council until they are met. Commissioner Henrie inquired if there are still plans to mine phases 3 and 4 or is this end of this project. Lindquist stated that the permit is not transferable so a new application would be needed for any grading into those phases by another operator. . Ryan O’Gara with SKB Environmental was on hand to address the Commission. O’Gara stated that he has been working with the city to understand what is needed for the grading plan, and should have by the end of this week. The slope on would be closer to 2% than 8% slope in most areas. He also noted that the vegetation to be used is the standard MnDOT mix that is low maintenance. He indicated that the lease with the property owner will expire in May, and they are working to extend the contract to finish reclamation. The public hearing was opened at 6:44 pm. Public comments: None MOTION by Kenninger to close the public hearing. Second by VanderWiel. Ayes: 6. Nays: 0. Motion Passes. The public hearing was closed at 6:48 pm. Additional Comments: None Motion by VanderWiel 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 and submittal of a revised reclamation plan addressing issues raised in the staff report, prior to Council approval. Second by Forester. Ayes: 6. Nays: 0. Motion Passes.