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HomeMy WebLinkAbout5.a. PCExecSumm Dakota Aggregates LSME Renewal 12-19-16EXECUTIVE SUMMARY Planning Commission Meeting Date: December 19, 2016 Tentative City Council Meeting Date:January 17, 2017 AGENDA ITEM: Case 16-01-MERequest byDakota AGENDA SECTION: Aggregatesto Renew their Large Scale Public Hearing Mineral Extraction Permitthrough 2017 AGENDA NO.5.a. PREPARED BY: Kyle Klatt, Senior Planner ATTACHMENTS: LocationMap;Overall Phasing Map; 2017 Sub- APPROVED BY: Phase Map;Draft 2017Mineral Extraction Permit;Application Narrative;Plan Set: Title K.L. Sheet, Site Information, Erosion and Sediment Control Details, Overall Site Plan, Landscaping Plan, Actual Mining Area, Interim/End Use Reclamation Plans; 2016 Sound Complaint/ObservationLog RECOMMENDED ACTION: Motionto recommend the City Council renew the Dakota Aggregates Large ScaleMineral Extraction Permit for 2017, subject to the terms and conditions in the attached 2017Draft Conditions for Mineral Extraction Permit ISSUE Dakota Aggregateshas applied for the annual renewal of their large scale mineral extraction permit (LSMEP) on the UMore property. An annual operating permit is required for all gravel operations within the City. Dakota Aggregates permit was last renewed in March of 2016 after an extensive review of noise issues associated with the mining site. None of the ancillary uses, including the aggregate processing facilities, concrete product casting yard and concrete and asphalt production are due for renewal this year. Due to the interconnected nature of the mineral extraction and processing activities taking place on the site, any concerns with the other activities may be reviewed as part of the LSMEP discussion. For 2017, Dakota Aggregates is proposing to continue mining the same south mining area adjacent to County Road 46 and Station Trail identified in the previous permit, and will expand into portions of two new subphases in the northern mining area about ¼ mile south of County Road 42. SUMMARY Applicant: Dakota Aggregates, LLC, 2025 Center Pointe Boulevard Suite 300, Mendota Heights, MN Property Owner: University of Minnesota (UMore Development, LLC), 1300 nd South 2 Street Suite 208, Minneapolis, MN Location: Northwest corner of County Road 46 and Station Trail; and ¼ mile south of County Road 42(active mining areas) Mining area in acres: 142.46 acretotal area; 75.74 acres about ¼ mile south of County Road 42 (Dry Mining) and 66.72 acres at the northwest corner of County Road 46 and Station Trail (Dry/Wet Mining). Comp Plan & Zoning: Agricultural Research Extraction progress: 7 Phases (3 partial) of 16 (less than 15% complete). Nature of request: Annual renewal. The large scale mineral extraction renewal approval is a quasi-judicial action, meaning that if the application meets the City Code, the large scale mineral extraction permit conditions and interim use permit regulations, then the large scale mineral extraction renewal must be approved. Staff supports approval of the large scale mineral extraction renewaland finds that it is substantially in conformance with the approved large scale mineral extraction permit and the interim use permit regulations with recommended conditions. The detailed analysis of this finding is provided below. In accordance with the Zoning Ordinance, the purpose of the annual operating permit “is to provide an opportunity for the city council to review the operation of the mine, gather public comment on the operation, modify any permit conditions as necessary to address adverse impacts that arise from the operation, and revise the phases and/or subphases of the mine. The large scale mineral extraction interim use permit provides a zoning basis for the mine provided the city issues an annual operating permit”. The City of Rosemount approved a Large Scale Mineral Extraction Permit for Dakota Aggregates in late 2012. This action established the overall zoning permit for the mining and extraction activities that were planned for the property. Since the initial site approval, the applicant (or another party working with the applicant) has brought forward requests for the various interim uses allowed under the mining permit and has received approvals for the annual renewal of the mineral extraction use in subsequent years. In order to clarify the approvals that have been granted for the site, staff prepared the following summary chart: PermitDate IssuedTerm (yrs) Notes/Comment Large Scale Mineral 12/18/12 40 Initial IUP for entire site (northern dry Extraction mining area to be completed by 2028) LSMEP Annual Permit 12/18/12 1Annual Permit for 2013 Aggregate Processing 12/18/12 3Interim use for aggregate processing and IUP recycled aggregate processing LSMEP Renewal12/17/13 1Annual Permit for 2014 Primary Ready-Mix 5/20/14 10 Enclosed facility within the approved Concrete Plant IUP auxiliary use area Seasonal Ready-Mix 5/20/14 10 Within same area as the primary plant Concrete Plant IUP LSMEP Renewal11/18/20141Annual Permit for 2015. Extended hours approved with permit Aggregate Processing 11/18/14 5Interim use for aggregate processing and IUP recycled aggregate processing – extension of original permit. Extended hours approved with permit Wells Concrete Casting 12/16/15 30 Interim use for a concrete casting facility Facilitywithin the approved auxiliary use area LSMEP Renewal3/1/16 1Annual Permit for 2016, conducted review of sound issues LSMEP Renewal* 1/17/17 1Annual Permit for 2017 * Permit currently under review The current request is specific to the annual renewal of the large scale mineral extraction permit. The other auxiliary uses identified in the above chart have been approved or renewed by the City and are operating within their approved time framesand in compliance with approval conditions. As part of the currentrenewal request, the applicant is not requesting any changes to the general terms and conditions of the mining activity, including the hours of operation approved with 2 previous permits. The original 2012 permit allowed truck loading and hauling within the auxiliary use area for 24 hours, seven days a week. The City later approved 24-hour operations for mineral extraction activities starting in 2014; therefore, Dakota Aggregates has been operating with the same operating hours for the past two years. The following is a brief summary of the operating hours that have either been approved with previous permits or are being requested with the present renewal (with no changes from the past two years): Year Activity Hours Notes 2016-2017* Wet/Dry Mining24 hours/7 including conveyor days a week system (both north and south mines) 2016-2017* Loading and Hauling M-F 6-10 24 hour operation allowed for (north mining area) Sat. 7-7 no more than 5 public projects (MnDOT) per year 2015-2019Aggregate Processing 24 hours/7 (located in south days a week ancillary use area) 2015-2019Loading and Hauling 24 hours/7 Limited to TH46 (southern processing days a week area and south mine) * Request for same hours in 2016 as 2014-15. One of the key points from this chart is that even with the 24 hour time period for mining and processing at the site, the loading and hauling of trucks from the northern dry-mining area is still limited to weekday and weekend hours as noted. The applicantdoes have the option to conduct hauling from this area for 24 hours a day, but this approval is limited to no more than five public projects each year. The applicant is requesting a slight modification to the permit for 2017 in order to expand thearea for mineral extraction in the north mining area. The updated permit would allow the northernmost portion of phases 4, 5, and 6 to be excavated in addition to the work being performed in phases 1 and 2. With the newly excavated areas, the applicant will still be under the maximum allowed area of 80 acres of disturbance in any individual project phase. There is no proposed expansion of the previous permit for the southern mining area. Staff has reviewed the operating permit conditions for 2016 and is recommending amendments in order to update this document for 2017 based on the applicant’s recent submission. Please note that the 24 hour allowance for the aggregate processing activity was approved by the City as part of a five-year interim use permit that is set to expire/be renewed in 2019, and is regulated under the terms of a separate permit with the City, as are the cement casting yard and concrete and asphalt production areas. Mining Operation-Update Dakota Aggregates commencedits mining operation in 2013 and has received subsequent annual operating permits through 2016. Upon approval of the initial permit, the applicant began working in portions of the first two phases of both the north dry mining and south dry/wet mining areas identified on the overall site plan. This work included removing aggregate materials from mining areas and placing Class 5 material on the floor of the aggregate processing area. This early project stages also included removal and stockpiling of the topsoil on the site, a large portion of which was used to create the extensive berm system along TH46, TH42, and Biscayne Avenue. 3 For the current operating year, from January 1 through October 31 of 2016, Dakota Aggregates removed and paid aggregate taxes on 35,000 tons of material trucked directly from the northern dry mining area. There was 1,412,000 tons of material from the southern wet/dry mining and processing area, which would include material from the north mine that was processed in the southern ancillary use area. The applicant has also indicted that as of October 31, 2016 there were 362,500 tons of aggregate stockpiles (sand)in the northern mining area, and 363,100 tons of aggregate stockpiles (of various materialsas broken out in the application materials) in the southern area. In addition, the applicant has reported that there were 126,300 tons of recycled aggregate materials sold during the same time frame, with 70,700 tons of this material being stockpiled on the site. The above numbers generally represent an increase from the amounts reported for last year, and demonstrate that there continues to be a strong demand for aggregate products from the site. The Large Scale Mineral Extraction Ordinance allows for two separate mining areas of no more than 80 acres each. For 2017, the applicant is proposing to extend the North Dry Mining Area by an additional 12.59 acres into sub-phases 4B, 5A, and 6A, resulting in a net mining area of 75.74 acres, which is still under the maximum allowed under the City Code. The proposed work in this area will also include reclamation of a large portion of the first two project phases to bring portions of the site up to its final, post mining elevation. The applicant can mine an additional 4.26 acres in the northern mining area before this reclamation work is completed. As the site is reclaimed, the applicant will be able to mine additional areas up to the 80 acres allowed as part of future permit requests. Most of the material from the north is conveyed to the south processing area, meaning that there is less truck traffic out onto County Road 42 than staff had initially anticipated. Please note that the applicant has indicated that work in the North Dry Mining Area is progressing ahead of schedule, and they do not anticipate any difficulties completing mining in the northern area before the 2028 deadline. The renewal application does not indicate that there will be any expansion of the South Dry/Wet Mining Area (southern mining area) from the previous year. Active mining will continue within Phases 1 and 2 over a total area of 66.72 acres. The Dry/Wet Mining Sub-phases are located on the northwest corner of County Road 46 and Station Trail and all trucks entering and exiting this area access County Road 46 at Station Trail. All activity in the Dry/Wet Mining area in 2017 is planned to occur outside and above the groundwater. They are currently about 60 vertical feet deep and are working west while maintaining the 60 foot depth. In the future, once the entire area of these four Dry/Wet Mining sub-phases are within a two feet of the groundwater, Dakota Aggregates will bring in a barge and dragline to begin mining below the groundwater elevation. The rest of the Dry/Wet Mining phases will be mined with the barge and dragline. The annual operating permit for the property notes that mining within any phase that will expose groundwater will not be permitted before borings are conducted in the deepest part of the proposed lake to confirm a minimum separation of 15 feet between lowest mining elevation and bedrock. The applicant is planning to complete these borings in the spring of 2017, with the intent of commencing mining below groundwater elevations within two years. Mining is otherwise allowed to occur within two feet of groundwater prior to the testing. Prior to mining below the groundwater level, monitoring must be conducted to establish the pre- mining groundwater characteristics as required under condition JJ of the operating permit. A report st is due by January 31 for the preceding year, and historically the City has retained Leggette, Brashears & Graham, Inc (LB&G) to evaluate the groundwater monitoring and sampling being conducted by American Engineering Testing on behalf of the applicant. In its review of the testing completed in 2016, LB&G recommended some changes to the frequency of certain sampling, and 4 all testing will now occur on either an annual or semi-annual basis depending on the type of analysis being performed. As of early 2016, it appears activities were performed in accordance with the WMP and met the conditions of the mining permit. The testing of groundwater at the UMore site is an ongoing requirement for Dakota Aggregates, and the City will again be asking LB&G to review the 2016 report upon receipt. Dakota Aggregates was permitted in 2016 for North Dry Mining sub-phases 1A, 1B, 1C, 2A, 2B, 2C, and 2D. For 2017, Dakota Aggregates is proposing to add sub-phases 4B, 5A, and 6A to this list (no mining will occur in sub-phases 1A and 2D, only reclamation will take place in these areas). They are currently about 60 vertical feet deep and are continuing to work west and south while maintaining the 60 foot depth. The North Dry Mining area will continue to access County Road 42 through a haul road running west to east along the former rail line about a ¼ mile south of County Road 42, then north along Akron Avenue to the intersection with County Road 42. This road is used infrequently as most of the aggregate is being conveyed to the south for processing and then transported off-site from there via County Road 46. Only 35,000 tons out of the overall 1,447,000 tons of material sold by Dakota Aggregates was trucked out from the northern mining area. The 60 foot depth of the north mining area is about 30 feet deeper than the approved reclamation plan. The current bottom elevation of the north mining area is 882.5 feet. A former test hole in the bottom of the north mining area indicated the groundwater elevation at 879.3 feet, which maintains the minimum required separation under the operating permit. Staff has previously added a condition to the permit that limits the north mining to a depth of 882 feet, and this condition will remain in effect for 2017. Dakota Aggregates will need to haul-back material from construction projects or re- deposit their sand to achieve the reclamation height. This reclamation work is currently underway in four of the northern sub-phases and will continue through the next year. Dakota Aggregates was permitted in 2016 for Dry/Wet Mining sub-phases 1A, 1B, 2A and 2B; and is proposing to continue mining in those same sub-phases in 2017. Through October 31, 2016, 1,412,000 tons of material were sold and trucked off site via CSAH 46, which is an increase of 374,000 tons from the same time period last year. In 2017, material sales will include sales to the concrete and asphalt plants that will be located within the AUF. The berms around the south mining area and the AUF have been constructed, seeded and vegetated, and all vegetation appears to be doing well. In 2016 the applicant completed construction of the northern berm to its westernmost extension at Biscayne Avenue as required under the operating permit. This overall height of the berm has been increased from the original permit to 30 feet, in part to help provide further mitigation for noise and visual impacts from the mining activity. The applicant is planning to extend the berm further to the south long Bacardi Avenue, and will be continuing this work through 2017. An operating permit condition concerning the northern berm has been updated to require Dakota Aggregates to maintain this berm at a height of 30 feet. The berm is expected to remain in place until development occurs in the northwestern portion of the UMore site, and will ultimately be replaced by a secondary berm along the future alignment of Boulder Trail (to be constructed as mining occurs further south on the property). As part the City’s review of the previous years’ operating permit in in early 2016, Dakota Aggregates hired AEC, a sound engineering consultant, to address concerns regarding noise being generated by the mining operation. The consultant performed sound testing at various locations and at different times around the site, and did modeling of projected sound levels with various improvements at the 5 site (including completion of the northern berm). Some of the results of this report and subsequent City review include the following: Dakota Aggregates has implemented a series of improvements intended to minimize sound leaving the site. These measures include the following: extending the northern berm to the west, placing mining equipment (plant) in the pit and moving it closer to northern edge (wall) of pit, installing a new feed hopper, eliminating the rock kicker, re-lining the splitter box, placing urethane screens on top the deck of the screen plant, using urethane lining on the sides of the screen deck, moving the rock surge pile down into the pit, changing the startup horn on the control van, changing the startup horn on the feeder, changing the startup horn on overland conveyor, straighten out any turns in overland conveyor line to stop or reduce rock tumbling noise, lining the conveyor hoppers on overland in rubber, and re-lining the feed boxes on all screen decks. (All of these actions have been taken, and should be maintained over the life of the permit). Dakota Aggregates hopes to complete mining work in the northern area ahead of the planned 15-year schedule, and is on track to achieve this goal. Any increase in distance between the active mining area and residential neighborhoods will help reduce sound levels from these neighborhoods. The northern berm was completed in the fall of 2016, and was increased from its original planned height of 22 feet to 30 feet. All equipment was moved to the bottom of the pit, which along with the completion of the berm should address many of the previous sound issues. Sound modeling indicated that the completion of the berm and lowering of mechanical equipment will reduce the noise level coming from the northern mining site activity. The sound consultant noted that, in general, sound from traffic along Highway 42 exceeds noise coming from the mining operation. With lower frequency horns brought on site, the level of sound leaving the site has been reduced. The liners for any equipment that makes contact with rocks have been upgraded for additional noise reduction. Since the beginning of 2016, the City has been stressing that residents with noise complaints regarding the Dakota Aggregates property should call 911 so there is documentation concerning the specific nature of the compliant, the location of the complaint, and time when it was observed. For all of 2016, there has been only one complaint filed with the police department concerning noise from the site, and in looking into this complaint, the investigating officer noted the loudest noise at th that time was coming from a gravel operation south of 160 Street in Empire Township. The City did receive other calls concerning the mine that did not come in to the police department, and followed up on these complaints with the applicant. The applicant’s comments concerning all of these complaints are listed on the attached spreadsheet labeled “Sound Complaint/Observation Log”. There have been no complaints or inquiries documented since late August of 2016. In his early 2016 report concerning the mining operation, the applicant’s sound expert noted that the mitigation measures implemented by the applicant should reduce the sound emanating from the site. The lack of complaints filed in 2016 supports this assertion, and is consistent with the predictions of the sound modeling completed earlier this year. Staff is recommending that the implementation of the sound mitigation measures noted above continue to be a requirement of the permit. Staff is also requesting that the sound from the mine be tested in the northern neighborhood this spring to assess whether the activities implemented did in fact result in reduced noise readings. 6 This activity should be conducted by June 1, 2017. In reviewing the current operating permit as part of its review, Staff would like to note the following general observations: The City did not identify any events in 2016 that resulted in the depositing of dirt or debris on any public streets due to the extraction or hauling operations. The applicant did not request to remove any topsoil from the site in 2016. Dakota Aggregates did not submit a semi-annual report this year due to the compressed time frame between the permit approval in March and the current renewal request (eight months). th The City performed an inspection of the site on December 6 after receipt of the attached report. As part of its reclamation work, the applicant will need to demonstrate that it is in compliance with conditions X and Z of the operating permit concerning minimum reclaimed top soil depth and minimum compaction levels for all fill. There was no “haul-back” material brought to the site other than recycled products allowed within the processing area. RECOMMENDATION Staff recommends that the Planning Commission recommend to the City Council approval of the renewal of the Dakota Aggregates Large Scale Mineral Extraction Permit for 2017. This recommendation is based on the information submitted by the applicant, findings made in this report and the conditions detailed in the attached Large Scale Mineral Extraction Annual Operating Permit Agreement. 7 BBIIRRCCHH CCTT SSBB EE RR BBLLAACCKKBBEERRRRYY BBLLOOOOOOMMFFIIEELLDD AAUURROORRAA AAVVEE PPLL 11337700'' 77TTHH CCTT BBOOYYSSEENNBBEERRRRYY CCTT BBOOSSTTOONN CCIIRR 11 114488TTHH SSTT WW NNNNEERR CCTT 114499TTHH SSTT WW 22 33 44 115511SSTT CCTT WW 55 66 77 88 BBOOUULLDDEERRTTRRLL 1111 115544TT 99 1100 55 44 33 22 11 # PhaseDRYWET Mining Phases 2017 Large Scale Mineral Extraction Annual Operating Permit Agreement for Dry/Wet Mining Sub-phases 1A, 1B, 1C, 2A, 2B, 2C, 2D, 4B, 5A, and 6A; and North Dry Mining Sub-phases 1A, 1B, 2C and 2D D AKOTA A GGREGATES, LLC A. Dakota Aggregates, LLC (hereinafter "the Operator") signs a written consent to these conditions binding itself and its successors, heirs or assigns to the conditions of said permit. B. The term of the permit shall extend from January 1, 2017 until December 31, 2017 unless revoked prior to that for failure to comply with the permit requirements. C. Mining in Wet/Dry Mining Sub-phases 1A, 1B, 2A, and 2B may occur 24 hours a day, 7 days a week. D. Mining, screening, and reclamation in North Dry Mining Sub-phases 1A, 1B, 1C, 2A, 2B, 2C, 2D, 4B, 5A, and 6A may occur 24 hours a day, 7 days a week. E. Trucks may haul from North Dry Mining Sub-phases 1B, 1C, 2A, 2B, 2C, , 4B, 5A, and 6A from 6 a.m. to 10 p.m. Monday through Friday and 7 a.m. and 7 p.m. Saturday , except for hauling outside those hours for the execution of a contract requirement of up to five (5) MnDOT or other public agency roadway construction project. During the execution of the MnDOT or other public contracts, the hauling may occur 24 hours a day, 7 days a week. F. No crushing or washing equipment shall be located or used in the North Dry Mining Sub-phases 1A, 1B, 1C, 2A, 2B, 2C, 2D, 4B, 5A, and 6A,. G. The North Dry Mining Sub-phases 1B, 2C, 2A, 2B, 2C, 4B, 5A, and 6Ashall not be mined below the 882 foot elevation. H. Protection equipment that is installed on hauling trucks, such as covers for the truck beds, shall be used while traveling on public roads. Non-use will be considered a violation of the permit condition. I. Trucks shall not use any locally designated road as part of their haul route except for the shortest route between the delivery site and the nearest County, State or U.S. highway. J. Trucks may not be loaded heavier that the public haul roads posted weight restrictions. K. Engineered designs for any reclamation steeper than a 3 to 1 slope must be submitted and approved by the City Engineer before the reclamation can occur. 2017 Annual Operating Permit Dakota Aggregates, LLC 2 of 5 L. A gate and thirty (30) feet of fencing on each side of the gate shall be installed at the Station Trail access. The gate shall be closed and locked when the mining or ancillary uses are not in operation. A knox box or similar devise shall be installed to provide emergency personal access to the key for the lock. M. September 20, 2012. N. The University of Minnesota (or designated entity) shall obtain approval and/or concurrence from the MPCA regarding completion of appropriate investigations and/or actions taken in response to identified releases of hazardous substances, pollutants or contaminates as defined under Minn. Statute 115B, and as deemed reasonable and necessary by the MPCA. O. Dakota Aggregates shall clean dirt and debris from streets that has resulted from extraction or hauling operations related to the Mineral Extraction Permit. After Dakota Aggregates has received 24-hour verbal notice, the City will complete or contract to complete the clean- expense. In the event of a designee) or Rosemount Police Department, the City may proceed immediately to or notification. P. No topsoil shall be removed from the site unless Dakota Aggregates can demonstrate that there is topsoil in excess of the amount needed to reclaim the End Use Grading Plan with at least six (6) inches of topsoil. Dakota Aggregates shall take necessary measures to prevent erosion of the stockpiled topsoil. Q. 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 Dakota Aggregates. R. All costs of processing the permit, including but not limited to planning fees, engineering fees, and legal fees, shall be paid by Dakota Aggregates prior to the issuance of the permit. Dakota Aggregates shall reimburse the City for the cost of periodic inspections by the City Administrator or any other City employee for the purpose of insuring that conditions of the permit are being satisfied. Dakota Aggregates agrees to reimburse the City for any other costs incurred as a result of the granting or enforcing of the permit. S. Dakota Aggregates shall deposit with the Planning Department a surety bond or cash deposit in the amount of Eight Hundred Fifty One Thousand one Hundred Dollars ($851,100) in favor of the City for the cost of restoration, regrading and/or revegetating land disturbed by mining activities and to ensure performance of all requirements of this resolution and City ordinances by Dakota Aggregates. The required surety bonds must be: 1. With good and sufficient surety by a surety company authorized to do business 2017 Annual Operating Permit Dakota Aggregates, LLC 3 of 5 in the State of Minnesota. 2. Satisfactory to the City Attorney in form and substance. 3. Conditioned that Dakota Aggregates 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 designee) or any other City officials. 4. Conditioned that Dakota Aggregates will secure the City and its officers harmless against any and all claims, 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 Dakota Aggregates. 5. The surety bond or cash escrow shall remain in effect from January 1, 2017 until July 31, 2018. Once the interim reclamation grades and vegetation have been established and approved by the City, the bond may be reduced by Five Hundred Sixty Seven Thousand Four Hundred Dollars ($567,400 = 113.48 acres times $5,000 per acre). Once the end use grading grades and vegetation have been established and approved by the City, the bond may be reduced by Two Hundred Eighty Three Thousand Seven Hundred Dollars ($283,700 = 113.48 acres times $2,500 per acre). Upon thirty (30) to the permit holder and surety company, the City may reduce or increase the amount of the bond or cash deposit during the term of this permit in order to insure that the City is adequately protected. T. A landscape security of $42,625 (155 trees times $250 per tree times 110%) shall be provided. After the trees have been established, $38,362 (90%) of the landscaping security can be released. The final $4,263 (10%) shall be maintained through the existence of the berm for Dry/Wet Sub-Phase 1A and 2A to ensure that as trees die, that those trees are replaced. The landscaping security shall be in the form of a letter of credit in favor of the City or cash escrow. U. Dakota Aggregates 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, and at least One Million Five Hundred Thousand and no/100 ($1,500,000.00) Dollars for injury or death of more than one person arising out of any one occurrence and 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, 2017 until July 31, 2018. V. Dakota Aggregates shall hold the City harmless from all claims or causes of action that may result from the granting of the permit. Dakota Aggregates 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. W. Dakota Aggregates shall submit to the City semi-annually a written report indicating 2017 Annual Operating Permit Dakota Aggregates, LLC 4 of 5 the amount of material extracted from the site for the prior six-month period. After said written report is submitted, the City shall perform an inspection of the site to confirm compliance with the conditions within the Annual Operating Permit. X. Reclamation requires the replacement of the stockpile of topsoil to the mined area, reseeding, and mulching necessary to re-establish vegetative cover for permanent slope stabilization and erosion control, provided also that the minimum depth of topsoil shall not be less than six (6) inches after reclamation. No restored slopes may exceed the gradients shown on Interim Reclamation Plan. Y. No mining activity will occur within fifteen (15) vertical feet of bedrock. Z. Dakota Aggregates shall compact the entire reclamation site to a minimum compaction of 95% of maximum dry density. AA. If not utilized by the University of Minnesota for agricultural purposes, fully reclaimed areas will be permanently seeded within 14 days of final completion. All disturbed non-operating areas not utilized by the University of Minnesota for agricultural purposes shall be seeded at a minimum of once per year, prior to October 1 with MnDOT seed mix 130B. Operating areas including work faces, material stockpiles, haul roads, staging areas, and active reclamation areas are not required to be seeded. BB. Dakota Aggregates shall submit quarterly to the City documentation of the Barr Engineering, Inc. (or other City approved geotechnical testing firm) environmental and geotechnical testing with documentation verifying the source and quantity of the - after the end of the quarter. CC. Dakota Aggregates shall submit an incidence report to the City within three days of any testing that fails for contamination or hazardous materials, or will not produce a normal moisture-density relationship for compaction. DD. Truck operators within the pit area shall not engage in practices involving slamming situations), or other such activities that result in excessive noise. EE. Dakota Aggregates shall incorporate best management practices for controlling dust, erosion, noise, and storm water runoff as specified by the Minnesota Pollution Control Agency and the United States Environmental Protection Agency and proposed in the submitted LSME application to the City. FF. Compliance with Dakota County Ordinances No. 110 and 111, as well as all other applicable Federal, Minnesota, Dakota County, and Rosemount regulations. Soil materials in the Property will be managed in accordance with the Minnesota Pollution Control AgencBest Management Practices (BMPS) for the Off-Site Reuse of Unregulated Fill. 2017 Annual Operating Permit Dakota Aggregates, LLC 5 of 5 GG. Dakota Aggregates may not assign this permit without written approval of the City. Dakota Aggregates will be responsible for all requirements of this permit and all City ordinances on the licensed premises for the permit period unless Dakota Aggregates gives sixty (60) days prior written notice to the City of termination and surrenders permit to the City. Dakota Aggregates shall identify all Operators prior to their commencement of mineral extraction-related activities in the pit area. The City shall have the authority to cause all mineral extraction activities to cease at any time there is an apparent breach of the terms of this Permit. HH. Dakota Aggregates shall 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. II. Dakota Aggregates shall maintain the berm located on the north side of the haul road.to a height of at least 30 feet. JJ. American Engineering Testing, Inc. (AET) shall submit the 2016 Annual Monitoring Report, including all groundwater testing, and submit the report to the City by January 31, 2017. Leggette, Brashears, & Graham, Inc. (LBG) shall review the revised report on behalf of the City and has the authority to adjust the frequency of the groundwater sampling based on the 2016 testing results. KK. Dakota Aggregates shall implement the sound mitigation measures as documented in its 2016 Large Scale Mineral Extraction Permit application and referenced in the March 1, 2016 City Council report concerning said application. LL. The city of Rosemount shall have the ability to collect independent soil and water samples. MM. Mining within any phase that would expose the groundwater will not be permitted before additional borings are conducted in the deepest areas of the proposed lake to confirm that a minimum of fifteen (15) feet of separation between the mining and the bedrock. Mining can occur within 2 feet of the groundwater prior to testing occurring. 2017 Annual Operating Permit Dakota Aggregates, LLC 6 of 5 IN WITNESS WHEREOF, Dakota Aggregates, LLC, the Operator, hereby consents and agrees to the foregoing conditions of said Annual Operating Permit this _______ day of ______________, 20__. Dakota Aggregates, LLC By:________________________________ Tim Becken, Its Chief Manager STATE OF MINNESOTA ) ) ss COUNTY OF _________ ) The foregoing instrument was acknowledged before me this _________ day of ____________, 20____, by Tim Becken, Chief Manager of Dakota Aggregates, LLC, the Operator, on behalf of the Corporation. ________________________________________ Notary Public UMore Park Large Scale Non Metallic Mineral Extraction 2017Annual Operating Permit Application Dry Mining Phases 1A -1C /2A -2D/ 4B/ 5A/6A & Active Wet/Dry Phases 1A-2B UMore Park City of Rosemount November 22, 2016 1.Land Owner: Regents of the University of Minnesota UMore Development LLC nd 1300 South 2Street, Suite 208 Minneapolis, MN 55455 2.Applicant/Operator: Dakota Aggregates, LLC 2025 Centre Pointe Boulevard, Suite 300 Mendota Heights, MN 55120 (651) 688-9292 3.Legal Description of the Land upon which Excavation is active: That part South Half of Section 28, Township 115, Range 19, Dakota County, Minnesota, lying westerly of the following described line; Commencing at the northeast corner of the Southeast Quarter of said Section 28; thence South 89 degrees 48 minutes 43 seconds West, assumed bearing along the north line of said Southeast Quarter, a distance of 1058.90 feet to the point of beginning of the line to be described; thence South 18 degrees 23 minutes 48 seconds West a distance 1211.64 feet; thence South 07 degrees 11 minutes 26 seconds East a distance of 1472.46 feet; thence South 75 degrees 07 minutes 52 seconds East a distance of 126.03 feet to the south line of said Southeast Quarter and there terminating. EXCEPT the plat of UNIVERSITY ADDITION, said Dakota County. AND Section 33, Township 115, Range 19, Dakota County, Minnesota; EXCEPT the East 133.00 feet of the North 549.43 feet of the Southeast Quarter of said Section 33; EXCEPT the East 133.00 feet of the South 930.25 feet of the Northeast Quarter of said Section 33; also EXCEPT that part of said Northeast Quarter described as follows: Beginning at the northeast corner of said Northeast Quarter; thence South 00 degrees 11 minutes 58 seconds West, assumed bearing along the East line of said Northwest Quarter, a distance of 800.63 feet; thence North 81 degrees 23 minutes 25 seconds West a distance of 40.76 feet; thence North 38 degrees 17 minutes 54 seconds West a distance of 819.06 feet; thence North 75 degrees 07 minutes 52 seconds West a distance of 580.25 feet to the north line of said Northwest Quarter; thence North 89 degrees 51 seconds 14 seconds East, along said north line, a distance of 1111.53 feet to the point of beginning. 1 AND That part of the Northwest Quarter of Section 34, Township 115, Range 19, Dakota County, Minnesota, described as follows: Commencing at the northwest corner of said Northwest Quarter; thence South 00 degrees 11 minutes 58 seconds West, assumed bearing along the west line of said Northwest Quarter, a distance of 800.63 feet to the point of beginning of the land to be described; thence continuing South 00 degrees 11 minutes 58 seconds West, along said west line, a distance of 912.75 feet; thence North 89 degrees 51 minutes 14 seconds East a distance of 647.18 feet; thence North 00 degrees 11 minutes 58 seconds East a distance of 813.16 feet; thence North 81 degrees 23 minutes 25 seconds West a distance of 654.21 feet to the point of beginning. AND That part of the Southwest Quarter of Section 34, Township 115, Range 19, Dakota County, Minnesota, lying southerly of the following described line: Commencing at the northwest corner of said Southwest Quarter; thence South 00 degrees 11 minutes 58 seconds West,assumed bearing along the west line of said Southwest Quarter, a distance of 549.45 feet to the point of beginning of the line to be described; thence South 89 degrees 28 minutes 53 seconds East a distance of 2646.92 feet to the east line of said Southwest Quarter and there terminating And lying westerly, northwesterly and northerly of the following described line: Commencing at the southwest corner of said Southwest Quarter; thence South 89 degrees 42 minutes 10 seconds East, along the south line of said Southwest Quarter, a distance of 2192.17 feet to the point of beginning of the line to be described; thence North 04 degrees 21 seconds 18 seconds East a distance of 142.12 feet; thence North 01 degrees 12 minutes 32 seconds West a distance of 368.88 feet; thence North 01 degrees 58 minutes 09 seconds West a distance of 266.72 feet; thence northeasterly 194.60 feet, along tangential curve, concave to the southeast, having a central angle of 96 degrees 57 minutes 13 seconds and a radius of 115.00 feet; thence South 85 degrees 00 minutes 56 seconds East, tangent to last described curve, a distance of 157.25 feet; thence easterly 99.70 feet, along a tangential curve, concave to the north, having a central angle of 09 degrees 25 minutes 45 seconds and a radiusof 605.84 feet; thence northeasterly 100.73 feet, along a reverse curve, concave to the northwest, having a central angle of 56 degrees 01 minutes 50 seconds and a radius of 103.00 feet to the west line of said Southwest Quarter and said line there terminating. 2 North Dry Mining Phases 1A -1C, 2A -2D, 4B, 5A, 6AAnnualReview Update Activities related to North Dry Miningwill continueto include relocation of surface soils, mixing and screening,stockpiling,loading, hauling and conveyingof aggregate material to the Ancillary Use Facility(AUF) or hauledout by use of the Akron Avenue internal/rail bed corridor. Reclamationactivities have commenced in phases 1A, 1B,2C,2D andinthe Northern portion of Phase1 C.All rock from the North Dry Miningoperation is conveyed southto the processing facilityfor material production. The North processing equipment continuesto be located approximately50 feetbelow grade inthe North pit floor. In addition a 30+/-berm has beenconstructedon the northwest side of the permitted North DryMiningPhases and construction of theberm has progressed south on the eastern side ofBiscayne Avenue. For 2017, active mining will occur on34.34 acres and active reclamation activities will continue to occur on 28.32 acres for and overall total of active mining and reclamationarea of 62.66acres.The following chart displays the breakdown of acres per North Dry Mining phase.Plan sheet 3.0 visually depicts the breakdown of acres as well. North Dry Mining Phases: Active Active Total MiningReclamationScreening Berm/Acres Dry Mining Sub Conveyor Corridor PhaseAcresAcres Acres 1A 4.45 3.23 7.68 1B0.5 6.44 3.11 10.05 1C 5.57 4.66 2.34 12.57 2A 6.82 6.82 2B8.36 0.38 8.74 2C 0.5 7.47 1.2 9.17 2D 5.3 2.82 8.12 4B5.11 5.11 5A 5.28 5.28 6A 2.2 2.2 TOTAL 34.34 28.32 13.08 75.74 Aggregate Material sold from January 1, 2016-October 31,2016:35,000Tons Aggregate stockpiles onsite as of October 31, 2016in North Dry Mining Area -Sand: 362,500TONS All rock is conveyed to theaggregate processing facility for mixing and productionof various aggregate products. 3 Dry/Wet Mining Sub-Phase 1A-2BAnnualReview Update: Activities in the Dry/Wet mining phases will continue to include relocation of surface soils, crushing, mixing,screening,stockpiling,aggregate washing, loading, any conveyingof material to the AUF. Once the material is conveyed to the AUF, it will be processed into varying grades of aggregate products that will be purchased and hauled offsite utilizing the Station Trail/CSAH#46 access.The screening bermlandscaped withtreeswhich isadjacent to County Road 46 and to Wet Dry Mining Phases 1A and 2A hasbeen maintainedthroughout the season. For 2017 the active mining area will consume 47.15 acres. Reclamationactivities will occur in the future once extraction activities have commenced in the wet phases since the end use is an open water feature.The following chart displaysthe breakdown of acres perSouth Dry /Wet mining phase.Plan sheet 3.1 visually depicts the breakdown of acres as well. Dry/Wet Mining Phases: Active Active Berm/Conveyor Total Mining Reclamation Corridor Acres Dry/Wet Sub PhaseAcresAcres Acres 1A16.32 1.63 17.95 1B 13.84 13.84 2A15.41 1.62 17.03 2B 17.9 17.9 TOTAL 63.47 0 3.25 66.72 Aggregate material sold from January 1, 2016-October 31,2016:1,412,000 TONS Aggregate Stockpiles in Aggregate Processing Facilityas of October 31, 2016 -Screened Sand:36,800TONS -Washed Sand:191,100TONS -3/8’’rock:45,600TONS -#67rock:60,500TONS -1 ½’’rock:10,300TONS -Class 5:16,300TONS -¾’’ rock: 2,500TONS 4 Recycled Aggregate: RAP Sold January 1, 2016–October 31, 2016:126,300TONS RAP StockpileJanuary 1, 2015 –October 31, 2016: -70,700 TONS Site Improvements Update: -Over $60,000,000.00 (SixtyMillion Dollars) inonsite improvements since inception of the project in 2013 -Over 1,650,000 Sales in TONS projected by the completion of 2016. -Wells Concrete Precast Facilityup in runningand in full production. -Over 355acres(AUFand active mine areas) has been added to the tax roll since 2013 -Maintenanceof existingtrees situated on the berm abutting CSAH#46 -Berm, ditch and common areas maintainedroutinely throughoutthe year. -Continuationof berm construction onthe northand eastside of the permitted North Drymining phases. -Sign Erection at Akron Avenue and County Road #46 completed in 2016. -DakotaCounty Adopt a Road Program for periodic debris removal by Dakota Aggregates on County # 46. 5