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HomeMy WebLinkAbout6.o. Small Scale Mineral Extraction Permit at the PedKuznia Properties for Bolander and Sons for 2017 EXECUTIVE SUMMARY City Council Meeting: January 17, 2017 AGENDA ITEM: Case 16-66-ME: Small Scale Mineral Extraction Permit at the Ped/Kuznia Properties for Bolander and Sons for 2017 AGENDA SECTION: Consent PREPARED BY: Kim Lindquist, Community Development Director AGENDA NO. 6.o. ATTACHMENTS: Site Map, 2017 Mining Permit, December 19, 2016 Planning Commission Minutes and Packet, Applicant’s Narrative, Phasing Plan, Reclamation Plan, Existing Conditions with Final Reclamation Plan Overlay, December 5, 2016 letter from SKB APPROVED BY: LJM RECOMMENDED ACTION: Motion to Approve the Bolander and Sons Mineral Extraction Permit for 2017, subject to the terms and conditions in the attached 2017 Conditions for Samll Scale Mineral Extraction SUMMARY Applicant: Bolander and Sons 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, Bolander and Sons, requests approval of an annual 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. This is the first time that Bolander and Sons will be the operator of the mine. Previously mining activity was conducted by SKB Environmental. In early 2016, there was an annual mining permit approved for SKB to continue mining for the first 6 months of the year with reclamation to occur by the end of 2016. Unfortunately SKB did not conduct the reclamation they had intended. The current applicant has indicated that they will arrange a commitment from SKB to have them reclaim consistent with the SKB 2016 mining permit. However, according to documents provided, it appears that SKB will complete the work by the end of 2017 or if completion does not occur, Bolander will complete the reclamation approved by July 1, 2018. This is an extension for what is normally anticipated for reclamation work, and the City expects to see reclamation activity occur during 2017 so no additional extensions are required. The situation is unusual because SKB does not have any permits with the City at this time. Staff will be processing an interim use permit amendment that extends the reclamation time period for SKB, who is still responsible for the reclamation work consistent with their approved plan. The financial surety will need to be extended until July 30, 2018. SKB has provided a signed lease amendment extending the SKB 2 terms and also has provided an agreement with Bolander outlining the above information. This is important to clarify with the Bolander permit since Bolander does not want to be responsible for the mining activity that occurred prior to their taking over the activity. This is the first time Bolander will be the applicant for mining on the site. Staff met with the Bolander representative who indicated they are planning to continue work in the mine generally consistent with the previous mining and reclamation plan. At issue is the amount of material necessary to appropriately reclaim Phase 1. The narrative indicates that mining activity is necessary in Phase 3 to obtain enough material to meet the reclamation plan in Phase 1. Reclamation of the entire site will be achieved through a combination of material on site and imported soils. The applicant also offers to be more judicious about mining activity and increase the speed of reclamation. The narrative indicated that “no additional excavation of sand and gravels below the restoration grades will be allow until the size of the fills are reduced to below 40,00 cubic yards”. Because Phase 2 is at restoration grades mining activity is necessary in Phase 3 to obtain fill for Phase 1. After Phase 1 reclamation the applicant also indicates they will only have 19.5 acres open for mining at any one time. Additionally, they will not have more than 50,000 cubic yards open below reclamation grades. Staff indicated that the reclamation plan is subject to the same conditions as the previous plan relating to slopes and grades for the future public road corridor. These conditions are to facilitate future development on the site and are consistent with last year’s approval. In the past there has been little reclamation activity which should change in the future. The applicant is indicating as much with the proposal to fill Phase 1 to the reclamation grades. Between the new applicant, and the reclamation requirements for SKB, the previous mining operator, it is expected that substantial reclamation activity will occur in Phase 1 over the 2017 operation year. A condition of the 2017 mining permit reflects this change. PLANNING COMMISSION The Planning Commission reviewed this item at their December 19, 2016 meeting. The Commission clarified the dates in two of the permit conditions needed to be changed to 2017. With that change the Commission unanimously approved the permit. There was no public comment during the Commission meeting. BACKGROUND The current applicant, Bolander and Sons, is a new operator for the mine. Last year SKB was approved for 6 months of mining with the commitment to reclaim areas in Phase 1 consistent with the approved plan by December 2016. No reclamation work occurred and they are currently asking for an extension. Their extension letter indicates they are responsible for the reclamation and will work with the current applicant to fulfill the approved plan. The ordinance requires a public hearing prior to modifying conditions of an IUP so an amendment to the SKB small scale mining permit will be placed on the Planning Commission agenda in January to address this issue. A copy of the letter from SKB is provided outlining their participation in reclamation of the site over the 2017 calendar year. 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. There are several documents missing from the application, such as the haulback protocol and processing plan. These items are highlighted in the draft permit. Because of the change in operator, the city cannot reference the plans submitted by the previous owner. Staff does not anticipate issues obtaining the plans and a commitment from the applicant. Therefore staff is recommending moving forward with Planning Commission review, but will wait for all documents until final Council approval. 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 and the Planning Commission recommend renewal of the Ped/Kuznia Mineral Extraction Permit for 2017. The recommendation recognizes that there is some complexity with site reclamation as the mining operator transitions from one operator to another. Staff will bring the 2016 mining permit for SKB before the Planning Commission in January to modify the conditions to relating to site reclamation. CARL BOLANDER SITE MAP November 30, 20161:38,400 00.3250.651.3mi 00.512km Property Information Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not guaranteed. This is not a legal document and should not be substituted for a title search,appraisal, survey, or for zoning verification. Small Scale Mineral Extraction Permit 2017 Conditions for Small Scale Mineral Extraction Permit Renewal Bolander and Sons (P ED-K UZNIA) A. Bolander and Sons binding itself and its successors and assigns to the conditions of this permit. Karin L. Larson, Kimberly K Ped and Grace Kuznia (herei 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 1, Phase 2 and Phase 3 as shown on the Phasing Plan dates 11-01-2016. Reclamation in Phase 1 will occur by July 1, 2018 to bring the reclamation areas is also required. After completion of Phase 1 reclamation, site mining cannot exceed 19.5 acres open at any one time and only 40,000 cubic yards can be open below the reclamation grades consistent with the approved Plan, at any one time. D. 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. 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 Proposed Reclamation Plan dated 11-01-2016. An 8% grade for the public road corridor which allows access into the site consistent with public road standards is required through site reclamation. 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 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. 2017 Mining Permit Bolander and Sons./Ped -Kuznia Page 1 of 7 H. A gate must be placed at the driveway entrance that shall be secured after hours. The operator shall also install and maintain respassing signs consistent with the standards outlined in Minnesota State Statute 609.605. 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. 2017 Mining Permit Bolander and Sons./Ped -Kuznia Page 2 of 7 5) The surety bond or cash escrow shall remain in effect from January 1, 2017 until July 31, 2018. 6) Upon thirty (30) 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, 2017 until July 31, 2018. 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 2017. 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 Proposed Reclamation Plan 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 2017 Mining Permit Bolander and Sons./Ped -Kuznia Page 3 of 7 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. 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 an nnual 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 Proposed Reclamation Plan dated 11-01-2016. 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 Bolander and Sons operation. BB. The City of Rosemount shall have the ability to collect independent soil and water samples. 2017 Mining Permit Bolander and Sons./Ped -Kuznia Page 4 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 S TATE OF M INNESOTA ) ) SS C OUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2015 by Karin L. Larson, Minnesota resident and property owner. Notary Public 2017 Mining Permit Bolander and Sons./Ped -Kuznia Page 5 of 7 S TATE OF M INNESOTA ) ) SS C OUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2015 by Kimberly K. Ped, Minnesota resident and property owner. Notary Public S TATE OF M INNESOTA ) ) SS C OUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2015 by Grace Kuznia, Minnesota resident and property owner. Notary Public 2017 Mining Permit Bolander and Sons./Ped -Kuznia Page 6 of 7 That _________________________ of Bolander and Sons, the operator, hereby consents and agrees to the foregoing conditions of said mining permit. Bolander and Sons By: Its: _______________________ S TATE OF M INNESOTA ) ) SS C OUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2015 by _______________________ of Bolander and Sons, the operator. Notary Public 2017 Mining Permit Bolander and Sons./Ped -Kuznia Page 7 of 7 EXCERPT OF DRAFT MINUTES PLANNING COMMISSION REGULAR MEETING DECEMBER 19, 2016 5.d. Request by Carl Bolander and Sons for a Small Scale Mineral Extraction Permit.(16-66- ME) Community Development Director Lindquist gave a brief summary of the staff report. Chair Kenninger noted that the dates on items O. & P. need to be updated. Commissioner Forster inquired about the surety. Lindquist stated the surety provided by SKB from last year would be held longer to ensure compliance with the approved reclamation plan. This change will be brought before the Commission next month. Chair Kenninger confirmed that if the reclamation is not done by next year the City of Rosemount can cash and use to complete the project. The public hearing opened at 7:43 pm. Public comments: None MOTION by Mele to close the public hearing. Second by Forster. Ayes: 6. Nays: 0. Motion Passes. The public hearing closed at 7:43 pm. Motion by Mele to recommend that the City Council renew the Shafer Small Scale Mineral Extraction Permit for 2017, subject to the terms and conditions in the attached Draft 2017 Conditions for Mineral Extraction with the amended to change dates on items O. 5 to January 1, 2017 to July 31, 2018 and item P. January 1, 2017 to July 31, 2018. Second by Clements. Ayes: 6. Nays: 0. Motion Passes. EXECUTIVE SUMMARY AGENDA ITEM:Case 16-66-ME: AGENDA SECTION: PREPARED BY: AGENDA NO. ATTACHMENTS APPROVED BY: RECOMMENDED ACTION: Motion SUMMARY Applicant: Bolander and Sons Property Owner(s): K Larson, G Kuznia, & K Ped th Location: 4992 145 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, Bolander and Sons, requests approval of an annual mineral extraction permit for the th properties located at 4992 145 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. This is the first time that Bolander and Sons will be the operator of the mine. Previously mining activity was conducted by SKB Environmental. In early 2016, there was an annual mining permit approved for SKB to continue mining for the first 6 months of the year with reclamation to occur by the end of 2016. Unfortunately SKB did not conduct the reclamation they had intended. The current applicant has indicated that they will arrange a commitment from SKB to have them reclaim consistent with the SKB commitment from earlier this year by December 2017. We will continue to hold the bond from SKB until that time. However, it is difficult to enforce SKB activities when there is no permit held by SKB with the City, and therefore staff will be processing an interim use permit amendment that extends the reclamation time period for SKB, who is still responsible for the reclamation work consistent with their approved plan. This is the first time Bolander will be the applicant for mining on the site. Staff met with the Bolander representative who indicated they are planning to continue work in the mine generally consistent with the previous mining and reclamation plan. At issue is the amount of material necessary to appropriately reclaim Phase 1. The narrative indicates that mining activity is necessary in Phase 3 to obtain enough material to meet the reclamation plan in Phase 1. Reclamation of the entire site will be achieved through a combination of material on site and imported soils. The applicant also offers to be more judicious about mining activity excavation of sand and gravels below the restoration grades will be allow until the size of the fills are ion grades mining activity is necessary in Phase 3 to obtain fill for Phase 1. After Phase 1 reclamation the applicant also indicates they will only have 19.5 acres open for mining at any one time. Additionally, they will not have more than 50,000 cubic yards open below reclamation grades. Staff indicated that the reclamation plan is subject to the same conditions as the previous plan relating to slopes and grades for the future public road corridor. These conditions are to facilitate future development on In the past there has been little reclamation activity which should change in the future. The applicant is indicating as much with the proposal to fill Phase 1 to the reclamation grades. Between the new applicant, and the reclamation requirements for SKB, the previous mining operator, it is expected that substantial reclamation activity will occur in Phase 1 over the 2017 operation year. A condition of the 2017 mining permit reflects this change. BACKGROUND The current applicant, Bolander and Sons, is a new operator for the mine. Last year SKB was approved for 6 months of mining with the commitment to reclaim areas in Phase 1 consistent with the approved plan by December 2016. No reclamation work occurred and they are currently asking for an extension. Their extension letter indicates they are responsible for the reclamation and will work with the current applicant to fulfill the approved plan. The ordinance requires a public hearing prior to modifying conditions of an IUP so an amendment to the SKB small scale mining permit will be placed on the Planning Commission agenda in January to address this issue. A copy of the letter from SKB is provided outlining their participation in reclamation of the site over the 2017 calendar year. 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 Agriculture Industrial South Agriculture Medium Density Residential (west half) Agriculture Preserve Business Park (east half) East Agriculture/Mining Business Park, Medium and Low Density Agriculture Residential West Agriculture Commercial, Business Park & Medium Agriculture Density Residential 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. There are several documents missing from the application, such as the haulback protocol and processing plan. These items are highlighted in the draft permit. Because of the change in operator, the city cannot reference the plans submitted by the previous owner. Staff does not anticipate issues obtaining the plans and a commitment from the applicant. Therefore staff is recommending moving forward with Planning Commission review but wait for all documents until final Council approval. 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 2017. The recommendation recognizes that there is some complexity with site reclamation as the mining operator transitions from one operator to another. Staff will bring the 2016 mining permit for SKB before the Commission next month to modify the conditions to include reclamation activities that were to be completed in 2016. Small Scale Mineral Extraction Permit 2017 Conditions for Small Scale Mineral Extraction Permit Renewal Bolander and Sons(P ED-K UZNIA) A.Bolander and Sons binding itself and its successors and assigns to the conditions of this permit. Karin L. Larson, Kimberly K Ped and Grace Kuznia (herei 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 1, Phase 2 and Phase 3 as shown on the Phasing Plan dates 11-01-2016. Reclamation in Phase 1 will occur by July 1, 2018 to bring the reclamation areas is also required. After completion of Phase 1 reclamation, site mining cannot exceed 19.5 acres open at any one time and only 40,000 cubic yards can be open below the reclamation grades consistent with the approved Plan, at any one time. D.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. 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 Proposed Reclamation Plan dated 11-01-2016. An 8% grade for the public road corridor which allows access into the site consistent with public road standards is required through site reclamation. 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 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. 2017 Mining Permit Bolander and Sons./Ped -Kuznia Page 1 of 7 H.A gate must be placed at the driveway entrance that shall be secured after hours. The operator shall also install and maintain respassing signs consistent with the standards outlined in Minnesota State Statute 609.605. 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. 2017 Mining Permit Bolander and Sons./Ped -Kuznia Page 2 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) 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 Proposed Reclamation Plan 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 2017 Mining Permit Bolander and Sons./Ped -Kuznia Page 3 of 7 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. 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 an nnual 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 Proposed Reclamation Plan dated 11-01-2016. 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 Bolander and Sons operation. BB.The City of Rosemount shall have the ability to collect independent soil and water samples. 2017 Mining Permit Bolander and Sons./Ped -Kuznia Page 4 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 S TATE OF M INNESOTA) )SS C OUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2015by Karin L. Larson,Minnesota resident and property owner. Notary Public 2017 Mining Permit Bolander and Sons./Ped -Kuznia Page 5 of 7 S TATE OF M INNESOTA) )SS C OUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2015by Kimberly K. Ped, Minnesota resident and property owner. Notary Public S TATE OF M INNESOTA) )SS C OUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2015by Grace Kuznia, Minnesota resident and property owner. Notary Public 2017 Mining Permit Bolander and Sons./Ped -Kuznia Page 6 of 7 That _________________________ of Bolander and Sons, the operator, hereby consents and agrees to the foregoing conditions of said mining permit. Bolander and Sons By: Its: _______________________ S TATE OF M INNESOTA) )SS C OUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2015by _______________________ of Bolander and Sons, the operator. Notary Public 2017 Mining Permit Bolander and Sons./Ped -Kuznia Page 7 of 7 i� 7 t f t irk• I t t .;lint, ' Y I 1 111 y { 3 _ � I 1 I it a 1 !!SII i lf� •I t t •, 2 1 i liill{ 4,. 1•, 1 y Hyl y, tti -�11�1t}I k\I �.. l � � I ,l I 7 11 , Lo I I � �' f31 f'jl frt �•.� .�f !r 1 i 1 1111 1 i S - ' i lil f I I } • f 1 t S1+i i t r \, 4 yyy i II„ 1Ij tit �— �•"I ,� III �jl \� I 1 i JI{ 1t1 9 / I _� f I !f✓f I y lr t W F r 2 UJ Q N O� KN 00 > Q FF �r �¢ mV og =)M UV QU ,W L) OD NQ OHO L dE CVN W N Q i to d i r 1 t co j !k �k.;rttl�1t111 i l! l °t �, I 1 ! •� � { _tlt}1Siit �\11111_{ .. - -o �, \1,\ w0¢U �� - t }111!\i 1111 \ 1 \4. �\ \ 4 11 F ZPZ 1 1 k1 z Kima00 Y zi 5 M' W Ul Q 0. d 1 i + N W (n Q 2 a + W F r 2 UJ Q N O� KN 00 > Q FF �r �¢ mV og =)M UV QU ,W L) OD NQ OHO L dE CVN W N Q S d 1 t l! l t 1 1 1 Y 5 M' W Ul Q S d 1 i + N W (n Q 2 a + � r` w ¢v W F r 2 UJ Q N O� KN 00 > Q FF �r �¢ mV og =)M UV QU ,W L) OD NQ OHO L dE CVN ENVIRONMENTAL December 5, 2016 Kim Lindquist Community Development Director City of Ra.5emount RF- Ped/l{uzniafSK8 l=nuiranmental Small Scale Mineral Extraction Permit Ms, Lindquist, SKB Ervircnmental, Inc. is currently the permitted operator of the Ped-Kuznia sand pit. This permit is set to expire on December 31, 2016. It is the understanding of SIB that the land owners wish to continup the mineral extraction activities utilizing Carl Bolander& Sons, Inc. (Bolander) as the operator under a new permit. During 2016, the anticipated @mounts of clean fill materials needed to complete the reclamation of the mined areas of the property did not arrive as expected. SKB is requesting an extension to the existing mining permit in order to properly complete the reclamation according to the permit. SKB is proposing to add the fallowing conceptual conditions to the mining permit extension: r SKB, in cooperation with Oulander, will procure and provide to the site clean sails during the 2017 construction season. * SKR will contract with Rol ander to perform the reclamation activities, since they will be cperating the mining activities on the site going forward. However, SKB will be responsible for ensuring that all conditions of the permit, plans, and pratocols are being met. • SKI3 will ensure that Bolander conducts the reclarnation according to the current Permit conditions, including the approved January 2016 Backfill Puotuoul, the January 2016 Sand and Gravel Mining Plan and Backfill Plan, and the January 2015 Stormwater Pollution Prevention Plan. ■ No later than October 31, 2017, Bolanderwill conduct a survey on the reclamatiort area_ If the approved grades have been achieved, topsoil will be replaced and reseeded. 251 Sl,arkq St. • P.4. Bax 7216 * St. Paul. MN 55107 651-224-6329 • FAX 551-223-5853 00 Pr+rwlfn.m, ItWOril 1'Wprr. • In the event that the clean soils received are not sufficient to achieve the approved grades by October 31, 2017, SKB will compensate Bolander for the completion of the reclamation (including import and placement of acceptable soils, replacement of topsoil, and reseeding). All reclamation work will be performed and finalized no later than July 1, 2018. • SKB will extend and maintain a surety bond until December 31, 2018. SKB appreciates the City of Rosemount's consideration of our request for an extension. SKB fully recognizes the urgency and need for the site to be properly reclaimed. We believe the proposed additional conditions ensure that all scenarios have been contemplated in order to provide the City with an adequate level of assurance that the reclamation will be completed according to the timeframes discussed. However, SKB would consider including other conditions the City feels are necessary to approve the extension. Please contact me if you would like to discuss our request at iohndo@wcnx.org or 651-224-6329. Thank you for your consideration. Sincerely, John Domke Divisional Vice President