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HomeMy WebLinkAbout6.s. Request for Shafer Contracting to Renew their Mineral Extraction Permit through 2010AGENDA ITEM: Case 09 -28 -ME Request by Shafer Contracting to Renew their Mineral Extraction Permit through 2010. AGENDA SECTION: Consent PREPARED BY: Eric Zweber; Senior Planner AGENDA NO. (p.rp. ATTACHMENTS: Site Map, 2010 Mineral Extraction Permit, Phasing Map, Shafer Letter; Excerpt of the November 24 Planning Commission Minutes. APPROVED BY: OA RECOMMENDED ACTION: Motion to approve renewal of the Shafer Contracting, Inc. Mineral Extraction Permit for 2010. 4 ROSEMOUNT CITY COUNCIL City Council Meeting: December 15, 2009 EXECUTIVE SUMMARY ISSUE Scott Spisak of Shafer Contracting has applied for the annual renewal of the mineral extraction permit for their property located one mile north of 135` Street East and 1 /4 mile west of Rich Valley Blvd. (County Road 71). NOVEMBER 24 PLANNING COMMISSION MEETING The Planning Commission conducted a public hearing for the Shafer Mineral Extraction Permit renewal request at their November 24 meeting. Residents Charlie Koehnen, and Joan Schneider spoke during the public hearing. Charlie Koehnen and Joan Schneider live directly east of the Shafer mine Charlie Koehnen and Joan Schneider expressed three concerns: that the mining and well within the Shafer mine was causing odors and sediment in their well water, that Shafer was mining deeper than they are allowed, and that Shafer is not restoring the mine fast enough. Shafer has a private agreement with Mr. Koehnen and Ms. Schneider regarding the maintenance of their well to provide safe drinking water. This agreement was negotiated between the two parties and the City is not involved with enforcement. It was discussed that the water level within the well was 30 feet below the lowest levels that Shafer is mining and that American Engineering and Testing tested the water this year and it was determined safe. It was determined that no odor from the water was observed during the testing, and that Mr. Koehnen and Ms. Schneider have not submitted any invoices to Shafer to be reimbursed for costs related to their drinking water. Mr. Koehnan stated that he had measured the elevation at the edge of the water in the bottom of the mine at 841 feet and that Shafer was only allowed to mine to the 840 foot elevation. It was concluded that there was no evidence provided that Shafer had gone below the 840 elevation. Mr. Koehnen and Ms. Schneider stated that they have not seen any significant restoration in the last couple of years. Shafer stated that very little gravel has been extracted in the last couple of years due to the slow construction market and that restoration would not occur until after the mining in the current phase has been concluded. Planning Commissioner Demuth inquired if the berm between the Shafer mine and the Koehnen /Schneider home was constructed as approved. Mr. Spisak stated that the berm in fact had not been constructed to the height as approved at the request of Mr. Koehnen so that Mr. Koehnen could watch the Shafer machinery to ensure that it is not operated outside of the hours allowed. Mr. Spisak stated that Shafer would install the berm as approved if Mr. Koehnen wanted that. Mr. Koehnen did not respond. The Planning Commission inquired into the process for Mr. Koehnen and Ms. Schneider to inform the City of issues regarding the mine Senior Planner Zweber stated that the first option is to call him and that he had talked with Mr. Koehnen in past years but not this year. In addition, the police department has set up a log in their complaint system specifically for the Shafer mine after business hours but no calls had been received in the last year. The Planning Commission encouraged Mr. Koehnen and Ms. Schneider to call the City if issues continue to arise before the next permit renewal so that those issues can be resolved before the approval is requested. The Planning Commission unanimously recommended approval of the Shafer Mineral Extraction Permit. BACKGROUND Applicant and property owner: Shafer Contracting, Co. Inc. Location: '/a mile west of Rich Valley Blvd., 1 mile north of 135 Street East (County Road 38). Area in acres: 93 Site total area, 15 acres active in the northern 750 feet of Phases 2, 3, and 4 Comp Plan Zoning: Agriculture Extraction progress: Phase 4 out of 7 (approximately 50% complete). Nature of request: Annual renewal. SUMMARY Shafer Contracting has been the most active mining owner /operator in the City. Shafer has been working on the site since 1998 and owned the property since 2000. Through September 30, 2009, Shafer has removed 237,863 cubic yards of aggregate in 2009, compared to 98,735 cubic yards removed in 2008 and 322,934 cubic yards removed in 2007. Shafer has paid their Dakota County aggregate tax. Approximately 28,150 cubic yards of aggregate was hauled back to the Shafer operation in 2009 from the MnDOT I -494 project in Woodbury. Shafer is currently removing aggregate from the haul back area in the northern 500 feet of phase 2, 3, and 4. Haul back operations occur by mining down to the 840 foot elevation and backfilling the area with material hauled to the site from approved MnDOT construction sites to accomplish the end plan elevation for the site, generally about 880 feet. In 2006, the City Council approved this haul back operation to occur from MnDOT construction projects provided that it is clean fill material, does not contain organic matter, and receives 95% compaction. The police department and staff have received no complaints about Shafer during 2009. Staff has conducted two inspections of the Shafer operation in 2009 and has found them to be in compliance with their mineral extraction permit. During the site inspections, it was visually evident that Shafer had preformed some repairs to the vegetative cover on the north slope of the gravel mine RECOMMENDATION Staff recommends approval of the Shafer Contracting, Inc. Mineral Extraction Permit for 2010. 2 Shafer Gravel Mine 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. Map Scale 1 inch 1600 feet Mineral Extraction Permit 2010 Conditions for Mineral Extraction Permit Renewal SHAFER CONTRACTING COMPANY, INCORPORATED A. Shafer Contracting Co., Inc. (hereinafter "the Property Owner") signs a written consent to these conditions binding itself and its successors, heirs or assigns to the conditions of said permit. B. This permit is granted for the area designated as the northern 750 feet of Phase 2, Phase 3, and Phase 4 (13 acres), on Exhibit A (drawing 5 of 7 dated April 6, 1999), which is attached hereto as one of the exhibits. Haul -back activities from Mn/DOT projects are permitted only within the northern 750 feet of Phase 2, Phase 3, and Phase 4 (13 acres), on Exhibit A (drawing 5 of 7 dated April 6, 1999). C. The term of the permit shall extend from January 1, 2010 until December 31, 2010 unless revoked prior to that for failure to comply with the permit requirements. D. 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 Property Owner 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. E. The final grading for the permit area shall be completed in accordance with the grading plan labeled Proposed Reclamation and End Use Plan Revised 10- 31 -06, which is attached hereto, or as approved by the City Engineer, and any other conditions as may be imposed by the City from time to time. F. All gravel trucks and other mining related traffic shall enter and exit the mining area from Rich Valley Boulevard. It shall be the Property Owner's responsibility to obtain any access permits or easements necessary 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. The current location of the access driveway is indicated on the Phasing Plan, Exhibit A. A stop sign shall be installed at the driveway entrance to County Road 71, in accordance with standards on file with the City or County Highway Department. Warning signs including "Trucks Hauling" shall be installed at the Property Owner's expense as needed in accordance with Dakota County requirements. 2010 Mining Permit Shafer Contracting 2 of 6 G. A plan for dust control shall be submitted to and subject to approval by the City. The Property Owner shall clean dirt and debris from streets that has resulted from extraction or hauling operations related to the Mineral Extraction Permit. After the Property Owner has received 24 -hour verbal notice, the City will complete or contract to complete the clean -up at the Property Owner's expense. In the event of a traffic hazard as determined by the City Administrator (or the Administrator's designee) or Rosemount Police Department, the City may proceed immediately to complete or contract cleanup at Property Owner's expense without prior notification. H. 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. I. No topsoil shall be removed from the site and the Property Owner shall take necessary measures to prevent erosion of the stockpiled topsoil. The location of the stockpiled topsoil shall be indicated on Exhibit A, the Phasing Plan. J. 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 Property Owner. K. All costs of processing the permit, including but not limited to planning fees, engineering fees and legal fees, shall be paid by the Property Owner prior to the issuance of the permit. The Property Owner 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. The Property Owner agrees to reimburse the City for any other costs incurred as a result of the granting or enforcing of the permit. L. 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, however, to being changed by the City Council. M. The Property Owner shall deposit with the Planning Department a surety bond or cash deposit in the amount of Seven Thousand Five Hundred Dollars per acre ($7,500.00 /acre) for any active phase 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 agreement and City ordinances by Property Owner. 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. (2) Satisfactory to the City Attorney in form and substance. 2010 Mining Permit Shafer Contracting 3 of 6 Q. (3) Conditioned that the Property Owner 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 City Administrator (or the Administrator's designee) or any other City officials. (4) Conditioned that the Property Owner 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 the Property Owner. (5) The surety bond or cash escrow shall remain in effect from January 1, 2010 until July 31, 2011. 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 deposit during the term of this permit in order to insure that the City is adequately protected. N. The Property Owner 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 and no /100 ($1,000,000.00) 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, 2010 until July 31, 2011. O. No processing or mixing of materials shall occur on the site, except as approved by the Dakota County Environmental Health Department as incidental to a sand and gravel mining operation at which time such activities will be enclosed with snow, or cyclone fencing or as approved by City staff. Construction of any ponding areas, wash plants or other processing or equipment brought to the site shall require additional City Council approval and notification of adjacent property owners. P. The Property Owner shall hold the City harmless from all claims or causes of action that may result from the granting of the permit. The Property 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. The Property Owner 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. 2010 Mining Permit Shafer Contracting 4 of 6 R. Complete mining and reclamation is required in all phases before any additional mining is authorized. Modifications or expansion of the mining areas must be approved in writing to the City. Property Owner shall submit to the City semi- annually a written report indicating 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 this Mineral Extraction Permit. S. The Property Owner 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. T. The Property Owner must have a copy of the Dakota County Soil and Water Conservation District mining application completed and on file with the City of Rosemount Planning Department prior to the approval of the Mineral Extraction Permit. U. Reclamation requires the replacement of the entire 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 two inches after reclamation. Topsoil for reclamation shall conform to specifications on file with the City. No restored slopes may exceed the gradients shown on the Proposed Reclamation and End Use Plan Revised 10- 31 -06. V. The Property Owner must show how materials stockpiled for recycling will be processed and inform the City of all stockpiled materials. W. All recycling must be completed with the completion of the current phase. No recycling processes shall be allowed to continue into subsequent phases. X. The Property Owner may not assign this permit without written approval of the City. The Property Owner will be responsible for all requirements of this permit and all City ordinances on the licensed premises for the permit period unless the Property Owner gives sixty (60) days prior written notice to the City of termination and surrenders permit to the City. The Property Owner 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. Y. The Property Owner shall install and maintain a "stock" gate (or equivalent) at the entrance to the property where the mining operation is located. The gate must be secured at 7:00 p.m. and at any time the pit is not in use. 2010 Mining Permit Shafer Contracting 5 of 6 Z. There shall be no "haul- back" of materials from any other property or job site that would be imported to the property for fill or other purposes other than incidental concrete recycling as referred to in paragraphs 0, V and W; and topsoil imported for the purpose of re- establishing turf as accepted by the City; and earthen fill materials from Mn/DOT projects that further meets the requirements of testing in documents by American Engineering Testing, Inc., and which is used to replace sand and gravel mined below approved finish grades. AA. No mining activity will occur below the elevation of 840 feet above mean sea level. In no instance shall any mining activity occur within a groundwater aquifer. BB. Shafer Contracting Co., Inc. shall submit quarterly to the City documentation of the American Engineering Testing Inc. (or other City approved geotechnical testing firm) environmental and geotechnical testing with documentation verifying the source and quantity of Mn/DOT generated "haul- back" material. These reports shall be provided within 14 days after the end of the quarter. CC. Shafer Contracting Co., Inc. 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. Shafer Contracting Co., Inc. shall compact the entire reclamation site to a minimum compaction of 95% of maximum dry density. EE. Truck operators within the pit area shall not engage in practices involving slamming tailgates, vibrating boxes, using of "jake" or engine brakes (except in emergency situations) or other such activities that result in excessive noise. FF. Fully reclaimed areas will be permanently seeded within 14 days of final completion. All disturbed non operating areas shall be seeded at a minimum of once per year, prior to October 1 with Mn/DOT seed mix 130B. Initial seeding will occur in the spring of 2010. Operating areas including working faces, material stockpiles, haul roads, staging areas, and active reclamation areas are not required to be seeded. IN WITNESS WHEREOF, Shafer Contracting Company, Inc. the Property Owner, hereby consents and agrees to the foregoing conditions of said mining permit this day of 20. Shafer Contracting Co., Inc. By: George Mattson, Its President 2010 Mining Permit Shafer Contracting 6 of 6 STATE OF MINNESOTA ss COUNTY OF The foregoing instrument was acknowledged before me this day of 20 by George Mattson, President of Shafer Contracting Company, Inc., the Property Owner, on behalf of the Corporation. Notary Public b ill h 11 11 11 11.4 in 11 Oh gill rig i ij i !i I 111:111I iii P.4 AO a 1 o 111 1 I I g v.4 1 ;':11 a Og a$ m 40 0 11111i o cti sal to o jog Sa(ei Tow, Mr. Eric Zweber City of Rosemount 2875 145 Street West Rosemount, Minnesota 55068 -4997 Dear Mr. Zweber: As required by condition "R." of our mineral extraction permit, we are writing to you about our activities at the site during the past 6 months. We are currently removing sand from the northern 750 feet of phases 2, 3 and 4. Through September 30 we removed approximately 237,863 cubic yards of sand and paid aggregate taxes for that material to Dakota County. Haulback operations for 2009 were reported to you under separate cover on October 12 Should you have any questions, please feel free to contact me at 651- 257 -5019. SAS:jb October 23, 2009 Re: Mineral Extraction Permit 12500 Rich Valley Blvd. Yours very truly, SHAFER CONTRACTING CO., INC. An Equal Opportunity Employer By SHAFER, MINNESOTA 55074 P OCT 2 7 2009 eotaa Inc. Ms. Kim Lindquist Mr. Eric Zweber City of Rosemount 2875 145 Street West Rosemount, Minnesota 55068 -4997 Dear Ms. Lindquist Mr. Zweber: October 26, 2009 Re: Mineral Extraction Permit 12500 Rich Valley Blvd. IT g 0 T OCT 2 7 2009 [WAFER, MINNESOTA 550 4 I have enclosed the Mineral Extraction Permit Application form for the year 2010 along with a check for $370.00 and two sets of address labels for the adjacent property owners. We request renewal of the conditions approved by City Council at their December 18, 2007 meeting, including the "haulback" provisions. We have previously submitted to you a six month activity report on August 5 and enclosed an update through October 23 Our insurance coverage renews in January and the City will receive a new certificate at that time. The required surety bond is in force and continues until released by the City. We request that our application be placed on the earliest scheduled planning commission and Council meetings. Please call me at 651- 257 -5019 should you have any questions. Thank you. SAS:jb Enclosures Yours very truly, SHAFER CONTRACTING CO., INC. B An Equal Opportunity Employer EXCERPT OF DRAFT MINUTES PLANNING COMMISSION REGULAR MEETING NOVEMBER 24, 2009 5.a. Request by Shafer Contracting to Renew their Mineral Extraction Permit through 2010 (09-28 ME). Senior Planner Zweber stated that Scott Spisak of Shafer Contracting has applied for the annual renewal of the mineral extraction permit for their property located one mile north of 135` Street East and 1/4 mile west of Rich Valley Blvd. (County Road 71) and that staff recommends the Planning Commission recommend approval of the renewal of the Shafer Contracting, Inc. Mineral Extraction Permit for 2010. The public hearing was opened at 6:35p.m. Charlie Koehnen, 12255 Rich Valley Boulevard, approached the Commission. Mr. Koehnen stated they are still having trouble with their water. He stated he feels Shafer is digging much deeper than the 840 foot elevation they are supposed to dig, but that the elevations that he shot at the edge of the stormwater was 841 feet. He stated there has been water in the pond all summer even through the drought. Mr. Koehnen stated dust is produced even when they are not working and the water Shafer puts on the site is not taking care of the dust. Mr. Koehnen provided pictures he took of the site showing a milky white substance on the site. He further stated that Shafer has tested their well and informed them the Koehnens needed a new water softener. Mr. Koehnen stated they installed a new water softener, new water heater and filtering system. They still get odors when Shafer is pulling a lot of water out of the pit. Mr. Koehnen also wondered why the work is in Stage 4 but they haven't begun to reclaim State 1. Joan Schneider, 12255 Rich Valley Boulevard, approached the Commission with complaints about the gravel pit. She stated that not only do they have an odor in their water but actual particulate matter coming out of the pipe. The filter on their filtering system is clogged with sand. Ms. Schneider stated the other complaint is the dust and the lack of reclamation at the site. She stated that when your water isn't good, it affects the quality of your. Commissioner Demuth asked Ms. Schneider the depth and age of their well. Ms. Schneider replied that their well is 70 feet, drawing at 120. Mr. Koehnen replied that Shafer is almost to the water table in their well. They stated their well was replaced in the last five years. There were no public comments. MOTION by Irving to close the public hearing. Second by Demuth. Ayes: 4. Nays: None. Motion approved. The public hearing was closed at 6:48p.m. Scott Spisak, Shafer Contracting, approached the Commission to respond to the resident complaints He stated that Shafer watered on 77 days of operation resulting in 900 gallons of water and chloride was applied on the haul roads which helps maintain moisture and keep the dust down. Mr. Spisak stated that they have an agreement with Mr. Koehnen and Ms. Schneider to reimburse them on any expenses related to their well but Shafer has not received any invoices or knowledge of the new items they have installed. With respect to the well level, Mr. Spisak stated that the top of the well is at 880 and the bottom of the pit is at about 840 and Shafer has not gone down below that. He stated that at the bottom of the pit below the sand is a layer of clay that is very thick that prevents the rainwater from soaking in very fast. Mr. Spisak stated that Mr. Koehnen's well is more than 30 feet below the bottom of Shafer's pit and he does not believe anything Shafer has done could have affected their water table. Commissioner Demuth asked the purpose of Shafer's well and what the white substance in Mr. Koehnen's pictures could possibly be. Mr. Spisak replied that the well was installed two years ago to increase the response time in watering the site on dry days and to maintain the haul roads. Mr. Spisak stated the white substance could be broken up concrete from the recycling operation in the pit. He stated Shafer would be willing to have it tested. Commissioner Demuth asked about the reclamation progress. Mr. Spisak replied that in 2006, Shafer's request to be able to haul back material was approved with a revised reclamation plan. The final grades were changed to be more of a curvilinear landscape. He stated that Phase 1 is the way it was when Shafer got the property and all grades in that area will change in the final configuration. Shafer will be reclaiming from north to south in those stages as the work progresses. Commissioner Ege asked Mr. Spisak to address the issue of the water having an odor. Mr. Spisak recalled last year when another resident brought in a sample of water to the Commission complaining of odor. Shafer hired a testing company who found odor and suggested the resident shock his well with chloride and the process was successful. Mr. Spisak suggested this may have to be done with Mr. Koehnen and Mr. Schneider's well and may have to be done several times to work. Commissioner Irving asked if a dust control plan has been submitted to the City. Mr. Zweber stated the City does have a dust control plan that is pretty similar to other gravel mining companies in the City. Commissioner Schwartz asked about the reclamation plan and whether or not it could take longer to reclaim the land if business continues to be slow. Mr. Spisak stated that it might be possible but they have done some interim seeding and will again in the spring. Commissioner Schwartz stated that perhaps there could be better communication between the residents and the City with the issues at hand. She stated she feels the City should do whatever possible to correct the water problems of the residents. Mr. Zweber stated that he agrees but that he feels the City is doing everything possible. He stated that American Testing Company has done testing and provided reports to the City. He encouraged Mr. Koehnen and Ms. Schneider to contact him and Mr. Spisak when they know of issues so staff is able to address them early on. Mr. Spisak stated he is willing set up a meeting with Mr. Koehnen and Ms. Schneider here at City Hall moderated by staff to discuss the issues at hand. There were no further comments. MOTION by Schwartz to recommend the City Council renew the Shafer Mineral Extraction Permit for 2010. Second by Demuth. Ayes: 4. Nays: None. Motion approved. As follow -up, Mr. Zweber stated this item will go before the City Council at their regular meeting on December 15, 2009. Commissioner Irving stated that being a new commissioner, he is surprised to see reoccurring issues and would like to see the issues at hand alleviated during the next year before renewal of the permit in 2011.