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HomeMy WebLinkAbout6.j. Amendment to the SKB Environmental Small Scale Mineral Extraction Permit at the PedKuznia Properties for 2016 EXECUTIVE SUMMARY City Council Regular Meeting Date: February 21, 2017 AGENDA ITEM: Case 16-02-ME: Amendment to the SKB Environmental Small Scale Mineral Extraction Permit at the Ped/Kuznia Properties for 2016 AGENDA SECTION: Consent PREPARED BY: Kim Lindquist, Community Development Director AGENDA NO. 6.j. ATTACHMENTS: Site Map, Amended Small Scale Mining Permit Conditions, Applicant Narrative, Present Conditions and 2016 Mine Plan, Reclamation Plan, Excerpt of the January 24, 2017 Planning Commission Minutes APPROVED BY: LJM RECOMMENDED ACTION: Motion to Approve the Amendment to the SKB Environmental Small Scale Extraction Permit for 2016 SUMMARY Applicant: SKB Environmental, Inc. Property Owner(s): K Larson, G Kuznia, & K Ped Location: 4992 145th Street East Area in acres: Ped – 80 Acres, the East half along Co. Rd. 42. Kuznia – 80 Acres, the West half along Co. Rd. 42. Mining area: Approximately 15 acres Comp. Guide Plan Designation: BP – Business Park, MDR - Medium Density Residential and LDR - Low Density Residential Current Zoning: AG - Agriculture In March 2016, SKB Environmental, Inc requested renewal of their existing mineral extraction permit for the property located at 4992 145th Street East. The subject property is owned by Karin Larson, Kimberly Ped, and Grace Kuznia and is located approximately 1 ½ miles east of US Highway 52 and south of County Road 42. The main issue associated with the renewal request was the recognition that the mining would cease in early summer and the applicant will need to accomplish proposed site reclamation by December 2016. A revised reclamation plan was included in the approval. Since that time, SKB has not undertaken any site reclamation. Additionally, Bolander and Sons has requested, and received a permit to mine the same pit. As part of that discussion, Bolander indicated that they do not intend to undertake the reclamation proposed by SKB and in fact would anticipate SKB would conduct the approved reclamation. Bolander and SKB have an agreement which lays out responsibilities for the reclamation and timing. Additionally, SKB has provided an amended lease that recognizes that the land owners find the reclamation extension acceptable. SKB indicates that they plan to have the reclamation completed by January 1, 2018 (one more year) The documents indicate that should the reclamation not occur, Bolander will undertake the reclamation depicted in the SKB reclamation plan, by July 1, 2018. From staff’s perspective, SKB is responsible for the reclamation approved in the 2016 mining permit and is responsible to have the work completed by July 1, 2018, regardless of who physically does the work. The action being requested is to extend the 2016 mining permit to address the reclamation time period extension and ensure that the financial surety for the work is extended. Failure to have the reclamation done by July 1, 2018, as approved in the initial 2016 permit will result in the City utilizing the financial surety to have the site work completed to be consistent with the 2016 approved reclamation plan. The ordinance allows for modifications to conditions of an interim use permit after holding a public hearing. Small scale mining permits are interim use permits and therefore the Planning Commission held a public hearing on the modification to the conditions. This item is now being presented to the Council for final approval. PLANNING COMMISSION The Planning Commission reviewed the requested amendment to the IUP conditions and held a public hearing on January 24, 2017 as required by the City Code. The Commission discussed the issue and asked questions about the value of the surety and the wording of the permit amendment. The Commission unanimously recommended approval of the request. After the Commission meeting, the applicant indicated that the area for reclamation is 20 acres and the bond currently in place is $157,500, which will meet the IUP condition. RECOMMENDATION Staff recommends approval of the amendment to the 2016 small scale mining permit for SKB, Environmental, Inc. for the Ped/Kuznia property. 2 2015 Mining Permit SKB Environmental, Inc../Ped -Kuznia Page 1 of 7 Small Scale Mineral Extraction Permit 2016 Conditions as Amended for Small Scale Mineral Extraction Permit Renewal SKB ENVIRONMENTAL, INC. (PED-KUZNIA) A. SKB Environmental, Inc. (hereinafter the “Operator”) shall sign a written consent to these conditions binding itself and its successors and assigns to the conditions of this permit. Karin L. Larson, Kimberly K Ped and Grace Kuznia (hereinafter the “Owner”) shall sign written acknowledgment and consent to these conditions and to issuance of this permit in the form set forth at the end of these conditions. B. The property Owner shall comply with all terms of this permit as well as the standards for mineral extraction listed in Section 11-10-04 of the City Code. C. This permit is granted for the area designated as Phase One and the western half of Phase Two as shown on the Mining Plan dated April 14, 2011 (Exhibit A, which is attached hereto). D. The term of the permit for mining purposes shall extend from January 1, 2016 until December 31, 2016 unless revoked prior to that for failure to comply with the permit requirements. Reclamation of the site, consistent with the attachment must be completed by July 1, 2018. Failure to complete reclamation as depicted in the Plan will result in the City cashing the financial surety and using the funds to accomplish site reclamation. E. All required permits from the State of Minnesota, County of Dakota and City of Rosemount (hereinafter "City") or any of their agencies shall be obtained and submitted to the City prior to the issuance of the permit. Failure by the Operator to comply with the terms and conditions of any of the permits required under this paragraph shall be grounds for the City to terminate said mining permit. F. The final grading for the permit area shall be completed in accordance with the submitted Site Grading Reclamation Plan dated January 2016 and revised on 2/23/2016 (Exhibit B, which is attached hereto). G. All gravel trucks shall enter and exit the mining area from County State Aid Highway 42 (CSAH 42) from the joint access between the Danner and Ped properties and the designated truck route to (and from) the site shall be CSAH 42, west to State Trunk Highway 52 (STH 52), north on STH 52 to the City boundary. It shall be the Operator’s responsibility to obtain easements for ingress and egress. The location of the accesses and/or easements for ingress and egress shall be subject to approval by the City, as well as the County Highway Department or the Minnesota Department of Transportation if applicable or if any changes occur relative to the mining process. H. A gate must be placed at the driveway entrance that shall be secured after hours. The operator shall also install and maintain “No Trespassing” signs consistent with the standards outlined in Minnesota State Statute 609.605. 2015 Mining Permit SKB Environmental, Inc../Ped -Kuznia Page 2 of 7 I. The Operator shall clean dirt and debris from extraction or hauling operations related to the Mineral Extraction Permit from streets. After the Operator has received 24-hour verbal notice, the City may complete or contract to complete the clean-up at the Operator's expense. J. The surface water drainage of the mining area shall not be altered so as to interfere, contaminate, or otherwise affect the natural drainage of adjacent property. K. No topsoil shall be removed from the site and the Operator shall take necessary measures to prevent erosion of the stockpiled topsoil. The location of the stockpiled topsoil shall be indicated on Exhibit A, the Mining Plan. L. Any costs incurred now or in the future in changing the location of existing public or private utilities including but not limited to pipelines, transmission structures and sewer infrastructure located within the permit area shall be the sole obligation and expense of the Operator. M. All costs of processing the permit, including but not limited to planning fees, engineering fees and legal fees, shall be paid by the operator prior to the issuance of the permit. The Operator shall reimburse the City for the cost of periodic inspections by the City Public Works Director or any other City employee for the purpose of insuring that conditions of the permit are being satisfied. The Operator agrees to reimburse the City for any other costs incurred as a result of the granting or enforcing of the permit. N. The daily hours of operation for the mining area shall be limited to 7:00 a.m. to 7:00 p.m., Monday through Saturday subject to being changed by the City Council. O. The Operator shall deposit with the Engineering Department a surety bond or cash escrow in the amount of Seven Thousand Five Hundred Dollars per acre ($7,500.00/acre) of active phase in favor of the City for the cost of restoration, regrading and/or revegetating land disturbed by mining activities and to assure compliance with these conditions by the Operator. The required surety bonds must be: 1) With good and sufficient surety by a surety company authorized to do business in the State of Minnesota with the right of the surety company to cancel the same only upon at least thirty (30) days written notice to the permit holder and the City. 2) Satisfactory to the City Attorney in form and substance. 3) Conditioned that the Operator will faithfully comply with all the terms, conditions and requirements of the permit; all rules, regulations and requirements pursuant to the permit and as required by the City and all reasonable requirements of the Public Works Director or any other City officials. 4) Conditioned that the Operator will secure the City and its officers harmless against any and all claims, or for which the City, the Council or any City officer may be made liable by reason of any accident or injury to persons or property through the fault of the Operator. 2015 Mining Permit SKB Environmental, Inc../Ped -Kuznia Page 3 of 7 5) The surety bond or cash escrow shall remain in effect from January 1, 2016 until July 31, 2018. 6) Upon thirty (30) days’ notice to the permit holder and surety company, the City may reduce or increase the amount of the bond or cash escrow during the term of this permit in order to insure that the City is adequately protected. P. The Operator shall furnish a certificate of comprehensive general liability insurance issued by insurers duly licensed within the State of Minnesota in an amount of at least Five Hundred Thousand and no/100 ($500,000.00) Dollars for injury or death of any one person in any one occurrence, bodily injury liability in an amount of at least One Million Five Hundred Thousand and no/100 ($1,500,000.00) Dollars and property damage liability in an amount of at least Two Hundred Fifty Thousand and no/100 ($250,000.00) Dollars arising out of any one occurrence. The policy of insurance shall name the City as an additional insured and shall remain in effect from January 1, 2016 until July 31, 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 2016. No additional processing or production of materials may occur on the site and construction of any ponding areas or wash plants shall require additional City Council approval and notification of adjacent property owners, except as approved by the Dakota County Environmental Health Department as incidental to a sand and gravel mining operation. Any such activities will be enclosed with cyclone fencing, or as approved by City staff, and the fencing shall be properly maintained. R. The Operator and the Owner shall hold the City harmless from all claims or causes of action that may result from the granting of the permit. The Operator and the Owner shall indemnify the City for all costs, damages or expenses, including but not limited to attorney's fees that the City may pay or incur in consequence of such claims. S. The Operator comply with such other requirements of the City Council as it shall from time to time deem proper and necessary for the protection of the citizens and general welfare of the community. T. Modifications or expansion of the mining areas must be approved in writing buy the City. U. The Operator shall incorporate best management practices for controlling erosion and storm water runoff as specified by the Minnesota Pollution Control Agency and the United States Environmental Protection Agency. V. The Operator shall receive all applicable permits and follow all appropriate regulations of all federal, state, or county agencies. W. The Reclamation Plan (Exhibit B) shall be coordinated with any abutting Mineral Extraction site to insure matching conditions and final grades along any adjoining property line(s) to the greatest extent possible. Reclamation shall include the replacement of the entire stockpile of topsoil on the mined area, reseeding and mulching necessary to re-establish vegetative cover for permanent slope stabilization and erosion control. The minimum depth of topsoil shall not be less than two inches after reclamation. Reclamation of the site must be consistent with the 2015 Mining Permit SKB Environmental, Inc../Ped -Kuznia Page 4 of 7 Council approved reclamation plan to ensure future development potential of the site. Reclamation must be completed by July 1, 2018. X. The storage of equipment (unrelated to the sand and gravel mining and processing), manure, construction debris, or hazardous materials of any kind shall not be permitted on site. The placement of construction debris, manure, asphalt in any form or hazardous materials within the pit as fill shall be strictly prohibited. Y. The fill area regrading and reclamation shall follow the procedures described in the Sand and Gravel Backfill Protocol dated 2016 including a bi-annual report submitted to the City describing the quantities of material brought in, where the material came from, and the test result of the material including supporting analytical results. Z. Mining to the elevation of 840 feet above mean sea level provided that the site is reclaimed to the elevation shown on the Site Grading Reclamation Plan dated January 2016. No haul-back is proposed for the 2016 calendar year. Should haul-back be brought to the site, it must comply with the Sand and Gravel Backfill Protocol dated January 2016. In no instance shall mining occur in the groundwater aquifer. AA. Blasting or the use of explosives is prohibited in the mining of the SKB Environmental, Inc. operation. BB. The City of Rosemount shall have the ability to collect independent soil and water samples. 2015 Mining Permit SKB Environmental, Inc../Ped -Kuznia Page 5 of 7 Karin L. Larson, Kimberly K. Ped and Grace Kuznia, Minnesota residents and owners of the properties for which this permit is issued, hereby consent and agree to the issuance of a mineral extraction permit for said properties and to the imposition of the foregoing conditions. Owners further agree and consent to entry onto said properties by the City, its officers, agents, contractors and employees and by the surety of the bond issued in accordance with paragraph O, its officers, agents, contractors and employees to take any action deemed necessary by the City to enforce and assure compliance with the conditions of this permit and law. Owners further agree that they will not bring any claims or legal actions against the City, its officers, agents, contractors or employees for damages arising out of issuance of this permit or administration or enforcement by the City of the conditions of this permit or of law. The foregoing agreements of Owners shall run with the land of said properties and shall bind the Owners, their heirs, successors and assigns. By: Karin L. Larson By: Kimberly K. Ped By: Grace Kuznia STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2017 by Karin L. Larson, Minnesota resident and property owner. Notary Public 2015 Mining Permit SKB Environmental, Inc../Ped -Kuznia Page 6 of 7 STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2017 by Kimberly K. Ped, Minnesota resident and property owner. Notary Public STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2017 by Grace Kuznia, Minnesota resident and property owner. Notary Public 2015 Mining Permit SKB Environmental, Inc../Ped -Kuznia Page 7 of 7 That _________________________ of SKB Environmental, Inc., the operator, hereby consents and agrees to the foregoing conditions of said mining permit. SKB Environmental, Inc. By: Its: _______________________ STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2017 by _______________________ of SKB Environmental, Inc., the operator. Notary Public ENVIRONMENTAL December 5, 2016 Kim Lindquist Community Development Director City of Rosemount RE: Ped/Kuznia/SKB Environmental Small Scale Mineral Extraction Permit Ms. Lindquist, SKB Environmental, 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 SKB that the land owners wish to continue the mineral extraction activities utilizing Carl Bolander&Sons, Inc. (Bolander) as the operator under a new permit. During 2016,the anticipated amounts 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 following conceptual conditions to the mining permit extension: SKB, in cooperation with Bolander,will procure and provide to the site clean soils during the 2017 construction season. SKB will contract with Bolander to perform the reclamation activities,since they will be operating the mining activities on the site going forward. However, SKB will be responsible for ensuring that all conditions of the permit, plans, and protocols are being met. SKB will ensure that Bolander conducts the reclamation according to the current Permit conditions, including the approved January 2016 Backfill Protocol,the January 2016 Sand and Gravel Mining Plan and Backfill Plan, and the January 2016 Stormwater Pollution Prevention Plan. No later than October 31, 2017, Bolander will conduct a survey on the reclamation area. If the approved grades have been achieved,topsoil will be replaced and reseeded. 251 Starkey St. • P.O. Box 7216 • St. Paul, MN 55107 651-224-6329 • FAX 651-223-5053 Printed on Recycled Paper. 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 johndo@wcnx.or or 651-224-6329. Thank you for your consideration. Sincerely, jv& i John Domke Divisional Vice President Excerpt Planning Commission Minutes January 24, 2017 5.a. Request by SKB Environmental for an Amendment to their 2016 Annual Mining Permit Considered an Interim Use Permit. (17-04-IUP) Community Development Director Lindquist gave a brief summary of the staff report. Commissioner VanderWiel inquired about the surety total amount. Staff deferred the question to the applicant. Chair Kenninger inquired about the wording of active mining since there is no mining happening at this time. The public hearing opened at 6:38 pm. Public comments: Ryan O’Gara, SKB Environmental representative, was on hand for any questions. He stated that he would need to get back to the Commission on the surety amount, but he thinks around $50,000. MOTION by VanderWiel to close the public hearing. Second by Clements. Ayes: 7. Nays: 0. Motion Passes. The public hearing closed at 6:40 pm. Additional Comments: Motion by Forster to Approve the Amended 2016 SKB Environmental Small Scale Extraction Permit Second by Mele. Ayes: 7. Nays: 0. Motion Passes.