HomeMy WebLinkAbout5.a. Koch Refining Zoning Ordinance Text Amendment - Spent Bauxite Facility IUPEXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: September 17, 1991
AGENDA ITEM: Koch Refining Zoning Ordinance
AGENDA SECTION:
Text -Amendment -Spent Bauxite Facility IUP
Old Business
PREPARED BY:
AGENDA tTEM # 5 A
Lisa Freese, Director of Planning
ATTACHMENTS: Memo, Ordinance, Petition
APPROVED BY:
Misc. Correspondence
el
As you will recall, the City Council held a public hearing regarding this
text amendment petition at the July 16, 1991 meeting. The hearing was
closed, but action was tabled on the amendment to allow City staff to meet
with Koch officials to discuss the Interim Use Permit requirements,
reimbursement of staff costs for permit review and the annual permit/host
community fees. City staff believes that an acceptable agreement on the
financial arrangements has been reached with Koch officials and is
recommending that the Council approve it. The attached staff memo
summarizes that agreement.
The text amendment permits spent bauxite disposal facilities in the General
Industrial zoning district only if they are accessory to a manufacturing
facility. The interim use permit standards and requirements are very
similar to those adopted for non -hazardous industrial waste containment
facilities.
The Planning Commission recommended approval of the text amendment which
they reviewed at the June 25 Regular Meeting. The Planning Commission also
reviewed and conditionally approved a grading permit application for the
project at their September 10 Regular Meeting. The attached memo also
summarizes those conditions.
RECOMMENDED ACTION: A motion to approve the financial agreement with
Koch providing for reimbursement of staff costs and an annual permit
fee.
RECOMMENDED ACTION: A motion to approve Ordinance No. B-12, AN
ORDINANCE AMENDING ORDINANCE B, CITY OF ROSEMOUNT ZONING ORDINANCE.
COUNCIL ACTION:
(0-ity of Rosemount
PHONE (612) 423-4411 2875 - 145th Street West, Rosemount, Minnesota MAYOR
FAX (612) 423-5203 Mailing Address: Vernon Napper
P. O. Box 510, Rosemount, Minnesota 55068-0510 COUNCIIMEMBERS
TO: Mayor Napper Sheila,XIassen
Council Members Willcox, Wippermann, Oxborough, Klasxborough
arry wilICOx
Dennis Wippermann
FROM: Lisa J. Freese, Director of Planning ADMINISTRATOR
Stephan Jilk
RE: Koch Refining Spent Bauxite Disposal Facility: Financial
Agreement and Grading Permit Review.
DATE: September 12, 1991
Financial Agreement:
Koch Refining has agreed to cover all City staff expenses
associated with the review and issuance of the Interim Use
Permit. Those expenses include cost of consultants retained by
the City to assist with review: Kirby Van Note of OSM
Engineering, Dean Johnson of Resource Strategies, and Eric
Short, City Attorney. As well, Koch also agreed to pay City
staff cost. The total reimbursed costs are not to exceed
$15,800.
Koch also agrees to pay an annual license fee of $4.50 per cubic
yard of spent bauxite deposited in the facility. The amount of
spent bauxite generated will be calculated based on a generation
rate of 0.46 cubic yards of spent bauxite per ton of raw bauxite
consumed. City Administrator Steve Jilk is recommending that
these terms be accepted by the City Council.
Koch also requested that the City consider using any of excess
funds resulting from annual fees, over and above the City's
administrative costs, to fund programs for the Rosemount
Independent School District.
Grading Permit Review:
At the Planning Commission's September 10 Regular Meeting, Koch
Refining's grading permit for the Spent Bauxite Facility was
reviewed and approved subject to the following conditions:
1. That Koch Refining enter into an agreement to reimburse
the City for all necessary inspection and testing costs
that exceed the fees collected for the grading permit.
2. That Koch Refining submit a Letter of Credit for $149,312
to cover the costs of restoration and insure reimburse of
inspection costs for 1) restoration of the site if permit
is not granted or the project does not proceed ($137,800)
6verylkings (Poming ( J6 gosemounlll
`J 1009,
Koch Refining Spent Bauxite Disposal Facility:
Financial Agreement and Grading Permit Review
September 12, 1991
2) administrative costs associated with restoration
and/or inspections ($5,512); and 3) contract inspection
costs ($6,000).
3. That Koch Refining agrees to pay legal costs associated
with executing the above agreement for reimbursements.
4. The Grading Permit issued shall only permit work as
described in the Technical Specifications under Division
2, Section 2 -Specifications for Clearing, Grubbing and
Stripping; and Division 3, Section 1.2.2 C -Common
Excavation. Installation of the Clay and Poly liners and
leachate collection system are not permitted under this
permit.
5. The Building Official shall not issue the grading permit
until the City Council approves the Zoning Ordinance Text
Amendment permitting Spent Bauxite Disposal Facilities in
the General Industrial District.
Attachments: PC Staff Review
Correspondence Regarding Financial Agreement
2
CITY OF ROSEMOUNT
ORDINANCE NO. B-12
AN ORDINANCE AMENDING ORDINANCE B
CITY OF ROSEMOUNT ZONING ORDINANCE
THE CITY COUNCIL OF THE CITY OF ROSEMOUNT, MINNESOTA ORDAINS AS
FOLLOWS:
SEQnON 1. Section 3.2 Definitions of Ordinance B - City of Rosemount Zoning
Ordinance is amended by adding the following definitions:
Spent Bauxite A non -hazardous industrial waste, consisting primarily of
aluminum oxide, aluminum silicate and silica material.
Spent Bauxite Disposal Faciliri A facility that accepts and land disposes of
only spent bauxite. A facility shall include containment cells, leachate collection
systems, monitoring systems and other appurtenances necessary for its
operation.
SECTION 2. Section 614 IG General Industrial District of Ordinance B - City of
Rosemount Zoning Ordinance is amended by adding the following:
D. Uses Permitted by Interim Use Permit
1. Spent Bauxite Disposal Facility as an accessory use only.
SECTION 3. Section 11 Performance Standards - All Districts of Ordinance B - City of
Rosemount Zoning Ordinance is amended by adding the following:
SECTION 11.4 SPENT BAUXITE DISPOSAL FACILITY
A. Permit applicants shall submit the following information together with any other
information requested by the City:
1. The proposed project layout including site drawings showing building locations,
access roads, buffers and major facilities.
2. Proposed technology and design.
3. A complete description of the proposed project's operation, including but not limited
to phasing and anticipated operating lifetime, description of waste, record keeping
methods, staffing, anticipated waste volumes, containment facilities, contingency and
response plans.
4. A description of anticipated traffic generated by the facility, routes to be used and
access to the site.
5. Identification of known and potential environmental risks associated with the
construction, operation and closure of the facility.
6. Closure, post closure and contingency plans, including financing plans.
7. A description of the existing site and surrounding area including current ownership
and land uses, current zoning, transportation access to the site, topography, existing
soil and hydrogeologic conditions, vegetation, wildlife, surface waters.
8. Need for City emergency services including fire, police, emergency response,
medical.
9. A description of the applicant's experience in operating the technology, proposed
training for all operation staff and the environmental record of technology.
B. Permits for spent bauxite disposal facilities shall only be issued if the following standards
are met or exceeded:
1. The facility must represent the best available technology for land disposal of spent
bauxite.
2. The operator and staff must have sufficient experience in the operation of such
facilities to ensure competent operation.
3. The design, construction and operation of the facility must minimize negative
environmental impacts and must mitigate such impacts to the fullest extent possible.
4. Public health, safety and welfare must be ensured.
5. Adequate closure, post closure and contingency plans must be established.
6. An emergency response plan must be established and accepted by the City.
7. All environmental studies required must be completed and declared adequate by the
responsible governmental units.
8. There must be adequate access to the site.
9. The proposed project must be compatible with surrounding land uses.
10. The applicant provides financial security sufficient to guarantee compliance with the
terms of the permit.
11. The economic benefits, incentives and other advantages to the City and community
must outweigh any known or potential negative aspects of the facility.
12. The applicant must demonstrate that reuse or recycling of spent bauxite is not
feasible during the term of the permit and that land disposal is the only practical
alternative.
13. An interim permit shall not be issued until all required local, state and/or federal
permits have been obtained by the applicant.
SECTION 4. This ordinance shall be effective immediately upon its passage and
publication.
ADOPTED this 17th day of September, 1991.
CITY OF ROSEMOUNT
ATTEST: Vernon J. Napper, Mayor
Susan M. Walsh, City Clerk
Published in the Farmington Independent this day of , 1991.
City of Rosemount NO:
Zoning Ordinance Text Amendment Petition
Date': June 20, 1991
Applicant: Koch Refining Company Phone: (612) 43.7-0700
Address: P. 0. Box 64596 St. Paul, Minnesota 55164
STATUS OF APPLICANT;
X Owner Buyer Lessee OTHER:
LOCATION: Loth_, Block NA _, Addition NA
Street Address: _13155 Courthouse Blvd Rosemount, MN 55068
Metes & Bounds Description Attached: YEs
Survey or Plot Plan Attached: jSee attached permit application
Affected Section(s): Section 6,,14 (General Tnrl»at-rial 7.nning 1)iat-)
REASON FOR REQUEST:
1. To allow applicant to construct and operate a spent bauxite disQosal facility
at its Sulfuric Acid Unit located at the above street address.
2.
Application received by:
Fee: $ How Paid:
FO OFFICEU NLY
Date:
Date:
Planning Commission Action: Date:
141 acres, more or less, in a continuous tract
generally described as:
1. All of the SW 1/4 NS 1/4 of Section 19, Township
115, Range 18.
2. The northeasterly approximately 35 acres of NW 1/4
SB 1/4 Section 19, Township 115, Range 18.
3. 8 acres in the NW corner of NB 1/4 SB 1/4 Section
19, Township 115, Range 18.
4. The easterly approximately 13 acres of SS 1/4 NB
1/4 Section 19, Township 115, Range 18.
5. 8 acres in the SW corner of NS 1/4 NS 1/4 Section
19, Township 115, Range 18.
6. An approximately 37 acre tract in the NW 1/4 NS
1/4 Section 19, Township 115, Range 18.
7. An approximately 2 acre tract on the southerly
line of and in SW 1/4 SB 1/4 of Section 18,
Township 115, Range 18.
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: September 3, 1991
AGENDA ITEM: Koch Refining Zoning Ordinance
AGENDA SECTION:
Text Amendment -Spent Bauxite Facility IUP
Old Business
PREPARED BY:
AGENDA NO.
Lisa Freese, Director of Planning
ATTACHMENTS: Ordinance, Petition
APPROVED BY:
Misc. Correspondence
As you will recall, the City Council held a public hearing regarding this
text amendment petition at the July 16, 1991 meeting. The hearing was
closed, but action was tabled on the amendment to allow City staff to meet
with Koch officials to discuss the Interim Use Permit requirements,
reimbursement of staff costs for permit review and the annual permit/host
community fees. At this point City staff believes that progress has been
made and an acceptable agreement on the financial arrangements can be
reached with Koch officials before the Council meeting on Tuesday. So it
would be appropriate for the Council to consider action on the text
amendment petition.
The text amendment permits spent bauxite disposal facilities in the General
Industrial zoning district only if they are accessory to a manufacturing
facility. The interim use permit standards and requirements are very
similar to those adopted for non -hazardous industrial waste containment
facilities.
The Planning Commission recommended approval of the text amendment which
they reviewed at the June 25 Regular Meeting.
RECOMMENDED ACTION: A motion to approve Ordinance No. B-12, AN
ORDINANCE AMENDING ORDINANCE B, CITY OF ROSEMOUNT ZONING ORDINANCE.
COUNCIL ACTION:
eity of (Rosemount
PHONE (612) 423-4411 2875 - 145th Street West, Rosemount, Minnesota
FAX (612) 423-5203 Mailing Address:
P. O. Box 510, Rosemount, Minnesota 55066-0510
TO: Planning Commission
FROM: Lisa Freese, Director of Planning
DATE: July 5, 1991
SUBJ: July 9, 1991 Regular Meeting Reviews
ATTACHMENTS: PROPOSED TEXT AMENDMENT
ZONING PETITION
EXECUTIVE SUMMARY
LOCATION MAPS AND SITE PLAN
METROPOLITAN COUNCIL REPORT
4A.
MAYOR
Vernon Napper
COUNCILMEMBERS
Sheila Klassen
John Oxborough
Harry Willcox
Dennis Wippermann
ADMINISTRATOR
Stephan Jilk
RECOMMENDED MOTION: Motion to recommend that the City Council
consider the concept of allowing a spent bauxite disposal facility
as an accessory use via interim use permit and to recommend that
the City Council establish a dialogue with Koch Refining Company
to determine whether or not the interim use permit
issues/ requirements can be resolved (as proposed in the attached
ordinance) prior to taking final action on a zoning ordinance text
amendment of this nature.
NATURE OF REQUEST:
Koch Refining Sulfuric Acid Unit has petitioned the City to amend
the Zoning Ordinance to permit a Spent Bauxite Disposal Facility
as an interim use in the General Industrial (IG) Zoning District.
Spent Bauxite is a waste material consisting primarily of residual
solids including aluminum oxide, aluminum silicate, silica material
and other metallic oxides. These materials are considered non-
hazardous solid-
waste.
DISCUSSION:
Presently the Zoning Ordinance does not permit such disposal
facilities in the IG District. The Ordinance currently requires
that waste management activities occur in the Waste Management
Zoning District as interim uses. While it is clearly preferential
to restrict waste management activities that are principal uses to
the Waste Management Zoning District (i.e USPCI--Minnesota
Industrial Containment Facility), Planning Staff realizes that some
flexibility must be given to those manufacturers that produce waste
by-products to allow them to have accessory disposal facilities on
site. Generally, allowing such accessory disposal facilities
provide convenience and cost saving to the manufacturer.
6very1hings COoming (Up gosemouni.!
0 1001k rc.c rea wur
Koch Refining Company - Zoning ordinance Text Amendment
spent Bauxite Facility Request
Even though the proposed disposal facility is a single purpose
facility and will not be accepting waste from other generators, it
is still important for the City to regulate it in a manner that
insures that the community's health and safety are protected. The
Interim Use Permit provision of the Zoning Ordinance is the best
tool available to the city to require appropriate assurances. The
proposed ordinance requires standards that are similar to those
required for USPCI's proposed industrial waste containment
facility. In concept Planning Staff believes that these standards
also seem appropriate for the proposed Spent Bauxite Disposal
Facility, but representatives of the City and Koch Refining have
not met to discuss the potential permit requirements. Therefore,
it is Planning Staff's recommendation that such discussions should
begin prior to any final approval of the ordinance by the City
Council so that the proposed standards are determined appropriate
for this facility.
2
EXECUTIVE SUMMARY
KOCH REFINING COMPANY
SULFURIC ACID UNIT
SPENT BAUXITE DISPOSAL FACILITY EXPANSION
Description of Spent Bauxite Residual
The spent bauxite material discharged to the settling basin consists of the
residue from the third washing of the digested bauxite ore. The physical
appearance of the spent bauxite solids is similar to a grey, gritty sand. The
grain size distribution (Figure 2) indicates that the solids have an estimated
uniformity coefficient (Dbo/Dio) of 150 and an estimated coefficient of
curvature (D3o2/Dbo x Dio) of 2.7. The material is about 68 percent sand -sized,
17 percent silt -sized and 15 percent clay -sized particles. According to the
Unified Soil Classification, the solids would fall into the GW soils group,
indicating well -graded gravel or gravel -sand mixtures with little or no fines.
Using the USDA textural classifications system, the material would be considered
a sandy loam. Laboratory test performed on samples of the spent bauxite
indicate the moisture content of the material is about 47 percent at placement
and about 40 percent to 43 percent at field capacity.
Primary constituents of the residual solids are aluminum oxide, aluminum
silicate and silica material. Minor constituents are iron, titanium, and
metallic oxides.
Results of titration experiments with the saturated solids and with the
supernatant indicate that the residual acts as a weak acid with a pK. of about
3.6. This is to be expected, since alum is produced by reacting a weak base
(aluminum oxide) with a strong acid (sulfuric acid). The pH of the supernatant
is about 3. Supernatant discharged with the spent bauxite contains high
concentrations of total dissolved solids, mainly aluminum and sulfate which are
the ionic products of alum solvation. Other ionic constituents are generally
present in minor quantities. Organic and carbonate constituents of the bauxite
ore are converted to carbon dioxide and steam and emitted from the reactor
during the digestion step.
Description of Expansion
The proposed horizontal expansion of the KSAU spent bauxite disposal facility
will be located immediately adjacent to the site. The new facility will provide
a location for the continued disposal of spent bauxite. The existing basin and
horizontal expansion are located entirely within Koch Sulfuric Acid Unit
property.
The existing basin is 200 feet wide be 600 feet long and is surrounded by
containment dikes approximately 8 feet high with a three horizontal to one
vertical side slope. When constructed, the existing basin was approximately 16
feet deep and had a permitted capacity of 70,000 cubic yards. The bottom of the
existing facility and the core of the surrounding dikes were constructed of
compacted spent bauxite. The bottom liner of the existing facility was
constructed of 4 feet of compacted spent bauxite. The core of the surrounding
dikes was also constructed of compacted spent bauxite. The inside slopes were
covered with approximately one foot of compacted common excavation. The outside
slopes were covered with compacted common excavation and one foot of topsoil.
The proposed horizontal expansion of the KSAU spent bauxite disposal facility
will be 275 feet by 600 feet with a capacity of approximately 60,000 cubic
yards. The new basin will be lined with a composite liner system consisting of
a clay layer compacted to a thickness of 2 feet, overlaid by a 60 mil high
density polyethylene (HDPE) liner. The liner and inside slopes will be
constructed at a 4:1 slope with the minimum of about 3 feet of fill and/or spent
bauxite over the liner to act as frost protection. The outside slopes will be
graded at a 4:1 slope.
The proposed basin will also contain a leachate collection system installed
along the basin centerline. The slotted leachate collection pipe will be
surrounded by a coarse filter material and will drain by gravity into a
collection manhole at one end of the basin. The collected leachate will be
pumped back to the alum plant for recycling. The basin slopes and bottom will
be constructed of fill material capable of conveying drainage to the collection
system.
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94KOCH
KOCH REFINING COMPANY
September 4, 1991
Mr. Stephan Jilk
City Administrator
2875 145* -n Street West
Rosemount, Minnesota 55068
Dear Mr. Jilk:
This letter is in response to your correspondence dated August 30, 1991,
regarding Koch Refining Company's spent bauxite disposal facility expansion
project. After reviewing and carefully considering your comments Koch is
amending its previous proposal to include the following:
1. In addition to reimbursements agreed to in Koch's August 28,
1991, correspondence, Koch also agrees to reimburse the City for
1991 City Staff expenses associated with review and issuance of
an Interim Use License under the Comprehensive Guide Plan
amendment and zoning amendment for Koch's proposed Spent Bauxite
Disposal Facility Expansion. Reimbursed expenses are not to
exceed $2,800;
2. Total reimbursed fees are not to exceed $15,800.
3. Koch agrees to pay an annual license fee of $4_50 per cubic yard
of spent bauxite deposited. It should be noted that the City's
proposed fee is based on an annual spent bauxite generation rate
of 6,000 cubic yards. However, the additional costs of licensing
will have an impact on the economics of operation. Therefore,
alum production and spent bauxite generation will be managed to
remain competitive in the marketplaces.
4. The spent bauxite generation rate will be determined according to
the conversion factor calculated in the attached worksheet
entitled "CALCULATION OF SPENT BAUXITE GENERATION". The above
fee will be calculated based on a generation rate of 0.46 cubic
yards of spent bauxite per ton of raw bauxite consumed.
5. In addition to recovering administrative costs, Koch also
requests that the City consider using any excess funds resulting
from the annual licensing fee to subsidize existing programs, or
to establish new programs, within the Rosemount Independent
School District.
P.O. Box 64596 . Saint Paul, Minnesota 55164-0596 ■ 612/437-0700
Mr. Stephan Jilk September 4, 1991
Page 2
Koch hopes that the City of Rosemount finds these amendments acceptable.
During your review and the drafting of the permit, if you or your staff have
any questions, please do not hesitate to contact Tony Foreman of our staff.
Sincerely,
Michael J. Hansel
ilp� Manager of Environmental Engineering
AGFlagf
Attachment
cc: Lisa Freese, City of Rosemount
Phil Solseng, Barr Engineering Company
CALCULATION OF SPENT BAUXITE GENERATION
Koch Sulfuric Acid Unit
Alum Production
September 1991
The spent bauxite generation rate is based on a simple mass balance of
aluminum oxide (A1203) around the alum process. Basis: 1 ton of raw bauxite
ore.
Raw Bauxite Feed
Raw bauxite ore has an aluminum oxide concentration of 49 - 53 wt. percent.
The inlet mass of A1203 at a concentration of 50% is calculated as follows:
(A) (0.50) X (1 ton) = 0.50 tons of A1203
Dry Alum Production
Based on current operating records, 1 ton of raw bauxite produces 2 tons of
dry alum product. Dry "alum" has the following chemical composition:
Aluminum sulfate 81.7 - 82.7%
Total Alumina, A1203 17.0 - 17.5%
Total Iron as Fe2O3 0.3 - 0.82
The mass of AlzO3 remaining in the final dry alum product is calculated based
on a concentration of 17 wt. is
(B) (0.17) X (2 tons) = 0.34 tons of A103
-
Spent Bauxite Residual
Based on laboratory analyses, the solid fraction of the final spent bauxite
slurry contains 170,000 mg/kg,of aluminum constituents. Assuming the majority
of the aluminum residuals is in the form of A1.03, the amount of A1203
remaining in the spent bauxite is:
(C) (0.17) X (generation rate of spent bauxite) = amount of A1203
Mass Balance
Based on the above equations, the mass balance of for A1203 is,
(A) = (B) + CC).
0.50 = 0.34 + (0.17)(generation rate)
Therefore, the generation rate of spent bauxite is 0.94 wet tons per ton of
raw bauxite. This is equivalent to 0.46 cubic yards of spent bauxite per ton
of raw bauxite consumed based on a -specific gravity of 2.44.
PHONE (612) 423-4411
FAX (612) 423-5203
August 30, 1991
s�� 5
(Pity of Rosemount
2875 - 145th Street West, Rosemount, Minnesota
Mailing Address:
P. O. Box 510. Rosemount, Minnesota 55068-0510
Mr. Michael J. Hansel
Manager of Environmental Engineering
Koch Refining Company
P. 0. Box 64596
St. Paul, MN 55164-0596
RE: City of Rosemount
Permit Review Costs
Koch Refining
Spent Bauxite Disposal Facility Project
Dear Mike:
MAYOR
Vernon Napper
COUNCILMEMBERS
Sheila Klassen
John OxboroUgh
Harry Willcox
Dennis Wippermann
ADMINISTRATOR
Stephan Jilk
Thank you for your response regarding the City's proposal for
cost reimbursement and "annual license fee" for the permitting
and operation of the expanded Spent Bauxite Facility. I
appreciate the consideration the .company has given to both of
these. Consideration and agreement on them was necessary for us
to move forward on the permitting process since that is the
direction our City Council has given staff on these issues.
I would hope that our discussion and consideration on the numbers
involved not become lengthy, as a quick resolution would.result
in moving ahead. I do find a need to respond to your proposal
though, to point out a few concerns we have with it and
suggestions for changes.
As I noted in my previ
determined that waste
greater demand on Citi
to monitor and manage.
these projects create
related development pt
City services.
ous letter, the City of Rosemount has
management type facilities "create a
staff, City Council and City consultants
..". The City has also determined that
little tax base for economic and business
.rposes while causing additional demands on
The City has taken the position that Koch's Spent Bauxite
Disposal Facility is to be considered part of your operating
process and that it is more economically feasible to operate your
own facility rather than dispose of the material at another
disposal site. The City, in its attempt to manage all solid
waste projects in the City, has been working towards
consolidating the location of these types of facilities.
&vertyIl11119s (Pominq 114 J�osemounlP
Mr. Michael J. Hansel
August 30, 1991
Page 3
This issue of "annual license fee" does not have to be settled
immediately, but it will need to be decided prior to issuance of
the interim use permit which is more or less the final approval
needed to get the project going. It may be much easier for the
City Council to see the merits of the project if this issue can
be resolved quickly.
I would ask your consideration of these comments and ask your
response as soon as feasible. I would be pleased to discuss this
with you.
Sincerely,
Ste han Jilk
City Administrator
SJ/dw
cc: Lisa Freese, Planning Director
Eric Short, City Attorney
Sue VanderHeyden, Assistant City Administrator
Mr. Stephan Jilk August 28, 1991 Page 2
Annual License Fee
Based on estimates provided in the City's August 16, 1991, correspondence, the
following rates are Calculated:
Engineering Consultants rate S66/hr
City Staff rate 330/hr
Assuming 20 hours per quarter for engineering review and 8 hours per quarter
for staff review, the following review -based fee is calculated:
Engineering review
City staff review
Estimated annual City review costs
(20x4x66) $5,280 per year
(8x4x30) $960 per year
$6,240 per year
Based on a generation rate of approximately 6,000 cubic yards per year, the
proposed fee would be $1.04 per cubic yard. Therefore, Koch suggests an
annual license fee of $1.04 per cubic yard of spent bauxite, to be paid
quarterly on the actual amount of spent bauxite generated. Each quarter Koch
will submit to the City copies of the state and county groundwater monitoring
and operations reports which will include the amount of spent bauxite
generated in the previous calendar quarter. A check for the calculated
license fee amount for that quarter will also be submitted.
Koch hopes that the City of Rosemount finds this proposal acceptable and looks
forward to working with the City as the licensing process proceeds. If you or
your staff have any questions, please contact Tony Foreman at 437-0513.
Sincerely,
Michael J. Hansel
Manager of Environmental Engineering
AGF/agf
CC-. Lisa Freese, City of Rosemount
Bonnie Nelson, MPGA
Jon Springsted, Dakota County Public Health Department
Phil Sol.seng, Barr Engineering Company
Post -It'" brand fax transmittal memo 7671
# of pages ► �f
To
From
Co.
Co.
Dept.
Phone #
Fax #
Fax #
T
KOCH REFINING COMPANY
Mr. Stephan Jilk
City Administrator
2875 145th Street West
Rosemount, Minnesota 55068
Dear Mr_ Jilk:
August 28, 1991
Koch Refining Company requests the City of Rosemount issue an interim use
license under the Comprehensive Guide Plan amendment and zoning amendment for
Koch's proposed Spent Bauxite Disposal Facility Expansion.
It is understood and agreed that entering into negotiations will not be used
by either party to prejudice the rights of the other with reference to any
requested license issuance, zoning matters, or other matters relating to the
facility.
Accordingly, Koch Refining Company is willing to reimburse the City of
Rosemount for reasonable and necessary expenses incurred by the City for the
review of the requested license, permits, zoning, etc., needed for this
project.
Koch has reviewed the City's projected scope of expenses and budget
representing potential City costs and finds it acceptable with the following
modifications:
1. Koch agrees to reimburse the City for the 1991 City Attorney fees
in an amount not to exceed $2,800;
2. Koch agrees to reimburse the City for 1991 planning and
engineering consultants fees in an amount not to exceed $10,300;
3. Koch requests that the City submit to Koch copies of work scopes
for the planning and engineering consultants;
4. However, Koch does not agree to reimburse the City for 1991 City
Staff expenses estimated at $2,700.
Koch understands that the permitting and monitoring associated with this
facility will place a greater demand on the City's resources. Therefore, as
outlined in the City's proposal dated August 16, 1991, Koch is prepared to pay
an annual license fee that would help defray the costs associated with the
additional monitoring requirements. However, in calculating the annual fee
Koch requests that the City consider the following alternative:
P.O. Box 64596 ■ Saint Paul, Minnesota 55164-0596 ■ 612/437-0700
Mr. Stephan Jilk August 28, 1991 Page 2
Annual License Fee
Based on estimates provided in the City's August 16, 1991, correspondence, the
following rates are calculated:
Engineering Consultants rate $66/hr
City Staff rate $30/hr
Assuming 20 hours per quarter for engineering review and 8 hours per quarter
for staff review, the following review -based fee is calculated:
Engineering review
City staff review
Estimated annual City review costs
(20x4x66) $5,280 per year
(8x4x30) $960 per year
$6,240 per year
Based on a generation rate of approximately 6,000 cubic yards per year, the
proposed fee would be $1.04 per cubic yard. Therefore, Koch suggests an
annual license fee of $1.04 per -cubic yard of spent bauxite, to be paid
quarterly on the actual amount of spent bauxite generated. Each quarter Koch
will submit to the City copies of the state and county groundwater monitoring
and operations reports which will include the amount of spent bauxite
generated in the previous calendar quarter. A check for the calculated
license fee amount for that quarter will also be submitted.
Koch hopes that the City of Rosemount finds this proposal acceptable and looks
forward toworkingwith the City as the licensing process proceeds. if you or
your staff have any questions, please contact Tony Foreman at 437-0513.
Sincerely,
Michael sel
Manager of Environmental Engineering
A6Flagf
cc: Lisa Freese, City of Rosemount
Bonnie Nelson, MPGA
Jon Springsted, Dakota County Public Health Department
Phil Solseng, Barr Engineering Company
Ste
(Piiy of (Rosemount
PHONE (612) 423.4411 2875 - 145th Street West, Rosemount. Minnesota MAYOR
FAX (612) 423-5203 Mailing Acloress: Vernon Napper
P. O. Box 510, Rosemount, Minnesota 55068-0510 COUNCILMEMBERS
Sheila Klassen
John Oxborough
Harry Willcox
Dennis Wippermann
August 16, 1991 ADMINISTRATOR
Stephan Jilk
Mr. Tony Foreman
Koch Refining Corporation
P. O. Box 64596
St. Paul, MN 55164
RE: City of Rosemount
Permit Review Costs
Koch Refining
Spent Bauxite Disposal Facility Project
Dear Tony:
Pursuant to our discussion, I am submitting four items for your
consideration in regards to the City of Rosemount's review and
potential approval of the permit for the Spent Bauxite Facility.
They are:
1. A proposed budget for City costs in providing staff and
consultants to complete all phases of the land use and
project permit review and processing
2. A letter, I would recommend, that Koch Refining could
use to indicate their commitment for payment to the
City for these costs.
3. A proposed payment for City fees to be termed "Annual
Permit Fees" which will be paid on an annual basis for
renewing and maintaining the Interim Use Permit for
this project.
4. A proposed schedule for processing the related issues
on this.process as drafted by Lisa Freese, our Director
of Planning. As outlined in the schedule, if we
attempt to work through this process such that a
interim use permit could be considered by 10-1, this
will require a "fast track" approach by the City and
its consultants. In order to proceed through, we would
need your commitment on the cost reimbursement concept
and an initial reaction to the "annual permit" fees
by 8-28-91
Sveryltltngs CCoviztti2q `���P gosemous�t�,
Mr. Tony Foreman
August 16, 1991
Page 2
As I had indicated, I will process these documents through you
for distribution and consideration as necessary.
Thank you for your consideration of these items and I look
forward to hearing from you on these issues so that the City may
continue to work with you on your project.
Sincerely,
St han Jil
City Administrator
SJ/ dw
Enclosures
cc: Eric Short, City Attorney
Sue VanderHeyden, Asst. City Administrator
Lisa Freese, Planning Director
PROPOSED BUDGET
CITY OF ROSEMOUNT
CONSULTING FEES
KOCH SPENT BAU%ITE CONTAINMENT FACILITY PROJECT
AUGUST 9, 1991
CITY ATTORNEY: Estimated Cost
- Public Hearings, 4 hours
- Meetings with City Staff, 12 hours
- Preparation, Documents, Review, 10 hours
Total 26 hours
PLANNING CONSULTANTS:
$ 2,800.00
- Review Permit Application Documents, 20 hours
- Meetings with City Staff & Other Consultants, 15 hrs.
- Prepare and Submit Review Comments on Permit
Documents, 15 hours
- Public Hearings, 5 hours
Total 55 hours
ENGINEERING CONSULTANTS:
$ 4,600.00
- Review and Report on Permit Documents & Plans:
Facility Design
Hydrogeologic Data
TCLP Analysis
Stormwater Management
Financial Assurances
Closure, Post Closure & Contingency Plans
Construction Techniques
- Meet with City Staff & Environmental Consultants
Total 86 hours $ 5,700.00
CITY STAFF•
- Land Use Application Review, IUP Permit Application
Review, Meetings with Consultants, Koch Refining &
Public Meetings
Total 90 hours 1 2.700.00
TOTAL $ 15,800.00
Mr. Stephan Jilk
City Administrator
2875 - 145th Street West
P. 0. Box 510
Rosemount, MN 55068
Dear Mr. Jilk:
We request that the City
of an interim use permit
and zoning amendment for
Facility.
enter into with us concerning the terms
for Comprehensive Guide Planamendment
our proposed Spent Bauxite Containment
Without getting into the respective positions of the City and
Koch, and realizing that entering into negotiations will not be
used to prejudice the rights of either party, we do wish to
proceed with negotiations regarding the above referenced items
and are willing to do so at our expense, as outlined below.
It is understood and agreed that entering into negotiations will
not be used by either party to prejudice the rights of the other
with reference to any requested permit issuance, zoning matters,
or other matters relating to the facility.
Accordingly, Koch Refining Corporation is willing to reimburse
the City of Rosemount for reasonable and necessary expenses
incurred by the City, subsequent hereto, for the review of the
requested permits, zoning, etc., needed for this project.
We have reviewed your projected scope of expenses and budget
representing potential City costs and we find it acceptable. We
agree to review and consider updated budget figures as they
relate to this project as your work proceeds.
Thank you.
Very truly yours,
Koch Refining Corporation
Project: Koch Refining - Bauxite Disposal Facility
Item: Annual Permit Fees
The proposed Koch Refining Bauxite Disposal Facility is
considered a "Waste Management" project in the City of Rosemount.
The City of Rosemount has determined that these types of
facilities create a greater demand on City staff, City Council
and City consultants to monitor and manage from the City's
perspective in its enforcing role. The City has also determined
that these projects create little tax base for economic and
business related development purposes while causing additional
demands on City services.
To offset these factors, the City has taken the position that
these projects will pay additional fees for their permitting and
operational requirements. One of these payments will be based on
the amount of material processed and/or stored in the facility.
The proposed facility has an estimated capacity of 60,000 cubic
yards of material in which capacity will be reached in 10 to 15
years. It is requested by the City of Rosemount that the annual
permit fee for the operation of this facility will be set by
determining the estimated number of cubic yards to be placed in
the facility and the payment of $7.00 per yard for each yard
deposited.
To calculate the estimated number of yards to be deposited, we
will take the estimated capacity being 60,000 cubic yards and
divide by 10 years which is the expected lower end of the life of
the project. This would amount to 6,000 x 7 = $42,000 per year
as a permit renewal fee. This payment requirement would be part
of the interim use permit and would be paid at the end of each
twelve month period following the first date of the first permit
year.
After the tenth year of operation of this facility, the estimated
remaining capacity of the facility will be reviewed. If the
facility still has capacity at that time and the 60,000 cubic
yards has not been reached, further payments will be required
until the capacity of the facility has been reached at the rate
of $7.00 per cubic yard as determined by review of the operation
of the facility by the City.
*.* * * * * M E M 0 * * * * * *
TO: Steve Jilk, City Administrator
FROM: Lisa Freese, Director of Planning
DATE: August 21, 1991
RE: Tentative Schedule for Public Review/Koch Refining
Spent Bauxite Facility
Assuming that the issues regarding permit fees and reimbursement
of staff costs are resolved by Monday, August 27, the tentative
review schedule would be:
DATE ACTION
8/28 Planning Commission (PC): General Update
9/3 City Council (CC): Zoning Ordinance Approval
9/10 PC: Draft Interim Use Permit (IUP) Issues
9/17 CC: Draft IUP Discussion, Set Public Hearing
for IUP
9/24 PC: Final IUP Recommendations
10/1 CC: IUP Public Hearing
Please note that if the decisions regarding permit fees and other
financial issues are delayed, the above schedule may need to be
pushed back 2 weeks.
dw
Koch Refining Company Administration Expansion
This new 150,000 square foot Koch Refining Company
Administrative Facilities Expansion Project will include a new
administration building addition, existing administration
building remodeling and new laboratory, cafeteria and
employee change house buildings, along with realignment of
site traffic, truck loading scales and security gates.
Ellerbe Becket Construction Services, Koch's Design Builder,
has planned the $17.6 million project to improve the refiner-
ies work place environment and to facilitate a workforce
growth over the next five years.
M
t KOCH
KOCH REFINING COMPANY
ELLERBE BECKET
CONSTRUCTION
SERVICES
Design/Builder
i
z
This new 150,000 square foot Koch Refining Company
Administrative Facilities Expansion Project will include a new
administration building addition, existing administration
building remodeling and new laboratory, cafeteria and
employee change house buildings, along with realignment of
site traffic, truck loading scales and security gates.
Ellerbe Becket Construction Services, Koch's Design Builder,
has planned the $17.6 million project to improve the refiner-
ies work place environment and to facilitate a workforce
growth over the next five years.
M
t KOCH
KOCH REFINING COMPANY
ELLERBE BECKET
CONSTRUCTION
SERVICES
Design/Builder