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HomeMy WebLinkAbout6.q. Renewal of Danner, Inc. Small Scale Mineral Extraction Permit for 2018 EXECUTIVE SUMMARY City Council Meeting Date: December 19, 2017 AGENDA ITEM: Renewal of Danner, Inc. Small Scale Mineral Extraction Permit for 2018. AGENDA SECTION: Consent PREPARED BY: Kyle Klatt, Senior Planner AGENDA NO. 6.q. ATTACHMENTS: Location Map, Draft 2018 Mineral Extraction Permit, Letter from Applicant, Mineral Extraction Status Map, Fill Area Grading Plan, Soil Test Report from Braun Intertec (Summary Pages), Site Photos, Aerial Images, Planning Commission Minutes Excerpt APPROVED BY: LJM RECOMMENDED ACTION: Motion to Approve a Renewal of the Danner, Inc. Small Scale Mineral Extraction Permit for 2018, Subject to the Terms and Conditions in the 2018 Conditions for Mineral Extraction. SUMMARY The applicant Danner, Inc. is requesting renewal of their annual mining permit for the 2018 calendar year. The small scale mineral extraction operation is located at 4594 145th Street East in the eastern portion of the City. Small Scale Mineral Extraction is permitted in the City as an Interim Use within specified areas, and the permit for such uses expires after one year. The Danner site has been operating as a mine for several years, and the request for renewal is consistent with similar renewals that have previously been issued for the site. Applicant & Property Owner(s): Marlon L. Danner of Danner, Inc. Location: 4594 145th Street East – one half mile east of US Highway 52 and one quarter mile south of CSAH 42 Area: 75 Acres Comp. Guide Plan Designation: BP – Business Park; MDR – Medium Density Residential; HDR – High Density Residential Current Zoning: AG – Agriculture The applicant, Marlon Danner of Danner, Inc., requests renewal of the existing Small Scale Mineral Extraction permit for 2018. Staff is not aware of any issues associated with any site mining and haulback since the last review. Please note that the approved permit allows the applicant to perform grading work in the northern portion of the site; however, 2017 was the first year grading work had occurred in that area. This summer, the applicant notified staff that grading would start in accordance with the approved plans, but also requested that the phasing be swapped so that work could commence along Highway 42 (the approved phasing plan specified that work would start in the south and move northerly to the road). Because the final grades and amount of fill were not changed from the grading plan, staff approved the change in phasing earlier this year. The plans submitted for the 2018 renewal reflect the updated phasing for grading. 2 Staff recommends approval of the request based upon a review of the information submitted by the applicant, the mineral extraction standards in Section 11-10-4 of the City Code, City Police records, and the attached permit. PLANNING COMMISSION REPORT The Planning Commission reviewed the Interim Use Permit renewal request at their meeting on November 28, 2017. There were no comments during the public hearing, and the Commission asked a few general questions about the mineral extraction operation. As part of its presentation, staff noted that the City has not received an updated topographic survey of the property for several years. While the overall activity within the mine is low enough that a yearly survey is not necessary, staff did recommend that the applicant provide updated information concerning the grades on the site. Since the Planning Commission meeting, the applicant provided an updated status map with spot elevations taken throughout the active portion of the mine. This updated plan is attached for consideration by the City Council and addresses the condition adopted by the Commission. In reviewing the provided survey information, the lowest portion of the active mining extends down to an elevation of approximately 840 feet. 840 feet is the lowest elevation allowed under the terms of the Danner Mineral Extraction Permit. There are a few instances where mining has occurred below this level, and the lowest surveyed elevation within the mine actually extends down 2.1 feet below the permitted amount. This compliance issue has been discussed with the applicant, who must bring any areas currently below the 840 elevation back into compliance and maintain this elevation as mining progresses into new areas. The applicant will be asked to provide a complete topographic survey for the entire site with the next annual renewal, and staff will work with the applicant to ensure that any low areas are brought back into compliance before any additional excavation occurs on the property. The Planning Commission unanimously adopted a motion to recommend approval of the Danner Small Scale Mineral Extraction permit for 2018 subject to the conditions in the attached 2018 Conditions for Mineral Extraction and with one additional condition that has since been addressed by the applicant. BACKGROUND Based on a recent permit renewals and a discussion with the applicant, the Danner operation extracted approximately 40,000 tons of sand and gravel in 2014, and approximately 65,000 tons of material for each year from 2015 through 2017. The applicant has noted that it expects to extract the same amount of material in 2018 as it has in each of the last three years, with the possibility of moving slightly more depending on market conditions. In addition to the excavation activity, Danner continues to import material to the site for future reclamation. Over the past year, the applicant reports that there were 12,100 cubic yards of “haulback” material brought to the site from a combination of local government road improvement projects and other redevelopment projects in the area. Danner’s application materials include the testing performed by Braun Intertec on this haulback material; staff has attached the introductory sections of the testing report for review. Braun Intertec’s testing found that the soils “meet the requirements of the 2014 Conditions for Small Scale Mineral Extraction Permit for Danner and the Borrow Pit Reclamation Protocol, along with complying with the MPCA guidance for Best Management Practices for the Off-Site reuse of Unregulated Fill.” 3 The site plans submitted with the renewal request indicate that active mining activity continued in the southerly portions of Phases One and Two of the overall site. Based upon the plan and site inspection, stockpiling is occurring in the northern portion of Phase One and Two or areas designated for future phases. The drawing submitted illustrates the shaded area is a combination of stockpiling, circulation, and mining activity. This work area is greater than just the mining function. The application also indicates that little restoration is occurring due to stockpiling of material. In general, the City expects reclamation to occur as mining reaches the approved elevations. Because it has been several years since the City received an updated site survey from the applicant describing the current conditions of the site, staff is requesting that the applicant provide an updated site survey for the mineral extraction area prior to approval of the permit by the City Council. The applicant has agreed to the condition and will work to obtain the survey in a timely manner. During the previous review, staff noted that there was storage taking place on the property unrelated to the mining activity. The permit was therefore updated last year to limit the number of storage trailers allowed on the property. Based on staff’s site visit in October of 2017 and evidence from recent air photographs of the site, the applicant is in compliance with this requirement. Grading work is expected to continue throughout 2018, and must adhere to the approved grading plan (as updated to reflect the revised phasing plan). The intent of the grading is to create a level site with access from Highway 42 for future development. ISSUE ANALYSIS Aggregate mining is reviewed through an interim use permit which is a Quasi-Judicial action. As such, the City has a set of standards and requirements for review. Generally, if the applications meet the ordinance requirements they must be approved. The standards and requirements for this mineral extraction are detailed in Section 11-10-4 of the Zoning Ordinance and the attached Mineral Extraction permit. 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 current land use, zoning, and future land use information for the surrounding properties. These properties are all currently zoned Agricultural or Agricultural Preserve and are located within the 2030 Metropolitan Urban Service Area (MUSA). The 2030 Future Land Use Map anticipates a mixture of residential and business park uses in this area. Surrounding Land Use and Zoning Information Direction Current Land Use Zoning Guided Land Use North Agriculture Agricultural BP – Business Park South Agriculture Agricultural Preserve MDR – Medium Density Residential HDR – High Density Residential East Agriculture Agricultural BP – Business Park West Agriculture/Mining Agricultural BP – Business Park The proposed Comprehensive Plan update shifts all of the planned business park development north of Highway 42, while retaining medium and low density residential development over the present mining and grading area. This shift in future land uses does not have any direct impact on the mining operation, although future reclamation of the site will need be performed before an impacted area may be developed for housing. 4 Access to the Danner mine comes from County Road 42 via a gravel road along the eastern edge of the property. This road is shared with the Bolander mine to the west. The applicant maintains a private access agreement with the neighboring property to coordinate mining levels and allow continued access to both the sites. The permit application notes that haul roads within the City will continue to be County Road 42 to State Highway 52. The annual renewal for mineral extraction permits includes a site inspection and consultation with the Rosemount Police Department regarding any police activity. Police records noted no activity at the subject property to date in 2017. Staff has drafted an updated permit and conditions (attached) as part of its review. RECOMMENDATION Staff and the Planning Commission recommend approval of this request based upon a review of the information submitted by the applicant, the mineral extraction standards in Section 11-10-4 of the City Code, City Police records and the attached permit. Danner Mine Property Information 0 1,750 3,500875 ft 0 525 1,050262.5 m 1:19,200 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. 1 Mineral Extraction Permit 2018 Conditions for Small Scale Mineral Extraction Permit DANNER, INC. A Danner Inc., hereinafter referred to as the “Property Owner”, shall sign a written consent to these conditions binding itself and its successors or assigns to the conditions of said permit. 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 the eastern half of Phase Two and the entire Phase One (approximately 19.5 acres) on Exhibit A, Mineral Extraction Permit Status Map, which is attached hereto as an exhibit. Regrading and reclamation is granted for the area designated Phase I on Exhibit A. Mineral Extraction Permit dated 10-24-2016. Reclamation in Phase I should occur over the 2018 calendar year. D The term of the permit shall extend from the date approved by the City Council until December 31, 2018 unless revoked prior to that for failure to comply with the permit requirements. An Annual Mining Permit fee 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 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. F The final grading for the permit area shall be completed in accordance with the Final Reclamation Plan, attached as Exhibit B, or as approved by the City Engineer, and any other conditions that may be imposed by the City from time to time. G All gravel trucks and other mining related traffic shall enter and exit the mining area from County State Aid Highway 42. 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 if any changes occur relative to the mining process. H A plan for dust control shall be implemented and subject to approval by the City. The Property Owner shall clean dirt and debris from extraction or hauling operations related to the Mineral Extraction Permit from streets. After the Property Owner has received 24-hour verbal notice, the City may 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 Public Works Director or Rosemount Police Department, the City may proceed immediately to complete or contract cleanup at Property Owner’s expense without prior notification. I 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. J 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 as indicated on Exhibit A. K 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. L 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 2 reimburse the City for the cost of periodic inspections by the City Engineer 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. M 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. N The Property Owner shall deposit with the Planning 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 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 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 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 Engineer, or any other City officials. (4) Conditioned that the Property Owner 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 Property Owner. (5) The surety bond or cash escrow shall remain in effect from January 1, 2018 to July 31, 2019. 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. O. 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, 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 to July 31, 2019. P. 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. Q. 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. R. 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. S. 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 semiannually a written report indicating the amount of material extracted from the site for the prior six-month period. T. 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. 3 U. 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. No restored slopes may exceed a gradient of 25% or four to 1 (4:1). 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 and materials removed from the site. 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 the 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. Z. The fill area regrading and reclamation shall follow the procedures described in the Danner Inc. Borrow Pit Reclamation Protocol Rosemount, Minnesota including a report submitted to the City describing the quantities of material brought in, where the material came from, and the test result of the material. The reports submitted shall describe the quantities of material brought in, where the material came from, and the test results, including supporting analytical results of the materials. AA. No gravel mining is permitted in the Fill Area as shown on Exhibit A. BB. Mining to the elevation of 840 feet above mean sea level provided that the site is reclaimed to the elevation shown on Exhibit A with haul-back, clean-fill material in accordance with the Danner Inc. Borrow Pit Reclamation Protocol Rosemount, Minnesota. In no instance shall mining occur in the groundwater aquifer. CC. Blasting or the use of explosives is prohibited in the mining of the Danner gravel pit. DD. The City of Rosemount shall have the ability to collect independent soil and water samples. EE. The operator shall install and maintain “No Trespassing” signs consistent with the standards outlined in Minnesota State Statute 609.605. FF. The operator is permitted to have two trailers for storage of items directly related to the operation of the mine and mining equipment. Storage of more than two trailers would be a violation of the conditions of the mining permit and could be cause for revocation of the approval. That Danner, Inc., Property Owner, hereby consents and agrees to the foregoing conditions of said mining permit. IN WITNESS WHEREOF, the Property Owner has hereunto set his hand this _____ day of __________________, 2017. 4 DANNER, INC. By:__________________________________ Its: _________________________ STATE OF MINNESOTA ) ) § COUNTY OF __________ ) The foregoing instrument was acknowledged before me this ______day of _________________, 2017, by __________________________________, on behalf of Danner, Inc., Property Owner. ______________________________________ Notary Public Danner Mine Inspection October 2017 Active Mining Area Material Stockpiles Danner Mine Inspection October 2017 Recycled Concrete Stockpile Looking South/Southeast from the Mine Floor Danner Aerial Images October 2017 October 2016 PLANNING COMMISSION REGULAR MEETING MINUTES NOVEMBER 28, 2017 PAGE 1 I. Regular Meeting Call to Order: Pursuant to due call and notice thereof, the Regular Meeting of the Planning Commission was held on Tuesday, November 28, 2017. Vice-Chair VanderWiel called the meeting to order at 6:30 p.m. with Commissioners Clements, Mele, and Freeman. Commissioner Kenninger was absent. Also in attendance were Community Development Director Lindquist, Senior Planner Klatt, Planner Nemcek and Recording Secretary Bodsberg. The Pledge of Allegiance was said. Additions to Agenda: None. Audience Input: None. Consent Agenda: a. Approval of the October 24, 2017 Regular Meeting Minutes. Vice-Chair VanderWiel stated that her last name has been spelled wrong throughout the minutes and has requested that the miss spelled words be changed. MOTION by Freeman. Second by Mele. Ayes: 4. Nays: 0. Public Hearing: 5.a. Request by Danner, Inc. for an annual renewal of a Small Scale Mineral Extraction. (17-41-ME) Senior Planner Klatt gave a brief summary of the staff report for the Planning Commission. The public hearing opened at 6:42 pm. Public Comments: None. MOTION by Clements to close the public hearing. Second by Mele. Ayes: 4. Nays: 0. Motion Passes. The public hearing was closed at 6:43 pm. Additional Comments: None. MOTION by Freeman to recommend the City Council approve renew the Danner, Inc. Small Scale Mineral Extraction Permit for 2018, subject to the terms and conditions in the attached Draft 2018 Conditions for Mineral Extraction and subject to the following additional condition: 1. The applicant shall submit an updated survey depicting the current site condition of the active mining area prior to review by the City Council. Second by Clements. Ayes: 4. Nays: 0. Motion Passes.