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HomeMy WebLinkAbout6.j. Renewal of the Shafer Contracting Company Inc., Small Scale Mineral Extraction Permit for 2018 EXECUTIVE SUMMARY City Council Regular Meeting: January 16, 2018 AGENDA ITEM: Renewal of the Shafer Contracting Company Inc., Small Scale Mineral Extraction Permit for 2018 AGENDA SECTION: Consent PREPARED BY: Anthony Nemcek, Planner AGENDA NO. 6.j. ATTACHMENTS: Site Map; Excerpt from the December 18, 2017 Planning Commission Meeting; 2018 Mineral Extraction Permit; 2017 Current Operations / Reclamation Status Map; 2018 Proposed Operations / Reclamation Map; Site Aerial; Site Images APPROVED BY: LJM RECOMMENDED ACTION: Motion to Approve the Renewal of the Shafer Contracting Company, Inc. Small Scale Mineral Extraction Permit for 2018, subject to the terms and conditions in the 2018 Mining Permit. SUMMARY The City received an application from Shafer Contracting Co. to consider a request to renew the existing Small Scale Mineral Extraction Permit for its operation located within the 12000 Block of County Road 71 (one mile north of Bonaire Path East along Rich Valley Blvd.) in the northeastern portion of Rosemount. 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 Shafer 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. PLANNING COMMISSION ACTION The Planning Commission reviewed the application at its regular meeting on December 18, 2017. No public comments were received and the Commission unanimously recommended approval of the permit renewal for 2018. BACKGROUND Applicant and property owner: Shafer Contracting, Co. Inc. Location: ¼ mile west of Rich Valley Blvd., 1 mile north of Bonaire Path East. Area in acres: 93 acre total area, approximately 15 acres active in the western 100 feet of Phase 4 and all of Phase 5. Comp Plan & Zoning: Agriculture Extraction progress: Phase 5 out of 7 (approximately 60% complete). Nature of request: Annual renewal. 2 Shafer has been working on the site since 1998 and owned the property since 2000. Through the end of 2017 Shafer has hauled 5,882 cubic yards out of the mining site. They have not brought in any haulback. The following is a summary of the recent activity on the site going back a few years: Year Extraction (cu yd) Haulback (cu yd) 2018 Less than 10,000 0 2017 5,882 0 2016 13,794 0 2015 62,808 2,184 2014 59,629 621 2013 123,955 29,274 2012 120,569 123,955 Shafer has indicated that the amount of activity projected for 2018 will be dependent on future construction projects. They continue to bid on projects but they must be awarded the contract, and the project must need material to prompt mining activity. At this time, they do not have any projects lined up for 2018 which will require additional material from the mine. Shafer would be removing aggregate from Phase 5 as identified on the 2018 Proposed Operations and Reclamation Plan and depositing haul back material in the middle 500 feet of phases 2, 3, and 4. Haul back operations have a low elevation of about 850 feet in phases 3 and 4, and progress up to an 875 elevation in phase 2. In 2006, the City Council approved the haul back operation if it complied with the following standards: from a MnDOT construction project, is clean fill material, does not contain organic matter, and meets a 95% compaction threshold. Shafer had submitted test results of the haul back material in 2013 to confirm that they are meeting the requirements of the permit. Due to the small amount of haul back that has been brought in, Shafer has not performed a compaction test. The applicant has provided an environmental screening and sampling report for the 2015 material and asked to delay the compaction testing. Last year’s approval stated that the compaction testing was required, regardless of the amount of haulback. However, there was no haulback and therefore no compaction testing done. Shafer is asking for a delay in the testing until there is more haulback, which is acceptable to staff. A map showing where the 2014-15 haulback was deposited is attached so that location can be memorialized. Staff finds that allowing the applicant to wait until more material is placed at the site is reasonable, given the small amount on the property. Staff has modified a condition of the permit to require compaction testing in 2018. However, since the predication is for no haulback in 2018, staff is anticipating the applicant may again request a delay in testing as was the case in 2017. Staff has been out to the site to review work and found that the mining operation appears to be conducted in compliance with the permit conditions and no corrections are needed. Staff has not received any complaints directly regarding the Shafer operation in 2017. During previous public hearings for the mining renewal, the Planning Commission had received comments from neighboring property owners concerning dust on the site and the condition of a well on property adjacent to the mining operation. Staff has not received any questions or complaints about the mine throughout its operation in 2016-17 and has not received any comments prompted by the posting and mailing of the public hearing for the mining review. RECOMMENDATION The Planning Commission and Staff recommend approval of the renewal of the Shafer Contracting, Inc. Mineral Extraction Permit for 2018. This recommendation is based on the information submitted by the applicant, findings made in this report and the conditions detailed in the attached memorandum. 5.a. Request by Shafer Contracting Co., Inc. for annual renewal of a Small Scale Mineral Extraction Permit for 2018. (17-44-ME) Planner Nemcek gave a brief summary of the staff report for the Planning Commission. The public hearing opened at 6:36 p.m. Public Comments: Motion by Michael to close the public hearing Second by Gretchen Ayes: 5 Nays: 0. Motion Passes The public hearing was closed at 6:37 p.m. Additional Comments: None Motion by VanderWiel to recommend that the City Council renew the Shafer Small Scale Mineral Extraction Permit for 2018, subject to the terms and conditions in the attached Draft 2018 Conditions for Mineral Extraction. Second by Clements Ayes: 5 Nays: 0. Motion Passes Small Scale Mineral Extraction Permit 2018 Conditions for Small Scale 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 western 100 feet of Phase 4 and all of Phase 5 (19.5 acres), on Exhibit A (Mining Operation and Phase Plan), which is attached hereto as one of the exhibits. Haul-back activities from Mn/DOT projects are permitted only within the middle 550 feet of Phase 2, Phase 3, and Phase 4 (19.5 acres), on entitled 2018 Proposed Operations/Reclamation. C. The term of the permit shall extend from January 1, 2018 until December 31, 2018 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 Exhibit B (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 County Road 71 (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. 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. 2018 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 C (Current Operations Map). 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. 2018 Mining Permit Shafer Contracting 3 of 6 (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, 2018 until 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 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 Five Hundred Thousand and no/100 ($1,500,000.00) 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, 2018 until July 31, 2019. 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. Q. 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. 2018 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. 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 Exhibit B. U. The Property Owner must show how materials stockpiled for recycling will be processed and inform the City of all stockpiled materials. V. All recycling must be completed within the 280 feet of Phases 2, 3, as shown on exhibit 2017 Current Operations/Reclamation Status. No recycling processes shall be allowed to continue into subsequent phases. W. 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. X. 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. Y. 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 O, U and V; 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. Z. 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. 2018 Mining Permit Shafer Contracting 5 of 6 AA. 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. BB. 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. CC. Shafer Contracting Co., Inc. shall compact the entire reclamation site to a minimum compaction of 95% of maximum dry density. Shafer shall submit a compaction test for the 621 cubic yards of clean fill brought in into the site in 2014 and 2,184 cubic yard of clean fill brought to the site in 2015 and any material brought in during the 2017 season by September 30, 2018. DD. 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. EE. 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 MnDOT seed mix 130B. Operating areas including working faces, material stockpiles, haul roads, staging areas, and active reclamation areas are not required to be seeded. FF. The City of Rosemount shall have the ability to collect independent soil and water samples. 2018 Mining Permit Shafer Contracting 6 of 6 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:________________________________ Frank Weiss, Its President STATE OF MINNESOTA ) ) ss COUNTY OF _________ ) The foregoing instrument was acknowledged before me this _________ day of ____________, 20____, by Frank Weiss, President of Shafer Contracting Company, Inc., the Property Owner, on behalf of the Corporation. ________________________________________ Notary Public