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HomeMy WebLinkAbout2010-03-03 PACKET 04.I.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 3/3/09 PREPARED BY Community Development Howard Blin ORIGINATING DEPARTMENT STAFF AUTHOR COUNCIL ACTION REQUEST 1) Consider approving the 2010 Annual Mining Permit to allow Aggregate industries to continue their mining operations on Lower Grey Cloud Island. 2) Consider granting a variance to the ordinance requirement limiting mining operation hours. STAFF RECOMMENDATION Adopt the resolution approving Aggregate Industries' 2010 mining permit with a variance to mining operation hours. ADVISORY COMMISSION ACTION DATE ® PLANNING 2/22/10 ❑ PUBLIC SAFETY ❑ PUBLIC WORKS ❑ PARKS AND RECREATION ❑ HUMAN SERVICES /RIGHTS ❑ ECONOMIC DEV. AUTHORITY SUPPORTING DOCUMENTS REVIEWED APPROVED DENIED ❑ ® ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ® MEMO /LETTER: Memo from John McCool dated 2/25/10 ® RESOLUTION: Draft ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ® OTHER: Excerpt from 2/22/10 Planning Commission Minutes ADMINISTRATORS COMMENTS F I tl z 0 `-'City Administrator ate COUNCIL ACTION TAKEN: [APPROVED ❑ DENIED ❑ OTHER i� -- CITY OF COTTAGE GROVE MINNESOTA TO: Mayor and Members of the City Council Ryan Schroeder, City Administrator FROM: John McCool, Senior Planner DATE: February 25, 2010 RE: Aggregate Industries Annual Mining Permit — Nelson Mine The Council is requested to consider approving Aggregate Industries annual mining permit to continue mining sand and gravel at the Nelson Mine on Lower Grey Cloud Island. Their 2010 mining operations plan proposes the following: • Mining and processing approximately 700,000 tons of aggregate materials. • Tree and brush clearing on approximately six acres of land. • Stripping of topsoil material will be conducted in an area of approximately 21 acres. • Dredging at an average depth of 90 feet and in some areas to a depth of 125 feet below the normal water level. • Processing, washing, screening, and loading aggregate materials onto barges and trucks. • Operate 24 hours per day seven days a week. T.TTIRMYT M., A copy of Aggregate Industries — Nelson Plant 2010 Mining Permit Operation Plan is attached. Honorable Mayor, City Council, and Ryan Schroeder Aggregate Industries Annual Mining Permit February 25, 2010 Page 2 of 5 Planning Commission The Planning Commission reviewed the proposed mining permit application at their meeting on February 22, 2009. The applicant was present. No public testimony or written comments were re- ceived at that meeting. The Commission supported the applicant's proposal and unanimously recommended approval (6 -to -0 vote) to grant a variance that allows mining to operate 24 hours per day, seven days per week and approval of the 2010 mining permit based on certain condi- tions listed in the draft resolution. An excerpt from the Planning Commission's unapproved minutes is attached. Ordinance Requirements City Code Title 3 -10 requires an annual mining permit, which must be reviewed by the Planning Commission within sixty days after the completed application has been accepted by the City. The Planning Commission's recommendation is forwarded to the City for final action. The purpose of the annual mining permit is to: • Ensure the restoration of the mined area is consistent with existing and planned land use patterns and to promote appropriate reuse of the mined areas; and • Ensure conformity of mining operations with the City's Critical Area and Comprehensive Plans; and • Control the effects of noise, dust, erosion, traffic, drainage, ground water pollution and other factors related to mining in general. •, ! 1 9 In 1950, property owners Paul K. and Mary Schilling entered into a lease agreement with the J. L. Shiely Company (now known as Aggregate Industries) to mine sand and gravel on Lower Grey Cloud Island. Supplemental lease agreements have been negotiated over the years. In 2001, Ag- gregate Industries signed a new lease with the property owner, allowing mineral extraction on the Island for 20 years. Aggregate Industries projects that sand and gravel resources could be mined for another 20 to 30 years based on the future ability to mine in the Mississippi River backwaters, market trends, geologic variations, and aggregate resources. Several studies and reports were prepared in the 1970s to serve as a guide in reviewing annual mining permit applications and reclamation plans. On October 12, 1982, the Lower Grey Cloud Is- land Reclamation Concept Plan was approved by a City of Cottage Grove Reclamation Committee. A mining plan prepared by B.B. Chapman in 1982 is part of that document. A copy of this plan is in- cluded in the applicant's 2008 Operations Plan. With some exceptions, the 2008 mining plan gener- ally replicates the landforms and topography as approved in 1982. Dredge Operations A dredge is used to excavate raw aggregate materials. This dredge is of a "twin - clamshell' design and is one of the largest machines of its type. The dredge is a 100 -foot by 100 -foot by 60 -foot high floating dredge that weighs approximately 550 tons. Assembly of the dredge was completed in 1995, and the dredge was equipped with sound - absorbing equipment in 1996. The dredge is used to reach sand reserves below the water table near the Mississippi River. Its desanding ca- Honorable Mayor, City Council, and Ryan Schroeder Aggregate Industries Annual Mining Permit February 25, 2010 Page 3 of 5 pability allows the operator to reclaim up to 400 tons of sand per hour without unnecessary re- handling. The dredge can mine 1,200 tons of aggregate material per hour at 60 feet below the water table. This year's mining plan proposes a mining depth between 90 to 125 feet. Mining Operations After the material is excavated by the dredge, the mined aggregate is transported by a conveyor system that is about 9,200 feet long to the processing plant. After processing, the materials are transported to distribution yards in St. Paul and Minneapolis. Similar to previous years, this year's application identifies that over 95 percent of the aggregate materials mined will be hauled off -site via barges. The barge fleeting facility can store approximately 18 barges. A single barge can carry between 1,200 to 1,300 tons. The remaining five percent of processed aggregate materials will be transported by trucks. The haul route is generally Grey Cloud Trail to 103rd Street, east to Hadley Avenue, north to 100th Street, east to Jamaica Avenue, and then north to Highway 61. This haul route has generally not changed over the many decades of mining on Lower Grey Cloud Island. A summary of the Nelson Mining operations since 1990 is attached. Planning Considerations Proposed Mining Operations The 2010 Operation Plan proposes to remove approximately six acres of trees and brush. Stripping topsoil will be conducted in an area that is approximately 21 acres. The quantity of topsoil and over- burden that will be removed will consist of approximately 100,000 cubic yards. Loaders, scrapers, and haul trucks will remove this material. The area where trees and brush and topsoil stripping is proposed to occur is west - northwest of the dredge current location. 2010 gPEKgTHA1ES PLRH n r � Honorable Mayor, City Council, and Ryan Schroeder Aggregate Industries Annual Mining Permit February 25, 2010 Page A of 5 Similar to previous reviews, the applicant is required to take appropriate measures to ensure there is no erosion to stockpiles or earth - berms. At the base of each slope, a channel must be constructed to control runoff. The channeled water shall be diverted to a sedimentation basin before being allowed to enter any natural drainage system. Erosion control measures must be implemented within a rea- sonable amount of time for the stockpile and berm. Environmental Impact Statement Process The applicant is not proposing to mine within the Mississippi River backwaters or river channel during their 2010 operations, but is interested in mining these areas sometime in the future. Be- cause of potential environmental impacts mining in the backwaters might have, Aggregate Industries filed an Environmental Impact Statement application with the City in May 2008. The City hired Barr Engineering to provide consulting services to prepare an EIS that complies with State environmental rules and the National Environmental Policy Act. The draft EIS document is scheduled to be com- pleted in late 2010. The Planning Commission will have the opportunity to review the draft and final EIS sometime in mid -2010. The City's review of their 2010 Mining Permit application does not in- clude any approval to mine within the backwaters or main river channel. Oak Savanna Restoration Plan The Oak Savanna Restoration Plan proposes to avoid and preserve the sensitive historic, cultural, and important natural features on the island and focuses on the reestablishment and maintenance of native prairie and oak savannas that will benefit the end use development on the island. Their end use plan envisions a multi -use development concept on the west half of the island and significant open space on the east half of the island. This development vision is similar to the "Harbor Island" plan that was proposed by the property owner about ten years ago. The City has not given any ap- proval of this concept plan, but there is general support that there will be open space on the island. Attached is a copy of the Oak Savanna Restoration Plan prepared by Great River Greening. Areas that proposed that the reclamation areas will be back - filled, graded, and prepared for planting during the life of the mine. These areas will be planted with native vegetation. In upland areas, native prairie and oak savannah groves will be planted. To accomplish this, the applicant proposes to col- lect acorns on the island and plant them in groups that will eventually create groves of about one to ten mature oaks per acre. Once tree seedlings begin to grow, they will be protected from wildlife by using rigid mesh tubes and perimeter grove fencing. The seedlings will be watered during the first three years. City staff and the Planning Commission generally supported the reclamation and restoration con- cepts proposed in this plan. The applicant must update the City on the effectiveness of the reclama- tion and restoration activities, particularly how many acorns are planted and how many oak trees are beginning to grow. If the number of trees is low, then another tree planting alternative will need to be discussed. Historic Sites and Landmarks In the last couple years, several archaeological surveys were conducted in the vicinity of an old farm site known as River Beacon Farm. Listed below is a summary of these studies: ® Phase I Archaeological Survey, July 15, 2008 was conducted by 10,000 Lakes Archaeology for the area north of an old farm site known as River Beacon farm. The purpose of this study was to determine if there is any archaeological or historical resources existed within the area Honorable Mayor, City Council, and Ryan Schroeder Aggregate Industries Annual Mining Permit February 25, 2010 Page 5 of 5 the mine operator proposed to strip topsoil. Based on the results of the field and background investigations, the consultant concluded that the proposed stripping and mining of that area east and northeast of the farm site would not have an adverse effect on any recorded historic sites. • An Addendum to the Phase I Archaeological Survey, September 25, 2008 was prepared by the same consultant for a 2.5 -acre site that is directly south of the farmstead area. Based on the results of the field survey, Aggregate Industries was not allowed excavate or place a berm on the west half of this site unless more survey work is performed and the results indi- cate that this area is not part of the old town site. • In November 2009, an historical aerial photo depicting the outbuildings associated with the Beacon Farm was presented to the Minnesota Office of the State Archaeologist. This photo showed a modern farm building on the west half of the property surveyed by 10,000 Lakes Archaeology in 2008. The State Archaeologist agreed that items excavated from the west half of the project site in 2008 may be artifacts associated with the farmstead and therefore does not meet a National Register significance test. • Last fall, Aggregate Industries hired Archaeological Research Services (ARS) to conduct a reconnaissance -level survey of a four acre parcel directly west of the River Beacon Farm site and north of the historic Grey Cloud Town site. ARS prepared a report titled "Report on Archaeological Reconnaissance Survey Conducted for the Proposed Expansion of Aggre- gate Industries Nelson Plant; January 2020." This report concluded that Aggregate Industries can proceed with their mining operations as proposed in the 2010 Operation Plan without any danger to significant archaeological resources. A copy of this report is attached. Meeting Notices Meeting notices were mailed to 10 property owners who are within a half -mile of the mine. These notices were mailed on February 10, 2010. Recommendation That the City Council adopts a resolution approving: 1. Aggregate Industries' annual mining permit; and 2. Granting a variance to the ordinance requirement limiting mining operations between 6:00 a.m. to 10:00 p.m. to allow the dredge to operate 24 hours per day, seven days per week. Approval of the variance is based on the findings of fact supporting the variance and subject to the conditions listed in the draft resolution. RESOLUTION NO. 2010 -XXX RESOLUTION APPROVING THE 2009 MINING PERMIT FOR AGGREGATE INDUSTRIES, INC. WHEREAS, Aggregate Industries - North Central Region, Inc. has made application for their annual mining permit to excavate and process aggregate material on Lower Grey Cloud Island on the property legally described as: NE 1 /4, SE 1 /4, Section 31, Township 27, Range 21, South along Grey Cloud Trail W' /2, SE Y4, Section 31, Township 27, Range 21 E ' / 2, NE ' / 4, NW ' / 4, Section 31, Township 27, Range 21 South along Grey Cloud Trail W ' / 2, NE '/4, NW ' / 4, Section 31, Township 27, Range 21 South along Grey Cloud Trail NW 1 /4, NW' /4, Section 31, Township 27, Range 21 S'h, NW 1 /4, Section 31, Township 27, Range 21 E' /2, SW %, Section 31, Township 27, Range 21 Lot 1, Section 31, Township 27, Range 21 N' /2, NE 1 /4, Section 36, Township 27, Range 22 S'' /2, NE %, Section 36, Township 27, Range 22 N' /2, SE 1 /4, Section 36, Township 27, Range 22 Lot 2, Section 36, Township 27, Range 22 Lot 3, Section 36, Township 27, Range 22 SE 1 /4, SW %, Section 25, Township 27, Range 22 NE Y4, NW %, Section 36, Township 27, Range 22 S' /2, NW %, Section 36, Township 27, Range 22 NW 1 /4, SW 1 /4, Section 36, Township 27, Range 22 N ' / 2, SW ' / 4, SW ' / 4, Section 25, Township 27, Range 22 S ' / 2, SW ' / 4, SW ' / 4, Section 25, Township 27, Range 22 NW 1 /4, NW '/4, Section 36, Township 27, Range 22 NW 1 /4, SW 1 /4, Section 36, Township 27, Range 22 N' /2, NE %, Section 35, Township 27, Range 22 S'' /2, NE 1 /4, Section 35, Township 27, Range 22 SE Y4, SE %, Section 26, Township 27, Range 22 Lot 5, Section 35, Township 27, Range 22 Lot 3, Section 6, Township 26, Range 21 Lot 2, Section 6, Township 26, Range 21 Lot 1, Section 6, Township 26, Range 21 N' /2, NW %, Section 5, Township 26, Range 21 Lot 4, Section 5, Township 26, Range 21 Lot 3, Section 5, Township 26, Range 21 N'' /2, NE %, Section 5, Township 26, Range 21 Lot 2, Section 5, Township 26, Range 21 Lot 1, Section 5, Township 26, Range 21 Lot 1, Section 4, Township 26, Range 21 NE %, SW 1 /4, Section 36, Township 27, Range 22 Lot 5, Section 35, Township 27, Range 22 Resolution No. 2010 -XXX Page 2 WHEREAS, the applicant proposes to continue mining activities and operation at prop- erty located at 11250 Grey Cloud Trail South; and WHEREAS, the applicant intends to mine and process approximately 700,000 tons of aggregate materials in 2010; and WHEREAS, a notice of application was mailed to neighboring property owners informing them that the Planning Commission was scheduled to review the application at their meeting on February 22, 2010; and WHEREAS, the application requests a variance to the standards of the sand and gravel ordinance to allow 24 -hour operation seven days a week; and WHEREAS, crushing operations are proposed; and WHEREAS, the applicant was present at the meeting and no one from the public spoke for or against the permit application; and WHEREAS, the Planning Commission unanimously recommended approval of the mining permit at their February 22, 2010, meeting. NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of Cottage Grove, Washington County, Minnesota, grants a variance to the standards of the sand and gravel or- dinance that the extended hours of operation are not in conflict with the purpose and intent of the Comprehensive Plan and Reclamation Plan and shall not cause any adverse impact to public health, safety, or general welfare, based on the following findings of fact: A. The city has allowed the dredge to operate 24 hours per day 7 days per week since 1995 when the dredge was first installed. B. During the 13 years the dredge has operated, only one noise complaint was received by the city. That complaint was received in 1996. The applicant was contacted and the problem was resolved in a timely manner. C. Residents are encouraged to immediately contact Aggregate Industries of any noise issues so that the problem can promptly be identified and mitigated in a timely manner. D. The variance relating to the hours of operation will be evaluated annually. BE IT FURTHER RESOLVED, the City Council of the City of Cottage Grove, Washington County, Minnesota, approves the request by Aggregate Industries — North Central Region, Inc. for a mining permit ending January 31, 2010, subject to the following conditions: 1. The provisions as stipulated in Title 3, Chapter 10 of the City's Codes (Mining, Sand, and Gravel Operation) shall be complied with, except as modified below. Resolution No. 2010 -XXX Page 3 2. The applicant is responsible for removing any materials that may have spilled onto any public roadway. This material shall be cleaned up immediately. 3. The outer edge of mining limits must be a minimum of 100 feet from abutting public right -of -way, private property, or any archeological sensitive area. 4. The "future mining" designation on the 2010 Operations Plan is only an illustration of the applicant's future desire to mine in those areas. City approval of the 2010 Operations Plan does not guarantee mining permit approval for areas shown as "future mining." Approval of the 2010 Mining Permit does not approve their ability to mine within the required 200 -foot setback from the Mississippi River, within the Mississippi River itself, or in the vicinity of archeological sensitive areas. 5. Bituminous /asphalt materials are prohibited from being buried on the premises. Bituminous/ asphalt, concrete, and street sweepings originating within the geographical boundaries of Cottage Grove may be temporarily stockpiled on the site for processing (e.g. crushing, screening, etc.) and /or reuse. 6. The applicant may operate the mining operation 24 hours a day, 7 days a week. Upon notification by neighboring residents that the night -time operations (i.e. between the hours of 10:00 p.m. and 6:00 a.m.) are disturbing, the applicant agrees to voluntarily cease operation during night -time hours until such time the noise source is identified and appropriate corrections are made. 7. Aggregate Industries must install erosion control devices at the base of any slope where erosion is evident. A drainage Swale must be constructed at the base of any eroding slope to control run -off and divert it to a sedimentation basin before entering any natural drainage system. Erosion control measures must be implemented within a reasonable amount of time. 8. Archeological and landmark sites as identified in the burial mound group known as 21WA9 and the recorded Grey Cloud Townsite 21WA48 on Lower Grey Cloud Island must be protected and undisturbed. 9. No vehicular traffic is allowed off existing access routes so as not to accidentally disturb or destroy burial mounds or any other archeological sites. 10. The applicant is responsible for obtaining all state and federal permits relating to their mining operations on Lower Grey Cloud Island. 11. The applicant's current reclamation plan is titled "Harbor Island Concept Plan." The City has not provided any formal review or approval of the "Harbor Island Concept Plan" and considers the plan only an illustration of a possible development concept. The City's approval of the 2010 Operations Plan does not imply future approval of the Harbor Island Concept Plan. 12. The City approves the Grey Cloud Island Oak Savannah Restoration Plan, revised January 18, 2010. If a prescribed burn is scheduled, the applicant must notify the Resolution No. 2010 -XXX Page 4 City and property owners on Lower Grey Cloud Island a minimum of five business days before burning. A burning permit from the MN DNR is required. 13. The applicant must update the City on the effectiveness of the reclamation and restoration activities, particularly how many acorns are planted and how many oak trees are growing. If the number of new trees is less than three trees per acre, then the applicant must proposed another tree planting alternative to the City for approval. Passed the 3rd day of March, 2010. Myron Bailey, Mayor Attest: Caron M. Stransky, City Clerk EXCERPT FROM UNAPPROVED MINUTES OF THE PLANNING COMMISSION MEETING ON FEBRUARY 22, 2010 6.1 Nelson Mine Mining Permit — Case MP10 -005 Aggregate Industries has applied for their 2010 mining permit to continue their mining operations on Lower Grey Cloud Island. McCool summarized the staff report and recommended approval subject to the conditions stipulated in the staff report. Linse asked when the reclamation would begin. McCool responded that they would initiate reclamation this year and identified the east and south slopes of the property as areas that they would start prepping for topsoil and grass seed. Interlachen Hill will be the first area on the Island where the acorns for the oak savannah would be planted. He stated that they have also been clearing some of the undergrowth in the wooded areas to remove invasive species. Patty Christianson, Aggregate Industries, explained that the area they are mining was origi- nally oak savannah and native prairie and their goal is to restore it to what it was. She ex- plained the reason they are planting acorns instead of seedlings is because the bur oaks along the southwestern area and the eastern area have adapted to the sandy dry soil, which should have a better success rate than planting seedlings. They are working with Great River Greening on the reclamation plan. She then explained how they would take care of the plantings. Christianson then explained that Aggregate Industries has done extensive work in 'the last two years on archeological studies of Grey Cloud Island and they have worked with the State Archeologist Office to reaffirm their findings on such sites as the Grey Cloud town - site. She pointed out the location of the Indian burial mounds noting that the mounds, in- cluding a 50 -foot buffer, have been marked with fence posts. They will not encroach on that area. Thiede noted that last year there was a discussion about how many trees were going to be planted along the north edge of the Island. Christianson stated that they have planted all the trees required in past years but last year they did not plant trees because they asked for a deviation to allow them to put together this restoration reclamation plan. Those trees are still there and they have no plans to get rid of them, but their concern has always been that the trees are non - native. Thiede asked how they were going to keep the squirrels from taking the planted acorns. Christianson responded that there will be fiber mesh covers to protect the acorns. Linse asked if the saplings that died were replaced. Christianson responded yes. Linse asked what would happen if the acorns don't grow. Christianson stated they would continue with the plantings. Pears • •-• Planning Commission Minutes February 22, 2010 Page 2 of 3 The provisions as stipulated in Title 3, Chapter 10 of the City's Codes (Mining, Sand, and Gravel Operation) shall be complied with, except as modified below. 2. The applicant is responsible for removing any materials that may have spilled onto any public roadway. This material shall be cleaned up immediately. 3. The outer edge of mining limits must be a minimum of 100 feet from abutting public right -of -way, private property, or any archeological sensitive area. 4. The "future mining" designation on the 2010 Operations Plan is only an illustration of the applicant's future desire to mine in those areas. City approval of the 2010 Operations Plan does not guarantee mining permit approval for areas shown as "future mining." Approval of the 2010 Mining Permit does not approve their ability to mine within the required 200 -foot setback from the Mississippi River, within the Mississippi River itself, or in the vicinity of archeological sensitive areas. 5. Bituminous /asphalt materials are prohibited from being buried on the premises. Bi- tuminous /asphalt, concrete, and street sweepings originating within the geo- graphical boundaries of Cottage Grove may be temporarily stockpiled on the site for processing (e.g. crushing, screening, etc.) and /or reuse. 6. The applicant may operate the mining operation 24 hours a day, 7 days a week. Upon notification by neighboring residents that the night -time operations (i.e. be- tween the hours of 10:00 p.m. and 6:00 a.m.) are disturbing, the applicant agrees to voluntarily cease operation during night -time hours until such time the noise source is identified and appropriate corrections are made. 7. Aggregate Industries must install erosion control devices at the base of any slope where erosion is evident. A drainage Swale must be constructed at the base of any eroding s lope to control run -off and divert it to a sedimentation basin before en- tering any natural drainage system. Erosion control measures must be imple- mented within a reasonable amount of time. Planning Commission Minutes February 22, 2010 Page 3 of 3 Plan does not guarantee approval or imply future approval of the Harbor Island Concept Plan. 12. The City approves the Grey Cloud Island Oak Savannah Restoration Plan, revised January 18, 2010. If a prescribed burn is scheduled, the applicant must notify the City and property owners on Lower Grey Cloud Island a minimum of five business days before burning. A burning permit from the MN DNR is required. Motion passed unanimously (6 -to -0 vote).