HomeMy WebLinkAbout2015-02-04 PACKET 04.F. REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA
MEETING ITEM # �
DATE 2/4/15 • •
REPARED BY: Community Development Jennifer Levitt
ORIGINATING DEPARTMENT STAFF AUTHOR
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COUNCIL ACTION REQUEST
Consider approving the Nelson Mine annual mining permit application which authorizes
Aggregate Industries - North Central Region, Inc. to operate 24 hours, seven days a week.
STAFF RECOMMENDATION
Adopt the resolution.
BUDGET IMPLICATION: $N/A
BUDGETED AMOUNT
$ N/A N/A
ACTUAL AMOUNT FUNDING SOURCE
ADVISORY COMMISSION ACTION:
DATE
� PLANNING 1/26/15
❑ PUBLIC SAFETY
❑ PUBLIC WORKS
❑ PARKS AND RECREATION
❑ HUMAN SERVICES/RIGHTS
❑ ECONOMIC DEV. AUTHORITY
❑
REVIEWED
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APPROVED
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DENIED
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SUPPORTING DOCUMENTS:
� MEMO/LETTER: Memo from John M. Burbank dated 1/27/15
� RESOLUTION: Draft
❑ ORDINANCE:
❑ ENGINEERING RECOMMENDATION:
❑ LEGAL RECOMMENDATION:
� OTHER: Excerpt from unapproved minutes of 1/26/15 Planning Commission meeting
ADMINISTRATOR'S COMMENTS
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� City Administrator Date
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COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER
Cottage
J Grove
� Pride andprOSPerity Meet
TO:
FROM
DATE:
RE:
Honorable Mayor and City Council
Ryan Schroeder, City Administrator
John M. Burbank, Senior Planner
January 27, 2015
Aggregate Industries — Annual Mining Permit
Proposal
Aggregate Industries — North Central Region, Inc. has submitted their annual mining permit ap-
plication to continue mining and processing aggregate materials in the Nelson Mine located at
11250 Grey Cloud Trail. The aggregate materials will be incorporated into various products in
the Twin Cities metropolitan area and are used for ready mix concrete and/or asphalt in the
construction of highways and buildings, etc. The 2015 Mining Operations Plan proposes the
following:
• Mine and process between 750,000 to 800,000 tons of aggregate materials.
• Strip topsoil from approximately seven acres west of the existing dredging area.
• Dredge 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.
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Nelson Mine
11250 Grey Cloud Island
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Mississippi River�
City Council Memorandum
Case MP15-002
Aggregate Industries
Nelson Mining Permit
January 27, 2015
Page 2 of 7
A copy of Aggregate Industries — Nelson Plant 2015 Operation Plan is attached.
Planning Commission
The Planning Commission reviewed the application at their regular meeting on January 26,
2015. A public hearing was held and no one spoke for or against the application. The Planning
Commission unanimously (5-to-0 vote) recommended approval of the application.
Ordinance Requirements
City Code Title 3-10 requires an annual mining permit which must be reviewed by the Planning
Commission within 60 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;
• Ensure conformity of mining operations with the City's Critical Area and Comprehensive
Plans;
• Control the effects of noise, dust, erosion, tra�c, drainage, ground water pollution and other
factors related to mining in general.
Background
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 within the
existing Nelson Mine could be mined for another 15 to 20 years. Aggregate Industries has tempo-
rarily suspended the preparation of an Environmental Impact Statement for mining the area directly
south of the eastern end of Lower Grey Cloud Island. This area was referred to as the "Mississippi
River backwaters" adjacent to the main island. Aggregate Industries estimated that underwater
mining the backwaters area would add an additional 20 years based on current 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 Commit-
tee. A mining plan prepared by B.B. Chapman in 1982 is part of that document. A copy of this plan
is included in the applicant's 2015 Mining Permit application. With some exceptions, the proposed
2015 Operations Plan generally replicates landforms and topography as approved in 1982.
City Council Memorandum
Case MP15-002
Aggregate Industries
Nelson Mining Permit
January 27, 2015
Page 3 of 7
Dredge Operations
A dredge is used to excavate raw aggregate materials. This dredge is of a"twin-clamshell" de-
sign 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 com-
pleted in 1995, and the dredge was equipped with sound-absorbing equipment in 1996. The
dredge is used to reach sand reserves below the water surFace. Its de-sanding capability and
initial crusher that crushers rocks to smaller than six inches in size 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 surface. 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 1.6 miles long to the processing plant located at the west side of Lower
Grey Cloud Island. The processing operations include crushing, washing, sorting aggregate and
sand materials by size, and then loading onto barges or trucks.
The majority of the material is transported by barge up the Mississippi River to distribution yards
in St. Paul and Minneapolis. Last year, approximately 728,750 tons (approximately 99.6 percent)
of the materials were transported by barge and approximately 3,122 tons was transported by truck.
The trucks generally travel on Grey Cloud Trail to 103rd Street, east to Hadley Avenue, north to
100th Street, and then to U.S. Highway 61. The barge fleeting facility can store approximately 18
barges. A single barge can carry between 1,200 to 1,300 tons.
A summary of the Nelson Mining operations since 1995 is attached.
Planning Considerations
Proposed Mining Operafions
The 2014 Operation Plan does propose to remove trees and brush from an area that is approx-
imately 7.2 acres in area. Stripping topsoil will be conducted in an area that is approximately 14
acres in area. Loaders, scrapers, and haul trucks will stockpile this material for later reclamation or
immediately placed on a reclaimed area. Tree removal and stripping topsoil is proposed to occur in
west of the current dredge location.
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City Council Memorandum
Case MP15-002
Aggregate Industries
Nelson Mining Permit
January 27, 2015
Page 4 of 7
Similar to previous operation plans, the applicant is required to take appropriate measures to en-
sure 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 im-
plemented within a reasonable 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 dur-
ing their 2015 operations, but is interested in mining these areas sometime in the future. Because
of potential environmental impacts mining in the backwaters might have, Aggregate Industries had
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 environmen-
tal rules and the National Environmental Policy Act. The draft EIS document was scheduled to be
completed in late 2012. Aggregate Industries has temporarily suspended the preparation of an
EIS. If the preparation of the EIS proceeds, the Planning Commission will have the opportunity to
review the EIS document. The City's review of their 2015 Mining Permit application does not
include any approval to mine within the backwaters or main river channel.
Reclamation Plan
The 2015 Operations Plan shows most of the Nelson Mine perimeters have been reclaimed or are
undisturbed buffers. In 2015, site preparation for reclamation will continue in the central area of the
Nelson Mine area and along the south side of the larger body of water located in the southeast
corner of the mine. Areas where waste-sand will be deposited will be north of the conveyor system
and along the south embankment south of the dredging operation. Stabilizing the shoreline around
all water bodies within the mine area will also continue.
Proposed �015 Operations Plan
City Council Memorandum
Case MP15-002
Aggregate Industries
Nelson Mining Permit
January 27, 2015
Page 5 of 7
In 2010, Aggregate Industries and Great River Greening initiated the reclamation oak savanna
plots within the Nelson Mine. Areas previously disturbed by mining were graded to establish rolling
terrain and pot-hole lakes to mimic the original native prairie of this area. Some of the reclaimed
ground was seeded with native prairie species and 60 oak saplings were planted and mulched in
the oak savanna plots. Fencing was placed around the plots to delineate and deter the deer from
these protected groves. In 2011, another 68 oak saplings were planted in three new groves. In
2013, competing woody vegetation was removed from the fenced areas and fencing was repaired.
In 2013, Aggregate Industries monitored the oak groves and initiated preventive measures to en-
sure their establishment. These measures included watering, insecticide spraying, gopher control,
and removal of competing sumac and grape ivy. An inspection of these oak savanna plots in the
fall of 2013 and in July 2014 found many dead oak plantings. As a condition approving the annual
mining permit for 2015, all the dead oak trees within the designated oak savannah groves must be
replaced with new tree plantings and watered during dry weather conditions to promote their
survival.
In 2014, maintenance of the existing oak plantings continued and prairie establishment work took
place. This included prairie hand seeding bare spots on ten acres of the Interlachen Prairie. Tree
planting occurred in the fall and consisted of 42 small pin oaks, 2 large pin oaks, 2 large hack-
berries, 10 ninebark shrubs, and 3 sand cherry shrubs. Removal of black locust trees, sweet
clover, and crown vetch also took place.
To identify mining and restorations operations between 2014 and the 2015 Plans, a copy of both
plans are shown below. The circular shapes highlighted in bold pastel green on the 2015 Operation
Plan identifies the primary changes since the 2014 Plan.
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2014 Operations Plan
City Council Memorandum
Case MP15-002
Aggregate Industries
Nelson Mining Permit
January 27, 2015
Page 6 of 7
Historic Sites and Landmarks
Mining activities will continue to avoid and preserve the sensitive historic, cultural, and important
natural features (remnant oak savanna) of the island. Archaeological surveys of recorded historic
sites were completed in 2009 and 2010. The results of these surveys and reports concluded that
Aggregate Industries can proceed with future mining operations. These sites have been marked
with a 50-foot boundary around the perimeter of the Burial Mound Group 21WA9. All future mining
activities will be conducted outside the designated archaeological areas.
Interim Use — Temporary Ready Mix Concrete Plant
As an accessory use with the sand and gravel mining operations within the Nelson Mine, Aggre-
gate Industries was granted an interim conditional use permit for the production of concrete cast-
ings that will be used in the construction of a bridge over the St. Croix River, near Stillwater,
Minnesota. Aggregate materials mined from the Nelson Mine is used in mixing cement for produc-
ing concrete castings for bridge sections. This interim use is located north of Aggregate Industries'
existing processing plant location and the interim conditional use permit for this facility will expire
December 31, 2016.
A zoomed-in image of this temporary facility is shown below.
2015 Operations Plan
�' Primary Changes since 2014
City Council Memorandum
Case MP15-002
Aggregate Industries
Nelson Mining Permit
January 27, 2015
Page 7 of 7
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Meeting Notices
A meeting notice was mailed to 15 property owners who are within a half-mile of the mine.
These notices were mailed on January 15, 2015.
City Department Review
Aggregate Industries' 2015 mining permit application was distributed to other City departments.
No comments or recommendations were received.
Recommendation
That the City Council accepts the Planning Commission's recommendations approving the
Nelson Mine annual mining permit application by Aggregate Industries — North Central Region,
Inc., subject to the conditions recommended by the Planning Commission. Approval of this
resolution authorizes Aggregate Industries to operate 24 hours, seven days a week. A copy of
the draft resolution is attached.
' i • ` i 1
RESOLUTION APPROVING THE 2015 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 �/4, SE �/4, Section 31, Township 27, Range 21, South along Grey Cloud Trail
W �/2, SE �/, Section 31, Township 27, Range 21
E'/2, NE '/4, NW '/4, Section 31, Township 27, Range 21 South along Grey Cloud
Trail
W%z, NE'/4, NW �/4, Section 31, Township 27, Range 21 South along Grey Cloud
Trail
NW �/, NW �/, Section 31, Township 27, Range 21
S �/2, NW'/, Section 31, Township 27, Range 21
E �/2, SW �/4, Section 31, Township 27, Range 21
Lot 1, Section 31, Township 27, Range 21
N �/2, NE �/, Section 36, Township 27, Range 22
S �/z, NE �/, Section 36, Township 27, Range 22
N'/2, SE %, Section 36, Township 27, Range 22
Lot 2, Section 36, Township 27, Range 22
Lot 3, Section 36, Township 27, Range 22
SE '/4, SW �/4, Section 25, Township 27, Range 22
NE �/4, NW �/, Section 36, Township 27, Range 22
S �/2, NW'/4, Section 36, Township 27, Range 22
NW �/4, SW �/, Section 36, Township 27, Range 22
N �/z, SW �/4, SW �/, Section 25, Township 27, Range 22
S'/z, SW �/, SW �/4, Section 25, Township 27, Range 22
NW �/, NW �/, Section 36, Township 27, Range 22
NW'/4, SW'/4, Section 36, Township 27, Range 22
N �/, NE �/4, Section 35, Township 27, Range 22
S'/2, NE �/, Section 35, Township 27, Range 22
SE �/, 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'/, NW �/4, Section 5, Township 26, Range 21
Lot 4, Section 5, Township 26, Range 21
Lot 3, Section 5, Township 26, Range 21
N'/z, 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 �/4, SW'/, Section 36, Township 27, Range 22
Resolution No. 2015-XXX
Page 2
Lot 5, Section 35, Township 27, Range 22
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 750,000 to
800,000 tons of aggregate materials in 2015; and
WHEREAS, a notice of application was
ing them that the Planning Commission wa:
meeting on January 26, 2015; and
mailed to neighboring property owners inform-
scheduled to review the application at their
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 (5-to-0 vote) recommended ap-
proval of the mining permit at their January 26, 2015, 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 seven days per
week since 1995 when the dredge was first installed.
B. Since the dredge has been operation, 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, 2016, subject to the following conditions:
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. 2015-XXX
Page 3
2. The applicant is responsible for removing any materials that their equipment and/or
trucks may have spilled onto any public roadway. This material shall be cleaned up
immediately.
3. The outer limits of their mining operations 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 2015 Operations Plan is only an
illustration of the applicant's future desire to mine in those areas. City approval of
the 2015 Operations Plan does not guarantee mining permit approval for areas
shown as "future mining." Approval of the 2015 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, 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. Bituminous/asphalt
materials are prohibited from being buried on the premises.
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. All archeological, landmark sites, and existing burial mounds must be protected
from being damaged or adversely impacted from vehicles or equipment traveling in
the vicinity of these historic 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." This concept plan is only an illustration of a development concept
that the applicant and landowner have considered. The City's approval of the
Resolution No. 2015-XXX
Page 4
2015 Operations Plan does not guarantee approval or imply future approval of
the Harbor Island Concept Plan.
12. The Oak Savanna Reclamation Plan, Revised 9-3-10 is still valid. 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. All oak plantings within the
designated oak savanna groves must be replaced with new oak trees and
watered during dry conditions to promote their survival.
13. As the Oak Savanna Reclamation Plan is implemented, the applicant must
continue to update the City on the effectiveness of the reclamation and
restoration activities, particularly how many acorns are planted and how many
oak seedlings are growing. If the survival number of trees is low, then another
tree planting alternative will need to be discussed.
Passed the 4th day of February, 2015.
Myron Bailey, Mayor
Attest:
Caron M. Stransky, City Clerk
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6.2 Aggregate Industries' 2015 Mining Permit — Case MP2015-002
Aggregate Industries — North Central Region, Inc. has applied for their 2015 mining
permit to continue their mining operations on Lower Grey Cloud Island.
Burbank summarized the staff report and played a video showing some of the mining
operations. He recommended approval based on the findings of fact and subject to the
conditions stipulated in the staff report.
Bob Bieraugel, Aggregate Industries, 2815 Dodd Road, stated that the only changes to
their operations on a year-to-year basis are where the dredge is floating, where they are
wasting some of the excess sand coming off the dredge, and where the reclamation area
is. He explained that they are doing an oak savannah restoration as opposed to planting
non-native trees as they have done in the past. They are following the advice of Great
River Greening on the oak savannah restoration. Over the next 15 to 20 years, much of
that area will be native grasses and small but growing oak trees until the property owner
decides to develop the property.
Brittain asked if there has been any thought about spacing of the tree plantings for future
development or is it just a general restoration. Bieraugel responded that it is a general
restoration. An oak savannah is essentially a prairie with groves of oak trees. He de-
scribed past tree plantings. Prior to their mining operations, this area was a prairie with
top soil consisting of black sand. The oak savannah is the native ecotype for this area.
When they first started the oak savannah project, they planted five or six groves of oak
trees of varying sizes with a double ring of deer fencing around them. Over the years,
they gave up on one grove because the conditions are too dry and harsh. They will con-
tinue to take care of the groves and replant as trees die. Last year they cut five to ten
acres of black locust, which is an invasive tree species. This year, weather conditions
permitting, they will burn the 15-acre native prairie area and replant it with native grasses.
Rediske asked if anyone wanted to speak on this application. No one spoke.
Brittain made a motion to approve Aggregate Industries' 2015 mining permit, based
on the findings of fact and subject to the conditions listed in the stafif report.
lmdieke seconded.
Motion passed unanimously (5-to-0 vote).