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3. Tiller Zavoral Mine 2017 Annual Operating PermitMemorandum To: 444 Cedar Street, Suite 1500 Reference: Tiller Corporation -2017 Annual Saint Paul, MN 55101 651.292.4400 tkda.cam Review of Conditions Copies To: TKDA Memorandum To: Scandia City Council Reference: Tiller Corporation -2017 Annual Operating Permit—Site Visit and Review of Conditions Copies To: Neil Soltis, City Administrator Mike Caron, Tiller Corporation Christina Morrison, Tiller Corporation Brenda Eklund, Clerk Project No.: 16322.002 From: Sherri Buss, RLA AICP, Routing: Planner Date: July 27, 2017 The City approved the final Annual Operating Permit (AOP) for the Zavoral Mine and Reclamation Project in February, 2017. Active mining at the site ended in 2016. The significant issue remaining for the 2017 AOP was the successful completion of the required reclamation of the site, and transition to a new use—the Argo Navis Community Solar Garden (ANCSG). In May 2016, the City approved a CUP for the Argo Navis Community Solar Garden, which will occupy a portion of the area included in the Zavoral Mine and Reclamation Project. The City recently approved the Development Agreement for the project. The CUP conditions are included in the Development Agreement, including the requirement that the applicant and Tiller work together to revise the Reclamation Plan for the mine project to address berms, screening, a planting plan, seed mix, and site maintenance through the completion of the Mining Project and for the lifetime of the Solar Garden project. ANCSG plans to begin its activities at the Zavoral site on August 1 if they have received all approvals and Tiller has been released from its AOP and CUP obligations. The 2017 Zavoral AOP included the following conditions that Tiller needed to address prior to release from their obligations at the site and transfer to ANCSG. Staff completed a site visit to the Zavoral site on July 27, and this memo summarizes the findings related to compliance with the four conditions listed below: 1. The City or its consultants shall complete monitoring of reclamation activities on the site on behalf of the City. The applicant shall cooperate with the City as requested to complete the An employee owned company promoting affirmative action and equal opportunity Scandia City Council Tiller Zavoral Mine 2017 AOP Inspection Page 2 July 27, 2017 monitoring activities. The City shall inspect the reclamation activities on an as -needed basis. City and Washington Conservation District staff completed a site inspection at the Zavoral site with representatives of Tiller Corporation and ANCSG on July 27, 2017. The inspection included review of all reclamation activities required by the Reclamation Plan and 2017 AOP. Tiller cooperated with the City on the site visit. • This condition has been addressed as required. 2. The applicant shall complete site repair, reseeding, and stabilization measures as needed to address the erosion that occurred in the Phase 2 reclamation areas in 2016. The WCD and City shall inspect the repairs and determine if they meet the requirements of the Reclamation Plan, SWPPP, and Surface Water Plan for the site. WCD and City staff inspected the site repair and stabilization measures in the field on July 27, and discussed their findings with Tiller and ANCSG staff. Tiller had completed the installation of rock check dams, swales, erosion -control fabric and reseeding where the erosion occurred in 2016. All agreed that the site repair, reseeding and stabilization were completed successfully with the exception of one location on the site that receives significant drainage from upstream. WCD and City staff identified a location where a small gully is developing. Staff recommended the following: • Tiller and ANCSG should discuss the repair needed at the site, and how it will be completed. They should present their plan to complete repairs to the City, including which organization will complete the repairs. The repair should be limited to the area where the gully is occurring, with minimal impacts to the adjacent seeded areas. • One area where erosion is occurring needs to be repaired to satisfy this condition. Tiller and ANCSG will present a plan to address the erosion to the City for approval. • Tiller will also remove the silt fence that remains on the Zavoral property. 3. The applicant shall submit a final reclamation activity progress report, which shall include reclamation and monitoring for Phases 1-4. Tiller submitted the final reclamation activity progress report for Phases 1-4 to the City on July 26. City and WCD staff reviewed the report, and reviewed the reclaimed areas in the field. Staff found that the reclamation has met the criteria for success that were established in the Reclamation Plan, and some areas are exceeding the minimum criteria. • This condition has been addressed as required. 4. The applicant shall work with ANCSG and the site owner to transfer the responsibilities for reclamation and maintenance in the Phase 1-4 areas to ANCSG as part of the Development Agreement for the community Solar Garden project. Maintenance and monitoring in the I Scandia City Council Tiller Zavoral Mine 2017 AOP Inspection Page 3 July 27, 2017 entire Zavoral Mine and Reclamation Project Phase 1-4 areas must continue for five years after the completion of the mining project. Staff discussed this issue at the site visit. Tiller and ANCSG reported that they have created an agreement for transferring responsibilities for reclamation and maintenance of the entire site, including the Phase 1-4 reclamation areas that are outside the portion of the site where the solar garden will be located, from Tiller to ANCSG. City staff requested that Tiller and ANCSG provide a copy of the agreement, or that ANCSG submit a letter to the City stating that it is committed to implementing the Reclamation Plan, including the monitoring and maintenance of the Phase 1-4 areas for five years after the completion of the mining project. • When the City receives a copy of the maintenance agreement or statement regarding transfer of responsibility for the Reclamation Plan from ANCSG, this condition will be satisfied. Request for Council Action The 2017 AOP included a condition that "The City shall release Tiller Corporation from the reclamation obligations for the Zavoral Mine and Reclamation Project after the city has approved the repairs completed to the Phase 2 area, final reclamation report, final ANCSG plans for its project, and the Development Agreement with ANCSG." The City Council should review this report and may take the proposed action when it believes that all of the AOP conditions have been satisfied. 7 IF TILLER CORPORATION" Corporate Office: P.O. Box 1480 7200 Hemlock Lane, Suite 200 Maple Grove, Minnesota 55311-6840 July 27, 2017 Neil Soltis, Administrator City of Scandia 14727 209th Street North Scandia, MN 55073 Tiller Corporation and its operating divisions Barton Sand & Gravel Co. Commercial Asphalt Co. Barton Enterprises, Inc. General: (763) 425-4191 Facsimile: (763) 425-7153 Web: www.tillercorp.com Re: Zavoral Mine and Reclamation Project; Application for Release of Financial Security and Confirmation of Compliance Dear Mr. Soltis: Tiller Corporation ("Tiller") submits this letter as requested by the City of Scandia ("City") asking for City approval and execution of a Certificate of Completion acknowledging Tiller's compliance with its obligations under the "Permitted Activities, Reclamation Actions and other requirements" contained in the documents listed on Exhibit A attached and return of all financial security and escrowed funds in connection with the Zavoral Site ("Site"). Tiller has completed all Reclamation Actions required to establish final grades for the Site and establish vegetative cover in accordance with the Zavoral Property Reclamation Plan ("Reclamation Plan"). The City inspected the Site conditions and repairs to the Phase 2 area on July 27, 2017 and found the reclamation of the Site to be satisfactorily completed. Attached as Exhibit B is Tiller's final Reclamation Report. The Site will now transition from a mining use to installation and operation of a solar array. Tiller has worked with Argo Navis Community Solar Gardens LLC ("Developer") to transfer responsibilities for continued vegetative management and maintenance on the Site to the Developer. Tiller also understands that continued vegetative management and maintenance on the Site has been established under the provisions of a Developer's Agreement between the City, Developer and James and Kathleen Zavoral approved by City Council at its July 18, 2017 meeting and Conditional Use Permit for installation and operation of a solar array ("Project"). Tiller respectfully requests (i) the return of all financial security and the return of any remaining escrowed funds deposited with or otherwise provided to the City in connection with the Site and (ii) execution of a Certificate of Completion in the form incorporated as Exhibit E in the "Conditional Use Permit Compliance and Reclamation Agreement" listed in Exhibit A. This Company is an Equal Opportunity Employer July 27, 2017 Page 2 of 4 -r Tiller appreciates the City's consideration of this request. If you have any questions please do not hesitate to call. I may be reached at (763) 425-4191. Sincerely, Tiller Corporation Christina Morrison Land Use and Permitting Coordinator July 27, 2017 Page 3 of 4 EXHIBIT A Documents: -Ir City of Scandia Resolution No. 02-19-13-06; Resolution Approving Conditional Use Permit Compliance and Reclamation Agreement. 2. City of Scandia, Minnesota Resolution No. 02-19-13-04; Approving a Conditional Use Permit for the Zavoral Mine and Reclamation Project. City of Scandia Resolution No. 02-21-17-07; Resolution Approving the 2017 Annual Operating Permit for the Zavoral Sand and Gravel Mine and Reclamation Project. July 27, 2017 Page 4 of 4 EXHIBIT B Reclamation Report -Ir IF TILLER CORPORATION" Corporate Office: P.O. Box 1480 7200 Hemlock Lane, Suite 200 Maple Grove, Minnesota 55311-6840 July 26, 2017 Neil Soltis, Administrator City of Scandia 14727 209th Street North Scandia, MN 55073 Re: Reclamation Report - Zavoral Mining and Reclamation Project Dear Mr. Soltis: Tiller Corporation and its operating divisions Barton Sand & Gravel Co. Commercial Asphalt Co. Barton Enterprises, Inc. General: (763) 425-4191 Facsimile: (763) 425-7153 Web: www.tillercorp.com The purpose of this letter is to provide the City of Scandia with an update on the status of reclamation activities for the Zavoral Mining and Reclamation Project. The Project consists of the mining and reclamation of a 64 -acre site (Zavoral Site or Site). 1. Reclamation Activities 2017: Reclamation activity performed in 2017 involved minor grading, stabilization measures to repair the Phase 2 area and stabilization measures to improve other areas of the Site in need of maintenance. Reclamation activity commenced in June 2017 and was completed in July 2017. The activity included grading, the installation of rock check dams, drainage swales, riprap, seeding and installation of straw blanket. Interseeding was completed in areas on the slopes where small rivulets had formed. This was completed to avoid disturbing the germinating prairie plants and increase vegetative density to promote infiltration and soil stabilization while the prairie plantings continue to mature. With the stabilization measures implemented and the reclamation activities completed, vegetative management and maintenance responsibilities will transfer to the Developer. 2. Phase 1 Update (Fourth Year of Establishment): As typical of a native planting in its fourth year of establishment, species commonly observed in abundance included sideoats grama, Canada wildrye, black-eyed susan, wild bergamot, and foxglove beardtongue. Additional grass species such as big bluestem, switchgrass, and Indiangrass are becoming more visible and dominant. These bunch forming grasses are beginning to fill the spatial gaps in the prairie matrix that had been observed in the previous growing seasons. Several forb species reaching flowering This Company is an Equal Opportunity Employer July 26, 2017 Page 2 of 2 maturity include: black-eyed Susan, anise hyssop, Canada milkvetch, wild bergamot, foxglove beardtongue, figwort, side -oats grama, Canada wildrye, and switchgrass. Timely management strategies have proven to be successful as weed pressure by invasive species within the Phase 1 area is minimal. Management strategies implemented in the past included timely spot mowing, targeted herbicide application and a strategic spring burn of the area in 2016. a. Transplanted White Pine Trees: No changes were observed in the transplanted white pine area. As was reported in previously, one (1) of the twenty-five (25) transplanted white pines had proven to be unsuccessful. No additional white pine mortality has been detected in July 2017. b. Transition Area: A Transition Area within Phase 1 was planted with a total of 100 trees and shrubs in May 2015. The plantings have been successfully transplanted and remain viable in July 2017. 3. Phase 2 -North Area Update (Second Year of Establishment): Now in its second year of growth, the native prairie seeding is continuing to establish as expected. As is typical of an early prairie planting, species commonly observed included Canada wildrye, sideoats grama, black-eyed Susan, wild bergamot, foxglove beardtongue, and side oats grama. Several species have reached flowering maturity including black-eyed Susan, anise hyssop, Canada milkvetch, wild bergamot, foxglove beardtongue, figwort, side oats grama and Canada wildrye. Weed pressure in the planting area should be managed and maintained through timely spot mowing and targeted herbicide treatment to ensure continued successful establishment of the native prairie planting. 4. Phase 2 -South Area, Phase 3 and Phase 4 Update (First Year of Establishment): Please refer to the Native Seeding Evaluation completed by Critical Connections Ecological Services, Inc., attached herein. If you have any questions please do not hesitate to call. I may be reached at (763) 425-4191. Sincerely, Tiller Corporation Christina Morrison Land Use and Permitting Coordinator Attachments: Native Seeding Evaluation, CCES, Inc. Critical Connections Ecological Services, Inc. 450 Dain Street North, Suite 130, Stillwater, Minnesota 55082 Natural Resource Consulting July 25, 2017 Landscape Ecology Ms. Christina Morrison Tiller Corporation, Land Use and Permitting Coordinator Botanical Inventories 7200 Hemlock Lane, Suite 200 Maple Grove, MN 55311 Threatened & Endangered Re: Native Seeding Evaluation Species Surveys Zavoral Site, Scandia, Minnesota Greenway & Open Space Dear Christina Morrison: Planning As per the request of Tiller Corporation, CCES has reviewed the status of the approximately Natural Community thirty-two (32) acres of the Zavoral reclamation areas which were seeded with a native Restoration prairie seed mix in the Fall of 2016. To complete the evaluation, CCES ecologists walked multiple sampling transects on July 25,2017 to determine the current status of the planting Wetland area, now in the middle of its first full growing season. Delineation & Permitting The results of our sampling effort indicate that the native planting area is progressing as Wetland expected for a native planting in the middle of its first full growing season. The cover crop Banking & of oats is still predominant and continues to provide stabilization of soils at the site. Native Monitoring seedlings were fairly abundant in all areas sampled, typically noted at a density of approximately 2-3 seedlings per square foot, but not usually less than 1 seeding per square Minnesota foot. These field observed densities are indications that the native planting areas are Land Cover Classification progressing as would be expected and the density of native plants per square foot will continue to increase as more warm season grasses emerge, establish and expand. Rows of Geographic native seedlings are also beginning to become evident in many of the sampling areas. Information Systems Native species from the seed mix commonly observed during our sampling effort included partridge pea (Chamaecrista fasciculata), black-eyed susan (Rudbeckia hirta), wild bergamot Global (Monarda fistulosa), early sunflower (Heliopsis helianthoides), grey -headed coneflower Positioning Systems (Ratibida pinnata), Canada wildrye (Elymus canadensis) and side oats grama (eouteloua curtipendula). Additional species of warm season grasses from the seed mix are just Database beginning to emerge and follow-up monitoring later in the growing season will allow for Management & more positive identification of individual grass species as they continue to mature. Development Environmental Education Phone: 651.433.4410 Email: info@ccesinc.com Web: www.ccesinc.com Tiller Corporation Native Seeding Evaluation Zavoral Site, Scandia, Minnesota July 25, 2017 Page 2 of 2 Pressure from non-native weedy species was typical of a first year planting. Weedy species commonly observed in the native planting area included short-lived species such as common ragweed (Ambrosia artemisiifolia), giant ragweed (Ambrosia trifida), black medic (Medicago lupulina), yellow foxtail (Setaria pumila), and less abundantly, field mustard (Brassica rapa). Longer lived weedy species included red clover (Trifolium pratense) as well as white sweet clover (Melilotus alba) and yellow sweet clover (Melilotus officinalis). As outlined in the Zavoral Property Reclamation Plan (2013), ongoing maintenance of native planting areas is essential to the success of the native planting. Follow-up maintenance activities that should be completed yet this season include weed management tasks. Mowing of the newly planted areas to a height of approximately 6" will prevent weedy species from setting and scattering seed. Mowing will also reduce competition allowing small native grass seedlings to continue to emerge and establish successfully with adequate sunlight available at the soil surface. Additional spot herbicide treatment may be necessary to control small populations of sweet clover which are not overly abundant at the site at this time. Sweet clover is mainly confined to edges of the planting (near access drives) and could yet be controlled with minimal effort assuming a timely effort. Some broadcast seeding may be necessary in subsequent growing seasons to augment any areas where establishment is lagging behind or in areas prone to erosion on steep slopes where a higher density of plants may be desirable. A broadcast seeding effort could occur following the first routine prescribed burn, which can be implemented as soon as there is enough fuel to carry an effective fire (likely in the fall of 2018). It should be noted that weed management activities should also be implemented in the areas of the site that were seeded to the cover crop only (approximately 24 -acres). If left unmanaged, these areas would serve as a future and ongoing weed seed source for the remainder of the site. Thank you for the opportunity to complete this evaluation on behalf of Tiller Corporation. If you have any questions regarding this information or require additional detail, please contact Amy Husveth at 651-433-4410 or ahusveth@ccesinc.com Respectfully submitted, Amy Husveth, M.S. Restoration Ecologist Attached: Site photographs from July of 2017 and map of areas seeded in Fall of 2016 Photographs of Seedling Establishment at Zavoral Site from July 25, 2017: Above: native planting in its first growing season, cover crop abundant Below: native seedlings beginning to emerge in rows. Black eyed Susan and native grasses pictured here Above: native seedlings emerging in rows, black eyed Susan, grey -headed coneflower and native grasses pictured here Map of areas seeded in Fall of 2016 4 _a;�WVW� X - 11 Acres Prairie Orth of PP — - 15 Acres Over Crop North of PP 10 Acres Prairie Nartlr of PP Seeding Areas First Mobilization _Mar -Cover Crop i I ler-Prai rie v)verhead Power Poles {Pp} !�1 Project Boundary aProperty Roundary Seeding to he completed in two mobilizations. First mobilization will seed areas south of the power poles and the area southwest of the main access road. The second mobilization will seed areas earth rf the power pales. Bath mobilizations will require a combination of prairie and corer crop seeding. 9Acres Coyer Seauth of PP 11 Acres Prairie Sault of PP