HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/04/2000 - POSTPONEMENT OF SECOND READING OF ORDINANCE NO. 19 AGENDA ITEM SUMMARY ITEM NUMBER: 17
DATE: January 4, 2000
• FORT COLLINS CITY COUNCIL STAFF: Tom Shoemaker
SUBJECT:
Postponement of Second Reading of Ordinance No. 199, 1999, Authorizing the Lease of Portions
of the Resource Recovery Farm to LaFarge Corporation for Sand and Gravel Mining in Order to
Protect Sensitive Natural Habitats Along the Cache la Poudre River, to February 15, 2000.
RECOMMENDATION:
Staff,the Natural Resources Advisory Board,and the Water Board recommend postponement of the
Ordinance on Second Reading to February 15,2000.
EXECUTIVE SUMMARY:
Ordinance No. 199, 1999,which was unanimously adopted on First Reading on December 7, 1999,
enables implementation of a unique natural area conservation project involving the City of Fort
Collins, LaFarge Corporation, Flatiron Companies, and Colorado State University. The
collaborative project will save from sand and gravel mining approximately 40 acres of meadow and
mature riparian forest along the Cache la Poudre River that represents some of the most unique and
valuable wildlife habitat in the Fort Collins area. In exchange for not mining these sensitive natural
habitats. approximately 106 acres of much less sensitive agricultural land on the City's Resource
Recover- Farm will instead be mined. Reclamation of the mined area on the Resource Recovery
Farm will enhance the wildlife habitat diversity and overall value of the natural areas along this reach
of the Cache la Poudre River. This area will enhance the City's efforts to protect and enhance the
wildlife habitat,aesthetic.and recreational values of this section of the Poudre River consistent with
the City's Natural Areas Policies and will also enhance programs at CSU's Environmental Learning
Center.
Second Reading of this Ordinance is being postponed to February 15,2000 to allow additional time
to finalize the necessary lease and contractual documents with LaFarge,Flatiron,and Colorado State
University.
AGENDA ITEM SUMMARY ITEM NUMBER: 23
DATE: December 7, 1999
FORT COLLINS CITY COUNCIL
STAFF: Tom Shoemaker
SUBJECT:
First Reading of Ordinance No. 199, 1999, Authorizing the Lease of Portions of the Resource
Recovery Farm to LaFarge Corporation for Sand and Gravel Mining in Order to Protect Sensitive
Natural Habitats Along the Cache la Poudre River.
RECOMMENDATION:
Staff, the Natural Resources 4dvisory Board, and 11re Water Board recommend adoption of the
Ordinance on First Reading _
FINANCIAL IMPACT:
This Ordinance authorizes the lease of sand and gravel reserves on a portion of the Resource
Recovery Farm to LaFarge Corporation which will result in a net income estimated at$930,000 over
a period of five years fromrr - aymen �o a " Areas Program. The project also
involves the transfer of 174 e Refrom the Wastewater Utility to
the Natural Areas Program. al Areas {'o9ram will c mpensate the Utility for the land at
fair market value of $1.270,000ef a thre ar pnriad with 3 from the Natural Areas Portion
of the Building Community Choices Fund.
EXECUTIVE SUMMARY:
This Ordinance enables implementation of a unique natural area conservation project involving the
City of Fort Collins,LaFarge Corporation,Flatiron Companies,and Colorado State University. The
collaborative project will save froth Viand and.grav .1 a Wro ately 40 acres of meadow and
mature riparian forest along the ache la Poudie3tiverr t represents some of the most unique and
valuable wildlife habitat in th , "ort Collins are" ange�not mining these sensitive natural
habitats, approximately 106 a'" s of..much lesa'sensitive agricultural land on the City's Resource
Recovery Farm will instead be mined. Reclamation of the mined area on the Resource Recovery
Farm will enhance the wildlife habitat diversity and overall value of the natural areas along this
reach of the Cache la Poudre River. This area will enhance the City's efforts to protect and enhance
the wildlife habitat,aestlretic,and recreational values of this section of the Poudre River consistent
with the Cir's Natural Areas Policies and will also enhance programs at CSU's Environmental
Learning Center.
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BACKGROUND:
LaFarge Corporation (formerly Western Mobile) has numerous sand and gravel mining and
processing operations located along the Cache la Poudre River in the vicinity of Fort Collins. For
the past five years,City staff have collaborated with LaFarge to develop and implement approaches
to sand and gravel mining and reclamation that enable gravel operations to continue,provide a high
DATE: December 7, 1999 2 ITEM NUMBER: 23
level of environmental protection during mining, and enhance the reclamation of mined lands to
maximize environmental and community benefits, including:
Preserving, enhancing, and restoring historic character, ecological functions and values, and
biodiversity of the Poudre River valley;
Preserving and enhancing significant natural and cultural features;
Minimizing evaporative loss of ground water and augmentation obligations;
Providing a rich and valuable setting for interpretation and education; and
Providing a diverse setting for recreation.
The City's 1998 Strategy for Gravel^:ands'Aiongthe,Poudre-Riverprovided a"blueprint" for this
collaboration and identified several high priority areas1or action. Several projects have been
completed and others are under investigation atwarious locati s along the river. This project,to
"exchange" sand and gravel resources between t 'e_LaFarge East Rigden Mine and the City's
Resource Recovery Farm, is probably both the most urgent, complex, and important of all the
projects we hope to complete with Lafarge.
LaFarge's Rigden Mine and Plant site is located along the Cache la Poudre River in Fort Collins at
the intersection of Drake Road and County Road 9, near the City's Water Treatment Plant#2 and
the CSU Environmental Learning Center. The site is one of the company's main operations centers
in northern Colorado and has been in operation since the early 1970's. The site includes both
mining operations and various processing facilities for production of concrete, asphalt, and other
construction materials. The 'ope ti to. o " an&'owned by LaFarge, Flatiron
Companies,and Colorado Sta�e Umve ty (do 'te { laf companies).
At present the majority of the lapemu orel mi n this vicinity have already been
mined and are in various stages of the reclamation process. The remaining active mining area is the
106-acre East Rigden Pit,which is located between the Burlington Northern Railroad tracks and the
Cache la Poudre River. The mine permit area includes land owned by Flatiron Companies and the
southern portion of the CSU Environmental Learning Center (land donated to the University by
Flatiron). Flatiron Companies owns all of the sand and gravel reserves (including those on
University property) and has leased them to LaFarge.
Of the 106 acres included in the, Ri pr mxi=tely 86 acres were originally
planned to be mined. This mineable arefi inclu es o o w cif the Cache la Poudre River, an
active colonial nesting site(heEonry)for�geat bl " 1 "an E
cottonwood-riparian habitat.
These cottonwood riparian forests az. cotde tle most im wildlife habitats in the state
of Colorado, and the forest on this site is one of the best areas in the Fort Collins vicinity. In
addition, it is on and adjacent to the CSU Environmental Learning Center, a site that receives
thousands of visitors each year and is highly valued by the Fort Collins community. Approximately
40 acres of this valuable habitat will be mined if an alternative is not developed. The area contains
1.2 million tons of gravel and is vital to LaFarge's operations in the area.
Recognizing the value of this area,the City, LaFarge, CSU, and Flatiron companies have worked
for several years to develop an alternative to mining the site. Lafarge has avoided mining the area
and has cooperated effectively with City staff to develop alternatives. They have agreed to an
exchange, subject to City Council approval, in which they would forego mining the remainder of
the East Rigden site, in exchange for the rights to mine portions of the City's Resource Recovery
Farm. Flatiron companies have also agreed to the exchange and is willing to sell the East Rigden
property,north of the Burlington Northern Railroad tracks, to the City. The necessary leases and
DATE: December 7, 1999 3 ITEM NUMBER: 23
contractual documents for these agreements are currently being developed and will be completed
before second reading of the ordinance.
As proposed, the Wastewater Utility would transfer approximately 174 acres of the Resource
Recovery Farm to the Natural Area Program over a three year period beginning in 2000. This
phased approach allows the Utility to phase out its sludge management operations on this portion
of the Resource Recovery Farm as it begins operations at Meadow Springs Ranch. The Natural
Areas Program would compensate the Utility the appraised value of the property, $1,270,000 over
the three-year period.
In exchange for not mining the remainder of 4he East Rigden site;LaFarge would instead mine
approximately 106 acres of,the 174-acre portion of,,he Resource Recovery Farm site to be
transferred to the Natural Areas Program': This irea is currently used for sludge disposal and crop
production. It is zoned RC—'`"Rivet"Conservation :under the.City's Land Use Code, a zoning
designation that was designed, in part, to allow resource extraction activities to continue in
appropriate areas near the Poudre River. The area contains an estimated 2.8 million tons of gravel,
which LaFarge would extract over a 3 to 5 year period, beginning in January 2000. The gravel
would be transported by a conveyor system to the company's existing processing facilities south of
the river. LaFarge will be responsible for all mining activities and for ensuring that reclamation
occurs according to the City's and State specifications as detailed in an approved mining and
reclamation plan.
The mining and reclamation . an ' :, evi' qpe b t t�Na, ' Resources Department, in
consultation with LaFarge The mining ° d rec nsplan designed in accordance with our
Strategies for Gravel Lands All a,q the oudre ver ' enhance wildlife habitat by creating a unique
combination of wetlands and up' s a� diversity to isting complex of habitats in the
vicinity of the site. The mining project also provides unique opportunities for environmental
learning at the adjacent Environmental Learning Center and will include a variety of interpretive
features to explain the mining and reclamation project, as well as the unique cooperative project
among the various parties.
The proposed mining and reclamation plan has been approved by the Colorado Division of Minerals
and Geology. Since mining is considered a development activity under the City's Land Use Code,
a Preliminary Development Plan ha been submittedlozhe City's Current Planning Department and
is scheduled for consideration pn De r 16 199�9. The y c ncems expressed so far in either
approval process have been by Boxel er S ti irl=Distnci tegarding the potential impact on
existing sanitary sewer Imes `t6 traversethth errmeter of the proposed mining property. The
mining operation will not alter in way the existing easements for the sewer lines. Staff and our
consultants are working closely with Boxelder to ensure that adequate setbacks are maintained in
all areas to ensure protection of the sewer lines.
The proposed "exchange" of gravel reserves is designed to be "zero added cost" to LaFarge and
Flatiron Companies and to provide a fair market return to the City for the materials taken from the
Resource Recovery Farm property. The financial elements of the exchange include the following:
The main additional cost to LaFarge of the proposal is the conveyor system that would be used
to transport sand and gravel from the Resource Recovery Farm to their existing plant site at East
Rigden. As proposed, the City would pay the capital cost of approximately $1,117,640.
LaFarge would then pay rent on the conveyor at the rate of$0.39 per ton of material,so the City
DATE: December 7, 1999 4 ITEM NUMBER: 23
would be reimbursed for the full cost of the conveyor. The net cost to the City would be the
time value of money over the mining period.
Flatiron would receive royalties on the first 1.2 million tons of gravel taken from the Resource
Recovery Farm, as if the material had been taken from the East Rigden site. This royalty rate
would be $0.58 per ton.
The City would receive royalties of$0.58 per ton on the remaining 1.6 million tons of gravel
taken from the Resource Recovery Farm,totalling approximately$930,000. These funds would
be placed in the Natural Areas portion of the Building Community Choices Fund and used to
partially offset the cost of the purchase of the Resource Recovery Farm property from the
Wastewater Utility.
The proposed project also offers sever"ther potential benefits to the City. Because there is more
overburden on the Resource Recovery Farm site`iha ss neededfor reclamation,the excess material
is available for other municipal"uses.'Potential uses rider consideration include providing material
for the planned widening of Prospect Road and for enhancing reclamation of other mine sites in the
vicinity.
The proposed project has been reviewed by the Natural Resources Advisory Board and by the Water
Board. Both boards unanimously approved of the proposal. The Planning and Zoning Board will
consider the proposed land use of mining and reclamation at its December 16, 1999 meeting. The
results of the hearing and vote will be reported to Council on Second Reading.
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