Loading...
HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/07/1999 - FIRST READING OF ORDINANCE NO. 199, 1999, AUTHORIZ 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 Advisory Board, and the 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 from royalty payments to the Natural Areas Program. The project also involves the transfer of 174 acres of the Resource Recovery Farm from the Wastewater Utility to the Natural Areas Program. The Natural Areas Program will compensate the Utility for the land at fair market value of $1,270,000 over a three-year period with funds 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 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 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,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. �CKGROUND: 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 DATE: December 7, 1999 2 ITEM NUMBER: 23 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 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 Lands Along the Poudre River provided a"blueprint"for this collaboration and identified several high priority areas for action. Several projects have been completed and others are under investigation at various locations along the river. This project, to "exchange" sand and gravel resources between the 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. These operations are located on lands owned by LaFarge, Flatiron Companies, and Colorado State University (donated by Flatiron Companies). At present,the majority of the lands permitted for gravel mining in 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 East Rigden property, approximately 86 acres were originally planned to be mined. This mineable area includes an old oxbow of the Cache la Poudre River, an active colonial nesting site(heronry)for great blue herons,and mature cottonwood-riparian habitat. These cottonwood riparian forests are considered the most important 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 DATE: December 7, 1999 3 ITEM NUMBER: 23 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 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 the East Rigden site, LaFarge would instead mine approximately 106 acres of the 174-acre portion of the Resource Recovery Farm site to be transferred to the Natural Areas Program. This area is currently used for sludge disposal and crop production. It is zoned RC—River 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 plan was developed by the Natural Resources Department, in consultation with LaFarge. The mining and reclamation plan was designed in accordance with our Strategies for Gravel Lands Along the Poudre River to enhance wildlife habitat by creating a unique combination of wetlands and uplands that add diversity to the existing 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 has been submitted to the City's Current Planning Department and is scheduled for consideration on December 16, 1999. The only concerns expressed so far in either approval process have been by Boxelder Sanitation District regarding the potential impact on existing sanitary sewer lines that traverse the perimeter of the proposed mining property. The mining operation will not alter in any 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: DATE: December 7, 1999 4 ITEM NUMBER: 23 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 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 several other potential benefits to the City. Because there is more overburden on the Resource Recovery Farm site than is needed for reclamation,the excess material is available for other municipal uses. Potential uses under 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. ORDINANCE NO. 199, 1999 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE LEASE OF PORTIONS OF THE RESOURCE RECOVERY FARM TO LAFARGE CORPORATION FOR GRAVEL MINING WHEREAS, the City of Fort Collins Utility is the owner of the property known as the Resource Recovery Farm in Latimer County,Colorado(the"Site"),which was acquired by the City for the City's wastewater utility to be used as part of the utility's sludge disposal program and which is approximately 174 acres in size; and WHEREAS,LaFarge Corporation("LaFarge")currently has the necessary lease and mining permit to mine sand and gravel on valuable riparian corridor property along the southern side of the Poudre River(the"River Parcel"),which is approximately 40 acres in size and lies to the south of the Site; and WHEREAS,LaFarge,along with Cottonwood Land and Farms,Ltd.,the owner of the River Parcel,and Flatiron Sand and Gravel Company,the owner of the mineral rights on the River Parcel, (the "Owners") have agreed in concept to grant to the City a conservation easement prohibiting mining on the River Parcel in exchange for the right to mine gravel on portions of the Site; and WHEREAS,LaFarge has also agreed to pay royalties for the gravel mined on each of three subsections of the Site at a rate of$0.58 per ton,which is the fair market value of the gravel to be mined, and to pay rent to the City for conveyor equipment to be provided at a rate of$0.39 per ton of gravel mined; and WHEREAS,royalties for the first portion of the Site to be mined("Parcel One")will be paid by LaFarge to the Owners, and royalties for the second and third portions of the Site to be mined ("Portion Two"and"Portion Three")will be paid by LaFarge to the City; and WHEREAS, LaFarge, the Owners, and City staff have begun the preparation of a mining lease agreement and a conservation easement to implement the agreement described above and to protect their respective interests,and staff anticipates that those agreements will be completed and ready for execution by mid-January; and WHEREAS, City staff has recommended that the Council approve the conveyance of the proposed mining lease to LaFarge,in exchange for the conservation easement over the River Parcel, in order to protect and preserve the natural features and habitat values of the River Parcel, and to gain the royalty payments for the gravel to be mined; and WHEREAS,staff has determined that the fair market value of the entire Site is $1,270,000; and i WHEREAS, funds are available in the Natural Areas Portion of the Building Community Choices Fund in fiscal year 2000 to compensate the Utility the amount of$540,000 for the fair market value of Portion One, which Staff has recommended be managed and used for natural areas purposes,as sludge management operations are phased out and moved to Meadow Springs Ranch; and WHEREAS, staff anticipates that funds for payment from the Natural Areas Portion of the Building Community Choices Fund to the Wastewater Utility Fund to compensate the Utility for Portion Two and Portion Three will be available in subsequent years, as sludge management operations are phased out on those portions of the Site, allowing for the subsequent conversion of those portions of the Site to natural areas purposes; and WHEREAS, in the event that funds are not available to compensate the Utility for Portion Two and Portion Three, royalties received by the City for mining on those portions of the Site will be deposited in the Wastewater Utility Fund; and WHEREAS, Section 23-111 of the City Code provides that the City Council is authorized to sell, convey or otherwise dispose of real property owned by the City,provided the Council first finds by ordinance that any sale or disposition of real property owned by the City will not materially impair the viability of any City utility system as a whole of which the property is a part,will be for the benefit of the City's citizens, and will be in the best interests of the City. NOW, THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the above described conveyance of mining rights on the Site will not materially impair the viability of the City's wastewater utility or utility as a whole, will be for the benefit of the City's citizens, and is in the best interests of the City. Section 2. That the Mayor is hereby authorized to execute such documents of conveyance as are necessary to convey a mining lease to LaFarge upon the term and conditions described above, and subject to such other terms and conditions as the City Manager in consultation with the City Attorney determines are in the best interest of the City,in exchange for the conservation easement to be conveyed to the City over the River Parcel. Section 3. That the conversion of all or any portion of the Site from wastewater utility purposes to natural areas purposes,consistent with the terms and conditions set forth herein,will not materially impair the viability of the City's wastewater utility or utility as a whole, will be for the benefit of the City's citizens, and is in the best interests of the City. • Introduced, considered favorably on first reading, and ordered published this 7th day of December,A.D. 1999, and to be presented for final passage on the 4th day of January, A.D. 2000. Mayor ATTEST: City Clerk Passed and adopted on final reading this 4th day of January, A.D. 2000. Mayor ATTEST: • City Clerk LEGEND CO. HWY#14 C PROJECT .; ;;;RC*,, River Conservation G� LOCATION Commercial POL RC T Employment I ; E Em to ment :;. iSPEC Industrial our POL / L %% N � P T � POL Public Open Lands o SkSk• Lr H Jr ' w :::: ® Transition OUTSIDE E •:`• i ' w m FT. COLUNS :��,RC GO CSU ;`RC;`'�; ' Y LIMITS ::::.M CrI ; UE Urban Estate F ::::; % %G % w DRAKE RD `CSUc POL 1 MI RAD.± FT. COLLINS/7 p CITY LIMITS O1 ` ----` - %RC o - - c I 0 HORSETOOTH RD ksk REF: CITY OF FORT COLLINS ZONING G.I.S., MARCH, 1997 VICINITY MAP Road 1 / r Resource Recovery Farm • if tu' Clio PermifBowdary y „ wens o 7 s c4 21 48£i9 a ' 1t / fr sst}�igdenMine it ' t PermifBoundary tt i 1 / t U ra BMn;y Sewage a _4„ lonel . V ''. Figure 1 NCIO NPlan Showing Permit Boundaries of Gravel Mines in Vicinity of County Road 9 &the Cache La Poudre r River,Ft. Collins, CO low 0 aoo low 2= I inch = 1000ft goo ��r� w!tMfw Road , ♦� • r,�, Lys` , ;a esource ecoveryFarm • , its clip r f, PermItBoandary verse . ti se '" E ,Recdahved Wdd a a 7 r EastmgaleaMioe • �!' Perzmm it a •i. •i7 / i Saved Area i i 1: s •l .. / ��is +� MPos!-Min/age%a;�ed 4, WOdfile Habit at q . y 4 N Figure 2 Plan Showing Reclamation and Saved Areas of Gravel Mines in Vicinity of County Road 9 &the Cache La Poudre River,Ft Collins, CO 1000 0 5w - 1000 20M 1 inch = 1000 ft. Natural Resources Advisory Board September 29, 1999 Page 6 Waskom said that he is supportive of the land purchase and the affordable housing component seems to be thought out and a good deal. He said the name is troublesome because of the way Kelly feels about it. Waskom said that he would like staff to go back and work the deal in a different way and recognize the family in another way. Nate Donovan said that it is a good purchase with a connection to the corridor and the affordable housing component is a good thing. He added that he does not want it divisive. Donovan said that the naming is an appropriate application of the administrative guidelines and flexibility is needed in determining what is a significant donation. He noted that three percent could be significant. Donovan said that there is a need to logically determine how a naming decision is made. He felt that the naming of the area is more important than a ceremony or recognition because it is a permanent thing. Resource Reeovery Farm/East Rigden Resources Exchange: Tom Shoemaker, Natural Resources Director Tom Shoemaker said that he has been working for years to find a way to protect 40 acres of habitat on this property and now everything has come together. He said that the heronry area is permitted for mining and, in trying to minimize the mining in the area, he has a contract on the 77- acre Port of Entry (POE) property owned by LaFarge. Shoemaker said that he has been working on identifying a gravel trade for a 100-acre property _ owned by Flatiron and mined by LaFarge that contains 1.2 million tons of gravel. Since the City- owned Resource Recovery Farm will be moving the sludge operation to Meadow Springs Ranch and has 107 acres that could be used for mining, a mine permit application has been submitted to the state and city's review process to approve the trade. LaFarge has agreed. Shoemaker said that restoration into wetland is cost effective for the Rigden and POE mine pits. He added that this is an opportunity to take the dike out between the two properties and overall will result in 350 acres of wetland. Shoemaker said that the City will buy the conveyor to be used at the Resource Recovery Farm site and will get paid 39 cents a ton to recover the cost. Bridge repairs and enhanced reclamation will cost the City $1.5 million. The conveyor rent and gravel royalty and excess overburden sales will result in $2.3 million revenue to the City. He noted that the land purchase is independent of the exchange. Don Rodriguez asked it the ELC has weighed in. Shoemaker said that they have reviewed it and are okay with it. There will be berming and landscaping around the visitor center and the trail location. LaFarge is predicting that they will be out in four or five years. Shoemaker said that Boxelder Sanitation District concerns about leakage into the pit will be addressed by pumping water into Boxelder. He added that engineers will address the other concerns about stability of sewer lines and setbacks to make sure the District is comfortable. Natural Resources Adiisory Board September 29, 1999 Page 7 Reagan Waskom said that he likes the trade and hopes it can happen. Randy Fischer asked what assurances are there that Flatiron will sell the property. Shoemaker reiterated that the property acquisition is a separate issue from the exchange, but we will have assurances from Flatiron once this falls into place. Fischer asked about staffing and the costs dealing with being in the gravel business. Shoemaker said that is a good point and there is no answer just yet. He is going one step at a time. Nate Donovan said he likes the trade and suggested getting ahead of the curve to prevent naming it the"LaFarge and Flatiron Natural Area". Approval of Minutes With the following changes, the minutes of the September 1, 1999 Regular Meeting were approved: Page 4, delete supporting and insert opposing. Randy Fischer will e-mail to staff other changes. Six Month Planning Calendar October 5: Cleanup Ordinance and Budget Hearing November 2: Land Use Code Amendments. October 26: Natural Areas Update Review Future Agenda Items • BMP Design Criteria • Regional Trails to Greeley • Gateway Project in October— Craig Foreman • Cities for Climate Protect in November • Natural Areas Program Update—October 20 • New Issues and Concerns Roundtable—October 20 • Boxelder Decision- October 20 • Boxelder Easement—November 2 and November 16 • Review general process on easements—October 20 Review Action Log • Take off Budget Memo • Add that a boardmember will attend the Council meeting when the Resource Recovery Farm/Rigden trade is presented Committee Reports • Trails: Committee members took a field trip to Redwing Marsh Annex, a piece of land that • would connect Redwing marsh on Willox Lane. A neighboring property owner would like a fence. Staff is working out details.