HomeMy WebLinkAbout20071176.tiff MEMORANDUM
TO: Clerk to the Board DATE: April 18, 2007
C.
COLORADO FROM: Dave Bauer, Chief Senior Engineer
SUBJECT: Consent Agenda Item
Proposal from Applegate Group dated March 15,2007,to provide planning and permitting services
in the Sheep Draw mining operation and reservoir development.
The appropriate documentation is attached.
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2007-1176
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BOARD OF COUNTY COMMISSIONERS
REVIEW/WORK SESSION REQUEST
RE: Division of Reclamation, Mining and Safety Application for Sheep Draw Gravel Pit
DEPARTMENT: PUBLIC WORKS DATE: April 3, 2007
PERSON REQUESTING: Dave Bauer, Greg Nelson, Public Works
Brief description of the problem/issue:
Public Works requests permission to begin the permitting process for the proposed Sheep Draw gravel pit. The pit will be
on 156 acres of County-owned property located just west of 59th Street (WCR 31) in the Poudre River floodplain in
Greeley. Public Works anticipates that upon the completion of mining, the resulting excavation will be converted to water
storage. The permitting process is expected to take over one year and involves submission of applications to the
appropriate state agencies, ground water studies, advertising in local news media, and public meetings to inform affected
community members. The proposed gravel pit will also need to be approved through the County's Use by Special review
process. Public Works has received a proposal from the Applegate Group for permitting assistance; the total cost for
permitting will be approximately $220,000.
What options exist for the Board? (Include consequences, impacts, costs, etc. of options)
Due to the completion of mining at the Geisert pit, Weld County is in need of gravel resources for planned and future road
repairs and construction in the Greeley area. Because of its location, the Sheep Draw site offers the opportunity for gravel
resources and conversion to water storage following mining. Due to the proximity to the City of Greeley, the Poudre trail,
Boomerang golf, and other developed areas and subdivisions, opposition to mining at this site is likely. As an alternative
to developing County-owned gravel sites, construction materials can be purchased at market prices from commercial
sources.
Recommendation to the Board:
Due to the long lead times needed for State approvals of mining projects and the ongoing need for a gravel resource in the
vicinity of planned and future road repairs and construction, Public Works Department recommends approval of this
request to commence the application process.
Approve Schedule
Recommendation Work Session Other
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Attachments
cc: Mona Weidenkeller, Public Works
m:\:DavcB\SheepDraw\SheepDrawPerndttingPassAround.doc
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rya, Applegate
Group, inc.
March 15, 2007
Mr. Pat Persichino
Weld County Public Works Department
1111 H Street
Greeley, Colorado 80632-0758
RE: Scope of Services for Mine Permitting Support: Sheep Draw Property
Dear Pat:
Thank you for requesting our scope to provide planning and permitting services in support of the
Sheep Draw mining operation and reservoir development. This scope has been revised to reflect
comments received from David Bauer on March 1, 2007. The services described below are for
the Sheep Draw Property located west of the Town of Greeley in Weld County, Colorado
(mainly in the east half of Section 33, Township 6 North, Range 66 West). After our initial
meeting, we did a site visit and drove the perimeter of the property. From information gathered
during our initial meetings, site visit, and coordination with environmental specialist Darcy
Tiglas, we have prepared a scope of services and fee schedule to thoroughly cover planning and
material preparation for the Colorado Mined Land Reclamation Board Regular 112 Operation
(Reclamation) and Weld County Use by Special Review (USR)permits.
This proposal is a revision of the scope that was submitted to you several years ago. As you
requested we have revised it to include the planning for the property and have also focused more
on getting the permits in place. Our original scope of work included engineering design of the
slurry wall and bidding services to get a contractor selected to do construction work. It is our
understanding that these services are not required at this time. You also indicated that there is
enough information on the site regarding reserves that you do not need any detailed drilling for
the permitting process.
It is estimated that the application preparation, submittal, agency review, and approval could take
at least nine (9) months. This time estimate requires that the majority of the USR permit
application preparation and processing work be performed concurrent with the processing of the
Reclamation permit application materials. In addition, the USR and Reclamation applications
will need to be prepared and processed concurrently with a Corps of Engineers Clean Water Act
Section 404 permit application. Performing this work concurrently shortens the permitting
timeline,but adds to project risks and costs.
a
Scope of Services for Permitting Support
Sheep Draw Property
Page 2 of 9
The tasks outlined below include the evaluation of site conditions, and meetings with State and
Weld County Planning staff to coordinate the permitting process. Several other tasks will need
to be performed to support the Reclamation and USR permit applications, but they are not
included in this scope. The tasks include the following analyses/investigations:
✓ Wetland delineation/mitigation
✓ Clean Water Act Section 404 permit
✓ U.S. Fish and Wildlife consultation
✓ Groundwater modeling
✓ Detailed site survey
✓ Site historical/cultural survey
✓ Site wildlife assessment
Although the tasks listed above are not a part of the included scope of services, coordination of
the tasks with the Reclamation and USR permitting process is essential. Therefore, coordination
of the listed tasks is included in the permitting support services described below.
We have not included groundwater modeling as a part of this scope. The approach we are
suggesting would focus more on a mitigation plan that would protect surrounding property. The
impacts of most gravel pit reservoirs with mounding and shadowing are fairly well defined.
Rather than spending a large amount of time and money on computer models that will essentially
confirm what we already know, we think those funds are better spent on monitoring and
infrastructure (if it is needed). There are some expensive homes in the vicinity. We will be
prepared to present a comprehensive mitigation plan that will demonstrate the County's
commitment to protecting their neighbors. Part of the mitigation plan will include installation of
piezometers. The sooner these are constructed, the more baseline information can be gathered as
a part of the monitoring plan. Although geotechnical and design work will be completed at later
phases of the project, there may be opportunity in the budget to allow for initial gathering of
groundwater data. This could also be useful in the public hearing process.
This proposal does not include any detailed engineering analysis or geotechnical field work for
slurry wall design or embankment backfill. Based on our conversations, this portion of the work
would be done at a later date once permits have been secured. The plans for mining and
reclamation will be prepared using geometry of the results that are expected to come from
detailed analysis. If the results vary, it will probably not be substantial in nature and should not
require modification to the permitted plans.
The following is a brief explanation of the tasks to be performed and the associated fees for the
initial Reclamation Permit submittal to the Colorado Division of Minerals and Geology
(DMG), and the initial USR Permit submittal to Weld County Planning. The tasks correspond
to the attached itemized list.
Scope of Services for Permitting Support
Sheep Draw Property
Page of
Task 1: Permitting Support
From initial project meetings and discussions with Greg Nelson and Darcy Tiglas, preparation
and submittal of the Sheep Draw Reclamation and USR permit materials will require some
associated supporting services. The support services are necessary for operation of the mining
activities, development of the final reservoir, and in some cases, for initial permit submittal or
final permit approval. The services, listed below as subtasks, will need to be performed prior to,
or concurrently with,the actual Reclamation and USR permit preparation and submittal.
Subtask la: Project Management and Coordination. Keeping the entire project team
informed of each others activities and findings is a key to project success. We will conduct
and/or attend several meetings with Weld County Public Works Department (Department) and
other contractors throughout the course of the project to define the goals for the project, define
the critical items that need to be addressed and accomplished, discuss mining and reclamation
strategies, and coordinate efforts on the technical issues and plans/reports (as identified in the
attached task sheet).
Additional studies/investigations to be performed by others include a traffic study/impact
analysis, historical/cultural survey, and wildlife assessment. In addition to the Section 404
permitting, we will coordinate these other studies/investigations with the Reclamation and USR
permitting activities and review the study/investigation results for inclusion in the permit
applications. It is assumed that the studies/investigations performed by others will be contracted
directly with the Department.
Our fee for Subtask la is: Included in all tasks associated with this project
Subtask lb: Army Corps of Engineers Section 404 Permitting. It is our
understanding that wetland areas and endangered species have already been identified on the site
and additional services for delineations and surveys will be performed by Tiglas Environmental
Services (Tiglas). This information will be used to prepare and submit a Section 404 permit
application to the Army Corps of Engineers, services also to be performed by Tiglas. We will
coordinate permitting activities with Tiglas and provide support for wetland impact/mitigation
evaluations necessary for the Section 404 permit application. In anticipation of possible
negotiations with the Army Corps of Engineers, these services include an on-site meeting with
Tiglas and Army Corps of Engineers staff, preparing wetland impact/mitigation maps for two
separate mitigation options, and coordinating wetland impacts/mitigation with proposed mining
and reclamation activities. Although this scope does not include performing U.S. Fish and
Wildlife consultation services, it is assumed that these services will be performed by Tiglas. We
will coordinate these activities with Tiglas and the Reclamation and USR permitting
applications.
Our fee for Subtask lb is: $4,100
Subtask le: Conflicting Surface Uses (Oil and Gas Exploration). Third party oil and
gas companies own the exploration rights for this site. We will provide support for negotiations
Scope of Services for Permitting Support
Sheep Draw Property
Page 4 of 9
and contract preparation with the oil and gas companies to determine their requirements for
drilling pad locations and incorporate their needs into the mining and reclamation plans. Support
services include contacting oil and gas representatives and coordinating meetings between them
and the County. Applegate Group is also prepared to work as a team with the County in regards
to the negotiations and contract preparation. We would function as the technical support for the
negotiations however there are often decisions that need to be made that require the presence of
the County as well. Anticipated negotiations and contracts include removal if necessary and re-
drilling locations and requirements for drilling pad locations. Results of discussions with
mineral rights owners and lease holders will be incorporated into the mining and reclamation
plans. Maps and mining and reclamation information will be provided to the oil and gas
companies as required. We will provide example contracts for the County to use during
negotiations with the oil and gas companies and provide technical review and recommendations
on contract contents. This scope does not include legal advice or authority for these contract
negotiations.
As required by State law, a mineral rights ownership search will be performed for the property.
The search will include available public records and will be conducted by a qualified land
manager or attorney. Mineral rights owners for the affected property will be notified prior to the
first public hearing for the proposed operation.
The property is divided by a gas line easement. The mining and reclamation plan will be
designed to coexist with this easement and the oil companies' potential future plans.
Our fee for Subtask lc is: $13,800
Subtask Id: Conceptual Mine and Reclamation Plan Development. While
fonnulating mining and reclamation strategies, we will develop preliminary pit and below grade
reservoir layout plans. These plans will show traffic patterns, mining depths and limits, general
mining phasing, and general reclamation phasing. The preliminary plans will be used to include
and evaluate issues from wetland impacts/mitigation, oil and gas surface use conflicts, and
associated analyses and investigations prior to final mining and reclamation plan development.
A GIS based mapping approach will be used in preparing these concept plans. This will allow us
to use data that has already been developed by Weld County. In addition, this information will
be used to prepare exhibits that are used in permit applications, public hearings, neighborhood
meetings, etc.
Our fee for Subtask Id is: $11,700
Scope of Services for Permitting Support
Sheep Draw Property
Page 5 of 9
Task 2: Floodplain Analysis and Flood Hazard Development Permit
The Sheep Draw site is in the Cache la Poudre floodplain and Weld County requires that a Flood
Hazard Development Permit be obtained prior to any work being done in the floodplain. The
Weld County Floodplain Administrator indicated the current policy is that a submittal to the
Federal Emergency Management Agency (FEMA) is required when construction occurs in the
floodplain. The submittal to FEMA will be sufficient for the Flood Hazard Development Permit.
We understand that a floodplain study and Hec-Ras model for the site has been recently adopted
by the Corps of Engineers and is readily available. Therefore this scope does not include the
creation of an existing model or the hydrologic analysis that is associated with the creation of an
existing model. However some analysis will be required to determine how the site impacts the
existing model. This scope of services includes floodplain analyses and submittal of a
Conditional Letter of Map Revision and the Weld County Flood Hazard Development Permit
application.
Once the model is received, analysis will be performed to evaluate the impact of the reservoir on
the floodplain. These results will be used to prepare the necessary mapping, documentation and
application forms to submit a CLOMR for the proposed reservoir. The documentation will
include a report and maps delineating flood inundation limits. The submittal to FEMA will meet
the requirements for the Weld County Flood Hazard Development Permit. The FEMA subtitle
fee is not included as part of the fee for this task.
Our scope also includes evaluating preliminary spillway location and capacity for the proposed
reservoir using HEC-RAS modeling and existing flood hydrology. The 20, 50, and 100-year
return periods will be examined to evaluate preliminary spillway location and width and the
effects of these floods on the area downstream. This preliminary information is important in
sizing and locating a spillway to regulate flood inflows into the reservoir and minimize damage
in the event of a flood occurrence.
In addition to analyses for the Flood Hazard Development Permit application, the floodplain
modeling task is primarily associated with trying to limit the Department's liability in developing
a reservoir from a gravel pit in the Cache la Poudre floodplain. In our experience, we have seen
gravel operations that did not consider these aspects and have resulted in serious regulatory and
civil liability actions. The modeling and hydraulic evaluation of the interaction between the
water storage reservoir and the Cache la Poudre River will also be crucial to the eventual design
of a reservoir spillway.
Our fee for Task 2 is: $25,300
Task 3: Regular (112) Operation Reclamation Permit Application
The permit application and exhibits will be prepared and submitted to the DMG. It is our
understanding that some deposit exploration and surveying has been performed. We also assume
that boundary and topographic AutoCAD mapping data necessary for the project are available
Scope of Services for Permuting Support
Sheep Draw Properly
Page 6 of 9
from the Department or other contractors in digital format. In addition to the boundary and
topographical information available, we assume that a complete legal description of the property
will also be available.
Preparation of exhibit materials will include the mining plan (Exhibit D), mining plan map
(Exhibit C), reclamation narrative (Exhibit E) and reclamation plan map (Exhibit F). All
conceptual and technical details of the mining and reclamation plans will be developed with
direct input from the Department.
Materials will be gathered from the State Engineer's Office (SEO) for the preparation of
Exhibit G, Water Information, for both surface and groundwater. The purpose of this exhibit
will be to demonstrate that the proposed operation minimizes the impact to the "hydrologic
balance". At this time, groundwater hydrologic modeling is not included in the proposed fees.
Proposed fees include preparing a well permit for the SEO.
It is assumed that, upon request, specific cost information necessary for the preparation of the
Reclamation Cost Estimate (Exhibit L) will be provided by the Department. Necessary deeds
and lease agreements for the preparation of Exhibit N, Right to Enter, will also need to be
provided by the Department.
Because of the proximity of the proposed pit to existing infrastructure (i.e. ditch, gas pipeline),
several areas may need to be analyzed for slope stability safety. It is critical that any failure of a
mining slope not impact this infrastructure. We will analyze up to four areas near critical
infrastructure and recommend mining setbacks in those areas.
A pre-application meeting with DMG will be attended and, following submittal of the
application material, a site tour with DMG staff will be conducted. Submittal includes
preparation of the application material draft and minor revisions based on comments received by
the Department. Upon completion of final revisions, two (2) copies will be prepared for
submittal to the State. Copies will also be delivered to the County Clerk and public notices will
be mailed as per DMG regulations.
Our fee for Task 3 is: $25,100
Task 4: Weld County Use By Special Review Permit Application
The approach taken for the USR review will be to fully address issues we know are potentially
sensitive without waiting for them to be brought up as an objection to the application. Materials
for the USR permit application will be prepared and submitted to Weld County Planning. The
proposed fee assumes that existing information is available for the application, and the
Reclamation permit application materials were prepared for DMG, as outlined in Task 3.
Preparation of the USR application materials will include a project narrative and the Cover
Sheet, Extraction Plan Map, and Landscape Planning Map. It is assumed that the mining
Scope of Services for Permitting Support
Sheep Draw Property
Page 7 of 9
operation details necessary for completion of the USR application materials will be developed
with direct input from the Department. A traffic study will be prepared to outline proposed
ingress/egress at the site and road improvements if any are required. The commitment to keep
traffic moving northward should reduce concerns since 0 Street in particular has heavy truck
traffic from many area industries traveling on it.
We will also prepare technical documents regarding noise and air quality issues. This will be a
proactive approach intended to demonstrate that the County is holding themselves to a high
standard for compliance. The noise consultant, Hankard Environmental, has worked in Weld
County and will prepare a basic noise model using existing property conditions and will also
collect field data of comparable operations in the area to predict noise levels outside the property
boundary. The report will include discussions of noise abatement practices including berms,
location of equipment below grade and setbacks.
Air quality will be handled primarily on fugitive dust issues while the pit is in operation. We
will use SECOR international Inc., a company that specializes in air quality studies to make
recommendations for the mining and reclamation plans. This will also relate to following best
management practices in terms of siting berms, revegetation and watering during haul
operations. Since there are no asphalt or concrete plants proposed, the air emissions issues
become much less of a concern and more easily addressed.
The scope for preparing the application materials includes a pre-application meeting with the
planning staff and submittal of the application materials tailored to address their questions and
comments. The proposed fee also includes preparation of the application material draft and
revisions based on comments received by the Department. Upon completion of final revisions,
twenty-five(25) copies will be prepared for submittal to Weld County Planning.
Our fee for Task 4 is: $56,700
Task 5: Public Hearings
Following submittal of the Reclamation and USR application materials, we will provide
continued support for the MLRB and Weld County public hearing process. We will coordinate
with DMG and Weld County Planning staff regarding potential objector concerns and respond to
adequacy review comments. The cost estimate provided includes time for meeting with and
responding to staff and other interested parties. These estimates assume minimal public
opposition and agency conflict regarding mining and reclamation issues. If public opposition is
encountered that extends beyond the scope of services described herein (i.e. additional hearings),
we will work on a time and materials basis.
This property is in close proximity to Greeley and will probably be reviewed by the City Council
on an advisory level. We have worked on projects in Weld County that needed to go through
this process. Depending on the current agreements in place, outside approval is sometimes not
necessary but is nice to have to maintain good working relationships.
Scope of Services for Permitting Support
Sheep Draw Property
Page of 9
The Greeley No. 3 Ditch skirts the property on the south side and will probably be the structure
used in the future to fill the completed reservoir. At present, we do not propose to get in to
details such as negotiating carriage agreements. The only permission that is important at present
is the mining setbacks from the ditch. We will need to demonstrate that all mining activities can
be done safely to protect the physical integrity of the ditch. A slope stability analysis is required
if the ditch company is unwilling to allow mining within a setback closer than 200 feet. Our past
experience has shown that mining setbacks can be greatly reduced and still protect the ditch.
There may be other water rights issues such as capturing ditch seepage that would be addressed
as well. We plan on having at least one meeting with their Board to present the project, receive
comments and input, and attempt to receive approval of the mining plan.
Typically, the major issues associated with land use hearings for mining permits include truck
traffic, noise and dust. Side issues about groundwater, water rights, and impacts to adjacent
structures sometimes become issues but are more straightforward to manage.
Noise will be addressed prior to the hearing and we will have the noise consultant available to
testify at the hearing if needed. Best management practices such as berms and siting plant
facilities below grade can reduce many of the concerns regarding noise and to insure the legal
levels for industrial noise at the property line are met.
The cost estimate provided includes preparation for, and attendance at, the pre-hearing
conference with DMG staff and the public hearing with the MLRB. The fee also includes a
neighborhood meeting, which is recommended and may be required by the Weld County
Planning staff The scope and fee includes preparation for, and attending, both the Planning
Commission Hearing and the Board of County Commissioners Hearing. Additional meetings
will be attended on a Time and Materials basis.
Several meetings with the Weld County Planning staff may be necessary for final coordination
prior to recording the plats. These coordination efforts are included in this scope and fee.
Our fee for Task 5 is: $30,000
Task 6: Geotechnical Exploration and Monitoring Wells
We will use Kumar and Associates to drill a few exploration holes on the property and install
groundwater piezometers to begin gathering baseline groundwater table data. Although the
permit will be approached to do no groundwater modeling and rely on a mitigation plan, it is
proactive to have piezometers in place prior to the time a public hearing is held. It demonstrates
that the County is listening and involved with the surrounding neighborhood. The drill holes will
be located to maximize the value of the subsurface drill logs for future engineering purposes as
well as the piezometers. We would need to arrange how data collection is done. Possibly the
County has staff that can take regular readings, probably starting every two weeks and reducing
Scope of Services for Permitting Support
Sheep Draw Property
Page 9 of 9
that to monthly depending on the variability of groundwater table movement. Data collection is
not in this scope of work.
Our fee for Task 6 is: $17,500
Task 7: Water Rights Substitute Supply Plan and Expert Testimony
The proposed gravel pit mining project will require preparation of a substitute water supply plan
for approval through the State Engineer prior to the time it is officially approved as a lined
reservoir. It is our understanding that this work will be accomplished by Weld County or its
consultants. We will coordinate with Weld County to provide information for this process.
Our fee for Task 7 is: $1,500
Fee Schedule
Our proposed costs are based on a fixed fee or lump sum basis. This includes project expenses
incurred during the tasks listed above and monthly updates on budget and work complete. This
does not include application fees for review to DMG, FEMA and Weld County. Theses fees are
estimated at$13,500 in addition to our services.
TOTAL PROJECT FEE TASKS 1 THROUGH 71S: $185,700
Pat, thank you for your confidence in Applegate Group, Inc. We appreciate the opportunity to
continue working for Weld County and look forward to getting this project off the ground. If
you have any questions or need additional information,please call me at(303)452-6611.
Sincerely,
Applegate Group,Inc. (j )
11�i Vi 2 4P&4-
Mike Applegate, PE, CCE
President/CEO
Attachments
cc: AG File#P06-123
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