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HomeMy WebLinkAbout94-174 Resolution No. 94-174 RESOLUTION CONSENTING TO ROAD MATERIALS CORPORATION ASSIGNMENT OF MINING AGREEMENTS TO PRAIRIE MATERIAL SALES, INC. WHEREAS, the City of Elgin and Road Materials Corporation have entered into a mining contract on October 28, 1985, relating to gravel extraction on the city owned sports complex property; and WHEREAS, the City of Elgin and Road Materials Corporation entered into an Addendum to the Gravel Extraction and Rehabilitation Contract on April 27 , 1994 , relating to limestone extraction on the same city property; and WHEREAS, Road Materials Corporation desires to sell its mining and aggregate business to Prairie Material Sales, Inc. , an Illinois corporation, and assign all of its interest and obligations in the mining contracts to Prairie Material Sales, Inc. ; and WHEREAS, the city has the right to consent or approve of said assignment, which consent shall not be unreasonably withheld; and WHEREAS, the city has determined that it is in the best interests of the City of Elgin to agree to said assignment. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that the City of Elgin hereby approves and consents to the proposed Assignment and Assumption Agreement by Road Materials Corporation, a Delaware corporation, to Prairie Material Sales, Inc . , an Illinois corporation, dated July 15, 1994 , a copy of said agreement being attached hereto. s/ George VanDeVoorde George VanDeVoorde, Mayor Presented: July 13, 1994 Adopted: July 13, 1994 Vote: Yeas 5 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk 1 /L I ASSIGNMENT AND ASSUMPTION OF MINING AGREEMENTS This Assignment and Assumption Agreement made and entered into this 15th day of July, 1994, by and between Road Materials Corporation, a Delaware corporation, with offices in Algonquin, Illinois (hereinafter referred to as the "Assignor" ) and Prairie Material Sales, Inc. , an Illinois corporation, authorized to do business in the State of Illinois (hereinafter referred to as the "Assignee" ) , WITNESSETH WHEREAS, the City of Elgin and Road Materials Corporation have entered into a mining contract on October 28, 1985, relating to gravel extraction on the City-owned Sports Complex property; and WHEREAS, the City of Elgin and Road Materials Corporation entered into an Addendum to said Gravel Extraction and Rehabilitation on April 13, 1994, relating to limestone extraction on the same City-owned property (the original gravel extraction contract of October 28, 1985, and the Addendum thereto relating to limestone extraction dated April 13, 1994, both hereinafter referred to as the mining agreements" ) ; and WHEREAS, Assignor and Assignee have entered into an agreement whereby Assignee is acquiring the mining and aggregate business of Assignor; and WHEREAS, Assignor and Assignee desire to execute and deliver this Assignment and Assumption of the Mining Agreements to effect j r � the assignment of Assignor's interest in the mining agreements to the Assignee; and WHEREAS, the City of Elgin has approved the assignment of the Assignor' s interest in the mining agreements to the Assignee by virtue of a resolution passed by the City Council of the City of Elgin on July 13, 1994 . NOW, THEREFORE, the parties hereby agree as follows: 1 . Assignor hereby assigns to Assignee all of its right, title and interest in and to the mining agreements with the City of Elgin. 2 . Assignee hereby assumes all of Assignor's obligations under the subject mining agreements. Assignee agrees that it is liable for all obligations to the City of Elgin arising under the mining agreements. 3. This Assignment and Assumption Agreement shall be deemed effective as of July 15, 1994 . IN WITNESS WHEREOF, the parties hereto have executed this Assignment and Assumption Agreement as of the date first written above. ASSIGNOR: ASSIGNEE: ROAD MATERIALS CORPORATION, PRAIRIE MATERIAL SALES, INC. , a Delare co poration an Illinois corporation By: � • fe By: ! retiifa' i I 2 STATE OF ILLINOIS ) ) SS. COUNTY OF Cook 1, Alan Rauh Orschel , a Notary Public in and for said county and state, do hereby certify that William A. Melahn, personally known to me to be the President of Road Materials Corp. and personally known to me to be the same person whose name is subscribed to the foregoing instrument, appeared before me this day in person and acknowledged that as such President he signed and delivered the said instrument as his free and voluntary act and as the free and voluntary act of the corporation, for the uses and purposes therein set forth. Given under my hand and official seal, this ! ' d y of July, 1994 . Notary Pu. is My commission expires: September 15, 1995 "OFFICIAL SEAL" ALAN RAUH ORSCHEL Notary Public, State of Illinois My ComMIssian Expires Sept. 15. 1995 aes• STATE OF ILLINOIS ) SS. COUNTY OF Cook 1, Alan Rauh Orschel , a Notary Public in and for said county and state, do hereby certify that Jack Oremus personally known to me to be the President of Prairie Material Sales, Inc. and personally known to me to be the same person whose name is subscribed to the foregoing instrument, appeared before me this day in person and acknowledged that as such President she signed and delivered the said instrument as her free and voluntary act and as the free and voluntary act of the corporation, for the uses and purposes therein set forth. Given under my hand and official seal, this 18th day of July, 1994 . C>,1/' Notary Public My commission expires: September 15, 1995 "OFFICIAL SEAL" ALAN RAUH ORSCHEL uF:\CLIENTS\R\ASSIANDA.DOC Notary Public, State of Illinois My CpmmISS Otl Expires Sept. 15. 1995 3 JAN-07-1997 10: P. 2 44 ‘........:A7 CO7:R77D, .;tz,?- ! •4.4„e.-:--(k7..;::,.-..sa•L:•,•-.i•w,,:!'',..A•,,.c"...i'..,,,i•:.: ..••:••.,-,.•"..;..,..•:;.".is' o7.."i" Ut :,:•:..:'Z,..,•.::..:7%.,:.•:•:.,:;,: iZ- ' DATi •,'•£.•;:k711 0/2 5/199i 141101:4=01' . THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE Laub Group, Inc. HOLDER. MIS CEITTIPICATE DOES NOT AHEM. EXTEND OR 1701 Galt Rd *600 Trw #3 ALTER THE COVERAGE AFFOROED Sy The mums 511.0W. Rolling Meadows, IL 60008 COMPANIES AFFORDING COVERAGE (847) 952-9200 courANT - —• A EXRITAGE MUTUAL INSURANCE CO. _ CCiMAANY •— - TICAMED PRAIRIE MATERIAL SALES, INC. 8 7601 WEST 79TE STREET compiwy - - C BRIDGEVI EW IL 60455 COMONAY ____ I, ,kIi:FE..": .,...,7nT ..[.,..:':'..'!: '':..:''':...'..: - 77:77..""....!, Ylit5 43 TO CERTIFY THAT THE POUCIES OP OtilRANCF. LISTED 88,.cra HAVE BEEN ISSUIR) 10 'Pit INSURED NAMED MOVE.FOR THE POLICY PEF1100 • INDICATED. NOTWITNSTANDO4 MY•REOU/REMENT. TWIN OR CONDITION OF ANY CONTRA=OR ONO DOCUMENT byrtot RESPECT TO WHICH TtoS COMMA-if MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO AU.THE TERMS. EXCUJSIONS MO CONOMONS OF SUCH POLICIES WATTS SHOWN MAY HAVE BEEN REDUCED SY PAID CLAIMS. _ ..... 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D.DOME-num LTAT s P0/11/41115411ECUTD1 ORICOS Am ExCl. SI.DISEASE•EA ENPLCNE$ s mei DDSCRITNAI OP ODEDAiloustacailDiarallacusuireeiss.miss ADDITIONAL INSURED WITH RESPECTS TO GENERAL LIABILITY: CITY OF ELGIN .Th/ DEA: -7:-::;.:A:47:r;i'l.ri z:-.:; ,:z7:;;.ns.r..r.A:ASITY,5114IP.r,?iP4 ,-,::.:7;90.01.C..P4014.9.1f. .,-,,tivi...tv:::.n.,;:;4•, ;,...,=.,..., ..:,:;,..A.,-;,-A.,:,,i;;;-,:i.:,;.:..,.,, .- • aresiso *MT do me MOTS rascality maim R carom= WOP1E THE CITY OF ELGINupp101014 DATE TNEND2r, 'wt BLIND COPPArrf tvisc ENDEATON TO MAil- , ATTN I MONICA BATES $0 sAys MITTEN imma TO Tim similIcAlt mum Nom so TUS LSIFI. 150 DEXTER COURT WT ARUM TO 10141 JCOI 1101l 1014411 INOSE NO CielspayoN ow Mows ELGIN IL 60120-5555 or ART OLD UPON TME COMPANY, ITS AGENTS OD onitassaTArTss JU7H PISISINERIITATIVI • • kit*/',1C4 tiliti ..:'.::,. .,t. iW'ie;:Si.3;s . .• '.,> ..«.^. • ,:•,„ , ,., ,,.„! :,::j.;,; ..„, ....::,, :, .^ .,: '..,'.'.,10ACiplikaiikpoittrioN igag :::. JAN-07-1997 10:08 MOM= , . `T OF- •N VALLACCWODOICOWIWICININFILLNINg 440k p1LY AND CONFERS NO BHT$ UPON THE C$RTIFlCATE 1747 PARK STREET-stint No NotnEn. nos CERTIFICATE 00Es NOT AMEN% WEND OR AL s COVERAG • ' • THE _ ,•: - NAPERVILLE,IL OM ,COMPANIES AFFORDING COVERAGE V"A""." NATIONAL UNION FIRE INSUR.CO.OF it[TTSBURGH.PA. . llama PRAIRIE MATERIAL SALES.INC. cavort AND ANY SU$SIDARY OR AFFILIATED COMPANY _ 7101 WEST 79TH STREET COIroANn 9RIDGEMEW.ILL040IS00455 C • OOMIANT -- 0 TIlG IO TO C.19T11a TRATIOEPOUCIERaTIRS0SPAVE LISTED MOW NAVE SEEN NISUED TO INSURED NAMED MIOVE PON 711E POLICY PER= ROCAT o. Aret NIOUNRE ENT,TEAM CR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT NINTH RiVtfCT 10 MNIK:M TINS COM IC11TE MMT se=NED OR MAT puemar.THE INSURANCE AFPORDE4 a Y TINE POLICIES OFSCRIaED MEREMI m EJECT TO ALL THE TERMS. EXCLUSIONS AMID CONDRIONS OFStICKKPOLICIE3,LINTS 0IN011N MKT FavE meg RCM=EY PAC CANS e 'FIFE OF lINIR NCE MST NLNmiI MAY IFFEaTNE POW(=MAW* LNNT! 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THE Niw<N11i ooN1ANY MRL INDIATOR TO MML WY OF ELGIN &Yi wanes NO=TD TIE T!I0.0OA NUM TO TME&BM ATI'N; MONICA BATES LsXT MUMS TO RAIL OCR NOTICR osem.mole Ilp owlet*cialmirn.nt 150 DEXTER CT. OF ANY MD MN TIE OOIANT. la AME1T! CR IQielle<TATM)M L am,H. 001206655 Ammo= r rir'i TM; _ • TOTAL P.03 • • TOTAL P.03 AGREEMENT Gravel Extraction/Rehabilitation WHEREAS, the City of Elgin (hereafter Owner) is an Illinois municipal corporation and a home rule unit pursuant to the Constitution and laws of the State of Illinois; and WHEREAS, Giertz-Melahn Asphalt Company of South Elgin, Illinois (hereafter Giertz-Melahn) is a corporation organized and registered under the laws of the State of Delaware; and WHEREAS, Road Materials Corporation of Algonquin, Illinois (hereafter Operator) is a corporation organized and registered under the laws of the State of Delaware; and WHEREAS, Owner and Giertz-Melahn have previously entered into an agreement wherein Giertz-Melahn agreed to construct certain public improvements (road and parking lot); and WHEREAS, in consideration for such public improvements Elgin agreed to enter into an agreement wherein Giertz-Melahn or its designee would be permitted to extract gravel materials from certain real property owned by the Owner or to pay Giertz-Melahn the sum of $250,495.00; and WHEREAS, Owner and Giertz-Melahn and Operator have reached agreement wherein Operator would conduct extraction and reclamation activities on Owner's property pursuant and subject to the terms and conditions contained herein. NOW, THEREFORE, in consideration of the mutual promises covenants and conditions contained herein the parties agree as follows: TABLE OF CONTENTS Page Section 1--Description of Project 3 A. Geologic Information 3 B. Site Characteristics 3 C. Examination of Site and Contract Documents 3 Section II--General Conditions 4 A. Contract Documents 4 B. Description of Operation 5 C. Elevations and Locations 8 D. Term 8 E. Records 9 F. Utilities and Services 1 G. Vacating the Operating Area 1 H. Insurance Bonds—Hold Harmless 1 I. Minimum Payment--Credit 2 J. Royalty 3 K. Failure to Perform--Default 4 L. Miscellaneous 4 Section III--Operating Controls 5 A. Activities Allowed on Site 5 B. Site Security 6 C. Extraction--Soil Handling, Procedure and Sequence 6 D. Access 6 E. Maximum Operating Area 7 F. Hours of Operation 7 G. Dust and Noise Control 7 H. Water Management 8 I. Conformance with Existing Legislation 20 J. Temporary Screening Berms 20 K. Relocating Existing Utilities 21 L. Rehabilitation Integrated with Extraction 21 M. Miscellaneous 21 Section IV--Rehabilitation 22 A. Definition 22 B. Topsoil Handling 22 C. Final Landform 23 D. Imported Fill Material 23 E. Final Soil Densities 24 F. Fine Grading 24 G. Below Water Topsoil 25 H. Planting 25 I. Water Bodies 26 J. Acceptance of Rehabilitated Areas by the City 26 2 Section I--Description of Project A. GEOLOGIC INFORMATION: This project is based on information provided in a report titled "Evaluation of the Sand and Gravel Resource, Elgin State Hospital Property, Elgin, Illinois", by Dunn Geoscience Corporation of Latham, New York, and dated July 20, 1979. The limits of the various gravel deposits, as shown in plan and section, are taken from that report. Operator has reviewed this document and the information contained therein. B. SITE CHARACTERISTICS: The site is approximately 407 acres in extent, was formerly part of the Elgin Mental Health Center facility, is currently in agricultural use and is located on the south edge of the City of Elgin bounded on the north by Highway 20, on the east by the Elgin Mental Health Center and on the west by McLean Boulevard. The work of this project consists of planned extraction and sale of sand and gravel, from a number of separate deposits within the site, and rehabilitation of the extracted site to be a preplanned form for park and open space purposes. C. EXAMINATION OF SITE AND CONTRACT DOCUMENTS: Operator has visited the site of the proposed work, fully acquainted and famil- iarized himself with the conditions as they exist and the character of the operations to be carried on under the proposed contract, and has made such investigation as he deemed necessary to fully understand the facilities, physical conditions and restrictions attending the work under the contract. Operator has also thoroughly examined and become familiar with the drawings, specifications, associated bid documents and the addenda, if any, and the site, and has, from his own investigation, satisfied himself as to the nature and location of the work, the general and local conditions, and all matters which may in any way affect the work or its performance, and that as a result of such examination and investigation he fully understands the intent and purpose of the documents and conditions of bidding. 3 Section Il—General Conditions A. CONTRACT DOCUMENTS: I. The contract documents shall consist of the General Contract for Gravel Operation and Project Reclamation between the City of Elgin and and all sections, and all exhibits thereto. 2. The following are expressly made a part of the contract documents as exhibits as if the same were set out in full herein. o. Exhibit A - Plans and specifications prepared by William E. Coates and Associates Ltd. consisting of 12 pages which include a title page and the following sheets: Sheet I Site Conditions Sheet 2 Extraction Strategy Sheet 3 Extraction Form Sheet 4 Final Landform Sheet 5 Surface Treatment Sheet 6 Section I Sheet 7 Section 2 Sheet 8 Section 3 Sheet 9 Haul Road Entrance and Park Road Screening Sheet 10 Park Entrance Design Sheet 11 Master Plan Note: Sheets 9, 10 and I I show work not in the contract and are included for information purposes only. The material contained on Sheets I - 8 apply only to the extent that they contain information and material relevant to operators work in the operating area shown on Exhibit B. b. Exhibit B - Site map showing the location of the operating area. 4 c. Exhibit C - Insurance coverage and limits to be secured by operator naming owner as co-insured. 3. The contract documents shall constitute the contract. Operator shall cause his activity to be in compliance with the contract, including all exhibits thereof and any instructions or conditions contained on said exhibits. Note: Where reference is made in these contract documents to Sheet I, Sheet 2, etc., references is to sheets contained in Exhibit A. B. DESCRIPTION OF OPERATION: I. The character of the site and the nature of the operation intended are shown on the following drawings previously described as constituting Exhibit A. The drawings, together with these specifications, describe the scope, type and progression of activities to be undertaken. Sheet 1 Site Conditions Sheet 2 Extraction Strategy Sheet 3 Extraction Form Sheet 4 Final Landform Sheet 5 Surface Treatment Sheet 6 Section I Sheet 7 Section 2 Sheet 8 Section 3 Sheet 9 Haul Road Entrance and Park Road Screening Sheet 10 Park Entrance Design Sheet 11 Master Plan Note: Sheets 9, 10 and I I show work not in the contract and are included for information purposes only. 2. Only a portion of the site is to be available to the operator for extraction and subsidiary activities. This area, previously defined and hereafter referred to as the 5 operating area, consist of that portion of the site shown on Exhibit B. Operators activities on site, including but not limited to, extraction, processing and storage shall be confined to the operating area. The operating area is generally located in the southeast part of the site and is bordered on the east and south by the site boundaries; on the north by the east/west road (hereafter referred to as cemetery road) leading from the Elgin Mental Health Center through mining area "F" as shown on Sheet I of Exhibit A; and on the west by the lime sludge lagoons of the owner. The operating area includes mining areas "D" and "E" and that portion of the mining area "F" located south of the aforedescribed cemetery road, as contained within the limit lines shown on Sheet I of Exhibit A. Operator shall have the exclusive right to conduct gravel extraction in the operating areas. Provided, however, in the event owner grants to any other party the right to extract gravel from that portion of the site not included within the operating area, operator shall have the right to terminate this agreement provided further that 0.1 V at this time k•_ upon such termination operator shall pay owner all monies due owner/under this agreement and shall complete or cause the completion of all rehabilitation of any areas upon which any operations have taken place per operator's annual operating plan. 3. It is expressly understood between the parties that Exhibit A was prepared in anticipation of conducting a mining/reclamation project throughout the entire site. Due to various considerations, owner has elected, at this time, to limit the mining/reclamation activities to the operating area shown on Exhibit B and described above. Any work including berming, fencing, excavation and sequencing shown on Exhibit A for portions of the site other than the operating area shall be considered for informational purposes only as a possible scheme for future operations. Operator's activities shall conform to the requirements of Exhibit A to the extent such exhibit applies to the activities within the operating area and shall include, but is not limited to, the notes contained in the right hand margin and the site management sequence 6 contained on Sheet 3. A provision of Exhibit A shall be deemed to apply to the operating area unless it describes or applies to work to be done exclusively outside of the operating area. Reference to various parts of Exhibit A contained within this agreement shall be deemed to refer to the Exhibit A only to the extent that it applies to the operating area. 4. The plans and specifications are a "best possible" documentation of complex sand and gravel deposits and a projection of landforms anticipated to be created through extraction of the aggregate deposits. Geological investigation was limited to a specific number of drill holes and cannot be considered to be exhaustive. The exact limits and depths of various formations will not be fully known until extraction takes place. It is anticipated that the actual excavations produced will vary somewhat from those shown on Sheet 3. 5. If major differences develop, during the course of the project, between the limits of the deposits as shown in plan and as revealed in excavation, the operator and the city will negotiate a revised operation and rehabilitation plan. The plans represent an intent and a strategy rather than a precise, dimensionally accurate, engineered earthwork. 6. The operator is to be fully responsible for all aspects of aggregate extraction, processing and sale, creation of the final landform, some portions of rehabilitation planting, construction and maintenance of haul roads, a specific area of site screening and a few other matters as detailed herein. 7. Portions of the site located directly to the west of the operating area is currently in use as lime sludge disposal lagoons. This use will continue throughout the life of the project and no aggregate operations are to take place within the lime sludge lagoon limits. 8. There is being developed a sports field and park access road in the north central part of the site. This area lies outside the operator's work area so no conflict 7 with aggregate operations is anticipated. Upon completion of the sports field facilities public use of that portion of the site will begin and continue on throughout the extraction period. The sports field access road, shown on Sheets 2 and 9 will not be available to the operator. 9. A cemetery exists within the site and is identified as such on Sheet I. This use will continue indefinitely. The operator shall be required to provide continual access to the cemetery. The operation shall permit the Illinois Department of Mental Health and Developmental Disabilities or any designated agent or employee of said Department access to the cemetery at all reasonable times. C. ELEVATIONS AND LOCATIONS: The city will provide a bench mark, based on geodetic datum, on the site as well as staked definition of the site boundaries. The operator shall be responsible for setting working elevations based on the project bench mark. Operator shall cause these elevations to be properly set by survey, documented and be available for city inspection as requested. It shall be the responsibility of the operator to maintain proper setbacks from property lines, proper elevations and gradients to achieve the final landform and to locate final landform features in the positions shown in the plan. D. TERM: This agreement shall be for a term of seventeen (17) consecutive contract years. The seventeen contract years shall be seventeen calendar years beginning January I , 1986 and ending December 31 , 2002. Contract years shall run January I to December 31. Contract Year Calendar Year 1 986 2 987 3 988 4 989 5 990 6 991 7 992 8 993 8 9 994 0 995 I 996 2 997 3 998 4 999 5 2000 6 2001 7 2002 E. RECORDS: I. The operator shall provide to the city documentation of quantities of material removed from the site in the form of scale tickets submitted monthly. Operator shall cause accurate measurements to be made of all materials excavated and sold from the operation and shall take such action as may be necessary to ensure that all materials sold are accounted for and that the scales and other measuring devices used are accurate, properly maintained and properly utilized. 2. The operator shall produce a yearly report for submission to the city in plan form, showing extent of extraction, location of working faces, location and extent of processing and stockpile areas and location and extent of rehabilitated areas. 3. The operator and the city will note changes or variations in the operation and rehabilitation sequence as well as areas of completed work transferred from the operator to the city. 4. An annual operating plan which shall show the operator's operational and reclamation plans for the next calendar year shall be submitted for review and approval by the owner no later than February I of each year of the agreement. The owner shall consider the operator's past performance and proposed plans and compare those with the requirements herein and shall not unreasonably deny the approval of the operating plan. All work shall be in compliance with such approved annually operating plan unless variation is approved by owner in writing. Operator's annual operating plan shall include, but is not limited to, the follow information: 9 a. Equipment to be used within the operating area for extraction, processing, crushing, hauling, conveying, stripping, reclaiming and other activities of contractor on site. Such description shall include the manufacturer and model. b. Method of erosion and dust control to be employed on exposed lake slope of area "F". c. Water source for proposed mining operations. d. Dust suppression system for crushing and screening operations. e. Dust suppression methods for roads and stockpiles. f. Noise suppression measures at face and for crushing and screening operations. g. Construction of settling ponds and discharge point, if any. h. Waste water processing and plan for water recirculation. i. Manner and type of processing operation to be conducted on site (i.e., permanent or temporary). j. Building and plant sites. The location of all structures and buildings shall be generally located and indicated on the site map furnished with the annual operating plan. k. Plan for conveying materials from operating face to processing site. • I. Location and size of gravel stockpiles. m. Temporary screening berms location and size (sill J) n. Location of supplemental excavation and waste material disposal area. 5. Operator's records regarding the accuracy of the scale used as well as the removal and sale of materials from the operating area shall be available to the designated representatives of owner quarterly or upon 48 hours notice. 10 F. UTILITIES AND SERVICES: The operator shall provide all his own services, water, electricity, telephone, sanitary and other waste disposal. He will be allowed to develop a well on site for supply of process and potable water. G. VACATING THE OPERATING AREA: The operator shall completely vacate the project operating area, removing all his equipment, material, supplies and structures within six months of the completion of extraction and rehabilitation operations or termination of a contractual agreement between the operator and the city, whichever comes first. H. INSURANCE BONDS--HOLD HARMLESS: I, Throughout the term of this agreement, operator shall maintain in full force and effect insurance with those coverages and in amounts not less than as specified in Exhibit C, and in companies licensed to conduct business in Illinois which possess an "A" policyholders rating or better and a minimum class "XII" financial size category, as listed in the most recent A.M. Best Insurance Reports. Each insurance policy must include the owner as an additional insured. and must be caderscd cis printeryfnon- contributory to any '- - =- - -• - - - _ - - - - - hto A certificate of insurance on an approved form musY be delivered to the owner prior to the commencement of any work. Such certificate must state that coverage will not be cancelled, non-renewed or reduced without thirty days advance written notice by registered mail to the owner. The insurance requirements, as specified in Exhibit C, are subject to annual review and adjustment by the owner. 2. Upon approval of operator's annual operating plan, as provided in Section II(EX4) above, operator shall post a completion bond in favor of the city equal to one hundred and ten percent of the estimate of costs necessary to complete all II reclamation work necessary to reclaim current and those proposed operating areas scheduled to be worked during the next calendar year per said operating plans. Said completion bond shall be guaranteed by a surety company authorized to do business in the State of Illinois. 3. Operator agrees to hold harmless and indemnify the owner from any claim, suit or liability as a result of the negligent acts or omission of operator, his agents or employees. Owner agrees to hold harmless and indemnify the operator from any claim, suit or liability as a result of the negligent acts or omissions of owners, its agents or employees. I. MINIMUM PAYMENT--CREDIT: I. Beginning in contract year three, operator shall pay to owner a minimum payment of $200,000 for each succeeding five year period of this agreement. Payment shall be due at the end of each five year period. Contract Year Total Amount Payment Due Years I and 2 No Minimum N/A Years 3, 4, 5, 6 & 7 $200,000 12/31 of Contract Year 7 Years 8,9,10,1 1 & 12 $200,000 12/31 of Contract Year 12 Years 13,14,15,17 & 17 $200,000 12/31 of Contract Year 17 2. The royalty payments paid pursuant to Section 11 J during any of the five year periods specified above shall be a credit against and shall offset the minimum payment due for that five year period. The minimum payment shall not be a credit, nor shall it offset, any royalty payment due for a sale occurring in any five year period other than the five year period to which the minimum payment is applied. In the event that the royalty payments due for sales occurring in any of the above described five year period do not equal or exceed the minimum payment for said period, no credit shall be given operator for the minimum payment in excess of royalty payments for said five year period, but rather operator shall forfeit all rights in said excess minimum payment. 12 3. It is understood that, based upon the best information currently available to the parties, the operating area contains adequate gravel deposits to permit operator to extract sufficient material to equal or exceed the minimum payment required herein. In the event it is determined by the parties that there is not such adequate gravel deposits, the parties agree to negotiate to permit operator to conduct activities in areas beyond that defined as the operating area in Section II(B)(2) herein. Nothing herein shall require the owner to agree to any such addition, expansion or extension of the operating area, provided, in the event that the parties are unable to agree to ari added, expanded or extended operating area operator shall have the right to terminate this agreementtLjJ all monies due at this time provided further that upon such termination operator shall pay owner/under this agreement and shall complete or cause the completion of all rehabilitation of any areas ( ' upon which any operations have taken place per operator's annual operating plan. J. ROYALTY: I. Operator shall pay to owner a royalty equal to ten percent (10%) of the selling price of all materials removed from the site. 2. Said royalty payment shall be due and payable monthly and shall be paid on or before the last day of the second month following the month in which the material is sold. (i.e., material sold on or after April 1st but before May 1st then payment of royalty on such sale is due June 30) 3. Late payments shall bear interest at a rate of 12% annually compounded monthly until said amount is paid in full. 4. A sale shall be deemed to occur when material is removed and transported from the operating area. The selling price shall substantially equal the current market price for similar material in the area. Provided, however, where material is sold to any person or business affiliated with or a subsidiary of the operator or who has an ownership interest in the operator, the selling price shall not be less than operator's average selling 13 price for like material sold to persons or businesses not described above over the prior six months. All sales shall be made in good faith so as not to reduce the royalty due to owner. 5. No royalty shall be assessed during the first two contract years, provided contractor shall be permitted to remove no more than 250,000 tons of gravel products from the operating area during this time period. Operator shall be liable for the normal royalty payments as provided herein for all gravel products in excess of 250,000 tons removed from the site. K. FAILURE TO PERFORM--DEFAULT: I. In the event either party hereto fails to perform any of the terms, covenants, agreements or conditions on his or its part to be performed under this agreement other than for the payment of money then a condition of default shall be deemed to exist. The non-defaulting party shall give the defaulting party written notice of the default, and termination of this agreement shall not result if, within thirty (30) days of receipt of such notice, the defaulting party has corrected the condition of default or has taken action reasonably likely to effect such correction within an additional thirty (30) days. If such corrections are not made the non-defaulting party may treat such default as a breach of this agreement. 2. In the event the non-defaulting party elects to treat a default or defaults of the other party as a breach of this agreement as aforesaid, then the non-defaulting party may, at his or its option, declare this agreement immediately terminated and shall, in any event, have such remedies as may be allowed by law or equity or both. 3. Waiver by either party of any default in performance of any of the terms, covenants or conditions contained herein, shall not be deemed a continuing waiver of the same or any subsequent default herein. 14 4. The rights and remedies set forth herein are deemed to be cumulative and the use of one remedy shall not be construed to exclude or be a waiver of any other available remedy whether set forth herein or allowed by law or equity. L. MISCELLANEOUS: I. The contract shall be governed by the laws of the State of Illinois. 2. Operator shall not assign the contract in whole or in part without the prior written consent of the owner. Any assign made without such prior notice shall be void and of no effect. 3. Operator shall not directly or indirectly create, incur, or suffer to exist any mortgage, security interest, pledge, charge, lien, encumbrance or claim on or with respect to owner's property without the prior expressed written approval of the owner. Owner may pay off lien and recover from operator. 4. The captions and headings of the various articles, sections or paragraphs of this agreement are for convenience only, and are not to be construed as confining or limiting in any way the scope or intent of the provisions hereof. Whenever the context requires or permits, the singular and the masculine, feminine and neuter shall be freely interchangeable. 5. Operator shall treat all sales of material removed from the operating area as occurring within the City of Elgin for sales tax purposes. Operator shall obtain a City of Elgin sales tax number and shall impose and collect the applicable city sales tax on all material removed from the operating area. 6. This agreement satisfies all obligations of Owner to Giertz-Melahn under a certain agreement entitled "Elgin Softball Complex, Spartan Drive Extension and Parking Lot Improvements" dated 1984. 15 Section 111--Operating Controls A. ACTIVITIES ALLOWED ON SITE: I. Activities which shall be allowed on site as a part of normal aggregate extraction and processing include: excavation, conveying, hauling, beneficiating, crushing, screening, washing, stockpiling and storage of processed material. 2. Sales of processed material shall be allowed. Preparation and storage of winter road sand-salt mixtures shall be allowed providing that soluble materials shall not be allowed to leach into surface streams or groundwater. Maintenance, operation and storage of equipment normally utilized in aggregate extraction, processing and sales shall be allowed on site. 3. Activities which shall not be allowed on site include mixing or manufacture of asphaltic and portland cement concretes, manufacture of concrete products and any blasting to fracture aggregate deposits. No blasting of any kind shall be permitted. B. SITE SECURITY: Operator shall cause security measures to be taken to ensure site security and to prevent unauthorized persons from entering the site. Such security measures shall include but are not limited to posting of signs and fencing as is necessary. Specifically, operator shall take any necessary measures to prevent persons using the adjoining recreational, hospital and residential areas from entering operator's excavation areas. C. EXTRACTION--SOIL HANDLING, PROCEDURE AND SEQUENCE: I. As previously explained in General Conditions, some variation in the location and extent of extraction areas is expected as a reflection of unforeseen geologic variations. However, the operator shall be required to adhere to the sequence and direction of extraction shown as well as location of haul routes and till and waste material disposal area to the extent they are applicable in the operating area. Both wet and dry extraction may take place. 16 2. The extraction--reclamation sequence shall be in substantial conformance with Sheet 3 of Exhibit A. D. ACCESS: Access to and egress from the operating area shall be through operators premises located to the south of the operating area and thence to Illinois State Route 31. There shall be no direct access from operating area to McLean Boulevard. Giertz-Melahn shall permit access via their property located immediately to the south and southeast of the site to and from the operating area to and from State Route 31 located to the east. Access shall not be hindered, obstructed, prevented or impaired during the life of this agreement without the prior written consent of Owner and Operator. The purpose of this provision is to ensure continuous and uninterrupted access from the operating area to State Route 31 so as to preclude the need to use McLean Boulevard. In the event access to State Route 31 across said property is denied or prevented this agreement shall terminate at the option of Owner. Giertz-Melahn warrants that it has sole and exclusive authority to permit access across said property. E. MAXIMUM OPERATING AREA: No operating area shall be larger than 30 acres excluding underwater extraction without the prior written consent of the City of Elgin. F. HOURS OF OPERATION: I. The hours of mining operation shall be between the hours of six a.m. and seven p.m. from Monday through Saturday. 2. The hours of loading and hauling shall be between the hours of six a.m. and seven p.m. from Monday through Friday and between the hours of seven a.m. and three p.m. on Saturday. 3. No operation shall be conducted on Sundays or national holidays. 17 G. DUST AND NOISE CONTROL: I. Internal haul roads and service roads shall be kept to a minimum and treated for dust control to meet legislative requirements for suspended particulate matter at project boundaries. The operator shall utilize conveyor haulage instead of truck haulage wherever possible. Temporary roads and hard-stand areas shall be treated with water or chemicals to control dust. 2. Spray bars and wet screens shall be used and overburden stockpiles shall be treated to minimize the effects of erosion by wind or water where necessary. 3. Haul roads shall be removed and road locations rehabilitated as soon as any given operating area has been fully extracted and the final landform produced. 4. Noise suppression equipment, including standard mufflers on trucks and on-site equipment, rubber lined chutes, hoppers and screenbodies shall be employed to suppress excessive noise where necessary. H. WATER MANAGEMENT: I. Existing Conditions. a. Surface water courses and a storm sewer outlet north of deposit "C" are shown on Sheet I. b. The groundwater system on the site is complex and divided into two different regimes, east and west. The two regimes are separate by a divide located somewhere between deposits "A" and "C". The divide is presumed to be a buried till ridge but it has not been specifically located. Said till ridge shall not be breached. The east regime covers the majority of the site, has a high water table level near the divide and a substantially lower water table level in the southeast corner of the site. Movement of groundwater in this regime is from the northwest to the southeast and is shown in section on Sheet 4. The west regime has a high water table, manifested in ponds immediately west of McLean Boulevard, and available data indicates that it is not connected in any way to the east regime. I8 2. Process Water. Process water may be obtained on site from pond or well. Process water shall be recycled on site to hold make-up quantities to a minimum. Silt or sediment ponds shall be cleaned out periodically and shall have clear effluent. No silty or contaminated process water shall be discharged to streams on site. 3. Surface Drainage. Surface runoff from extraction areas, processing and stockpile areas and haul roads shall be retained on site until silt is no longer in suspension. Interceptor ditches and settling ponds may be used to clear runoff for discharge off site. No water other than natural drainage shall be discharged unto surrounding property. 4. Groundwater. a. Except as expressly permitted herein, no pumping shall be allowed to lower the water table in extraction areas. b. Seepage is anticipated in the extraction of the south end of deposit "F", in segment 4. Pumping may be undertaken here to allow full depth extraction and to remove seepage coming in from higher elevations during extraction. The location and elevation of the incoming seepage shall be monitored. c. If extraction operations are shown to be having a deleterious impact on groundwater on adjoining properties, the operator shall be required to remedy the situation and may be required to install monitoring wells for long term assessment of the impact of extraction. d. Groundwater shall be protected against contamination from petroleum products. Equipment oil changes shall take place in a garage with waste oil collected for off-site disposal. 19 5. Till Seal. The till seal shown in the south end of the deposit "F" excavation may be required to retain incoming seepage groundwater for the creation of a lake. The till is anticipated to be available on site, particularly at the same location in which it is proposed to be used as a seal. Till shall be set aside during stripping operations specifically for later use as a seal if necessary. Except as provided in the preceding sentence, and as may be provided in any subsequent agreement between Owner and Operator, Operator shall have no obligation regarding the design, creation or installation of the till seal. In the event it is determined that a till seal is necessary or desired by Owner, Owner shall be responsible for its design and installation. In the event there is not sufficient till material on site necessary for the seal the owner shall be liable for obtaining and transporting to the site additional till material. • I. CONFORMANCE WITH EXISTING LEGISLATION: The operator shall conform to the requirements of all existing legislation, municipal, state and federal, in the conduct of the proposed aggregate operation. He shall pay particular attention to the Surface-Mined Conservation and Reclamation Act, State of Illinois and other legislation dealing with protection of air and water resources, including, but not limited to: I. To the extent required by law the operator shall comply or cause compliance to be had with the provisions of the Environmental Protetion Act, Ill. Rev. Stat., Ch. I11, pars. 1101 et seq. (1979), as amended, and any and all regulations promulgated pursuant thereto by the Pollution Control Board of the State of Illinois. 2. The operator shall comply or cause compliance to be had with the provisions of the Surface-Mined Land Conservation and Reclamation Act, Ill. Rev. Stat., Ch. 96V2, pars. 4501 et seq. (1979), as amended, and any and all rules or regulations promulgated pursuant thereto by the Illinois Department of Mines and Minerals. 20 Operator shall be required to obtain permits as provided in said Act regardless of the size of the area actually mined in any given year. 3. The operator shall comply or cause compliance to be had with any relevant ordinance of the City of Elgin. J. TEMPORARY SCREENING BERMS: Operator shall stockpile topsoil material striped from the operating area along the north and eastern boundary of the operating area in such a manner so as to screen, as much as practical, the operating area from surrounding recreational and hospital uses. No such temporary screening berm shall be in excess of eight feet. The location, size and placement of the temporary screening berms shall be included in operator's annual plan (Section I(E)(4)). It is anticipated that the materials used in such berms will be later applied and used in establishing the final landforms and rehabilitating the operating area (Section IV). K. RELOCATING EXISTING UTILITIES: I. All the above ground and below ground utilities and services which are known to exist on the site are shown on Sheet I. The operator shall remove all utilities and services except for the lime slurry pipe line and the natural gas line. All removed materials shall become the property of the operator. 2. The lime slurry pipe line and existing watermain as shown on sheet shall remain and shall be protected from any damage by the operator. 3. The city shall cause the natural gas line located on the site to be relocated, if necessary. L. REHABILITATION INTEGRATED WITH EXTRACTION: I. Rehabilitation is to take place as an integral part of the whole operation on a routine basis. It is to be progressive and follow the flow of extraction throughout the site. The organization of rehabilitation in relationship to other aspects of the 21 operation is shown schematically on Sheet 3. The , ideal to be sought is that of simultaneous stripping and rehabilitation so that topsoil is removed in stripping one part of the operating area and immediately placed as rehabilitation cover in another, worked- out, part of the operating area. Stockpiling of topsoil should be eliminated as much as possible. 2. To implement this aggregate extraction must be carried out on a sequential, full removal, basis rather than having one very large pit with periodic use of portions of it. 3. Details of rehabilitation are given in Section IV of these specifications. M. MISCELLANEOUS: I. Operator shall conform his operations to the documents and exhibits that comprise this contract. 2. No blasting shall be permitted. 3. Existing trees on the site shall be preserved and protected to the extent feasible. 4. All haulroads on the site shall have a maximum speed limit of twenty (20) miles per hour. Section IV--Rehabilitation A. DEFINITION: I. Rehabilitation consists of creation of a new attractive, useful and a biologically productive landscape upon the completion of surface mining in a given area. It is essentially the same thing as reclamation. The process of rehabilitation includes creation of a new landform through mass earthwork, establishing a new soil horizon of proper depth and density, establishing a proper surface drainage system and establishing viable plant cover. The operation shall carry out all the necessary steps to rehabilitate the site to the condition and form shown in the drawings, with the exception of certain plantings which are to be undertaken by the city and are so designated on the drawings. 22 2. The rehabilitation plans contained herein constitute a best effort based on available information. The parties recognize the need for flexibility in the plan to meet changing conditions and agree to meet and confer regarding refinement or alteration of the plan as necessary and as further information becomes available. No such revision shall effect the goal of the plan to provide for the rehabilitation of mined area for recreational purposes. B. TOPSOIL HANDLING: I. Topsoil stripping and handling shall take place during the relatively dry period of the year when soil can be handled without becoming compacted to a density above 1.6 or 1.7 gram per cubic centimeter. Topsoil shall be separated into "A" (topsoil) and "B" (subsoil) horizons. These two horizons shall be stockpiled and stored separately and shall be replaced to a depth in the property order with horizon "A" above "B". Topsoil shall be replaced to a depth in the range of eight (8) inches minimum to twelve (12) inches maximum. Wherever possible topsoil shall be stripped and deposited in the final rehabilitation location immediately with no intervening storage in a stockpile. 2. All disturbed surfaces, those on which the original, existing, condition has been removed or altered, shall be covered with topsoil, after having been shaped to the final landform, except for portions of the lake within the operating area as shown on Sheet 5. C. FINAL LANDFORM: I. The final landform shown on Sheet 4 differs from the extraction landform shown on Sheet 3. The operator shall create the final landform through a combination of extraction of aggregate materials and supplementary excavation. 2. All material cut in supplementary excavation, waste materials from aggregate deposits, imported fill (if any is available) and surplus topsoil shall be placed in the surplus and waste material disposal area as detailed in operator's annual operating plan. (Section II E 4n) 23 3. The operator shall be responsible for determing the amounts of topsoil required as cover in various areas and setting this material aside for those purposes prior to completion of the winter sports hill in the disposal area. 4. Final landform gradients and slopes shall be in general agreement with the intent, if not the specifics, of the Surface-Mined Land Conservation and Reclamation Act. D. IMPORTED FILL MATERIAL: I. The operator shall be allowed to accept imported fill material on the site providing that it is "clean fill" consisting of normal topsoil, normal subsoil, rock, or broken concrete or masonry and providing that non-soil materials such as rock, broken concrete, or masonry are placed in deep fill with a minimum of six (6) feet of soil cover over them. 2. This fill material shall be placed in the surplus material disposal area. It also may be placed in deep cut areas created by aggregate extraction providing that such placement in deep cut aggregate extraction areas is fully acceptable to the city, that such placement is determined in advance and is shown to be consistent with the intention of the park development master plan. E. FINAL SOIL DENSITIES: I. The operator shall ensure that final landform soil densities, for both topsoil and subsoil, shall be no greater than 1.6 to 1.7 gram per cubic centimeter for a depth of four (4) feet from the surface. This shall be an in-place density after fine grading has been completed. 2. Soil compaction is caused by repeated heavy vehicle traffic and handling of soil in a damp or wet condition. All temporary roadways, hardstands, product stockpile areas, loading areas or other areas subjected to repeated heavy vehicle traffic during the extraction and processing phases of the operation shall be ripped in two 24 J directions with deep chisel ploughs or subsoil rippers and then tilled with harrows or other, light tillage equipment to restore normal soil densities prior to spreading of final topsoil cover and fine grading. 3. Tracked equipment, rather than rubber tired equipment, shall be used for tillage, spreading or topsoil and fine grading wherever possible. F. FINE GRADING: I. All final surfaces shall be smooth, with no local variations greater than three inches from high to low points, free of roots, stumps or other debris and free of stones larger than four (4) inches in any dimension. All final surfaces shall have positive surface drainage with no impounded areas, except for the designated lake. All erosion gullies shall be repaired and refilled as necessary to create a smooth final surface. 2. The final landform shall be that shown by contour and elevation on Sheet 4 or any later, revised, version of Sheet 4 which is adopted by both the operator and the owner to reflect unanticipated variations in the extraction and rehabilitation process. G. BELOW WATER TOPSOIL: I. The operator shall place topsoil, as shown on Sheet 5 or as may be mutually agreed, in areas anticipated to be below final water surface in the recreation lake. This can be spread in a dry condition prior to lake filling and is for the purpose of providing a rooting zone and nutrient base for the aquatic vegetation necessary to support fish and waterfowl. H. PLANTING: I. The operator shall plant two types of grass cover in different areas as shown on Sheet 5. Slope areas shall be planted to State of Illinois Highway Department Class II seed mix consisting of the following: 25 . Kentucky 31 or Alta Fescue 50 lbs. per acre Perennial Ryegrass 20 lbs. per acre Red Top or Creeping Red Fescue 10 lbs. per acre Ladino or White Dutch Clover 5 lbs. per acre 2. A satisfactory turf shall be established in accordance with Rule 1202, of the Surface-Mined Conservation and Reclamation Act. The operator shall take soil samples from various areas to be seeded, have them analyzed to determine fertilizer requirements for seeding and apply fertilizer necessary to establish a turf meeting the requirements of Rule 1202. 3. Erosion appearing within seeded areas shall be repaired and reseeded to establish full and proper ground cover. I. WATER BODIES: Rehabilitation of the lake by the operator shall be considered complete when the landforms are complete, when topsoil has been placed in below water level areas and when side slopes above water level have been fine graded, planted and planting has been accepted by the city. It is expressly understood that operator does not guarantee that the final landforms, when completed, will result in the existence of a lake. Rather operator shall complete such final landforms in compliance with the provisions of this agreement and its annual operating plan. Whether such landform as designed and approved by Elgin will result in the existence of a lake when completed is the responsibility of Elgin which takes full responsibility for the adequacy of such final landform designs for the purpose intended: i.e., the formation of a lake. J. ACCEPTANCE OF REHABILITATED AREAS BY THE CITY: Upon completion of planting and establishment of acceptable turf, the operator and the city shall inspect completed areas on a yearly basis. The operator shall repair any erosion areas and replant as necessary to meet city requirements for 26 satisfactory completion of rehabilitation. The two parties shall each note the location and extent of areas of completed rehabilitation on a map or plan, maintained for that purpose, and the city shall provide the operator a written statement accepting the responsibility for further maintenance of the given rehabilitated area in question. CITY OF ELGIN / / By // // • y Manage Attest: City Clerk (r -0.,,.:m �,�-5,__,'.'J.,A �r,L----)C GIERTZ-MELAHN ASPHALT COMPANY OTift.L, Byt--- President / Attest: /r qi--LI.0..i' e_e-,t-/f/-ci-- ;+ Secretary ROADi ATERIALS CORPORATION By / l President Attest: A' /1 W 4"//,',1/47_,A-/L/ ki . Secretary 27 . ''' .,\"'".7\'''. 5 ��-^�.� EXHIBIT B 1'.-...•1 7.1::::.... .'"L'..N .NN. .. r O I i • PROPOSED AREA FOR SPOIL STOCKPILE 0 fi %•:•:•:::••••:::::.:.::::•::::•::::.::::•:•::::•::::•:•::::.::::•:::::::::::•::::.::::::::;:::: IL/ �,:::.;:•:: ::•::; •::::•::::•: :•:•:: :: OPERATING AREA :� imiTS 'f r h • UTY t_ t - N Exhibit C - Insurance A. Primary Liability Insurance Form of Coverage Minimum Limits of Liability 1. Workers' Compensation, Statutory incl . occupational disease 2 . Employers' Liability $500,000 per accident 3 . Comprehensive General $1,000,000 per occurrence Liability for bodily $1,000,000 annual aggregate* injury, personal injury and property damage, and to include: * $500,000 per occurrence a) General coverage $500,000 annual aggregate limits b) Broad form property permissable until operator's damage current policy expires on 4/1/86. c) Explosion, collapse and After such time, insurance limits underground hazards shall be as specified above. That d) Contractual liability is: $1,000,000 per occurrence for liability assumed $1,000,000 anniial aggregate in the contract documents e) Products liability f ) Completed operations liability including broad form property damage, which shall be maintained in force for a period of no less than two years after acceptance by the completed work by the owner 4 . Comprehensive Automobile $1,000 ,000 per accident Liability for bodily injury and property damage arising out of owned, non-owned and hired vehicles B. Excess Liability Insurance An umbrella policy or combination of umbrella and excess poli- cies is required with minimum limits of $5,000 ,000 for bodily injury, personal injury and property damage per occurrence Exhibit C - Insurance (Continued) and in the aggregate (applicable to employers' liability, comprehensive general liability [including extensions noted] and comprehensive automobile liability) . If the operator has an umbrella policy or combination of umbrella and excess policies with a combined limit equal to or in excess of the combination of the required primary and excess insurance limits , it shall be permissible to reduce the primary limits for such insurance to whatever limits are required by the umbrella. The umbrella policy, or combination of umbrella and excess policies, must be as broad as the primary policies and must be free of any restrictions which do not appear in the under- lying primary policies . ADDENDUM TO AGREEMENT FOR GRAVEL EXTRACTION AND REHABILITATION THIS AGREEMENT, made and entered into on this 13th day of April , 1994, by and between the CITY OF ELGIN, an Illinois municipal corporation (hereinafter referred to as the "CITY" ) and ROAD MATERIALS CORPORATION, a Delaware corporation, with offices in Algonquin, Illinois (hereinafter referred to as the "Operator" ) , WITNESSETH: WHEREAS, the parties hereto entered into an Agreement for gravel extraction and rehabilitation which was authorized and approved by resolution of the City Council of the City on October 28, 1985; and WHEREAS, mining operations are expected to be completed during 1993 and all stockpiles of gravel disposed of during 1994; and WHEREAS, if a limestone mining operation as proposed by the Operator is approved, the mining operation and reclamation plan will facilitate the development of the Elgin Sports Complex; and WHEREAS, written application has been made for a conditional use permit to amend the current zoning for the property legally described in Exhibit "A" attached hereto and commonly known as the Elgin Sports Complex (hereinafter referred to as the "Subject Property" ) to allow for the temporary mining of limestone in conjunction with site preparation for the development of the public recreational open space on the Subject Property; and WHEREAS, the City Council on May 20, 1993, approved Ordinance No. G20-93, to allow such conditional use for the subject proposed mining limestone operation on the Subject Property. NOW, THEREFORE, it is hereby agreed by and between the parties hereto, for and in consideration of the mutual covenants and promises contained within the original gravel mining and rehabilitation contract and the mutual promises and covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged: 1. That this Addendum Agreement is hereby incorporated into and amends the Agreement for Gravel Extraction and Rehabilitation authorized and approved by the City Council of the City on October 28, 1985 . 2 . That the City hereby agrees to permit Operator to conduct temporary limestone extraction, sales and rehabilitation on the Subject Property. Operator shall conduct its temporary limestone extraction, sales and rehabilitation on the Subject Property according to the terms of said original gravel mining and rehabilitation agreement and the terms of this addendum agreement. Where the terms of said original gravel mining rehabilitation agreement and this addendum agreement are in conflict, the terms of this addendum agreement shall control with respect to the temporary limestone extraction, sales and rehabilitation operations . 3 . That the sequence and phasing of limestone extraction operations and subsequent reclamation plans on the Subject Property shall conform with the limestone presentation report that defines the blasting procedures prepared by Road Materials Corp. , dated March 17 , 1993, and the following reclamation plans prepared by Burnidge, Cassell and Associates for Road Materials Corp: (a) Mining Operation Plan - Option A (Sheet MP-1A, dated 1/93) . (b) Mining Operation Plan - Option B (Sheet MP-1B, dated 1/93) . (c) Phasing of Overburden Placement (Sheet MP-2, dated 1/93) . (d) Final Land Form and Quarry/Staging Area (Sheet MP-3, dated 1/93) . (e) Finish Grade Section (Sheet MP-4 , dated 1/93) . ( f) Master Site Plan (Sheet MP-5, revised 8/92) . 4 . That trucks shall enter and leave this mining area via State Route 31 only. 5 . That conveyors carrying limestone from the quarry shall be enclosed where practical . 6 . That the haul road, parking and production equipment area, stockpiles, and mining area shall be treated with accepted methods to control dust during all phases of the mining operation. -2- 7 . That blasting shall be limited to one sequence per day, between the hours of 10 : 00 a.m. and noon, Monday through Friday, using a multiple or rapid fire technique. 8 . That the Operator shall submit annual reports to the Park and Reclamation Board and the City Council describing the status of the mining operation and reclamation phases . Operator' s annual reports, including but not limited to the reclamation phases and plans set forth therein, are subject to approval by the City Council of the City. 9 . That all revenues accrued by the City of Elgin from the sale of mine materials shall be deposited in a separate fund for the use and developing of the Elgin Sports Complex. 10 . That prior to commencing limestone mining Operator shall submit and obtain City approval of a soil erosion and sedimentation control plan to cover all aspects of the removal and redistribution of the overburden, and the mining operation. 11 . That the Operator shall submit all water quality test reports as required by law. 12 . That the temporary mining operation as contemplated herein shall be conducted in strict conformance with all Federal, State and local codes and ordinances . 13 . That Operator reserves the right to employ the services of a secondary operator for mining operations, provided however, all rules, regulations and requirements of this agreement shall apply to said secondary operator. 14 . That royalties from Operator to the City of Elgin will continue at ten percent ( 10%) of the selling price of limestone, provided however, Operator agrees to pay to the City a minimum royalty of $75, 000 per year. Operator' s obligation to pay said minimum royalty of $75, 000 per year is subject to Operator not experiencing unavoidable delays in the performance of its obligations under this contract. Unavoidable delays in performance is herein defined to be delays in the performance of any of contractor' s duties under this agreement which are not the fault of and not within the reasonable preventive control of the contractor, namely, fire, flood, natural disasters, Acts of God, civil disorders, riots and insurrections . In the event of such unavoidable delay, the parties hereto agree that the $75, 000 annual royalty shall be prorated and reduced for a period of time equivalent to the length of the unavoidable delay. -3- 15 . That in kind services of the Operator to be provided to the City under this Agreement shall include the moving of overburden to the areas of the sports complex parks and rough grading these areas . The total overburden is estimated at 5 million cubic yards . The City shall accept any areas where overburden has been placed in the rough graded condition as specified in the Burnidge and Cassell grading plan, Sheet MP-4, dated 1/93. 16 . That additional in kind services to be provided by the Operator to the City under this Agreement shall also include stripping top soil in the soccer field area only and stockpiling such stripped top soil in an agreed upon location for re-spreading by the City at a future date. 17 . That Operator will pay the design fees of Burnidge, Cassell and Associates to do the grading site development plans for all affected areas in the Elgin Sports Complex. The amount paid by the Operator will be credited against royalties due the City for the temporary limestone mining. 18 . That the Operator will pay for the removal and relocation costs for the Northern Illinois Gas line which bisects the proposed limestone mining area. The amount paid by the Operator will be credited against royalties due to the City for the temporary limestone mining. 19 . That it is understood, based upon the best information currently available to the parties, the operating area contains adequate limestone deposits to permit operator to extract sufficient material to equal or exceed the minimum payment required herein. In the event it is determined by the parties that there is not such adequate limestone deposits, the parties agree to negotiate to permit operator to conduct activities in areas beyond the area defined as the operating area herein. Nothing herein shall require the City to agree to any such addition, expansion or extension of the operating area, provided, in the event that the parties are unable to agree to an added, or expanded or extended operating area, Operator shall have the right to terminate this agreement provided further that upon such termination Operator shall pay the City all monies due at the time of said termination under this agreement and shall complete or cause the completion of all rehabilitation of any areas upon which any operations have taken place pursuant to the Operator' s annual operating plan previously approved by the City. 20 . That Operator' s right to conduct temporary limestone mining operation under the terms and conditions set forth -4- herein shall commence upon execution of this Agreement and shall expire on May 31, 2005, provided, however, sales and reclamation can proceed thereafter until December 31, 2008. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first written above. ROAD MATERIALS CORP. , CITY OF ELGIN a Delaware Corporation , a Municipal Corporation /14r By By Duce ✓ .. '� ,s )11,Csa Georcg' VanDeVoorde, Mayor Attest: Attest: Se&retary City Clerk ' -5- EXHIBIT A That part of Sections 22, 23, 26 and 27 , Township 41 North, Range 8 East of the Third Principal Meridian, described as follows : Beginning at the Northwest corner of the Northeast quarter of the Southeast quarter of Section 22 , thence southerly along the West line of said Section 22 for a distance of 1038 . 80 feet to a point; thence westerly along a line forming an angle of 88 degrees 11 minutes to the right prolongation of the last described course for a distance of 1843 . 60 feet to the center line of McLean Boulevard (State Aid Route 18) ; thence southwesterly along said center line, being a curve to the left for a distance of 574 . 65 feet to a point; thence continuing in a southwesterly direction along said center line, being a straight line and tangent to the last described point, for a distance of 404 . 0 feet to an angle in said center line; thence southwesterly along said center line a distance of 367 . 51 feet; thence easterly along a line parallel with the South line of Section 22 for a distance of 438 . 8 feet; thence southerly along a line that is perpendicular to the North line of the Northwest quarter of Section 27 and the South line of the Southwest quarter of Section 22 for a distance of 724 . 93 feet; thence easterly parallel with the South line of the Northeast quarter of the Northwest quarter of said Section 27 , a distance of 242 . 87 feet to the East line of the Northwest quarter of said Section 27 ; thence easterly parallel with the South line of the Northwest quarter of the Northeast quarter of said Section 27 a distance of 343 .2 feet; thence southerly along a line parallel with the West line of the Northeast quarter of said Section 27 for a distance of 891. 0 feet to the South line of the North half of the Northeast quarter of said Section 27; thence easterly along said South line of the North half of the Northeast quarter of Section 27 for a distance of 2293 . 9 feet to the East line of said Northeast quarter of Section 27; thence northerly along said East line of the Northeast quarter of Section 27 for a distance of 348 .2 feet; thence easterly along a line that forms an angle of 90 degrees 12 minutes to the right of a prolongation of the last described course, said line also being the southerly property line of the Elgin State Hospital, for a distance of 1900 feet more or less; thence northerly along a line parallel to and 740 -6- feet West of the East line of the Northwest quarter of Section 26 of the Southwest quarter of Section 23 for a distance of 1800 feet more or less; thence easterly along a line parallel with the South line of the Southwest quarter of Section 23, for a distance of 740 feet to the East line of the Southwest quarter of Section 23; thence northerly along the East line of said Southwest quarter of Section 23 for a distance of 1772 feet more or less to the southerly right-of-way line of the U.S . Route 20 bypass (Federal Aid Route 6 ) ; thence northwesterly along the southerly right-of-way line of the U.S. Route 20 bypass for a distance of 2643 feet more or less to the West line of Section 23; thence continuing in a northwesterly direction along the southerly right-of-way line of said U.S . Route 20 bypass for a distance of 1329 . 34 feet to the West line of the Southeast quarter of the Northeast quarter of Section 22; thence South along said West line for a distance of 113. 44 feet to the place of beginning. Being situated in Elgin Township, Kane County, Illinois, and containing 417 .48 acres more or less . -7- July 28, 1994 MEMORANDUM TO: Loni Mecum, City Clerk FROM: William A. Cogley, Assistant Corporation Counsel SUBJECT: Assignment of Mining Contracts between the City of Elgin and Road Materials Corporation You will recall that at the City Council meeting of July 13, 1994, the Council passed a resolution approving of the assignment of certain mining agreements from Road Materials Corporation to Prairie Material Sales . The mining agreement relates to the agreements between the City and Road Materials Corporation for mining on the City-owned sports complex property. Attached for your files please find the originally executed assignment and assumption agreement executed by Road Materials Corporation and Prairie Material Sales . • 1�vV "� w WAC mg Attachment • i(oz_3420) Agenda Item No. \y\q June 30, 1994 TO: Mayor and Members of the City Council FROM: Richard B. Helwig, City Manager SUBJECT: Consent to Road Materials Corporation Assignment of Mining Agreements with the City of Elgin to Prairie Material Sales, Inc. PURPOSE To request Council approval of an Assignment and Assumption of Mining Agreements with Road Materials Corporation to Prai- rie Material Sales, Inc. BACKGROUND The City and Road Materials Corporation entered into a mining contract on Orro:,Ar 28, 1985, relating to gravel extraction on the city-owned sports complex property. The City and Road Materials Corporation entered into an Addendum to the Gravel Extraction and Rehabilitation Contract on April 27, 1994, relating to limestone extraction on the same city property. Limestone extraction activities are on-going. The agreements require Road Materials Corporation to pay to the City royal- ties with a minimum of $75,000 per year and to perform in- kind services for the initial grading of the soccer fields. Road Materials Corporation desires to sell its mining and aggregate business to Prairie Material Sales, Inc. The clos- ing of this transaction is scheduled for July 15, 1994 . The City has the right to consent or approve of the assignment of Road Materials' obligations under its contracts with the City, with such consent to not be unreasonably withheld. FINANCIAL IMPACT None. LEGAL IMPACT None. Prairie Material Sales, Inc. will have the same obliga- tions under the contracts with the City. RECOMMENDATIONS • It is recommended that the Council pass a resolution consent- ing to the Road Materials Corporation assignment of the min- ing agreements to Prairie Material Sales, Inc. Respectfully submitted, I Richard B. Helwig City Manager WAC/nr r r