99-190 i
Resolution No. 99-190
RESOLUTION
ADOPTING THE 1999 ANNUAL MINING REPORT OF
PRAIRIE MATERIAL SALES, INC.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that it hereby adopts the 1999 Annual Mining Report
for the Elgin Sports Complex prepared by Prairie Material
Sales, Inc . , excepting Section 4 regarding unforeseen
circumstances and the closing paragraph concerning the
movement of the stockpiled overburden, a copy of which is
attached hereto.
s/ Ed Schock
Ed Schock, Mayor
Presented: July 14 , 1999
Adopted: July 14, 1999
Omnibus Vote : Yeas 6 Nays 0
Attest :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
PRAIRIE MATERIAL SALES, INC.
ANNUAL MINING REPORT- 1999
Puisuant to the Addendum to Agreement for Gravel Extraction and Rehabilitation dated December 13,
1994 between the City of Elgin("City")and Prairie Material Sales, Inc., as successor in interest to Road
Materials Corporation("Operator")the undersigned Operator does hereby submit to the City its annual report of
mining operations and its plans for the continuance of mining in 1999, as contemplated by paragraph 8 of the
Mining Agreement. Reference is made to the attached site plan ("Site Plan") for purposes of clarification.
1. By prior agreement with the City, Operator did dispose of overburden taken from cells 9, 8, 7
and 6 into cells 11, 10 and 9 up to approximately the imaginary line connecting Point A and
Point B (the A-B Line"). Operator estimates that the average depth of Cells 11,10 and 9 east of
the A-B Line is between 10 feet and 15 feet.
2. Operator is currently conducting mining operations along the southerly portions of cells 8, 7 and
6 in the area labeled"Current Mining Area" as shown on the Site Plan(the"Current Mining
Area"). When mining in the Current Mining Area is completed,the Operator will begin mining
in a westerly and northerly direction through cells 6, 1,2, 3,4 and 5 west of the imaginary line
connecting Point C and Point D on the Site Plan(the C-D Line").
3. Subject to paragraph 4 below, as mining progresses (as described in paragraph 2 above),
Operator will continue to dispose of overburden back into cells 9, 8, 7 and 6 with the
understanding that as overburden is deposited west of the A-B Line, Operator shall cause the
depth of the resulting lake are to gradually increase so that the depth at the C-D Line is not less
• than 30 feet.
4. If Operator encounters Unforeseen Circumstances (as hereafter defined)which make the
Operator's ability to dispose of overburden into the cells while maintaining the slope and depth
described in paragraph 3 above,then:
(a) Operator shall notify the City of the development of unforeseen circumstances within 10
days following the discovery of same(such notice being hereafter called the "Unforeseen
Consequences Notice");
(b) The City and the Operator shall promptly (but in no event later than 10 business after
Operator's notice to the City)meet to discuss and attempt, in good faith,to agree upon
an agreeable overburden disposal plan which does not increase Operator's operating
costs and which results in the creation of a lake with a depth acceptable to the City. .
(c) If, within 15 business days following the date of the Operator's Unforeseen
Consequences Notice, the City and the Operator have not reached written agreement as
to the disposal of overburden to be thereafter removed,then the Operator will have the
right to dispose of such overburden as follows:
(i) into cells 9, 8, 7 and 6, but not to a depth which will cause the resulting lake to be
• less than 30 feet deep;nand
HAWPD0CS\W0RK\28500\1999 Mining Planvfi.doc
i
onto the surface of the land outside the perimeter of the future lake but at a place
which is not so distant as to materially increase the operator's transportation
costs or result in a material increase on the wear and tear to the equipment of
• Operator or its subcontractors.
As used herein,the term"Unforeseen Circumstances" shall mean the occurrence of the situation
in which either(i)the depth of the g 0 0 d limestone from the surface of the ground
exceeds seventy (70) feet or(ii)the thickness of the strata of good quality limestone decreases to
less than fifty (50) feet.
_5. During calendar year 1999,the Operator hopes to sell in excess of 800,000 tons of aggregate at
an average sales price of$5.50 per ton. If these projections prove true, the royalties to be paid
by the Operator to the City should amount to $400,000 to $500,000 for calendar year 1999.
6. Additionally, during calendar year 1999,the Operator will continue to complete the construction
of the temporary reservoir located to the southwest of cell 1 of the mining area, as more
particularly shown on sheet MP-lA of the plans prepared by Burnidge, Cassell &Associates
dated January 4,.1993. Water from the bottom of the mining area will be pumped to the
temporary reservoir, when complete, as contemplated by sheet MP-2 of the mining plans
prepared by Burnidge, Cassell &Associates.
7. Operator will use good faith efforts to leave a so-called 10-foot safety ledge around the inside
perimeter of the future lake. Operator shall provide City written notice within ten (10) days if
Operator is unable to provide such a safety ledge along any portion of the future lake.
Finally,the Operator wishes to advise the City of an opportunity which may exist for the City to bring
*out the elimination of the large stockpile of overburden currently existing along the southerly edge of the
mining area south of cells 7 and 8 (as generally depicted on the attached site plan). This stockpile was created
at the direction of the City. The relocation or disbursement of the soil within this stockpile is not the
responsibility of the Operator under the Mining Agreement(since the Mining Agreement contemplates that
overburden will be moved by the Operator only once). Nevertheless,the City may wish to consider causing all
or a portion of the Stockpile to be pushed back into the lake (into the areas of cells 8, 7 and 6) after mining
operations have been completed in those areas and the mining operations have been moved to cell 1. It is the
Operator's opinion that the disposal of this stockpile back into cells 8, 7 and 6 would be the least expensive
alternative available to the City. If the City wishes the Operator to submit a bid for the cost of disbursing the
stockpile as aforesaid, the City should request such proposal from the Operator.
Respectfully submitted,
PRAIRIE MATERIALS SALES, INC.
B .
Jerry Fiordirosa, General Manager
HAWPD0CS\W0RK\28500\1999 Mining Planv5.doc
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